Text: H.R.3765 — 112th Congress (2011-2012)All Information (Except Text)

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Public Law No: 112-78 (12/23/2011)

 
[112th Congress Public Law 78]
[From the U.S. Government Printing Office]



[[Page 1279]]

           TEMPORARY PAYROLL TAX CUT CONTINUATION ACT OF 2011

[[Page 125 STAT. 1280]]

Public Law 112-78
112th Congress

                                 An Act


 
 To extend the payroll tax holiday, unemployment compensation, Medicare 
  physician payment, provide for the consideration of the Keystone XL 
    pipeline, and for other purposes. <<NOTE: Dec. 23, 2011 -  [H.R. 
                                3765]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Temporary 
Payroll Tax Cut Continuation Act of 2011. 26 USC 1 note.>> 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Temporary Payroll 
Tax Cut Continuation Act of 2011''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.

                  TITLE I--TEMPORARY PAYROLL TAX RELIEF

Sec. 101. Extension of payroll tax holiday.

  TITLE II--TEMPORARY EXTENSION OF UNEMPLOYMENT COMPENSATION PROVISIONS

Sec. 201. Temporary extension of unemployment compensation provisions.
Sec. 202. Extended unemployment benefits under the Railroad Unemployment 
           Insurance Act.

           TITLE III--TEMPORARY EXTENSION OF HEALTH PROVISIONS

Sec. 301. Medicare physician payment update.
Sec. 302. 2-month extension of MMA section 508 reclassifications.
Sec. 303. Extension of Medicare work geographic adjustment floor.
Sec. 304. Extension of exceptions process for Medicare therapy caps.
Sec. 305. Extension of payment for technical component of certain 
           physician pathology services.
Sec. 306. Extension of ambulance add-ons.
Sec. 307. Extension of physician fee schedule mental health add-on 
           payment.
Sec. 308. Extension of outpatient hold harmless provision.
Sec. 309. Extending minimum payment for bone mass measurement.
Sec. 310. Extension of the qualifying individual (QI) program.
Sec. 311. Extension of Transitional Medical Assistance (TMA).
Sec. 312. Extension of the temporary assistance for needy families 
           program.

                  TITLE IV--MORTGAGE FEES AND PREMIUMS

Sec. 401. Guarantee Fees.
Sec. 402. FHA guarantee fees.

                        TITLE V--OTHER PROVISIONS

                    Subtitle A--Keystone XL Pipeline

Sec. 501. Permit for Keystone XL pipeline.

                    Subtitle B--Budgetary Provisions

Sec. 511. Senate point of order against an emergency designation.
Sec. 512. PAYGO scorecard estimates.

[[Page 125 STAT. 1281]]

                  TITLE I--TEMPORARY PAYROLL TAX RELIEF

SEC. 101. EXTENSION OF PAYROLL TAX HOLIDAY.

    (a) In General.--Subsection (c) of section 601 of the Tax Relief, 
Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (26 
U.S.C. 1401 note) is amended to read as follows:
    ``(c) <<NOTE: Definition.>>  Payroll Tax Holiday Period.--The term 
`payroll tax holiday period' means--
            ``(1) in the case of the tax described in subsection (a)(1), 
        calendar years 2011 and 2012, and
            ``(2) in the case of the taxes described in subsection 
        (a)(2), the period beginning January 1, 2011, and ending 
        February 29, 2012.''.

    (b) Special Rules for 2012.--Section 601 of such Act (26 U.S.C. 1401 
note) is amended by adding at the end the following new subsection:
    ``(f) <<NOTE: Applicability.>>  Special Rules for 2012.--
            ``(1) Limitation on self-employment income.--In the case of 
        any taxable year beginning in 2012, subsection (a)(1) shall only 
        apply with respect to so much of the taxpayer's self-employment 
        income (as defined in section 1402(b) of the Internal Revenue 
        Code of 1986) as does not exceed the excess (if any) of--
                    ``(A) $18,350, over
                    ``(B) the amount of wages and compensation received 
                during the portion of the payroll tax holiday period 
                occurring during 2012 subject to tax under section 
                3101(a) of such Code or section 3201(a) of such Code.
            ``(2) Coordination with deduction for employment taxes.--In 
        the case of a taxable year beginning in 2012, subparagraph (A) 
        of subsection (b)(2) shall be applied as if it read as follows:
                    `` `(A) the sum of--
                          `` `(i) 59.6 percent of the portion of such 
                      taxes attributable to the tax imposed by section 
                      1401(a) of such Code (determined after the 
                      application of this section) on so much of self-
                      employment income (as defined in section 1402(b) 
                      of such Code) as does not exceed the amount of 
                      self-employment income described in paragraph (1), 
                      plus
                          `` `(ii) one-half of the portion of such taxes 
                      attributable to the tax imposed by section 1401(a) 
                      of such Code (determined without regard to this 
                      section) on self-employment income (as so defined) 
                      in excess of such amount, plus'.''.

