U.S. Congress - Text of H.R.3400 as Introduced in House Jobs Through Growth Act
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HR 3400 IHCommentsClose CommentsPermalink
112th CONGRESSCommentsClose CommentsPermalink
1st SessionCommentsClose CommentsPermalink
H. R. 3400CommentsClose CommentsPermalink
To spur economic growth and create jobs.CommentsClose CommentsPermalink
IN THE HOUSE OF REPRESENTATIVESCommentsClose CommentsPermalink
November 10, 2011CommentsClose CommentsPermalink
November 10, 2011CommentsClose CommentsPermalink
Mr. GARRETT (for himself, Mr. JORDAN, Mr. SCALISE, Mr. MULVANEY, Mr. HUELSKAMP, Mr. LABRADOR, Mr. WALSH of Illinois, Mr. DUNCAN of South Carolina, Mr. HUIZENGA of Michigan, Mr. WALBERG, Mr. PENCE, Mrs. HARTZLER, Mrs. LUMMIS, Mr. POE of Texas, and Mr. GOWDY) introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committees on Energy and Commerce, the Judiciary, Oversight and Government Reform, Natural Resources, Small Business, Transportation and Infrastructure, and Rules, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concernedCommentsClose CommentsPermalink
A BILLCommentsClose CommentsPermalink
To spur economic growth and create jobs.CommentsClose CommentsPermalink
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,CommentsClose CommentsPermalink
SECTION 1. SHORT TITLE.
(a) Short Title- This Act may be cited as the ‘Jobs Through Growth Act’.CommentsClose CommentsPermalink
(b) Table of Contents-CommentsClose CommentsPermalink
Sec. 1. Short title.CommentsClose CommentsPermalink
TITLE I--PRO-GROWTH, PRO-FAMILY TAX REFORM
Subtitle A--The Taxpayer Choice Act
Sec. 101. Repeal of alternative minimum tax for noncorporate taxpayers.CommentsClose CommentsPermalink
Sec. 102. Simplified individual income tax system.CommentsClose CommentsPermalink
Subtitle B--Capital Gains Inflation Relief Act
Sec. 111. Indexing of certain assets for purposes of determining gain or loss.CommentsClose CommentsPermalink
Subtitle C--Corporate Income Tax Rate Reduction
Sec. 121. Reduction of top corporate income tax rate to 25 percent.CommentsClose CommentsPermalink
Subtitle D--Corporate Tax Reform
Sec. 131. Recovery of lost revenue.CommentsClose CommentsPermalink
Subtitle E--Freedom to Invest Act
Sec. 141. Temporary dividends received deduction allowed for 2011 or 2012.CommentsClose CommentsPermalink
Subtitle F--Death Tax Repeal Permanency Act
Sec. 151. Repeal of estate and generation-skipping transfer taxes.CommentsClose CommentsPermalink
Sec. 152. Modifications of gift tax.CommentsClose CommentsPermalink
TITLE II--RED TAPE REDUCTION
Subtitle A--Regulatory Moratorium
Sec. 201. Definitions.CommentsClose CommentsPermalink
Sec. 202. Significant regulatory actions.CommentsClose CommentsPermalink
Sec. 203. Waivers.CommentsClose CommentsPermalink
Sec. 204. Judicial review.CommentsClose CommentsPermalink
Subtitle B--Increase of Size of Small Businesses Exempt From Federal Laws and Regulations
Sec. 211. Increase of size of small businesses exempt from Federal laws and regulations.CommentsClose CommentsPermalink
Subtitle C--The REINS Act
Sec. 221. Purpose.CommentsClose CommentsPermalink
Sec. 222. Congressional review of agency rulemaking.CommentsClose CommentsPermalink
Subtitle D--Small Business Regulatory Freedom
Sec. 231. Findings.CommentsClose CommentsPermalink
Sec. 232. Including indirect economic impact in small entity analyses.CommentsClose CommentsPermalink
Sec. 233. Judicial review to allow small entities to challenge proposed regulations.CommentsClose CommentsPermalink
Sec. 234. Periodic review and sunset of existing rules.CommentsClose CommentsPermalink
Sec. 235. Requiring small business review panels for all agencies.CommentsClose CommentsPermalink
Sec. 236. Expanding the Regulatory Flexibility Act to agency guidance documents.CommentsClose CommentsPermalink
Sec. 237. Requiring the Internal Revenue Service to consider small entity impact.CommentsClose CommentsPermalink
Sec. 238. Mitigating penalties on small entities.CommentsClose CommentsPermalink
Sec. 239. Requiring more detailed small entity analyses.CommentsClose CommentsPermalink
Sec. 240. Ensuring that agencies consider small entity impact during the rulemaking process.CommentsClose CommentsPermalink
Sec. 241. Qualifications of the Chief Counsel for Advocacy and authority for the Office of Advocacy.CommentsClose CommentsPermalink
Sec. 242. Technical and conforming amendments.CommentsClose CommentsPermalink
Subtitle E--Small Business Freedom of Commerce Act
Sec. 251. Small business exemptions.CommentsClose CommentsPermalink
TITLE III--AMERICAN ENERGY PRODUCTION
Subtitle A--End of Presidential Permatorium on America’s Outer Continental Shelf Resources
Sec. 301. Deadline for certain permit applications under existing leases.CommentsClose CommentsPermalink
Chapter 1--Outer Continental Shelf
Sec. 311. End moratorium of oil and gas leasing in certain areas of the Gulf of Mexico.CommentsClose CommentsPermalink
Sec. 312. Outer Continental Shelf directed lease sales.CommentsClose CommentsPermalink
Sec. 313. Leasing program considered approved.CommentsClose CommentsPermalink
Sec. 314. Outer Continental Shelf lease sales.CommentsClose CommentsPermalink
Sec. 315. Restrictions on leasing of the Outer Continental Shelf.CommentsClose CommentsPermalink
Sec. 316. Sharing of OCS receipts with States and local governments.CommentsClose CommentsPermalink
Chapter 2--Arctic Coastal Plain
Sec. 321. Definitions.CommentsClose CommentsPermalink
Sec. 322. Leasing program for land within the Coastal Plain.CommentsClose CommentsPermalink
Sec. 323. Lease sales.CommentsClose CommentsPermalink
Sec. 324. Grant of leases by the Secretary.CommentsClose CommentsPermalink
Sec. 325. Lease terms and conditions.CommentsClose CommentsPermalink
Sec. 326. Expedited judicial review.CommentsClose CommentsPermalink
Sec. 327. Rights-of-way across the Coastal Plain.CommentsClose CommentsPermalink
Sec. 328. Conveyance.CommentsClose CommentsPermalink
Subtitle B--Revocation of Energy-Restricting BLM Lockup
Sec. 331. Revocation of Secretarial Order No. 3310.CommentsClose CommentsPermalink
Chapter 1--Expedited Shale Leasing of Federal Lands
Sec. 341. Opening of lands to oil shale leasing.CommentsClose CommentsPermalink
Chapter 2--Judicial Review Regarding Energy Projects
Sec. 351. Exclusive jurisdiction over causes and claims relating to covered energy projects.CommentsClose CommentsPermalink
Sec. 352. Time for filing complaint.CommentsClose CommentsPermalink
Sec. 353. District Court for the District of Columbia deadline.CommentsClose CommentsPermalink
Sec. 354. Ability to seek appellate review.CommentsClose CommentsPermalink
Sec. 355. Deadline for appeal to the Supreme Court.CommentsClose CommentsPermalink
Sec. 356. Covered energy project defined.CommentsClose CommentsPermalink
Sec. 357. Limitation on application.CommentsClose CommentsPermalink
Chapter 3--Permitting Reform
Sec. 361. Purposes.CommentsClose CommentsPermalink
Sec. 362. Federal Coordinator.CommentsClose CommentsPermalink
Sec. 363. Regional Offices and Regional Permit Coordinators.CommentsClose CommentsPermalink
Sec. 364. Reviews and actions of Federal agencies.CommentsClose CommentsPermalink
Sec. 365. State coordination.CommentsClose CommentsPermalink
Sec. 366. Savings provision.CommentsClose CommentsPermalink
Sec. 367. Administrative and judicial review.CommentsClose CommentsPermalink
Sec. 368. Amendments to publication process.CommentsClose CommentsPermalink
Sec. 369. Repeal of fee for permits to drill.CommentsClose CommentsPermalink
Sec. 370. Alaska Offshore Continental Shelf Coordination Office.CommentsClose CommentsPermalink
Subtitle C--Relief From Regulations and Prohibitions That Cause Artificial Price Increases
Chapter 1--Relief From EPA Climate Change Regulations and Federal Prohibitions on Synthetic Fuels
Sec. 371. Repeal of EPA climate change regulation.CommentsClose CommentsPermalink
Sec. 372. Repeal of Federal ban on synthetic fuels purchasing requirement.CommentsClose CommentsPermalink
Chapter 2--Refinery Reform
Sec. 381. Refinery permitting process.CommentsClose CommentsPermalink
Sec. 382. Existing refinery permit application deadline.CommentsClose CommentsPermalink
Subtitle D--Extension of Certain Outer Continental Shelf Leases
Sec. 391. Extension of certain outer continental shelf leases.CommentsClose CommentsPermalink
Subtitle E--Expedited Consideration and Approval of the Construction and Operation of the Keystone XL Oil Pipeline
Sec. 396. Expedited consideration and approval of the construction and operation of the Keystone XL oil pipeline.CommentsClose CommentsPermalink
TITLE I--PRO-GROWTH, PRO-FAMILY TAX REFORMCommentsClose CommentsPermalink
TITLE I--PRO-GROWTH, PRO-FAMILY TAX REFORMCommentsClose CommentsPermalink
Subtitle A--The Taxpayer Choice ActCommentsClose CommentsPermalink
Subtitle A--The Taxpayer Choice ActCommentsClose CommentsPermalink
SEC. 101. REPEAL OF ALTERNATIVE MINIMUM TAX FOR NONCORPORATE TAXPAYERS.
(a) In General- Section 55(a) of the Internal Revenue Code of 1986 (relating to alternative minimum tax imposed) is amended by adding at the end the following new flush sentence:CommentsClose CommentsPermalink
‘In the case of a taxpayer other than a corporation, no tax shall be imposed by this section for any taxable year beginning after December 31, 2010, and the tentative minimum tax of any taxpayer other than a corporation for any such taxable year shall be zero for purposes of this title.’.CommentsClose CommentsPermalink
(b) Conforming Amendments-CommentsClose CommentsPermalink
(1) Section 26(c) of such Code is amended by striking ‘the term ‘tentative minimum tax’ means the amount determined under section 55(b)(1)’ and inserting ‘the tentative minimum tax is zero.’.CommentsClose CommentsPermalink
(2) Section 911(f)(2) of such Code is amended to read as follows:CommentsClose CommentsPermalink
‘(2) the tentative minimum tax under section 55 for the taxable year shall be zero.’.CommentsClose CommentsPermalink
(c) Effective Date- The amendments made by this section shall apply to taxable years beginning after December 31, 2010.CommentsClose CommentsPermalink
SEC. 102. SIMPLIFIED INDIVIDUAL INCOME TAX SYSTEM.
(a) In General- Part I of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to tax on individuals) is amended by redesignating section 5 as section 6 and by inserting after section 4 the following new section:CommentsClose CommentsPermalink
‘SEC. 5. SIMPLIFIED INDIVIDUAL INCOME TAX SYSTEM.
‘(a) Election-CommentsClose CommentsPermalink
‘(1) IN GENERAL- A taxpayer other than a corporation may elect in accordance with this subsection to be subject to the tax imposed by this section in lieu of the tax imposed by section 1 for a taxable year and all subsequent taxable years.CommentsClose CommentsPermalink
‘(2) EFFECT OF ELECTION- For purposes of this title, if an election is in effect under paragraph (1) for any taxable year, the tax imposed by this section shall be treated as the tax imposed by section 1 for the taxable year.CommentsClose CommentsPermalink
‘(3) ELECTION-CommentsClose CommentsPermalink
‘(A) IN GENERAL-CommentsClose CommentsPermalink
‘(i) IN GENERAL- Except as provided in clause (ii) of this subparagraph and clauses (ii) and (iii) of subparagraph (B), the election under paragraph (1) may only be made with respect to any taxable year beginning before January 1, 2022, on a timely filed return for the first taxable year for which the election applies.CommentsClose CommentsPermalink
‘(ii) NEW TAXPAYERS- In the case of an individual with no tax liability under this title before January 1, 2022, the election under paragraph (1) may only be made for the first taxable year beginning after December 31, 2021, for which such individual has tax liability under this title.CommentsClose CommentsPermalink
‘(B) EFFECT OF ELECTION-CommentsClose CommentsPermalink
‘(i) IN GENERAL- Except as provided in clauses (ii) and (iii), the election under paragraph (1), once made, shall be irrevocable.CommentsClose CommentsPermalink
‘(ii) ONE-TIME REVOCATION OF ELECTION- A taxpayer may revoke an election under paragraph (1) for a taxable year and all subsequent taxable years. The preceding sentence shall not apply if the taxpayer has made a revocation under such sentence for any prior taxable year.CommentsClose CommentsPermalink
‘(iii) FILING STATUS CHANGES DUE TO MAJOR LIFE EVENTS- In the case of any major life event described in clause (iv), a taxpayer may make an election under paragraph (1) or revoke such an election under clause (ii). Any such election or revocation shall apply for the taxable year for which made and all subsequent taxable years until the taxpayer makes an election under the preceding sentence for any subsequent (and all succeeding) taxable year.CommentsClose CommentsPermalink
‘(iv) MAJOR LIFE EVENT- For purposes of clause (iii), a major life event described in this clause is marriage, divorce, and death.CommentsClose CommentsPermalink
‘(b) Tax Imposed-CommentsClose CommentsPermalink
‘(1) MARRIED INDIVIDUALS AND SURVIVING SPOUSES- In the case of a taxpayer for whom an election under subsection (a) is in effect and who is a married individual (as defined in section 7703) who makes a single return jointly with his spouse under section 6013 or a surviving spouse (as defined in section 2(a)), there is hereby imposed on the alternative taxable income of such individual a tax determined in accordance with the following table:CommentsClose CommentsPermalink
‘If taxable income is:CommentsClose CommentsPermalink
The tax is:CommentsClose CommentsPermalink
The tax is:CommentsClose CommentsPermalink
Not over $100,000CommentsClose CommentsPermalink
15% of alternative taxable income.CommentsClose CommentsPermalink
Over $100,000CommentsClose CommentsPermalink
$15,000, plus 25% of the excess over $100,000.CommentsClose CommentsPermalink
‘(2) UNMARRIED INDIVIDUALS (OTHER THAN SURVIVING SPOUSES)- In the case of a taxpayer for whom an election under subsection (a) is in effect and who is not described in paragraph (1), there is hereby imposed on the alternative taxable income of such individual a tax determined in accordance with the following table:CommentsClose CommentsPermalink
‘If taxable income is:CommentsClose CommentsPermalink
The tax is:CommentsClose CommentsPermalink
The tax is:CommentsClose CommentsPermalink
Not over $50,000CommentsClose CommentsPermalink
15% of alternative taxable income.CommentsClose CommentsPermalink
Over $50,000CommentsClose CommentsPermalink
$7,500, plus 25% of the excess over $50,000.CommentsClose CommentsPermalink
‘(c) Maximum of Tax on Net Capital Gain of Noncorporate Taxpayers- If a taxpayer has a net capital gain for the taxable year, the tax imposed by subsection (b) for such taxable year shall not exceed the sum of--CommentsClose CommentsPermalink
‘(1) the amount determined under subsection (b) computed at the rate and in the same manner as if this paragraph had not been enacted on modified taxable income reduced by the lesser of--CommentsClose CommentsPermalink
‘(A) the net capital gain, orCommentsClose CommentsPermalink
‘(B) the adjusted net capital gain, plusCommentsClose CommentsPermalink
‘(2) 5 percent (0 percent in the case of taxable years beginning after 2007) of so much of the adjusted net capital gain (or, if less, modified taxable income) as does not exceed an amount equal to the excess described in section 1(h)(1)(B), plusCommentsClose CommentsPermalink
‘(3) 15 percent of the adjusted net capital gain (or, if less, modified taxable income) in excess of the amount on which tax is determined under paragraph (2).CommentsClose CommentsPermalink
Terms used in this paragraph which are also used in section 1(h) shall have the respective meanings given such terms by section 1(h) but computed with the adjustments under this section.CommentsClose CommentsPermalink
‘(d) Alternative Taxable Income- For purposes of this section--CommentsClose CommentsPermalink
‘(1) IN GENERAL- The term ‘alternative taxable income’ means--CommentsClose CommentsPermalink
‘(A) gross income, minusCommentsClose CommentsPermalink
‘(B) the sum of--CommentsClose CommentsPermalink
‘(i) the dependent allowance, plusCommentsClose CommentsPermalink
‘(ii) the alternative standard deduction.CommentsClose CommentsPermalink
‘(2) DEPENDENT ALLOWANCE- The dependent allowance is $12,500 for each dependent (as defined in section 152).CommentsClose CommentsPermalink
‘(3) ALTERNATIVE STANDARD DEDUCTION- The alternative standard deduction means--CommentsClose CommentsPermalink
‘(A) $25,000 in the case of--CommentsClose CommentsPermalink
‘(i) a joint return, orCommentsClose CommentsPermalink
‘(ii) a surviving spouse (as defined in section 2(a)), andCommentsClose CommentsPermalink
‘(B) $12,500 in the case of an individual--CommentsClose CommentsPermalink
‘(i) who is not married and is not a surviving spouse, orCommentsClose CommentsPermalink
‘(ii) who is a married individual filing a separate return.CommentsClose CommentsPermalink
‘(e) Inflation Adjustments-CommentsClose CommentsPermalink
‘(1) IN GENERAL- In the case of any taxable year beginning in a calendar year after 2012, each of the dollar amounts for the rate brackets in subsection (b) and each of the dollar amounts in subsection (d)(2)(B), (d)(3), and (d)(4) shall be increased by an amount equal to--CommentsClose CommentsPermalink
‘(A) such dollar amount, multiplied byCommentsClose CommentsPermalink
‘(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 2011’ for ‘calendar year 1992’ in subparagraph (B) thereof.CommentsClose CommentsPermalink
‘(2) ROUNDING- If any amount as adjusted under clause (i) is not a multiple of $100, such amount shall be rounded to the nearest multiple of $100.’.CommentsClose CommentsPermalink
(b) Conforming Amendment- The table of sections for part I of subchapter A of chapter 1 of such Code is amended by striking the item relating to section 5 and inserting after the item relating to section 4 the following:CommentsClose CommentsPermalink
‘Sec. 5. Simplified Individual Income Tax System.CommentsClose CommentsPermalink
‘Sec. 6. Cross references relating to tax on individuals.’.CommentsClose CommentsPermalink
(c) Capital Gains and Dividends Rate Made Permanent- The Jobs and Growth Tax Relief Reconciliation Act of 2003 is amended by striking section 303.CommentsClose CommentsPermalink
(d) Effective Date- The amendments made by this section shall apply to taxable years beginning after December 31, 2011.CommentsClose CommentsPermalink
Subtitle B--Capital Gains Inflation Relief ActCommentsClose CommentsPermalink
Subtitle B--Capital Gains Inflation Relief ActCommentsClose CommentsPermalink
SEC. 111. INDEXING OF CERTAIN ASSETS FOR PURPOSES OF DETERMINING GAIN OR LOSS.
