Input:
SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Fuel Supply Improvement Act of
2005''.

SEC. 2. FINDINGS.

    The Congress makes the following findings:
            (1) Hurricane Katrina, which struck the Gulf Coast and New
        Orleans, Louisiana, on August 29, 2005, substantially disrupted
        petroleum production, refining, and pipeline systems in the
        region, impacting energy prices and supply nationwide.
            (2) In the immediate aftermath of Katrina, United States
        refining capacity was reduced by more than 2,000,000 barrels
        per day. While some capacity was restored within several days,
        4 refineries with a total capacity of 879,000 barrels per day,
        roughly 5 percent of pre-Katrina capacity, remain offline.
        These refineries sustained major damage and will not reopen for
        an extended period of time.
            (3) Within a week of the hurricane's landfall, the national
        average retail price for motor vehicle gasoline rose by 46
        cents to $3.069 per gallon. Prices of other refined fuels also
        rose quickly in response to the hurricane.
            (4) Before Katrina, United States refining capacity was
        already significantly strained, with industry average
        utilization rates of 95 percent of capacity or higher.
            (5) No new refinery has been constructed in the United
        States since 1976. There are 148 operating refineries in the
        United States, down from 324 in 1981. Total capacity at
        operating refineries is 17,000,000 barrels per day, while total
        United States demand averages nearly 21,000,000 barrels per
        day. This growing gap is met by an increasing amount of imports
        of refined products from foreign sources.
            (6) A growing reliance on foreign sources of refined
        petroleum products impairs our national security interests.
            (7) It serves the national interest to increase refinery
        capacity for gasoline, heating oil, diesel fuel, and jet fuel
        wherever located within the United States, to bring more supply
        to the markets for use by the American people. Production and
        use of refined petroleum products has a significant impact on
        interstate commerce.
            (8) Refiners are subject to significant environmental and
        other regulations and face several new Clean Air Act
        requirements over the next decade. New Clean Air Act
        requirements may benefit the environment but will also require
        substantial capital investment and additional government
        permits.
            (9) More regulatory certainty for refinery owners is needed
        to stimulate investment in increased refinery capacity.
        Required procedures for regulatory approvals need to be
        streamlined to ensure that increased refinery capacity can be
        developed and operated in a safe, timely, and cost-effective
        manner.

SEC. 3. EXPEDITED FEDERAL PERMITTING.

    (a) In General.--Except as provided in subsection (b), an
application for a permit under a law described in subsection (c) to
construct or expand a petroleum refining facility in the United States
shall be approved not later than 90 days after a complete application
is received. If such permit is not approved within 90 days, the
Secretary of Energy, in consultation with the Office of Regulatory
Assistance, shall issue the permit. The Secretary of Energy shall
coordinate Federal implementation of this subsection.
    (b) Presidential Determination.--A permit shall not be approved
under subsection (a) if the President determines that the benefits to
the United States of increased refinery capacity that would be provided
by the proposed construction or expansion are outweighed by the costs
of approving the permit. A decision by the President to not make a
determination under this subsection shall not be subject to judicial
review.
    (c) Covered Laws.--This section applies only to permits under the
Clean Air Act, the Federal Water Pollution Control Act, the Safe
Drinking Water Act, the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980, the Solid Waste Disposal Act,
the Toxic Substances Control Act, the National Historic Preservation
Act, and the National Environmental Policy Act of 1969.
    (d) Applicability.--This section shall apply to any refinery repair
or reconstruction at an existing refinery undertaken in the area
affected by Hurricane Katrina and undertaken as a result of Hurricane
Katrina. This section shall not apply during a period with respect to
which the Secretary of Energy has certified to Congress in writing that
United States domestic petroleum refining capacity is sufficient to
serve the needs of the United States, accounting for the possibility of
natural disasters, terrorist attacks, fires, routine maintenance, the
effects of unique fuel blends, or other potential events.

SEC. 4. LITIGATION.

    (a) Direct Legal Representation.--At the request of the applicant,
the Secretary of Energy shall provide direct legal representation for a
person who has filed an application described in section 3(a) for any
lawsuit brought against such person or the Federal Government under
such a law with respect to the permit approval procedure or
construction or expansion of the facility to which the application
relates, if the Secretary believes the lawsuit lacks merit, is brought
solely to delay the completion of the facility, or will have the effect
of delaying the completion of the facility in a period when United
States domestic refining capacity is insufficient.
    (b) Attorneys' Fees.--Any party in an action with respect to the
approval of an application described in section 3(a), or the
construction or expansion of the facility to which the application
relates, shall be awarded attorneys' fees in proportion to the amount
of the original claim that is awarded or denied by the court.

SEC. 5. OFFICE OF REGULATORY ASSISTANCE.

    The Secretary of Energy shall establish an office whose sole
purpose is to assist applicants in developing permit applications,
planning, and otherwise pursuing the construction or expansion of a
petroleum refining facility in the United States. This assistance shall
include--
            (1) serving as an advocate for the applicant to the
        permitting agencies;
            (2) ensuring that permitting agencies are responsive to
        applicants;
            (3) ensuring that permits are issued by statutory
        deadlines; and
            (4) consulting with the Secretary of Energy to offer advice
        relating to issuing a permit for an agency that has not met
        deadlines contained in section 3(a).

SEC. 6. STANDBY SUPPORT FOR CERTAIN PETROLEUM REFINING FACILITY DELAYS.

    (a) Contract Authority.--
            (1) In general.--The Secretary of Energy may enter into
        contracts under this section with sponsors of 6 new petroleum
        refining facilities, each with an output of at least 150,000
        barrels per day, in accordance with paragraph (2). The
        Secretary shall give preference to new refineries that will
        increase the geographic diversity of existing United States
        domestic refining capacity.
            (2) Requirement for contracts.--
                    (A) Definition of loan cost.--In this paragraph,
                the term ``loan cost'' has the meaning given the term
                ``cost of a loan guarantee'' under section 502(5)(C) of
                the Federal Credit Reform Act of 1990 (2 U.S.C.
                661a(5)(C)).
                    (B) Establishment of accounts.--There is
                established in the Department of Energy 2 separate
                accounts, which shall be known as the--
                            (i) ``Refinery Standby Support Program
                        Account''; and
                            (ii) ``Refinery Standby Support Grant
                        Account''.
                    (C) Requirement.--The Secretary shall not enter
                into a contract under this section unless the Secretary
                deposits--
                            (i) in the Refinery Standby Support Program
                        Account established under subparagraph (B),
                        funds appropriated to the Secretary in advance
                        of the contract or a combination of
                        appropriated funds and loan guarantee fees that
                        are in an amount sufficient to cover the loan
                        costs described in subsection (c)(5)(A); and
                            (ii) in the Refinery Standby Support Grant
                        Account established under subparagraph (B),
                        funds appropriated to the Secretary in advance
                        of the contract, paid to the Secretary by the
                        sponsor of the petroleum refining facility, or
                        a combination of appropriations and payments
                        that are in an amount sufficient cover the
                        costs described in subsection (c)(5)(B).
    (b) Covered Delays.--
            (1) Inclusions.--Under each contract authorized by this
        section, the Secretary shall pay the costs specified in
        subsection (c), using funds appropriated or collected for the
        covered costs, if full operation of the petroleum refining
        facility is delayed by--
                    (A) the failure of the appropriate Federal agency
                to comply with schedules for review and approval of
                inspections, tests, analyses, and acceptance criteria;
                or
                    (B) litigation that delays the commencement of full
                operations of the petroleum refining facility.
            (2) Exclusions.--The Secretary may not enter into any
        contract under this section that would obligate the Secretary
        to pay any costs resulting from--
                    (A) the failure of the sponsor to take any action
                required by law or regulation;
                    (B) events within the control of the sponsor; or
                    (C) normal business risks.
    (c) Covered Costs.--
            (1) In general.--Subject to paragraphs (2), (3), and (4),
        the costs that shall be paid by the Secretary pursuant to a
        contract entered into under this section are the costs that
        result from a delay covered by the contract.
            (2) Initial 2 facilities.--In the case of the first 2
        facilities on which construction is commenced, the Secretary
        shall pay--
                    (A) 100 percent of the covered costs of delay; but
                    (B) not more than $500,000,000 per contract.
            (3) Subsequent 4 facilities.--In the case of the next 4
        facilities on which construction is commenced, the Secretary
        shall pay--
                    (A) 50 percent of the covered costs of delay that
                occur after the initial 180-day period of covered
                delay; but
                    (B) not more than $250,000,000 per contract.
            (4) Conditions on payment of certain covered costs.--
                    (A) In general.--The obligation of the Secretary to
                pay the covered costs described in subparagraph (B) of
                paragraph (5) is subject to the Secretary receiving
                from appropriations or payments from other non-Federal
                sources amounts sufficient to pay the covered costs.
                    (B) Non-federal sources.--The Secretary may receive
                and accept payments from any non-Federal source, which
                shall be made available without further appropriation
                for the payment of the covered costs.
            (5) Types of covered costs.--Subject to paragraphs (2),
        (3), and (4), the contract entered into under this section for
        a petroleum refining facility shall include as covered costs
        those costs that result from a delay during construction and in
        gaining approval for full operation, including--
                    (A) principal or interest on any debt obligation of
                a petroleum refining facility owned by a non-Federal
                entity; and
                    (B) the incremental difference between--
                            (i) the fair market price of refined
                        petroleum products purchased to meet the
                        contractual supply agreements that would have
                        been met by the petroleum refining facility but
                        for the delay; and
                            (ii) the contractual price of refined
                        petroleum products from the petroleum refining
                        facility subject to the delay.
    (d) Requirements.--Any contract between a sponsor and the Secretary
covering a petroleum refining facility under this section shall require
the sponsor to use due diligence to shorten, and to end, the delay
covered by the contract.
    (e) Reports.--For each petroleum refining facility that is covered
by a contract under this section, the Secretary shall submit to
Congress quarterly reports summarizing the status of regulatory and
other actions associated with the petroleum refining facility.
    (f) Regulations.--
            (1) In general.--Subject to paragraphs (2) and (3), the
        Secretary shall issue such regulations as are necessary to
        carry out this section.
            (2) Interim final rulemaking.--Not later than 270 days
        after the date of enactment of this Act, the Secretary shall
        issue for public comment an interim final rule regulating
        contracts authorized by this section.
            (3) Notice of final rulemaking.--Not later than 1 year
        after the date of enactment of this Act, the Secretary shall
        issue a notice of final rulemaking regulating the contracts.
    (g) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section.

