,,ii #aadth ,,congress #b;d ,session ,s4 #cbia ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,september #g1 #bjaf ,mr4 ,kirk introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to establish tax1 regulatory1 and legal structure in the ,united ,states that encourages small businesses to expand and innovate1 and for other purposes4 #a4 ,short title2 table of contents 7a7 ,short title ,this ,act may be cited as the ,small ,business ,bill of ,rights4 7b7 ,table of contents ,the table of the contents of this ,act is as follows3 ,sec4 #a4 ,short title2 table of contents4 ,sec4 #b4 ,definitions4 ,,title ,i--,lower tax environment ,subtitle ,a--,business friendly environment for disadvantaged areas ,sec4 #aja4 ,short title4 ,sec4 #ajb4 ,exclusion for income attributable to certain real property4 ,subtitle ,b--,capital ,gains ,sec4 #aaa4 ,temporary reduction of capital gains tax on qualified small business stock4 ,subtitle ,c--,tax benefits for ,start-,ups ,sec4 #aba4 ,increase in amount allowed as deduction for start-up expenditures4 ,subtitle ,d--,miscellaneous ,sec4 #aca4 ,,gao to certify no increase in unemployment4 ,sec4 #acb4 ,exemption from taxes imposed after the date of enactment of this ,act4 ,,title ,,ii--,limitation on regulations ,sec4 #bja4 ,limitation on regulations4 ,sec4 #bjb4 ,regulatory sunsets4 ,,title ,,iii--,death ,tax ,repeal ,sec4 #cja4 ,short title4 ,sec4 #cjb4 ,repeal of estate and generation-skipping transfer taxes4 ,sec4 #cjc4 ,modifications of gift tax4 ,,title ,,iv--,healthcare3 expanding choice and lowering costs ,sec4 #dja4 ,findings and purpose4 ,sec4 #djb4 ,encouraging speedy resolution of claims4 ,sec4 #djc4 ,compensating patient injury4 ,sec4 #djd4 ,maximizing patient recovery4 ,sec4 #dje4 ,additional health benefits4 ,sec4 #djf4 ,punitive damages4 ,sec4 #djg4 ,authorization of payment of future damages to claimants in health care lawsuits4 ,sec4 #djh4 ,definitions4 ,sec4 #dji4 ,effect on other laws4 ,sec4 #daj4 ,state flexibility and protection of ,states' rights4 ,sec4 #daa4 ,applicability2 effective date4 ,sec4 #dab4 ,sense of ,congress4 ,sec4 #dac4 ,,seca tax deduction for health insurance costs4 ,,title ,v--,workforce ,integrity ,sec4 #eja4 ,verification under ,e-,verify ,program by telephone4 ,sec4 #ejb4 ,grace period to correct paperwork4 ,,title ,,vi--,incentives for energy efficiency ,sec4 #fja4 ,extend the tax credit for residential energy-efficient property4 ,sec4 #fjb4 ,make permanent the energy efficiency credit for existing homes4 ,sec4 #fjc4 ,make permanent the energy efficiency commercial buildings deduction4 ,,title ,,vii--,guidance about new rules ,sec4 #gja4 ,guidance and advice about new rules4 ,,title ,,viii--,small business provisions ,subtitle ,a--,small ,business ,general ,provisions ,sec4 #hja4 ,administration prohibited from capping executive compensation4 ,sec4 #hjb4 ,reduction of regulatory burden4 ,sec4 #hjc4 ,litigation burden on small business concerns to be limited to current levels4 ,sec4 #hjd4 ,expansion of volunteer representation and benchmark reports4 ,sec4 #hje4 ,mentoring and networking4 ,subtitle ,b--,small ,business ,goals ,sec4 #haa4 ,small business goals4 ,sec4 #hab4 ,agency goal negotiation4 ,sec4 #hac4 ,procedures and methods for goal achievement4 ,sec4 #had4 ,reporting requirements4 ,subtitle ,c--,contract ,bundling ,sec4 #hba4 ,definitions of bundling of contract requirements4 ,sec4 #hbb4 ,justification4 ,sec4 #hbc4 ,appeals4 ,sec4 #hbd4 ,third-party review4 ,subtitle ,d--,small ,business ,subcontracting ,sec4 #hca4 ,criminal violations4 #b4 ,definitions ,in this ,act-- 7#a7 the terms ,administration and ,administrator mean the ,small ,business ,administration and the ,administrator thereof2 and 7#b7 the term small business concern has the meaning given the term in section #c of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcb74 ,i ,lower tax environment ,a ,business friendly environment for disadvantaged areas #aja4 ,short title ,this subtitle may be cited as the ,bringing ,business ,back ,act of #bjaf4 #ajb4 ,exclusion for income attributable to certain real property 7a7 ,in general ,part ,,iii of subchapter ,b of chapter #a of the ,internal ,revenue ,code of #aihf is amended by inserting after section #aci;,f the following new section3 #aci;,g4 ,income attributable to qualified real property excluded from gross income 7a7 ,in general ,gross income shall not include income or gain attributable to qualified real property for any taxable year beginning during the exclusion period4 7b7 ,definitions ,for purposes of this section-- 7#a7 ,qualified real property 7,a7 ,in general ,the term qualified real property means any real property-- 7i7 which is certified by the ,state or local zoning authority1 and any economic development board1 with respect to such property as meeting the requirements of subparagraph 7,b71 and 7ii7 with respect to which an election has been made 7at such time and in such form and manner as the ,secretary shall by regulation prescribe7 to have this section apply4 7,b7 ,requirements ,property meets the requirements of this subparagraph if such property-- 7i7 is zoned for commercial use1 7ii7 has been undeveloped and vacant during the #b-year period ending on the date of certification1 and 7iii7 is located within a qualified census tract4 7,c7 ,qualified census tract ,the term qualified census tract means any census tract which-- 7i7 7,i7 has an average poverty rate exceeding the national average poverty rate1 or 7,,ii7 has an unemployment rate above the national unemployment rate1 and 7ii7 exhibits another condition of distress1 such as deteriorating infrastructure or population decline4 ,poverty rates shall be determined by using #bjaj census data1 and unemployment rates shall be determined by reference to the rate of unemployment announced by the ,bureau of ,labor ,statistics of the ,department of ,labor for the months in the #b most recently ended calendar quarters4 7,d7 ,economic development board ,the term economic development board means1 with respect to any property1 any entity established by law to oversee the economic development of an area within which such property is located4 7#b7 ,exclusion period ,the term exclusion period means1 with respect to a taxable year1 the #a-taxable-year period beginning with the first taxable year beginning after the date of the enactment of this section for which the income attributable to the qualified real property exceeds the pre-depreciation expenses attributable to such real property4 7c7 ,special rules ,for purposes of this section-- 7#a7 ,subsequent taxpayers ,subsection 7a7 shall only apply to a taxpayer who has an ownership interest in the qualified real property on the first day of the exclusion period with respect to such property4 7#b7 ,limitation on application of section ,an election to have this section apply may only be made once with respect to any property4 7#c7 ,tax-exempt use property ,this section shall not apply to any property which is tax-exempt use property 7as defined in section #afh7;h774 7d7 ,regulations ,the ,secretary may prescribe such regulations as may be necessary or appropriate to carry out the purposes of this section1 including methods for allocating income and expenses to property and rules to prevent abuse of this section4 4 7b7 ,clerical amendment ,the table of parts for part ,,iii of subchapter ,b of chapter #a of such ,code is amended by inserting after the item relating to section #aci;,f the following new item3 ,sec4 #aci;,g4 ,income attributable to qualified real property excluded from gross income4 4 7c7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after the date of the enactment of this ,act4 ,b ,capital ,gains #aaa4 ,temporary reduction of capital gains tax on qualified small business stock 7a7 ,temporary reduced rate for qualified small business stock ,subparagraph 7,a77ii7 of section #a7;h77#d7 of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7ii7 in the case of any taxable year beginning after ,december #ca1 #bjbf1 section #abjb gain1 over 4 7b7 ,effective date ,the amendment made by subsection 7a7 shall apply to taxable years beginning after ,december #ca1 #bjaf4 ,c ,tax benefits for ,start-,ups #aba4 ,increase in amount allowed as deduction for start-up expenditures 7a7 ,in general ,paragraph 7#c7 of section #aie7;b7 of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7#c7 ,special rule for taxable years beginning in #bjaf1 #bjag1 or #bjah ,in the case of a taxable year beginning in #bjaf1 #bjag1 or #bjah1 paragraph 7#a77;,a77ii7 shall be applied-- 7,a7 by substituting #bj1jjj for #e1jjj2 and 7,b7 by substituting #ge1jjj for #ej1jjj4 4 7b7 ,effective date ,the amendments made by this section shall apply to amounts paid or incurred in taxable years beginning after ,december #ca1 #bjae4 ,d ,miscellaneous #aca4 ,,gao to certify no increase in unemployment 7a7 ,in general ,each report of a committee of the ,senate on a public bill or a public joint resolution shall contain a statement by the ,comptroller ,general certifying that the bill or resolution will not cause an increase in the number of unemployed individuals in the ,united ,states4 7b7 ,enforcement ,in the ,senate1 if the report to accompany a public bill or a public joint resolution does not contain the statement required under subsection 7a71 or there is not a report to accompany the bill or resolution1 the bill or resolution shall only be agreed to upon an affirmative vote of three-fifths of the ,members voting1 a quorum being present4 7c7 ,exercise of rulemaking powers ,this section is enacted by ,congress-- 7#a7 as an exercise of the rulemaking power of the ,senate1 and as such is deemed a part of the rules