,i #aafth ,,congress #ast ,session ,h4 ,r4 #dcba ,,in ,,the ,,house ,,of ,,representatives ,september #ab1 #bjai,mr4 ,ryan introduced the following bill2 which was referred to the ,committee on ,energy and ,commerce1 and in addition to the ,committees on ,financial ,services1 and ,ways and ,means1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to eliminate lead-based pipe and tap hazards in housing1 and for other purposes4 #a4 ,short title2 table of contents 7a7 ,short title ,this ,act may be cited as the ,grants for ,eliminating the ,toxic ,hazard of ,environmental ,lead in ,our ,towns ,act of #bjai or the ,,get ,,the ,,lead ,,out ,act of #bjai 4 7b7 ,table of contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title2 table of contents4 ,sec4 #b4 ,purposes4 ,sec4 #c4 ,definitions4 ,title ,i--,lead-,based ,pipe ,hazard ,reduction ,sec4 #aja4 ,grants for lead-based pipe hazard reduction in housing4 ,sec4 #ajb4 ,evaluation and reduction of lead-based pipe hazards in federally assisted housing4 ,sec4 #ajc4 ,comprehensive housing affordability strategies4 ,sec4 #ajd4 ,task force on lead-based pipe hazard reduction and financing4 ,sec4 #aje4 ,national consultation on lead-based pipe hazard reduction4 ,sec4 #ajf4 ,guidelines for lead-based pipe hazard evaluation and reduction activities4 ,sec4 #ajg4 ,disclosure of information concerning lead upon transfer of residential property4 ,title ,,ii--,lead ,exposure ,reduction ,sec4 #bja4 ,lead-based pipe activities training and certification4 ,sec4 #bjb4 ,identification of dangerous levels of lead4 ,sec4 #bjc4 ,authorized ,state programs4 ,sec4 #bjd4 ,lead abatement and measurement4 ,sec4 #bje4 ,lead hazard information pamphlet4 ,sec4 #bjf4 ,regulations4 ,sec4 #bjg4 ,control of lead-based pipe hazards at ,federal facilities4 ,sec4 #bjh4 ,prohibited ,acts4 ,sec4 #bji4 ,relationship to other ,federal law4 ,sec4 #baj4 ,general provisions relating to administrative proceedings4 ,title ,,iii--,authorization of ,appropriations for ,lead ,hazard ,reduction ,sec4 #cja4 ,,hud grants for lead hazards reduction in housing4 ,sec4 #cjb4 ,,epa funding for lead exposure reduction4 ,title ,,iv--,revenue ,provisions ,sec4 #dja4 ,partnership interests transferred in connection with performance of services4 ,sec4 #djb4 ,special rules for partners providing investment management services to partnerships4 ,sec4 #djc4 ,return to pre-#bjah estate and gift tax basic exclusion amount4 #b4 ,purposes ,the purposes of this ,act are as follows3 7#a7 to develop a national strategy to build the infrastructure necessary to eliminate lead-based pipe and tap hazards in housing2 7#b7 to reorient the national approach to the presence of lead-based pipe and taps in public and private homes to implement1 on a priority basis1 a program to evaluate and reduce lead-based pipe hazards in the ,nation's building stock2 7#c7 to encourage effective action to prevent childhood lead poisoning by establishing a workable framework for lead-based pipe and tap hazard evaluation and reduction and by ending the current confusion over reasonable standards of care2 7#d7 to ensure and implement the definitions of lead hazards in section #adag of the ,safe ,drinking ,water ,act 7#db ,u4,s4,c4 #cjj;g-#f7 and ensure that the existence of lead-based pipe and taps hazards is taken into account in the development of ,federal ,government housing policies and in the sale1 rental and renovation of homes1 and apartments2 7#e7 to mobilize national resources expeditiously1 through a partnership among all levels of government and the private sector1 to develop the most promising1 cost-effective methods for evaluating and reducing lead-based pipe and tap hazards2 7#f7 to reduce the threat of childhood lead poisoning in housing owned1 assisted1 or transferred by the ,federal ,government2 and 7#g7 to educate the public concerning the hazards and sources of lead-based pipes and taps poisoning and steps to reduce and eliminate such hazards4 #c4 ,definitions ,for purposes of this ,act1 the following definitions shall apply3 7#a7 ,abatement ,the term abatement means any set of measures designed to permanently eliminate lead-based pipe hazards in accordance with standards established by appropriate ,federal agencies4 ,such term includes-- 7,a7 the removal of lead-based pipes and taps2 7,b7 all preparation1 cleanup1 disposal1 and post-abatement clearance testing activities associated with such measures2 and 7,c7 all repair to damages post-abatement4 7#b7 ,certified contractor ,the term certified contractor means-- 7,a7 a contractor1 inspector1 or supervisor who has completed a training program certified by the appropriate ,federal agency and has met any other requirements for certification or licensure established by such agency or who has been certified by any ,state through a program which has been found by such ,federal agency to be at least as rigorous as the ,federal certification program2 and 7,b7 workers or designers who have fully met training requirements established by the appropriate ,federal agency4 7#c7 ,contract for the purchase and sale of residential real property ,the term contract for the purchase and sale of residential real property means any contract or agreement in which one party agrees to purchase an interest in real property on which there is situated or more residential dwellings used or occupied1 or intended to be used or occupied1 in whole or in part1 as the home or residence of one or more persons4 7#d7 ,evaluation ,the term evaluation means risk assessment1 inspection1 or risk assessment and inspection4 7#e7 ,federally assisted housing ,the term federally assisted housing means residential dwellings receiving project-based assistance under programs including-- 7,a7 section #bba7;d77#c7 or #bcf of the ,national ,housing ,act 7#ab ,u4,s4,c4 #agael7d77#c72 #agaez-#a72 7,b7 section #aja of the ,housing and ,urban ,development ,act of #aife 7#ab ,u4,s4,c4 #agjas72 7,c7 section #h of the ,united ,states ,housing ,act of #aicg 7#db ,u4,s4,c4 #adcg;f72 and 7,d7 sections #ejb7;a71 #ejd1 #ead1 #eae1 #eaf1 and #ecc of the ,housing ,act of #aidi 7#db ,u4,s4,c4 #adgb7;a72 #adgd2 #adhd2 #adhe2 #adhf2 #adijm74 7#f7 ,federally owned housing ,the term federally owned housing means residential dwellings owned or managed by a ,federal agency1 or for which a ,federal agency is a trustee or conservator4 ,for the purpose of this paragraph1 the term ,federal agency includes the ,department of ,housing and ,urban ,development1 the ,rural ,housing ,service of the ,department of ,agriculture1 the ,federal ,deposit ,insurance ,corporation1 the ,general ,services ,administration1 the ,department of ,defense1 the ,department of ,veterans ,affairs1 the ,department of the ,interior1 the ,department of ,transportation1 and any other ,federal agency4 7#g7 ,federally supported work ,the term federally supported work means any lead hazard evaluation or reduction activities conducted in federally owned or assisted housing or funded in whole or in part through any financial assistance program of the ,department of ,housing and ,urban ,development1 the ,rural ,housing ,service of the ,department of ,agriculture1 or the ,department of ,veterans ,affairs4 7#h7 ,inspection ,the term inspection means an investigation to determine the presence of lead-based pipe or taps as provided in section #ada4hf of the regulations of the ,environmental ,protection ,agency 7#dj ,c4,f4,r4 #aha4df2 relating to monitoring requirements for lead and copper in tap water7 and the provision of a report explaining the results of the investigation4 7#i7 ,interim controls ,the term interim controls means a set of measures designed to reduce temporarily human exposure or likely exposure to lead-based pipe hazards1 including specialized cleaning1 repairs1 maintenance1 ongoing monitoring of lead-based pipe or potential hazards1 and the establishment and operation of management and resident education programs4 7#aj7 ,lead-based pipe ,the term lead-based pipe means any pipe1 including fittings1 taps1 fixtures1 solder1 and flux that does not satisfy the definition of lead-free established under section #adag of the ,safe ,drinking ,water ,act4 7#aa7 ,lead-based pipe hazards ,the term lead-based pipe hazards means any condition that causes exposure to lead from lead-based pipe that would result in adverse human health effects1 as established by the ,environmental ,protection ,agency4 7#ab7 ,mortgage loan ,the term mortgage loan includes any loan 7other than temporary financing such as a construction loan7 that-- 7,a7 is secured by a first lien on any interest in residential real property2 and 7,b7 either-- 7i7 is insured1 guaranteed1 made1 or assisted by the ,department of ,housing and ,urban ,development1 the ,department of ,veterans ,affairs1 or the ,rural ,housing ,service of the ,department of ,agriculture1 or by any other agency of the ,federal ,government2 or 7ii7 is intended to be sold by each originating mortgage institution to any federally chartered secondary mortgage market institution4 7#ac7 ,originating mortgage institution ,the term originating mortgage institution means a lender that provides mortgage loans4 7#ad7 ,priority housing ,the term priority housing means housing that qualifies as affordable housing under section #bae of the ,cranston-,gonzalez ,national ,affordable ,housing ,act 7#db ,u4,s4,c4 #abgde71 including housing that receives assistance under subsection 7b7 or 7o7 of section #h of the ,united ,states ,housing ,act of #aicg 7#db ,u4,s4,c4 #adcg;f74 7#ae7 ,public housing ,the term public housing has the meaning given such term in section #c7;b7 of the ,united ,states ,housing ,act of #aicg 7#db ,u4,s4,c4 #adcg;a7b774 7#af7 ,reduction ,the term reduction means measures designed to reduce or eliminate human exposure to lead-based pipe hazards through methods including interim controls and abatement4 7#ag7 ,residential dwelling ,the term residential dwelling means-- 7,a7 a single-family dwelling1 including attached structures such as porches and stoops2 or 7,b7 a single-family dwelling unit in a structure that contains more than #a separate residential dwelling unit1 in which each such unit is used or occupied1 or intended to be used or occupied1 in whole or in part1 as the home or residence of one or more persons4 7#ah7 ,residential real property ,the term residential real property means real property on which there is situated one or more residential dwellings used or occupied1 or intended to be used or occupied1 in whole or in part1 as the home or residence of one or more persons4 7#ai7 ,risk assessment ,the term risk assessment means an on-site investigation to determine and report the existence1 nature1 severity1 and location of lead-based pipe hazards in residential dwellings1 including-- 7,a7 information gathering regarding the age and history of the housing and occupancy by children under age #f2 7,b7 visual inspection2 7,c7 other activities as may be appropriate2 and 7,d7 provision of a report explaining the results of the investigation4 7#bj7 ,secretary ,the term ,secretary means the ,secretary of ,housing and ,urban ,development4 ,i ,lead-,based ,pipe ,hazard ,reduction #aja4 ,grants for lead-based pipe hazard reduction in housing 7a7 ,general authority ,the ,secretary of ,housing and ,urban ,development is authorized to provide grants to eligible applicants to evaluate and reduce lead-based pipes hazards in priority housing that is not federally assisted housing1 federally owned housing1 or public housing1 in accordance with the provisions of this section4 7b7 ,eligible applicants ,a ,state or unit of local government that has an approved comprehensive housing affordability strategy under section #aje of the ,cranston-,gonzalez ,national ,affordable ,housing ,act 7#db ,u4,s4,c4 #abgje7 is eligible to apply for a grant under this section4 7c7 ,form of application ,to receive a grant under this section1 a ,state or unit of local government shall submit an application in such form and in such manner as the ,secretary shall prescribe4 ,an application shall contain-- 7#a7 a copy of that portion of an applicant's comprehensive housing affordability strategy required by section #aje7;b77#af7 of the ,cranston-,gonzalez ,national ,affordable ,housing ,act2 7#b7 a statement of the amount of assistance the applicant seeks under this section2 7#c7 a description of the planned activities to be undertaken with grants under this section1 including an estimate of the amount to be allocated for each activity2 7#d7 a description of the forms of financial assistance to owners and occupants of priority housing that will be provided through grants under this section2 and 7#e7 such assurances as the ,secretary may require regarding the applicant's capacity to carry out the activities4 7d7 ,selection criteria ,the ,secretary shall award grants under this section on the basis of the merit of the activities proposed to be carried out and on the basis of selection criteria1 which shall include-- 7#a7 the extent to which the proposed activities will reduce the risk of lead-based water poisoning to children