SEC. 7. NEW SOURCE REVIEW UNDER THE CLEAN AIR ACT.

    Part A of title I of the Clean Air Act (42 U.S.C. 7401 and
following) is amended by adding the following new section at the end
thereof:

``SEC. 132 NEW SOURCE REVIEW.

    ``In promulgating regulations respecting new source review under
this Act, the Administrator shall include in such regulations
provisions providing that routine maintenance and repair shall not
constitute a modification of an existing source requiring compliance
with new source review requirements. Such provisions shall provide that
equipment replacement shall be considered routine maintenance and
repair if it meets each of the following requirements:
            ``(1) It does not increase actual emissions of any air
        pollutant by more than 5 percent.
            ``(2) It does not increase actual emissions of any air
        pollutant by more than 40 tons per year.
Notwithstanding any other provision of this Act, no State may include
in any State implementation plan any provisions regarding new source
review that are more stringent than those contained in the regulations
of the Administrator under this section.''.

SEC. 8. DISCOUNTED SALES OF ROYALTY-IN-KIND OIL TO QUALIFIED SMALL
              REFINERIES.

    (a) Requirement.--The Secretary of the Interior shall issue and
begin implementing regulations by not later than 60 days after the date
of the enactment of this Act, under which the Secretary shall charge a
discounted price in any sale to a qualified small refinery of crude oil
obtained by the United States as royalty-in-kind.
    (b) Amount of Discount.--The regulations shall provide that the
amount of any discount applied pursuant to this section in any sale of
crude oil to a qualified small refinery--
            (1) shall reflect the actual costs of transporting such oil
        from the point of origin to the qualified small refinery; and
            (2) shall not exceed $4.50 per barrel of oil sold.
    (c) Termination of Discount.--This section and any regulations
issued under this section shall not apply on and after any date on
which the Secretary of Energy determines that United States domestic
refining capacity is sufficient.
    (d) Qualified Small Refinery.--In this section the term ``qualified
small refinery'' means a refinery of a small business refiner (as that
term is defined in section 45H(c)(1) of the Internal Revenue Code of
1986) that demonstrates to the Secretary of the Interior that it had
unused crude oil processing capacity in 2004.

SEC. 9. CONSTITUTIONAL AUTHORITY.

    The Constitutional authority on which this Act rests is the power
of Congress to regulate Commerce among the several States as enumerated
in Article I, Section 8, Clause 3 of the United States Constitution.

Output:
Fuel Supply Improvement Act of 2005 - Prescribes guidelines to expedite federal permitting procedures for construction or expansion of a domestic petroleum refining facility.

Applies such expedited permit procedures exclusively to permits under specified environmental protection statutes.

Directs the Secretary of Energy, upon applicant request, to provide direct legal representation to a refining facility applicant to defend against a lawsuit regarding the permit approval procedure, or facility construction or expansion, if the Secretary believes the lawsuit is without merit, is brought solely to delay facility completion, or will have the effect of delaying facility completion in a period when U.S. domestic refining capability is insufficient.

Instructs the Secretary to establish an office of regulatory assistance whose sole purpose is to assist applicants with permit applications, planning, and otherwise pursuing the construction or expansion of a domestic petroleum refining facility.

Grants the Secretary contracting authority with sponsors of new large-sized petroleum refining facilities.

Establishes in the Department of Energy the Refinery Standby Support Program Account and the Refinery Standby Support Grant Account to cover loan costs and costs resulting from certain construction delays.

Amends the Clean Air Act to direct the Administrator of the Environmental Protection Agency to provide within new source review regulations that equipment replacement shall be considered routine maintenance and repair if it: (1) does not increase actual emissions of any air pollutant by more than 5%; and (2) does not increase actual emissions of any air pollutant by more than 40 tons per year.

Directs the Secretary of the Interior to charge a discounted price in any sale to a qualified small refinery of crude oil obtained by the United States as royalty-in-kind.


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SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Local Courthouse Safety Act of
2012''.

SEC. 2. SECURITY TRAINING.

    Part D of title I of the Omnibus Crime Control and Safe Streets Act
of 1968 (42 U.S.C. 3741 et seq.) is amended by adding at the end the
following:

``SEC. 403. PREVENTING VIOLENCE AGAINST LAW ENFORCEMENT AND ENSURING
              OFFICER RESILIENCE AND SURVIVABILITY.

    ``The Director may carry out a training and technical assistance
program designed to teach employees of State, local, and tribal law
enforcement agencies how to anticipate, survive, and respond to violent
encounters during the course of their duties, including duties relating
to security at State, county, and tribal courthouses. If the Director
offers a training program specifically designed to train participants
on courthouse security issues, preference for admission into such
program shall be given to employees of jurisdictions that have
magnetometers available for use at their courthouses.''.

SEC. 3. STATE JUSTICE INSTITUTE.

    The State Justice Institute Act of 1984 is amended--
            (1) in section 203(b)(1) (42 U.S.C. 10702(b)(1)), in the
        matter preceding subparagraph (A), by inserting ``, safe,''
        after ``a fair''; and
            (2) in section 206 (42 U.S.C. 10705)--
                    (A) in subsection (c)--
                            (i) in paragraph (14)--
                                    (I) by inserting ``to'' before
                                ``conduct''; and
                                    (II) by striking ``and'' at the
                                end;
                            (ii) by redesignating paragraph (15) as
                        paragraph (16); and
                            (iii) by inserting after paragraph (14) the
                        following:
            ``(15) to improve the safety and security of State and
        local courts; and''; and
                    (B) by adding at the end the following:
    ``(g) Magnetometers.--In the case of a grant awarded under this
section to be used as described in subsection (c)(15), if the State or
local court applying for the grant does not have magnetometers
available for use, not less than $300 nor more than $1,000 of the
matching fund required under subsection (d) of the State or local court
shall be used to acquire a magnetometer.''.

SEC. 4. SECURITY EQUIPMENT.

