,i  #aaf? ,,congress  #a/ ,session  ,h4 
,r4 #dcba  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,septemb] #ab1        
#bjai,mr4 ,ryan introduc$ ! foll[+ bill2
 :i* 0 ref]r$ to ! ,committee on ,en]gy 
& ,comm]ce1 & 9 addition to !           
,committees on ,f9ancial ,s]vices1 &    
,ways & ,means1 = a p]iod to be         
subsequ5tly det]m9$ by ! ,speak]1 9 ea* 
case = consid]ation ( su* provisions z  
fall )9 ! jurisdiction ( ! committee    
conc]n$  ,a ,,bill  ,to elim9ate        
lead-bas$ pipe & tap haz>ds 9 h\s+1 & = 
o!r purposes4  #a4 ,%ort title2 table ( 
cont5ts  7a7 ,%ort title ,?is ,act may  
be cit$ z ! ,grants = ,elim9at+ ! ,toxic
 ,haz>d ( ,environm5tal ,lead 9 ,our    
,t[ns ,act ( #bjai or ! ,,get ,,! ,,lead
 ,,out ,act ( #bjai 4  7b7 ,table (     
cont5ts ,! table ( cont5ts = ?is ,act is
 z foll[s3  ,sec4 #a4 ,%ort title2 table
 ( cont5ts4 ,sec4 #b4 ,purposes4 ,sec4  
#c4 ,def9itions4 ,title ,i--,lead-,bas$ 
,pipe ,haz>d ,r$uction ,sec4 #aja4      
,grants = lead-bas$ pipe haz>d r$uction 

9 h\s+4 ,sec4 #ajb4 ,evaluation &       
r$uction ( lead-bas$ pipe haz>ds 9      
f$]ally assi/$ h\s+4 ,sec4 #ajc4        
,compreh5sive h\s+ af=dability          
/rategies4 ,sec4 #ajd4 ,task =ce on     
lead-bas$ pipe haz>d r$uction & f9anc+4 
,sec4 #aje4 ,national consultation on   
lead-bas$ pipe haz>d r$uction4 ,sec4    
#ajf4 ,guidel9es = lead-bas$ pipe haz>d 
evaluation & r$uction activities4 ,sec4 
#ajg4 ,disclosure ( in=mation conc]n+   
lead ^u transf] ( resid5tial prop]ty4   
,title ,,ii--,lead ,exposure ,r$uction  
,sec4 #bja4 ,lead-bas$ pipe activities  
tra9+ & c]tification4 ,sec4 #bjb4       
,id5tification ( dang]\s levels ( lead4 
,sec4 #bjc4 ,au?oriz$ ,/ate programs4   
,sec4 #bjd4 ,lead abatem5t & measurem5t4
 ,sec4 #bje4 ,lead haz>d in=mation      
pamphlet4 ,sec4 #bjf4 ,regulations4     
,sec4 #bjg4 ,control ( lead-bas$ pipe   
haz>ds at ,f$]al facilities4 ,sec4 #bjh4
 ,prohibit$ ,acts4 ,sec4 #bji4          
,relation%ip to o!r ,f$]al law4 ,sec4   
#baj4 ,g5]al provisions relat+ to       

adm9i/rative proce$+s4 ,title           
,,iii--,au?orization ( ,appropriations =
 ,lead ,haz>d ,r$uction ,sec4 #cja4     
,,hud grants = lead haz>ds r$uction 9   
h\s+4 ,sec4 #cjb4 ,,epa fund+ = lead    
exposure r$uction4 ,title ,,iv--,rev5ue 
,provisions ,sec4 #dja4 ,p>tn]%ip       
int]e/s transf]r$ 9 connection )        
p]=mance ( s]vices4 ,sec4 #djb4 ,special
 rules = p>tn]s provid+ inve/m5t        
managem5t s]vices to p>tn]%ips4 ,sec4   
#djc4 ,return to pre-#bjah e/ate & gift 
tax basic exclusion am\nt4  #b4         
,purposes ,! purposes ( ?is ,act are z  
foll[s3 7#a7 to develop a national      
/rategy to build ! infra/ructure        
necess>y to elim9ate lead-bas$ pipe &   
tap haz>ds 9 h\s+2  7#b7 to reori5t !   
national approa* to ! pres5ce (         
lead-bas$ pipe & taps 9 public & private
 homes to implem5t1 on a priority basis1
 a program to evaluate & r$uce lead-bas$
 pipe haz>ds 9 ! ,nation's build+ /ock2 
7#c7 to enc\rage effective action to    
prev5t *ildhood lead poison+ by e/abli%+

 a workable framework = lead-bas$ pipe &
 tap haz>d evaluation & r$uction & by   
end+ ! curr5t confusion ov] reasonable  
/&>ds ( c>e2  7#d7 to ensure & implem5t 
! def9itions ( lead haz>ds 9 section    
#adag ( ! ,safe ,dr9k+ ,wat] ,act 7#db  
,u4,s4,c4 #cjj;g-#f7 & ensure t !       
exi/5ce ( lead-bas$ pipe & taps haz>ds  
is tak5 into acc\nt 9 ! developm5t (    
,f$]al ,gov]nm5t h\s+ policies & 9 !    
sale1 r5tal & r5ovation ( homes1 &      
ap>tm5ts2  7#e7 to mobilize national    
res\rces exp$iti\sly1 ?r\gh a p>tn]%ip  
among all levels ( gov]nm5t & ! private 
sector1 to develop ! mo/ promis+1       
co/-effective me?ods = evaluat+ & r$uc+ 
lead-bas$ pipe & tap haz>ds2  7#f7 to   
r$uce ! ?reat ( *ildhood lead poison+ 9 
h\s+ own$1 assi/$1 or transf]r$ by !    
,f$]al ,gov]nm5t2 &  7#g7 to educate !  
public conc]n+ ! haz>ds & s\rces (      
lead-bas$ pipes & taps poison+ & /eps to
 r$uce & elim9ate su* haz>ds4  #c4      
,def9itions ,= purposes ( ?is ,act1 !   
foll[+ def9itions %all apply3 7#a7      

,abatem5t ,! t]m abatem5t means any set 
( measures design$ to p]man5tly elim9ate
 lead-bas$ pipe haz>ds 9 accordance )   
/&>ds e/abli%$ by appropriate ,f$]al    
ag5cies4 ,su* t]m includes--  7,a7 !    
removal ( lead-bas$ pipes & taps2  7,b7 
all prep>ation1 cleanup1 disposal1 &    
po/-abatem5t cle>ance te/+ activities   
associat$ ) su* measures2 &  7,c7 all   
repair to damages po/-abatem5t4  7#b7   
,c]tifi$ contractor ,! t]m c]tifi$      
contractor means--  7,a7 a contractor1  
inspector1 or sup]visor :o has complet$ 
a tra9+ program c]tifi$ by ! appropriate
 ,f$]al ag5cy & has met any o!r         
requirem5ts = c]tification or lic5sure  
e/abli%$ by su* ag5cy or :o has be5     
c]tifi$ by any ,/ate ?r\gh a program :i*
 has be5 f\nd by su* ,f$]al ag5cy to be 
at lea/ z rigor\s z ! ,f$]al            
c]tification program2 &  7,b7 work]s or 
design]s :o h fully met tra9+           
requirem5ts e/abli%$ by ! appropriate   
,f$]al ag5cy4  7#c7 ,contract = !       
pur*ase & sale ( resid5tial real prop]ty

 ,! t]m contract = ! pur*ase & sale (   
resid5tial real prop]ty means any       
contract or agreem5t 9 :i* "o p>ty      
agrees to pur*ase an int]e/ 9 real      
prop]ty on :i* !re is situat$ or m      
resid5tial dwell+s us$ or occupi$1 or   
int5d$ to be us$ or occupi$1 9 :ole or 9
 "p1 z ! home or resid5ce ( "o or m     
p]sons4  7#d7 ,evaluation ,! t]m        
evaluation means risk assessm5t1        
inspection1 or risk assessm5t &         
inspection4  7#e7 ,f$]ally assi/$ h\s+  
,! t]m f$]ally assi/$ h\s+ means        
resid5tial dwell+s receiv+ project-bas$ 
assi/ance "u programs includ+--  7,a7   
section #bba7;d77#c7 or #bcf ( !        
,national ,h\s+ ,act 7#ab ,u4,s4,c4     
#agael7d77#c72 #agaez-#a72  7,b7 section
 #aja ( ! ,h\s+ & ,urban ,developm5t    
,act ( #aife 7#ab ,u4,s4,c4 #agjas72    
7,c7 section #h ( ! ,unit$ ,/ates ,h\s+ 
,act ( #aicg 7#db ,u4,s4,c4 #adcg;f72 & 
7,d7 sections #ejb7;a71 #ejd1 #ead1     
#eae1 #eaf1 & #ecc ( ! ,h\s+ ,act (     
#aidi 7#db ,u4,s4,c4 #adgb7;a72 #adgd2  

#adhd2 #adhe2 #adhf2 #adijm74  7#f7     
,f$]ally own$ h\s+ ,! t]m f$]ally own$  
h\s+ means resid5tial dwell+s own$ or   
manag$ by a ,f$]al ag5cy1 or = :i* a    
,f$]al ag5cy is a tru/ee or cons]vator4 
,= ! purpose ( ?is p>agraph1 ! t]m      
,f$]al ag5cy includes ! ,dep>tm5t (     
,h\s+ & ,urban ,developm5t1 ! ,rural    
,h\s+ ,s]vice ( ! ,dep>tm5t (           
,agriculture1 ! ,f$]al ,deposit         
,insurance ,corporation1 ! ,g5]al       
,s]vices ,adm9i/ration1 ! ,dep>tm5t (   
,def5se1 ! ,dep>tm5t ( ,vet]ans         
,affairs1 ! ,dep>tm5t ( ! ,int]ior1 !   
,dep>tm5t ( ,transportation1 & any o!r  
,f$]al ag5cy4  7#g7 ,f$]ally support$ "w
 ,! t]m f$]ally support$ "w means any   
lead haz>d evaluation or r$uction       
activities conduct$ 9 f$]ally own$ or   
assi/$ h\s+ or fund$ 9 :ole or 9 "p     
?r\gh any f9ancial assi/ance program ( !
 ,dep>tm5t ( ,h\s+ & ,urban ,developm5t1
 ! ,rural ,h\s+ ,s]vice ( ! ,dep>tm5t ( 
,agriculture1 or ! ,dep>tm5t ( ,vet]ans 
,affairs4  7#h7 ,inspection ,! t]m      

inspection means an inve/igation to     
det]m9e ! pres5ce ( lead-bas$ pipe or   
taps z provid$ 9 section #ada4hf ( !    
regulations ( ! ,environm5tal           
,protection ,ag5cy 7#dj ,c4,f4,r4       
#aha4df2 relat+ to monitor+ requirem5ts 
= lead & copp] 9 tap wat]7 & ! provision
 ( a report expla9+ ! results ( !       
inve/igation4  7#i7 ,int]im controls ,! 
t]m int]im controls means a set (       
measures design$ to r$uce tempor>ily    
human exposure or likely exposure to    
lead-bas$ pipe haz>ds1 includ+          
specializ$ clean+1 repairs1 ma9t5ance1  
ongo+ monitor+ ( lead-bas$ pipe or      
pot5tial haz>ds1 & ! e/abli%m5t &       
op]ation ( managem5t & resid5t education
 programs4  7#aj7 ,lead-bas$ pipe ,! t]m
 lead-bas$ pipe means any pipe1 includ+ 
fitt+s1 taps1 fixtures1 sold]1 & flux t 
does n satisfy ! def9ition ( lead-free  
e/abli%$ "u section #adag ( ! ,safe     
,dr9k+ ,wat] ,act4  7#aa7 ,lead-bas$    
pipe haz>ds ,! t]m lead-bas$ pipe haz>ds
 means any condition t causes exposure  

to lead f lead-bas$ pipe t w\ld result 9
 adv]se human heal? effects1 z e/abli%$ 
by ! ,environm5tal ,protection ,ag5cy4  
7#ab7 ,mortgage loan ,! t]m mortgage    
loan includes any loan 7o!r ?an tempor>y
 f9anc+ su* z a con/ruction loan7 t--   
7,a7 is secur$ by a fir/ li5 on any     
int]e/ 9 resid5tial real prop]ty2 &     
7,b7 ei!r-- 7i7 is insur$1 gu>ante$1    
made1 or assi/$ by ! ,dep>tm5t ( ,h\s+ &
 ,urban ,developm5t1 ! ,dep>tm5t (      
,vet]ans ,affairs1 or ! ,rural ,h\s+    
,s]vice ( ! ,dep>tm5t ( ,agriculture1 or
 by any o!r ag5cy ( ! ,f$]al ,gov]nm5t2 
or  7ii7 is int5d$ to be sold by ea*    
orig9at+ mortgage in/itution to any     
f$]ally *>t]$ second>y mortgage m>ket   
in/itution4  7#ac7 ,orig9at+ mortgage   
in/itution ,! t]m orig9at+ mortgage     
in/itution means a l5d] t provides      
mortgage loans4  7#ad7 ,priority h\s+ ,!
 t]m priority h\s+ means h\s+ t         
qualifies z af=dable h\s+ "u section    
#bae ( ! ,cran/on-,gonzalez ,national   
,af=dable ,h\s+ ,act 7#db ,u4,s4,c4     

