H. Rept. 112-399 - 112th Congress (2011-2012)

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House Report 112-399 - MIDDLE CLASS TAX RELIEF AND JOB CREATION ACT OF 2012

[House Report 112-399]
[From the U.S. Government Publishing Office]


112th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     112-399
_______________________________________________________________________

                                     


          MIDDLE CLASS TAX RELIEF AND JOB CREATION ACT OF 2012

                               ----------                              

                           CONFERENCE REPORT

                              to accompany

                               H.R. 3630






               February 16, 2012.--Ordered to be printed


          MIDDLE CLASS TAX RELIEF AND JOB CREATION ACT OF 2012


112th Congress 
 2d Session             HOUSE OF REPRESENTATIVES                 Report
                                                                112-399
_______________________________________________________________________

                                     


          MIDDLE CLASS TAX RELIEF AND JOB CREATION ACT OF 2012

                               __________

                           CONFERENCE REPORT

                              to accompany

                               H.R. 3630






               February 16, 2012.--Ordered to be printed


112th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     112-399

======================================================================




          MIDDLE CLASS TAX RELIEF AND JOB CREATION ACT OF 2012

                                _______
                                

               February 16, 2012.--Ordered to be printed

                                _______
                                

  Mr. Camp, from the committee of conference, submitted the following

                           CONFERENCE REPORT

                        [To accompany H.R. 3630]

      The committee of conference on the disagreeing votes of 
the two Houses on the amendments of the Senate to the bill 
(H.R. 3630), to provide incentives for the creation of jobs, 
and for other purposes, having met, after full and free 
conference, have agreed to recommend and do recommend to their 
respective Houses as follows:
      That the House recede from its disagreement to the 
amendment of the Senate to the text of the bill and agree to 
the same with an amendment as follows:
      In lieu of the matter proposed to be inserted by the 
Senate amendment, insert the following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Middle 
Class Tax Relief and Job Creation Act of 2012''.
    (b) Table of Contents.--The table of contents for this Act 
is as follows:

Sec. 1. Short title; table of contents.

               TITLE I--EXTENSION OF PAYROLL TAX REDUCTION

Sec. 1001. Extension of payroll tax reduction.

   TITLE II--UNEMPLOYMENT BENEFIT CONTINUATION AND PROGRAM IMPROVEMENT

Sec. 2001. Short title.

Subtitle A--Reforms of Unemployment Compensation to Promote Work and Job 
                                Creation

Sec. 2101. Consistent job search requirements.
Sec. 2102. State flexibility to promote the reemployment of unemployed 
          workers.
Sec. 2103. Improving program integrity by better recovery of 
          overpayments.
Sec. 2104. Data exchange standardization for improved interoperability.
Sec. 2105. Drug testing of applicants.

          Subtitle B--Provisions Relating To Extended Benefits

Sec. 2121. Short title.
Sec. 2122. Extension and modification of emergency unemployment 
          compensation program.
Sec. 2123. Temporary extension of extended benefit provisions.
Sec. 2124. Additional extended unemployment benefits under the Railroad 
          Unemployment Insurance Act.

   Subtitle C--Improving Reemployment Strategies Under the Emergency 
                    Unemployment Compensation Program

Sec. 2141. Improved work search for the long-term unemployed.
Sec. 2142. Reemployment services and reemployment and eligibility 
          assessment activities.
Sec. 2143. Promoting program integrity through better recovery of 
          overpayments.
Sec. 2144. Restore State flexibility to improve unemployment program 
          solvency.

               Subtitle D--Short-Time Compensation Program

Sec. 2160. Short title.
Sec. 2161. Treatment of short-time compensation programs.
Sec. 2162. Temporary financing of short-time compensation payments in 
          States with programs in law.
Sec. 2163. Temporary financing of short-time compensation agreements.
Sec. 2164. Grants for short-time compensation programs.
Sec. 2165. Assistance and guidance in implementing programs.
Sec. 2166. Reports.

                 Subtitle E--Self-Employment Assistance

Sec. 2181. State administration of self-employment assistance programs.
Sec. 2182. Grants for self-employment assistance programs.
Sec. 2183. Assistance and guidance in implementing self-employment 
          assistance programs.
Sec. 2184. Definitions.

             TITLE III--MEDICARE AND OTHER HEALTH PROVISIONS

                     Subtitle A--Medicare Extensions

Sec. 3001. Extension of MMA section 508 reclassifications.
Sec. 3002. Extension of outpatient hold harmless payments.
Sec. 3003. Physician payment update.
Sec. 3004. Work geographic adjustment.
Sec. 3005. Payment for outpatient therapy services.
Sec. 3006. Payment for technical component of certain physician 
          pathology services.
Sec. 3007. Ambulance add-on payments.

                   Subtitle B--Other Health Provisions

Sec. 3101. Qualifying individual program.
Sec. 3102. Transitional medical assistance.

                       Subtitle C--Health Offsets

Sec. 3201. Reduction of bad debt treated as an allowable cost.
Sec. 3202. Rebase Medicare clinical laboratory payment rates.
Sec. 3203. Rebasing State DSH allotments for fiscal year 2021.
Sec. 3204. Technical correction to the disaster recovery FMAP provision.
Sec. 3205. Prevention and Public Health Fund.

                        TITLE IV--TANF EXTENSION

Sec. 4001. Short title.
Sec. 4002. Extension of program.
Sec. 4003. Data exchange standardization for improved interoperability.
Sec. 4004. Spending policies for assistance under State TANF programs.
Sec. 4005. Technical corrections.

                  TITLE V--FEDERAL EMPLOYEES RETIREMENT

Sec. 5001. Increase in contributions to Federal Employees' Retirement 
          System for new employees.
Sec. 5002. Foreign Service Pension System.
Sec. 5003. Central Intelligence Agency Retirement and Disability System.

  TITLE VI--PUBLIC SAFETY COMMUNICATIONS AND ELECTROMAGNETIC SPECTRUM 
                                AUCTIONS

Sec. 6001. Definitions.
Sec. 6002. Rule of construction.
Sec. 6003. Enforcement.
Sec. 6004. National security restrictions on use of funds and auction 
          participation.

           Subtitle A--Reallocation of Public Safety Spectrum

Sec. 6101. Reallocation of D block to public safety.
Sec. 6102. Flexible use of narrowband spectrum.
Sec. 6103. 470-512 MHz public safety spectrum.

            Subtitle B--Governance of Public Safety Spectrum

Sec. 6201. Single public safety wireless network licensee.
Sec. 6202. Public safety broadband network.
Sec. 6203. Public Safety Interoperability Board.
Sec. 6204. Establishment of the First Responder Network Authority.
Sec. 6205. Advisory committees of the First Responder Network Authority.
Sec. 6206. Powers, duties, and responsibilities of the First Responder 
          Network Authority.
Sec. 6207. Initial funding for the First Responder Network Authority.
Sec. 6208. Permanent self-funding; duty to assess and collect fees for 
          network use.
Sec. 6209. Audit and report.
Sec. 6210. Annual report to Congress.
Sec. 6211. Public safety roaming and priority access.
Sec. 6212. Prohibition on direct offering of commercial 
          telecommunications service directly to consumers.
Sec. 6213. Provision of technical assistance.

                  Subtitle C--Public Safety Commitments

Sec. 6301. State and Local Implementation Fund.
Sec. 6302. State and local implementation.
Sec. 6303. Public safety wireless communications research and 
          development.

                 Subtitle D--Spectrum Auction Authority

Sec. 6401. Deadlines for auction of certain spectrum.
Sec. 6402. General authority for incentive auctions.
Sec. 6403. Special requirements for incentive auction of broadcast TV 
          spectrum.
Sec. 6404. Certain conditions on auction participation prohibited.
Sec. 6405. Extension of auction authority.
Sec. 6406. Unlicensed use in the 5 GHz band.
Sec. 6407. Guard bands and unlicensed use.
Sec. 6408. Study on receiver performance and spectrum efficiency.
Sec. 6409. Wireless facilities deployment.
Sec. 6410. Functional responsibility of NTIA to ensure efficient use of 
          spectrum.
Sec. 6411. System certification.
Sec. 6412. Deployment of 11 GHz, 18 GHz, and 23 GHz microwave bands.
Sec. 6413. Public Safety Trust Fund.
Sec. 6414. Study on emergency communications by amateur radio and 
          impediments to amateur radio communications.

        Subtitle E--Next Generation 9-1-1 Advancement Act of 2012

Sec. 6501. Short title.
Sec. 6502. Definitions.
Sec. 6503. Coordination of 9-1-1 implementation.
Sec. 6504. Requirements for multi-line telephone systems.
Sec. 6505. GAO study of State and local use of 9-1-1 service charges.
Sec. 6506. Parity of protection for provision or use of Next Generation 
          9-1-1 services.
Sec. 6507. Commission proceeding on autodialing.
Sec. 6508. Report on costs for requirements and specifications of Next 
          Generation 9-1-1 services.
Sec. 6509. Commission recommendations for legal and statutory framework 
          for Next Generation 9-1-1 services.

             Subtitle F--Telecommunications Development Fund

Sec. 6601. No additional Federal funds.
Sec. 6602. Independence of the Fund.

                 Subtitle G--Federal Spectrum Relocation

Sec. 6701. Relocation of and spectrum sharing by Federal Government 
          stations.
Sec. 6702. Spectrum Relocation Fund.
Sec. 6703. National security and other sensitive information.

                   TITLE VII--MISCELLANEOUS PROVISIONS

Sec. 7001. Repeal of certain shifts in the timing of corporate estimated 
          tax payments.
Sec. 7002. Repeal of requirement relating to time for remitting certain 
          merchandise processing fees.
Sec. 7003. Treatment for PAYGO purposes.

              TITLE I--EXTENSION OF PAYROLL TAX REDUCTION

SEC. 1001. EXTENSION OF PAYROLL TAX REDUCTION.

    (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) Payroll Tax Holiday Period.--The term `payroll tax 
holiday period' means calendar years 2011 and 2012.''.
    (b) Conforming Amendments.--Section 601 of such Act (26 
U.S.C. 1401 note) is amended by striking subsections (f) and 
(g).
    (c) Effective Date.--The amendments made by this section 
shall apply to remuneration received, and taxable years 
beginning, after December 31, 2011.

  TITLE II--UNEMPLOYMENT BENEFIT CONTINUATION AND PROGRAM IMPROVEMENT

SEC. 2001. SHORT TITLE.

    This title may be cited as the ``Extended Benefits, 
Reemployment, and Program Integrity Improvement Act''.

 Subtitle A--Reforms of Unemployment Compensation to Promote Work and 
                              Job Creation

SEC. 2101. CONSISTENT JOB SEARCH REQUIREMENTS.

    (a) In General.--Section 303(a) of the Social Security Act 
is amended by adding at the end the following:
            ``(12) A requirement that, as a condition of 
        eligibility for regular compensation for any week, a 
        claimant must be able to work, available to work, and 
        actively seeking work.''.
    (b) Effective Date.--The amendment made by subsection (a) 
shall apply to weeks beginning after the end of the first 
session of the State legislature which begins after the date of 
enactment of this Act.

SEC. 2102. STATE FLEXIBILITY TO PROMOTE THE REEMPLOYMENT OF UNEMPLOYED 
                    WORKERS.

    Title III of the Social Security Act (42 U.S.C. 501 and 
following) is amended by adding at the end the following:

                        ``DEMONSTRATION PROJECTS

    ``Sec. 305.  (a) The Secretary of Labor may enter into 
agreements, with up to 10 States that submit an application 
described in subsection (b), for the purpose of allowing such 
States to conduct demonstration projects to test and evaluate 
measures designed--
            ``(1) to expedite the reemployment of individuals 
        who have established a benefit year and are otherwise 
        eligible to claim unemployment compensation under the 
        State law of such State; or
            ``(2) to improve the effectiveness of a State in 
        carrying out its State law with respect to 
        reemployment.
    ``(b) The Governor of any State desiring to conduct a 
demonstration project under this section shall submit an 
application to the Secretary of Labor. Any such application 
shall include--
            ``(1) a general description of the proposed 
        demonstration project, including the authority (under 
        the laws of the State) for the measures to be tested, 
        as well as the period of time during which such 
        demonstration project would be conducted;
            ``(2) if a waiver under subsection (c) is 
        requested, a statement describing the specific aspects 
        of the project to which the waiver would apply and the 
        reasons why such waiver is needed;
            ``(3) a description of the goals and the expected 
        programmatic outcomes of the demonstration project, 
        including how the project would contribute to the 
        objective described in subsection (a)(1), subsection 
        (a)(2), or both;
            ``(4) assurances (accompanied by supporting 
        analysis) that the demonstration project would operate 
        for a period of at least 1 calendar year and not result 
        in any increased net costs to the State's account in 
        the Unemployment Trust Fund;
            ``(5) a description of the manner in which the 
        State--
                    ``(A) will conduct an impact evaluation, 
                using a methodology appropriate to determine 
                the effects of the demonstration project, 
                including on individual skill levels, earnings, 
                and employment retention; and
                    ``(B) will determine the extent to which 
                the goals and outcomes described in paragraph 
                (3) were achieved;
            ``(6) assurances that the State will provide any 
        reports relating to the demonstration project, after 
        its approval, as the Secretary of Labor may require; 
        and
            ``(7) assurances that employment meets the State's 
        suitable work requirement and the requirements of 
        section 3304(a)(5) of the Internal Revenue Code of 
        1986.
    ``(c) The Secretary of Labor may waive any of the 
requirements of section 3304(a)(4) of the Internal Revenue Code 
of 1986 or of paragraph (1) or (5) of section 303(a), to the 
extent and for the period the Secretary of Labor considers 
necessary to enable the State to carry out a demonstration 
project under this section.
    ``(d) A demonstration project under this section--
            ``(1) may be commenced any time after the date of 
        enactment of this section;
            ``(2) may not be approved for a period of time 
        greater than 3 years; and
            ``(3) must be completed by not later than December 
        31, 2015.
    ``(e) Activities that may be pursued under a demonstration 
project under this section are limited to--
            ``(1) subsidies for employer-provided training, 
        such as wage subsidies; and
            ``(2) direct disbursements to employers who hire 
        individuals receiving unemployment compensation, not to 
        exceed the weekly benefit amount for each such 
        individual, to pay part of the cost of wages that 
        exceed the unemployed individual's prior benefit level.
    ``(f) The Secretary of Labor shall, in the case of any 
State for which an application is submitted under subsection 
(b)--
            ``(1) notify the State as to whether such 
        application has been approved or denied within 30 days 
        after receipt of a complete application; and
            ``(2) provide public notice of the decision within 
        10 days after providing notification to the State in 
        accordance with paragraph (1).

Public notice under paragraph (2) may be provided through the 
Internet or other appropriate means. Any application under this 
section that has not been denied within the 30-day period 
described in paragraph (1) shall be deemed approved, and public 
notice of any approval under this sentence shall be provided 
within 10 days thereafter.
    ``(g) The Secretary of Labor may terminate a demonstration 
project under this section if the Secretary determines that the 
State has violated the substantive terms or conditions of the 
project.
    ``(h) Funding certified under section 302(a) may be used 
for an approved demonstration project.''.

SEC. 2103. IMPROVING PROGRAM INTEGRITY BY BETTER RECOVERY OF 
                    OVERPAYMENTS.

    (a) Use of Unemployment Compensation To Repay 
Overpayments.--Section 3304(a)(4)(D) of the Internal Revenue 
Code of 1986 and section 303(g)(1) of the Social Security Act 
are each amended by striking ``may'' and inserting ``shall''.
    (b) Use of Unemployment Compensation To Repay Federal 
Additional Compensation Overpayments.--Section 303(g)(3) of the 
Social Security Act is amended by inserting ``Federal 
additional compensation,'' after ``trade adjustment 
allowances,''.
    (c) Effective Date.--The amendments made by this section 
shall apply to weeks beginning after the end of the first 
session of the State legislature which begins after the date of 
enactment of this Act.

SEC. 2104. DATA EXCHANGE STANDARDIZATION FOR IMPROVED INTEROPERABILITY.

    (a) In General.--Title IX of the Social Security Act is 
amended by adding at the end the following:

     ``DATA EXCHANGE STANDARDIZATION FOR IMPROVED INTEROPERABILITY

                       ``Data Exchange Standards

    ``Sec. 911. (a)(1) The Secretary of Labor, in consultation 
with an interagency work group which shall be established by 
the Office of Management and Budget, and considering State and 
employer perspectives, shall, by rule, designate a data 
exchange standard for any category of information required 
under title III, title XII, or this title.
    ``(2) Data exchange standards designated under paragraph 
(1) shall, to the extent practicable, be nonproprietary and 
interoperable.
    ``(3) In designating data exchange standards under this 
subsection, the Secretary of Labor shall, to the extent 
practicable, incorporate--
            ``(A) interoperable standards developed and 
        maintained by an international voluntary consensus 
        standards body, as defined by the Office of Management 
        and Budget, such as the International Organization for 
        Standardization;
            ``(B) interoperable standards developed and 
        maintained by intergovernmental partnerships, such as 
        the National Information Exchange Model; and
            ``(C) interoperable standards developed and 
        maintained by Federal entities with authority over 
        contracting and financial assistance, such as the 
        Federal Acquisition Regulations Council.

                ``Data Exchange Standards for Reporting

    ``(b)(1) The Secretary of Labor, in consultation with an 
interagency work group established by the Office of Management 
and Budget, and considering State and employer perspectives, 
shall, by rule, designate data exchange standards to govern the 
reporting required under title III, title XII, or this title.
    ``(2) The data exchange standards required by paragraph (1) 
shall, to the extent practicable--
            ``(A) incorporate a widely accepted, 
        nonproprietary, searchable, computer-readable format;
            ``(B) be consistent with and implement applicable 
        accounting principles; and
            ``(C) be capable of being continually upgraded as 
        necessary.
    ``(3) In designating reporting standards under this 
subsection, the Secretary of Labor shall, to the extent 
practicable, incorporate existing nonproprietary standards, 
such as the eXtensible Markup Language.''.
    (b) Effective Dates.--
            (1) Data exchange standards.--The Secretary of 
        Labor shall issue a proposed rule under section 
        911(a)(1) of the Social Security Act (as added by 
        subsection (a)) within 12 months after the date of the 
        enactment of this section, and shall issue a final rule 
        under such section 911(a)(1), after public comment, 
        within 24 months after such date of enactment.
            (2) Data reporting standards.--The reporting 
        standards required under section 911(b)(1) of such Act 
        (as so added) shall become effective with respect to 
        reports required in the first reporting period, after 
        the effective date of the final rule referred to in 
        paragraph (1) of this subsection, for which the 
        authority for data collection and reporting is 
        established or renewed under the Paperwork Reduction 
        Act.

SEC. 2105. DRUG TESTING OF APPLICANTS.

    Section 303 of the Social Security Act is amended by adding 
at the end the following:
    ``(l)(1) Nothing in this Act or any other provision of 
Federal law shall be considered to prevent a State from 
enacting legislation to provide for--
            ``(A) testing an applicant for unemployment 
        compensation for the unlawful use of controlled 
        substances as a condition for receiving such 
        compensation, if such applicant--
                    ``(i) was terminated from employment with 
                the applicant's most recent employer (as 
                defined under the State law) because of the 
                unlawful use of controlled substances; or
                    ``(ii) is an individual for whom suitable 
                work (as defined under the State law) is only 
                available in an occupation that regularly 
                conducts drug testing (as determined under 
                regulations issued by the Secretary of Labor); 
                or
            ``(B) denying such compensation to such applicant 
        on the basis of the result of the testing conducted by 
        the State under legislation described in subparagraph 
        (A).
    ``(2) For purposes of this subsection--
            ``(A) the term `unemployment compensation' has the 
        meaning given such term in subsection (d)(2)(A); and
            ``(B) the term `controlled substance' has the 
        meaning given such term in section 102 of the 
        Controlled Substances Act (21 U.S.C. 802).''.

          Subtitle B--Provisions Relating To Extended Benefits

SEC. 2121. SHORT TITLE.

    This subtitle may be cited as the ``Unemployment Benefits 
Extension Act of 2012''.

SEC. 2122. EXTENSION AND MODIFICATION OF EMERGENCY UNEMPLOYMENT 
                    COMPENSATION PROGRAM.

    (a) Extension.--Section 4007 of the Supplemental 
Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 
note) is amended--
            (1) in subsection (a)--
                    (A) by striking ``Except as provided in 
                subsection (b), an'' and inserting ``An''; and
                    (B) by striking ``March 6, 2012'' and 
                inserting ``January 2, 2013''; and
            (2) by striking subsection (b) and inserting the 
        following:
    ``(b) Termination.--No compensation under this title shall 
be payable for any week subsequent to the last week described 
in subsection (a).''.
    (b) Modifications Relating to Triggers.--
            (1) For second-tier emergency unemployment 
        compensation.--Section 4002(c) of such Act is amended--
                    (A) in the subsection heading, by striking 
                ``Special Rule'' and inserting ``Second-tier 
                Emergency Unemployment Compensation'';
                    (B) in paragraph (1), by striking ``At'' 
                and all that follows through ``augmented by an 
                amount'' and inserting ``If, at the time that 
                the amount established in an individual's 
                account under subsection (b) is exhausted or at 
                any time thereafter, such individual's State is 
                in an extended benefit period (as determined 
                under paragraph (2)), such account shall be 
                augmented by an amount (hereinafter `second-
                tier emergency unemployment compensation')'';
                    (C) by redesignating paragraph (2) as 
                paragraph (4); and
                    (D) by inserting after paragraph (1) the 
                following:
            ``(2) Extended benefit period.--For purposes of 
        paragraph (1), a State shall be considered to be in an 
        extended benefit period, as of any given time, if such 
        a period would then be in effect for such State under 
        such Act if--
                    ``(A) section 203(f) of the Federal-State 
                Extended Unemployment Compensation Act of 1970 
                were applied to such State (regardless of 
                whether the State by law had provided for such 
                application); and
                    ``(B) such section 203(f)--
                            ``(i) were applied by substituting 
                        the applicable percentage under 
                        paragraph (3) for `6.5 percent' in 
                        paragraph (1)(A)(i) thereof; and
                            ``(ii) did not include the 
                        requirement under paragraph (1)(A)(ii) 
                        thereof.
            ``(3) Applicable percentage.--The applicable 
        percentage under this paragraph is, for purposes of 
        determining if a State is in an extended benefit period 
        as of a date occurring in a week ending--
                    ``(A) before June 1, 2012, 0 percent; and
                    ``(B) after the last week under 
                subparagraph (A), 6 percent.''.
            (2) For third-tier emergency unemployment 
        compensation.--Section 4002(d) of such Act is amended--
                    (A) in paragraph (2)(A), by striking 
                ``under such Act'' and inserting ``under the 
                Federal-State Extended Unemployment 
                Compensation Act of 1970'';
                    (B) in paragraph (2)(B)(ii)(I), by striking 
                the matter after ``substituting'' and before 
                ``in paragraph (1)(A)(i) thereof'' and 
                inserting ``the applicable percentage under 
                paragraph (3) for `6.5 percent''';
                    (C) by redesignating paragraph (3) as 
                paragraph (4); and
                    (D) by inserting after paragraph (2) the 
                following:
            ``(3) Applicable percentage.--The applicable 
        percentage under this paragraph is, for purposes of 
        determining if a State is in an extended benefit period 
        as of a date occurring in a week ending--
                    ``(A) before June 1, 2012, 6 percent; and
                    ``(B) after the last week under 
                subparagraph (A), 7 percent.''.
            (3) For fourth-tier emergency unemployment 
        compensation.--Section 4002(e) of such Act is amended--
                    (A) in paragraph (2)(A), by striking 
                ``under such Act'' and inserting ``under the 
                Federal-State Extended Unemployment 
                Compensation Act of 1970'';
                    (B) in paragraph (2)(B)(ii)(I), by striking 
                the matter after ``substituting'' and before 
                ``in paragraph (1)(A)(i) thereof'' and 
                inserting ``the applicable percentage under 
                paragraph (3) for `6.5 percent''';
                    (C) by redesignating paragraph (3) as 
                paragraph (4); and
                    (D) by inserting after paragraph (2) the 
                following:
            ``(3) Applicable percentage.--The applicable 
        percentage under this paragraph is, for purposes of 
        determining if a State is in an extended benefit period 
        as of a date occurring in a week ending--
                    ``(A) before June 1, 2012, 8.5 percent; and
                    ``(B) after the last week under 
                subparagraph (A), 9 percent.''.
    (c) Modifications Relating to Weeks of Emergency 
Unemployment Compensation.--
            (1) Number of weeks in first tier beginning after 
        september 2, 2012.--Section 4002(b) of such Act is 
        amended--
                    (A) by redesignating paragraph (2) as 
                paragraph (3); and
                    (B) by inserting after paragraph (1) the 
                following:
            ``(2) Special rule relating to amounts established 
        in an account as of a week ending after september 2, 
        2012.--Notwithstanding any provision of paragraph (1), 
        in the case of any account established as of a week 
        ending after September 2, 2012--
                    ``(A) paragraph (1)(A) shall be applied by 
                substituting `54 percent' for `80 percent'; and
                    ``(B) paragraph (1)(B) shall be applied by 
                substituting `14 weeks' for `20 weeks'.''.
            (2) Number of weeks in third tier beginning after 
        september 2, 2012.--Section 4002(d) of such Act is 
        amended by adding after paragraph (4) (as so 
        redesignated by subsection (b)(2)(C)) the following:
            ``(5) Special rule relating to amounts added to an 
        account as of a week ending after september 2, 2012.--
        Notwithstanding any provision of paragraph (1), if 
        augmentation under this subsection occurs as of a week 
        ending after September 2, 2012--
                    ``(A) paragraph (1)(A) shall be applied by 
                substituting `35 percent' for `50 percent'; and
                    ``(B) paragraph (1)(B) shall be applied by 
                substituting `9 times' for `13 times'.''.
            (3) Number of weeks in fourth tier.--Section 
        4002(e) of such Act is amended by adding after 
        paragraph (4) (as so redesignated by subsection 
        (b)(3)(C)) the following:
            ``(5) Special rules relating to amounts added to an 
        account.--
                    ``(A) March to may of 2012.--
                            ``(i) Special rule.--
                        Notwithstanding any provision of 
                        paragraph (1) but subject to the 
                        following 2 sentences, if augmentation 
                        under this subsection occurs as of a 
                        week ending after the date of enactment 
                        of this paragraph and before June 1, 
                        2012 (or if, as of such date of 
                        enactment, any fourth-tier amounts 
                        remain in the individual's account)--
                                    ``(I) paragraph (1)(A) 
                                shall be applied by 
                                substituting `62 percent' for 
                                `24 percent'; and
                                    ``(II) paragraph (1)(B) 
                                shall be applied by 
                                substituting `16 times' for `6 
                                times'.

                        The preceding sentence shall apply only 
                        if, at the time that the account would 
                        be augmented under this subparagraph, 
                        such individual's State is not in an 
                        extended benefit period as determined 
                        under the Federal-State Extended 
                        Unemployment Compensation Act of 1970. 
                        In no event shall the total amount 
                        added to the account of an individual 
                        under this subparagraph cause, in the 
                        case of an individual described in the 
                        parenthetical matter in the first 
                        sentence of this clause, the sum of the 
                        total amount previously added to such 
                        individual's account under this 
                        subsection (as in effect before the 
                        date of enactment of this paragraph) 
                        and any further amounts added as a 
                        result of the enactment of this clause, 
                        to exceed the total amount allowable 
                        under subclause (I) or (II), as the 
                        case may be.
                            ``(ii) Limitation.--Notwithstanding 
                        any other provision of this title, the 
                        amounts added to the account of an 
                        individual under this subparagraph may 
                        not cause the sum of the amounts 
                        previously established in or added to 
                        such account, plus any weeks of 
                        extended benefits provided to such 
                        individual under the Federal-State 
                        Extended Unemployment Compensation Act 
                        of 1970 (based on the same exhaustion 
                        of regular compensation under section 
                        4001(b)(1)), to in the aggregate exceed 
                        the lesser of--
                                    ``(I) 282 percent of the 
                                total amount of regular 
                                compensation (including 
                                dependents' allowances) payable 
                                to the individual during the 
                                individual's benefit year under 
                                the State law; or
                                    ``(II) 73 times the 
                                individual's average weekly 
                                benefit amount (as determined 
                                under subsection (b)(3)) for 
                                the benefit year.
                    ``(B) After august of 2012.--
                Notwithstanding any provision of paragraph (1), 
                if augmentation under this subsection occurs as 
                of a week ending after September 2, 2012--
                            ``(i) paragraph (1)(A) shall be 
                        applied by substituting `39 percent' 
                        for `24 percent'; and
                            ``(ii) paragraph (1)(B) shall be 
                        applied by substituting `10 times' for 
                        `6 times'.''.
    (d) Order of Payments Requirement.--
            (1) In general.--Section 4001(e) of such Act is 
        amended to read as follows:
    ``(e) Coordination Rule.--An agreement under this section 
shall apply with respect to a State only upon a determination 
by the Secretary that, under the State law or other applicable 
rules of such State, the payment of extended compensation for 
which an individual is otherwise eligible must be deferred 
until after the payment of any emergency unemployment 
compensation under section 4002, as amended by the Unemployment 
Benefits Extension Act of 2012, for which the individual is 
concurrently eligible.''.
            (2) Technical and conforming amendments.--Section 
        4001(b)(2) of such Act is amended--
                    (A) by striking ``or extended 
                compensation''; and
                    (B) by striking ``law (except as provided 
                under subsection (e));'' and inserting 
                ``law;''.
    (e) Funding.--Section 4004(e)(1) of such Act is amended--
            (1) in subparagraph (G), by striking ``and'' at the 
        end; and
            (2) by inserting after subparagraph (H) the 
        following:
                    ``(I) the amendments made by section 2122 
                of the Unemployment Benefits Extension Act of 
                2012; and''.
    (f) Effective Dates.--
            (1) In general.--The amendments made by subsections 
        (b), (c), and (d) shall take effect as of February 28, 
        2012, and shall apply with respect to weeks of 
        unemployment beginning after that date.
            (2) Week defined.--For purposes of this subsection, 
        the term ``week'' has the meaning given such term under 
        section 4006 of the Supplemental Appropriations Act, 
        2008.

SEC. 2123. TEMPORARY EXTENSION OF EXTENDED BENEFIT PROVISIONS.

    (a) In General.--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), is amended--
            (1) by striking ``March 7, 2012'' each place it 
        appears and inserting ``December 31, 2012''; and
            (2) in subsection (c), by striking ``August 15, 
        2012'' and inserting ``June 30, 2013''.
    (b) Extension of Matching for States With no Waiting 
Week.--Section 5 of the Unemployment Compensation Extension Act 
of 2008 (Public Law 110-449; 26 U.S.C. 3304 note) is amended by 
striking ``August 15, 2012'' and inserting ``June 30, 2013''.
    (c) Extension of Modification of Indicators Under the 
Extended Benefit Program.--Section 203 of the Federal-State 
Extended Unemployment Compensation Act of 1970 (26 U.S.C. 3304 
note) is amended--
            (1) in subsection (d), by striking ``February 29, 
        2012'' and inserting ``December 31, 2012''; and
            (2) in subsection (f)(2), by striking ``February 
        29, 2012'' and inserting ``December 31, 2012''.
    (d) Effective Date.--The amendments made by this section 
shall take effect as if included in the enactment of the 
Temporary Payroll Tax Cut Continuation Act of 2011 (Public Law 
112-78).

SEC. 2124. ADDITIONAL 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 96 
111-5) and as amended by section 9 of the Worker, 
Homeownership, and Business Assistance Act of 2009 (Public Law 
111-92), section 505 of the Tax Relief, Unemployment Insurance 
Reauthorization, and Job Creation Act of 2010 (Public Law 111-
312), and section 202 of the Temporary Payroll Tax Cut 
Continuation Act of 2011 (Public Law 112-78), is amended--
            (1) by striking ``August 31, 2011'' and inserting 
        ``June 30, 2012''; and
            (2) by striking ``February 29, 2012'' and inserting 
        ``December 31, 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 enactment of this Act.
    (c) Funding for Administration.--Out of any funds in the 
Treasury not otherwise appropriated, there are appropriated to 
the Railroad Retirement Board $500,000 for administrative 
expenses associated with the payment of additional extended 
unemployment benefits provided under section 2(c)(2)(D) of the 
Railroad Unemployment Insurance Act by reason of the amendments 
made by subsection (a), to remain available until expended.

   Subtitle C--Improving Reemployment Strategies Under the Emergency 
                   Unemployment Compensation Program

SEC. 2141. IMPROVED WORK SEARCH FOR THE LONG-TERM UNEMPLOYED.

    (a) In General.--Section 4001(b) of the Supplemental 
Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 
note) is amended--
            (1) by striking ``and'' at the end of paragraph 
        (2);
            (2) by striking the period at the end of paragraph 
        (3) and inserting ``; and''; and
            (3) by adding at the end the following:
            ``(4) are able to work, available to work, and 
        actively seeking work.''.
    (b) Actively Seeking Work.--Section 4001 of such Act is 
amended by adding at the end the following:
    ``(h) Actively Seeking Work.--
            ``(1) In general.--For purposes of subsection 
        (b)(4), the term `actively seeking work' means, with 
        respect to any individual, that such individual--
                    ``(A) is registered for employment services 
                in such a manner and to such extent as 
                prescribed by the State agency;
                    ``(B) has engaged in an active search for 
                employment that is appropriate in light of the 
                employment available in the labor market, the 
                individual's skills and capabilities, and 
                includes a number of employer contacts that is 
                consistent with the standards communicated to 
                the individual by the State;
                    ``(C) has maintained a record of such work 
                search, including employers contacted, method 
                of contact, and date contacted; and
                    ``(D) when requested, has provided such 
                work search record to the State agency.
            ``(2) Random auditing.--The Secretary shall 
        establish for each State a minimum number of claims for 
        which work search records must be audited on a random 
        basis in any given week.''.

SEC. 2142. REEMPLOYMENT SERVICES AND REEMPLOYMENT AND ELIGIBILITY 
                    ASSESSMENT ACTIVITIES.

    (a) Provision of Services and Activities.--Section 4001 of 
such Act, as amended by section 2141(b), is further amended by 
added at the end the following:
    ``(i) Provision of Services and Activities.--
            ``(1) In general.--An agreement under this section 
        shall require the following:
                    ``(A) The State which is party to such 
                agreement shall provide reemployment services 
                and reemployment and eligibility assessment 
                activities to each individual--
                            ``(i) who, on or after the 30th day 
                        after the date of enactment of the 
                        Extended Benefits, Reemployment, and 
                        Program Integrity Improvement Act, 
                        begins receiving amounts described in 
                        subsections (b) and (c); and
                            ``(ii) while such individual 
                        continues to receive emergency 
                        unemployment compensation under this 
                        title.
                    ``(B) As a condition of eligibility for 
                emergency unemployment compensation for any 
                week--
                            ``(i) a claimant who has been duly 
                        referred to reemployment services shall 
                        participate in such services; and
                            ``(ii) a claimant shall be actively 
                        seeking work (determined applying 
                        subsection (i)).
            ``(2) Description of services and activities.--The 
        reemployment services and in-person reemployment and 
        eligibility assessment activities provided to 
        individuals receiving emergency unemployment 
        compensation described in paragraph (1)--
                    ``(A) shall include--
                            ``(i) the provision of labor market 
                        and career information;
                            ``(ii) an assessment of the skills 
                        of the individual;
                            ``(iii) orientation to the services 
                        available through the one-stop centers 
                        established under title I of the 
                        Workforce Investment Act of 1998; and
                            ``(iv) review of the eligibility of 
                        the individual for emergency 
                        unemployment compensation relating to 
                        the job search activities of the 
                        individual; and
                    ``(B) may include the provision of--
                            ``(i) comprehensive and specialized 
                        assessments;
                            ``(ii) individual and group career 
                        counseling;
                            ``(iii) training services;
                            ``(iv) additional reemployment 
                        services; and
                            ``(v) job search counseling and the 
                        development or review of an individual 
                        reemployment plan that includes 
                        participation in job search activities 
                        and appropriate workshops.
            ``(3) Participation requirement.--As a condition of 
        continuing eligibility for emergency unemployment 
        compensation for any week, an individual who has been 
        referred to reemployment services or reemployment and 
        eligibility assessment activities under this subsection 
        shall participate in such services or activities, 
        unless the State agency responsible for the 
        administration of State unemployment compensation law 
        determines that--
                    ``(A) such individual has completed 
                participating in such services or activities; 
                or
                    ``(B) there is justifiable cause for 
                failure to participate or to complete 
                participating in such services or activities, 
                as determined in accordance with guidance to be 
                issued by the Secretary.''.
    (b) Issuance of Guidance.--Not later than 30 days after the 
date of enactment of this Act, the Secretary shall issue 
guidance on the implementation of the reemployment services and 
reemployment and eligibility assessment activities required to 
be provided under the amendment made by subsection (a).
    (c) Funding.--
            (1) In general.--Section 4004(c) of the 
        Supplemental Appropriations Act, 2008 (Public Law 110-
        252; 26 U.S.C. 3304 note) is amended--
                    (A) by striking ``States.--There'' and 
                inserting the following: ``States.--
            ``(1) Administration.--There''; and
                    (B) by adding at the end the following new 
                paragraph:
            ``(2) Reemployment services and reemployment and 
        eligibility assessment activities.--
                    ``(A) Appropriation.--There are 
                appropriated from the general fund of the 
                Treasury, for the period of fiscal year 2012 
                through fiscal year 2013, out of the employment 
                security administration account (as established 
                by section 901(a) of the Social Security Act), 
                such sums as determined by the Secretary of 
                Labor in accordance with subparagraph (B) to 
                assist States in providing reemployment 
                services and reemployment and eligibility 
                assessment activities described in section 
                4001(h)(2).
                    ``(B) Determination of total amount.--The 
                amount referred to in subparagraph (A) is the 
                amount the Secretary of Labor estimates is 
                equal to--
                            ``(i) the number of individuals who 
                        will receive reemployment services and 
                        reemployment eligibility and assessment 
                        activities described in section 
                        4001(h)(2) in all States through the 
                        date specified in section 4007(b)(3); 
                        multiplied by
                            ``(ii) $85.
                    ``(C) Distribution among states.--Of the 
                amounts appropriated under subparagraph (A), 
                the Secretary of Labor shall distribute amounts 
                to each State, in accordance with section 
                4003(c), that the Secretary estimates is equal 
                to--
                            ``(i) the number of individuals who 
                        will receive reemployment services and 
                        reemployment and eligibility assessment 
                        activities described in section 
                        4001(h)(2) in such State through the 
                        date specified in section 4007(b)(3); 
                        multiplied by
                            ``(ii) $85.''.
            (2) Transfer of funds.--Section 4004(e) of the 
        Supplemental Appropriations Act, 2008 (Public Law 110-
        252; 26 U.S.C. 3304 note) is amended--
                    (A) in paragraph (1)(G), by striking 
                ``and'' at the end;
                    (B) in paragraph (2), by striking the 
                period at the end and inserting ``; and''; and
                    (C) by adding at the end the following 
                paragraph:
            ``(3) to the Employment Security Administration 
        account (as established by section 901(a) of the Social 
        Security Act) such sums as the Secretary of Labor 
        determines to be necessary in accordance with 
        subsection (c)(2) to assist States in providing 
        reemployment services and reemployment eligibility and 
        assessment activities described in section 
        4001(h)(2).''.

SEC. 2143. PROMOTING PROGRAM INTEGRITY THROUGH BETTER RECOVERY OF 
                    OVERPAYMENTS.

    Section 4005(c)(1) of the Supplemental Appropriations Act, 
2008 (Public Law 110-252; 26 U.S.C. 3304 note) is amended--
            (1) by striking ``may'' and inserting ``shall''; 
        and
            (2) by striking ``except that'' and all that 
        follows through ``made'' and inserting ``in accordance 
        with the same procedures as apply to the recovery of 
        overpayments of regular unemployment benefits paid by 
        the State''.

SEC. 2144. RESTORE STATE FLEXIBILITY TO IMPROVE UNEMPLOYMENT PROGRAM 
                    SOLVENCY.

    Subsection (g) of section 4001 of the Supplemental 
Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 
note) shall not apply with respect to a State that has enacted 
a law before March 1, 2012, that, upon taking effect, would 
violate such subsection.

              Subtitle D--Short-Time Compensation Program

SEC. 2160. SHORT TITLE.

    This subtitle may be cited as the ``Layoff Prevention Act 
of 2012''.

SEC. 2161. TREATMENT OF SHORT-TIME COMPENSATION PROGRAMS.

    (a) Definition.--
            (1) In general.--Section 3306 of the Internal 
        Revenue Code of 1986 (26 U.S.C. 3306) is amended by 
        adding at the end the following new subsection:
    ``(v) Short-Time Compensation Program.--For purposes of 
this part, the term `short-time compensation program' means a 
program under which--
            ``(1) the participation of an employer is 
        voluntary;
            ``(2) an employer reduces the number of hours 
        worked by employees in lieu of layoffs;
            ``(3) such employees whose workweeks have been 
        reduced by at least 10 percent, and by not more than 
        the percentage, if any, that is determined by the State 
        to be appropriate (but in no case more than 60 
        percent), are not disqualified from unemployment 
        compensation;
            ``(4) the amount of unemployment compensation 
        payable to any such employee is a pro rata portion of 
        the unemployment compensation which would otherwise be 
        payable to the employee if such employee were 
        unemployed;
            ``(5) such employees meet the availability for work 
        and work search test requirements while collecting 
        short-time compensation benefits, by being available 
        for their workweek as required by the State agency;
            ``(6) eligible employees may participate, as 
        appropriate, in training (including employer-sponsored 
        training or worker training funded under the Workforce 
        Investment Act of 1998) to enhance job skills if such 
        program has been approved by the State agency;
            ``(7) the State agency shall require employers to 
        certify that if the employer provides health benefits 
        and retirement benefits under a defined benefit plan 
        (as defined in section 414(j)) or contributions under a 
        defined contribution plan (as defined in section 
        414(i)) to any employee whose workweek is reduced under 
        the program that such benefits will continue to be 
        provided to employees participating in the short-time 
        compensation program under the same terms and 
        conditions as though the workweek of such employee had 
        not been reduced or to the same extent as other 
        employees not participating in the short-time 
        compensation program;
            ``(8) the State agency shall require an employer to 
        submit a written plan describing the manner in which 
        the requirements of this subsection will be implemented 
        (including a plan for giving advance notice, where 
        feasible, to an employee whose workweek is to be 
        reduced) together with an estimate of the number of 
        layoffs that would have occurred absent the ability to 
        participate in short-time compensation and such other 
        information as the Secretary of Labor determines is 
        appropriate;
            ``(9) the terms of the employer's written plan and 
        implementation shall be consistent with employer 
        obligations under applicable Federal and State laws; 
        and
            ``(10) upon request by the State and approval by 
        the Secretary of Labor, only such other provisions are 
        included in the State law that are determined to be 
        appropriate for purposes of a short-time compensation 
        program.''.
            (2) Effective date.--Subject to paragraph (3), the 
        amendment made by paragraph (1) shall take effect on 
        the date of the enactment of this Act.
            (3) Transition period for existing programs.--In 
        the case of a State that is administering a short-time 
        compensation program as of the date of the enactment of 
        this Act and the State law cannot be administered 
        consistent with the amendment made by paragraph (1), 
        such amendment shall take effect on the earlier of--
                    (A) the date the State changes its State 
                law in order to be consistent with such 
                amendment; or
                    (B) the date that is 2 years and 6 months 
                after the date of the enactment of this Act.
    (b) Conforming Amendments.--
            (1) Internal revenue code of 1986.--
                    (A) Subparagraph (E) of section 3304(a)(4) 
                of the Internal Revenue Code of 1986 is amended 
                to read as follows:
                    ``(E) amounts may be withdrawn for the 
                payment of short-time compensation under a 
                short-time compensation program (as defined 
                under section 3306(v));''.
                    (B) Subsection (f) of section 3306 of the 
                Internal Revenue Code of 1986 is amended--
                            (i) by striking paragraph (5) 
                        (relating to short-time compensation) 
                        and inserting the following new 
                        paragraph:
            ``(5) amounts may be withdrawn for the payment of 
        short-time compensation under a short-time compensation 
        program (as defined in subsection (v)); and''; and
                            (ii) by redesignating paragraph (5) 
                        (relating to self-employment assistance 
                        program) as paragraph (6).
            (2) Social security act.--Section 303(a)(5) of the 
        Social Security Act is amended by striking ``the 
        payment of short-time compensation under a plan 
        approved by the Secretary of Labor'' and inserting 
        ``the payment of short-time compensation under a short-
        time compensation program (as defined in section 
        3306(v) of the Internal Revenue Code of 1986)''.
            (3) Unemployment compensation amendments of 1992.--
        Subsections (b) through (d) of section 401 of the 
        Unemployment Compensation Amendments of 1992 (26 U.S.C. 
        3304 note) are repealed.

SEC. 2162. TEMPORARY FINANCING OF SHORT-TIME COMPENSATION PAYMENTS IN 
                    STATES WITH PROGRAMS IN LAW.

    (a) Payments to States.--
            (1) In general.--Subject to paragraph (3), there 
        shall be paid to a State an amount equal to 100 percent 
        of the amount of short-time compensation paid under a 
        short-time compensation program (as defined in section 
        3306(v) of the Internal Revenue Code of 1986, as added 
        by section 2161(a)) under the provisions of the State 
        law.
            (2) Terms of payments.--Payments made to a State 
        under paragraph (1) shall be payable by way of 
        reimbursement in such amounts as the Secretary 
        estimates the State will be entitled to receive under 
        this section for each calendar month, reduced or 
        increased, as the case may be, by any amount by which 
        the Secretary finds that the Secretary's estimates for 
        any prior calendar month were greater or less than the 
        amounts which should have been paid to the State. Such 
        estimates may be made on the basis of such statistical, 
        sampling, or other method as may be agreed upon by the 
        Secretary and the State agency of the State involved.
            (3) Limitations on payments.--
                    (A) General payment limitations.--No 
                payments shall be made to a State under this 
                section for short-time compensation paid to an 
                individual by the State during a benefit year 
                in excess of 26 times the amount of regular 
                compensation (including dependents' allowances) 
                under the State law payable to such individual 
                for a week of total unemployment.
                    (B) Employer limitations.--No payments 
                shall be made to a State under this section for 
                benefits paid to an individual by the State 
                under a short-time compensation program if such 
                individual is employed by the participating 
                employer on a seasonal, temporary, or 
                intermittent basis.
    (b) Applicability.--
            (1) In general.--Payments to a State under 
        subsection (a) shall be available for weeks of 
        unemployment--
                    (A) beginning on or after the date of the 
                enactment of this Act; and
                    (B) ending on or before the date that is 3 
                years and 6 months after the date of the 
                enactment of this Act.
            (2) Three-year funding limitation for combined 
        payments under this section and section 2163.--States 
        may receive payments under this section and section 
        2163 with respect to a total of not more than 156 
        weeks.
    (c) Two-Year Transition Period for Existing Programs.--
During any period that the transition provision under section 
2161(a)(3) is applicable to a State with respect to a short-
time compensation program, such State shall be eligible for 
payments under this section. Subject to paragraphs (1)(B) and 
(2) of subsection (b), if at any point after the date of the 
enactment of this Act the State enacts a State law providing 
for the payment of short-time compensation under a short-time 
compensation program that meets the definition of such a 
program under section 3306(v) of the Internal Revenue Code of 
1986, as added by section 2161(a), the State shall be eligible 
for payments under this section after the effective date of 
such enactment.
    (d) Funding and Certifications.--
            (1) Funding.--There are appropriated, out of moneys 
        in the Treasury not otherwise appropriated, such sums 
        as may be necessary for purposes of carrying out this 
        section.
            (2) Certifications.--The Secretary shall from time 
        to time certify to the Secretary of the Treasury for 
        payment to each State the sums payable to such State 
        under this section.
    (e) Definitions.--In this section:
            (1) Secretary.--The term ``Secretary'' means the 
        Secretary of Labor.
            (2) State; state agency; state law.--The terms 
        ``State'', ``State agency'', and ``State law'' have the 
        meanings given those terms in section 205 of the 
        Federal-State Extended Unemployment Compensation Act of 
        1970 (26 U.S.C. 3304 note).

SEC. 2163. TEMPORARY FINANCING OF SHORT-TIME COMPENSATION AGREEMENTS.

    (a) Federal-State Agreements.--
            (1) In general.--Any State which desires to do so 
        may enter into, and participate in, an agreement under 
        this section with the Secretary provided that such 
        State's law does not provide for the payment of short-
        time compensation under a short-time compensation 
        program (as defined in section 3306(v) of the Internal 
        Revenue Code of 1986, as added by section 2161(a)).
            (2) Ability to terminate.--Any State which is a 
        party to an agreement under this section may, upon 
        providing 30 days' written notice to the Secretary, 
        terminate such agreement.
    (b) Provisions of Federal-State Agreement.--
            (1) In general.--Any agreement under this section 
        shall provide that the State agency of the State will 
        make payments of short-time compensation under a plan 
        approved by the State. Such plan shall provide that 
        payments are made in accordance with the requirements 
        under section 3306(v) of the Internal Revenue Code of 
        1986, as added by section 2161(a).
            (2) Limitations on plans.--
                    (A) General payment limitations.--A short-
                time compensation plan approved by a State 
                shall not permit the payment of short-time 
                compensation to an individual by the State 
                during a benefit year in excess of 26 times the 
                amount of regular compensation (including 
                dependents' allowances) under the State law 
                payable to such individual for a week of total 
                unemployment.
                    (B) Employer limitations.--A short-time 
                compensation plan approved by a State shall not 
                provide payments to an individual if such 
                individual is employed by the participating 
                employer on a seasonal, temporary, or 
                intermittent basis.
            (3) Employer payment of costs.--Any short-time 
        compensation plan entered into by an employer must 
        provide that the employer will pay the State an amount 
        equal to one-half of the amount of short-time 
        compensation paid under such plan. Such amount shall be 
        deposited in the State's unemployment fund and shall 
        not be used for purposes of calculating an employer's 
        contribution rate under section 3303(a)(1) of the 
        Internal Revenue Code of 1986.
    (c) Payments to States.--
            (1) In general.--There shall be paid to each State 
        with an agreement under this section an amount equal 
        to--
                    (A) one-half of the amount of short-time 
                compensation paid to individuals by the State 
                pursuant to such agreement; and
                    (B) any additional administrative expenses 
                incurred by the State by reason of such 
                agreement (as determined by the Secretary).
            (2) Terms of payments.--Payments made to a State 
        under paragraph (1) shall be payable by way of 
        reimbursement in such amounts as the Secretary 
        estimates the State will be entitled to receive under 
        this section for each calendar month, reduced or 
        increased, as the case may be, by any amount by which 
        the Secretary finds that the Secretary's estimates for 
        any prior calendar month were greater or less than the 
        amounts which should have been paid to the State. Such 
        estimates may be made on the basis of such statistical, 
        sampling, or other method as may be agreed upon by the 
        Secretary and the State agency of the State involved.
            (3) Funding.--There are appropriated, out of moneys 
        in the Treasury not otherwise appropriated, such sums 
        as may be necessary for purposes of carrying out this 
        section.
            (4) Certifications.--The Secretary shall from time 
        to time certify to the Secretary of the Treasury for 
        payment to each State the sums payable to such State 
        under this section.
    (d) Applicability.--
            (1) In general.--An agreement entered into under 
        this section shall apply to weeks of unemployment--
                    (A) beginning on or after the date on which 
                such agreement is entered into; and
                    (B) ending on or before the date that is 2 
                years and 13 weeks after the date of the 
                enactment of this Act.
            (2) Two-year funding limitation.--States may 
        receive payments under this section with respect to a 
        total of not more than 104 weeks.
    (e) Special Rule.--If a State has entered into an agreement 
under this section and subsequently enacts a State law 
providing for the payment of short-time compensation under a 
short-time compensation program that meets the definition of 
such a program under section 3306(v) of the Internal Revenue 
Code of 1986, as added by section 2161(a), the State--
            (1) shall not be eligible for payments under this 
        section for weeks of unemployment beginning after the 
        effective date of such State law; and
            (2) subject to paragraphs (1)(B) and (2) of section 
        2162(b), shall be eligible to receive payments under 
        section 2162 after the effective date of such State 
        law.
    (f) Definitions.--In this section:
            (1) Secretary.--The term ``Secretary'' means the 
        Secretary of Labor.
            (2) State; state agency; state law.--The terms 
        ``State'', ``State agency'', and ``State law'' have the 
        meanings given those terms in section 205 of the 
        Federal-State Extended Unemployment Compensation Act of 
        1970 (26 U.S.C. 3304 note).

SEC. 2164. GRANTS FOR SHORT-TIME COMPENSATION PROGRAMS.

