Input:
SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Emergency Child Care Lending for the
Gulf Coast Act of 2006''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) The Census reported pre-Katrina that there were--
                    (A) 25,000 two-parent families in New Orleans with
                children under 18;
                    (B) 26,000 female householders with children under
                18, and no husband present; and
                    (C) more than 18,000 householders who were more
                than 65 years old and living alone.
            (2) Studies have stated that reopening child care
        facilities was crucial for helping parents get back to work and
        businesses to recover.
            (3) Studies have shown that without available and
        affordable child care economic recovery will be greatly impeded
        and lead to a reduction in worker productivity.
            (4) In New Orleans before the Hurricanes Katrina and Rita,
        the city had 1,912 day-care slots at 266 licensed centers, but
        now 80 percent of those centers and 75 percent of those slots
        are gone.
            (5) The National Association of Child Care Resource and
        Referral Agencies, reported in a study published by the
        Mississippi State University Early Childhood Institute that
        between 62 percent to 94 percent of the licensed child care
        slots in the three coastal counties hardest hit by Hurricanes
        Katrina and Rita in Mississippi were lost.
            (6) In Jackson County, Mississippi, initial assessment
        found that one-fourth of the county's licensed centers were
        damaged beyond repair, representing 11 percent of the county's
        licensed child care capacity and another 39 percent of centers
        needed repairs.
            (7) Studies have stated the most effective way to rebuild
        the child care infrastructure is to--
                    (A) help child care programs in the disaster area
                reopen as rapidly as was safe by giving priority to
                licensed early childhood facilities; and
                    (B) recruit, train, and retain child-care
                professionals.

SEC. 3. EMERGENCY CHILD CARE LENDING PILOT PROGRAM.

    (a) Loans Authorized.--Notwithstanding section 502(1) of the Small
Business Investment Act of 1958, the proceeds of any loan described in
section 502 of such Act may be used by the certified development
company to provide loans to small, nonprofit child care businesses,
provided that--
            (1) the loan will be used for a sound business purpose that
        has been approved by the Administrator of the Small Business
        Administration (hereafter in this section referred to as the
        Administrator);
            (2) each such business meets the eligibility requirements
        applicable to for-profit businesses receiving a similar loan,
        except for status as a for-profit business;
            (3) 1 or more individuals have personally guaranteed the
        loan;
            (4) the small, non-profit child care business has clear and
        singular title to the collateral for the loan;
            (5) the small, non-profit child care business has supplied
        sufficient information supporting the ability to obtain future
        cash flow from its operations to meet its obligations on the
        loan and its normal and reasonable operating expenses; and
            (6) have a track record of providing child care services in
        the presidentially declared disaster areas in the Gulf Coast
        region.
    (b) Limitation on Volume.--Not more than 3 percent of the total
number of loans guaranteed in fiscal year 2007, and 2008 under title V
of the Small Business Investment Act of 1958 may be awarded under the
program described in this section.
    (c) Small, Non-Profit Child Care Business.--For purposes of this
section, the term ``small, non-profit child care business'' means an
organization that--
            (1) is described in section 501(c)(3) of the Internal
        Revenue Code of 1986 and exempt from tax under section 501(a)
        of such Code;
            (2) is primarily engaged in providing child care for
        infants, toddlers, pre-school, or pre-kindergarten children (or
        any combination thereof), may provide care for older children
        when they are not in school, and may offer pre-kindergarten
        educational programs;
            (3) including its affiliates, has tangible net worth that
        does not exceed $7,000,000, and has average net income
        (excluding any carryover losses) for the preceding 2 completed
        fiscal years that does not exceed $2,500,000; and
            (4) is licensed as a child care provider by the District of
        Columbia, the insular area, or the State, in which it is
        located.
    (d) Termination.--No loan shall be made under this section after
December 30, 2007.
    (e) Reports.--
            (1) Small business administration.--Not later than 3 months
        after the date of the enactment of this Act, and every 3 months
        thereafter until September 30, 2008, the Administrator shall
        submit a report to the Committee on Small Business and
        Entrepreneurship of the Senate and the Committee on Small
        Business of the House of Representatives regarding the
        implementation of the loan program described in this section.
        Each such report shall include--
                    (A) the date on which the loan program is
                implemented;
                    (B) the date on which the rules are issued pursuant
                to subsection (f);
                    (C) the number and dollar amount of loans under the
                program; applied for, approved, and disbursed during
                the previous 3 months; and
                    (D) number of loans made to minority-owned firms
                and to woman-owned firms.
            (2) General accounting office.--Not later than March 31,
        2008, the Comptroller General of the United States shall submit
        a report to the Committee on Small Business and
        Entrepreneurship of the Senate and the Committee on Small
        Business of the House of Representatives regarding the
        assistance provided under the loan program established by this
        section. Such report shall include information regarding the
        first 2 years of the loan program, including--
                    (A) an evaluation of the timeliness of the
                implementation of the loan program;
                    (B) a description of the effectiveness and ease
                with which certified development companies, lenders,
                and small businesses have participated in the loan
                program;
                    (C) a description and assessment of how the loan
                program was marketed;
                    (D) by location in total, the number of small,
                nonprofit child care businesses that--
                            (i) applied for loans under the program
                        (stated separately for new and expanding child
                        care providers); and
                            (ii) received loan disbursements under the
                        program (stated separately for new and
                        expanding child care providers);
                    (E) the total amount loaned to such businesses
                under the program;
                    (F) the total number of loans made to such
                businesses under the program;
                    (G) the average loan amount and term of loans made
                under the program;
                    (H) the currency rate, delinquencies, defaults, and
                losses of the loans made under the program;
                    (I) the number and percent of children served
                through the program who receive subsidized assistance;
                and
                    (J) the number and percent of children served
                through the program who are minority or low-income.
            (3) Access to information.--
                    (A) Collection.--The Administrator shall collect
                and maintain such information as may be necessary to
                carry out paragraph (2) from certified development
                centers and child care providers, and such centers and
                providers shall comply with a request for information
                from the Administrator for that purpose.
                    (B) Provision of information to gao.--The
                Administrator shall provide information collected under
                subparagraph (A) to the Comptroller General of the
                United States for purposes of the report required by
                paragraph (2).
    (f) Rulemaking Authority.--Not later than 60 days after the date of
the enactment of this Act, the Administrator shall issue final rules to
carry out the loan program authorized by this section.

Output:
Emergency Child Care Lending for the Gulf Coast Act of 2006 - Authorizes the proceeds of a loan for plant acquisition, construction, conversion, or expansion under the Small Business Investment Act of 1958 to be used by the certified development company to provide loans to small, nonprofit child care businesses that have a track record of providing such services in the presidentially declared disaster areas in the Gulf Coast region.

Limits to 3% the amount of the total number of such loans guaranteed in FY2007-FY2008 that may be awarded for the program under this Act. Terminates such program after December 30, 2007.


Input:
SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Low-Income Home Energy Security Tax
Act''.

SEC. 2. REFUNDABLE TAX CREDIT FOR RESIDENTIAL ENERGY COST ASSISTANCE.

    (a) In General.--Subpart C of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 (relating to refundable credits)
is amended by redesignating section 36 as section 37 and by inserting
after section 35 the following new section:

``SEC. 36. CREDIT FOR RESIDENTIAL ENERGY COST ASSISTANCE.