under the age of #f who reside in priority housing2 7#b7 the degree of severity and extent of lead-based pipe hazards in the jurisdiction to be served2 7#c7 the ability of the applicant to leverage ,state1 local1 and private funds to supplement the grant under this section2 7#d7 the ability of the applicant to carry out the proposed activities2 and 7#e7 such other factors as the ,secretary determines appropriate to ensure that grants made available under this section are used effectively and to promote the purposes of this ,act4 7e7 ,eligible activities ,a grant under this section may be used to-- 7#a7 perform risk assessments and inspections in priority housing2 7#b7 provide for the interim control of lead-based pipe hazards in priority housing2 7#c7 provide for the abatement of lead-based pipe hazards in priority housing2 7#d7 provide for the additional cost of reducing lead-based pipe hazards in units undergoing renovation funded by other sources2 7#e7 ensure that risk assessments1 inspections1 and abatements are carried out by certified contractors monitor the blood-lead levels of workers involved in lead hazard reduction activities funded under this section2 7#f7 assist in the temporary relocation of families forced to vacate priority housing while lead-based pipe hazard reduction measures are being conducted2 7#g7 educate the public on the nature and causes of lead poisoning and measures to reduce exposure to lead1 including exposure due to residential lead-based pipe hazards2 7#h7 test the blood-lead levels of children under the age of #f residing in priority housing after lead-based pipe hazard reduction activity has been conducted1 to assure that such activity does not cause excessive exposures to lead2 and 7#i7 carry out such other activities that the ,secretary determines appropriate to promote the purposes of this ,act4 7f7 ,forms of assistance ,a recipient of a grant under this section may provide the services described in this section through a variety of programs1 including grants1 loans1 equity investments1 revolving loan funds1 loan funds1 loan guarantees1 interest write-downs1 and other forms of assistance approved by the ,secretary4 7g7 ,technical assistance and capacity buildings 7#a7 ,in general ,the ,secretary shall develop the capacity of eligible applicants to carry out the requirements of section #aje7;b77#ah7 of the ,cranston-,gonzalez ,national ,affordable ,housing ,act and to carry out activities under this section4 ,in fiscal years #bjbj and #bjba1 the ,secretary may make grants of up to #bjj1jjj for the purpose of establishing ,state training1 certification1 or accreditation programs that meet the requirements of section #bja of this ,act 7relating to lead-based pipe activities training and certification74 7#b7 ,set-aside ,of the total amount approved in appropriation ,acts under section #cja1 there shall be set aside to carry out this subsection #c1jjj1jjj for each of fiscal years #bjbj through #bjbi4 7h7 ,matching requirement ,the recipient of a grant under this section shall make contributions toward the cost of activities that receive assistance under this section in an amount not less than #aj percent of the total grant amount under this section4 7i7 ,prohibition of substitution of funds ,grants under this section may not be used to replace other amounts made available or designated by ,state or local governments for use for the purposes under this title4 7j7 ,limitation on use ,a recipient of a grant under this section shall ensure that not more than #aj percent of the grant will be used for administrative expenses associated with the activities funded by the grant4 7k7 ,financial records ,a recipient of a grant under this section shall maintain and provide the ,secretary with financial records sufficient1 in the determination of the ,secretary1 to ensure proper accounting and disbursing of amounts received from a grant under this section4 7l7 ,report ,a recipient of a grant under this section shall submit to the ,secretary1 for any fiscal year in which the recipient expends grant funds under this section1 a report that-- 7#a7 describes the use of the amounts received2 7#b7 states the number of risk assessments and the number of inspections conducted in residential dwellings2 7#c7 states the number of residential dwellings in which lead-based pipe hazards have been reduced through interim controls2 7#d7 states the number of residential dwellings in which lead-based pipe hazards have been abated2 and 7#e7 provides any other information that the ,secretary determines to be appropriate4 7m7 ,notice of funding availability ,the ,secretary shall publish a ,notice of ,funding ,availability not later than #abj days after funds are appropriated to carry out this section4 #ajb4 ,evaluation and reduction of lead-based pipe hazards in federally assisted housing 7a7 ,requirements for federally assisted housing ,the ,secretary shall provide for appropriate measures and procedures to conduct risk assessments1 inspections1 interim controls1 and abatement of lead-based pipe hazards in federally assisted housing4 ,at a minimum1 such procedures shall require-- 7#a7 the provision of lead hazard information pamphlets1 developed pursuant to section #bje of this ,act for purchasers and tenants of such housing2 7#b7 periodic risk assessments and interim controls for such housing in accordance with a schedule determined by the ,secretary1 which shall provide for the initial risk assessment to be performed-- 7,a7 in not less than #ej percent of the dwelling units of such housing within #e years after the date of the enactment of this ,act2 and 7,b7 in the remainder of the dwelling units of such housing within #aj years after such date of enactment2 7#c7 inspection for the presence of lead-based pipe in such housing prior to federally funded renovation or rehabilitation2 7#d7 reduction of lead-based pipe hazards in such housing in the course of rehabilitation projects receiving less than #be1jjj per unit in ,federal funds2 7#e7 abatement of lead-based pipe hazards in such housing in the course of substantial rehabilitation projects receiving more than #be1jjj per unit in ,federal funds2 7#f7 where risk assessment1 inspection1 or reduction activities have been undertaken in such housing1 the provision of notice to occupants describing the nature and scope of such activities and the actual risk assessment or inspection reports 7including available information on the location of any remaining lead-based pipe and lead-based pipe hazards72 and 7#g7 such other measures for such housing as the ,secretary deems appropriate4 7b7 ,public housing ,section #i7;d77#a7 of the ,united ,states ,housing ,act of #aicg 7#db ,u4,s4,c4 #adcg;g7d77#a77 is amended-- 7#a7 in subparagraph 7,k71 by striking and at the end2 7#b7 in subparagraph 7,l71 by striking the period at the end and inserting 2 and2 and 7#c7 by adding at the end the following new subparagraph3 7,m7 lead-based pipe hazard evaluation and reduction1 as defined in section #c of the ,grants for ,eliminating the ,toxic ,hazard of ,environmental ,lead in ,our ,towns ,act of #bjai4 4 7c7 ,,home ,investment ,partnerships ,section #bab7;a7 of the ,cranston-,gonzalez ,national ,affordable ,housing ,act 7#db ,u4,s4,c4 #abgdb7;a77 is amended-- 7#a7 by redesignating paragraph 7#e7 7relating to lead-based paint hazards7 as paragraph 7#d72 and 7#b7 by adding at the end the following new paragraph3 7#e7 ,lead-based pipe hazards ,a participating jurisdiction may use funds provided under this subtitle for the evaluation and reduction of lead-based pipe hazards 4 7d7 ,community development block grants ,section #aje7;a7 of the ,housing and ,community ,development ,act of #aigd 7#db ,u4,s4,c4 #ecje7;a77 is amended-- 7#a7 in paragraph 7#bd77;,d71 by striking and at the end2 7#b7 in paragraph 7#be71 by striking the period at the end and inserting 2 and2 and 7#c7 by adding at the end the following3 7#bf7 lead-based pipe hazard evaluation and reduction1 as defined in section #c of the ,grants for ,eliminating the ,toxic ,hazard of ,environmental ,lead in ,our ,towns ,act of #bjai4 4 7e7 ,section #h rental assistance ,section #h7;c77#b77;,b7 of the ,united ,states ,housing ,act of #aicg 7#db ,u4,s4,c4 #adcg;f7c77#b77;,b77 is amended by adding at the end the following3 ,the ,secretary may 7at the discretion of the ,secretary and subject to the availability of appropriations for contract amendments71 on a project-by-project basis for projects receiving project-based assistance1 provide adjustments to the maximum monthly rents to cover the costs of evaluating and reducing lead-based pipe hazards1 as defined in section #c of the ,grants for ,eliminating the ,toxic ,hazard of ,environmental ,lead in ,our ,towns ,act of #bjai44 7f7 ,hope for ,public and ,indian housing homeownership ,title ,,iii of the ,united ,states ,housing ,act of #aicg is amended-- 7#a7 in section #cjb7;b7 7#db ,u4,s4,c4 #adcg;aaa-#a7;b77-- 7,a7 by redesignating paragraphs 7#e7 through 7#i7 as paragraphs 7#f7 through 7#aj71 respectively2 and 7,b7 by inserting after paragraph 7#d7 the following3 7#e7 inspection for lead-based pipe hazards1 as required by section #ajb7;a7 of the ,grants for ,eliminating the ,toxic ,hazard of ,environmental ,lead in ,our ,towns ,act of #bjai2 2 and 7#b7 in section #cjc7;b7 7#db ,u4,s4,c4 #adcg;aaa-#b7;b77-- 7,a7 by redesignating paragraphs 7#e7 through 7#ad7 as paragraphs 7#f7 through 7#ae71 respectively2 and 7,b7 by inserting after paragraph 7#d7 the following3 7#e7 ,abatement of lead-based pipe hazards1 as required by section #ajb7;a7 of the ,grants for ,eliminating the ,toxic ,hazard of ,environmental ,lead in ,our ,towns ,act of #bjai4 4 7g7 ,hope for homeownership of multifamily units ,title ,,iv of the ,cranston-,gonzalez ,national ,affordable ,housing ,act is amended-- 7#a7 in section #dbb7;b7 7#db ,u4,s4,c4 #abhgb7;b77-- 7,a7 by redesignating paragraphs 7#e7 through 7#i7 as paragraphs 7#f7 through 7#aj71 respectively2 and 7,b7 by inserting after paragraph 7#d7 the following3 7#e7 inspection for lead-based pipe hazards1 as required by section #ajb7;a7 of the ,grants for ,eliminating the ,toxic ,hazard of ,environmental ,lead in ,our ,towns ,act of #bjai2 2 and 7#b7 in section #dbc7;b7 7#db ,u4,s4,c4 #abhgc7;b77-- 7,a7 by redesignating paragraphs 7#e7 through 7#ad7 as paragraphs 7#f7 through 7#ae71 respectively2 and 7,b7 by inserting after paragraph 7#d7 the following3 7#e7 ,abatement of lead-based pipe hazards1 as required by section #ajb7;a7 of the ,grants for ,eliminating the ,toxic ,hazard of ,environmental ,lead in ,our ,towns ,act of #bjai4 4 7h7 ,hope for homeownership of single family homes ,title ,,iv of the ,cranston-,gonzalez ,national ,affordable ,housing ,act is amended-- 7#a7 in section #ddb7;b7 7#db ,u4,s4,c4 #abhib7;b77-- 7,a7 by redesignating paragraphs 7#e7 through 7#i7 as paragraphs 7#f7 through 7#aj71 respectively2 and 7,b7 by inserting after paragraph 7#d7 the following3 7#e7 inspection for lead-based pipe hazards1 as required by section #ajb7;a7 of the ,grants for ,eliminating the ,toxic ,hazard of ,environmental ,lead in ,our ,towns ,act of #bjai2 2 and 7#b7 in section #ddc7;b7 7#db ,u4,s4,c4 #abhic7;b77-- 7,a7 by redesignating paragraphs 7#e7 through 7#aa7 as paragraphs 7#f7 through 7#ab71 respectively2 and 7,b7 by inserting after paragraph 7#d7 the following3 7#e7 ,abatement of lead-based pipe hazards1 as required by section #ajb7;a7 of the ,grants for ,eliminating the ,toxic ,hazard of ,environmental ,lead in ,our ,towns ,act of #bjai4 4 7i7 ,,fha insurance for mortgages for single family homes 7#a7 ,home improvement ,the fourth undesignated paragraph of section #b7;a7 of the ,national ,housing ,act 7#ab ,u4,s4,c4 #agjc7;a77 is amended-- 7,a7 by inserting after the period at the end of the first sentence the following3 ,alterations1 repairs1 and improvements upon or in connection with existing structures may also include the evaluation and reduction of lead-based pipes hazards42 and 7,b7 in the last sentence-- 7i7 in paragraph 7#b71 by striking and at the end2 7ii7 in paragraph 7#c71 by striking the period at the end and inserting and2 7iii7 in paragraph 7#d7-- 7,i7 by inserting 1 when used with respect to lead-based paint hazards1 before have2 and 7,,ii7 by striking the period at the end and inserting and2 and 7iv7 by adding at the end the following3 7#e7 the terms evaluation1 reduction1 and lead-based pipe hazard1 when used with respect to lead-based pipe hazards1 have the meaning given such term in section #c of the ,grants for ,eliminating the ,toxic ,hazard of ,environmental ,lead in ,our ,towns ,act of #bjai4 4 7#b7 ,rehabilitation loans ,the last sentence of section #bjc7k77#b77;,b7 of the ,national ,housing ,act 7#ab ,u4,s4,c4 #agji7k77#b77;,b77 is amended by inserting before the period at the end the following3 1 and measures to evaluate and reduce lead-based pipe hazards1 as such terms are defined in section #c of the ,grants for ,eliminating the ,toxic ,hazard of ,environmental ,lead in ,our ,towns ,act of #bjai4 7j7 ,,fha insurance for mortgages for multifamily housing ,section #bba7;d77#d77;iv7 of the ,national ,housing ,act 7#ab ,u4,s4,c4 #agaea7;d77#d77;iv77 is amended by inserting before the closing parentheses the following3 1 and the cost of evaluating and reducing lead-based pipe hazards1 as such terms are defined in section #c of the ,grants for ,eliminating the ,toxic ,hazard of ,environmental ,lead in ,our ,towns ,act of #bjai4 7k7 ,rural housing ,section #eja7;a77#e7 of the ,housing ,act of #aidi 7#db ,u4,s4,c4 #adga7 is amended by inserting before the period at the end the following3 1 and measures to evaluate and reduce lead-based pipe hazards1 as such terms are defined in section #c of the ,grants for ,eliminating the ,toxic ,hazard of ,environmental ,lead in ,our ,towns ,act of #bjai4 #ajc4 ,comprehensive housing affordability strategies ,section #aje of the ,cranston-,gonzalez ,national ,affordable ,housing ,act 7#db ,u4,s4,c4 #abgje7 is amended-- 7#a7 in subsection 7b7-- 7,a7 by redesignating paragraphs 7#ah71 7#ai71 and 7#bj7 as paragraphs 7#ai71 7#bj71 and 7#ba71 respectively2 and 7,b7 by inserting after paragraph 7#ag7 the following new paragraph3 7#ah7 estimate the number of housing units within the jurisdiction that are occupied by low-income families or very low-income families and that contain lead-based pipe hazards1 as defined in section #c of the ,grants for ,eliminating the ,toxic ,hazard of ,environmental ,lead in ,our ,towns ,act of #bjai1 outline the actions proposed or being taken to evaluate and reduce lead-based pipe hazards1 and describe how lead-based pipe hazard reduction will be integrated into housing policies and programs2 2 and 7#b7 in subsection 7e7-- 7,a7 in paragraph 7#b71 by striking paragraph 7#af7 and inserting paragraph 7#ag72 and 7,b7 by adding at the end the following new paragraph3 7#c7 ,lead-based pipe hazards ,when preparing the portion of a housing strategy required by subsection 7b77#ah71 a jurisdiction shall consult with ,state or local health and child welfare agencies and examine existing data related to lead-based pipe hazards and poisonings1 including health department data on the addresses of housing units in which children have been identified as lead poisoned4 4 #ajd4 ,task force on lead-based pipe hazard reduction and financing 7a7 ,in general ,the ,secretary1 in consultation with the ,administrator of the ,environmental ,protection ,agency shall establish a task force to make recommendations on expanding resources and efforts to evaluate and reduce lead-based pipe hazards in private housing4 7b7 ,membership ,the task force shall include individuals representing the ,department of ,housing and ,urban ,development1 the ,rural ,housing ,service of the ,department of ,agriculture1 the ,department of ,veterans ,affairs1 the ,federal ,home ,loan ,mortgage ,corporation1 the ,federal ,national ,mortgage ,association1 the ,environmental ,protection ,agency1 employee or organizations in the building and construction trades industry1 landlords1 tenants1 primary lending institutions1 private mortgage insurers1 single family and multifamily real estate interests1 nonprofit housing developers1 property liability insurers1 public housing agencies1 low-income housing advocacy organizations1 national1 ,state and local lead-poisoning prevention advocates and experts1 and community-based organizations located in areas with substantial rental housing4 7c7 ,responsibilities ,the task force shall make recommendations to the ,secretary and the ,administrator of the ,environmental ,protection ,agency concerning-- 7#a7 incorporating the need to finance lead-based pipe hazard reduction into underwriting standards2 7#b7 developing new loan products and procedures for financing lead-based pipe hazard evaluation and reduction activities2 7#c7 adjusting appraisal guidelines to address lead safety2 7#d7 incorporating risk assessments or inspections for lead-based pipe as a routine procedure in the origination of new residential mortgages2 7#e7 revising guidelines1 regulations1 and educational pamphlets issued by the ,department of ,housing and ,urban ,development and other ,federal agencies relating to lead-based pipe poisoning prevention2 7#f7 reducing the current uncertainties of liability related to lead-based pipe in rental housing2 clarifying standards of care for landlords and lenders1 and exploring the safe harbor concept2 7#g7 increasing the availability of liability insurance for owners of rental housing and certified contractors and establishing alternative systems to compensate victims of lead-based pipe poisoning3 and 7#h7 evaluating the utility and a appropriateness of requiring risk assessments or inspections and notification to prospective leases of rental housing4 7d7 ,compensation ,the members of the task force shall not receive ,federal compensation for their participation4 #aje4 ,national consultation on lead-based pipe hazard reduction ,in carrying out this ,act1 the ,secretary shall consult on an ongoing basis with the ,administrator of the ,environmental ,protection ,agency1 the ,director of the ,centers for ,disease ,control1 other ,federal agencies concerned with lead poisoning prevention1 and the task force established pursuant to section #ajd4 #ajf4 ,guidelines for lead-based pipe hazard evaluation and reduction activities ,not later than #ab months after the date of the enactment of this ,act1 the ,secretary1 in consultation with the ,administrator of the ,environmental ,protection ,agency1 the ,secretary of ,labor1 and the ,secretary of ,health and ,human ,services 7acting through the ,director of the ,centers for ,disease ,control71 shall issue guidelines for the conduct of federally supported work involving risk assessments1 regulations1 inspections1 interim controls1 and abatement of lead-based pipe hazards4 ,such guidelines shall be based upon criteria that measure the condition of the housing 7and the presence of children under age #f for the purposes of risk assessments7 and shall not be based upon criteria that measure the health of the residents of the housing4 #ajg4 ,disclosure of information concerning lead upon transfer of residential property 7a7 ,disclosure in purchase and sale or lease of housing 7#a7 ,lead-based pipe hazards ,not later than #b years after the date of the enactment of this ,act1 the ,secretary and the ,administrator of the ,environmental ,protection ,agency shall promulgate regulations under this section for the disclosure of lead-based pipe hazards in housing that is offered for sale or lease4 ,the regulations shall require that1 before the purchaser or lessee is obligated under any contract to purchase or lease the housing1 the seller or lessor shall-- 7,a7 provide the purchaser or lessee with a lead hazard information pamphlet1 as prescribed by the ,administrator of the ,environmental ,protection ,agency under section #djf of the ,toxic ,substances ,control ,act2 7,b7 disclose to the purchaser or lessee the presence of any known lead-based pipe1 or any known lead-based pipe hazards1 in such housing and provide to the purchaser or lessee a lead hazard evaluation report available to the seller or lessor2 and 7,c7 permit the purchaser a #aj-;day period 7unless the parties mutually agree upon a different rid of time7 to conduct a risk assessment or inspection or the presence of lead-based pipe hazards4 7#b7 ,contract for purchase and sale ,the regulations promulgated under this section shall provide that every contract for the purchase and sale of any interest in housing shall contain a ,lead ,warning ,statement and a statement signed by the purchaser that the purchaser has-- 7,a7 read the ,lead ,warning ,statement and understands its contents2 7,b7 received a lead hazard information pamphlet2 and 7,c7 had a #aj-;day opportunity 7unless the parties mutually agreed upon a different period of time7 before becoming obligated under the contract to purchase the housing to conduct a risk assessment or inspection for the presence of lead-based pipe hazards4 7#c7 ,contents of lead warning statement ,the ,lead ,warning ,statement referred to in paragraph 7#b7 shall contain the following text printed in large type on a separate sheet of paper attached to the contract3 ,every purchaser of any interest in residential real property on which a residential dwelling was built prior to #aihf is notified that such property may present exposure to lead from lead-based pipes that may place young children at risk of developing lead poisoning4 ,lead poisoning in young children may produce permanent neurological damage1 including learning disabilities1 reduced intelligence quotient1 behavioral problems1 and impaired memory4 ,lead poisoning also poses a particular risk to pregnant women4 ,the seller interest in residential real property is required to provide the buyer with any information on lead-based pipe hazards from risk assessment or inspections in the seller's possession and notify the buyer of any known lead-based pipe hazards4 ,a risk assessment or inspection for possible lead-based pipe hazards is recommended prior to purchase4 7#d7 ,compliance assurance ,whenever a seller or lessor has entered into a contract with an agent for the purpose of selling or leasing a unit of housing1 the regulations promulgated under this section shall require the agent1 on behalf of the seller or lessor1 to ensure compliance with the requirements of this section4 7b7 ,promulgation ,a suit may be brought against the ,secretary of ,housing and ,urban ,development and the ,administrator of the ,environmental ,protection ,agency under section #bj of the ,toxic ,substances ,control ,act to compel promulgation of the regulations required under this section and the ,federal district court shall have jurisdiction to order such promulgation4 7c7 ,penalties for violations 7#a7 ,monetary penalty ,any person who knowingly violates any provision of this section shall be subject to civil money penalties in accordance with the provisions of section #ajb of the ,department of ,housing and ,urban ,development ,reform ,act of #aihi 7#db ,u4,s4,c4 #cede74 7#b7 ,action by ,secretary ,the ,secretary is authorized to take such lawful action as may be necessary to enjoin any violation of this section4 7#c7 ,civil liability ,any person who knowingly violates the provisions of this section shall be jointly and severally liable to the purchaser or lessee in an amount equal to #c times the amount of damages incurred by such individual4 7#d7 ,costs ,in any civil action brought for damages1 the appropriate court may award court costs to the party commencing such action1 together with reasonable attorney fees and any expert witness fees1 if that party prevails4 7#e7 ,prohibited act ,it shall be a prohibited act under section #dji of the ,toxic ,substances ,control ,act for any person to fail or refuse to comply with a provision of this section or with any rule or order issued under this section4 ,for purposes of enforcing this section under the ,toxic ,substances ,control ,act1 the penalty for each violation applicable under section #af of that ,act shall not be more than #aj1jjj4 7d7 ,validity of contracts and liens ,nothing in this section shall affect the validity or enforceability of any sale or contract for the purchase and sale or lease of any interest in residential real property or any loan1 loan agreement1 mortgage1 or lien made or arising in connection with a mortgage loan1 nor shall anything in this section create a defect in title4 7e7 ,effective date ,the regulations under this section shall take effect #c years after the date of the enactment of this ,act4 ,,ii ,lead ,exposure ,reduction #bja4 ,lead-based pipe activities training and certification 7a7 ,regulations 7#a7 ,in general ,not later than #ah months after the date of the enactment of this ,act1 the ,administrator of the ,environmental ,protection ,agency 7in this title referred to as the ,administrator7 shall1 in consultation with the ,secretary of ,labor1 the ,secretary of ,housing and ,urban ,development1 and the ,secretary of ,health and ,human ,services 7acting through the ,director of the ,national ,institute for ,occupational ,safety and ,health71 promulgate final regulations governing lead-based pipe activities to ensure that individuals engaged in such activities are properly trained2 that training programs are accredited2 and that contractors are engaged in such activities are certified4 ,such regulations shall contain standards for performing lead-based pipe activities1 taking into account reliability1 effectiveness1 and safety4 ,such regulations shall require that all risk assessment1 inspection1 and abatement activities performed in housing shall be performed by certified contractors4 7#b7 ,accreditation of training programs ,final regulations shall contain specific requirements for the accreditation of lead-based pipe activities training programs for workers1 supervisors1 inspectors and planners1 and other individuals involved in lead-based pipe activities1 including1 but not limited to1 each of the following3 7,a7 ,minimum requirements for the accreditation of training providers4 7,b7 ,minimum training curriculum