    (c) Recapture of Excess Benefit.--Section 601 of such Act (26 U.S.C. 
1401 note), as amended by subsection (b), is further amended by adding 
at the end the following new subsection:
    ``(g) Recapture of Excess Benefit.--
            ``(1) In general.--There is hereby imposed on the income of 
        every individual a tax equal to 2 percent of the sum of wages 
        (within the meaning of section 3121(a)(1) of the Internal 
        Revenue Code of 1986) and compensation (to which section

[[Page 125 STAT. 1282]]

        3201(a) of such Code applies) received during the period 
        beginning January 1, 2012, and ending February 29, 2012, to the 
        extent the amount of such sum exceeds $18,350.
            ``(2) Regulations.--The Secretary of the Treasury or the 
        Secretary's delegate shall prescribe such regulations or other 
        guidance as may be necessary or appropriate to carry out this 
        subsection, including guidance for payment by the employee of 
        the tax imposed by paragraph (1).''.

    (d) Technical Amendments.--Paragraph (2) of section 601(b) of such 
Act (26 U.S.C. 1401 note) is amended--
            (1) by inserting ``of such Code'' after ``164(f)'';
            (2) by inserting ``of such Code'' after ``1401(a)'' in 
        subparagraph (A); and
            (3) by inserting ``of such Code'' after ``1401(b)'' in 
        subparagraph (B).

    (e) <<NOTE: 26 USC 1401 note. Applicability.>>  Effective Dates.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to remuneration 
        received, and taxable years beginning, after December 31, 2011.
            (2) Technical amendments.--The amendments made by subsection 
        (d) shall take effect as if included in the enactment of section 
        601 of the Tax Relief, Unemployment Insurance Reauthorization, 
        and Job Creation Act of 2010.

  TITLE II--TEMPORARY EXTENSION OF UNEMPLOYMENT COMPENSATION PROVISIONS

SEC. 201. TEMPORARY EXTENSION OF UNEMPLOYMENT COMPENSATION 
                        PROVISIONS.

    (a) In General.--(1) Section 4007 of the Supplemental Appropriations 
Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note) is amended--
            (A) by striking ``January 3, 2012'' each place it appears 
        and inserting ``March 6, 2012'';
            (B) in the heading for subsection (b)(2), by striking 
        ``january 3, 2012'' and inserting ``march 6, 2012''; and
            (C) in subsection (b)(3), by striking ``June 9, 2012'' and 
        inserting ``August 15, 2012''.

    (2) Section 2005 of the Assistance for Unemployed Workers and 
Struggling Families Act, as contained in Public Law 111-5 (26 U.S.C. 
3304 note; 123 Stat. 444), is amended--
            (A) by striking ``January 4, 2012'' each place it appears 
        and inserting ``March 7, 2012''; and
            (B) in subsection (c), by striking ``June 11, 2012'' and 
        inserting ``August 15, 2012''.

    (3) Section 5 of the Unemployment Compensation Extension Act of 2008 
(Public Law 110-449; 26 U.S.C. 3304 note) is amended by striking ``June 
10, 2012'' and inserting ``August 15, 2012''.
    (4) Section 203 of the Federal-State Extended Unemployment 
Compensation Act of 1970 (26 U.S.C. 3304 note) is amended--
            (A) in subsection (d), in the second sentence of the flush 
        matter following paragraph (2), by striking ``December 31, 
        2011'' and inserting ``February 29, 2012''; and

[[Page 125 STAT. 1283]]

            (B) in subsection (f)(2), by striking ``December 31, 2011'' 
        and inserting ``February 29, 2012''.

    (b) Funding.--Section 4004(e)(1) of the Supplemental Appropriations 
Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note) is amended--
            (1) in subparagraph (F), by striking ``and'' at the end; and
            (2) by inserting after subparagraph (G) the following:
                    ``(H) the amendments made by section 201(a)(1) of 
                the Temporary Payroll Tax Cut Continuation Act of 2011; 
                and''.

    (c) <<NOTE: 26 USC 3304 note.>>  Effective Date.--The amendments 
made by this section shall take effect as if included in the enactment 
of the Tax Relief, Unemployment Insurance Reauthorization, and Job 
Creation Act of 2010 (Public Law 111-312).
SEC. 202. EXTENDED UNEMPLOYMENT BENEFITS UNDER THE RAILROAD 
                        UNEMPLOYMENT INSURANCE ACT.

