SECTION 1. SHORT TITLE; REFERENCES. (a) Short Title.--This Act may be cited as the ``Student Loan Evaluation and Stabilization Act of 1995''. (b) References.--References in this Act to ``the Act'' are references to the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.). SEC. 2. FINDINGS. The Congress finds that: (1) The current public/private student loan partnership is fulfilling the mission set for it by Congress, delivering loans to students reliably and in a timely fashion, and should be preserved. (2) The Administration's dismantling of the Federal Family Education Loan (FFEL) Program which has begun in order to replace it with an unproven direct Government lending program, which increases the Federal debt, further enlarges the Federal bureaucracy, adds major new financial oversight activities to the already overburdened Department of Education, and forces Congress to depend on estimated budget savings which may prove illusory, needs to be stopped so that a true and valid comparison of the student loan programs can occur. (3) The Federal Direct Student Loan (FDSL) Program pilot is only now getting started and has proceeded fairly smoothly when dealing with 5 percent of new loan volume. This slow and cautious approach should be continued as the volume increases to 40 percent. This pilot program should continue to proceed slowly and cautiously and demonstrate successful results before expanding it to additional loan volume. (4) While the FDSL Program pilot continues its test phase, reform of the FFEL Program which will benefit students and institutions of higher education should be a continuing priority for the Department of Education. SEC. 3. PARTICIPATION OF INSTITUTIONS AND ADMINISTRATION OF DIRECT LOAN PROGRAMS. (a) Limitation on Proportion of Loans Made Under Direct Loan Program.--Section 453(a) of the Act (20 U.S.C. 1087c(a)) is amended-- (1) by amending paragraph (2) to read as follows: ``(2) Determination of number of agreements.--In the exercise of the Secretary's discretion, the Secretary shall enter into agreements under subsections (a) and (b) of section 454 with institutions for participation in the programs under this part, subject to the following: ``(A) for academic year 1994-1995, loans made under this part shall represent 5 percent of the new student loan volume for such year; and ``(B) for academic year 1995-1996 and for any succeeding fiscal year, loans made under this part shall be limited to loans to students and parents of students attending eligible institutions that have applied and been accepted for participation in the program under this part on or before December 31, 1994.'' (2) by striking paragraph (3); and (3) by redesignating paragraph (4) as paragraph (3). (b) Elimination of Conscription.--Section 453(b)(2) of such Act is amended-- (1) by striking subparagraph (B); (2) by redesignating subparagraphs (A)(i) and (A)(ii) as subparagraphs (A) and (B) respectively; and (3) in such subparagraph (B) (as so redesignated) by striking ``clause (i); and'' and inserting ``subparagraph (A).''. (c) Control of Administrative Expenses.-- (1) In general.--Section 458(a) of the Act is amended to read as follows: ``(a) In General.--Each fiscal year, there shall be available to the Secretary of Education from funds not otherwise appropriated, funds to be obligated for administrative costs under this part, not to exceed (from such funds not otherwise appropriated) $260,000,000 in fiscal year 1994, $295,000,000 in fiscal year 1995, $395,000,000 in fiscal year 1996, $400,000,000 in fiscal year 1997, and $400,000,000 in fiscal year 1998. Such administrative costs shall include the costs of annually assessing the program under this part and, subject to subsection (e) of this section, payment of an administrative cost allowance for the expenses of guaranty agencies in servicing outstanding loans in their portfolios and in guaranteeing new loans. If in any fiscal year the Secretary determines that additional funds for administrative expenses are needed, the Secretary is authorized to use funds available under this section for a subsequent fiscal year for such expenses, except that the total expenditures by the Secretary (from such funds not otherwise appropriated) shall not exceed $1,750,000,000 in fiscal years 1994 through 1998. The Secretary is also authorized to carry over funds available under this section to a subsequent fiscal year.''. (2) Improved congressional oversight of administration.-- Section 458 of the Act is further amended-- (A) by redesignating subsection (d) as subsection (g); and (B) by inserting after subsection (c) the following new subsections: ``(d) Funding Triggers.--For each fiscal year, funds available under this section may be obligated only in such amounts and according to such schedule as specified in the appropriations Act for the Department of Education after submission by the Department of Education of a detailed proposal of expenditures under this section. ``(e) Administrative Cost Allowance.-- ``(1) Conditions of receipt.--A guaranty agency may not obtain an administrative cost allowance from funds available under subsection (a) unless the guaranty agency has submitted an application in accordance with section 428(f)(2). A guaranty agency that receives such an allowance may expend such allowance for the purposes described in clauses (i) through (v) of section 428(f)(1)(A). ``(2) Election of payment rate.--For each fiscal year, at the time of its application for payments under section 428(f)(2), each guaranty agency shall elect to receive an administrative cost allowance, payable quarterly, for the next fiscal year calculated on the basis of either of the following: ``(A) 0.85 percent of the total principal amount of the loans upon which insurance was issued under part B during such fiscal year by such guaranty agency; or ``(B) 0.08 percent of the original principal amount of loans guaranteed by the guaranty agency that was outstanding at the end of the previous fiscal year. ``(3) Ratable reduction.--If the total amount of funds to be expended by the Secretary for purposes of paying the administrative cost allowances to all guaranty agencies in accordance with this provision exceeds $150,000,000 for any fiscal year, the Secretary shall ratably reduce such payments to all guaranty agencies. ``(f) Quarterly Report.--The Secretary shall provide a detailed quarterly report of all monies expended under this section to the Chairman of the Committee on Labor and Human Resources of the Senate and the Chairman of the Committee on Economic and Educational Opportunities of the House of Representatives. Such report shall specifically identify all contracts entered into by the Department for services supporting the loan programs under parts B and D of this title and the current and projected costs of such contracts.''. (d) Elimination of Transition to Direct Loans.--The Act is further amended-- (1) in section 422(c)(7)-- (A) by striking ``during the transition'' and all that follows through ``part D of this title'' in subparagraph (A); and (B) by striking ``section 428(c)(10)(F)(v)'' in subparagraph (B) and inserting ``section 428(c)(9)(F)(v)''; (2) in section 428(c)(8)-- (A) by striking ``(A)'' after the paragraph designation; and (B) by striking subparagraph (B); (3) in section 428(c)(9)(E)-- (A) by inserting ``or'' after the semicolon at the end of clause (iv); (B) by striking ``; or'' at the end of clause (v) and inserting a period; and (C) by striking clause (vi); (4) in clause (vii) of section 428(c)(9)(F)-- (A) by inserting ``and'' before ``to avoid disruption''; and (B) by striking ``, and to ensure an orderly transition'' and all that follows through the end of such clause and inserting a period; (5) in section 428(c)(9)(K), by striking ``the progress of the transition from the loan programs under this part to'' and inserting ``the integrity and administration of''; (6) in section 428(e)(1)(B)(ii), by striking ``during the transition'' and all that follows through ``part D of this title''; (7) in section 428(e)(3), by striking ``of transition''; (8) in section 428(j)(3)-- (A) by striking ``during transition to direct lending''; and (B) by striking ``during the transition'' and all that follows through ``part D of this title,'' and inserting a comma; (9) in section 453(c)(2), by striking ``Transition'' and inserting ``Institutional''; (10) in section 453(c)(3), by striking ``after transition''; and (11) in section 456(b)-- (A) by inserting ``and'' after the semicolon at the end of paragraph (3); (B) by striking paragraph (4); (C) by redesignating paragraph (5) as paragraph (4); and (D) in such paragraph (4) (as redesignated), by striking ``successful operation'' and inserting ``integrity and efficiency''. SEC. 4. ABILITY OF BORROWERS TO CONSOLIDATE UNDER DIRECT AND GUARANTEED LOAN PROGRAMS. (a) Ability of Part D Borrowers to Obtain Federal Stafford Consolidation Loans.--Section 428C(a)(4) of the Act (20 U.S.C. 1078- 3(a)(4)) is amended-- (1) by striking ``or'' at the end of subparagraph (B); (2) by redesignating subparagraphs (C) and (D) as subparagraphs (D) and (E); and (3) by inserting after subparagraph (B) the following new subparagraph: ``(C) made under part D of this title;''. (b) Ability of Part B Borrowers to Obtain Federal Direct Consolidation Loans.--Section 428C(b)(5) of such Act is amended to read as follows: ``(5) Direct consolidation loans for borrowers in specified circumstances.-- ``(A) The Secretary may offer a borrower a direct consolidation loan in the event that a borrower otherwise eligible for a consolidation loan pursuant to this section is-- ``(i) unable to obtain a consolidation loan from a lender with an agreement under subsection (a)(1), or ``(ii)(I) evidences a substantial existing or projected difficulty in repaying loans received under this part; and ``(II) desires a consolidation loan with an income contingent repayment schedule as offered to borrowers under part D of this title. ``(B) The Secretary shall establish appropriate certification procedures to verify the eligibility of borrowers for loans pursuant to this paragraph. ``(C) The Secretary shall not offer such consolidation loans if, in the Secretary's judgment, the Department of Education does not have the necessary origination and servicing arrangements in place for such loans, or the projected volume in the program would be destabilizing to the availability of loans otherwise available under this part.''. SEC. 5. RESERVE FUND PROGRAMS. (a) Guaranty Agency Reserve Levels.--Section 428(c)(9) of such Act (20 U.S.C. 1078(c)(9)) is amended-- (1) in subparagraph (E)-- (A) by striking ``The Secretary'' and inserting ``After notice and opportunity for a hearing on the record, the Secretary''; (B) by inserting ``or'' after the semicolon at the end of clause (iv); (C) by striking ``; or'' at the end of clause (v) and inserting a period; and (D) by striking clause (vi); and (2) in subparagraph (F)-- (A) by inserting ``dedicated to the functions of the agency under the loan insurance program under this part'' after ``assets of the guaranty agency'' in clause (vi); and (B) in clause (vi), by inserting before ``; or'' the following ``, except that the Secretary may not take any action to require the guaranty agency to provide to the Secretary the unencumbered non-Federal portion of a reserve fund (as defined in section 422(a)(2))''. (b) Additional Amendments.--Section 422 of such Act is further amended-- (1) in the last sentence of subsection (a)(2), by striking ``Except as provided in section 428(c)(10) (E) or (F), such'' and inserting ``Such''; (2) in subsection (g), by striking paragraph (4) and inserting the following: ``(4) Disposition of funds returned to or recovered by the secretary.--Any funds that are returned to or otherwise recovered by the Secretary pursuant to this subsection shall be returned to the Treasury of the United States for purposes of reducing the Federal debt and shall be deposited into the special account under section 3113(d) of title 31, United States Code.''. SEC. 6. DEFAULT RATE LIMITATIONS ON DIRECT LENDING. Section 455 of the Act is amended by adding at the end the following new subsection: ``(k) Termination of Institutions for High Default Rates.-- ``(1) Methodology and criteria.--After consultation with institutions of higher education and other members of the higher education community, the Secretary shall develop-- ``(A) a methodology for the calculation of institutional default rates under the loan programs operated pursuant to this part; ``(B) criteria for the initiation of termination proceedings on basis of such default rates; and ``(C) procedures for the conduct of such termination proceedings. ``(2) Comparability to part b.--In developing the methodology, criteria, and procedures required by paragraph (1), the Secretary shall, to the maximum extent possible, establish standards for the termination of institutions from participation in loan programs under this part that are comparable to the standards established for the termination of institutions from participation in the loan programs under part B. Such procedures shall also include provisions for the appeal of default rate calculations based on deficiencies in the servicing of loans under this part that are comparable to the provisions for such appeals based on deficiencies in the servicing of loans under part B.''. SEC. 7. APPLICATION FOR PART B LOANS USING FREE FEDERAL APPLICATION. Section 483(a) of the Act (20 U.S.C. 1090(a)) is amended-- (1) in paragraph (1)-- (A) by inserting ``B,'' after ``assistance under parts A,''; (B) by striking ``part A) and to determine the need of a student for the purpose of part B of this title'' and inserting ``part A).''; and (C) by striking the last sentence and inserting the following: ``Such form may be in an electronic or any other format (subject to section 485B) in order to facilitate use by borrowers and institutions.''; and (2) in paragraph (3), by striking ``and States shall receive,'' and inserting ``, any guaranty agency authorized by any such institution, and States shall receive, at their request and''. SEC. 8. CREDIT REFORM. (a) Amendment.--Section 502(5)(B) of the Congressional Budget Act (31 U.S.C. 661a(5)(B)) is amended to read as follows: ``(B) The cost of a direct loan shall be the net present value, at the time when the direct loan is disbursed, of the following cash flows for the estimated life of the loan: ``(i) Loan disbursements. ``(ii) Repayments of principal. ``(iii) Payments of interest and other payments by or to the Government over the life of the loan after adjusting for estimated defaults, prepayments, fees, penalties, and other recoveries. ``(iv) In the case of a direct student loan made pursuant to the program authorized under part D of title IV of the Higher Education Act of 1965, direct and indirect expenses, including but not limited to the following: expenses arising from credit policy and oversight, activities related to credit extension, loan origination, loan servicing, training, program promotion and payments to contractors, other Government entities, and program participants, collection of delinquent loans, and write-off and close-out of loans.''. (b) Effective Date.--The amendment made by subsection (a) of this section shall apply to all fiscal years beginning on or after October 1, 1995, and to statutory changes made on or after the date of enactment of this Act. HR 530 IH----2