#abgde71 includ+ h\s+ t receives        
assi/ance "u subsection 7b7 or 7o7 (    
section #h ( ! ,unit$ ,/ates ,h\s+ ,act 
( #aicg 7#db ,u4,s4,c4 #adcg;f74  7#ae7 
,public h\s+ ,! t]m public h\s+ has !   
mean+ giv5 su* t]m 9 section #c7;b7 ( ! 
,unit$ ,/ates ,h\s+ ,act ( #aicg 7#db   
,u4,s4,c4 #adcg;a7b774  7#af7 ,r$uction 
,! t]m r$uction means measures design$  
to r$uce or elim9ate human exposure to  
lead-bas$ pipe haz>ds ?r\gh me?ods      
includ+ int]im controls & abatem5t4     
7#ag7 ,resid5tial dwell+ ,! t]m         
resid5tial dwell+ means-- 7,a7 a        
s+le-family dwell+1 includ+ atta*$      
/ructures su* z por*es & /oops2 or  7,b7
 a s+le-family dwell+ unit 9 a /ructure 
t conta9s m ?an #a sep>ate resid5tial   
dwell+ unit1 9 :i* ea* su* unit is us$  
or occupi$1 or int5d$ to be us$ or      
occupi$1 9 :ole or 9 "p1 z ! home or    
resid5ce ( "o or m p]sons4  7#ah7       
,resid5tial real prop]ty ,! t]m         
resid5tial real prop]ty means real      
prop]ty on :i* !re is situat$ "o or m   

resid5tial dwell+s us$ or occupi$1 or   
int5d$ to be us$ or occupi$1 9 :ole or 9
 "p1 z ! home or resid5ce ( "o or m     
p]sons4  7#ai7 ,risk assessm5t ,! t]m   
risk assessm5t means an on-site         
inve/igation to det]m9e & report !      
exi/5ce1 nature1 sev]ity1 & location (  
lead-bas$ pipe haz>ds 9 resid5tial      
dwell+s1 includ+--  7,a7 in=mation ga!r+
 reg>d+ ! age & hi/ory ( ! h\s+ &       
occupancy by *ildr5 "u age #f2  7,b7    
visual inspection2  7,c7 o!r activities 
z may be appropriate2 &  7,d7 provision 
( a report expla9+ ! results ( !        
inve/igation4  7#bj7 ,secret>y ,! t]m   
,secret>y means ! ,secret>y ( ,h\s+ &   
,urban ,developm5t4  ,i ,lead-,bas$     
,pipe ,haz>d ,r$uction  #aja4 ,grants = 
lead-bas$ pipe haz>d r$uction 9 h\s+    
7a7 ,g5]al au?ority ,! ,secret>y ( ,h\s+
 & ,urban ,developm5t is au?oriz$ to    
provide grants to eligible applicants to
 evaluate & r$uce lead-bas$ pipes haz>ds
 9 priority h\s+ t is n f$]ally assi/$  
h\s+1 f$]ally own$ h\s+1 or public h\s+1

 9 accordance ) ! provisions ( ?is      
section4  7b7 ,eligible applicants ,a   
,/ate or unit ( local gov]nm5t t has an 
approv$ compreh5sive h\s+ af=dability   
/rategy "u section #aje ( !             
,cran/on-,gonzalez ,national ,af=dable  
,h\s+ ,act 7#db ,u4,s4,c4 #abgje7 is    
eligible to apply = a grant "u ?is      
section4  7c7 ,=m ( application ,to     
receive a grant "u ?is section1 a ,/ate 
or unit ( local gov]nm5t %all submit an 
application 9 su* =m & 9 su* mann] z !  
,secret>y %all prescribe4 ,an           
application %all conta9--  7#a7 a copy (
 t portion ( an applicant's compreh5sive
 h\s+ af=dability /rategy requir$ by    
section #aje7;b77#af7 ( !               
,cran/on-,gonzalez ,national ,af=dable  
,h\s+ ,act2  7#b7 a /atem5t ( ! am\nt ( 
assi/ance ! applicant seeks "u ?is      
section2  7#c7 a description ( ! plann$ 
activities to be und]tak5 ) grants "u   
?is section1 includ+ an e/imate ( !     
am\nt to be allocat$ = ea* activity2    
7#d7 a description ( ! =ms ( f9ancial   

assi/ance to own]s & occupants (        
priority h\s+ t w be provid$ ?r\gh      
grants "u ?is section2 &  7#e7 su*      
assurances z ! ,secret>y may require    
reg>d+ ! applicant's capacity to c>ry   
out ! activities4  7d7 ,selection       
crit]ia ,! ,secret>y %all aw>d grants "u
 ?is section on ! basis ( ! m]it ( !    
activities propos$ to be c>ri$ out & on 
! basis ( selection crit]ia1 :i* %all   
include--  7#a7 ! ext5t to :i* ! propos$
 activities w r$uce ! risk ( lead-bas$  
wat] poison+ to *ildr5 "u ! age ( #f :o 
reside 9 priority h\s+2  7#b7 ! degree (
 sev]ity & ext5t ( lead-bas$ pipe haz>ds
 9 ! jurisdiction to be s]v$2  7#c7 !   
ability ( ! applicant to lev]age ,/ate1 
local1 & private funds to supplem5t !   
grant "u ?is section2  7#d7 ! ability ( 
! applicant to c>ry out ! propos$       
activities2 &  7#e7 su* o!r factors z ! 
,secret>y det]m9es appropriate to ensure
 t grants made available "u ?is section 
are us$ effectively & to promote !      
purposes ( ?is ,act4  7e7 ,eligible     

activities ,a grant "u ?is section may  
be us$ to-- 7#a7 p]=m risk assessm5ts & 
inspections 9 priority h\s+2  7#b7      
provide = ! int]im control ( lead-bas$  
pipe haz>ds 9 priority h\s+2  7#c7      
provide = ! abatem5t ( lead-bas$ pipe   
haz>ds 9 priority h\s+2  7#d7 provide = 
! additional co/ ( r$uc+ lead-bas$ pipe 
haz>ds 9 units und]go+ r5ovation fund$  
by o!r s\rces2  7#e7 ensure t risk      
assessm5ts1 inspections1 & abatem5ts are
 c>ri$ out by c]tifi$ contractors       
monitor ! blood-lead levels ( work]s    
involv$ 9 lead haz>d r$uction activities
 fund$ "u ?is section2  7#f7 assi/ 9 !  
tempor>y relocation ( families =c$ to   
vacate priority h\s+ :ile lead-bas$ pipe
 haz>d r$uction measures are be+        
conduct$2  7#g7 educate ! public on !   
nature & causes ( lead poison+ &        
measures to r$uce exposure to lead1     
includ+ exposure due to resid5tial      
lead-bas$ pipe haz>ds2  7#h7 te/ !      
blood-lead levels ( *ildr5 "u ! age ( #f
 resid+ 9 priority h\s+ aft] lead-bas$  

pipe haz>d r$uction activity has be5    
conduct$1 to assure t su* activity does 
n cause excessive exposures to lead2 &  
7#i7 c>ry out su* o!r activities t !    
,secret>y det]m9es appropriate to       
promote ! purposes ( ?is ,act4  7f7 ,=ms
 ( assi/ance ,a recipi5t ( a grant "u   
?is section may provide ! s]vices       
describ$ 9 ?is section ?r\gh a v>iety ( 
programs1 includ+ grants1 loans1 equity 
inve/m5ts1 revolv+ loan funds1 loan     
funds1 loan gu>antees1 int]e/           
write-d[ns1 & o!r =ms ( assi/ance       
approv$ by ! ,secret>y4  7g7 ,te*nical  
assi/ance & capacity build+s  7#a7 ,9   
g5]al ,! ,secret>y %all develop !       
capacity ( eligible applicants to c>ry  
out ! requirem5ts ( section             
#aje7;b77#ah7 ( ! ,cran/on-,gonzalez    
,national ,af=dable ,h\s+ ,act & to c>ry
 out activities "u ?is section4 ,9      
fiscal ye>s #bjbj & #bjba1 ! ,secret>y  
may make grants ( up to #bjj1jjj = !    
purpose ( e/abli%+ ,/ate tra9+1         
c]tification1 or accr$itation programs t

 meet ! requirem5ts ( section #bja ( ?is
 ,act 7relat+ to lead-bas$ pipe         
activities tra9+ & c]tification74  7#b7 
,set-aside ,( ! total am\nt approv$ 9   
appropriation ,acts "u section #cja1 !re
 %all be set aside to c>ry out ?is      
subsection #c1jjj1jjj = ea* ( fiscal    
ye>s #bjbj ?r\gh #bjbi4  7h7 ,mat*+     
requirem5t ,! recipi5t ( a grant "u ?is 
section %all make contributions t[>d !  
co/ ( activities t receive assi/ance "u 
?is section 9 an am\nt n less ?an #aj   
p]c5t ( ! total grant am\nt "u ?is      
section4  7i7 ,prohibition ( sub/itution
 ( funds ,grants "u ?is section may n be
 us$ to replace o!r am\nts made         
available or designat$ by ,/ate or local
 gov]nm5ts = use = ! purposes "u ?is    
title4  7j7 ,limitation on use ,a       
recipi5t ( a grant "u ?is section %all  
ensure t n m ?an #aj p]c5t ( ! grant w  
be us$ = adm9i/rative exp5ses associat$ 
) ! activities fund$ by ! grant4  7k7   
,f9ancial records ,a recipi5t ( a grant 
"u ?is section %all ma9ta9 & provide !  

,secret>y ) f9ancial records suffici5t1 
9 ! det]m9ation ( ! ,secret>y1 to ensure
 prop] acc\nt+ & disburs+ ( am\nts      
receiv$ f a grant "u ?is section4  7l7  
,report ,a recipi5t ( a grant "u ?is    
section %all submit to ! ,secret>y1 =   
any fiscal ye> 9 :i* ! recipi5t exp5ds  
grant funds "u ?is section1 a report t--
  7#a7 describes ! use ( ! am\nts       
receiv$2  7#b7 /ates ! numb] ( risk     
assessm5ts & ! numb] ( inspections      
conduct$ 9 resid5tial dwell+s2  7#c7    
/ates ! numb] ( resid5tial dwell+s 9 :i*
 lead-bas$ pipe haz>ds h be5 r$uc$ ?r\gh
 int]im controls2  7#d7 /ates ! numb] ( 
resid5tial dwell+s 9 :i* lead-bas$ pipe 
haz>ds h be5 abat$2 &  7#e7 provides any
 o!r in=mation t ! ,secret>y det]m9es to
 be appropriate4  7m7 ,notice ( fund+   
availability ,! ,secret>y %all publi% a 
,notice ( ,fund+ ,availability n lat]   
?an #abj days aft] funds are appropriat$
 to c>ry out ?is section4  #ajb4        
,evaluation & r$uction ( lead-bas$ pipe 
haz>ds 9 f$]ally assi/$ h\s+  7a7       

,requirem5ts = f$]ally assi/$ h\s+ ,!   
,secret>y %all provide = appropriate    
measures & proc$ures to conduct risk    
assessm5ts1 inspections1 int]im         
controls1 & abatem5t ( lead-bas$ pipe   
haz>ds 9 f$]ally assi/$ h\s+4 ,at a     
m9imum1 su* proc$ures %all require--    
7#a7 ! provision ( lead haz>d in=mation 
pamphlets1 develop$ pursuant to section 
#bje ( ?is ,act = pur*as]s & t5ants (   
su* h\s+2  7#b7 p]iodic risk assessm5ts 
& int]im controls = su* h\s+ 9          
accordance ) a s*$ule det]m9$ by !      
,secret>y1 :i* %all provide = ! initial 
risk assessm5t to be p]=m$--  7,a7 9 n  
less ?an #ej p]c5t ( ! dwell+ units (   
su* h\s+ )9 #e ye>s aft] ! date ( !     
enactm5t ( ?is ,act2 &  7,b7 9 ! rema9d]
 ( ! dwell+ units ( su* h\s+ )9 #aj ye>s
 aft] su* date ( enactm5t2  7#c7        
inspection = ! pres5ce ( lead-bas$ pipe 
9 su* h\s+ prior to f$]ally fund$       
r5ovation or rehabilitation2  7#d7      
r$uction ( lead-bas$ pipe haz>ds 9 su*  
h\s+ 9 ! c\rse ( rehabilitation projects

 receiv+ less ?an #be1jjj p] unit 9     
,f$]al funds2  7#e7 abatem5t ( lead-bas$
 pipe haz>ds 9 su* h\s+ 9 ! c\rse (     
sub/antial rehabilitation projects      
receiv+ m ?an #be1jjj p] unit 9 ,f$]al  
funds2  7#f7 :]e risk assessm5t1        
inspection1 or r$uction activities h be5
 und]tak5 9 su* h\s+1 ! provision (     
notice to occupants describ+ ! nature & 
scope ( su* activities & ! actual risk  
assessm5t or inspection reports 7includ+
 available in=mation on ! location ( any
 rema9+ lead-bas$ pipe & lead-bas$ pipe 
haz>ds72 &  7#g7 su* o!r measures = su* 
h\s+ z ! ,secret>y deems appropriate4   
7b7 ,public h\s+ ,section #i7;d77#a7 ( !
 ,unit$ ,/ates ,h\s+ ,act ( #aicg 7#db  
,u4,s4,c4 #adcg;g7d77#a77 is am5d$--    
7#a7 9 subp>agraph 7,k71 by /rik+ & at !
 end2  7#b7 9 subp>agraph 7,l71 by /rik+
 ! p]iod at ! end & ins]t+ 2 &2 &  7#c7 
by add+ at ! end ! foll[+ new           
subp>agraph3  7,m7 lead-bas$ pipe haz>d 
evaluation & r$uction1 z def9$ 9 section
 #c ( ! ,grants = ,elim9at+ ! ,toxic    