(a) In General- Part II of subchapter O of chapter 1 of the Internal Revenue Code of 1986 (relating to basis rules of general application) is amended by redesignating section 1023 as section 1024 and by inserting after section 1022 the following new section:CommentsClose CommentsPermalink
‘SEC. 1023. INDEXING OF CERTAIN ASSETS FOR PURPOSES OF DETERMINING GAIN OR LOSS.
‘(a) General Rule-CommentsClose CommentsPermalink
‘(1) INDEXED BASIS SUBSTITUTED FOR ADJUSTED BASIS- Solely for purposes of determining gain or loss on the sale or other disposition by a taxpayer (other than a corporation) of an indexed asset which has been held for more than 3 years, the indexed basis of the asset shall be substituted for its adjusted basis.CommentsClose CommentsPermalink
‘(2) EXCEPTION FOR DEPRECIATION, ETC- The deductions for depreciation, depletion, and amortization shall be determined without regard to the application of paragraph (1) to the taxpayer or any other person.CommentsClose CommentsPermalink
‘(3) WRITTEN DOCUMENTATION REQUIREMENT- Paragraph (1) shall apply only with respect to indexed assets for which the taxpayer has written documentation of the original purchase price paid or incurred by the taxpayer to acquire such asset.CommentsClose CommentsPermalink
‘(b) Indexed Asset-CommentsClose CommentsPermalink
‘(1) IN GENERAL- For purposes of this section, the term ‘indexed asset’ means--CommentsClose CommentsPermalink
‘(A) common stock in a C corporation (other than a foreign corporation), orCommentsClose CommentsPermalink
‘(B) tangible property,CommentsClose CommentsPermalink
which is a capital asset or property used in the trade or business (as defined in section 1231(b)).CommentsClose CommentsPermalink
‘(2) STOCK IN CERTAIN FOREIGN CORPORATIONS INCLUDED- For purposes of this section--CommentsClose CommentsPermalink
‘(A) IN GENERAL- The term ‘indexed asset’ includes common stock in a foreign corporation which is regularly traded on an established securities market.CommentsClose CommentsPermalink
‘(B) EXCEPTION- Subparagraph (A) shall not apply to--CommentsClose CommentsPermalink
‘(i) stock of a foreign investment company,CommentsClose CommentsPermalink
‘(ii) stock in a passive foreign investment company (as defined in section 1296),CommentsClose CommentsPermalink
‘(iii) stock in a foreign corporation held by a United States person who meets the requirements of section 1248(a)(2), andCommentsClose CommentsPermalink
‘(iv) stock in a foreign personal holding company.CommentsClose CommentsPermalink
‘(C) TREATMENT OF AMERICAN DEPOSITORY RECEIPTS- An American depository receipt for common stock in a foreign corporation shall be treated as common stock in such corporation.CommentsClose CommentsPermalink
‘(c) Indexed Basis- For purposes of this section--CommentsClose CommentsPermalink
‘(1) GENERAL RULE- The indexed basis for any asset is--CommentsClose CommentsPermalink
‘(A) the adjusted basis of the asset, increased byCommentsClose CommentsPermalink
‘(B) the applicable inflation adjustment.CommentsClose CommentsPermalink
‘(2) APPLICABLE INFLATION ADJUSTMENT- The applicable inflation adjustment for any asset is an amount equal to--CommentsClose CommentsPermalink
‘(A) the adjusted basis of the asset, multiplied byCommentsClose CommentsPermalink
‘(B) the percentage (if any) by which--CommentsClose CommentsPermalink
‘(i) the gross domestic product deflator for the last calendar quarter ending before the asset is disposed of, exceedsCommentsClose CommentsPermalink
‘(ii) the gross domestic product deflator for the last calendar quarter ending before the asset was acquired by the taxpayer.CommentsClose CommentsPermalink
The percentage under subparagraph (B) shall be rounded to the nearest 1/10 of 1 percentage point.CommentsClose CommentsPermalink
‘(3) GROSS DOMESTIC PRODUCT DEFLATOR- The gross domestic product deflator for any calendar quarter is the implicit price deflator for the gross domestic product for such quarter (as shown in the last revision thereof released by the Secretary of Commerce before the close of the following calendar quarter).CommentsClose CommentsPermalink
‘(d) Suspension of Holding Period Where Diminished Risk of Loss; Treatment of Short Sales-CommentsClose CommentsPermalink
‘(1) IN GENERAL- If the taxpayer (or a related person) enters into any transaction which substantially reduces the risk of loss from holding any asset, such asset shall not be treated as an indexed asset for the period of such reduced risk.CommentsClose CommentsPermalink
‘(2) SHORT SALES-CommentsClose CommentsPermalink
‘(A) IN GENERAL- In the case of a short sale of an indexed asset with a short sale period in excess of 3 years, for purposes of this title, the amount realized shall be an amount equal to the amount realized (determined without regard to this paragraph) increased by the applicable inflation adjustment. In applying subsection (c)(2) for purposes of the preceding sentence, the date on which the property is sold short shall be treated as the date of acquisition and the closing date for the sale shall be treated as the date of disposition.CommentsClose CommentsPermalink
‘(B) SHORT SALE PERIOD- For purposes of subparagraph (A), the short sale period begins on the day that the property is sold and ends on the closing date for the sale.CommentsClose CommentsPermalink
‘(e) Treatment of Regulated Investment Companies and Real Estate Investment Trusts-CommentsClose CommentsPermalink
‘(1) ADJUSTMENTS AT ENTITY LEVEL-CommentsClose CommentsPermalink
‘(A) IN GENERAL- Except as otherwise provided in this paragraph, the adjustment under subsection (a) shall be allowed to any qualified investment entity (including for purposes of determining the earnings and profits of such entity).CommentsClose CommentsPermalink
‘(B) EXCEPTION FOR CORPORATE SHAREHOLDERS- Under regulations--CommentsClose CommentsPermalink
‘(i) in the case of a distribution by a qualified investment entity (directly or indirectly) to a corporation--CommentsClose CommentsPermalink
‘(I) the determination of whether such distribution is a dividend shall be made without regard to this section, andCommentsClose CommentsPermalink
‘(II) the amount treated as gain by reason of the receipt of any capital gain dividend shall be increased by the percentage by which the entity’s net capital gain for the taxable year (determined without regard to this section) exceeds the entity’s net capital gain for such year determined with regard to this section, andCommentsClose CommentsPermalink
‘(ii) there shall be other appropriate adjustments (including deemed distributions) so as to ensure that the benefits of this section are not allowed (directly or indirectly) to corporate shareholders of qualified investment entities.CommentsClose CommentsPermalink
For purposes of the preceding sentence, any amount includible in gross income under section 852(b)(3)(D) shall be treated as a capital gain dividend and an S corporation shall not be treated as a corporation.CommentsClose CommentsPermalink
‘(C) EXCEPTION FOR QUALIFICATION PURPOSES- This section shall not apply for purposes of sections 851(b) and 856(c).CommentsClose CommentsPermalink
‘(D) EXCEPTION FOR CERTAIN TAXES IMPOSED AT ENTITY LEVEL-CommentsClose CommentsPermalink
‘(i) TAX ON FAILURE TO DISTRIBUTE ENTIRE GAIN- If any amount is subject to tax under section 852(b)(3)(A) for any taxable year, the amount on which tax is imposed under such section shall be increased by the percentage determined under subparagraph (B)(i)(II). A similar rule shall apply in the case of any amount subject to tax under paragraph (2) or (3) of section 857(b) to the extent attributable to the excess of the net capital gain over the deduction for dividends paid determined with reference to capital gain dividends only. The first sentence of this clause shall not apply to so much of the amount subject to tax under section 852(b)(3)(A) as is designated by the company under section 852(b)(3)(D).CommentsClose CommentsPermalink
‘(ii) OTHER TAXES- This section shall not apply for purposes of determining the amount of any tax imposed by paragraph (4), (5), or (6) of section 857(b).CommentsClose CommentsPermalink
‘(2) ADJUSTMENTS TO INTERESTS HELD IN ENTITY-CommentsClose CommentsPermalink
‘(A) REGULATED INVESTMENT COMPANIES- Stock in a regulated investment company (within the meaning of section 851) shall be an indexed asset for any calendar quarter in the same ratio as--CommentsClose CommentsPermalink
‘(i) the average of the fair market values of the indexed assets held by such company at the close of each month during such quarter, bears toCommentsClose CommentsPermalink
‘(ii) the average of the fair market values of all assets held by such company at the close of each such month.CommentsClose CommentsPermalink
‘(B) REAL ESTATE INVESTMENT TRUSTS- Stock in a real estate investment trust (within the meaning of section 856) shall be an indexed asset for any calendar quarter in the same ratio as--CommentsClose CommentsPermalink
‘(i) the fair market value of the indexed assets held by such trust at the close of such quarter, bears toCommentsClose CommentsPermalink
‘(ii) the fair market value of all assets held by such trust at the close of such quarter.CommentsClose CommentsPermalink
‘(C) RATIO OF 80 PERCENT OR MORE- If the ratio for any calendar quarter determined under subparagraph (A) or (B) would (but for this subparagraph) be 80 percent or more, such ratio for such quarter shall be 100 percent.CommentsClose CommentsPermalink
‘(D) RATIO OF 20 PERCENT OR LESS- If the ratio for any calendar quarter determined under subparagraph (A) or (B) would (but for this subparagraph) be 20 percent or less, such ratio for such quarter shall be zero.CommentsClose CommentsPermalink
‘(E) LOOK-THRU OF PARTNERSHIPS- For purposes of this paragraph, a qualified investment entity which holds a partnership interest shall be treated (in lieu of holding a partnership interest) as holding its proportionate share of the assets held by the partnership.CommentsClose CommentsPermalink
‘(3) TREATMENT OF RETURN OF CAPITAL DISTRIBUTIONS- Except as otherwise provided by the Secretary, a distribution with respect to stock in a qualified investment entity which is not a dividend and which results in a reduction in the adjusted basis of such stock shall be treated as allocable to stock acquired by the taxpayer in the order in which such stock was acquired.CommentsClose CommentsPermalink
‘(4) QUALIFIED INVESTMENT ENTITY- For purposes of this subsection, the term ‘qualified investment entity’ means--CommentsClose CommentsPermalink
‘(A) a regulated investment company (within the meaning of section 851), andCommentsClose CommentsPermalink
‘(B) a real estate investment trust (within the meaning of section 856).CommentsClose CommentsPermalink
‘(f) Other Pass-Thru Entities-CommentsClose CommentsPermalink
‘(1) PARTNERSHIPS-CommentsClose CommentsPermalink
‘(A) IN GENERAL- In the case of a partnership, the adjustment made under subsection (a) at the partnership level shall be passed through to the partners.CommentsClose CommentsPermalink
‘(B) SPECIAL RULE IN THE CASE OF SECTION 754 ELECTIONS- In the case of a transfer of an interest in a partnership with respect to which the election provided in section 754 is in effect--CommentsClose CommentsPermalink
‘(i) the adjustment under section 743(b)(1) shall, with respect to the transferor partner, be treated as a sale of the partnership assets for purposes of applying this section, andCommentsClose CommentsPermalink
‘(ii) with respect to the transferee partner, the partnership’s holding period for purposes of this section in such assets shall be treated as beginning on the date of such adjustment.CommentsClose CommentsPermalink
‘(2) S CORPORATIONS- In the case of an S corporation, the adjustment made under subsection (a) at the corporate level shall be passed through to the shareholders. This section shall not apply for purposes of determining the amount of any tax imposed by section 1374 or 1375.CommentsClose CommentsPermalink
‘(3) COMMON TRUST FUNDS- In the case of a common trust fund, the adjustment made under subsection (a) at the trust level shall be passed through to the participants.CommentsClose CommentsPermalink
‘(4) INDEXING ADJUSTMENT DISREGARDED IN DETERMINING LOSS ON SALE OF INTEREST IN ENTITY- Notwithstanding the preceding provisions of this subsection, for purposes of determining the amount of any loss on a sale or exchange of an interest in a partnership, S corporation, or common trust fund, the adjustment made under subsection (a) shall not be taken into account in determining the adjusted basis of such interest.CommentsClose CommentsPermalink
‘(g) Dispositions Between Related Persons-CommentsClose CommentsPermalink
‘(1) IN GENERAL- This section shall not apply to any sale or other disposition of property between related persons except to the extent that the basis of such property in the hands of the transferee is a substituted basis.CommentsClose CommentsPermalink
‘(2) RELATED PERSONS DEFINED- For purposes of this section, the term ‘related persons’ means--CommentsClose CommentsPermalink
‘(A) persons bearing a relationship set forth in section 267(b), andCommentsClose CommentsPermalink
‘(B) persons treated as single employer under subsection (b) or (c) of section 414.CommentsClose CommentsPermalink
‘(h) Transfers To Increase Indexing Adjustment- If any person transfers cash, debt, or any other property to another person and the principal purpose of such transfer is to secure or increase an adjustment under subsection (a), the Secretary may disallow part or all of such adjustment or increase.CommentsClose CommentsPermalink
‘(i) Special Rules- For purposes of this section--CommentsClose CommentsPermalink
‘(1) TREATMENT OF IMPROVEMENTS, ETC- If there is an addition to the adjusted basis of any tangible property or of any stock in a corporation during the taxable year by reason of an improvement to such property or a contribution to capital of such corporation--CommentsClose CommentsPermalink
‘(A) such addition shall never be taken into account under subsection (c)(1)(A) if the aggregate amount thereof during the taxable year with respect to such property or stock is less than $1,000, andCommentsClose CommentsPermalink
‘(B) such addition shall be treated as a separate asset acquired at the close of such taxable year if the aggregate amount thereof during the taxable year with respect to such property or stock is $1,000 or more.CommentsClose CommentsPermalink
A rule similar to the rule of the preceding sentence shall apply to any other portion of an asset to the extent that separate treatment of such portion is appropriate to carry out the purposes of this section.CommentsClose CommentsPermalink
‘(2) ASSETS WHICH ARE NOT INDEXED ASSETS THROUGHOUT HOLDING PERIOD- The applicable inflation adjustment shall be appropriately reduced for periods during which the asset was not an indexed asset.CommentsClose CommentsPermalink
‘(3) TREATMENT OF CERTAIN DISTRIBUTIONS- A distribution with respect to stock in a corporation which is not a dividend shall be treated as a disposition.CommentsClose CommentsPermalink
‘(4) SECTION CANNOT INCREASE ORDINARY LOSS- To the extent that (but for this paragraph) this section would create or increase a net ordinary loss to which section 1231(a)(2) applies or an ordinary loss to which any other provision of this title applies, such provision shall not apply. The taxpayer shall be treated as having a long-term capital loss in an amount equal to the amount of the ordinary loss to which the preceding sentence applies.CommentsClose CommentsPermalink
‘(5) ACQUISITION DATE WHERE THERE HAS BEEN PRIOR APPLICATION OF SUBSECTION (a)(1) WITH RESPECT TO THE TAXPAYER- If there has been a prior application of subsection (a)(1) to an asset while such asset was held by the taxpayer, the date of acquisition of such asset by the taxpayer shall be treated as not earlier than the date of the most recent such prior application.CommentsClose CommentsPermalink
‘(j) Regulations- The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this section.’.CommentsClose CommentsPermalink
(b) Clerical Amendment- The table of sections for part II of subchapter O of chapter 1 of such Code is amended by striking the item relating to section 1023 and by inserting after the item relating to section 1022 the following new item:CommentsClose CommentsPermalink
‘Sec. 1023. Indexing of certain assets for purposes of determining gain or loss.CommentsClose CommentsPermalink
‘Sec. 1024. Cross references.’.CommentsClose CommentsPermalink
(c) Effective Date- The amendments made by this section shall apply to indexed assets acquired by the taxpayer after December 31, 2010, in taxable years ending after such date.CommentsClose CommentsPermalink
Subtitle C--Corporate Income Tax Rate ReductionCommentsClose CommentsPermalink
Subtitle C--Corporate Income Tax Rate ReductionCommentsClose CommentsPermalink
SEC. 121. REDUCTION OF TOP CORPORATE INCOME TAX RATE TO 25 PERCENT.