    (a) Grants.--
            (1) For implementation or improved 
        administration.--The Secretary shall award grants to 
        States that enact short-time compensation programs (as 
        defined in subsection (i)(2)) for the purpose of 
        implementation or improved administration of such 
        programs.
            (2) For promotion and enrollment.--The Secretary 
        shall award grants to States that are eligible and 
        submit plans for a grant under paragraph (1) for such 
        States to promote and enroll employers in short-time 
        compensation programs (as so defined).
            (3) Eligibility.--
                    (A) In general.--The Secretary shall 
                determine eligibility criteria for the grants 
                under paragraphs (1) and (2).
                    (B) Clarification.--A State administering a 
                short-time compensation program, including a 
                program being administered by a State that is 
                participating in the transition under the 
                provisions of sections 301(a)(3) and 302(c), 
                that does not meet the definition of a short-
                time compensation program under section 3306(v) 
                of the Internal Revenue Code of 1986 (as added 
                by 211(a)), and a State with an agreement under 
                section 2163, shall not be eligible to receive 
                a grant under this section until such time as 
                the State law of the State provides for 
                payments under a short-time compensation 
                program that meets such definition and such 
                law.
    (b) Amount of Grants.--
            (1) In general.--The maximum amount available for 
        making grants to a State under paragraphs (1) and (2) 
        shall be equal to the amount obtained by multiplying 
        $100,000,000 (less the amount used by the Secretary 
        under subsection (e)) by the same ratio as would apply 
        under subsection (a)(2)(B) of section 903 of the Social 
        Security Act (42 U.S.C. 1103) for purposes of 
        determining such State's share of any excess amount (as 
        described in subsection (a)(1) of such section) that 
        would have been subject to transfer to State accounts, 
        as of October 1, 2010, under the provisions of 
        subsection (a) of such section.
            (2) Amount available for different grants.--Of the 
        maximum incentive payment determined under paragraph 
        (1) with respect to a State--
                    (A) one-third shall be available for a 
                grant under subsection (a)(1); and
                    (B) two-thirds shall be available for a 
                grant under subsection (a)(2).
    (c) Grant Application and Disbursal.--
            (1) Application.--Any State seeking a grant under 
        paragraph (1) or (2) of subsection (a) shall submit an 
        application to the Secretary at such time, in such 
        manner, and complete with such information as the 
        Secretary may require. In no case may the Secretary 
        award a grant under this section with respect to an 
        application that is submitted after December 31, 2014.
            (2) Notice.--The Secretary shall, within 30 days 
        after receiving a complete application, notify the 
        State agency of the State of the Secretary's findings 
        with respect to the requirements for a grant under 
        paragraph (1) or (2) (or both) of subsection (a).
            (3) Certification.--If the Secretary finds that the 
        State law provisions meet the requirements for a grant 
        under subsection (a), the Secretary shall thereupon 
        make a certification to that effect to the Secretary of 
        the Treasury, together with a certification as to the 
        amount of the grant payment to be transferred to the 
        State account in the Unemployment Trust Fund (as 
        established in section 904(a) of the Social Security 
        Act (42 U.S.C. 1104(a))) pursuant to that finding. The 
        Secretary of the Treasury shall make the appropriate 
        transfer to the State account within 7 days after 
        receiving such certification.
            (4) Requirement.--No certification of compliance 
        with the requirements for a grant under paragraph (1) 
        or (2) of subsection (a) may be made with respect to 
        any State whose--
                    (A) State law is not otherwise eligible for 
                certification under section 303 of the Social 
                Security Act (42 U.S.C. 503) or approvable 
                under section 3304 of the Internal Revenue Code 
                of 1986; or
                    (B) short-time compensation program is 
                subject to discontinuation or is not scheduled 
                to take effect within 12 months of the 
                certification.
    (d) Use of Funds.--The amount of any grant awarded under 
this section shall be used for the implementation of short-time 
compensation programs and the overall administration of such 
programs and the promotion and enrollment efforts associated 
with such programs, such as through--
            (1) the creation or support of rapid response teams 
        to advise employers about alternatives to layoffs;
            (2) the provision of education or assistance to 
        employers to enable them to assess the feasibility of 
        participating in short-time compensation programs; and
            (3) the development or enhancement of systems to 
        automate--
                    (A) the submission and approval of plans; 
                and
                    (B) the filing and approval of new and 
                ongoing short-time compensation claims.
    (e) Administration.--The Secretary is authorized to use 
0.25 percent of the funds available under subsection (g) to 
provide for outreach and to share best practices with respect 
to this section and short-time compensation programs.
    (f) Recoupment.--The Secretary shall establish a process 
under which the Secretary shall recoup the amount of any grant 
awarded under paragraph (1) or (2) of subsection (a) if the 
Secretary determines that, during the 5-year period beginning 
on the first date that any such grant is awarded to the State, 
the State--
            (1) terminated the State's short-time compensation 
        program; or
            (2) failed to meet appropriate requirements with 
        respect to such program (as established by the 
        Secretary).
    (g) Funding.--There are appropriated, out of moneys in the 
Treasury not otherwise appropriated, to the Secretary, 
$100,000,000 to carry out this section, to remain available 
without fiscal year limitation.
    (h) Reporting.--The Secretary may establish reporting 
requirements for States receiving a grant under this section in 
order to provide oversight of grant funds.
    (i) Definitions.--In this section:
            (1) Secretary.--The term ``Secretary'' means the 
        Secretary of Labor.
            (2) Short-time compensation program.--The term 
        ``short-time compensation program'' has the meaning 
        given such term in section 3306(v) of the Internal 
        Revenue Code of 1986, as added by section 2161(a).
            (3) State; state agency; state law.--The terms 
        ``State'', ``State agency'', and ``State law'' have the 
        meanings given those terms in section 205 of the 
        Federal-State Extended Unemployment Compensation Act of 
        1970 (26 U.S.C. 3304 note).

SEC. 2165. ASSISTANCE AND GUIDANCE IN IMPLEMENTING PROGRAMS.

    (a) In General.--In order to assist States in establishing, 
qualifying, and implementing short-time compensation programs 
(as defined in section 3306(v) of the Internal Revenue Code of 
1986, as added by section 2161(a)), the Secretary of Labor (in 
this section referred to as the ``Secretary'') shall--
            (1) develop model legislative language which may be 
        used by States in developing and enacting such programs 
        and periodically review and revise such model 
        legislative language;
            (2) provide technical assistance and guidance in 
        developing, enacting, and implementing such programs;
            (3) establish reporting requirements for States, 
        including reporting on--
                    (A) the number of estimated averted 
                layoffs;
                    (B) the number of participating employers 
                and workers; and
                    (C) such other items as the Secretary of 
                Labor determines are appropriate.
    (b) Model Language and Guidance.--The model language and 
guidance developed under subsection (a) shall allow sufficient 
flexibility by States and participating employers while 
ensuring accountability and program integrity.
    (c) Consultation.--In developing the model legislative 
language and guidance under subsection (a), and in order to 
meet the requirements of subsection (b), the Secretary shall 
consult with employers, labor organizations, State workforce 
agencies, and other program experts.

SEC. 2166. REPORTS.

    (a) Report.--
            (1) In general.--Not later than 4 years after the 
        date of the enactment of this Act, the Secretary of 
        Labor shall submit to Congress and to the President a 
        report or reports on the implementation of the 
        provisions of this subtitle.
            (2) Requirements.--Any report under paragraph (1) 
        shall at a minimum include the following:
                    (A) A description of best practices by 
                States and employers in the administration, 
                promotion, and use of short-time compensation 
                programs (as defined in section 3306(v) of the 
                Internal Revenue Code of 1986, as added by 
                section 2161(a)).
                    (B) An analysis of the significant 
                challenges to State enactment and 
                implementation of short-time compensation 
                programs.
                    (C) A survey of employers in all States to 
                determine the level of interest in 
                participating in short-time compensation 
                programs.
    (b) Funding.--There are appropriated, out of any moneys in 
the Treasury not otherwise appropriated, to the Secretary of 
Labor, $1,500,000 to carry out this section, to remain 
available without fiscal year limitation.

                 Subtitle E--Self-Employment Assistance

SEC. 2181. STATE ADMINISTRATION OF SELF-EMPLOYMENT ASSISTANCE PROGRAMS.

    (a) Availability for Individuals Receiving Extended 
Compensation.--Title II of the Federal-State Extended 
Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note) is 
amended by inserting at the end the following new section:

       ``AUTHORITY TO CONDUCT SELF-EMPLOYMENT ASSISTANCE PROGRAMS

    ``Sec. 208.  (a)(1) At the option of a State, for any weeks 
of unemployment beginning after the date of enactment of this 
section, the State agency of the State may establish a self-
employment assistance program, as described in subsection (b), 
to provide for the payment of extended compensation as self-
employment assistance allowances to individuals who would 
otherwise satisfy the eligibility criteria under this title.
    ``(2) Subject to paragraph (3), the self-employment 
assistance allowance described in paragraph (1) shall be paid 
to an eligible individual from such individual's extended 
compensation account, as described in section 202(b), and the 
amount in such account shall be reduced accordingly.
    ``(3)(A) Subject to subparagraph (B), for purposes of self-
employment assistance programs established under this section 
and section 4001(j) of the Supplemental Appropriations Act, 
2008, an individual shall be provided with self-employment 
assistance allowances under such programs for a total of not 
greater than 26 weeks (referred to in this section as the 
`combined eligibility limit').
    ``(B) For purposes of an individual who is participating in 
a self-employment assistance program established under this 
section and has not reached the combined eligibility limit as 
of the date on which such individual exhausts all rights to 
extended compensation under this title, the individual shall be 
eligible to receive self-employment assistance allowances under 
a self-employment assistance program established under section 
4001(j) of the Supplemental Appropriations Act, 2008, until 
such individual has reached the combined eligibility limit, 
provided that the individual otherwise satisfies the 
eligibility criteria described under title IV of such Act.
    ``(b) For the purposes of this section, the term `self-
employment assistance program' means a program as defined under 
section 3306(t) of the Internal Revenue Code of 1986, except as 
follows:
            ``(1) all references to `regular unemployment 
        compensation under the State law' shall be deemed to 
        refer instead to `extended compensation under title II 
        of the Federal-State Extended Unemployment Compensation 
        Act of 1970';
            ``(2) paragraph (3)(B) shall not apply;
            ``(3) clause (i) of paragraph (3)(C) shall be 
        deemed to state as follows:
                            ```(i) include any entrepreneurial 
                        training that the State or non-profit 
                        organizations may provide in 
                        coordination with programs of training 
                        offered by the Small Business 
                        Administration, which may include 
                        business counseling, mentorship for 
                        participants, access to small business 
                        development resources, and technical 
                        assistance; and';
            ``(4) the reference to `5 percent' in paragraph (4) 
        shall be deemed to refer instead to `1 percent'; and
            ``(5) paragraph (5) shall not apply.
    ``(c) In the case of an individual who is eligible to 
receive extended compensation under this title, such individual 
shall not receive self-employment assistance allowances under 
this section unless the State agency has a reasonable 
expectation that such individual will be entitled to at least 
13 times the individual's average weekly benefit amount of 
extended compensation and emergency unemployment compensation.
    ``(d)(1) An individual who is participating in a self-
employment assistance program established under this section 
may elect to discontinue participation in such program at any 
time.
    ``(2) For purposes of an individual whose participation in 
a self-employment assistance program established under this 
section is terminated pursuant to subsection (a)(3) or who has 
discontinued participation in such program, if the individual 
continues to satisfy the eligibility requirements for extended 
compensation under this title, the individual shall receive 
extended compensation payments with respect to subsequent weeks 
of unemployment, to the extent that amounts remain in the 
account established for such individual under section 
202(b).''.
    (b) Availability for Individuals Receiving Emergency 
Unemployment Compensation.--Section 4001 of the Supplemental 
Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 
note), as amended by sections 2141(b) and 2142(a), is further 
amended by inserting at the end the following new subsection:
    ``(j) Authority to Conduct Self-employment Assistance 
Program.--
            ``(1) In general.--
                    ``(A) Establishment.--Any agreement under 
                subsection (a) may provide that the State 
                agency of the State shall establish a self-
                employment assistance program, as described in 
                paragraph (2), to provide for the payment of 
                emergency unemployment compensation as self-
                employment assistance allowances to individuals 
                who would otherwise satisfy the eligibility 
                criteria specified in subsection (b).
                    ``(B) Payment of allowances.--Subject to 
                subparagraph (C), the self-employment 
                assistance allowance described in subparagraph 
                (A) shall be paid to an eligible individual 
                from such individual's emergency unemployment 
                compensation account, as described in section 
                4002, and the amount in such account shall be 
                reduced accordingly.
                    ``(C) Limitation on self-employment 
                assistance for individuals receiving extended 
                compensation and emergency unemployment 
                compensation.--
                            ``(i) Combined eligibility limit.--
                        Subject to clause (ii), for purposes of 
                        self-employment assistance programs 
                        established under this subsection and 
                        section 208 of the Federal-State 
                        Extended Unemployment Compensation Act 
                        of 1970, an individual shall be 
                        provided with self-employment 
                        assistance allowances under such 
                        programs for a total of not greater 
                        than 26 weeks (referred to in this 
                        subsection as the `combined eligibility 
                        limit').
                            ``(ii) Carryover rule.--For 
                        purposes of an individual who is 
                        participating in a self-employment 
                        assistance program established under 
                        this subsection and has not reached the 
                        combined eligibility limit as of the 
                        date on which such individual exhausts 
                        all rights to extended compensation 
                        under this title, the individual shall 
                        be eligible to receive self-employment 
                        assistance allowances under a self-
                        employment assistance program 
                        established under section 208 of the 
                        Federal-State Extended Unemployment 
                        Compensation Act of 1970 until such 
                        individual has reached the combined 
                        eligibility limit, provided that the 
                        individual otherwise satisfies the 
                        eligibility criteria described under 
                        title II of such Act.
            ``(2) Definition of `self-employment assistance 
        program'.--For the purposes of this section, the term 
        `self-employment assistance program' means a program as 
        defined under section 3306(t) of the Internal Revenue 
        Code of 1986, except as follows:
                    ``(A) all references to `regular 
                unemployment compensation under the State law' 
                shall be deemed to refer instead to `emergency 
                unemployment compensation under title IV of the 
                Supplemental Appropriations Act, 2008';
                    ``(B) paragraph (3)(B) shall not apply;
                    ``(C) clause (i) of paragraph (3)(C) shall 
                be deemed to state as follows:
                            ```(i) include any entrepreneurial 
                        training that the State or non-profit 
                        organizations may provide in 
                        coordination with programs of training 
                        offered by the Small Business 
                        Administration, which may include 
                        business counseling, mentorship for 
                        participants, access to small business 
                        development resources, and technical 
                        assistance; and';
                    ``(D) the reference to `5 percent' in 
                paragraph (4) shall be deemed to refer instead 
                to `1 percent'; and
                    ``(E) paragraph (5) shall not apply.
            ``(3) Availability of self-employment assistance 
        allowances.--In the case of an individual who is 
        eligible to receive emergency unemployment compensation 
        payment under this title, such individual shall not 
        receive self-employment assistance allowances under 
        this subsection unless the State agency has a 
        reasonable expectation that such individual will be 
        entitled to at least 13 times the individual's average 
        weekly benefit amount of extended compensation and 
        emergency unemployment compensation.
            ``(4) Participant option to terminate participation 
        in self-employment assistance program.--
                    ``(A) Termination.--An individual who is 
                participating in a self-employment assistance 
                program established under this subsection may 
                elect to discontinue participation in such 
                program at any time.
                    ``(B) Continued eligibility for emergency 
                unemployment compensation.--For purposes of an 
                individual whose participation in the self-
                employment assistance program established under 
                this subsection is terminated pursuant to 
                paragraph (1)(C) or who has discontinued 
                participation in such program, if the 
                individual continues to satisfy the eligibility 
                requirements for emergency unemployment 
                compensation under this title, the individual 
                shall receive emergency unemployment 
                compensation payments with respect to 
                subsequent weeks of unemployment, to the extent 
                that amounts remain in the account established 
                for such individual under section 4002(b) or to 
                the extent that such individual commences 
                receiving the amounts described in subsections 
                (c), (d), or (e) of such section, 
                respectively.''.

SEC. 2182. GRANTS FOR SELF-EMPLOYMENT ASSISTANCE PROGRAMS.

    (a) In General.--
            (1) Establishment or improved administration.--
        Subject to the requirements established under 
        subsection (b), the Secretary shall award grants to 
        States for the purposes of--
                    (A) improved administration of self-
                employment assistance programs that have been 
                established, prior to the date of the enactment 
                of this Act, pursuant to section 3306(t) of the 
                Internal Revenue Code of 1986 (26 U.S.C. 
                3306(t)), for individuals who are eligible to 
                receive regular unemployment compensation;
                    (B) development, implementation, and 
                administration of self-employment assistance 
                programs that are established, subsequent to 
                the date of the enactment of this Act, pursuant 
                to section 3306(t) of the Internal Revenue Code 
                of 1986, for individuals who are eligible to 
                receive regular unemployment compensation; and
                    (C) development, implementation, and 
                administration of self-employment assistance 
                programs that are established pursuant to 
                section 208 of the Federal-State Extended 
                Unemployment Compensation Act of 1970 or 
                section 4001(j) of the Supplemental 
                Appropriations Act, 2008, for individuals who 
                are eligible to receive extended compensation 
                or emergency unemployment compensation.
            (2) Promotion and enrollment.--Subject to the 
        requirements established under subsection (b), the 
        Secretary shall award additional grants to States that 
        submit approved applications for a grant under 
        paragraph (1) for such States to promote self-
        employment assistance programs and enroll unemployed 
        individuals in such programs.
    (b) Application and Disbursal.--
            (1) Application.--Any State seeking a grant under 
        paragraph (1) or (2) of subsection (a) shall submit an 
        application to the Secretary at such time, in such 
        manner, and containing such information as is 
        determined appropriate by the Secretary. In no case 
        shall the Secretary award a grant under this section 
        with respect to an application that is submitted after 
        December 31, 2013.
            (2) Notice.--Not later than 30 days after receiving 
        an application described in paragraph (1) from a State, 
        the Secretary shall notify the State agency as to 
        whether a grant has been approved for such State for 
        the purposes described in subsection (a).
            (3) Certification.--If the Secretary determines 
        that a State has met the requirements for a grant under 
        subsection (a), the Secretary shall make a 
        certification to that effect to the Secretary of the 
        Treasury, as well as a certification as to the amount 
        of the grant payment to be transferred to the State 
        account in the Unemployment Trust Fund under section 
        904 of the Social Security Act (42 U.S.C. 1104). The 
        Secretary of the Treasury shall make the appropriate 
        transfer to the State account not later than 7 days 
        after receiving such certification.
    (c) Allotment Factors.--For purposes of allotting the funds 
available under subsection (d) to States that have met the 
requirements for a grant under this section, the amount of the 
grant provided to each State shall be determined based upon the 
percentage of unemployed individuals in the State relative to 
the percentage of unemployed individuals in all States.
    (d) Funding.--There are appropriated, out of moneys in the 
Treasury not otherwise appropriated, $35,000,000 for the period 
of fiscal year 2012 through fiscal year 2013 for purposes of 
carrying out the grant program under this section,

SEC. 2183. ASSISTANCE AND GUIDANCE IN IMPLEMENTING SELF-EMPLOYMENT 
                    ASSISTANCE PROGRAMS.

    (a) Model Language and Guidance.--For purposes of assisting 
States in establishing, improving, and administering self-
employment assistance programs, the Secretary shall--
            (1) develop model language that may be used by 
        States in enacting such programs, as well as 
        periodically review and revise such model language; and
            (2) provide technical assistance and guidance in 
        establishing, improving, and administering such 
        programs.
    (b) Reporting and Evaluation.--
            (1) Reporting.--The Secretary shall establish 
        reporting requirements for States that have established 
        self-employment assistance programs, which shall 
        include reporting on--
                    (A) the total number of individuals who 
                received unemployment compensation and--
                            (i) were referred to a self-
                        employment assistance program;
                            (ii) participated in such program; 
                        and
                            (iii) received an allowance under 
                        such program;
                    (B) the total amount of allowances provided 
                to individuals participating in a self-
                employment assistance program;
                    (C) the total income (as determined by 
                survey or other appropriate method) for 
                businesses that have been established by 
                individuals participating in a self-employment 
                assistance program, as well as the total number 
                of individuals employed through such 
                businesses; and
                    (D) any additional information, as 
                determined appropriate by the Secretary.
            (2) Evaluation.--Not later than 5 years after the 
        date of the enactment of this Act, the Secretary shall 
        submit to Congress a report that evaluates the 
        effectiveness of self-employment assistance programs 
        established by States, including--
                    (A) an analysis of the implementation and 
                operation of self-employment assistance 
                programs by States;
                    (B) an evaluation of the economic outcomes 
                for individuals who participated in a self-
                employment assistance program as compared to 
                individuals who received unemployment 
                compensation and did not participate in a self-
                employment assistance program, including a 
                comparison as to employment status, income, and 
                duration of receipt of unemployment 
                compensation or self-employment assistance 
                allowances; and
                    (C) an evaluation of the state of the 
                businesses started by individuals who 
                participated in a self-employment assistance 
                program, including information regarding--
                            (i) the type of businesses 
                        established;
                            (ii) the sustainability of the 
                        businesses;
                            (iii) the total income collected by 
                        the businesses;
                            (iv) the total number of 
                        individuals employed through such 
                        businesses; and
                            (v) the estimated Federal and State 
                        tax revenue collected from such 
                        businesses and their employees.
    (c) Flexibility and Accountability.--The model language, 
guidance, and reporting requirements developed by the Secretary 
under subsections (a) and (b) shall--
            (1) allow sufficient flexibility for States and 
        participating individuals; and
            (2) ensure accountability and program integrity.
    (d) Consultation.--For purposes of developing the model 
language, guidance, and reporting requirements described under 
subsections (a) and (b), the Secretary shall consult with 
employers, labor organizations, State agencies, and other 
relevant program experts.
    (e) Entrepreneurial Training Programs.--The Secretary shall 
utilize resources available through the Department of Labor and 
coordinate with the Administrator of the Small Business 
Administration to ensure that adequate funding is reserved and 
made available for the provision of entrepreneurial training to 
individuals participating in self-employment assistance 
programs.
    (f) Self-employment Assistance Program.--For purposes of 
this section, the term ``self-employment assistance program'' 
means a program established pursuant to section 3306(t) of the 
Internal Revenue Code of 1986 (26 U.S.C. 3306(t)), section 208 
of the Federal-State Extended Unemployment Compensation Act of 
1970, or section 4001(j) of the Supplemental Appropriations 
Act, 2008, for individuals who are eligible to receive regular 
unemployment compensation, extended compensation, or emergency 
unemployment compensation.

SEC. 2184. DEFINITIONS.

    In this subtitle:
            (1) Secretary.--The term ``Secretary'' means the 
        Secretary of Labor.
            (2) State; state agency.--The terms ``State'' and 
        ``State agency'' have the meanings given such terms 
        under section 205 of the Federal-State Extended 
        Unemployment Compensation Act of 1970 (26 U.S.C. 3304 
        note).

            TITLE III--MEDICARE AND OTHER HEALTH PROVISIONS

                    Subtitle A--Medicare Extensions

SEC. 3001. 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), 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), 
section 102(a) of the Medicare and Medicaid Extenders Act of 
2010 (Public Law 111-309), and section 302(a) of the Temporary 
Payroll Tax Cut Continuation Act of 2011 (Public Law 112-78), 
is amended by striking ``November 30, 2011'' and inserting 
``March 31, 2012''.
    (b) Special Rule.--
            (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 
        December 1, 2011, and ending on March 31, 2012, 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 
        described in paragraph (1), 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) Timeframe for Payments.--
            (1) In general.--The Secretary shall make payments 
        required under subsections (a) and (b) by not later 
        than June 30, 2012.
            (2) October 2011 and november 2011 conforming 
        change.--Section 302(c) of the Temporary Payroll Tax 
        Cut Continuation Act of 2011 (Public Law 112-78) is 
        amended by striking ``December 31, 2012'' and inserting 
        ``June 30, 2012''.

SEC. 3002. EXTENSION OF OUTPATIENT HOLD HARMLESS PAYMENTS.

    (a) In General.--Section 1833(t)(7)(D)(i) of the Social 
Security Act (42 U.S.C. 1395l(t)(7)(D)(i)), as amended by 
section 308 of the Temporary Payroll Tax Cut Continuation Act 
of 2011 (Public Law 112-78), is amended--
            (1) in subclause (II)--
                    (A) in the first sentence, by striking 
                ``March 1, 2012'' and inserting ``January 1, 
                2013''; and
                    (B) in the second sentence, by striking 
                ``or the first two months of 2012'' and 
                inserting ``or 2012''; and
            (2) in subclause (III), in the first sentence, by 
        striking ``March 1, 2012'' and inserting ``January 1, 
        2013''.
    (b) Report.--Not later than July 1, 2012, the Secretary of 
Health and Human Services shall submit to the Committees on 
Ways and Means and Energy and Commerce of the House of 
Representatives and the Committee on Finance of the Senate a 
report including recommendations for which types of hospitals 
should continue to receive hold harmless payments described in 
subclauses (II) and (III) of section 1833(t)(7)(D)(i) of the 
Social Security Act (42 U.S.C. 1395l(t)(7)(D)(i)) in order to 
maintain adequate beneficiary access to outpatient services. In 
conducting such report, the Secretary should examine why some 
similarly situated hospitals do not receive such hold harmless 
payments and are able to rely only on the prospective payment 
system for hospital outpatient department services under 
section 1833(t) of the Social Security Act (42 U.S.C. 
1395l(t)).

SEC. 3003. PHYSICIAN PAYMENT UPDATE.

    (a) In General.--Section 1848(d)(13) of the Social Security 
Act (42 U.S.C. 1395w-4(d)(13)), as added by section 301 of the 
Temporary Payroll Tax Cut Continuation Act of 2011 (Public Law 
112-78), is amended--
            (1) in the heading, by striking ``first two months 
        of 2012'' and inserting ``2012'';
            (2) in subparagraph (A), by striking ``the period 
        beginning on January 1, 2012, and ending on February 
        29, 2012'' and inserting ``2012'';
            (3) in the heading of subparagraph (B), by striking 
        ``remaining portion of 2012'' and inserting ``2013''; 
        and
            (4) in subparagraph (B), by striking ``for the 
        period beginning on March 1, 2012, and ending on 
        December 31, 2012, and for 2013'' and inserting ``for 
        2013''.
    (b) Mandated Studies on Physician Payment Reform.--
            (1) Study by secretary on options for bundled or 
        episode-based payment.--
                    (A) In general.--The Secretary of Health 
                and Human Services shall conduct a study that 
                examines options for bundled or episode-based 
                payments, to cover physicians' services 
                currently paid under the physician fee schedule 
                under section 1848 of the Social Security Act 
                (42 U.S.C. 1395w-4), for one or more prevalent 
                chronic conditions (such as cancer, diabetes, 
                and congestive heart failure) or episodes of 
                care for one or more major procedures (such as 
                medical device implantation). In conducting the 
                study, the Secretary shall consult with medical 
                professional societies and other relevant 
                stakeholders. The study shall include an 
                examination of related private payer payment 
                initiatives.
                    (B) Report.--Not later than January 1, 
                2013, the Secretary shall submit to the 
                Committees on Ways and Means and Energy and 
                Commerce of the House of Representatives and 
                the Committee on Finance of the Senate a report 
                on the study conducted under this paragraph. 
                The Secretary shall include in the report 
                recommendations on suitable alternative payment 
                options for services paid under such fee 
                schedule and on associated implementation 
                requirements (such as timelines, operational 
                issues, and interactions with other payment 
                reform initiatives).
            (2) GAO study of private payer initiatives.--
                    (A) In general.--The Comptroller General of 
                the United States shall conduct a study that 
                examines initiatives of private entities 
                offering or administering health insurance 
                coverage, group health plans, or other private 
                health benefit plans to base or adjust 
                physician payment rates under such coverage or 
                plans for performance on quality and 
                efficiency, as well as demonstration of care 
                delivery improvement activities (such as 
                adherence to evidence-based guidelines and 
                patient-shared decision making programs). In 
                conducting such study, the Comptroller General 
                shall consult, to the extent appropriate, with 
                medical professional societies and other 
                relevant stakeholders.
                    (B) Report.--Not later than January 1, 
                2013, the Comptroller General shall submit to 
                the Committees on Ways and Means and Energy and 
                Commerce of the House of Representatives and 
                the Committee on Finance of the Senate a report 
                on the study conducted under this paragraph. 
                Such report shall include an assessment of the 
                applicability of the payer initiatives 
                described in subparagraph (A) to the Medicare 
                program and recommendations on modifications to 
                existing Medicare performance-based 
                initiatives.

SEC. 3004. WORK GEOGRAPHIC ADJUSTMENT.

    (a) In General.--Section 1848(e)(1)(E) of the Social 
Security Act (42 U.S.C. 1395w-4(e)(1)(E)), as amended by 
section 303 of the Temporary Payroll Tax Cut Continuation Act 
of 2011 (Public Law 112-78), is amended by striking ``before 
March 1, 2012'' and inserting ``before January 1, 2013''.
    (b) Report.--Not later than June 15, 2013, the Medicare 
Payment Advisory Commission shall submit to the Committees on 
Ways and Means and Energy and Commerce of the House of 
Representatives and the Committee on Finance of the Senate a 
report that assesses whether any adjustment under section 1848 
of the Social Security Act (42 U.S.C. 1395w-4) to distinguish 
the difference in work effort by geographic area is appropriate 
and, if so, what that level should be and where it should be 
applied. The report shall also assess the impact of the work 
geographic adjustment under such section, including the extent 
to which the floor on such adjustment impacts access to care.

SEC. 3005. PAYMENT FOR OUTPATIENT THERAPY SERVICES.

    (a) Application of Additional Requirements.--Section 
1833(g)(5) of the Social Security Act (42 U.S.C. 1395l(g)(5)), 
as amended by section 304 of the Temporary Payroll Tax Cut 
Continuation Act of 2011 (Public Law 112-78), is amended--
            (1) by inserting ``(A)'' after ``(5)'';
            (2) in the first sentence, by striking ``February 
        29, 2012'' and inserting ``December 31, 2012'';
            (3) in the first sentence, by inserting ``and if 
        the requirement of subparagraph (B) is met'' after 
        ``medically necessary'';
            (4) in the second sentence, by inserting ``made in 
        accordance with such requirement'' after ``receipt of 
        the request''; and
            (5) by adding at the end the following new 
        subparagraphs:
    ``(B) In the case of outpatient therapy services for which 
an exception is requested under the first sentence of 
subparagraph (A), the claim for such services shall contain an 
appropriate modifier (such as the KX modifier used as of the 
date of the enactment of this subparagraph) indicating that 
such services are medically necessary as justified by 
appropriate documentation in the medical record involved.
    ``(C)(i) In applying this paragraph with respect to a 
request for an exception with respect to expenses that would be 
incurred for outpatient therapy services (including services 
described in subsection (a)(8)(B)) that would exceed the 
threshold described in clause (ii) for a year, the request for 
such an exception, for services furnished on or after October 
1, 2012, shall be subject to a manual medical review process 
that is similar to the manual medical review process used for 
certain exceptions under this paragraph in 2006.
    ``(ii) The threshold under this clause for a year is 
$3,700. Such threshold shall be applied separately--
            ``(I) for physical therapy services and speech-
        language pathology services; and
            ``(II) for occupational therapy services.''.
    (b) Temporary Application of Therapy Cap to Therapy 
Furnished as Part of Hospital Outpatient Services.--Section 
1833(g) of such Act (42 U.S.C.1395l(g)) is amended--
            (1) in each of paragraphs (1) and (3), by striking 
        ``but not described in section 1833(a)(8)(B)'' and 
        inserting ``but (except as provided in paragraph (6)) 
        not described in subsection (a)(8)(B)''; and
            (2) by adding at the end the following new 
        paragraph:
    ``(6) In applying paragraphs (1) and (3) to services 
furnished during the period beginning not later than October 1, 
2012, and ending on December 31, 2012, the exclusion of 
services described in subsection (a)(8)(B) from the uniform 
dollar limitation specified in paragraph (2) shall not apply to 
such services furnished during 2012.''.
    (c) Requirement for Inclusion on Claims of NPI of Physician 
Who Reviews Therapy Plan.--Section 1842(t) of such Act (42 
U.S.C. 1395u(t)) is amended--
            (1) by inserting ``(1)'' after ``(t)''; and
            (2) by adding at the end the following new 
        paragraph:
    ``(2) Each request for payment, or bill submitted, for 
therapy services described in paragraph (1) or (3) of section 
1833(g), including services described in section 1833(a)(8)(B), 
furnished on or after October 1, 2012, for which payment may be 
made under this part shall include the national provider 
identifier of the physician who periodically reviews the plan 
for such services under section 1861(p)(2).''.
    (d) Implementation.--The Secretary of Health and Human 
Services shall implement such claims processing edits and issue 
such guidance as may be necessary to implement the amendments 
made by this section in a timely manner. Notwithstanding any 
other provision of law, the Secretary may implement the 
amendments made by this section by program instruction. Of the 
amount of funds made available to the Secretary for fiscal year 
2012 for program management for the Centers for Medicare & 
Medicaid Services, not to exceed $9,375,000 shall be available 
for such fiscal year and the first 3 months of fiscal year 2013 
to carry out section 1833(g)(5)(C) of the Social Security Act 
(relating to manual medical review), as added by subsection 
(a).
    (e) Effective Date.--The requirement of subparagraph (B) of 
section 1833(g)(5) of the Social Security Act (42 U.S.C. 
1395l(g)(5)), as added by subsection (a), shall apply to 
services furnished on or after March 1, 2012.
    (f) MedPAC Report on Improved Medicare Therapy Benefits.--
Not later than June 15, 2013, the Medicare Payment Advisory 
Commission shall submit to the Committees on Energy and 
Commerce and Ways and Means of the House of Representatives and 
to the Committee on Finance of the Senate a report making 
recommendations on how to improve the outpatient therapy 
benefit under part B of title XVIII of the Social Security Act. 
The report shall include recommendations on how to reform the 
payment system for such outpatient therapy services under such 
part so that the benefit is better designed to reflect 
individual acuity, condition, and therapy needs of the patient. 
Such report shall include an examination of private sector 
initiatives relating to outpatient therapy benefits.
    (g) Collection of Additional Data.--
            (1) Strategy.--The Secretary of Health and Human 
        Services shall implement, beginning on January 1, 2013, 
        a claims-based data collection strategy that is 
        designed to assist in reforming the Medicare payment 
        system for outpatient therapy services subject to the 
        limitations of section 1833(g) of the Social Security 
        Act (42 U.S.C. 1395l(g)). Such strategy shall be 
        designed to provide for the collection of data on 
        patient function during the course of therapy services 
        in order to better understand patient condition and 
        outcomes.
            (2) Consultation.--In proposing and implementing 
        such strategy, the Secretary shall consult with 
        relevant stakeholders.
    (h) GAO Report on Manual Medical Review Process 
Implementation.--Not later than May 1, 2013, the Comptroller 
General of the United States shall submit to the Committees on 
Energy and Commerce and Ways and Means of the House of 
Representatives and to the Committee on Finance of the Senate a 
report on the implementation of the manual medical review 
process referred to in section 1833(g)(5)(C) of the Social 
Security Act, as added by subsection (a). Such report shall 
include aggregate data on the number of individuals and claims 
subject to such process, the number of reviews conducted under 
such process, and the outcome of such reviews.

SEC. 3006. 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 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), section 105 of the Medicare and Medicaid Extenders Act of 
2010 (Public Law 111-309), and section 305 of the Temporary 
Payroll Tax Cut Continuation Act of 2011 (Public Law 112-78), 
is amended by striking ``and the first two months of 2012'' and 
inserting ``and the first six months of 2012''.

SEC. 3007. AMBULANCE ADD-ON PAYMENTS.

    (a) Ground Ambulance.--Section 1834(l)(13)(A) of the Social 
Security Act (42 U.S.C. 1395m(l)(13)(A)), as amended by section 
306(a) of the Temporary Payroll Tax Cut Continuation Act of 
2011 (Public Law 112-78), is amended--
            (1) in the matter preceding clause (i), by striking 
        ``March 1, 2012'' and inserting ``January 1, 2013''; 
        and
            (2) in each of clauses (i) and (ii), by striking 
        ``March 1, 2012'' and inserting ``January 1, 2013'' 
        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 the 
Patient Protection and Affordable Care Act (Public Law 111-
148), section 106(b) of the Medicare and Medicaid Extenders Act 
of 2010 (Public Law 111-309) and section 306(b) of the 
Temporary Payroll Tax Cut Continuation Act of 2011 (Public Law 
112-78), is amended by striking ``February 29, 2012'' and 
inserting ``December 31, 2012''.
    (c) Super Rural Ambulance.--Section 1834(l)(12)(A) of the 
Social Security Act (42 U.S.C. 1395m(l)(12)(A)), as amended by 
section 306(c) of Temporary Payroll Tax Cut Continuation Act of 
2011 (Public Law 112-78), is amended in the first sentence by 
striking ``March 1, 2012'' and inserting ``January 1, 2013''.
    (d) GAO Report Update.--Not later than October 1, 2012, the 
Comptroller General of the United States shall update the GAO 
report GAO-07-383 (relating to Ambulance Providers: Costs and 
Expected Medicare Margins Vary Greatly) to reflect current 
costs for ambulance providers.
    (e) MedPAC Report.--The Medicare Payment Advisory 
Commission shall conduct a study of--
            (1) the appropriateness of the add-on payments for 
        ambulance providers under paragraphs (12)(A) and 
        (13)(A) of section 1834(l) of the Social Security Act 
        (42 U.S.C. 1395m(l)) and the treatment of air ambulance 
        providers under section 146(b)(1) of the Medicare 
        Improvements for Patients and Providers Act of 2008 
        (Public Law 110-275);
            (2) the effect these add-on payments and such 
        treatment have on the Medicare margins of ambulance 
        providers; and
            (3) whether there is a need to reform the Medicare 
        ambulance fee schedule under such section and, if so, 
        what should such reforms be, including whether the add-
        on payments should be included in the base rate.

Not later than June 15, 2013, the Commission shall submit to 
the Committees on Ways and Means and Energy and Commerce of the 
House of Representatives and the Committee on Finance of the 
Senate a report on such study and shall include in the report 
such recommendations as the Commission deems appropriate.

                  Subtitle B--Other Health Provisions

SEC. 3101. QUALIFYING INDIVIDUAL PROGRAM.

    (a) Extension.--Section 1902(a)(10)(E)(iv) of the Social 
Security Act (42 U.S.C. 1396a(a)(10)(E)(iv)), as amended by 
section 310(a) of the Temporary Payroll Tax Cut Continuation 
Act of 2011 (Public Law 112-78), is amended by striking 
``February'' and inserting ``December''.
    (b) Extending Total Amount Available for Allocation.--
Section 1933(g) of such Act (42 U.S.C. 1396u-3(g)), as amended 
by section 310(b) of the Temporary Payroll Tax Cut Continuation 
Act of 2011 (Public Law 112-78), is amended--
            (1) in paragraph (2)--
                    (A) in subparagraph (P), by striking 
                ``and'' after the semicolon;
                    (B) in subparagraph (Q), by striking 
                ``February 29, 2012, the total allocation 
                amount is $150,000,000.'' and inserting 
                ``September 30, 2012, the total allocation 
                amount is $450,000,000; and''; and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(R) for the period that begins on October 
                1, 2012, and ends on December 31, 2012, the 
                total allocation amount is $280,000,000.''; and
            (2) in paragraph (3), in the matter preceding 
        subparagraph (A), by striking ``or (P)'' and inserting 
        ``(P), or (R)''.

SEC. 3102. TRANSITIONAL MEDICAL ASSISTANCE.

    Sections 1902(e)(1)(B) and 1925(f) of the Social Security 
Act (42 U.S.C. 1396a(e)(1)(B), 1396r-6(f)), as amended by 
section 311 of the Temporary Payroll Tax Cut Continuation Act 
of 2011 (Public Law 112-78), are each amended by striking 
``February 29'' and inserting ``December 31''.

                       Subtitle C--Health Offsets

SEC. 3201. REDUCTION OF BAD DEBT TREATED AS AN ALLOWABLE COST.

    (a) Hospitals.--Section 1861(v)(1)(T) of the Social 
Security Act (42 U.S.C. 1395x(v)(1)(T)) is amended--
            (1) in clause (iii), by striking ``and'' at the 
        end;
            (2) in clause (iv)--
                    (A) by striking ``a subsequent fiscal 
                year'' and inserting ``fiscal years 2001 
                through 2012''; and
                    (B) by striking the period at the end and 
                inserting ``, and''; and
            (3) by adding at the end the following:
            ``(v) for cost reporting periods beginning during 
        fiscal year 2013 or a subsequent fiscal year, by 35 
        percent of such amount otherwise allowable.''.
    (b) Skilled Nursing Facilities.--Section 1861(v)(1)(V) of 
such Act (42 U.S.C. 1395x(v)(1)(V)) is amended--
            (1) in the matter preceding clause (i), by striking 
        ``with respect to cost reporting periods beginning on 
        or after October 1, 2005'' and inserting ``and 
        (beginning with respect to cost reporting periods 
        beginning during fiscal year 2013) for covered skilled 
        nursing services described in section 1888(e)(2)(A) 
        furnished by hospital providers of extended care 
        services (as described in section 1883)'';
            (2) in clause (i), by striking ``reduced by'' and 
        all that follows through ``allowable; and'' and 
        inserting the following: ``reduced by--
            ``(I) for cost reporting periods beginning on or 
        after October 1, 2005, but before fiscal year 2013, 30 
        percent of such amount otherwise allowable; and
            ``(II) for cost reporting periods beginning during 
        fiscal year 2013 or a subsequent fiscal year, by 35 
        percent of such amount otherwise allowable.''; and
            (3) in clause (ii), by striking ``such section 
        shall not be reduced.'' and inserting ``such section--
            ``(I) for cost reporting periods beginning on or 
        after October 1, 2005, but before fiscal year 2013, 
        shall not be reduced;
            ``(II) for cost reporting periods beginning during 
        fiscal year 2013, shall be reduced by 12 percent of 
        such amount otherwise allowable;
            ``(III) for cost reporting periods beginning during 
        fiscal year 2014, shall be reduced by 24 percent of 
        such amount otherwise allowable; and
            ``(IV) for cost reporting periods beginning during 
        a subsequent fiscal year, shall be reduced by 35 
        percent of such amount otherwise allowable.''.
    (c) Certain Other Providers.--Section 1861(v)(1) of such 
Act (42 U.S.C. 1395x(v)(1)) is amended by adding at the end the 
following new subparagraph:
    ``(W)(i) In determining such reasonable costs for providers 
described in clause (ii), the amount of bad debts otherwise 
treated as allowable costs which are attributable to 
deductibles and coinsurance amounts under this title shall be 
reduced--
            ``(I) for cost reporting periods beginning during 
        fiscal year 2013, by 12 percent of such amount 
        otherwise allowable;
            ``(II) for cost reporting periods beginning during 
        fiscal year 2014, by 24 percent of such amount 
        otherwise allowable; and
            ``(III) for cost reporting periods beginning during 
        a subsequent fiscal year, by 35 percent of such amount 
        otherwise allowable.
    ``(ii) A provider described in this clause is a provider of 
services not described in subparagraph (T) or (V), a supplier, 
or any other type of entity that receives payment for bad debts 
under the authority under subparagraph (A).''.
    (d) Conforming Amendment for Hospital Services.--Section 
4008(c) of the Omnibus Budget Reconciliation Act of 1987 (42 
U.S.C. 1395 note), as amended by section 8402 of the Technical 
and Miscellaneous Revenue Act of 1988 and section 6023 of the 
Omnibus Budget Reconciliation Act of 1989, is amended by adding 
at the end the following new sentence: ``Effective for cost 
reporting periods beginning on or after October 1, 2012, the 
provisions of the previous two sentences shall not apply.''.

SEC. 3202. REBASE MEDICARE CLINICAL LABORATORY PAYMENT RATES.

    Section 1833(h)(2)(A) of the Social Security Act (42 U.S.C. 
1395l(h)(2)(A)) is amended--
            (1) in clause (i), by striking ``paragraph (4)'' 
        and inserting ``clause (v), subparagraph (B), and 
        paragraph (4)'';
            (2) by moving clause (iv), subclauses (I) and (II) 
        of such clause, and the flush matter at the end of such 
        clause 6 ems to the left; and
            (3) by adding at the end the following new clause:
    ``(v) The Secretary shall reduce by 2 percent the fee 
schedules otherwise determined under clause (i) for 2013, and 
such reduced fee schedules shall serve as the base for 2014 and 
subsequent years.''.

SEC. 3203. REBASING STATE DSH ALLOTMENTS FOR FISCAL YEAR 2021.

    Section 1923(f) of the Social Security Act (42 U.S.C. 
1396r-4(f)) is amended--
            (1) by redesignating paragraph (8) as paragraph 
        (9);
            (2) in paragraph (3)(A) by striking ``paragraphs 
        (6) and (7)'' and inserting ``paragraphs (6), (7), and 
        (8)''; and
            (3) by inserting after paragraph (7) the following 
        new paragraph:
            ``(8) Rebasing of state dsh allotments for fiscal 
        year 2021.--With respect to fiscal year 2021, for 
        purposes of applying paragraph (3)(A) to determine the 
        DSH allotment for a State, the amount of the DSH 
        allotment for the State under paragraph (3) for fiscal 
        year 2020 shall be equal to the DSH allotment as 
        reduced under paragraph (7).''.

SEC. 3204. TECHNICAL CORRECTION TO THE DISASTER RECOVERY FMAP 
                    PROVISION.

    (a) In General.--Section 1905(aa) of the Social Security 
Act (42 U.S.C. 1396d(aa)) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (A), by striking ``the 
                Federal medical assistance percentage 
                determined for the fiscal year'' and all that 
                follows through the period and inserting ``the 
                State's regular FMAP shall be increased by 50 
                percent of the number of percentage points by 
                which the State's regular FMAP for such fiscal 
                year is less than the Federal medical 
                assistance percentage determined for the State 
                for the preceding fiscal year after the 
                application of only subsection (a) of section 
                5001 of Public Law 111-5 (if applicable to the 
                preceding fiscal year) and without regard to 
                this subsection, subsections (y) and (z), and 
                subsections (b) and (c) of section 5001 of 
                Public Law 111-5.''; and
                    (B) in subparagraph (B), by striking 
                ``Federal medical assistance percentage 
                determined for the preceding fiscal year'' and 
                all that follows through the period and 
                inserting ``State's regular FMAP for such 
                fiscal year shall be increased by 25 percent of 
                the number of percentage points by which the 
                State's regular FMAP for such fiscal year is 
                less than the Federal medical assistance 
                percentage received by the State during the 
                preceding fiscal year.'';
            (2) in paragraph (2)--
                    (A) in subparagraph (A)--
                            (i) by striking ``Federal medical 
                        assistance percentage determined for 
                        the State for the fiscal year'' and all 
                        that follows through ``Act,'' and 
                        inserting ``State's regular FMAP for 
                        the fiscal year''; and
                            (ii) by striking ``subsection (y)'' 
                        and inserting ``subsections (y) and 
                        (z)''; and
                    (B) in subparagraph (B), by striking 
                ``Federal medical assistance percentage 
                determined for the State for the fiscal year'' 
                and all that follows through ``Act,'' and 
                inserting ``State's regular FMAP for the fiscal 
                year'';
            (3) by redesignating paragraph (3) as paragraph 
        (4); and
            (4) by inserting after paragraph (2) the following:
    ``(3) In this subsection, the term `regular FMAP' means, 
for each fiscal year for which this subsection applies to a 
State, the Federal medical assistance percentage that would 
otherwise apply to the State for the fiscal year, as determined 
under subsection (b) and without regard to this subsection, 
subsections (y) and (z), and section 10202 of the Patient 
Protection and Affordable Care Act.''.
    (b) Effective Date.--The amendments made by subsection (a) 
shall take effect on October 1, 2013.

SEC. 3205. PREVENTION AND PUBLIC HEALTH FUND.

    Section 4002(b) of the Patient Protection and Affordable 
Care Act (42 U.S.C. 300u-11(b)) is amended by striking 
paragraphs (2) through (6) and inserting the following:
            ``(2) for each of fiscal years 2012 through 2017, 
        $1,000,000,000;
            ``(3) for each of fiscal years 2018 and 2019, 
        $1,250,000,000;
            ``(4) for each of fiscal years 2020 and 2021, 
        $1,500,000,000; and
            ``(5) for fiscal year 2022, and each fiscal year 
        thereafter, $2,000,000,000.''.

                        TITLE IV--TANF EXTENSION

SEC. 4001. SHORT TITLE.

    This title may be cited as the ``Welfare Integrity and Data 
Improvement Act''.

SEC. 4002. EXTENSION OF PROGRAM.

    (a) Family Assistance Grants.--Section 403(a)(1) of the 
Social Security Act (42 U.S.C. 603(a)(1)) is amended--
            (1) in subparagraph (A), by striking ``each of 
        fiscal years 1996'' and all that follows through 
        ``2003'' and inserting ``fiscal year 2012'';
            (2) in subparagraph (B)--
                    (A) by inserting ``(as in effect just 
                before the enactment of the Welfare Integrity 
                and Data Improvement Act)'' after ``this 
                paragraph'' the 1st place it appears; and
                    (B) by inserting ``(as so in effect)'' 
                after ``this paragraph'' the 2nd place it 
                appears; and
            (3) in subparagraph (C), by striking ``2003'' and 
        inserting ``2012''.
    (b) Healthy Marriage Promotion and Responsible Fatherhood 
Grants.--Section 403(a)(2)(D) of such Act (42 U.S.C. 
603(a)(2)(D)) is amended by striking ``2011'' each place it 
appears and inserting ``2012''.
    (c) Maintenance of Effort Requirement.--Section 409(a)(7) 
of such Act (42 U.S.C. 609(a)(7)) is amended--
            (1) in subparagraph (A), by striking ``fiscal 
        year'' and all that follows through ``2013'' and 
        inserting ``a fiscal year''; and
            (2) in subparagraph (B)(ii)--
                    (A) by striking ``for fiscal years 1997 
                through 2012,''; and
                    (B) by striking ``407(a) for the fiscal 
                year,'' and inserting ``407(a),''.
    (d) Tribal Grants.--Section 412(a) of such Act (42 U.S.C. 
612(a)) is amended in each of paragraphs (1)(A) and (2)(A) by 
striking ``each of fiscal years 1997'' and all that follows 
through ``2003'' and inserting ``fiscal year 2012''.
    (e) Studies and Demonstrations.--Section 413(h)(1) of such 
Act (42 U.S.C. 613(h)(1)) is amended by striking ``each of 
fiscal years 1997 through 2002'' and inserting ``fiscal year 
2012''.
    (f) Census Bureau Study.--Section 414(b) of such Act (42 
U.S.C. 614(b)) is amended by striking ``each of fiscal years 
1996'' and all that follows through ``2003'' and inserting 
``fiscal year 2012''.
    (g) Child Care Entitlement.--Section 418(a)(3) of such Act 
(42 U.S.C. 618(a)(3)) is amended by striking ``appropriated'' 
and all that follows and inserting ``appropriated 
$2,917,000,000 for fiscal year 2012.''.
    (h) Grants to Territories.--Section 1108(b)(2) of such Act 
(42 U.S.C. 1308(b)(2)) is amended by striking ``fiscal years 
1997 through 2003'' and inserting ``fiscal year 2012''.
    (i) Prevention of Duplicate Appropriations for Fiscal Year 
2012.--Expenditures made pursuant to the Short-Term TANF 
Extension Act (Public Law 112-35) and the Temporary Payroll Tax 
Cut Continuation Act of 2011 (Public Law 112-78) for fiscal 
year 2012 shall be charged to the applicable appropriation or 
authorization provided by the amendments made by this section 
for such fiscal year.
    (j) Effective Date.--This section and the amendments made 
by this section shall take effect on the date of the enactment 
of this Act.

SEC. 4003. DATA EXCHANGE STANDARDIZATION FOR IMPROVED INTEROPERABILITY.

    (a) In General.--Section 411 of the Social Security Act (42 
U.S.C. 611) is amended by adding at the end the following:
    ``(d) Data Exchange Standardization for Improved 
Interoperability.--
            ``(1) Data exchange standards.--
                    ``(A) Designation.--The Secretary, in 
                consultation with an interagency work group 
                which shall be established by the Office of 
                Management and Budget, and considering State 
                and tribal perspectives, shall, by rule, 
                designate a data exchange standard for any 
                category of information required to be reported 
                under this part.
                    ``(B) Data exchange standards must be 
                nonproprietary and interoperable.--The data 
                exchange standard designated under subparagraph 
                (A) shall, to the extent practicable, be 
                nonproprietary and interoperable.
                    ``(C) Other requirements.--In designating 
                data exchange standards under this section, the 
                Secretary shall, to the extent practicable, 
                incorporate--
                            ``(i) interoperable standards 
                        developed and maintained by an 
                        international voluntary consensus 
                        standards body, as defined by the 
                        Office of Management and Budget, such 
                        as the International Organization for 
                        Standardization;
                            ``(ii) interoperable standards 
                        developed and maintained by 
                        intergovernmental partnerships, such as 
                        the National Information Exchange 
                        Model; and
                            ``(iii) interoperable standards 
                        developed and maintained by Federal 
                        entities with authority over 
                        contracting and financial assistance, 
                        such as the Federal Acquisition 
                        Regulatory Council.
            ``(2) Data exchange standards for reporting.--
                    ``(A) Designation.--The Secretary, in 
                consultation with an interagency work group 
                established by the Office of Management and 
                Budget, and considering State and tribal 
                perspectives, shall, by rule, designate data 
                exchange standards to govern the data reporting 
                required under this part.
                    ``(B) Requirements.--The data exchange 
                standards required by subparagraph (A) shall, 
                to the extent practicable--
                            ``(i) incorporate a widely-
                        accepted, nonproprietary, searchable, 
                        computer-readable format;
                            ``(ii) be consistent with and 
                        implement applicable accounting 
                        principles; and
                            ``(iii) be capable of being 
                        continually upgraded as necessary.
                    ``(C) Incorporation of nonproprietary 
                standards.--In designating reporting standards 
                under this paragraph, the Secretary shall, to 
                the extent practicable, incorporate existing 
                nonproprietary standards, such as the 
                eXtensible Markup Language.''.
    (b) Effective Dates.--
            (1) Data exchange standards.--The Secretary of 
        Health and Human Services shall issue a proposed rule 
        under section 411(d)(1) of the Social Security Act 
        within 12 months after the date of the enactment of 
        this section, and shall issue a final rule under such 
        section 411(d)(1), after public comment, within 24 
        months after such date of enactment.
            (2) Data reporting standards.--The reporting 
        standards required under section 411(d)(2) of such Act 
        shall become effective with respect to reports required 
        in the first reporting period, after the effective date 
        of the final rule referred to in paragraph (1) of this 
        subsection, for which the authority for data collection 
        and reporting is established or renewed under the 
        Paperwork Reduction Act.