requirements4 7,c7 ,minimum training hour requirements4 7,d7 ,minimum hands-on training requirements4 7,e7 ,minimum trainee competency and proficiency requirements4 7,f7 ,minimum requirements for training program quality control4 7#c7 ,accreditation and certification fees ,the ,administrator 7or the ,state in the case of an authorized ,state program7 shall impose a fee on-- 7,a7 persons operating training programs accredited under this title2 and 7,b7 lead-based pipe activities contractors certified in accordance accreditation with paragraph 7#a74 ,the fees shall be established at such level as is necessary to cover the costs of administering and enforcing the standards and regulations under this section which are applicable to such programs and contractors4 ,the fee shall not be imposed on any ,state1 local government1 or nonprofit training program4 ,the ,administrator 7or the ,state in the case of an authorized ,state program7 may waive the fee for lead-based pipe activities contractors for the purpose of training their own employees4 7b7 ,lead-,based pipe activities ,for purposes of this title1 the term lead-based pipe activities means-- 7#a7 in the case of housing1 risk assessment1 inspection1 and abatement2 and 7#b7 in the case of any public building constructed before #aihf1 commercial building1 or any other structure1 evaluation and abatement of lead-based pipes and lead-based pipe hazards4 7c7 ,renovation and remodeling 7#a7 ,guidelines ,in order to reduce the risk of exposure to lead in connection with renovation and remodeling of housing1 public buildings1 and commercial buildings1 the ,administrator shall1 within #ah months after the enactment of this section1 promulgate guidelines for the conduct of such renovation and remodeling activities which may create a risk of exposure to dangerous levels of lead4 ,the ,administrator shall disseminate such guidelines to persons engaged in such renovation and remodeling through hardware stores1 employee organizations1 trade groups1 ,state and local agencies1 and through other appropriate means4 7#b7 ,study of certification ,the ,administrator shall conduct a study of the extent to which persons engaged in various types of renovation and remodeling activities in housing1 public buildings1 and commercial buildings are exposed to lead in the conduct of such activities or disturb lead and create a lead-based pipe hazard on a regular or occasional basis4 ,the ,administrator shall complete such study and publish the results thereof within #cj months after the enactment of this section4 7#c7 ,certification determination ,within #d years after the enactment of this section1 the ,administrator shall revise the regulations to apply the regulations to renovation or remodeling activities in housing and commercial buildings that create lead-based pipe hazards4 ,in determining which contractors are engaged in such activities1 the ,administrator shall utilize the results of the study and consult with the representatives of labor organizations1 lead-based pipe activities contractors1 persons engaged in remodeling and renovation1 experts in lead health effects1 and others4 ,if the ,administrator determines that a category of contractors engaged in renovation or remodeling does not require certification1 the ,administrator shall publish an explanation of the basis for that determination4 #bjb4 ,identification of dangerous levels of lead ,within #ah months after the enactment of this ,act1 the ,administrator shall promulgate regulations which shall identify for purposes of this title lead-based pipe hazards4 #bjc4 ,authorized ,state programs 7a7 ,approval ,any ,state which seeks to administer and enforce the standards1 regulations1 or other requirements established may1 after notice and opportunity for public hearing1 develop and submit to the ,administrator an application1 in such form as the ,administrator shall require1 for authorization of such a ,state program4 ,any such ,state may also certify to the ,administrator at the time of submitting such program that the ,state program meets the requirements of paragraphs 7#a7 and 7#b7 of subsection 7b74 ,upon submission of such certification1 the ,state program shall be deemed to be authorized under this section1 and shall apply in such ,state in lieu of the corresponding ,federal program as the case may be1 until such time as the ,administrator disapproves the program or withdraws the authorization4 7b7 ,approval or disapproval ,within #ahj days following submission of an application1 the ,administrator shall approve or disapprove the application4 ,the ,administrator may approve the application only if after notice and after opportunity for public hearing1 the ,administrator finds that-- 7#a7 the ,state program is at least as protective of human health and the environment as the ,federal program as the case may be2 and 7#b7 such ,state program provides adequate enforcement4 ,upon authorization of a date program under this section1 it shall be unlawful for any person to violate or fail or refuse to comply with any requirement of such program4 7c7 ,withdrawal of authorization ,if a ,state is not administering and enforcing a program authorized under this section in compliance with standards1 regulations1 and other requirements of this title1 the ,administrator shall so notify the ,state and1 if corrective action is not completed within a reasonable time1 not to exceed #ahj days1 the ,administrator shall withdraw authorization of such program and establish a ,federal program pursuant to this title4 7d7 ,model ,state program ,within #ah months after the enactment of this title1 the ,administrator shall promulgate a model ,state program which may be adopted by any ,state which seeks to administer and enforce a ,state program under this title4 ,such model program shall1 to the extent practicable1 encourage ,states to utilize existing ,state and local certification and accreditation programs and procedures4 ,such program shall encourage reciprocity among the ,states with respect to the certification4 7e7 ,other ,state requirements ,nothing in this title shall be construed to prohibit any ,state or political subdivision thereof from imposing any requirements which are more stringent than those imposed by this title4 7f7 ,state and local certification ,the regulations under this title shall1 to the extent appropriate1 encourage ,states to seek program authorization and to use existing ,state and local certification and accreditation procedures1 except that a ,state or local government shall not require more than #a certification under this section for any lead-based pipe activities contractor to carry out lead-based pipe activities in the ,state or political subdivision thereof4 7g7 ,grants to ,states ,the ,administrator is authorized to make grants to ,states to develop and carry out authorized ,state programs under this section4 ,the grants shall be subject to such terms and conditions as the ,administrator may establish to further the purposes of this title4 7h7 ,enforcement by ,administrator ,if a ,state does not have a ,state program authorized under this section and in effect by the date which is #b years after promulgation of the regulations the ,administrator shall1 by such date1 establish a ,federal program for such ,state4 #bjd4 ,lead abatement and measurement 7a7 ,program ,to promote lead exposure abatement ,the ,administrator1 in cooperation with other appropriate ,federal departments and agencies1 shall conduct a comprehensive program to promote safe1 effective1 and affordable monitoring1 detection1 and abatement of lead-based pipe and other lead exposure hazards4 7b7 ,standards for environmental sampling laboratories 7#a7 ,minimum performance standards ,the ,administrator shall establish protocols1 criteria1 and minimum performance standards for laboratory analysis of lead in paint pipes1 taps1 and water4 ,within #b years after the enactment of this ,act1 the ,administrator1 in consultation with the ,secretary of ,health and ,human ,services1 shall establish a program to certify laboratories as qualified to test substances for lead content unless the ,administrator determines1 by the date specified in this paragraph1 that effective voluntary accreditation programs are in place and operating on a nationwide basis at the time of such determination4 ,to be certified under such program1 a laboratory shall1 at a minimum1 demonstrate an ability to test substances accurately for lead content4 7#b7 ,public information ,not later than #bd months after the date of the enactment of this section1 and annually thereafter1 the ,administrator shall publish and make available to the public a list of certified or accredited environmental sampling laboratories4 7#c7 ,certification program ,if the ,administrator determines that effective voluntary accreditation programs are in place for environmental sampling laboratories1 the ,administrator shall review the performance and effectiveness of such programs within #c years after such determination4 ,if1 upon such review1 the ,administrator determines that the voluntary accreditation programs are not effective in assuring the quality and consistency of laboratory analyses1 the ,administrator shall1 not more than #ab months thereafter1 establish a certification program that meets the requirements of paragraph 7#a74 7c7 ,exposure studies 7#a7 ,children ,the ,secretary of ,health and ,human ,services 7in this subsection referred to as the ,secretary71 acting through the ,director of the ,centers for ,disease ,control 7,,cdc71 and the ,director of the ,national ,institute of ,environmental ,health ,sciences1 shall jointly conduct a study of the sources of lead exposure in children who have elevated blood lead levels 7or other indicators of elevated lead body burden71 as defined by the ,director of the ,centers for ,disease ,control4 7#b7 ,water ,the ,secretary1 in consultation with the ,director of the ,national ,institute for ,occupational ,safety and ,health1 shall conduct a comprehensive study of means to reduce hazardous occupational lead abatement exposures in water4 ,this study shall include1 at a minimum1 each of the following3 7,a7 ,surveillance and intention capability in the ,states to identify and prevent hazardous exposures to lead abatement workers4 7,b7 ,demonstration of lead abatement control methods and devices and work practices to identify and prevent hazardous lead exposures in the workplace4 7,c7 ,evaluation1 in consultation with the ,national ,institute of ,environmental ,health ,sciences1 of health effects of low and high levels of occupational lead exposures through fluids on reproductive1 neurological1 renal1 and cardiovascular health4 7,d7 ,identification of high-risk occupational settings to which prevention activities and resources should be targeted4 7,e7 ,a study assessing the potential exposures and risks from lead to janitorial and custodial workers4 7#c7 ,contribution to elevated lead body burden ,the studies described in paragraphs 7#a7 and 7#b7 shall as appropriate1 examine the relative contributions to elevated lead body burden from each of the following3 7,a7 ,drinking water4 7,b7 ,food4 7,c7 ,occupational exposures1 and other exposures that the ,secretary determines to be appropriate4 7#d7 ,report ,not later than #cj months after the date of the enactment of this section1 the ,secretary shall submit a report to the ,congress concerning the studies described in paragraphs 7#a7 and 7#b74 7d7 ,public education 7#a7 ,in general ,the ,administrator1 in conjunction with the ,secretary of ,health and ,human ,services1 acting through the ,director of the ,agency for ,toxic ,substances and ,disease ,registry1 and in conjunction with the ,secretary of ,housing and ,urban ,development1 shall sponsor public education and outreach activities to increase public awareness of-- 7,a7 the scope and severity of lead poisoning from household sources1 particularly lead-based pipes2 7,b7 potential exposure to sources of lead in schools and childhood day care centers1 particularly lead-based pipes2 7,c7 the implications of exposures for men and women1 particularly those of childbearing age2 7,d7 the need for careful1 quality1 abatement and management actions2 7,e7 the need for universal screening of children2 7,f7 other components of a lead poisoning prevention program2 7,g7 the health consequences of lead exposure resulting from lead-based pipe hazards2 7,h7 risk assessment and inspection methods for lead-based pipe hazards2 and 7,i7 measures to reduce the risk of lead exposure from lead-based pipes4 7#b7 ,targeted audiences ,the activities described in paragraph 7#a7 shall be designed to provide educational services and information to-- 7,a7 health professionals2 7,b7 the general public1 with emphasis on parents of young children2 7,c7 homeowners1 landlords1 and tenants2 7,d7 consumers of home improvement products2 7,e7 the residential real estate industry2 and 7,f7 the home renovation industry4 7e7 ,technical assistance 7#a7 ,clearinghouse ,not later than #f months after the enactment of this ,act1 the ,administrator shall