(1) IN GENERAL- Paragraph (1) of section 11(b) of the Internal Revenue Code of 1986 is amended by adding ‘and’ at the end of paragraph (1), by striking the comma at the end of paragraph (2) and inserting a period, and by striking all that follows paragraph (2).CommentsClose CommentsPermalink
(2) CONFORMING AMENDMENTS-CommentsClose CommentsPermalink
(A) Paragraph (2) of section 11(b) of such Code is amended by striking ‘35 percent’ and inserting ‘25 percent’.CommentsClose CommentsPermalink
(B) Section 1201(a) is amended by striking ‘35 percent’ each place it appears and inserting ‘25 percent’.CommentsClose CommentsPermalink
(C) Paragraphs (1) and (2) of section 1445(e) are each amended by striking ‘35 percent’ and inserting ‘25 percent’.CommentsClose CommentsPermalink
(3) EFFECTIVE DATE- The amendments made by this section shall apply to taxable years beginning after December 31, 2011.CommentsClose CommentsPermalink
Subtitle D--Corporate Tax ReformCommentsClose CommentsPermalink
Subtitle D--Corporate Tax ReformCommentsClose CommentsPermalink
SEC. 131. RECOVERY OF LOST REVENUE.
The Committee on Ways and Means of the House of Representatives shall report legislation to the House of Representatives proposing changes to existing law within the Committee’s jurisdiction with provisions that--CommentsClose CommentsPermalink
(1) broaden the tax base for the corporate income tax, andCommentsClose CommentsPermalink
(2) transition to a territorial tax system.CommentsClose CommentsPermalink
Subtitle E--Freedom to Invest ActCommentsClose CommentsPermalink
Subtitle E--Freedom to Invest ActCommentsClose CommentsPermalink
SEC. 141. TEMPORARY DIVIDENDS RECEIVED DEDUCTION ALLOWED FOR 2011 OR 2012.
(a) Election- Subsection (f) of section 965 of the Internal Revenue Code of 1986 (relating to election) is amended to read as follows:CommentsClose CommentsPermalink
‘(f) Election- The taxpayer may elect to apply this section to--CommentsClose CommentsPermalink
‘(1) the taxpayer’s last taxable year which begins before the date of the enactment of this subsection, orCommentsClose CommentsPermalink
‘(2) the taxpayer’s first taxable year which begins during the 1-year period beginning on such date.CommentsClose CommentsPermalink
Such election may be made for a taxable year only if made on or before the due date (including extensions) for filing the return of tax for such taxable year.’.CommentsClose CommentsPermalink
(b) Limitation- Paragraph (1) of section 965(b) of such Code is amended to read as follows:CommentsClose CommentsPermalink
‘(1) IN GENERAL- The amount of dividends taken into account under subsection (a) shall not exceed the sum of the current and accumulated earnings and profits described in section 959(c)(3) for the year a deduction is claimed under subsection (a), without diminution by reason of any distributions made during the election year, for all controlled foreign corporations of the United States shareholder.’.CommentsClose CommentsPermalink
(c) Failure To Maintain Employment Levels- Paragraph (4) of section 965(b) of such Code (relating to limitations) is amended to read as follows:CommentsClose CommentsPermalink
‘(4) REDUCTION IN BENEFITS FOR FAILURE TO MAINTAIN EMPLOYMENT LEVELS-CommentsClose CommentsPermalink
‘(A) IN GENERAL- If, during the period consisting of the calendar month in which the taxpayer first receives a distribution described in subsection (a)(1) and the succeeding 23 calendar months, the taxpayer does not maintain an average employment level at least equal to the taxpayer’s prior average employment, an additional amount equal to $25,000 multiplied by the number of employees by which the taxpayer’s average employment level during such period falls below the prior average employment (but not exceeding the aggregate amount allowed as a deduction pursuant to subsection (a)(1)) shall be taken into income by the taxpayer during the taxable year that includes the final day of such period.CommentsClose CommentsPermalink
‘(B) AVERAGE EMPLOYMENT LEVEL- For purposes of this paragraph, the taxpayer’s average employment level for a period shall be the average number of full-time United States employees of the taxpayer, measured at the end of each month during the period.CommentsClose CommentsPermalink
‘(C) PRIOR AVERAGE EMPLOYMENT- For purposes of this paragraph, the taxpayer’s ‘prior average employment’ shall be the average number of full-time United States employees of the taxpayer during the period consisting of the 24 calendar months immediately preceding the calendar month in which the taxpayer first receives a distribution described in subsection (a)(1).CommentsClose CommentsPermalink
‘(D) FULL-TIME UNITED STATES EMPLOYEE- For purposes of this paragraph--CommentsClose CommentsPermalink
‘(i) IN GENERAL- The term ‘full-time United States employee’ means an individual who provides services in the United States as a full-time employee, based on the employer’s standards and practices; except that regardless of the employer’s classification of the employee, an employee whose normal schedule is 40 hours or more per week is considered a full-time employee.CommentsClose CommentsPermalink
‘(ii) EXCEPTION FOR CHANGES IN OWNERSHIP OF TRADES OR BUSINESSES- Such term does not include--CommentsClose CommentsPermalink
‘(I) any individual who was an employee, on the date of acquisition, of any trade or business acquired by the taxpayer during the 24-month period referred to in subparagraph (A); andCommentsClose CommentsPermalink
‘(II) any individual who was an employee of any trade or business disposed of by the taxpayer during the 24-month period referred to in subparagraph (A) or the 24-month period referred to in subparagraph (C).CommentsClose CommentsPermalink
‘(E) AGGREGATION RULES- In determining the taxpayer’s average employment level and prior average employment, all domestic members of a controlled group shall be treated as a single taxpayer.’.CommentsClose CommentsPermalink
(d) Threshold Period- Section 965 of such Code is amended by striking ‘June 30, 2003’ each place it occurs and inserting ‘June 30, 2010’.CommentsClose CommentsPermalink
(e) Base Period- Paragraph (2) of subsection 965(c) of such Code is amended by inserting at the end of subparagraph (A) the following flush sentence: ‘For purposes of this paragraph, taxable years shall not include any year for which an election under section 965 was in effect.’.CommentsClose CommentsPermalink
(f) Indebtedness Determination Date- Subparagraph (B) of section 965(b)(3) of such Code is amended by striking ‘October 3, 2004’ and inserting ‘January 19, 2011’.CommentsClose CommentsPermalink
(g) Conforming Amendments-CommentsClose CommentsPermalink
(1) Subsection 965(c) of such Code, as amended by subsection (e), is amended by striking paragraph (1) and redesignating paragraphs (2), (3), (4), and (5) as paragraphs (1), (2), (3), and (4), respectively.CommentsClose CommentsPermalink
(2) Paragraph 965(c)(4) of such Code, as redesignated by paragraph (1), is amended to read as follows:CommentsClose CommentsPermalink
‘(4) CONTROLLED GROUPS- All United States shareholders which are members of an affiliated group filing a consolidated return under section 1501 shall be treated as one United States shareholder.’.CommentsClose CommentsPermalink
(h) Effective Date- The amendments made by this section shall apply to taxable years ending on or after the date of the enactment of this Act.CommentsClose CommentsPermalink
Subtitle F--Death Tax Repeal Permanency ActCommentsClose CommentsPermalink
Subtitle F--Death Tax Repeal Permanency ActCommentsClose CommentsPermalink
SEC. 151. REPEAL OF ESTATE AND GENERATION-SKIPPING TRANSFER TAXES.
(a) Estate Tax Repeal- Subchapter C of chapter 11 of subtitle B of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:CommentsClose CommentsPermalink
‘SEC. 2210. TERMINATION.
‘(a) In General- Except as provided in subsection (b), this chapter shall not apply to the estates of decedents dying on or after the date of the enactment of the Jobs Through Growth Act.CommentsClose CommentsPermalink
‘(b) Certain Distributions From Qualified Domestic Trusts- In applying section 2056A with respect to the surviving spouse of a decedent dying before the date of the enactment of the Jobs Through Growth Act--CommentsClose CommentsPermalink
‘(1) section 2056A(b)(1)(A) shall not apply to distributions made after the 10-year period beginning on such date, andCommentsClose CommentsPermalink
‘(2) section 2056A(b)(1)(B) shall not apply on or after such date.’.CommentsClose CommentsPermalink
(b) Generation-Skipping Transfer Tax Repeal- Subchapter G of chapter 13 of subtitle B of such Code is amended by adding at the end the following new section:CommentsClose CommentsPermalink
‘SEC. 2664. TERMINATION.
‘This chapter shall not apply to generation-skipping transfers on or after the date of the enactment of the Jobs Through Growth Act.’.CommentsClose CommentsPermalink
(c) Conforming Amendments-CommentsClose CommentsPermalink
(1) The table of sections for subchapter C of chapter 11 is amended by adding at the end the following new item:CommentsClose CommentsPermalink
‘Sec. 2210. Termination.’.CommentsClose CommentsPermalink
(2) The table of sections for subchapter G of chapter 13 is amended by adding at the end the following new item:CommentsClose CommentsPermalink
‘Sec. 2664. Termination.’.CommentsClose CommentsPermalink
(d) Restoration of Pre-EGTRRA Provisions Not Applicable-CommentsClose CommentsPermalink
(1) IN GENERAL- Section 301 of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 shall not apply to estates of decedents dying, and transfers made, on or after the date of the enactment of this Act.CommentsClose CommentsPermalink
(2) EXCEPTION FOR STEPPED-UP BASIS- Paragraph (1) shall not apply to the provisions of law amended by subtitle E of title V of the Economic Growth and Tax Relief Reconciliation Act of 2001 (relating to carryover basis at death; other changes taking effect with repeal).CommentsClose CommentsPermalink
(e) Sunset Not Applicable-CommentsClose CommentsPermalink
(1) Section 901 of the Economic Growth and Tax Relief Reconciliation Act of 2001 shall not apply to title V of such Act in the case of estates of decedents dying, and transfers made, on or after the date of the enactment of this Act.CommentsClose CommentsPermalink
(2) Section 304 of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 is hereby repealed.CommentsClose CommentsPermalink
(f) Effective Date- The amendments made by this section shall apply to the estates of decedents dying, and generation-skipping transfers, after the date of the enactment of this Act.CommentsClose CommentsPermalink
SEC. 152. MODIFICATIONS OF GIFT TAX.
(a) Computation of Gift Tax- Subsection (a) of section 2502 of the Internal Revenue Code of 1986 is amended to read as follows:CommentsClose CommentsPermalink
‘(a) Computation of Tax-CommentsClose CommentsPermalink
‘(1) IN GENERAL- The tax imposed by section 2501 for each calendar year shall be an amount equal to the excess of--CommentsClose CommentsPermalink
‘(A) a tentative tax, computed under paragraph (2), on the aggregate sum of the taxable gifts for such calendar year and for each of the preceding calendar periods, overCommentsClose CommentsPermalink
‘(B) a tentative tax, computed under paragraph (2), on the aggregate sum of the taxable gifts for each of the preceding calendar periods.CommentsClose CommentsPermalink
‘(2) RATE SCHEDULE-CommentsClose CommentsPermalink
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CommentsClose CommentsPermalink
‘If the amount with respect to which the tentative tax to be computed is: The tentative tax is: CommentsClose CommentsPermalink
Not over $10,000 18% of such amount. CommentsClose CommentsPermalink
Over $10,000 but not over $20,000 $1,800, plus 20% of the excess over $10,000. CommentsClose CommentsPermalink
Over $20,000 but not over $40,000 $3,800, plus 22% of the excess over $20,000. CommentsClose CommentsPermalink
Over $40,000 but not over $60,000 $8,200, plus 24% of the excess over $40,000. CommentsClose CommentsPermalink
Over $60,000 but not over $80,000 $13,000, plus 26% of the excess over $60,000. CommentsClose CommentsPermalink
Over $80,000 but not over $100,000 $18,200, plus 28% of the excess over $80,000. CommentsClose CommentsPermalink
Over $100,000 but not over $150,000 $23,800, plus 30% of the excess over $100,000. CommentsClose CommentsPermalink
Over $150,000 but not over $250,000 $38,800, plus 32% of the excess of $150,000. CommentsClose CommentsPermalink
Over $250,000 but not over $500,000 $70,800, plus 34% of the excess over $250,000. CommentsClose CommentsPermalink
Over $500,000 $155,800, plus 35% of the excess of $500,000.’. CommentsClose CommentsPermalink
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(b) Treatment of Certain Transfers in Trust- Section 2511 (relating to transfers in general) is amended by adding at the end the following new subsection:CommentsClose CommentsPermalink
‘(c) Treatment of Certain Transfers in Trust- Notwithstanding any other provision of this section and except as provided in regulations, a transfer in trust shall be treated as a taxable gift under section 2503, unless the trust is treated as wholly owned by the donor or the donor’s spouse under subpart E of part I of subchapter J of chapter 1.’.CommentsClose CommentsPermalink
(c) Lifetime Gift Exemption- Paragraph (1) of section 2505(a) of the Internal Revenue Code of 1986 is amended to read as follows:CommentsClose CommentsPermalink
‘(1) the amount of the tentative tax which would be determined under the rate schedule set forth in section 2502(a)(2) if the amount with respect to which such tentative tax is to be computed were $5,000,000, reduced by’.CommentsClose CommentsPermalink
(d) Conforming Amendments-CommentsClose CommentsPermalink
(1) Section 2505(a) of such Code is amended by striking the last sentence.CommentsClose CommentsPermalink
(2) The heading for section 2505 of such Code is amended by striking ‘unified’.CommentsClose CommentsPermalink
(3) The item in the table of sections for subchapter A of chapter 12 of such Code relating to section 2505 is amended to read as follows:CommentsClose CommentsPermalink
‘Sec. 2505. Credit against gift tax.’.CommentsClose CommentsPermalink
(e) Effective Date- The amendments made by this section shall apply to gifts made on or after the date of the enactment of this Act.CommentsClose CommentsPermalink
(f) Transition Rule-CommentsClose CommentsPermalink
(1) IN GENERAL- For purposes of applying sections 1015(d), 2502, and 2505 of the Internal Revenue Code of 1986, the calendar year in which this Act is enacted shall be treated as 2 separate calendar years one of which ends on the day before the date of the enactment of this Act and the other of which begins on such date of enactment.CommentsClose CommentsPermalink
(2) APPLICATION OF SECTION 2504(b)- For purposes of applying section 2504(b) of the Internal Revenue Code of 1986, the calendar year in which this Act is enacted shall be treated as one preceding calendar period.CommentsClose CommentsPermalink
TITLE II--RED TAPE REDUCTIONCommentsClose CommentsPermalink
TITLE II--RED TAPE REDUCTIONCommentsClose CommentsPermalink
Subtitle A--Regulatory MoratoriumCommentsClose CommentsPermalink
Subtitle A--Regulatory MoratoriumCommentsClose CommentsPermalink
SEC. 201. DEFINITIONS.
In this subtitle--CommentsClose CommentsPermalink
(1) the term ‘agency’ has the meaning given under
(2) the term ‘regulatory action’ means any substantive action by an agency that promulgates or is expected to lead to the promulgation of a final regulation, including notices of inquiry, advance notices of proposed rulemaking, and notices of proposed rulemaking;CommentsClose CommentsPermalink
(3) the term ‘significant regulatory action’ means any regulatory action that is likely to result in a rule or guidance that may--CommentsClose CommentsPermalink
(A) have an annual effect on the economy of $100,000,000 or more or adversely affect in a material way the economy, a sector of the economy, productivity, competition, jobs, the environment, public health or safety, small entities, or State, local, or tribal governments or communities;CommentsClose CommentsPermalink
(B) create a serious inconsistency or otherwise interfere with an action taken or planned by another agency;CommentsClose CommentsPermalink
(C) materially alter the budgetary impact of entitlements, grants, user fees, or loan programs or the rights and obligations of recipients thereof; orCommentsClose CommentsPermalink
(D) raise novel legal or policy issues; andCommentsClose CommentsPermalink
(4) the term ‘small entities’ has the meaning given under
SEC. 202. SIGNIFICANT REGULATORY ACTIONS.
(a) In General- No agency may take any significant regulatory action, until the Bureau of Labor Statistics average of monthly unemployment rates for any quarter beginning after the date of enactment of this Act is equal to or less than 7.7 percent.CommentsClose CommentsPermalink
(b) Determination- The Secretary of Labor shall submit a report to the Director of the Office of Management and Budget whenever the Secretary determines that the Bureau of Labor Statistics average of monthly unemployment rates for any quarter beginning after the date of enactment of this Act is equal to or less than 7.7 percent.CommentsClose CommentsPermalink
SEC. 203. WAIVERS.
(a) National Security or National Emergency- The President may waive the application of section 202 to any significant regulatory action, if the President--CommentsClose CommentsPermalink
(1) determines that the waiver is necessary on the basis of national security or a national emergency; andCommentsClose CommentsPermalink
(2) submits notification to Congress of that waiver and the reasons for that waiver.CommentsClose CommentsPermalink
(b) Additional Waivers-CommentsClose CommentsPermalink
(1) SUBMISSION- The President may submit a request to Congress for a waiver of the application of section 202 to any significant regulatory action.CommentsClose CommentsPermalink
(2) CONTENTS- A submission under this subsection shall include--CommentsClose CommentsPermalink
(A) an identification of the significant regulatory action; andCommentsClose CommentsPermalink
(B) the reasons which necessitate a waiver for that significant regulatory action.CommentsClose CommentsPermalink
(3) CONGRESSIONAL ACTION- Congress shall give expeditious consideration and take appropriate legislative action with respect to any waiver request submitted under this subsection.CommentsClose CommentsPermalink
SEC. 204. JUDICIAL REVIEW.