SEC. 4004. SPENDING POLICIES FOR ASSISTANCE UNDER STATE TANF PROGRAMS.

    (a) State Requirement.--Section 408(a) of the Social 
Security Act (42 U.S.C. 608(a)) is amended by adding at the end 
the following:
            ``(12) State requirement to prevent unauthorized 
        spending of benefits.--
                    ``(A) In general.--A State to which a grant 
                is made under section 403 shall maintain 
                policies and practices as necessary to prevent 
                assistance provided under the State program 
                funded under this part from being used in any 
                electronic benefit transfer transaction in--
                            ``(i) any liquor store;
                            ``(ii) any casino, gambling casino, 
                        or gaming establishment; or
                            ``(iii) any retail establishment 
                        which provides adult-oriented 
                        entertainment in which performers 
                        disrobe or perform in an unclothed 
                        state for entertainment.
                    ``(B) Definitions.--For purposes of 
                subparagraph (A)--
                            ``(i) Liquor store.--The term 
                        `liquor store' means any retail 
                        establishment which sells exclusively 
                        or primarily intoxicating liquor. Such 
                        term does not include a grocery store 
                        which sells both intoxicating liquor 
                        and groceries including staple foods 
                        (within the meaning of section 3(r) of 
                        the Food and Nutrition Act of 2008 (7 
                        U.S.C. 2012(r))).
                            ``(ii) Casino, gambling casino, or 
                        gaming establishment.--The terms 
                        `casino', `gambling casino', and 
                        `gaming establishment' do not include--
                                    ``(I) a grocery store which 
                                sells groceries including such 
                                staple foods and which also 
                                offers, or is located within 
                                the same building or complex 
                                as, casino, gambling, or gaming 
                                activities; or
                                    ``(II) any other 
                                establishment that offers 
                                casino, gambling, or gaming 
                                activities incidental to the 
                                principal purpose of the 
                                business.
                            ``(iii) Electronic benefit transfer 
                        transaction.--The term `electronic 
                        benefit transfer transaction' means the 
                        use of a credit or debit card service, 
                        automated teller machine, point-of-sale 
                        terminal, or access to an online system 
                        for the withdrawal of funds or the 
                        processing of a payment for merchandise 
                        or a service.''.
    (b) Penalty.--Section 409(a) of such Act (42 U.S.C. 609(a)) 
is amended by adding at the end the following:
            ``(16) Penalty for failure to enforce spending 
        policies.--
                    ``(A) In general.--If, within 2 years after 
                the date of the enactment of this paragraph, 
                any State has not reported to the Secretary on 
                such State's implementation of the policies and 
                practices required by section 408(a)(12), or 
                the Secretary determines, based on the 
                information provided in State reports, that any 
                State has not implemented and maintained such 
                policies and practices, the Secretary shall 
                reduce, by an amount equal to 5 percent of the 
                State family assistance grant, the grant 
                payable to such State under section 403(a)(1) 
                for--
                            ``(i) the fiscal year immediately 
                        succeeding the year in which such 2-
                        year period ends; and
                            ``(ii) each succeeding fiscal year 
                        in which the State does not demonstrate 
                        that such State has implemented and 
                        maintained such policies and practices.
                    ``(B) Reduction of applicable penalty.--The 
                Secretary may reduce the amount of the 
                reduction required under subparagraph (A) based 
                on the degree of noncompliance of the State.
                    ``(C) State not responsible for individual 
                violations.--Fraudulent activity by any 
                individual in an attempt to circumvent the 
                policies and practices required by section 
                408(a)(12) shall not trigger a State penalty 
                under subparagraph (A).''.
    (c) Additional State Plan Requirements.--Section 
402(a)(1)(A) of such Act (42 U.S.C. 602(a)(1)(A)) is amended by 
adding at the end the following:
                            ``(vii) Implement policies and 
                        procedures as necessary to prevent 
                        access to assistance provided under the 
                        State program funded under this part 
                        through any electronic fund transaction 
                        in an automated teller machine or 
                        point-of-sale device located in a place 
                        described in section 408(a)(12), 
                        including a plan to ensure that 
                        recipients of the assistance have 
                        adequate access to their cash 
                        assistance.
                            ``(viii) Ensure that recipients of 
                        assistance provided under the State 
                        program funded under this part have 
                        access to using or withdrawing 
                        assistance with minimal fees or 
                        charges, including an opportunity to 
                        access assistance with no fee or 
                        charges, and are provided information 
                        on applicable fees and surcharges that 
                        apply to electronic fund transactions 
                        involving the assistance, and that such 
                        information is made publicly 
                        available.''.
    (d) Conforming Amendment.--Section 409(c)(4) of such Act 
(42 U.S.C. 609(c)(4)) is amended by striking ``or (13)'' and 
inserting ``(13), or (16)''.

SEC. 4005. TECHNICAL CORRECTIONS.

    (a) Section 404(d)(1)(A) of the Social Security Act (42 
U.S.C. 604(d)(1)(A)) is amended by striking ``subtitle 1 of 
Title'' and inserting ``Subtitle A of title''.
    (b) Sections 407(c)(2)(A)(i) and 409(a)(3)(C) of such Act 
(42 U.S.C. 607(c)(2)(A)(i) and 609(a)(3)(C)) are each amended 
by striking ``403(b)(6)'' and inserting ``403(b)(5)''.
    (c) Section 409(a)(2)(A) of such Act (42 U.S.C. 
609(a)(2)(A)) is amended by moving clauses (i) and (ii) 2 ems 
to the right.
    (d) Section 409(c)(2) of such Act (42 U.S.C. 609(c)(2)) is 
amended by inserting a comma after ``appropriate''.
    (e) Section 411(a)(1)(A)(ii)(III) of such Act (42 U.S.C. 
611(a)(1)(A)(ii)(III)) is amended by striking the last close 
parenthesis.

                 TITLE V--FEDERAL EMPLOYEES RETIREMENT

SEC. 5001. INCREASE IN CONTRIBUTIONS TO FEDERAL EMPLOYEES' RETIREMENT 
                    SYSTEM FOR NEW EMPLOYEES.

    (a) Definitions.--Section 8401 of title 5, United States 
Code, is amended--
            (1) in paragraph (35), by striking ``and'' at the 
        end;
            (2) in paragraph (36), by striking the period and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(37) the term `revised annuity employee' means 
        any individual who--
                    ``(A) on December 31, 2012--
                            ``(i) is not an employee or Member 
                        covered under this chapter;
                            ``(ii) is not performing civilian 
                        service which is creditable service 
                        under section 8411; and
                            ``(iii) has less than 5 years of 
                        creditable civilian service under 
                        section 8411; and
                    ``(B) after December 31, 2012, becomes 
                employed as an employee or becomes a Member 
                covered under this chapter performing service 
                which is creditable service under section 
                8411.''.
    (b) Increase in Contributions.--Section 8422(a)(3) of title 
5, United States Code, is amended--
            (1) by striking ``The applicable percentage under 
        this paragraph for civilian service'' and inserting 
        ``(A) The applicable percentage under this paragraph 
        for civilian service by employees or Members other than 
        revised annuity employees''; and
            (2) by adding at the end the following:
    ``(B) The applicable percentage under this paragraph for 
civilian service by revised annuity employees shall be as 
follows:

------------------------------------------------------------------------

------------------------------------------------------------------------
``Employee                        9.3                 After December 31,
                                                       2012.
Congressional employee            9.3                 After December 31,
                                                       2012.
Member                            9.3                 After December 31,
                                                       2012.
Law enforcement officer,          9.8                 After December 31,
 firefighter, member of the                            2012.
 Capitol Police, member of the
 Supreme Court Police, or air
 traffic controller
Nuclear materials courier         9.8                 After December 31,
                                                       2012.
Customs and border protection     9.8                 After December 31,
 officer                                               2012.''.
------------------------------------------------------------------------

    (c) Reduction in Congressional Annuities.--
            (1) In general.--Section 8415 of title 5, United 
        States Code, is amended--
                    (A) by redesignating subsections (d) 
                through (m) as subsections (e) through (n), 
                respectively; and
                    (B) by inserting after subsection (c) the 
                following:
    ``(d) Notwithstanding any other provision of law, the 
annuity of an individual described in subsection (b) or (c) who 
is a revised annuity employee shall be computed in the same 
manner as in the case of an individual described in subsection 
(a).''.
            (2) Technical and conforming amendments.--
                    (A) Section 8422(d)(2) of title 5, United 
                States Code, is amended by striking ``section 
                8415(l)'' and inserting ``section 8415(m)''.
                    (B) Section 8452(d)(1) of title 5, United 
                States Code, is amended by striking 
                ``subsection (g)'' and inserting ``subsection 
                (h)''.
                    (C) Section 8468(b)(1)(A) of title 5, 
                United States Code, is amended by striking 
                ``section 8415(a) through (h)'' and inserting 
                ``section 8415(a) through (i)''.
                    (D) Section 805(a)(2)(B) of the Foreign 
                Service Act of 1980 (22 U.S.C. 4045(a)(2)(B)) 
                is amended by striking ``section 8415(d)'' and 
                inserting ``section 8415(e)''.
                    (E) Section 806(a) of the Foreign Service 
                Act of 1980 (22 U.S.C. 4046(a)) is amended by 
                striking ``section 8415(d)'' each place it 
                appears and inserting ``section 8415(e)''.
                    (F) Section 855(b) of the Foreign Service 
                Act of 1980 (22 U.S.C. 4071d(b)) is amended--
                            (i) in paragraph (2)(A), by 
                        striking ``section 8415(d)(1)'' and 
                        inserting ``section 8415(e)(1)''; and
                            (ii) in paragraph (5), by striking 
                        ``section 8415(f)(1)'' and inserting 
                        ``section 8415(g)(1)''.
                    (G) Section 303(b)(1) of the Central 
                Intelligence Agency Retirement Act (50 U.S.C. 
                2153(b)(1)) is amended by striking ``section 
                8415(d)'' and inserting ``section 8415(e)''.

SEC. 5002. FOREIGN SERVICE PENSION SYSTEM.

    (a) Definition.--Section 852 of the Foreign Service Act of 
1980 (22 U.S.C. 4071a) is amended--
            (1) by redesignating paragraphs (7), (8), and (9) 
        as paragraphs (8), (9), and (10), respectively; and
            (2) by inserting after paragraph (6) the following:
            ``(7) the term `revised annuity participant' means 
        any individual who--
                    ``(A) on December 31, 2012--
                            ``(i) is not a participant;
                            ``(ii) is not performing service 
                        which is creditable service under 
                        section 854; and
                            ``(iii) has less than 5 years 
                        creditable service under section 854; 
                        and
                    ``(B) after December 31, 2012, becomes a 
                participant performing service which is 
                creditable service under section 854;''.
    (b) Deductions and Withholdings From Pay.--Section 
856(a)(2) of the Foreign Service Act of 1980 (22 U.S.C. 
4071e(a)(2)) is amended--
            (1) by striking ``The applicable percentage under 
        this subsection'' and inserting ``(A) The applicable 
        percentage for a participant other than a revised 
        annuity participant''; and
            (2) by adding at the end the following:
    ``(B) The applicable percentage for a revised annuity 
participant shall be as follows:


``9.85..........................  After December 31, 2012''.



SEC. 5003. CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY 
                    SYSTEM.

    Section 211(a) of the Central Intelligence Agency 
Retirement Act (50 U.S.C. 2021(a)) is amended--
            (1) by redesignating paragraph (3) as paragraph 
        (4); and
            (2) by striking paragraphs (1) and (2) and 
        inserting the following:
            ``(1) Definition.--In this subsection, the term 
        `revised annuity participant' means an individual who--
                    ``(A) on December 31, 2012--
                            ``(i) is not a participant;
                            ``(ii) is not performing qualifying 
                        service; and
                            ``(iii) has less than 5 years of 
                        qualifying service; and
                    ``(B) after December 31, 2012, becomes a 
                participant performing qualifying service.
            ``(2) Contributions.--
                    ``(A) In general.--Except as provided in 
                subsection (d), 7 percent of the basic pay 
                received by a participant other than a revised 
                annuity participant for any pay period shall be 
                deducted and withheld from the pay of that 
                participant and contributed to the fund.
                    ``(B) Revised annuity participants.--Except 
                as provided in subsection (d), 9.3 percent of 
                the basic pay received by a revised annuity 
                participant for any pay period shall be 
                deducted and withheld from the pay of that 
                revised annuity participant and contributed to 
                the fund.
            ``(3) Agency contributions.--
                    ``(A) In general.--An amount equal to 7 
                percent of the basic pay received by a 
                participant other than a revised annuity 
                participant shall be contributed to the fund 
                for a pay period for the participant from the 
                appropriation or fund which is used for payment 
                of the participant's basic pay.
                    ``(B) Revised annuity participants.--An 
                amount equal to 4.7 percent of the basic pay 
                received by a revised annuity participant shall 
                be contributed to the fund for a pay period for 
                the revised annuity participant from the 
                appropriation or fund which is used for payment 
                of the revised annuity participant's basic 
                pay.''.

  TITLE VI--PUBLIC SAFETY COMMUNICATIONS AND ELECTROMAGNETIC SPECTRUM 
                                AUCTIONS

SEC. 6001. DEFINITIONS.

    In this title:
            (1) 700 mhz band.--The term ``700 MHz band'' means 
        the portion of the electromagnetic spectrum between the 
        frequencies from 698 megahertz to 806 megahertz.
            (2) 700 mhz d block spectrum.--The term ``700 MHz D 
        block spectrum'' means the portion of the 
        electromagnetic spectrum between the frequencies from 
        758 megahertz to 763 megahertz and between the 
        frequencies from 788 megahertz to 793 megahertz.
            (3) Appropriate committees of congress.--Except as 
        otherwise specifically provided, the term ``appropriate 
        committees of Congress'' means--
                    (A) the Committee on Commerce, Science, and 
                Transportation of the Senate; and
                    (B) the Committee on Energy and Commerce of 
                the House of Representatives.
            (4) Assistant secretary.--The term ``Assistant 
        Secretary'' means the Assistant Secretary of Commerce 
        for Communications and Information.
            (5) Board.--The term ``Board'' means the Board of 
        the First Responder Network Authority established under 
        section 6204(b).
            (6) Broadcast television licensee.--The term 
        ``broadcast television licensee'' means the licensee 
        of--
                    (A) a full-power television station; or
                    (B) a low-power television station that has 
                been accorded primary status as a Class A 
                television licensee under section 73.6001(a) of 
                title 47, Code of Federal Regulations.
            (7) Broadcast television spectrum.--The term 
        ``broadcast television spectrum'' means the portions of 
        the electromagnetic spectrum between the frequencies 
        from 54 megahertz to 72 megahertz, from 76 megahertz to 
        88 megahertz, from 174 megahertz to 216 megahertz, and 
        from 470 megahertz to 698 megahertz.
            (8) Commercial mobile data service.--The term 
        ``commercial mobile data service'' means any mobile 
        service (as defined in section 3 of the Communications 
        Act of 1934 (47 U.S.C. 153)) that is--
                    (A) a data service;
                    (B) provided for profit; and
                    (C) available to the public or such classes 
                of eligible users as to be effectively 
                available to a substantial portion of the 
                public, as specified by regulation by the 
                Commission.
            (9) Commercial mobile service.--The term 
        ``commercial mobile service'' has the meaning given 
        such term in section 332 of the Communications Act of 
        1934 (47 U.S.C. 332).
            (10) Commercial standards.--The term ``commercial 
        standards'' means the technical standards followed by 
        the commercial mobile service and commercial mobile 
        data service industries for network, device, and 
        Internet Protocol connectivity. Such term includes 
        standards developed by the Third Generation Partnership 
        Project (3GPP), the Institute of Electrical and 
        Electronics Engineers (IEEE), the Alliance for 
        Telecommunications Industry Solutions (ATIS), the 
        Internet Engineering Task Force (IETF), and the 
        International Telecommunication Union (ITU).
            (11) Commission.--The term ``Commission'' means the 
        Federal Communications Commission.
            (12) Core network.--The term ``core network'' means 
        the core network described in section 6202(b)(1).
            (13) Emergency call.--The term ``emergency call'' 
        means any real-time communication with a public safety 
        answering point or other emergency management or 
        response agency, including--
                    (A) through voice, text, or video and 
                related data; and
                    (B) nonhuman-initiated automatic event 
                alerts, such as alarms, telematics, or sensor 
                data, which may also include real-time voice, 
                text, or video communications.
            (14) Existing public safety broadband spectrum.--
        The term ``existing public safety broadband spectrum'' 
        means the portion of the electromagnetic spectrum 
        between the frequencies--
                    (A) from 763 megahertz to 768 megahertz;
                    (B) from 793 megahertz to 798 megahertz;
                    (C) from 768 megahertz to 769 megahertz; 
                and
                    (D) from 798 megahertz to 799 megahertz.
            (15) First responder network authority.--The term 
        ``First Responder Network Authority'' means the First 
        Responder Network Authority established under section 
        6204.
            (16) Forward auction.--The term ``forward auction'' 
        means the portion of an incentive auction of broadcast 
        television spectrum under section 6403(c).
            (17) Incentive auction.--The term ``incentive 
        auction'' means a system of competitive bidding under 
        subparagraph (G) of section 309(j)(8) of the 
        Communications Act of 1934, as added by section 6402.
            (18) Interoperability board.--The term 
        ``Interoperability Board'' means the Technical Advisory 
        Board for First Responder Interoperability established 
        under section 6203.
            (19) Multichannel video programming distributor.--
        The term ``multichannel video programming distributor'' 
        has the meaning given such term in section 602 of the 
        Communications Act of 1934 (47 U.S.C. 522).
            (20) Narrowband spectrum.--The term ``narrowband 
        spectrum'' means the portion of the electromagnetic 
        spectrum between the frequencies from 769 megahertz to 
        775 megahertz and between the frequencies from 799 
        megahertz to 805 megahertz.
            (21) Nationwide public safety broadband network.--
        The term ``nationwide public safety broadband network'' 
        means the nationwide, interoperable public safety 
        broadband network described in section 6202.
            (22) Next generation 9-1-1 services.--The term 
        ``Next Generation 9-1-1 services'' means an IP-based 
        system comprised of hardware, software, data, and 
        operational policies and procedures that--
                    (A) provides standardized interfaces from 
                emergency call and message services to support 
                emergency communications;
                    (B) processes all types of emergency calls, 
                including voice, text, data, and multimedia 
                information;
                    (C) acquires and integrates additional 
                emergency call data useful to call routing and 
                handling;
                    (D) delivers the emergency calls, messages, 
                and data to the appropriate public safety 
                answering point and other appropriate emergency 
                entities;
                    (E) supports data or video communications 
                needs for coordinated incident response and 
                management; and
                    (F) provides broadband service to public 
                safety answering points or other first 
                responder entities.
            (23) NIST.--The term ``NIST'' means the National 
        Institute of Standards and Technology.
            (24) NTIA.--The term ``NTIA'' means the National 
        Telecommunications and Information Administration.
            (25) Public safety answering point.--The term 
        ``public safety answering point'' has the meaning given 
        such term in section 222 of the Communications Act of 
        1934 (47 U.S.C. 222).
            (26) Public safety entity.--The term ``public 
        safety entity'' means an entity that provides public 
        safety services.
            (27) Public safety services.--The term ``public 
        safety services''--
                    (A) has the meaning given the term in 
                section 337(f) of the Communications Act of 
                1934 (47 U.S.C. 337(f)); and
                    (B) includes services provided by emergency 
                response providers, as that term is defined in 
                section 2 of the Homeland Security Act of 2002 
                (6 U.S.C. 101).
            (28) Public safety trust fund.--The term ``Public 
        Safety Trust Fund'' means the trust fund established 
        under section 6413(a)(1).
            (29) Radio access network.--The term ``radio access 
        network'' means the radio access network described in 
        section 6202(b)(2).
            (30) Reverse auction.--The term ``reverse auction'' 
        means the portion of an incentive auction of broadcast 
        television spectrum under section 6403(a), in which a 
        broadcast television licensee may submit bids stating 
        the amount it would accept for voluntarily 
        relinquishing some or all of its broadcast television 
        spectrum usage rights.
            (31) State.--The term ``State'' has the meaning 
        given such term in section 3 of the Communications Act 
        of 1934 (47 U.S.C. 153).
            (32) Ultra high frequency.--The term ``ultra high 
        frequency'' means, with respect to a television 
        channel, that the channel is located in the portion of 
        the electromagnetic spectrum between the frequencies 
        from 470 megahertz to 698 megahertz.
            (33) Very high frequency.--The term ``very high 
        frequency'' means, with respect to a television 
        channel, that the channel is located in the portion of 
        the electromagnetic spectrum between the frequencies 
        from 54 megahertz to 72 megahertz, from 76 megahertz to 
        88 megahertz, or from 174 megahertz to 216 megahertz.

SEC. 6002. RULE OF CONSTRUCTION.

    Each range of frequencies described in this title shall be 
construed to be inclusive of the upper and lower frequencies in 
the range.

SEC. 6003. ENFORCEMENT.

    (a) In General.--The Commission shall implement and enforce 
this title as if this title is a part of the Communications Act 
of 1934 (47 U.S.C. 151 et seq.). A violation of this title, or 
a regulation promulgated under this title, shall be considered 
to be a violation of the Communications Act of 1934, or a 
regulation promulgated under such Act, respectively.
    (b) Exceptions.--
            (1) Other agencies.--Subsection (a) does not apply 
        in the case of a provision of this title that is 
        expressly required to be carried out by an agency (as 
        defined in section 551 of title 5, United States Code) 
        other than the Commission.
            (2) NTIA regulations.--The Assistant Secretary may 
        promulgate such regulations as are necessary to 
        implement and enforce any provision of this title that 
        is expressly required to be carried out by the 
        Assistant Secretary.

SEC. 6004. NATIONAL SECURITY RESTRICTIONS ON USE OF FUNDS AND AUCTION 
                    PARTICIPATION.

    (a) Use of Funds.--No funds made available by subtitle B or 
C may be used to make payments under a contract to a person 
described in subsection (c).
    (b) Auction Participation.--A person described in 
subsection (c) may not participate in a system of competitive 
bidding under section 309(j) of the Communications Act of 1934 
(47 U.S.C. 309(j))--
            (1) that is required to be conducted by this title; 
        or
            (2) in which any spectrum usage rights for which 
        licenses are being assigned were made available under 
        clause (i) of subparagraph (G) of paragraph (8) of such 
        section, as added by section 6402.
    (c) Person Described.--A person described in this 
subsection is a person who has been, for reasons of national 
security, barred by any agency of the Federal Government from 
bidding on a contract, participating in an auction, or 
receiving a grant.

           Subtitle A--Reallocation of Public Safety Spectrum

SEC. 6101. REALLOCATION OF D BLOCK TO PUBLIC SAFETY.

    (a) In General.--The Commission shall reallocate the 700 
MHz D block spectrum for use by public safety entities in 
accordance with the provisions of this Act.
    (b) Spectrum Allocation.--Section 337(a) of the 
Communications Act of 1934 (47 U.S.C. 337(a)) is amended--
            (1) by striking ``24'' in paragraph (1) and 
        inserting ``34''; and
            (2) by striking ``36'' in paragraph (2) and 
        inserting ``26''.

SEC. 6102. FLEXIBLE USE OF NARROWBAND SPECTRUM.

    The Commission may allow the narrowband spectrum to be used 
in a flexible manner, including usage for public safety 
broadband communications, subject to such technical and 
interference protection measures as the Commission may require.

SEC. 6103. 470-512 MHZ PUBLIC SAFETY SPECTRUM.

    (a) In General.--Not later than 9 years after the date of 
enactment of this title, the Commission shall--
            (1) reallocate the spectrum in the 470-512 MHz band 
        (referred to in this section as the ``T-Band 
        spectrum'') currently used by public safety eligibles 
        as identified in section 90.303 of title 47, Code of 
        Federal Regulations; and
            (2) begin a system of competitive bidding under 
        section 309(j) of the Communications Act of 1934 (47 
        U.S.C. 309(j)) to grant new initial licenses for the 
        use of the spectrum described in paragraph (1).
    (b) Auction Proceeds.--Proceeds (including deposits and 
upfront payments from successful bidders) from the competitive 
bidding system described in subsection (a)(2) shall be 
available to the Assistant Secretary to make grants in such 
sums as necessary to cover relocation costs for the relocation 
of public safety entities from the T-Band spectrum.
    (c) Relocation.--Relocation shall be completed not later 
than 2 years after the date on which the system of competitive 
bidding described in subsection (a)(2) is completed.

            Subtitle B--Governance of Public Safety Spectrum

SEC. 6201. SINGLE PUBLIC SAFETY WIRELESS NETWORK LICENSEE.

    (a) Reallocation and Grant of License.--Notwithstanding any 
other provision of law, and subject to the provisions of this 
Act, the Commission shall reallocate and grant a license to the 
First Responder Network Authority for the use of the 700 MHz D 
block spectrum and existing public safety broadband spectrum.
    (b) Term of License.--
            (1) Initial license.--The license granted under 
        subsection (a) shall be for an initial term of 10 years 
        from the date of the initial issuance of the license.
            (2) Renewal of license.--Prior to expiration of the 
        term of the initial license granted under subsection 
        (a) or the expiration of any subsequent renewal of such 
        license, the First Responder Network Authority shall 
        submit to the Commission an application for the renewal 
        of such license. Such renewal application shall 
        demonstrate that, during the preceding license term, 
        the First Responder Network Authority has met the 
        duties and obligations set forth under this Act. A 
        renewal license granted under this paragraph shall be 
        for a term of not to exceed 10 years.
    (c) Facilitation of Transition.--The Commission shall take 
all actions necessary to facilitate the transition of the 
existing public safety broadband spectrum to the First 
Responder Network Authority.

SEC. 6202. PUBLIC SAFETY BROADBAND NETWORK.

    (a) Establishment.--The First Responder Network Authority 
shall ensure the establishment of a nationwide, interoperable 
public safety broadband network.
    (b) Network Components.--The nationwide public safety 
broadband network shall be based on a single, national network 
architecture that evolves with technological advancements and 
initially consists of--
            (1) a core network that--
                    (A) consists of national and regional data 
                centers, and other elements and functions that 
                may be distributed geographically, all of which 
                shall be based on commercial standards; and
                    (B) provides the connectivity between--
                            (i) the radio access network; and
                            (ii) the public Internet or the 
                        public switched network, or both; and
            (2) a radio access network that--
                    (A) consists of all cell site equipment, 
                antennas, and backhaul equipment, based on 
                commercial standards, that are required to 
                enable wireless communications with devices 
                using the public safety broadband spectrum; and
                    (B) shall be developed, constructed, 
                managed, maintained, and operated taking into 
                account the plans developed in the State, 
                local, and tribal planning and implementation 
                grant program under section 6302(a).

SEC. 6203. PUBLIC SAFETY INTEROPERABILITY BOARD.

    (a) Establishment.--There is established within the 
Commission an advisory board to be known as the ``Technical 
Advisory Board for First Responder Interoperability''.
    (b) Membership.--
            (1) In general.--
                    (A) Voting members.--Not later than 30 days 
                after the date of enactment of this title, the 
                Chairman of the Commission shall appoint 14 
                voting members to the Interoperability Board, 
                of which--
                            (i) 4 members shall be 
                        representatives of wireless providers, 
                        of which--
                                    (I) 2 members shall be 
                                representatives of national 
                                wireless providers;
                                    (II) 1 member shall be a 
                                representative of regional 
                                wireless providers; and
                                    (III) 1 member shall be a 
                                representative of rural 
                                wireless providers;
                            (ii) 3 members shall be 
                        representatives of equipment 
                        manufacturers;
                            (iii) 4 members shall be 
                        representatives of public safety 
                        entities, of which--
                                    (I) not less than 1 member 
                                shall be a representative of 
                                management level employees of 
                                public safety entities; and
                                    (II) not less than 1 member 
                                shall be a representative of 
                                employees of public safety 
                                entities;
                            (iv) 3 members shall be 
                        representatives of State and local 
                        governments, chosen to reflect 
                        geographic and population density 
                        differences across the United States; 
                        and
                            (v) all members shall have specific 
                        expertise necessary to developing 
                        technical requirements under this 
                        section, such as technical expertise, 
                        public safety communications expertise, 
                        and commercial network experience.
                    (B) Non-voting member.--The Assistant 
                Secretary shall appoint 1 non-voting member to 
                the Interoperability Board.
            (2) Period of appointment.--
                    (A) In general.--Except as provided in 
                subparagraph (B), members of the 
                Interoperability Board shall be appointed for 
                the life of the Interoperability Board.
                    (B) Removal for cause.--A member of the 
                Interoperability Board may be removed for cause 
                upon the determination of the Chairman of the 
                Commission.
            (3) Vacancies.--Any vacancy in the Interoperability 
        Board shall not affect the powers of the 
        Interoperability Board, and shall be filled in the same 
        manner as the original appointment.
            (4) Chairperson and vice chairperson.--The 
        Interoperability Board shall select a Chairperson and 
        Vice Chairperson from among the members of the 
        Interoperability Board.
            (5) Quorum.--A majority of the members of the 
        Interoperability Board shall constitute a quorum.
    (c) Duties of the Interoperability Board.--
            (1) Development of technical requirements.--Not 
        later than 90 days after the date of enactment of this 
        Act, the Interoperability Board, in consultation with 
        the NTIA, NIST, and the Office of Emergency 
        Communications of the Department of Homeland Security, 
        shall--
                    (A) develop recommended minimum technical 
                requirements to ensure a nationwide level of 
                interoperability for the nationwide public 
                safety broadband network; and
                    (B) submit to the Commission for review in 
                accordance with paragraph (3) recommended 
                minimum technical requirements described in 
                subparagraph (A).
            (2) Consideration.--In developing recommended 
        minimum technical requirements under paragraph (1), the 
        Interoperability Board shall base the recommended 
        minimum technical requirements on the commercial 
        standards for Long Term Evolution (LTE) service.
            (3) Approval of recommendations.--
                    (A) In general.--Not later than 30 days 
                after the date on which the Interoperability 
                Board submits recommended minimum technical 
                requirements under paragraph (1)(B), the 
                Commission shall approve the recommendations, 
                with any revisions it deems necessary, and 
                transmit such recommendations to the First 
                Responder Network Authority.
                    (B) Review.--Any actions taken under 
                subparagraph (A) shall not be reviewable as a 
                final agency action.
    (d) Travel Expenses.--The members of the Interoperability 
Board shall be allowed travel expenses, including per diem in 
lieu of subsistence, at rates authorized for employees of 
agencies under subchapter I of chapter 57 of title 5, United 
States Code, while away from their homes or regular places of 
business in the performance of services for the 
Interoperability Board.
    (e) Exemption From FACA.--The Federal Advisory Committee 
Act (5 U.S.C. App.) shall not apply to the Interoperability 
Board.
    (f) Termination of Authority.--The Interoperability Board 
shall terminate 15 days after the date on which the Commission 
transmits the recommendations to the First Responder Network 
Authority under subsection (c)(3)(A).

SEC. 6204. ESTABLISHMENT OF THE FIRST RESPONDER NETWORK AUTHORITY.

    (a) Establishment.--There is established as an independent 
authority within the NTIA the ``First Responder Network 
Authority'' or ``FirstNet''.
    (b) Board.--
            (1) In general.--The First Responder Network 
        Authority shall be headed by a Board, which shall 
        consist of--
                    (A) the Secretary of Homeland Security;
                    (B) the Attorney General of the United 
                States;
                    (C) the Director of the Office of 
                Management and Budget; and
                    (D) 12 individuals appointed by the 
                Secretary of Commerce in accordance with 
                paragraph (2).
            (2) Appointments.--
                    (A) In general.--In making appointments 
                under paragraph (1)(D), the Secretary of 
                Commerce shall--
                            (i) appoint not fewer than 3 
                        individuals to represent the collective 
                        interests of the States, localities, 
                        tribes, and territories;
                            (ii) seek to ensure geographic and 
                        regional representation of the United 
                        States in such appointments;
                            (iii) seek to ensure rural and 
                        urban representation in such 
                        appointments; and
                            (iv) appoint not fewer than 3 
                        individuals who have served as public 
                        safety professionals.
                    (B) Required qualifications.--
                            (i) In general.--Each member 
                        appointed under paragraph (1)(D) should 
                        meet not less than 1 of the following 
                        criteria:
                                    (I) Public safety 
                                experience.--Knowledge and 
                                experience in the use of 
                                Federal, State, local, or 
                                tribal public safety or 
                                emergency response.
                                    (II) Technical expertise.--
                                Technical expertise and fluency 
                                regarding broadband 
                                communications, including 
                                public safety communications.
                                    (III) Network expertise.--
                                Expertise in building, 
                                deploying, and operating 
                                commercial telecommunications 
                                networks.
                                    (IV) Financial expertise.--
                                Expertise in financing and 
                                funding telecommunications 
                                networks.
                            (ii) Expertise to be represented.--
                        In making appointments under paragraph 
                        (1)(D), the Secretary of Commerce shall 
                        appoint--
                                    (I) not fewer than 1 
                                individual who satisfies the 
                                requirement under subclause 
                                (II) of clause (i);
                                    (II) not fewer than 1 
                                individual who satisfies the 
                                requirement under subclause 
                                (III) of clause (i); and
                                    (III) not fewer than 1 
                                individual who satisfies the 
                                requirement under subclause 
                                (IV) of clause (i).
                    (C) Citizenship.--No individual other than 
                a citizen of the United States may serve as a 
                member of the Board.
    (c) Terms of Appointment.--
            (1) Initial appointment deadline.--Members of the 
        Board shall be appointed not later than 180 days after 
        the date of the enactment of this title.
            (2) Terms.--
                    (A) Length.--
                            (i) In general.--Each member of the 
                        Board described in subparagraphs (A) 
                        through (C) of subsection (b)(1) shall 
                        serve as a member of the Board for the 
                        life of the First Responder Network 
                        Authority.
                            (ii) Appointed individuals.--The 
                        term of office of each individual 
                        appointed to be a member of the Board 
                        under subsection (b)(1)(D) shall be 3 
                        years. No member described in this 
                        clause may serve more than 2 
                        consecutive full 3-year terms.
                    (B) Expiration of term.--Any member whose 
                term has expired may serve until such member's 
                successor has taken office, or until the end of 
                the calendar year in which such member's term 
                has expired, whichever is earlier.
                    (C) Appointment to fill vacancy.--Any 
                member appointed to fill a vacancy occurring 
                prior to the expiration of the term for which 
                that member's predecessor was appointed shall 
                be appointed for the remainder of the 
                predecessor's term.
                    (D) Staggered terms.--With respect to the 
                initial members of the Board appointed under 
                subsection (b)(1)(D)--
                            (i) 4 members shall serve for a 
                        term of 3 years;
                            (ii) 4 members shall serve for a 
                        term of 2 years; and
                            (iii) 4 members shall serve for a 
                        term of 1 year.
            (3) Vacancies.--A vacancy in the membership of the 
        Board shall not affect the Board's powers, and shall be 
        filled in the same manner as the original member was 
        appointed.
    (d) Chair.--
            (1) Selection.--The Secretary of Commerce shall 
        select, from among the members of the Board appointed 
        under subsection (b)(1)(D), an individual to serve for 
        a 2-year term as Chair of the Board.
            (2) Consecutive terms.--An individual may not serve 
        for more than 2 consecutive terms as Chair of the 
        Board.
    (e) Meetings.--
            (1) Frequency.--The Board shall meet--
                    (A) at the call of the Chair ; and
                    (B) not less frequently than once each 
                quarter.
            (2) Transparency.--Meetings of the Board, including 
        any committee of the Board, shall be open to the 
        public. The Board may, by majority vote, close any such 
        meeting only for the time necessary to preserve the 
        confidentiality of commercial or financial information 
        that is privileged or confidential, to discuss 
        personnel matters, or to discuss legal matters 
        affecting the First Responder Network Authority, 
        including pending or potential litigation.
    (f) Quorum.--Eight members of the Board shall constitute a 
quorum, including at least 6 of the members appointed under 
subsection (b)(1)(D).
    (g) Compensation.--
            (1) In general.--The members of the Board appointed 
        under subsection (b)(1)(D) shall be compensated at the 
        daily rate of basic pay for level IV of the Executive 
        Schedule for each day during which such members are 
        engaged in performing a function of the Board.
            (2) Prohibition on compensation.--A member of the 
        Board appointed under subparagraphs (A) through (C) of 
        subsection (b)(1) shall serve without additional pay, 
        and shall not otherwise benefit, directly or 
        indirectly, as a result of their service to the First 
        Responder Network Authority, but shall be allowed a per 
        diem allowance for travel expenses, at rates authorized 
        for an employee of an agency under subchapter I of 
        chapter 57 of title 5, United States Code, while away 
        from the home or regular place of business of the 
        member in the performance of the duties of the First 
        Responder Network Authority.

SEC. 6205. ADVISORY COMMITTEES OF THE FIRST RESPONDER NETWORK 
                    AUTHORITY.

    (a) Advisory Committees.--The First Responder Network 
Authority--
            (1) shall establish a standing public safety 
        advisory committee to assist the First Responder 
        Network Authority in carrying out its duties and 
        responsibilities under this subtitle; and
            (2) may establish additional standing or ad hoc 
        committees, panels, or councils as the First Responder 
        Network Authority determines are necessary.
    (b) Selection of Agents, Consultants, and Experts.--
            (1) In general.--The First Responder Network 
        Authority shall select parties to serve as its agents, 
        consultants, or experts in a fair, transparent, and 
        objective manner, and such agents may include a program 
        manager to carry out certain of the duties and 
        responsibilities of deploying and operating the 
        nationwide public safety broadband network described in 
        subsections (b) and (c) of section 6206.
            (2) Binding and final.--If the selection of an 
        agent, consultant, or expert satisfies the requirements 
        under paragraph (1), the selection of that agent, 
        consultant, or expert shall be final and binding.

SEC. 6206. POWERS, DUTIES, AND RESPONSIBILITIES OF THE FIRST RESPONDER 
                    NETWORK AUTHORITY.

    (a) General Powers.--The First Responder Network Authority 
shall have the authority to do the following:
            (1) To exercise, through the actions of its Board, 
        all powers specifically granted by the provisions of 
        this subtitle, and such incidental powers as shall be 
        necessary.
            (2) To hold such hearings, sit and act at such 
        times and places, take such testimony, and receive such 
        evidence as the First Responder Network Authority 
        considers necessary to carry out its responsibilities 
        and duties.
            (3) To obtain grants and funds from and make 
        contracts with individuals, private companies, 
        organizations, institutions, and Federal, State, 
        regional, and local agencies.
            (4) To accept, hold, administer, and utilize gifts, 
        donations, and bequests of property, both real and 
        personal, for the purposes of aiding or facilitating 
        the work of the First Responder Network Authority.
            (5) To spend funds under paragraph (3) in a manner 
        authorized by the Board, but only for purposes that 
        will advance or enhance public safety communications 
        consistent with this title.
            (6) To take such other actions as the First 
        Responder Network Authority (through the Board) may 
        from time to time determine necessary, appropriate, or 
        advisable to accomplish the purposes of this title.
    (b) Duty and Responsibility To Deploy and Operate a 
Nationwide Public Safety Broadband Network.--
            (1) In general.--The First Responder Network 
        Authority shall hold the single public safety wireless 
        license granted under section 6201 and take all actions 
        necessary to ensure the building, deployment, and 
        operation of the nationwide public safety broadband 
        network, in consultation with Federal, State, tribal, 
        and local public safety entities, the Director of NIST, 
        the Commission, and the public safety advisory 
        committee established in section 6205(a), including by, 
        at a minimum--
                    (A) ensuring nationwide standards for use 
                and access of the network;
                    (B) issuing open, transparent, and 
                competitive requests for proposals to private 
                sector entities for the purposes of building, 
                operating, and maintaining the network that 
                use, without materially changing, the minimum 
                technical requirements developed under section 
                6203;
                    (C) encouraging that such requests 
                leverage, to the maximum extent economically 
                desirable, existing commercial wireless 
                infrastructure to speed deployment of the 
                network; and
                    (D) managing and overseeing the 
                implementation and execution of contracts or 
                agreements with non-Federal entities to build, 
                operate, and maintain the network.
            (2) Requirements.--In carrying out the duties and 
        responsibilities of this subsection, including issuing 
        requests for proposals, the First Responder Network 
        Authority shall--
                    (A) ensure the safety, security, and 
                resiliency of the network, including 
                requirements for protecting and monitoring the 
                network to protect against cyberattack;
                    (B) promote competition in the equipment 
                market, including devices for public safety 
                communications, by requiring that equipment for 
                use on the network be--
                            (i) built to open, non-proprietary, 
                        commercially available standards;
                            (ii) capable of being used by any 
                        public safety entity and by multiple 
                        vendors across all public safety 
                        broadband networks operating in the 700 
                        MHz band; and
                            (iii) backward-compatible with 
                        existing commercial networks to the 
                        extent that such capabilities are 
                        necessary and technically and 
                        economically reasonable;
                    (C) promote integration of the network with 
                public safety answering points or their 
                equivalent; and
                    (D) address special considerations for 
                areas or regions with unique homeland security 
                or national security needs.
            (3) Rural coverage.--In carrying out the duties and 
        responsibilities of this subsection, including issuing 
        requests for proposals, the nationwide, interoperable 
        public safety broadband network, consistent with the 
        license granted under section 6201, shall require 
        deployment phases with substantial rural coverage 
        milestones as part of each phase of the construction 
        and deployment of the network. To the maximum extent 
        economically desirable, such proposals shall include 
        partnerships with existing commercial mobile providers 
        to utilize cost-effective opportunities to speed 
        deployment in rural areas.
            (4) Execution of authority.--In carrying out the 
        duties and responsibilities of this subsection, the 
        First Responder Network Authority may--
                    (A) obtain grants from and make contracts 
                with individuals, private companies, and 
                Federal, State, regional, and local agencies;
                    (B) hire or accept voluntary services of 
                consultants, experts, advisory boards, and 
                panels to aid the First Responder Network 
                Authority in carrying out such duties and 
                responsibilities;
                    (C) receive payment for use of--
                            (i) network capacity licensed to 
                        the First Responder Network Authority; 
                        and
                            (ii) network infrastructure 
                        constructed, owned, or operated by the 
                        First Responder Network Authority; and
                    (D) take such other actions as may be 
                necessary to accomplish the purposes set forth 
                in this subsection.
    (c) Other Specific Duties and Responsibilities.--
            (1) Establishment of network policies.--In carrying 
        out the requirements under subsection (b), the First 
        Responder Network Authority shall develop--
                    (A) requests for proposals with 
                appropriate--
                            (i) timetables for construction, 
                        including by taking into consideration 
                        the time needed to build out to rural 
                        areas and the advantages offered 
                        through partnerships with existing 
                        commercial providers under paragraph 
                        (3);
                            (ii) coverage areas, including 
                        coverage in rural and nonurban areas;
                            (iii) service levels;
                            (iv) performance criteria; and
                            (v) other similar matters for the 
                        construction and deployment of such 
                        network;
                    (B) the technical and operational 
                requirements of the network;
                    (C) practices, procedures, and standards 
                for the management and operation of such 
                network;
                    (D) terms of service for the use of such 
                network, including billing practices; and
                    (E) ongoing compliance review and 
                monitoring of the--
                            (i) management and operation of 
                        such network;
                            (ii) practices and procedures of 
                        the entities operating on and the 
                        personnel using such network; and
                            (iii) necessary training needs of 
                        network operators and users.
            (2) State and local planning.--
                    (A) Required consultation.--In developing 
                requests for proposals and otherwise carrying 
                out its responsibilities under this Act, the 
                First Responder Network Authority shall consult 
                with regional, State, tribal, and local 
                jurisdictions regarding the distribution and 
                expenditure of any amounts required to carry 
                out the policies established under paragraph 
                (1), including with regard to the--
                            (i) construction of a core network 
                        and any radio access network build out;
                            (ii) placement of towers;
                            (iii) coverage areas of the 
                        network, whether at the regional, 
                        State, tribal, or local level;
                            (iv) adequacy of hardening, 
                        security, reliability, and resiliency 
                        requirements;
                            (v) assignment of priority to local 
                        users;
                            (vi) assignment of priority and 
                        selection of entities seeking access to 
                        or use of the nationwide public safety 
                        interoperable broadband network 
                        established under subsection (b); and
                            (vii) training needs of local 
                        users.
                    (B) Method of consultation.--The 
                consultation required under subparagraph (A) 
                shall occur between the First Responder Network 
                Authority and the single officer or 
                governmental body designated under section 
                6302(d).
            (3) Leveraging existing infrastructure.--In 
        carrying out the requirement under subsection (b), the 
        First Responder Network Authority shall enter into 
        agreements to utilize, to the maximum extent 
        economically desirable, existing--
                    (A) commercial or other communications 
                infrastructure; and
                    (B) Federal, State, tribal, or local 
                infrastructure.
            (4) Maintenance and upgrades.--The First Responder 
        Network Authority shall ensure the maintenance, 
        operation, and improvement of the nationwide public 
        safety broadband network, including by ensuring that 
        the First Responder Network Authority updates and 
        revises any policies established under paragraph (1) to 
        take into account new and evolving technologies.
            (5) Roaming agreements.--The First Responder 
        Network Authority shall negotiate and enter into, as it 
        determines appropriate, roaming agreements with 
        commercial network providers to allow the nationwide 
        public safety broadband network to roam onto commercial 
        networks and gain prioritization of public safety 
        communications over such networks in times of an 
        emergency.
            (6) Network infrastructure and device criteria.--
        The Director of NIST, in consultation with the First 
        Responder Network Authority and the Commission, shall 
        ensure the development of a list of certified devices 
        and components meeting appropriate protocols and 
        standards for public safety entities and commercial 
        vendors to adhere to, if such entities or vendors seek 
        to have access to, use of, or compatibility with the 
        nationwide public safety broadband network.
            (7) Representation before standard setting 
        entities.--The First Responder Network Authority, in 
        consultation with the Director of NIST, the Commission, 
        and the public safety advisory committee established 
        under section 6205(a), shall represent the interests of 
        public safety users of the nationwide public safety 
        broadband network before any proceeding, negotiation, 
        or other matter in which a standards organization, 
        standards body, standards development organization, or 
        any other recognized standards-setting entity addresses 
        the development of standards relating to 
        interoperability.
            (8) Prohibition on negotiation with foreign 
        governments.--The First Responder Network Authority 
        shall not have the authority to negotiate or enter into 
        any agreements with a foreign government on behalf of 
        the United States.
    (d) Exemption From Certain Laws.--Any action taken or 
decisions made by the First Responder Network Authority shall 
be exempt from the requirements of--
            (1) section 3506 of title 44, United States Code 
        (commonly referred to as the Paperwork Reduction Act);
            (2) chapter 5 of title 5, United States Code 
        (commonly referred to as the Administrative Procedures 
        Act); and
            (3) chapter 6 of title 5, United States Code 
        (commonly referred to as the Regulatory Flexibility 
        Act).
    (e) Network Construction Fund.--
            (1) Establishment.--There is established in the 
        Treasury of the United States a fund to be known as the 
        ``Network Construction Fund''.
            (2) Use of fund.--Amounts deposited into the 
        Network Construction Fund shall be used by the--
                    (A) First Responder Network Authority to 
                carry out this section, except for 
                administrative expenses; and
                    (B) NTIA to make grants to States under 
                section 6302(e)(3)(C)(iii)(I).
    (f) Termination of Authority.--The authority of the First 
Responder Network Authority shall terminate on the date that is 
15 years after the date of enactment of this title.
    (g) GAO Report.--Not later than 10 years after the date of 
the enactment of this Act, the Comptroller General of the 
United States shall submit to Congress a report on what action 
Congress should take regarding the 15-year sunset of authority 
under subsection (f).

SEC. 6207. INITIAL FUNDING FOR THE FIRST RESPONDER NETWORK AUTHORITY.

    (a) Borrowing Authority.--Prior to the deposit of proceeds 
into the Public Safety Trust Fund from the incentive auctions 
to be carried out under section 309(j)(8)(G) of the 
Communications Act of 1934 or the auction of spectrum pursuant 
to section 6401, the NTIA may borrow from the Treasury such 
sums as may be necessary, but not to exceed $2,000,000,000, to 
implement this subtitle. The NTIA shall reimburse the Treasury, 
without interest, from funds deposited into the Public Safety 
Trust Fund.
    (b) Prohibition.--
            (1) In general.--Administrative expenses of the 
        First Responder Network Authority may not exceed 
        $100,000,000 during the 10-year period beginning on the 
        date of enactment of this title.
            (2) Definition.--For purposes of this subsection, 
        the term ``administrative expenses'' does not include 
        the costs incurred by the First Responder Network 
        Authority for oversight and audits to protect against 
        waste, fraud, and abuse.

SEC. 6208. PERMANENT SELF-FUNDING; DUTY TO ASSESS AND COLLECT FEES FOR 
                    NETWORK USE.

    (a) In General.--Notwithstanding section 337 of the 
Communications Act of 1934 (47 U.S.C. 337), the First Responder 
Network Authority is authorized to assess and collect the 
following fees:
            (1) Network user fee.--A user or subscription fee 
        from each entity, including any public safety entity or 
        secondary user, that seeks access to or use of the 
        nationwide public safety broadband network.
            (2) Lease fees related to network capacity.--
                    (A) In general.--A fee from any entity that 
                seeks to enter into a covered leasing 
                agreement.
                    (B) Covered leasing agreement.--For 
                purposes of subparagraph (A), a ``covered 
                leasing agreement'' means a written agreement 
                resulting from a public-private arrangement to 
                construct, manage, and operate the nationwide 
                public safety broadband network between the 
                First Responder Network Authority and secondary 
                user to permit--
                            (i) access to network capacity on a 
                        secondary basis for non-public safety 
                        services; and
                            (ii) the spectrum allocated to such 
                        entity to be used for commercial 
                        transmissions along the dark fiber of 
                        the long-haul network of such entity.
            (3) Lease fees related to network equipment and 
        infrastructure.--A fee from any entity that seeks 
        access to or use of any equipment or infrastructure, 
        including antennas or towers, constructed or otherwise 
        owned by the First Responder Network Authority 
        resulting from a public-private arrangement to 
        construct, manage, and operate the nationwide public 
        safety broadband network.
    (b) Establishment of Fee Amounts; Permanent Self-funding.--
The total amount of the fees assessed for each fiscal year 
pursuant to this section shall be sufficient, and shall not 
exceed the amount necessary, to recoup the total expenses of 
the First Responder Network Authority in carrying out its 
duties and responsibilities described under this subtitle for 
the fiscal year involved.
    (c) Annual Approval.--The NTIA shall review the fees 
assessed under this section on an annual basis, and such fees 
may only be assessed if approved by the NTIA.
    (d) Required Reinvestment of Funds.--The First Responder 
Network Authority shall reinvest amounts received from the 
assessment of fees under this section in the nationwide public 
safety interoperable broadband network by using such funds only 
for constructing, maintaining, operating, or improving the 
network.

SEC. 6209. AUDIT AND REPORT.