    (a) In General.--Subchapter III of chapter 5 of title 40, United
States Code, is amended by adding after section 559 the following:
``Sec. 560. Surplus security equipment for State and local courts
    ``(a) Definitions.--In this section--
            ``(1) the term `surplus security equipment' means surplus
        property that is used to detect weapons, including metal
        detectors, wands, and baggage screening devices; and
            ``(2) the term `qualifying State or local courthouse' means
        a courthouse of a State or local government that has less
        security equipment than the security needs of the courthouse
        require.
    ``(b) Disposal of Surplus Security Equipment.--
            ``(1) In general.--Notwithstanding any other provision of
        this subchapter, the Administrator of General Services shall
        ensure that a qualifying State or local courthouse has an
        opportunity to request to receive surplus security equipment
        for use at the qualifying State or local courthouse before the
        surplus security equipment is made available to any other
        individual or entity under this subchapter.
            ``(2) Disposal.--
                    ``(A) In general.--Subject to subparagraph (B),
                upon request by a qualifying State or local courthouse
                for surplus security equipment for use at the
                qualifying State or local courthouse, the surplus
                security equipment shall be made available to the
                qualifying State or local courthouse without cost,
                except for any costs of shipping, handling, and
                maintenance.
                    ``(B) Multiple requests.--If more than 1 qualifying
                State or local courthouse requests a particular piece
                of surplus security equipment, the surplus security
                equipment shall be distributed based on need, as
                determined by the Administrator of General Services,
                with priority given to a qualifying State or local
                courthouse that has no security equipment.''.
    (b) Technical and Conforming Amendment.--The table of sections for
chapter 5 of title 40, United States Code, is amended by inserting
after the item relating to section 559 the following:

``560. Surplus security equipment for State and local courts.''.

            Passed the House of Representatives September 11, 2012.

            Attest:

                                                 KAREN L. HAAS,

                                                                 Clerk.

Output:
Local Courthouse Safety Act of 2012 - (Sec. 2) Amends the Omnibus Crime Control and Safe Streets Act of 1968 to permit the Director of the Department of Justice's (DOJ) Bureau of Justice Assistance to carry out a training and technical assistance program to teach employees of state, local, and tribal law enforcement agencies how to anticipate, survive, and respond to violent encounters during the course of their duties, including duties relating to security at state, county, and tribal courthouses.

Requires the Director to give preference for any courthouse security training program to employees of jurisdictions that have magnetometers available at their courthouses.

(Sec. 3) Amends the State Justice Institute Act of 1984 to require the State Justice Institute (a private nonprofit organization established to improve judicial administration in state courts) to include courthouse safety as a factor in the national assistance program under which it provides funding to state courts and related national and nonprofit organizations. Permits state and local courts and other organizations awarded funds pursuant to Institute grants, cooperative agreements, or contracts to use such funds to improve safety and security in state and local courts.

Requires, if such a grant is awarded to state or local courts without magnetometers, that specified matching funds be used acquire a magnetometer.

(Sec. 4) Directs the Administrator of General Services (GSA) to ensure that state or local courthouses having less security equipment than such courthouses require have an opportunity to request surplus security equipment (metal detectors, wands, baggage screening devices) before such equipment is made available to any other individual or entity. Requires that priority be given to courthouses that have no security equipment.


Input:
SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Securing the Homeland Security
Supply Chain Act of 2018''.

SEC. 2. DEPARTMENT OF HOMELAND SECURITY REQUIREMENTS FOR INFORMATION
              RELATING TO SUPPLY CHAIN RISK.

    (a) In General.--Subtitle D of title VIII of the Homeland Security
Act of 2002 (6 U.S.C. 391 et seq.) is amended by adding at the end the
following new section:

``SEC. 836. REQUIREMENTS FOR INFORMATION RELATING TO SUPPLY CHAIN RISK.

    ``(a) Authority.--Subject to subsection (b), the Secretary may--
            ``(1) carry out a covered procurement action;
            ``(2) limit, notwithstanding any other provision of law, in
        whole or in part, the disclosure of information, including
        classified information, relating to the basis for carrying out
        such an action; and
            ``(3) exclude, in whole or in part, a source carried out in
        the course of such an action applicable to a covered
        procurement of the Department.
    ``(b) Determination and Notification.--Except as authorized by
subsection (c) to address an urgent national security interest, the
Secretary may exercise the authority provided in subsection (a) only
after--
            ``(1) obtaining a joint recommendation, in unclassified or
        classified form, from the Chief Acquisition Officer and the
        Chief Information Officer of Department, including a review of
        any risk assessment made available by an appropriate person or
        entity, that there is a significant supply chain risk in a
        covered procurement;
            ``(2) notifying any source named in the joint
        recommendation described in paragraph (1) advising--
                    ``(A) that a recommendation has been obtained;
                    ``(B) to the extent consistent with the national
                security and law enforcement interests, the basis for
                such recommendation;
                    ``(C) that, within 30 days after receipt of notice,
                such source may submit information and argument in
                opposition to such recommendation; and
                    ``(D) of the procedures governing the consideration
                of such submission and the possible exercise of the
                authority provided in subsection (a);
            ``(3) notifying the relevant components of the Department
        that such risk assessment has demonstrated significant supply
        chain risk to a covered procurement; and
            ``(4) making a determination in writing, in unclassified or
        classified form, that after considering any information
        submitted by a source under paragraph (2), and in consultation
        with the Chief Information Officer of the Department, that--
                    ``(A) use of authority under subsection (a)(1) is
                necessary to protect national security by reducing
                supply chain risk;
                    ``(B) less intrusive measures are not reasonably
                available to reduce such risk;
                    ``(C) a decision to limit disclosure of information
                under subsection (a)(2) is necessary to protect
                national security interest; and
                    ``(D) the use of such authorities will apply to a
                single covered procurement or a class of covered
                procurements, and otherwise specifies the scope of such
                determination;
            ``(5) providing to the Committee on Homeland Security of
        the House of Representatives and the Committee on Homeland
        Security and Governmental Affairs of the Senate a classified or
        unclassified notice of the determination made under paragraph
        (4) that includes--
                    ``(A) the joint recommendation described in
                paragraph (1);
                    ``(B) a summary of any risk assessment reviewed in
                support of such joint recommendation; and
                    ``(C) a summary of the basis for such
                determination, including a discussion of less intrusive
                measures that were considered and why such measures
                were not reasonably available to reduce supply chain
                risk;
            ``(6) notifying the Director of the Office of Management
        and Budget, and the heads of other Federal agencies as
        appropriate, in a manner and to the extent consistent with the
        requirements of national security; and
            ``(7) taking steps to maintain the confidentiality of any
        notifications under this subsection.
    ``(c) Procedures To Address Urgent National Security Interests.--In
any case in which the Secretary determines that national security
interests require the immediate exercise of the authorities under
subsection (a), the Secretary--
            ``(1) may, to the extent necessary to address any such
        national security interest, and subject to the conditions
        specified in paragraph (2)--
                    ``(A) temporarily delay the notice required by
                subsection (b)(2);
                    ``(B) make the determination required by subsection
                (b)(4), regardless of whether the notice required by
                subsection (b)(2) has been provided or whether the
                notified source at issue has submitted any information
                in response to such notice;
                    ``(C) temporarily delay the notice required by
                subsections (b)(4) and (b)(5); and
                    ``(D) exercise the authority provided in subsection
                (a) in accordance with such determination; and
            ``(2) shall take actions necessary to comply with all
        requirements of subsection (b) as soon as practicable after
        addressing the urgent national security interest that is the
        subject of paragraph (1), including--
                    ``(A) providing the notice required by subsection
                (b)(2);
                    ``(B) promptly considering any information
                submitted by the source at issue in response to such
                notice, and making any appropriate modifications to the
                determination required by subsection (b)(4) based on
                such information; and
                    ``(C) providing the notice required by subsections
                (b)(5) and (b)(6), including a description of such
                urgent national security, and any modifications to such
                determination made in accordance with subparagraph (B).
    ``(d) Annual Review of Determinations.--The Secretary shall
annually review all determinations made under subsection (b).
    ``(e) Delegation.--The Secretary may not delegate the authority
provided in subsection (a) or the responsibility identified in
subsection (d) to an official below the Deputy Secretary.
    ``(f) Limitation of Review.--Notwithstanding any other provision of
law, no action taken by the Secretary under subsection (a) may be
subject to review in a bid protest before the Government Accountability
Office or in any Federal court.
    ``(g) Consultation.--In developing procedures and guidelines for
the implementation of the authorities described in this section, the
Secretary shall review the procedures and guidelines utilized by the
Department of Defense to carry out similar authorities.
    ``(h) Definitions.--In this section:
            ``(1) Covered article.--The term `covered article' means:
                    ``(A) Information technology, including cloud
                computing services of all types.
                    ``(B) Telecommunications equipment.
                    ``(C) Telecommunications services.
                    ``(D) The processing of information on a Federal or
                non-Federal information system, subject to the
                requirements of the Controlled Unclassified Information
                program of the Department.
                    ``(E) Hardware, systems, devices, software, or
                services that include embedded or incidental
                information technology.
            ``(2) Covered procurement.--The term `covered procurement'
        means--
                    ``(A) a source selection for a covered article
                involving either a performance specification, as
                provided in subsection (a)(3)(B) of section 3306 of
                title 41, United States Code, or an evaluation factor,
                as provided in subsection (c)(1)(A) of such section,
                relating to supply chain risk, or with respect to which
                supply chain risk considerations are included in the
                Department's determination of whether a source is a
                responsible source as defined in section 113 of such
                title;
                    ``(B) the consideration of proposals for and
                issuance of a task or delivery order for a covered
                article, as provided in section 4106(d)(3) of title 41,
                United States Code, with respect to which the task or
                delivery order contract includes a contract clause
                establishing a requirement relating to supply chain
                risk;
                    ``(C) any contract action involving a contract for
                a covered article with respect to which such contract
                includes a clause establishing requirements relating to
                supply chain risk; or
                    ``(D) any procurement made via Government Purchase
                Care for a covered article when supply chain risk has
                been identified as a concern.
            ``(3) Covered procurement action.--The term `covered
        procurement action' means any of the following actions, if such
        action takes place in the course of conducting a covered
        procurement:
                    ``(A) The exclusion of a source that fails to meet
                qualification requirements established pursuant to
                section 3311 of title 41, United States Code, for the
                purpose of reducing supply chain risk in the
                acquisition or use of a covered article.
                    ``(B) The exclusion of a source that fails to
                achieve an acceptable rating with regard to an
                evaluation factor providing for the consideration of
                supply chain risk in the evaluation of proposals for
                the award of a contract or the issuance of a task or
                delivery order.
                    ``(C) The determination that a source is not a
                responsible source based on considerations of supply
                chain risk.
                    ``(D) The decision to withhold consent for a
                contractor to subcontract with a particular source or
                to direct a contractor to exclude a particular source
                from consideration for a subcontract.
            ``(4) Information system.--The term `information system'
        has the meaning given such term in section 3502 of title 44,
        United States Code.
            ``(5) Information technology.--The term `information
        technology' has the meaning given such term in section 11101 of
        title 40, United States Code.
            ``(6) Responsible source.--The term `responsible source'
        has the meaning given such term in section 113 of title 41,
        United States Code.
            ``(7) Supply chain risk.--The term `supply chain risk'
        means the risk that a malicious actor may sabotage, maliciously
        introduce an unwanted function, extract or modify data, or
        otherwise manipulate the design, integrity, manufacturing,
        production, distribution, installation, operation, or
        maintenance of a covered article so as to surveil, deny,
        disrupt, or otherwise manipulate the function, use, or
        operation of the information technology or information stored
        or transmitted on the covered articles.
            ``(8) Telecommunications equipment.--The term
        `telecommunications equipment' has the meaning given such term
        in section 153(52) of title 47, United States Code.
            ``(9) Telecommunications service.--The term
        `telecommunications service' has the meaning given such term in
        section 153(53) of title 47, United States Code.
    ``(i) Effective Date.--The requirements of this section shall take
effect on the date that is 90 days after the date of the enactment of
this Act and shall apply to--
            ``(1) contracts awarded on or after such date; and
            ``(2) task and delivery orders issued on or after such date
        pursuant to contracts awarded before, on, or after such
        date.''.
    (b) Rulemaking.--Section 553 of title 5, United States Code, and
section 1707 of title 41, United States Code, shall not apply to the
Secretary of Homeland Security when carrying out the authorities and
responsibilities under section 836 of the Homeland Security Act of
2002, as added by subsection (a).
    (c) Clerical Amendment.--The table of contents in section 1(b) of
the Homeland Security Act of 2002 is amended by inserting after the
item relating to section 835 the following new item:

``Sec. 836. Requirements for information relating to supply chain
                            risk.''.

            Passed the House of Representatives September 4, 2018.

            Attest:

                                                 KAREN L. HAAS,

                                                                 Clerk.

Output: Securing the Homeland Security Supply Chain Act of 2018 (Sec. 2) This bill amends the Homeland Security Act of 2002 to authorize the Department of Homeland Security (DHS) to restrict procurement of information technology, telecommunications equipment and services, and related products or services (covered articles), if it determines that a vendor of such products and services poses a risk to the DHS supply chain. After determining that such a risk exists, DHS may limit the disclosure of information relating to the basis for restricting a procurement and may exclude a vendor from the procurement process. The bill requires DHS to make certain security-related determinations and provide notifications before it can exercise the authority to restrict procurement of any covered article.  The bill defines "supply chain risk" as the risk that a malicious actor may sabotage, maliciously introduce an unwanted function, extract or modify data, or otherwise manipulate the design, integrity, manufacturing, production, distribution, installation, operation, or maintenance of a covered article.


Input:
SECTION 1. DEPARTMENT OF DEFENSE PAYMENT FOR CONTINUATION OF NON-
              TRICARE HEALTH BENEFITS COVERAGE FOR CERTAIN MOBILIZED
              RESERVES.

    (a) Payment of Premiums.--
            (1) Requirement to pay premiums.--Chapter 55 of title 10,
        United States Code, is amended by inserting after section 1078a
        the following new section:
``Sec. 1078b. Continuation of non-TRICARE health benefits plan coverage
              for certain Reserves called or ordered to active duty and
              their dependents
    ``(a) Payment of Premiums.--The Secretary concerned shall pay the
applicable premium to continue in force any qualified health benefits
plan coverage for an eligible reserve component member for the benefits
coverage continuation period if timely elected by the member in
accordance with regulations prescribed under subsection (h).
    ``(b) Eligible Member.--A member of a reserve component who is
called or ordered to active duty for a period of more than 30 days
under a provision of law referred to in section 101(a)(13)(B) of this
title is eligible for payment of the applicable premium for
continuation of qualified health benefits plan coverage under
subsection (a).
    ``(c) Qualified Health Benefits Plan Coverage.--For the purposes of
this section, health benefits plan coverage for a member called or
ordered to active duty is qualified health benefits plan coverage if--
            ``(1) the coverage was in force on the date on which the
        Secretary notified the member that issuance of the call or
        order was pending or, if no such notification was provided, the
        date of the call or order; and
            ``(2) on that date, the coverage applied to the member and
        dependents of the member.
    ``(d) Applicable Premium.--The applicable premium payable under
this section for continuation of health benefits plan coverage in the
case of a member is the amount of the premium payable by the member for
the coverage of the member and dependents.
    ``(e) Benefits Coverage Continuation Period.--The benefits coverage
continuation period under this section for qualified health benefits
plan coverage in the case of a member called or ordered to active duty
is the period that--
            ``(1) begins on the date of the call or order; and
            ``(2) ends on the earlier of the date on which--
                    ``(A) the member's eligibility for transitional
                health care under section 1145(a) of this title
                terminates under paragraph (3) of such section;
                    ``(B) the member or the dependents of the member
                eligible for benefits under the qualified health
                benefits plan coverage become covered by another health
                benefits plan that is not TRICARE; or
                    ``(C) the member elects to terminate the continued
                qualified health benefits plan coverage of the
                dependents of the member.
    ``(f) Extension of Period of COBRA Coverage.--Notwithstanding any
other provision of law--
            ``(1) any period of coverage under a COBRA continuation
        provision (as defined in section 9832(d)(1) of the Internal
        Revenue Code of 1986) for a member under this section shall be
        deemed to be equal to the benefits coverage continuation period
        for such member under this section; and
            ``(2) with respect to the election of any period of
        coverage under a COBRA continuation provision (as so defined),
        rules similar to the rules under section 4980B(f)(5)(C) of such
        Code shall apply.
    ``(g) Special Rule With Respect to Individual Health Insurance
Coverage.--With respect to a member of a reserve component described in
subsection (b) who was enrolled in individual health insurance coverage
(as such term is defined in section 2791(b)(5) of the Public Health
Service Act) on the date on which the member was called or ordered to
active duty, the health insurance issuer may not--
            ``(1) decline to offer such coverage to, or deny re-
        enrollment of, such individual during the benefits coverage
        continuation period described in subsection (e);
            ``(2) impose any preexisting condition exclusion (as
        defined in section 2701(b)(1)(A) of the Public Health Service
        Act) with respect to the re-enrollment of such member for such
        coverage during such period; or
            ``(3) increase the premium rate for re-enrollment of such
        member under such coverage during such period above the rate
        that was paid for the coverage prior to the date of such call
        or order.
    ``(h) Nonduplication of Benefits.--A dependent of a member who is
eligible for benefits under qualified health benefits plan coverage
paid on behalf of a member by the Secretary concerned under this
section is not eligible for benefits under TRICARE during a period of
the coverage for which so paid.
    ``(i) Revocability of Election.--A member who makes an election
under subsection (a) may revoke the election. Upon such a revocation,
the member's dependents shall become eligible for TRICARE as provided
for under this chapter.
    ``(j) Regulations.--The Secretary of Defense shall prescribe
regulations for carrying out this section. The regulations shall
include such requirements for making an election of payment of
applicable premiums as the Secretary considers appropriate.''.
            (2) Clerical amendment.--The table of sections at the
        beginning of such chapter is amended by inserting after the
        item relating to section 1078a the following new item:

``1078b. Continuation of non-TRICARE health benefits plan coverage for
                            certain Reserves called or ordered to
                            active duty and their dependents.''.
    (b) Applicability.--Section 1078b of title 10, United States Code
(as added by subsection (a)), shall apply with respect to calls or
orders of members of reserve components of the Armed Forces to active
duty as described in subsection (b) of such section, that are issued by
the Secretary of a military department on or after the date of the
enactment of this Act.

Output: Directs the Secretary of the military department concerned to pay the applicable premium to continue in force during the duty period any qualified health benefits plan coverage of a member of the reserves who is called or ordered to active duty for more than 30 days during a war or national emergency. Prohibits the private health insurance issuer of such a member from declining coverage or re-enrollment, imposing re-enrollment exclusions, or increasing premiums during such benefits coverage continuation period.


Input:
SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Bring Small Businesses Back Tax
Reform Act''.

SEC. 2. SPECIAL INDIVIDUAL RATES FOR QUALIFIED SMALL BUSINESS INCOME.

    (a) In General.--Section 1 of such Code is amended by adding at the
end the following:
    ``(j) Maximum Rate on Qualified Small Business Income.--
            ``(1) In general.--If a taxpayer has qualified business
        income for any taxable year, the tax imposed by this section
        for such taxable year shall not exceed the sum of--
                    ``(A) a tax computed at the rates and in the same
                manner as if this subsection had not been enacted on
                taxable income reduced by qualified business income,
                    ``(B) 10 percent of so much of the qualified
                business income of the taxpayer as does not exceed
                $150,000, plus
                    ``(C) 20 percent of so much of the qualified
                business income of the taxpayer as exceeds the amount
                on which tax is determined under subparagraph (B).
            ``(2) Qualified business income.--
                    ``(A) In general.--The term `qualified business
                income' means so much of the following of the taxpayer
                as does not exceed $1,000,000:
                            ``(i) Gross earnings derived by an
                        individual from any active trade or business
                        carried on by such individual, less the
                        deductions allowed by the subtitle which are
                        attributable to such trade or business.
                            ``(ii) The taxpayer's distributive or pro
                        rata share qualified pass-through income.
                Such term shall not include any amounts, or any
                distributive or pro rata share, attributable to capital
                gains, interest, dividends, and royalties.
                    ``(B) Qualified pass-through income.--The term
                `qualified pass-through income' means, in the case of a
                partnership or S corporation, so much of the income of
                the partnership computed under section 703, or income
                of the S corporation computed under section 1363, as
                does not exceed $1,000,000 and is designated as such
                (at such time and in such form and manner as the
                Secretary shall prescribe) and allocated by the
                partnership or S corporation. Any income so designated
                shall be allocated amongst partners or shareholders in
                the same proportion as distributive or pro rata shares
                of income or loss are allocated. Such term shall not
                include any capital gains, interest, dividends, or
                royalties.
            ``(3) Special rules.--
                    ``(A) Material participation.--Paragraph (1) shall
                not apply with respect to any income attributable to a
                trade or business in which the taxpayer does not
                materially participate.
                    ``(B) Coordination with capital gains.--This
                subsection shall be applied before the application of
                subsection (h).''.
    (b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2016.

SEC. 3. REPEAL OF LIMITATION ON ELECTION TO EXPENSE CERTAIN DEPRECIABLE
              ASSET IN CASE OF NON-C CORP TAXPAYERS.

    (a) In General.--Paragraphs (1) and (2) of section 179(b) of the
Internal Revenue Code of 1986 are each amended by striking ``The'' and
inserting ``In the case of a corporation (or any partnership with a
corporation as a partner), the''.
    (b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2016.

SEC. 4. EXPANDED AVAILABILITY OF CASH ACCOUNTING RULES AND EXCEPTION TO
              INVENTORY RULES FOR CERTAIN SMALL BUSINESSES.

    (a) Cash Accounting Permitted.--
            (1) In general.--Section 446 of the Internal Revenue Code
        of 1986 is amended by adding at the end the following new
        subsection:
    ``(g) Certain Small Business Taxpayers Permitted To Use Cash
Accounting Method Without Limitation.--
            ``(1) In general.--With respect to an eligible taxpayer who
        uses the cash receipts and disbursements method for any taxable
        year, such method shall be deemed to clearly reflect income and
        the taxpayer shall not be required to use an accrual method.
            ``(2) Eligible taxpayer.--For purposes of this subsection,
        a taxpayer is an eligible taxpayer with respect to any taxable
        year if--
                    ``(A) for all prior taxable years beginning after
                December 31, 2016, the taxpayer (or any predecessor)
                met the gross receipts test of section 448(c), and
                    ``(B) the taxpayer is not subject to section 447 or
                448.''.
            (2) Expansion of gross receipts test.--
                    (A) In general.--Paragraph (3) of section 448(b) of
                such Code is amended by striking ``$5,000,000'' in the
                text and in the heading and inserting ``$25,000,000''.
                    (B) Conforming amendments.--Section 448(c) of such
                Code is amended by striking ``$5,000,000'' each place
                it appears in the text and in the heading of paragraph
                (1) and inserting ``$25,000,000''.
            (3) Farming.--
                    (A) In general.--Section 447(d)(1) of such Code is
                amended by striking ``$1,000,000'' and inserting
                ``$25,000,000''.
                    (B) Conforming amendment.--Section 447(d)(2) of
                such Code is amended--
                            (i) by striking ``; and'' and all that
                        follows through to the end and inserting a
                        period, and
                            (ii) by striking ``shall be applied--'' and
                        all that follows through ``(i) by
                        substituting'' and inserting the following:
                        ``shall be applied by substituting''.
    (b) Inventory Rules.--
            (1) In general.--Section 471 of the Internal Revenue Code
        of 1986 is amended by redesignating subsection (c) as
        subsection (d) and by inserting after subsection (b) the
        following new subsection:
    ``(c) Small Business Taxpayers Not Required To Use Inventories.--
            ``(1) In general.--An eligible taxpayer (as defined in
        section 446(g)(2)) shall not be required to use inventories
        under this section for a taxable year.
            ``(2) Treatment of taxpayers not using inventories.--If an
        eligible taxpayer (as so defined) does not use inventories with
        respect to any property for a taxable year, any cost which (but
        for paragraph (1)) would have been included by the taxpayer in
        inventory costs shall be treated as an expense which is
        deductible for the taxable year in which the property is
        purchased.''.
            (2) Conforming amendment.--Section 263A(c) of such Code is
        amended by adding at the end the following new paragraph:
            ``(7) Exclusion from inventory rules.--This section shall
        not apply to property with respect to which a taxpayer does not
        use inventories pursuant to section 471(c).''.
    (c) Effective Date and Special Rules.--
            (1) In general.--The amendments made by this section shall
        apply to taxable years beginning after December 31, 2016.
            (2) Change in method of accounting.--In the case of any
        taxpayer changing the taxpayer's method of accounting for any
        taxable year under the amendments made by this section--
                    (A) such change shall be treated as initiated by
                the taxpayer; and
                    (B) such change shall be treated as made with the
                consent of the Secretary of the Treasury.