(a) Definition- In this section, the term ‘small business’ means any business, including an unincorporated business or a sole proprietorship, that employs not more than 500 employees or that has a net worth of less than $7,000,000 on the date a civil action arising under this subtitle is filed.CommentsClose CommentsPermalink
(b) Review- Any person that is adversely affected or aggrieved by any significant regulatory action in violation of this subtitle is entitled to judicial review in accordance with chapter 7 of title 5, United States Code.CommentsClose CommentsPermalink
(c) Jurisdiction- Each court having jurisdiction to review any significant regulatory action for compliance with any other provision of law shall have jurisdiction to review all claims under this subtitle.CommentsClose CommentsPermalink
(d) Relief- In granting any relief in any civil action under this section, the court shall order the agency to take corrective action consistent with this subtitle and chapter 7 of title 5, United States Code, including remanding the significant regulatory action to the agency and enjoining the application or enforcement of that significant regulatory action, unless the court finds by a preponderance of the evidence that application or enforcement is required to protect against an imminent and serious threat to the national security from persons or states engaged in hostile or military activities against the United States.CommentsClose CommentsPermalink
(e) Reasonable Attorney Fees for Small Businesses- The court shall award reasonable attorney fees and costs to a substantially prevailing small business in any civil action arising under this subtitle. A party qualifies as substantially prevailing even without obtaining a final judgment in its favor if the agency changes its position as a result of the civil action.CommentsClose CommentsPermalink
(f) Limitation on Commencing Civil Action- A person may seek and obtain judicial review during the 1-year period beginning on the date of the challenged agency action or within 90 days after an enforcement action or notice thereof, except that where another provision of law requires that a civil action be commenced before the expiration of that 1-year period, such lesser period shall apply.CommentsClose CommentsPermalink
Subtitle B--Increase of Size of Small Businesses Exempt From Federal Laws and RegulationsCommentsClose CommentsPermalink
Subtitle B--Increase of Size of Small Businesses Exempt From Federal Laws and RegulationsCommentsClose CommentsPermalink
SEC. 211. INCREASE OF SIZE OF SMALL BUSINESSES EXEMPT FROM FEDERAL LAWS AND REGULATIONS.
Notwithstanding any other provision of law, every exemption from, or special benefit under, any Federal law or regulation which is available to any business with 200 or fewer employees shall be available to every comparable business with 200 or fewer employees. The preceding sentence shall not apply in any context in which its application would result in increased eligibility for tax deductions or credits, or an increase in Federal expenditures.CommentsClose CommentsPermalink
Subtitle C--The REINS ActCommentsClose CommentsPermalink
Subtitle C--The REINS ActCommentsClose CommentsPermalink
SEC. 221. PURPOSE.
The purpose of this subtitle is to increase accountability for and transparency in the federal regulatory process. Section 1 of article I of the United States Constitution grants all legislative powers to Congress. Over time, Congress has excessively delegated its constitutional charge while failing to conduct appropriate oversight and retain accountability for the content of the laws it passes. By requiring a vote in Congress, this subtitle will result in more carefully drafted and detailed legislation, an improved regulatory process, and a legislative branch that is truly accountable to the American people for the laws imposed upon them.CommentsClose CommentsPermalink
SEC. 222. CONGRESSIONAL REVIEW OF AGENCY RULEMAKING.
Chapter 8 of title 5, United States Code, is amended to read as follows:CommentsClose CommentsPermalink
‘CHAPTER 8--CONGRESSIONAL REVIEW OF AGENCY RULEMAKING
‘Sec.CommentsClose CommentsPermalink
‘801. Congressional review.CommentsClose CommentsPermalink
‘802. Congressional approval procedure for major rules.CommentsClose CommentsPermalink
‘803. Congressional disapproval procedure for nonmajor rules.CommentsClose CommentsPermalink
‘804. Definitions.CommentsClose CommentsPermalink
‘805. Judicial review.CommentsClose CommentsPermalink
‘806. Exemption for monetary policy.CommentsClose CommentsPermalink
‘807. Effective date of certain rules.CommentsClose CommentsPermalink
‘Sec. 801. Congressional review
‘(a)(1)(A) Before a rule may take effect, the Federal agency promulgating such rule shall submit to each House of the Congress and to the Comptroller General a report containing--CommentsClose CommentsPermalink
‘(i) a copy of the rule;CommentsClose CommentsPermalink
‘(ii) a concise general statement relating to the rule;CommentsClose CommentsPermalink
‘(iii) a classification of the rule as a major or nonmajor rule, including an explanation of the classification specifically addressing each criteria for a major rule contained within sections 804(2)(A), 804(2)(B), and 804(2)(C);CommentsClose CommentsPermalink
‘(iv) a list of any other related regulatory actions intended to implement the same statutory provision or regulatory objective as well as the individual and aggregate economic effects of those actions; andCommentsClose CommentsPermalink
‘(v) the proposed effective date of the rule.CommentsClose CommentsPermalink
‘(B) On the date of the submission of the report under subparagraph (A), the Federal agency promulgating the rule shall submit to the Comptroller General and make available to each House of Congress--CommentsClose CommentsPermalink
‘(i) a complete copy of the cost-benefit analysis of the rule, if any;CommentsClose CommentsPermalink
‘(ii) the agency’s actions pursuant to title 5 of the United States Code, sections 603, 604, 605, 607, and 609;CommentsClose CommentsPermalink
‘(iii) the agency’s actions pursuant to title 2 of the United States Code, sections 1532, 1533, 1534, and 1535; andCommentsClose CommentsPermalink
‘(iv) any other relevant information or requirements under any other Act and any relevant Executive orders.CommentsClose CommentsPermalink
‘(C) Upon receipt of a report submitted under subparagraph (A), each House shall provide copies of the report to the chairman and ranking member of each standing committee with jurisdiction under the rules of the House of Representatives or the Senate to report a bill to amend the provision of law under which the rule is issued.CommentsClose CommentsPermalink
‘(2)(A) The Comptroller General shall provide a report on each major rule to the committees of jurisdiction by the end of 15 calendar days after the submission or publication date as provided in section 802(b)(2). The report of the Comptroller General shall include an assessment of the agency’s compliance with procedural steps required by paragraph (1)(B).CommentsClose CommentsPermalink
‘(B) Federal agencies shall cooperate with the Comptroller General by providing information relevant to the Comptroller General’s report under subparagraph (A).CommentsClose CommentsPermalink
‘(3) A major rule relating to a report submitted under paragraph (1) shall take effect upon enactment of a joint resolution of approval described in section 802 or as provided for in the rule following enactment of a joint resolution of approval described in section 802, whichever is later.CommentsClose CommentsPermalink
‘(4) A nonmajor rule shall take effect as provided by section 803 after submission to Congress under paragraph (1).CommentsClose CommentsPermalink
‘(5) If a joint resolution of approval relating to a major rule is not enacted within the period provided in subsection (b)(2), then a joint resolution of approval relating to the same rule may not be considered under this chapter in the same Congress by either the House of Representatives or the Senate.CommentsClose CommentsPermalink
‘(b)(1) A major rule shall not take effect unless the Congress enacts a joint resolution of approval described under section 802.CommentsClose CommentsPermalink
‘(2) If a joint resolution described in subsection (a) is not enacted into law by the end of 70 session days or legislative days, as applicable, beginning on the date on which the report referred to in section 801(a)(1)(A) is received by Congress (excluding days either House of Congress is adjourned for more than 3 days during a session of Congress), then the rule described in that resolution shall be deemed not to be approved and such rule shall not take effect.CommentsClose CommentsPermalink
‘(c)(1) Notwithstanding any other provision of this section (except subject to paragraph (3)), a major rule may take effect for one 90-calendar-day period if the President makes a determination under paragraph (2) and submits written notice of such determination to the Congress.CommentsClose CommentsPermalink
‘(2) Paragraph (1) applies to a determination made by the President by Executive order that the major rule should take effect because such rule is--CommentsClose CommentsPermalink
‘(A) necessary because of an imminent threat to health or safety or other emergency;CommentsClose CommentsPermalink
‘(B) necessary for the enforcement of criminal laws;CommentsClose CommentsPermalink
‘(C) necessary for national security; orCommentsClose CommentsPermalink
‘(D) issued pursuant to any statute implementing an international trade agreement.CommentsClose CommentsPermalink
‘(3) An exercise by the President of the authority under this subsection shall have no effect on the procedures under section 802.CommentsClose CommentsPermalink
‘(d)(1) In addition to the opportunity for review otherwise provided under this chapter, in the case of any rule for which a report was submitted in accordance with subsection (a)(1)(A) during the period beginning on the date occurring--CommentsClose CommentsPermalink
‘(A) in the case of the Senate, 60 session days, orCommentsClose CommentsPermalink
‘(B) in the case of the House of Representatives, 60 legislative days,CommentsClose CommentsPermalink
before the date the Congress is scheduled to adjourn a session of Congress through the date on which the same or succeeding Congress first convenes its next session, sections 802 and 803 shall apply to such rule in the succeeding session of Congress.CommentsClose CommentsPermalink
‘(2)(A) In applying sections 802 and 803 for purposes of such additional review, a rule described under paragraph (1) shall be treated as though--CommentsClose CommentsPermalink
‘(i) such rule were published in the Federal Register on--CommentsClose CommentsPermalink
‘(I) in the case of the Senate, the 15th session day, orCommentsClose CommentsPermalink
‘(II) in the case of the House of Representatives, the 15th legislative day,CommentsClose CommentsPermalink
after the succeeding session of Congress first convenes; andCommentsClose CommentsPermalink
‘(ii) a report on such rule were submitted to Congress under subsection (a)(1) on such date.CommentsClose CommentsPermalink
‘(B) Nothing in this paragraph shall be construed to affect the requirement under subsection (a)(1) that a report shall be submitted to Congress before a rule can take effect.CommentsClose CommentsPermalink
‘(3) A rule described under paragraph (1) shall take effect as otherwise provided by law (including other subsections of this section).CommentsClose CommentsPermalink
‘Sec. 802. Congressional approval procedure for major rules
‘(a) For purposes of this section, the term ‘joint resolution’ means only a joint resolution introduced on or after the date on which the report referred to in section 801(a)(1)(A) is received by Congress (excluding days either House of Congress is adjourned for more than 3 days during a session of Congress), the matter after the resolving clause of which is as follows: ‘That Congress approves the rule submitted by the X X relating to X X.’ (The blank spaces being appropriately filled in).CommentsClose CommentsPermalink
‘(1) In the House, the majority leader of the House of Representatives (or his designee) and the minority leader of the House of Representatives (or his designee) shall introduce such joint resolution described in subsection (a) (by request), within 3 legislative days after Congress receives the report referred to in section 801(a)(1)(A).CommentsClose CommentsPermalink
‘(2) In the Senate, the majority leader of the Senate (or his designee) and the minority leader of the Senate (or his designee) shall introduce such joint resolution described in subsection (a) (by request), within 3 session days after Congress receives the report referred to in section 801(a)(1)(A).CommentsClose CommentsPermalink
‘(b)(1) A joint resolution described in subsection (a) shall be referred to the committees in each House of Congress with jurisdiction under the rules of the House of Representatives or the Senate to report a bill to amend the provision of law under which the rule is issued.CommentsClose CommentsPermalink
‘(2) For purposes of this section, the term ‘submission date’ means the date on which the Congress receives the report submitted under section 801(a)(1).CommentsClose CommentsPermalink
‘(c) In the Senate, if the committee or committees to which a joint resolution described in subsection (a) has been referred have not reported it at the end of 15 session days after its introduction, such committee or committees shall be automatically discharged from further consideration of the resolution and it shall be placed on the calendar. A vote on final passage of the resolution shall be taken on or before the close of the 15th session day after the resolution is reported by the committee or committees to which it was referred, or after such committee or committees have been discharged from further consideration of the resolution.CommentsClose CommentsPermalink
‘(d)(1) In the Senate, when the committee or committees to which a joint resolution is referred have reported, or when a committee or committees are discharged (under subsection (c)) from further consideration of a joint resolution described in subsection (a), it is at any time thereafter in order (even though a previous motion to the same effect has been disagreed to) for a motion to proceed to the consideration of the joint resolution, and all points of order against the joint resolution (and against consideration of the joint resolution) are waived. The motion is not subject to amendment, or to a motion to postpone, or to a motion to proceed to the consideration of other business. A motion to reconsider the vote by which the motion is agreed to or disagreed to shall not be in order. If a motion to proceed to the consideration of the joint resolution is agreed to, the joint resolution shall remain the unfinished business of the Senate until disposed of.CommentsClose CommentsPermalink
‘(2) In the Senate, debate on the joint resolution, and on all debatable motions and appeals in connection therewith, shall be limited to not more than 2 hours, which shall be divided equally between those favoring and those opposing the joint resolution. A motion to further limit debate is in order and not debatable. An amendment to, or a motion to postpone, or a motion to proceed to the consideration of other business, or a motion to recommit the joint resolution is not in order.CommentsClose CommentsPermalink
‘(3) In the Senate, immediately following the conclusion of the debate on a joint resolution described in subsection (a), and a single quorum call at the conclusion of the debate if requested in accordance with the rules of the Senate, the vote on final passage of the joint resolution shall occur.CommentsClose CommentsPermalink
‘(4) Appeals from the decisions of the Chair relating to the application of the rules of the Senate to the procedure relating to a joint resolution described in subsection (a) shall be decided without debate.CommentsClose CommentsPermalink
‘(e)(1) In the House of Representatives, if the committee or committees to which a joint resolution described in subsection (a) has been referred have not reported it at the end of 15 legislative days after its introduction, such committee or committees shall be automatically discharged from further consideration of the resolution and it shall be placed on the appropriate calendar. A vote on final passage of the resolution shall be taken on or before the close of the 15th legislative day after the resolution is reported by the committee or committees to which it was referred, or after such committee or committees have been discharged from further consideration of the resolution.CommentsClose CommentsPermalink
‘(2)(A) A motion in the House of Representatives to proceed to the consideration of a resolution shall be privileged and not debatable. An amendment to the motion shall not be in order, nor shall it be in order to move to reconsider the vote by which the motion is agreed to or disagreed to.CommentsClose CommentsPermalink
‘(B) Debate in the House of Representatives on a resolution shall be limited to not more than two hours, which shall be divided equally between those favoring and those opposing the resolution. A motion to further limit debate shall not be debatable. No amendment to, or motion to recommit, the resolution shall be in order. It shall not be in order to reconsider the vote by which a resolution is agreed to or disagreed to.CommentsClose CommentsPermalink
‘(C) Motions to postpone, made in the House of Representatives with respect to the consideration of a resolution, and motions to proceed to the consideration of other business, shall be decided without debate.CommentsClose CommentsPermalink
‘(D) All appeals from the decisions of the Chair relating to the application of the Rules of the House of Representatives to the procedure relating to a resolution shall be decided without debate.CommentsClose CommentsPermalink
‘(f) If, before the passage by one House of a joint resolution of that House described in subsection (a), that House receives from the other House a joint resolution described in subsection (a), then the following procedures shall apply with respect to a joint resolution described in subsection (a) of the House receiving the joint resolution--CommentsClose CommentsPermalink
‘(1) the procedure in that House shall be the same as if no joint resolution had been received from the other House; butCommentsClose CommentsPermalink
‘(2) the vote on final passage shall be on the joint resolution of the other House.CommentsClose CommentsPermalink
‘(g) The enactment of a resolution of approval does not serve as a grant or modification of statutory authority by Congress for the promulgation of a rule, does not extinguish or affect any claim, whether substantive or procedural, against any alleged defect in a rule, and shall not form part of the record before the court in any judicial proceeding concerning a rule.CommentsClose CommentsPermalink
‘(h) This section and section 803 are enacted by Congress--CommentsClose CommentsPermalink
‘(1) as an exercise of the rulemaking power of the Senate and House of Representatives, respectively, and as such it is deemed a part of the rules of each House, respectively, but applicable only with respect to the procedure to be followed in that House in the case of a joint resolution described in subsection (a), and it supersedes other rules only to the extent that it is inconsistent with such rules; andCommentsClose CommentsPermalink
‘(2) with full recognition of the constitutional right of either House to change the rules (so far as relating to the procedure of that House) at any time, in the same manner, and to the same extent as in the case of any other rule of that House.CommentsClose CommentsPermalink
‘Sec. 803. Congressional disapproval procedure for nonmajor rules
‘(a) For purposes of this section, the term ‘joint resolution’ means only a joint resolution introduced in the period beginning on the date on which the report referred to in section 801(a)(1)(A) is received by Congress and ending 60 days thereafter (excluding days either House of Congress is adjourned for more than 3 days during a session of Congress), the matter after the resolving clause of which is as follows: ‘That Congress disapproves the nonmajor rule submitted by the X X relating to X X, and such rule shall have no force or effect.’ (The blank spaces being appropriately filled in).CommentsClose CommentsPermalink