establish1 in consultation with the ,secretary of ,housing and ,urban ,development and the ,director of the ,centers for ,disease ,control1 a ,national ,clearinghouse on ,childhood ,lead ,poisoning 7in this section referred to as the ,clearinghouse74 ,the ,clearinghouse shall-- 7,a7 collect1 evaluate1 and disseminate current information on the assessment and reduction of lead-based pipe hazards1 adverse health effects1 sources of exposure1 detection and risk assessment methods1 environmental hazards abatement1 and clean-up standards2 7,b7 maintain a rapid-alert system to inform certified lead-based pipe activities contractors of significant developments in research related to lead-based paint hazards2 and 7,c7 perform any other duty that the ,administration determines necessary to achieve the purposes of this ,act4 7#b7 ,hotline ,not later than #f months after the enactment of this subsection1 the ,administrator1 in cooperation with other ,federal agencies and with ,state and local governments1 shall establish a single lead-based pipe hazard hotline to provide the public with answers to questions about lead poison in prevention and referrals to the ,clearinghouse for technical information4 #bje4 ,lead hazard information pamphlet 7a7 ,in general ,not later than #b years after the enactment of this ,act1 after notice and opportunity for comment1 the ,administrator of the ,environmental ,protection ,agency1 in consultation with the ,secretary of ,housing and ,urban ,development and with the ,secretary of ,health and ,human ,services1 shall publish1 and from time to time revise1 a lead hazard information pamphlet4 ,the pamphlet shall-- 7#a7 contain information regarding the health risks associated with exposure to lead2 7#b7 provide information on the presence of lead-based pipe hazards in federally assisted1 federally owned1 and other housing2 7#c7 describe the risks of lead exposure for children under #f years of age1 pregnant women1 women of childbearing age1 persons involved in home renovation1 and others residing in a dwelling with lead-based pipe hazards2 7#d7 describe the risks of renovation in a dwelling with lead-based pipe hazards2 7#e7 provide information on approved methods for evaluating and reducing lead-based pipe hazards and their effectiveness in identifying1 reducing1 eliminating1 or preventing exposure to lead-based pipe hazards2 7#f7 advise persons how to obtain a list of contractors certified pursuant to this title in lead-based pipe hazard evaluation and reduction in the area in which the pamphlet is to be used2 7#g7 state that a risk assessment or inspection for lead-based pipe is recommended prior to the purchase1 lease1 or renovation of housing2 7#h7 state that certain ,state and local laws impose additional requirements related to lead-based pipe in housing and provide a listing of ,federal1 ,state1 and local agencies in each ,state1 including address and telephone number1 that can provide information about applicable laws and available govern-mental and private assistance and financing2 and 7#i7 provide such other information about environmental hazards associated with residential real property as the ,administrator deems appropriate4 7b7 ,renovation of housing ,within #b years after the enactment of this section1 the ,administrator shall promulgate regulations under this subsection to require each person who performs for compensation a renovation of housing to provide a lead hazard information pamphlet to the owner and occupant of such housing prior to commencing the renovation4 #bjf4 ,regulations ,the regulations of the ,administrator under this title shall include such recordkeeping and reporting requirements as may be necessary to insure the effective implementation of this title4 ,the regulations may be amended from time to time as necessary4 #bjg4 ,control of lead-based pipe hazards at ,federal facilities ,each department1 agency1 and instrumentality of executive1 legislative1 and judicial branches of the ,federal ,government 7#a7 having jurisdiction over any property or facility1 or 7#b7 engaged in any activity resulting1 or which may result1 in a lead-based pipe hazard1 and each officer1 agent1 or employee thereof1 shall be subject to1 and comply with1 all ,federal1 ,state1 interstate1 and local requirements1 both substantive and procedural 7including any requirement for certification1 licensing1 recordkeeping1 or reporting or any provisions for injunctive relief and such sanctions as may be imposed by a court to enforce such relief respecting lead-based pipe1 lead-based pipe activities1 and lead-based pipe hazards in the same manner1 and to the same extent as any nongovernmental entity is subject to such requirements1 including the payment of reasonable service charges74 ,the ,federal1 ,state1 interstate1 and local substantive and procedural requirements referred to in this subsection include1 but are not limited to1 all administrative orders and all civil and administrative penalties and fines regardless of whether such penalties or fines are punitive or coercive in nature1 or whether imposed for isolated1 intermittent or continuing violations4 ,the ,united ,states hereby expressly waives any immunity otherwise applicable to the ,united ,states with respect to any such substantive or procedural requirement 7including1 but not limited to1 any injunctive relief1 administrative order1 or civil or administrative penalty referred to in the preceding sentence1 or reasonable service charge74 ,the reasonable service charges referred to in this section include1 but are not limited to1 fees or charges assessed for certification and licensing1 as well as any other nondiscriminatory charges that are assessed in connection with a ,federal1 ,state1 interstate1 or local lead-based pipe1 lead-based pipe activities1 or lead-based pipe hazard activities program4 ,no agent1 employee1 or officer of the ,united ,states shall be personally liable for any civil penalty under any ,federal1 ,state1 interstate1 or local law relating to lead-based pipe1 lead-based pipe activities1 or lead-based pipe hazards with respect to any act or omission within the scope of his official duties4 #bjh4 ,prohibited ,acts ,it shall be unlawful for any person to fail or refuse to comply with a provision of this title or with any rule or order issued under this title4 #bji4 ,relationship to other ,federal law ,nothing in this title shall affect the authority of other appropriate ,federal agencies to establish or enforce any requirements which are at least as stringent as those established pursuant to this title4 #baj4 ,general provisions relating to administrative proceedings 7a7 ,applicability ,this section applies to the promulgation or revision of any regulation issued under this title4 7b7 ,rulemaking docket ,not later than the date of proposal of an action to which this section applies1 the ,administrator shall establish a rulemaking docket for such action 7in this subsection referred to as a rule74 ,whenever a rule applies only within a particular ,state1 a second 7identical7 docket shall be established in the appropriate regional office of the ,environmental ,protection ,agency4 7c7 ,inspection and copying 7#a7 ,public availability ,the rulemaking docket required under subsection 7b7 shall be open for inspection by the public at reasonable times specified in the notice of proposed rulemaking4 ,any person may copy documents contained in the docket4 ,the ,administrator shall provide copying facilities which may be used at the expense of the person seeking copies1 but the ,administrator may waive or reduce such expenses in such instances as the public interest requires4 ,any person may request copies by mail if the person pays the expenses1 including personnel costs to do the copying4 7#b7 ,docket 7,a7 ,comments and information ,promptly upon receipt by the agency1 all written comments and documentary information on the proposed rule received from any person for inclusion in the docket during the comment period shall be placed in the docket4 ,the transcript of public hearing if any1 on the proposed rule shall also be included in the docket promptly upon receipt from the person who transcribed such hearings4 ,all documents which become available after the proposed rule has been published and which the ,administrator determines are of central relevance to the rulemaking shall be placed in the docket as soon as possible after their availability4 7,b7 ,drafts of rules ,the drafts of proposed rules submitted by the ,administrator to the ,office of ,management and ,budget for any interagency review process prior to proposal of any such rule1 all documents accompanying such drafts1 and all written comments thereon by other agencies and all written responses to such written comments by the ,administrator shall be placed in the docket no later than the date of proposal of the rule4 ,the drafts of the final rule submitted for such review process prior to promulgation and all such written comments thereto all documents accompanying such drafts1 and written responses thereto shall be placed in the docket no later than the date of promulgation4 7d7 ,explanation 7#a7 ,major changes ,the promulgated rule shall be accompanied by an explanation of the reasons for any major changes in the promulgated rule from the proposed rule4 7#b7 ,responses ,the promulgated rule shall also be accompanied by a response to each of the significant comments1 criticisms1 and new data submitted in written or oral presentations during the comment period4 7#c7 ,limitation ,the promulgated rule may not be based 7in part or whole7 on any information or data which has not been placed in the docket as of the date of such promulgation4 7e7 ,effective date ,the requirements of this section shall take effect with respect to any rule the proposal of which occurs after #ij days after the date of the enactment of this ,act4 ,,iii ,authorization of ,appropriations for ,lead ,hazard ,reduction #cja4 ,,hud grants for lead hazards reduction in housing ,there is authorized to be appropriated for grants under section #aja of this ,act and section #ajaa of the ,residential ,lead-,based ,paint ,hazard ,reduction ,act of #aiib 7#db ,u4,s4,c4 #dheb7 #i1ejj1jjj1jjj for each of fiscal years #bjbj through #bjbi4 #cjb4 ,,epa funding for lead exposure reduction ,there is authorized to be appropriated such sums as may be necessary for each of fiscal years #bjbj through #bjbi to carry out-- 7#a7 title ,,ii of this ,act2 7#b7 title ,,iv of the ,toxic ,substances ,control ,act 7#ae ,u4,s4,c4 #bfha et seq47 and 7#c7 such other lead hazard reduction activities as the ,administrator of the ,environmental ,protection ,agency is authorized under law to undertake1 including activities under the ,safe ,drinking ,water ,act 7#db ,u4,s4,c4 #cjj;f et seq474 ,,iv ,revenue ,provisions #dja4 ,partnership interests transferred in connection with performance of services 7a7 ,modification to election ,to include partnership interest in gross income in year of transfer ,subsection 7c7 of section #hc is amended by redesignating paragraph 7#d7 as paragraph 7#e7 and by inserting after paragraph 7#c7 the following new paragraph3 7#d7 ,partnership interests ,except as provided by the ,secretary-- 7,a7 ,in general ,in the case of any transfer of an interest in a partnership in connection with the provision of services to 7or for the benefit of7 such partnership-- 7i7 the fair market value of such interest shall be treated for purposes of this section as being equal to the amount of the distribution which the partner would receive if the partnership sold 7at the time of the transfer7 all of its assets at fair market value and distributed the proceeds of such sale 7reduced by the liabilities of the partnership7 to its partners in liquidation of the partnership1 and 7ii7 the person receiving such interest shall be treated as having made the election under subsection 7b77#a7 unless such person makes an election under this paragraph to have such subsection not apply4 7,b7 ,election ,the election under subparagraph 7,a77ii7 shall be made under rules similar to the rules of subsection 7b77#b74 4 7b7 ,effective date ,the amendments made by this section shall apply to interests in partnerships transferred after the date of the enactment of this ,act4 #djb4 ,special rules for partners providing investment management services to partnerships 7a7 ,in general ,part ,i of subchapter ,k of chapter #a is amended by adding at the end the following new section3 #gaj4 ,special rules for partners providing investment management services to partnerships 7a7 ,treatment of distributive share of partnership items ,for purposes of this title1 in the case of an investment services partnership interest-- 7#a7 ,in general ,notwithstanding section #gjb7;b7-- 7,a7 an amount equal to the net capital gain with respect to such interest for any partnership taxable year shall be treated as ordinary income1 and 7,b7 subject to the limitation of paragraph 7#b71 an amount equal to the net capital loss with respect to such interest for any partnership taxable year shall be treated as