Summary: Student Loan Evaluation and Stabilization Act of 1995 - Amends the Higher Education Act of 1965 with respect to student loan programs. (Sec. 3) Revises the Federal Direct Student Loan program to limit the proportion of loans made under such program: (1) for academic year 1994-1995, to five percent of the new student loan volume for such year; and (2) for academic year 1995-1996 and any succeeding fiscal year, to loans to students and parents of students attending eligible institutions which have applied and been accepted for institutional participation in such program on or before December 31, 1994. Eliminates provisions for selecting additional institutions to participate in such pilot program. Reduces the maximum amount of funds for administrative expenses of such program allowed for certain periods. Revises the items which such funds must cover, including the costs of annually assessing such program and payment of an administrative cost allowance for the expenses of guaranty agencies in servicing outstanding loans in their portfolios and in guaranteeing new loans. Revises provisions for congressional oversight of program administration, by providing for funding triggers which allow administrative funds to be obligated only in such amounts and according to such schedule as specified in the appropriations Act for the Department of Education after submission by the Department of a detailed proposal for such expenditures. Requires a guaranty agency to: (1) submit a specified application before obtaining an administrative cost allowance from such funds; (2) expend such allowance only for specified purposes; and (3) elect a payment rate on the basis of one of two specified formulas. Provides for ratable reductions of such allowances when total payments exceed a specified level. Directs the Secretary of Education to provide a detailed quarterly report of all such expenditures to specified congressional committee chairs. Requires such report to specifically identify all contracts entered into by the Department for services supporting the Federal Family Education Loan (FFEL) Program and the Federal Perkins Loan Program, as well as the current and projected costs of such contracts. Eliminates the transition to the Federal Direct Loan Program. (Sec. 4) Sets forth conditions under which: (1) Federal Perkins Loan borrowers can obtain FFEL consolidation loans; and (2) FFEL borrowers can obtain Federal direct consolidation loans. (Sec. 5) Revises provisions relating to reserve fund programs. (Sec. 6) Sets institutional default rate limitations on direct lending. (Sec. 7) Provides for applications for FFEL loans using the free Federal application form, which is already in use for other types of student aid. Allows such form to be in an electronic or any other format, subject to certain conditions, in order to facilitate use by borrowers and institutions. Provides for authorized guaranty agencies to receive such form. (Sec. 8) Amends the Congressional Budget Act to prescribe a formula for determining the cost of a direct loan on the basis of the net present value, at the time the direct loan is disbursed, of specified types of cash flows for the estimated life of the loan.