,haz>d ( ,environm5tal ,lead 9 ,our     
,t[ns ,act ( #bjai4  4  7c7 ,,home      
,inve/m5t ,p>tn]%ips ,section #bab7;a7 (
 ! ,cran/on-,gonzalez ,national         
,af=dable ,h\s+ ,act 7#db ,u4,s4,c4     
#abgdb7;a77 is am5d$--  7#a7 by         
r$esignat+ p>agraph 7#e7 7relat+ to     
lead-bas$ pa9t haz>ds7 z p>agraph 7#d72 
&  7#b7 by add+ at ! end ! foll[+ new   
p>agraph3  7#e7 ,lead-bas$ pipe haz>ds  
,a p>ticipat+ jurisdiction may use funds
 provid$ "u ?is subtitle = ! evaluation 
& r$uction ( lead-bas$ pipe haz>ds  4   
7d7 ,community developm5t block grants  
,section #aje7;a7 ( ! ,h\s+ & ,community
 ,developm5t ,act ( #aigd 7#db ,u4,s4,c4
 #ecje7;a77 is am5d$-- 7#a7 9 p>agraph  
7#bd77;,d71 by /rik+ & at ! end2  7#b7 9
 p>agraph 7#be71 by /rik+ ! p]iod at !  
end & ins]t+ 2 &2 &  7#c7 by add+ at !  
end ! foll[+3  7#bf7 lead-bas$ pipe     
haz>d evaluation & r$uction1 z def9$ 9  
section #c ( ! ,grants = ,elim9at+ !    
,toxic ,haz>d ( ,environm5tal ,lead 9   
,our ,t[ns ,act ( #bjai4  4  7e7        

,section #h r5tal assi/ance ,section    
#h7;c77#b77;,b7 ( ! ,unit$ ,/ates ,h\s+ 
,act ( #aicg 7#db ,u4,s4,c4             
#adcg;f7c77#b77;,b77 is am5d$ by add+ at
 ! end ! foll[+3 ,! ,secret>y may 7at ! 
discretion ( ! ,secret>y & subject to ! 
availability ( appropriations = contract
 am5dm5ts71 on a project-by-project     
basis = projects receiv+ project-bas$   
assi/ance1 provide adju/m5ts to !       
maximum mon?ly r5ts to cov] ! co/s (    
evaluat+ & r$uc+ lead-bas$ pipe haz>ds1 
z def9$ 9 section #c ( ! ,grants =      
,elim9at+ ! ,toxic ,haz>d (             
,environm5tal ,lead 9 ,our ,t[ns ,act ( 
#bjai44  7f7 ,hope = ,public & ,indian  
h\s+ home[n]%ip ,title ,,iii ( ! ,unit$ 
,/ates ,h\s+ ,act ( #aicg is am5d$--    
7#a7 9 section #cjb7;b7 7#db ,u4,s4,c4  
#adcg;aaa-#a7;b77--  7,a7 by r$esignat+ 
p>agraphs 7#e7 ?r\gh 7#i7 z p>agraphs   
7#f7 ?r\gh 7#aj71 respectively2 &  7,b7 
by ins]t+ aft] p>agraph 7#d7 ! foll[+3  
7#e7 inspection = lead-bas$ pipe haz>ds1
 z requir$ by section #ajb7;a7 ( !      

,grants = ,elim9at+ ! ,toxic ,haz>d (   
,environm5tal ,lead 9 ,our ,t[ns ,act ( 
#bjai2  2 &  7#b7 9 section #cjc7;b7    
7#db ,u4,s4,c4 #adcg;aaa-#b7;b77--  7,a7
 by r$esignat+ p>agraphs 7#e7 ?r\gh     
7#ad7 z p>agraphs 7#f7 ?r\gh 7#ae71     
respectively2 &  7,b7 by ins]t+ aft]    
p>agraph 7#d7 ! foll[+3  7#e7 ,abatem5t 
( lead-bas$ pipe haz>ds1 z requir$ by   
section #ajb7;a7 ( ! ,grants = ,elim9at+
 ! ,toxic ,haz>d ( ,environm5tal ,lead 9
 ,our ,t[ns ,act ( #bjai4  4  7g7 ,hope 
= home[n]%ip ( multifamily units ,title 
,,iv ( ! ,cran/on-,gonzalez ,national   
,af=dable ,h\s+ ,act is am5d$--  7#a7 9 
section #dbb7;b7 7#db ,u4,s4,c4         
#abhgb7;b77-- 7,a7 by r$esignat+        
p>agraphs 7#e7 ?r\gh 7#i7 z p>agraphs   
7#f7 ?r\gh 7#aj71 respectively2 &  7,b7 
by ins]t+ aft] p>agraph 7#d7 ! foll[+3  
7#e7 inspection = lead-bas$ pipe haz>ds1
 z requir$ by section #ajb7;a7 ( !      
,grants = ,elim9at+ ! ,toxic ,haz>d (   
,environm5tal ,lead 9 ,our ,t[ns ,act ( 
#bjai2  2 &  7#b7 9 section #dbc7;b7    

7#db ,u4,s4,c4 #abhgc7;b77-- 7,a7 by    
r$esignat+ p>agraphs 7#e7 ?r\gh 7#ad7 z 
p>agraphs 7#f7 ?r\gh 7#ae71             
respectively2 &  7,b7 by ins]t+ aft]    
p>agraph 7#d7 ! foll[+3  7#e7 ,abatem5t 
( lead-bas$ pipe haz>ds1 z requir$ by   
section #ajb7;a7 ( ! ,grants = ,elim9at+
 ! ,toxic ,haz>d ( ,environm5tal ,lead 9
 ,our ,t[ns ,act ( #bjai4  4  7h7 ,hope 
= home[n]%ip ( s+le family homes ,title 
,,iv ( ! ,cran/on-,gonzalez ,national   
,af=dable ,h\s+ ,act is am5d$-- 7#a7 9  
section #ddb7;b7 7#db ,u4,s4,c4         
#abhib7;b77--  7,a7 by r$esignat+       
p>agraphs 7#e7 ?r\gh 7#i7 z p>agraphs   
7#f7 ?r\gh 7#aj71 respectively2 &  7,b7 
by ins]t+ aft] p>agraph 7#d7 ! foll[+3  
7#e7 inspection = lead-bas$ pipe haz>ds1
 z requir$ by section #ajb7;a7 ( !      
,grants = ,elim9at+ ! ,toxic ,haz>d (   
,environm5tal ,lead 9 ,our ,t[ns ,act ( 
#bjai2  2 &  7#b7 9 section #ddc7;b7    
7#db ,u4,s4,c4 #abhic7;b77--  7,a7 by   
r$esignat+ p>agraphs 7#e7 ?r\gh 7#aa7 z 
p>agraphs 7#f7 ?r\gh 7#ab71             

respectively2 &  7,b7 by ins]t+ aft]    
p>agraph 7#d7 ! foll[+3  7#e7 ,abatem5t 
( lead-bas$ pipe haz>ds1 z requir$ by   
section #ajb7;a7 ( ! ,grants = ,elim9at+
 ! ,toxic ,haz>d ( ,environm5tal ,lead 9
 ,our ,t[ns ,act ( #bjai4  4  7i7 ,,fha 
insurance = mortgages = s+le family     
homes  7#a7 ,home improvem5t ,! f\r?    
undesignat$ p>agraph ( section #b7;a7 ( 
! ,national ,h\s+ ,act 7#ab ,u4,s4,c4   
#agjc7;a77 is am5d$--  7,a7 by ins]t+   
aft] ! p]iod at ! end ( ! fir/ s5t5ce ! 
foll[+3 ,alt]ations1 repairs1 &         
improvem5ts ^u or 9 connection ) exi/+  
/ructures may also include ! evaluation 
& r$uction ( lead-bas$ pipes haz>ds42 & 
7,b7 9 ! la/ s5t5ce-- 7i7 9 p>agraph    
7#b71 by /rik+ & at ! end2  7ii7 9      
p>agraph 7#c71 by /rik+ ! p]iod at ! end
 & ins]t+ &2  7iii7 9 p>agraph 7#d7--   
7,i7 by ins]t+ 1 :5 us$ ) respect to    
lead-bas$ pa9t haz>ds1 be=e h2 &  7,,ii7
 by /rik+ ! p]iod at ! end & ins]t+ &2 &
  7iv7 by add+ at ! end ! foll[+3  7#e7 
! t]ms evaluation1 r$uction1 & lead-bas$

 pipe haz>d1 :5 us$ ) respect to        
lead-bas$ pipe haz>ds1 h ! mean+ giv5   
su* t]m 9 section #c ( ! ,grants =      
,elim9at+ ! ,toxic ,haz>d (             
,environm5tal ,lead 9 ,our ,t[ns ,act ( 
#bjai4  4  7#b7 ,rehabilitation loans ,!
 la/ s5t5ce ( section #bjc7k77#b77;,b7 (
 ! ,national ,h\s+ ,act 7#ab ,u4,s4,c4  
#agji7k77#b77;,b77 is am5d$ by ins]t+   
be=e ! p]iod at ! end ! foll[+3 1 &     
measures to evaluate & r$uce lead-bas$  
pipe haz>ds1 z su* t]ms are def9$ 9     
section #c ( ! ,grants = ,elim9at+ !    
,toxic ,haz>d ( ,environm5tal ,lead 9   
,our ,t[ns ,act ( #bjai4  7j7 ,,fha     
insurance = mortgages = multifamily h\s+
 ,section #bba7;d77#d77;iv7 ( !         
,national ,h\s+ ,act 7#ab ,u4,s4,c4     
#agaea7;d77#d77;iv77 is am5d$ by ins]t+ 
be=e ! clos+ p>5!ses ! foll[+3 1 & ! co/
 ( evaluat+ & r$uc+ lead-bas$ pipe      
haz>ds1 z su* t]ms are def9$ 9 section  
#c ( ! ,grants = ,elim9at+ ! ,toxic     
,haz>d ( ,environm5tal ,lead 9 ,our     
,t[ns ,act ( #bjai4  7k7 ,rural h\s+    

,section #eja7;a77#e7 ( ! ,h\s+ ,act (  
#aidi 7#db ,u4,s4,c4 #adga7 is am5d$ by 
ins]t+ be=e ! p]iod at ! end ! foll[+3 1
 & measures to evaluate & r$uce         
lead-bas$ pipe haz>ds1 z su* t]ms are   
def9$ 9 section #c ( ! ,grants =        
,elim9at+ ! ,toxic ,haz>d (             
,environm5tal ,lead 9 ,our ,t[ns ,act ( 
#bjai4  #ajc4 ,compreh5sive h\s+        
af=dability /rategies ,section #aje ( ! 
,cran/on-,gonzalez ,national ,af=dable  
,h\s+ ,act 7#db ,u4,s4,c4 #abgje7 is    
am5d$-- 7#a7 9 subsection 7b7--  7,a7 by
 r$esignat+ p>agraphs 7#ah71 7#ai71 &   
7#bj7 z p>agraphs 7#ai71 7#bj71 & 7#ba71
 respectively2 &  7,b7 by ins]t+ aft]   
p>agraph 7#ag7 ! foll[+ new p>agraph3   
7#ah7 e/imate ! numb] ( h\s+ units )9 ! 
jurisdiction t are occupi$ by l[-income 
families or v l[-income families & t    
conta9 lead-bas$ pipe haz>ds1 z def9$ 9 
section #c ( ! ,grants = ,elim9at+ !    
,toxic ,haz>d ( ,environm5tal ,lead 9   
,our ,t[ns ,act ( #bjai1 outl9e !       
actions propos$ or be+ tak5 to evaluate 

& r$uce lead-bas$ pipe haz>ds1 &        
describe h[ lead-bas$ pipe haz>d        
r$uction w be integrat$ into h\s+       
policies & programs2  2 &  7#b7 9       
subsection 7e7-- 7,a7 9 p>agraph 7#b71  
by /rik+ p>agraph 7#af7 & ins]t+        
p>agraph 7#ag72 &  7,b7 by add+ at ! end
 ! foll[+ new p>agraph3  7#c7 ,lead-bas$
 pipe haz>ds ,:5 prep>+ ! portion ( a   
h\s+ /rategy requir$ by subsection      
7b77#ah71 a jurisdiction %all consult ) 
,/ate or local heal? & *ild welf>e      
ag5cies & exam9e exi/+ data relat$ to   
lead-bas$ pipe haz>ds & poison+s1       
includ+ heal? dep>tm5t data on !        
addresses ( h\s+ units 9 :i* *ildr5 h   
be5 id5tifi$ z lead poison$4  4  #ajd4  
,task =ce on lead-bas$ pipe haz>d       
r$uction & f9anc+  7a7 ,9 g5]al ,!      
,secret>y1 9 consultation ) !           
,adm9i/rator ( ! ,environm5tal          
,protection ,ag5cy %all e/abli% a task  
=ce to make recomm5dations on exp&+     
res\rces & ef=ts to evaluate & r$uce    
lead-bas$ pipe haz>ds 9 private h\s+4   