‘(b)(1) A joint resolution described in subsection (a) shall be referred to the committees in each House of Congress with jurisdiction.CommentsClose CommentsPermalink
‘(2) For purposes of this section, the term submission or publication date means the later of the date on which--CommentsClose CommentsPermalink
‘(A) the Congress receives the report submitted under section 801(a)(1); orCommentsClose CommentsPermalink
‘(B) the nonmajor rule is published in the Federal Register, if so published.CommentsClose CommentsPermalink
‘(c) In the Senate, if the committee to which is referred a joint resolution described in subsection (a) has not reported such joint resolution (or an identical joint resolution) at the end of 15 session days after the date of introduction of the joint resolution, such committee may be discharged from further consideration of such joint resolution upon a petition supported in writing by 30 Members of the Senate, and such joint resolution shall be placed on the calendar.CommentsClose CommentsPermalink
‘(d)(1) In the Senate, when the committee to which a joint resolution is referred has reported, or when a committee is discharged (under subsection (c)) from further consideration of a joint resolution described in subsection (a), it is at any time thereafter in order (even though a previous motion to the same effect has been disagreed to) for a motion to proceed to the consideration of the joint resolution, and all points of order against the joint resolution (and against consideration of the joint resolution) are waived. The motion is not subject to amendment, or to a motion to postpone, or to a motion to proceed to the consideration of other business. A motion to reconsider the vote by which the motion is agreed to or disagreed to shall not be in order. If a motion to proceed to the consideration of the joint resolution is agreed to, the joint resolution shall remain the unfinished business of the Senate until disposed of.CommentsClose CommentsPermalink
‘(2) In the Senate, debate on the joint resolution, and on all debatable motions and appeals in connection therewith, shall be limited to not more than 10 hours, which shall be divided equally between those favoring and those opposing the joint resolution. A motion to further limit debate is in order and not debatable. An amendment to, or a motion to postpone, or a motion to proceed to the consideration of other business, or a motion to recommit the joint resolution is not in order.CommentsClose CommentsPermalink
‘(3) In the Senate, immediately following the conclusion of the debate on a joint resolution described in subsection (a), and a single quorum call at the conclusion of the debate if requested in accordance with the rules of the Senate, the vote on final passage of the joint resolution shall occur.CommentsClose CommentsPermalink
‘(4) Appeals from the decisions of the Chair relating to the application of the rules of the Senate to the procedure relating to a joint resolution described in subsection (a) shall be decided without debate.CommentsClose CommentsPermalink
‘(e) In the Senate the procedure specified in subsection (c) or (d) shall not apply to the consideration of a joint resolution respecting a nonmajor rule--CommentsClose CommentsPermalink
‘(1) after the expiration of the 60 session days beginning with the applicable submission or publication date, orCommentsClose CommentsPermalink
‘(2) if the report under section 801(a)(1)(A) was submitted during the period referred to in section 801(d)(1), after the expiration of the 60 session days beginning on the 15th session day after the succeeding session of Congress first convenes.CommentsClose CommentsPermalink
‘(f) If, before the passage by one House of a joint resolution of that House described in subsection (a), that House receives from the other House a joint resolution described in subsection (a), then the following procedures shall apply:CommentsClose CommentsPermalink
‘(1) The joint resolution of the other House shall not be referred to a committee.CommentsClose CommentsPermalink
‘(2) With respect to a joint resolution described in subsection (a) of the House receiving the joint resolution--CommentsClose CommentsPermalink
‘(A) the procedure in that House shall be the same as if no joint resolution had been received from the other House; butCommentsClose CommentsPermalink
‘(B) the vote on final passage shall be on the joint resolution of the other House.CommentsClose CommentsPermalink
‘Sec. 804. Definitions
‘For purposes of this chapter--CommentsClose CommentsPermalink
‘(1) The term ‘Federal agency’ means any agency as that term is defined in section 551(1).CommentsClose CommentsPermalink
‘(2) The term ‘major rule’ means any rule, including an interim final rule, that the Administrator of the Office of Information and Regulatory Affairs of the Office of Management and Budget finds has resulted in or is likely to result in--CommentsClose CommentsPermalink
‘(A) an annual effect on the economy of $100,000,000 or more;CommentsClose CommentsPermalink
‘(B) a major increase in costs or prices for consumers, individual industries, Federal, State, or local government agencies, or geographic regions; orCommentsClose CommentsPermalink
‘(C) significant adverse effects on competition, employment, investment, productivity, innovation, or on the ability of United States-based enterprises to compete with foreign-based enterprises in domestic and export markets.CommentsClose CommentsPermalink
‘(3) The term ‘nonmajor rule’ means any rule that is not a major rule.CommentsClose CommentsPermalink
‘(4) The term ‘rule’ has the meaning given such term in section 551, except that such term does not include--CommentsClose CommentsPermalink
‘(A) any rule of particular applicability, including a rule that approves or prescribes for the future rates, wages, prices, services, or allowances therefore, corporate or financial structures, reorganizations, mergers, or acquisitions thereof, or accounting practices or disclosures bearing on any of the foregoing;CommentsClose CommentsPermalink
‘(B) any rule relating to agency management or personnel; orCommentsClose CommentsPermalink
‘(C) any rule of agency organization, procedure, or practice that does not substantially affect the rights or obligations of non-agency parties.CommentsClose CommentsPermalink
‘Sec. 805. Judicial review
‘(a) No determination, finding, action, or omission under this chapter shall be subject to judicial review.CommentsClose CommentsPermalink
‘(b) Notwithstanding subsection (a), a court may determine whether a Federal agency has completed the necessary requirements under this chapter for a rule to take effect.CommentsClose CommentsPermalink
‘Sec. 806. Exemption for monetary policy
‘Nothing in this chapter shall apply to rules that concern monetary policy proposed or implemented by the Board of Governors of the Federal Reserve System or the Federal Open Market Committee.CommentsClose CommentsPermalink
‘Sec. 807. Effective date of certain rules
‘Notwithstanding section 801--CommentsClose CommentsPermalink
‘(1) any rule that establishes, modifies, opens, closes, or conducts a regulatory program for a commercial, recreational, or subsistence activity related to hunting, fishing, or camping; orCommentsClose CommentsPermalink
‘(2) any rule other than a major rule which an agency for good cause finds (and incorporates the finding and a brief statement of reasons therefore in the rule issued) that notice and public procedure thereon are impracticable, unnecessary, or contrary to the public interest,CommentsClose CommentsPermalink
shall take effect at such time as the Federal agency promulgating the rule determines.’.CommentsClose CommentsPermalink
Subtitle D--Small Business Regulatory FreedomCommentsClose CommentsPermalink
Subtitle D--Small Business Regulatory FreedomCommentsClose CommentsPermalink
SEC. 231. FINDINGS.
Congress finds the following:CommentsClose CommentsPermalink
(1) A vibrant and growing small business sector is critical to the recovery of the economy of the United States.CommentsClose CommentsPermalink
(2) Regulations designed for application to large-scale entities have been applied uniformly to small businesses and other small entities, sometimes inhibiting the ability of small entities to create new jobs.CommentsClose CommentsPermalink
(3) Uniform Federal regulatory and reporting requirements in many instances have imposed on small businesses and other small entities unnecessary and disproportionately burdensome demands, including legal, accounting, and consulting costs, thereby threatening the viability of small entities and the ability of small entities to compete and create new jobs in a global marketplace.CommentsClose CommentsPermalink
(4) Since 1980, Federal agencies have been required to recognize and take account of the differences in the scale and resources of regulated entities, but in many instances have failed to do so.CommentsClose CommentsPermalink
(5) In 2009, there were nearly 70,000 pages in the Federal Register, and, according to research by the Office of Advocacy of the Small Business Administration, the annual cost of Federal regulations totals $1,750,000,000,000. Small firms bear a disproportionate burden, paying approximately 36 percent more per employee than larger firms in annual regulatory compliance costs.CommentsClose CommentsPermalink
(6) All agencies in the Federal Government should fully consider the costs, including indirect economic impacts and the potential for job creation and job loss, of proposed rules, periodically review existing regulations to determine their impact on small entities, and repeal regulations that are unnecessarily duplicative or have outlived their stated purpose.CommentsClose CommentsPermalink
(7) It is the intention of Congress to amend chapter 6 of title 5, United States Code, to ensure that all impacts, including foreseeable indirect effects, of proposed and final rules are considered by agencies during the rulemaking process and that the agencies assess a full range of alternatives that will limit adverse economic consequences, enhance economic benefits, and fully address potential job creation or job loss.CommentsClose CommentsPermalink
SEC. 232. INCLUDING INDIRECT ECONOMIC IMPACT IN SMALL ENTITY ANALYSES.
‘(9) the term ‘economic impact’ means, with respect to a proposed or final rule--CommentsClose CommentsPermalink
‘(A) any direct economic effect of the rule on small entities; andCommentsClose CommentsPermalink
‘(B) any indirect economic effect on small entities, including potential job creation or job loss, that is reasonably foreseeable and that results from the rule, without regard to whether small entities are directly regulated by the rule.’.CommentsClose CommentsPermalink
SEC. 233. JUDICIAL REVIEW TO ALLOW SMALL ENTITIES TO CHALLENGE PROPOSED REGULATIONS.
(1) in paragraph (1), by inserting ‘603,’ after ‘601,’;CommentsClose CommentsPermalink
(2) in paragraph (2), by inserting ‘603,’ after ‘601,’;CommentsClose CommentsPermalink
(3) by striking paragraph (3) and inserting the following:CommentsClose CommentsPermalink
‘(3) A small entity may seek such review during the 1-year period beginning on the date of final agency action, except that--CommentsClose CommentsPermalink
‘(A) if a provision of law requires that an action challenging a final agency action be commenced before the expiration of 1 year, the lesser period shall apply to an action for judicial review under this section; andCommentsClose CommentsPermalink
‘(B) in the case of noncompliance with section 603 or 605(b), a small entity may seek judicial review of agency compliance with such section before the close of the public comment period.’; andCommentsClose CommentsPermalink
(4) in paragraph (4)--CommentsClose CommentsPermalink
(A) in subparagraph (A), by striking ‘, and’ and inserting a semicolon;CommentsClose CommentsPermalink
(B) in subparagraph (B), by striking the period and inserting ‘; or’; andCommentsClose CommentsPermalink
(C) by adding at the end the following:CommentsClose CommentsPermalink
‘(C) issuing an injunction prohibiting an agency from taking any agency action with respect to a rulemaking until that agency is in compliance with the requirements of section 603 or 605.’.CommentsClose CommentsPermalink
SEC. 234. PERIODIC REVIEW AND SUNSET OF EXISTING RULES.
‘Sec. 610. Periodic review of rules
‘(a)(1) Not later than 180 days after the date of enactment of the Jobs Through Growth Act, each agency shall establish a plan for the periodic review of--CommentsClose CommentsPermalink
‘(A) each rule issued by the agency that the head of the agency determines has a significant economic impact on a substantial number of small entities, without regard to whether the agency performed an analysis under section 604 with respect to the rule; andCommentsClose CommentsPermalink
‘(B) any small entity compliance guide required to be published by the agency under section 212 of the Small Business Regulatory Enforcement Fairness Act of 1996 (
5 U.S.C. 601 note).CommentsClose CommentsPermalink‘(2) In reviewing rules and small entity compliance guides under paragraph (1), the agency shall determine whether the rules and guides should--CommentsClose CommentsPermalink
‘(A) be amended or rescinded, consistent with the stated objectives of applicable statutes, to minimize any significant adverse economic impacts on a substantial number of small entities (including an estimate of any adverse impacts on job creation and employment by small entities); orCommentsClose CommentsPermalink
‘(B) continue in effect without change.CommentsClose CommentsPermalink
‘(3) Each agency shall publish the plan established under paragraph (1) in the Federal Register and on the Web site of the agency.CommentsClose CommentsPermalink
‘(4) An agency may amend the plan established under paragraph (1) at any time by publishing the amendment in the Federal Register and on the Web site of the agency.CommentsClose CommentsPermalink
‘(b)(1) Each plan established under subsection (a) shall provide for--CommentsClose CommentsPermalink
‘(A) the review of each rule and small entity compliance guide described in subsection (a)(1) in effect on the date of enactment of the Jobs Through Growth Act--CommentsClose CommentsPermalink
‘(i) not later than 8 years after the date of publication of the plan in the Federal Register; andCommentsClose CommentsPermalink
‘(ii) every 8 years thereafter; andCommentsClose CommentsPermalink
‘(B) the review of each rule adopted and small entity compliance guide described in subsection (a)(1) that is published after the date of enactment of the Jobs Through Growth Act--CommentsClose CommentsPermalink
‘(i) not later than 8 years after the publication of the final rule in the Federal Register; andCommentsClose CommentsPermalink
‘(ii) every 8 years thereafter.CommentsClose CommentsPermalink
‘(2)(A) If an agency determines that the review of the rules and guides described in paragraph (1)(A) cannot be completed before the date described in paragraph (1)(A)(i), the agency--CommentsClose CommentsPermalink
‘(i) shall publish a statement in the Federal Register certifying that the review cannot be completed; andCommentsClose CommentsPermalink
‘(ii) may extend the period for the review of the rules and guides described in paragraph (1)(A) for a period of not more than 2 years, if the agency publishes notice of the extension in the Federal Register.CommentsClose CommentsPermalink
‘(B) An agency shall transmit to the Chief Counsel for Advocacy of the Small Business Administration and Congress notice of any statement or notice described in subparagraph (A).CommentsClose CommentsPermalink
‘(c) In reviewing rules under the plan required under subsection (a), the agency shall consider--CommentsClose CommentsPermalink
‘(1) the continued need for the rule;CommentsClose CommentsPermalink
‘(2) the nature of complaints received by the agency from small entities concerning the rule;CommentsClose CommentsPermalink
‘(3) comments by the Regulatory Enforcement Ombudsman and the Chief Counsel for Advocacy of the Small Business Administration;CommentsClose CommentsPermalink
‘(4) the complexity of the rule;CommentsClose CommentsPermalink
‘(5) the extent to which the rule overlaps, duplicates, or conflicts with other Federal rules and, unless the head of the agency determines it to be infeasible, State and local rules;CommentsClose CommentsPermalink
‘(6) the contribution of the rule to the cumulative economic impact of all Federal rules on the class of small entities affected by the rule, unless the head of the agency determines that such a calculation cannot be made;CommentsClose CommentsPermalink
‘(7) the length of time since the rule has been evaluated, or the degree to which technology, economic conditions, or other factors have changed in the area affected by the rule; andCommentsClose CommentsPermalink
‘(8) the impact of the rule, including--CommentsClose CommentsPermalink
‘(A) the estimated number of small entities to which the rule will apply;CommentsClose CommentsPermalink
‘(B) the estimated number of small entity jobs that will be lost or created due to the rule; andCommentsClose CommentsPermalink
‘(C) the projected reporting, recordkeeping, and other compliance requirements of the proposed rule, including--CommentsClose CommentsPermalink
‘(i) an estimate of the classes of small entities that will be subject to the requirement; andCommentsClose CommentsPermalink
‘(ii) the type of professional skills necessary for preparation of the report or record.CommentsClose CommentsPermalink
‘(d)(1) Each agency shall submit an annual report regarding the results of the review required under subsection (a) to--CommentsClose CommentsPermalink
‘(A) Congress; andCommentsClose CommentsPermalink
‘(B) in the case of an agency that is not an independent regulatory agency (as defined in section 3502(5) of title 44), the Administrator of the Office of Information and Regulatory Affairs of the Office of Management and Budget.CommentsClose CommentsPermalink
‘(2) Each report required under paragraph (1) shall include a description of any rule or guide with respect to which the agency made a determination of infeasibility under paragraph (5) or (6) of subsection (c), together with a detailed explanation of the reasons for the determination.CommentsClose CommentsPermalink
‘(e) Each agency shall publish in the Federal Register and on the Web site of the agency a list of the rules and small entity compliance guides to be reviewed under the plan required under subsection (a) that includes--CommentsClose CommentsPermalink
‘(1) a brief description of each rule or guide;CommentsClose CommentsPermalink
‘(2) for each rule, the reason why the head of the agency determined that the rule has a significant economic impact on a substantial number of small entities (without regard to whether the agency had prepared a final regulatory flexibility analysis for the rule); andCommentsClose CommentsPermalink
‘(3) a request for comments from the public, the Chief Counsel for Advocacy of the Small Business Administration, and the Regulatory Enforcement Ombudsman concerning the enforcement of the rules or publication of the guides.CommentsClose CommentsPermalink
‘(f)(1) With respect to each agency, not later than 6 months after each date described in subsection (b)(1), the Chief Counsel for Advocacy of the Small Business Administration shall determine whether the agency has completed the review required under subsection (b).CommentsClose CommentsPermalink
‘(2) If, after a review under paragraph (1), the Chief Counsel for Advocacy of the Small Business Administration determines that an agency has failed to complete the review required under subsection (b), each rule issued by the agency that the head of the agency determined under subsection (a) has a significant economic impact on a substantial number of small entities shall immediately cease to have effect.’.CommentsClose CommentsPermalink
SEC. 235. REQUIRING SMALL BUSINESS REVIEW PANELS FOR ALL AGENCIES.