    (a) Extension.--Section 2(c)(2)(D)(iii) of the Railroad Unemployment 
Insurance Act, as added by section 2006 of the American Recovery and 
Reinvestment Act of 2009 (Public Law 111-5) and as amended by section 9 
of the Worker, Homeownership, and Business Assistance Act of 2009 
(Public Law 111-92) and section 505 of the Tax Relief, Unemployment 
Insurance Reauthorization, and Job Creation Act of 2010 <<NOTE: 45 USC 
352.>> (Public Law 111-312), is amended--
            (1) by striking ``June 30, 2011'' and inserting ``August 31, 
        2011''; and
            (2) by striking ``December 31, 2011'' and inserting 
        ``February 29, 2012''.

    (b) Clarification on Authority to Use Funds.--Funds appropriated 
under either the first or second sentence of clause (iv) of section 
2(c)(2)(D) of the Railroad Unemployment Insurance Act shall be available 
to cover the cost of additional extended unemployment benefits provided 
under such section 2(c)(2)(D) by reason of the amendments made by 
subsection (a) as well as to cover the cost of such benefits provided 
under such section 2(c)(2)(D), as in effect on the day before the date 
of the enactment of this Act.

           TITLE III--TEMPORARY EXTENSION OF HEALTH PROVISIONS

SEC. 301. MEDICARE PHYSICIAN PAYMENT UPDATE.

    Section 1848(d) of the Social Security Act (42 U.S.C. 1395w-4(d)) is 
amended by adding at the end the following new paragraph:
            ``(13) Update for first two months of 2012.--
                    ``(A) In general.--Subject to paragraphs (7)(B), 
                (8)(B), (9)(B), (10)(B), (11)(B), and (12)(B), in lieu 
                of the update to the single conversion factor 
                established in paragraph (1)(C) that would otherwise 
                apply for the period beginning on January 1, 2012, and 
                ending on February 29, 2012, the update to the single 
                conversion factor shall be zero percent.
                    ``(B) No effect on computation of conversion factor 
                for remaining portion of 2012 and subsequent years.--The 
                conversion factor under this subsection shall

[[Page 125 STAT. 1284]]

                be computed under paragraph (1)(A) for the period 
                beginning on March 1, 2012, and ending on December 31, 
                2012, and for 2013 and subsequent years as if 
                subparagraph (A) had never applied.''.
SEC. 302. 2-MONTH EXTENSION OF MMA SECTION 508 RECLASSIFICATIONS.

    (a) In General.--Section 106(a) of division B of the Tax Relief and 
Health Care Act of 2006 (42 U.S.C. 1395 note), <<NOTE: 42 USC 1395ww 
note.>> as amended by section 117 of the Medicare, Medicaid, and SCHIP 
Extension Act of 2007 (Public Law 110-173), section 124 of the Medicare 
Improvements for Patients and Providers Act of 2008 (Public Law 110-
275), sections 3137(a) and 10317 of the Patient Protection and 
Affordable Care Act (Public Law 111-148), and section 102(a) of the 
Medicare and Medicaid Extenders Act of 2010 (Public Law 111-309), is 
amended by striking ``September 30, 2011'' and inserting ``November 30, 
2011''.

    (b) <<NOTE: 42 USC 1395ww note.>>  Special Rule for October and 
November 2011.--
            (1) In general.--Subject to paragraph (2), for purposes of 
        implementation of the amendment made by subsection (a), 
        including for purposes of the implementation of paragraph (2) of 
        section 117(a) of the Medicare, Medicaid, and SCHIP Extension 
        Act of 2007 (Public Law 110-173), for the period beginning on 
        October 1, 2011, and ending on November 30, 2011, the Secretary 
        of Health and Human Services shall use the hospital wage index 
        that was promulgated by the Secretary of Health and Human 
        Services in the Federal Register on August 18, 2011 (76 Fed. 
        Reg. 51476), and any subsequent corrections.
            (2) Exception.--In determining the wage index applicable to 
        hospitals that qualify for wage index reclassification, the 
        Secretary shall, for the period beginning on October 1, 2011, 
        and ending on November 30, 2011, include the average hourly wage 
        data of hospitals whose reclassification was extended pursuant 
        to the amendment made by subsection (a) only if including such 
        data results in a higher applicable reclassified wage index. Any 
        revision to hospital wage indexes made as a result of this 
        paragraph shall not be effected in a budget neutral manner.

    (c) <<NOTE: 42 USC 1395ww note.>>  Timeframe for Payments.--The 
Secretary shall make payments required under subsections (a) and (b) by 
not later than December 31, 2012.
SEC. 303. EXTENSION OF MEDICARE WORK GEOGRAPHIC ADJUSTMENT FLOOR.

    Section 1848(e)(1)(E) of the Social Security Act (42 U.S.C. 1395w-
4(e)(1)(E)) is amended by striking ``before January 1, 2012'' and 
inserting ``before March 1, 2012''.
SEC. 304. EXTENSION OF EXCEPTIONS PROCESS FOR MEDICARE THERAPY 
                        CAPS.