of the ,senate and shall supersede other rules only to the extent that it is inconsistent with such rules2 and 7#b7 with full recognition of the constitutional right of the ,senate to change the rules 7so far as relating to the procedure of the ,senate7 at any time1 in the same manner1 and to the same extent as in the case of any other rule of the ,senate4 #acb4 ,exemption from taxes imposed after the date of enactment of this ,act ,except as otherwise expressly provided1 any amendment to the ,internal ,revenue ,code of #aihf that would 7but for the application of this section7 result in an increase in taxes of a taxpayer which is a small business concern shall not apply to such taxpayer4 ,,ii ,limitation on regulations #bja4 ,limitation on regulations 7a7 ,in general ,the ,administrator1 acting through the ,chief ,counsel of the ,office of ,advocacy of the ,administration1 is authorized to provide such support as may be necessary with regard to any ,federal regulation to ensure that a small business concern is not required to expend more than a total of #bjj man-hours annually on applications1 filings1 petitions1 or other paperwork submitted to ,federal departments or agencies4 7b7 ,commonly ,required ,information ,form 7#a7 ,in general ,support provided under subsection 7a7 shall include the establishment of a form on the website of the ,administration1 by means of which a small business concern may provide to the ,administrator information that the ,administrator determines to be frequently required as part of any applications1 filings1 petitions1 or other paperwork described in subsection 7a74 7#b7 ,use of information ,the ,administrator shall use information provided by a small business concern under paragraph 7#a7 to assist in the expedited completion of any applications1 filings1 petitions1 or other paperwork described in subsection 7a74 #bjb4 ,regulatory sunsets 7a7 ,definitions ,in this section3 7#a7 ,agency ,the term agency has the meaning given the term in section #eea of title #e1 ,united ,states ,code4 7#b7 ,covered rule ,the term covered rule means any rule or group of rules-- 7,a7 for which an agency is required to prepare a regulatory flexibility analysis under section #fjc or #fjd of title #e1 ,united ,states ,code2 and 7,b7 that is a major rule4 7#c7 ,major rule ,the term major rule has the meaning given the term in section #hjd of title #e1 ,united ,states ,code4 7#d7 ,rule ,the term rule has the meaning given the term in section #fja of title #e1 ,united ,states ,code4 7#e7 ,small entity ,the term small entity has the meaning given the term in section #fja of title #e1 ,united ,states ,code4 7b7 ,periodic review of rules ,section #faj of title #e1 ,united ,states ,code1 is amended to read as follows3 #faj4 ,periodic review of rules 7a7 7#a7 ,not later than #ahj days after the date of enactment of the ,small ,business ,bill of ,rights1 each agency shall establish a plan for the periodic review of-- 7,a7 each rule issued by the agency that the head of the agency determines has a significant economic impact on a substantial number of small entities1 without regard to whether the agency performed an analysis under section #fjd with respect to the rule2 and 7,b7 any small entity compliance guide required to be published by the agency under section #bab of the ,small ,business ,regulatory ,enforcement ,fairness ,act of #aiif 7#e ,u4,s4,c4 #fja note74 7#b7 ,in reviewing rules and small entity compliance guides under paragraph 7#a71 the agency shall determine whether the rules and guides should-- 7,a7 be amended or rescinded1 consistent with the stated objectives of applicable statutes1 to minimize any significant adverse economic impacts on a substantial number of small entities 7including an estimate of any adverse impacts on job creation and employment by small entities72 or 7,b7 continue in effect without change4 7#c7 ,each agency shall publish the plan established under paragraph 7#a7 in the ,federal ,register and on the ,web site of the agency4 7#d7 ,an agency may amend the plan established under paragraph 7#a7 at any time by publishing the amendment in the ,federal ,register and on the ,web site of the agency4 7b7 ,each plan established under subsection 7a7 shall provide for-- 7#a7 the review of each rule and small entity compliance guide described in subsection 7a77#a7 in effect on the date of enactment of the ,small ,business ,bill of ,rights-- 7,a7 not later than #i years after the date of publication of the plan in the ,federal ,register2 and 7,b7 every #i years thereafter2 and 7#b7 the review of each rule adopted and small entity compliance guide described in subsection 7a77#a7 that is published after the date of enactment of the ,small ,business ,bill of ,rights-- 7,a7 not later than #i years after the date of publication of the final rule in the ,federal ,register2 and 7,b7 every #i years thereafter4 7c7 ,in reviewing rules under the plan required under subsection 7a71 the agency shall consider-- 7#a7 the continued need for the rule2 7#b7 the nature of complaints received by the agency from small entities concerning the rule2 7#c7 comments by the ,regulatory ,enforcement ,ombudsman and the ,chief ,counsel for ,advocacy of the ,small ,business ,administration2 7#d7 the complexity of the rule2 7#e7 the extent to which the rule overlaps1 duplicates1 or conflicts with other ,federal rules and1 unless the head of the agency determines it to be infeasible1 ,state and local rules2 7#f7 the contribution of the rule to the cumulative economic impact of all ,federal rules on the class of small entities affected by the rule1 unless the head of the agency determines that such a calculation cannot be made2 7#g7 the length of time since the rule has been evaluated1 or the degree to which technology1 economic conditions1 or other factors have changed in the area affected by the rule2 and 7#h7 the economic impact of the rule1 including-- 7,a7 the estimated number of small entities to which the rule will apply2 7,b7 the estimated number of small entity jobs that will be lost or created due to the rule2 and 7,c7 the projected reporting1 recordkeeping1 and other compliance requirements of the proposed rule1 including-- 7i7 an estimate of the classes of small entities that will be subject to the requirement2 and 7ii7 the type of professional skills necessary for preparation of the report or record4 7d7 7#a7 ,each agency shall submit an annual report regarding the results of the review required under subsection 7a7 to-- 7,a7 ,congress2 and 7,b7 in the case of an agency that is not an independent regulatory agency 7as defined in section #cejb7e7 of title #dd71 the ,administrator of the ,office of ,information and ,regulatory ,affairs of the ,office of ,management and ,budget4 7#b7 ,each report required under paragraph 7#a7 shall include a description of any rule or small entity compliance guide with respect to which the agency made a determination of infeasibility under paragraph 7#e7 or 7#f7 of subsection 7c71 together with a detailed explanation of the reasons for the determination4 7e7 ,each agency shall publish in the ,federal ,register and on the ,web site of the agency a list of the rules and small entity compliance guides to be reviewed under the plan required under subsection 7a7 that includes-- 7#a7 a brief description of each rule or guide2 7#b7 for each rule1 the reason why the head of the agency determined that the rule has a significant economic impact on a substantial number of small entities 7without regard to whether the agency had prepared a final regulatory flexibility analysis for the rule72 and 7#c7 a request for comments from the public1 the ,chief ,counsel for ,advocacy of the ,small ,business ,administration1 and the ,regulatory ,enforcement ,ombudsman concerning the enforcement of the rules or publication of the guides4 7f7 7#a7 ,not later than #f months after each date described in paragraphs 7#a7 and 7#b7 of subsection 7b71 the ,inspector ,general for each agency shall-- 7,a7 determine whether the agency has conducted the review required under subsection 7b7 appropriately2 and 7,b7 notify the head of the agency of-- 7i7 the results of the determination under subparagraph 7,a72 and 7ii7 any issues preventing the ,inspector ,general from determining that the agency has conducted the review required under subsection 7b7 appropriately4 7#b7 7,a7 ,not later than #f months after the date on which the head of an agency receives a notice under paragraph 7#a77;,b7 that the agency has not conducted the review required under subsection 7b7 appropriately1 the agency shall address the issues identified in the notice4 7,b7 ,not later than #cj days after the last day of the #f-month period described in subparagraph 7,a71 the ,inspector ,general for an agency that receives a notice described in subparagraph 7,a7 shall-- 7i7 determine whether the agency has addressed the issues identified in the notice2 and 7ii7 notify ,congress if the ,inspector ,general determines that the agency has not addressed the issues identified in the notice4 7,c7 ,not later than #cj days after the date on which the ,inspector ,general for an agency transmits a notice under subparagraph 7,b77ii71 an amount equal to #a percent of the amount appropriated for the fiscal year to the appropriations account of the agency that is used to pay salaries shall be rescinded4 7,d7 ,nothing in this paragraph may be construed to prevent ,congress from acting to prevent a rescission under subparagraph 7,c74 4 7c7 ,sunset of new small business regulations 7#a7 ,in general ,except as provided in paragraph 7#b7 and beginning on the date of enactment of this ,act1 each covered rule promulgated by an agency shall