Version	Word Count	Changes From Previous Version	Percent Change
Introduced in House	998	n/a	n/a
Engrossed in House	959	3	16%
Placed on Calendar Senate	1,035	8	5%
Engrossed Amendment Senate	972	77 Show Changes Hide Changes	95%

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HR 5901 PCS

Calendar No. 505

111th CONGRESS

2d Session

H. R. 5901

IN THE SENATE OF THE UNITED STATES

August 2, 2010

Received; read the first time

August 3, 2010

Read the second time and placed on the calendar

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AN ACT

TEASCommentsClose CommentsPermalink

Resolved, That the bill from the House of Representatives (H.R. 5901) entitled ‘An Act to amend the Internal Revenue Code of 1986 to exempt certain stock of real estate investment trusts from the tax on foreign investment in United States real property interests, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘Real Estate Jobs and Investment Act of 2010’.

SEC. 2. EXCEPTION FROM FIRPTA FOR CERTAIN STOCK’, do pass with the followingCommentsClose CommentsPermalink

SECTION 1. AUTHORITY OF REAL ESTATE INVESTMENT TRUSTTAX COURT TO APPOINT EMPLOYEES.

(a) In General- Paragraph (3Subsection (a) of section 897(c)7471 of the Internal Revenue Code of 1986 is amended--

(1) by striking all that precedes ‘If any class’ and inserting the following:

‘(3) EXCEPTIONS FOR CERTAIN STOCK DISPOSITIONS(relating to employees) is amended to read as follows: CommentsClose CommentsPermalink




‘(a) Appointment and Compensation- CommentsClose CommentsPermalink





‘(A) EXCEPTION FOR STOCK REGULARLY TRADED ON ESTABLISHED SECURITIES MARKETS- ’,

(2) by adding at the end of subparagraph (A) (as added by paragraph (1)) the following: ‘In the case of any class of stock of a real estate investment trust, the preceding sentence shall be applied by substituting ‘10 percent’ for ‘5 percent’.’, and

(3) by adding1) CLERK- The Tax Court may appoint a clerk without regard to the provisions of title 5, United States Code, governing appointments in the competitive service. The clerk shall serve at the end the following new subparagraph:‘(B) EXCEPTION FOR CERTAIN STOCK IN REAL ESTATE INVESTMENT TRUSTSpleasure of the Tax Court. CommentsClose CommentsPermalink




‘(2) JUDGE-‘(iAPPOINTED EMPLOYEES- CommentsClose CommentsPermalink





‘(A) IN GENERAL- Stock of a real estate investment trust held by a qualified shareholder shall notThe judges and special trial judges of the Tax Court may appoint employees, in such numbers as the Tax Court may approve, without regard to the provisions of title 5, United States Code, governing appointments in the competitive service. Any such employee shall serve at the pleasure of the appointing judge. CommentsClose CommentsPermalink





‘(B) EXEMPTION FROM FEDERAL LEAVE PROVISIONS- A law clerk appointed under this subsection shall be treated as a United States real property interest except to the extent that an investor in the qualified shareholder holds (directlyexempt from the provisions of subchapter I of chapter 63 of title 5, United States Code. Any unused sick leave or indirectly through the qualified shareholder) more than 10 percent of the stock of such real estate investment trust.‘(ii) QUALIFIED SHAREHOLDER- For purposesannual leave standing to the law clerk’s credit as of the effective date of this subparagraph, the term ‘qualified shareholder’ means a shareholder--‘(I) which wouldsection shall remain credited to the law clerk and shall be eligible for a reduced rate of withholdingavailable to the law clerk upon separation from the Federal Government. CommentsClose CommentsPermalink





‘(3) OTHER EMPLOYEES- The Tax Court may appoint necessary employees without regard to the provisions of title 5, United States Code, governing appointments in the competitive service. Such employees shall be subject to removal by the Tax Court. CommentsClose CommentsPermalink





‘(4) PAY- The Tax Court may fix and adjust the compensation for the clerk and other employees of the Tax Court without regard to the provisions of chapter 51, subchapter III of chapter 53, orsection 5373 of title 5, United States Code. To the maximum extent feasible, the Tax Court shall compensate employees at rates consistent with those for employees holding comparable positions in courts established under Article III of the Constitution of the United States. CommentsClose CommentsPermalink





‘(5) PROGRAMS- The Tax Court may establish programs for employee evaluations, incentive awards, flexible work schedules, premium pay, and resolution of employee grievances. CommentsClose CommentsPermalink





‘(6) DISCRIMINATION PROHIBITED- The Tax Court shall-- CommentsClose CommentsPermalink





‘(A) prohibit discrimination on the basis of race, color, religion, age, sex, national origin, political affiliation, marital status, or handicapping condition; and CommentsClose CommentsPermalink





‘(B) promulgate procedures for resolving complaints of discrimination by employees and applicants for employment. CommentsClose CommentsPermalink





‘(7) EXPERTS AND CONSULTANTS- The Tax Court may procure the services of experts and consultants undersection 3109 of title 5, United States Code. CommentsClose CommentsPermalink





‘(8) RIGHTS TO CERTAIN APPEALS RESERVED- Notwithstanding any income tax treaty of the United other provision of law, an individual who is an employee of the Tax Court on the day before the effective date of this subsection and who, as of that day, was entitled to-- CommentsClose CommentsPermalink





‘(A) appeal a reduction in grade or removal to the Merit Systems Protection Board under chapter 43 of title 5, United States Code, CommentsClose CommentsPermalink





‘(B) appeal an adverse action to the Merit Systems Protection Board under chapter 75 of title 5, United States Code, CommentsClose CommentsPermalink