    Section 1833(g)(5) of the Social Security Act (42 U.S.C. 
1395l(g)(5)) is amended by striking ``December 31, 2011'' and inserting 
``February 29, 2012''.
SEC. 305. EXTENSION OF PAYMENT FOR TECHNICAL COMPONENT OF CERTAIN 
                        PHYSICIAN PATHOLOGY SERVICES.

    Section 542(c) of the Medicare, Medicaid, and SCHIP Benefits 
Improvement and Protection Act of 2000 (as enacted into law by

[[Page 125 STAT. 1285]]

section 1(a)(6) of Public Law 106-554), as amended by section 732 of the 
Medicare Prescription Drug, Improvement, and Modernization Act of 2003 
(42 U.S.C. 1395w-4 note), section 104 of division B of the Tax Relief 
and Health Care Act of 2006 (42 U.S.C. 1395w-4 note), section 104 of the 
Medicare, Medicaid, and SCHIP Extension Act of 2007 (Public Law 110-
173), section 136 of the Medicare Improvements for Patients and 
Providers Act of 2008 (Public Law 110-275), section 3104 of the Patient 
Protection and Affordable Care Act (Public Law 111-148), and section 105 
of the Medicare and Medicaid Extenders Act of 2010 (Public Law 111-
309), <<NOTE: 42 USC 1395w-4 note.>> is amended by striking ``and 2011'' 
and inserting ``2011, and the first two months of 2012''.
SEC. 306. EXTENSION OF AMBULANCE ADD-ONS.

    (a) Ground Ambulance.--Section 1834(l)(13)(A) of the Social Security 
Act (42 U.S.C. 1395m(l)(13)(A)) is amended--
            (1) in the matter preceding clause (i), by striking 
        ``January 1, 2012'' and inserting ``March 1, 2012''; and
            (2) in each of clauses (i) and (ii), by striking ``January 
        1, 2012'' and inserting ``March 1, 2012'' each place it appears.

    (b) Air Ambulance.--Section 146(b)(1) of the Medicare Improvements 
for Patients and Providers Act of 2008 (Public Law 110-275), as amended 
by sections 3105(b) and 10311(b) of Public Law 111-148 and section 
106(b) of the Medicare and Medicaid Extenders Act of 2010 (Public Law 
111-309), <<NOTE: 42 USC 1395m note.>> is amended by striking ``December 
31, 2011'' and inserting ``February 29, 2012''.

    (c) Super Rural Ambulance.--Section 1834(l)(12)(A) of the Social 
Security Act (42 U.S.C. 1395m(l)(12)(A)) is amended by striking 
``January 1, 2012'' and inserting ``March 1, 2012''.
SEC. 307. EXTENSION OF PHYSICIAN FEE SCHEDULE MENTAL HEALTH ADD-ON 
                        PAYMENT.

    Section 138(a)(1) of the Medicare Improvements for Patients and 
Providers Act of 2008 (Public Law 110-275), as amended by section 3107 
of the Patient Protection and Affordable Care Act (Public Law 111-148) 
and section 107 of the Medicare and Medicaid Extenders Act of 2010 
(Public Law 111-309), <<NOTE: 42 USC 1395w-4 note.>> is amended by 
striking ``December 31, 2011'' and inserting ``February 29, 2012''.
SEC. 308. EXTENSION OF OUTPATIENT HOLD HARMLESS PROVISION.

    Section 1833(t)(7)(D)(i) of the Social Security Act (42 U.S.C. 
1395l(t)(7)(D)(i)), as amended by section 3121(a) of the Patient 
Protection and Affordable Care Act (Public Law 111-148) and section 108 
of the Medicare and Medicaid Extenders Act of 2010 (Public Law 111-309), 
is amended--
            (1) in subclause (II)--
                    (A) in the first sentence, by striking ``January 1, 
                2012'' and inserting ``March 1, 2012''; and
                    (B) in the second sentence, by striking ``or 2011'' 
                and inserting ``2011, or the first two months of 2012''; 
                and
            (2) in subclause (III)--
                    (A) in the first sentence, by striking ``2009, and'' 
                and all that follows through ``for which'' and inserting 
                ``2009, and before March 1, 2012, for which''; and
                    (B) in the second sentence, by striking ``2010, 
                and'' and all that follows through ``the preceding'' and 
                inserting ``2010, and before March 1, 2012, the 
                preceding''.

[[Page 125 STAT. 1286]]

SEC. 309. EXTENDING MINIMUM PAYMENT FOR BONE MASS MEASUREMENT.