SECTION 1. SHORT TITLE. This Act may be cited as the ``Unemployment Insurance Modernization Act''. SEC. 2. SPECIAL TRANSFERS TO STATE ACCOUNTS IN THE UNEMPLOYMENT TRUST FUND. (a) In General.--Section 903 of the Social Security Act (42 U.S.C. 1103) is amended by adding at the end the following: ``Special Transfers in Fiscal Years 2008 Through 2012 ``(f)(1)(A) In addition to any other amounts, the Secretary of Labor shall provide for the making of unemployment compensation modernization incentive payments (in this subsection referred to as `incentive payments') to the accounts of the States in the Unemployment Trust Fund, by transfer from amounts reserved for that purpose in the Federal unemployment account, in accordance with succeeding provisions of this subsection. ``(B) Subject to paragraph (5), the maximum incentive payment allowable under this subsection with respect to any State shall, as determined by the Secretary of Labor, be equal to the amount obtained by multiplying $7,000,000,000 times the same ratio as is applicable under subsection (a)(2)(B) for purposes of determining such State's share of any funds to be transferred under subsection (a) as of October 1, 2007. ``(C) Of the maximum incentive payment determined under subparagraph (B) with respect to a State-- ``(i) one-third shall be transferred upon a certification under paragraph (4)(B) that the State law of such State meets the requirements of paragraph (2); and ``(ii) the remainder shall be transferred upon a certification under paragraph (4)(B) that the State law of such State meets the requirements of paragraph (3). ``(2) The State law of a State meets the requirements of this paragraph if such State law-- ``(A) uses a base period that includes the most recently completed calendar quarter before the start of the benefit year for purposes of determining eligibility for unemployment compensation; or ``(B) provides that, in the case of an individual who would not otherwise be eligible for unemployment compensation under the State law because of the use of a base period that does not include the most recently completed calendar quarter before the start of the benefit year, eligibility shall be determined using a base period that includes such calendar quarter. ``(3) The State law of a State meets the requirements of this paragraph if such law includes provisions to carry out at least 2 of the following subparagraphs: ``(A) An individual shall not be denied compensation under any State law provisions relating to availability for work, active search for work, or refusal to accept work, solely because such individual is seeking only part-time (and not full-time) work, except that such law may provide for the provisions carrying out this subparagraph to require up to, but not to exceed, a majority of weeks of work of such individual's base period to consist of part-time employment. ``(B) An individual shall not be disqualified from compensation for separating from work for compelling family reasons, which, for purposes of this subparagraph, shall include at least the following: ``(i) A separation from employment in which domestic violence causes the individual reasonably to believe that such separation is necessary for the safety of the individual or the individual's family, as verified by such reasonable and confidential documentation that may be required by the State. ``(ii) A separation from employment resulting from the illness or disability of a member of the individual's immediate family. ``(iii) A separation from employment resulting from the individual's need to accompany a spouse-- ``(I) to a place from which it is impractical for such individual to commute; and ``(II) due to a change in location of the spouse's employment. ``(C) Weekly unemployment compensation is payable under this subparagraph to any individual who is unemployed (as determined under the State unemployment compensation law), has exhausted all rights to regular and (if applicable) extended unemployment compensation under the State law, and is enrolled and making satisfactory progress in a State-approved training program or in a job training program authorized under the Workforce Investment Act of 1998. Such program shall prepare individuals who have been separated from a declining occupation, or who have been involuntarily and indefinitely separated from employment as a result of a permanent reduction of operations at the individual's place of employment, for entry into a high-demand occupation. In addition, such program may prepare other unemployed individuals deemed eligible by the State. The amount of unemployment compensation payable under this subparagraph to an individual for a week of unemployment shall be equal to the individual's average weekly benefit amount (including dependents' allowances) for the most recent benefit year, and the total amount of unemployment compensation payable under this subparagraph to any individual shall be equal to at least 26 times the individual's average weekly benefit amount (including dependents' allowances) for the most recent benefit year. ``(D) The maximum amount of compensation-- ``(i) payable to the individual during a benefit year is equal to at least 26 times the individual's weekly benefit amount; or ``(ii) the individual receives during a benefit year exceeds half of the individual's total wages during the base period. A State shall not be considered to satisfy clause (i) if it reduced the maximum weekly benefit amount of compensation payable to an individual during a benefit year below the amount that was in effect as of the date of enactment of this subsection. ``(E) Dependents' allowances are provided to all individuals with a dependent (as defined by State law) equal to at least $15 per dependent per week, subject to any aggregate limitation on such allowances which the State law may establish (but which aggregate limitation on the total allowance for dependents paid to an individual may not be less than the lesser of $50 for each week of unemployment or 50 percent of the individual's weekly benefit amount for the benefit year). ``(4)(A) Any State seeking an incentive payment under this subsection shall submit an application therefor at such time and in such manner as the Secretary of Labor shall by regulation prescribe. Such application shall include information on how the State intends to use incentive payments to improve or strengthen the State's unemployment compensation program. The Secretary of Labor shall, within 90 days after receiving any such application, notify the State agency of the State as to the Secretary's findings with respect to the requirements of paragraph (2) or (3) (as the case may be). ``(B) If the Secretary of Labor finds that the State law provisions (disregarding any State law provisions which are not then currently in effect or which are subject to discontinuation under certain conditions) meet the requirements of paragraph (2) or (3) (as the case may be) and that unemployment compensation claimants have begun to qualify for benefits under such requirements, the Secretary of Labor shall thereupon make a certification to that effect to the Secretary of the Treasury, together with a certification as to the amount of the incentive payment to be transferred to the State account pursuant to that finding. The Secretary of the Treasury shall make the appropriate transfer within 30 days after receiving such certification. ``(C)(i) No certification of compliance with the requirements of paragraph (2) or (3) may be made with respect to any State whose State law is not otherwise eligible for certification under section 303 or approvable under section 3304 of the Federal Unemployment Tax Act. ``(ii) No certification of compliance with the requirements of paragraph (3) may be made with respect to any State whose State law is not in compliance with the requirements of paragraph (2). ``(iii) No application under subparagraph (A) may be considered if submitted before October 1, 2007, or after the latest date by which it must be submitted (as specified by the Secretary of Labor in regulations) to ensure that all incentive payments under this subsection are made before October 1, 2012. ``(5)(A) If the Secretary of Labor determines, within 30 days after the deadline described in paragraph (4)(C)(iii), that there are amounts reserved for incentive payments under paragraph (7) for which the Secretary of the Treasury has not received a certification under paragraph (4)(B), from such amounts-- ``(i) first, 10 percent of such amounts shall be made available for transfer to the accounts of States under subsection (g); and ``(ii) second, from the remainder of such amounts, incentive payments that are in addition to those made under paragraph (1) shall be made to States described in subparagraph (E). ``(B)(i) The amount of additional incentive payments to a State under subparagraph (A)(ii) shall be an amount equal to the sum of-- ``(I) the amount obtained by multiplying the total amount determined by the Secretary of Labor under subparagraph (A) (after application of clause (i) of such subparagraph) times the same ratio as is applicable under subsection (a)(2)(B) for purposes of determining such State's share of any funds to be transferred under subsection (a) as of October 1, 2007; and ``(II) an amount equal to the total amount determined by the Secretary of Labor under subparagraph (A) (after application of clause (i) of such subparagraph) less the total amount of additional incentive payments under subclause (I) for all States, divided by the total number of States receiving additional incentive payments. ``(ii) In no case may the amount of an additional incentive payment transferred to a State under this paragraph exceed an amount equal to 2 times the total amount of the incentive payment transferred to the State under paragraph (1)(C). ``(C) For each State described in subparagraph (E), the Secretary shall make a certification to that effect to the Secretary of the Treasury, together with a certification as to the amount of the additional incentive payment to be transferred to the State account pursuant this paragraph. The Secretary of the Treasury shall make the appropriate transfer within 30 days after receiving such certification. ``(D) The Secretary of Labor shall certify to the Secretary of the Treasury the amount to be made available for transfer under subparagraph (A)(i). ``(E) For purposes of subparagraph (A), a State is described in this subparagraph if the Secretary of the Treasury received a certification under paragraph (4)(B) that the State law of such State meets the requirements of paragraphs (2) and (3). ``(6)(A) Except as provided in subparagraph (B), amounts transferred to a State account pursuant to paragraphs (4)(B) and (5)(C) may be used only in the payment of cash benefits to individuals with respect to their unemployment. ``(B) A State may, subject to the same conditions as set forth in subsection (c)(2) (excluding subparagraph (B) thereof, and deeming the reference to `subsections (a) and (b)' in subparagraph (D) thereof to include this subsection), use any amount transferred to the account of such State under paragraphs (4)(B) and (5)(C) for the administration of its unemployment compensation law and public employment offices. ``(7) Out of any money in the Federal unemployment account not otherwise appropriated, the Secretary of the Treasury shall reserve $7,000,000,000 to carry out this subsection. For purposes of section 902, the net balance in the Federal unemployment account as of any time is the amount in such account as of such time reduced by an amount equal to the total amount so reserved less the total of the incentive payments transferred under this subsection (and the total amount transferred under paragraph (5)(A)(i)) as of such time. ``Special Transfers in Fiscal Years 2008 Through 2012 ``(g)(1) Notwithstanding any other provision of this section, the total amount available for transfer to the accounts of the States pursuant to subsection (a) as of the beginning of each of fiscal years 2008, 2009, 2010, 2011, and 2012 shall be equal to the total amount which (disregarding this subsection) would otherwise be so available, increased by $100,000,000 (or, in the case of fiscal year 2012, $100,000,000 plus the amount made available for transfer under subsection (f)(5)(A)(i)). ``(2) Each State's share of any additional amount made available by this subsection shall be determined, certified, and computed in the same manner as described in subsection (a)(2) and shall be subject to the same limitations on transfers as described in subsection (b). For purposes of applying subsection (b)(2), the balance of any advances made to a State under section 1201 shall be credited against, and operate to reduce (but not below zero)-- ``(A) first, any additional amount which, as a result of the enactment of this subsection, is to be transferred to the account of such State in a fiscal year; and ``(B) second, any amount which (disregarding this subsection) is otherwise to be transferred to the account of such State pursuant to subsections (a) and (b) in such fiscal year. ``(3) Any additional amount transferred to the account of a State as a result of the enactment of this subsection-- ``(A) may be used by the State agency of such State only in the payment of expenses incurred by it for-- ``(i) the administration of the provisions of its State law carrying out the purposes of subsection (f)(2) or any subparagraph of subsection (f)(3); ``(ii) improved outreach to individuals who might be eligible for compensation by virtue of any provisions of the State law which are described in clause (i); ``(iii) the improvement of unemployment benefit and unemployment tax operations; and ``(iv) staff-assisted reemployment services for unemployment insurance claimants; and ``(B) shall be excluded from the application of subsection (c). ``(4) The total additional amount made available by this subsection in a fiscal year shall be taken out of the amounts remaining in the employment security administration account after subtracting the total amount which (disregarding this subsection) is otherwise required to be transferred from such account in such fiscal year pursuant to subsections (a) and (b).''. (b) Regulations.--The Secretary of Labor may prescribe any regulations necessary to carry out the amendment made by subsection (a). SEC. 3. EXTENSION OF FUTA TAX. Section 3301 of the Internal Revenue Code of 1986 (relating to rate of tax) is amended-- (1) by striking ``2007'' in paragraph (1) and inserting ``2012'', and (2) by striking ``2008'' in paragraph (2) and inserting ``2013''.

Summary: Unemployment Insurance Modernization Act - Amends the Social Security Act to require the Secretary of Labor to make unemployment compensation modernization incentive payments in FY2008-FY2012 by certain transfers from the federal unemployment account to the accounts of the states in the Unemployment Trust Fund. Prescribes a formula for determining the maximum allowable incentive payments. Specifies requirements state law must meet for the state to qualify for such a payment. Limits the use of transferred amounts to the payment of cash unemployment benefits to individuals. Requires the Secretary of the Treasury to reserve specified funds out of the federal unemployment account for such incentive payments. Amends the Internal Revenue Code to extend through FY2013 the Federal Unemployment Tax Act (FUTA) excise tax imposed on every employer.


SECTION 1. DISCLOSURE FOR CHARITY EMPLOYEES AND BOARD MEMBERS PREVIOUSLY IMPLICATED IN TERROR FINANCE. (a) Application for Exemption.--Section 501 of the Internal Revenue Code of 1986 is amended by adding at the end the following: ``(s) Disclosure for Charity Employees and Board Members Previously Implicated in Terror Finance.-- ``(1) In general.--An application of an organization for exemption from tax under subsection (a) shall not be treated as complete unless the application contains-- ``(A) the disclosures required by paragraph (2), or ``(B) a statement that no officer, director, trustee, or highly compensated employee of the organization (or an individual having powers or responsibilities similar to those of officers, directors, trustees, or highly compensated employees of the organization) is described in subparagraph (A), (B), or (C) of paragraph (2). ``(2) Required disclosures.--The disclosures required by this paragraph are the names and addresses of any officer, director, trustee, or highly compensated employee of the organization who, at any time before the date of the application-- ``(A) was a member or employee of an organization described in paragraph (3), ``(B) was an unindicted coconspirator with respect to a terror finance scheme of an organization described in paragraph (3), or ``(C) was an employee of any charity found liable under section 2333 of title 18, United States Code. ``(3) Organization described.--An organization is described in this paragraph if-- ``(A) the organization is named on the Designated Charities and Potential Fundraising Front Organizations for FTOs list, published by the Department of the Treasury, or ``(B) the organization's property is blocked pending investigation by the Office of Foreign Assets Control, Department of the Treasury.''. (b) Annual Reporting.--Section 6033 of such Code is amended by redesignating subsection (n) as subsection (o) and by inserting after subsection (m) the following: ``(s) Disclosure for Charity Employees and Board Members Previously Implicated in Terror Finance.-- ``(1) In general.--The annual return required of an organization by subsection (a) shall not be treated as complete unless the return contains-- ``(A) the disclosures required by paragraph (2), or ``(B) a statement that no officer, director, trustee, or highly compensated employee of the organization (or an individual having powers or responsibilities similar to those of officers, directors, trustees, or highly compensated employees of the organization) is described in subparagraph (A), (B), or (C) of paragraph (2). ``(2) Required disclosures.--The disclosures required by this paragraph are the names and addresses of any officer, director, trustee, or highly compensated employee of the organization who, at any time before the date of the application-- ``(A) was a member or employee of an organization described in paragraph (3), ``(B) was an unindicted coconspirator with respect to a terror finance scheme of an organization described in paragraph (3), or ``(C) was an employee of any charity found liable under section 2333 of title 18, United States Code. ``(3) Organization described.--An organization is described in this paragraph if-- ``(A) the organization is described in section 501(c) and exempt from tax under section 501(a), ``(B) the organization is named on the Designated Charities and Potential Fundraising Front Organizations for FTOs list, published by the Department of the Treasury, or ``(C) the organization's property is blocked pending investigation by the Office of Foreign Assets Control, Department of the Treasury.''. (c) Effective Date.-- (1) The amendment made by subsection (a) shall apply to applications filed after the date of the enactment of this Act. (2) The amendment made by subsection (b) shall apply to returns filed for taxable years beginning after the date of the enactment of this Act.