    (a) Audit.--
            (1) In general.--The Secretary of Commerce shall 
        enter into a contract with an independent auditor to 
        conduct an audit, on an annual basis, of the First 
        Responder Network Authority in accordance with general 
        accounting principles and procedures applicable to 
        commercial corporate transactions. Each audit conducted 
        under this paragraph shall be made available to the 
        appropriate committees of Congress.
            (2) Location.--Any audit conducted under paragraph 
        (1) shall be conducted at the place or places where 
        accounts of the First Responder Network Authority are 
        normally kept.
            (3) Access to first responder network authority 
        books and documents.--
                    (A) In general.--For purposes of an audit 
                conducted under paragraph (1), the 
                representatives of the independent auditor 
                shall--
                            (i) have access to all books, 
                        accounts, records, reports, files, and 
                        all other papers, things, or property 
                        belonging to or in use by the First 
                        Responder Network Authority that 
                        pertain to the financial transactions 
                        of the First Responder Network 
                        Authority and are necessary to 
                        facilitate the audit; and
                            (ii) be afforded full facilities 
                        for verifying transactions with the 
                        balances or securities held by 
                        depositories, fiscal agents, and 
                        custodians.
                    (B) Requirement.--All books, accounts, 
                records, reports, files, papers, and property 
                of the First Responder Network Authority shall 
                remain in the possession and custody of the 
                First Responder Network Authority.
    (b) Report.--
            (1) In general.--The independent auditor selected 
        to conduct an audit under this section shall submit a 
        report of each audit conducted under subsection (a) 
        to--
                    (A) the appropriate committees of Congress;
                    (B) the President; and
                    (C) the First Responder Network Authority.
            (2) Contents.--Each report submitted under 
        paragraph (1) shall contain--
                    (A) such comments and information as the 
                independent auditor determines necessary to 
                inform Congress of the financial operations and 
                condition of the First Responder Network 
                Authority;
                    (B) any recommendations of the independent 
                auditor relating to the financial operations 
                and condition of the First Responder Network 
                Authority; and
                    (C) a description of any program, 
                expenditure, or other financial transaction or 
                undertaking of the First Responder Network 
                Authority that was observed during the course 
                of the audit, which, in the opinion of the 
                independent auditor, has been carried on or 
                made without the authority of law.

SEC. 6210. ANNUAL REPORT TO CONGRESS.

    (a) In General.--Not later than 1 year after the date of 
enactment of this Act, and each year thereafter, the First 
Responder Network Authority shall submit an annual report 
covering the preceding fiscal year to the appropriate 
committees of Congress.
    (b) Required Content.--The report required under subsection 
(a) shall include--
            (1) a comprehensive and detailed report of the 
        operations, activities, financial condition, and 
        accomplishments of the First Responder Network 
        Authority under this section; and
            (2) such recommendations or proposals for 
        legislative or administrative action as the First 
        Responder Network Authority deems appropriate.
    (c) Availability to Testify.--The members of the Board and 
employees of the First Responder Network Authority shall be 
available to testify before the appropriate committees of the 
Congress with respect to--
            (1) the report required under subsection (a);
            (2) the report of any audit conducted under section 
        6210; or
            (3) any other matter which such committees may 
        determine appropriate.

SEC. 6211. PUBLIC SAFETY ROAMING AND PRIORITY ACCESS.

    The Commission may adopt rules, if necessary in the public 
interest, to improve the ability of public safety networks to 
roam onto commercial networks and to gain priority access to 
commercial networks in an emergency if--
            (1) the public safety entity equipment is 
        technically compatible with the commercial network;
            (2) the commercial network is reasonably 
        compensated; and
            (3) such access does not preempt or otherwise 
        terminate or degrade all existing voice conversations 
        or data sessions.

SEC. 6212. PROHIBITION ON DIRECT OFFERING OF COMMERCIAL 
                    TELECOMMUNICATIONS SERVICE DIRECTLY TO CONSUMERS.

    (a) In General.--The First Responder Network Authority 
shall not offer, provide, or market commercial 
telecommunications or information services directly to 
consumers.
    (b) Rule of Construction.--Nothing in this section shall be 
construed to prohibit the First Responder Network Authority and 
a secondary user from entering into a covered leasing agreement 
pursuant to section 6208(a)(2)(B). Nothing in this section 
shall be construed to limit the First Responder Network 
Authority from collecting lease fees related to network 
equipment and infrastructure pursuant to section 6208(a)(3).

SEC. 6213. PROVISION OF TECHNICAL ASSISTANCE.

    The Commission may provide technical assistance to the 
First Responder Network Authority and may take any action 
necessary to assist the First Responder Network Authority in 
effectuating its duties and responsibilities under this 
subtitle.

                 Subtitle C--Public Safety Commitments

SEC. 6301. STATE AND LOCAL IMPLEMENTATION FUND.

    (a) Establishment.--There is established in the Treasury of 
the United States a fund to be known as the State and Local 
Implementation Fund.
    (b) Amounts Available for State and Local Implementation 
Grant Program.--Any amounts borrowed under subsection (c)(1) 
and any amounts in the State and Local Implementation Fund that 
are not necessary to reimburse the general fund of the Treasury 
for such borrowed amounts shall be available to the Assistant 
Secretary to implement section 6302.
    (c) Borrowing Authority.--
            (1) In general.--Prior to the end of fiscal year 
        2022, the Assistant Secretary may borrow from the 
        general fund of the Treasury such sums as may be 
        necessary, but not to exceed $135,000,000, to implement 
        section 6302.
            (2) Reimbursement.--The Assistant Secretary shall 
        reimburse the general fund of the Treasury, without 
        interest, for any amounts borrowed under paragraph (1) 
        as funds are deposited into the State and Local 
        Implementation Fund.
    (d) Transfer of Unused Funds.--If there is a balance 
remaining in the State and Local Implementation Fund on 
September 30, 2022, the Secretary of the Treasury shall 
transfer such balance to the general fund of the Treasury, 
where such balance shall be dedicated for the sole purpose of 
deficit reduction.

SEC. 6302. STATE AND LOCAL IMPLEMENTATION.

    (a) Establishment of State and Local Implementation Grant 
Program.--The Assistant Secretary, in consultation with the 
First Responder Network Authority, shall take such action as is 
necessary to establish a grant program to make grants to States 
to assist State, regional, tribal, and local jurisdictions to 
identify, plan, and implement the most efficient and effective 
way for such jurisdictions to utilize and integrate the 
infrastructure, equipment, and other architecture associated 
with the nationwide public safety broadband network to satisfy 
the wireless communications and data services needs of that 
jurisdiction, including with regards to coverage, siting, and 
other needs.
    (b) Matching Requirements; Federal Share.--
            (1) In general.--The Federal share of the cost of 
        any activity carried out using a grant under this 
        section may not exceed 80 percent of the eligible costs 
        of carrying out that activity, as determined by the 
        Assistant Secretary, in consultation with the First 
        Responder Network Authority.
            (2) Waiver.--The Assistant Secretary may waive, in 
        whole or in part, the requirements of paragraph (1) for 
        good cause shown if the Assistant Secretary determines 
        that such a waiver is in the public interest.
    (c) Programmatic Requirements.--Not later than 6 months 
after the date of enactment of this Act, the Assistant 
Secretary, in consultation with the First Responder Network 
Authority, shall establish requirements relating to the grant 
program to be carried out under this section, including the 
following:
            (1) Defining eligible costs for purposes of 
        subsection (b)(1).
            (2) Determining the scope of eligible activities 
        for grant funding under this section.
            (3) Prioritizing grants for activities that ensure 
        coverage in rural as well as urban areas.
    (d) Certification and Designation of Officer or 
Governmental Body.--In carrying out the grant program 
established under this section, the Assistant Secretary shall 
require each State to certify in its application for grant 
funds that the State has designated a single officer or 
governmental body to serve as the coordinator of implementation 
of the grant funds.
    (e) State Network.--
            (1) Notice.--Upon the completion of the request for 
        proposal process conducted by the First Responder 
        Network Authority for the construction, operation, 
        maintenance, and improvement of the nationwide public 
        safety broadband network, the First Responder Network 
        Authority shall provide to the Governor of each State, 
        or his designee--
                    (A) notice of the completion of the request 
                for proposal process;
                    (B) details of the proposed plan for 
                buildout of the nationwide, interoperable 
                broadband network in such State; and
                    (C) the funding level for the State as 
                determined by the NTIA.
            (2) State decision.--Not later than 90 days after 
        the date on which the Governor of a State receives 
        notice under paragraph (1), the Governor shall choose 
        whether to--
                    (A) participate in the deployment of the 
                nationwide, interoperable broadband network as 
                proposed by the First Responder Network 
                Authority; or
                    (B) conduct its own deployment of a radio 
                access network in such State.
            (3) Process.--
                    (A) In general.--Upon making a decision to 
                opt-out under paragraph (2)(B), the Governor 
                shall notify the First Responder Network 
                Authority, the NTIA, and the Commission of such 
                decision.
                    (B) State request for proposals.--Not later 
                than 180 days after the date on which a 
                Governor provides notice under subparagraph 
                (A), the Governor shall develop and complete 
                requests for proposals for the construction, 
                maintenance, and operation of the radio access 
                network within the State.
                    (C) Submission and approval of alternative 
                plan.--
                            (i) In general.--The State shall 
                        submit an alternative plan for the 
                        construction, maintenance, operation, 
                        and improvements of the radio access 
                        network within the State to the 
                        Commission, and such plan shall 
                        demonstrate--
                                    (I) that the State will be 
                                in compliance with the minimum 
                                technical interoperability 
                                requirements developed under 
                                section 6203; and
                                    (II) interoperability with 
                                the nationwide public safety 
                                broadband network.
                            (ii) Commission approval or 
                        disapproval.--Upon submission of a 
                        State plan under clause (i), the 
                        Commission shall either approve or 
                        disapprove the plan.
                            (iii) Approval.--If the Commission 
                        approves a plan under this 
                        subparagraph, the State--
                                    (I) may apply to the NTIA 
                                for a grant to construct the 
                                radio access network within the 
                                State that includes the showing 
                                described in subparagraph (D); 
                                and
                                    (II) shall apply to the 
                                NTIA to lease spectrum capacity 
                                from the First Responder 
                                Network Authority.
                            (iv) Disapproval.--If the 
                        Commission disapproves a plan under 
                        this subparagraph, the construction, 
                        maintenance, operation, and 
                        improvements of the network within the 
                        State shall proceed in accordance with 
                        the plan proposed by the First 
                        Responder Network Authority.
                    (D) Funding requirements.--In order to 
                obtain grant funds and spectrum capacity 
                leasing rights under subparagraph (C)(iii), a 
                State shall demonstrate--
                            (i) that the State has--
                                    (I) the technical 
                                capabilities to operate, and 
                                the funding to support, the 
                                State radio access network;
                                    (II) has the ability to 
                                maintain ongoing 
                                interoperability with the 
                                nationwide public safety 
                                broadband network; and
                                    (III) the ability to 
                                complete the project within 
                                specified comparable timelines 
                                specific to the State;
                            (ii) the cost-effectiveness of the 
                        State plan submitted under subparagraph 
                        (C)(i); and
                            (iii) comparable security, 
                        coverage, and quality of service to 
                        that of the nationwide public safety 
                        broadband network.
    (f) User Fees.--If a State chooses to build its own radio 
access network, the State shall pay any user fees associated 
with State use of elements of the core network.
    (g) Prohibition.--
            (1) In general.--A State that chooses to build its 
        own radio access network shall not provide commercial 
        service to consumers or offer wholesale leasing 
        capacity of the network within the State except 
        directly through public-private partnerships for 
        construction, maintenance, operation, and improvement 
        of the network within the State.
            (2) Rule of construction.--Nothing in this 
        subsection shall be construed to prohibit the State and 
        a secondary user from entering into a covered leasing 
        agreement. Any revenue gained by the State from such a 
        leasing agreement shall be used only for constructing, 
        maintaining, operating, or improving the radio access 
        network of the State.
    (h) Judicial Review.--
            (1) In general.--The United States District Court 
        for the District of Columbia shall have exclusive 
        jurisdiction to review a decision of the Commission 
        made under subsection (e)(3)(C)(iv).
            (2) Standard of review.--The court shall affirm the 
        decision of the Commission unless--
                    (A) the decision was procured by 
                corruption, fraud, or undue means;
                    (B) there was actual partiality or 
                corruption in the Commission; or
                    (C) the Commission was guilty of misconduct 
                in refusing to hear evidence pertinent and 
                material to the decision or of any other 
                misbehavior by which the rights of any party 
                have been prejudiced.

SEC. 6303. PUBLIC SAFETY WIRELESS COMMUNICATIONS RESEARCH AND 
                    DEVELOPMENT.

    (a) NIST Directed Research and Development Program.--From 
amounts made available from the Public Safety Trust Fund, the 
Director of NIST, in consultation with the Commission, the 
Secretary of Homeland Security, and the National Institute of 
Justice of the Department of Justice, as appropriate, shall 
conduct research and assist with the development of standards, 
technologies, and applications to advance wireless public 
safety communications.
    (b) Required Activities.--In carrying out the requirement 
under subsection (a), the Director of NIST, in consultation 
with the First Responder Network Authority and the public 
safety advisory committee established under section 6205(a), 
shall--
            (1) document public safety wireless communications 
        technical requirements;
            (2) accelerate the development of the capability 
        for communications between currently deployed public 
        safety narrowband systems and the nationwide public 
        safety broadband network;
            (3) establish a research plan, and direct research, 
        that addresses the wireless communications needs of 
        public safety entities beyond what can be provided by 
        the current generation of broadband technology;
            (4) accelerate the development of mission critical 
        voice, including device-to-device ``talkaround'' 
        capability over broadband networks, public safety 
        prioritization, authentication capabilities, and 
        standard application programing interfaces for the 
        nationwide public safety broadband network, if 
        necessary and practical;
            (5) accelerate the development of communications 
        technology and equipment that can facilitate the 
        eventual migration of public safety narrowband 
        communications to the nationwide public safety 
        broadband network; and
            (6) convene working groups of relevant government 
        and commercial parties to achieve the requirements in 
        paragraphs (1) through (5).

                 Subtitle D--Spectrum Auction Authority

SEC. 6401. DEADLINES FOR AUCTION OF CERTAIN SPECTRUM.

    (a) Clearing Certain Federal Spectrum.--
            (1) In general.--The President shall--
                    (A) not later than 3 years after the date 
                of the enactment of this Act, begin the process 
                of withdrawing or modifying the assignment to a 
                Federal Government station of the 
                electromagnetic spectrum described in paragraph 
                (2); and
                    (B) not later than 30 days after completing 
                the withdrawal or modification, notify the 
                Commission that the withdrawal or modification 
                is complete.
            (2) Spectrum described.--The electromagnetic 
        spectrum described in this paragraph is the 15 
        megahertz of spectrum between 1675 megahertz and 1710 
        megahertz identified under paragraph (3).
            (3) Identification by secretary of commerce.--Not 
        later than 1 year after the date of the enactment of 
        this Act, the Secretary of Commerce shall submit to the 
        President a report identifying 15 megahertz of spectrum 
        between 1675 megahertz and 1710 megahertz for 
        reallocation from Federal use to non-Federal use.
    (b) Reallocation and Auction.--
            (1) In general.--Notwithstanding paragraph (15)(A) 
        of section 309(j) of the Communications Act of 1934 (47 
        U.S.C. 309(j)), not later than 3 years after the date 
        of the enactment of this Act, the Commission shall, 
        except as provided in paragraph (4)--
                    (A) allocate the spectrum described in 
                paragraph (2) for commercial use; and
                    (B) through a system of competitive bidding 
                under such section, grant new initial licenses 
                for the use of such spectrum, subject to 
                flexible-use service rules.
            (2) Spectrum described.--The spectrum described in 
        this paragraph is the following:
                    (A) The frequencies between 1915 megahertz 
                and 1920 megahertz.
                    (B) The frequencies between 1995 megahertz 
                and 2000 megahertz.
                    (C) The frequencies described in subsection 
                (a)(2).
                    (D) The frequencies between 2155 megahertz 
                and 2180 megahertz.
                    (E) Fifteen megahertz of contiguous 
                spectrum to be identified by the Commission.
            (3) Proceeds to cover 110 percent of federal 
        relocation or sharing costs.--Nothing in paragraph (1) 
        shall be construed to relieve the Commission from the 
        requirements of section 309(j)(16)(B) of the 
        Communications Act of 1934 (47 U.S.C. 309(j)(16)(B)).
            (4) Determination by commission.--If the Commission 
        determines that the band of frequencies described in 
        paragraph (2)(A) or the band of frequencies described 
        in paragraph (2)(B) cannot be used without causing 
        harmful interference to commercial mobile service 
        licensees in the frequencies between 1930 megahertz and 
        1995 megahertz, the Commission may not--
                    (A) allocate such band for commercial use 
                under paragraph (1)(A); or
                    (B) grant licenses under paragraph (1)(B) 
                for the use of such band.
    (c) Auction Proceeds.--Section 309(j)(8) of the 
Communications Act of 1934 (47 U.S.C. 309(j)(8)) is amended--
            (1) in subparagraph (A), by striking ``(D), and 
        (E),'' and inserting ``(D), (E), (F), and (G),'';
            (2) in subparagraph (C)(i), by striking 
        ``subparagraph (E)(ii)'' and inserting ``subparagraphs 
        (D)(ii), (E)(ii), (F), and (G)'';
            (3) in subparagraph (D)--
                    (A) by striking the heading and inserting 
                ``Proceeds from reallocated federal spectrum.--
                '';
                    (B) by striking ``Cash'' and inserting the 
                following:
                            ``(i) In general.--Except as 
                        provided in clause (ii), cash''; and
                    (C) by adding at the end the following:
                            ``(ii) Certain other proceeds.--
                        Notwithstanding subparagraph (A) and 
                        except as provided in subparagraph (B), 
                        in the case of proceeds (including 
                        deposits and upfront payments from 
                        successful bidders) attributable to the 
                        auction of eligible frequencies 
                        described in paragraph (2) of section 
                        113(g) of the National 
                        Telecommunications and Information 
                        Administration Organization Act that 
                        are required to be auctioned by section 
                        6401(b)(1)(B) of the Middle Class Tax 
                        Relief and Job Creation Act of 2012, 
                        such portion of such proceeds as is 
                        necessary to cover the relocation or 
                        sharing costs (as defined in paragraph 
                        (3) of such section 113(g)) of Federal 
                        entities relocated from such eligible 
                        frequencies shall be deposited in the 
                        Spectrum Relocation Fund. The remainder 
                        of such proceeds shall be deposited in 
                        the Public Safety Trust Fund 
                        established by section 6413(a)(1) of 
                        the Middle Class Tax Relief and Job 
                        Creation Act of 2012.''; and
            (4) by adding at the end the following:
                    ``(F) Certain proceeds designated for 
                public safety trust fund.--Notwithstanding 
                subparagraph (A) and except as provided in 
                subparagraphs (B) and (D)(ii), the proceeds 
                (including deposits and upfront payments from 
                successful bidders) from the use of a system of 
                competitive bidding under this subsection 
                pursuant to section 6401(b)(1)(B) of the Middle 
                Class Tax Relief and Job Creation Act of 2012 
                shall be deposited in the Public Safety Trust 
                Fund established by section 6413(a)(1) of such 
                Act.''.

SEC. 6402. GENERAL AUTHORITY FOR INCENTIVE AUCTIONS.

    Section 309(j)(8) of the Communications Act of 1934, as 
amended by section 6401(c), is further amended by adding at the 
end the following:
                    ``(G) Incentive auctions.--
                            ``(i) In general.--Notwithstanding 
                        subparagraph (A) and except as provided 
                        in subparagraph (B), the Commission may 
                        encourage a licensee to relinquish 
                        voluntarily some or all of its licensed 
                        spectrum usage rights in order to 
                        permit the assignment of new initial 
                        licenses subject to flexible-use 
                        service rules by sharing with such 
                        licensee a portion, based on the value 
                        of the relinquished rights as 
                        determined in the reverse auction 
                        required by clause (ii)(I), of the 
                        proceeds (including deposits and 
                        upfront payments from successful 
                        bidders) from the use of a competitive 
                        bidding system under this subsection.
                            ``(ii) Limitations.--The Commission 
                        may not enter into an agreement for a 
                        licensee to relinquish spectrum usage 
                        rights in exchange for a share of 
                        auction proceeds under clause (i) 
                        unless--
                                    ``(I) the Commission 
                                conducts a reverse auction to 
                                determine the amount of 
                                compensation that licensees 
                                would accept in return for 
                                voluntarily relinquishing 
                                spectrum usage rights; and
                                    ``(II) at least two 
                                competing licensees participate 
                                in the reverse auction.
                            ``(iii) Treatment of revenues.--
                        Notwithstanding subparagraph (A) and 
                        except as provided in subparagraph (B), 
                        the proceeds (including deposits and 
                        upfront payments from successful 
                        bidders) from any auction, prior to the 
                        end of fiscal year 2022, of spectrum 
                        usage rights made available under 
                        clause (i) that are not shared with 
                        licensees under such clause shall be 
                        deposited as follows:
                                    ``(I) $1,750,000,000 of the 
                                proceeds from the incentive 
                                auction of broadcast television 
                                spectrum required by section 
                                6403 of the Middle Class Tax 
                                Relief and Job Creation Act of 
                                2012 shall be deposited in the 
                                TV Broadcaster Relocation Fund 
                                established by subsection 
                                (d)(1) of such section.
                                    ``(II) All other proceeds 
                                shall be deposited--
                                            ``(aa) prior to the 
                                        end of fiscal year 
                                        2022, in the Public 
                                        Safety Trust Fund 
                                        established by section 
                                        6413(a)(1) of such Act; 
                                        and
                                            ``(bb) after the 
                                        end of fiscal year 
                                        2022, in the general 
                                        fund of the Treasury, 
                                        where such proceeds 
                                        shall be dedicated for 
                                        the sole purpose of 
                                        deficit reduction.
                            ``(iv) Congressional 
                        notification.--At least 3 months before 
                        any incentive auction conducted under 
                        this subparagraph, the Chairman of the 
                        Commission, in consultation with the 
                        Director of the Office of Management 
                        and Budget, shall notify the 
                        appropriate committees of Congress of 
                        the methodology for calculating the 
                        amounts that will be shared with 
                        licensees under clause (i).
                            ``(v) Definition.--In this 
                        subparagraph, the term `appropriate 
                        committees of Congress' means--
                                    ``(I) the Committee on 
                                Commerce, Science, and 
                                Transportation of the Senate;
                                    ``(II) the Committee on 
                                Appropriations of the Senate;
                                    ``(III) the Committee on 
                                Energy and Commerce of the 
                                House of Representatives; and
                                    ``(IV) the Committee on 
                                Appropriations of the House of 
                                Representatives.''.

SEC. 6403. SPECIAL REQUIREMENTS FOR INCENTIVE AUCTION OF BROADCAST TV 
                    SPECTRUM.

    (a) Reverse Auction To Identify Incentive Amount.--
            (1) In general.--The Commission shall conduct a 
        reverse auction to determine the amount of compensation 
        that each broadcast television licensee would accept in 
        return for voluntarily relinquishing some or all of its 
        broadcast television spectrum usage rights in order to 
        make spectrum available for assignment through a system 
        of competitive bidding under subparagraph (G) of 
        section 309(j)(8) of the Communications Act of 1934, as 
        added by section 6402.
            (2) Eligible relinquishments.--A relinquishment of 
        usage rights for purposes of paragraph (1) shall 
        include the following:
                    (A) Relinquishing all usage rights with 
                respect to a particular television channel 
                without receiving in return any usage rights 
                with respect to another television channel.
                    (B) Relinquishing all usage rights with 
                respect to an ultra high frequency television 
                channel in return for receiving usage rights 
                with respect to a very high frequency 
                television channel.
                    (C) Relinquishing usage rights in order to 
                share a television channel with another 
                licensee.
            (3) Confidentiality.--The Commission shall take all 
        reasonable steps necessary to protect the 
        confidentiality of Commission-held data of a licensee 
        participating in the reverse auction under paragraph 
        (1), including withholding the identity of such 
        licensee until the reassignments and reallocations (if 
        any) under subsection (b)(1)(B) become effective, as 
        described in subsection (f)(2).
            (4) Protection of carriage rights of licensees 
        sharing a channel.--A broadcast television station that 
        voluntarily relinquishes spectrum usage rights under 
        this subsection in order to share a television channel 
        and that possessed carriage rights under section 338, 
        614, or 615 of the Communications Act of 1934 (47 
        U.S.C. 338; 534; 535) on November 30, 2010, shall have, 
        at its shared location, the carriage rights under such 
        section that would apply to such station at such 
        location if it were not sharing a channel.
    (b) Reorganization of Broadcast TV Spectrum.--
            (1) In general.--For purposes of making available 
        spectrum to carry out the forward auction under 
        subsection (c)(1), the Commission--
                    (A) shall evaluate the broadcast television 
                spectrum (including spectrum made available 
                through the reverse auction under subsection 
                (a)(1)); and
                    (B) may, subject to international 
                coordination along the border with Mexico and 
                Canada--
                            (i) make such reassignments of 
                        television channels as the Commission 
                        considers appropriate; and
                            (ii) reallocate such portions of 
                        such spectrum as the Commission 
                        determines are available for 
                        reallocation.
            (2) Factors for consideration.--In making any 
        reassignments or reallocations under paragraph (1)(B), 
        the Commission shall make all reasonable efforts to 
        preserve, as of the date of the enactment of this Act, 
        the coverage area and population served of each 
        broadcast television licensee, as determined using the 
        methodology described in OET Bulletin 69 of the Office 
        of Engineering and Technology of the Commission.
            (3) No involuntary relocation from uhf to vhf.--In 
        making any reassignments under paragraph (1)(B)(i), the 
        Commission may not involuntarily reassign a broadcast 
        television licensee--
                    (A) from an ultra high frequency television 
                channel to a very high frequency television 
                channel; or
                    (B) from a television channel between the 
                frequencies from 174 megahertz to 216 megahertz 
                to a television channel between the frequencies 
                from 54 megahertz to 88 megahertz.
            (4) Payment of relocation costs.--
                    (A) In general.--Except as provided in 
                subparagraph (B), from amounts made available 
                under subsection (d)(2), the Commission shall 
                reimburse costs reasonably incurred by--
                            (i) a broadcast television licensee 
                        that was reassigned under paragraph 
                        (1)(B)(i) from one ultra high frequency 
                        television channel to a different ultra 
                        high frequency television channel, from 
                        one very high frequency television 
                        channel to a different very high 
                        frequency television channel, or, in 
                        accordance with subsection (g)(1)(B), 
                        from a very high frequency television 
                        channel to an ultra high frequency 
                        television channel, in order for the 
                        licensee to relocate its television 
                        service from one channel to the other;
                            (ii) a multichannel video 
                        programming distributor in order to 
                        continue to carry the signal of a 
                        broadcast television licensee that--
                                    (I) is described in clause 
                                (i);
                                    (II) voluntarily 
                                relinquishes spectrum usage 
                                rights under subsection (a) 
                                with respect to an ultra high 
                                frequency television channel in 
                                return for receiving usage 
                                rights with respect to a very 
                                high frequency television 
                                channel; or
                                    (III) voluntarily 
                                relinquishes spectrum usage 
                                rights under subsection (a) to 
                                share a television channel with 
                                another licensee; or
                            (iii) a channel 37 incumbent user, 
                        in order to relocate to other suitable 
                        spectrum, provided that all such users 
                        can be relocated and that the total 
                        relocation costs of such users do not 
                        exceed $300,000,000. For the purpose of 
                        this section, the spectrum made 
                        available through relocation of channel 
                        37 incumbent users shall be deemed as 
                        spectrum reclaimed through a reverse 
                        auction under section 6403(a).
                    (B) Regulatory relief.--In lieu of 
                reimbursement for relocation costs under 
                subparagraph (A), a broadcast television 
                licensee may accept, and the Commission may 
                grant as it considers appropriate, a waiver of 
                the service rules of the Commission to permit 
                the licensee, subject to interference 
                protections, to make flexible use of the 
                spectrum assigned to the licensee to provide 
                services other than broadcast television 
                services. Such waiver shall only remain in 
                effect while the licensee provides at least 1 
                broadcast television program stream on such 
                spectrum at no charge to the public.
                    (C) Limitation.--The Commission may not 
                make reimbursements under subparagraph (A) for 
                lost revenues.
                    (D) Deadline.--The Commission shall make 
                all reimbursements required by subparagraph (A) 
                not later than the date that is 3 years after 
                the completion of the forward auction under 
                subsection (c)(1).
            (5) Low-power television usage rights.--Nothing in 
        this subsection shall be construed to alter the 
        spectrum usage rights of low-power television stations.
    (c) Forward Auction.--
            (1) Auction required.--The Commission shall conduct 
        a forward auction in which--
                    (A) the Commission assigns licenses for the 
                use of the spectrum that the Commission 
                reallocates under subsection (b)(1)(B)(ii); and
                    (B) the amount of the proceeds that the 
                Commission shares under clause (i) of section 
                309(j)(8)(G) of the Communications Act of 1934 
                with each licensee whose bid the Commission 
                accepts in the reverse auction under subsection 
                (a)(1) is not less than the amount of such bid.
            (2) Minimum proceeds.--
                    (A) In general.--If the amount of the 
                proceeds from the forward auction under 
                paragraph (1) is not greater than the sum 
                described in subparagraph (B), no licenses 
                shall be assigned through such forward auction, 
                no reassignments or reallocations under 
                subsection (b)(1)(B) shall become effective, 
                and the Commission may not revoke any spectrum 
                usage rights by reason of a bid that the 
                Commission accepts in the reverse auction under 
                subsection (a)(1).
                    (B) Sum described.--The sum described in 
                this subparagraph is the sum of--
                            (i) the total amount of 
                        compensation that the Commission must 
                        pay successful bidders in the reverse 
                        auction under subsection (a)(1);
                            (ii) the costs of conducting such 
                        forward auction that the salaries and 
                        expenses account of the Commission is 
                        required to retain under section 
                        309(j)(8)(B) of the Communications Act 
                        of 1934 (47 U.S.C. 309(j)(8)(B)); and
                            (iii) the estimated costs for which 
                        the Commission is required to make 
                        reimbursements under subsection 
                        (b)(4)(A).
                    (C) Administrative costs.--The amount of 
                the proceeds from the forward auction under 
                paragraph (1) that the salaries and expenses 
                account of the Commission is required to retain 
                under section 309(j)(8)(B) of the 
                Communications Act of 1934 (47 U.S.C. 
                309(j)(8)(B)) shall be sufficient to cover the 
                costs incurred by the Commission in conducting 
                the reverse auction under subsection (a)(1), 
                conducting the evaluation of the broadcast 
                television spectrum under subparagraph (A) of 
                subsection (b)(1), and making any reassignments 
                or reallocations under subparagraph (B) of such 
                subsection, in addition to the costs incurred 
                by the Commission in conducting such forward 
                auction.
            (3) Factor for consideration.--In conducting the 
        forward auction under paragraph (1), the Commission 
        shall consider assigning licenses that cover geographic 
        areas of a variety of different sizes.
    (d) TV Broadcaster Relocation Fund.--
            (1) Establishment.--There is established in the 
        Treasury of the United States a fund to be known as the 
        TV Broadcaster Relocation Fund.
            (2) Payment of relocation costs.--Any amounts 
        borrowed under paragraph (3)(A) and any amounts in the 
        TV Broadcaster Relocation Fund that are not necessary 
        for reimbursement of the general fund of the Treasury 
        for such borrowed amounts shall be available to the 
        Commission to make the payments required by subsection 
        (b)(4)(A).
            (3) Borrowing authority.--
                    (A) In general.--Beginning on the date when 
                any reassignments or reallocations under 
                subsection (b)(1)(B) become effective, as 
                provided in subsection (f)(2), and ending when 
                $1,000,000,000 has been deposited in the TV 
                Broadcaster Relocation Fund, the Commission may 
                borrow from the Treasury of the United States 
                an amount not to exceed $1,000,000,000 to use 
                toward the payments required by subsection 
                (b)(4)(A).
                    (B) Reimbursement.--The Commission shall 
                reimburse the general fund of the Treasury, 
                without interest, for any amounts borrowed 
                under subparagraph (A) as funds are deposited 
                into the TV Broadcaster Relocation Fund.
            (4) Transfer of unused funds.--If any amounts 
        remain in the TV Broadcaster Relocation Fund after the 
        date that is 3 years after the completion of the 
        forward auction under subsection (c)(1), the Secretary 
        of the Treasury shall--
                    (A) prior to the end of fiscal year 2022, 
                transfer such amounts to the Public Safety 
                Trust Fund established by section 6413(a)(1); 
                and
                    (B) after the end of fiscal year 2022, 
                transfer such amounts to the general fund of 
                the Treasury, where such amounts shall be 
                dedicated for the sole purpose of deficit 
                reduction.
    (e) Numerical Limitation on Auctions and Reorganization.--
The Commission may not complete more than one reverse auction 
under subsection (a)(1) or more than one reorganization of the 
broadcast television spectrum under subsection (b).
    (f) Timing.--
            (1) Contemporaneous auctions and reorganization 
        permitted.--The Commission may conduct the reverse 
        auction under subsection (a)(1), any reassignments or 
        reallocations under subsection (b)(1)(B), and the 
        forward auction under subsection (c)(1) on a 
        contemporaneous basis.
            (2) Effectiveness of reassignments and 
        reallocations.--Notwithstanding paragraph (1), no 
        reassignments or reallocations under subsection 
        (b)(1)(B) shall become effective until the completion 
        of the reverse auction under subsection (a)(1) and the 
        forward auction under subsection (c)(1), and, to the 
        extent practicable, all such reassignments and 
        reallocations shall become effective simultaneously.
            (3) Deadline.--The Commission may not conduct the 
        reverse auction under subsection (a)(1) or the forward 
        auction under subsection (c)(1) after the end of fiscal 
        year 2022.
            (4) Limit on discretion regarding auction timing.--
        Section 309(j)(15)(A) of the Communications Act of 1934 
        (47 U.S.C. 309(j)(15)(A)) shall not apply in the case 
        of an auction conducted under this section.
    (g) Limitation on Reorganization Authority.--
            (1) In general.--During the period described in 
        paragraph (2), the Commission may not--
                    (A) involuntarily modify the spectrum usage 
                rights of a broadcast television licensee or 
                reassign such a licensee to another television 
                channel except--
                            (i) in accordance with this 
                        section; or
                            (ii) in the case of a violation by 
                        such licensee of the terms of its 
                        license or a specific provision of a 
                        statute administered by the Commission, 
                        or a regulation of the Commission 
                        promulgated under any such provision; 
                        or
                    (B) reassign a broadcast television 
                licensee from a very high frequency television 
                channel to an ultra high frequency television 
                channel, unless--
                            (i) such a reassignment will not 
                        decrease the total amount of ultra high 
                        frequency spectrum made available for 
                        reallocation under this section; or
                            (ii) a request from such licensee 
                        for the reassignment was pending at the 
                        Commission on May 31, 2011.
            (2) Period described.--The period described in this 
        paragraph is the period beginning on the date of the 
        enactment of this Act and ending on the earliest of--
                    (A) the first date when the reverse auction 
                under subsection (a)(1), the reassignments and 
                reallocations (if any) under subsection 
                (b)(1)(B), and the forward auction under 
                subsection (c)(1) have been completed;
                    (B) the date of a determination by the 
                Commission that the amount of the proceeds from 
                the forward auction under subsection (c)(1) is 
                not greater than the sum described in 
                subsection (c)(2)(B); or
                    (C) September 30, 2022.
    (h) Protest Right Inapplicable.--The right of a licensee to 
protest a proposed order of modification of its license under 
section 316 of the Communications Act of 1934 (47 U.S.C. 316) 
shall not apply in the case of a modification made under this 
section.
    (i) Commission Authority.--Nothing in subsection (b) shall 
be construed to--
            (1) expand or contract the authority of the 
        Commission, except as otherwise expressly provided; or
            (2) prevent the implementation of the Commission's 
        ``White Spaces'' Second Report and Order and Memorandum 
        Opinion and Order (FCC 08-260, adopted November 4, 
        2008) in the spectrum that remains allocated for 
        broadcast television use after the reorganization 
        required by such subsection.

SEC. 6404. CERTAIN CONDITIONS ON AUCTION PARTICIPATION PROHIBITED.

    Section 309(j) of the Communications Act of 1934 (47 U.S.C. 
309(j)) is amended by adding at the end the following new 
paragraph:
            ``(17) Certain conditions on auction participation 
        prohibited.--
                    ``(A) In general.--Notwithstanding any 
                other provision of law, the Commission may not 
                prevent a person from participating in a system 
                of competitive bidding under this subsection if 
                such person--
                            ``(i) complies with all the auction 
                        procedures and other requirements to 
                        protect the auction process established 
                        by the Commission; and
                            ``(ii) either--
                                    ``(I) meets the technical, 
                                financial, character, and 
                                citizenship qualifications that 
                                the Commission may require 
                                under section 303(l)(1), 
                                308(b), or 310 to hold a 
                                license; or
                                    ``(II) would meet such 
                                license qualifications by means 
                                approved by the Commission 
                                prior to the grant of the 
                                license.
                    ``(B) Clarification of authority.--Nothing 
                in subparagraph (A) affects any authority the 
                Commission has to adopt and enforce rules of 
                general applicability, including rules 
                concerning spectrum aggregation that promote 
                competition.''.

SEC. 6405. EXTENSION OF AUCTION AUTHORITY.

    Section 309(j)(11) of the Communications Act of 1934 (47 
U.S.C. 309(j)(11)) is amended by striking ``2012'' and 
inserting ``2022''.

SEC. 6406. UNLICENSED USE IN THE 5 GHZ BAND.

    (a) Modification of Commission Regulations To Allow Certain 
Unlicensed Use.--
            (1) In general.--Subject to paragraph (2), not 
        later than 1 year after the date of the enactment of 
        this Act, the Commission shall begin a proceeding to 
        modify part 15 of title 47, Code of Federal 
        Regulations, to allow unlicensed U-NII devices to 
        operate in the 5350-5470 MHz band.
            (2) Required determinations.--The Commission may 
        make the modification described in paragraph (1) only 
        if the Commission, in consultation with the Assistant 
        Secretary, determines that--
                    (A) licensed users will be protected by 
                technical solutions, including use of existing, 
                modified, or new spectrum-sharing technologies 
                and solutions, such as dynamic frequency 
                selection; and
                    (B) the primary mission of Federal spectrum 
                users in the 5350-5470 MHz band will not be 
                compromised by the introduction of unlicensed 
                devices.
    (b) Study by NTIA.--
            (1) In general.--The Assistant Secretary, in 
        consultation with the Department of Defense and other 
        impacted agencies, shall conduct a study evaluating 
        known and proposed spectrum-sharing technologies and 
        the risk to Federal users if unlicensed U-NII devices 
        were allowed to operate in the 5350-5470 MHz band and 
        in the 5850-5925 MHz band.
            (2) Submission.--The Assistant Secretary shall 
        submit to the Commission and the Committee on Energy 
        and Commerce of the House of Representatives and the 
        Committee on Commerce, Science, and Transportation of 
        the Senate--
                    (A) not later than 8 months after the date 
                of the enactment of this Act, a report on the 
                portion of the study required by paragraph (1) 
                with respect to the 5350-5470 MHz band; and
                    (B) not later than 18 months after the date 
                of the enactment of this Act, a report on the 
                portion of the study required by paragraph (1) 
                with respect to the 5850-5925 MHz band.
    (c) Definitions.--In this section:
            (1) 5350-5470 mhz band.--The term ``5350-5470 MHz 
        band'' means the portion of the electromagnetic 
        spectrum between the frequencies from 5350 megahertz to 
        5470 megahertz.
            (2) 5850-5925 mhz band.--The term ``5850-5925 MHz 
        band'' means the portion of the electromagnetic 
        spectrum between the frequencies from 5850 megahertz to 
        5925 megahertz.

SEC. 6407. GUARD BANDS AND UNLICENSED USE.

    (a) In General.--Nothing in subparagraph (G) of section 
309(j)(8) of the Communications Act of 1934, as added by 
section 6402, or in section 6403 shall be construed to prevent 
the Commission from using relinquished or other spectrum to 
implement band plans with guard bands.
    (b) Size of Guard Bands.--Such guard bands shall be no 
larger than is technically reasonable to prevent harmful 
interference between licensed services outside the guard bands.
    (c) Unlicensed Use in Guard Bands.--The Commission may 
permit the use of such guard bands for unlicensed use.
    (d) Database.--Unlicensed use shall rely on a database or 
subsequent methodology as determined by the Commission.
    (e) Protections Against Harmful Interference.--The 
Commission may not permit any use of a guard band that the 
Commission determines would cause harmful interference to 
licensed services.

SEC. 6408. STUDY ON RECEIVER PERFORMANCE AND SPECTRUM EFFICIENCY.

    (a) In General.--The Comptroller General of the United 
States shall conduct a study to consider efforts to ensure that 
each transmission system is designed and operated so that 
reasonable use of adjacent spectrum does not excessively impair 
the functioning of such system.
    (b) Required Considerations.--In conducting the study 
required by subsection (a), the Comptroller General shall 
consider--
            (1) the value of--
                    (A) improving receiver performance as it 
                relates to increasing spectral efficiency;
                    (B) improving the operation of services 
                that are located in adjacent spectrum; and
                    (C) narrowing the guard bands between 
                adjacent spectrum use;
            (2) the role of manufacturers, commercial 
        licensees, and government users with respect to their 
        transmission systems and the use of adjacent spectrum;
            (3) the feasibility of industry self-compliance 
        with respect to the design and operational requirements 
        of transmission systems and the reasonable use of 
        adjacent spectrum; and
            (4) the value of action by the Commission and the 
        Assistant Secretary to establish, by rule, technical 
        requirements or standards for non-Federal and Federal 
        use, respectively, with respect to the reasonable use 
        of portions of the radio spectrum that are adjacent to 
        each other.
    (c) Report.--Not later than 1 year after the date of the 
enactment of this Act, the Comptroller General shall submit a 
report on the results of the study required by subsection (a) 
to the Committee on Energy and Commerce of the House of 
Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate.
    (d) Transmission System Defined.--In this section, the term 
``transmission system'' means any telecommunications, 
broadcast, satellite, commercial mobile service, or other 
communications system that employs radio spectrum.

SEC. 6409. WIRELESS FACILITIES DEPLOYMENT.

    (a) Facility Modifications.--
            (1) In general.--Notwithstanding section 704 of the 
        Telecommunications Act of 1996 (Public Law 104-104) or 
        any other provision of law, a State or local government 
        may not deny, and shall approve, any eligible 
        facilities request for a modification of an existing 
        wireless tower or base station that does not 
        substantially change the physical dimensions of such 
        tower or base station.
            (2) Eligible facilities request.--For purposes of 
        this subsection, the term ``eligible facilities 
        request'' means any request for modification of an 
        existing wireless tower or base station that involves--
                    (A) collocation of new transmission 
                equipment;
                    (B) removal of transmission equipment; or
                    (C) replacement of transmission equipment.
            (3) Applicability of environmental laws.--Nothing 
        in paragraph (1) shall be construed to relieve the 
        Commission from the requirements of the National 
        Historic Preservation Act or the National Environmental 
        Policy Act of 1969.
    (b) Federal Easements and Rights-of-way.--
            (1) Grant.--If an executive agency, a State, a 
        political subdivision or agency of a State, or a 
        person, firm, or organization applies for the grant of 
        an easement or right-of-way to, in, over, or on a 
        building or other property owned by the Federal 
        Government for the right to install, construct, and 
        maintain wireless service antenna structures and 
        equipment and backhaul transmission equipment, the 
        executive agency having control of the building or 
        other property may grant to the applicant, on behalf of 
        the Federal Government, an easement or right-of-way to 
        perform such installation, construction, and 
        maintenance.
            (2) Application.--The Administrator of General 
        Services shall develop a common form for applications 
        for easements and rights-of-way under paragraph (1) for 
        all executive agencies that shall be used by applicants 
        with respect to the buildings or other property of each 
        such agency.
            (3) Fee.--
                    (A) In general.--Notwithstanding any other 
                provision of law, the Administrator of General 
                Services shall establish a fee for the grant of 
                an easement or right-of-way pursuant to 
                paragraph (1) that is based on direct cost 
                recovery.
                    (B) Exceptions.--The Administrator of 
                General Services may establish exceptions to 
                the fee amount required under subparagraph 
                (A)--
                            (i) in consideration of the public 
                        benefit provided by a grant of an 
                        easement or right-of-way; and
                            (ii) in the interest of expanding 
                        wireless and broadband coverage.
            (4) Use of fees collected.--Any fee amounts 
        collected by an executive agency pursuant to paragraph 
        (3) may be made available, as provided in 
        appropriations Acts, to such agency to cover the costs 
        of granting the easement or right-of-way.
    (c) Master Contracts for Wireless Facility Sitings.--
            (1) In general.--Notwithstanding section 704 of the 
        Telecommunications Act of 1996 or any other provision 
        of law, and not later than 60 days after the date of 
        the enactment of this Act, the Administrator of General 
        Services shall--
                    (A) develop 1 or more master contracts that 
                shall govern the placement of wireless service 
                antenna structures on buildings and other 
                property owned by the Federal Government; and
                    (B) in developing the master contract or 
                contracts, standardize the treatment of the 
                placement of wireless service antenna 
                structures on building rooftops or facades, the 
                placement of wireless service antenna equipment 
                on rooftops or inside buildings, the technology 
                used in connection with wireless service 
                antenna structures or equipment placed on 
                Federal buildings and other property, and any 
                other key issues the Administrator of General 
                Services considers appropriate.
            (2) Applicability.--The master contract or 
        contracts developed by the Administrator of General 
        Services under paragraph (1) shall apply to all 
        publicly accessible buildings and other property owned 
        by the Federal Government, unless the Administrator of 
        General Services decides that issues with respect to 
        the siting of a wireless service antenna structure on a 
        specific building or other property warrant nonstandard 
        treatment of such building or other property.
            (3) Application.--The Administrator of General 
        Services shall develop a common form or set of forms 
        for wireless service antenna structure siting 
        applications under this subsection for all executive 
        agencies that shall be used by applicants with respect 
        to the buildings and other property of each such 
        agency.
    (d) Executive Agency Defined.--In this section, the term 
``executive agency'' has the meaning given such term in section 
102 of title 40, United States Code.

SEC. 6410. FUNCTIONAL RESPONSIBILITY OF NTIA TO ENSURE EFFICIENT USE OF 
                    SPECTRUM.

    Section 103(b)(2) of the National Telecommunications and 
Information Administration Organization Act (47 U.S.C. 
902(b)(2)) is amended by adding at the end the following:
                    ``(U) The responsibility to promote the 
                best possible and most efficient use of 
                electromagnetic spectrum resources across the 
                Federal Government, subject to and consistent 
                with the needs and missions of Federal 
                agencies.''.

SEC. 6411. SYSTEM CERTIFICATION.

    Not later than 6 months after the date of the enactment of 
this Act, the Director of the Office of Management and Budget 
shall update and revise section 33.4 of OMB Circular A-11 to 
reflect the recommendations regarding such Circular made in the 
Commerce Spectrum Management Advisory Committee Incentive 
Subcommittee report, adopted January 11, 2011.

SEC. 6412. DEPLOYMENT OF 11 GHZ, 18 GHZ, AND 23 GHZ MICROWAVE BANDS.

    (a) FCC Report on Rejection Rate.--Not later than 9 months 
after the date of the enactment of this Act, the Commission 
shall submit to the Committee on Energy and Commerce of the 
House of Representatives and the Committee on Commerce, 
Science, and Transportation of the Senate a report on the 
rejection rate for the spectrum described in subsection (c).
    (b) GAO Study on Deployment.--
            (1) In general.--The Comptroller General of the 
        United States shall conduct a study to assess whether 
        the spectrum described in subsection (c) is being 
        deployed in such a manner that, in areas with high 
        demand for common carrier licenses for the use of such 
        spectrum, market forces--
                    (A) provide adequate incentive for the 
                efficient use of such spectrum; and
                    (B) ensure that the Federal Government 
                receives maximum revenue for such spectrum 
                through competitive bidding under section 
                309(j) of the Communications Act of 1934 (47 
                U.S.C. 309(j)).
            (2) Factors for consideration.--In conducting the 
        study required by paragraph (1), the Comptroller 
        General shall take into consideration--
                    (A) spectrum that is adjacent to the 
                spectrum described in subsection (c) and that 
                was assigned through competitive bidding under 
                section 309(j) of the Communications Act of 
                1934; and
                    (B) the rejection rate for the spectrum 
                described in subsection (c), current as of the 
                time of the assessment and as projected for the 
                future, in markets in which there is a high 
                demand for common carrier licenses for the use 
                of such spectrum.
            (3) Report.--Not later than 9 months after the date 
        of the enactment of this Act, the Comptroller General 
        shall submit a report on the study required by 
        paragraph (1) to--
                    (A) the Commission; and
                    (B) the Committee on Energy and Commerce of 
                the House of Representatives and the Committee 
                on Commerce, Science, and Transportation of the 
                Senate.
    (c) Spectrum Described.--The spectrum described in this 
subsection is the portions of the electromagnetic spectrum 
between the frequencies from 10,700 megahertz to 11,700 
megahertz, from 17,700 megahertz to 19,700 megahertz, and from 
21,200 megahertz to 23,600 megahertz.
    (d) Rejection Rate Defined.--In this section, the term 
``rejection rate'' means the number and percent of applications 
(whether made to the Commission or to a third-party 
coordinator) for common carrier use of spectrum that were not 
granted because of lack of availability of such spectrum or 
interference concerns of existing licensees.
    (e) No Additional Funds Authorized.--Funds necessary to 
carry out this section shall be derived from funds otherwise 
authorized to be appropriated.

SEC. 6413. PUBLIC SAFETY TRUST FUND.

    (a) Establishment of Public Safety Trust Fund.--
            (1) In general.--There is established in the 
        Treasury of the United States a trust fund to be known 
        as the Public Safety Trust Fund.
            (2) Availability.--Amounts deposited in the Public 
        Safety Trust Fund shall remain available through fiscal 
        year 2022. Any amounts remaining in the Fund after the 
        end of such fiscal year shall be deposited in the 
        general fund of the Treasury, where such amounts shall 
        be dedicated for the sole purpose of deficit reduction.
    (b) Use of Fund.--As amounts are deposited in the Public 
Safety Trust Fund, such amounts shall be used to make the 
following deposits or payments in the following order of 
priority:
            (1) Repayment of amount borrowed for first 
        responder network authority.--An amount not to exceed 
        $2,000,000,000 shall be available to the NTIA to 
        reimburse the general fund of the Treasury for any 
        amounts borrowed under section 6207.
            (2) State and local implementation fund.--
        $135,000,000 shall be deposited in the State and Local 
        Implementation Fund established by section 6301.
            (3) Buildout by first responder network 
        authority.--$7,000,000,000, reduced by the amount 
        borrowed under section 6207, shall be deposited in the 
        Network Construction Fund established by section 6206.
            (4) Public safety research.--$100,000,000 shall be 
        available to the Director of NIST to carry out section 
        6303.
            (5) Deficit reduction.--$20,400,000,000 shall be 
        deposited in the general fund of the Treasury, where 
        such amount shall be dedicated for the sole purpose of 
        deficit reduction.
            (6) 9-1-1, e9-1-1, and next generation 9-1-1 
        implementation grants.--$115,000,000 shall be available 
        to the Assistant Secretary and the Administrator of the 
        National Highway Traffic Safety Administration to carry 
        out the grant program under section 158 of the National 
        Telecommunications and Information Administration 
        Organization Act, as amended by section 6503 of this 
        title.
            (7) Additional public safety research.--
        $200,000,000 shall be available to the Director of NIST 
        to carry out section 6303.
            (8) Additional deficit reduction.--Any remaining 
        amounts deposited in the Public Safety Trust Fund shall 
        be deposited in the general fund of the Treasury, where 
        such amounts shall be dedicated for the sole purpose of 
        deficit reduction.
    (c) Investment.--Amounts in the Public Safety Trust Fund 
shall be invested in accordance with section 9702 of title 31, 
United States Code, and any interest on, and proceeds from, any 
such investment shall be credited to, and become a part of, the 
Fund.

SEC. 6414. STUDY ON EMERGENCY COMMUNICATIONS BY AMATEUR RADIO AND 
                    IMPEDIMENTS TO AMATEUR RADIO COMMUNICATIONS.

    (a) In General.--Not later than 180 days after the date of 
the enactment of this Act, the Commission, in consultation with 
the Office of Emergency Communications in the Department of 
Homeland Security, shall--
            (1) complete a study on the uses and capabilities 
        of amateur radio service communications in emergencies 
        and disaster relief; and
            (2) submit to the Committee on Energy and Commerce 
        of the House of Representatives and the Committee on 
        Commerce, Science, and Transportation of the Senate a 
        report on the findings of such study.
    (b) Contents.--The study required by subsection (a) shall 
include--
            (1)(A) a review of the importance of emergency 
        amateur radio service communications relating to 
        disasters, severe weather, and other threats to lives 
        and property in the United States; and
            (B) recommendations for--
                    (i) enhancements in the voluntary 
                deployment of amateur radio operators in 
                disaster and emergency communications and 
                disaster relief efforts; and
                    (ii) improved integration of amateur radio 
                operators in the planning and furtherance of 
                initiatives of the Federal Government; and
            (2)(A) an identification of impediments to enhanced 
        amateur radio service communications, such as the 
        effects of unreasonable or unnecessary private land use 
        restrictions on residential antenna installations; and
            (B) recommendations regarding the removal of such 
        impediments.
    (c) Expertise.--In conducting the study required by 
subsection (a), the Commission shall use the expertise of 
stakeholder entities and organizations, including the amateur 
radio, emergency response, and disaster communications 
communities.

       Subtitle E--Next Generation 9-1-1 Advancement Act of 2012

SEC. 6501. SHORT TITLE.

    This subtitle may be cited as the ``Next Generation 9-1-1 
Advancement Act of 2012''.

SEC. 6502. DEFINITIONS.