(a) Agencies-
(1) in subsection (b), by striking ‘a covered agency’ each place it appears and inserting ‘an agency’; andCommentsClose CommentsPermalink
(2) in subsection (e)(1), by striking ‘the covered agency’ and inserting ‘the agency’.CommentsClose CommentsPermalink
(b) Technical and Conforming Amendments-CommentsClose CommentsPermalink
(1) SECTION 609-
(A) by striking subsection (d), as amended by section 1100G(a) of
(B) by redesignating subsection (e) as subsection (d).CommentsClose CommentsPermalink
(2) SECTION 603-
(A) in paragraph (1), by striking ‘a covered agency, as defined in section 609(d)(2)’ and inserting ‘the Bureau of Consumer Financial Protection’; andCommentsClose CommentsPermalink
(B) in paragraph (2), by striking ‘A covered agency, as defined in section 609(d)(2),’ and inserting ‘The Bureau of Consumer Financial Protection’.CommentsClose CommentsPermalink
(3) SECTION 604-
(A) by redesignating the second paragraph designated as paragraph (6) (relating to covered agencies), as added by section 1100G(c)(3) of
(B) in paragraph (7), as so redesignated--CommentsClose CommentsPermalink
(i) by striking ‘a covered agency, as defined in section 609(d)(2)’ and inserting ‘the Bureau of Consumer Financial Protection’; andCommentsClose CommentsPermalink
(ii) by striking ‘the agency’ and inserting ‘the Bureau’.CommentsClose CommentsPermalink
(4) EFFECTIVE DATE- The amendments made by this subsection shall take effect on the date of enactment of this Act and apply on and after the designated transfer date established under section 1062 of
SEC. 236. EXPANDING THE REGULATORY FLEXIBILITY ACT TO AGENCY GUIDANCE DOCUMENTS.
SEC. 237. REQUIRING THE INTERNAL REVENUE SERVICE TO CONSIDER SMALL ENTITY IMPACT.
(a) In General-
(b) Definitions-
(1) in paragraph (6), by striking ‘and’ at the end; andCommentsClose CommentsPermalink
(2) by striking paragraphs (7) and (8) and inserting the following:CommentsClose CommentsPermalink
‘(7) the term ‘collection of information’ has the meaning given that term in section 3502(3) of title 44;CommentsClose CommentsPermalink
‘(8) the term ‘recordkeeping requirement’ has the meaning given that term in section 3502(13) of title 44; and’.CommentsClose CommentsPermalink
SEC. 238. MITIGATING PENALTIES ON SMALL ENTITIES.
Section 223 of the Small Business Regulatory Enforcement Fairness Act of 1996 (
‘(d) Review of Policies and Programs-CommentsClose CommentsPermalink
‘(1) REVIEW REQUIRED- Not later than 6 months after the date of enactment of this subsection, and every 2 years thereafter, each agency regulating the activities of small entities shall review the policy or program established by the agency under subsection (a) and make any modifications to the policy or program necessary to comply with the requirements under this section.CommentsClose CommentsPermalink
‘(2) REPORT- Not later than 6 months after the date of enactment of this subsection, and every 2 years thereafter, each agency described in paragraph (1) shall submit a report on the review and modifications required under paragraph (1) to--CommentsClose CommentsPermalink
‘(A) the Committee on Small Business and Entrepreneurship and the Committee on Homeland Security and Governmental Affairs of the Senate; andCommentsClose CommentsPermalink
‘(B) the Committee on Small Business and the Committee on the Judiciary of the House of Representatives.’.CommentsClose CommentsPermalink
SEC. 239. REQUIRING MORE DETAILED SMALL ENTITY ANALYSES.
(a) Initial Regulatory Flexibility Analysis-
(1) by striking subsection (b) and inserting the following:CommentsClose CommentsPermalink
‘(b) Each initial regulatory flexibility analysis required under this section shall contain a detailed statement--CommentsClose CommentsPermalink
‘(1) describing the reasons why action by the agency is being considered;CommentsClose CommentsPermalink
‘(2) describing the objectives of, and legal basis for, the proposed rule;CommentsClose CommentsPermalink
‘(3) estimating the number and type of small entities to which the proposed rule will apply;CommentsClose CommentsPermalink
‘(4) describing the projected reporting, recordkeeping, and other compliance requirements of the proposed rule, including an estimate of the classes of small entities which will be subject to the requirement and the type of professional skills necessary for preparation of the report and record;CommentsClose CommentsPermalink
‘(5) describing all relevant Federal rules which may duplicate, overlap, or conflict with the proposed rule, or the reasons why such a description could not be provided; andCommentsClose CommentsPermalink
‘(6) estimating the additional cumulative economic impact of the proposed rule on small entities, including job creation and employment by small entities, beyond that already imposed on the class of small entities by the agency, or the reasons why such an estimate is not available.’; andCommentsClose CommentsPermalink
(2) by adding at the end the following:CommentsClose CommentsPermalink
‘(e) An agency shall notify the Chief Counsel for Advocacy of the Small Business Administration of any draft rules that may have a significant economic impact on a substantial number of small entities--CommentsClose CommentsPermalink
‘(1) when the agency submits a draft rule to the Office of Information and Regulatory Affairs of the Office of Management and Budget under Executive Order 12866, if that order requires the submission; orCommentsClose CommentsPermalink
‘(2) if no submission to the Office of Information and Regulatory Affairs is required--CommentsClose CommentsPermalink
‘(A) a reasonable period before publication of the rule by the agency; andCommentsClose CommentsPermalink
‘(B) in any event, not later than 3 months before the date on which the agency publishes the rule.’.CommentsClose CommentsPermalink
(b) Final Regulatory Flexibility Analysis-CommentsClose CommentsPermalink
(1) IN GENERAL-
(A) by inserting ‘detailed’ before ‘description’ each place it appears;CommentsClose CommentsPermalink
(B) in paragraph (2)--CommentsClose CommentsPermalink
(i) by inserting ‘detailed’ before ‘statement’ each place it appears; andCommentsClose CommentsPermalink
(ii) by inserting ‘(or certification of the proposed rule under section 605(b))’ after ‘initial regulatory flexibility analysis’;CommentsClose CommentsPermalink
(C) in paragraph (4), by striking ‘an explanation’ and inserting ‘a detailed explanation’; andCommentsClose CommentsPermalink
(D) in paragraph (6) (relating to a description of steps taken to minimize significant economic impact), as added by section 1601 of the Small Business Jobs Act of 2010 (
(2) PUBLICATION OF ANALYSIS ON WEB SITE, ETC-
‘(b) The agency shall--CommentsClose CommentsPermalink
‘(1) make copies of the final regulatory flexibility analysis available to the public, including by publishing the entire final regulatory flexibility analysis on the Web site of the agency; andCommentsClose CommentsPermalink
‘(2) publish in the Federal Register the final regulatory flexibility analysis, or a summary of the analysis that includes the telephone number, mailing address, and address of the Web site where the complete final regulatory flexibility analysis may be obtained.’.CommentsClose CommentsPermalink
(c) Cross-References to Other Analyses-
‘(a) A Federal agency shall be deemed to have satisfied a requirement regarding the content of a regulatory flexibility agenda or regulatory flexibility analysis under section 602, 603, or 604, if the Federal agency provides in the agenda or regulatory flexibility analysis a cross-reference to the specific portion of an agenda or analysis that is required by another law and that satisfies the requirement under section 602, 603, or 604.’.CommentsClose CommentsPermalink
(d) Certifications-
(e) Quantification Requirements-
‘Sec. 607. Quantification requirements
‘In complying with sections 603 and 604, an agency shall provide--CommentsClose CommentsPermalink
‘(1) a quantifiable or numerical description of the effects of the proposed or final rule, including an estimate of the potential for job creation or job loss, and alternatives to the proposed or final rule; orCommentsClose CommentsPermalink
‘(2) a more general descriptive statement regarding the potential for job creation or job loss and a detailed statement explaining why quantification under paragraph (1) is not practicable or reliable.’.CommentsClose CommentsPermalink
SEC. 240. ENSURING THAT AGENCIES CONSIDER SMALL ENTITY IMPACT DURING THE RULEMAKING PROCESS.
(1) by inserting ‘(1)’ after ‘(b)’; andCommentsClose CommentsPermalink
(2) by adding at the end the following:CommentsClose CommentsPermalink
‘(2) If, after publication of the certification required under paragraph (1), the head of the agency determines that there will be a significant economic impact on a substantial number of small entities, the agency shall comply with the requirements of section 603 before the publication of the final rule, by--CommentsClose CommentsPermalink
‘(A) publishing an initial regulatory flexibility analysis for public comment; orCommentsClose CommentsPermalink
‘(B) re-proposing the rule with an initial regulatory flexibility analysis.CommentsClose CommentsPermalink
‘(3) The head of an agency may not make a certification relating to a rule under this subsection, unless the head of the agency has determined--CommentsClose CommentsPermalink
‘(A) the average cost of the rule for small entities affected or reasonably presumed to be affected by the rule;CommentsClose CommentsPermalink
‘(B) the number of small entities affected or reasonably presumed to be affected by the rule; andCommentsClose CommentsPermalink
‘(C) the number of affected small entities for which that cost will be significant.CommentsClose CommentsPermalink
‘(4) Before publishing a certification and a statement providing the factual basis for the certification under paragraph (1), the head of an agency shall--CommentsClose CommentsPermalink
‘(A) transmit a copy of the certification and statement to the Chief Counsel for Advocacy of the Small Business Administration; andCommentsClose CommentsPermalink
‘(B) consult with the Chief Counsel for Advocacy of the Small Business Administration on the accuracy of the certification and statement.’.CommentsClose CommentsPermalink
SEC. 241. QUALIFICATIONS OF THE CHIEF COUNSEL FOR ADVOCACY AND AUTHORITY FOR THE OFFICE OF ADVOCACY.
(a) Qualifications of Chief Counsel for Advocacy- Section 201 of
(b) Additional Powers of Office of Advocacy- Section 203 of
(1) in paragraph (5), by striking ‘and’ at the end;CommentsClose CommentsPermalink
(2) in paragraph (6), by striking the period at the end and inserting ‘; and’; andCommentsClose CommentsPermalink
(3) by inserting after paragraph (6) the following:CommentsClose CommentsPermalink
‘(7) at the discretion of the Chief Counsel for Advocacy, comment on regulatory action by an agency that affects small businesses, without regard to whether the agency is required to file a notice of proposed rulemaking under
section 553 of title 5, United States Code , with respect to the action.’.CommentsClose CommentsPermalink
SEC. 242. TECHNICAL AND CONFORMING AMENDMENTS.
(a) Heading-
(b) Table of Sections- The table of sections for chapter 6 of title 5, United States Code, is amended--CommentsClose CommentsPermalink
(1) by striking the item relating to section 605 and inserting the following:CommentsClose CommentsPermalink
‘605. Incorporations by reference and certifications.’;CommentsClose CommentsPermalink
andCommentsClose CommentsPermalink
(2) by striking the item relating to section 607 inserting the following:CommentsClose CommentsPermalink
‘607. Quantification requirements.’.CommentsClose CommentsPermalink
Subtitle E--Small Business Freedom of Commerce ActCommentsClose CommentsPermalink
Subtitle E--Small Business Freedom of Commerce ActCommentsClose CommentsPermalink
SEC. 251. SMALL BUSINESS EXEMPTIONS.
(a) Election- Notwithstanding any other provision of law, a small business concern operating in the United States may elect to be exempt from any Federal rule or regulation issued on or after January 1, 2008.CommentsClose CommentsPermalink
(b) Process for Exemption-CommentsClose CommentsPermalink
(1) NOTIFICATION OF FEDERAL AGENCY- To be exempt from a rule or regulation under this section, the highest ranking official of a small business concern shall provide to the Federal agency that issued such rule or regulation written notice that the small business concern has elected to be exempt from such rule or regulation.CommentsClose CommentsPermalink
(2) TIMING- A small business concern shall be exempt from a rule or regulation beginning on the date that is 30 days after the date that written notice provided by such concern under paragraph (1), with respect to such rule or regulation, is received by the applicable Federal agency.CommentsClose CommentsPermalink
(3) CONFIRMATION OF WRITTEN NOTICE- Not later than 7 days after receiving a written notice under paragraph (1), the head of the Federal agency that received such notice shall provide to the applicable small business concern written confirmation that such notice has been received.CommentsClose CommentsPermalink
(c) Notification of Public- A small business concern that is exempt from a Federal rule or regulation under this section shall--CommentsClose CommentsPermalink
(1) label any product of the concern affected by such exemption in a manner that provides notice that the product is no longer subject to such rule or regulation; andCommentsClose CommentsPermalink
(2) include in any communication of the concern relating to a product or activity affected by such exemption notice that the product or activity is no longer subject to such rule or regulation.CommentsClose CommentsPermalink
(d) Penalties- A small business concern that fails to satisfy any requirement under this section shall be subject to penalties for noncompliance with an applicable Federal rule or regulation without regard to any election of the small business concern to be exempt from such rule or regulation.CommentsClose CommentsPermalink
(e) Limitations- A small business concern may not elect to be exempt under this section from a rule or regulation issued by the Department of Defense or the Department of Homeland Security, if the Secretary of Defense or the Secretary of Homeland Security has determined that such rule or regulation is necessary for the security of the United States.CommentsClose CommentsPermalink
(f) Definitions- In this section, the following definitions apply:CommentsClose CommentsPermalink
(1) FEDERAL AGENCY- The term ‘Federal agency’ means any department, agency, or independent establishment of the Federal Government.CommentsClose CommentsPermalink
(2) SMALL BUSINESS CONCERN- The term ‘small business concern’ has the meaning given such term in section 3(a) of the Small Business Act (
TITLE III--AMERICAN ENERGY PRODUCTIONCommentsClose CommentsPermalink
TITLE III--AMERICAN ENERGY PRODUCTIONCommentsClose CommentsPermalink
Subtitle A--End of Presidential Permatorium on America’s Outer Continental Shelf ResourcesCommentsClose CommentsPermalink
Subtitle A--End of Presidential Permatorium on America’s Outer Continental Shelf ResourcesCommentsClose CommentsPermalink
SEC. 301. DEADLINE FOR CERTAIN PERMIT APPLICATIONS UNDER EXISTING LEASES.
(a) In General- A lease under which a covered application is submitted to the Secretary of the Interior shall be considered to be in directed suspension during the period beginning May 27, 2010, and ending on the date the Secretary issues a final decision on the application, if the Secretary does not issue a final decision on the application--CommentsClose CommentsPermalink
(1) before the end of the 30-day period beginning on the date of enactment of this Act, in the case of a covered application submitted before such date of enactment; orCommentsClose CommentsPermalink
(2) before the end of the 30-day period beginning on the date the application is received by the Secretary, in the case of a covered application submitted on or after such date of enactment.CommentsClose CommentsPermalink
(b) Covered Application- In this section the term ‘covered application’ means an application for a permit to drill under an oil and gas lease under the Outer Continental Shelf Lands Act in effect on the date of enactment of this Act, that--CommentsClose CommentsPermalink
(1) represents a resubmission of an approved permit to drill (including an application for a permit to sidetrack) that was approved by the Secretary before May 27, 2010; andCommentsClose CommentsPermalink
(2) is received by the Secretary after October 12, 2010, and before the end of the 30-day period beginning on the date of enactment of this Act.CommentsClose CommentsPermalink
CHAPTER 1--OUTER CONTINENTAL SHELF
SEC. 311. END MORATORIUM OF OIL AND GAS LEASING IN CERTAIN AREAS OF THE GULF OF MEXICO.
(a) Repeal of Moratorium-CommentsClose CommentsPermalink
(1) REPEAL- Subsection (a) of section 104 of the Gulf of Mexico Energy Security Act of 2006 (
(2) NATIONAL DEFENSE AREA- Section 12(d) of the Outer Continental Shelf Lands Act (
(A) by striking ‘(d) The United States’ and inserting the following:CommentsClose CommentsPermalink
‘(d) Restriction of Areas for National Defense-CommentsClose CommentsPermalink
‘(1) IN GENERAL- The United States’; andCommentsClose CommentsPermalink
(B) by adding at the end the following:CommentsClose CommentsPermalink
‘(2) REVIEW- Annually, the Secretary of Defense shall review the areas of the outer Continental Shelf that have been designated as restricted from exploration and operation to determine whether the areas should remain under restriction.’.CommentsClose CommentsPermalink
(b) Leasing of Moratorium Areas-CommentsClose CommentsPermalink
(1) IN GENERAL- As soon as practicable, but not later than 1 year, after the date of enactment of this Act, the Secretary of the Interior shall offer for leasing under the Outer Continental Shelf Lands Act (
(2) LEASING PLAN- Any areas made available for leasing under paragraph (1) shall be offered for lease under this section notwithstanding the omission of any of these respective areas from the applicable 5-year plan developed by the Secretary pursuant to section 18 of the Outer Continental Shelf Lands Act (
(c) Military Mission- Section 104 of the Gulf of Mexico Energy Security Act of 2006 (
(1) by striking ‘(b) Military Mission Line- Notwithstanding subsection (a), the’ and inserting ‘(a) Military Mission- The’;CommentsClose CommentsPermalink
(2) by redesignating subsection (c) as subsection (b);CommentsClose CommentsPermalink
(3) in subsection (b)(1), as so redesignated, by striking ‘paragraph (2) or (3) of subsection (a)’ and inserting ‘paragraph (5)’; andCommentsClose CommentsPermalink
(4) in subsection (b), as so redesignated, by adding at the end the following:CommentsClose CommentsPermalink
‘(5) AREAS DESCRIBED- The areas referred to in paragraph (1) are--CommentsClose CommentsPermalink
‘(A) any area in the Eastern Planning Area that is within 125 miles of the coastline of the State of Florida; andCommentsClose CommentsPermalink
‘(B) any area in the Central Planning Area that is--CommentsClose CommentsPermalink
‘(i) within--CommentsClose CommentsPermalink
‘(I) the 181 Area; andCommentsClose CommentsPermalink
‘(II) 100 miles of the coastline of the State of Florida; orCommentsClose CommentsPermalink
‘(ii)(I) outside the 181 Area;CommentsClose CommentsPermalink
‘(II) east of the western edge of the Pensacola Official Protraction Diagram (UTM X coordinate 1,393,920 (NAD 27 feet)); andCommentsClose CommentsPermalink
‘(III) within 100 miles of the coastline of the State of Florida.’.CommentsClose CommentsPermalink
SEC. 312. OUTER CONTINENTAL SHELF DIRECTED LEASE SALES.