cease to have effect on the date that is #g years after the date on which the final version of the covered rule is published4 7#b7 ,extension of rule 7,a7 ,in general ,before the end of the #g-year period described in paragraph 7#a71 an agency may take action to renew a covered rule in accordance with the process described in subparagraph 7,b7 and if such action is taken1 the covered rule shall remain in effect until modified or repealed by the agency action or statute4 7,b7 ,renewal process 7i7 ,in general ,an agency may renew a covered rule by using the notice and comment rulemaking process4 7ii7 ,requirements ,in conducting a rulemaking to renew a covered rule under clause 7i71 an agency shall-- 7,i7 solicit and respond to public comment from entities affected by the covered rule2 7,,ii7 compare the projected costs of the covered rule to the actual costs realized by implementation of the covered rule and determine whether modifications can be made to the covered rule to lower the cost of the covered rule2 7,,iii7 consider whether any regulatory alternatives exist that would accomplish the same regulatory objective as the covered rule with less of an impact on affected small entities2 and 7,,iv7 make modifications to the covered rule1 if necessary1 to reflect-- 7aa7 comments solicited under subclause 7,i72 7bb7 modifications described in subclause 7,,ii72 and 7cc7 any regulatory alternatives described in subclause 7,,iii74 ,,iii ,death ,tax ,repeal #cja4 ,short title ,this title may be cited as the ,death ,tax ,repeal ,act of #bjaf4 #cjb4 ,repeal of estate and generation-skipping transfer taxes 7a7 ,estate ,tax ,repeal ,subchapter ,c of chapter #aa of subtitle ,b of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new section3 #bbaj4 ,termination 7a7 ,in general ,except as provided in subsection 7b71 this chapter shall not apply to the estates of decedents dying on or after the date of the enactment of the ,death ,tax ,repeal ,act of #bjaf4 7b7 ,certain ,distributions ,from ,qualified ,domestic ,trusts ,in applying section #bjef;,a with respect to the surviving spouse of a decedent dying before the date of the enactment of the ,death ,tax ,repeal ,act of #bjaf-- 7#a7 section #bjef;,a7b77#a77;,a7 shall not apply to distributions made after the #aj-year period beginning on such date1 and 7#b7 section #bjef;,a7b77#a77;,b7 shall not apply on or after such date4 4 7b7 ,generation-,skipping ,transfer ,tax ,repeal ,subchapter ,g of chapter #ac of subtitle ,b of such ,code is amended by adding at the end the following new section3 #bffd4 ,termination ,this chapter shall not apply to generation-skipping transfers on or after the date of the enactment of the ,death ,tax ,repeal ,act of #bjaf4 4 7c7 ,conforming ,amendments 7#a7 ,the table of sections for subchapter ,c of chapter #aa of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new item3 ,sec4 #bbaj4 ,termination4 4 7#b7 ,the table of sections for subchapter ,g of chapter #ac of such ,code is amended by adding at the end the following new item3 ,sec4 #bffd4 ,termination4 4 7d7 ,effective ,date ,the amendments made by this section shall apply to the estates of decedents dying1 and generation-skipping transfers1 after the date of the enactment of this ,act4 #cjc4 ,modifications of gift tax 7a7 ,computation of gift tax ,subsection 7a7 of section #bejb of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7a7 ,computation of tax 7#a7 ,in general ,the tax imposed by section #beja for each calendar year shall be an amount equal to the excess of-- 7,a7 a tentative tax1 computed under paragraph 7#b71 on the aggregate sum of the taxable gifts for such calendar year and for each of the preceding calendar periods1 over 7,b7 a tentative tax1 computed under paragraph 7#b71 on the aggregate sum of the taxable gifts for each of the preceding calendar periods4 7#b7 ,rate schedule ,if the amount with respect to which the tentative tax to be computed is3,the tentative tax is3,not over #aj1jjjah of such amount4,over #aj1jjj but not over #bj1jjja1hjj1 plus #bj of the excess over #aj1jjj4,over #bj1jjj but not over #dj1jjjc1hjj1 plus #bb of the excess over #bj1jjj4,over #dj1jjj but not over #fj1jjjh1bjj1 plus #bd of the excess over #dj1jjj4,over #fj1jjj but not over #hj1jjjac1jjj1 plus #bf of the excess over #fj1jjj4,over #hj1jjj but not over #ajj1jjjah1bjj1 plus #bh of the excess over #hj1jjj4,over #ajj1jjj but not over #aej1jjjbc1hjj1 plus #cj of the excess over #ajj1jjj4,over #aej1jjj but not over #bej1jjjch1hjj1 plus #cb of the excess over #aej1jjj4,over #bej1jjj but not over #ejj1jjjgj1hjj1 plus #cd of the excess over #bej1jjj4,over #ejj1jjjaee1hjj1 plus #ce of the excess over #ejj1jjj4 4 7b7 ,treatment of ,certain ,transfers in ,trust ,section #beaa of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subsection3 7c7 ,treatment of ,certain ,transfers in ,trust ,notwithstanding any other provision of this section and except as provided in regulations1 a transfer in trust shall be treated as a taxable gift under section #bejc1 unless the trust is treated as wholly owned by the donor or the donor's spouse under subpart ,e of part ,i of subchapter ,j of chapter #a4 4 7c7 ,lifetime gift exemption 7#a7 ,in general ,paragraph 7#a7 of section #beje7;a7 of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7#a7 the amount of the tentative tax which would be determined under the rate schedule set forth in section #bejb7;a77#b7 if the amount with respect to which such tentative tax is to be computed were #e1jjj1jjj1 reduced by 4 7#b7 ,inflation adjustment ,section #beje of such ,code is amended by adding at the end the following new subsection3 7d7 ,inflation adjustment 7#a7 ,in general ,in the case of any calendar year after #bjaa1 the dollar amount in subsection 7a77#a7 shall be increased by an amount equal to-- 7,a7 such dollar amount1 multiplied by 7,b7 the cost-of-living adjustment determined under section #a7;f77#c7 for such calendar year by substituting calendar year #bjaj for calendar year #aiib in subparagraph 7,b7 thereof4 7#b7 ,rounding ,if any amount as adjusted under paragraph 7#a7 is not a multiple of #aj1jjj1 such amount shall be rounded to the nearest multiple of #aj1jjj4 4 7d7 ,conforming amendments 7#a7 ,section #beje7;a7 of such ,code is amended by striking the last sentence4 7#b7 ,the heading for section #beje of such ,code is amended by striking ,unified4 7#c7 ,the item in the table of sections for subchapter ,a of chapter #ab of such ,code relating to section #beje is amended to read as follows3 ,sec4 #beje4 ,credit against gift tax4 4 7e7 ,effective date ,the amendments made by this section shall apply to gifts made on or after the date of the enactment of this ,act4 7f7 ,transition rule 7#a7 ,in general ,for purposes of applying sections #ajae7;d71 #bejb1 and #beje of the ,internal ,revenue ,code of #aihf1 the calendar year in which this ,act is enacted shall be treated as #b separate calendar years one of which ends on the day before the date of the enactment of this ,act and the other of which begins on such date of enactment4 7#b7 ,application of section #bejd7;b7 ,for purposes of applying section #bejd7;b7 of the ,internal ,revenue ,code of #aihf1 the calendar year in which this ,act is enacted shall be treated as #a preceding calendar period4 ,,iv ,healthcare3 expanding choice and lowering costs #dja4 ,findings and purpose 7a7 ,findings 7#a7 ,effect on health care access and costs ,congress finds that the current civil justice system in the ,united ,states is adversely affecting patient access to health care services1 better patient care1 and cost-efficient health care1 in that the health care liability system is-- 7,a7 a costly and ineffective mechanism for resolving claims of health care liability and compensating injured patients1 and 7,b7 a deterrent to the sharing of information among health care professionals1 which impedes efforts to improve patient safety and quality of care4 7#b7 ,effect on interstate commerce ,congress finds that the health care and insurance industries are industries affecting interstate commerce and the health care liability litigation systems existing throughout the ,united ,states are activities that affect interstate commerce by contributing to the high costs of health care and premiums for health care liability insurance purchased by health care system providers4 7#c7 ,effect on federal spending ,congress finds that the health care liability litigation systems existing throughout the ,united ,states have a significant effect on the amount1 distribution1 and use of ,federal funds because of-- 7,a7 the large number of individuals who receive health care benefits under programs operated or financed by the ,federal ,government2 7,b7 the large number of individuals who benefit because of the exclusion from ,federal taxes of the amounts spent to provide them with health insurance benefits2 and 7,c7 the large number of health care providers who provide items or services for which the ,federal ,government makes payments4 7b7 ,purpose ,it is the purpose of this title to implement reasonable1 comprehensive1 and effective health care liability reforms designed to-- 7#a7 improve the availability of health care services in cases in which health care liability actions have been shown to be a factor in the decreased availability of services2 7#b7 reduce the incidence of defensive medicine and lower the cost of health care liability insurance1 all of which contribute to the escalation of health care costs2 7#c7 ensure that persons with meritorious health care injury claims receive fair and adequate compensation1 including reasonable noneconomic damages2 7#d7 improve the fairness and cost-effectiveness of the