an ordinary loss4 7#b7 ,recharacterization of losses limited to recharacterized gains ,the amount treated as ordinary loss under paragraph 7#a77;,b7 for any taxable year shall not exceed the excess 7if any7 of-- 7,a7 the aggregate amount treated as ordinary income under paragraph 7#a77;,a7 with respect to the investment services partnership interest for all preceding partnership taxable years to which this section applies1 over 7,b7 the aggregate amount treated as ordinary loss under paragraph 7#a77;,b7 with respect to such interest for all preceding partnership taxable years to which this section applies4 7#c7 ,allocation to items of gain and loss 7,a7 ,net capital gain ,the amount treated as ordinary income under paragraph 7#a77;,a7 shall be allocated ratably among the items of long-term capital gain taken into account in determining such net capital gain4 7,b7 ,net capital loss ,the amount treated as ordinary loss under paragraph 7#a77;,b7 shall be allocated ratably among the items of long-term capital loss and short-term capital loss taken into account in determining such net capital loss4 7#d7 ,terms relating to capital gains and losses ,for purposes of this section-- 7,a7 ,in general ,net capital gain1 long-term capital gain1 and long-term capital loss1 with respect to any investment services partnership interest for any taxable year1 shall be determined under section #abbb1 except that such section shall be applied-- 7i7 without regard to the recharacterization of any item as ordinary income or ordinary loss under this section1 7ii7 by only taking into account items of gain and loss taken into account by the holder of such interest under section #gjb 7other than subsection 7a77#i7 thereof7 with respect to such interest for such taxable year1 and 7iii7 by treating property which is taken into account in determining gains and losses to which section #abca applies as capital assets held for more than #a year4 7,b7 ,net capital loss ,the term net capital loss means the excess of the losses from sales or exchanges of capital assets over the gains from such sales or exchanges4 ,rules similar to the rules of clauses 7i7 through 7iii7 of subparagraph 7,a7 shall apply for purposes of the preceding sentence4 7#e7 ,special rule for dividends ,any dividend allocated with respect to any investment services partnership interest shall not be treated as qualified dividend income for purposes of section #a7;h74 7#f7 ,special rule for qualified small business stock ,section #abjb shall not apply to any gain from the sale or exchange of qualified small business stock 7as defined in section #abjb7;c77 allocated with respect to any investment services partnership interest4 7b7 ,dispositions of partnership interests 7#a7 ,gain 7,a7 ,in general ,any gain on the disposition of an investment services partnership interest shall be-- 7i7 treated as ordinary income1 and 7ii7 recognized notwithstanding any other provision of this subtitle4 7,b7 ,gift and transfers at death ,in the case of a disposition of an investment services partnership interest by gift or by reason of death of the taxpayer-- 7i7 subparagraph 7,a7 shall not apply1 7ii7 such interest shall be treated as an investment services partnership interest in the hands of the person acquiring such interest1 and 7iii7 any amount that would have been treated as ordinary income under this subsection had the decedent sold such interest immediately before death shall be treated as an item of income in respect of a decedent under section #fia4 7#b7 ,loss ,any loss on the disposition of an investment services partnership interest shall be treated as an ordinary loss to the extent of the excess 7if any7 of-- 7,a7 the aggregate amount treated as ordinary income under subsection 7a7 with respect to such interest for all partnership taxable years to which this section applies1 over 7,b7 the aggregate amount treated as ordinary loss under subsection 7a7 with respect to such interest for all partnership taxable years to which this section applies4 7#c7 ,election with respect to certain exchanges ,paragraph 7#a77;,a77ii7 shall not apply to the contribution of an investment services partnership interest to a partnership in exchange for an interest in such partnership if-- 7,a7 the taxpayer makes an irrevocable election to treat the partnership interest received in the exchange as an investment services partnership interest1 and 7,b7 the taxpayer agrees to comply with such reporting and recordkeeping requirements as the ,secretary may prescribe4 7#d7 ,distributions of partnership property 7,a7 ,in general ,in the case of any distribution of property by a partnership with respect to any investment services partnership interest held by a partner1 the partner receiving such property shall recognize gain equal to the excess 7if any7 of-- 7i7 the fair market value of such property at the time of such distribution1 over 7ii7 the adjusted basis of such property in the hands of such partner 7determined without regard to subparagraph 7,c774 7,b7 ,treatment of gain as ordinary income ,any gain recognized by such partner under subparagraph 7,a7 shall be treated as ordinary income to the same extent and in the same manner as the increase in such partner's distributive share of the taxable income of the partnership would be treated under subsection 7a7 if1 immediately prior to the distribution1 the partnership had sold the distributed property at fair market value and all of the gain from such disposition were allocated to such partner4 ,for purposes of applying subsection 7a77#b71 any gain treated as ordinary income under this subparagraph shall be treated as an amount treated as ordinary income under subsection 7a77#a77;,a74 7,c7 ,adjustment of basis ,in the case a distribution to which subparagraph 7,a7 applies1 the basis of the distributed property in the hands of the distributee partner shall be the fair market value of such property4 7,d7 ,special rules with respect to mergers1 divisions1 and technical terminations ,in the case of a taxpayer which satisfies requirements similar to the requirements of subparagraphs 7,a7 and 7,b7 of paragraph 7#c71 this paragraph and paragraph 7#a77;,a77ii7 shall not apply to the distribution of a partnership interest if such distribution is in connection with a contribution 7or deemed contribution7 of any property of the partnership to which section #gba applies pursuant to a transaction described in paragraph 7#a77;,b7 or 7#b7 of section #gjh7;b74 7c7 ,investment services partnership interest ,for purposes of this section-- 7#a7 ,in general ,the term investment services partnership interest means any interest in an investment partnership acquired or held by any person in connection with the conduct of a trade or business described in paragraph 7#b7 by such person 7or any person related to such person74 ,an interest in an investment partnership held by any person-- 7,a7 shall not be treated as an investment services partnership interest for any period before the first date on which it is so held in connection with such a trade or business1 7,b7 shall not cease to be an investment services partnership interest merely because such person holds such interest other than in connection with such a trade or business1 and 7,c7 shall be treated as an investment services partnership interest if acquired from a related person in whose hands such interest was an investment services partnership interest4 7#b7 ,businesses to which this section applies ,a trade or business is described in this paragraph if such trade or business primarily involves the performance of any of the following services with respect to assets held 7directly or indirectly7 by one or more investment partnerships referred to in paragraph 7#a73 7,a7 ,advising as to the advisability of investing in1 purchasing1 or selling any specified asset4 7,b7 ,managing1 acquiring1 or disposing of any specified asset4 7,c7 ,arranging financing with respect to acquiring specified assets4 7,d7 ,any activity in support of any service described in subparagraphs 7,a7 through 7,c74 7#c7 ,investment partnership 7,a7 ,in general ,the term investment partnership means any partnership if1 at the end of any two consecutive calendar quarters ending after the date of enactment of this section-- 7i7 substantially all of the assets of the partnership are specified assets 7determined without regard to any section #aig intangible within the meaning of section #aig7;d771 and 7ii7 less than #ge percent of the capital of the partnership is attributable to qualified capital interests which constitute property held in connection with a trade or business of the owner of such interest4 7,b7 ,look-through of certain wholly owned entities for purposes of determining assets of the partnership 7i7 ,in general ,for purposes of determining the assets of a partnership under subparagraph 7,a77i7-- 7,i7 any interest in a specified entity shall not be treated as an asset of such partnership1 and 7,,ii7 such partnership shall be treated as holding its proportionate share of each of the assets of such specified entity4 7ii7 ,specified entity ,for purposes of clause 7i71 the term specified entity means1 with respect to any partnership 7hereafter referred to as the upper-tier partnership71 any person which engages in the same trade or business as the upper-tier partnership and is-- 7,i7 a partnership all of the capital and profits interests of which are held directly or indirectly by the upper-tier partnership1 or 7,,ii7 a foreign corporation which does not engage in a trade or business in the ,united ,states and all of the stock of which is held directly or indirectly by the upper-tier partnership4 7,c7 ,special rules for determining if property held in connection with trade or business 7i7 ,in general ,except as otherwise provided by the ,secretary1 solely for purposes of determining whether any interest in a partnership constitutes property held in connection with a trade or business under subparagraph 7,a77ii7-- 7,i7 a trade or business of any person closely related to the owner of such interest shall be treated as a trade or business of such owner1 7,,ii7 such interest shall be treated as held by a person in connection with a trade or business during any taxable year if such interest was so held by such person during any #c taxable years preceding such taxable year1 and 7,,iii7 paragraph 7#e77;,b7 shall not apply4 7ii7 ,closely related persons ,for purposes of clause 7i77,i71 a person shall be treated as closely related to another person if1 taking into account the rules of section #bfg7;c71 the relationship between such persons is described in-- 7,i7 paragraph 7#a7 or 7#i7 of section #bfg7;b71 or 7,,ii7 section #bfg7;b77#d71 but solely in the case of a trust with respect to which each current beneficiary is the grantor or a person whose relationship to the grantor is described in paragraph 7#a7 or 7#i7 of section #bfg7;b74 7,d7 ,antiabuse rules ,the ,secretary may issue regulations or other guidance which prevent the avoidance of the purposes of subparagraph 7,a71 including regulations or other guidance which treat convertible and contingent debt 7and other debt having the attributes of equity7 as a capital interest in the partnership4 7,e7 ,controlled groups of entities 7i7 ,in general ,in the case of a controlled group of entities1 if an interest in the partnership received in exchange for a contribution to the capital of the partnership by any member of such controlled group would 7in the hands of such member7 constitute property held in connection with a trade or business1 then any interest in such partnership held by any member of such group shall be treated for purposes of subparagraph 7,a7 as constituting 7in the hands of such member7 property held in connection with a trade or business4 7ii7 ,controlled group of entities ,for purposes of clause 7i71 the term controlled group of entities means a controlled group of corporations as defined in section #aefc7;a77#a71 applied without regard to subsections 7a77#d7 and 7b77#b7 of section #aefc4 ,a partnership or any other entity 7other than a corporation7 shall be treated as a member of a controlled group of entities if such entity is controlled 7within the meaning of section #ied7;d77#c77 by members of such group 7including any entity treated as a member of such group by reason of this sentence74 7,f7 ,special rule for corporations ,for purposes of this paragraph1 in the case of a corporation1 the determination of whether property is held in connection with a trade or business shall be determined as if the taxpayer were an individual4 7#d7 ,specified asset ,the term specified asset means securities 7as defined in section #dge7;c77#b7 without regard to the last sentence thereof71 real estate held for rental or investment1 interests in partnerships1 commodities 7as defined in section #dge7;e77#b771 cash or cash equivalents1 or options or derivative contracts with respect to any of the foregoing4 7#e7 ,related persons 7,a7 ,in general ,a person shall be treated as related to another person if the relationship between such persons is described