    In this subtitle, the following definitions shall apply:
            (1) 9-1-1 services and e9-1-1 services.--The terms 
        ``9-1-1 services'' and ``E9-1-1 services'' shall have 
        the meaning given those terms in section 158 of the 
        National Telecommunications and Information 
        Administration Organization Act (47 U.S.C. 942), as 
        amended by this subtitle.
            (2) Multi-line telephone system.--The term ``multi-
        line telephone system'' or ``MLTS'' means a system 
        comprised of common control units, telephone sets, 
        control hardware and software and adjunct systems, 
        including network and premises based systems, such as 
        Centrex and VoIP, as well as PBX, Hybrid, and Key 
        Telephone Systems (as classified by the Commission 
        under part 68 of title 47, Code of Federal 
        Regulations), and includes systems owned or leased by 
        governmental agencies and non-profit entities, as well 
        as for profit businesses.
            (3) Office.--The term ``Office'' means the 9-1-1 
        Implementation Coordination Office established under 
        section 158 of the National Telecommunications and 
        Information Administration Organization Act (47 U.S.C. 
        942), as amended by this subtitle.

SEC. 6503. COORDINATION OF 9-1-1 IMPLEMENTATION.

    Section 158 of the National Telecommunications and 
Information Administration Organization Act (47 U.S.C. 942) is 
amended to read as follows:

``SEC. 158. COORDINATION OF 9-1-1, E9-1-1, AND NEXT GENERATION 9-1-1 
                    IMPLEMENTATION.

    ``(a) 9-1-1 Implementation Coordination Office.--
            ``(1) Establishment and continuation.--The 
        Assistant Secretary and the Administrator of the 
        National Highway Traffic Safety Administration shall--
                    ``(A) establish and further a program to 
                facilitate coordination and communication 
                between Federal, State, and local emergency 
                communications systems, emergency personnel, 
                public safety organizations, telecommunications 
                carriers, and telecommunications equipment 
                manufacturers and vendors involved in the 
                implementation of 9-1-1 services; and
                    ``(B) establish a 9-1-1 Implementation 
                Coordination Office to implement the provisions 
                of this section.
            ``(2) Management plan.--
                    ``(A) Development.--The Assistant Secretary 
                and the Administrator shall develop a 
                management plan for the grant program 
                established under this section, including by 
                developing--
                            ``(i) plans related to the 
                        organizational structure of such 
                        program; and
                            ``(ii) funding profiles for each 
                        fiscal year of the duration of such 
                        program.
                    ``(B) Submission to congress.--Not later 
                than 90 days after the date of enactment of the 
                Next Generation 9-1-1 Advancement Act of 2012, 
                the Assistant Secretary and the Administrator 
                shall submit the management plan developed 
                under subparagraph (A) to--
                            ``(i) the Committees on Commerce, 
                        Science, and Transportation and 
                        Appropriations of the Senate; and
                            ``(ii) the Committees on Energy and 
                        Commerce and Appropriations of the 
                        House of Representatives.
            ``(3) Purpose of office.--The Office shall--
                    ``(A) take actions, in concert with 
                coordinators designated in accordance with 
                subsection (b)(3)(A)(ii), to improve 
                coordination and communication with respect to 
                the implementation of 9-1-1 services, E9-1-1 
                services, and Next Generation 9-1-1 services;
                    ``(B) develop, collect, and disseminate 
                information concerning practices, procedures, 
                and technology used in the implementation of 9-
                1-1 services, E9-1-1 services, and Next 
                Generation 9-1-1 services;
                    ``(C) advise and assist eligible entities 
                in the preparation of implementation plans 
                required under subsection (b)(3)(A)(iii);
                    ``(D) receive, review, and recommend the 
                approval or disapproval of applications for 
                grants under subsection (b); and
                    ``(E) oversee the use of funds provided by 
                such grants in fulfilling such implementation 
                plans.
            ``(4) Reports.--The Assistant Secretary and the 
        Administrator shall provide an annual report to 
        Congress by the first day of October of each year on 
        the activities of the Office to improve coordination 
        and communication with respect to the implementation of 
        9-1-1 services, E9-1-1 services, and Next Generation 9-
        1-1 services.
    ``(b) 9-1-1, E9-1-1, and Next Generation 9-1-1 
Implementation Grants.--
            ``(1) Matching grants.--The Assistant Secretary and 
        the Administrator, acting through the Office, shall 
        provide grants to eligible entities for--
                    ``(A) the implementation and operation of 
                9-1-1 services, E9-1-1 services, migration to 
                an IP-enabled emergency network, and adoption 
                and operation of Next Generation 9-1-1 services 
                and applications;
                    ``(B) the implementation of IP-enabled 
                emergency services and applications enabled by 
                Next Generation 9-1-1 services, including the 
                establishment of IP backbone networks and the 
                application layer software infrastructure 
                needed to interconnect the multitude of 
                emergency response organizations; and
                    ``(C) training public safety personnel, 
                including call-takers, first responders, and 
                other individuals and organizations who are 
                part of the emergency response chain in 9-1-1 
                services.
            ``(2) Matching requirement.--The Federal share of 
        the cost of a project eligible for a grant under this 
        section shall not exceed 60 percent.
            ``(3) Coordination required.--In providing grants 
        under paragraph (1), the Assistant Secretary and the 
        Administrator shall require an eligible entity to 
        certify in its application that--
                    ``(A) in the case of an eligible entity 
                that is a State government, the entity--
                            ``(i) has coordinated its 
                        application with the public safety 
                        answering points located within the 
                        jurisdiction of such entity;
                            ``(ii) has designated a single 
                        officer or governmental body of the 
                        entity to serve as the coordinator of 
                        implementation of 9-1-1 services, 
                        except that such designation need not 
                        vest such coordinator with direct legal 
                        authority to implement 9-1-1 services, 
                        E9-1-1 services, or Next Generation 9-
                        1-1 services or to manage emergency 
                        communications operations;
                            ``(iii) has established a plan for 
                        the coordination and implementation of 
                        9-1-1 services, E9-1-1 services, and 
                        Next Generation 9-1-1 services; and
                            ``(iv) has integrated 
                        telecommunications services involved in 
                        the implementation and delivery of 9-1-
                        1 services, E9-1-1 services, and Next 
                        Generation 9-1-1 services; or
                    ``(B) in the case of an eligible entity 
                that is not a State, the entity has complied 
                with clauses (i), (iii), and (iv) of 
                subparagraph (A), and the State in which it is 
                located has complied with clause (ii) of such 
                subparagraph.
            ``(4) Criteria.--Not later than 120 days after the 
        date of enactment of the Next Generation 9-1-1 
        Advancement Act of 2012, the Assistant Secretary and 
        the Administrator shall issue regulations, after 
        providing the public with notice and an opportunity to 
        comment, prescribing the criteria for selection for 
        grants under this section. The criteria shall include 
        performance requirements and a timeline for completion 
        of any project to be financed by a grant under this 
        section. The Assistant Secretary and the Administrator 
        shall update such regulations as necessary.
    ``(c) Diversion of 9-1-1 Charges.--
            ``(1) Designated 9-1-1 charges.--For the purposes 
        of this subsection, the term `designated 9-1-1 charges' 
        means any taxes, fees, or other charges imposed by a 
        State or other taxing jurisdiction that are designated 
        or presented as dedicated to deliver or improve 9-1-1 
        services, E9-1-1 services, or Next Generation 9-1-1 
        services.
            ``(2) Certification.--Each applicant for a matching 
        grant under this section shall certify to the Assistant 
        Secretary and the Administrator at the time of 
        application, and each applicant that receives such a 
        grant shall certify to the Assistant Secretary and the 
        Administrator annually thereafter during any period of 
        time during which the funds from the grant are 
        available to the applicant, that no portion of any 
        designated 9-1-1 charges imposed by a State or other 
        taxing jurisdiction within which the applicant is 
        located are being obligated or expended for any purpose 
        other than the purposes for which such charges are 
        designated or presented during the period beginning 180 
        days immediately preceding the date of the application 
        and continuing through the period of time during which 
        the funds from the grant are available to the 
        applicant.
            ``(3) Condition of grant.--Each applicant for a 
        grant under this section shall agree, as a condition of 
        receipt of the grant, that if the State or other taxing 
        jurisdiction within which the applicant is located, 
        during any period of time during which the funds from 
        the grant are available to the applicant, obligates or 
        expends designated 9-1-1 charges for any purpose other 
        than the purposes for which such charges are designated 
        or presented, eliminates such charges, or redesignates 
        such charges for purposes other than the implementation 
        or operation of 9-1-1 services, E9-1-1 services, or 
        Next Generation 9-1-1 services, all of the funds from 
        such grant shall be returned to the Office.
            ``(4) Penalty for providing false information.--Any 
        applicant that provides a certification under paragraph 
        (2) knowing that the information provided in the 
        certification was false shall--
                    ``(A) not be eligible to receive the grant 
                under subsection (b);
                    ``(B) return any grant awarded under 
                subsection (b) during the time that the 
                certification was not valid; and
                    ``(C) not be eligible to receive any 
                subsequent grants under subsection (b).
    ``(d) Funding and Termination.--
            ``(1) In general.--From the amounts made available 
        to the Assistant Secretary and the Administrator under 
        section 6413(b)(6) of the Middle Class Tax Relief and 
        Job Creation Act of 2012, the Assistant Secretary and 
        the Administrator are authorized to provide grants 
        under this section through the end of fiscal year 2022. 
        Not more than 5 percent of such amounts may be 
        obligated or expended to cover the administrative costs 
        of carrying out this section.
            ``(2) Termination.--Effective on October 1, 2022, 
        the authority provided by this section terminates and 
        this section shall have no effect.
    ``(e) Definitions.--In this section, the following 
definitions shall apply:
            ``(1) 9-1-1 services.--The term `9-1-1 services' 
        includes both E9-1-1 services and Next Generation 9-1-1 
        services.
            ``(2) E9-1-1 services.--The term `E9-1-1 services' 
        means both phase I and phase II enhanced 9-1-1 
        services, as described in section 20.18 of the 
        Commission's regulations (47 C.F.R. 20.18), as in 
        effect on the date of enactment of the Next Generation 
        9-1-1 Advancement Act of 2012, or as subsequently 
        revised by the Commission.
            ``(3) Eligible entity.--
                    ``(A) In general.--The term `eligible 
                entity' means a State or local government or a 
                tribal organization (as defined in section 4(l) 
                of the Indian Self-Determination and Education 
                Assistance Act (25 U.S.C. 450b(l))).
                    ``(B) Instrumentalities.--The term 
                `eligible entity' includes public authorities, 
                boards, commissions, and similar bodies created 
                by one or more eligible entities described in 
                subparagraph (A) to provide 9-1-1 services, E9-
                1-1 services, or Next Generation 9-1-1 
                services.
                    ``(C) Exception.--The term `eligible 
                entity' does not include any entity that has 
                failed to submit the most recently required 
                certification under subsection (c) within 30 
                days after the date on which such certification 
                is due.
            ``(4) Emergency call.--The term `emergency call' 
        refers to any real-time communication with a public 
        safety answering point or other emergency management or 
        response agency, including--
                    ``(A) through voice, text, or video and 
                related data; and
                    ``(B) nonhuman-initiated automatic event 
                alerts, such as alarms, telematics, or sensor 
                data, which may also include real-time voice, 
                text, or video communications.
            ``(5) Next generation 9-1-1 services.--The term 
        `Next Generation 9-1-1 services' means an IP-based 
        system comprised of hardware, software, data, and 
        operational policies and procedures that--
                    ``(A) provides standardized interfaces from 
                emergency call and message services to support 
                emergency communications;
                    ``(B) processes all types of emergency 
                calls, including voice, data, and multimedia 
                information;
                    ``(C) acquires and integrates additional 
                emergency call data useful to call routing and 
                handling;
                    ``(D) delivers the emergency calls, 
                messages, and data to the appropriate public 
                safety answering point and other appropriate 
                emergency entities;
                    ``(E) supports data or video communications 
                needs for coordinated incident response and 
                management; and
                    ``(F) provides broadband service to public 
                safety answering points or other first 
                responder entities.
            ``(6) Office.--The term `Office' means the 9-1-1 
        Implementation Coordination Office.
            ``(7) Public safety answering point.--The term 
        `public safety answering point' has the meaning given 
        the term in section 222 of the Communications Act of 
        1934 (47 U.S.C. 222).
            ``(8) State.--The term `State' means any State of 
        the United States, the District of Columbia, Puerto 
        Rico, American Samoa, Guam, the United States Virgin 
        Islands, the Northern Mariana Islands, and any other 
        territory or possession of the United States.''.

SEC. 6504. REQUIREMENTS FOR MULTI-LINE TELEPHONE SYSTEMS.

    (a) In General.--Not later than 270 days after the date of 
the enactment of this Act, the Administrator of General 
Services, in conjunction with the Office, shall issue a report 
to Congress identifying the 9-1-1 capabilities of the multi-
line telephone system in use by all Federal agencies in all 
Federal buildings and properties.
    (b) Commission Action.--
            (1) In general.--Not later than 90 days after the 
        date of the enactment of this Act, the Commission shall 
        issue a public notice seeking comment on the 
        feasibility of MLTS manufacturers including within all 
        such systems manufactured or sold after a date certain, 
        to be determined by the Commission, one or more 
        mechanisms to provide a sufficiently precise indication 
        of a 9-1-1 caller's location, while avoiding the 
        imposition of undue burdens on MLTS manufacturers, 
        providers, and operators.
            (2) Specific requirement.--The public notice under 
        paragraph (1) shall seek comment on the National 
        Emergency Number Association's ``Technical Requirements 
        Document On Model Legislation E9-1-1 for Multi-Line 
        Telephone Systems'' (NENA 06-750, Version 2).

SEC. 6505. GAO STUDY OF STATE AND LOCAL USE OF 9-1-1 SERVICE CHARGES.

    (a) In General.--Not later than 60 days after the date of 
the enactment of this Act, the Comptroller General of the 
United States shall initiate a study of--
            (1) the imposition of taxes, fees, or other charges 
        imposed by States or political subdivisions of States 
        that are designated or presented as dedicated to 
        improve emergency communications services, including 9-
        1-1 services or enhanced 9-1-1 services, or related to 
        emergency communications services operations or 
        improvements; and
            (2) the use of revenues derived from such taxes, 
        fees, or charges.
    (b) Report.--Not later than 18 months after initiating the 
study required by subsection (a), the Comptroller General shall 
prepare and submit a report on the results of the study to the 
Committee on Commerce, Science, and Transportation of the 
Senate and the Committee on Energy and Commerce of the House of 
Representatives setting forth the findings, conclusions, and 
recommendations, if any, of the study, including--
            (1) the identity of each State or political 
        subdivision that imposes such taxes, fees, or other 
        charges; and
            (2) the amount of revenues obligated or expended by 
        that State or political subdivision for any purpose 
        other than the purposes for which such taxes, fees, or 
        charges were designated or presented.

SEC. 6506. PARITY OF PROTECTION FOR PROVISION OR USE OF NEXT GENERATION 
                    9-1-1 SERVICES.

    (a) Immunity.--A provider or user of Next Generation 9-1-1 
services, a public safety answering point, and the officers, 
directors, employees, vendors, agents, and authorizing 
government entity (if any) of such provider, user, or public 
safety answering point, shall have immunity and protection from 
liability under Federal and State law to the extent provided in 
subsection (b) with respect to--
            (1) the release of subscriber information related 
        to emergency calls or emergency services;
            (2) the use or provision of 9-1-1 services, E9-1-1 
        services, or Next Generation 9-1-1 services; and
            (3) other matters related to 9-1-1 services, E9-1-1 
        services, or Next Generation 9-1-1 services.
    (b) Scope of Immunity and Protection From Liability.--The 
scope and extent of the immunity and protection from liability 
afforded under subsection (a) shall be the same as that 
provided under section 4 of the Wireless Communications and 
Public Safety Act of 1999 (47 U.S.C. 615a) to wireless 
carriers, public safety answering points, and users of wireless 
9-1-1 service (as defined in paragraphs (4), (3), and (6), 
respectively, of section 6 of that Act (47 U.S.C. 615b)) with 
respect to such release, use, and other matters.

SEC. 6507. COMMISSION PROCEEDING ON AUTODIALING.

    (a) In General.--Not later than 90 days after the date of 
the enactment of this Act, the Commission shall initiate a 
proceeding to create a specialized Do-Not-Call registry for 
public safety answering points.
    (b) Features of the Registry.--The Commission shall issue 
regulations, after providing the public with notice and an 
opportunity to comment, that--
            (1) permit verified public safety answering point 
        administrators or managers to register the telephone 
        numbers of all 9-1-1 trunks and other lines used for 
        the provision of emergency services to the public or 
        for communications between public safety agencies;
            (2) provide a process for verifying, no less 
        frequently than once every 7 years, that registered 
        numbers should continue to appear upon the registry;
            (3) provide a process for granting and tracking 
        access to the registry by the operators of automatic 
        dialing equipment;
            (4) protect the list of registered numbers from 
        disclosure or dissemination by parties granted access 
        to the registry; and
            (5) prohibit the use of automatic dialing or 
        ``robocall'' equipment to establish contact with 
        registered numbers.
    (c) Enforcement.--The Commission shall--
            (1) establish monetary penalties for violations of 
        the protective regulations established pursuant to 
        subsection (b)(4) of not less than $100,000 per 
        incident nor more than $1,000,000 per incident;
            (2) establish monetary penalties for violations of 
        the prohibition on automatically dialing registered 
        numbers established pursuant to subsection (b)(5) of 
        not less than $10,000 per call nor more than $100,000 
        per call; and
            (3) provide for the imposition of fines under 
        paragraphs (1) or (2) that vary depending upon whether 
        the conduct leading to the violation was negligent, 
        grossly negligent, reckless, or willful, and depending 
        on whether the violation was a first or subsequent 
        offence.

SEC. 6508. REPORT ON COSTS FOR REQUIREMENTS AND SPECIFICATIONS OF NEXT 
                    GENERATION 9-1-1 SERVICES.

    (a) In General.--Not later than 1 year after the date of 
the enactment of this Act, the Office, in consultation with the 
Administrator of the National Highway Traffic Safety 
Administration, the Commission, and the Secretary of Homeland 
Security, shall prepare and submit a report to Congress that 
analyzes and determines detailed costs for specific Next 
Generation 9-1-1 service requirements and specifications.
    (b) Purpose of Report.--The purpose of the report required 
under subsection (a) is to serve as a resource for Congress as 
it considers creating a coordinated, long-term funding 
mechanism for the deployment and operation, accessibility, 
application development, equipment procurement, and training of 
personnel for Next Generation 9-1-1 services.
    (c) Required Inclusions.--The report required under 
subsection (a) shall include the following:
            (1) How costs would be broken out geographically 
        and allocated among public safety answering points, 
        broadband service providers, and third-party providers 
        of Next Generation 9-1-1 services.
            (2) An assessment of the current state of Next 
        Generation 9-1-1 service readiness among public safety 
        answering points.
            (3) How differences in public safety answering 
        points' access to broadband across the United States 
        may affect costs.
            (4) A technical analysis and cost study of 
        different delivery platforms, such as wireline, 
        wireless, and satellite.
            (5) An assessment of the architectural 
        characteristics, feasibility, and limitations of Next 
        Generation 9-1-1 service delivery.
            (6) An analysis of the needs for Next Generation 9-
        1-1 services of persons with disabilities.
            (7) Standards and protocols for Next Generation 9-
        1-1 services and for incorporating Voice over Internet 
        Protocol and ``Real-Time Text'' standards.

SEC. 6509. COMMISSION RECOMMENDATIONS FOR LEGAL AND STATUTORY FRAMEWORK 
                    FOR NEXT GENERATION 9-1-1 SERVICES.

    Not later than 1 year after the date of the enactment of 
this Act, the Commission, in coordination with the Secretary of 
Homeland Security, the Administrator of the National Highway 
Traffic Safety Administration, and the Office, shall prepare 
and submit a report to Congress that contains recommendations 
for the legal and statutory framework for Next Generation 9-1-1 
services, consistent with recommendations in the National 
Broadband Plan developed by the Commission pursuant to the 
American Recovery and Reinvestment Act of 2009, including the 
following:
            (1) A legal and regulatory framework for the 
        development of Next Generation 9-1-1 services and the 
        transition from legacy 9-1-1 to Next Generation 9-1-1 
        networks.
            (2) Legal mechanisms to ensure efficient and 
        accurate transmission of 9-1-1 caller information to 
        emergency response agencies.
            (3) Recommendations for removing jurisdictional 
        barriers and inconsistent legacy regulations 
        including--
                    (A) proposals that would require States to 
                remove regulatory roadblocks to Next Generation 
                9-1-1 services development, while recognizing 
                existing State authority over 9-1-1 services;
                    (B) eliminating outdated 9-1-1 regulations 
                at the Federal level; and
                    (C) preempting inconsistent State 
                regulations.

            Subtitle F--Telecommunications Development Fund

SEC. 6601. NO ADDITIONAL FEDERAL FUNDS.

    Section 309(j)(8)(C)(iii) of the Communications Act of 1934 
(47 U.S.C. 309(j)(8)(C)(iii)) is amended to read as follows:
                            ``(iii) the interest accrued to the 
                        account shall be deposited in the 
                        general fund of the Treasury, where 
                        such amount shall be dedicated for the 
                        sole purpose of deficit reduction.''.

SEC. 6602. INDEPENDENCE OF THE FUND.

    Section 714 of the Communications Act of 1934 (47 U.S.C. 
614) is amended--
            (1) by striking subsection (c) and inserting the 
        following:
    ``(c) Independent Board of Directors.--The Fund shall have 
a Board of Directors consisting of 5 people with experience in 
areas including finance, investment banking, government 
banking, communications law and administrative practice, and 
public policy. The Board of Directors shall select annually a 
Chair from among the directors. A nominating committee, 
comprised of the Chair and 2 other directors selected by the 
Chair, shall appoint additional directors. The Fund's bylaws 
shall regulate the other aspects of the Board of Directors, 
including provisions relating to meetings, quorums, committees, 
and other matters, all as typically contained in the bylaws of 
a similar private investment fund.'';
            (2) in subsection (d)--
                    (A) by striking ``(after consultation with 
                the Commission and the Secretary of the 
                Treasury)'';
                    (B) by striking paragraph (1); and
                    (C) by redesignating paragraphs (2) through 
                (4) as paragraphs (1) through (3), 
                respectively; and
            (3) in subsection (g), by striking ``subsection 
        (d)(2)'' and inserting ``subsection (d)(1)''.

                Subtitle G--Federal Spectrum Relocation

SEC. 6701. RELOCATION OF AND SPECTRUM SHARING BY FEDERAL GOVERNMENT 
                    STATIONS.

    (a) In General.--Section 113 of the National 
Telecommunications and Information Administration Organization 
Act (47 U.S.C. 923) is amended--
            (1) in subsection (g)--
                    (A) by striking the heading and inserting 
                ``Relocation of and Spectrum Sharing by Federal 
                Government Stations.--'';
                    (B) by amending paragraph (1) to read as 
                follows:
            ``(1) Eligible federal entities.--Any Federal 
        entity that operates a Federal Government station 
        authorized to use a band of eligible frequencies 
        described in paragraph (2) and that incurs relocation 
        or sharing costs because of planning for an auction of 
        spectrum frequencies or the reallocation of spectrum 
        frequencies from Federal use to exclusive non-Federal 
        use or to shared use shall receive payment for such 
        relocation or sharing costs from the Spectrum 
        Relocation Fund, in accordance with this section and 
        section 118. For purposes of this paragraph, Federal 
        power agencies exempted under subsection (c)(4) that 
        choose to relocate from the frequencies identified for 
        reallocation pursuant to subsection (a) are eligible to 
        receive payment under this paragraph.'';
                    (C) by amending paragraph (2)(B) to read as 
                follows:
                    ``(B) any other band of frequencies 
                reallocated from Federal use to non-Federal use 
                or to shared use after January 1, 2003, that is 
                assigned by competitive bidding pursuant to 
                section 309(j) of the Communications Act of 
                1934 (47 U.S.C. 309(j)).'';
                    (D) by amending paragraph (3) to read as 
                follows:
            ``(3) Relocation or sharing costs defined.--
                    ``(A) In general.--For purposes of this 
                section and section 118, the term `relocation 
                or sharing costs' means the costs incurred by a 
                Federal entity in connection with the auction 
                of spectrum frequencies previously assigned to 
                such entity or the sharing of spectrum 
                frequencies assigned to such entity (including 
                the auction or a planned auction of the rights 
                to use spectrum frequencies on a shared basis 
                with such entity) in order to achieve 
                comparable capability of systems as before the 
                relocation or sharing arrangement. Such term 
                includes, with respect to relocation or 
                sharing, as the case may be--
                            ``(i) the costs of any modification 
                        or replacement of equipment, spares, 
                        associated ancillary equipment, 
                        software, facilities, operating 
                        manuals, training, or compliance with 
                        regulations that are attributable to 
                        relocation or sharing;
                            ``(ii) the costs of all 
                        engineering, equipment, software, site 
                        acquisition, and construction, as well 
                        as any legitimate and prudent 
                        transaction expense, including term-
                        limited Federal civil servant and 
                        contractor staff necessary to carry out 
                        the relocation or sharing activities of 
                        a Federal entity, and reasonable 
                        additional costs incurred by the 
                        Federal entity that are attributable to 
                        relocation or sharing, including 
                        increased recurring costs associated 
                        with the replacement of facilities;
                            ``(iii) the costs of research, 
                        engineering studies, economic analyses, 
                        or other expenses reasonably incurred 
                        in connection with--
                                    ``(I) calculating the 
                                estimated relocation or sharing 
                                costs that are provided to the 
                                Commission pursuant to 
                                paragraph (4)(A);
                                    ``(II) determining the 
                                technical or operational 
                                feasibility of relocation to 1 
                                or more potential relocation 
                                bands; or
                                    ``(III) planning for or 
                                managing a relocation or 
                                sharing arrangement (including 
                                spectrum coordination with 
                                auction winners);
                            ``(iv) the one-time costs of any 
                        modification of equipment reasonably 
                        necessary--
                                    ``(I) to accommodate non-
                                Federal use of shared 
                                frequencies; or
                                    ``(II) in the case of 
                                eligible frequencies 
                                reallocated for exclusive non-
                                Federal use and assigned 
                                through a system of competitive 
                                bidding under section 309(j) of 
                                the Communications Act of 1934 
                                (47 U.S.C. 309(j)) but with 
                                respect to which a Federal 
                                entity retains primary 
                                allocation or protected status 
                                for a period of time after the 
                                completion of the competitive 
                                bidding process, to accommodate 
                                shared Federal and non-Federal 
                                use of such frequencies for 
                                such period; and
                            ``(v) the costs associated with the 
                        accelerated replacement of systems and 
                        equipment if the acceleration is 
                        necessary to ensure the timely 
                        relocation of systems to a new 
                        frequency assignment or the timely 
                        accommodation of sharing of Federal 
                        frequencies.
                    ``(B) Comparable capability of systems.--
                For purposes of subparagraph (A), comparable 
                capability of systems--
                            ``(i) may be achieved by relocating 
                        a Federal Government station to a new 
                        frequency assignment, by relocating a 
                        Federal Government station to a 
                        different geographic location, by 
                        modifying Federal Government equipment 
                        to mitigate interference or use less 
                        spectrum, in terms of bandwidth, 
                        geography, or time, and thereby 
                        permitting spectrum sharing (including 
                        sharing among relocated Federal 
                        entities and incumbents to make 
                        spectrum available for non-Federal use) 
                        or relocation, or by utilizing an 
                        alternative technology; and
                            ``(ii) includes the acquisition of 
                        state-of-the-art replacement systems 
                        intended to meet comparable operational 
                        scope, which may include incidental 
                        increases in functionality.'';
                    (E) in paragraph (4)--
                            (i) in the heading, by striking 
                        ``relocations costs'' and inserting 
                        ``relocation or sharing costs'';
                            (ii) by striking ``relocation 
                        costs'' each place it appears and 
                        inserting ``relocation or sharing 
                        costs''; and
                            (iii) in subparagraph (A), by 
                        inserting ``or sharing'' after ``such 
                        relocation'';
                    (F) in paragraph (5)--
                            (i) by striking ``relocation 
                        costs'' and inserting ``relocation or 
                        sharing costs''; and
                            (ii) by inserting ``or sharing'' 
                        after ``for relocation''; and
                    (G) by amending paragraph (6) to read as 
                follows:
            ``(6) Implementation of procedures.--The NTIA shall 
        take such actions as necessary to ensure the timely 
        relocation of Federal entities' spectrum-related 
        operations from frequencies described in paragraph (2) 
        to frequencies or facilities of comparable capability 
        and to ensure the timely implementation of arrangements 
        for the sharing of frequencies described in such 
        paragraph. Upon a finding by the NTIA that a Federal 
        entity has achieved comparable capability of systems, 
        the NTIA shall terminate or limit the entity's 
        authorization and notify the Commission that the 
        entity's relocation has been completed or sharing 
        arrangement has been implemented. The NTIA shall also 
        terminate such entity's authorization if the NTIA 
        determines that the entity has unreasonably failed to 
        comply with the timeline for relocation or sharing 
        submitted by the Director of the Office of Management 
        and Budget under section 118(d)(2)(C).'';
            (2) by redesignating subsections (h) and (i) as 
        subsections (k) and (l), respectively; and
            (3) by inserting after subsection (g) the 
        following:
    ``(h) Development and Publication of Relocation or Sharing 
Transition Plans.--
            ``(1) Development of transition plan by federal 
        entity.--Not later than 240 days before the 
        commencement of any auction of eligible frequencies 
        described in subsection (g)(2), a Federal entity 
        authorized to use any such frequency shall submit to 
        the NTIA and to the Technical Panel established by 
        paragraph (3) a transition plan for the implementation 
        by such entity of the relocation or sharing 
        arrangement. The NTIA shall specify, after public 
        input, a common format for all Federal entities to 
        follow in preparing transition plans under this 
        paragraph.
            ``(2) Contents of transition plan.--The transition 
        plan required by paragraph (1) shall include the 
        following information:
                    ``(A) The use by the Federal entity of the 
                eligible frequencies to be auctioned, current 
                as of the date of the submission of the plan.
                    ``(B) The geographic location of the 
                facilities or systems of the Federal entity 
                that use such frequencies.
                    ``(C) The frequency bands used by such 
                facilities or systems, described by geographic 
                location.
                    ``(D) The steps to be taken by the Federal 
                entity to relocate its spectrum use from such 
                frequencies or to share such frequencies, 
                including timelines for specific geographic 
                locations in sufficient detail to indicate when 
                use of such frequencies at such locations will 
                be discontinued by the Federal entity or shared 
                between the Federal entity and non-Federal 
                users.
                    ``(E) The specific interactions between the 
                eligible Federal entity and the NTIA needed to 
                implement the transition plan.
                    ``(F) The name of the officer or employee 
                of the Federal entity who is responsible for 
                the relocation or sharing efforts of the entity 
                and who is authorized to meet and negotiate 
                with non-Federal users regarding the 
                transition.
                    ``(G) The plans and timelines of the 
                Federal entity for--
                            ``(i) using funds received from the 
                        Spectrum Relocation Fund established by 
                        section 118;
                            ``(ii) procuring new equipment and 
                        additional personnel needed for 
                        relocation or sharing;
                            ``(iii) field-testing and deploying 
                        new equipment needed for relocation or 
                        sharing; and
                            ``(iv) hiring and relying on 
                        contract personnel, if any, needed for 
                        relocation or sharing.
                    ``(H) Factors that could hinder fulfillment 
                of the transition plan by the Federal entity.
            ``(3) Technical panel.--
                    ``(A) Establishment.--There is established 
                within the NTIA a panel to be known as the 
                Technical Panel.
                    ``(B) Membership.--
                            ``(i) Number and appointment.--The 
                        Technical Panel shall be composed of 3 
                        members, to be appointed as follows:
                                    ``(I) One member to be 
                                appointed by the Director of 
                                the Office of Management and 
                                Budget (in this subsection 
                                referred to as `OMB').
                                    ``(II) One member to be 
                                appointed by the Assistant 
                                Secretary.
                                    ``(III) One member to be 
                                appointed by the Chairman of 
                                the Commission.
                            ``(ii) Qualifications.--Each member 
                        of the Technical Panel shall be a radio 
                        engineer or a technical expert.
                            ``(iii) Initial appointment.--The 
                        initial members of the Technical Panel 
                        shall be appointed not later than 180 
                        days after the date of the enactment of 
                        the Middle Class Tax Relief and Job 
                        Creation Act of 2012.
                            ``(iv) Terms.--The term of a member 
                        of the Technical Panel shall be 18 
                        months, and no individual may serve 
                        more than 1 consecutive term.
                            ``(v) Vacancies.--Any member 
                        appointed to fill a vacancy occurring 
                        before the expiration of the term for 
                        which the member's predecessor was 
                        appointed shall be appointed only for 
                        the remainder of that term. A member 
                        may serve after the expiration of that 
                        member's term until a successor has 
                        taken office. A vacancy shall be filled 
                        in the manner in which the original 
                        appointment was made.
                            ``(vi) No compensation.--The 
                        members of the Technical Panel shall 
                        not receive any compensation for 
                        service on the Technical Panel. If any 
                        such member is an employee of the 
                        agency of the official that appointed 
                        such member to the Technical Panel, 
                        compensation in the member's capacity 
                        as such an employee shall not be 
                        considered compensation under this 
                        clause.
                    ``(C) Administrative support.--The NTIA 
                shall provide the Technical Panel with the 
                administrative support services necessary to 
                carry out its duties under this subsection and 
                subsection (i).
                    ``(D) Regulations.--Not later than 180 days 
                after the date of the enactment of the Middle 
                Class Tax Relief and Job Creation Act of 2012, 
                the NTIA shall, after public notice and comment 
                and subject to approval by the Director of OMB, 
                adopt regulations to govern the workings of the 
                Technical Panel.
                    ``(E) Certain requirements inapplicable.--
                The Federal Advisory Committee Act (5 U.S.C. 
                App.) and sections 552 and 552b of title 5, 
                United States Code, shall not apply to the 
                Technical Panel.
            ``(4) Review of plan by technical panel.--
                    ``(A) In general.--Not later than 30 days 
                after the submission of the plan under 
                paragraph (1), the Technical Panel shall submit 
                to the NTIA and to the Federal entity a report 
                on the sufficiency of the plan, including 
                whether the plan includes the information 
                required by paragraph (2) and an assessment of 
                the reasonableness of the proposed timelines 
                and estimated relocation or sharing costs, 
                including the costs of any proposed expansion 
                of the capabilities of a Federal system in 
                connection with relocation or sharing.
                    ``(B) Insufficiency of plan.--If the 
                Technical Panel finds the plan insufficient, 
                the Federal entity shall, not later than 90 
                days after the submission of the report by the 
                Technical panel under subparagraph (A), submit 
                to the Technical Panel a revised plan. Such 
                revised plan shall be treated as a plan 
                submitted under paragraph (1).
            ``(5) Publication of transition plan.--Not later 
        than 120 days before the commencement of the auction 
        described in paragraph (1), the NTIA shall make the 
        transition plan publicly available on its website.
            ``(6) Updates of transition plan.--As the Federal 
        entity implements the transition plan, it shall 
        periodically update the plan to reflect any changed 
        circumstances, including changes in estimated 
        relocation or sharing costs or the timeline for 
        relocation or sharing. The NTIA shall make the updates 
        available on its website.
            ``(7) Classified and other sensitive information.--
                    ``(A) Classified information.--If any of 
                the information required to be included in the 
                transition plan of a Federal entity is 
                classified information (as defined in section 
                798(b) of title 18, United States Code), the 
                entity shall--
                            ``(i) include in the plan--
                                    ``(I) an explanation of the 
                                exclusion of any such 
                                information, which shall be as 
                                specific as possible; and
                                    ``(II) all relevant non-
                                classified information that is 
                                available; and
                            ``(ii) discuss as a factor under 
                        paragraph (2)(H) the extent of the 
                        classified information and the effect 
                        of such information on the 
                        implementation of the relocation or 
                        sharing arrangement.
                    ``(B) Regulations.--Not later than 180 days 
                after the date of the enactment of the Middle 
                Class Tax Relief and Job Creation Act of 2012, 
                the NTIA, in consultation with the Director of 
                OMB and the Secretary of Defense, shall adopt 
                regulations to ensure that the information 
                publicly released under paragraph (5) or (6) 
                does not contain classified information or 
                other sensitive information.
    ``(i) Dispute Resolution Process.--
            ``(1) In general.--If a dispute arises between a 
        Federal entity and a non-Federal user regarding the 
        execution, timing, or cost of the transition plan 
        submitted by the Federal entity under subsection 
        (h)(1), the Federal entity or the non-Federal user may 
        request that the NTIA establish a dispute resolution 
        board to resolve the dispute.
            ``(2) Establishment of board.--
                    ``(A) In general.--If the NTIA receives a 
                request under paragraph (1), it shall establish 
                a dispute resolution board.
                    ``(B) Membership and appointment.--The 
                dispute resolution board shall be composed of 3 
                members, as follows:
                            ``(i) A representative of the 
                        Office of Management and Budget (in 
                        this subsection referred to as `OMB'), 
                        to be appointed by the Director of OMB.
                            ``(ii) A representative of the 
                        NTIA, to be appointed by the Assistant 
                        Secretary.
                            ``(iii) A representative of the 
                        Commission, to be appointed by the 
                        Chairman of the Commission.
                    ``(C) Chair.--The representative of OMB 
                shall be the Chair of the dispute resolution 
                board.
                    ``(D) Vacancies.--Any vacancy in the 
                dispute resolution board shall be filled in the 
                manner in which the original appointment was 
                made.
                    ``(E) No compensation.--The members of the 
                dispute resolution board shall not receive any 
                compensation for service on the board. If any 
                such member is an employee of the agency of the 
                official that appointed such member to the 
                board, compensation in the member's capacity as 
                such an employee shall not be considered 
                compensation under this subparagraph.
                    ``(F) Termination of board.--The dispute 
                resolution board shall be terminated after it 
                rules on the dispute that it was established to 
                resolve and the time for appeal of its decision 
                under paragraph (7) has expired, unless an 
                appeal has been taken under such paragraph. If 
                such an appeal has been taken, the board shall 
                continue to exist until the appeal process has 
                been exhausted and the board has completed any 
                action required by a court hearing the appeal.
            ``(3) Procedures.--The dispute resolution board 
        shall meet simultaneously with representatives of the 
        Federal entity and the non-Federal user to discuss the 
        dispute. The dispute resolution board may require the 
        parties to make written submissions to it.
            ``(4) Deadline for decision.--The dispute 
        resolution board shall rule on the dispute not later 
        than 30 days after the request was made to the NTIA 
        under paragraph (1).
            ``(5) Assistance from technical panel.--The 
        Technical Panel established under subsection (h)(3) 
        shall provide the dispute resolution board with such 
        technical assistance as the board requests.
            ``(6) Administrative support.--The NTIA shall 
        provide the dispute resolution board with the 
        administrative support services necessary to carry out 
        its duties under this subsection.
            ``(7) Appeals.--A decision of the dispute 
        resolution board may be appealed to the United States 
        Court of Appeals for the District of Columbia Circuit 
        by filing a notice of appeal with that court not later 
        than 30 days after the date of such decision. Each 
        party shall bear its own costs and expenses, including 
        attorneys' fees, for any appeal under this paragraph.
            ``(8) Regulations.--Not later than 180 days after 
        the date of the enactment of the Middle Class Tax 
        Relief and Job Creation Act of 2012, the NTIA shall, 
        after public notice and comment and subject to approval 
        by OMB, adopt regulations to govern the working of any 
        dispute resolution boards established under paragraph 
        (2)(A) and the role of the Technical Panel in assisting 
        any such board.
            ``(9) Certain requirements inapplicable.--The 
        Federal Advisory Committee Act (5 U.S.C. App.) and 
        sections 552 and 552b of title 5, United States Code, 
        shall not apply to a dispute resolution board 
        established under paragraph (2)(A).
    ``(j) Relocation Prioritized Over Sharing.--
            ``(1) In general.--In evaluating a band of 
        frequencies for possible reallocation for exclusive 
        non-Federal use or shared use, the NTIA shall give 
        priority to options involving reallocation of the band 
        for exclusive non-Federal use and shall choose options 
        involving shared use only when it determines, in 
        consultation with the Director of the Office of 
        Management and Budget, that relocation of a Federal 
        entity from the band is not feasible because of 
        technical or cost constraints.
            ``(2) Notification of congress when sharing 
        chosen.--If the NTIA determines under paragraph (1) 
        that relocation of a Federal entity from the band is 
        not feasible, the NTIA shall notify the Committee on 
        Commerce, Science, and Transportation of the Senate and 
        the Committee on Energy and Commerce of the House of 
        Representatives of the determination, including the 
        specific technical or cost constraints on which the 
        determination is based.''.
    (b) Conforming Amendment.--Section 309(j) of the 
Communications Act of 1934 is further amended by striking 
``relocation costs'' each place it appears and inserting 
``relocation or sharing costs''.

SEC. 6702. SPECTRUM RELOCATION FUND.

    Section 118 of the National Telecommunications and 
Information Administration Organization Act (47 U.S.C. 928) is 
amended--
            (1) by striking ``relocation costs'' each place it 
        appears and inserting ``relocation or sharing costs'';
            (2) by amending subsection (c) to read as follows:
    ``(c) Use of Funds.--The amounts in the Fund from auctions 
of eligible frequencies are authorized to be used to pay 
relocation or sharing costs of an eligible Federal entity 
incurring such costs with respect to relocation from or sharing 
of those frequencies.'';
            (3) in subsection (d)--
                    (A) in paragraph (2)--
                            (i) in subparagraph (A), by 
                        inserting ``or sharing'' before the 
                        semicolon;
                            (ii) in subparagraph (B), by 
                        inserting ``or sharing'' before the 
                        period at the end;
                            (iii) by redesignating 
                        subparagraphs (A) and (B) as 
                        subparagraphs (B) and (C), 
                        respectively; and
                            (iv) by inserting before 
                        subparagraph (B), as so redesignated, 
                        the following:
                    ``(A) unless the eligible Federal entity 
                has submitted a transition plan to the NTIA as 
                required by paragraph (1) of section 113(h), 
                the Technical Panel has found such plan 
                sufficient under paragraph (4) of such section, 
                and the NTIA has made available such plan on 
                its website as required by paragraph (5) of 
                such section;'';
                    (B) by striking paragraph (3); and
                    (C) by adding at the end the following:
            ``(3) Transfers for pre-auction costs.--
                    ``(A) In general.--Subject to subparagraph 
                (B), the Director of OMB may transfer to an 
                eligible Federal entity, at any time (including 
                prior to a scheduled auction), such sums as may 
                be available in the Fund to pay relocation or 
                sharing costs related to pre-auction estimates 
                or research, as such costs are described in 
                section 113(g)(3)(A)(iii).
                    ``(B) Notification.--No funds may be 
                transferred pursuant to subparagraph (A) 
                unless--
                            ``(i) the notification provided 
                        under paragraph (2)(C) includes a 
                        certification from the Director of OMB 
                        that--
                                    ``(I) funds transferred 
                                before an auction will likely 
                                allow for timely implementation 
                                of relocation or sharing, 
                                thereby increasing net expected 
                                auction proceeds by an amount 
                                not less than the time value of 
                                the amount of funds 
                                transferred; and
                                    ``(II) the auction is 
                                intended to occur not later 
                                than 5 years after transfer of 
                                funds; and
                            ``(ii) the transition plan 
                        submitted by the eligible Federal 
                        entity under section 113(h)(1) 
                        provides--
                                    ``(I) to the fullest extent 
                                possible, for sharing and 
                                coordination of eligible 
                                frequencies with non-Federal 
                                users, including reasonable 
                                accommodation by the eligible 
                                Federal entity for the use of 
                                eligible frequencies by non-
                                Federal users during the period 
                                that the entity is relocating 
                                its spectrum uses (in this 
                                clause referred to as the 
                                `transition period');
                                    ``(II) for non-Federal 
                                users to be able to use 
                                eligible frequencies during the 
                                transition period in geographic 
                                areas where the eligible 
                                Federal entity does not use 
                                such frequencies;
                                    ``(III) that the eligible 
                                Federal entity will, during the 
                                transition period, make itself 
                                available for negotiation and 
                                discussion with non-Federal 
                                users not later than 30 days 
                                after a written request 
                                therefor; and
                                    ``(IV) that the eligible 
                                Federal entity will, during the 
                                transition period, make 
                                available to a non-Federal user 
                                with appropriate security 
                                clearances any classified 
                                information (as defined in 
                                section 798(b) of title 18, 
                                United States Code) regarding 
                                the relocation process, on a 
                                need-to-know basis, to assist 
                                the non-Federal user in the 
                                relocation process with such 
                                eligible Federal entity or 
                                other eligible Federal 
                                entities.
                    ``(C) Applicability to certain costs.--
                            ``(i) In general.--The Director of 
                        OMB may transfer under subparagraph (A) 
                        not more than $10,000,000 for costs 
                        incurred after June 28, 2010, but 
                        before the date of the enactment of the 
                        Middle Class Tax Relief and Job 
                        Creation Act of 2012.
                            ``(ii) Supplement not supplant.--
                        Any amounts transferred by the Director 
                        of OMB pursuant to clause (i) shall be 
                        in addition to any amounts that the 
                        Director of OMB may transfer for costs 
                        incurred on or after the date of the 
                        enactment of the Middle Class Tax 
                        Relief and Job Creation Act of 2012.
            ``(4) Reversion of unused funds.--Any amounts in 
        the Fund that are remaining after the payment of the 
        relocation or sharing costs that are payable from the 
        Fund shall revert to and be deposited in the general 
        fund of the Treasury, for the sole purpose of deficit 
        reduction, not later than 8 years after the date of the 
        deposit of such proceeds to the Fund, unless within 60 
        days in advance of the reversion of such funds, the 
        Director of OMB, in consultation with the NTIA, 
        notifies the congressional committees described in 
        paragraph (2)(C) that such funds are needed to complete 
        or to implement current or future relocation or sharing 
        arrangements.'';
            (4) in subsection (e)--
                    (A) in paragraph (1)(B)--
                            (i) in clause (i), by striking 
                        ``subsection (d)(2)(A)'' and inserting 
                        ``subsection (d)(2)(B)''; and
                            (ii) in clause (ii), by striking 
                        ``subsection (d)(2)(B)'' and inserting 
                        ``subsection (d)(2)(C)''; and
                    (B) in paragraph (2)--
                            (i) by striking ``entity's 
                        relocation'' and inserting ``relocation 
                        of the entity or implementation of the 
                        sharing arrangement by the entity'';
                            (ii) by inserting ``or the 
                        implementation of such arrangement'' 
                        after ``such relocation''; and
                            (iii) by striking ``subsection 
                        (d)(2)(A)'' and inserting ``subsection 
                        (d)(2)(B)''; and
            (5) by adding at the end the following:
    ``(f) Additional Payments From Fund.--
            ``(1) Amounts available.--Notwithstanding 
        subsections (c) through (e), after the date of the 
        enactment of the Middle Class Tax Relief and Job 
        Creation Act of 2012, there are appropriated from the 
        Fund and available to the Director of OMB for use in 
        accordance with paragraph (2) not more than 10 percent 
        of the amounts deposited in the Fund from auctions 
        occurring after such date of enactment of licenses for 
        the use of spectrum vacated by eligible Federal 
        entities.
            ``(2) Use of amounts.--
                    ``(A) In general.--The Director of OMB, in 
                consultation with the NTIA, may use amounts 
                made available under paragraph (1) to make 
                payments to eligible Federal entities that are 
                implementing a transition plan submitted under 
                section 113(h)(1) in order to encourage such 
                entities to complete the implementation more 
                quickly, thereby encouraging timely access to 
                the eligible frequencies that are being 
                reallocated for exclusive non-Federal use or 
                shared use.
                    ``(B) Conditions.--In the case of any 
                payment by the Director of OMB under 
                subparagraph (A)--
                            ``(i) such payment shall be based 
                        on the market value of the eligible 
                        frequencies, the timeliness with which 
                        the eligible Federal entity clears its 
                        use of such frequencies, and the need 
                        for such frequencies in order for the 
                        entity to conduct its essential 
                        missions;
                            ``(ii) the eligible Federal entity 
                        shall use such payment for the purposes 
                        specified in clauses (i) through (v) of 
                        section 113(g)(3)(A) to achieve 
                        comparable capability of systems 
                        affected by the reallocation of 
                        eligible frequencies from Federal use 
                        to exclusive non-Federal use or to 
                        shared use;
                            ``(iii) such payment may not be 
                        made if the amount remaining in the 
                        Fund after such payment will be less 
                        than 10 percent of the winning bids in 
                        the auction of the spectrum with 
                        respect to which the Federal entity is 
                        incurring relocation or sharing costs; 
                        and
                            ``(iv) such payment may not be made 
                        until 30 days after the Director of OMB 
                        has notified the congressional 
                        committees described in subsection 
                        (d)(2)(C).
    ``(g) Restriction on Use of Funds.--No amounts in the Fund 
on the day before the date of the enactment of the Middle Class 
Tax Relief and Job Creation Act of 2012 may be used for any 
purpose except--
            ``(1) to pay the relocation or sharing costs 
        incurred by eligible Federal entities in order to 
        relocate from the frequencies the auction of which 
        generated such amounts; or
            ``(2) to pay relocation or sharing costs related to 
        pre-auction estimates or research, in accordance with 
        subsection (d)(3).''.

SEC. 6703. NATIONAL SECURITY AND OTHER SENSITIVE INFORMATION.

    Part B of title I of the National Telecommunications and 
Information Administration Organization Act (47 U.S.C. 921 et 
seq.) is amended by adding at the end the following:

``SEC. 119. NATIONAL SECURITY AND OTHER SENSITIVE INFORMATION.

    ``(a) Determination.--If the head of an Executive agency 
(as defined in section 105 of title 5, United States Code) 
determines that public disclosure of any information contained 
in a notification or report required by section 113 or 118 
would reveal classified national security information, or other 
information for which there is a legal basis for nondisclosure 
and the public disclosure of which would be detrimental to 
national security, homeland security, or public safety or would 
jeopardize a law enforcement investigation, the head of the 
Executive agency shall notify the Assistant Secretary of that 
determination prior to the release of such information.
    ``(b) Inclusion in Annex.--The head of the Executive agency 
shall place the information with respect to which a 
determination was made under subsection (a) in a separate annex 
to the notification or report required by section 113 or 118. 
The annex shall be provided to the subcommittee of primary 
jurisdiction of the congressional committee of primary 
jurisdiction in accordance with appropriate national security 
stipulations but shall not be disclosed to the public or 
provided to any unauthorized person through any means.''.

                  TITLE VII--MISCELLANEOUS PROVISIONS

SEC. 7001. REPEAL OF CERTAIN SHIFTS IN THE TIMING OF CORPORATE 
                    ESTIMATED TAX PAYMENTS.

    The following provisions of law (and any modification of 
any such provision which is contained in any other provision of 
law) shall not apply with respect to any installment of 
corporate estimated tax:
            (1) Section 201(b) of the Corporate Estimated Tax 
        Shift Act of 2009.
            (2) Section 561 of the Hiring Incentives to Restore 
        Employment Act.
            (3) Section 505 of the United States-Korea Free 
        Trade Agreement Implementation Act.
            (4) Section 603 of the United States-Colombia Trade 
        Promotion Agreement Implementation Act.
            (5) Section 502 of the United State-Panama Trade 
        Promotion Agreement Implementation Act.

SEC. 7002. REPEAL OF REQUIREMENT RELATING TO TIME FOR REMITTING CERTAIN 
                    MERCHANDISE PROCESSING FEES.

    (a) Repeal.--The Trade Adjustment Assistance Extension Act 
of 2011 (title II of Public Law 112-40; 125 Stat. 402) is 
amended by striking section 263.
    (b) Clerical Amendment.--The table of contents for such Act 
is amended by striking the item relating to section 263.

SEC. 7003. TREATMENT FOR PAYGO PURPOSES.

    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.

    And the Senate agree to the same.
    That the Senate recede from its amendment to the title of 
the bill.
                                   Dave Camp,
                                   Fred Upton,
                                   Kevin Brady,
                                   Greg Walden,
                                   Tom Price,
                                   Tom Reed,
                                   Renee L. Ellmers,
                                   Nan A.S. Hayworth,
                                   Sander M. Levin,
                                   Xavier Becerra,
                                   Chris Van Hollen,
                                   Allyson Y. Schwartz,
                                   Henry A. Waxman,
                                 Managers on the Part of the House.

                                   Max Baucus,
                                   Jack Reed,
                                   Benjamin L. Cardin,
                                   Robert P. Casey, Jr.,
                                Managers on the Part of the Senate.
       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

      The managers on the part of the House and the Senate at 
the conference on the disagreeing votes of the two Houses on 
the amendments of the Senate to the bill (H.R. 3630), to 
provide incentives for the creation of jobs, and for other 
purposes, submit the following joint statement to the House and 
the Senate in explanation of the effect of the action agreed 
upon by the managers and recommended in the accompanying 
conference report:
      The Senate amendment struck all of the House bill after 
the enacting clause and inserted a substitute text.
      The House recedes from its disagreement to the amendment 
of the Senate to the text with an amendment that is a 
substitute for the House bill and the Senate amendment. The 
Senate recedes from its amendment to the title. The committee 
of the conference met on February 16, 2012 (the House chairing) 
and resolved their differences. The differences between the 
House bill, the Senate amendment, and the substitute agreed to 
in conference are noted below, except for clerical corrections, 
conforming changes made necessary by agreements reached by the 
conferees, and minor drafting and clarifying changes.