current health care liability system in the ,united ,states to resolve disputes over1 and provide compensation for1 health care liability by reducing uncertainty in the amount of compensation provided to injured individuals2 and 7#e7 provide an increased sharing of information in the health care system which will reduce unintended injury and improve patient care4 #djb4 ,encouraging speedy resolution of claims 7a7 ,actions by adults 7#a7 ,in general ,except as provided in paragraph 7#b71 no health care lawsuit may be commenced after the earlier of-- 7,a7 the expiration of the #c-year period beginning on the date of the manifestation of injury2 or 7,b7 the expiration of the #a-year period beginning on the date on which the claimant discovers1 or through the use of reasonable diligence should have discovered1 the injury4 7#b7 ,exception ,a health care lawsuit may be commenced after the expiration of the #c-year period described in paragraph 7#a7 if the claimant demonstrates-- 7,a7 fraud2 7,b7 intentional concealment2 or 7,c7 the presence of a foreign body1 which has no therapeutic or diagnostic purpose or effect1 in the person of the injured person4 7b7 ,actions by a minor 7#a7 ,in general ,except as provided in paragraph 7#b71 a health care lawsuit by a minor shall be commenced not later than #c years after the date of the alleged manifestation of injury except that actions by a minor under the full age of #f years shall be commenced within #c years of manifestation of injury or prior to the minor's #hth birthday1 whichever provides a longer period4 7#b7 ,exception ,the limitation in paragraph 7#a7 shall be tolled for minors for any period during which a parent or guardian and a health care provider or health care organization have committed fraud or collusion in the failure to bring an action on behalf of the injured minor4 #djc4 ,compensating patient injury 7a7 ,unlimited amount of damages for actual economic losses in health care lawsuits ,notwithstanding the limitation in subsection 7b71 in any health care lawsuit1 nothing in this title shall limit the recovery by a claimant of the full amount of the available economic damages4 7b7 ,additional noneconomic damages ,in any health care lawsuit1 the amount of noneconomic damages1 if available1 may be not more than #bej1jjj1 regardless of the number of parties against whom the action is brought or the number of separate claims or actions brought with respect to the same injury4 7c7 ,no discount of award for noneconomic damages 7#a7 ,in general ,for purposes of applying the limitation in subsection 7b71 future noneconomic damages shall not be discounted to present value4 7#b7 ,jury not informed ,the jury shall not be informed about the maximum award for noneconomic damages4 7#c7 ,reduction in award ,an award for noneconomic damages more than #bej1jjj shall be reduced either before the entry of judgment1 or by amendment of the judgment after entry of judgment1 and such reduction shall be made before accounting for any other reduction in damages required by law4 7#d7 ,separate awards ,if separate awards are rendered for past and future noneconomic damages and the combined awards are more than #bej1jjj1 the future noneconomic damages shall be reduced first4 7d7 ,fair share rule 7#a7 ,in general ,in any health care lawsuit1 each party shall be liable for that party's several share of any damages only and not for the share of any other person4 7#b7 ,proportion to percentage of responsibility ,each party shall be liable only for the amount of damages allocated to such party in direct proportion to such party's percentage of responsibility4 7#c7 ,separate judgments ,whenever a judgment of liability is rendered as to any party1 a separate judgment shall be rendered against each such party for the amount allocated to such party4 7#d7 ,determination ,for purposes of this section1 the trier of fact shall determine the proportion of responsibility of each party for the harm to the claimant4 #djd4 ,maximizing patient recovery 7a7 ,court supervision of share of damages actually paid to claimants 7#a7 ,in general ,in any health care lawsuit1 the court shall supervise the arrangements for payment of damages to protect against conflicts of interest that may have the effect of reducing the amount of damages awarded that are actually paid to claimants4 7#b7 ,contingent fees 7,a7 ,in general ,in particular1 in any health care lawsuit in which the attorney for a party claims a financial stake in the outcome by virtue of a contingent fee1 the court shall have the power to restrict the payment of a claimant's damage recovery to such attorney1 and to redirect such damages to the claimant based upon the interests of justice and principles of equity4 7,b7 ,maximum ,in no event shall the total of all contingent fees for representing all claimants in a health care lawsuit exceed the following limits3 7i7 #dj percent of the first #ej1jjj recovered by all such claimants4 7ii7 #cca_/c percent of the next #ej1jjj recovered by all such claimants4 7iii7 #be percent of the next #ejj1jjj recovered by all such claimants4 7iv7 #ae percent of any amount by which the recovery by all such claimants is in excess of #fjj1jjj4 7b7 ,applicability 7#a7 ,in general ,the limitations in this section shall apply whether the recovery is by judgment1 settlement1 mediation1 arbitration1 or any other form of alternative dispute resolution4 7#b7 ,minor or incompetent persons ,in a health care lawsuit involving a minor or incompetent person1 a court retains the authority to authorize or approve a fee that is less than the maximum permitted under this section4 7#c7 ,court supervision ,the requirement for court supervision in paragraphs 7#a7 and 7#b7 of subsection 7a7 shall apply only in civil actions4 #dje4 ,additional health benefits 7a7 ,in general ,in any health care lawsuit involving injury or wrongful death1 any party may introduce evidence of collateral source benefits4 7b7 ,election ,if a party elects to introduce such evidence1 any opposing party may introduce evidence of any amount paid or contributed or reasonably likely to be paid or contributed in the future by or on behalf of the opposing party to secure the right to such collateral source benefits4 7c7 ,providers of collateral benefits ,no provider of collateral source benefits shall recover any amount against the claimant or receive any lien or credit against the claimant's recovery or be equitably or legally subrogated to the right of the claimant in a health care lawsuit involving injury or wrongful death4 7d7 ,application ,this section-- 7#a7 shall apply to any health care lawsuit that is settled as well as a health care lawsuit that is resolved by a fact finder2 and 7#b7 shall not apply to section #ahfb7;b7 of the ,social ,security ,act 7#db ,u4,s4,c4 #aciey7b77 or section #aijb7;a77#be7 of such ,act 7#db ,u4,s4,c4 #acif;a7a77#be774 #djf4 ,punitive damages 7a7 ,in general 7#a7 ,malicious intent or deliberate failure ,punitive damages may1 if otherwise permitted by applicable ,state or ,federal law1 be awarded against any person in a health care lawsuit only if it is proven by clear and convincing evidence that such person acted with malicious intent to injure the claimant1 or that such person deliberately failed to avoid unnecessary injury that such person knew the claimant was substantially certain to suffer4 7#b7 ,no judgment for compensatory damages ,in any health care lawsuit for which no judgment for compensatory damages is rendered against such person1 no punitive damages may be awarded with respect to the claim in such lawsuit4 7#c7 ,demand for punitive damages ,no demand for punitive damages shall be included in a health care lawsuit as initially filed4 7#d7 ,amended pleading ,a court may allow a claimant to file an amended pleading for punitive damages only upon a motion by the claimant and after a finding by the court1 upon review of supporting and opposing affidavits or after a hearing1 after weighing the evidence1 that the claimant has established by a substantial probability that the claimant will prevail on the claim for punitive damages4 7#e7 ,separate proceedings 7,a7 ,in general ,at the request of any party in a health care lawsuit1 the trier of fact shall consider in a separate proceeding-- 7i7 whether punitive damages are to be awarded and the amount of such award2 and 7ii7 the amount of punitive damages following a determination of punitive liability4 7,b7 ,relevant evidence ,if a separate proceeding is requested1 evidence relevant only to the claim for punitive damages1 as determined by applicable ,state law1 shall be inadmissible in any proceeding to determine whether compensatory damages are to be awarded4 7b7 ,determining ,amount of ,punitive ,damages 7#a7 ,factors considered ,in determining the amount of punitive damages1 if awarded1 in a health care lawsuit1 the trier of fact shall consider only the following3 7,a7 ,the severity of the harm caused by the conduct of such party4 7,b7 ,the duration of the conduct or any concealment of it by such party4 7,c7 ,the profitability of the conduct to such party4 7,d7 ,the number of products sold or medical procedures rendered for compensation1 as the case may be1 by such party1 of the kind causing the harm complained of by the claimant4 7,e7 ,any criminal penalties imposed on such party1 as a result of the conduct complained of by the claimant4 7,f7 ,the amount of any civil fines assessed against such party as a result of the conduct complained of by the claimant4 7#b7 ,maximum award ,the amount of punitive damages1 if awarded1 in a health care lawsuit may be as much as #bej1jjj or as much as two times the amount of economic damages awarded1 whichever is