    Section 1848 of the Social Security Act (42 U.S.C. 1395w-4) is 
amended--
            (1) in subsection (b)--
                    (A) in paragraph (4)(B), by striking ``and 2011'' 
                and inserting ``, 2011, and the first 2 months of 
                2012''; and
                    (B) in paragraph (6)--
                          (i) in the matter preceding subparagraph (A), 
                      by striking ``and 2011'' and inserting ``, 2011, 
                      and the first 2 months of 2012''; and
                          (ii) in subparagraph (C), by striking ``and 
                      2011'' and inserting ``, 2011, and the first 2 
                      months of 2012''; and
            (2) in subsection (c)(2)(B)(iv)(IV), by striking ``or 2011'' 
        and inserting ``, 2011, or the first 2 months of 2012''.
SEC. 310. EXTENSION OF THE QUALIFYING INDIVIDUAL (QI) PROGRAM.

    (a) Extension.--Section 1902(a)(10)(E)(iv) of the Social Security 
Act (42 U.S.C. 1396a(a)(10)(E)(iv)) is amended by striking ``December 
2011'' and inserting ``February 2012''.
    (b) Extending Total Amount Available for Allocation.--Section 
1933(g) of such Act (42 U.S.C. 1396u-3(g)) is amended--
            (1) in paragraph (2)--
                    (A) by striking ``and'' at the end of subparagraph 
                (O);
                    (B) in subparagraph (P), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(Q) <<NOTE: Time period.>>  for the period that 
                begins on January 1, 2012, and ends on February 29, 
                2012, the total allocation amount is $150,000,000.''.
SEC. 311. EXTENSION OF TRANSITIONAL MEDICAL ASSISTANCE (TMA).

    Sections 1902(e)(1)(B) and 1925(f) of the Social Security Act (42 
U.S.C. 1396a(e)(1)(B), 1396r-6(f)) are each amended by striking 
``December 31, 2011'' and inserting ``February 29, 2012''.
SEC. 312. <<NOTE: Appropriation authorization.>>  EXTENSION OF THE 
                        TEMPORARY ASSISTANCE FOR NEEDY FAMILIES 
                        PROGRAM.

    Activities authorized by part A of title IV and section 1108(b) of 
the Social Security Act (other than under subsections (a)(3) and (b) of 
section 403 of such Act) shall continue through February 29, 2012, in 
the manner authorized for fiscal year 2011, and out of any money in the 
Treasury of the United States not otherwise appropriated, there are 
hereby appropriated such sums as may be necessary for such purpose. 
Grants and payments may be made pursuant to this authority through the 
applicable portion of the second quarter of fiscal year 2012 at the pro 
rata portion of the level provided for such activities through the 
second quarter of fiscal year 2011.

[[Page 125 STAT. 1287]]

                  TITLE IV--MORTGAGE FEES AND PREMIUMS

SEC. 401. GUARANTEE FEES.

    Subpart A of part 2 of subtitle A of title XIII of the Housing and 
Community Development Act of 1992 is amended by adding after section 
1326 (12 U.S.C. 4546) the following new section:
``SEC. 1327. <<NOTE: 12 USC 4547.>>  ENTERPRISE GUARANTEE FEES.

    ``(a) <<NOTE: Applicability.>>  Definitions.--For purposes of this 
section, the following definitions shall apply:
            ``(1) Guarantee fee.--The term `guarantee fee'--
                    ``(A) means a fee described in subsection (b); and
                    ``(B) includes--
                          ``(i) the guaranty fee charged by the Federal 
                      National Mortgage Association with respect to 
                      mortgage-backed securities; and
                          ``(ii) the management and guarantee fee 
                      charged by the Federal Home Loan Mortgage 
                      Corporation with respect to participation 
                      certificates.
            ``(2) Average fees.--The term `average fees' means the 
        average contractual fee rate of single-family guaranty 
        arrangements by an enterprise entered into during 2011, plus the 
        recognition of any up-front cash payments over an estimated 
        average life, expressed in terms of basis points. Such 
        definition shall be interpreted in a manner consistent with the 
        annual report on guarantee fees by the Federal Housing Finance 
        Agency.

    ``(b) Increase.--
            ``(1) In general.--
                    ``(A) Phased increase required.--Subject to 
                subsection (c), the Director shall require each 
                enterprise to charge a guarantee fee in connection with 
                any guarantee of the timely payment of principal and 
                interest on securities, notes, and other obligations 
                based on or backed by mortgages on residential real 
                properties designed principally for occupancy of from 1 
                to 4 families, consummated after the date of enactment 
                of this section.
                    ``(B) Amount.--The amount of the increase required 
                under this section shall be determined by the Director 
                to appropriately reflect the risk of loss, as well the 
                cost of capital allocated to similar assets held by 
                other fully private regulated financial institutions, 
                but such amount shall be not less than an average 
                increase of 10 basis points for each origination year or 
                book year above the average fees imposed in 2011 for 
                such guarantees. The Director shall prohibit an 
                enterprise from offsetting the cost of the fee to 
                mortgage originators, borrowers, and investors by 
                decreasing other charges, fees, or premiums, or in any 
                other manner.
            ``(2) Authority to limit offer of guarantee.--The Director 
        shall prohibit an enterprise from consummating any offer for a 
        guarantee to a lender for mortgage-backed securities, if--
                    ``(A) the guarantee is inconsistent with the 
                requirements of this section; or