7b7 ,memb]%ip ,! task =ce %all include  
individuals repres5t+ ! ,dep>tm5t (     
,h\s+ & ,urban ,developm5t1 ! ,rural    
,h\s+ ,s]vice ( ! ,dep>tm5t (           
,agriculture1 ! ,dep>tm5t ( ,vet]ans    
,affairs1 ! ,f$]al ,home ,loan ,mortgage
 ,corporation1 ! ,f$]al ,national       
,mortgage ,association1 ! ,environm5tal 
,protection ,ag5cy1 employee or         
organizations 9 ! build+ & con/ruction  
trades indu/ry1 l&lords1 t5ants1 prim>y 
l5d+ in/itutions1 private mortgage      
insur]s1 s+le family & multifamily real 
e/ate int]e/s1 nonpr(it h\s+ develop]s1 
prop]ty liability insur]s1 public h\s+  
ag5cies1 l[-income h\s+ advocacy        
organizations1 national1 ,/ate & local  
lead-poison+ prev5tion advocates &      
exp]ts1 & community-bas$ organizations  
locat$ 9 areas ) sub/antial r5tal h\s+4 
7c7 ,responsibilities ,! task =ce %all  
make recomm5dations to ! ,secret>y & !  
,adm9i/rator ( ! ,environm5tal          
,protection ,ag5cy conc]n+--  7#a7      
incorporat+ ! ne$ to f9ance lead-bas$   

pipe haz>d r$uction into und]writ+      
/&>ds2  7#b7 develop+ new loan products 
& proc$ures = f9anc+ lead-bas$ pipe     
haz>d evaluation & r$uction activities2 
7#c7 adju/+ appraisal guidel9es to      
address lead safety2  7#d7 incorporat+  
risk assessm5ts or inspections =        
lead-bas$ pipe z a r\t9e proc$ure 9 !   
orig9ation ( new resid5tial mortgages2  
7#e7 revis+ guidel9es1 regulations1 &   
educational pamphlets issu$ by !        
,dep>tm5t ( ,h\s+ & ,urban ,developm5t &
 o!r ,f$]al ag5cies relat+ to lead-bas$ 
pipe poison+ prev5tion2  7#f7 r$uc+ !   
curr5t unc]ta9ties ( liability relat$ to
 lead-bas$ pipe 9 r5tal h\s+2 cl>ify+   
/&>ds ( c>e = l&lords & l5d]s1 & explor+
 ! safe h>bor concept2  7#g7 increas+ ! 
availability ( liability insurance =    
own]s ( r5tal h\s+ & c]tifi$ contractors
 & e/abli%+ alt]native sy/ems to        
comp5sate victims ( lead-bas$ pipe      
poison+3 &  7#h7 evaluat+ ! utility & a 
appropriat5ess ( requir+ risk assessm5ts
 or inspections & notification to       

prospective leases ( r5tal h\s+4  7d7   
,comp5sation ,! memb]s ( ! task =ce %all
 n receive ,f$]al comp5sation = _!      
p>ticipation4  #aje4 ,national          
consultation on lead-bas$ pipe haz>d    
r$uction ,9 c>ry+ out ?is ,act1 !       
,secret>y %all consult on an ongo+ basis
 ) ! ,adm9i/rator ( ! ,environm5tal     
,protection ,ag5cy1 ! ,director ( !     
,c5t]s = ,disease ,control1 o!r ,f$]al  
ag5cies conc]n$ ) lead poison+          
prev5tion1 & ! task =ce e/abli%$        
pursuant to section #ajd4  #ajf4        
,guidel9es = lead-bas$ pipe haz>d       
evaluation & r$uction activities ,n lat]
 ?an #ab mon?s aft] ! date ( ! enactm5t 
( ?is ,act1 ! ,secret>y1 9 consultation 
) ! ,adm9i/rator ( ! ,environm5tal      
,protection ,ag5cy1 ! ,secret>y (       
,labor1 & ! ,secret>y ( ,heal? & ,human 
,s]vices 7act+ ?r\gh ! ,director ( !    
,c5t]s = ,disease ,control71 %all issue 
guidel9es = ! conduct ( f$]ally support$
 "w involv+ risk assessm5ts1            
regulations1 inspections1 int]im        

controls1 & abatem5t ( lead-bas$ pipe   
haz>ds4 ,su* guidel9es %all be bas$ ^u  
crit]ia t measure ! condition ( ! h\s+  
7& ! pres5ce ( *ildr5 "u age #f = !     
purposes ( risk assessm5ts7 & %all n be 
bas$ ^u crit]ia t measure ! heal? ( !   
resid5ts ( ! h\s+4  #ajg4 ,disclosure ( 
in=mation conc]n+ lead ^u transf] (     
resid5tial prop]ty  7a7 ,disclosure 9   
pur*ase & sale or lease ( h\s+  7#a7    
,lead-bas$ pipe haz>ds ,n lat] ?an #b   
ye>s aft] ! date ( ! enactm5t ( ?is     
,act1 ! ,secret>y & ! ,adm9i/rator ( !  
,environm5tal ,protection ,ag5cy %all   
promulgate regulations "u ?is section = 
! disclosure ( lead-bas$ pipe haz>ds 9  
h\s+ t is (f]$ = sale or lease4 ,!      
regulations %all require t1 be=e !      
pur*as] or lessee is obligat$ "u any    
contract to pur*ase or lease ! h\s+1 !  
sell] or lessor %all--  7,a7 provide !  
pur*as] or lessee ) a lead haz>d        
in=mation pamphlet1 z prescrib$ by !    
,adm9i/rator ( ! ,environm5tal          
,protection ,ag5cy "u section #djf ( !  

,toxic ,sub/ances ,control ,act2  7,b7  
disclose to ! pur*as] or lessee !       
pres5ce ( any kn[n lead-bas$ pipe1 or   
any kn[n lead-bas$ pipe haz>ds1 9 su*   
h\s+ & provide to ! pur*as] or lessee a 
lead haz>d evaluation report available  
to ! sell] or lessor2 &  7,c7 p]mit !   
pur*as] a #aj-;day p]iod 7unless !      
p>ties mutually agree ^u a diff]5t rid (
 "t7 to conduct a risk assessm5t or     
inspection or ! pres5ce ( lead-bas$ pipe
 haz>ds4  7#b7 ,contract = pur*ase &    
sale ,! regulations promulgat$ "u ?is   
section %all provide t e contract = !   
pur*ase & sale ( any int]e/ 9 h\s+ %all 
conta9 a ,lead ,w>n+ ,/atem5t & a       
/atem5t sign$ by ! pur*as] t ! pur*as]  
has--  7,a7 read ! ,lead ,w>n+ ,/atem5t 
& und]/&s its cont5ts2  7,b7 receiv$ a  
lead haz>d in=mation pamphlet2 &  7,c7  
_h a #aj-;day opportunity 7unless !     
p>ties mutually agre$ ^u a diff]5t p]iod
 ( "t7 be=e becom+ obligat$ "u !        
contract to pur*ase ! h\s+ to conduct a 
risk assessm5t or inspection = ! pres5ce

 ( lead-bas$ pipe haz>ds4  7#c7 ,cont5ts
 ( lead w>n+ /atem5t ,! ,lead ,w>n+     
,/atem5t ref]r$ to 9 p>agraph 7#b7 %all 
conta9 ! foll[+ text pr9t$ 9 l>ge type  
on a sep>ate %eet ( pap] atta*$ to !    
contract3 ,e pur*as] ( any int]e/ 9     
resid5tial real prop]ty on :i* a        
resid5tial dwell+ 0 built prior to #aihf
 is notifi$ t su* prop]ty may pres5t    
exposure to lead f lead-bas$ pipes t may
 place "y *ildr5 at risk ( develop+ lead
 poison+4 ,lead poison+ 9 "y *ildr5 may 
produce p]man5t neurological damage1    
includ+ le>n+ disabilities1 r$uc$       
intellig5ce quoti5t1 behavioral         
problems1 & impair$ memory4 ,lead       
poison+ also poses a p>ticul> risk to   
pregnant wom54 ,! sell] int]e/ 9        
resid5tial real prop]ty is requir$ to   
provide ! buy] ) any in=mation on       
lead-bas$ pipe haz>ds f risk assessm5t  
or inspections 9 ! sell]'s possession & 
notify ! buy] ( any kn[n lead-bas$ pipe 
haz>ds4 ,a risk assessm5t or inspection 
= possible lead-bas$ pipe haz>ds is     

recomm5d$ prior to pur*ase4  7#d7       
,compliance assurance ,:5ev] a sell] or 
lessor has ent]$ into a contract ) an   
ag5t = ! purpose ( sell+ or leas+ a unit
 ( h\s+1 ! regulations promulgat$ "u ?is
 section %all require ! ag5t1 on behalf 
( ! sell] or lessor1 to ensure          
compliance ) ! requirem5ts ( ?is        
section4  7b7 ,promulgation ,a suit may 
be br\ght aga9/ ! ,secret>y ( ,h\s+ &   
,urban ,developm5t & ! ,adm9i/rator ( ! 
,environm5tal ,protection ,ag5cy "u     
section #bj ( ! ,toxic ,sub/ances       
,control ,act to compel promulgation ( !
 regulations requir$ "u ?is section & ! 
,f$]al di/rict c\rt %all h jurisdiction 
to ord] su* promulgation4  7c7 ,p5alties
 = violations  7#a7 ,monet>y p5alty ,any
 p]son :o kn[+ly violates any provision 
( ?is section %all be subject to civil  
money p5alties 9 accordance ) !         
provisions ( section #ajb ( ! ,dep>tm5t 
( ,h\s+ & ,urban ,developm5t ,re=m ,act 
( #aihi 7#db ,u4,s4,c4 #cede74  7#b7    
,action by ,secret>y ,! ,secret>y is    

au?oriz$ to take su* lawful action z may
 be necess>y to enjo9 any violation (   
?is section4  7#c7 ,civil liability ,any
 p]son :o kn[+ly violates ! provisions (
 ?is section %all be jo9tly & sev]ally  
liable to ! pur*as] or lessee 9 an am\nt
 equal to #c times ! am\nt ( damages    
incurr$ by su* individual4  7#d7 ,co/s  
,9 any civil action br\ght = damages1 ! 
appropriate c\rt may aw>d c\rt co/s to !
 p>ty comm5c+ su* action1 toge!r )      
reasonable attorney fees & any exp]t    
witness fees1 if t p>ty prevails4  7#e7 
,prohibit$ act ,x %all be a prohibit$   
act "u section #dji ( ! ,toxic          
,sub/ances ,control ,act = any p]son to 
fail or refuse to comply ) a provision (
 ?is section or ) any rule or ord] issu$
 "u ?is section4 ,= purposes ( en=c+ ?is
 section "u ! ,toxic ,sub/ances ,control
 ,act1 ! p5alty = ea* violation         
applicable "u section #af ( t ,act %all 
n be m ?an #aj1jjj4  7d7 ,validity (    
contracts & li5s ,no?+ 9 ?is section    
%all affect ! validity or en=ceability (

 any sale or contract = ! pur*ase & sale
 or lease ( any int]e/ 9 resid5tial real
 prop]ty or any loan1 loan agreem5t1    
mortgage1 or li5 made or aris+ 9        
connection ) a mortgage loan1 nor %all  
any?+ 9 ?is section create a defect 9   
title4  7e7 ,effective date ,!          
regulations "u ?is section %all take    
effect #c ye>s aft] ! date ( ! enactm5t 
( ?is ,act4  ,,ii ,lead ,exposure       
,r$uction  #bja4 ,lead-bas$ pipe        
activities tra9+ & c]tification  7a7    
,regulations  7#a7 ,9 g5]al ,n lat] ?an 
#ah mon?s aft] ! date ( ! enactm5t ( ?is
 ,act1 ! ,adm9i/rator ( ! ,environm5tal 
,protection ,ag5cy 79 ?is title ref]r$  
to z ! ,adm9i/rator7 %all1 9            
consultation ) ! ,secret>y ( ,labor1 !  
,secret>y ( ,h\s+ & ,urban ,developm5t1 
& ! ,secret>y ( ,heal? & ,human ,s]vices
 7act+ ?r\gh ! ,director ( ! ,national  
,in/itute = ,occupational ,safety &     
,heal?71 promulgate f9al regulations    
gov]n+ lead-bas$ pipe activities to     
ensure t individuals engag$ 9 su*       

activities are prop]ly tra9$2 t tra9+   
programs are accr$it$2 & t contractors  
are engag$ 9 su* activities are c]tifi$4
 ,su* regulations %all conta9 /&>ds =   
p]=m+ lead-bas$ pipe activities1 tak+   
into acc\nt reliability1 effectiv5ess1 &
 safety4 ,su* regulations %all require t
 all risk assessm5t1 inspection1 &      
abatem5t activities p]=m$ 9 h\s+ %all be
 p]=m$ by c]tifi$ contractors4  7#b7    
,accr$itation ( tra9+ programs ,f9al    
regulations %all conta9 specific        
requirem5ts = ! accr$itation ( lead-bas$
 pipe activities tra9+ programs =       
work]s1 sup]visors1 inspectors &        
plann]s1 & o!r individuals involv$ 9    
lead-bas$ pipe activities1 includ+1 b n 
limit$ to1 ea* ( ! foll[+3  7,a7 ,m9imum
 requirem5ts = ! accr$itation ( tra9+   
provid]s4  7,b7 ,m9imum tra9+ curriculum
 requirem5ts4  7,c7 ,m9imum tra9+ h\r   
requirem5ts4  7,d7 ,m9imum h&s-on tra9+ 
requirem5ts4  7,e7 ,m9imum tra9ee       
compet5cy & pr(ici5cy requirem5ts4  7,f7
 ,m9imum requirem5ts = tra9+ program    