greater4 ,the jury shall not be informed of this limitation4 7c7 ,no ,punitive ,damages for ,products ,that ,comply ,with ,,fda ,standards 7#a7 ,liability of certain manufacturers1 distributors1 and suppliers 7,a7 ,in general ,no punitive damages may be awarded against the manufacturer or distributor of a medical product1 or a supplier of any component or raw material of such medical product1 based on a claim that such product caused the claimant's harm where-- 7i7 7,i7 such medical product was subject to premarket approval1 clearance1 or licensure by the ,food and ,drug ,administration with respect to the safety of the formulation or performance of the aspect of such medical product which caused the claimant's harm or the adequacy of the packaging or labeling of such medical product2 and 7,,ii7 such medical product was so approved1 cleared1 or licensed2 or 7ii7 such medical product is generally recognized among qualified experts as safe and effective pursuant to conditions established by the ,food and ,drug ,administration and applicable ,food and ,drug ,administration regulations1 including without limitation those related to packaging and labeling1 unless the ,food and ,drug ,administration has determined that such medical product was not manufactured or distributed in substantial compliance with applicable ,food and ,drug ,administration statutes and regulations4 7,b7 ,rule of construction ,subparagraph 7,a7 may not be construed as establishing the obligation of the ,food and ,drug ,administration to demonstrate affirmatively that a manufacturer1 distributor1 or supplier referred to in such subparagraph meets any of the conditions described in such subparagraph4 7#b7 ,liability of health care providers 7,a7 ,in general ,a health care provider who prescribes1 or who dispenses pursuant to a prescription1 a medical product approved1 licensed1 or cleared by the ,food and ,drug ,administration shall not be named as a party to a product liability lawsuit involving such product and shall not be liable to a claimant in a class action lawsuit against the manufacturer1 distributor1 or seller of such product4 7,b7 ,consolidation ,nothing in this paragraph prevents a court from consolidating cases involving health care providers and cases involving products liability claims against the manufacturer1 distributor1 or product seller of such medical product4 7#c7 ,packaging ,in a health care lawsuit for harm which is alleged to relate to the adequacy of the packaging or labeling of a drug which is required to have tamper-resistant packaging under regulations of the ,secretary of ,health and ,human ,services 7including labeling regulations related to such packaging71 the manufacturer or product seller of the drug shall not be held liable for punitive damages unless such packaging or labeling is found by the trier of fact by clear and convincing evidence to be substantially out of compliance with such regulations4 7#d7 ,exception ,paragraph 7#a7 shall not apply with respect to any health care lawsuit in which-- 7,a7 a person1 before or after premarket approval1 clearance1 or licensure of such medical product1 knowingly misrepresented to or withheld from the ,food and ,drug ,administration information that is required to be submitted under the ,federal ,food1 ,drug1 and ,cosmetic ,act 7#ba ,u4,s4,c4 #cja et seq47 or section #cea of the ,public ,health ,service ,act 7#db ,u4,s4,c4 #bfb7 that is material and is causally related to the harm which the claimant allegedly suffered2 or 7,b7 a person made an illegal payment to an official of the ,food and ,drug ,administration for the purpose of either securing or maintaining approval1 clearance1 or licensure of such medical product4 #djg4 ,authorization of payment of future damages to claimants in health care lawsuits 7a7 ,in general ,in any health care lawsuit1 if an award of future damages1 without reduction to present value1 equaling or exceeding #ej1jjj is made against a party with sufficient insurance or other assets to fund a periodic payment of such a judgment1 the court shall1 at the request of any party1 enter a judgment ordering that the future damages be paid by periodic payments4 ,in any health care lawsuit1 the court may be guided by the ,uniform ,periodic ,payment of ,judgments ,act promulgated by the ,national ,conference of ,commissioners on ,uniform ,state ,laws4 7b7 ,applicability ,this section applies to all actions which have not been first set for trial or retrial before the date of the enactment of this title4 #djh4 ,definitions ,in this title3 7#a7 ,alternative dispute resolution system2 ,,adr ,the term alternative dispute resolution system or ,,adr means a system that provides for the resolution of health care lawsuits in a manner other than through a civil action brought in a ,state or ,federal court4 7#b7 ,claimant ,the term claimant means any person who brings a health care lawsuit1 including a person who asserts or claims a right to legal or equitable contribution1 indemnity1 or subrogation1 arising out of a health care liability claim or action1 and any person on whose behalf such a claim is asserted or such an action is brought1 whether deceased1 incompetent1 or a minor4 7#c7 ,collateral source benefits ,the term collateral source benefits means any amount paid or reasonably likely to be paid in the future to1 or on behalf of1 the claimant1 or any service1 product1 or other benefit provided or reasonably likely to be provided in the future to1 or on behalf of1 the claimant1 as a result of the injury or wrongful death1 pursuant to-- 7,a7 any ,state or ,federal health1 sickness1 income-disability1 accident1 or workers' compensation law2 7,b7 any health1 sickness1 income-disability1 or accident insurance that provides health benefits or income-disability coverage2 7,c7 any contract or agreement of any group1 organization1 partnership1 or corporation to provide1 pay for1 or reimburse the cost of medical1 hospital1 dental1 or income-disability benefits2 and 7,d7 any other publicly or privately funded program4 7#d7 ,compensatory damages ,the term compensatory damages means objectively verifiable monetary losses incurred as a result of the provision of1 use of1 or payment for 7or failure to provide1 use1 or pay for7 health care services or medical products1 such as past and future medical expenses1 loss of past and future earnings1 cost of obtaining domestic services1 loss of employment1 and loss of business or employment opportunities1 damages for physical and emotional pain1 suffering1 inconvenience1 physical impairment1 mental anguish1 disfigurement1 loss of enjoyment of life1 loss of society and companionship1 loss of consortium 7other than loss of domestic service71 hedonic damages1 injury to reputation1 and all other nonpecuniary losses of any kind or nature4 ,the term compensatory damages includes economic damages and noneconomic damages1 as such terms are defined in this section4 7#e7 ,contingent fee ,the term contingent fee includes all compensation to any person or persons which is payable only if a recovery is effected on behalf of one or more claimants4 7#f7 ,economic damages ,the term economic damages means objectively verifiable monetary losses incurred as a result of the provision of1 use of1 or payment for 7or failure to provide1 use1 or pay for7 health care services or medical products1 such as past and future medical expenses1 loss of past and future earnings1 cost of obtaining domestic services1 loss of employment1 and loss of business or employment opportunities4 7#g7 ,health care lawsuit ,the term health care lawsuit means any health care liability claim concerning the provision of health care goods or services or any medical product affecting interstate commerce1 or any health care liability action concerning the provision of health care goods or services or any medical product affecting interstate commerce1 brought in a ,state or ,federal court or pursuant to an alternative dispute resolution system1 against a health care provider1 a health care organization1 or the manufacturer1 distributor1 supplier1 marketer1 promoter1 or seller of a medical product1 regardless of the theory of liability on which the claim is based1 or the number of claimants1 plaintiffs1 defendants1 or other parties1 or the number of claims or causes of action1 in which the claimant alleges a health care liability claim4 ,such term does not include a claim or action which is based on criminal liability2 which seeks civil fines or penalties paid to ,federal1 ,state1 or local government2 or which is grounded in antitrust4 7#h7 ,health care liability action ,the term health care liability action means a civil action brought in a ,state or ,federal court or pursuant to an alternative dispute resolution system1 against a health care provider1 a health care organization1 or the manufacturer1 distributor1 supplier1 marketer1 promoter1 or seller of a medical product1 regardless of the theory of liability on which the claim is based1 or the number of plaintiffs1 defendants1 or other parties1 or the number of causes of action1 in which the claimant alleges a health care liability claim4 7#i7 ,health care liability claim ,the term health care liability claim means a demand by any person1 whether or not pursuant to ,,adr1 against a health care provider1 health care organization1 or the manufacturer1 distributor1 supplier1 marketer1 promoter1 or seller of a medical product1 including1 but not limited to1 third-party claims1 cross-claims1 counter-claims1 or contribution claims1 which are based upon the provision of1 use of1 or payment for 7or the failure to provide1 use1 or pay for7 health care services or medical products1 regardless of the theory of liability