    ``(a) General Rule.--In the case of an individual, there shall be
allowed as a credit against the tax imposed by this subtitle for the
taxable year an amount equal to the lesser of--
            ``(1) 33 percent of the amount paid or incurred for
        residential energy costs by the taxpayer for each month such
        individual is an individual during such taxable year, or
            ``(2) $300.
    ``(b) Income Limitation.--
            ``(1) In general.--The amount allowable as a credit under
        subsection (a) for any taxable year (determined without regard
        to subsection (e)) shall be reduced (but not below zero) by an
        amount which bears the same ratio to the amount so allowable
        (determined without regard to this paragraph) as--
                    ``(A) the amount (if any) by which the taxpayer's
                adjusted gross income exceeds $35,000 ($70,000 in the
                case of a joint return), bears to
                    ``(B) $10,000.
            ``(2) Determination of adjusted gross income.--For purposes
        of paragraph (1), adjusted gross income shall be determined
        without regard to sections 911, 931, and 933.
    ``(c) Definitions and Special Rules.--For purposes of this
section--
            ``(1) Residential energy costs.--The term `residential
        energy costs' means, with respect to any principal residence of
        the taxpayer located in the United States for any month, the
        sum of--
                    ``(A) the cost of any energy utility, plus
                    ``(B) the cost of the purchase of any home energy
                fuel.
            ``(2) Reduction for grants.--The amount of residential
        energy costs which may be taken into account with respect to
        any month shall be reduced by any amount received by the
        taxpayer for such month for any residential energy cost under
        the Low-Income Home Energy Assistance program under title XXVI
        of the Omnibus Budget Reconciliation Act of 1981 (42 U.S.C.
        8621 et seq.).
            ``(3) Principal residence.--The term `principal residence'
        has the same meaning as in section 121, except that--
                    ``(A) no ownership requirement shall be imposed,
                and
                    ``(B) the principal residence must be used by the
                taxpayer as the taxpayer's residence during the taxable
                year.
            ``(4) Homeowners associations.--The application of this
        section to homeowners associations (as defined in section
        528(c)(1)) or members of such associations, and tenant-
        stockholders in cooperative housing corporations (as defined in
        section 216), shall be allowed by allocation, apportionment, or
        otherwise, to the individuals paying, directly or indirectly,
        for the residential energy cost so incurred.
    ``(d) Inflation Adjustment.--
            ``(1) In general.--In the case of any taxable year
        beginning after 2005, each of the dollar amounts contained in
        subsections (a)(2) and (b)(1)(A) shall be increased by an
        amount equal to--
                    ``(A) such dollar amount, multiplied by
                    ``(B) in the case of--
                            ``(i) the dollar amount contained in
                        subsection (a)(2), the fuel price inflation
                        adjustment for the calendar year in which the
                        taxable year begins, and
                            ``(ii) the dollar amounts contained in
                        subsection (b)(1)(A), 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 2004' for
                        `calendar year 1992' in subparagraph (B)
                        thereof.
            ``(2) Fuel price inflation adjustment.--For purposes of
        paragraph (1)(B)(i)--
                    ``(A) In general.--The fuel price inflation
                adjustment for any calendar year is the percentage (if
                any) by which--
                            ``(i) the CPI fuel component for October of
                        the preceding calendar year, exceeds
                            ``(ii) the CPI fuel component for October
                        of 2004.
                    ``(B) CPI fuel component.--The term `CPI fuel
                component' means the fuel component of the Consumer
                Price Index for All Urban Consumers published by the
                Department of Labor.
            ``(3) Rounding.--
                    ``(A) Credit amount.--If the dollar amount in
                subsection (a)(2) (after being increased under
                paragraph (1)), is not a multiple of $10, such dollar
                amount shall be rounded to the nearest multiple of $10.
                    ``(B) Income threshold.--If any dollar amount in
                subsection (b)(1)(A) (after being increased under
                paragraph (1)), is not a multiple of $50, such dollar
                amount shall be rounded to the next lowest multiple of
                $50.
    ``(e) Coordination With Advance Payments of Credit.--With respect
to any taxable year, the amount which would (but for this subsection)
be allowed as a credit to the taxpayer under subsection (a) shall be
reduced (but not below zero) by the aggregate amount paid on behalf of
such taxpayer under section 7529 for months beginning in such taxable
year.
    ``(f) Regulations.--The Secretary may prescribe such regulations
and other guidance as may be necessary or appropriate to carry out this
section, section 6050U, and section 7529.
    ``(g) Applicability of Section.--This section shall apply to
residential energy costs paid or incurred after the date of the
enactment of this section, in taxable years ending after such date and
before January 1, 2008.''.
    (b) Advance Payment of Credit.--Chapter 77 of the Internal Revenue
Code of 1986 (relating to miscellaneous provisions) is amended by
adding at the end the following new section:

``SEC. 7529. ADVANCE PAYMENT OF CREDIT FOR RESIDENTIAL ENERGY COSTS.

    ``(a) General Rule.--The Secretary shall establish a program for
making payments on behalf of certified individuals to providers of
residential energy (within the meaning of section 36(c)(1)) for such
individuals.
    ``(b) Limitation on Advance Payments During Any Taxable Year.--The
Secretary may make payments under subsection (a) only to the extent
that the total amount of such payments made on behalf of any individual
during the taxable year does not exceed the amount of the credit
allowable to such individual under section 36 for the taxable year.
    ``(c) Certified Individual.--For purposes of this section, the term
`certified individual' means any individual for whom a qualified
residential energy costs credit eligibility certificate is in effect.
    ``(d) Qualified Residential Energy Costs Credit Eligibility
Certificate.--For purposes of this section, the term `qualified
residential energy costs credit eligibility certificate' means any
written statement if such statement provides such information as the
Secretary may require for purposes of this section and is certified by
the Low-Income Home Energy Assistance program official of the State in
which such individual resides.''.
    (c) Information Returns.--Subpart B of part III of subchapter A of
chapter 61 of the Internal Revenue Code of 1986 (relating to
information concerning transactions with other persons) is amended by
adding at the end the following new section:

``SEC. 6050U. RETURNS RELATING TO CREDIT FOR RESIDENTIAL ENERGY COSTS.

    ``(a) Requirement of Reporting.--Every person who is entitled to
receive payments for any month of any calendar year under section 7529
(relating to advance payment of credit for residential energy costs)
with respect to any certified individual (as defined in section
7529(c)) shall, at such time as the Secretary may prescribe, make the
return described in subsection (b) with respect to each such
individual.
    ``(b) Form and Manner of Returns.--A return is described in this
subsection if such return--
            ``(1) is in such form as the Secretary may prescribe, and
            ``(2) contains--
                    ``(A) the name, address, and TIN of each individual
                referred to in subsection (a),
                    ``(B) the number of months for which amounts were
                entitled to be received with respect to such individual
                under section 7529 (relating to advance payment of
                credit for residential energy costs),
            ``(3) the amount entitled to be received for each such
        month, and
            ``(4) such other information as the Secretary may
        prescribe.
    ``(c) Statements to Be Furnished to Individuals With Respect to
Whom Information Is Required.--Every person required to make a return
under subsection (a) shall furnish to each individual whose name is
required to be set forth in such return a written statement showing--
            ``(1) the name and address of the person required to make
        such return and the phone number of the information contact for
        such person, and
            ``(2) the information required to be shown on the return
        with respect to such individual.
The written statement required under the preceding sentence shall be
furnished on or before January 31 of the year following the calendar
year for which the return under subsection (a) is required to be
made.''.
    (d) Conforming Amendments.--
            (1) Section 1324(b)(2) of title 31, United States Code, is
        amended by striking ``or'' before ``enacted'' and by inserting
        before the period at the end ``, or from section 36 of such
        Code''.
            (2) Section 6103(l) of the Internal Revenue Code of 1986 is
        amended by adding at the end the following new paragraph:
            ``(21) Disclosure of return information for purposes of
        carrying out a program for advance payment of credit for
        residential energy costs.--The Secretary may disclose to
        providers of residential energy for any certified individual
        (as defined in section 7529(c)) return information with respect
        to such certified individual only to the extent necessary to
        carry out the program established by section 7529 (relating to
        advance payment of credit for residential energy costs).''.
    (e) Clerical Amendments.--
            (1) The table of sections for subpart C of part IV of
        subchapter A of chapter 1 of the Internal Revenue Code of 1986
        is amended by striking the item relating to section 35 and by
        adding at the end the following new items:

        ``Sec. 36. Credit for residential energy cost assistance.
        ``Sec. 37. Overpayments of tax.''.
            (2) The table of sections for chapter 77 of such Code is
        amended by adding at the end the following new item:

        ``Sec. 7529. Advance payment of credit for residential energy
                            costs.''.
            (3) The table of sections for subpart B of part III of
        subchapter A of chapter 61 of such Code is amended by adding at
        the end the following new item:

        ``Sec. 6050U. Returns relating to credit for residential energy
                            costs.''.

Output: Low-Income Home Energy Security Tax Act - Amends the Internal Revenue Code to: (1) allow certain low-income individuals a refundable tax credit for residential energy costs; (2) provide for advance payments of such credit to providers of residential energy; and (3) require providers of residential energy to file informational returns for any advance tax credit payments received.


Input:
SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Moving Housing Forward Act of
2016''.

SEC. 2. DEFINITIONS.