‘(C) appeal a prohibited personnel practice described undersection 2302(b) of title 5, United States Code, to the Merit Systems Protection Board under chapter 77 of that title, CommentsClose CommentsPermalink





‘(D) make an allegation of a prohibited personnel practice described undersection 2302(b) of title 5, United States Code, with the Office of Special Counsel under chapter 12 of that title for action in accordance with respect to ordinary dividends paid by the real estate investment trust even if such shareholder holds more than 10 percent of the stock of such real estate investment trust, and‘(II) whose principal class of interests is listed and regularly traded on onethat chapter, or CommentsClose CommentsPermalink





‘(E) file an appeal with the Equal Employment Opportunity Commission under part 1614 of title 29 of the Code of Federal Regulations, CommentsClose CommentsPermalink





shall continue to be entitled to file such appeal or more recognized stock exchanges (as defined in the relevant income tax treaty referred to in subclause (I)).’.(b) Distributions of Real Estate Investment Trusts- Paragraph (1) of section 897(h) of such Code is amendedake such an allegation so long as the individual remains an employee of the Tax Court. CommentsClose CommentsPermalink





‘(9) COMPETITIVE STATUS- Notwithstanding any other provision of law, any employee of the Tax Court who has completed at least 1 year of continuous service under a non-temporary appointment with the Tax Court acquires a competitive status for appointment to any position in the competitive service for which the employee possesses the required qualifications. CommentsClose CommentsPermalink





‘(10) MERIT SYSTEM PRINCIPLES, PROHIBITED PERSONNEL PRACTICES, AND PREFERENCE ELIGIBLES- Any personnel management system of the Tax Court shall-- CommentsClose CommentsPermalink





(1) by inserting ‘(10 percent ‘(A) include the principles set forth insection 2301(b) of title 5, United States Code; CommentsClose CommentsPermalink





‘(B) prohibit personnel practices prohibited undersection 2302(b) of title 5, United States Code; and CommentsClose CommentsPermalink





‘(C) in the case of stock of a real estate investment trust)’ after ‘5 percent of such class of stock’, and(2) by inserting ‘, and any distribution to a qualified shareholder (as defined in subsection (c)(3)(B)(ii)) shall not be treated as gain recognized from the sale or exchange of a United States real property interest to theindividual who would be a preference eligible in the executive branch, provide preference for that individual in a manner and to an extent that the stock of the real estate investment trust held by such qualified shareholder is not treated as a United States real property interest under subsection (c)(3)(B)’ before the period at the end.

(c) Conforming Amendment- Subparagraph (C) of section 897(c)(6) of such Code is amended by striking ‘more than 5 percent’ and inserting ‘more than a particular percentage’.

(dconsistent with preference accorded to preference eligibles in the executive branch.’. CommentsClose CommentsPermalink




(b) Effective Date-(1) IN GENERAL- Except as provided in paragraph (2), t The amendments made by this section shall apply to dispositions made after the date of the enactment ofby this Act.(2) DISTRIBUTIONS OF REAL ESTATE INVESTMENT TRUSTS- The amendments made by subsection (b) shall apply to distributions madesection shall take effect on the date the United States Tax Court adopts a personnel management system after the date of the enactment of this Act. CommentsClose CommentsPermalink

SEC. 3. APPLICATION OF CONTINUOUS LEVY TO TAX LIABILITIES OF CERTAIN FEDERAL CONTRACTORS.(a) In General- Subsection (f) of section 6330 ofAmend the title so as to read: ‘An Act to amend the Internal Revenue Code of 1986 is amended by striking ‘or’ at the end of paragraph (2), by inserting ‘or’ at the end of paragraph (3), and by inserting after paragraph (3) the following new paragraph:

‘(4) the Secretary has served a Federal contractor levy,’.

(b) Federal Contractor Levy- Subsection (h) of section 6330 of such Code is amended--

(1) by striking all that precedes ‘any levy in connection with the collection’ and inserting the following:

‘(h) Definitions Related to Exceptions- For purposes of subsection (f)--

‘(1) DISQUALIFIED EMPLOYMENT TAX LEVY- A disqualified employmentto authorize the tax levy is’; and

(2) by adding at the end the following new paragraph:

‘(2) FEDERAL CONTRACTOR LEVY- A Federal contractor levy is any levy if the person whose property is subject to the levy (or any predecessor of such person) is a Federal contractorcourt to appoint employees.’.CommentsClose CommentsPermalink

(c) Conforming Amendment- The heading of subsection (f) of section 6330 of such Code is amended by striking ‘Jeopardy and State Refund Collection’ and inserting ‘Exceptions’.

(d) Effective Date- The amendments made by this section shall apply to levies issued after December 31, 2010.

SEC. 4. PAYGO COMPLIANCE.

The budgetary effects of this Act, for the purpose of complying with the Statutory Pay-As-You-Go Act of 2010, shall be determined by reference to the latest statement titled ‘Budgetary Effects of PAYGO Legislation’ for this Act, submitted for printing in the Congressional Record by the Chairman of the House Budget Committee, provided that such statement has been submitted prior to the vote on passage.

Passed the House of Representatives July 30, 2010.

Attest:

LORRAINE C. MILLER,

Clerk.

By Robert F. Reeves

Deputy Clerk.

Calendar No. 505

Attest: CommentsClose CommentsPermalink

111th CONGRESSCommentsClose CommentsPermalink

2d SessionCommentsClose CommentsPermalink

H.R. 5901CommentsClose CommentsPermalink

AN ACT

To amend the Internal Revenue Code of 1986 to exempt certain stock of real estate investment trusts from the tax on foreign investment in United States real property interests, and for other purposes.

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August 3, 2010

Read the second time and placed on the calendar

MENDMENTSCommentsClose CommentsPermalink