on which the claim is based1 or the number of plaintiffs1 defendants1 or other parties1 or the number of causes of action4 7#aj7 ,health care organization ,the term health care organization means any person or entity which is obligated to provide or pay for health benefits under any health plan1 including any person or entity acting under a contract or arrangement with a health care organization to provide or administer any health benefit4 7#aa7 ,health care provider ,the term health care provider means any person or entity required by ,state or ,federal laws or regulations to be licensed1 registered1 or certified to provide health care services1 and being either so licensed1 registered1 or certified1 or exempted from such requirement by other statute or regulation4 7#ab7 ,health care goods or services ,the term health care goods or services means any goods or services provided by a health care organization1 provider1 or by any individual working under the supervision of a health care provider1 that relates to the diagnosis1 prevention1 or treatment of any human disease or impairment1 or the assessment or care of the health of human beings4 7#ac7 ,malicious intent to injure ,the term malicious intent to injure means intentionally causing or attempting to cause physical injury other than providing health care goods or services4 7#ad7 ,medical product ,the term medical product means a drug1 device1 or biological product intended for humans1 and the terms drug1 device1 and biological product have the meanings given such terms in sections #bja7;g77#a7 and #bja7;h7 of the ,federal ,food1 ,drug1 and ,cosmetic ,act 7#ba ,u4,s4,c4 #cba7;g77#a7 and 7h77 and section #cea7;a7 of the ,public ,health ,service ,act 7#db ,u4,s4,c4 #bfb7;a771 respectively1 including any component or raw material used therein1 but excluding health care services4 7#ae7 ,noneconomic damages ,the term noneconomic damages means damages for physical and emotional pain1 suffering1 inconvenience1 physical impairment1 mental anguish1 disfigurement1 loss of enjoyment of life1 loss of society and companionship1 loss of consortium 7other than loss of domestic service71 hedonic damages1 injury to reputation1 and all other nonpecuniary losses of any kind or nature4 7#af7 ,punitive damages ,the term punitive damages means damages awarded1 for the purpose of punishment or deterrence1 and not solely for compensatory purposes1 against a health care provider1 health care organization1 or a manufacturer1 distributor1 or supplier of a medical product4 ,punitive damages are neither economic nor noneconomic damages4 7#ag7 ,recovery ,the term recovery means the net sum recovered after deducting any disbursements or costs incurred in connection with prosecution or settlement of the claim1 including all costs paid or advanced by any person4 ,costs of health care incurred by the plaintiff and the attorneys' office overhead costs or charges for legal services are not deductible disbursements or costs for such purpose4 7#ah7 ,state ,the term ,state means each of the several ,states1 the ,district of ,columbia1 the ,commonwealth of ,puerto ,rico1 the ,united ,states ,virgin ,islands1 ,guam1 ,american ,samoa1 the ,commonwealth of the ,northern ,mariana ,islands1 the ,trust ,territory of the ,pacific ,islands1 and any other territory or possession of the ,united ,states1 or any political subdivision thereof4 #dji4 ,effect on other laws 7a7 ,vaccine ,injury 7#a7 ,to the extent that title ,,xxi of the ,public ,health ,service ,act 7#db ,u4,s4,c4 #cjj;aa-#a et seq47 establishes a ,federal rule of law applicable to a civil action brought for a vaccine-related injury or death-- 7,a7 this title does not affect the application of the rule of law applicable to such an action2 and 7,b7 any rule of law prescribed by this title in conflict with a rule of law of title ,,xxi of the ,public ,health ,service ,act 7#db ,u4,s4,c4 #cjj;aa-#a et seq47 shall not apply to such action4 7#b7 ,if there is an aspect of a civil action brought for a vaccine-related injury or death to which a ,federal rule of law under title ,,xxi of the ,public ,health ,service ,act 7#db ,u4,s4,c4 #cjj;aa-#a et seq47 does not apply1 then this title or otherwise applicable law 7as determined under this title7 will apply to such aspect of such action4 7b7 ,other ,federal law ,except as provided in this section1 nothing in this title shall be deemed to affect any defense available to a defendant in a health care lawsuit or action under any other provision of ,federal law4 #daj4 ,state flexibility and protection of ,states' rights 7a7 ,health care lawsuits ,the provisions governing health care lawsuits set forth in this title preempt1 subject to subsections 7b7 and 7c71 ,state law to the extent that ,state law prevents the application of any provisions of law established by or under this title4 ,the provisions governing health care lawsuits set forth in this title supersede chapter #aga of title #bh1 ,united ,states ,code1 to the extent that such chapter-- 7#a7 provides for a greater amount of damages or contingent fees1 a longer period in which a health care lawsuit may be commenced1 or a reduced applicability or scope of periodic payment of future damages1 than provided in this title2 or 7#b7 prohibits the introduction of evidence regarding collateral source benefits1 or mandates or permits subrogation or a lien on collateral source benefits4 7b7 ,protection of ,states' rights and other laws 7#a7 ,in general ,any issue that is not governed by any provision of law established by or under this title 7including ,state standards of negligence7 shall be governed by otherwise applicable ,state or ,federal law4 7#b7 ,laws that provide greater protections ,this title shall not preempt or supersede any ,state or ,federal law that imposes greater procedural or substantive protections for health care providers and health care organizations from liability1 loss1 or damages than those provided by this title or create a cause of action4 7c7 ,state flexibility ,no provision of this title shall be construed to preempt-- 7#a7 any ,state law 7whether effective before1 on1 or after the date of the enactment of this title7 that specifies a particular monetary amount of compensatory or punitive damages 7or the total amount of damages7 that may be awarded in a health care lawsuit1 regardless of whether such monetary amount is greater or lesser than is provided for under this title1 notwithstanding section #djc7;a72 or 7#b7 any defense available to a party in a health care lawsuit under any other provision of ,state or ,federal law4 #daa4 ,applicability2 effective date ,this title shall apply to any health care lawsuit brought in a ,federal or ,state court1 or subject to an alternative dispute resolution system1 that is initiated on or after the date of the enactment of this title1 except that any health care lawsuit arising from an injury occurring prior to the date of the enactment of this title shall be governed by the applicable statute of limitations provisions in effect at the time the injury occurred4 #dab4 ,sense of ,congress ,it is the sense of ,congress that a health insurer should be liable for damages for harm caused when it makes a decision as to what care is medically necessary and appropriate4 #dac4 ,,seca tax deduction for health insurance costs 7a7 ,in general ,subsection 7l7 of section #afb of the ,internal ,revenue ,code of #aihf is amended by striking paragraph 7#d7 and by redesignating paragraph 7#e7 as paragraph 7#d74 7b7 ,effective date ,the amendment made by this section shall apply to taxable years beginning after the date of the enactment of this title4 ,v ,workforce ,integrity #eja4 ,verification under ,e-,verify ,program by telephone ,section #djd7;d7 of the ,illegal ,immigration ,reform and ,immigrant ,responsibility ,act of #aiif 7division ,c of ,public ,law #ajd-bjh2 #h ,u4,s4,c4 #acbd;a note7 is amended-- 7#a7 in paragraph 7#c71 by striking and at the end2 7#b7 in paragraph 7#d77;,c71 by striking the period at the end and inserting 2 and2 and 7#c7 by adding at the end the following3 7#e7 in such a manner that the confirmation or nonconfirmation may be provided by telephone4 4 #ejb4 ,grace period to correct paperwork ,any small business concern that violates any provision of the ,immigration and ,nationality ,act 7#h ,u4,s4,c4 #aaja et seq47 relating to the filing of an application1 petition1 or other paperwork1 resulting in the assessment of a fine or penalty shall not be subject to that fine or other penalty if that small business concern remedies that violation during the #cj-;day period beginning on the date on which notice of the violation is received by the small business concern4 ,,vi ,incentives for energy efficiency #fja4 ,extend the tax credit for residential energy-efficient property 7a7 ,extension of credit ,subsection 7h7 of section #be;,d of the ,internal ,revenue ,code of #aihf is amended by striking ,december #ca1 #bjaf 7,december #ca1 #bjba1 in the case of any qualified solar electric property expenditures and qualified solar water heating property expenditures7 and inserting ,december #ca1 #bjba4 7b7 ,effective date ,the amendment made by this section shall take effect on ,january #a1 #bjag4 #fjb4 ,make permanent the energy efficiency credit for existing homes ,section #be;,c of the ,internal ,revenue ,code of #aihf is amended by striking subsection 7g74 #fjc4 ,make permanent the energy efficiency commercial buildings deduction ,section #agi;,d of the ,internal ,revenue ,code of #aihf is amended by striking subsection 7h74 ,,vii ,guidance about new rules #gja4 ,guidance and advice about new rules 7a7 ,determination regarding impact of new rules 7#a7 ,in general ,the head of each department or agency of the ,federal ,government may not issue a rule until that head has conducted a study to determine whether the rule will have an unduly burdensome effect on small business concerns4 7#b7 ,guidance ,if the head of a department or agency of the ,federal ,government determines that the effect described in paragraph 7#a7 would occur1 the head shall1 not later than the date that is #c months after the date on which the determination is made1 submit to the ,administrator guidance on how that effect may be mitigated4 7b7 ,advice ,the ,administrator shall1 on request1 provide such other advice to small business concerns about those matters as the ,administrator determines appropriate4 7c7 ,publication ,the ,administrator shall publish and maintain all guidance received under subsection 7a7 and all advice provided under subsection 7b7 on the website of the ,administration1 in a manner that ensures the continuing availability of that guidance to small business concerns4 ,,viii ,small business provisions ,a ,small ,business ,general ,provisions #hja4 ,administration prohibited from capping executive compensation ,in carrying out any program under the ,small ,business ,act 7#ae ,u4,s4,c4 #fca et seq47 or the ,small ,business ,investment ,act of #aieh 7#ae ,u4,s4,c4 #ffa et seq471 the ,administrator may not impose any limit on executive compensation by any small business concern4 #hjb4 ,reduction of regulatory burden 7a7 ,,gao ,report ,not later than #i months after the date of enactment of this ,act1 the ,comptroller ,general of the ,united ,states shall submit to the ,administrator the results of a study of each regulation of each ,federal agency or department that determines the burden that each such regulation imposes on small business concerns4 7b7 ,,sba ,recommendations ,not later than #f months after receiving the report under subsection 7a71 the ,administrator shall publish and maintain on the public website of the ,administration recommendations on how to reduce the burden imposed by such regulations on small business concerns4 7c7 ,reduction of paperwork 7#a7 ,in general ,in carrying out any program under the ,small ,business ,act 7#ae ,u4,s4,c4 #fca et seq47 or the ,small ,business ,investment ,act of #aieh 7#ae ,u4,s4,c4 #ffa et seq471 the ,administrator1 acting through the ,chief ,counsel of the ,office of ,advocacy of the ,administration1 shall take any actions that the ,administrator determines appropriate to reduce the amount of paperwork1 including any application1 filing1 or petition1 that any ,federal department or agency may require a small business concern to complete4 7#b7 ,electronic and telephonic filing ,the actions taken by the ,administrator under paragraph 7#a7 shall include providing for the replacement of the paperwork described in that paragraph with electronic or telephone filing or reporting4 #hjc4 ,litigation burden on small business concerns to be limited to current levels ,it is the sense of ,congress that ,congress should not pass legislation amending substantive or procedural law if the amendment would cause more small business concerns to be involved in litigation4 #hjd4 ,expansion of volunteer representation and benchmark reports ,section #h7;b77#a77;,b7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcg7;b77#a77;,b77 is amended-- 7#a7 by inserting 7i7 after 7,b72 and 7#b7 by adding at the end the following3 7ii7 ,the ,administrator shall ensure that the ,service ,corps of ,retired ,executives-- 7,i7 carries out a plan to increase the number of mentors in the ,service ,corps of ,retired ,executives2 and 7,,ii7 annually reports to the ,administrator on the implementation of this subparagraph4 7iii7 ,the ,administrator shall ensure that the ,service ,corps of ,retired ,executives1 when evaluating the performance of the activities and the volunteers of the ,service ,corps of ,retired ,executives1 establishes benchmarks1 which shall include benchmarks relating to-- 7,i7 the number of hours spent mentoring by volunteers2 and 7,,ii7 the performance of the persons assisted by the ,service ,corps of ,retired ,executives4 7iv7 ,the ,service ,corps of ,retired ,executives shall annually report to the ,administrator on whether the benchmarks established under clause 7iii7 are being met4 4 #hje4 ,mentoring and networking ,section #h7;b77#a77;,b7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcg7;b77#a77;,b771 as amended by this ,act1 is further amended by adding at the end the following3 7v7 ,the ,administrator shall ensure that the ,service ,corps of ,retired ,executives establishes a mentoring program for small business concerns that provides individualized advice to each small business concern from a qualified counselor4 ,for purposes of this clause1 a qualified counselor is a counselor with not fewer than #aj years of experience in the industry sector or area of responsibility of the small business concern seeking advice4 7vi7 ,the ,administrator shall carry out a networking program through the ,service ,corps of ,retired ,executives that provides a small business concern with the opportunity to make business contacts in the industry or geographic region of the small business concern4 4 ,b ,small ,business ,goals #haa4 ,small business goals ,section #ae7;g7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fdd7;g77 is amended-- 7#a7 in paragraph 7#a77;,a77i71 by striking shall be established at not less than #bc percent and inserting except as provided in paragraph 7#d71 shall be established at not less than #cj percent2 and 7#b7 by adding at the end the following3 7#d7 7,a7 ,the ,president may authorize the ,national ,aeronautics and ,space ,administration and the ,department of ,energy to treat the ,governmentwide goal for participation by small business concerns as though such goal were #bc percent4 7,b7 ,not later than #fj days after providing an authorization under subparagraph 7,a71 the ,president shall provide notice to the ,office of ,advocacy4 4 #hab4 ,agency goal negotiation 7a7 ,negotiation ,section #ae7;g77#a77;,a7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fdd7;g77#a77;,a77 is amended1 in the matter preceding clause 7i71 by striking ,the ,president shall annually establish ,governmentwide goals for procurement contracts and inserting ,the ,president shall1 before the end of each fiscal year1 establish new ,governmentwide procurement goals for the following fiscal year for procurement contracts4 7b7 ,minimum level ,section #ae7;g77#a77;,b7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fdd7;g77#a77;,b77 is amended1 in the first sentence1 by inserting 1 which shall not be lower than the ,governmentwide goal1 after ,each agency shall have an annual goal4 #hac4 ,procedures and methods for goal achievement 7a7 ,goal responsibility ,section #ae7;g77#b77;,a7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fdd7;g77#b77;,a77 is amended by inserting ,the goals established by the head of each ,federal agency shall be apportioned within the ,federal agency to #a or more contracting offices 7as that term is defined in section #b4aja of title #dh1 ,code of ,federal ,regulations1 on the date of enactment of the ,small ,business ,bill of ,rights7 that reports to a career appointee in the ,senior ,executive ,service4 after the first sentence4 7b7 ,senior ,executive ,service 7#a7 ,purposes ,section #caca of title #e1 ,united ,states ,code1 is amended-- 7,a7 in paragraph 7#ac7 by striking the and at the end2 7,b7 in paragraph 7#ad7 by striking the period at the end and inserting 2 and2 and 7,c7 by adding at the end the following3 7#ae7 ensure that the ,government achieves the small business procurement goals under section #ae7;g7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fdd7;g774 4 7#b7 ,training ,section #ccif7;a7 of title #e1 ,united ,states ,code1 is amended by adding at the end the following3 ,the training provided to senior executives shall include ,federal procurement policy1 including the procurement provisions under the ,small ,business ,act 7#ae ,u4,s4,c4 #fca et seq4744 7#c7 ,limitation on sabbaticals ,section #ccif7;c77#b7 of title #e1 ,united ,states ,code1 is amended-- 7,a7 in subparagraph 7,b77iii7 by striking the and at the end2 7,b7 in subparagraph 7,c7 by striking the period at the end and inserting 2 or2 and 7,c7 by inserting after subparagraph 7,c7 the following3 7,d7 who oversees a contracting office that did not meet its small business procurement goals established annually in accordance with the procedures under section #ae7;g77#b7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fdd7;g77#b774 4 7#d7 ,limitation on incentive awards 7,a7 ,in general ,an employee in the ,senior ,executive ,service shall not be eligible for any incentive award specified in subchapter ,i of chapter #de of title #e1 ,united ,states ,code1 during a fiscal year if the contracting office which reports to that employee fails to meet the procurement goals established for the previous fiscal year in accordance with the procedures under section #ae7;g77#b7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fdd7;g77#b774 7,b7 ,supervisors ,any career or noncareer member of the ,senior ,executive ,service to whom an employee who is not eligible for an incentive award for a fiscal year under subparagraph 7,a7 reports shall not be eligible for any incentive award specified in subchapter ,i of chapter #de of title #e1 ,united ,states ,code1 during that fiscal year4 #had4 ,reporting requirements ,section #ae7;h7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fdd7;h77 is amended by adding at the end the following3 7#d7 ,agency reports to ,congress 7,a7 ,in general ,not later than ,november #a of each