Output: Bring Small Businesses Back Tax Reform Act  This bill amends the Internal Revenue Code to establish new maximum individual tax rates for qualified business income that does not exceed $1 million (i.e., small business income). The maximum rates are: (1) 10% of such income not exceeding $150,000, and (2) 20% for income that exceeds $150,000 and is not more than $1 million.  The rates apply to up to $1 million of qualified business income that is: (1) gross earnings derived by an individual from any active trade or business carried on by the individual, excluding deductions attributable to the trade or business; and (2) the taxpayer's distributive or pro rata share of pass-through income from entities such as a partnership or S corporation. Qualified business income does not include capital gains, interest, dividends, or royalties.  For taxpayers that are not a corporation or a partnership with a corporation as a partner, the bill repeals the annual limitation on the election to deduct certain depreciable business assets.  The bill also permits certain small businesses whose average gross receipts do not exceed $25 million (currently, $5 million) to use the cash accounting method without limitations and exempts such businesses from inventory rules.


Input:
SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Empowering Parents and Students
Through Information Act''.

SEC. 2. ALTERNATE STANDARDS AND ASSESSMENTS FOR STUDENTS WITH THE MOST
              SIGNIFICANT COGNITIVE DISABILITIES.

    Section 1111 of the Elementary and Secondary Education Act of 1965
(20 U.S.C. 6311) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1), by adding at the end the
                following:
                    ``(G) State requirements for alternate achievement
                standards.--Notwithstanding subparagraph (B), in the
                case of any State that elects to use alternate academic
                achievement standards in any subject included in the
                State's accountability system under paragraph (2) for
                students with the most significant cognitive
                disabilities, in accordance with section 612(a)(16) of
                the Individuals with Disabilities Education Act and
                sections 200.1(d) and 200.6(a)(2) of title 34, Code of
                Federal Regulations, or any successor regulation, the
                State shall--
                            ``(i) establish and monitor implementation
                        of clear and appropriate guidelines for
                        individualized education program teams (as
                        defined in section 614(d)(1)(B) of the
                        Individuals with Disabilities Education Act) to
                        apply in determining, on an annual and subject-
                        by-subject basis, when a child's significant
                        cognitive disability justifies assessment based
                        on alternate academic achievement standards;
                            ``(ii) ensure that parents of the students
                        whom the State plans to assess using alternate
                        assessments--
                                    ``(I) are involved in the decision
                                that their child's academic achievement
                                will be measured against alternate
                                academic achievement standards,
                                consistent with section
                                614(d)(1)(A)(i)(VI)(bb) of the
                                Individuals with Disabilities Education
                                Act;
                                    ``(II) provide informed consent
                                that their child's achievement will be
                                measured against alternate academic
                                achievement standards using such
                                assessment; and
                                    ``(III) are informed of any effect
                                that participation in such assessment
                                may have on their child's academic
                                preparation and eligibility for a
                                regular secondary school diploma, as
                                determined by the State;
                            ``(iii) provide evidence that students with
                        the most significant cognitive disabilities are
                        included in and making progress in the general
                        curriculum for the grade in which the students
                        are enrolled and in assessments aligned with
                        that curriculum, as described in section
                        601(c)(5)(A) of the Individuals with
                        Disabilities Education Act;
                            ``(iv) develop, disseminate information
                        about, make available, and promote the use of
                        reasonable accommodations to increase the
                        number of students with the most significant
                        cognitive disabilities participating in grade-
                        level academic instruction and assessments
                        aligned with grade-level academic standards,
                        and promote the use of reasonable
                        accommodations to increase the number of
                        students with the most significant cognitive
                        disabilities who are tested against grade-level
                        academic achievement standards;
                            ``(v) take steps to ensure general and
                        special education teachers and other
                        appropriate staff know how to administer
                        assessments, including how to make appropriate
                        use of accommodations, for students with
                        disabilities;
                            ``(vi) require separate annual
                        determinations about whether a student should
                        be assessed using an alternate assessment based
                        on alternate academic achievement standards for
                        each subject assessed; and
                            ``(vii) ensure that students who take an
                        alternate assessment based on alternate
                        academic achievement standards are not
                        precluded from attempting to complete the
                        requirements for a regular secondary school
                        diploma, as determined by the State.''; and
                    (B) in paragraph (2), by adding at the end the
                following:
                    ``(L) No inclusion of ieps.--A State shall not use
                any student individualized education program, as
                defined in section 602(14) of the Individuals with
                Disabilities Education Act, in the State accountability
                system.''; and
            (2) in subsection (h)(1)(C)--
                    (A) in clause (i), by striking ``disability
                status'' and inserting ``disability category described
                in section 602(3) of the Individuals with Disabilities
                Education Act'';
                    (B) in clause (vii), by striking ``and'' after the
                semicolon;
                    (C) in clause (viii), by striking the period at the
                end and inserting ``; and''; and
                    (D) by adding at the end the following:
                            ``(ix) the number and percentage of
                        students with disabilities who take an
                        alternate assessment based on alternate
                        achievement standards, by grade and subject,
                        and, for each grade and subject, by disability
                        category described in section 602(3) of the
                        Individuals with Disabilities Education Act,
                        except that disaggregation shall not be
                        required in a case in which the number of
                        students in a category is insufficient to yield
                        statistically reliable information or the
                        results would reveal personally identifiable
                        information about an individual student.''.

Output: Empowering Parents and Students Through Information Act Amends the school improvement program under part A of title I of the Elementary and Secondary Education Act of 1965 to require each state that elects to use alternate academic achievement standards for students that have the most significant cognitive disabilities to:  establish and monitor the implementation of clear and appropriate guidelines for individualized education program (IEP) teams to apply in determining, on an annual and subject-by-subject basis, when a child's significant cognitive disability justifies assessment using alternate standards; ensure that the parents of students the state plans to assess using alternate assessments are involved in, and provide informed consent to, the decision to apply such alternate standards; provide evidence that students with the most significant cognitive disabilities are making progress in the general curriculum for the grade in which the students are enrolled and in assessments aligned with that curriculum; develop and promote the use of reasonable accommodations to increase the number of such students participating in grade-level academic instruction and assessments aligned with grade-level academic standards; promote the use of such accommodations to increase the number of students with the most significant cognitive disabilities who are tested against grade-level academic achievement standards;  ensure that general and special education teachers and other appropriate staff know how to administer assessments for disabled students; require separate annual determinations about whether a student should be assessed using an alternate assessment based on alternate academic achievement standards for each subject assessed; and ensure that students who take such alternate assessments are not precluded from attempting to complete the state requirements for a regular secondary school diploma.  Prohibits states from using any student's IEP in the state accountability system. Requires states' annual report cards to: (1) include the number and percentage of disabled students who take the alternate assessments; and (2) break that information down by grade and subject matter and by the disability categories described in the Individuals with Disabilities Education Act.


Input:
SECTION 1. PREVENTION OF AVOIDANCE OF TAX THROUGH REINSURANCE WITH NON-
              TAXED AFFILIATES.

    (a) In General.--Part III of subchapter L of chapter 1 of the
Internal Revenue Code of 1986 is amended by adding at the end the
following new section:

``SEC. 849. SPECIAL RULES FOR REINSURANCE OF NON-LIFE CONTRACTS WITH
              NON-TAXED AFFILIATES.