[[Page 125 STAT. 1288]]

                    ``(B) the risk of loss is allowed to increase, 
                through lowering of the underwriting standards or other 
                means, for the primary purpose of meeting the 
                requirements of this section.
            ``(3) Deposit in treasury.--Amounts received from fee 
        increases imposed under this section shall be deposited directly 
        into the United States Treasury, and shall be available only to 
        the extent provided in subsequent appropriations Acts. The fees 
        charged pursuant to this section shall not be considered a 
        reimbursement to the Federal Government for the costs or subsidy 
        provided to an enterprise.

    ``(c) Phase-in.--
            ``(1) <<NOTE: Time period.>>  In general.--The Director may 
        provide for compliance with subsection (b) by allowing each 
        enterprise to increase the guarantee fee charged by the 
        enterprise gradually over the 2-year period beginning on the 
        date of enactment of this section, in a manner sufficient to 
        comply with this section. In determining a schedule for such 
        increases, the Director shall--
                    ``(A) provide for uniform pricing among lenders;
                    ``(B) provide for adjustments in pricing based on 
                risk levels; and
                    ``(C) take into consideration conditions in 
                financial markets.
            ``(2) Rule of construction.--Nothing in this subsection 
        shall be interpreted to undermine the minimum increase required 
        by subsection (b).

    ``(d) <<NOTE: Reports.>>  Information Collection and Annual 
Analysis.--The Director shall require each enterprise to provide to the 
Director, as part of its annual report submitted to Congress--
            ``(1) a description of--
                    ``(A) changes made to up-front fees and annual fees 
                as part of the guarantee fees negotiated with lenders;
                    ``(B) changes to the riskiness of the new borrowers 
                compared to previous origination years or book years; 
                and
                    ``(C) any adjustments required to improve for future 
                origination years or book years, in order to be in 
                complete compliance with subsection (b); and
            ``(2) an assessment of how the changes in the guarantee fees 
        described in paragraph (1) met the requirements of subsection 
        (b).

    ``(e) Enforcement.--
            ``(1) Required adjustments.--Based on the information from 
        subsection (d) and any other information the Director deems 
        necessary, the Director shall require an enterprise to make 
        adjustments in its guarantee fee in order to be in compliance 
        with subsection (b).
            ``(2) Noncompliance penalty.--An enterprise that has been 
        found to be out of compliance with subsection (b) for any 2 
        consecutive years shall be precluded from providing any 
        guarantee for a period, determined by rule of the Director, but 
        in no case less than 1 year.
            ``(3) Rule of construction.--Nothing in this subsection 
        shall be interpreted as preventing the Director from initiating 
        and implementing an enforcement action against an enterprise, at 
        a time the Director deems necessary, under other existing 
        enforcement authority.

[[Page 125 STAT. 1289]]

    ``(f) Expiration.--The provisions of this section shall expire on 
October 1, 2021.''.
SEC. 402. FHA GUARANTEE FEES.

    (a) Amendment.--Section 203(c)(2) of the National Housing Act (12 
U.S.C. 1709(c)(2)) is amended by adding at the end the following:
            ``(C)(i) In addition to the premiums under subparagraphs (A) 
        and (B), the Secretary shall establish and collect annual 
        premium payments for any mortgage for which the Secretary 
        collects an annual premium payment under subparagraph (B), in an 
        amount described in clause (ii).
            ``(ii)(I) Subject to subclause (II), with respect to a 
        mortgage, the amount described in this clause is 10 basis points 
        of the remaining insured principal balance (excluding the 
        portion of the remaining balance attributable to the premium 
        collected under subparagraph (A) and without taking into account 
        delinquent payments or prepayments).
            ``(II) <<NOTE: Time period. Determination.>>  During the 2-
        year period beginning on the date of enactment of this 
        subparagraph, the Secretary shall increase the number of basis 
        points of the annual premium payment collected under this 
        subparagraph incrementally, as determined appropriate by the 
        Secretary, until the number of basis points of the annual 
        premium payment collected under this subparagraph is equal to 
        the number described in subclause (I).''.

    (b) <<NOTE: Effective date.>>  Prospective Repeal.--Section 
203(c)(2) of the National Housing Act (12 U.S.C. 1709(c)(2)) is amended 
by striking subparagraph (C), as added by subsection (a), effective on 
October 1, 2021.