    (a) Incorporation of Definitions.--Except as otherwise provided in
this Act, the terms used in this Act have the meaning given those
terms, respectively, under section 1303 of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C.
4502).
    (b) Other Definitions.--For purposes of this Act:
            (1) Catastrophic credit loss.--The term ``catastrophic
        credit loss'' means all potential credit loss that exceeds both
        expected and unexpected credit loss.
            (2) Counterparty risk.--The term ``counterparty risk''
        means, with regard to an enterprise, the risk that any person
        contractually obligated to the enterprise in any transaction
        will fail to perform in accordance with the terms of the
        contractual obligation.
            (3) Credit risk.--The term ``credit risk'' means the risk
        of loss to an enterprise on a residential mortgage loan held or
        guaranteed by the enterprise or on any security guaranteed by
        the enterprise that could result from a mortgagor's failure to
        repay the loan in accordance with its terms.
            (4) Credit risk transfer.--The term ``credit risk
        transfer'' means, with regard to an enterprise, the sale or
        disposition of credit risk on loans guaranteed by an enterprise
        to another party, who assumes the credit risk in accordance
        with agreed upon terms.
            (5) Excluded refinancing.--The term ``excluded
        refinancing'' means a single family residential mortgage loan
        that was originated under the Home Affordable Refinance Program
        established by FHFA or any other mortgage loan refinanced under
        a temporary program that FHFA has determined not to include in
        a credit risk transfer transaction entered into by an
        enterprise prior to the date of enactment of this Act. Such a
        determination not to include any refinanced mortgage loan may
        be demonstrated by prior actual exclusion and no other
        determination by FHFA is required.
            (6) Expected credit loss.--The term ``expected credit
        loss'' means credit loss that is reasonably anticipated under
        baseline economic conditions.
            (7) FHFA.--The term ``FHFA'' means the Federal Housing
        Finance Agency.
            (8) Pari passu.--The term ``pari passu'' means having equal
        rights of payment and equal seniority.
            (9) Unexpected credit loss.--The term ``unexpected credit
        loss'' means credit loss that is reasonably anticipated under
        stressful, yet plausible, economic conditions, and does not
        include expected loss or catastrophic loss.

SEC. 3. MORTGAGE CREDIT RISK SHARING PILOT PROGRAM.

    (a) Sense of Congress.--It is the sense of Congress that--
            (1) at the direction of FHFA, the enterprises have entered
        into transactions to transfer credit risk they assume by
        guaranteeing the payment of principal and interest on
        securities backed by certain residential mortgage loans; and
            (2) credit risk transfer transactions should be encouraged
        that reduce taxpayer exposure to credit risk assumed by an
        enterprise and do not expose an enterprise to excessive
        counterparty risk.
    (b) Establishment.--Subject to the requirements of this section,
the Director shall require each enterprise to establish a Mortgage
Credit Risk Sharing Pilot Program (in this section referred to as the
``Pilot Program'').
    (c) Pilot Program Requirements.--Under the Pilot Program, FHFA
shall direct each enterprise to, each quarter beginning with the first
quarter following the end of the 9-month period beginning on the date
of the enactment of this Act, conduct risk-sharing transactions that
provide for an enterprise to share credit risk on a pool of single-
family residential mortgage loans that back securities on which the
enterprise guarantees the timely payment of principal and interest with
the private sector. Such transactions shall meet the following
requirements:
            (1) Targeted loans.--Credit risk shall be transferred on
        targeted loans. Targeted loans are residential mortgage loans
        that--
                    (A) are single family residential mortgage loans;
                    (B) are not the result of an excluded refinancing,
                as determined by FHFA; and
                    (C) are a representative sample of the unpaid
                principal balance loans eligible for the to-be-
                announced market.
            (2) Losses transferred through the pilot program.--
                    (A) In general.--Each enterprise shall transfer to
                the private sector--
                            (i) either all or the majority of the
                        aggregate risk shared on a pari passu basis of
                        the expected and unexpected loss on the unpaid
                        principal balance on the transactions; and
                            (ii) a target of at least 10 percent in a
                        vertical position of the risk of all of the
                        catastrophic credit loss on the unpaid
                        principal balance on the transactions.
                    (B) Authority of the director.--The Director may
                permit an enterprise to transfer less than 10 percent
                in a vertical position of the risk of catastrophic
                credit loss during a transition period, up until 15
                months after the date of the enactment of this Act, to
                compliance with the 10 percent target of the Pilot
                Program.
                    (C) Treatment of catastrophic risk.--Risk of
                catastrophic credit loss shall be transferred on a pari
                passu basis.
            (3) Scope of the pilot program.--The Director shall require
        that credit risk on at least 5 percent of new acquisitions, as
        defined by the Director, of targeted loans described in
        paragraph (1) shall be transferred through the Pilot Program.
        Each enterprise may vary the percentage of new acquisitions of
        targeted loans transferred through the Pilot Program, provided
        that the average annual percentage over each year of the Pilot
        Program is not less than 5 percent.
            (4) Measurements.--In carrying out the Pilot Program, FHFA
        shall measure the credit risk and the amount of risk
        transferred.
            (5) Additional requirements.--In carrying out the Pilot
        Program, the enterprises shall--
                    (A) collect and disclose loan-level data on each of
                the mortgage loans backing the credit risk
                transactions, including consumer credit score
                information and the loan-to-value ratio of the loan;
                and
                    (B) refine transaction structure designs to improve
                execution.
    (d) Promotion of Market for Credit Risk Transactions.--With respect
to all credit risk transfer transactions of an enterprise, including
any transaction under the Pilot Program, the Director shall do the
following:
            (1) Work to ensure a secondary market for credit risk
        transfer products that will give investors as deep and liquid a
        market.
            (2) Not later than 1 year after the date of the enactment
        of this Act, in consultation with the Securities Exchange
        Commission, the Commodity Futures Trading Commission, and any
        Federal banking agency as appropriate, issue a report to the
        Committee on Financial Services of the House of Representatives
        and the Committee on Banking, Housing, and Urban Affairs of the
        Senate that provides recommendations on how to incentivize
        additional sources of private capital to participate in credit
        risk transfer transactions, including regulatory actions taken
        and recommendations for legislative proposals to remove
        impediments to such participation. Nothing in the preceding
        sentence is intended to prevent or delay FHFA or another agency
        from developing and implementing a regulatory action to remove
        any impediment to or incentivize such participation prior to
        issuance of such report as authorized under current law.
            (3) Require the enterprises to make 60 percent of mortgages
        available to be subject to credit risk transactions in the
        first fiscal year after the date of the enactment of this Act,
        70 percent in the second fiscal year after such date of
        enactment, and 80 percent in the third fiscal year after such
        date of enactment.
    (e) Capital Standards.--
            (1) In general.--The Director may set capital or collateral
        requirements for participants in the Pilot Program.
            (2) Use of certain capital markets transactions.--In
        setting capital standards under paragraph (1), the Director
        shall allow participants to prudently reduce or eliminate any
        capital requirements for credit-risk sharing transactions
        through the use of capital markets transactions that pre-fund
        the risk, including credit-linked notes.
    (f) Economic Considerations.--If the Director of the FHFA and the
Secretary of the Treasury determine that the Pilot Program is
economically unreasonable due to housing market conditions, the
Director may lower the percentage amounts specified under subsection
(c)(2), (c)(3), or (d)(1)(C).
    (g) FHFA Reports.--
            (1) In general.--Not later than 1 year after the date of
        the enactment of this Act, and annually thereafter, the
        Director shall provide a report to the Committee on Financial
        Services of the House of Representatives and the Committee on
        Banking, Housing, and Urban Affairs of the Senate containing--
                    (A) information on credit risk transfer transaction
                pricing on quarterly basis;
                    (B) the amount of credit risk that has been
                transferred from the enterprises on a quarterly basis;
                    (C) metrics and annual goals regarding the Pilot
                Program;
                    (D) the percentage of the unpaid principal balance
                of mortgage loans covered under the Pilot Program in
                each year;
                    (E) a description of how the FHFA intends to move
                forward with mortgage insurance focused transactions
                following the recently finalized mortgage insurance
                master policy requirements and private mortgage insurer
                eligibility requirements, and how the FHFA evaluates
                the remaining counterparty risk with mortgage insurers;
                    (F) a description of new credit risk transfer pilot
                programs that FHFA intends an enterprise to undertake
                over the next three years and steps FHFA intends to
                take to solicit new ideas for new and innovative ways
                to transfer credit risk away from the enterprises and
                the taxpayers, including transfers of expected,
                unexpected, and catastrophic credit loss; and
                    (G) a description of how FHFA plans to transition
                from credit risk sharing pilot programs to a regular
                standardized program of credit risk transfers that
                establish a stable and liquid market for mortgage
                credit risk.
            (2) Solicitation of public feedback.--In preparing any
        report required under paragraph (1), the Director shall solicit
        public feedback, including feedback to--
                    (A) generate new potential forms of credit risk
                transfer; and
                    (B) identify potential barriers to entry for
                private sector parties to invest in such transactions.
            (3) Confidentiality.--In issuing any report under paragraph
        (1), the Director shall protect counterparty proprietary data,
        including in making information available about the Pilot
        Program.
    (h) Rule of Construction.--Nothing in this section shall be
construed to limit the ability of the Director to conduct customized
risk sharing transactions as authorized under current law.
    (i) Duration of the Pilot Program.--
            (1) In general.--The Pilot Program shall last a minimum of
        3 years after the first transfer of catastrophic credit loss.
        The Director may continue to direct the enterprises to transfer
        risk of credit loss, including risk of catastrophic credit
        loss, and may continue to enter into credit risk transfer
        transactions to transfer such risk after the end of 3 years
        under authority prior to the enactment of the Pilot Program.
            (2) Analysis.--After the Pilot Program is executed for 3
        years, the Director shall examine the economics of developing
        the Pilot Program into a continuous risk sharing program.