    ``(a) In General.--The taxable income under section 831(a) or the
life insurance company taxable income under section 801(b) (as the case
may be) of an insurance company shall be determined by not taking into
account--
            ``(1) any non-taxed reinsurance premium,
            ``(2) any additional amount paid by such insurance company
        with respect to the reinsurance for which such non-taxed
        reinsurance premium is paid, to the extent such additional
        amount is properly allocable to such non-taxed reinsurance
        premium, and
            ``(3) any return premium, ceding commission, reinsurance
        recovered, or other amount received by such insurance company
        with respect to the reinsurance for which such non-taxed
        reinsurance premium is paid, to the extent such return premium,
        ceding commission, reinsurance recovered, or other amount is
        properly allocable to such non-taxed reinsurance premium.
    ``(b) Non-Taxed Reinsurance Premiums.--For purposes of this
section--
            ``(1) In general.--The term `non-taxed reinsurance premium'
        means any reinsurance premium paid directly or indirectly to an
        affiliated corporation with respect to reinsurance of risks
        (other than excepted risks), to the extent that the income
        attributable to the premium is not subject to tax under this
        subtitle (either as the income of the affiliated corporation or
        as amounts included in gross income by a United States
        shareholder under section 951).
            ``(2) Excepted risks.--The term `excepted risks' means any
        risk with respect to which reserves described in section
        816(b)(1) are established.
    ``(c) Affiliated Corporations.--For purposes of this section, a
corporation shall be treated as affiliated with an insurance company if
both corporations would be members of the same controlled group of
corporations (as defined in section 1563(a)) if section 1563 were
applied--
            ``(1) by substituting `at least 50 percent' for `at least
        80 percent' each place it appears in subsection (a)(1), and
            ``(2) without regard to subsections (a)(4), (b)(2)(C),
        (b)(2)(D), and (e)(3)(C).
    ``(d) Election To Treat Reinsurance Income as Effectively
Connected.--
            ``(1) In general.--A specified affiliated corporation may
        elect for any taxable year to treat specified reinsurance
        income as--
                    ``(A) income effectively connected with the conduct
                of a trade or business in the United States, and
                    ``(B) for purposes of any treaty between the United
                States and any foreign country, income attributable to
                a permanent establishment in the United States.
            ``(2) Effect of election.--In the case of any specified
        reinsurance income with respect to which the election under
        this subsection applies--
                    ``(A) Deduction allowed for reinsurance premiums.--
                For exemption from subsection (a), see definition of
                non-taxed reinsurance premiums in subsection (b).
                    ``(B) Exception from excise tax.--The tax imposed
                by section 4371 shall not apply with respect to any
                income treated as effectively connected with the
                conduct of a trade or business in the United States
                under paragraph (1).
                    ``(C) Taxation under this subchapter.--Such income
                shall be subject to tax under this subchapter to the
                same extent and in the same manner as if such income
                were the income of a domestic insurance company.
                    ``(D) Coordination with foreign tax credit
                provisions.--For purposes of subpart A of part III of
                subchapter N and sections 78 and 960--
                            ``(i) such specified reinsurance income
                        shall be treated as derived from sources
                        without the United States, and
                            ``(ii) subsections (a), (b), and (c) of
                        section 904 and sections 902, 907, and 960
                        shall be applied separately with respect to
                        each item of such income.
                The Secretary may issue regulations or other guidance
                which provide that related items of specified
                reinsurance income may be aggregated for purposes of
                applying clause (ii).
            ``(3) Specified affiliated corporation.--For purposes of
        this subsection, the term `specified affiliated corporation'
        means any affiliated corporation which is a foreign corporation
        and which meets such requirements as the Secretary shall
        prescribe to ensure that tax on the specified reinsurance
        income of such corporation is properly determined and paid.
            ``(4) Specified reinsurance income.--For purposes of this
        paragraph, the term `specified reinsurance income' means all
        income of a specified affiliated corporation which is
        attributable to reinsurance with respect to which subsection
        (a) would (but for the election under this subsection) apply.
            ``(5) Rules related to election.--Any election under
        paragraph (1) shall--
                    ``(A) be made at such time and in such form and
                manner as the Secretary may provide, and
                    ``(B) apply for the taxable year for which made and
                all subsequent taxable years unless revoked with the
                consent of the Secretary.
    ``(e) Regulations.--The Secretary shall prescribe such regulations
or other guidance as may be appropriate to carry out, or to prevent the
avoidance of the purposes of, this section, including regulations or
other guidance which provide for the application of this section to
alternative reinsurance transactions, fronting transactions, conduit
and reciprocal transactions, and any economically equivalent
transactions.''.
    (b) Clerical Amendment.--The table of sections for part III of
subchapter L of chapter 1 of such Code is amended by adding at the end
the following new item:

``Sec. 849. Special rules for reinsurance of non-life contracts with
                            non-taxed affiliates.''.
    (c) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2011.

Output: Amends the Internal Revenue Code to exclude from the taxable income of a life insurance company or other insurance company: (1) any non-taxed reinsurance premium; (2) any additional amount paid by an insurance company with respect to the reinsurance for which such non-taxed reinsurance premium is paid; and (3) any return premium, ceding commission, reinsurance recovered, or other amount received by an insurance company with respect to the reinsurance for which such non-taxed reinsurance premium is paid.


Input:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Small Employer
Health Act of 2005''.
    (b) Table of Contents.--The table of contents of this Act is as
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Establishment of Small Employer Health Benefits Program
                            (SEHBP).
        ``Part 8--Small Employer Health Benefits Program (SEHBP)

        ``Sec. 801. Establishment of program.
        ``Sec. 802. Contracts with qualifying insurers.
        ``Sec. 803. Additional conditions.
        ``Sec. 804. Dissemination of information.
        ``Sec. 805. Subsidies.
        ``Sec. 806. Authorization of appropriations.

SEC. 2. ESTABLISHMENT OF SMALL EMPLOYER HEALTH BENEFITS PROGRAM
              (SEHBP).

    (a) In General.--Subtitle B of title I of the Employee Retirement
Income Security Act of 1974 is amended by adding after part 7 the
following new part:

        ``PART 8--SMALL EMPLOYER HEALTH BENEFITS PROGRAM (SEHBP)

``SEC. 801. ESTABLISHMENT OF PROGRAM.

    ``(a) In General.--The Secretary shall establish, in accordance
with this part, a program under which--
            ``(1) qualifying small employers (as defined in subsection
        (b)) are provided access to qualifying health insurance
        coverage (as defined in subsection (c)) for their employees,
        and
            ``(2) such employees may elect alternative forms of
        coverage offered by various health insurance issuers.
    ``(b) Qualifying Small Employer Defined; Other Definitions.--For
purposes of this part:
            ``(1) Qualifying small employer.--
                    ``(A) In general.--The term `qualifying small
                employer' means a small employer (as defined in
                paragraph (2)) that--
                            ``(i) elects to offer health insurance
                        coverage provided under this part to each
                        employee who has been employed by that employer
                        for 3 months or longer; and
                            ``(ii) elects, with respect to an employee
                        electing coverage under qualified health
                        insurance coverage, to pay at least 50 percent
                        of the total premium for qualifying health
                        insurance coverage provided under this part.
                    ``(B) Elections.--Elections under subparagraph (A)
                may be filed with the Secretary during the 180-day
                period beginning with the first enrollment period
                occurring under section 803 and during open enrollment
                periods occurring thereafter under such section. Such
                elections shall be filed in such form and manner as
                shall be prescribed by the Secretary.
                    ``(C) Part-time employment.--Under regulations of
                the Secretary, in the case of an employee serving in a
                position in which service is customarily less than
                1,500 hours per year, the reference in subparagraph
                (A)(ii) to `50 percent' shall be deemed a percentage
                reduced to a percentage that bears the same ratio to 50
                percent as the number of hours of service per year
                customarily in such position bears to 1,500.
            ``(2) Small employer.--The term `small employer' means,
        with respect to a year, an employer who employed an average of
        fewer than 100 employees on business days during the preceding
        calendar year and who employs at least 1 employee on the first
        day of the year.
            ``(3) SEHBP.--The term `SEHBP' means the small employer
        health benefits program provided under this part.
    ``(c) Qualifying Health Insurance Coverage.--For purposes of this
part, the term `qualifying health insurance coverage' means health
insurance coverage that meets the following requirements:
            ``(1) The coverage is offered by a health insurance issuer.
            ``(2) The benefits under such coverage are equivalent to or
        greater than the lower level of benefits provided under the
        service benefit plan described in section 8903(1) of title 5,
        United States Code.
            ``(3) The coverage includes, with respect to an eligible
        individual that elects coverage, coverage of the same
        dependents that would be covered if the coverage were offered
        under FEHBP.
            ``(4)(A) Subject to subparagraph (B), there is no
        underwriting, through a preexisting condition limitation,
        differential benefits, or different premium levels, or
        otherwise, with respect to such coverage for covered
        individuals or their dependents.
            ``(B) The premiums charged for such coverage are community-
        rated for individuals within any State and may vary only--
                    ``(i) by individual or family enrollment, and
                    ``(ii) to the extent permitted under the laws of
                such State relating to health insurance coverage
                offered in the small group market, on the basis of
                geography.
    ``(d) Other Terms.--
            ``(1) Health insurance coverage; health insurance issuer;
        health status-related factor.--The terms `health insurance
        coverage', `health insurance issuer', `health status-related
        factor' have the meanings provided such terms in section 733.
            ``(2) Small group market.--The term `small group market'
        has the meaning provided such term in section 2791(e)(5) of the
        Public Health Service Act (42 U.S.C. 300gg-91(e)(5)).
            ``(3) FEHBP.--The term `FEHBP' means the Federal Employees
        Health Benefits Program under chapter 89 of title 5, United
        States Code.
    ``(e) Treatment of Partnerships and Self-Employed Individuals.--For
purposes of this part, and for purposes of applying section 3 to this
part and to part 5 as it applies to this part, in any case in which
qualifying health insurance coverage is, or is to be, provided under a
plan, fund, or program to individuals covered thereunder--
            ``(1) if such plan, fund, or program is maintained by a
        partnership, the term `employer' (as defined in section 3(5))
        includes the partnership in relation to the partners, and the
        term `employee' (as defined in section 3(6)) includes any
        partner in relation to the partnership; and
            ``(2) if such plan, fund, or program is maintained by a
        self-employed individual, the term `employer' (as defined in
        section 3(5)) and the term `employee' (as defined in section
        3(6)) shall include such individual.