                                 TITLE

House bill
      ``Middle Class Tax Relief and Job Creation Act of 2011''
Senate bill
      ``Temporary Payroll Tax Cut Continuation Act of 2011''
Conference substitute
      ``Middle Class Tax Relief and Job Creation Act of 2012''

                    TITLE I--JOB CREATION INCENTIVES

                   Subtitle B--EPA Regulatory Relief

H1102,1103,1104,1105/S--

Current law
      Section 112 of the Clean Air Act (42 U.S.C. 7412) 
requires the Environmental Protection Agency (EPA) to 
promulgate Maximum Achievable Control Technology (MACT) 
standards for ``major'' sources of emissions of 187 hazardous 
air pollutants (HAPs) and Generally Available Control 
Technology (GACT) standards for smaller (``area'') sources of 
HAP emissions. Section 129 of the act (42 U.S.C. 7429) requires 
EPA to promulgate MACT standards for solid waste combustion 
units. Under the act, existing boilers would be required to 
comply with the applicable emission standards within 3 years of 
the effective date of promulgated regulations, with a 
possibility of a one-year extension for individual sources if 
necessary for the installation of controls. Existing solid 
waste incinerators would be required to meet the standards no 
later than 5 years after promulgation. On March 21, 2011, EPA 
finalized four related rules applicable to boilers and 
commercial and industrial solid waste incinerator (CISWI) 
units. Three rules established applicable MACT and GACT 
standards for boilers and MACT standards for CISWI units. The 
fourth rule (established under authority of the Resource 
Conservation and Recovery Act) clarified when materials used as 
fuel in a combustion unit would be defined as ``solid waste'' 
(a definition necessary to determine whether a combustion unit 
would be subject to the CISWI standards rather than the less 
stringent standards for boilers). EPA stayed the effective date 
of its major sources and CISWI emission standards pending 
reconsideration. EPA expects to complete the reconsideration by 
April 2012. On January 9, 2012, a district court vacated EPA's 
stay of the major sources and CISWI rules.
House bill
      Sections 1102-1105 apply to EPA's four March 2011 rules. 
Each rule would be revoked and EPA required to promulgate new 
standards 15 months after the date of enactment (Section 1102). 
In establishing the relevant emission standards, the 
Administrator would be required to choose the ``least 
burdensome'' regulatory alternatives. Further, EPA would be 
required to establish standards that can be met under actual 
operating conditions consistently and concurrently with other 
standards (Section 1105). The compliance date for the air 
emission standards would be no earlier than 5 years after the 
date of the new regulation and could take feasibility, cost, 
and other factors into account in setting the compliance date 
(Section 1103). In promulgating new rules defining materials 
that are solid waste when used as a fuel, EPA would be required 
to adopt the definition of terms promulgated by the agency in a 
December 2000 CISWI rule (Section 1104).
Senate bill
      No provision.
Conference substitute
      No provision.

TITLE II--EXTENSION OF CERTAIN EXPIRING PROVISIONS AND RELATED MEASURES

                 Subtitle B--Unemployment Compensation

 PART 1--REFORMS OF UNEMPLOYMENT COMPENSATION TO PROMOTE WORK AND JOB 
                                CREATION

H2121,2122,2123,2124,2125,2126,2127/S--

Current law
      Federal unemployment law does not contain explicit job 
search requirements for the receipt of regular state 
unemployment compensation (UC). Through interpretation of the 
framework of the Federal unemployment laws contained within the 
Social Security Act (SSA) and in the Federal Unemployment Tax 
Act (FUTA), it is generally understood that workers must have 
lost their jobs through no fault of their own and must be able, 
available, and willing to work. Variations exist in state law 
requirements concerning ability and availability to work. All 
states have work search requirements in state law or regulation 
in order for an individual to receive regular UC benefits. Most 
state laws require evidence of ability to work through the 
filing of claims and registration for work at a public 
employment office. Availability for work is often translated to 
mean being ready, willing, and able to work. Meeting the 
requirement of registration for work at a public employment 
office may be considered as evidence of availability in some 
states. There are often particular requirements and/or 
exceptions for those workers on temporary layoff and for 
workers that find employment through union hiring halls. 
Section 202(c)(A)(ii) of the Federal-State Extended 
Unemployment Compensation Act of 1970 (P.L. 97-373), as 
amended, does explicitly require active job search. However, 
the method of determining active job search is left to the 
determination of the States.
      Federal law does not require minimum educational 
standards as a condition of benefit receipt. Section 303(a)(10) 
of the SSA requires any claimant who has been referred to 
reemployment services pursuant to the profiling system under 
Section 303(j)(1)(B) to participate in such services or in 
similar services unless the state agency charged with the 
administration of the state law determines (1) such claimant 
has completed such services; or (2) there is justifiable cause 
for such claimant's failure to participate in such services. 
Section 303(j) requires the state use a system of profiling all 
new claimants for regular compensation. The profiling system 
must: (1) identify which claimants will be likely to exhaust 
regular compensation and will need job search assistance 
services to make a successful transition to new employment; and 
(2) refer the identified claimants to reemployment services 
(including job search assistance services) that are available 
under any state or Federal law. Section 3304(a)(8) of the 
Internal Revenue Code (IRC) requires, as a condition for 
employers in a state to receive normal credit against the 
Federal tax, that a state's unemployment benefits laws provide 
that compensation shall not be denied to an individual for any 
week because he is in training with the approval of the state 
agency (or because of the application, to any such week in 
training, of state law provisions relating to availability for 
work, active search for work, or refusal to accept work). A 
recent Training and Employment Guidance Letter (TEGL) No. 21-
08, among other items, strongly encouraged states to broaden 
their definition of approved training for UC beneficiaries 
during economic downturns.
      Section 3304(a)(4) of the IRC and Section 303(a)(5) of 
the SSA set the withdrawal standards for States to use funds 
within the State account in the Unemployment Trust Fund (UTF). 
All funds withdrawn from the unemployment fund of the state 
shall be used solely in the payment of unemployment 
compensation, exclusive of expenses of administration. Few 
exceptions exist; these include, for instance, withholding for 
tax purposes, for child support payments, to repay UI 
overpayments or covered unemployment compensation debt, and for 
benefits for the Self-Employment Assistance program and the 
Short-Time Compensation program. Section 303(a)(1) requires 
that the state UC program personnel be merit employees.
      Section 3306(t) of the Federal Unemployment Tax Act 
(FUTA) defines the Self-Employment Assistance (SEA) program. 
Section 303(a)(5) of the Social Security Act permits the use of 
expenditures from the Unemployment Trust Fund (UTF) for SEA. 
The regular UC program generally requires unemployed workers to 
be actively seeking work and to be available for wage and 
salary jobs as a condition of eligibility for UC benefits. In 
states that have opted to create SEA programs under current 
law, SEA provides allowances in the same amount as regular UC 
benefits to individuals who (1) would otherwise be eligible for 
regular UC and (2) have been identified as likely to exhaust 
regular UC benefits. Under SEA a participating individual is 
not subject to worker search requirements so long as the 
individual is participating in entrepreneurial training or 
other activities.
      Section 303(g)(1) of the Social Security Act and Section 
3304(a)(4)(D) of the Internal Revenue Code (IRC) allow states 
but do not require states to offset UC payments by non-fraud 
overpayments. States may opt in state law to waive deductions 
if it would be contrary to equity and good conscience.
      There are no specific federal laws or regulations related 
to uniform data elements for improved data matching in the 
Federal-state unemployment compensation program. Section 
303(a)(6) of the SSA requires states to make reports of 
information and data as required by the U.S. Labor Secretary. 
But current Federal law contains no precise requirements 
regarding codes or identifiers attached to UC, Emergency 
Unemployment Compensation (EUC08), or Extended Benefit (EB) 
program data or any other data standards.
      Federal law does not specifically authorize drug testing 
of applicants as a condition of UC benefit eligibility. No 
state currently requires drug tests as a condition of 
eligibility for unemployment benefits. There are states that 
do, however, have state law provisions related to 
disqualification for previously failed drug tests/use of 
illegal drugs during prior employment.
House bill
      Section 2121 would add new federal law requirements for 
state UC eligibility related to being ``able, available, and 
actively seeking work''--with the latter specifically defined 
under federal law, including at least (1) registering for 
employment services within 10 days after initial filing for UC 
benefits; (2) posting a resume, record, or other application 
for employment through a state agency database; and (3) 
applying for work under state requirements [effective for weeks 
beginning after end of first state legislative session after 
enactment]. No new funds would be provided for such activities. 
There would be no exceptions for those on temporary lay-off 
with expectation of recall, union members, or for those who are 
striking.
      Section 2122 would add new federal law requirements for 
state UC eligibility: (1) UC claimants must meet minimum 
education requirements: either earn HS diploma, attain GED, or 
enroll/make satisfactory progress in classes leading to HS 
diploma or GED (states would be allowed to waive this 
educational requirement if state law deems it unduly 
burdensome); and (2) UC claimants referred to reemployment 
services must participate. Additionally, the proposal would add 
a new federal law provision to stipulate that UC may not be 
denied to an individual enrolled/making satisfactory progress 
in education or state-approved job training [effective for 
weeks beginning after end of first state legislative session 
after enactment].
      Section 2123 would authorize under federal law up to 10 
state UC demonstration projects a year (lasting up to 3 years). 
Demonstration projects would test and evaluate measures 
designed to expedite the reemployment of individuals who 
establish initial eligibility for regular UC or to improve the 
effectiveness of state reemployment efforts. States would 
provide a general description of the proposed demonstration 
project. The description would include: (1) a description of 
the proposed project, its authority under State law, and the 
period during which the project would be conducted; (2) the 
specifics of any waiver to Federal law and the reason for such 
waiver; (3) a description of the goals and expected outcomes of 
the project; (4) assurances and supporting analysis that the 
project would not result in a net increase cost to the state's 
Unemployment Trust Fund (UTF); (5) a description of the impact 
evaluation; and (6) assurances of reports required by the U.S. 
Labor Secretary. Section 2123 would allow the U.S. Labor 
Secretary to waive the withdrawal standard and/or merit 
employee requirements if requested by the state (state UTF 
funds would be allowed to be used for purposes other than 
paying unemployment benefits). Authority ends 5 years after 
date of enactment of the section. Administrative grants to the 
states for administration of the regular UC program may be used 
for an approved project.
      Section 2124 would require the U.S. Department of Labor 
(U.S. DOL) to develop and maintain model language for states to 
use in enacting SEA programs for regular UC claimants (as 
authorized under current federal law); this model language 
would be developed through U.S. DOL consultation with 
employers, labor organizations, state UC agencies, and other 
relevant program experts; would require U.S. DOL to provide 
technical assistance and guidance to states in enacting, 
improving, and administering SEA programs; would require U.S. 
DOL to establish reporting requirements for state SEA programs, 
including reporting (1) on the number of jobs and businesses 
created by SEA programs and (2) the federal and state tax 
revenues collected from such businesses and their employees; 
and would require U.S. DOL to coordinate with the Small 
Business Administration to ensure adequate funding for the 
entrepreneurial training of SEA participants in states with SEA 
programs.
      Section 2125 would require states to recover 100% of any 
erroneous overpayment by reducing up to 100% of the UC benefit 
in each week until the overpayment is fully recovered. The 
proposal would not allow states to waive such deduction if it 
would be contrary to equity and good conscience. Section 2125 
also would create authority for states to recover Federal 
Additional Compensation (FAC) overpayments through deductions 
to regular unemployment compensation.
      Section 2126 would require that the U.S. Labor Secretary 
designate standard data elements for any information required 
under title III or title IX of the SSA. This section would 
require the standard data elements incorporate interoperable 
standards that have been developed and used by an international 
standards body (as established by the Office of Management and 
Budget (OMB) and the U.S. Labor Secretary); intergovernmental 
partnerships; and Federal entities with contracting and 
financial assistance authority. In addition, Section 106(a) of 
this proposal would require the U.S. Labor Secretary, in 
consultation with an OMB interagency working group and States, 
to designate standard data elements that, to the extent 
practicable: (1) Make use of a widely-accepted, non-
proprietary, digital, searchable format; (2) Are consistent 
with and use relevant accounting principles; (3) Are able to be 
upgraded on a continual basis; and (4) Incorporate non-
proprietary standards (such as the eXtensible Business 
Reporting Language).
      Section 2127 would clarify federal law to allow (but 
would not require) drug testing of UC applicants.
Senate bill
      No provision.
Conference substitute
      The conference agreement follows the House bill with 
regard to specifying new federal minimum standards for state 
unemployment compensation eligibility related to being ``able, 
available, and actively seek work.'' (See also part 3 of this 
section with regard to job search requirements related to 
Federal unemployment benefits.)
      The conference agreement follows the House bill with 
regard to State flexibility (i.e. new waiver authority), but 
with the following modifications:
            (1) Permits a total of no more than 10 States to 
        receive waivers;
            (2) Specifies that waivers may only be used to 
        operate programs providing subsidies for employer-
        provided training or for direct disbursements (such as 
        wage subsidies) to employers who hire individuals 
        receiving UC benefits, not to exceed the weekly benefit 
        amount, to cover part of the cost of their wages, and 
        provided that the overall wage is greater than the 
        unemployment benefit the individual had been receiving;
            (3) Limits the operation of State waiver programs 
        to no more than 3 years, and specifies that the waiver 
        programs cannot be extended;
            (4) Requires the state to evaluate their waiver 
        programs; and
            (5) Requires States to provide assurances that any 
        employment meets the State's suitable work requirement 
        and requirements of section 3304(a)(5) of the Internal 
        Revenue Code and that the waiver programs end by 
        December 31, 2015.
      The conference agreement follows the House bill and 
incorporates S. 1826 with regard to the Self-Employment 
Assistance Program, while also authorizing States to operate 
SEA programs to assist individuals eligible for benefits under 
the Emergency Unemployment Compensation (EUC) and Extended 
Benefit (EB) programs, and providing funds to assist States 
with the administration of such programs.
      The conference agreement includes a new provision based 
on S. 1333 authorizing work sharing programs and providing 
program and administrative funding for that purpose.
      The conference agreement follows the House bill with 
regard to requiring States to offset current State benefits to 
recover prior overpayments of State, other States', or Federal 
unemployment benefits. With regard to efforts to recover 
overpayments owed to other States and the Federal government, 
the conference agreement requires each State to apply hardship 
exceptions and related terms that follow State practice used to 
recover overpayments of its own State benefit funds.
      The conference agreement follows the House bill with 
regard to the data standardization provisions.
      The conference agreement follows the House bill with 
regard to drug testing provisions, with the modification that 
drug screening and testing is permitted in any State, but only 
in cases in which the individual applying for unemployment 
benefits either (1) was terminated from their prior employment 
because of unlawful drug use (2) is applying for work for which 
passing a drug test is a standard eligibility requirement.

            PART 2--PROVISIONS RELATING TO EXTENDED BENEFITS

H2142,2143,2144/S201,202

Current law
      Under P.L. 110-252, as amended, the authorization of the 
EUC08 program expires the week ending on or before March 6, 
2012. Individuals receiving benefits in any tier of EUC08 would 
be able to finish out that tier of benefits only 
(grandfathering for current tier only). No EUC08 benefits--
regardless of tier--are payable for any week after August 15, 
2012. The current structure of unemployment benefits available 
through the EUC08 program is: Tier I: up to 20 weeks of 
unemployment benefits (available in all states); Tier II: up to 
14 weeks (available in all states); Tier III: up to 13 weeks 
(available in states with a total unemployment rate (TUR) of at 
least 6% or an insured unemployment rate (IUR) of at least 4%); 
Tier IV: up to 6 weeks (available in states with a TUR of at 
least 8.5% or an IUR of at least 6%). Section 4001(e) of P.L. 
110-252, as amended allows states the option to pay EUC08 
before EB.
      Under permanent law (P.L. 97-373), EB benefits are 
financed 50% by the federal government (through federal 
unemployment taxes; i.e., FUTA) and states fund the other half 
(50%) of EB benefit costs through their state unemployment 
taxes (SUTA). ARRA (P.L. 111-5, as amended) temporarily changed 
the federal-state funding arrangement for the EB program. 
Currently, the FUTA finances 100% of sharable EB benefits 
through March 7, 2012. P.L. 111-312 made some temporary 
technical changes to certain triggers in the EB program, which 
allow states to temporarily use lookback calculations based on 
three years of unemployment rate data (rather than the 
permanent law lookback of two years of data) as part of their 
EB triggers if states would otherwise trigger off or not be on 
a period of EB benefits. This temporary option to use three-
year EB trigger lookback expires the week ending on or before 
February 29, 2012.
      P.L. 111-5, as amended, temporarily increased the 
duration of extended unemployment benefits for railroad 
workers. Railroad workers who previously were not eligible for 
extended unemployment benefits because they did not have 10 
years of service may be eligible for benefits of up to 65 days 
within an extended period consisting of seven consecutive two-
week registration periods. Railroad workers who previously were 
eligible for extended unemployment benefits of up to 65 days 
(because they had 10 years of service) may now be eligible for 
benefits of up to 130 days within an extended period consisting 
of 13 consecutive two-week registration periods. P.L. 111-312 
extended the ARRA provisions by one year to June 30, 2011. 
Under P.L. 111-312, the special extended unemployment benefit 
period could begin no later than December 31, 2011. P.L. 112-78 
extended the temporary extended railroad unemployment benefit 
(authorized under ARRA (P.L. 111-5), as amended) for two months 
through February 29, 2012, to be financed with funds still 
available under P.L. 111-312.
House bill
      Section 2142 would extend the authorization of Tiers I 
and III of EUC08 until the week ending on or before January 31, 
2013. The duration and conditions for availability of Tier II 
would be altered. There would be no benefits payable after that 
date. (There would be no grandfathering of benefits.) Tier I 
would continue to offer up to 20 weeks in all states, Tier II 
would offer up to 13 weeks (rather than 14) and would be 
available in states with at least 6.0% TUR or an IUR of at 
least 4% (rather than in all states). Tiers III and IV would 
not be reauthorized. Note: Included in this subsection was an 
intent to require states to pay EUC08 before any EB 
entitlement. However, the version passed by the House would 
require states to pay EB before EUC08 and will need correction 
to reflect the intended ordering of benefits. (At the time of 
House passage, the authorization for all EUC08 tiers would have 
expired on the week ending on or before January 3, 2012 and no 
EUC08 benefit would have been payable for any week after June 
9, 2012.)
      Section 2143 would extend the 100% federal financing of 
EB through January 31, 2013, as well as the option for states 
to use three-year lookback in their EB triggers until the week 
ending on or before January 31, 2013. (At the time of House 
passage, the FUTA financed 100% of sharable EB benefits through 
January 4, 2012 and the three-year lookback would have expired 
on the week ending on or before December 31, 2011.)
      Section 2144 would extend the temporary extended railroad 
unemployment benefit (authorized under ARRA (P.L. 111-5), as 
amended) for 13 months through January 31, 2013, to be financed 
with funds still available under P.L. 111-312. (At the time of 
House passage, the special extended unemployment benefit period 
could begin no later than December 31, 2011.)
Senate bill
      Section 201 would extend the authorization for the EUC08 
program (as structured under current law) until the week ending 
on or before March 6, 2012. No EUC08 benefits--regardless of 
tier--would be payable for any week after August 15, 2012. (At 
the time of Senate passage, the authorization for all EUC08 
tiers would have expired on the week ending on or before 
January 3, 2012 and no EUC08 benefit would have been payable 
for any week after June 9, 2012.) This section would extend the 
100% federal financing of EB through March 7, 2012. This 
section would also extend the option for states to use the 
three-year lookback in their EB triggers until the week ending 
on or before February 29, 2012. (At the time of Senate passage, 
the FUTA financed 100% of sharable EB benefits through January 
4, 2012 and the three-year lookback would have expired on the 
week ending on or before December 31, 2011.)
      Section 202 would extend the temporary extended railroad 
unemployment benefit (authorized under ARRA (P.L. 111-5), as 
amended) for two months through February 29, 2012, to be 
financed with funds still available under P.L. 111-312. (At the 
time of Senate passage, the special extended unemployment 
benefit period could begin no later than December 31, 2011.)
Conference substitute
      The conference agreement follows the House bill in 
continuing the operation of the Federal Emergency Unemployment 
Compensation (EUC) program beyond its current expiration at the 
end of February 2012, with the following modifications:
            (1) The authorization of the EUC program is 
        extended through the end of December 2012;
            (2) The EUC program will not continue to provide 
        benefits after December 2012 (i.e. there will be no 
        ``phase-out'' of benefits beyond December 2012);
            (3) EUC benefits would continue to be payable in up 
        to four tiers as under current law. However, as the 
        table below reflects, in the case of tiers two through 
        four, higher total unemployment rate (TUR) ``triggers'' 
        will apply from June through December 2012, as follows:

------------------------------------------------------------------------
            March through May   June through August   September through
 EUC Tier          2012                 2012            December 2012
------------------------------------------------------------------------
1........  20 weeks in all      20 weeks in all      14 weeks in all
            states.              states.              states
2........  14 weeks in all      14 weeks in 6% or    14 weeks in 6% or
            states.              higher states.       higher states
3........   13 weeks in 6% or   13 weeks in 7% or    9 weeks in 7% or
            higher states.       higher states.       higher states
4........  6 weeks in 8.5% or   6 weeks in 9% or     10 weeks in 9% or
            higher states (16    higher states.       higher states
            weeks if not on
            EB).
------------------------------------------------------------------------

            (4) Through May 2012 only, individuals who have not 
        already received up to 20 weeks of EB program benefits 
        due to the application of that program's ``3-year 
        lookback'' would be eligible to receive up to an 
        additional 10 weeks of benefits under Tier 4 of the EUC 
        program (that is, in addition to the six weeks 
        otherwise available), provided they are in a State with 
        an unemployment rate above 8.5%, and with the condition 
        that no such individual could receive a total of more 
        than 99 weeks of benefits from all sources (counting 
        State, EUC and EB programs).
            (5) As the table above reflects, weeks of benefits 
        payable in tiers 1, 3 and 4 in September through 
        December 2012 would be adjusted, with tier 1 dropping 
        from 20 to 14 weeks, tier 3 dropping from 13 to 9 
        weeks, and tier 4 rising from 6 to 10 weeks. In all, 
        these changes will result in the maximum weeks of 
        benefits payable under the EUC program falling from 53 
        weeks under current law (in the case of States with 
        unemployment rates today at or above 8.5%) to a maximum 
        of up to 47 weeks (in the case of States with an 
        unemployment rate of 9% or higher) from September 
        through December 2012. In each period, an individual's 
        eligibility for a tier of benefits will be determined 
        according to the State's unemployment rate in that 
        period. For example, individuals exhausting tier 2 of 
        benefits will be eligible to begin tier 3 of benefits 
        in the spring only if their State has an unemployment 
        rate of at least 6%, while those exhausting tier 2 in 
        the summer and fall months can qualify for tier 3 
        benefits only if they are in a State with an 
        unemployment rate of at least 7%.
      The conference agreement specifies that States are 
required to pay EUC benefits before any benefits under the EB 
program.
      The conference agreement follows the House bill in terms 
of extending the current temporary 100% Federal financing of EB 
as well as the three-year lookback used to determine State 
eligibility for EB, with the modification that in each case the 
extension would apply through December 2012.
      The conference agreement follows the House bill and 
Senate amendment with regard to the temporary extended railroad 
unemployment benefit program, with the modification that the 
extension would apply through December 2012.

     PART 3--IMPROVING REEMPLOYMENT STRATEGIES UNDER THE EMERGENCY 
                   UNEMPLOYMENT COMPENSATION PROGRAM

H2161,2162,2163,2164,2165/S--

Current law
      Federal unemployment law does not contain explicit job 
search requirements for the receipt of EUC08 benefits. Federal 
unemployment law does not require states to have work search 
requirements in the regular UC program. However, all states 
have work search requirements in state law or regulation in 
order for an individual to receive regular UC benefits. Section 
202(a)(3)(A)(ii) of the Federal-State Extended Unemployment 
Compensation Act of 1970 (P.L. 97-373), as amended, explicitly 
requires active job search for receipt of Extended Benefits 
(EB). However, the method of determining active job search is 
left to the determination of the states.
      Federal law does not require minimum educational 
standards or reemployment service participation as a condition 
of EUC08 benefit receipt.
      P.L. 110-252, as amended, requires that all EUC08 
benefits be paid directly to the unemployed who have exhausted 
entitlement to all regular UC benefits. There is no provision 
for demonstration projects.
      Section 4005(c)(1) of P.L. 110-252, as amended allows 
states but does not require states to offset EUC08 payments by 
non-fraud overpayments. Any offset under current law may not be 
more than 50% of total EUC08 benefit.
      Section 4001(g) of the Supplemental Appropriations Act of 
2008 (P.L. 110-252), as amended, prevents states from 
decreasing the average weekly benefit amount of regular UC 
payments. That is, a state is not permitted to pay an average 
weekly UC benefit that is less than what would have been paid 
under state law prior to what was in effect on June 2, 2010. 
This ``nonreduction rule'' is a condition of the EUC08 Federal-
State agreement of P.L. 110-252, as amended.
House bill
      Section 2161 would require active work search for EUC08 
entitlement where active work search must require at least the 
following: individuals to register with reemployment services 
within 30 days, individuals post a resume, record, or other 
application for employment on a database required by the state, 
and individuals apply for work in such a manner as required by 
the state.
      Section 2162 would require EUC08 beneficiaries (1) to 
participate in reemployment services if referred and (2) to 
actively search for work, effective on or after 30 days of 
enactment for those individuals who enter a tier of EUC08. This 
section would require individuals to meet the minimum 
educational requirements (high school degree, GED, or enrolled 
in program) created earlier in Section 2122 of the proposal 
(amending Section 303(a)(10)(B) of the SSA). The participation 
requirement for reemployment services would be waived if 
individuals have already completed this requirement or if there 
is ``justifiable cause'' as specified by guidance to be issued 
by the U.S. DOL Secretary within 30 days. This section would 
authorize up to $5 of an individual's EUC08 benefit each week 
to be diverted (at state option) to fund these reemployment 
services and activities.
      Section 2163 would allow for up to 20% of all EUC08 
recipients in each state to be diverted into demonstration 
projects. The demonstration projects would need to be designed 
to expedite reemployment. Allowable demonstration activities 
would include: subsidies for employer provided training; work 
sharing or Short-Time Compensation; enhanced employment 
strategies and services; SEA programs; services that enhance 
skills that would assist in obtaining reemployment; direct 
reimbursements to employers who hire individuals that were 
receiving EUC08; and other innovative activities not otherwise 
described. Authority for demonstration projects would end when 
EUC08 ceases to be payable. Demonstration projects would be 
required to provide appropriate reemployment services and 
assurances of no net increase in cost to the EUC08 program. 
This section would require states to provide information on 
demonstration projects for reporting and evaluation purposes.
      Section 2164 would require states to offset an 
individual's EUC08 benefit if they received an unemployment 
benefit overpayment. States would be required to offset by at 
least 50% of the EUC08 benefit in any week.
      Section 2165 would repeal the ``nonreduction rule'' in 
terms of the regular UC benefit amount. This would give states 
the option to decrease average weekly benefit amounts without 
invalidating their EUC08 Federal-state agreements.
Senate bill
      No provision.
Conference substitute
      The conference agreement follows the House bill with 
regard to explicit job search requirements, with several 
modifications designed to closely align the work search 
requirements between the EUC and EB programs. In order to be 
eligible for benefits in any week, the state agency shall find 
that the individual is able to work, available to work, and 
making reasonable efforts to secure suitable work.
      For purposes of this provision, the term ``making 
reasonable efforts to secure suitable work'' means, with 
respect to an individual, that such individual: (1) Is 
registered for employment services in such manner and to such 
extent as prescribed by the state agency; (2) Has engaged in an 
active search for employment that is appropriate in light of 
the individual's skills, capabilities and work history, and 
includes a number of employer contacts that is consistent with 
reasonable standards communicated to the individual by the 
state; (3) Has maintained a record of such work search, 
including employers contacted, method of contact and date 
contacted; and (4) When requested, has provided such work 
search record to the state agency. The Secretary of Labor shall 
prescribe to each state a minimum number of claims for which 
work search records must be audited on a random basis in any 
given week.
      The conference agreement follows the House bill with 
regard to the requirement that EUC recipients participate in 
reemployment services if referred and as well as actively 
search for work. The conference agreement follows the Senate 
amendment with regards to there being no minimum education 
requirements for individuals receiving EUC benefits.
      The conference agreement follows the House bill with 
regard to the requirement that States provide reemployment 
services and reemployment and eligibility assessment activities 
to long-term unemployed individuals who begin receiving EUC 
benefits and throughout their time collecting EUC benefits. The 
conference agreement follows the Senate amendment with regard 
to no State authority to reduce EUC benefits to support the 
cost of such reemployment services and activities. In its 
place, the conference agreement provides new one-time funding 
to States to support the cost of such reemployment services and 
activities.
      The conference agreement follows the Senate amendment 
with respect to no additional State flexibility to assist the 
long-term unemployed with improved reemployment services using 
EUC funds.
      The conference agreement follows the House bill with 
regard to requiring States to offset current Federal benefits 
to recover prior overpayments of State, other States', or 
Federal unemployment benefits. With regard to efforts to 
recover such overpayments owed to other States and the Federal 
government, the conference agreement requires each State to 
apply hardship exceptions and related terms that follow State 
practice used to recover overpayments of its own State benefit 
funds.
      The conference agreement modifies the House bill with 
regard to effect of the current ``nonreduction rule,'' which 
generally blocks the payment of Federal EUC funds to States 
that have reduced State unemployment benefits. Several States, 
in order to address solvency have passed laws to reduce future 
State benefit amounts, and others may be considering doing the 
same. Thus, the continued application of the ``nonreduction 
rule'' (if not adjusted) would bar such States from receiving 
EUC funds otherwise provided under this legislation. For this 
reason, the conference agreement changes the effective date of 
the non-reduction rule to March 1, 2012 in order to allow for 
changes states have made (i.e. both those that have already 
enacted laws changing benefit amounts, as well as those with 
legislation pending that would do so),'' this permits States to 
adjust benefits as they have planned, while remaining eligible 
for Federal EUC funds throughout CY 2012.

                       Subtitle D--TANF Extension

H2302/S312

Current law
      The Temporary Payroll Tax Cut Continuation Act of 2011 
(P.L. 112-78) provided program authorization and funding for 
most Temporary Assistance for Needy Families (TANF) grants 
through February 29, 2012. It provided authority and funding 
for state family assistance grants (the basic block grant), 
healthy marriage and responsible fatherhood grants, mandatory 
child care grants, tribal work program grants, matching grants 
for the territories, and research funds. Grants are funded at 
the same level as in FY2011, and paid on a pro-rated quarterly 
basis. No funding was provided for TANF supplemental grants. 
The TANF contingency fund was provided an FY2012 appropriation 
in legislation enacted in 2010, P.L. 111-242.
House bill
      Section 2302 provides FY2012 appropriations for TANF 
state family assistance grants, healthy marriage and 
responsible fatherhood grants, mandatory child care grants, 
tribal TANF work programs, matching grants for the territories, 
and research funds. FY2012 grants are provided at the same 
level as were provided in FY2011.
Senate bill
      Section 312 extends program authorization and funding for 
TANF through February 29, 2012. Grants are funded at the same 
level as in FY2011, and paid on a pro-rated quarterly basis. 
(Provision is the same as current law. It is identical to that 
subsequently enacted in P.L. 112-78.)
Conference substitute
      The conference agreement follows the House bill with 
technical corrections to ensure the provisions operate as 
intended. Section 2302(c)(1) is revised by changing the year to 
2013 instead of 2012 to correct a drafting error. Section 
2302(c)(2)(A) is revised by changing the year to 2012 instead 
of 2011 to correct a drafting error. Section 2302(i) is revised 
by striking ``or section 403(b) of the Social Security Act'' to 
reflect the intent that TANF contingency funds are not affected 
by this bill and that they continue as previously authorized 
and appropriated for FY2012, and also to update the provision 
to add a reference the Temporary Payroll Tax Cut Continuation 
Act of 2011 which extended TANF through February 29, 2012.
H2303,2304,2305/S--

Current law
      States are required to report case- and individual-level 
demographic, monthly financial and monthly work participation 
information to the Department of Health and Human Services 
(HHS) on a quarterly basis.
      There are no relevant provisions in current law regarding 
Section 2304 of the House bill.
House bill
      Section 2303 requires HHS to issue a rule designating 
standard data elements for any category of information required 
to be reported under TANF. The rule would be developed by HHS 
in consultation with an interagency workgroup established by 
the Office of Management and Budget (OMB) and with 
consideration of state and tribal perspectives. To the extent 
practicable, the standard data elements required by the rule 
would be non-proprietary and incorporate the interoperable 
standards developed and maintained by other recognized bodies. 
To the extent practicable, the data reporting standards 
required by the rule would incorporate a widely-accepted, 
nonproprietary, searchable, computer-readable format; be 
consistent with and implement applicable accounting principles; 
be capable of being continually upgraded as necessary; and 
incorporate existing nonproprietary standards, such as the 
``eXtensible Business Reporting Language.'' The data 
standardization requirement would take effect on October 1, 
2012.
      Section 2304 requires states to maintain policies and 
practices to prohibit TANF assistance from being used in any 
transaction in liquor stores, casinos and gaming 
establishments, and strip clubs. States have up to 2 years 
after enactment to implement such policies and practices. 
States that fail to report actions they have taken are at risk 
of being penalized by up to a 5% reduction in their block 
grant.
      Section 2305 makes technical corrections to the TANF 
statute.
Senate bill
      No provision.
Conference substitute
      The conference agreement follows the House bill with the 
following technical modifications to Section 2303: Section 
2303(a) is modified to clarify that the goal of the provision 
is to standardize the data exchange processes, not standardize 
data elements. Section 2303(b) is modified to require that the 
Department of Health and Human Services issue proposed rules 
for this section within 12 months of the enactment of this 
section, and that the agency finalize these regulations within 
24 months of the enactment of this section.
      The conference agreement follows the House bill with the 
following technical modifications to Section 2304: Section 
2304(a)(12)(A) is modified to clarify that States are required 
to block access to TANF funds provided on electronic benefit 
transfer cards at ATMs and point-of-sale devices in specified 
locations. Section 2304(a)(12)(B) is modified by adding a 
definition of electronic benefit transfer transactions. Section 
2304(b)(16)(A) is modified to clarify that each State must 
provide a report to the Secretary of Health and Human Services 
regarding their implementation of this provision.

                   TITLE III--FLOOD INSURANCE REFORM

                    REFORM OF PREMIUM RATE STRUCTURE

H3005(a),3005(b),3005(c),3005(d),3005(e)/S--

Current law
      The Federal Emergency Management Agency (FEMA) is 
authorized to increase chargeable risk premium rates for flood 
insurance for any properties within any single risk 
classification 10% annually. 42 U.S.C. 4015 (e)
      Full actuarial rates begin on the effective date of a 
revised Flood Hazard Boundary Map or Flood Insurance Rate Map 
for a community. Sec.  61.11
      FEMA is authorized to establish risk premium rates for 
flood insurance coverage. The agency is also authorized to 
offer ``chargeable'' (subsidized) premium rates for pre-FIRM 
buildings. Post-FIRM structures (i.e., buildings constructed on 
or after December 31, 1974) and the effective date of the FIRM, 
whichever is later, must pay the full actuarial risk premium 
rates. Sec.  61.8
      Pre-FIRM structures continue to receive subsidized 
premium rates after the lapsed policy provided the policyholder 
pays the appropriate premium to reinstate the policy.
      FEMA is authorized to determine whether a community has 
made adequate progress on the construction of a flood 
protection system involving federal funds. Adequate progress 
means the community has provided FEMA with necessary 
information to determine that 100% of the cost has been 
authorized, 60% has been appropriated or 50% has been expended. 
Sec.  61.12
House bill
      Section 3005(a) would increase the annual cap on premium 
increases from 10% to 20%.
      Section 3005(b) would clarify that newly mapped 
properties are phased-in to full actuarial, flood insurance 
rates at a consistent rate of 20% per year over 5 years and 
requires that newly mapped property owners pay 100% of 
actuarial rates at the end of the 5 year phase-in period. For 
areas eligible for the lower-cost Preferred Risk Policy (PRP) 
rates, the phase-in begins after the expiration of their PRP 
rates. For all properties, the phase-in of rates only applies 
to residential properties occupied by their owner or a bona 
fide tenant as a primary residence.
      Section 3005(c) would require that, beginning one year 
after enactment, the premium rate subsidies (pre-FIRM 
discounts) for certain properties in the following categories 
be phased-out, with annual rate increases limited by a 20 
percent annual cap. This would apply to commercial properties, 
second and vacation homes (i.e., residential properties not 
occupied by an individual as a primary residence), homes sold 
to new owners, homes damaged or improved (substantial flood 
damage exceeding 50 percent or substantial improvement 
exceeding 30 percent of the fair market value of the property), 
and properties with multiple flood claims (i.e., statutorily 
defined severe repetitive loss properties.)
      Section 3005(d) would remove the eligibility of property 
owners who allow their policies to lapse by choice to receive 
discounted rates on those properties.
      Section 3005(e) would update the standards by which FEMA 
evaluates a community's eligibility for special flood insurance 
rates by considering state and local funding, in addition to 
federal funding, of flood control projects.
Senate bill
      No provision.
Conference substitute
      No provision.

                    MANDATORY PURCHASE REQUIREMENTS

H3003(b)(3),3003(c),3004(a),3007(e),3014,3017,3018/S--

Current law
      There are no relevant provisions in current law regarding 
Section 3003(b)(3) of the House bill.
      FEMA is authorized to enter into arrangements with 
individual private sector property insurance companies or other 
insurers, such as public entity risk sharing organizations. 
Under this Write-Your-Own company arrangement, such companies 
may offer flood insurance coverage under the program to 
eligible applicants. Sec. 62.23
      The NFIP requires the purchase of flood insurance on and 
after March 2, 1974, as a condition of receiving any form of 
federal or federally-related financial assistance for 
acquisition or construction purposes with respect to insurable 
buildings and mobile homes within an identified special flood, 
mudslide, or flood-related erosion hazard area that is located 
within any community participating in the NFIP. Sec.  59.2 The 
mandatory purchase of insurance is required in areas identified 
as being within designated Zones A, A1-30, AE, A99, AO, AH, AR, 
AR/A1-30, AR/AE, AR/AO, AR/AH, AR/A, V1-30, VE, V, VO, M, and 
E. Sec. 64.3
      When FEMA has provided a notice of final flood elevations 
for one or more special flood hazard areas (SFHA) on the 
community's FIRM, the community shall require that all new 
construction and substantial improvements of residential 
structures within Zones A1-30, AE and AH zones on the 
community's FIRM have the lowest flood (including basement) 
elevation to or above the base flood level, unless the 
community is granted an exception by FEMA for the allowance of 
basements. Sec. 60.3(a) Structures in SFHAs that receive any 
form of federal or federally-related financial assistance are 
required to purchase flood insurance. Sec. 59.2(a)
      FEMA is required to provide notice of final base flood 
elevations within Zones A1-30 and/or AE on the community's FIRM 
that is available for public viewing by homeowners in SFHAs. 
Sec. 60.3(e) Structures located in these zones are classified 
as SFHA and are, therefore, required to purchase flood 
insurance. Sec. 59.2(a)
      The NFIP was established to provide flood insurance 
protection to property owners in flood-prone areas. However, 
flood insurance is only available in communities that 
participate in the NFIP. Sec. 59.2 To qualify for flood 
insurance availability a community must apply for the entire 
area within its jurisdiction and shall submit copies of 
legislative and executive actions indicating a local need for 
flood insurance and an explicit desire to participate in the 
NFIP. Sec. 59.22
      There are no relevant provisions in current law regarding 
Section 3018 of the House bill.
House bill
      Section 3003(b)(3) would require lenders or servicing 
companies to terminate policies purchased on behalf of the 
homeowner to satisfy the mandatory purchase requirement within 
30 days of being notified that the homeowner has purchased 
another policy. Lenders would be required to refund any premium 
payments and fees made by the homeowner for the time when both 
policies were in effect. Moreover, the declaration page in the 
insurance policy would be considered sufficient to demonstrate 
having met the mandatory insurance purchase requirements.
      Section 3003(c) would require lenders to accept flood 
insurance from a private company if the policy fulfills all 
federal requirements for flood insurance.
      Section 3004(a) would authorize the Administrator of FEMA 
to delay mandatory purchase requirement for owners of 
properties in newly designated special flood hazard areas. The 
delay would not be longer in duration than 12 months with the 
possibility of two 12 month extensions at the discretion of 
FEMA. Eligible areas defined as an area that meets the 
following three requirements: (1) area with no history of 
special flood hazards; (2) area with a flood protection system 
under improvement; or (3) area has filed an appeal of the 
designation of the area as having special flood hazards. Upon a 
request submitted from a local government authority, FEMA could 
suspend the mandatory purchase for a possible fourth and fifth 
year for certain communities that are making more than adequate 
progress in their construction of their flood protection 
systems.
      Section 3007(e) would clarify that mandatory purchase 
requirement would not apply to a property located in an area 
designated as having a special flood hazard if the owner of 
such property submits to FEMA an elevation certificate showing 
that the lowest level of the primary residence is at an 
elevation that is at least three feet higher than the elevation 
of the 100-year flood plain. FEMA would be required to accept 
as conclusive each elevation certificate unless the 
Administrator conducts a subsequent elevation survey and 
determines that the lowest level of the primary residence in 
question is not at an elevation that is at least three feet 
higher than the elevation of the 100-year flood plain. This 
section would require FEMA to expedite any requests made by an 
owner of a property showing that the property is not located 
within the area having special flood hazards. FEMA would be 
prohibited from charging a fee for reviewing the flood hazard 
data with respect to the expedited request and requiring the 
owner to provide any additional elevation data.
      Section 3014 would require the Administrator of FEMA, in 
consultation with affected communities, to notify annually 
residents in areas having special flood hazards that they 
reside in such an area, the geographic boundaries of such 
areas, the requirements to purchase flood insurance coverage 
and the estimated cost of flood insurance coverage.
      Section 3017 would amend the Real Estate Settlement 
Procedures Act of 1974 (RESPA) to require mortgage lenders to 
include specific information about the availability of flood 
insurance in each good-faith estimate.
      Section 3018 would amend RESPA to explicitly state that 
the escrowing of flood insurance payments is required for many 
types of loans.
Senate bill
      No provision.
Conference substitute
      No provision.

                        REFORM OF COVERAGE TERMS

H3004(a),3004(b),3004(d),3004(e),3015,3016,3021/S--

Current law
      There are no relevant provisions in current law regarding 
Section 3004(a) of the House bill.
      The maximum amount of coverage for a single family 
residential structure is $250,000 and $100,000 for personal 
contents. The limit for nonresidential building structures is 
$500,000 and $500,000 for contents. Sec. 61.6
      Insurance coverage under the NFIP is available only for 
property structures and personal contents. Sec. 61.3
      Payment of full policyholder premium must be made at the 
time of application or renewal. Sec. 61.5
      There are no relevant provisions in current law regarding 
Section 3015 of the House bill.
      FEMA is authorized to enter into arrangements with 
individual private insurers to offer flood coverage to 
policyholders. Sec. 62.23
      The Standard Flood Insurance Policy issued under the NFIP 
excludes coverage for hot tubs and spas that are not bathroom 
fixtures, and swimming pools, and their equipment, such as, but 
not limited to, heaters, filters, pumps, and pipes, wherever 
located. Appendix A(1) to Part 62
House bill
      Section 3004(a) would set the minimum deductible levels 
at $1,000 for properties with full-risk rates and $2,000 for 
properties with discounted rates. The section would also 
establish that maximum coverage limits be indexed for 
inflation, starting in 2012.
      Section 3004(b) would authorize insurance coverage under 
policies issued by the NFIP to be adjusted for inflation since 
September 30, 1994. This section would clarify that insured or 
applicants for residential insurance coverage under the NFIP 
would receive up to an ``aggregate liability'' of $250,000 per 
claim rather than a ``total amount'' of $250,000. 
Nonresidential property owners would be insured for a total of 
$500,000 aggregate liability for structure and $500,000 
aggregate liability for content. These amounts would be 
adjusted or indexed for inflation using the percentage change 
over the period beginning on September 30, 1994 through the 
date of enactment of the law.
      Section 3004(d) would authorize the Administrator of FEMA 
to offer optional coverage for additional living expenses, up 
to a maximum of $5,000, as well as to offer optional coverage 
for the interruption of business operations up to a maximum of 
$20,000, provided that FEMA: (1) charges full-risk rates for 
such coverage; (2) makes a finding that a competitive private 
market for such coverage does not exist; and (3) certifies that 
the NFIP has the capacity to offer such coverage without the 
need to borrow additional funds from the U.S. Treasury.
      Section 3004(e) would authorize the Administrator of FEMA 
to offer policyholders the option of paying their premiums for 
one-year policies in installments, and authorizes FEMA to 
impose higher rates or surcharges, or to deny future access to 
NFIP coverage, if property owners attempt to limit their 
coverage to coincide only with the annual storm season by 
neglecting to pay their premiums on schedule.
      Section 3015 would require the Administrator of FEMA to 
notify tenants of a property located in areas having special 
flood hazard, that flood insurance coverage is available under 
the NFIP for contents of the unit or structure leased by the 
tenant, the maximum amount of such coverage for contents, and 
how to obtain information regarding how to obtain such 
coverage.
      Section 3016 would require the Administrator of FEMA to 
notify the holders of direct policies managed by FEMA that they 
could purchase flood insurance directly from an insurance 
company licensed by FEMA to administer NFIP policies. The 
coverage provided or the premiums charged to holders of flood 
insurance policies that are administered by an insurance 
company are no different from those directly managed by FEMA.
      Section 3021 would require under the NFIP that the 
presence of an enclosed swimming pool located at ground level 
or in the space below the lowest flood of a building after 
November 30, and before June 1 of any year, would have no 
effect on the terms of coverage or the ability to receive 
coverage for such building if the pool is enclosed with non-
supporting breakaway walls.
Senate bill
      No provision.
Conference substitute
      No provision.

                   FINANCIAL AND BORROWING AUTHORITY

H3011,3025,3033/S--

Current law
      FEMA is authorized to carry out a program to provide 
financial assistance to states and communities, using amounts 
made available from the National Flood Mitigation Fund for 
planning and carrying out activities designed to reduce the 
risk of flood damage to structures. Such assistance shall be 
made available to states and communities in the form of grants 
to carry out mitigation activities. 44 U.S.C. 4104c(a)
      FEMA is authorized to issue notes or other obligations to 
the Secretary of the Treasury, without the approval of the 
President, to finance the flood insurance program. All funds 
borrowed under this authority shall be deposited in the 
National Flood Insurance Fund. 42 U.S.C. Sec. 4016(a)
      FEMA is authorized to borrow from the U.S. Treasury. 
Borrowed funds must be repaid with interest. 42 U.S.C. 
Sec. 4017 (a)(3)
House bill
      Section 3011 would streamline and reauthorize the Flood 
Mitigation Assistance Program, the Repetitive Flood Claims 
Program and the Severe Repetitive Loss Program in order to 
improve their effectiveness and efficiency. Financial 
assistance would be made available to states and communities in 
the form of grants for carrying out mitigation activities, 
especially with respect to severe repetitive loss structures, 
repetitive loss structures, and to property owners in the form 
of direct grants. This section would expand eligibility for 
mitigation assistance grants from mitigating flood risk to 
mitigating multiple hazards. Amounts provided could be used 
only for mitigation activities that are consistent with 
mitigation plans approved by FEMA. FEMA Administrator could 
approve only mitigation activities that are determined to be 
technically feasible, cost-effective, and result in savings to 
the NFIF. This section would expand eligibility to include 
mitigation activities for the elevation, relocation, and flood-
proofing of utilities (including equipment that serve 
structures). The FEMA Administrator is required to consider 
demolition and rebuilding of properties as eligible activities 
under the mitigation grant programs. This section establishes a 
matching requirement for severe repetitive loss structures of 
up to 100% of all eligible costs and up to 90% for repetitive 
loss structures. Other mitigation activities would be in an 
amount up to 75% of all eligible costs. Failure to award a 
grant within 5 years of receiving a grant application would be 
considered to be a denial of the application and any funding 
amounts allocated for such grant applications would remain in 
the National Flood Mitigation fund. This section authorizes $40 
million in grants to States and communities for mitigation 
activities, $40 million in grants to States and communities for 
mitigation activities for severe repetitive loss structures, 
and $10 million in grants to property owners for mitigation 
activities for repetitive loss structures. This section would 
eliminate the Grants Program for Repetitive Insurance Claims 
Properties. (Sec. 3011(b))
      Section 3025 would establish a reserve fund requirement 
to meet the expected future obligations of the National Flood 
Insurance Program. This section contains phase-in requirements 
similar to H.R. 3121. For example, this section requires the 
Fund to maintain a balance equal to 1% of the sum of the total 
potential loss exposure of all outstanding flood insurance 
policies in force in the prior fiscal year, or a higher 
percentage as the Administrator determines to be appropriate. 
FEMA has the discretion to set the amount of aggregate annual 
insurance premiums to be collected for any fiscal year 
necessary to maintain the reserve ratio, subject to any 
provisions relating to chargeable premium rates and annual 
increases of such rates.
      Section 3033 would require FEMA to submit a report to 
Congress not later than 6 months after enactment of this Act 
setting forth a plan for repayment within 10 years on the 
amounts borrowed from the U.S. Treasury under the NFIP.
Senate bill
      No provision.
Conference substitute
      No provision.

               POLICY CLAIMS AND WRITE-YOUR-OWN INSURERS

H3004,3022,3023,3028,3032/S--

Current law
      The ``Exclusions'' section ``V'' of the Standard Flood 
Insurance Policy stipulates that ``We do not insure a loss 
directly or indirectly caused by a flood that is already in 
progress at the time and date: (1) the policy term begins; or 
(2) coverage is added at your request. Appendix A(1) to Part 
61. Coverage for a new contract for flood insurance coverage 
shall become effective upon the expiration of the 30-day period 
beginning on the date that all obligations for such coverage 
are satisfactorily completed. Sec. 61.11; 42 U.S.C. 4013(c)
      There are no relevant provisions in current law regarding 
Section 3022 of the House bill.
      There are no relevant provisions in current law regarding 
Section 3023 of the House bill.
      There are no relevant provisions in current law regarding 
Section 3028 of the House bill.
House bill
      Sections 3004 and 3032 would clarify the effective date 
of insurance policies covering properties affected by floods in 
progress. Property experiencing a flood during the 30-day 
waiting period following the purchase of insurance would be 
covered for damage to the property that occurs after the 30-day 
period has expired, but only if the property has not suffered 
damage or loss as a result of such flood before the expiration 
of such 30-day period. These sections would require FEMA to 
review the processes and procedures for determining that a 
flood event has commenced or is in progress for purposes of 
flood insurance coverage and report to Congress within 6 
months.
      Section 3022 would require FEMA to grant policy holders 
the right to request engineering reports and other documents 
relied on by the Administrator and/or participating WYO 
companies in determining whether the damage was caused by flood 
or any other peril (e.g., wind). FEMA would also be required to 
provide the information to the insured within 30 days of the 
request for information.
      Section 3023 would authorize FEMA to refuse to accept 
future transfers of policies to the NFIP Direct program.
      Section 3028 would require FEMA to submit a report to 
Congress describing procedures and policies for limiting the 
number of flood insurance policies that are directly managed by 
the Agency to not more than 10% of the total number of flood 
insurance policies in force. After submitting the report to 
Congress, the Administrator would have 12 months to reduce the 
number of policies directly managed by the Agency, or by the 
Agency's direct servicing contractor that is not an insurer, to 
not more than 10% of the total number of flood insurance 
policies in force.
Senate bill
      No provision.
Conference substitute
      No provision.