in section #bfg7;b7 or #gjg7;b74 7,b7 ,attribution of partner services ,any service described in paragraph 7#b7 which is provided by a partner of a partnership shall be treated as also provided by such partnership4 7d7 ,exception for certain capital interests 7#a7 ,in general ,in the case of any portion of an investment services partnership interest which is a qualified capital interest1 all items of gain and loss 7and any dividends7 which are allocated to such qualified capital interest shall not be taken into account under subsection 7a7 if-- 7,a7 allocations of items are made by the partnership to such qualified capital interest in the same manner as such allocations are made to other qualified capital interests held by partners who do not provide any services described in subsection 7c77#b7 and who are not related to the partner holding the qualified capital interest1 and 7,b7 the allocations made to such other interests are significant compared to the allocations made to such qualified capital interest4 7#b7 ,authority to provide exceptions to allocation requirements ,to the extent provided by the ,secretary in regulations or other guidance-- 7,a7 ,allocations to portion of qualified capital interest ,paragraph 7#a7 may be applied separately with respect to a portion of a qualified capital interest4 7,b7 ,no or insignificant allocations to nonservice providers ,in any case in which the requirements of paragraph 7#a77;,b7 are not satisfied1 items of gain and loss 7and any dividends7 shall not be taken into account under subsection 7a7 to the extent that such items are properly allocable under such regulations or other guidance to qualified capital interests4 7,c7 ,allocations to service providers' qualified capital interests which are less than other allocations ,allocations shall not be treated as failing to meet the requirement of paragraph 7#a77;,a7 merely because the allocations to the qualified capital interest represent a lower return than the allocations made to the other qualified capital interests referred to in such paragraph4 7#c7 ,special rule for changes in services and capital contributions ,in the case of an interest in a partnership which was not an investment services partnership interest and which1 by reason of a change in the services with respect to assets held 7directly or indirectly7 by the partnership or by reason of a change in the capital contributions to such partnership1 becomes an investment services partnership interest1 the qualified capital interest of the holder of such partnership interest immediately after such change shall not1 for purposes of this subsection1 be less than the fair market value of such interest 7determined immediately before such change74 7#d7 ,special rule for tiered partnerships ,except as otherwise provided by the ,secretary1 in the case of tiered partnerships1 all items which are allocated in a manner which meets the requirements of paragraph 7#a7 to qualified capital interests in a lower-tier partnership shall retain such character to the extent allocated on the basis of qualified capital interests in any upper-tier partnership4 7#e7 ,exception for no-self-charged carry and management fee provisions ,except as otherwise provided by the ,secretary1 an interest shall not fail to be treated as satisfying the requirement of paragraph 7#a77;,a7 merely because the allocations made by the partnership to such interest do not reflect the cost of services described in subsection 7c77#b7 which are provided 7directly or indirectly7 to the partnership by the holder of such interest 7or a related person74 7#f7 ,special rule for dispositions ,in the case of any investment services partnership interest any portion of which is a qualified capital interest1 subsection 7b7 shall not apply to so much of any gain or loss as bears the same proportion to the entire amount of such gain or loss as-- 7,a7 the distributive share of gain or loss that would have been allocated to the qualified capital interest 7consistent with the requirements of paragraph 7#a77 if the partnership had sold all of its assets at fair market value immediately before the disposition1 bears to 7,b7 the distributive share of gain or loss that would have been so allocated to the investment services partnership interest of which such qualified capital interest is a part4 7#g7 ,qualified capital interest ,for purposes of this section-- 7,a7 ,in general ,the term qualified capital interest means so much of a partner's interest in the capital of the partnership as is attributable to-- 7i7 the fair market value of any money or other property contributed to the partnership in exchange for such interest 7determined without regard to section #geb7;a771 7ii7 any amounts which have been included in gross income under section #hc with respect to the transfer of such interest1 and 7iii7 the excess 7if any7 of-- 7,i7 any items of income and gain taken into account under section #gjb with respect to such interest1 over 7,,ii7 any items of deduction and loss so taken into account4 7,b7 ,adjustment to qualified capital interest 7i7 ,distributions and losses ,the qualified capital interest shall be reduced by distributions from the partnership with respect to such interest and by the excess 7if any7 of the amount described in subparagraph 7,a77iii77,,ii7 over the amount described in subparagraph 7,a77iii77,i74 7ii7 ,special rule for contributions of property ,in the case of any contribution of property described in subparagraph 7,a77i7 with respect to which the fair market value of such property is not equal to the adjusted basis of such property immediately before such contribution1 proper adjustments shall be made to the qualified capital interest to take into account such difference consistent with such regulations or other guidance as the ,secretary may provide4 7,c7 ,technical terminations1 etc41 disregarded ,no increase or decrease in the qualified capital interest of any partner shall result from a termination1 merger1 consolidation1 or division described in section #gjh1 or any similar transaction4 7#h7 ,treatment of certain loans 7,a7 ,proceeds of partnership loans not treated as qualified capital interest of service providing partners ,for purposes of this subsection1 an investment services partnership interest shall not be treated as a qualified capital interest to the extent that such interest is acquired in connection with the proceeds of any loan or other advance made or guaranteed1 directly or indirectly1 by any other partner or the partnership 7or any person related to any such other partner or the partnership74 ,the preceding sentence shall not apply to the extent the loan or other advance is repaid before the date of the enactment of this section unless such repayment is made with the proceeds of a loan or other advance described in the preceding sentence4 7,b7 ,reduction in allocations to qualified capital interests for loans from nonservice-providing partners to the partnership ,for purposes of this subsection1 any loan or other advance to the partnership made or guaranteed1 directly or indirectly1 by a partner not providing services described in subsection 7c77#b7 to the partnership 7or any person related to such partner7 shall be taken into account in determining the qualified capital interests of the partners in the partnership4 7#i7 ,special rule for qualified family partnerships 7,a7 ,in general ,in the case of any specified family partnership interest1 paragraph 7#a77;,a7 shall be applied without regard to the phrase and who are not related to the partner holding the qualified capital interest4 7,b7 ,specified family partnership interest ,for purposes of this paragraph1 the term specified family partnership interest means any investment services partnership interest if-- 7i7 such interest is an interest in a qualified family partnership1 7ii7 such interest is held by a natural person or by a trust with respect to which each beneficiary is a grantor or a person whose relationship to the grantor is described in section #bfg7;b77#a71 and 7iii7 all other interests in such qualified family partnership with respect to which significant allocations are made 7within the meaning of paragraph 7#a77;,b7 and in comparison to the allocations made to the interest described in clause 7ii77 are held by persons who-- 7,i7 are related to the natural person or trust referred to in clause 7ii71 or 7,,ii7 provide services described in subsection 7c77#b74 7,c7 ,qualified family partnership ,for purposes of this paragraph1 the term qualified family partnership means any partnership if-- 7i7 all of the capital and profits interests of such partnership are held by-- 7,i7 specified family members1 7,,ii7 any person closely related 7within the meaning of subsection 7c77#c77;,c77ii77 to a specified family member1 or 7,,iii7 any other person 7not described in subclause 7,i7 or 7,,ii77 if such interest is an investment services partnership interest with respect to such person1 and 7ii7 such partnership does not hold itself out to the public as an investment advisor4 7,d7 ,specified family members ,for purposes of subparagraph 7,c71 individuals shall be treated as specified family members if such individuals would be treated as one person under the rules of section #acfa7;c77#a7 if the applicable date 7within the meaning of subparagraph 7,b77iii7 thereof7 were the latest of-- 7i7 the date of the establishment of the partnership1 7ii7 the earliest date that the common ancestor holds a capital or profits interest in the partnership1 or 7iii7 the date of the enactment of this section4 7e7 ,other income and gain in connection with investment management services 7#a7 ,in general ,if-- 7,a7 a person performs 7directly or indirectly7 investment management services for any investment entity1 7,b7 such person holds 7directly or indirectly7 a disqualified interest with respect to such entity1 and 7,c7 the value of such interest 7or payments thereunder7 is substantially related to the amount of income or gain 7whether or not realized7 from the assets with respect to which the investment management services are performed1 any income or gain with respect to such interest shall be treated as ordinary income4 ,rules similar to the rules of subsections 7a77#e7 and 7d7 shall apply for purposes of this subsection4 7#b7 ,definitions ,for purposes of this subsection-- 7,a7 ,disqualified interest 7i7 ,in general ,the term disqualified interest means1 with respect to any investment entity-- 7,i7 any interest in such entity other than indebtedness1 7,,ii7 convertible or contingent debt of such entity1 7,,iii7 any option or other right to acquire property described in subclause 7,i7 or 7,,ii71 and 7,,iv7 any derivative instrument entered into 7directly or indirectly7 with such entity or any investor in such entity4 7ii7 ,exceptions ,such term shall not include-- 7,i7 a partnership interest1 7,,ii7 except as provided by the ,secretary1 any interest in a taxable corporation1 and 7,,iii7 except as provided by the ,secretary1 stock in an ,s corporation4 7,b7 ,taxable corporation ,the term taxable corporation means-- 7i7 a domestic ,c corporation1 or 7ii7 a foreign corporation substantially all of the income of which is-- 7,i7 effectively connected with the conduct of a trade or business in the ,united ,states1 or 7,,ii7 subject to a comprehensive foreign income tax 7as defined in section #deg;,a7d77#b774 7,c7 ,investment management services ,the term investment management services means a substantial quantity of any of the services described in subsection 7c77#b74 7,d7 ,investment entity ,the term investment entity means any entity which1 if it were a partnership1 would be an investment partnership4 7f7 ,exception for domestic ,c corporations ,except as otherwise provided by the ,secretary1 in the case of a domestic ,c corporation-- 7#a7 subsections 7a7 and 7b7 shall not apply to any item allocated to such corporation with respect to any investment services partnership interest 7or to any gain or loss with respect to the disposition of such an interest71 and 7#b7 subsection 7e7 shall not apply4 7g7 ,regulations ,the ,secretary shall prescribe such regulations or other guidance as is necessary or appropriate to carry out the purposes of this section1 including regulations or other guidance to-- 7#a7 require such reporting and recordkeeping by any person in such manner and at such time as the ,secretary may prescribe for purposes of enabling the partnership to meet the requirements of section #fjca with respect to any item described in section #gjb7;a77#i71 7#b7 provide modifications to the application of this section 7including treating related persons as not related to one another7 to the extent such modification is consistent with the purposes of this section1 7#c7 prevent the avoidance of the purposes of this section 7including through the use of qualified family partnerships71 and 7#d7 coordinate this section with the other provisions of this title4 7h7 ,cross reference ,for #dj-percent penalty on certain underpayments due to the avoidance of this section1 see section #fffb4 4 7b7 ,application of section #gea to indirect dispositions of investment services partnership interests 7#a7 ,in general ,subsection 7a7 of section #gea is amended by striking or at the end of paragraph 7#a71 by inserting or at the end of paragraph 7#b71 and by inserting after paragraph 7#b7 the following new paragraph3 7#c7 investment services partnership interests held by the partnership1 4 7#b7 ,certain distributions treated as sales or exchanges ,subparagraph 7,a7 of section #gea7;b77#a7 is amended by striking or at the end of clause 7i71 by inserting or at the end of clause 7ii71 and by inserting after clause 7ii7 the following new clause3 7iii7 investment services partnership interests held by the partnership1 4 7#c7 ,application of special rules in the case of tiered partnerships ,subsection 7f7 of section #gea is amended-- 7,a7 by striking or at the end of paragraph 7#a71 by inserting or at the end of paragraph 7#b71 and by inserting after paragraph 7#b7 the following new paragraph3 7#c7 an investment services partnership interest held by the partnership1 1 and 7,b7 by striking partner4 and inserting partner 7other than a partnership in which it holds an investment services partnership interest744 7#d7 ,investment services partnership interests2 qualified capital interests ,section #gea is amended by adding at the end the following new subsection3 7g7 ,investment services partnership interests ,for purposes of this section-- 7#a7 ,in general ,the term investment services partnership interest has the meaning given such term by section #gaj7;c74 7#b7 ,adjustments for qualified capital interests ,the amount to which subsection 7a7 applies by reason of paragraph 7#c7 thereof shall not include so much of such amount as is attributable to any portion of the investment services partnership interest which is a qualified capital interest 7determined under rules similar to the rules of section #gaj7;d774 7#c7 ,exception for publicly traded partnerships ,except as otherwise provided by the ,secretary1 in the case of an exchange of an interest in a publicly traded partnership 7as defined in section #ggjd7 to which subsection 7a7 applies-- 7,a7 this section shall be applied without regard to subsections 7a77#c71 7b77#a77;,a77iii71 and 7f77#c71 and 7,b7 such partnership shall be treated as owning its proportionate share of the property of any other partnership in which it is a partner4 7#d7 ,recognition of gains ,any gain with respect to which subsection 7a7 applies by reason of paragraph 7#c7 thereof shall be recognized notwithstanding any other provision of this title4 7#e7 ,coordination with inventory items ,an investment services partnership interest held by the partnership shall not be treated as an inventory item of the partnership4 7#f7 ,prevention of double counting ,under regulations or other guidance prescribed by the ,secretary1 subsection 7a77#c7 shall not apply with respect to any amount to which section #gaj applies4 7#g7 ,valuation methods ,the ,secretary shall prescribe regulations or other guidance which provide the acceptable methods for valuing investment services partnership interests for purposes of this section4 4 7c7 ,treatment for purposes of section #ggjd ,subsection 7d7 of section #ggjd is amended by adding at the end the following new paragraph3 7#f7 ,income from certain carried interests not qualified 7,a7 ,in general ,specified carried interest income shall not be treated as qualifying income4 7,b7 ,specified carried interest income ,for purposes of this paragraph-- 7i7 ,in general ,the term specified carried interest income means-- 7,i7 any item of income or gain allocated to an investment services partnership interest 7as defined in section #gaj7;c77 held by the partnership1 7,,ii7 any gain on the disposition of an investment services partnership interest 7as so defined7 or a partnership interest to which 7in the hands of the partnership7 section #gea applies1 and 7,,iii7 any income or gain taken into account by the partnership under subsection 7b77#d7 or 7e7 of section #gaj4 7ii7 ,exception for qualified capital interests ,a rule similar to the rule of section #gaj7;d7 shall apply for purposes of clause 7i74 7,c7 ,coordination with other provisions ,subparagraph 7,a7 shall not apply to any item described in paragraph 7#a77;,e7 7or so much of paragraph 7#a77;,f7 as relates to paragraph 7#a77;,e774 7,d7 ,special rules for certain partnerships 7i7 ,certain partnerships owned by real estate investment trusts ,subparagraph 7,a7 shall not apply in the case of a partnership which meets each of the following requirements3 7,i7 ,such partnership is treated as publicly traded under this section solely by reason of interests in such partnership being convertible into interests in a real estate investment trust which is publicly traded4 7,,ii7 ,fifty percent or more of the capital and profits interests of such partnership are owned1 directly or indirectly1 at all times during the taxable year by such real estate investment trust 7determined with the application of section #bfg7;c774 7,,iii7 ,such partnership meets the requirements of paragraphs 7#b71 7#c71 and 7#d7 of section #hef7;c74 7ii7 ,certain partnerships owning other publicly traded partnerships ,subparagraph 7,a7 shall not apply in the case of a partnership which meets each of the following requirements3 7,i7 ,substantially all of the assets of such partnership consist of interests in one or more publicly traded partnerships 7determined without regard to subsection 7b77#b774 7,,ii7 ,substantially all of the income of such partnership is ordinary income or section #abca gain 7as defined in section #abca7;a77#c774 7,e7 ,transitional rule ,subparagraph 7,a7 shall not apply to any taxable year of the partnership beginning before the date which is #aj years after the date of the enactment of this paragraph4 4 7d7 ,imposition of penalty on underpayments 7#a7 ,in general ,subsection 7b7 of section #fffb is amended by inserting after paragraph 7#g7 the following new paragraph3 7#h7 ,the application of section #gaj7;e7 or the regulations or other guidance prescribed under section #gaj7;g7 to prevent the avoidance of the purposes of section #gaj4 4 7#b7 ,amount of penalty 7,a7 ,in general ,section #fffb is amended by adding at the end the following new subsection3 7k7 ,increase in penalty in case of property transferred for investment management services ,in the case of any portion of an underpayment to which this section applies by reason of subsection 7b77#h71 subsection 7a7 shall be applied with respect to such portion by substituting #dj percent for #bj percent4 4 7,b7 ,conforming amendment ,subparagraph 7,b7 of section #fffb;,a7e77#b7 is amended by striking or 7i7 and inserting 1 7i71 or 7k74 7#c7 ,special rules for application of reasonable cause exception ,subsection 7c7 of section #fffd is amended-- 7,a7 by redesignating paragraphs 7#c7 and 7#d7 as paragraphs 7#d7 and 7#e71 respectively2 7,b7 by striking paragraph 7#c7 in paragraph 7#e77;,a71 as so redesignated1 and inserting paragraph 7#d72 and 7,c7 by inserting after paragraph 7#b7 the following new paragraph3 7#c7 ,special rule for underpayments attributable to investment management services 7,a7 ,in general ,paragraph 7#a7 shall not apply to any portion of an underpayment to which section #fffb applies by reason of subsection 7b77#h7 unless-- 7i7 the relevant facts affecting the tax treatment of the item are adequately disclosed1 7ii7 there is or was substantial authority for such treatment1 and 7iii7 the taxpayer reasonably believed that such treatment was more likely than not the proper treatment4 7,b7 ,rules relating to reasonable belief ,rules similar to the rules of subsection 7d77#c7 shall apply for purposes of subparagraph 7,a77iii74 4 7e7 ,income and loss from investment services partnership interests taken into account in determining net earnings from self-,employment 7#a7 ,internal ,revenue ,code 7,a7 ,in general ,section #adjb7;a7 is amended by striking and at the end of paragraph 7#af71 by striking the period at the end of paragraph 7#ag7 and inserting 2 and1 and by inserting after paragraph 7#ag7 the following new paragraph3 7#ah7 notwithstanding the preceding provisions of this subsection1 in the case of any individual engaged in the trade or business of providing services described in section #gaj7;c77#b7 with respect to any entity1 investment services partnership income or loss 7as defined in subsection 7m77 of such individual with respect to such entity shall be taken into account in determining the net earnings from self-employment of such individual4 4 7,b7 ,investment services partnership income or loss ,section #adjb is amended by adding at the end the following new subsection3 7m7 ,investment services partnership income or loss ,for purposes of subsection 7a7-- 7#a7 ,in general ,the term investment services partnership income or loss means1 with respect to any investment services partnership interest 7as defined in section #gaj7;c77 or disqualified interest 7as defined in section #gaj7;e771 the net of-- 7,a7 the amounts treated as ordinary income or ordinary loss under subsections 7b7 and 7e7 of section #gaj with respect to such interest1 7,b7 all items of income1 gain1 loss1 and deduction allocated to such interest1 and 7,c7 the amounts treated as realized from the sale or exchange of property other than a capital asset under section #gea with respect to such interest4 7#b7 ,exception for qualified capital interests ,a rule similar to the rule of section #gaj7;d7 shall apply for purposes of applying paragraph 7#a77;,b74 4 7#b7 ,social ,security ,act ,section #baa7;a7 of the ,social ,security ,act is amended by striking and at the end of paragraph 7#ae71 by striking the period at the end of paragraph 7#af7 and inserting 2 and1 and by inserting after paragraph 7#af7 the following new paragraph3 7#ag7 ,notwithstanding the preceding provisions of this subsection1 in the case of any individual engaged in the trade or business of providing services described in section #gaj7;c77#b7 of the ,internal ,revenue ,code of #aihf with respect to any entity1 investment services partnership income or loss 7as defined in section #adjb7m7 of such ,code7 shall be taken into account in determining the net earnings from self-employment of such individual4 4 7f7 ,separate accounting by partner ,section #gjb7;a7 is amended by striking and at the end of paragraph 7#g71 by striking the period at the end of paragraph 7#h7 and inserting 1 and1 and by inserting after paragraph 7#h7 the following3 7#i7 any amount treated as ordinary income or loss under subsection 7a71 7b71 or 7e7 of section #gaj4 4 7g7 ,conforming amendments 7#a7 ,subsection 7d7 of section #gca is amended by inserting section #gaj7;b77#d7 7relating to distributions of partnership property71 after to the extent otherwise provided by4 7#b7 ,section #gda is amended by inserting or section #gaj 7relating to special rules for partners providing investment management services to partnerships7 before the period at the end4 7#c7 ,the table of sections for part ,i of subchapter ,k of chapter #a is amended by adding at the end the following new item3 ,sec4 #gaj4 ,special rules for partners providing investment management services to partnerships4 4 7#d7 ,part ,,iv of subchapter ,o of chapter #a is amended by striking section #ajfa1 and the table of sections for such part is amended by striking the item relating to section #ajfa4 7h7 ,effective date 7#a7 ,in general ,except as otherwise provided in this subsection1 the amendments made by this section shall apply to taxable years ending after the date of the enactment of this ,act4 7#b7 ,partnership taxable years which include effective date ,in applying section #gaj7;a7 of the ,internal ,revenue ,code of #aihf 7as added by this section7 in the case of any partnership taxable year which includes the date of the enactment of this ,act1 the amount of the net capital gain referred to in such section shall be treated as being the lesser of the net capital gain for the entire partnership taxable year or the net capital gain determined by only taking into account items attributable to the portion of the partnership taxable year which is after such date4 7#c7 ,dispositions of partnership interests 7,a7 ,in general ,section #gaj7;b7 of such ,code 7as added by this section7 shall apply to dispositions and distributions after the date of the enactment of this ,act4 7,b7 ,indirect dispositions ,the amendments made by subsection 7b7 shall apply to transactions after the date of the enactment of this ,act4 7#d7 ,other income and gain in connection with investment management services ,section #gaj7;e7 of such ,code 7as added by this section7 shall take effect on the date of the enactment of this ,act4 #djc4 ,return to pre-#bjah estate and gift tax basic exclusion amount 7a7 ,in general ,section #bjaj7;c77#c7 of the ,internal ,revenue ,code of #aihf is amended by striking subparagraph 7,c74 7b7 ,effective date ,the amendments made by this section shall apply to estates of decedents dying and gifts made after the date of the enactment of this ,act4