SEC. 4. REGULATORY IMPLEMENTATION OF CREDIT RISK-SHARING MARKET.

    (a) Application of Section 3 of the Investment Company Act of
1940.--For any credit risk transfer transaction approved by the
Director, including a transaction in which credit risk is transferred
on mortgage loans that do not directly back the securities being
issued, the issuer shall be deemed to be a person primarily engaged in
the business of purchasing or otherwise acquiring mortgages or other
liens on and interests in real estate for purposes of section 3(c)(5)
of the Investment Company Act of 1940 (15 U.S.C. 80a-3).
    (b) Federal Income Tax Treatment.--
            (1) Real estate mortgage investment conduits.--For purposes
        of sections 860A through 860G of the Internal Revenue Code of
        1986 (the ``Code'')--
                    (A) any financial instrument issued by an
                enterprise (or a legal entity sponsored by an
                enterprise to implement a credit risk transfer
                transaction) as part of a credit risk transfer
                transaction shall be treated as a ``qualified
                mortgage''; and
                    (B) any amount includible in gross income with
                respect to such a financial instrument shall be treated
                as interest on a ``qualified mortgage''.
            (2) Real estate investment trusts.--For purposes of Code
        sections 856 through 860--
                    (A) any financial instrument issued by an
                enterprise (or a legal entity sponsored by an
                enterprise to implement a credit risk transfer
                transaction) as part of a credit risk transfer
                transaction shall be treated as a ``real estate
                asset''; and
                    (B) any amount includible in gross income with
                respect to such a financial instrument shall be treated
                as interest on an obligation secured by a mortgage on
                real property.
            (3) Taxable mortgage pools.--A credit risk transfer
        transaction entered into by an enterprise (or a legal entity
        sponsored by an enterprise) shall not be treated as a ``taxable
        mortgage pool'' for purposes of section 7701(i) of the Code.
            (4) Regulations.--The Secretary of the Treasury shall
        prescribe such regulations or administrative guidance as may be
        necessary or appropriate to carry out the purposes of this
        subsection.
    (c) Rule of Application.--Subsections (a) and (b) shall apply in
the case of any risk transfer transaction and any financial instrument
issued by the enterprise (or a legal entity sponsored by an enterprise
to implement a credit risk transfer transaction) as part of a credit
risk transfer transaction that is outstanding on, or is issued after,
the date of the enactment of this Act.
    (d) Conforming Amendments.--
            (1) Investment company act of 1940.--Section 3(c)(5) of the
        Investment Company Act of 1940 (15 U.S.C. 80a-3(c)(5)) is
        amended by adding at the end the following: ``For any credit
        risk transfer transaction approved by the Director of the
        Federal Housing Finance Agency, including a transaction in
        which credit risk is transferred on mortgage loans that do not
        directly back the securities being issued, the issuer shall be
        deemed to be a person primarily engaged in the business of
        purchasing or otherwise acquiring mortgages or other liens on
        and interests in real estate.''.
            (2) Rule of application.--The amendments made by paragraph
        (1) shall apply in the case of any credit risk transfer
        transaction and any financial instrument issued by an
        enterprise (or a legal entity sponsored by an enterprise to
        implement a credit risk transfer transaction) as part of a
        credit risk transfer transaction that is outstanding on, or is
        issued after, the date of the enactment of this Act.

Output: Moving Housing Forward Act of 2016 This bill directs the Federal Housing Finance Agency (FHFA) to require the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) to establish a pilot program that shares with the private sector the credit risk on a pool of single-family residential mortgage loans that back securities on which Fannie Mae and Freddie Mac guarantee the timely payment of principal and interest. The bill expresses the sense of Congress that credit risk transfer transactions should be encouraged that: (1) reduce taxpayer exposure to credit risk assumed by Fannie Mae and Freddie Mac, and (2) do not expose Fannie Mae and Freddie Mac to excessive counterparty risk that persons contractually obligated to them will fail to perform their obligations. After the pilot program is executed for three years, the FHFA must examine the economics of developing it into a continuous risk sharing program.


Input:
SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Community-Based Mental Health
Infrastructure Improvements Act''.

SEC. 2. COMMUNITY-BASED MENTAL HEALTH INFRASTRUCTURE IMPROVEMENT.

    Title V of the Public Health Service Act (42 U.S.C. 280g et seq.)
is amended by adding at the end the following:

  ``PART H--COMMUNITY-BASED MENTAL HEALTH INFRASTRUCTURE IMPROVEMENTS

``SEC. 560. GRANTS FOR COMMUNITY-BASED MENTAL HEALTH INFRASTRUCTURE
              IMPROVEMENTS.