                   FLOOD RISK ASSESSMENT AND MAPPING

H3006,3007,3008,3013,3014,3018,3020,3024,3026, 3030/S--

Current law
      There are no relevant provisions in current law regarding 
Section 3006 of the House bill.
      FEMA is authorized to identify and publish information 
with respect to all areas within the United States having 
special flood, mudslide, and flood-related erosion hazards. 
Sec.  65.1
      FEMA will only recognize in its flood hazard and risk 
mapping effort those levee systems that meet, and continue to 
meet, minimum design, operation, and maintenance standards that 
are consistent with the level of protection sought through the 
comprehensive floodplain management regulations. Sec. 65.10
      There are no relevant provisions in current law regarding 
Section 3013 of the House bill.
      FEMA publishes in the Federal Registry a notice of the 
proposed flood elevation determination sent to the Chief 
Executive Officer of the community. The agency also publishes a 
copy of the community's appeal or a copy of its decision not to 
appeal the proposed flood elevation determination. Sec. 67.3
      A Standard Flood Insurance policyholder whose property 
has become the subject of a Letter of Map Amendment may cancel 
the policy within the current policy year and receive a premium 
refund. Sec. 70.8 The policy could be canceled provided (1) the 
policyholder was required to purchase flood insurance; and (2) 
the property was located in a SFHA as represented on an 
effective FIRM when the financial assistance was provided. If 
no claim under the policy has been paid or is pending, the full 
premium shall be refunded for the current policy year, and for 
an additional policy year where the insured had been required 
to renew the policy. Sec. 62.5
      FEMA publishes a notice of the community's proposed flood 
elevation determination in a prominent local newspaper at least 
twice during the ten day period immediately following the 
notification of the CEO. Sec. 67.4
      FEMA publishes a notice of the community's proposed flood 
elevation determination in a prominent local newspaper at least 
twice during the ten day period immediately following the 
notification of the CEO. Sec. 67.4 Any owner or lessee of real 
property, within a community where a proposed flood elevation 
determination has been made who believes his property rights to 
be adversely affected by the proposed base flood determination 
may file a written appeal of such determination with the CEO 
within 90 days of the second newspaper publication of the FEMA 
proposed determination. Sec. 67.5
      There are no relevant provisions in current law regarding 
Section 3026 of the House bill.
      The NFIP participating community must provide written 
assurance that they have complied with the appropriate minimum 
floodplain management regulation. Sec. 60.3
House bill
      Section 3006 would establish the Technical Mapping 
Advisory Council (Council) to develop and recommend new mapping 
standards for FIRMs. The Council would include representatives 
from FEMA, the U.S. Geological Survey (USGS), the U.S. Army 
Corps of Engineers (USACE), other federal agencies, state and 
local governments, as well as experts from private stakeholder 
groups. This section would require that there is adequate 
number of representatives from the states with coastlines or 
the Gulf of Mexico and other states containing areas at high-
risk for floods or special flood hazard areas. The Council 
would submit the new mapping standards for 100-year flood 
insurance rate maps to FEMA and the Congress within 12 months 
of enactment and would continue to review those standards for 
four additional years, at which time the Council would be 
terminated. This section would place a moratorium on the 
issuance of any updated flood insurance rate maps from the date 
of enactment until the Council submits to FEMA and Congress the 
proposed new mapping standards. This section would allow for 
the revision, update and change of rate maps only pursuant to a 
letter of map change.
      Section 3007 would direct FEMA to establish new standards 
for FIRMs beginning six months after the Technical Mapping 
Advisory Council issues its initial set of recommendations. The 
new standards would delineate all areas located within the 100-
year flood plain and areas subject to gradual and other risk 
levels, as well as ensure the standards reflect the level of 
protection levees confer. The standard must also differentiate 
between a property that is located in a flood zone and a 
structure located on such property that is not at the same risk 
level for flooding as such property due to the elevation of the 
structure and provide that such rate maps are developed on a 
watershed basis. This section would require FEMA to submit a 
report to Congress specifying which Council recommendations 
were not implemented and explaining the reasons such 
recommendations were not adopted. FEMA would have 10 years to 
update all FIRMs in accordance with the new standards subject 
to the availability of appropriated funds. This section would 
eliminate requirements to more broadly map areas considered to 
be residual risk.
      Section 3008 would prohibit the Administrator of FEMA 
from issuing flood insurance maps, or make effective updated 
flood insurance maps, that omit or disregard the actual 
protection afforded by an existing levee, floodwall, pump or 
other flood protection feature, regardless of the accreditation 
status of such feature.
      Section 3013 would require the Administrator of FEMA, 
upon any revision or update of any floodplain area or flood-
risk zone and the issuance of a preliminary flood map, to 
notify in writing the Senators of each state affected and each 
Member of Congress for each congressional district affected by 
the flood map revision or update.
      Section 3014 would require the Administrator of FEMA to 
establish projected flood elevations and to notify the chief 
executive officer of each community affected by the proposed 
elevation a notice of the elevations, including a copy of the 
maps for the elevations and a statement explaining the process 
to appeal for changes in such elevations.
      Section 3018 would require the Administrator of FEMA to 
reimburse owners of any property, or a community in which such 
property is located, for the reasonable costs involved in 
obtaining a Letter of Map Amendment (LOMA) and Letter of Map 
Revision (LOMR) if the change was due to a bona fide error on 
the part of FEMA. The Administrator would be authorized to 
determine a reasonable amount of costs to be reimbursed except 
that such costs would not include legal or attorney fees. The 
reasonable cost would consider the actual costs to the owner of 
utilizing the services of an engineer, surveyor or similar 
services. This section would require FEMA to issue regulation 
pertaining to the reimbursements.
      Section 3020 would require FEMA to provide to a property 
owner newly included in a revised or updated proposed flood map 
a copy of the proposed FIRM and information regarding the 
appeals process at the time the proposed map is issued.
      Section 3024 would require FEMA to notify a prominent 
local television and radio station of projected and proposed 
changes to flood maps for communities. This section would 
authorize FEMA to grant an additional 90 days for property 
owners or a community to appeal proposed flood maps, beyond the 
original 90 day appeal period, so long as community leaders 
certify they believe there are property owners unaware of the 
proposed flood maps and appeal period, and community leaders 
would use the additional 90 day appeal period to educate 
property owners on the proposed flood maps and appeal process.
      Section 3026 would authorize the use of Community 
Development Block Grants to supplement state and local funding 
for local building code enforcement departments and flood 
program outreach.
      Under Section 3030, the Administrator of FEMA would be 
required to conduct a study regarding the impact, 
effectiveness, and feasibility of including widely used and 
nationally recognized building codes as part of FEMA's 
floodplain management criteria and submit a report to the House 
Committee on Financial Services and Senate Banking, Housing, 
and Urban Affairs Committee. The study would assess the 
regulatory, financial, and economic impacts of such building 
code requirement on homeowners, states and local communities, 
local land use policies, and FEMA.
Senate bill
      No provision.
Conference substitute
      No provision.

                    STUDIES AND REPORTS FOR CONGRESS

H3009(a),3009(b),3009(c),3009(d),3010,3025,3029,3031/S--

Current law
      There are no relevant provisions in current law regarding 
Section 3009(a) of the House bill.
      FEMA is authorized to encourage insurance companies and 
other insurers to form, associate, or otherwise join together 
in a pool to provide the flood insurance coverage authorized 
under the NFIP. 44 U.S.C. Sec. 4051(a)
    FEMA is authorized to take such action as may be necessary 
in order to make available reinsurance for losses which are in 
excess of losses assumed by private industry flood insurance 
pools. 42 U.S.C. Sec. 4055(a)
      There are no relevant provisions in current law regarding 
Section 3009(d) of the House bill.
      There are no relevant provisions in current law regarding 
Section 3010 of the House bill.
      There are no relevant provisions in current law regarding 
Section 3025 of the House bill.
      There are no relevant provisions in current law regarding 
Section 3029 of the House bill.
      There are no relevant provisions in current law regarding 
Section 3031 of the House bill.
House bill
      Section 3009(a) would require the Administrator of FEMA 
and the Comptroller General of the United States to conduct 
separate studies to assess a broad range of options, methods, 
and strategies for privatizing the NFIP. FEMA and GAO would 
submit reports (within 18 months of the date of the enactment 
of this Act) to the House Committee on Financial Services and 
the Senate Banking, Housing, and Urban Affairs Committee that 
make recommendations for the best manner to accomplish 
privatization of the NFIP.
      Section 3009(b) would authorize the Administrator of FEMA 
to carry out private risk-management initiatives to determine 
the capacity of private insurers, reinsurers, and financial 
markets to assist communities, on a voluntary basis only, in 
managing the full range of financial risk associated with 
flooding. The Administrator would assess the capacity of the 
private reinsurance, capital, and financial markets by seeking 
proposals to assume a portion of the program's insurance risk 
and submit to Congress a report describing the response to such 
request for proposals and the results of such assessment. The 
Administrator would be required to develop a protocol to 
provide for the release of data sufficient to conduct the 
assessment of the insurance capacity of the private sector.
      Under Section 3009(c), the Administrator of FEMA would be 
authorized to secure reinsurance coverage from private market 
insurance, reinsurance, and capital market sources in an amount 
sufficient to maintain the ability of the program to pay claims 
and that minimizes the likelihood of having to borrow from the 
U.S. Treasury.
      Under Section 3009(d), the Administrator would be 
required to conduct an assessment of the claims-paying ability 
of the NFIP, including the program's utilization of private 
sector reinsurance and reinsurance equivalents, with and 
without reliance on borrowing authority.
      Section 3010 would require the Administrator of FEMA to 
submit an annual report to the Congress on the financial status 
of the NFIP, including current and projected levels of claims, 
premium receipts, expenses, and borrowing under the program.
      Under Section 3025, the Administrator of FEMA would be 
required to conduct a study regarding the impact, 
effectiveness, and feasibility of including widely used and 
nationally recognized building codes as part of FEMA's 
floodplain management criteria and submit a report to the House 
Committee on Financial Services and Senate Banking, Housing, 
and Urban Affairs Committee. The study would assess the 
regulatory, financial, and economic impacts of such building 
code requirements on homeowners, states and local communities, 
local land use policies, and FEMA.
      Section 3029 would require the Administrator of FEMA and 
the Comptroller General of the United States to conduct 
separate studies to assess options, methods, and strategies for 
offering voluntary community-based flood insurance under the 
NFIP. The studies would consider and analyze how the policy 
options would affect communities having varying economic bases, 
geographic locations, flood hazard characteristics or 
classification, and flood management approaches. The report and 
recommendations would be submitted within 18 months after the 
enactment of this Act to the House Committee on Financial 
Services and the Senate Banking, Housing, and Urban Affairs 
Committee.
      Section 3031 would require the National Academy of 
Sciences (NAS) to conduct a study of methods for understanding 
graduated risk behind levees and the associated land 
development, insurance, and risk communication dimensions. The 
NAS would submit a report with recommendations within 12 months 
of the date of enactment of this Act to the House Committee on 
Financial Services and Senate Banking, Housing, and Urban 
Affairs Committee.
Senate bill
      No provision.
Conference substitute
      No provision.

                        MISCELLANEOUS PROVISIONS

H3035/S--

Current law
      There are no relevant provisions in current law regarding 
Section 3035 of the House bill.
House bill
      Section 3035 would allow state and local governments to 
use the Army Corps of Engineers to evaluate locally operated 
levee systems which were either built or designed by the Corps, 
and which are being reaccredited as part of a NFIP remapping. 
All costs associated with evaluations would continue to be 
covered by the state or local government requesting the 
evaluation.
Senate bill
      No provision.
Conference substitute
      No provision.

 TITLE IV--JUMPSTARTING OPPORTUNITY WITH BROADBAND SPECTRUM ACT OF 2011

                 Subtitle A--Spectrum Auction Authority

H4005,4101,4102,4103,4104,4105,4106,4107/S--

Current law
      There are no relevant provisions in current law regarding 
Section 4005 of the House bill.
      Current law provides for auction of electro-magnetic 
spectrum assigned for federal use but does not establish 
deadlines for specified frequencies. Current law provides for a 
Spectrum Relocation Fund. It requires that spectrum license 
proceeds be paid to the General Fund except in the case of 
auctions of federal spectrum being reallocated for commercial 
use in which case unexpended proceeds are held for 8 years 
before being deposited in the Treasury.
      Current law requires that 24 MHz of spectrum licenses in 
700 MHz band be assigned for use by public safety agencies. FCC 
regulations have designated 12 MHz for use by narrowband radios 
carrying primarily voice communications and 2 MHz as guard 
bands to mitigate radio interference. Licenses are administered 
by state and local authorities. Current law requires that 
auction proceeds be deposited in the General Fund.
      The FCC has broad regulatory powers that might permit it 
to reallocate TV broadcasting spectrum. Current law requires 
that auction proceeds be deposited in the General Fund.
      There are no relevant provisions in current law regarding 
Section 4104 of the House bill.
      The law requires the FCC to set rules regarding 
participation in spectrum licenses auctions and for spectrum 
use (service rules).
      Authority of FCC to use competitive bidding systems to 
assign licenses for the use of designated portions of electro-
magnetic spectrum expires September 30, 2012.
      There are no relevant provisions in current law regarding 
Section 4107 of the House bill.
House bill
      Under Section 4005, payments of funds to and access to 
spectrum license auctions would be prohibited for any person 
who is barred by a federal agency for reasons of national 
security.
      Section 4101 would set requirements for commercial 
auctions of electro-magnetic spectrum currently assigned for 
federal use as described by the bill. With exceptions, process 
of preparing auctions would begin within three years of 
enactment. Spectrum license auction proceeds would be 
distributed to the Spectrum Relocation Fund, which would 
receive an amount equal to 110% of projected federal agency 
relocation costs, with the balance deposited with the Public 
Safety Trust Fund.
      Section 4102 would require that these spectrum licenses 
be released for commercial auction within five years of a 
decision by a federally appointed Administrator. The decision 
would be triggered by a declaration by the Administrator that 
technology was available that would allow the migration of 
voice communications from the 700 MHz narrowband networks to 
the 700 MHz broadband network, thereby freeing up the 
narrowband spectrum for auction to the commercial sector. Would 
allocate $1 billion of auction proceeds to a new grant program 
for states to acquire radio equipment.
      Section 4103 would provide the FCC with the authority to 
establish incentive auctions for television broadcasters, 
within specified limits. It would create a TV Broadcaster 
Relocation Fund as a means for broadcasters to receive up to $3 
billion of auction revenue to cover relocation costs and for 
other purposes. Proceeds above that amount would go to the 
Public Safety Trust Fund through FY2021, after which funds are 
to be deposited in the General Fund.
      Section 4104 would establish procedures for the FCC to 
follow in reallocating television broadcasting spectrum 
licenses for commercial auction.
      Section 4105 would set limitations on FCC auction and 
service rules for future auctions. Would prohibit auction rules 
that placed new conditions on prospective bidders (spectrum 
caps). Would prohibit service rules that restrict licensee's 
ability to manage network traffic (net neutrality) or that 
would require providing network access on a wholesale basis.
      Section 4106 would extend the FCC's auction authority 
through FY 2021.
      Section 4107 would lay the groundwork to expand 
commercial use of unlicensed spectrum within the federally 
managed 5GHz band of wireless spectrum by requiring the FCC to 
commence a proceeding as described in the bill.
Senate bill
      No provision.

           Subtitle B--Advanced Public Safety Communications

                    PART 1--NATIONAL IMPLEMENTATION

H4201,4202,4203,4204,4205/S--

Current law
      The FCC is empowered to manage public safety use and 
assign access to spectrum. FCC has assigned a single, 
nationwide license for 10 MHz of public safety broadband 
spectrum, which it regulates. The law requires that the D Block 
be auctioned for commercial purposes, with proceeds deposited 
in the General Fund.
      The Office of Emergency Communications (OEC) within the 
Department of Homeland Security, as required by law, has 
prepared a National Emergency Communications Plan. The law also 
requires the OEC to work with other federal agencies in 
developing appropriate standards for interoperability, among 
other requirements. The FCC has used its regulatory authority 
to create requirements for the use of public safety spectrum at 
700 MHz, including interoperability and standard-setting.
      Law has required that each state, in order to receive 
federal funding for certain grants for public safety, must 
establish a State Communications Interoperability Plan (SCIP) 
and designate plan administrators at the state or local level. 
OEC is charged with assisting and overseeing these plans. Each 
state has submitted a SCIP to the OEC. Law also required the 
creation of Regional Emergency Communications Centers to 
facilitate regional planning for interoperability at the 
regional level.
      There are no relevant provisions in current law regarding 
Section 4204 of the House bill.
House bill
      Section 4201 would assign a total of 20 MHz of 700 MHz 
spectrum designated for public safety use to an Administrator, 
competitively chosen by the NTIA. The Administrator would 
manage the distribution of spectrum capacity to individual 
states and enforce requirements established in the bill. 
Specifically, provisions would reallocate 10 MHz (the D Block) 
from commercial use to public safety use.
      Section 4202 would establish requirements for the FCC to 
create a Public Safety Communications Planning Board. The Board 
would prepare, and submit to the FCC for approval, a National 
Public Safety Communications Plan. The Plan would include 
requirements for interoperability and standards, among other 
provisions.
      Section 4203 would require the NTIA to request proposals 
for the administration of the Plan. Would establish the duties 
of the Administrator in working with State Public Safety 
Broadband Offices to build interoperable networks within each 
state.
      Section 4204 would provide borrowing authority of up to 
$40 million for the creation and initial operation of the 
Administrator's office, to be repaid from auction revenue 
received by the Public Safety Trust Fund.
      Section 4205 would require the OEC to submit to Congress 
a study that would: review the importance of amateur radio in 
responding to disasters; make recommendations for how to 
enhance the use of amateur radio federally; and to identify 
impediments to amateur radio such as private land use 
restrictions on antennas.
Senate bill
      No provision.

                      PART 2--STATE IMPLEMENTATION

H4221,4222,4223,4224,4225/S--

Current law
      FCC has promulgated regulations and requirements for 
public safety broadband access.
      There are no relevant provisions in current law regarding 
Section 4222 of the House bill.
      There are no relevant provisions in current law regarding 
Section 4223 of the House bill.
      There are no relevant provisions in current law regarding 
Section 4224 of the House bill.
      State and local governments have right to apply zoning 
law procedures for requests to modify existing cell towers.
House bill
      Section 4221 would require each state seeking to 
establish a public safety broadband network, using 700 MHz 
public safety broadband spectrum, to create a Public Safety 
Broadband Office. Each office would prepare proposals for 
building networks based on the requirements established through 
the National Public Safety Communications Plan, including for 
requests for proposal. The Administrator would work with each 
state office in preparing and carrying out the plans. In 
general, states would be required to sign a contract with a 
commercial mobile provider to build the network to 
specifications as provided in the bill and in accordance with 
requirements established by the Public Safety Communications 
Planning Board and by the Administrator.
      Section 4222 would establish a matching grant program to 
assist state Public Safety Broadband Offices.
      Section 4223 would create a State Implementation Fund for 
the State Implementation Grant Program. The fund would receive 
up to $100 million in auction revenue as specified in the bill. 
Funds remaining at the end of 2021 would be deposited in the 
General Fund.
      Section 4224 would provide grants to states for payments 
under contracts entered into with the approval of the 
Administrator.
      Section 4225 would require approval of requests for 
modification of cell towers. This section would provide for 
federal agencies to grant easements for the placement of 
antennas on federal property. This section would require the 
General Services Administration (GSA) to provide a common 
request form for easements and rights-of-way and to establish 
fees for this service, based on direct cost recovery. This 
section would require the GSA to develop one or more contracts 
for antenna placement and other specifications.
Senate bill
      No provision.

                    PART 3--PUBLIC SAFETY TRUST FUND

H4241/S--

Current law
      There are no relevant provisions in current law regarding 
Section 4241 of the House bill.
House bill
      Section 4241 would create a fund to receive, hold and 
disburse all auction proceeds as provided in the bill except 
for $3 billion to be directed to the TV Broadcaster Relocation 
Fund. Designated uses are: State and Local Implementation, $100 
million; Public Safety Administrator, $40 million; Public 
Safety Broadband Network Deployment, $4.96 billion plus 10% of 
any remaining amounts deposited in the fund up to $1.5 billion; 
Deficit Reduction, $20.4 billion from fund and balances upon 
expiration in FY 2021, plus at least 90% of any additional 
auction revenue.
Senate bill
      No provision.

             PART 4--NEXT GENERATION 9-1-1 ADVANCEMENT ACT

H4265,4266,4267,4268,4269,4270,4271/S--

Current law
      Similar provisions were in effect through statutes that 
expired at the end of FY2009. Provisions included requirements 
for a grant program and for planning for the eventual 
transition to Next Generation 9-1-1.
      There are no relevant provisions in current law regarding 
Section 4266 of the House bill.
      Law Requires FCC to study 9-1-1 fee collection and use 
and issue a report annually.
      Law extends similar protection for existing 9-1-1 
services.
      There are no relevant provisions in current law regarding 
Section 4269 of the House bill.
      There are no relevant provisions in current law regarding 
Section 4270 of the House bill.
House bill
      Section 4265 would establish a federal 9-1-1 Coordination 
Office to advance planning for next-generation 9-1-1 systems 
and to fund a grant program with an authorization of $250 
million. This section would direct the Assistant Secretary 
(NTIA) and the Administrator of the National Highway Traffic 
Safety Administration (NHTSA) to establish a 9-1-1 
Implementation Coordination Office to reestablish and extend 
matching grants, through October 1, 2021, to eligible state or 
local governments or tribal organizations for the 
implementation, operation, and migration of various 9-1-1, E9-
1-1 (wireless telephone location), Next Generation 9-1-1 
(voice, text, video), and IP-enabled emergency services and 
public safety personnel training. This section would provide 
immunity and liability protection, to the extent consistent 
with specified provisions of the Wireless Communications and 
Public Safety Act of 1999, to various users and providers of 
Next Generation 9-1-1 and related services, including for the 
release of subscriber information.
      Section 4266 would require GAO to prepare a report on 9-
1-1 capabilities of multi-line telephone systems in federal 
facilities, and would require the FCC to seek comment on the 
feasibility of improving 9-1-1 identification for calls placed 
through multi-line telephone systems.
      Section 4267 requires GAO to study how states assess fees 
on 9-1-1 services and how those fees are used.
      Section 4268 would provide immunity and liability 
protection, to the extent consistent with specified provisions 
of the Wireless Communications and Public Safety Act of 1999, 
to various users and providers of Next Generation 9-1-1 and 
related services, including for the release of subscriber 
information.
      Section 4269 would direct the FCC to: (1) initiate a 
proceeding to create a specialized Do-Not-Call registry for 
public safety answering points, and (2) establish penalties and 
fines for autodialing (robocalls) and related violations.
      Section 4270 requires an analysis of costs and 
assessments and analyses of technical uses.
      Section 4271 would require the FCC to assess the legal 
and regulatory environment for development of NG9-1-1 and 
barriers to that development, including state regulatory 
roadblocks.
Senate bill
      No provision.

                Subtitle C--Federal Spectrum Relocations

H4301,4302,4303/S--

Current law
      Law provides conditions of use and relinquishment of 
spectrum, and related actions, by federal agencies. Federal 
agencies that are relocating to new spectrum allocations in 
order to accommodate commercial users for other uses may be 
reimbursed for certain costs of relocation from the Spectrum 
Relocation Fund, established for that purpose.
      Spectrum Relocation Fund created by the Commercial 
Spectrum Enhancement Act of 2004 (P.L. 108-494, Title II).
      There are no relevant provisions in current law regarding 
Section 4303 of the House bill.
House bill
      Section 4301 would include shared use as an eligible 
action and expenditures for planning would be newly included 
among those costs eligible for reimbursement from the Spectrum 
Relocation Fund. This section would establish a Technical Panel 
to review a transition plan that the NTIA would be required to 
prepare in accordance with provisions in the bill. This section 
would require that the NTIA give priority to options that would 
reallocate spectrum for exclusive, nonfederal uses assigned 
through auction.
      Section 4302 would address uses of the Fund, as described 
in Sec. 4301, and would establish requirements regarding 
transfers of funds in advance of auctions and reversion of 
unused funds.
      Section 4303 would establish provisions under which non-
disclosure of information regarding federal spectrum use would 
be determined.
Senate bill
      No provision.

            Subtitle D--Telecommunications Development Fund

H4401,4402/S--

Current law
      The Telecommunications Development Fund (TDF) was created 
to provide funding for new ventures in telecommunications. One 
source of funds comes from the requirement that interest from 
certain escrow accounts overseen by the FCC be transferred to 
the TDF.
      The law that created TDF requires board members to 
consult with the FCC and the Treasury before finalizing 
decisions.
House bill
      Section 4401 would require that interest accrued in 
specified accounts be deposited in the General Fund.
      Section 4402 eliminates the role of federal agencies in 
oversight of board activities.
Senate bill
      No provision.
Conference substitute
      Title VI--Public Safety Communications and 
Electromagnetic Spectrum Auctions. The public safety and 
spectrum provisions of this legislation advance wireless 
broadband service by clearing spectrum for commercial auction, 
promoting billions of dollars in private investment, and 
creating tens of thousands of jobs. These provisions also 
deliver on one of the last outstanding recommendations of the 
9/11 Commission by creating a nationwide interoperable 
broadband communications network for first responders and 
generating billions of dollars of Federal revenue.

                            TITLE V--OFFSETS

                       Subtitle A--Guarantee Fees

H5001/S401,402

Current law
      Similar provisions were enacted in Title IV of P.L. 112-
78.
House bill
      Section 5001 increases guarantee fees to reflect risk of 
loss and cost of capital as if enterprises were fully private 
regulated institutions. This section requires a minimum 
increase of 10 basis points (0.10%) greater than average 2011 
guarantee fees. To the extent that amounts are received from 
fee increases imposed under this section that are necessary to 
comply with the minimum increase required by this subsection, 
such amounts shall be deposited directly into the United States 
Treasury, and shall be available only to the extent provided in 
subsequent appropriations Acts. Such fees shall not be 
considered a reimbursement to the Federal Government for the 
costs or subsidy provided to an enterprise. This section 
provides for a two-year phase-in at discretion of Director of 
FHFA. This section requires all lenders to be charged a uniform 
guarantee fee. This section requires an annual FHFA Report to 
Congress to include information on up-front and annual 
guarantee fee increases, and changes in riskiness of new 
mortgages. This section applies to mortgages closed after the 
date of enactment. This section expires October 1, 2021.
Senate bill
      Sections 401 and 402 increase guarantee fees to reflect 
risk of loss and cost of capital as if enterprises were fully 
private regulated institutions. This section requires a minimum 
increase of 10 basis points (0.10%) greater than average 2011 
guarantee fees. 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. This section provides for a 
two-year phase-in at discretion of Director of FHFA. This 
section requires all lenders to be charged a uniform guarantee 
fee. This section requires an annual FHFA Report to Congress to 
include information on up-front and annual guarantee fee 
increases, and changes in riskiness of new mortgages. This 
section applies to mortgages closed after the date of 
enactment. This section expires October 1, 2021. This section 
increases guarantee fees on FHA-insured mortgages by 10 basis 
points (0.10%) with phase-in over two years.
Conference substitute
      No provision.

                   TITLE VI--MISCELLANEOUS PROVISIONS

H6002,6003(a),6003(b),6004/S511,512

Current law
      Section 263 of the Trade Adjustment Assistance Extension 
Act of 2011 (P.L. 112-40) requires any fees for processing 
merchandise entered between October 1 and November 12, 2012, to 
be paid no later than September 25, 2012, in an amount 
equivalent to the amount of such fees paid with respect to 
merchandise entered between October 1 and November 12, 2011. 
The section requires the Secretary of the Treasury to refund 
with interest any overpayment of such fees. The section 
prohibits any assessment of interest for any underpayments 
based on the amount of fees paid for merchandise entered 
between October 1 and November 12, 2012.
      Section 601(c) of the Tax Relief, Unemployment Insurance 
Reauthorization, and Job Creation Act of 2010 (26 U.S.C. 1401 
note) specifies the calendar year in which the payroll tax 
holiday period applies. There is no Senate point of order 
against the consideration of legislation that would amend this 
section of the law.
      Section 251 of the Balanced Budget and Emergency Deficit 
Control Act of 1985 (BBEDCA), as amended by the Budget Control 
Act of 2011 (BCA), establishes enforceable statutory limits on 
discretionary spending for each fiscal year covering FY2012-
FY2021. Section 251(b)(2)(A)(i) of the BBEDCA provides for 
these limits to be adjusted to accommodate discretionary 
spending designated as emergency requirements in statute (i.e., 
effectively exempting such spending from the limits). Section 
314 of the Congressional Budget Act of 1974, as amended by the 
BCA, allows the chairs of the budget committees in each chamber 
to make similar adjustments for purposes of congressional 
enforcement of these and other spending limits during the 
consideration of spending legislation. The existing Senate 
point of order against an emergency designation (Section 403 of 
S. Con. Res. 13, 111th Congress, the FY2010 budget resolution) 
does not apply to an emergency designation pursuant to the 
BBEDCA; therefore, there is no current Senate point of order 
against such a designation.
      Under the Statutory Pay-As-You-Go Act of 2010 (Title I of 
P.L. 111-139), the five-year and 10-year budgetary effects of 
direct spending and revenue legislation enacted during a 
session are placed on respective scorecards. At the end of a 
session of Congress, if either scorecard shows an increase in 
the deficit, a sequestration of non-exempt budgetary resources 
is required to eliminate such deficit. Under the law, off-
budget effects and discretionary spending effects are not 
counted.
House bill
      Section 6002 repeals a requirement that importers pre-pay 
certain fees authorized under the Consolidated Omnibus Budget 
Reconciliation Act of 1985.
      Section 6003(a) creates a Senate point of order against 
the consideration of any measure that ``extends the dates 
referenced in section 601(c) of the Tax Relief, Unemployment 
Insurance Reauthorization, and Job Creation Act of 2010.'' 
Provides that a two-thirds affirmative vote would be required 
to waive the point of order.
      Section 6003(b) amends the Budget Act to create a point 
of order against an emergency designation pursuant to the 
BBEDCA included in any measure. The new point of order is 
similar to the existing Senate emergency designation point of 
order: (1) if point of order is made, emergency designation is 
stricken from the measure; and (2) a three-fifths affirmative 
vote is required to waive the point of order and to sustain an 
appeal of the ruling of the chair.
      Section 6004 provides that the budgetary effects of H.R. 
3630 are not placed on either PAYGO scorecard, as long as the 
legislation does not increase the deficit over the FY2013-
FY2021 period. Also provides that off-budget effects, changes 
to the statutory discretionary spending limits, and changes in 
net income to the National Flood Insurance Program are to be 
counted in determining the budgetary effects of the 
legislation.
Senate bill
      The Senate bill does not contain a provision regarding 
the repeal of a requirement relating to time for remitting 
certain merchandise processing fees.
      Section 511 amends the Budget Act to create a point of 
order against an emergency designation pursuant to the BBEDCA 
included in any measure. The new point of order is similar to 
the existing Senate emergency designation point of order: (1) 
if point of order is made, emergency designation is stricken 
from the measure; and (2) a three-fifths affirmative vote is 
required to waive the point of order and to sustain an appeal 
of the ruling of the chair.
      Section 512 provides that the budgetary effects of H.R. 
3630 are not placed on either PAYGO scorecard. Senate provision 
makes no modifications to the conventional budget scoring of 
the legislation.
Conference substitute
      Section 7002. Repeal of Requirement Relating to Time for 
Remitting Certain Merchandise Processing Fees: Repeals a 
requirement that importers pre-pay certain fees authorized 
under the Consolidated Omnibus Budget Reconciliation Act of 
1985. The provision is identical to that contained in Section 
6002 of the House bill.
      Section 7003. Points of Order in the Senate: Includes two 
Senate points of order related to (1) protecting the Social 
Security Trust Fund and (2) emergency spending. The provision 
is identical to that contained in Section 6003 of the House 
bill.
      Section 7004. PAYGO Scorecard Estimates: Provides that 
the budgetary effects of the bill shall not be entered on the 
statutory PAYGO scorecards provided that the bill is deficit 
neutral over 10 years. The provision is identical to that 
contained in Section 6004 of the House bill.

                 FEDERAL CIVILIAN EMPLOYEES PROVISIONS

Current law
      Pay Freeze: The Continuing Resolution of December of 2010 
included a two-year freeze on all across-the-board, annual pay 
adjustments for federal civilian employees, January 1, 2011 
through December 31, 2012.
      Federal Employee Pensions: Most federal civilian 
employees are participants in the Federal Employees Retirement 
System (FERS), under which they make a contribution toward a 
defined benefit pension equal to 0.8 percent of basic pay. 
Their employing agency covers the remainder of the pension 
cost. At normal retirement age, an employee is entitled to a 
pension equal to 1 percent (or 1.1 percent for those retiring 
at age 62 with 20 years of service) of the average of the 
employee's highest three years' compensation times the 
employee's years of service. Certain FERS participants retiring 
prior to age 62 are entitled to the FERS annuity supplement. 
This benefit is paid in addition to their defined benefit 
annuity, and equals the Social Security benefit they would 
receive for their FERS civilian service from the Social 
Security Administration if eligible to receive Social Security 
on their date of retirement. Most employees who first entered 
federal government service before 1987 are covered by the Civil 
Service Retirement System (CSRS), under which they contribute 7 
percent of their pay toward their defined benefit pension. CSRS 
employees are not covered by Social Security, so, unlike FERS 
employees, they are not subject to the 6.2 percent Social 
Security contribution. Under both FERS and CSRS, employee 
contributions and benefits for special occupational groups and 
Members of Congress are higher. Separate but comparable 
retirement systems exist for Foreign Service and CIA employees.
House bill
      Pay Freeze: The House bill would extend the current 
freeze on across-the-board statutory pay adjustments for 
federal civilian employees and Members of Congress through 
December 31, 2013.
      Federal Employee Pensions: The House bill would increase 
the employee contribution for both CSRS and FERS employees by 
0.5 percentage points each year for three years, beginning in 
2013. Corresponding changes would be made to the Foreign 
Service, CIA, and TVA retirement systems. The House bill would 
establish new retirement rules for federal employees hired 
after December 31, 2012, with less than 5 years of service. 
Their contribution to FERS would increase by 3.2 percentage 
points. The FERS pension formula salary base for new employees 
would change to the highest-five years' average salary instead 
of highest three years. The FERS pension formula multiplier for 
most new employees would be reduced to 0.7 percent per year of 
service, instead of 1 percent (or 1.1 percent for those 
retiring at age 62 with 20 or more years of service). Employees 
in special occupational groups are subject to a proportional 
adjustment to the multiplier (0.3 percentage points lower than 
current law). Finally, the House bill would eliminate the FERS 
Annuity Supplement for individuals not subject to mandatory 
retirement, beginning January 1, 2013. Individuals subject to 
mandatory retirement include certain categories of employees 
such as law enforcement, fire fighters, air traffic 
controllers, and nuclear materials couriers.
Senate bill
      No provision.
Conference substitute
      Pay Freeze: No provision.
      Federal Employee Pension: The Conference Agreement would 
increase by 2.3 percent the employee pension contribution for 
federal employees entering service after December 31, 2012, who 
have less than 5 years of creditable civilian service. 
Corresponding increases in employee contributions would be made 
for individuals entering the CIA and Foreign Service pension 
systems. Members of Congress and congressional employees 
entering service after December 31, 2012 who have less than 5 
years of creditable civilian service would be subject to the 
same contribution rate and annuity calculation as other federal 
employees.

                  MEDICARE AND OTHER HEALTH PROVISIONS

Extension of MMA Section 508 Reclassifications

Current law
      Under Medicare's Inpatient Prospective Payment System 
(PPS), payments are adjusted by a wage index that is intended 
to reflect the cost of labor in the area where the services are 
furnished compared to a national average. Hospitals in areas 
with higher wage costs have higher wage indices and therefore 
receive higher PPS payments; hospitals in lower wage areas have 
lower wage indices and receive lower payments.
      Recognizing that the indices are not always accurate, 
Congress in 1989 established a process whereby hospitals could 
apply to ``reclassify'' to a nearby area, and receive the 
higher wage index of that area. While a significant number of 
hospitals (nearly 40%) have a reclassified wage index, other 
hospitals have not been able to meet the established criteria.
      Section 508 of the Medicare Modernization Act of 2003 
(MMA) directed the Centers for Medicare and Medicaid Services 
(CMS) to develop new criteria that would allow additional 
hospitals to qualify for a one-time, three-year 
reclassification.
      According to CMS, there were 89 hospitals receiving 
Section 508 reclassification payments in FY 2011.
House bill
      No provision.
Senate bill
      Section 302 extended the Section 508 reclassification 
payments for two months (October and November 2011).
Conference substitute
      Section 3001 extends Section 508 reclassification 
payments through March 31, 2012.
Extension of Outpatient Hold Harmless Payments

Current law
      In 2000, Medicare implemented a PPS for hospital 
outpatient services; prior to this time hospitals received 
cost-based payments. For certain hospitals, primarily those 
located in rural areas, the outpatient PPS payments were lower 
than the payments they had received under the prior cost-based 
system. The Balanced Budget Refinement Act of 1999 (BBRA) 
mandated that rural hospitals with fewer than 100 beds receive 
100% of the difference between OPPS payments and what these 
hospitals would have received under the cost-based system (thus 
the name ``hold harmless'' payments). Over time, Congress has 
lowered the payment percentage (it currently is 85%) and has 
expanded the policy to sole community hospitals (SCHs), 
hospitals that are further than 35 miles from another hospital.
House bill
      No provision.
Senate bill
      Section 308 extended the hold harmless payment to all 
eligible hospitals for two months (January and February 2012).
Conference substitute
      Section 3002 extends the outpatient hold harmless 
payments through December 31, 2012, except for SCHs with more 
than 100 beds. The provision requires a study by the Department 
of Health and Human Services (HHS) by July 1, 2012, on which 
types of hospitals should continue to receive hold harmless 
payments in order to maintain adequate beneficiary access to 
outpatient services.
Physician Payment Update

Current law
      The Sustainable Growth Rate (SGR) formula system was 
established by the Balanced Budget Act of 1997 (BBA) as the 
mechanism to determine the update to Medicare physician 
payments beginning in 1999. The formula allows spending to grow 
at the rate of the economy, adjusted for other factors such as 
the number of beneficiaries in Medicare fee-for-service. The 
tally of actual and target expenditures is cumulative in that 
it is maintained on an on-going basis since the formula's 
inception. The update adjustment that results from the SGR 
system is made through the conversion factor. If spending 
exceeds the target, the adjustment to the conversion factor is 
negative (physicians payments get reduced). If spending is 
below the target, the adjustment is positive (physician 
payments are increased). Physician spending has routinely 
exceeded the target such that the SGR formula has specified 
negative updates since 2002. Congress has intervened 13 times 
to avert the cuts since 2003. The SGR currently calls for a 
27.4 percent across-the-board rate cut for physicians to take 
effect on March 1, 2012.
House bill
      Section 2201 replaced the 27.4 percent cut with a 1 
percent rate increase in 2012 and another 1 percent increase in 
2013. This section also required reports from the: Medicare 
Payment Advisory Commission (MedPAC) on aligning private sector 
initiatives to reward quality, efficiency, and practice 
improvements with Medicare performance-based initiatives; 
Government Accountability Office (GAO) on examining private 
sector initiatives that base or adjust physician payments for 
quality, efficiency, or care delivery improvement; and 
Secretary of HHS on options for bundling payments for common 
physician services. It also required the committees of 
jurisdiction to provide information to Congress to assist in 
the development of a long-term replacement to the current 
Medicare physician payment system.
Senate bill
      Section 301 froze physician payment rates at their 2011 
level for two months (January and February 2012).
Conference substitute
      Section 3003 freezes physician payment rates at their 
current levels until December 31, 2012, averting a 27.4 percent 
reduction. The provision also requires reports from the 
Secretary of HHS, due January 1, 2013, that examines bundled or 
episode-based payments to cover physicians' services for one or 
more prevalent chronic conditions or major procedures. It also 
requires a GAO report, due January 1, 2013, that examines 
private sector initiatives that base or adjust physician 
payment rates for quality, efficiency, and care delivery 
improvement, such as adherence to evidence-based guidelines.
Work Geographic Adjustment

Current law
      Medicare payment for each physician service is made up of 
three components: 1) physician work (the time, skill and 
intensity for a physician to provide a service), 2) practice 
expense (associated overhead costs), and 3) physician liability 
insurance. Each of these components is adjusted based on the 
relative costs associated with the geographic area in which the 
physician practices. Medicare makes these adjustments, known as 
Geographic Practice Cost Indices (GPCIs), in each of its 
designated 89 geographic areas. The national average work 
adjustment is set at a value of 1.0. Thus, geographic areas 
with an adjustment value greater than 1.0 receive higher work 
payments than the areas with an adjustment below that 
threshold. Current law maintains a work adjustment floor--set 
at the national average value of 1.0--that increases work 
payments to physicians in the areas that have a value below the 
national average. This floor increases payments in 54 of 89 
geographic areas. The MMA established this policy starting in 
2004 and Congress subsequently extended it five times.
House bill
      Section 2204 extended the work GPCI floor through 
December 31, 2012 and required that MedPAC submit a report by 
June 1, 2012 that assesses whether any work geographic 
adjustment is needed, if so, at what level it should be 
applied, and the impact of the floor on beneficiary access to 
care.
Senate bill
      Section 303 extended the 1.0 GPCI floor for two months 
(January and February 2012).
Conference substitute
      Section 3004 extends the 1.0 work GPCI floor through 
December 31, 2012. It also requires MedPAC to report by June 
15, 2013, assessing whether any work geographic adjustment is 
needed and, if so, at what level it should be applied, and the 
impact of the floor on beneficiary access to care.
Payment for Outpatient Therapy Services

Current law
      The BBA imposed two annual per beneficiary payment limits 
for all outpatient therapy services delivered by non-hospital 
providers. For 2012, the annual limit on the allowed amount for 
outpatient physical therapy (PT) and speech-language pathology 
(SLP) combined is $1,880. There is a separate $1,880 limit for 
occupational therapy (OT). Enforcement of the caps has been 
blocked by legislation every year since 2000, with the 
exception of three months in 2003. The Deficit Reduction Act of 
2006 (DRA) required the HHS Secretary to implement an 
exceptions process in 2006 for cases in which the provision of 
additional therapy services above the cap was determined to be 
medically necessary. Congress has extended this exceptions 
process several times.
House bill
      Section 2203 extended the exceptions process through 
December 31, 2013, and made specific refinements to the 
exceptions process to ensure that medical necessity is 
documented and appropriately reviewed. Specifically, the HHS 
Secretary was required to ensure, through claims processing 
edits, that appropriate modifiers are on the claims indicating 
that the responsible providers have documented medical 
necessity for services paid above the therapy cap threshold. In 
addition, all Medicare claims for therapy services were 
required to include the national provider identifier (NPI) for 
the physician or practitioner (not the therapist rendering 
services) who periodically reviews the therapy plan of care. 
The spending cap was permanently expanded to include spending 
for therapy services provided in hospital outpatient 
departments. Starting on July 1, 2012, when a beneficiary's 
annual spending for therapy services furnished in calendar year 
2012 reaches $3,700 in PT and SLP, or $3,700 in OT, any 
additional services would be subject to a manual medical review 
process.
      By January 1, 2013, the Secretary was required to collect 
detailed data on therapy patient conditions and outcomes that 
could assist in reforming the current therapy payment system. 
In addition, MedPAC was required to submit a report to the 
committees of jurisdiction, making recommendations on how to 
reform the payment system so that the benefit is better 
designed to reflect individual acuity, condition, and therapy 
needs of the patient. GAO was required to submit a study to the 
committees of jurisdiction, examining CMS implementation of the 
manual review process.
Senate bill
      Section 304 extended the exceptions process for Medicare 
outpatient therapy caps for two months (January and February 
2012).
Conference substitute
      Section 3005 extends the therapy caps exceptions process 
through December 31, 2012. Starting with services provided on 
or after October 1, 2012, the Secretary is required to ensure 
that appropriate modifiers and NPIs are on the Medicare claims 
and implement a manual medical review process for beneficiaries 
whose annual spending for therapy services furnished in 
calendar year 2012 reaches $3,700 in PT and SLP, or $3,700 in 
OT. The spending caps are temporarily expanded (through 
December 31, 2012) to include spending for therapy services 
provided in hospital outpatient departments. The conference 
agreement also requires the Secretary to collect detailed data 
to assist in refining the therapy payment system and also 
requires reports from GAO and MedPAC.
Payment for Technical Component of Certain Physician Pathology Services

Current law
      Medicare pays for the preparation of pathology lab 
samples (the ``technical component'') as well as the physician 
interpretation and diagnosis associated with those samples 
(``professional component''). Prior to 1999, independent labs 
that performed the technical component (TC) of pathology lab 
services for hospitals could bill Medicare directly for the TC 
payment. In 1999, CMS implemented a new rule that prohibited 
independent laboratories from billing for these services, with 
the rationale that Medicare payment was already included in the 
bundled payment to the hospital. Hospitals that had in-house 
labs were unaffected. Hospitals that had been utilizing 
independent labs as of July 22, 1999, however, were 
``grandfathered'' in the Benefits Improvement and Protection 
Act (BIPA) of 2000, allowing them to continue billing Medicare 
directly.
House bill
      No provision.
Senate bill
      Section 305 extended the TC grandfather policy for two 
months (January and February 2012).
Conference substitute
      Section 3006 extends the TC grandfather policy until June 
30, 2012.
Ambulance Add-On Payments

Current law
      In 2002, a fee schedule was established for ground and 
air ambulance services; it was fully implemented in 2006. 
Currently, all ground ambulance services receive some type of 
add-on: 2 percent for urban ground ambulance trips, 3 percent 
for rural ground ambulance trips, and 22.6 percent for ground 
ambulance trips that originate in ``super rural'' areas (those 
in the lowest quartile in terms of population density).
      Under the air ambulance fee schedule, rural providers 
receive a 50% add-on. In 2006, the Office of Management and 
Budget (OMB) changed the designation of a number of areas from 
rural to urban, based on updated Census data, which would have 
ended the rural add-on for air ambulances originating in the 
affected areas. The Medicare Improvements for Patients and 
Providers Act of 2008 (MIPPA) allowed these affected areas to 
continue to be considered rural so that air ambulances could 
continue to receive the rural add-on.
House bill
      Section 2202 extended the payment add-ons for ground 
ambulance services until December 31, 2012.
      Additionally, the House bill required GAO to update their 
2007 report detailing current ambulance costs. The House bill 
also required MedPAC to submit a report on the appropriateness 
of the ambulance fee schedule and whether there is a need to 
reform the ambulance fee schedule.
Senate bill
      Section 306 extended the add-ons for ground ambulance 
services and continued the rural designation for certain air 
ambulance services for two months (January and February 2012).
Conference substitute
      Section 3007 extends payment add-ons for ground ambulance 
services and continued the rural designation for certain air 
ambulance services until December 31, 2012. This provision 
requires GAO to update its 2007 report by October 1, 2012, to 
reflect current costs for ambulance providers and requires 
MedPAC to submit a report by June 15, 2013, on the 
appropriateness of the ambulance add-on payments and whether 
there is a need to reform the ambulance fee schedule.
Qualifying Individual Program

Current law
      The Qualifying Individual (QI) program is a Medicare 
savings program for certain low-income Medicare beneficiaries, 
who are fully eligible for Medicare and receive Medicaid 
assistance with their Medicare Part B premiums. Unlike full 
benefit dually-eligible beneficiaries who are fully eligible 
for both Medicare and Medicaid (known as qualified Medicare 
beneficiaries (QMBs), or those with incomes below 100 percent 
of poverty) and specified low-income Medicare beneficiaries 
(SLMBs, or those with incomes between 100 and 120 percent of 
poverty), QI is a block grant to states that must be 
reauthorized each year. Enrollment in QI is limited by federal 
appropriations, and applications are approved on a first-come, 
first-served basis. QI beneficiaries must have incomes between 
120 and 135 percent of poverty ($13,404 to $15,079 for an 
individual in 2012).
House bill
      Section 2211 extended the QI program through December 31, 
2012.
Senate bill
      Section 310 extended the QI program for two months 
(January and February 2012).
Conference substitute
      Section 3101 extended the QI program through December 31, 
2012.
Transitional Medical Assistance

Current law
      Congress expanded the Transitional Medical Assistance 
(TMA) program in 1988 as part of welfare-to-work programs, 
requiring states to provide TMA to families who lose Medicaid 
eligibility for work-related reasons for at least six, and up 
to twelve, months. During the first six months of TMA, states 
must provide the same benefits the family was receiving or pay 
for costs of similar employer-based coverage. The second six 
months of TMA is available for families who continue to have a 
dependent child at home, meet reporting requirements, and have 
average gross monthly earnings below 185% of poverty.
      Congress created an additional work-related TMA option in 
the American Recovery and Reinvestment Act of 2009 (ARRA). 
Under the ARRA option, states may choose to provide work-
related TMA for a full twelve-month period rather than two six-
month periods. These changes were informed by GAO work that 
found the reporting requirements to be a substantial paperwork 
barrier that caused significant numbers of eligible families to 
lose coverage to which they were entitled. Thirteen states have 
taken up the ARRA option: Alaska, Colorado, Connecticut, 
Florida, Idaho, Maryland, Montana, New Mexico, New York, Ohio, 
Oregon, South Dakota, and Wisconsin.
House bill
      Section 2212 extended TMA, through December 31, 2012. In 
addition, this provision contained new income reporting 
requirements for any month of TMA coverage and limited TMA to 
only those individuals with incomes below 185 percent of 
poverty.
Senate bill
      Section 311 extended TMA for two months (January and 
February 2012).
Conference substitute
      Section 3102 provides for an extension of TMA through 
December 31, 2012.
Modification to Requirements for Qualifying for Exception to Medicare 
        Prohibition on Certain Physician Referrals for Hospitals

Current law
      Physicians are generally prohibited from referring 
Medicare patients to a health care facility in which they, or 
an immediate family member, have a financial stake. However, 
physician-owned hospitals have operated under an exception to 
anti-trust laws, known as the ``whole hospital exception.''
      The Affordable Care Act (ACA) amended the ``whole 
hospital exception'' by requiring that all hospitals with 
physician-ownership have a Medicare provider number by December 
31, 2010. Any hospital without a Medicare provider number is 
not permitted to bill Medicare for services provided to 
beneficiaries under the ``whole hospital exception.'' 
Grandfathered physician-owned hospitals, those with Medicare 
provider numbers by December 31, 2010, may continue to operate. 
However, they may not alter the proportion of physician-
ownership in the hospital. Under current law, a grandfathered 
hospital may apply to expand the number of operating rooms, 
procedure rooms and/or beds if it meets five criteria.
House bill
      Section 2213 allowed physician-owned hospitals that were 
under construction but without a Medicare provider number on 
December 31, 2010, to open and operate under the ``whole 
hospital exception.'' The provision would also allow a 
grandfathered hospital the ability to utilize the existing 
expansion process if it certifies that it does not discriminate 
against beneficiaries in federal health care programs.
Senate bill
      No provision.
Conference substitute
      No provision.
Extending Minimum Payment for Bone Mass Measurement

Current law
      Dual energy X-ray absorptiometry (DXA) machines are used 
to measure bone mass to identify individuals who may have or be 
at risk of having osteoporosis. For those individuals who are 
eligible, Medicare will pay for a bone density study once every 
two years, or more frequently if the procedure is determined to 
be medically necessary. The DRA capped reimbursement of the 
technical component for x-ray and imaging services as the 
lesser rate of the hospital outpatient rate or the physician 
fee schedule. Additionally, CMS implemented a new methodology 
for determining resource-based practice expense payments for 
all services contributed to the reduction in the technical 
component reimbursement. The ACA set DXA payments at 70 percent 
of the 2006 reimbursement rates for these services in 2010 and 
2011.
House bill
      No provision.
Senate bill
      Section 309 extended the 70 percent of the 2006 payment 
rate for two months (January and February 2012).
Conference substitute
      No provision.
Extension of Physician Fee Schedule Mental Health Add-on Payment

Current law
      Medicare pays for mental health services under the 
physician fee schedule. MIPPA increased the fee schedule amount 
for certain mental health service by 5 percent beginning on 
July 1, 2008. Subsequent legislation extended this add-on.
House bill
      No provision.
Senate bill
      Section 307 extended the 5 percent payment add-on for two 
months (January and February 2012).
Conference substitute
      No provision.
Reduction of Bad Debt Treated as an Allowable Cost

Current law
      Medicare reimburses providers for beneficiaries' unpaid 
coinsurance and deductible amounts after reasonable collection 
efforts. Medicare currently reimburses 70 percent of 
beneficiary bad debts in acute care hospitals. Medicare 
reimburses skilled nursing facilities 100 percent of the 
allowable bad debt costs for Medicare beneficiaries who are 
eligible for Medicaid (dual eligibles) and 70 percent of the 
allowable costs for all other beneficiaries. Medicare 
reimburses 100 percent of allowable bad debt in critical access 
hospitals, rural health clinics, federally qualified health 
clinics, community mental health clinics, health maintenance 
organizations reimbursed on a cost basis, competitive medical 
plans, and health care prepayment plans. Medicare also 
reimburses end stage renal disease facilities 100 percent of 
allowable bad debt claims, with such payments capped at the 
facilities' unrecovered costs.
House bill
      Section 2224 gradually reduced the bad debt 
reimbursement, beginning in 2013 and over a period of three 
years, for all providers to 55 percent.
Senate bill
      No provision.
Conference substitute
      Section 3201 will reduce bad debt reimbursement for all 
providers to 65 percent. Providers paid at 100 percent would 
have a three-year transition of 88 percent in 2013, 76 percent 
in 2014, and 65 percent in 2015. Providers paid at 70 percent 
would be reduced to 65 percent in 2013.
Rebase Medicare Clinical Laboratory Payment Rates

Current law
      Medicare pays for clinical laboratory services under 
carrier-specific fee schedules subject to national payment 
limits. Most lab services receive payment at the national limit 
amount.
House bill
      No provision.
Senate bill
      No provision.
Conference substitute
      Section 3202 resets clinical lab base payment rates by 2 
percent in 2013.
Rebasing State DSH Allotments for Fiscal Year 2021

Current law
      Medicaid Disproportionate Share Hospital (DSH) payments 
provide additional funding to hospitals that serve a 
disproportionate number of low-income patients. States receive 
an annual DSH allotment to cover the costs of DSH hospitals 
that provide care to low-income, uninsured patients. This 
annual allotment is calculated by law and includes requirements 
to ensure that the DSH payments to individual hospitals are not 
higher than actual uncompensated care costs. Each state's 
federal allotment is capped based on either the prior year's 
allotment plus inflation or twelve percent of the state's total 
Medicaid benefits payments for the year. Once a state receives 
its federal allotment, the state has discretion to distribute 
the funding to hospitals, as long as the state's methodology is 
based on the Medicaid inpatient utilization rate (exceeding one 
standard deviation above the mean for all hospitals in the 
state) or a low-income utilization rate exceeding 25 percent.
      The ACA reduced DSH payments between 2014 and 2020, based 
on a formula that the Secretary of HHS will develop through 
future regulation.
House bill
      Section 2225 would rebase the DSH allotments for FY2021 
and determine future allotments from the rebased level using 
current law methodology.
Senate bill
      No provision.
Conference substitute
      Section 3203 extends the ACA Medicaid DSH payment 
reductions in 2021.
Technical Correction to the Disaster Recovery FMAP Provision

Current law
      The ACA included a provision known as the `disaster-
recovery FMAP' designed to help states adjust to drastic 
changes in FMAP following a statewide disaster. Once triggered, 
the policy would provide assistance for as many as seven years 
following the disaster, as long as the state continued to 
experience an FMAP drop of more than three percentage points.
      During the first year, a state would receive an FMAP 
increase equal to 50 percent of the difference between the 
regular FMAP and the artificially lower FMAP. In the second and 
succeeding years, the FMAP increase would be 25 percent of the 
difference between the regular FMAP and the adjusted FMAP from 
the previous year. However, there is an error in the statute 
for the second and succeeding years. Instead of creating a 
glide path downward, so that the affected state could adjust to 
its new, lower FMAP, the 25 percent bump is added to the 
higher, adjusted FMAP of the previous year rather than the 
lower, base FMAP. This results in increasing FMAPs for each 
year of the disaster-recovery period, compounding over time. It 
also makes it easier for the state to continue to qualify each 
year because it is easier for there to be a three percentage 
point difference between the artificially high FMAP and the 
base FMAP.
House bill
      No provision.
Senate bill
      No provision.
Conference substitute
      Section 3204 would address the error by instituting a 
lower FMAP in the second and subsequent years.
Prevention and Public Health Fund

Current law
      The ACA established a Prevention and Public Health Trust 
Fund to help shift the focus of the health care system to 
prevention rather than treatment. The fund provides increasing 
mandatory direct spending from $500 million in 2010 to $2 
billion in 2015 and each year thereafter.
House bill
      Section 2222 reduced trust fund dollars beginning in 
FY2013, saving $8 billion.
Senate bill
      No provision.
Conference substitute
      Section 3205 reduces trust fund dollars beginning in 
FY2013, saving $5 billion.
Parity in Medicare Payments for Hospital Outpatient Department 
        Evaluation and Management Services

Current law
      When a physician treats a beneficiary in a hospital 
outpatient department, the physician's services are reimbursed 
under Medicare's physician fee schedule and the hospital 
receives a facility payment from Medicare under the outpatient 
prospective payment system (OPPS). Because of the facility 
payment, the total payment generally exceeds payments for the 
same services provided in a physician office.
House bill
      Section 2223 would reduce hospital facility fee payments 
for evaluation and management services provided in a hospital 
outpatient department so that payment for the service in 
aggregate would not exceed the amount under the Medicare 
physician fee schedule beginning in 2012. These lower payments 
would not be considered in the review of different components 
of Medicare's OPPS to ensure that annual adjustments are budget 
neutral.
Senate bill
      No provision.
Conference substitute
      No provision.
Increase in Medicare Part B and Part D Premiums for High-Income 
        Beneficiaries

Current law
      The MMA of 2003 established that high-income 
beneficiaries enrolled in Part B would pay a higher premium. 
The ACA expanded this provision to the Part D program. 
Currently, high-income beneficiaries are required to pay a 
greater share of the Medicare Part B and Part D premiums (35 
percent, 50 percent, 65 percent, or 80 percent) depending on 
their income. For 2012, the income thresholds for those premium 
shares are $85,000, $107,000, $160,000, and $214,000, 
respectively for single filers. For married couples, the 
corresponding income thresholds are twice those values. Because 
of a provision in the ACA, the income thresholds for both 
Medicare Part B and Part D are frozen through 2019.
House bill
      Sections 5601 and 5602 would increase the applicable 
premium percentage higher income beneficiaries would pay by 15 
percent such that the levels would become 40.25 percent, 57.5 
percent, 74.75 percent, and 90 percent in 2017. This provision 
would also reduce the income thresholds in 2017, to $80,000, 
$100,000, $150,000 and $200,000 for single filers (and twice 
those values for married couples) and extend the freeze of the 
income thresholds beyond 2019, until 25 percent of all 
beneficiaries are paying higher income premiums.
Senate bill
      No provision.
Conference substitute
      No provision.