Summary: This bill amends the Internal Revenue Code to require tax-exempt organizations to disclose details regarding employees and board members involved in terror finance activities. An organization applying for tax-exempt status must disclose in its application the names and addresses of any officer, director, trustee, or highly compensated employee who, at any time prior to the date of the application, was: a member or employee of an organization: (1) named on the Department of the Treasury's Designated Charities and Potential Fundraising Front Organizations for FTOs (Foreign Terrorist Organizations) list, or (2) with property that has been blocked pending investigation by Treasury's Office of Foreign Assets Control; an unindicted coconspirator with respect to a terror finance scheme of an organization described above, or an employee of any charity found liable for civil damages due to an act of international terrorism. In lieu of the disclosure, the organization may include a statement indicating that no officer, director, trustee, or highly compensated employee of the organization (or individual with similar powers and responsibilities) meets the criteria described above. Tax-exempt organizations must also include either the required disclosure or the statement in annual tax returns filed after the enactment of this bill.


SECTION 1. SHORT TITLE. This Act may be cited as the ``Homeless Veterans Prevention Act of 2015''. SEC. 2. INCREASED PER DIEM PAYMENTS FOR TRANSITIONAL HOUSING ASSISTANCE THAT BECOMES PERMANENT HOUSING FOR HOMELESS VETERANS. Section 2012(a)(2) of title 38, United States Code, is amended-- (1) by redesignating subparagraphs (B) through (D) as subparagraphs (C) through (E), respectively; (2) in subparagraph (C), as redesignated, by striking ``in subparagraph (D)'' and inserting ``in subparagraph (E)''; (3) in subparagraph (D), as redesignated, by striking ``under subparagraph (B)'' and inserting ``under subparagraph (C)''; (4) in subparagraph (E), as redesignated, by striking ``in subparagraphs (B) and (C)'' and inserting ``in subparagraphs (C) and (D)''; and (5) in subparagraph (A)-- (A) by striking ``The rate'' and inserting ``Except as otherwise provided in subparagraph (B), the rate''; and (B) by striking ``under subparagraph (B)'' and all that follows through the end and inserting the following: ``under subparagraph (C). ``(B)(i) Except as provided in clause (ii), in no case may the rate determined under this paragraph exceed the rate authorized for State homes for domiciliary care under subsection (a)(1)(A) of section 1741 of this title, as the Secretary may increase from time to time under subsection (c) of that section. ``(ii) In the case of services furnished to a homeless veteran who is placed in housing that will become permanent housing for the veteran upon termination of the furnishing of such services to such veteran, the maximum rate of per diem authorized under this section is 150 percent of the rate described in clause (i).''. SEC. 3. AUTHORIZATION OF PER DIEM PAYMENTS FOR FURNISHING CARE TO DEPENDENTS OF CERTAIN HOMELESS VETERANS. Subsection (a) of section 2012 of title 38, United States Code, is amended by adding at the end the following new paragraph: ``(4) Services for which a recipient of a grant under section 2011 of this title (or an entity described in paragraph (1)) may receive per diem payments under this subsection may include furnishing care for a dependent of a homeless veteran who is under the care of such homeless veteran while such homeless veteran receives services from the grant recipient (or entity).''. SEC. 4. PARTNERSHIPS WITH PUBLIC AND PRIVATE ENTITIES TO PROVIDE LEGAL SERVICES TO HOMELESS VETERANS AND VETERANS AT RISK OF HOMELESSNESS. (a) In General.--Chapter 20 of title 38, United States Code, is amended by inserting after section 2022 the following new section: ``Sec. 2022A. Partnerships with public and private entities to provide legal services to homeless veterans and veterans at risk of homelessness ``(a) Partnerships Authorized.--Subject to the availability of funds for that purpose, the Secretary may enter into partnerships with public or private entities to fund a portion of the general legal services specified in subsection (c) that are provided by such entities to homeless veterans and veterans at risk of homelessness. ``(b) Locations.--The Secretary shall ensure that, to the extent practicable, partnerships under this section are made with entities equitably distributed across the geographic regions of the United States, including rural communities and tribal lands. ``(c) Legal Services.--Legal services specified in this subsection include legal services provided by public or private entities that address the needs of homeless veterans and veterans at risk of homelessness as follows: ``(1) Legal services related to housing, including eviction defense and representation in landlord-tenant cases. ``(2) Legal services related to family law, including assistance in court proceedings for child support, divorce, and estate planning. ``(3) Legal services related to income support, including assistance in obtaining public benefits. ``(4) Legal services related to criminal defense, including defense in matters symptomatic of homelessness, such as outstanding warrants, fines, and driver's license revocation, to reduce recidivism and facilitate the overcoming of reentry obstacles in employment or housing. ``(d) Consultation.--In developing and carrying out partnerships under this section, the Secretary shall, to the extent practicable, consult with public and private entities-- ``(1) for assistance in identifying and contacting organizations described in subsection (c); and ``(2) to coordinate appropriate outreach relationships with such organizations. ``(e) Reports.--The Secretary may require entities that have entered into partnerships under this section to submit to the Secretary periodic reports on legal services provided to homeless veterans and veterans at risk of homelessness pursuant to such partnerships.''. (b) Clerical Amendment.--The table of sections at the beginning of chapter 20 of such title is amended by adding after the item relating to section 2022 the following new item: ``2022A. Partnerships with public and private entities to provide legal services to homeless veterans and veterans at risk of homelessness.''. SEC. 5. EXPANSION OF DEPARTMENT OF VETERANS AFFAIRS AUTHORITY TO PROVIDE DENTAL CARE TO HOMELESS VETERANS. Subsection (b) of section 2062 of title 38, United States Code, is amended to read as follows: ``(b) Eligible Veterans.--(1) Subsection (a) applies to a veteran who-- ``(A) is enrolled for care under section 1705(a) of this title; and ``(B) for a period of 60 consecutive days, is receiving-- ``(i) assistance under section 8(o) of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)); or ``(ii) care (directly or by contract) in any of the following settings: ``(I) A domiciliary under section 1710 of this title. ``(II) A therapeutic residence under section 2032 of this title. ``(III) Community residential care coordinated by the Secretary under section 1730 of this title. ``(IV) A setting for which the Secretary provides funds for a grant and per diem provider. ``(2) For purposes of paragraph (1), in determining whether a veteran has received assistance or care for a period of 60 consecutive days, the Secretary may disregard breaks in the continuity of assistance or care for which the veteran is not responsible.''. SEC. 6. REPEAL OF SUNSET ON AUTHORITY TO CARRY OUT PROGRAM OF REFERRAL AND COUNSELING SERVICES FOR VETERANS AT RISK FOR HOMELESSNESS WHO ARE TRANSITIONING FROM CERTAIN INSTITUTIONS. Section 2023 of title 38, United States Code, is amended-- (1) by striking subsection (d); and (2) by redesignating subsection (e) as subsection (d). SEC. 7. EXTENSION OF AUTHORITY FOR FINANCIAL ASSISTANCE FOR SUPPORTIVE SERVICES FOR VERY LOW-INCOME VETERAN FAMILIES IN PERMANENT HOUSING. (a) In General.--Paragraph (1) of section 2044(e) of title 38, United States Code, is amended by adding at the end the following new subparagraph (F): ``(F) $500,000,000 for fiscal year 2016.''. (b) Training Entities for Provision of Supportive Services.-- Paragraph (3) of such section is amended by inserting ``and 2015'' after ``through 2012''. SEC. 8. REQUIREMENT FOR DEPARTMENT OF VETERANS AFFAIRS TO ASSESS COMPREHENSIVE SERVICE PROGRAMS FOR HOMELESS VETERANS. (a) In General.--Not later than one year after the date of the enactment of this Act, the Secretary of Veterans Affairs shall assess and measure the capacity of programs for which entities receive grants under section 2011 of title 38, United States Code, or per diem payments under section 2012 or 2061 of such title. (b) Assessment at National and Local Levels.--In assessing and measuring under subsection (a), the Secretary shall develop and use tools to examine the capacity of programs described in such subsection at both the national and local level in order to assess the following: (1) Whether sufficient capacity exists to meet the needs of homeless veterans in each geographic area. (2) Whether existing capacity meets the needs of the subpopulations of homeless veterans located in each geographic area. (3) The amount of capacity that recipients of grants under sections 2011 and 2061 and per diem payments under section 2012 of such title have to provide services for which the recipients are eligible to receive per diem under section 2012(a)(2)(B)(ii) of title 38, United States Code, as added by section 3(5)(B). (c) Use of Information.--The Secretary shall use the information collected under this section as follows: (1) To set specific goals to ensure that programs described in subsection (a) are effectively serving the needs of homeless veterans. (2) To assess whether programs described in subsection (a) are meeting goals set under paragraph (1). (3) To inform funding allocations for programs described in subsection (a). (4) To improve the referral of homeless veterans to programs described in subsection (a). (d) Report.--Not later than 180 days after the date on which the assessment required by subsection (b) is completed, the Secretary shall submit to the Committee on Veterans' Affairs of the Senate and the Committee on Veterans' Affairs of the House of Representatives a report on such assessment and such recommendations for legislative and administrative action as the Secretary may have to improve the programs and per diem payments described in subsection (a). SEC. 9. REQUIREMENT FOR COMPTROLLER GENERAL TO STUDY DEPARTMENT OF VETERANS AFFAIRS HOMELESS VETERANS PROGRAMS. (a) In General.--Not later than 270 days after the date of the enactment of this Act, the Comptroller General of the United States shall complete a study of programs of the Department of Veterans Affairs that provide assistance to homeless veterans. (b) Elements.--The study required by subsection (a) shall include the following: (1) An assessment of whether programs described in subsection (a) are meeting the needs of veterans who are eligible for assistance provided by such programs. (2) A review of recent efforts of the Secretary of Veterans Affairs to improve the privacy, safety, and security of female veterans receiving assistance from such programs. SEC. 10. REPEAL OF REQUIREMENT FOR ANNUAL REPORTS ON ASSISTANCE TO HOMELESS VETERANS. (a) In General.--Section 2065 of title 38, United States Code, is hereby repealed. (b) Clerical Amendment.--The table of sections at the beginning of chapter 20 of such title is amended by striking the item relating to section 2065.