quality control4  7#c7 ,accr$itation &  
c]tification fees ,! ,adm9i/rator 7or ! 
,/ate 9 ! case ( an au?oriz$ ,/ate      
program7 %all impose a fee on-- 7,a7    
p]sons op]at+ tra9+ programs accr$it$ "u
 ?is title2 &  7,b7 lead-bas$ pipe      
activities contractors c]tifi$ 9        
accordance accr$itation ) p>agraph 7#a74
  ,! fees %all be e/abli%$ at su* level 
z is necess>y to cov] ! co/s ( adm9i/]+ 
& en=c+ ! /&>ds & regulations "u ?is    
section :i* are applicable to su*       
programs & contractors4 ,! fee %all n be
 impos$ on any ,/ate1 local gov]nm5t1 or
 nonpr(it tra9+ program4 ,! ,adm9i/rator
 7or ! ,/ate 9 ! case ( an au?oriz$     
,/ate program7 may waive ! fee =        
lead-bas$ pipe activities contractors = 
! purpose ( tra9+ _! own employees4  7b7
 ,lead-,bas$ pipe activities ,= purposes
 ( ?is title1 ! t]m lead-bas$ pipe      
activities means--  7#a7 9 ! case (     
h\s+1 risk assessm5t1 inspection1 &     
abatem5t2 &  7#b7 9 ! case ( any public 
build+ con/ruct$ be=e #aihf1 comm]cial  

build+1 or any o!r /ructure1 evaluation 
& abatem5t ( lead-bas$ pipes & lead-bas$
 pipe haz>ds4  7c7 ,r5ovation & remodel+
  7#a7 ,guidel9es ,9 ord] to r$uce !    
risk ( exposure to lead 9 connection )  
r5ovation & remodel+ ( h\s+1 public     
build+s1 & comm]cial build+s1 !         
,adm9i/rator %all1 )9 #ah mon?s aft] !  
enactm5t ( ?is section1 promulgate      
guidel9es = ! conduct ( su* r5ovation & 
remodel+ activities :i* may create a    
risk ( exposure to dang]\s levels (     
lead4 ,! ,adm9i/rator %all dissem9ate   
su* guidel9es to p]sons engag$ 9 su*    
r5ovation & remodel+ ?r\gh h>dw>e /ores1
 employee organizations1 trade gr\ps1   
,/ate & local ag5cies1 & ?r\gh o!r      
appropriate means4  7#b7 ,/udy (        
c]tification ,! ,adm9i/rator %all       
conduct a /udy ( ! ext5t to :i* p]sons  
engag$ 9 v>i\s types ( r5ovation &      
remodel+ activities 9 h\s+1 public      
build+s1 & comm]cial build+s are expos$ 
to lead 9 ! conduct ( su* activities or 
di/urb lead & create a lead-bas$ pipe   

haz>d on a regul> or occasional basis4  
,! ,adm9i/rator %all complete su* /udy &
 publi% ! results !re( )9 #cj mon?s aft]
 ! enactm5t ( ?is section4  7#c7        
,c]tification det]m9ation ,)9 #d ye>s   
aft] ! enactm5t ( ?is section1 !        
,adm9i/rator %all revise ! regulations  
to apply ! regulations to r5ovation or  
remodel+ activities 9 h\s+ & comm]cial  
build+s t create lead-bas$ pipe haz>ds4 
,9 det]m9+ :i* contractors are engag$ 9 
su* activities1 ! ,adm9i/rator %all     
utilize ! results ( ! /udy & consult ) !
 repres5tatives ( labor organizations1  
lead-bas$ pipe activities contractors1  
p]sons engag$ 9 remodel+ & r5ovation1   
exp]ts 9 lead heal? effects1 & o!rs4 ,if
 ! ,adm9i/rator det]m9es t a category ( 
contractors engag$ 9 r5ovation or       
remodel+ does n require c]tification1 ! 
,adm9i/rator %all publi% an explanation 
( ! basis = t det]m9ation4  #bjb4       
,id5tification ( dang]\s levels ( lead  
,)9 #ah mon?s aft] ! enactm5t ( ?is     
,act1 ! ,adm9i/rator %all promulgate    

regulations :i* %all id5tify = purposes 
( ?is title lead-bas$ pipe haz>ds4      
#bjc4 ,au?oriz$ ,/ate programs  7a7     
,approval ,any ,/ate :i* seeks to       
adm9i/] & en=ce ! /&>ds1 regulations1 or
 o!r requirem5ts e/abli%$ may1 aft]     
notice & opportunity = public he>+1     
develop & submit to ! ,adm9i/rator an   
application1 9 su* =m z ! ,adm9i/rator  
%all require1 = au?orization ( su* a    
,/ate program4 ,any su* ,/ate may also  
c]tify to ! ,adm9i/rator at ! "t (      
submitt+ su* program t ! ,/ate program  
meets ! requirem5ts ( p>agraphs 7#a7 &  
7#b7 ( subsection 7b74 ,^u submission ( 
su* c]tification1 ! ,/ate program %all  
be deem$ to be au?oriz$ "u ?is section1 
& %all apply 9 su* ,/ate 9 lieu ( !     
correspond+ ,f$]al program z ! case may 
be1 until su* "t z ! ,adm9i/rator       
disapproves ! program or )draws !       
au?orization4  7b7 ,approval or         
disapproval ,)9 #ahj days foll[+        
submission ( an application1 !          
,adm9i/rator %all approve or disapprove 

! application4 ,! ,adm9i/rator may      
approve ! application only if aft]      
notice & aft] opportunity = public he>+1
 ! ,adm9i/rator f9ds t--  7#a7 ! ,/ate  
program is at lea/ z protective ( human 
heal? & ! environm5t z ! ,f$]al program 
z ! case may be2 &  7#b7 su* ,/ate      
program provides adequate en=cem5t4  ,^u
 au?orization ( a date program "u ?is   
section1 x %all be unlawful = any p]son 
to violate or fail or refuse to comply )
 any requirem5t ( su* program4  7c7     
,)drawal ( au?orization ,if a ,/ate is n
 adm9i/]+ & en=c+ a program au?oriz$ "u 
?is section 9 compliance ) /&>ds1       
regulations1 & o!r requirem5ts ( ?is    
title1 ! ,adm9i/rator %all s notify !   
,/ate &1 if corrective action is n      
complet$ )9 a reasonable "t1 n to exce$ 
#ahj days1 ! ,adm9i/rator %all )draw    
au?orization ( su* program & e/abli% a  
,f$]al program pursuant to ?is title4   
7d7 ,model ,/ate program ,)9 #ah mon?s  
aft] ! enactm5t ( ?is title1 !          
,adm9i/rator %all promulgate a model    

,/ate program :i* may be adopt$ by any  
,/ate :i* seeks to adm9i/] & en=ce a    
,/ate program "u ?is title4 ,su* model  
program %all1 to ! ext5t practicable1   
enc\rage ,/ates to utilize exi/+ ,/ate &
 local c]tification & accr$itation      
programs & proc$ures4 ,su* program %all 
enc\rage reciprocity among ! ,/ates )   
respect to ! c]tification4  7e7 ,o!r    
,/ate requirem5ts ,no?+ 9 ?is title %all
 be con/ru$ to prohibit any ,/ate or    
political subdivision !re( f impos+ any 
requirem5ts :i* are m /r+5t ?an ^?      
impos$ by ?is title4  7f7 ,/ate & local 
c]tification ,! regulations "u ?is title
 %all1 to ! ext5t appropriate1 enc\rage 
,/ates to seek program au?orization & to
 use exi/+ ,/ate & local c]tification & 
accr$itation proc$ures1 except t a ,/ate
 or local gov]nm5t %all n require m ?an 
#a c]tification "u ?is section = any    
lead-bas$ pipe activities contractor to 
c>ry out lead-bas$ pipe activities 9 !  
,/ate or political subdivision !re(4    
7g7 ,grants to ,/ates ,! ,adm9i/rator is

 au?oriz$ to make grants to ,/ates to   
develop & c>ry out au?oriz$ ,/ate       
programs "u ?is section4 ,! grants %all 
be subject to su* t]ms & conditions z ! 
,adm9i/rator may e/abli% to fur!r !     
purposes ( ?is title4  7h7 ,en=cem5t by 
,adm9i/rator ,if a ,/ate does n h a     
,/ate program au?oriz$ "u ?is section & 
9 effect by ! date :i* is #b ye>s aft]  
promulgation ( ! regulations !          
,adm9i/rator %all1 by su* date1 e/abli% 
a ,f$]al program = su* ,/ate4  #bjd4    
,lead abatem5t & measurem5t  7a7        
,program ,to promote lead exposure      
abatem5t ,! ,adm9i/rator1 9 coop]ation )
 o!r appropriate ,f$]al dep>tm5ts &     
ag5cies1 %all conduct a compreh5sive    
program to promote safe1 effective1 &   
af=dable monitor+1 detection1 & abatem5t
 ( lead-bas$ pipe & o!r lead exposure   
haz>ds4  7b7 ,/&>ds = environm5tal      
sampl+ laboratories  7#a7 ,m9imum       
p]=mance /&>ds ,! ,adm9i/rator %all     
e/abli% protocols1 crit]ia1 & m9imum    
p]=mance /&>ds = laboratory analysis (  

lead 9 pa9t pipes1 taps1 & wat]4 ,)9 #b 
ye>s aft] ! enactm5t ( ?is ,act1 !      
,adm9i/rator1 9 consultation ) !        
,secret>y ( ,heal? & ,human ,s]vices1   
%all e/abli% a program to c]tify        
laboratories z qualifi$ to te/ sub/ances
 = lead cont5t unless ! ,adm9i/rator    
det]m9es1 by ! date specifi$ 9 ?is      
p>agraph1 t effective volunt>y          
accr$itation programs are 9 place &     
op]at+ on a nationwide basis at ! "t (  
su* det]m9ation4 ,to be c]tifi$ "u su*  
program1 a laboratory %all1 at a m9imum1
 demon/rate an ability to te/ sub/ances 
accurately = lead cont5t4  7#b7 ,public 
in=mation ,n lat] ?an #bd mon?s aft] !  
date ( ! enactm5t ( ?is section1 &      
annually !reaft]1 ! ,adm9i/rator %all   
publi% & make available to ! public a   
li/ ( c]tifi$ or accr$it$ environm5tal  
sampl+ laboratories4  7#c7 ,c]tification
 program ,if ! ,adm9i/rator det]m9es t  
effective volunt>y accr$itation programs
 are 9 place = environm5tal sampl+      
laboratories1 ! ,adm9i/rator %all review

 ! p]=mance & effectiv5ess ( su*        
programs )9 #c ye>s aft] su*            
det]m9ation4 ,if1 ^u su* review1 !      
,adm9i/rator det]m9es t ! volunt>y      
accr$itation programs are n effective 9 
assur+ ! quality & consi/5cy (          
laboratory analyses1 ! ,adm9i/rator     
%all1 n m ?an #ab mon?s !reaft]1 e/abli%
 a c]tification program t meets !       
requirem5ts ( p>agraph 7#a74  7c7       
,exposure /udies  7#a7 ,*ildr5 ,!       
,secret>y ( ,heal? & ,human ,s]vices 79 
?is subsection ref]r$ to z ! ,secret>y71
 act+ ?r\gh ! ,director ( ! ,c5t]s =    
,disease ,control 7,,cdc71 & ! ,director
 ( ! ,national ,in/itute ( ,environm5tal
 ,heal? ,sci5ces1 %all jo9tly conduct a 
/udy ( ! s\rces ( lead exposure 9 *ildr5
 :o h elevat$ blood lead levels 7or o!r 
indicators ( elevat$ lead body burd571 z
 def9$ by ! ,director ( ! ,c5t]s =      
,disease ,control4  7#b7 ,wat] ,!       
,secret>y1 9 consultation ) ! ,director 
( ! ,national ,in/itute = ,occupational 
,safety & ,heal?1 %all conduct a        

compreh5sive /udy ( means to r$uce      
haz>d\s occupational lead abatem5t      
exposures 9 wat]4 ,?is /udy %all        
include1 at a m9imum1 ea* ( ! foll[+3   
7,a7 ,surveillance & int5tion capability
 9 ! ,/ates to id5tify & prev5t haz>d\s 
exposures to lead abatem5t work]s4  7,b7
 ,demon/ration ( lead abatem5t control  
me?ods & devices & "w practices to      
id5tify & prev5t haz>d\s lead exposures 
9 ! workplace4  7,c7 ,evaluation1 9     
consultation ) ! ,national ,in/itute (  
,environm5tal ,heal? ,sci5ces1 ( heal?  
effects ( l[ & high levels (            
occupational lead exposures ?r\gh fluids
 on reproductive1 neurological1 r5al1 & 
c>diovascul> heal?4  7,d7 ,id5tification
 ( high-risk occupational sett+s to :i* 
prev5tion activities & res\rces %\ld be 
t>get$4  7,e7 ,a /udy assess+ ! pot5tial
 exposures & risks f lead to janitorial 
& cu/odial work]s4  7#c7 ,contribution  
to elevat$ lead body burd5 ,! /udies    
describ$ 9 p>agraphs 7#a7 & 7#b7 %all z 
appropriate1 exam9e ! relative          