                             TAX PROVISIONS

  A. Extension of Payroll Tax Reduction (sec. 2001 of the House bill, 
   sec. 101 of the Senate amendment, and sec. 1001 of the conference 
                               agreement)

                              PRESENT LAW

Federal Insurance Contributions Act (``FICA'') tax
      The FICA tax applies to employers based on the amount of 
covered wages paid to an employee during the year.\1\ 
Generally, covered wages means all remuneration for employment, 
including the cash value of all remuneration paid in any medium 
other than cash.\2\ Certain exceptions from covered wages are 
also provided. The tax imposed is composed of two parts: (1) 
the old age, survivors, and disability insurance (``OASDI'') 
tax equal to 6.2 percent of covered wages up to the taxable 
wage base ($106,800 for 2011 and $110,100 for 2012); and (2) 
the Medicare hospital insurance (``HI'') tax amount equal to 
1.45 percent of covered wages.
---------------------------------------------------------------------------
    \1\Sec. 3111.
    \2\Sec. 3121(a).
---------------------------------------------------------------------------
      In addition to the tax on employers, each employee is 
generally subject to FICA taxes equal to the amount of tax 
imposed on the employer (the ``employee portion'').\3\ The 
employee portion of FICA taxes generally must be withheld and 
remitted to the Federal government by the employer.
---------------------------------------------------------------------------
    \3\Sec. 3101. For taxable years beginning after 2012, an additional 
HI tax applies to certain employees.
---------------------------------------------------------------------------
Self-Employment Contributions Act (``SECA'') Tax
      As a parallel to FICA taxes, the SECA tax applies to the 
self-employment income of self-employed individuals.\4\ The 
rate of the OASDI portion of SECA taxes is generally 12.4 
percent, which is equal to the combined employee and employer 
OASDI FICA tax rates, and applies to self-employment income up 
to the FICA taxable wage base. Similarly, the rate of the HI 
portion of SECA tax is 2.9 percent, the same as the combined 
employer and employee HI rates under the FICA tax, and there is 
no cap on the amount of self-employment income to which the 
rate applies.\5\
---------------------------------------------------------------------------
    \4\Sec. 1401.
    \5\For taxable years beginning after 2012, an additional HI tax 
applies to certain self-employed individuals.
---------------------------------------------------------------------------
      An individual may deduct, in determining net earnings 
from self-employment under the SECA tax, the amount of the net 
earnings from self-employment (determined without regard to 
this deduction) for the taxable year multiplied by one half of 
the combined OASDI and HI rates.\6\
---------------------------------------------------------------------------
    \6\Sec. 1402(a)(12).
---------------------------------------------------------------------------
      Additionally, a deduction, for purposes of computing the 
income tax of an individual, is allowed for one-half of the 
amount of the SECA tax imposed on the individual's self-
employment income for the taxable year.\7\
---------------------------------------------------------------------------
    \7\Sec. 164(f).
---------------------------------------------------------------------------
Railroad retirement tax
      Instead of FICA taxes, railroad employers and employees 
are subject, under the Railroad Retirement Tax Act (``RRTA''), 
to taxes equivalent to the OASDI and HI taxes under FICA.\8\ 
The employee portion of RRTA taxes generally must be withheld 
and remitted to the Federal government by the employer.
---------------------------------------------------------------------------
    \8\Secs. 3201(a) and 3211(a).
---------------------------------------------------------------------------
Temporary reduced OASDI rates
      Under the Tax Relief, Unemployment Insurance 
Reauthorization, and Job Creation Act of 2010,\9\ for 2011, the 
OASDI rate for the employee portion of the FICA tax, and the 
equivalent employee portion of the RRTA tax, is reduced by two 
percentage points to 4.2 percent. Similarly, for taxable years 
beginning in 2011, the OASDI rate for a self-employed 
individual is reduced by two percentage points to 10.4 percent.
---------------------------------------------------------------------------
    \9\Pub. L. No. 111-312.
---------------------------------------------------------------------------
      Special rules coordinate the SECA tax rate reduction with 
a self-employed individual's deduction in determining net 
earnings from self-employment under the SECA tax and the income 
tax deduction for one-half of the SECA tax. The rate reduction 
is not taken into account in determining the SECA tax deduction 
allowed for determining the amount of the net earnings from 
self-employment for the taxable year. The income tax deduction 
allowed for the SECA tax for taxable years beginning in 2011 is 
59.6 percent of the OASDI portion of the SECA tax imposed for 
the taxable year plus one-half of the HI portion of the SECA 
tax imposed for the taxable year.\10\
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    \10\This percentage replaces the rate of one half (50 percent) 
otherwise allowed for this portion of the deduction. The percentage is 
necessary to allow the self-employed individual to deduct the full 
amount of the employer portion of SECA taxes. The employer OASDI tax 
rate remains at 6.2 percent, while the employee portion falls to 4.2 
percent. Thus, the employer share of total OASDI taxes is 6.2 divided 
by 10.4, or 59.6 percent of the OASDI portion of SECA taxes.
---------------------------------------------------------------------------
      The Federal Old-Age and Survivors Trust Fund, the Federal 
Disability Insurance Trust Fund and the Social Security 
Equivalent Benefit Account established under the Railroad 
Retirement Act of 1974\11\ receive transfers from the General 
Fund of the United States Treasury equal to any reduction in 
payroll taxes attributable to the rate reduction for 2011. The 
amounts are transferred from the General Fund at such times and 
in such a manner as to replicate to the extent possible the 
transfers which would have occurred to the Trust Funds or 
Benefit Account had the provision not been enacted.
---------------------------------------------------------------------------
    \11\45 U.S.C. 231n-1(a).
---------------------------------------------------------------------------
      For purposes of applying any provision of Federal law 
other than the provisions of the Internal Revenue Code of 1986, 
the employee rate of OASDI tax is determined without regard to 
the reduced rate for 2011.
      Under the Temporary Payroll Tax Cut Continuation Act of 
2011,\12\ the reduced employee OASDI tax rate of 4.2 percent 
under the FICA tax, and the equivalent employee portion of the 
RRTA tax, is extended to apply to covered wages paid in the 
first two months of 2012. A recapture applies for any benefit a 
taxpayer may have received from the reduction in the OASDI tax 
rate, and the equivalent employee portion of the RRTA tax, for 
remuneration received during the first two months of 2012 in 
excess of $18,350.\13\ The recapture is accomplished by a tax 
equal to two percent of the amount of wages (and railroad 
compensation) received during the first two months of 2012 that 
exceed $18,350. The Secretary of the Treasury (or the 
Secretary's delegate) is to prescribe regulations or other 
guidance that is necessary and appropriate to carry out this 
provision.
---------------------------------------------------------------------------
    \12\Pub. L. No. 112-78, enacted after passage of H.R. 3630 by the 
House of Representatives and the Senate.
    \13\$18,350 is \1/6\ of the 2012 taxable wage base of $110,100.
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      In addition, for taxable years beginning in 2012, the 
OASDI rate for a self-employed individual is reduced to 10.4 
percent, for self-employment income of up to $18,350 (reduced 
by wages subject to the lower OASDI rate for 2012). Related 
rules for 2011 concerning coordination of a self-employed 
individual's deductions in determining net earnings from self-
employment and income tax also apply for 2012, except that the 
income tax deduction allowed for the OASDI portion of SECA tax 
imposed for taxable years beginning in 2012 is computed at the 
rate of 59.6 percent\14\ of the OASDI portion of the SECA tax 
imposed on self-employment income of up to $18,350. For self-
employment income in excess of this amount, the deduction is 
equal to half of the OASDI portion of the SECA tax.
---------------------------------------------------------------------------
    \14\This percentage used with respect to the first $18,350 of self-
employment income is necessary to continue to allow the self-employed 
taxpayer to deduct the full amount of the employer portion of SECA 
taxes. The employer OASDI tax rate remains at 6.2 percent, while the 
employee portion falls to a 4.2 percent rate for the first $18,350 of 
self-employment income. Thus, the employer share of total OASDI taxes 
is 6.2 divided by 10.4, or 59.6 percent of the OASDI portion of SECA 
taxes, for the first $18,350 of self-employment income.
---------------------------------------------------------------------------
      Rules related to the OASDI rate reduction for 2011 
concerning (1) transfers to the Federal Old-Age and Survivors 
Trust Fund, the Federal Disability Insurance Trust Fund and the 
Social Security Equivalent Benefit Account established under 
the Railroad Retirement Act of 1974, and (2) determining the 
employee rate of OASDI tax in applying provisions of Federal 
law other than the Code also apply for 2012.

                             HOUSE BILL\15\
---------------------------------------------------------------------------

    \15\The House bill passed prior to the enactment of the ``Temporary 
Payroll Tax Cut Continuation Act of 2011'', Pub. L. No. 112-78, 
described above.
---------------------------------------------------------------------------
      Under the House bill, the reduced employee OASDI tax rate 
of 4.2 percent under the FICA tax, and the equivalent portion 
of the RRTA tax, is extended to apply for 2012. Similarly, a 
reduced OASDI tax rate of 10.4 percent under the SECA tax, is 
extended to apply for taxable years beginning in 2012.
      Related rules concerning (1) coordination of a self-
employed individual's deductions in determining net earnings 
from self-employment and income tax, (2) transfers to the 
Federal Old-Age and Survivors Trust Fund, the Federal 
Disability Insurance Trust Fund and the Social Security 
Equivalent Benefit Account established under the Railroad 
Retirement Act of 1974, and (3) determining the employee rate 
of OASDI tax in applying provisions of Federal law other than 
the Code also apply for 2012.
      Effective date.--The provision applies to remuneration 
received, and taxable years beginning, after December 31, 2011.

                          SENATE AMENDMENT\16\
---------------------------------------------------------------------------

    \16\The Senate amendment passed prior to the enactment of the 
``Temporary Payroll Tax Cut Continuation Act of 2011'', Pub. L. No. 
112-78, described above.
---------------------------------------------------------------------------
      Under the Senate amendment, the reduced employee OASDI 
tax rate of 4.2 percent under the FICA tax, and the equivalent 
employee portion of the RRTA tax, applies to covered wages paid 
up to $18,350 in the first two months of 2012.\17\
---------------------------------------------------------------------------
    \17\$18,350 is \1/6\ of the 2012 taxable wage base of $110,100.
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      In addition, for taxable years beginning in 2012, the 
Senate amendment provides that the OASDI rate for a self-
employed individual is reduced to 10.4 percent, for self-
employment income of up to $18,350 (reduced by wages subject to 
the lower OASDI rate for 2012). Related rules for 2011 
concerning coordination of a self-employed individual's 
deductions in determining net earnings from self-employment and 
income tax also apply for 2012, except that the income tax 
deduction allowed for the OASDI portion of SECA tax imposed for 
taxable years beginning in 2012 is computed at the rate of 59.6 
percent\18\ of the OASDI portion of the SECA tax imposed on 
self-employment income of up to $18,350. For self-employment 
income in excess of this amount, the deduction is equal to half 
of the OASDI portion of the SECA tax.
---------------------------------------------------------------------------
    \18\See footnote 14.
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      The Senate amendment also contains rules related to the 
OASDI rate reduction for 2011 concerning (1) transfers to the 
Federal Old-Age and Survivors Trust Fund, the Federal 
Disability Insurance Trust Fund and the Social Security 
Equivalent Benefit Account established under the Railroad 
Retirement Act of 1974, and (2) determining the employee rate 
of OASDI tax in applying provisions of Federal law other than 
the Code also apply for 2012.
      Effective date.--The provision applies to remuneration 
received, and taxable years beginning, after December 31, 2011.

                          CONFERENCE AGREEMENT

      The conference agreement follows the House bill, 
providing for a reduced employee OASDI tax rate of 4.2 percent 
under the FICA tax, and the equivalent potion of the RRTA tax, 
through 2012. Similarly, a reduced OASDI tax rate of 10.4 
percent under the SECA tax applies for taxable years beginning 
in 2012.
      As in the House bill and Senate amendment, related rules 
concerning (1) coordination of a self-employed individual's 
deductions in determining net earnings from self-employment and 
income tax, (2) transfers to the Federal Old-Age and Survivors 
Trust Fund, the Federal Disability Insurance Trust Fund and the 
Social Security Equivalent Benefit Account established under 
the Railroad Retirement Act of 1974, and (3) determining the 
employee rate of OASDI tax in applying provisions of Federal 
law other than the Code also apply for 2012.
      The conference agreement repeals the present-law 
recapture provision applicable to a taxpayer who receives the 
reduced OASDI rate with respect to more than $18,350 of wages 
(or railroad compensation) received during the first two months 
of 2012, and removes the $18,350 limitation on self-employment 
income subject to the lower rate for taxable years beginning in 
2012.
      Effective date.--The provision applies to remuneration 
received, and taxable years beginning, after December 31, 2011.

 B. Repeal of Certain Shifts in the Timing of Corporate Estimated Tax 
 Payments (sec. 6001 of the House bill and sec. 7001 of the conference 
                               agreement)

                              PRESENT LAW

      In general, corporations are required to make quarterly 
estimated tax payments of their income tax liability.\19\ For a 
corporate whose taxable year is a calendar year, these 
estimated payments must be made by April 15, June 15, September 
15, and December 15. In the case of a corporation with assets 
of at least $1 billion (determined as of the end of the 
preceding taxable year):
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    \19\Sec. 6655.
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            (i) payments due in July, August or September, 
        2012, are increased to 100.5 percent of the payment 
        otherwise due;\20\
---------------------------------------------------------------------------
    \20\United States-Korea Free Trade Agreement Implementation Act, 
Pub. L. No. 112-41, sec 505, and United States-Panama Trade Promotion 
Agreement Implementation Act of 2011, Pub. L. No. 112-43, sec 502.
---------------------------------------------------------------------------
            (ii) payments due in July, August, or September, 
        2014, are increased to 174.25 percent of the payment 
        otherwise due;\21\
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    \21\Haiti Economic Lift Program of 2010, Pub. L. No. 111-171, sec. 
12(a); Health Care and Education Reconciliation Act of 2010, Pub. L. 
No. 111-152, sec. 1410; Hiring Incentives to Restore Employment Act, 
Pub. L. No. 111-147, sec. 561(1); Act to extend the Generalized System 
of Preferences and the Andean Trade Preference Act, and for other 
purposes, Pub. L. No. 111-124, sec. 4; Worker, Homeownership, and 
Business Assistance Act of 2009, Pub. L. No. 111-92, sec. 18; Joint 
resolution approving the renewal of import restrictions contained in 
the Burmese Freedom and Democracy Act of 2003, and for other purposes, 
Pub. L. No. 111-42, sec. 202(b)(1).
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            (iii) payments due in July, August or September, 
        2015, are increased to 163.75 percent of the payment 
        otherwise due;\22\
---------------------------------------------------------------------------
    \22\Omnibus Trade Act of 2010, Pub. L. No. 111-344, sec. 10002; 
Small Business Jobs Act of 2010, Pub. L. No. 111-240, sec. 2131; 
Firearms Excise Tax Improvements Act of 2010, Pub. L. No. 111-237, sec. 
4(a); United States Manufacturing Enhancement Act of 2010, Pub. L. No. 
111-227, sec. 4002; Joint resolution approving the renewal of import 
restrictions contained in the Burmese Freedom and Democracy Act of 
2003, and for other purposes, No. 111-210, sec. 3; Haiti Economic Lift 
Program of 2010, Pub. L. No. 111-171, sec. 12(b); Hiring Incentives to 
Restore Employment Act, Pub. L. No. 111-147, sec. 561(2).
---------------------------------------------------------------------------
            (iv) payments due in July, August, or September 
        2016 are increased to 103.5 percent of the payment 
        otherwise due; and\23\
---------------------------------------------------------------------------
    \23\United States-Korea Free Trade Agreement Implementation Act, 
Pub. L. No. 112-41, sec 505; United States-Columbia Trade Promotion 
Agreement Implementation Act, Pub. L. No. 112-42, sec 603; and United 
States-Panama Trade Promotion Agreement Implementation Act, Pub. L. No. 
112-43, sec 502.
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            (v) payments due in July, August or September, 
        2019, are increased to 106.50 percent of the payment 
        otherwise due.\24\
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    \24\Hiring Incentives to Restore Employment Act, Pub. L. No. 111-
147, sec. 561(3).
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                               HOUSE BILL

      The House bill reduces the applicable percentage for 2012 
(100.5 percent), 2014 (174.25 percent), 2015 (163.75 percent), 
2016 (103.5 percent), and 2019 (106.5 percent) to 100 percent. 
Thus corporations will make estimated tax payments in 2012, 
2014, 2015, 2016, and 2019 as if the prior legislation had 
never been enacted or amended.
      Effective date.--The provision is effective on the date 
of enactment.

                            SENATE PROVISION

      No provision.

                          CONFERENCE AGREEMENT

      The conference agreement follows the House bill, 
providing reductions in the applicable percentages for 2012 
(100.5 percent), 2014 (174.25 percent), 2015 (163.75 percent), 
2016 (103.5 percent), and 2019 (106.5 percent) to 100 percent. 
Thus corporations will be required to make estimated tax 
payments in 2012, 2014, 2015, 2016, and 2019 as if the prior 
legislation had never been enacted or amended.

  C. Extension of 100 Percent Bonus Depreciation (sec. 1201(a) of the 
       House bill and secs. 168(k)(5) and 460(c)(6) of the Code)

                              PRESENT LAW

      An additional first-year depreciation deduction is 
allowed equal to 50 percent of the adjusted basis of qualified 
property placed in service between January 1, 2008 and 
September 8, 2010 or between January 1, 2012 and January 1, 
2013 (January 1, 2014 for certain longer-lived and 
transportation property).\25\ An additional first-year 
depreciation deduction is allowed equal to 100 percent of the 
adjusted basis of qualified property if it meets the 
requirements for the additional first-year depreciation and 
also meets the following requirements. First, the taxpayer must 
acquire the property after September 8, 2010 and before January 
1, 2012. Second, the taxpayer must place the property in 
service after September 8, 2010 and before January 1, 2012 
(before January 1, 2013 in the case of certain longer-lived and 
transportation property). Third, the original use of the 
property must commence with the taxpayer after September 8, 
2010.\26\
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    \25\Sec. 168(k). The additional first-year depreciation deduction 
is subject to the general rules regarding whether an item must be 
capitalized under section 263 or section 263A.
    \26\See Rev. Proc. 2011-26, 2011-16 I.R.B. 664 (Apr. 18, 2011) for 
guidance regarding additional first-year depreciation.
---------------------------------------------------------------------------
      The additional first-year depreciation deduction is 
allowed for both regular tax and alternative minimum tax 
purposes, but is not allowed for purposes of computing earnings 
and profits. The basis of the property and the depreciation 
allowances in the year of purchase and later years are 
appropriately adjusted to reflect the additional first-year 
depreciation deduction. In addition, there are no adjustments 
to the allowable amount of depreciation for purposes of 
computing a taxpayer's alternative minimum taxable income with 
respect to property to which the provision applies. The amount 
of the additional first-year depreciation deduction is not 
affected by a short taxable year. The taxpayer may elect out of 
additional first-year depreciation for any class of property 
for any taxable year.
      The interaction of the additional first-year depreciation 
allowance with the otherwise applicable depreciation allowance 
may be illustrated as follows. Assume that in 2009, a taxpayer 
purchased new depreciable property and placed it in 
service.\27\ The property's cost is $1,000, and it is five-year 
property subject to the half-year convention. The amount of 
additional first-year depreciation allowed is $500. The 
remaining $500 of the cost of the property is depreciable under 
the rules applicable to five-year property. Thus, 20 percent, 
or $100, is also allowed as a depreciation deduction in 2009. 
The total depreciation deduction with respect to the property 
for 2009 is $600. The remaining $400 adjusted basis of the 
property generally is recovered through otherwise applicable 
depreciation rules.
---------------------------------------------------------------------------
    \27\Assume that the cost of the property is not eligible for 
expensing under section 179.
---------------------------------------------------------------------------
      Property qualifying for the additional first-year 
depreciation deduction must meet all of the following 
requirements. First, the property must be (1) property to which 
MACRS applies with an applicable recovery period of 20 years or 
less; (2) water utility property (as defined in section 
168(e)(5)); (3) computer software other than computer software 
covered by section 197; or (4) qualified leasehold improvement 
property (as defined in section 168(k)(3)).\28\ Second, the 
original use\29\ of the property must commence with the 
taxpayer after December 31, 2007.\30\ Third, the taxpayer must 
acquire the property within the applicable time period (as 
described below). Finally, the property must be placed in 
service before January 1, 2013. An extension of the placed-in-
service date of one year (i.e., January 1, 2014) is provided 
for certain property with a recovery period of 10 years or 
longer and certain transportation property.\31\ Transportation 
property generally is defined as tangible personal property 
used in the trade or business of transporting persons or 
property.\32\
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    \28\The additional first-year depreciation deduction is not 
available for any property that is required to be depreciated under the 
alternative depreciation system of MACRS. The additional first-year 
depreciation deduction is also not available for qualified New York 
Liberty Zone leasehold improvement property as defined in section 
1400L(c)(2).
    \29\The term ``original use'' means the first use to which the 
property is put, whether or not such use corresponds to the use of such 
property by the taxpayer. If in the normal course of its business a 
taxpayer sells fractional interests in property to unrelated third 
parties, then the original use of such property begins with the first 
user of each fractional interest (i.e., each fractional owner is 
considered the original user of its proportionate share of the 
property).
    \30\A special rule applies in the case of certain leased property. 
In the case of any property that is originally placed in service by a 
person and that is sold to the taxpayer and leased back to such person 
by the taxpayer within three months after the date that the property 
was placed in service, the property would be treated as originally 
placed in service by the taxpayer not earlier than the date that the 
property is used under the leaseback. If property is originally placed 
in service by a lessor, such property is sold within three months after 
the date that the property was placed in service, and the user of such 
property does not change, then the property is treated as originally 
placed in service by the taxpayer not earlier than the date of such 
sale.
    \31\Property qualifying for the extended placed-in-service date 
must have an estimated production period exceeding one year and a cost 
exceeding $1 million.
    \32\Certain aircraft which is not transportation property, other 
than for agricultural or firefighting uses, also qualifies for the 
extended placed-in-service date, if at the time of the contract for 
purchase, the purchaser made a nonrefundable deposit of the lesser of 
10 percent of the cost or $100,000, and which has an estimated 
production period exceeding four months and a cost exceeding $200,000.
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      To qualify, property must be acquired (1) after December 
31, 2007, and before January 1, 2013, but only if no binding 
written contract for the acquisition is in effect before 
January 1, 2008, or (2) pursuant to a binding written contract 
which was entered into after December 31, 2007, and before 
January 1, 2013.\33\ With respect to property that is 
manufactured, constructed, or produced by the taxpayer for use 
by the taxpayer, the taxpayer must begin the manufacture, 
construction, or production of the property after December 31, 
2007, and before January 1, 2013. Property that is 
manufactured, constructed, or produced for the taxpayer by 
another person under a contract that is entered into prior to 
the manufacture, construction, or production of the property is 
considered to be manufactured, constructed, or produced by the 
taxpayer. For property eligible for the extended placed-in-
service date, a special rule limits the amount of costs 
eligible for the additional first-year depreciation. With 
respect to such property, only the portion of the basis that is 
properly attributable to the costs incurred before January 1, 
2013 (``progress expenditures'') is eligible for the additional 
first-year depreciation deduction.\34\
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    \33\Property does not fail to qualify for the additional first-year 
depreciation merely because a binding written contract to acquire a 
component of the property is in effect prior to January 1, 2008.
    \34\For purposes of determining the amount of eligible progress 
expenditures, it is intended that rules similar to section 46(d)(3) as 
in effect prior to the Tax Reform Act of 1986, Pub. L. No. 99-514, 
apply.
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      Property does not qualify for the additional first-year 
depreciation deduction when the user of such property (or a 
related party) would not have been eligible for the additional 
first-year depreciation deduction if the user (or a related 
party) were treated as the owner. For example, if a taxpayer 
sells to a related party property that was under construction 
prior to January 1, 2008, the property does not qualify for the 
additional first-year depreciation deduction. Similarly, if a 
taxpayer sells to a related party property that was subject to 
a binding written contract prior to January 1, 2008, the 
property does not qualify for the additional first-year 
depreciation deduction. As a further example, if a taxpayer 
(the lessee) sells property in a sale-leaseback arrangement, 
and the property otherwise would not have qualified for the 
additional first-year depreciation deduction if it were owned 
by the taxpayer-lessee, then the lessor is not entitled to the 
additional first-year depreciation deduction.
      The limitation under section 280F on the amount of 
depreciation deductions allowed with respect to certain 
passenger automobiles is increased in the first year by $8,000 
for automobiles that qualify (and for which the taxpayer does 
not elect out of the additional first-year deduction). The 
$8,000 increase is not indexed for inflation.
Percentage-of-completion method
      In general, in the case of a long-term contract, the 
taxable income from the contract is determined under the 
percentage-of-completion method. Solely for purposes of 
determining the percentage of completion under section 
460(b)(1)(A), the cost of qualified property with a MACRS 
recovery period of seven years or less is taken into account as 
a cost allocated to the contract as if bonus depreciation had 
not been enacted for property placed in service after December 
31, 2009 and before January 1, 2011 (January 1, 2012, for 
certain longer-lived and transportation property). Bonus 
depreciation is taken into account in determining taxable 
income under the percentage-of-completion method for property 
placed in service after December 31, 2010.

                               HOUSE BILL

      The House bill increases the additional first-year 
depreciation deduction from 50 percent to 100 percent of the 
adjusted basis of qualified property placed in service after 
December 31, 2011, and before January 1, 2013 (January 1, 2014, 
for certain longer-lived and transportation property).
      The provision provides that solely for purposes of 
determining the percentage of completion under section 
460(b)(1)(A), the cost of qualified property with a MACRS 
recovery period of seven years or less which is placed in 
service after December 31, 2011, and before January 1, 2013 
(January 1, 2014, for certain longer-lived and transportation 
property) is taken into account as a cost allocated to the 
contract as if bonus depreciation had not been enacted.
      Effective date.--The provision applies to property placed 
in service after December 31, 2011.

                            SENATE AMENDMENT

      No provision.

                          CONFERENCE AGREEMENT

      The conference agreement does not include the provision 
from the House bill.

  D. Expansion of Election to Accelerate AMT Credits in Lieu of Bonus 
Depreciation (sec. 1201(b) of the House bill and sec. 168(k)(4) of the 
                                 Code)

                              PRESENT LAW

      A corporation may elect to claim additional alternative 
minimum tax (``AMT'') credits in lieu of claiming additional 
first year depreciation (``bonus depreciation'') on eligible 
qualified property\35\ placed in service after December 31, 
2010, and before January 1, 2013 (January 1, 2014, in the case 
of certain longer-lived property and transportation 
property).\36\ A corporation making the election (i) forgoes 
bonus depreciation for eligible qualified property, (ii) uses 
the straight-line method of depreciation for eligible qualified 
property, and (iii) increases the limitation on the allowance 
of AMT credit by the bonus depreciation amount.\37\ The 
increase in the allowable AMT credit by reason of the election 
is treated as refundable.
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    \35\The term ``eligible qualified property'' means property 
eligible for bonus depreciation, with minor effective date differences.
    \36\Sec. 168(k)(4).
    \37\Sec. 53(c) otherwise limits the allowable AMT credit for a 
taxable year to the excess of the regular tax liability (reduced by 
certain credits) over the tentative minimum tax for the taxable year.
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      The bonus depreciation amount is 20 percent of the 
difference between (i) the aggregate amount of depreciation for 
all eligible qualified property placed in service by the 
corporation that would be allowed if bonus depreciation applied 
using the most accelerated depreciation method (determined 
without regard to this provision), and shortest life allowable 
for each property, and (ii) the amount of depreciation that 
would be allowed if bonus depreciation did not apply using the 
same method and life for each property.
      The bonus depreciation amount for any taxable year is 
limited to the lesser of (i) $30 million, or (ii) six percent 
of the AMT credit for the year attributable to the adjusted net 
minimum tax for taxable years beginning before January 1, 2006 
(determined by treating credits as allowed on a first-in, 
first-out basis), reduced by the sum of certain bonus 
depreciation amounts for prior taxable years.
      In the case of an electing corporation that is a partner 
in a partnership, the corporation's distributive share of 
partnership items is determined without regard to bonus 
depreciation and by using the straight-line method of 
depreciation. No partnership property is taken into account in 
determining a corporation's bonus depreciation amount.
      Generally an election under this provision for a taxable 
year applies to subsequent taxable years.
      All corporations treated as a single employer under 
section 52(a) are treated as one taxpayer for purposes of the 
provision and are treated as having made an election under this 
provision if any of the corporations so elects.

                               HOUSE BILL

      The House bill revises the provision allowing a 
corporation to elect to claim additional AMT credits in lieu of 
bonus depreciation.\38\ The House bill provision follows the 
substance of present law with the following changes:
---------------------------------------------------------------------------
    \38\The House bill rewrites section 168(k)(4) in order to delete a 
substantial amount of ``deadwood'' from the language of present law.
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      Under the House bill, the bonus depreciation amount for 
any taxable year is limited to the lesser of (i) the AMT credit 
for the year attributable to the adjusted net minimum tax for 
taxable years ending before January 1, 2012 (determined by 
treating credits as allowed on a first-in, first-out basis), or 
(ii) 50 percent of the AMT credit for the first taxable year 
ending after December 31, 2011.
      In the case of a partnership in which more than 50 
percent of the capital and profits interests are owned 
(directly or indirectly) by one corporation (or by corporations 
treated as one taxpayer for purposes of this provision), the 
bonus depreciation amount is computed by treating each partner 
as having an amount equal to that partner's allocable share of 
the eligible property for the taxable year (as determined under 
regulations prescribed by the Secretary).
      A corporation may make a separate election for each 
taxable year.
      Effective date.--The provision applies to taxable years 
ending after December 31, 2011.
      For a taxable year which begins before January 1, 2012, 
and ends after December 31, 2011, the bonus depreciation amount 
is the sum of the amounts computed separately for each portion 
of the taxable year by treating each portion as a separate 
taxable year taking into account property placed in service by 
the corporation during that portion of the taxable year.

                            SENATE AMENDMENT

      No provision.

                          CONFERENCE AGREEMENT

      The conference agreement does not include the provision 
from the House bill.

   E. Adjustments to Maximum Thresholds for Recapturing Overpayments 
Resulting From Certain Federally-subsidized Health Insurance (sec. 2221 
              of the House bill and sec. 36B of the Code)

                              PRESENT LAW

Premium assistance credit
      For taxable years ending after December 31, 2013, section 
36B provides a refundable tax credit (the ``premium assistance 
credit'') for eligible individuals and families who purchase 
health insurance through an American Health Benefit Exchange. 
The premium assistance credit, which is refundable and payable 
in advance directly to the insurer, subsidizes the purchase of 
certain health insurance plans through an American Health 
Benefit Exchange.
      The premium assistance credit is available for 
individuals (single or joint filers) with household incomes 
between 100 and 400 percent of the Federal poverty level 
(``FPL'') for the family size involved who do not receive 
health insurance through an employer or a spouse's 
employer.\39\ Household income is defined as the sum of: (1) 
the taxpayer's modified adjusted gross income, plus (2) the 
aggregate modified adjusted gross incomes of all other 
individuals taken into account in determining that taxpayer's 
family size (but only if such individuals are required to file 
a tax return for the taxable year). Modified adjusted gross 
income is defined as adjusted gross income increased by: (1) 
any amount excluded by section 911 (the exclusion from gross 
income for citizens or residents living abroad), (2) any tax-
exempt interest received or accrued during the tax year, and 
(3) an amount equal to the portion of the taxpayer's social 
security benefits (as defined in section 86(d)) that is 
excluded from income under section 86 (that is, the amount of 
the taxpayer's Social Security benefits that are excluded from 
gross income).\40\ To be eligible for the premium assistance 
credit, taxpayers who are married (within the meaning of 
section 7703) must file a joint return. Individuals who are 
listed as dependents on a return are ineligible for the premium 
assistance credit.
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    \39\Individuals who are lawfully present in the United States but 
are not eligible for Medicaid because of their immigration status are 
treated as having a household income equal to 100 percent of FPL (and 
thus eligible for the premium assistance credit) as long as their 
household income does not actually exceed 100 percent of FPL.
    \40\The definition of modified adjusted gross income used in 
section 36B is incorporated by reference for purposes of determining 
eligibility to participate in certain other healthcare-related 
programs, such as reduced cost-sharing (section 1402 of PPACA)), 
Medicaid for the nonelderly (section 1902(e) of the Social Security Act 
(42 U.S.C. 1396a(e)) as modified by section 2002(a) of PPACA) and the 
Children's Health Insurance Program (section 2102(b)(1)(B) of the 
Social Security Act (42 U.S.C. 1397bb(b)(1)(B)) as modified by section 
2101(d) of PPACA).
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      As described in Table 1 below, premium assistance credits 
are available on a sliding scale basis for individuals and 
families with household incomes between 100 and 400 percent of 
FPL to help offset the cost of private health insurance 
premiums. The premium assistance credit amount is determined 
based on the percentage of income the cost of premiums 
represents, rising from two percent of income for those at 100 
percent of FPL for the family size involved to 9.5 percent of 
income for those at 400 percent of FPL for the family size 
involved. After 2014, the percentages of income are indexed to 
the excess of premium growth over income growth for the 
preceding calendar year. After 2018, if the aggregate amount of 
premium assistance credits and cost-sharing reductions\41\ 
exceeds 0.504 percent of the gross domestic product for that 
year, the percentage of income is also adjusted to reflect the 
excess (if any) of premium growth over the rate of growth in 
the consumer price index for the preceding calendar year. For 
purposes of calculating family size, individuals who are in the 
country illegally are not included.
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    \41\As described in section 1402 of PPACA.

            TABLE 1.--THE PREMIUM ASSISTANCE CREDIT PHASE-OUT
------------------------------------------------------------------------
                                              Initial
    Household income  (expressed as a         premium      Final premium
             percent of FPL)               (percentage)    (percentage)
------------------------------------------------------------------------
100% up to 133%.........................            2.0             2.0
133% up to 150%.........................            3.0             4.0
150% up to 200%.........................            4.0             6.3
200% up to 250%.........................            6.3             8.05
250% up to 300%.........................            8.05            9.5
300% up to 400%.........................            9.5             9.5
------------------------------------------------------------------------

Minimum essential coverage and employer offer of health insurance 
        coverage
      Generally, if an employee is offered minimum essential 
coverage\42\ in the group market, including employer-provided 
health insurance coverage, the individual is ineligible for the 
premium assistance credit for health insurance purchased 
through an exchange.
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    \42\As defined in section 5000A(f).
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      If an employee is offered unaffordable coverage by his or 
her employer or the plan's share of total allowed cost of 
provided benefits is less than 60 percent of such costs, the 
employee can be eligible for the premium assistance credit, but 
only if the employee declines to enroll in the coverage and 
satisfies the conditions for receiving a premium assistance 
credit through an American Health Benefit Exchange. 
Unaffordable coverage, as defined by Federal law, is coverage 
with a premium required to be paid by the employee that is more 
than 9.5 percent of the employee's household income, based on 
self-only coverage.\43\
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    \43\The 9.5 percent amount is indexed for calendar years beginning 
after 2014 to reflect the excess of premium growth over income growth.
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Reconciliation
      If the premium assistance credit received through advance 
payment exceeds the amount of premium assistance credit to 
which the taxpayer is entitled for the taxable year, the 
liability for the overpayment must be reflected on the 
taxpayer's income tax return for the taxable year subject to a 
limitation on the amount of such liability. For persons with 
household income below 400 percent of FPL, the liability for 
the overpayment for a taxable year is limited to a specific 
dollar amount (the ``applicable dollar amount'') as shown in 
Table 2 below (one-half of the applicable dollar amount shown 
in Table 2 for unmarried individuals who are not surviving 
spouses or filing as heads of households).\44\
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    \44\Section 36B(f)(2), as amended by section 208 of the Medicare 
and Medicaid Extenders Act of 2010, Pub. L. No. 111-309 and section 4 
of the Comprehensive 1099 Taxpayer Protection and Repayment of Exchange 
Subsidy Overpayments Act of 2011, Pub. L. No. 112-9.

                        TABLE 2.--RECONCILIATION
------------------------------------------------------------------------
                                                              Applicable
     Household income  (expressed as a percent of FPL)          dollar
                                                                amount
------------------------------------------------------------------------
Less than 100%.............................................         $600
At least 200% but less than 300%...........................        1,500
At least 300% but less than 400%...........................        2,500
------------------------------------------------------------------------

      If the premium assistance credit for a taxable year 
received through advance payment is less than the amount of the 
credit to which the taxpayer is entitled for the year, the 
shortfall in the credit is also reflected on the taxpayer's tax 
return for the year.

                               HOUSE BILL

      The House bill changes the applicable dollar amount, as 
shown in Table 3 below (one-half of the applicable dollar 
amount shown in Table 3 for unmarried individuals who are not 
surviving spouses or filing as heads of households).

                    TABLE 3.--ADJUSTED RECONCILIATION
------------------------------------------------------------------------
                                                              Applicable
     Household income  (expressed as a percent of FPL)          dollar
                                                                amount
------------------------------------------------------------------------
Less than 100%.............................................         $600
At least 100% but less than 150%...........................          800
At least 150% but less than 200%...........................        1,000
At least 200% but less than 250%...........................        1,500
At least 250% but less than 300%...........................        2,200
At least 300% but less than 350%...........................        2,500
At least 350% but less than 400%...........................        3,200
------------------------------------------------------------------------

      Effective date.--The provision is effective on the date 
of enactment.

                            SENATE AMENDMENT

      No provision.

                          CONFERENCE AGREEMENT

      The conference agreement does not include the provision 
from the House bill.

F. Information for Administration of Social Security Provisions Related 
 to Noncovered Employment (sec. 5101 of the House bill and secs. 6047 
                        and 6103(l) of the Code)

                              PRESENT LAW

      The administrator of an employer-sponsored retirement 
plan, including a plan maintained by a State or local 
government, is required to comply with reporting requirements 
prescribed by the IRS.\45\ In the case of a distribution to a 
participant or beneficiary, the amount of the distribution and 
other required information must be reported to the IRS and the 
participant or beneficiary on the Form 1099-R.
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    \45\Sec. 6047(d).
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      Tax returns and return information (including information 
returns) received by the IRS are subject to confidentiality 
protections and cannot be disclosed, including to another 
Federal agency, unless specifically authorized.\46\ Disclosure 
of certain returns and return information to the Social 
Security Administration for specific purposes is so 
authorized.\47\
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    \46\Sec. 6103.
    \47\Sec. 6103(h)(5), (l)(1), (l)(5).
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                               HOUSE BILL

      The House bill amends the reporting requirements 
applicable to employer-sponsored retirement plans of State and 
local governments to require the identification of any 
distribution based in whole or in part on earnings for service 
in the employ of the State or local government, to the extent 
such information is known or should be known.\48\ The House 
bill authorizes disclosure of this information by the IRS to 
the Social Security Administration for purposes of its 
administration of the Social Security Act.
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    \48\For this purpose, State includes the District of Columbia, the 
Commonwealth of Puerto Rico, the Virgin Islands, Guam and American 
Samoa.
---------------------------------------------------------------------------
      Effective date.--The provision applies to distributions 
and disclosures made after December 31, 2012.

                            SENATE AMENDMENT

      No provision.

                          CONFERENCE AGREEMENT

      The conference agreement does not include the provision 
from the House bill.

 G. Social Security Number Required To Claim the Refundable Portion of 
 the Child Tax Credit (sec. 5201 of the House bill and sec. 24 of the 
                                 Code)

                              PRESENT LAW

      An individual may claim a tax credit for each qualifying 
child under the age of 17. The maximum amount of the credit per 
child is $1,000 through 2012 and $500 thereafter. A child who 
is not a citizen, national, or resident of the United States 
cannot be a qualifying child. If the child tax credit exceeds 
the taxpayer's tax liability, the taxpayer may be eligible for 
a refundable credit.
      No credit is allowed to any taxpayer with respect to any 
qualifying child unless the taxpayer includes the name and the 
taxpayer identification number of the qualifying child on the 
return of tax for the taxable year. For individual filers, a 
taxpayer identification number may be either a Social Security 
number (``SSN''), an IRS individual taxpayer identification 
number (``ITIN''), or an IRS adoption taxpayer identification 
number (``ATIN'').

                               HOUSE BILL

      The House bill adds a requirement that the refundable 
portion of the child tax credit is allowable only if the tax 
return includes the taxpayer's SSN (or in the case of a joint 
return, the SSN of either spouse).
      Effective date.--The provision applies to taxable years 
beginning after the date of enactment.

                            SENATE AMENDMENT

      No provision.

                          CONFERENCE AGREEMENT

      The conference agreement does not include the provision 
from the House bill.

  H. Excise Tax on Unemployment Compensation Benefits of High-Income 
Individuals (sec. 5301 of the House bill and new sec. 5895 of the Code)

                              PRESENT LAW

      Gross income includes any unemployment compensation 
benefits received under the laws of the United States or any 
State, and is taxed at the applicable individual income tax 
rate.\49\
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    \49\Sec. 85.
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                               HOUSE BILL

      The House bill imposes an excise tax equal to 100 percent 
on unemployment compensation benefits received by individuals 
with adjusted gross income above certain thresholds. The 
adjusted gross income threshold is $750,000 ($1,500,000 for 
married individuals filing joint returns). The excise tax is 
phased-in ratably over a $250,000 range ($500,000 for married 
individuals filing joint returns). Therefore unemployment 
compensation benefits are taxed at a 100 percent rate for 
individuals with $1,000,000 or more of adjusted gross income 
($2,000,000 or more of adjusted gross income for married 
individuals filing joint returns).
      The excise tax is not deductible in computing the 
taxpayer's taxable income.
      Effective date.--The provision applies to taxable years 
beginning after December 31, 2011.

                            SENATE AMENDMENT

      No provision.

                          CONFERENCE AGREEMENT

      The conference agreement does not include the provision 
from the House bill.

                        TAX COMPLEXITY ANALYSES

      The following tax complexity analysis is provided 
pursuant to section 4022(b) of the Internal Revenue Service 
Reform and Restructuring Act of 1998, which requires the staff 
of the Joint Committee on Taxation (in consultation with the 
Internal Revenue Service (``IRS'') and the Treasury Department) 
to provide a complexity analysis of tax legislation reported by 
the House Committee on Ways and Means, the Senate Committee on 
Finance, or a Conference Report containing tax provisions. The 
complexity analysis is required to report on the complexity and 
administrative issues raised by provisions that directly or 
indirectly amend the Internal Revenue Code and that have 
widespread applicability to individuals or small businesses. 
For each such provision identified by the staff of the Joint 
Committee on Taxation, a summary description of the provision 
is provided along with an estimate of the number and type of 
affected taxpayers, and a discussion regarding the relevant 
complexity and administrative issues.
      Following the analysis of the staff of the Joint 
Committee on Taxation are the comments of the IRS and the 
Treasury Department regarding each of the provisions included 
in the complexity analysis, including a discussion of the 
likely effect on IRS forms and any expected impact on the IRS.

1. EXTENSION OF THE PAYROLL TAX REDUCTION (SEC. 1001 OF THE CONFERENCE 
                               AGREEMENT)

Summary description of provision
      The conference agreement provides for a reduced employee 
OASDI tax rate of 4.2 percent under the FICA tax, and the 
equivalent portion of the RRTA tax, through 2012. Similarly, 
the reduced OASDI tax rate of 10.4 percent under the SECA tax, 
is extended to apply for taxable years of self-employed 
individuals that begin in 2012.
      Related rules concerning (1) coordination of a self-
employed individual's deductions in determining net earnings 
from self-employment and income tax, (2) transfers to the 
Federal Old-Age and Survivors Trust Fund, the Federal 
Disability Insurance Trust Fund and the Social Security 
Equivalent Benefit Account established under the Railroad 
Retirement Act of 1974, and (3) determining the employee rate 
of OASDI tax in applying provisions of Federal law other than 
the Code also apply for 2012.
      The conference agreement repeals the present-law 
recapture provision applicable to a taxpayer who receives the 
reduced OASDI rate with respect to more than $18,350 of wages 
received during the first two months of 2012.
      The bill is effective after the date of enactment.
Number of affected taxpayers
      It is estimated that the provision will affect more than 
10 percent of individual taxpayers and small businesses.
Discussion
      It is not anticipated that taxpayers and small businesses 
will need to keep additional records due to this provision. 
Extensive additional regulatory guidance will not be necessary 
to effectively implement the provision. It is not anticipated 
that the provision will result in an increase in disputes 
between small businesses and the IRS.
      The provision likely will not increase the tax 
preparation costs for most individuals and small businesses. 
Affected individuals and small businesses will not be required 
to perform additional and complex calculations to comply with 
the provision.
      It is anticipated that the Secretary of the Treasury will 
have to make appropriate revisions to several types of tax 
forms and instructions.
                        Department of the Treasury,
                                  Internal Revenue Service,
                                 Washington, DC, February 15, 2012.
Thomas A. Barthold, 
Chief of Staff, Joint Committee on Taxation,
Washington, DC
      Dear Mr. Barthold: I am responding to your letter dated 
February 14, 2012, in which you requested a complexity analysis 
related to the extension of the payroll tax holiday enacted 
under section 101 of the Temporary Payroll Tax Cut Continuation 
Act of 2011.
      Enclosed are the combined comments of the Internal 
Revenue Service and the Treasury Department for inclusion in 
the complexity analysis in the Conference Report on H.R. 3630.
      Our comments are based on the description of the 
provision provided in your letter. The analysis does not 
include administrative cost estimates for the changes that 
would be required. Due to the short turnaround time, our 
comments are provisional and subject to change upon a more 
complete and in-depth analysis of the provision. The analysis 
does not cover any other provisions of the bill.
            Sincerely,
                                                Douglas H. Shulman.
      Enclosure.

        COMPLEXITY ANALYSIS OF CONFERENCE AGREEMENT ON H.R. 3630

                  EXTENSION OF THE PAYROLL TAX HOLIDAY

      The conference agreement provides for a reduced employee 
OASDI tax rate of 4.2 percent under the FICA tax, and the 
equivalent portion of the RRTA tax, through 2012. Similarly, 
the reduced OASDI tax rate of 10.4 percent under the SECA tax 
is extended for taxable years of self-employed individuals that 
begin in 2012.
      The agreement provides related rules concerning (1) 
coordination of a self-employed individual's deductions in 
determining net earnings from self-employment and income tax, 
(2) transfers to the Federal Old-Age and Survivors Trust Fund, 
the Federal Disability Insurance Trust Fund and the Social 
Security Equivalent Benefit Account established under the 
Railroad Retirement Act of 1974, and (3) determining the 
employee rate of OASDI tax in applying provisions of Federal 
law other than the Code that also apply for 2012.
      The conference agreement repeals the present-law 
recapture provision applicable to a taxpayer who receives the 
reduced OASDI rate with respect to more than $18,350 of wages 
received during the first two months of 2012.

                       IRS AND TREASURY COMMENTS

       This provision is an extension of current law 
(except for the repeal of the recapture of excess benefit) and 
should not add significant burden to taxpayers and the public 
in general.
       IRS has taken measures to prepare in case the 
Temporary Payroll Tax Cut is not extended, including revising 
forms and instructions and programming systems. If this 
provision is enacted, the IRS will have to adjust its forms and 
systems to reflect the extension. Computer software providers 
and large employers may also have programmed their systems for 
current law and would need to make similar adjustments.
       No new guidance would be required.
       IRS will have to make small modifications to 
certain notices to, and publications for, employers.
       There will be minimal impact on IRS training and 
the Internal Revenue Manual.
      Pursuant to clause 9 of rule XXI of the Rules of the 
House of Representatives, no provision in this conference 
report or joint explanatory statement includes a congressional 
earmark, limited tax benefit, or limited tariff benefit.
                                   Dave Camp,
                                   Fred Upton,
                                   Kevin Brady,
                                   Greg Walden,
                                   Tom Price,
                                   Tom Reed,
                                   Renee L. Ellmers,
                                   Nan A.S. Hayworth,
                                   Sander M. Levin,
                                   Xavier Becerra,
                                   Chris Van Hollen,
                                   Allyson Y. Schwartz,
                                   Henry A. Waxman,
                                 Managers on the Part of the House.

                                   Max Baucus, 
                                   Jack Reed,
                                   Benjamin L. Cardin,
                                   Robert P. Casey, Jr.,
                                Managers on the Part of the Senate.