fiscal year1 the head of each ,federal agency shall submit to ,congress a report providing the percentage of contracts awarded by that ,federal agency for the previous fiscal year that were awarded to small business concerns4 7,b7 ,failure to meet goals ,if the percentage reported under subparagraph 7,a7 for a fiscal year is less than the goal established by the head of the ,federal agency under subsection 7g71 the head of the ,federal agency shall include in the report-- 7i7 an explanation of why the ,federal agency did not reach the goal2 and 7ii7 a discussion of the actions the ,federal agency will take to ensure that the goal for the following fiscal year will be achieved4 4 ,c ,contract ,bundling #hba4 ,definitions of bundling of contract requirements ,section #c7o7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcb7o77 is amended to read as follows3 7o7 ,definitions of ,bundling of ,contract ,requirements and ,related ,terms ,in this ,act3 7#a7 ,bundled contract 7,a7 ,in general ,the term bundled contract means a contract or order that is entered into to meet procurement requirements that are consolidated in a bundling of contract requirements1 without regard to its designation by the procuring agency or whether a study of the effects of the solicitation on civilian or military personnel has been made4 7,b7 ,exceptions ,the term bundled contract does not include-- 7i7 a contract or order with an aggregate dollar value below the dollar threshold specified in paragraph 7#d72 or 7ii7 a contract or order that is entered into to meet procurement requirements1 all of which are exempted requirements under paragraph 7#e74 7#b7 ,bundling of contract requirements 7,a7 ,in general ,the term bundling of contract requirements means the use of any bundling methodology to satisfy #b or more procurement requirements for new or existing goods or services1 including any construction services1 that is likely to be unsuitable for award to a small business concern due to-- 7i7 the diversity1 size1 or specialized nature of the elements of the performance specified2 7ii7 the aggregate dollar value of the anticipated award2 7iii7 the geographical dispersion of the contract or order performance2 or 7iv7 any combination of the factors described in clauses 7i71 7ii71 and 7iii74 7,b7 ,exceptions ,the term does not include-- 7i7 the use of a bundling methodology for an anticipated award with an aggregate dollar value below the threshold specified in paragraph 7#d72 or 7ii7 the use of a bundling methodology to meet procurement requirements1 all of which are exempted under paragraph 7#e74 7#c7 ,bundling methodology ,the term bundling methodology means-- 7,a7 a solicitation to obtain offers for a single contract or order1 or a multiple award contract or order2 7,b7 a solicitation of offers for the issuance of a task or a delivery order under an existing single or multiple award contract or order2 or 7,c7 the creation of any new procurement requirements that permit a consolidation of contract or order requirements4 7#d7 ,dollar threshold ,the term dollar threshold means-- 7,a7 #fe1jjj1jjj if solely for construction services2 and 7,b7 #a1ejj1jjj in all other cases4 7#e7 ,exempted requirements ,the term exempted requirement means #a or more of the following3 7,a7 ,a procurement requirement solely for items that are not commercial items 7as the term commercial item is defined in section #d7ab7 of the ,office of ,federal ,procurement ,policy ,act 7#da ,u4,s4,c4 #djc7ab771 except this subparagraph shall not apply to any procurement requirement for a contract for goods or services provided by a business classified in sector #bc of the ,north ,american ,industrial ,classification ,system4 7,b7 ,a procurement requirement with respect to which a determination that it is unsuitable for award to a small business concern has previously been made by the agency4 ,the ,administrator shall have authority to review and reverse such a determination for purposes of this paragraph and1 if the ,administrator does reverse that determination1 the term exempted requirement shall not apply to that procurement requirement4 7#f7 ,procurement requirement ,the term procurement requirement means a determination by an agency that a specified good or service is needed to satisfy the mission of the agency4 4 #hbb4 ,justification 7a7 ,statement of bundled contract requirements ,section #ae7;a7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fdd7;a77 is amended-- 7#a7 by striking is in a quantity or estimated dollar value the magnitude of which renders small business prime contract participation unlikely and inserting would now be combined with other requirements for goods and services2 7#b7 by striking 7#b7 why delivery schedules and inserting 7#b7 the names1 addresses1 and size of the incumbent contract holders1 if applicable2 7#c7 a description of the industries that might be interested in bidding on the contract requirements2 7#d7 the number of small businesses listed in the industry categories that could be excluded from future bidding if the contract is combined or packaged1 including any small business bidders that had bid on previous procurement requirements that are included in the bundling of contract requirements2 7#e7 why delivery schedules2 7#c7 by striking 7#c7 why the proposed acquisition and inserting 7#f7 why the proposed acquisition2 7#d7 by striking 7#d7 why construction and inserting 7#g7 why construction2 7#e7 by striking 7#e7 why the agency and inserting 7#h7 why the agency2 7#f7 by inserting after justified4 the following3 ,the statement also shall set forth the proposed procurement strategy required by subsection 7e7 and1 if applicable1 the specifications required by subsection 7e77#c74 ,concurrently1 the statement shall be made available to the public1 including through dissemination in the ,federal contracting opportunities database42 and 7#g7 by inserting after prime contracting opportunities4 the following3 ,if no notification of the procurement and accompanying statement is received1 but the ,administrator determines that there is cause to believe the contract combines requirements or a contract 7single or multiple award7 or task or delivery order for construction services or includes unjustified bundling1 the ,administrator may demand that such a statement of work goods or services be completed by the procurement activity and sent to the ,procurement ,center ,representative and the solicitation process postponed for not less than #aj days but not more than #cj days to allow the ,administrator to review the statement and make recommendations as described in this section before procurement is continued44 7b7 ,substantial measurable benefits ,section #ae7;e77#b77;,c7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fdd7;e77,c77 is amended by adding at the end the following3 ,cost savings shall not include any reduction in the use of military interdepartmental purchase requests or any similar transfer funds among ,federal agencies for the use of a contract issued by another ,federal agency44 #hbc4 ,appeals ,section #ae7;a7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fdd7;a771 as amended by this ,act1 is further amended-- 7#a7 by striking ,if a proposed procurement includes in its statement and inserting ,if a proposed procurement would adversely affect #a or more small business concerns1 including the potential loss of an existing contract1 or if a proposed procurement includes in its statement2 and 7#b7 by inserting before ,whenever the ,administration and the contracting procurement agency fail to agree1 the following3 ,if a small business concern would be adversely affected1 directly or indirectly1 by the procurement as proposed1 and that small business concern or a trade association of which that small business concern is a member so requests1 the ,administrator may take action to further the interests of the small business concern44 #hbd4 ,third-party review ,section #gaje7;e7 of title #da1 ,united ,states ,code1 is amended by adding at the end the following3 7#c7 ,contract bundling 7,a7 ,in general ,whenever the head of a contracting agency makes a decision in accordance with section #ae7;a7 of the ,small ,business ,act concerning the ,administrator of the ,small ,business ,administration's challenge to a bundling of contract requirements1 the ,administrator1 within #aj days after such decision1 may file a challenge with the appropriate agency board of contract appeals4 7,b7 ,procedure ,the board shall provide the ,administrator and the head of the contracting agency the opportunity to provide their views on the disputed contract4 ,no oral testimony or oral argument shall be permitted4 ,the board shall render its decision not later than #cj days after the appeal has been filed4 ,the decision of the board shall be final4 4 ,d ,small ,business ,subcontracting #hca4 ,criminal violations ,section #ajja7;a7 of title #ah1 ,united ,states ,code1 is amended-- 7#a7 in paragraph 7#b71 by striking or at the end2 7#b7 in paragraph 7#c71 by adding or at the end2 7#c7 by inserting after paragraph 7#c7 the following3 7#d7 makes in writing or electronically a false statement concerning status as a small business concern 7as defined in section #c of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcb77 or compliance with the requirements of the ,small ,business ,act 7#ae ,u4,s4,c4 #fca et seq47 in an effort to obtain1 retain1 or complete a ,federal ,government contract2 2 and 7#d7 by adding at the end the following3 ,notwithstanding section #cega7;e71 for a violation of paragraph 7#d7 of this subsection1 the fine under this title shall be the total value of the contract or #a1jjj1jjj1 whichever is greater44