Summary: Homeless Veterans Prevention Act of 2015 Increases the per diem payment for transitional housing assistance for homeless veterans who are placed in housing that will become permanent upon the termination of such assistance to a maximum of 150% of the per diem rate authorized for veterans receiving domiciliary care in state homes. Allows services for which a homeless veteran receives a grant under the comprehensive service programs to include furnishing care for a dependent. Authorizes the the Department of Veterans Affairs (VA) to enter into partnerships with public or private entities to provide legal services to homeless veterans and veterans at risk of homelessness. Revises VA authority to provide dental care to veterans receiving certain other assistance through the VA to include those veterans receiving assistance under the United States Housing Act of 1937. Repeals the September 30, 2013, sunset on the authority of the VA and the Department of Labor to carry out a program of referral and counseling for veterans who are at risk of homelessness and are transitioning from certain institutions, including penal institutions. Extends supportive services assistance for very low-income veteran families in permanent housing. Directs the VA to: (1) assess and measure the capacity of programs for which entities receive grants or per diem payments to assist homeless veterans, and (2) use such information to ensure that such programs effectively serve the needs of such veterans. Requires a VA report on activities under such programs. (Current law requires annual reports.) Requires a Comptroller General study of VA assistance to homeless veterans. Repeals the requirement for annual VA reports on assistance to homeless veterans.


SECTION 1. TRANSFER OF ADMINISTRATIVE JURISDICTION. (a) Transfer From BLM to Department of Energy.-- (1) In general.--Administrative jurisdiction over the following parcels of land in the State of Washington, comprising approximately 49,280 acres, is transferred from the Secretary of the Interior, acting through the Director of the Bureau of Land Management, to the Secretary of Energy: (A) Sections 6 and 8, the portion of the NE\1/4\ of 18 north of the north right-of-way for Horn Rapids Road, T10N, R28E, Willamette Meridian. (B) Section 6, the portion of S\1/2\ of 12 north of the north right-of-way of Horn Rapids Road, the portion of 2 north of the north right-of-way of Route 240, NE\1/2\ of 8, N\1/2\ and W\1/2\, SW\1/4\ and the portion of the NE\1/4\, SE\1/4\ of 4, north of the Yakima River, T10N, R27E, Willamette Meridian. (C) NW\1/4\ of 2, T11N, R24E, Willamette Meridian. (D) NE\1/4\ of the NE\1/4\ of 4, NE\1/4\ and the N\1/2\ of the NW\1/4\ of 2, NW\1/4\ and W\1/2\ of the NE\1/4\ of 6, T11N, R26E, Willamette Meridian. (E) Sections 2, 4, 6, 8, 10, 12, 14, and 24, T11N, R26E, Willamette Meridian. (F) Sections 2, 8, 10, 12, 14, 18, 22, 24, 26, 28, 30, 32, 34, and the NE\1/4\ and SE\1/4\ of 4, SW\1/4\ of 6, NW\1/4\, SW\1/4\ and SE\1/4\ of 20, T11N, R27E, Willamette Meridian. (G) Sections 4, 6, 8, 10, 18, 20, 28, 30, and 32, NW\1/4\ and SW\1/4\ of 22 and all land lying west of the Columbia River in 2, T11N, R28E, Willamette Meridian. (H) Sections 14, 24, and 26, T12N, R24E, Willamette Meridian. (I) Sections 6, 8, 10, 18, 22, 24, and 30, NW\1/4\, NE\1/4\ and SE\1/4\ of 4, W\1/2\, and the E\1/2\ of the NE\1/4\ and the NE\1/4\ of the SE\1/4\ of 20, N\1/2\ of the NW\1/4\ and N\1/2\ of the NE\1/4\ and SW\1/4\ of the SE\1/4\ and SE\1/4\ of the SW\1/4\ of 26, NE\1/4\ of the NE\1/4\ of 32, S\1/2\ of the NW\1/4\ and S\1/2\ of the NE\1/4\ and S\1/2\ of 34, T12N, R25E, Willamette Meridian. (J) Sections 20, 22, 24, 26, 28, 30, 32, and 34, T12N, R26E, Willamette Meridian. (K) Sections 14, 18, 20, 22, 24, 26, 28, 30, 32, and 34, NE\1/4\ and S\1/2\ of the SE\1/4\ of 4, S\1/2\ and NW\1/4\ of the SW\1/4\ of 6, SW\1/4\, and the NW\1/ 4\, SW\1/4\, SE\1/4\ of the SE\1/4\ and SW\1/4\ of the NW\1/4\ of 8, T12N, R27E, Willamette Meridian. (L) Section 30, S\1/2\ and NW\1/4\ of 32, S\1/2\ of 34, T12N, R28E, Willamette Meridian. (M) S\1/2\ of the NW\1/4\ and SW\1/4\ of 14, N\1/2\ of the NE\1/4\ of 24, SW\1/4\ of the SE\1/4\ of 22, T13N, R24E, Willamette Meridian. (N) Sections 24, 28, S\1/2\ of the SE\1/4\ and SW\1/4\ of 18, NW\1/4\ of the SE\1/4\ of 20, S\1/2\ of 32, T13N, R25E, Willamette Meridian. (2) Withdrawal and use.--The land described in paragraph (1) is withdrawn from all forms of appropriation under the public land laws, including the mining and mineral leasing laws, and reserved for the use of the Hanford project of the Department of Energy. (3) Authorities.-- (A) In general.--The Secretary of Energy shall exercise all of the authorities with respect to the land described in paragraph (1) under the Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.) and the Atomic Energy Community Act of 1955 (42 U.S.C. 2301 et seq.). (B) Disposal.--Any disposal of land described in paragraph (1) under the Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.) or the Atomic Energy Community Act of 1955 (42 U.S.C. 2301 et seq.) shall be subject to valid existing rights of third parties. (C) Effect.--This paragraph does not add to, modify, or eliminate any authority of the Secretary of Energy to dispose of property under the Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.) or the Atomic Energy Community Act of 1955 (42 U.S.C. 2301 et seq.). (b) Transfer From Department of Energy to BLM.-- (1) In general.--Administrative jurisdiction over the following parcels of land in the State of Washington, comprising approximately 48,640 acres, is transferred from the Secretary of Energy to the Secretary of the Interior, acting through the Director of the Bureau of Land Management: (A) Sections 13, 24, 25, 34-36, NE\1/4\ and SE\1/4\ of 11, NE\1/4\ and SE\1/4\ of 14, NE\1/4\ and SE\1/4\ of 23, NE\1/4\ and SE\1/4\ of 26, SW\1/4\ and SE\1/4\ of 33, except NW\1/4\ of section 12, T14N, R26E, Willamette Meridian. (B) Sections 7, 17-20, 28-34, T14N, R27E, Willamette Meridian. (C) Sections 1-4, 9-13, 15-17, 20-24, SE\1/4\ of 5, NE\1/4\, SE\1/4\ and SW\1/4\ of 8, NE\1/4\ and NW\1/4\ of 27, NE\1/4\ and NW\1/4\ of 26, NW\1/4\, NE\1/4\ and SE\1/4\ of 25, NW\1/4\ and SW\1/4\ of the NW\1/4\ of 14, NW\1/4\ and NE\1/4\ of the SW\1/4\ of 14, NW\1/4\ and NE\1/4\ of the SE\1/4\ of 14, SW\1/4\ and SE\1/4\ of the NE\1/4\ of 14, T13N, R26E, Willamette Meridian. (D) Sections 3-10, 14-17, 19-30, 35, 36, NE\1/4\ and NW\1/4\ of 31, NE\1/4\ and NW\1/4\ of 32, NE\1/4\ and NW\1/4\ of 33, NW\1/4\, NE\1/4\ and SE\1/4\ of 34, NE\1/4\ and SE\1/4\ of NW\1/4\ NE\1/4\ and SE\1/4\ SW\1/4\ of 18, T13N, R27E, Willamette Meridian. (E) Sections 30-32, T13N, R28E, Willamette Meridian. (F) Section 1, NW\1/4\ and NE\1/4\ of 2, NE\1/4\ of 12, NW\1/4\ and SW\1/4\ of the SE\1/4\ of 12, NE\1/4\ and SE\1/4\ of 13, T12N, R27E, Willamette Meridian. (G) Sections 4, 5, 7, 9, 10, 15-17, 19, 21, 23, 27, 29, NE\1/4\ and SE\1/4\ of 6, NE\1/4\ and NW\1/4\ of 8, NE\1/4\ and NW\1/4\ of 33, NE\1/4\ and NW\1/4\ of 35, T12N, R28E, Willamette Meridian. (2) Status.--The land described in paragraph (1)-- (A) shall be treated as public land (within the meaning of section 103 of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1702)) and shall be subject to all of the laws (including regulations) applicable to the public land; and (B) is withdrawn from all forms of appropriation under the public land laws, including the mining and mineral leasing laws, and reserved for the use of the Secretary of Energy in connection with the Hanford operations of the Department of Energy until the withdrawal and reservation are revoked by order of the Secretary of the Interior with the concurrence of the Secretary of Energy.