    ``(a) Grants Authorized.--The Secretary may award grants to
eligible entities to expend funds for the construction or modernization
of facilities used to provide mental health and substance abuse
services to individuals.
    ``(b) Eligible Entity.--In this section, the term `eligible entity'
means--
            ``(1) a State that is the recipient of a Community Mental
        Health Services Block Grant under subpart I of part B of title
        XIX and a Substance Abuse Prevention and Treatment Block Grant
        under subpart II of such part; or
            ``(2) an Indian tribe or a tribal organization (as such
        terms are defined in sections 4(b) and 4(c) of the Indian Self-
        Determination and Education Assistance Act).
    ``(c) Application.--An eligible entity desiring a grant under this
section shall submit to the Secretary an application at such time, in
such manner, and containing--
            ``(1) a plan for the construction or modernization of
        facilities used to provide mental health and substance abuse
        services to individuals that--
                    ``(A) designates a single State or tribal agency as
                the sole agency for the supervision and administration
                of the grant;
                    ``(B) contains satisfactory evidence that such
                agency so designated will have the authority to carry
                out the plan;
                    ``(C) provides for the designation of an advisory
                council, which shall include representatives of
                nongovernmental organizations or groups, and of the
                relevant State or tribal agencies, that aided in the
                development of the plan and that will implement and
                monitor any grant awarded to the eligible entity under
                this section;
                    ``(D) in the case of an eligible entity that is a
                State, includes a copy of the State plan under section
                1912(b) and section 1932(b);
                    ``(E)(i) includes a listing of the projects to be
                funded by the grant; and
                    ``(ii) in the case of an eligible entity that is a
                State, explains how each listed project helps the State
                in accomplishing its goals and objectives under the
                Community Mental Health Services Block Grant under
                subpart I of part B of title XIX and the Substance
                Abuse Prevention and Treatment Block Grant under
                subpart II of such part;
                    ``(F) includes assurances that the facilities will
                be used for a period of not less than 10 years for the
                provision of community-based mental health or substance
                abuse services for those who cannot pay for such
                services, subject to subsection (e); and
                    ``(G) in the case of a facility that is not a
                public facility, includes the name and executive
                director of the entity who will provide services in the
                facility; and
            ``(2) with respect to each construction or modernization
        project described in the application--
                    ``(A) a description of the site for the project;
                    ``(B) plans and specifications for the project and
                State or tribal approval for the plans and
                specifications;
                    ``(C) assurance that the title for the site is or
                will be vested with either the public entity or private
                nonprofit entity who will provide the services in the
                facility;
                    ``(D) assurance that adequate financial resources
                will be available for the construction or major
                rehabilitation of the project and for the maintenance
                and operation of the facility;
                    ``(E) estimates of the cost of the project; and
                    ``(F) the estimated length of time for completion
                of the project.
    ``(d) Subgrants by States.--
            ``(1) In general.--A State that receives a grant under this
        section may award a subgrant to a qualified community program
        (as such term is used in section 1913(b)(1)).
            ``(2) Use of funds.--Subgrants awarded pursuant to
        paragraph (1) may be used for activities such as--
                    ``(A) the construction, expansion, and
                modernization of facilities used to provide mental
                health and substance abuse services to individuals;
                    ``(B) acquiring and leasing facilities and
                equipment (including paying the costs of amortizing the
                principal of, and paying the interest on, loans for
                such facilities and equipment) to support or further
                the operation of the subgrantee;
                    ``(C) the construction and structural modification
                (including equipment acquisition) of facilities to
                permit the integrated delivery of behavioral health and
                primary care of specialty medical services to
                individuals with co-occurring mental illnesses and
                chronic medical or surgical diseases at a single
                service site; and
                    ``(D) acquiring information technology required to
                accommodate the clinical needs of primary and specialty
                care professionals.
            ``(3) Limitation.--Not to exceed 15 percent of grant funds
        may be used for activities described in paragraph (2)(D).
    ``(e) Request To Transfer Obligation.--An eligible entity that
receives a grant under this section may submit a request to the
Secretary for permission to transfer the 10-year obligation of facility
use, as described in subsection (c)(1)(F), to another facility.
    ``(f) Agreement to Federal Share.--As a condition of receipt of a
grant under this section, an eligible entity shall agree, with respect
to the costs to be incurred by the entity in carrying out the
activities for which such grant is awarded, that the entity will make
available non-Federal contributions (which may include State or local
funds, or funds from the qualified community program) in an amount
equal to not less than $1 for every $1 of Federal funds provided under
the grant.
    ``(g) Reporting.--
            ``(1) Reporting by states.--During the 10-year period
        referred to in subsection (c)(1)(F), the Secretary shall
        require that a State that receives a grant under this section
        submit, as part of the report of the State required under the
        Community Mental Health Services Block Grant under subpart I of
        part B of title XIX and the Substance Abuse Prevention and
        Treatment Block Grant under subpart II of such part, a
        description of the progress on--
                    ``(A) the projects carried out pursuant to the
                grant under this section; and
                    ``(B) the assurances that the facilities involved
                continue to be used for the purpose for which they were
                funded under such grant during such 10-year period.
            ``(2) Reporting by indian tribes and tribal
        organizations.--The Secretary shall establish reporting
        requirements for Indian tribes and tribal organizations that
        receive a grant under this section. Such reporting requirements
        shall include that such Indian tribe or tribal organization
        provide a description of the progress on--
                    ``(A) the projects carried out pursuant to the
                grant under this section; and
                    ``(B) the assurances that the facilities involved
                continue to be used for the purpose for which they were
                funded under such grant during the 10-year period
                referred to in subsection (c)(1)(F).
    ``(h) Failure To Meet Obligations.--
            ``(1) In general.--If an eligible entity that receives a
        grant under this section fails to meet any of the obligations
        of the entity required under this section, the Secretary shall
        take appropriate steps, which may include--
                    ``(A) requiring that the entity return the unused
                portion of the funds awarded under this section for the
                projects that are incomplete; and
                    ``(B) extending the length of time that the entity
                must ensure that the facility involved is used for the
                purposes for which it is intended, as described in
                subsection (c)(1)(F).
            ``(2) Hearing.--Prior to requesting the return of the funds
        under paragraph (1)(B), the Secretary shall provide the entity
        notice and opportunity for a hearing.
    ``(i) Collaboration.--The Secretary may establish intergovernmental
and interdepartmental memorandums of agreement as necessary to carry
out this section.
    ``(j) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section such sums as may be necessary
for each of fiscal years 2014 through 2018.''.

Output: Community-Based Mental Health Infrastructure Improvements Act - Amends Public Health Service Act to authorize the Secretary of Health and Human Services (HHS) to award matching grants to states or Indian tribes to expend funds for the construction or modernization of facilities used to provide community-based mental health and substance abuse services to individuals.


Input:
SECTION 1. JAIL-BASED SUBSTANCE ABUSE TREATMENT PROGRAMS.

    (a) In General.--Part S of title I of the Omnibus Crime Control and
Safe Streets Act of 1968 (42 U.S.C. 3796ff et seq.) is amended by
adding at the end the following:

``SEC. 1906. JAIL-BASED SUBSTANCE ABUSE TREATMENT.

    ``(a) Definitions.--In this section--
            ``(1) the term `jail-based substance abuse treatment
        program' means a course of individual and group activities,
        lasting for a period of not less than 3 months, in an area of a
        correctional facility set apart from the general population of
        the correctional facility, if those activities are--
                    ``(A) directed at the substance abuse problems of
                prisoners; and
                    ``(B) intended to develop the cognitive,
                behavioral, social, vocational, and other skills of
                prisoners in order to address the substance abuse and
                related problems of prisoners; and
            ``(2) the term `local correctional facility' means any
        correctional facility operated by a unit of local government.
    ``(b) Authorization.--
            ``(1) In general.--Not less than 10 percent of the total
        amount made available to a State under section 1904(a) for any
        fiscal year may be used by the State to make grants to local
        correctional facilities in the State for the purpose of
        assisting jail-based substance abuse treatment programs
        established by those local correctional facilities.
            ``(2) Federal share.--The Federal share of a grant made by
        a State under this section to a local correctional facility may
        not exceed 75 percent of the total cost of the jail-based
        substance abuse treatment program described in the application
        submitted under subsection (c) for the fiscal year for which
        the program receives assistance under this section.
    ``(c) Applications.--
            ``(1) In general.--To be eligible to receive a grant from a
        State under this section for a jail-based substance abuse
        treatment program, the chief executive of a local correctional
        facility shall submit to the State, in such form and containing
        such information as the State may reasonably require, an
        application that meets the requirements of paragraph (2).
            ``(2) Application requirements.--Each application submitted
        under paragraph (1) shall include--
                    ``(A) with respect to the jail-based substance
                abuse treatment program for which assistance is sought,
                a description of the program and a written
                certification that--
                            ``(i) the program has been in effect for
                        not less than 2 consecutive years before the
                        date on which the application is submitted; and
                            ``(ii) the local correctional facility
                        will--
                                    ``(I) coordinate the design and
                                implementation of the program between
                                local correctional facility
                                representatives and the appropriate
                                State and local alcohol and substance
                                abuse agencies;
                                    ``(II) implement (or continue to
                                require) proven reliable forms of
                                substance abuse testing (other than
                                self-reporting) of individuals
                                participating in the program, including
                                the testing of individuals released
                                from the jail-based substance abuse
                                treatment program who remain in the
                                custody of the local correctional
                                facility; and
                                    ``(III) carry out the program in
                                accordance with guidelines, which shall
                                be established by the State, in order
                                to guarantee each participant in the
                                program access to consistent, continual
                                care if transferred to a different
                                local correctional facility within the
                                State;
                    ``(B) written assurances that Federal funds
                received by the local correctional facility from the
                State under this section will be used to supplement,
                and not to supplant, non-Federal funds that would
                otherwise be available for jail-based substance abuse
                treatment programs assisted with amounts made available
                to the local correctional facility under this section;
                and
                    ``(C) a description of the manner in which amounts
                received by the local correctional facility from the
                State under this section will be coordinated with
                Federal assistance for substance abuse treatment and
                aftercare services provided to the local correctional
                facility by the Substance Abuse and Mental Health
                Services Administration of the Department of Health and
                Human Services.
    ``(d) Review of Applications.--
            ``(1) In general.--Upon receipt of an application under
        subsection (c), the State shall--
                    ``(A) review the application to ensure that the
                application, and the jail-based residential substance
                abuse treatment program for which a grant under this
section is sought, meet the requirements of this section; and
                    ``(B) if so, make an affirmative finding in writing
                that the jail-based substance abuse treatment program
                for which assistance is sought meets the requirements
                of this section.
            ``(2) Approval.--Based on the review conducted under
        paragraph (1), not later than 90 days after the date on which
        an application is submitted under subsection (c), the State
        shall--
                    ``(A) approve the application, disapprove the
                application, or request a continued evaluation of the
                application for an additional period of 90 days; and
                    ``(B) notify the applicant of the action taken
                under subparagraph (A) and, with respect to any denial
                of an application under subparagraph (A), afford the
                applicant an opportunity for reconsideration.
            ``(3) Eligibility for preference with aftercare
        component.--
                    ``(A) In general.--In making grants under this
                section, a State shall give preference to applications
                from local correctional facilities that ensure that
                each participant in the jail-based substance abuse
                treatment program for which a grant under this section
                is sought, is required to participate in an aftercare
                services program that meets the requirements of
                subparagraph (B), for a period of not less than 1 year
                following the earlier of--
                            ``(i) the date on which the participant
                        completes the jail-based substance abuse
                        treatment program; or
                            ``(ii) the date on which the participant is
                        released from the correctional facility at the
                        end of the participant's sentence or is
                        released on parole.
                    ``(B) Aftercare services program requirements.--For
                purposes of subparagraph (A), an aftercare services
                program meets the requirements of this paragraph if the
                program--
                            ``(i) in selecting individuals for
                        participation in the program, gives priority to
                        individuals who have completed a jail-based
                        substance abuse treatment program;
                            ``(ii) requires each participant in the
                        program to submit to periodic substance abuse
                        testing; and
                            ``(iii) involves the coordination between
                        the jail-based substance abuse treatment
                        program and other human service and
                        rehabilitation programs that may assist in the
                        rehabilitation of program participants, such
                        as--
                                    ``(I) educational and job training
                                programs;
                                    ``(II) parole supervision programs;
                                    ``(III) half-way house programs;
                                and
                                    ``(IV) participation in self-help
                                and peer group programs; and
                            ``(iv) assists in placing jail-based
                        substance abuse treatment program participants
                        with appropriate community substance abuse
                        treatment facilities upon release from the
                        correctional facility at the end of a sentence
                        or on parole.
    ``(e) Coordination and Consultation.--
            ``(1) Coordination.--Each State that makes 1 or more grants
        under this section in any fiscal year shall, to the maximum
        extent practicable, implement a statewide communications
        network with the capacity to track the participants in jail-
        based substance abuse treatment programs established by local
        correctional facilities in the State as those participants move
        between local correctional facilities within the State.
            ``(2) Consultation.--Each State described in paragraph (1)
        shall consult with the Attorney General and the Secretary of
        Health and Human Services to ensure that each jail-based
        substance abuse treatment program assisted with a grant made by
        the State under this section incorporates applicable components
        of comprehensive approaches, including relapse prevention and
        aftercare services.
    ``(f) Use of Grant Amounts.--
            ``(1) In general.--Each local correctional facility that
        receives a grant under this section shall use the grant amount
        solely for the purpose of carrying out the jail-based substance
        abuse treatment program described in the application submitted
        under subsection (c).
            ``(2) Administration.--Each local correctional facility
        that receives a grant under this section shall carry out all
        activities relating to the administration of the grant amount,
        including reviewing the manner in which the amount is expended,
        processing, monitoring the progress of the program assisted,
        financial reporting, technical assistance, grant adjustments,
        accounting, auditing, and fund disbursement.
            ``(3) Restriction.--A local correctional facility may not
        use any amount of a grant under this section for land
        acquisition or a construction project.
    ``(g) Reporting Requirement; Performance Review.--
            ``(1) Reporting requirement.--Not later than March 1 of
        each year, each local correctional facility that receives a
        grant under this section shall submit to the Attorney General,
        through the State, a description and evaluation of the jail-
        based substance abuse treatment program carried out by the
        local correctional facility with the grant amount, in such form
        and containing such information as the Attorney General may
        reasonably require.
            ``(2) Performance review.--The Attorney General shall
        conduct an annual review of each jail-based substance abuse
        treatment program assisted under this section, in order to
        verify the compliance of local correctional facilities with the
        requirements of this section.
    ``(h) No Effect on State Allocation.--Nothing in this section shall
be construed to affect the allocation of amounts to States under
section 1904(a).''.
    (b) Technical Amendment.--The table of contents for title I of the
Omnibus Crime Control and Safe Streets Act of 1968 (42 U.S.C. 3711 et
seq.) is amended, in the matter relating to part S, by adding at the
end the following:

``1906. Jail-based substance abuse treatment.''.

Output:
Amends the Omnibus Crime Control and Safe Streets Act of 1968 to authorize not less than ten percent of the total amount made available to a State for residential substance abuse treatment for State prisoners to be used for grants to local correctional facilities in the State to assist jail-based substance abuse treatment programs.  Limits the Federal share to 75 percent of the total program cost.
Sets forth provisions regarding application requirements, review, and approval.  Grants preference to applications that provide for certain aftercare services and periodic substance abuse testing. Requires States making grants to implement a statewide communications network with the capacity to track participants.  Sets forth reporting and performance review requirements.


Input:
SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Emerging Business Encouragement Act
of 2014''.

SEC. 2. EMERGING BUSINESS ENTERPRISES.

    (a) Designation.--Section 3 of the Small Business Act (15 U.S.C.
632) is amended by adding at the end the following:
    ``(dd) Emerging Business Enterprises.--
            ``(1) In general.--Not later than the date that is 1 year
        after the date of enactment of this paragraph, for each
        industry category for which the Administrator established a
        size standard under this subsection, the Administrator shall by
        rule establish procedures for designating a small business
        concern in that industry category as an emerging business
        enterprise. Such procedures shall include the criteria under
        paragraph (2), and a process for appealing decisions of the
        Administrator on designations. Such a designation shall expire
        on the date that the small business concern is no longer in
        compliance with such criteria, except that--
                    ``(A) in the case of an emerging business
                enterprise that receives a designation as such but
                which existed as a business entity prior to such
                designation, the designation shall not expire by reason
                of the emerging business enterprise being more than 5
                years old; instead, the designation shall expire on the
                date that is 5 years after the date of the designation;
                and
                    ``(B) if the emerging business enterprise exceeds
                the size limitation described in the criterion under
                paragraph (2)(A) following designation as an emerging
                business enterprise, the designation shall expire only
                if the size is 50 percent or more of the maximum size
                of a small business concern within that industry
                category.
        The rulemaking under this paragraph shall include a procedure
        for self certification as an emerging business enterprise, for
        annual submission of documentation establishing eligibility for
        designation as an emerging business enterprise, and for
        periodic audits of emerging business enterprises based on such
        documentation.
            ``(2) Criteria for designation.--The Administrator shall
        establish criteria for designation of an emerging business
        enterprise, which shall include the following:
                    ``(A) Number of employees.--That the small business
                concern employs, in the Administrator's determination a
                number of employees that is less than the larger of--
                            ``(i) not more than 10 percent of the
                        number of employees that a small business
                        concern within that industry category may
                        employ, if that small business concern is so
                        classified by reason of a size standard under
                        section 3(a) pertaining to the number of
                        employees of the concern; or
                            ``(ii) 25 employees.
                    ``(B) Age of business.--That the small business
                concern is, in the Administrator's determination, not
                more than 5 years old.
                    ``(C) Salary requirements.--That the small business
                concern does not, in the Administrator's determination,
                pay to an individual who owns any part of the concern
                or who is in a management position a salary greater
                than 200 percent of the mean annual salary for Managers
                of Companies and Enterprises or the equivalent from the
                most recent Employment and Wage Estimates developed by
                the Secretary of Labor.
            ``(3) Public notification.--The Administrator shall take
        appropriate action to publicize the establishment of the
        procedures for designations under this paragraph, including by
        conducting outreach to eligible small business concerns.
            ``(4) Contractor training.--The Administrator shall provide
        for training regarding Federal procurement on an Internet Web
        site of the Administrator, which shall be available to the
        public at no charge.''.
    (b) Contracting Preference.--Section 15(g)(2) of the Small Business
Act (15 U.S.C. (g)(2)) is amended by adding at the end the following:
                    ``(G) Emerging business enterprises.--
                            ``(i) In general.--The head of each Federal
                        agency shall, after consultation with the
                        Administrator, establish goals for
                        participation by emerging business enterprises
                        designated under section 3(a)(6) in not less
                        than 5 percent of all contracts, including
                        prime contracts and subcontracts, for each
                        fiscal year. The head of the agency may give
                        preference in making contract awards to such
                        emerging business enterprises and shall make
                        consistent efforts to annually expand
                        participation by emerging business enterprises
                        from each industry category in procurement
                        contracts of the agency.
                            ``(ii) Reports.--
                                    ``(I) Reports from agencies.--At
                                the conclusion of each fiscal year, the
                                head of each Federal agency shall
                                report to the Administrator on the
                                extent of participation by emerging
                                business enterprises in procurement
                                contracts of such agency. Such reports
                                shall contain appropriate
                                justifications for failure to meet the
                                goals established under this
                                subparagraph.
                                    ``(II) Reports to congress.--The
                                Administrator shall annually compile
                                and analyze the reports submitted by
                                the individual agencies pursuant to
                                subclause (I) and shall submit to the
                                President and the Committee on Small
                                Business and Entrepreneurship of the
                                Senate and the Committee on Small
                                Business of the House of
                                Representatives the compilation and
                                analysis, which shall include the
                                following:
                                            ``(aa) The goals in effect
                                        for each agency and the
                                        agency's performance in
                                        attaining such goals.
                                            ``(bb) An analysis of any
                                        failure to achieve individual
                                        agency goals and the actions
                                        planned by such agency (and
                                        approved by the Administrator)
                                        to achieve the goals in the
                                        succeeding fiscal year.
                                            ``(cc) The total number and
                                        dollar value of prime contracts
                                        and subcontracts awarded to
                                        emerging business enterprises.
                                    ``(III) Annual presidential report
                                on the state of small business.--The
                                President shall include the information
                                required by subclause (II) in each
                                annual report to the Congress on the
                                state of small business prepared
                                pursuant to section 303(a) of the Small
                                Business Economic Policy Act of 1980
                                (15 U.S.C. 631b(a)).''.
    (c) Amendments to SBA Express.--Section 7(a)(31) of the Small
Business Act (15 U.S.C. 636(a)(31)) is amended by adding at the end the
following:
                    ``(G) Emerging business enterprises.--
                            ``(i) In general.--The Administrator may
                        make a loan under the Express Loan Program to
                        an emerging business enterprise designated
                        under section 3(dd), except that such loans
                        shall be made in accordance with the terms of
                        this subparagraph.
                            ``(ii) Guaranty rate.--The guaranty rate of
                        such a loan shall be in accordance with the
                        following:
                                    ``(I) Except as otherwise provided
                                in this clause, 65 percent.
                                    ``(II) Except as provided in
                                subclause (III), if, in a report
                                submitted under clause (iii), the total
                                number of loans made and the total
                                amount loaned by a lender is greater by
                                10 percent than the prior fiscal year,
                                75 percent.
                                    ``(III) If, in a report submitted
                                under clause (iii), the total rate of
                                default on loans issued under
                                subclauses (I) and (II) is greater by
                                10 percent than the prior year, 50
                                percent in the succeeding fiscal year.
                            ``(iii) Reports.--On the date that is 1
                        year after the end of the first fiscal year for
                        which a loan is first guaranteed under this
                        subparagraph, and annually thereafter, each
                        lender making a loan guaranteed under this
                        section shall report to the Administrator the
                        total number of loans made during the preceding
                        fiscal year, the total amount loaned, and the
                        default rate for all guaranteed loans.
                            ``(iv) Verification.--A lender making a
                        loan guaranteed under this section shall verify
                        the status of a business concern as an emerging
                        business enterprise before issuing a loan.
                            ``(v) Sanction.--If a business concern has
                        received a loan under this subparagraph and
                        that business concern has fraudulently
                        misrepresented its status as an emerging
                        business enterprise, that business concern
                        shall repay the amount of the loan to the
                        lender (from which amount the lender shall
                        repay the amount of any guarantee paid on the
                        loan), and shall in addition pay a fine in an
                        amount determined by the Administrator.''.