``SEC. 802. CONTRACTS WITH QUALIFYING INSURERS.

    ``(a) In General.--The Secretary shall enter into contracts with
health insurance issuers for the offering of qualifying health
insurance coverage under this part in the States in such manner as to
offer coverage to employees of employers that elect to offer coverage
under this part. Nothing in this part shall be construed as requiring
the Secretary to enter into arrangements with all such issuers seeking
to offer qualifying health insurance coverage in a State.
    ``(b) Continued Regulation.--Nothing in this part shall be
construed as preempting State laws applicable to health insurance
issuers that offer coverage under this part in such State.
    ``(c) Coordination With State Insurance Commissioners.--The
Secretary shall coordinate with the insurance commissioners for the
various States in establishing a process for handling and resolving any
complaints relating to health insurance coverage offered under this
part, to the extent necessary to augment processes otherwise available
under State law.

``SEC. 803. ADDITIONAL CONDITIONS.

    ``(a) Limitation on Enrollment Periods.--The Secretary may limit
the periods of times during which employees may elect coverage offered
under this part, but such election shall be consistent with the
elections permitted for employees under FEHBP and shall provide for at
least annual open enrollment periods and enrollment at the time of
initial eligibility to enroll and upon appropriate changes in family
circumstances.
    ``(b) Authorizing Use of States in Making Arrangements for
Coverage.--In lieu of the coverage otherwise arranged by the Secretary
under this part, the Secretary may enter an arrangement with a State
under which a State arranges for the provision of qualifying health
insurance coverage to qualifying small employers in such manner as the
Secretary would otherwise arrange for such coverage.
    ``(c) Use of FEHBP Model.--The Secretary shall carry out the SEHBP
using the model of the FEHBP to the extent practicable and consistent
with the provisions of this part, and, in carrying out such model, the
Secretary shall, to the maximum extent practicable, negotiate the most
affordable and substantial coverage possible for small employers.

``SEC. 804. DISSEMINATION OF INFORMATION.

    ``The Secretary shall widely disseminate information about SEHBP
through the media, the Internet, public service announcements, and
other employer and employee directed communications.

``SEC. 805. SUBSIDIES.

    ``(a) Employer Subsidies.--
            ``(1) Enrollment discount.--
                    ``(A) In general.--In the case of a qualifying
                small employer who is eligible under subparagraph (B),
                the portion of the total premium for coverage otherwise
                payable by such employer under this part shall be
                reduced by 5 percent. Such reduction shall not cause an
                increase in the portion of the total premium payable by
                employees.
                    ``(B) Employers eligible for discounts.--A
                qualifying small employer is eligible under this
                subparagraph if such employer employed an average of
                fewer than 25 employees on business days during the
                preceding calendar year.
            ``(2) Employer premium subsidy.--
                    ``(A) In general.--The Secretary shall provide to
                qualifying small employers who are eligible under
                subparagraph (C) and who elect to offer health
                insurance coverage under this part a subsidy for
                premiums paid by the employer for coverage of employees
                whose individual income (as determined by the
                Secretary) is at or below 200 percent of the poverty
                line (as defined in section 673(2) of the Community
                Services Block Grant Act (42 U.S.C. 9902(2)), including
                any revision required by such section) for an
                individual.
                    ``(B) Subsidy scaled according to size of
                employer.--The subsidy provided under subparagraph (A)
                shall be designed so that the subsidy equals, for any
                calendar year--
                            ``(i) 50 percent of the portion of the
                        premium payable by the employer for the
                        coverage, in the case of eligible qualifying
                        small employers who employ an average of fewer
                        than 11 employees on business days during the
                        preceding calendar year;
                            ``(ii) 35 percent of the portion of the
                        premium payable by the employer for the
                        coverage, in the case of eligible qualifying
                        small employers who employ an average of more
                        than 10 employees but fewer than 26 employees
                        on business days during the preceding calendar
                        year; and
                            ``(iii) 25 percent of the portion of the
                        premium payable by the employer for the
                        coverage, in the case of eligible qualifying
                        small employers who employ an average of more
                        than 25 employees but fewer than 51 employees
                        on business days during the preceding calendar
                        year.
                    ``(C) Employers eligible for premium subsidy.--A
                qualifying small employer is eligible under this
                subparagraph if such employer employed an average of
                fewer than 50 employees on business days during the
                preceding calendar year.
    ``(b) Employee Subsidies.--
            ``(1) In general.--The Secretary shall provide subsidies to
        employees whose family income (as determined by the Secretary)
        is at or below 200 percent of the poverty line (as defined in
        section 673(2) of the Community Services Block Grant Act (42
        U.S.C. 9902(2)), including any revision required by such
        section) for a family of the size involved.
            ``(2) Amount of subsidy.--Such subsidies shall be in an
        amount equal to the excess of the portion of the total premium
        for coverage otherwise payable by the employee under this part
        for any period, over 5 percent of the family income (as
        determined under paragraph (1)(A)) of the employee for such
        period.
            ``(3) Coordination of subsidies.--Notwithstanding paragraph
        (1), under regulations of the Secretary, an employee may be
        entitled to subsidies under this subsection for any period only
        if such employee is not eligible for subsidies for such period
        under any Federal or State health insurance subsidy program
        (including a program under title V, XIX, or XXI of the Social
        Security Act). For purposes of this paragraph, an employee is
        `eligible' for a subsidy under a program if such employee is
        entitled to such subsidy or would, upon filing application
        therefore, be entitled to such subsidy.
            ``(4) Authority to expand eligibility.--The Secretary may,
        to the extent of available funding, provide for expansion of
        the subsidy program under this subsection to employees whose
        family income (as defined by the Secretary) is at or below 300
        percent of the poverty line (as determined under paragraph
        (1)).
    ``(c) Procedures.--The Secretary shall establish by regulation
applications, methods, and procedures for carrying out this section,
including measures to ascertain or confirm levels of income.

``SEC. 806. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated, for the period beginning
with fiscal year 2006 and ending with fiscal year 2015, $50,000,000,000
to carry out this part, including the establishment of subsidies under
section 805.''.
    (b) Report on Offering National Health Plans.--Not later than 18
months after the date of the enactment of this Act, the Secretary of
Labor shall report to Congress the Secretary's recommendations
regarding the feasibility of offering national health plans under part
8 of subtitle B of title I of the Employee Retirement Income Security
Act of 1974, as added by subsection (a).
    (c) Clerical Amendment.--The table of contents in section 1 of the
Employee Retirement Income Security Act of 1974 is amended by inserting
after the item relating to section 734 the following new items:

        ``Part 8--Small Employer Health Benefits Program (SEHBP)

``801. Establishment of program.
``802. Contracts with qualifying insurers.
``803. Additional conditions.
``804. Dissemination of information.
``805. Subsidies.
``806. Authorization of appropriations.''.

Output:
Small Employer Health Benefits Program Act of 2005 - Amends the Employee Retirement Income Security Act of 1974 (ERISA) to direct the Secretary of Labor to establish the Small Employer Health Benefits Program under which: (1) qualifying small employers are provided access to qualifying health insurance coverage for their employees; and (2) such employees may elect alternative forms of coverage offered by various health insurance issuers.

Limits such program to small employers that elect to: (1) offer health insurance coverage to each individual employed for three months or longer; and (2) pay at least half the total premium for qualifying health insurance coverage for such individual. Provides for coverage of part-time employees.

Requires the Secretary to enter into contracts with health insurance issuers for the offering of such insurance coverage.

Reduces by five percent the total premium otherwise payable by such employer if an average of fewer than 25 employees were employed during the preceding calendar year.

Requires the Secretary to provide premium subsidies (calculated according to specified formulae) to: (1) employers for coverage of employees whose individual income is at or below 200 percent of the poverty line; as well as (2) such employees.