Summary: Transfers administrative jurisdiction over specified lands in the State of Washington from: (1) the Secretary of the Interior, acting through the Bureau of Land Management, to the Secretary of Energy; and (2) the Secretary of Energy to the Secretary of the Interior, acting through the Bureau of Land Management. Withdraws such lands from all forms of appropriation under the public land laws, including the mining and mineral leasing law. Sets forth: (1) reservations of such lands in connection with the Hanford project of the Department of Energy; and (2) authorities and disposal requirements under the Atomic Energy Act of 1954 with respect to the lands transferred to the Secretary of Energy.


SECTION 1. SHORT TITLE. This Act may be cited as the ``Small Business Tax Certainty and Growth Act of 2013''. SEC. 2. SENSE OF THE SENATE REGARDING TAX REFORM. It is the sense of the Senate that Congress should undertake comprehensive tax reform legislation to-- (1) make our system fairer and simpler; and (2) promote economic growth. SEC. 3. PERMANENT DOUBLING OF DEDUCTIONS FOR START-UP EXPENSES, ORGANIZATIONAL EXPENSES, AND SYNDICATION FEES. (a) Start-Up Expenses.-- (1) In general.--Clause (ii) of section 195(b)(1)(A) of the Internal Revenue Code of 1986 is amended-- (A) by striking ``$5,000'' and inserting ``$10,000'', and (B) by striking ``$50,000'' and inserting ``$60,000''. (2) Conforming amendment.--Subsection (b) of section 195 of the Internal Revenue Code of 1986 is amended by striking paragraph (3). (b) Organizational Expenses.--Subparagraph (B) of section 248 of the Internal Revenue Code of 1986 is amended-- (1) by striking ``$5,000'' and inserting ``$10,000'', and (2) by striking ``$50,000'' and inserting ``$60,000''. (c) Organization and Syndication Fees.--Clause (ii) of section 709(b)(1)(A) of the Internal Revenue Code of 1986 is amended-- (1) by striking ``$5,000'' and inserting ``$10,000'', and (2) by striking ``$50,000'' and inserting ``$60,000''. (d) Effective Date.--The amendments made by this section shall apply to amounts paid or incurred in taxable years ending on or after the date of the enactment of this Act. SEC. 4. CLARIFICATION OF CASH ACCOUNTING RULES FOR SMALL BUSINESS. (a) Cash Accounting Permitted.-- (1) In general.--Section 446 of the Internal Revenue Code of 1986 (relating to general rule for methods of accounting) is amended by adding at the end the following new subsection: ``(g) Certain Small Business Taxpayers Permitted To Use Cash Accounting Method Without Limitation.-- ``(1) In general.--An eligible taxpayer shall not be required to use an accrual method of accounting for any taxable year. ``(2) Eligible taxpayer.--For purposes of this subsection, a taxpayer is an eligible taxpayer with respect to any taxable year if-- ``(A) for all prior taxable years beginning after December 31, 2013, the taxpayer (or any predecessor) met the gross receipts test of section 448(c), and ``(B) the taxpayer is not subject to section 447 or 448.''. (2) Expansion of gross receipts test.-- (A) In general.--Paragraph (3) of section 448(b) of such Code (relating to entities with gross receipts of not more than $5,000,000) is amended by striking ``$5,000,000'' in the text and in the heading and inserting ``$10,000,000''. (B) Conforming amendments.--Section 448(c) of such Code is amended-- (i) by striking ``$5,000,000'' each place it appears in the text and in the heading of paragraph (1) and inserting ``$10,000,000'', and (ii) by adding at the end the following new paragraph: ``(4) Inflation adjustment.--In the case of any taxable year beginning in a calendar year after 2014, the dollar amount contained in subsection (b)(3) and paragraph (1) of this subsection shall be increased by an amount equal to-- ``(A) such dollar amount, multiplied by ``(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, by substituting `calendar year 2013' for `calendar year 1992' in subparagraph (B) thereof. If any amount as adjusted under this subparagraph is not a multiple of $100,000, such amount shall be rounded to the nearest multiple of $100,000.''. (b) Clarification of Inventory Rules for Small Business.-- (1) In general.--Section 471 of the Internal Revenue Code of 1986 (relating to general rule for inventories) is amended by redesignating subsection (c) as subsection (d) and by inserting after subsection (b) the following new subsection: ``(c) Small Business Taxpayers Not Required To Use Inventories.-- ``(1) In general.--A qualified taxpayer shall not be required to use inventories under this section for a taxable year. ``(2) Treatment of taxpayers not using inventories.--If a qualified taxpayer does not use inventories with respect to any property for any taxable year beginning after December 31, 2013, such property shall be treated as a material or supply which is not incidental. ``(3) Qualified taxpayer.--For purposes of this subsection, the term `qualified taxpayer' means-- ``(A) any eligible taxpayer (as defined in section 446(g)(2)), and ``(B) any taxpayer described in section 448(b)(3).''. (2) Increased eligibility for simplified dollar-value lifo method.--Section 474(c) is amended by striking ``$5,000,000'' and inserting ``the dollar amount in effect under section 448(c)(1)''. (c) Effective Date and Special Rules.-- (1) In general.--The amendments made by this section shall apply to taxable years beginning after December 31, 2013. (2) Change in method of accounting.--In the case of any taxpayer changing the taxpayer's method of accounting for any taxable year under the amendments made by this section-- (A) such change shall be treated as initiated by the taxpayer; (B) such change shall be treated as made with the consent of the Secretary of the Treasury; and (C) the net amount of the adjustments required to be taken into account by the taxpayer under section 481 of the Internal Revenue Code of 1986 shall be taken into account over a period (not greater than 4 taxable years) beginning with such taxable year. SEC. 5. PERMANENT EXTENSION OF EXPENSING LIMITATION. (a) Dollar Limitation.--Section 179(b)(1) of the Internal Revenue Code of 1986 is amended by striking ``shall not exceed'' and all that follows and inserting ``shall not exceed $250,000.''. (b) Reduction in Limitation.--Section 179(b)(2) of such Code is amended by striking ``exceeds'' and all that follows and inserting ``exceeds $800,000.''. (c) Inflation Adjustment.--Subsection (b) of section 179 of such Code is amended by adding at the end the following new paragraph: ``(6) Inflation adjustment.-- ``(A) In general.--In the case of any taxable year beginning in a calendar year after 2014, the $250,000 in paragraph (1) and the $800,000 amount in paragraph (2) shall each be increased by an amount equal to-- ``(i) such dollar amount, multiplied by ``(ii) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, by substituting `calendar year 2013' for `calendar year 1992' in subparagraph (B) thereof. ``(B) Rounding.-- ``(i) Dollar limitation.--If the amount in paragraph (1) as increased under subparagraph (A) is not a multiple of $1,000, such amount shall be rounded to the nearest multiple of $1,000. ``(ii) Phaseout amount.--If the amount in paragraph (2) as increased under subparagraph (A) is not a multiple of $10,000, such amount shall be rounded to the nearest multiple of $10,000.''. (d) Computer Software.--Section 179(d)(1)(A)(ii) of such Code is amended by striking ``and before 2014''. (e) Election.--Section 179(c)(2) of such Code is amended by striking ``and before 2014''. (f) Special Rules for Treatment of Qualified Real Property.-- (1) In general.--Section 179(f)(1) of such Code is amended by striking ``beginning in 2010, 2011, 2012, or 2013'' and inserting ``beginning after 2009''. (2) Conforming amendment.--Section 179(f) of such Code is amended by striking paragraph (4). (g) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2013. SEC. 6. EXTENSION OF BONUS DEPRECIATION. (a) In General.--Paragraph (2) of section 168(k) of the Internal Revenue Code of 1986 is amended-- (1) by striking ``January 1, 2015'' in subparagraph (A)(iv) and inserting ``January 1, 2016'', and (2) by striking ``January 1, 2014'' each place it appears and inserting ``January 1, 2015''. (b) Special Rule for Federal Long-Term Contracts.--Clause (ii) of section 460(c)(6)(B) of the Internal Revenue Code of 1986 is amended by striking ``January 1, 2014 (January 1, 2015'' and inserting ``January 1, 2015 (January 1, 2016''. (c) Conforming Amendments.-- (1) The heading for subsection (k) of section 168 of the Internal Revenue Code of 1986 is amended by striking ``January 1, 2014'' and inserting ``January 1, 2015''. (2) The heading for clause (ii) of section 168(k)(2)(B) of such Code is amended by striking ``Pre-january 1, 2014'' and inserting ``Pre-january 1, 2015''. (3) Section 168(k)(4)(D) is amended by striking ``and'' at the end of clause (ii), by striking the period at the end of clause (iii) and inserting a comma, and by adding at the end the following new clauses: ``(iv) `January 1, 2015' shall be substituted for `January 1, 2016' in subparagraph (A)(iv) thereof, and ``(v) `January 1, 2014' shall be substituted for `January 1, 2015' each place it appears in subparagraph (A) thereof.''. (4) Section 168(l)(4) of such Code is amended by striking ``and'' at the end of subparagraph (A), by redesignating subparagraph (B) as subparagraph (C), and by inserting after subparagraph (A) the following new subparagraph: ``(B) by substituting `January 1, 2014' for `January 1, 2015' in clause (i) thereof, and''. (5) Subparagraph (C) of section 168(n)(2) of such Code is amended by striking ``January 1, 2014'' and inserting ``January 1, 2015''. (6) Subparagraph (D) of section 1400L(b)(2) of such Code is amended by striking ``January 1, 2014'' and inserting ``January 1, 2015''. (7) Subparagraph (B) of section 1400N(d)(3) of such Code is amended by striking ``January 1, 2014'' and inserting ``January 1, 2015''. (d) Effective Date.--The amendments made by this section shall apply to property placed in service after December 31, 2013, in taxable years ending after such date. SEC. 7. EXTENSION OF 15-YEAR STRAIGHT-LINE COST RECOVERY FOR QUALIFIED LEASEHOLD IMPROVEMENTS, QUALIFIED RESTAURANT BUILDINGS AND IMPROVEMENTS, AND QUALIFIED RETAIL IMPROVEMENTS. (a) In General.--Clauses (iv), (v), and (ix) of section 168(e)(3)(E) of the Internal Revenue Code of 1986 are each amended by striking ``January 1, 2014'' and inserting ``January 1, 2015''. (b) Effective Date.--The amendments made by this section shall apply to property placed in service after December 31, 2013.