SEC. 3. RULEMAKINGS.

    (a) Self-Certification.--Not later than 180 days after the date of
enactment of this Act, the Administrator shall by rule establish a
process for initial self-certification of emerging business enterprises
for purposes of participation in Federal contracts, and eligibility for
Express Loans under section 7(a)(31)(G) of the Small Business Act.

Output: Emerging Business Encouragement Act of 2014 - Amends the Small Business Act to direct the Administrator of the Small Business Administration (SBA), for each industry category for which the Administrator established a size standard, to establish procedures, by rule, for designating a small business in that industry category as an emerging business enterprise (EBE). Requires the procedures to include specified criteria and a process for appealing the Administrator's decisions on designations. Requires the designation to expire when the small business is no longer in compliance with the criteria, except that:  in the case of an EBE which existed as a business entity before its EBE designation, the designation shall not expire until five years after it was made; and if the EBE exceeds the required size limitation its designation shall expire only if the size is 50% or more of the maximum size of a small business within that industry category.  Directs the Administrator to establish criteria for designation of an EBE, including:  a maximum number of employees determined according to a certain formula, an age of not more than five years, and a specified salary limitation for any individual who owns any part of the small business or who is in a management position.  Requires the head of each federal agency to establish goals for participation by the designated EBEs in at least 5% of all contracts, including prime contracts and subcontracts, for each fiscal year. Authorizes the Administrator to make a loan to a designated EBE under the SBA Express Loan Program, but only in accordance with specified terms. Requires the Administrator, by rule, to establish a process for initial self-certification of EBEs for purposes of participation in federal contracts and eligibility for the Express Loans.


Input:
SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Payroll Fraud Prevention Act of
2017''.

SEC. 2. CLASSIFICATION OF EMPLOYEES AND NON-EMPLOYEES.