    (c) <<NOTE: Determination. 12 USC 1709 note.>>  Report Required.--
Not later than 30 days before the date on which the Secretary of Housing 
and Urban Development makes a determination under subsection (b)(2), the 
Secretary shall submit to the Committee on Banking, Housing, and Urban 
Affairs of the Senate and the Committee on Financial Services of the 
House of Representatives a report that--
            (1) explains the basis for the determination; and
            (2) identifies the date on which the Secretary plans to make 
        the determination.

                        TITLE V--OTHER PROVISIONS

                    Subtitle A--Keystone XL Pipeline

SEC. 501. <<NOTE: President.>>  PERMIT FOR KEYSTONE XL PIPELINE.

    (a) <<NOTE: Deadline.>>  In General.--Except as provided in 
subsection (b), not later than 60 days after the date of enactment of 
this Act, the President, acting through the Secretary of State, shall 
grant a permit under Executive Order No. 13337 (3 U.S.C. 301 note; 
relating to issuance of permits with respect to certain energy-related 
facilities and land transportation crossings on the international 
boundaries of the United States) for the Keystone XL pipeline project 
application filed on September 19, 2008 (including amendments).

    (b) Exception.--
            (1) <<NOTE: Determination.>>  In general.--The President 
        shall not be required to grant the permit under subsection (a) 
        if the President determines that the Keystone XL pipeline would 
        not serve the national interest.

[[Page 125 STAT. 1290]]

            (2) Report.--If the President determines that the Keystone 
        XL pipeline is not in the national interest under paragraph (1), 
        the President shall, not later than 15 days after the date of 
        the determination, submit to the Committee on Foreign Relations 
        of the Senate, the Committee on Foreign Affairs of the House of 
        Representatives, the majority leader of the Senate, the minority 
        leader of the Senate, the Speaker of the House of 
        Representatives, and the minority leader of the House of 
        Representatives a report that provides a justification for 
        determination, including consideration of economic, employment, 
        energy security, foreign policy, trade, and environmental 
        factors.
            (3) Effect of no finding or action.--If a determination is 
        not made under paragraph (1) and no action is taken by the 
        President under subsection (a) not later than 60 days after the 
        date of enactment of this Act, the permit for the Keystone XL 
        pipeline described in subsection (a) that meets the requirements 
        of subsections (c) and (d) shall be in effect by operation of 
        law.

    (c) Requirements.--The permit granted under subsection (a) shall 
require the following:
            (1) The permittee shall comply with all applicable Federal 
        and State laws (including regulations) and all applicable 
        industrial codes regarding the construction, connection, 
        operation, and maintenance of the United States facilities.
            (2) The permittee shall obtain all requisite permits from 
        Canadian authorities and relevant Federal, State, and local 
        governmental agencies.
            (3) The permittee shall take all appropriate measures to 
        prevent or mitigate any adverse environmental impact or 
        disruption of historic properties in connection with the 
        construction, operation, and maintenance of the United States 
        facilities.
            (4) For the purpose of the permit issued under subsection 
        (a) (regardless of any modifications under subsection (d))--
                    (A) the final environmental impact statement issued 
                by the Secretary of State on August 26, 2011, satisfies 
                all requirements of the National Environmental Policy 
                Act of 1969 (42 U.S.C. 4321 et seq.) and section 106 of 
                the National Historic Preservation Act (16 U.S.C. 470f);
                    (B) any modification required by the Secretary of 
                State to the Plan described in paragraph (5)(A) shall 
                not require supplementation of the final environmental 
                impact statement described in that paragraph; and
                    (C) no further Federal environmental review shall be 
                required.
            (5) The construction, operation, and maintenance of the 
        facilities shall be in all material respects similar to that 
        described in the application described in subsection (a) and in 
        accordance with--
                    (A) the construction, mitigation, and reclamation 
                measures agreed to by the permittee in the Construction 
                Mitigation and Reclamation Plan found in appendix B of 
                the final environmental impact statement issued by the 
                Secretary of State on August 26, 2011, subject to the 
                modification described in subsection (d);
                    (B) the special conditions agreed to between the 
                permittee and the Administrator of the Pipeline 
                Hazardous

[[Page 125 STAT. 1291]]

                Materials Safety Administration of the Department of 
                Transportation found in appendix U of the final 
                environmental impact statement described in subparagraph 
                (A);
                    (C) if the modified route submitted by the Governor 
                of Nebraska under subsection (d)(3)(B) crosses the Sand 
                Hills region, the measures agreed to by the permittee 
                for the Sand Hills region found in appendix H of the 
                final environmental impact statement described in 
                subparagraph (A); and
                    (D) the stipulations identified in appendix S of the 
                final environmental impact statement described in 
                subparagraph (A).
            (6) Other requirements that are standard industry practice 
        or commonly included in Federal permits that are similar to a 
        permit issued under subsection (a).