Summary: Small Business Tax Certainty and Growth Act of 2013 - Expresses the sense of the Senate that Congress should undertake comprehensive tax reform to make the tax system fairer and simpler and to promote economic growth. Amends the Internal Revenue Code to: (1) make permanent the increased tax deductions for business start-up expenditures, organizational expenditures, and organization and syndication fees; (2) allow the cash accounting method for businesses whose gross receipts do not exceed $10 million (currently, $5 million); (3) exempt businesses whose gross receipts do not exceed $10 million from the requirement to use inventories; (4) make permanent the $250,000 allowance for expensing business assets, including computer software; (5) extend for one year the additional depreciation allowance for business assets; and (6) extend through 2014 the 15-year straight-line depreciation allowance for qualified leasehold, restaurant, and retail improvements.


SECTION 1. SHORT TITLE. This Act may be cited as the ``Flood Control Credit Act of 2013''. SEC. 2. TRANSFER OF EXCESS WORK-IN-KIND CREDIT. (a) In General.--Subject to subsection (b), the Secretary of the Army may apply credit for in-kind contributions provided by a non- Federal interest that is in excess of the required non-Federal cost- share for a water resources study or project, including credit for in- kind contributions provided to accelerate completion of a water resources study or project, toward the required non-Federal cost-share for a different water resources study or project. (b) Restrictions.-- (1) In general.--Except for subsection (a)(4)(D)(i) of that section, the requirements of section 221 of the Flood Control Act of 1970 (42 U.S.C. 1962d-5b) (as amended by section 3 of this Act) shall apply to any credit under this section. (2) Conditions.--Credit in excess of the non-Federal cost- share for a study or project may be approved under this section only if-- (A) the non-Federal interest submits a comprehensive plan to the Secretary that identifies-- (i) the studies and projects for which the non-Federal interest intends to provide in-kind contributions for credit that is in excess of the non-Federal cost share for the study or project; and (ii) the studies and projects to which that excess credit would be applied; (B) the Secretary approves the comprehensive plan; and (C) the total amount of credit does not exceed the total non-Federal cost-share for the studies and projects in the approved comprehensive plan. (c) Additional Criteria.--In evaluating a request to apply credit in excess of the non-Federal cost-share for a study or project toward a different study or project, the Secretary shall consider whether applying that credit will-- (1) help to expedite the completion of a project or group of projects; (2) reduce costs to the Federal Government; and (3) aid the completion of a project that provides significant flood risk reduction or environmental benefits. (d) Report.-- (1) Deadlines.-- (A) In general.--Not later than 2 years after the date of enactment of this Act, the Secretary shall submit to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Environment and Public Works of the Senate an interim report on the use of the authority under this section. (B) Final report.--Not later than 5 years after the date of enactment of this Act, the Secretary shall submit to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Environment and Public Works of the Senate a final report on the use of the authority under this section. (2) Inclusions.--The reports described in paragraph (1) shall include-- (A) a description of the use of the authority under this section during the reporting period; (B) an assessment of the impact of the authority under this section on the time required to complete projects; and (C) an assessment of the impact of the authority under this section on other water resources projects. SEC. 3. CREDIT FOR IN-KIND CONTRIBUTIONS. (a) In General.--Section 221(a)(4) of the Flood Control Act of 1970 (42 U.S.C. 1962d-5b(a)(4)) is amended-- (1) in subparagraph (A), in the matter preceding clause (i) by inserting ``or a project under an environmental infrastructure assistance program'' after ``law''; (2) in subparagraph (C), by striking ``In any case'' and all that follows through the period at the end and inserting the following: ``(i) Construction.-- ``(I) In general.--In any case in which the non-Federal interest is to receive credit under subparagraph (A) for the cost of construction carried out by the non-Federal interest before execution of a partnership agreement and that construction has not been carried out as of the date of enactment of this subparagraph, the Secretary and the non-Federal interest shall enter into an agreement under which the non- Federal interest shall carry out such work prior to the non-Federal interest initiating construction or issuing a written notice to proceed for the construction. ``(II) Eligibility.--Construction that is carried out after the execution of an agreement to carry out work described in subclause (I) and any design activities that are required for that construction, even if the design activity is carried out prior to the execution of the agreement to carry out work, shall be eligible for credit. ``(ii) Planning.-- ``(I) In general.--In any case in which the non-Federal interest is to receive credit under subparagraph (A) for the cost of planning carried out by the non-Federal interest before execution of a feasibility cost sharing agreement, the Secretary and the non- Federal interest shall enter into an agreement under which the non-Federal interest shall carry out such work prior to the non-Federal interest initiating that planning. ``(II) Eligibility.--Planning that is carried out by the non-Federal interest after the execution of an agreement to carry out work described in subclause (I) shall be eligible for credit.''; (3) in subparagraph (D)(iii), by striking ``sections 101 and 103'' and inserting ``sections 101(a)(2) and 103(a)(1)(A) of the Water Resources Development Act of 1986 (33 U.S.C. 2211(a)(2); 33 U.S.C. 2213(a)(1)(A))''; (4) by redesignating subparagraph (E) as subparagraph (H); (5) by inserting after subparagraph (D) the following: ``(E) Analysis of costs and benefits.--In the evaluation of the costs and benefits of a project, the Secretary shall not consider construction carried out by a non-Federal interest under this subsection as part of the future without project condition. ``(F) Transfer of credit between separable elements of a project.--Credit for in-kind contributions provided by a non-Federal interest, under this section or section 104 of the Water Resources Development Act of 1986 (33 U.S.C. 2214), that are in excess of the non-Federal cost share for an authorized separable element of a project may be applied toward the non- Federal cost share for a different authorized separable element of the same project or toward another authorized project, within the same watershed, for which the non-Federal interest has a cost share responsibility. ``(G) Application of credit.--To the extent that credit for in-kind contributions, as limited by subparagraph (D), and credit for required land, easements, rights-of-way, dredged material disposal areas, and relocations provided by the non-Federal interest exceed the non-Federal share of the cost of construction of a project other than a navigation project, the Secretary shall reimburse the difference to the non-Federal interest, subject to the availability of funds.''; and (6) in subparagraph (H) (as redesignated by paragraph (4))-- (A) in clause (i), by inserting ``, and to water resources projects authorized prior to the date of enactment of the Water Resources Development Act of 1986 (Public Law 99-662), if correction of design deficiencies is necessary'' before the period at the end; and (B) by striking clause (ii) and inserting the following: ``(ii) Authorization in addition to specific credit provision.--In any case in which a specific provision of law authorizes credit for in- kind contributions provided by a non-Federal interest before the date of execution of a partnership agreement, the Secretary may apply the authority provided in this paragraph to allow credit for in-kind contributions provided by the non-Federal interest on or after the date of execution of the partnership agreement.''. (b) Applicability.--Section 2003(e) of the Water Resources Development Act of 2007 (42 U.S.C. 1962d-5b note) is amended by inserting ``, or construction of design deficiency corrections on the project,'' after ``construction on the project''. (c) Effective Date.--The amendments made by subsections (a) and (b) take effect on November 8, 2007. (d) Guidelines.-- (1) In general.--Not later than 1 year after the date of enactment of this Act, the Secretary of the Army shall update any guidance or regulations for carrying out section 221(a)(4) of the Flood Control Act of 1970 (42 U.S.C. 1962d-5b(a)(4)) (as amended by subsection (a)) that are in existence on the date of enactment of this Act or issue new guidelines, as determined to be appropriate by the Secretary. (2) Inclusions.--Any guidance, regulations, or guidelines updated or issued under paragraph (1) shall include, at a minimum-- (A) the milestone for executing an in-kind memorandum of understanding for construction by a non- Federal interest; (B) criteria and procedures for evaluating a request to execute an in-kind memorandum of understanding for construction by a non-Federal interest that is earlier than the milestone under subparagraph (A) for that execution; and (C) criteria and procedures for determining whether work carried out by a non-Federal interest is integral to a project. (3) Public and stakeholder participation.--Before issuing any new or revised guidance, regulations, or guidelines or any subsequent updates to those documents, the Secretary shall-- (A) consult with affected non-Federal interests; (B) publish the proposed guidelines developed under this subsection in the Federal Register; and (C) provide the public with an opportunity to comment on the proposed guidelines. (e) Interim Period.--During the period beginning on the date of enactment of this Act and ending on the date on which guidance, regulations, or guidelines are updated or issued under subsection (d), the Secretary shall process credit under section 104 of the Water Resources Development Act of 1986 (33 U.S.C. 2214), upon request of a non-Federal interest, if-- (1) the applicable non-Federal work meets the requirements for credit under section 104; and (2) the applicable non-Federal work does not meet the requirements for credit under existing guidelines for section 221 of the Flood Control Act of 1970 (42 U.S.C. 1962d-5b). (f) Availability of Credit.--Credit for in-kind contributions authorized under section 221 of the Flood Control Act of 1970 (42 U.S.C. 1962d-5b) or section 104 of the Water Resources Development Act of 1986 (33 U.S.C. 2214) shall be available for work performed by a non-Federal interest on any separable element of a project following the identification by the Secretary of project alternatives as part of a feasibility study or a general or limited reevaluation report. (g) Other Credit.--Nothing in section 221(a)(4) of the Flood Control Act of 1970 (42 U.S.C. 1962d-5b(a)(4)) (as amended by subsection (a)) affects any eligibility for credit under section 104 of the Water Resources Development of 1986 (33 U.S.C. 2214) that was approved by the Secretary prior to the date of enactment of this Act.