contributions to elevat$ lead body burd5
 f ea* ( ! foll[+3  7,a7 ,dr9k+ wat]4   
7,b7 ,food4  7,c7 ,occupational         
exposures1 & o!r exposures t ! ,secret>y
 det]m9es to be appropriate4  7#d7      
,report ,n lat] ?an #cj mon?s aft] !    
date ( ! enactm5t ( ?is section1 !      
,secret>y %all submit a report to !     
,congress conc]n+ ! /udies describ$ 9   
p>agraphs 7#a7 & 7#b74  7d7 ,public     
education  7#a7 ,9 g5]al ,!             
,adm9i/rator1 9 conjunction ) !         
,secret>y ( ,heal? & ,human ,s]vices1   
act+ ?r\gh ! ,director ( ! ,ag5cy =     
,toxic ,sub/ances & ,disease ,regi/ry1 &
 9 conjunction ) ! ,secret>y ( ,h\s+ &  
,urban ,developm5t1 %all sponsor public 
education & outrea* activities to       
increase public aw>5ess (--  7,a7 !     
scope & sev]ity ( lead poison+ f        
h\sehold s\rces1 p>ticul>ly lead-bas$   
pipes2  7,b7 pot5tial exposure to s\rces
 ( lead 9 s*ools & *ildhood day c>e     
c5t]s1 p>ticul>ly lead-bas$ pipes2  7,c7
 ! implications ( exposures = m5 & wom51

 p>ticul>ly ^? ( *ildbe>+ age2  7,d7 !  
ne$ = c>eful1 quality1 abatem5t &       
managem5t actions2  7,e7 ! ne$ =        
univ]sal scre5+ ( *ildr52  7,f7 o!r     
compon5ts ( a lead poison+ prev5tion    
program2  7,g7 ! heal? consequ5ces (    
lead exposure result+ f lead-bas$ pipe  
haz>ds2  7,h7 risk assessm5t &          
inspection me?ods = lead-bas$ pipe      
haz>ds2 &  7,i7 measures to r$uce ! risk
 ( lead exposure f lead-bas$ pipes4     
7#b7 ,t>get$ audi5ces ,! activities     
describ$ 9 p>agraph 7#a7 %all be design$
 to provide educational s]vices &       
in=mation to--  7,a7 heal? pr(essionals2
  7,b7 ! g5]al public1 ) emphasis on    
p>5ts ( "y *ildr52  7,c7 home[n]s1      
l&lords1 & t5ants2  7,d7 consum]s ( home
 improvem5t products2  7,e7 ! resid5tial
 real e/ate indu/ry2 &  7,f7 ! home     
r5ovation indu/ry4  7e7 ,te*nical       
assi/ance  7#a7 ,cle>+h\se ,n lat] ?an  
#f mon?s aft] ! enactm5t ( ?is ,act1 !  
,adm9i/rator %all e/abli%1 9            
consultation ) ! ,secret>y ( ,h\s+ &    

,urban ,developm5t & ! ,director ( !    
,c5t]s = ,disease ,control1 a ,national 
,cle>+h\se on ,*ildhood ,lead ,poison+  
79 ?is section ref]r$ to z !            
,cle>+h\se74 ,! ,cle>+h\se %all--  7,a7 
collect1 evaluate1 & dissem9ate curr5t  
in=mation on ! assessm5t & r$uction (   
lead-bas$ pipe haz>ds1 adv]se heal?     
effects1 s\rces ( exposure1 detection & 
risk assessm5t me?ods1 environm5tal     
haz>ds abatem5t1 & clean-up /&>ds2  7,b7
 ma9ta9 a rapid-al]t sy/em to in=m      
c]tifi$ lead-bas$ pipe activities       
contractors ( significant developm5ts 9 
rese>* relat$ to lead-bas$ pa9t haz>ds2 
&  7,c7 p]=m any o!r duty t !           
,adm9i/ration det]m9es necess>y to      
a*ieve ! purposes ( ?is ,act4  7#b7     
,hotl9e ,n lat] ?an #f mon?s aft] !     
enactm5t ( ?is subsection1 !            
,adm9i/rator1 9 coop]ation ) o!r ,f$]al 
ag5cies & ) ,/ate & local gov]nm5ts1    
%all e/abli% a s+le lead-bas$ pipe haz>d
 hotl9e to provide ! public ) answ]s to 
que/ions ab\t lead poison 9 prev5tion & 

ref]rals to ! ,cle>+h\se = te*nical     
in=mation4  #bje4 ,lead haz>d in=mation 
pamphlet  7a7 ,9 g5]al ,n lat] ?an #b   
ye>s aft] ! enactm5t ( ?is ,act1 aft]   
notice & opportunity = comm5t1 !        
,adm9i/rator ( ! ,environm5tal          
,protection ,ag5cy1 9 consultation ) !  
,secret>y ( ,h\s+ & ,urban ,developm5t &
 ) ! ,secret>y ( ,heal? & ,human        
,s]vices1 %all publi%1 & f "t to "t     
revise1 a lead haz>d in=mation pamphlet4
 ,! pamphlet %all--  7#a7 conta9        
in=mation reg>d+ ! heal? risks associat$
 ) exposure to lead2  7#b7 provide      
in=mation on ! pres5ce ( lead-bas$ pipe 
haz>ds 9 f$]ally assi/$1 f$]ally own$1 &
 o!r h\s+2  7#c7 describe ! risks ( lead
 exposure = *ildr5 "u #f ye>s ( age1    
pregnant wom51 wom5 ( *ildbe>+ age1     
p]sons involv$ 9 home r5ovation1 & o!rs 
resid+ 9 a dwell+ ) lead-bas$ pipe      
haz>ds2  7#d7 describe ! risks (        
r5ovation 9 a dwell+ ) lead-bas$ pipe   
haz>ds2  7#e7 provide in=mation on      
approv$ me?ods = evaluat+ & r$uc+       

lead-bas$ pipe haz>ds & _! effectiv5ess 
9 id5tify+1 r$uc+1 elim9at+1 or prev5t+ 
exposure to lead-bas$ pipe haz>ds2  7#f7
 advise p]sons h[ to obta9 a li/ (      
contractors c]tifi$ pursuant to ?is     
title 9 lead-bas$ pipe haz>d evaluation 
& r$uction 9 ! area 9 :i* ! pamphlet is 
to be us$2  7#g7 /ate t a risk assessm5t
 or inspection = lead-bas$ pipe is      
recomm5d$ prior to ! pur*ase1 lease1 or 
r5ovation ( h\s+2  7#h7 /ate t c]ta9    
,/ate & local laws impose additional    
requirem5ts relat$ to lead-bas$ pipe 9  
h\s+ & provide a li/+ ( ,f$]al1 ,/ate1 &
 local ag5cies 9 ea* ,/ate1 includ+     
address & telephone numb]1 t c provide  
in=mation ab\t applicable laws &        
available gov]n-m5tal & private         
assi/ance & f9anc+2 &  7#i7 provide su* 
o!r in=mation ab\t environm5tal haz>ds  
associat$ ) resid5tial real prop]ty z ! 
,adm9i/rator deems appropriate4  7b7    
,r5ovation ( h\s+ ,)9 #b ye>s aft] !    
enactm5t ( ?is section1 ! ,adm9i/rator  
%all promulgate regulations "u ?is      

subsection to require ea* p]son :o p]=ms
 = comp5sation a r5ovation ( h\s+ to    
provide a lead haz>d in=mation pamphlet 
to ! own] & occupant ( su* h\s+ prior to
 comm5c+ ! r5ovation4  #bjf4            
,regulations ,! regulations ( !         
,adm9i/rator "u ?is title %all include  
su* recordkeep+ & report+ requirem5ts z 
may be necess>y to insure ! effective   
implem5tation ( ?is title4 ,!           
regulations may be am5d$ f "t to "t z   
necess>y4  #bjg4 ,control ( lead-bas$   
pipe haz>ds at ,f$]al facilities ,ea*   
dep>tm5t1 ag5cy1 & in/rum5tality (      
executive1 legislative1 & judicial      
bran*es ( ! ,f$]al ,gov]nm5t 7#a7 hav+  
jurisdiction ov] any prop]ty or         
facility1 or 7#b7 engag$ 9 any activity 
result+1 or :i* may result1 9 a         
lead-bas$ pipe haz>d1 & ea* (fic]1 ag5t1
 or employee !re(1 %all be subject to1 &
 comply )1 all ,f$]al1 ,/ate1 int]/ate1 
& local requirem5ts1 bo? sub/antive &   
proc$ural 7includ+ any requirem5t =     
c]tification1 lic5s+1 recordkeep+1 or   

report+ or any provisions = injunctive  
relief & su* sanctions z may be impos$  
by a c\rt to en=ce su* relief respect+  
lead-bas$ pipe1 lead-bas$ pipe          
activities1 & lead-bas$ pipe haz>ds 9 ! 
same mann]1 & to ! same ext5t z any     
nongov]nm5tal entity is subject to su*  
requirem5ts1 includ+ ! paym5t (         
reasonable s]vice *>ges74 ,! ,f$]al1    
,/ate1 int]/ate1 & local sub/antive &   
proc$ural requirem5ts ref]r$ to 9 ?is   
subsection include1 b are n limit$ to1  
all adm9i/rative ord]s & all civil &    
adm9i/rative p5alties & f9es reg>dless (
 :e!r su* p5alties or f9es are punitive 
or co]cive 9 nature1 or :e!r impos$ =   
isolat$1 int]mitt5t or cont9u+          
violations4 ,! ,unit$ ,/ates h]eby      
expressly waives any immunity o!rwise   
applicable to ! ,unit$ ,/ates ) respect 
to any su* sub/antive or proc$ural      
requirem5t 7includ+1 b n limit$ to1 any 
injunctive relief1 adm9i/rative ord]1 or
 civil or adm9i/rative p5alty ref]r$ to 
9 ! prec$+ s5t5ce1 or reasonable s]vice 

*>ge74 ,! reasonable s]vice *>ges ref]r$
 to 9 ?is section include1 b are n      
limit$ to1 fees or *>ges assess$ =      
c]tification & lic5s+1 z well z any o!r 
nondiscrim9atory *>ges t are assess$ 9  
connection ) a ,f$]al1 ,/ate1 int]/ate1 
or local lead-bas$ pipe1 lead-bas$ pipe 
activities1 or lead-bas$ pipe haz>d     
activities program4 ,no ag5t1 employee1 
or (fic] ( ! ,unit$ ,/ates %all be      
p]sonally liable = any civil p5alty "u  
any ,f$]al1 ,/ate1 int]/ate1 or local   
law relat+ to lead-bas$ pipe1 lead-bas$ 
pipe activities1 or lead-bas$ pipe      
haz>ds ) respect to any act or omission 
)9 ! scope ( 8 (ficial duties4  #bjh4   
,prohibit$ ,acts ,x %all be unlawful =  
any p]son to fail or refuse to comply ) 
a provision ( ?is title or ) any rule or
 ord] issu$ "u ?is title4  #bji4        
,relation%ip to o!r ,f$]al law ,no?+ 9  
?is title %all affect ! au?ority ( o!r  
appropriate ,f$]al ag5cies to e/abli% or
 en=ce any requirem5ts :i* are at lea/ z
 /r+5t z ^? e/abli%$ pursuant to ?is    

title4  #baj4 ,g5]al provisions relat+  
to adm9i/rative proce$+s  7a7           
,applicability ,?is section applies to !
 promulgation or revision ( any         
regulation issu$ "u ?is title4  7b7     
,rulemak+ docket ,n lat] ?an ! date (   
proposal ( an action to :i* ?is section 
applies1 ! ,adm9i/rator %all e/abli% a  
rulemak+ docket = su* action 79 ?is     
subsection ref]r$ to z a rule74 ,:5ev] a
 rule applies only )9 a p>ticul> ,/ate1 
a second 7id5tical7 docket %all be      
e/abli%$ 9 ! appropriate regional (fice 
( ! ,environm5tal ,protection ,ag5cy4   
7c7 ,inspection & copy+  7#a7 ,public   
availability ,! rulemak+ docket requir$ 
"u subsection 7b7 %all be op5 =         
inspection by ! public at reasonable    
times specifi$ 9 ! notice ( propos$     
rulemak+4 ,any p]son may copy docum5ts  
conta9$ 9 ! docket4 ,! ,adm9i/rator %all
 provide copy+ facilities :i* may be us$
 at ! exp5se ( ! p]son seek+ copies1 b !
 ,adm9i/rator may waive or r$uce su*    
exp5ses 9 su* in/ances z ! public int]e/

 requires4 ,any p]son may reque/ copies 
by mail if ! p]son pays ! exp5ses1      
includ+ p]sonnel co/s to d ! copy+4     
7#b7 ,docket  7,a7 ,comm5ts & in=mation 
,promptly ^u receipt by ! ag5cy1 all    
writt5 comm5ts & docum5t>y in=mation on 
! propos$ rule receiv$ f any p]son =    
inclusion 9 ! docket dur+ ! comm5t p]iod
 %all be plac$ 9 ! docket4 ,! transcript
 ( public he>+ if any1 on ! propos$ rule
 %all also be includ$ 9 ! docket        
promptly ^u receipt f ! p]son :o        
transcrib$ su* he>+s4 ,all docum5ts :i* 
become available aft] ! propos$ rule has
 be5 publi%$ & :i* ! ,adm9i/rator       
det]m9es are ( c5tral relevance to !    
rulemak+ %all be plac$ 9 ! docket z soon
 z possible aft] _! availability4  7,b7 
,drafts ( rules ,! drafts ( propos$     
rules submitt$ by ! ,adm9i/rator to !   
,(fice ( ,managem5t & ,budget = any     
int]ag5cy review process prior to       
proposal ( any su* rule1 all docum5ts   
accompany+ su* drafts1 & all writt5     
comm5ts !reon by o!r ag5cies & all      