    (d) <<NOTE: Nebraska.>>  Modification.--The permit issued under 
subsection (a) shall require--
            (1) the reconsideration of routing of the Keystone XL 
        pipeline within the State of Nebraska;
            (2) a review period during which routing within the State of 
        Nebraska may be reconsidered and the route of the Keystone XL 
        pipeline through the State altered with any accompanying 
        modification to the Plan described in subsection (c)(5)(A); and
            (3) the President--
                    (A) to coordinate review with the State of Nebraska 
                and provide any necessary data and reasonable technical 
                assistance material to the review process required under 
                this subsection; and
                    (B) to approve the route within the State of 
                Nebraska that has been submitted to the Secretary of 
                State by the Governor of Nebraska.

    (e) <<NOTE: Nebraska.>>  Effect of No Approval.--If the President 
does not approve the route within the State of Nebraska submitted by the 
Governor of Nebraska under subsection (d)(3)(B) not later than 10 days 
after the date of submission, the route submitted by the Governor of 
Nebraska under subsection (d)(3)(B) shall be considered approved, 
pursuant to the terms of the permit described in subsection (a) that 
meets the requirements of subsection (c) and this subsection, by 
operation of law.

    (f) Private Property Savings Clause.--Nothing in this section alters 
the Federal, State, or local processes or conditions in effect on the 
date of enactment of this Act that are necessary to secure access from 
private property owners to construct the Keystone XL pipeline.

                    Subtitle B--Budgetary Provisions

SEC. 511. SENATE POINT OF ORDER AGAINST AN EMERGENCY DESIGNATION.

    Section 314 of the Congressional Budget Act of 1974 <<NOTE: 2 USC 
645.>> is amended by--
            (1) redesignating subsection (e) as subsection (f); and
            (2) inserting after subsection (d) the following:

    ``(e) Senate Point of Order Against an Emergency Designation.--

[[Page 125 STAT. 1292]]

            ``(1) In general.--When the Senate is considering a bill, 
        resolution, amendment, motion, amendment between the Houses, or 
        conference report, if a point of order is made by a Senator 
        against an emergency designation in that measure, that provision 
        making such a designation shall be stricken from the measure and 
        may not be offered as an amendment from the floor.
            ``(2) Supermajority waiver and appeals.--
                    ``(A) Waiver.--Paragraph (1) may be waived or 
                suspended in the Senate only by an affirmative vote of 
                three-fifths of the Members, duly chosen and sworn.
                    ``(B) Appeals.--Appeals in the Senate from the 
                decisions of the Chair relating to any provision of this 
                subsection shall be limited to 1 hour, to be equally 
                divided between, and controlled by, the appellant and 
                the manager of the bill or joint resolution, as the case 
                may be. An affirmative vote of three-fifths of the 
                Members of the Senate, duly chosen and sworn, shall be 
                required to sustain an appeal of the ruling of the Chair 
                on a point of order raised under this subsection.
            ``(3) Definition of an emergency designation.--For purposes 
        of paragraph (1), a provision shall be considered an emergency 
        designation if it designates any item pursuant to section 
        251(b)(2)(A)(i) of the Balanced Budget and Emergency Deficit 
        Control Act of 1985.
            ``(4) Form of the point of order.--A point of order under 
        paragraph (1) may be raised by a Senator as provided in section 
        313(e) of the Congressional Budget Act of 1974.
            ``(5) Conference reports.--When the Senate is considering a 
        conference report on, or an amendment between the Houses in 
        relation to, a bill, upon a point of order being made by any 
        Senator pursuant to this section, and such point of order being 
        sustained, such material contained in such conference report 
        shall be deemed stricken, and the Senate shall proceed to 
        consider the question of whether the Senate shall recede from 
        its amendment and concur with a further amendment, or concur in 
        the House amendment with a further amendment, as the case may 
        be, which further amendment shall consist of only that portion 
        of the conference report or House amendment, as the case may be, 
        not so stricken. Any such motion in the Senate shall be 
        debatable. In any case in which such point of order is sustained 
        against a conference report (or Senate amendment derived from 
        such conference report by operation of this subsection), no 
        further amendment shall be in order.''.

[[Page 125 STAT. 1293]]

SEC. 512. PAYGO SCORECARD ESTIMATES.

    The budgetary effects of this Act shall not be entered on either 
PAYGO scorecard maintained pursuant to section 4(d) of the Statutory 
Pay-As-You-Go Act of 2010.

    Approved December 23, 2011.

LEGISLATIVE HISTORY--H.R. 3765:
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CONGRESSIONAL RECORD, Vol. 157 (2011):
            Dec. 23, considered and passed House and Senate.

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