    (a) Definitions.--Section 3 of the Fair Labor Standards Act of 1938
(29 U.S.C. 203) is amended by adding at the end the following:
    ``(z) `Non-employee' means an individual who--
            ``(1) has been engaged, in the course of the trade or
        business of the person, for the performance of labor or
        services; and
            ``(2) is not an employee of the person.
    ``(aa) `Covered individual' when used with respect to an employer
or other person means--
            ``(1) an employee of the employer; or
            ``(2) a non-employee of the person (including a person who
        is an employer)--
                    ``(A) whom the person has engaged, in the course of
                the trade or business of the person, for the
                performance of labor or services; and
                    ``(B)(i) with respect to whom the person is
                required to file an information return under section
                6041A(a) of the Internal Revenue Code of 1986; or
                    ``(ii) who is providing labor or services to the
                person through an entity that is a trust, estate,
                partnership, association, company, or corporation (as
                such terms are used in section 7701(a)(1) of the
                Internal Revenue Code of 1986) if--
                            ``(I) such individual has an ownership
                        interest in the entity;
                            ``(II) creation or maintenance of such
                        entity is a condition for the provision of such
                        labor or services to the person; and
                            ``(III) the person would be required to
                        file an information return for the entity under
                        section 6041A(a) of the Internal Revenue Code
                        of 1986 if the entity were an individual.''.
    (b) Classification as Employees.--Section 11(c) of the Fair Labor
Standards Act of 1938 (29 U.S.C. 211(c)) is amended--
            (1) by striking ``(c) Every employer subject to any
        provision of this Act or of any order issued under this Act''
        and inserting the following:
    ``(c) Recordkeeping; Classification; Notice.--
            ``(1) Recordkeeping.--Every person subject to any provision
        of this Act or of any order issued under this Act''; and
            (2) by adding at the end the following:
            ``(2) Classification.--Every person (including every
        employer and enterprise), who employs any employee engaged in
        commerce or in the production of goods for commerce or engages
        any non-employee engaged in commerce or in the production of
        goods for commerce, shall accurately classify each covered
        individual as an employee or a non-employee (as the case may
        be).
            ``(3) Notice.--
                    ``(A) In general.--Every person subject to any
                provision of this Act or of any order issued under this
                Act shall provide the notice described in subparagraph
                (C) to each employee of the person and each individual
                classified by the person as a non-employee under
                paragraph (2) and maintain a copy of such notice as a
                required record under paragraph (1).
                    ``(B) Timing of notice.--
                            ``(i) In general.--The notice described in
                        subparagraph (A) shall be provided, at a
                        minimum, to each covered individual not later
                        than 6 months after the date of enactment of
                        the Payroll Fraud Prevention Act of 2017, and
                        thereafter--
                                    ``(I) for each new employee, upon
                                employment; and
                                    ``(II) for each new non-employee,
                                upon commencement of the labor or
                                services provided by the non-employee.
                            ``(ii) Change in status.--Each person
                        required to provide a notice under subparagraph
                        (A) to a covered individual shall also provide
                        such notice to such individual upon changing
                        the status of such individual as an employee or
                        a non-employee.
                    ``(C) Contents of notice.--The notice required
                under this paragraph shall be in writing and shall--
                            ``(i) inform the covered individual of the
                        classification of such individual, by the
                        person submitting the notice, as an employee or
                        a non-employee;
                            ``(ii) include a statement directing such
                        individual to the Department of Labor website
                        established under section 3 of the Payroll
                        Fraud Prevention Act of 2017, for the purpose
                        of providing further information about the
                        legal rights of an employee;
                            ``(iii) include the address and telephone
                        number for the applicable local office of the
                        Department of Labor; and
                            ``(iv) include for each covered individual
                        classified as a non-employee by the person
                        providing the notice, the following statement:
                        `Your rights to wage, hour, and other labor
                        protections depend upon your proper
                        classification as an employee or a non-
                        employee. If you have any questions or concerns
                        about how you have been classified or suspect
                        that you may have been misclassified, contact
                        the U.S. Department of Labor.'.
                    ``(D) Presumption.--
                            ``(i) In general.--For purposes of this Act
                        and the regulations or orders issued under this
                        Act, a covered individual to whom a person is
                        required to provide a notice under subparagraph
                        (A) shall be presumed to be an employee of the
                        person if the person has not provided the
                        individual with such notice within the time
                        required under subparagraph (B).
                            ``(ii) Rebuttal.--The presumption under
                        clause (i) shall be rebutted only through the
                        presentation of clear and convincing evidence
                        that a covered individual described in such
                        subparagraph is not an employee of the
                        person.''.
    (c) Special Prohibited Acts.--Section 15(a) of the Fair Labor
Standards Act of 1938 (29 U.S.C. 215(a)) is amended--
            (1) by striking paragraph (3) and inserting the following:
            ``(3) to discharge or in any other manner discriminate
        against any covered individual (including an employee) because
        such individual has--
                    ``(A) opposed any practice, filed any petition or
                complaint, or instituted or caused to be instituted any
                proceeding--
                            ``(i) under or related to this Act
                        (including concerning the status of a covered
                        individual as an employee or a non-employee for
                        purposes of this Act); or
                            ``(ii) concerning the status of a covered
                        individual as an employee or a non-employee for
                        employment tax purposes within the meaning of
                        subtitle C of the Internal Revenue Code of
                        1986;
                    ``(B) testified or is about to testify in any
                proceeding described in subparagraph (A); or
                    ``(C) served, or is about to serve, on an industry
                committee;'';
            (2) in paragraph (5), by striking the period at the end and
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(6) to wrongly classify an employee of the person as a
        non-employee in accordance with section 11(c)(2).''.
    (d) Special Penalty for Certain Misclassification, Recordkeeping,
and Notice Violations.--Section 16 of the Fair Labor Standards Act of
1938 (29 U.S.C. 216) is amended--
            (1) in subsection (b)--
                    (A) in the sixth sentence, by striking ``any
                employee'' each place the term occurs and inserting
                ``any covered individual'';
                    (B) in the fourth sentence--
                            (i) by striking ``employees'' and inserting
                        ``covered individual''; and
                            (ii) by striking ``he gives his consent''
                        and inserting ``such covered individual
                        consents'';
                    (C) in the third sentence--
                            (i) by striking ``either of the preceding
                        sentences'' and inserting ``any of the
                        preceding sentences'';
                            (ii) by striking ``one or more employees''
                        and inserting ``one or more covered
                        individuals''; and
                            (iii) by striking ``in behalf of himself or
                        themselves and other employees'' and inserting
                        ``on behalf of such covered individual or
                        individuals and other covered individuals'';
                        and
                    (D) by inserting after the first sentence the
                following: ``Such liquidated damages are doubled
                (subject to section 11 of the Portal-to-Portal Act of
                1947 (29 U.S.C. 260)) where, in addition to violating
                the provisions of section 6 or 7, the employer has
                violated the provisions of section 15(a)(6) with
                respect to such employee or employees.''; and
            (2) in subsection (e), by striking paragraph (2) and
        inserting the following:
            ``(2) Any person who violates section 6, 7, 11(c), or
        15(a)(6) shall be subject to a civil penalty, for each employee
        or other individual who was the subject of such a violation, in
        an amount--
                    ``(A) not to exceed $1,100; or
                    ``(B) in the case of a person who has repeatedly or
                willfully committed such violation, not to exceed
                $5,000.''.

SEC. 3. EMPLOYEE RIGHTS WEBSITE.

    Not later than 180 days after the date of enactment of this Act,
the Secretary of Labor shall establish a single webpage on the
Department of Labor website that summarizes in plain language the
rights of employees and non-employees under the Fair Labor Standards
Act of 1938 (29 U.S.C. 201 et seq.), including the rights described in
the amendments made by section 2.

SEC. 4. MISCLASSIFICATION OF EMPLOYEES FOR UNEMPLOYMENT COMPENSATION
              PURPOSES.

    (a) In General.--Section 303(a) of the Social Security Act (42
U.S.C. 503(a)) is amended--
            (1) in paragraph (11)(B), by striking the period and
        inserting ``; and'';
            (2) in paragraph (12), by striking the period and inserting
        ``; and''; and
            (3) by adding after paragraph (12) the following:
            ``(13)(A) Such auditing and investigative procedures as may
        be necessary to identify employers that have not registered
        under the State law or that are paying unreported wages, where
        these actions or omissions by the employers have the effect of
        excluding employees from unemployment compensation coverage;
        and
            ``(B) The making of quarterly reports to the Secretary of
        Labor (in such form as the Secretary of Labor may require)
        describing the results of the procedures under subparagraph
        (A); and
            ``(14) The establishment of administrative penalties for
        misclassifying employees, or paying unreported wages to
        employees without proper recordkeeping, for unemployment
        compensation purposes.''.
    (b) Review of Auditing Programs.--The Secretary of Labor shall
include, in the Department of Labor's system for measuring the
performance of States in conducting unemployment compensation tax
audits, a specific measure of the effectiveness of States in
identifying the underreporting of wages and the underpayment of
unemployment compensation contributions (including the effectiveness of
States in identifying instances of such underreporting or underpayments
despite the absence of canceled checks, original time sheets, or other
similar documentation).
    (c) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the
        amendments made by subsection (a) shall take effect 12 months
        after the date of enactment of this Act.
            (2) Exception.--If the Secretary of Labor finds that
        legislation is necessary for the unemployment compensation law
        of a State to comply with the amendments made by subsection
        (a), such amendments shall not apply with respect to such law
        until the later of--
                    (A) the day after the close of the first regular
                session of the legislature of such State that begins
                after the date of enactment of this Act; or
                    (B) 12 months after the date of enactment of this
                Act.
    (d) Definition of State.--For purposes of this section, the term
``State'' has the meaning given the term in section 3306(j) of the
Internal Revenue Code of 1986.

SEC. 5. DEPARTMENT OF LABOR COORDINATION, REFERRAL, AND REGULATIONS.

    (a) Coordination and Referral.--Notwithstanding any other provision
of law, any office, administration, or division of the Department of
Labor that, while in the performance of its official duties, obtains
information regarding the misclassification by a person subject to the
provisions of the Fair Labor Standards Act of 1938 (29 U.S.C. 201 et
seq.), or any order issued under such Act of any individual regarding
whether such individual is an employee or a non-employee engaged in the
performance of labor or services for purposes of section 6 or 7 of such
Act (29 U.S.C. 206, 207), or in records required under section 11(c) of
such Act (29 U.S.C. 211(c)), shall report such information to the Wage
and Hour Division of the Department of Labor. The Wage and Hour
Division may report such information to the Internal Revenue Service as
the Wage and Hour Division considers appropriate.
    (b) Regulations.--The Secretary of Labor shall promulgate
regulations to carry out this Act and the amendments made by this Act.

SEC. 6. TARGETED AUDITS.

    The audits of employers subject to the Fair Labor Standards Act of
1938 (29 U.S.C. 201 et seq.) that are conducted by the Wage and Hour
Division of the Department of Labor shall include certain industries
with frequent incidence of misclassifying employees as non-employees,
as determined by the Secretary of Labor.

Output: Payroll Fraud Prevention Act of 2017 This bill amends the Fair Labor Standards Act of 1938 to require employers to accurately classify their employees or non-employees as employees or independent contractors and to notify such employees or non-employees of their classification. The bill makes it unlawful for any person to: (1) discharge or otherwise discriminate against an employee or non-employee who has filed a complaint with respect to their employment classification, and (2) wrongly classify an employee as a non-employee. The bill doubles the amount of liquidated damages for unpaid wages and misclassifications of employees.   The bill amends the Social Security Act to: (1) require, as a condition for the federal grant program for unemployment compensation administration, auditing and investigative procedures to identify employers who are not registered under state law or who are paying unreported wages; and (2) impose administrative penalties for misclassification of employees or payment of unreported wages without proper recordkeeping.  The bill requires the Department of Labor to report any misclassification of an employee to its Wage and Hour Division. The Wage and Hour Division is then authorized to report a misclassification to the Internal Revenue Service.