writt5 responses to su* writt5 comm5ts  
by ! ,adm9i/rator %all be plac$ 9 !     
docket no lat] ?an ! date ( proposal ( !
 rule4 ,! drafts ( ! f9al rule submitt$ 
= su* review process prior to           
promulgation & all su* writt5 comm5ts   
!reto all docum5ts accompany+ su*       
drafts1 & writt5 responses !reto %all be
 plac$ 9 ! docket no lat] ?an ! date (  
promulgation4  7d7 ,explanation  7#a7   
,major *anges ,! promulgat$ rule %all be
 accompani$ by an explanation ( !       
reasons = any major *anges 9 !          
promulgat$ rule f ! propos$ rule4  7#b7 
,responses ,! promulgat$ rule %all also 
be accompani$ by a response to ea* ( !  
significant comm5ts1 criticisms1 & new  
data submitt$ 9 writt5 or oral          
pres5tations dur+ ! comm5t p]iod4  7#c7 
,limitation ,! promulgat$ rule may n be 
bas$ 79 "p or :ole7 on any in=mation or 
data :i* has n be5 plac$ 9 ! docket z ( 
! date ( su* promulgation4  7e7         
,effective date ,! requirem5ts ( ?is    
section %all take effect ) respect to   

any rule ! proposal ( :i* occurs aft]   
#ij days aft] ! date ( ! enactm5t ( ?is 
,act4  ,,iii ,au?orization (            
,appropriations = ,lead ,haz>d ,r$uction
  #cja4 ,,hud grants = lead haz>ds      
r$uction 9 h\s+ ,!re is au?oriz$ to be  
appropriat$ = grants "u section #aja (  
?is ,act & section #ajaa ( ! ,resid5tial
 ,lead-,bas$ ,pa9t ,haz>d ,r$uction ,act
 ( #aiib 7#db ,u4,s4,c4 #dheb7          
#i1ejj1jjj1jjj = ea* ( fiscal ye>s #bjbj
 ?r\gh #bjbi4  #cjb4 ,,epa fund+ = lead 
exposure r$uction ,!re is au?oriz$ to be
 appropriat$ su* sums z may be necess>y 
= ea* ( fiscal ye>s #bjbj ?r\gh #bjbi to
 c>ry out--  7#a7 title ,,ii ( ?is ,act2
  7#b7 title ,,iv ( ! ,toxic ,sub/ances 
,control ,act 7#ae ,u4,s4,c4 #bfha et   
seq47 &  7#c7 su* o!r lead haz>d        
r$uction activities z ! ,adm9i/rator ( !
 ,environm5tal ,protection ,ag5cy is    
au?oriz$ "u law to und]take1 includ+    
activities "u ! ,safe ,dr9k+ ,wat] ,act 
7#db ,u4,s4,c4 #cjj;f et seq474  ,,iv   
,rev5ue ,provisions  #dja4 ,p>tn]%ip    

int]e/s transf]r$ 9 connection )        
p]=mance ( s]vices  7a7 ,modification to
 election ,to include p>tn]%ip int]e/ 9 
gross income 9 ye> ( transf] ,subsection
 7c7 ( section #hc is am5d$ by          
r$esignat+ p>agraph 7#d7 z p>agraph 7#e7
 & by ins]t+ aft] p>agraph 7#c7 ! foll[+
 new p>agraph3  7#d7 ,p>tn]%ip int]e/s  
,except z provid$ by ! ,secret>y-- 7,a7 
,9 g5]al ,9 ! case ( any transf] ( an   
int]e/ 9 a p>tn]%ip 9 connection ) !    
provision ( s]vices to 7or = ! b5efit (7
 su* p>tn]%ip--  7i7 ! fair m>ket value 
( su* int]e/ %all be treat$ = purposes (
 ?is section z be+ equal to ! am\nt ( ! 
di/ribution :i* ! p>tn] w\ld receive if 
! p>tn]%ip sold 7at ! "t ( ! transf]7   
all ( its assets at fair m>ket value &  
di/ribut$ ! proce$s ( su* sale 7r$uc$ by
 ! liabilities ( ! p>tn]%ip7 to its     
p>tn]s 9 liquidation ( ! p>tn]%ip1 &    
7ii7 ! p]son receiv+ su* int]e/ %all be 
treat$ z hav+ made ! election "u        
subsection 7b77#a7 unless su* p]son     
makes an election "u ?is p>agraph to h  

su* subsection n apply4  7,b7 ,election 
,! election "u subp>agraph 7,a77ii7 %all
 be made "u rules simil> to ! rules (   
subsection 7b77#b74  4  7b7 ,effective  
date ,! am5dm5ts made by ?is section    
%all apply to int]e/s 9 p>tn]%ips       
transf]r$ aft] ! date ( ! enactm5t ( ?is
 ,act4  #djb4 ,special rules = p>tn]s   
provid+ inve/m5t managem5t s]vices to   
p>tn]%ips  7a7 ,9 g5]al ,"p ,i (        
sub*apt] ,k ( *apt] #a is am5d$ by add+ 
at ! end ! foll[+ new section3  #gaj4   
,special rules = p>tn]s provid+ inve/m5t
 managem5t s]vices to p>tn]%ips  7a7    
,treatm5t ( di/ributive %>e ( p>tn]%ip  
items ,= purposes ( ?is title1 9 ! case 
( an inve/m5t s]vices p>tn]%ip int]e/-- 
7#a7 ,9 g5]al ,not)/&+ section          
#gjb7;b7-- 7,a7 an am\nt equal to ! net 
capital ga9 ) respect to su* int]e/ =   
any p>tn]%ip taxable ye> %all be treat$ 
z ord9>y income1 &  7,b7 subject to !   
limitation ( p>agraph 7#b71 an am\nt    
equal to ! net capital loss ) respect to
 su* int]e/ = any p>tn]%ip taxable ye>  

%all be treat$ z an ord9>y loss4  7#b7  
,re*>act]ization ( losses limit$ to     
re*>act]iz$ ga9s ,! am\nt treat$ z      
ord9>y loss "u p>agraph 7#a77;,b7 = any 
taxable ye> %all n exce$ ! excess 7if   
any7 (--  7,a7 ! aggregate am\nt treat$ 
z ord9>y income "u p>agraph 7#a77;,a7 ) 
respect to ! inve/m5t s]vices p>tn]%ip  
int]e/ = all prec$+ p>tn]%ip taxable    
ye>s to :i* ?is section applies1 ov]    
7,b7 ! aggregate am\nt treat$ z ord9>y  
loss "u p>agraph 7#a77;,b7 ) respect to 
su* int]e/ = all prec$+ p>tn]%ip taxable
 ye>s to :i* ?is section applies4  7#c7 
,allocation to items ( ga9 & loss  7,a7 
,net capital ga9 ,! am\nt treat$ z      
ord9>y income "u p>agraph 7#a77;,a7 %all
 be allocat$ ratably among ! items (    
long-t]m capital ga9 tak5 into acc\nt 9 
det]m9+ su* net capital ga94  7,b7 ,net 
capital loss ,! am\nt treat$ z ord9>y   
loss "u p>agraph 7#a77;,b7 %all be      
allocat$ ratably among ! items (        
long-t]m capital loss & %ort-t]m capital
 loss tak5 into acc\nt 9 det]m9+ su* net

 capital loss4  7#d7 ,t]ms relat+ to    
capital ga9s & losses ,= purposes ( ?is 
section-- 7,a7 ,9 g5]al ,net capital    
ga91 long-t]m capital ga91 & long-t]m   
capital loss1 ) respect to any inve/m5t 
s]vices p>tn]%ip int]e/ = any taxable   
ye>1 %all be det]m9$ "u section #abbb1  
except t su* section %all be appli$--   
7i7 )\t reg>d to ! re*>act]ization ( any
 item z ord9>y income or ord9>y loss "u 
?is section1  7ii7 by only tak+ into    
acc\nt items ( ga9 & loss tak5 into     
acc\nt by ! hold] ( su* int]e/ "u       
section #gjb 7o!r ?an subsection 7a77#i7
 !re(7 ) respect to su* int]e/ = su*    
taxable ye>1 &  7iii7 by treat+ prop]ty 
:i* is tak5 into acc\nt 9 det]m9+ ga9s &
 losses to :i* section #abca applies z  
capital assets held = m ?an #a ye>4     
7,b7 ,net capital loss ,! t]m net       
capital loss means ! excess ( ! losses f
 sales or ex*anges ( capital assets ov] 
! ga9s f su* sales or ex*anges4 ,rules  
simil> to ! rules ( clauses 7i7 ?r\gh   
7iii7 ( subp>agraph 7,a7 %all apply =   

purposes ( ! prec$+ s5t5ce4  7#e7       
,special rule = divid5ds ,any divid5d   
allocat$ ) respect to any inve/m5t      
s]vices p>tn]%ip int]e/ %all n be treat$
 z qualifi$ divid5d income = purposes ( 
section #a7;h74  7#f7 ,special rule =   
qualifi$ small bus9ess /ock ,section    
#abjb %all n apply to any ga9 f ! sale  
or ex*ange ( qualifi$ small bus9ess /ock
 7z def9$ 9 section #abjb7;c77 allocat$ 
) respect to any inve/m5t s]vices       
p>tn]%ip int]e/4  7b7 ,dispositions (   
p>tn]%ip int]e/s  7#a7 ,ga9  7,a7 ,9    
g5]al ,any ga9 on ! disposition ( an    
inve/m5t s]vices p>tn]%ip int]e/ %all   
be-- 7i7 treat$ z ord9>y income1 &  7ii7
 recogniz$ not)/&+ any o!r provision (  
?is subtitle4  7,b7 ,gift & transf]s at 
dea? ,9 ! case ( a disposition ( an     
inve/m5t s]vices p>tn]%ip int]e/ by gift
 or by reason ( dea? ( ! taxpay]--  7i7 
subp>agraph 7,a7 %all n apply1  7ii7 su*
 int]e/ %all be treat$ z an inve/m5t    
s]vices p>tn]%ip int]e/ 9 ! h&s ( !     
p]son acquir+ su* int]e/1 &  7iii7 any  

am\nt t w\ld h be5 treat$ z ord9>y      
income "u ?is subsection _h ! dec$5t    
sold su* int]e/ imm$iately be=e dea?    
%all be treat$ z an item ( income 9     
respect ( a dec$5t "u section #fia4     
7#b7 ,loss ,any loss on ! disposition ( 
an inve/m5t s]vices p>tn]%ip int]e/ %all
 be treat$ z an ord9>y loss to ! ext5t (
 ! excess 7if any7 (--  7,a7 ! aggregate
 am\nt treat$ z ord9>y income "u        
subsection 7a7 ) respect to su* int]e/ =
 all p>tn]%ip taxable ye>s to :i* ?is   
section applies1 ov]  7,b7 ! aggregate  
am\nt treat$ z ord9>y loss "u subsection
 7a7 ) respect to su* int]e/ = all      
p>tn]%ip taxable ye>s to :i* ?is section
 applies4  7#c7 ,election ) respect to  
c]ta9 ex*anges ,p>agraph 7#a77;,a77ii7  
%all n apply to ! contribution ( an     
inve/m5t s]vices p>tn]%ip int]e/ to a   
p>tn]%ip 9 ex*ange = an int]e/ 9 su*    
p>tn]%ip if--  7,a7 ! taxpay] makes an  
irrevocable election to treat ! p>tn]%ip
 int]e/ receiv$ 9 ! ex*ange z an        
inve/m5t s]vices p>tn]%ip int]e/1 &     