(a) 209 Lease Sale- The Secretary of the Interior (referred to in this section as the ‘Secretary’) shall offer the Beaufort Sea Program Area for oil and gas leasing pursuant to the Outer Continental Shelf Lands Act (
(b) 210 Lease Sale- The Secretary shall offer the Western Gulf of Mexico Program Area for oil and gas leasing pursuant to the Outer Continental Shelf Lands Act (
(c) 212 Lease Sale- The Secretary shall offer the Chukchi Sea Program Area for oil and gas leasing pursuant to the Outer Continental Shelf Lands Act (
(d) 213 Lease Sale- The Secretary shall offer the Central Gulf of Mexico Program Area for oil and gas leasing pursuant to the Outer Continental Shelf Lands Act (
(e) 215 Lease Sale- The Secretary shall offer the Western Gulf of Mexico Program Area for oil and gas leasing pursuant to the Outer Continental Shelf Lands Act (
(f) 216 Lease Sale- The Secretary shall offer the Central Gulf of Mexico Program Area for oil and gas leasing pursuant to the Outer Continental Shelf Lands Act (
(g) 217 Lease Sale- The Secretary shall offer the Beaufort Sea Program Area for oil and gas leasing pursuant to the Outer Continental Shelf Lands Act (
(h) 214 Lease Sale- The Secretary shall offer the North Aleutian Basin Program Area for oil and gas leasing pursuant to the Outer Continental Shelf Lands Act (
(i) 218 Lease Sale- The Secretary shall offer the Western Gulf of Mexico Program Area for oil and gas leasing pursuant to the Outer Continental Shelf Lands Act (
(j) 219 Lease Sale- The Secretary shall offer the Cook Inlet Program Area for oil and gas leasing pursuant to the Outer Continental Shelf Lands Act (
(k) 220 Lease Sale- The Secretary shall offer the Mid-Atlantic Program Area for oil and gas leasing pursuant to the Outer Continental Shelf Lands Act (
(l) 221 Lease Sale- The Secretary shall offer the Chukchi Sea Program Area for oil and gas leasing pursuant to the Outer Continental Shelf Lands Act (
(m) 222 Lease Sale- The Secretary shall offer the Central Gulf of Mexico Program Area for oil and gas leasing pursuant to the Outer Continental Shelf Lands Act (
SEC. 313. LEASING PROGRAM CONSIDERED APPROVED.
(a) In General- The Draft Proposed Outer Continental Shelf Oil and Gas Leasing Program 2010-2015 issued by the Secretary of the Interior (referred to in this section as the ‘Secretary’) under section 18 of the Outer Continental Shelf Lands Act (
(b) Final Environmental Impact Statement- The Secretary is considered to have issued a final environmental impact statement for the program described in subsection (a) in accordance with all of the requirements of sections 18, 19, and 20 of the Outer Continental Shelf Lands Act (
SEC. 314. OUTER CONTINENTAL SHELF LEASE SALES.
(a) Requirement To Conduct Lease Sales-CommentsClose CommentsPermalink
(1) IN GENERAL- Except as provided in paragraph (2), not later than one year after the date of enactment of this Act and annually thereafter, the Secretary of the Interior (referred to in this section as the ‘Secretary’) shall conduct at a minimum one lease sale in an Atlantic Planning Area, one lease sale in the Pacific Planning Area, one lease sale in the Alaska Planning Area, and three lease sales in a Gulf of Mexico Planning Area for which the Secretary determines that there is a commercial interest in purchasing Federal oil and gas leases for production on the outer Continental Shelf.CommentsClose CommentsPermalink
(2) SUBSEQUENT DETERMINATIONS AND SALES- If the Secretary determines that there is not a commercial interest in purchasing Federal oil and gas leases for production on the outer Continental Shelf in a planning area under this subsection, not later than 2 years after the date of enactment of the determination and every 2 years thereafter, the Secretary shall--CommentsClose CommentsPermalink
(A) determine whether there is a commercial interest in purchasing Federal oil and gas leases for production on the outer Continental Shelf in the planning area; andCommentsClose CommentsPermalink
(B) if the Secretary determines that there is a commercial interest described in subparagraph (A), conduct a lease sale in the planning area.CommentsClose CommentsPermalink
(b) Leasing Plan- Any areas made available for leasing under subsection (a) shall be offered for lease under this section notwithstanding the omission of any of these respective areas from the applicable 5-year plan developed by the Secretary pursuant to section 18 of the Outer Continental Shelf Lands Act (
SEC. 315. RESTRICTIONS ON LEASING OF THE OUTER CONTINENTAL SHELF.
(a) State Opt-Out- No lease authorizing a permanent surface energy project for the exploration, development, or production of oil or gas may be issued for any area of the Outer Continental Shelf located within 10 miles of the coastline of a State if the State has notified the Secretary of the Interior that the State does not want to participate in such leasing.CommentsClose CommentsPermalink
(b) Existing Leases Not Affected- This section shall not affect any lease issued before the date of enactment of this Act.CommentsClose CommentsPermalink
SEC. 316. SHARING OF OCS RECEIPTS WITH STATES AND LOCAL GOVERNMENTS.
Section 9 of the Outer Continental Shelf Lands Act (
(1) By designating the existing text as subsection (a).CommentsClose CommentsPermalink
(2) In subsection (a) (as so designated) by inserting ‘, if not paid as otherwise provided in this title’ after ‘receipts’.CommentsClose CommentsPermalink
(3) By adding the following:CommentsClose CommentsPermalink
‘(b) Treatment of OCS Receipts-CommentsClose CommentsPermalink
‘(1) DEPOSIT- The Secretary shall deposit into a separate account in the Treasury the portion of OCS Receipts for each fiscal year that will be shared under paragraph (2).CommentsClose CommentsPermalink
‘(2) IMMEDIATE RECEIPTS SHARING- Beginning October 1, 2012, the Secretary shall share 50 percent of OCS Receipts derived from all leases, except that the Secretary shall only share 25 percent of such OCS Receipts derived from all such leases within a State’s Adjacent Zone if leasing is not allowed within at least 25 percent of that State’s Adjacent Zone located completely within 75 miles of any coastline.CommentsClose CommentsPermalink
‘(3) ALLOCATIONS- The Secretary shall allocate the OCS Receipts deposited into the separate account established by paragraph (1) that are shared under paragraph (2) as follows:CommentsClose CommentsPermalink
‘(A) BONUS BIDS- Deposits derived from bonus bids from a leased tract, including interest thereon, shall be allocated at the end of each fiscal year to the Adjacent State.CommentsClose CommentsPermalink
‘(B) ROYALTIES- Deposits derived from royalties and net profit shares from a leased tract, including interest thereon, shall be allocated at the end of each fiscal year as follows:CommentsClose CommentsPermalink
‘(i) Fifty percent to the Adjacent State.CommentsClose CommentsPermalink
‘(ii) Fifty percent to all States, including the Adjacent State, having a coastline point within 300 miles of the leased tract, divided equally, if such State allows leasing within at least 25 percent of its Adjacent Zone within 75 miles of the coastline.CommentsClose CommentsPermalink
‘(C) LIMITATION IF NOT ADMITTED TO THE UNION AS A STATE- Any entity defined as a ‘State’ under section 2(r), that has not been admitted to the Union as a State shall only be entitled to one-half of a State share under this paragraph.CommentsClose CommentsPermalink
‘(c) Transmission of Allocations-CommentsClose CommentsPermalink
‘(1) IN GENERAL- Not later than 90 days after the end of each fiscal year, the Secretary shall transmit--CommentsClose CommentsPermalink
‘(A) to each State 60 percent of such State’s allocations under subsections (b)(2), (b)(3)(A), and (b)(3)(B) (i) and (ii) for the immediate prior fiscal year; andCommentsClose CommentsPermalink
‘(B) to each coastal county-equivalent and municipal political subdivisions of such State a total of 40 percent of such State’s allocations under subsections (b)(2), (b)(3)(A), and (b)(3)(B) (i) and (ii), for the immediate prior fiscal year, together with all accrued interest thereon.CommentsClose CommentsPermalink
‘(2) ALLOCATIONS TO COASTAL COUNTY-EQUIVALENT POLITICAL SUBDIVISIONS- The Secretary shall make an initial allocation of the OCS Receipts to be shared under paragraph (1)(B) as follows:CommentsClose CommentsPermalink
‘(A) Twenty-five percent shall be allocated to coastal county-equivalent political subdivisions that are completely more than 25 miles landward of the coastline and at least a part of which lies not more than 75 miles landward from the coastline, with the allocation among such coastal county-equivalent political subdivisions based on population.CommentsClose CommentsPermalink
‘(B) Seventy-five percent shall be allocated to coastal county-equivalent political subdivisions that are completely or partially less than 25 miles landward of the coastline, with the allocation among such coastal county-equivalent political subdivisions to be further allocated as follows:CommentsClose CommentsPermalink
‘(i) Twenty-five percent shall be allocated based on the ratio of such coastal county-equivalent political subdivision’s population to the coastal population of all coastal county-equivalent political subdivisions in the State.CommentsClose CommentsPermalink
‘(ii) Twenty-five percent shall be allocated based on the ratio of such coastal county-equivalent political subdivision’s coastline miles to the coastline miles of all coastal county-equivalent political subdivisions in the State as calculated by the Secretary. In such calculations, coastal county-equivalent political subdivisions without a coastline shall be considered to have 50 percent of the average coastline miles of the coastal county-equivalent political subdivisions that do have coastlines.CommentsClose CommentsPermalink
‘(iii) Fifty percent shall be allocated equally to all coastal county-equivalent political subdivisions having a coastline point within 300 miles of the leased tract for which OCS Receipts are being shared.CommentsClose CommentsPermalink
‘(3) ALLOCATIONS TO COASTAL MUNICIPAL POLITICAL SUBDIVISIONS- The initial allocation to each coastal county-equivalent political subdivision under paragraph (2) shall be further allocated to the coastal county-equivalent political subdivision and any coastal municipal political subdivisions located partially or wholly within the boundaries of the coastal county-equivalent political subdivision as follows:CommentsClose CommentsPermalink
‘(A) One-third shall be allocated to the coastal county-equivalent political subdivision.CommentsClose CommentsPermalink
‘(B) Two-thirds shall be allocated on a per capita basis to the municipal political subdivisions and the county-equivalent political subdivision, with the allocation to the latter based upon its population not included within the boundaries of a municipal political subdivision.CommentsClose CommentsPermalink
‘(d) Investment of Deposits- Amounts deposited under this section shall be invested by the Secretary of the Treasury in securities backed by the full faith and credit of the United States having maturities suitable to the needs of the account in which they are deposited and yielding the highest reasonably available interest rates as determined by the Secretary of the Treasury.CommentsClose CommentsPermalink
‘(e) Use of Funds- A recipient of funds under this section may use the funds for one or more of the following:CommentsClose CommentsPermalink
‘(1) To reduce in-State college tuition at public institutions of higher learning and otherwise support public education, including career technical education.CommentsClose CommentsPermalink
‘(2) To make transportation infrastructure improvements.CommentsClose CommentsPermalink
‘(3) To reduce taxes.CommentsClose CommentsPermalink
‘(4) To promote, fund, and provide for--CommentsClose CommentsPermalink
‘(A) coastal or environmental restoration;CommentsClose CommentsPermalink
‘(B) fish, wildlife, and marine life habitat enhancement;CommentsClose CommentsPermalink
‘(C) waterways construction and maintenance;CommentsClose CommentsPermalink
‘(D) levee construction and maintenance and shore protection; andCommentsClose CommentsPermalink
‘(E) marine and oceanographic education and research.CommentsClose CommentsPermalink
‘(5) To promote, fund, and provide for--CommentsClose CommentsPermalink
‘(A) infrastructure associated with energy production activities conducted on the outer Continental Shelf;CommentsClose CommentsPermalink
‘(B) energy demonstration projects;CommentsClose CommentsPermalink
‘(C) supporting infrastructure for shore-based energy projects;CommentsClose CommentsPermalink
‘(D) State geologic programs, including geologic mapping and data storage programs, and State geophysical data acquisition;CommentsClose CommentsPermalink
‘(E) State seismic monitoring programs, including operation of monitoring stations;CommentsClose CommentsPermalink
‘(F) development of oil and gas resources through enhanced recovery techniques;CommentsClose CommentsPermalink
‘(G) energy efficiency and conservation programs; andCommentsClose CommentsPermalink
‘(H) front-end engineering and design for facilities that produce liquid fuels from hydrocarbons and other biological matter.CommentsClose CommentsPermalink
‘(6) To promote, fund, and provide for--CommentsClose CommentsPermalink
‘(A) historic preservation programs and projects;CommentsClose CommentsPermalink
‘(B) natural disaster planning and response; andCommentsClose CommentsPermalink
‘(C) hurricane and natural disaster insurance programs.CommentsClose CommentsPermalink
‘(7) For any other purpose as determined by State law.CommentsClose CommentsPermalink
‘(f) No Accounting Required- No recipient of funds under this section shall be required to account to the Federal Government for the expenditure of such funds, except as otherwise may be required by law. However, States may enact legislation providing for accounting for and auditing of such expenditures. Further, funds allocated under this section to States and political subdivisions may be used as matching funds for other Federal programs.CommentsClose CommentsPermalink
‘(g) Effect of Future Laws- Enactment of any future Federal statute that has the effect, as determined by the Secretary, of restricting any Federal agency from spending appropriated funds, or otherwise preventing it from fulfilling its pre-existing responsibilities as of the date of enactment of the statute, unless such responsibilities have been reassigned to another Federal agency by the statute with no prevention of performance, to issue any permit or other approval impacting on the OCS oil and gas leasing program, or any lease issued thereunder, or to implement any provision of this Act shall automatically prohibit any sharing of OCS Receipts under this section directly with the States, and their coastal political subdivisions, for the duration of the restriction. The Secretary shall make the determination of the existence of such restricting effects within 30 days of a petition by any outer Continental Shelf lessee or producing State.CommentsClose CommentsPermalink
‘(h) Definitions- In this section:CommentsClose CommentsPermalink
‘(1) COASTAL COUNTY-EQUIVALENT POLITICAL SUBDIVISION- The term ‘coastal county-equivalent political subdivision’ means a political jurisdiction immediately below the level of State government, including a county, parish, borough in Alaska, independent municipality not part of a county, parish, or borough in Alaska, or other equivalent subdivision of a coastal State, that lies within the coastal zone.CommentsClose CommentsPermalink
‘(2) COASTAL MUNICIPAL POLITICAL SUBDIVISION- The term ‘coastal municipal political subdivision’ means a municipality located within and part of a county, parish, borough in Alaska, or other equivalent subdivision of a State, all or part of which coastal municipal political subdivision lies within the coastal zone.CommentsClose CommentsPermalink
‘(3) COASTAL POPULATION- The term ‘coastal population’ means the population of all coastal county-equivalent political subdivisions, as determined by the most recent official data of the Census Bureau.CommentsClose CommentsPermalink
‘(4) COASTAL ZONE- The term ‘coastal zone’ means that portion of a coastal State, including the entire territory of any coastal county-equivalent political subdivision at least a part of which lies, within 75 miles landward from the coastline, or a greater distance as determined by State law enacted to implement this section.CommentsClose CommentsPermalink
‘(5) BONUS BIDS- The term ‘bonus bids’ means all funds received by the Secretary to issue an outer Continental Shelf minerals lease.CommentsClose CommentsPermalink
‘(6) ROYALTIES- The term ‘royalties’ means all funds received by the Secretary from production of oil or natural gas, or the sale of production taken in-kind, or from net profit shares, from an outer Continental Shelf minerals lease.CommentsClose CommentsPermalink
‘(7) PRODUCING STATE- The term ‘producing State’ means an Adjacent State having an Adjacent Zone containing leased tracts from which OCS Receipts were derived.CommentsClose CommentsPermalink
‘(8) OCS RECEIPTS- The term ‘OCS Receipts’ means bonus bids and royalties, excluding royalties from leases amended under the authority of section 8(s) of this Act.’.CommentsClose CommentsPermalink
CHAPTER 2--ARCTIC COASTAL PLAIN
SEC. 321. DEFINITIONS.
In this chapter:CommentsClose CommentsPermalink
(1) COASTAL PLAIN- The term ‘Coastal Plain’ means that area identified as the ‘1002 Coastal Plain Area’ on the map.CommentsClose CommentsPermalink
(2) FEDERAL AGREEMENT- The term ‘Federal Agreement’ means the Federal Agreement and Grant Right-of-Way for the Trans-Alaska Pipeline issued on January 23, 1974, in accordance with section 28 of the Mineral Leasing Act (
(3) FINAL STATEMENT- The term ‘Final Statement’ means the final legislative environmental impact statement on the Coastal Plain, dated April 1987, and prepared pursuant to section 1002 of the Alaska National Interest Lands Conservation Act (
(4) MAP- The term ‘map’ means the map entitled ‘Arctic National Wildlife Refuge’, dated September 2005, and prepared by the United States Geological Survey.CommentsClose CommentsPermalink
(5) SECRETARY- The term ‘Secretary’ means the Secretary of the Interior (or the designee of the Secretary), acting through the Director of the Bureau of Land Management, in consultation with the Director of the United States Fish and Wildlife Service.CommentsClose CommentsPermalink
SEC. 322. LEASING PROGRAM FOR LAND WITHIN THE COASTAL PLAIN.