Summary: Flood Control Credit Act of 2013 - Authorizes the Secretary of the Army to apply credit for in-kind contributions by a non-federal interest that exceed the required non-federal cost-share for a water resources study or project, including credit for in-kind contributions provided to accelerate completion of such a study or project, toward the required non-federal cost-share for a different water resources study or project. Allows credit in excess of non-federal cost-share for a study or project to be approved only if: (1) the non-federal interest submits a comprehensive plan to the Secretary that identifies the studies and projects for which it intends to provide in-kind contributions for credit that is in excess of the non-federal cost share for the study or project and the studies and projects to which that excess credit would be applied, (2) the Secretary approves such plan, and (3) the total amount of credit does not exceed the total non-federal cost-share for the studies and projects in the approved plan. Directs the Secretary to consider whether applying such credit will: (1) help to expedite the completion of a project or group of projects, (2) reduce federal government costs, and (3) aid the completion of a project that provides significant flood risk reduction or environmental benefits. Amends the Flood Control Act of 1970 to: allow a partnership agreement for the construction of a water resources project to require the Secretary to credit the value of in-kind contributions made by the non-federal interest toward the non-federal share of the cost of a project under an environmental infrastructure assistance program; require the Secretary and the non-federal interest, in any case in which the non-federal interest is to receive credit for the cost of construction it carried out before execution of a partnership agreement and such construction has not been carried out as of the date of enactment of this Act, to enter into an agreement under which the non-federal interest shall carry out such work prior to initiating construction or issuing a written notice to proceed for the construction; provide that construction that is carried out after the execution of such an agreement, and any design activities that are required for that construction, shall be eligible for credit; allow credit for in-kind contributions provided by a non-federal interest that are in excess of the non-federal cost share for an authorized separable element of a project to be applied toward the non-federal cost share for a different authorized separable element of the same project or toward another authorized project, within the same watershed, for which the non-federal interest has a cost share responsibility; and require the Secretary, to the extent that credit for in-kind contributions and credit for required land, easements, rights-of-way, dredged material disposal areas, and relocations provided by the non-federal interest exceed the non-federal share of the cost of construction of a project other than a navigation project, to reimburse the difference to the non-federal interest. Requires credit for in-kind contributions authorized for a water resources project under the Flood Control Act of 1970 or a flood control project under the Water Resources Development Act of 1986 to be available for work performed by a non-federal interest on any separable element of a project following the identification by the Secretary of project alternatives as part of a feasibility study or a general or limited reevaluation report.


SECTION 1. SHORT TITLE. This Act may be cited as the ``Tax Relief for Long-Term Care Act of 2008''. SEC. 2. CREDIT FOR LONG-TERM CARE INSURANCE PREMIUMS AND FOR TAXPAYERS WITH LONG-TERM CARE NEEDS. (a) In General.--Subpart A of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to nonrefundable personal credits) is amended by inserting after section 25D the following new section: ``SEC. 25E. CREDIT FOR LONG-TERM CARE INSURANCE PREMIUMS AND FOR TAXPAYERS WITH LONG-TERM CARE NEEDS. ``(a) Allowance of Credit.-- ``(1) In general.--There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the sum of-- ``(A) eligible long-term care premiums (as defined in section 213(d)(10)) paid during the taxable year for coverage for the taxpayer and the taxpayer's spouse and dependents under a qualified long-term care insurance contract (as defined in section 7702B(b)); and ``(B) the long-term care amount multiplied by the number of applicable individuals with respect to whom the taxpayer is an eligible caregiver for the taxable year. ``(2) Long-term care amount.--For purposes of paragraph (1), the long-term care amount shall be determined in accordance with the following table: ``For taxable years The long-term beginning in calender year-- care amount is-- 2009............................................... $1,000 2010............................................... $1,500 2011............................................... $2,000 2012............................................... $2,500 2013 or thereafter................................. $3,000. ``(b) Limitation Based on Adjusted Gross Income.-- ``(1) In general.--The amount of the credit allowable under subsection (a) shall be reduced (but not below zero) by $100 for each $1,000 (or fraction thereof) by which the taxpayer's modified adjusted gross income exceeds the threshold amount. For purposes of the preceding sentence, the term `modified adjusted gross income' means adjusted gross income increased by any amount excluded from gross income under section 911, 931, or 933. ``(2) Threshold amount.--For purposes of paragraph (1), the term `threshold amount' means-- ``(A) $150,000 in the case of a joint return, and ``(B) $75,000 in any other case. ``(3) Coordination.--For purposes of this section, the reduction under paragraph (1) shall be treated as first being a reduction in the long-term care amount to the extent thereof. ``(4) Indexing.--In the case of any taxable year beginning in a calendar year after 2009, each dollar amount contained in paragraph (2) shall be increased by an amount equal to the product of-- ``(A) such dollar amount, and ``(B) the medical care cost adjustment determined under section 213(d)(10)(B)(ii) for the calendar year in which the taxable year begins, determined by substituting `August 2008' for `August 1996' in subclause (II) thereof. If any increase determined under the preceding sentence is not a multiple of $50, such increase shall be rounded to the next lowest multiple of $50. ``(c) Definitions.--For purposes of this section-- ``(1) Applicable individual.-- ``(A) In general.--The term `applicable individual' means, with respect to any taxable year, any individual who has been certified, before the due date for filing the return of tax for the taxable year (without extensions), by a physician (as defined in section 1861(r)(1) of the Social Security Act) as being an individual with long-term care needs described in subparagraph (B) for a period-- ``(i) which is at least 180 consecutive days, and ``(ii) a portion of which occurs within the taxable year. Notwithstanding the preceding sentence, a certification shall not be treated as valid unless it is made within the 39\1/2\ month period ending on such due date (or such other period as the Secretary prescribes). ``(B) Individuals with long-term care needs.--An individual is described in this subparagraph if the individual meets any of the following requirements: ``(i) The individual is at least 6 years of age and-- ``(I) is unable to perform (without substantial assistance from another individual) at least 3 activities of daily living (as defined in section 7702B(c)(2)(B)) due to a loss of functional capacity, or ``(II) requires substantial supervision to protect such individual from threats to health and safety due to severe cognitive impairment and is unable to preform, without reminding or cuing assistance, at least 1 activity of daily living (as so defined) or to the extent provided in regulations prescribed by the Secretary (in consultation with the Secretary of Health and Human Services), is unable to engage in age appropriate activities. ``(ii) The individual is at least 2 but not 6 years of age and is unable due to a loss of functional capacity to perform (without substantial assistance from another individual) at least 2 of the following activities: eating, transferring, or mobility. ``(iii) The individual is under 2 years of age and requires specific durable medical equipment by reason of a severe health condition or requires a skilled practitioner trained to address the individual's condition to be available if the individual's parents or guardians are absent. ``(2) Eligible caregiver.-- ``(A) In general.--A taxpayer shall be treated as an eligible caregiver for any taxable year with respect to the following individuals: ``(i) The taxpayer. ``(ii) The taxpayer's spouse. ``(iii) An individual with respect to whom the taxpayer is allowed a deduction under section 151(c) for the taxable year. ``(iv) An individual who would be described in clause (iii) for the taxable year if the requirements of subparagraph (B) are met with respect to the individual in lieu of the support test under subsection (c)(1)(D) or (d)(1)(C) of section 152. ``(B) Residency test.--The requirements of this subparagraph are met if an individual has as his principal place of abode the home of the taxpayer and-- ``(i) in the case of an individual who is an ancestor or descendant of the taxpayer or the taxpayer's spouse, is a member of the taxpayer's household for over half the taxable year, or ``(ii) in the case of any other individual, is a member of the taxpayer's household for the entire taxable year. ``(C) Special rules where more than 1 eligible caregiver.-- ``(i) In general.--If more than 1 individual is an eligible caregiver with respect to the same applicable individual for taxable years ending with or within the same calendar year, a taxpayer shall be treated as the eligible caregiver if each such individual (other than the taxpayer) files a written declaration (in such form and manner as the Secretary may prescribe) that such individual will not claim such applicable individual for the credit under this section. ``(ii) No agreement.--If each individual required under clause (i) to file a written declaration under clause (i) does not do so, the individual with the highest adjusted gross income shall be treated as the eligible caregiver. ``(iii) Married individuals filing separately.--In the case of married individuals filing separately, the determination under this subparagraph as to whether the husband or wife is the eligible caregiver shall be made under the rules of clause (ii) (whether or not one of them has filed a written declaration under clause (i)). ``(d) Identification Requirement.--No credit shall be allowed under this section to a taxpayer with respect to any applicable individual unless the taxpayer includes the name and taxpayer identification number of such individual, and the identification number of the physician certifying such individual, on the return of tax for the taxable year. ``(e) Taxable Year Must Be Full Taxable Year.--Except in the case of a taxable year closed by reason of the death of the taxpayer, no credit shall be allowable under this section in the case of a taxable year covering a period of less than 12 months. ``(f) Coordination With Other Deductions.--Any amount paid by a taxpayer for any qualified long-term care insurance contract to which subsection (a) applies shall not be taken into account in computing the amount allowable to the taxpayer as a deduction under section 162(l) or 213(a).''. (b) Conforming Amendments.-- (1) Section 6213(g)(2) of such Code is amended by striking ``and'' at the end of subparagraph (L), by striking the period at the end of subparagraph (M) and inserting ``, and'', and by inserting after subparagraph (M) the following new subparagraph: ``(N) an omission of a correct TIN or physician identification required under section 25E(d) (relating to credit for taxpayers with long-term care needs) to be included on a return.''. (2) The table of sections for subpart A of part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 25D the following new item: ``Sec. 25E. Credit for long-term care insurance premiums and for taxpayers with long-term care needs.''. (c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2008.

Summary: Tax Relief for Long-Term Care Act of 2008 - Amends the Internal Revenue Code to allow a tax credit for long-term care insurance premiums and for care provided by a caregiver to a family member or dependent with long-term care needs who resides with such caregiver. Phases in a maximum credit amount of $3,000 between 2009 and 2013. Reduces such credit amount for a taxpayer whose adjusted gross income exceeds $75,000 ($150,000 in the case of a joint return).