(a) In General- The Secretary shall take such actions as are necessary--CommentsClose CommentsPermalink
(1) to establish and implement, in accordance with this chapter, a competitive oil and gas leasing program that will result in an environmentally sound program for the exploration, development, and production of the oil and gas resources of the Coastal Plain; andCommentsClose CommentsPermalink
(2) to administer this chapter through regulations, lease terms, conditions, restrictions, prohibitions, stipulations, and other provisions that require the application of the best commercially available technology for oil and gas exploration, development, and production to all exploration, development, and production operations under this chapter in a manner that ensures the receipt of fair market value by the public for the mineral resources to be leased.CommentsClose CommentsPermalink
(b) Repeal-CommentsClose CommentsPermalink
(1) REPEAL- Section 1003 of the Alaska National Interest Lands Conservation Act of 1980 (
(2) CONFORMING AMENDMENT- The table of contents contained in section 1 of that Act (
(3) COMPLIANCE WITH NEPA FOR OTHER ACTIONS-CommentsClose CommentsPermalink
(A) IN GENERAL- Before conducting the first lease sale under this chapter, the Secretary shall prepare an environmental impact statement in accordance with the National Environmental Policy Act of 1969 (
(B) IDENTIFICATION AND ANALYSIS- Notwithstanding any other provision of law, in carrying out this paragraph, the Secretary shall not be required--CommentsClose CommentsPermalink
(i) to identify nonleasing alternative courses of action; orCommentsClose CommentsPermalink
(ii) to analyze the environmental effects of those courses of action.CommentsClose CommentsPermalink
(C) IDENTIFICATION OF PREFERRED ACTION- Not later than 18 months after the date of enactment of this Act, the Secretary shall--CommentsClose CommentsPermalink
(i) identify only a preferred action and a single leasing alternative for the first lease sale authorized under this chapter; andCommentsClose CommentsPermalink
(ii) analyze the environmental effects and potential mitigation measures for those 2 alternatives.CommentsClose CommentsPermalink
(D) PUBLIC COMMENTS- In carrying out this paragraph, the Secretary shall consider only public comments that are filed not later than 20 days after the date of publication of a draft environmental impact statement.CommentsClose CommentsPermalink
(E) EFFECT OF COMPLIANCE- Notwithstanding any other provision of law, compliance with this paragraph shall be considered to satisfy all requirements for the analysis and consideration of the environmental effects of proposed leasing under this chapter.CommentsClose CommentsPermalink
(c) Relationship to State and Local Authority- Nothing in this chapter expands or limits any State or local regulatory authority.CommentsClose CommentsPermalink
(d) Special Areas-CommentsClose CommentsPermalink
(1) DESIGNATION-CommentsClose CommentsPermalink
(A) IN GENERAL- The Secretary, after consultation with the State of Alaska, the North Slope Borough, Alaska, and the City of Kaktovik, Alaska, may designate not more than 45,000 acres of the Coastal Plain as a special area if the Secretary determines that the special area would be of such unique character and interest as to require special management and regulatory protection.CommentsClose CommentsPermalink
(B) SADLEROCHIT SPRING AREA- The Secretary shall designate as a special area in accordance with subparagraph (A) the Sadlerochit Spring area, comprising approximately 4,000 acres as depicted on the map.CommentsClose CommentsPermalink
(2) MANAGEMENT- The Secretary shall manage each special area designated under this subsection in a manner that preserves the unique and diverse character of the area, including fish, wildlife, subsistence resources, and cultural values of the area.CommentsClose CommentsPermalink
(3) EXCLUSION FROM LEASING OR SURFACE OCCUPANCY-CommentsClose CommentsPermalink
(A) IN GENERAL- The Secretary may exclude any special area designated under this subsection from leasing.CommentsClose CommentsPermalink
(B) NO SURFACE OCCUPANCY- If the Secretary leases all or a portion of a special area for the purposes of oil and gas exploration, development, production, and related activities, there shall be no surface occupancy of the land comprising the special area.CommentsClose CommentsPermalink
(4) DIRECTIONAL DRILLING- Notwithstanding any other provision of this subsection, the Secretary may lease all or a portion of a special area under terms that permit the use of horizontal drilling technology from sites on leases located outside the special area.CommentsClose CommentsPermalink
(e) Limitation on Closed Areas- The Secretary may not close land within the Coastal Plain to oil and gas leasing or to exploration, development, or production except in accordance with this chapter.CommentsClose CommentsPermalink
(f) Regulations-CommentsClose CommentsPermalink
(1) IN GENERAL- Not later than 15 months after the date of enactment of this Act, the Secretary shall promulgate such regulations as are necessary to carry out this chapter, including rules and regulations relating to protection of the fish and wildlife, fish and wildlife habitat, subsistence resources, and environment of the Coastal Plain.CommentsClose CommentsPermalink
(2) REVISION OF REGULATIONS- The Secretary shall periodically review and, as appropriate, revise the rules and regulations issued under paragraph (1) to reflect any significant biological, environmental, scientific or engineering data that come to the attention of the Secretary.CommentsClose CommentsPermalink
SEC. 323. LEASE SALES.
(a) In General- Land may be leased pursuant to this chapter to any person qualified to obtain a lease for deposits of oil and gas under the Mineral Leasing Act (
(b) Procedures- The Secretary shall, by regulation, establish procedures for--CommentsClose CommentsPermalink
(1) receipt and consideration of sealed nominations for any area in the Coastal Plain for inclusion in, or exclusion (as provided in subsection (c)) from, a lease sale;CommentsClose CommentsPermalink
(2) the holding of lease sales after that nomination process; andCommentsClose CommentsPermalink
(3) public notice of and comment on designation of areas to be included in, or excluded from, a lease sale.CommentsClose CommentsPermalink
(c) Lease Sale Bids- Bidding for leases under this chapter shall be by sealed competitive cash bonus bids.CommentsClose CommentsPermalink
(d) Acreage Minimum in First Sale- For the first lease sale under this chapter, the Secretary shall offer for lease those tracts the Secretary considers to have the greatest potential for the discovery of hydrocarbons, taking into consideration nominations received pursuant to subsection (b)(1), but in no case less than 200,000 acres.CommentsClose CommentsPermalink
(e) Timing of Lease Sales- The Secretary shall--CommentsClose CommentsPermalink
(1) not later than 22 months after the date of enactment of this Act, conduct the first lease sale under this chapter;CommentsClose CommentsPermalink
(2) not later than 90 days after the date of the completion of the sale, evaluate the bids in the sale and issue leases resulting from the sale; andCommentsClose CommentsPermalink
(3) conduct additional sales at appropriate intervals if sufficient interest in exploration or development exists to warrant the conduct of the additional sales.CommentsClose CommentsPermalink
SEC. 324. GRANT OF LEASES BY THE SECRETARY.
(a) In General- On payment by a lessee of such bonus as may be accepted by the Secretary, the Secretary may grant to the highest responsible qualified bidder in a lease sale conducted pursuant to section 323 a lease for any land on the Coastal Plain.CommentsClose CommentsPermalink
(b) Subsequent Transfers-CommentsClose CommentsPermalink
(1) IN GENERAL- No lease issued under this chapter may be sold, exchanged, assigned, sublet, or otherwise transferred except with the approval of the Secretary.CommentsClose CommentsPermalink
(2) CONDITION FOR APPROVAL- Before granting any approval described in paragraph (1), the Secretary shall consult with and give due consideration to the opinion of the Attorney General.CommentsClose CommentsPermalink
SEC. 325. LEASE TERMS AND CONDITIONS.
An oil or gas lease issued pursuant to this chapter shall--CommentsClose CommentsPermalink
(1) provide for the payment of a royalty of not less than 12 1/2 percent of the amount or value of the production removed or sold from the lease, as determined by the Secretary in accordance with regulations applicable to other Federal oil and gas leases;CommentsClose CommentsPermalink
(2) require that each lessee of land within the Coastal Plain shall be fully responsible and liable for the reclamation of land within the Coastal Plain and any other Federal land that is adversely affected in connection with exploration, development, production, or transportation activities within the Coastal Plain conducted by the lessee or by any of the subcontractors or agents of the lessee;CommentsClose CommentsPermalink
(3) provide that the lessee may not delegate or convey, by contract or otherwise, that reclamation responsibility and liability to another person without the express written approval of the Secretary;CommentsClose CommentsPermalink
(4) provide that the standard of reclamation for land required to be reclaimed under this chapter shall be, to the maximum extent practicable--CommentsClose CommentsPermalink
(A) a condition capable of supporting the uses that the land was capable of supporting prior to any exploration, development, or production activities; orCommentsClose CommentsPermalink
(B) on application by the lessee, to a higher or better standard, as approved by the Secretary;CommentsClose CommentsPermalink
(5) contain terms and conditions relating to protection of fish and wildlife, fish and wildlife habitat, subsistence resources, and the environment as required under section 322(a)(2);CommentsClose CommentsPermalink
(6) provide that each lessee, and each agent and contractor of a lessee, use their best efforts to provide a fair share of employment and contracting for Alaska Natives and Alaska Native Corporations from throughout the State of Alaska, as determined by the level of obligation previously agreed to in the Federal Agreement; andCommentsClose CommentsPermalink
(7) contain such other provisions as the Secretary determines to be necessary to ensure compliance with this chapter and the regulations promulgated under this chapter.CommentsClose CommentsPermalink
SEC. 326. EXPEDITED JUDICIAL REVIEW.
(a) Filing of Complaints-CommentsClose CommentsPermalink
(1) DEADLINE- A complaint seeking judicial review of a provision of this chapter or an action of the Secretary under this chapter shall be filed--CommentsClose CommentsPermalink
(A) except as provided in subparagraph (B), during the 90-day period beginning on the date on which the action being challenged was carried out; orCommentsClose CommentsPermalink
(B) in the case of a complaint based solely on grounds arising after the 90-day period described in subparagraph (A), by not later than 90 days after the date on which the complainant knew or reasonably should have known about the grounds for the complaint.CommentsClose CommentsPermalink
(2) VENUE- A complaint seeking judicial review of a provision of this chapter or an action of the Secretary under this chapter shall be filed in the United States District Court for the District of Columbia.CommentsClose CommentsPermalink
(3) SCOPE-CommentsClose CommentsPermalink
(A) IN GENERAL- Judicial review of a decision of the Secretary relating to a lease sale under this chapter (including an environmental analysis of such a lease sale) shall be--CommentsClose CommentsPermalink
(i) limited to a review of whether the decision is in accordance with this chapter; andCommentsClose CommentsPermalink
(ii) based on the administrative record of the decision.CommentsClose CommentsPermalink
(B) PRESUMPTIONS- Any identification by the Secretary of a preferred course of action relating to a lease sale, and any analysis by the Secretary of environmental effects, under this chapter shall be presumed to be correct unless proven otherwise by clear and convincing evidence.CommentsClose CommentsPermalink
(b) Limitation on Other Review- Any action of the Secretary that is subject to judicial review under this section shall not be subject to judicial review in any civil or criminal proceeding for enforcement.CommentsClose CommentsPermalink
(c) Relationship to Other Provisions- Subchapter B of chapter 2 shall not affect the application of this section.CommentsClose CommentsPermalink
SEC. 327. RIGHTS-OF-WAY ACROSS THE COASTAL PLAIN.
(a) In General- The Secretary shall issue rights-of-way and easements across the Coastal Plain for the transportation of oil and gas--CommentsClose CommentsPermalink
(1) except as provided in paragraph (2), under section 28 of the Mineral Leasing Act (
(2) under title XI of the Alaska National Interest Lands Conservation Act (
(b) Regulations- The Secretary shall include in regulations under section 322(f) provisions granting rights-of-way and easements described in subsection (a).CommentsClose CommentsPermalink
SEC. 328. CONVEYANCE.
Notwithstanding section 1302(h)(2) of the Alaska National Interest Lands Conservation Act (
(1) to the extent necessary to fulfill the entitlement of the Kaktovik Inupiat Corporation under sections 12 and 14 of the Alaska Native Claims Settlement Act (
(2) convey to the Arctic Slope Regional Corporation the remaining subsurface estate to which that Corporation is entitled under the agreement between that corporation and the United States, dated August 9, 1983.CommentsClose CommentsPermalink
Subtitle B--Revocation of Energy-Restricting BLM LockupCommentsClose CommentsPermalink
Subtitle B--Revocation of Energy-Restricting BLM LockupCommentsClose CommentsPermalink
SEC. 331. REVOCATION OF SECRETARIAL ORDER NO. 3310.
Secretarial Order No. 3310, dated December 22, 2010, relating to protecting wilderness characteristics on lands managed by the Bureau of Land Management is hereby revoked.CommentsClose CommentsPermalink
CHAPTER 1--EXPEDITED SHALE LEASING OF FEDERAL LANDS
SEC. 341. OPENING OF LANDS TO OIL SHALE LEASING.
(a) Repeal of Limitation on Use of Funds- Section 433 of division F of the Consolidated Appropriations Act, 2008 (
(b) Issuance of Regulations- The Secretary of the Interior shall issue all regulations necessary to implement section 369 of the Energy Policy Act of 2005 (
(c) Leasing of Oil Shale Resource- Immediately after issuing regulations under subsection (b), the Secretary of the Interior shall--CommentsClose CommentsPermalink
(1) offer for leasing for research and development of oil shale resources under subsection (c) of section 369 of the Energy Policy Act of 2005 (
(2) offer for leasing for commercial exploration, development, and production of oil shale resources under subsection (e) of such section, public lands in States for which the Secretary finds sufficient support and interest as required by that subsection.CommentsClose CommentsPermalink
CHAPTER 2--JUDICIAL REVIEW REGARDING ENERGY PROJECTS
SEC. 351. EXCLUSIVE JURISDICTION OVER CAUSES AND CLAIMS RELATING TO COVERED ENERGY PROJECTS.
Notwithstanding any other provision of law, the United States District Court for the District of Columbia shall have exclusive jurisdiction to hear all causes and claims under this subtitle or any other provision of law that arise from any covered energy project.CommentsClose CommentsPermalink
SEC. 352. TIME FOR FILING COMPLAINT.
All causes and claims referred to in section 351 must be filed not later than the end of the 60-day period beginning on the date of the action or decision by a Federal official that constitutes the covered energy project concerned. Any cause or claim not filed within that time period shall be barred.CommentsClose CommentsPermalink
SEC. 353. DISTRICT COURT FOR THE DISTRICT OF COLUMBIA DEADLINE.
(a) In General- All proceedings that are subject to section 351--CommentsClose CommentsPermalink
(1) shall be resolved as expeditiously as possible, and in any event not more than 180 days after such cause or claim is filed; andCommentsClose CommentsPermalink
(2) shall take precedence over all other pending matters before the district court.CommentsClose CommentsPermalink
(b) Failure To Comply With Deadline- If an interlocutory or final judgment, decree, or order has not been issued by the district court by the deadline described under this section, the cause or claim shall be dismissed with prejudice and all rights relating to such cause or claim shall be terminated.CommentsClose CommentsPermalink
SEC. 354. ABILITY TO SEEK APPELLATE REVIEW.
An interlocutory or final judgment, decree, or order of the district court in a proceeding that is subject to section 351 may be reviewed by no other court except the Supreme Court.CommentsClose CommentsPermalink
SEC. 355. DEADLINE FOR APPEAL TO THE SUPREME COURT.
If a writ of certiorari has been granted by the Supreme Court pursuant to section 354, then--CommentsClose CommentsPermalink
(1) the interlocutory or final judgment, decree, or order of the district court shall be resolved as expeditiously as possible and in any event not more than 180 days after such interlocutory or final judgment, decree, order of the district court is issued; andCommentsClose CommentsPermalink
(2) all such proceedings shall take precedence over all other matters then before the Supreme Court.CommentsClose CommentsPermalink
SEC. 356. COVERED ENERGY PROJECT DEFINED.
In this chapter, the term ‘covered energy project’ means any action or decision by the President or a Federal official regarding--CommentsClose CommentsPermalink
(1) the leasing of Federal lands (including submerged lands) for the exploration, development, production, processing, or transmission of oil, natural gas, or any other source or form of energy, including actions and decisions regarding the selection or offering of Federal lands for such leasing; orCommentsClose CommentsPermalink
(2) any action under such a lease.CommentsClose CommentsPermalink
SEC. 357. LIMITATION ON APPLICATION.
This chapter shall not apply with respect to a covered energy project to the extent such application would be inconsistent with chapter 3.CommentsClose CommentsPermalink
CHAPTER 3--PERMITTING REFORM
SEC. 361. PURPOSES.
The purposes of this chapter are to--CommentsClose CommentsPermalink
(1) respond to the Nation’s increased need for domestic energy resources;CommentsClose CommentsPermalink
(2) facilitate interagency coordination and cooperation in the processing of permits required to support oil and gas use authorization on Federal lands, both onshore and on the Outer Continental Shelf, in order to achieve greater consistency, certainty, and timeliness in permit processing requirements;CommentsClose CommentsPermalink
(3) promote process streamlining and increased interagency efficiency, including elimination of interagency duplication of effort;CommentsClose CommentsPermalink
(4) improve information sharing among agencies and understanding of respective agency roles and responsibilities;CommentsClose CommentsPermalink
(5) promote coordination with State agencies with expertise and responsibilities related to Federal oil and gas permitting decisions;CommentsClose CommentsPermalink
(6) promote responsible stewardship of Federal oil and gas resources;CommentsClose CommentsPermalink
(7) maintain high standards of safety and environmental protection; andCommentsClose CommentsPermalink