7,b7 ! taxpay] agrees to comply ) su*   
report+ & recordkeep+ requirem5ts z !   
,secret>y may prescribe4  7#d7          
,di/ributions ( p>tn]%ip prop]ty  7,a7  
,9 g5]al ,9 ! case ( any di/ribution (  
prop]ty by a p>tn]%ip ) respect to any  
inve/m5t s]vices p>tn]%ip int]e/ held by
 a p>tn]1 ! p>tn] receiv+ su* prop]ty   
%all recognize ga9 equal to ! excess 7if
 any7 (--  7i7 ! fair m>ket value ( su* 
prop]ty at ! "t ( su* di/ribution1 ov]  
7ii7 ! adju/$ basis ( su* prop]ty 9 !   
h&s ( su* p>tn] 7det]m9$ )\t reg>d to   
subp>agraph 7,c774  7,b7 ,treatm5t ( ga9
 z ord9>y income ,any ga9 recogniz$ by  
su* p>tn] "u subp>agraph 7,a7 %all be   
treat$ z ord9>y income to ! same ext5t &
 9 ! same mann] z ! increase 9 su*      
p>tn]'s di/ributive %>e ( ! taxable     
income ( ! p>tn]%ip w\ld be treat$ "u   
subsection 7a7 if1 imm$iately prior to !
 di/ribution1 ! p>tn]%ip _h sold !      
di/ribut$ prop]ty at fair m>ket value & 
all ( ! ga9 f su* disposition 7 allocat$
 to su* p>tn]4 ,= purposes ( apply+     

subsection 7a77#b71 any ga9 treat$ z    
ord9>y income "u ?is subp>agraph %all be
 treat$ z an am\nt treat$ z ord9>y      
income "u subsection 7a77#a77;,a74  7,c7
 ,adju/m5t ( basis ,9 ! case a          
di/ribution to :i* subp>agraph 7,a7     
applies1 ! basis ( ! di/ribut$ prop]ty 9
 ! h&s ( ! di/ributee p>tn] %all be !   
fair m>ket value ( su* prop]ty4  7,d7   
,special rules ) respect to m]g]s1      
divisions1 & te*nical t]m9ations ,9 !   
case ( a taxpay] :i* satisfies          
requirem5ts simil> to ! requirem5ts (   
subp>agraphs 7,a7 & 7,b7 ( p>agraph     
7#c71 ?is p>agraph & p>agraph           
7#a77;,a77ii7 %all n apply to !         
di/ribution ( a p>tn]%ip int]e/ if su*  
di/ribution is 9 connection ) a         
contribution 7or deem$ contribution7 (  
any prop]ty ( ! p>tn]%ip to :i* section 
#gba applies pursuant to a transaction  
describ$ 9 p>agraph 7#a77;,b7 or 7#b7 ( 
section #gjh7;b74  7c7 ,inve/m5t s]vices
 p>tn]%ip int]e/ ,= purposes ( ?is      
section-- 7#a7 ,9 g5]al ,! t]m inve/m5t 

s]vices p>tn]%ip int]e/ means any int]e/
 9 an inve/m5t p>tn]%ip acquir$ or held 
by any p]son 9 connection ) ! conduct ( 
a trade or bus9ess describ$ 9 p>agraph  
7#b7 by su* p]son 7or any p]son relat$  
to su* p]son74 ,an int]e/ 9 an inve/m5t 
p>tn]%ip held by any p]son--  7,a7 %all 
n be treat$ z an inve/m5t s]vices       
p>tn]%ip int]e/ = any p]iod be=e ! fir/ 
date on :i* x is s held 9 connection )  
su* a trade or bus9ess1  7,b7 %all n    
cease to be an inve/m5t s]vices p>tn]%ip
 int]e/ m]ely because su* p]son holds   
su* int]e/ o!r ?an 9 connection ) su* a 
trade or bus9ess1 &  7,c7 %all be treat$
 z an inve/m5t s]vices p>tn]%ip int]e/  
if acquir$ f a relat$ p]son 9 ^: h&s su*
 int]e/ 0 an inve/m5t s]vices p>tn]%ip  
int]e/4  7#b7 ,bus9esses to :i* ?is     
section applies ,a trade or bus9ess is  
describ$ 9 ?is p>agraph if su* trade or 
bus9ess prim>ily involves ! p]=mance (  
any ( ! foll[+ s]vices ) respect to     
assets held 7directly or indirectly7 by 
"o or m inve/m5t p>tn]%ips ref]r$ to 9  

p>agraph 7#a73  7,a7 ,advis+ z to !     
advisability ( inve/+ 91 pur*as+1 or    
sell+ any specifi$ asset4  7,b7 ,manag+1
 acquir+1 or dispos+ ( any specifi$     
asset4  7,c7 ,arrang+ f9anc+ ) respect  
to acquir+ specifi$ assets4  7,d7 ,any  
activity 9 support ( any s]vice describ$
 9 subp>agraphs 7,a7 ?r\gh 7,c74  7#c7  
,inve/m5t p>tn]%ip  7,a7 ,9 g5]al ,! t]m
 inve/m5t p>tn]%ip means any p>tn]%ip   
if1 at ! end ( any two consecutive      
cal5d> qu>t]s end+ aft] ! date (        
enactm5t ( ?is section--  7i7           
sub/antially all ( ! assets ( ! p>tn]%ip
 are specifi$ assets 7det]m9$ )\t reg>d 
to any section #aig intangible )9 !     
mean+ ( section #aig7;d771 &  7ii7 less 
?an #ge p]c5t ( ! capital ( ! p>tn]%ip  
is attributable to qualifi$ capital     
int]e/s :i* con/itute prop]ty held 9    
connection ) a trade or bus9ess ( ! own]
 ( su* int]e/4  7,b7 ,look-?r\gh ( c]ta9
 :olly own$ entities = purposes (       
det]m9+ assets ( ! p>tn]%ip  7i7 ,9     
g5]al ,= purposes ( det]m9+ ! assets ( a

 p>tn]%ip "u subp>agraph 7,a77i7-- 7,i7 
any int]e/ 9 a specifi$ entity %all n be
 treat$ z an asset ( su* p>tn]%ip1 &    
7,,ii7 su* p>tn]%ip %all be treat$ z    
hold+ its proportionate %>e ( ea* ( !   
assets ( su* specifi$ entity4  7ii7     
,specifi$ entity ,= purposes ( clause   
7i71 ! t]m specifi$ entity means1 )     
respect to any p>tn]%ip 7h]eaft] ref]r$ 
to z ! upp]-ti] p>tn]%ip71 any p]son :i*
 engages 9 ! same trade or bus9ess z !  
upp]-ti] p>tn]%ip & is--  7,i7 a        
p>tn]%ip all ( ! capital & pr(its       
int]e/s ( :i* are held directly or      
indirectly by ! upp]-ti] p>tn]%ip1 or   
7,,ii7 a =eign corporation :i* does n   
engage 9 a trade or bus9ess 9 ! ,unit$  
,/ates & all ( ! /ock ( :i* is held     
directly or indirectly by ! upp]-ti]    
p>tn]%ip4  7,c7 ,special rules = det]m9+
 if prop]ty held 9 connection ) trade or
 bus9ess  7i7 ,9 g5]al ,except z o!rwise
 provid$ by ! ,secret>y1 solely =       
purposes ( det]m9+ :e!r any int]e/ 9 a  
p>tn]%ip con/itutes prop]ty held 9      

connection ) a trade or bus9ess "u      
subp>agraph 7,a77ii7--  7,i7 a trade or 
bus9ess ( any p]son closely relat$ to ! 
own] ( su* int]e/ %all be treat$ z a    
trade or bus9ess ( su* own]1  7,,ii7 su*
 int]e/ %all be treat$ z held by a p]son
 9 connection ) a trade or bus9ess dur+ 
any taxable ye> if su* int]e/ 0 s held  
by su* p]son dur+ any #c taxable ye>s   
prec$+ su* taxable ye>1 &  7,,iii7      
p>agraph 7#e77;,b7 %all n apply4  7ii7  
,closely relat$ p]sons ,= purposes (    
clause 7i77,i71 a p]son %all be treat$ z
 closely relat$ to ano!r p]son if1 tak+ 
into acc\nt ! rules ( section #bfg7;c71 
! relation%ip betwe5 su* p]sons is      
describ$ 9--  7,i7 p>agraph 7#a7 or 7#i7
 ( section #bfg7;b71 or  7,,ii7 section 
#bfg7;b77#d71 b solely 9 ! case ( a tru/
 ) respect to :i* ea* curr5t b5efici>y  
is ! grantor or a p]son ^: relation%ip  
to ! grantor is describ$ 9 p>agraph 7#a7
 or 7#i7 ( section #bfg7;b74  7,d7      
,antiabuse rules ,! ,secret>y may issue 
regulations or o!r guidance :i* prev5t !

 avoidance ( ! purposes ( subp>agraph   
7,a71 includ+ regulations or o!r        
guidance :i* treat conv]tible & cont+5t 
debt 7& o!r debt hav+ ! attributes (    
equity7 z a capital int]e/ 9 ! p>tn]%ip4
  7,e7 ,controll$ gr\ps ( entities  7i7 
,9 g5]al ,9 ! case ( a controll$ gr\p ( 
entities1 if an int]e/ 9 ! p>tn]%ip     
receiv$ 9 ex*ange = a contribution to ! 
capital ( ! p>tn]%ip by any memb] ( su* 
controll$ gr\p w\ld 79 ! h&s ( su*      
memb]7 con/itute prop]ty held 9         
connection ) a trade or bus9ess1 !n any 
int]e/ 9 su* p>tn]%ip held by any memb] 
( su* gr\p %all be treat$ = purposes (  
subp>agraph 7,a7 z con/itut+ 79 ! h&s ( 
su* memb]7 prop]ty held 9 connection ) a
 trade or bus9ess4  7ii7 ,controll$ gr\p
 ( entities ,= purposes ( clause 7i71 ! 
t]m controll$ gr\p ( entities means a   
controll$ gr\p ( corporations z def9$ 9 
section #aefc7;a77#a71 appli$ )\t reg>d 
to subsections 7a77#d7 & 7b77#b7 (      
section #aefc4 ,a p>tn]%ip or any o!r   
entity 7o!r ?an a corporation7 %all be  

treat$ z a memb] ( a controll$ gr\p (   
entities if su* entity is controll$ 7)9 
! mean+ ( section #ied7;d77#c77 by      
memb]s ( su* gr\p 7includ+ any entity   
treat$ z a memb] ( su* gr\p by reason ( 
?is s5t5ce74  7,f7 ,special rule =      
corporations ,= purposes ( ?is p>agraph1
 9 ! case ( a corporation1 ! det]m9ation
 ( :e!r prop]ty is held 9 connection ) a
 trade or bus9ess %all be det]m9$ z if !
 taxpay] 7 an individual4  7#d7         
,specifi$ asset ,! t]m specifi$ asset   
means securities 7z def9$ 9 section     
#dge7;c77#b7 )\t reg>d to ! la/ s5t5ce  
!re(71 real e/ate held = r5tal or       
inve/m5t1 int]e/s 9 p>tn]%ips1          
commodities 7z def9$ 9 section          
#dge7;e77#b771 ca% or ca% equival5ts1 or
 options or d]ivative contracts )       
respect to any ( ! =ego+4  7#e7 ,relat$ 
p]sons  7,a7 ,9 g5]al ,a p]son %all be  
treat$ z relat$ to ano!r p]son if !     
relation%ip betwe5 su* p]sons is        
describ$ 9 section #bfg7;b7 or #gjg7;b74
  7,b7 ,attribution ( p>tn] s]vices ,any

 s]vice describ$ 9 p>agraph 7#b7 :i* is 
provid$ by a p>tn] ( a p>tn]%ip %all be 
treat$ z also provid$ by su* p>tn]%ip4  
7d7 ,exception = c]ta9 capital int]e/s  
7#a7 ,9 g5]al ,9 ! case ( any portion ( 
an inve/m5t s]vices p>tn]%ip int]e/ :i* 
is a qualifi$ capital int]e/1 all items 
( ga9 & loss 7& any divid5ds7 :i* are   
allocat$ to su* qualifi$ capital int]e/ 
%all n be tak5 into acc\nt "u subsection
 7a7 if--  7,a7 allocations ( items are 
made by ! p>tn]%ip to su* qualifi$      
capital int]e/ 9 ! same mann] z su*     
allocations are made to o!r qualifi$    
capital int]e/s held by p>tn]s :o d n   
provide any s]vices describ$ 9          
subsection 7c77#b7 & :o are n relat$ to 
! p>tn] hold+ ! qualifi$ capital int]e/1
 &  7,b7 ! allocations made to su* o!r  
int]e/s are significant comp>$ to !     
allocations made to su* qualifi$ capital
 int]e/4  7#b7 ,au?ority to provide     
exceptions to allocation requirem5ts ,to
 ! ext5t provid$ by ! ,secret>y 9       
regulations or o!r guidance-- 7,a7      

,allocations to portion ( qualifi$      
capital int]e/ ,p>agraph 7#a7 may be    
appli$ sep>ately ) respect to a portion 
( a qualifi$ capital int]e/4  7,b7 ,no  
or insignificant allocations to         
nons]vice provid]s ,9 any case 9 :i* !  
requirem5ts ( p>agraph 7#a77;,b7 are n  
satisfi$1 items ( ga9 & loss 7& any     
divid5ds7 %all n be tak5 into acc\nt "u 
subsection 7a7 to ! ext5t t su* items   
are prop]ly allocable "u su* regulations
 or o!r guidance to qualifi$ capital    
int]e/s4  7,c7 ,allocations to s]vice   
provid]s' qualifi$ capital int]e/s :i*  
are less ?an o!r allocations            
,allocations %all n be treat$ z fail+ to
 meet ! requirem5t ( p>agraph 7#a77;,a7 
m]ely because ! allocations to !        
qualifi$ capital int]e/ repres5t a l[]  
return ?an ! allocations made to ! o!r  
qualifi$ capital int]e/s ref]r$ to 9 su*
 p>agraph4  7#c7 ,special rule = *anges 
9 s]vices & capital contributions ,9 !  
case ( an int]e/ 9 a p>tn]%ip :i* 0 n an
 inve/m5t s]vices p>tn]%ip int]e/ & :i*1

 by reason ( a *ange 9 ! s]vices )      
respect to assets held 7directly or     
indirectly7 by ! p>tn]%ip or by reason (
 a *ange 9 ! capital contributions to   
su* p>tn]%ip1 becomes an inve/m5t       
s]vices p>tn]%ip int]e/1 ! qualifi$     
capital int]e/ ( ! hold] ( su* p>tn]%ip 
int]e/ imm$iately aft] su* *ange %all n1
 = purposes ( ?is subsection1 be less   
?an ! fair m>ket value ( su* int]e/     
7det]m9$ imm$iately be=e su* *ange74    
7#d7 ,special rule = ti]$ p>tn]%ips     
,except z o!rwise provid$ by !          
,secret>y1 9 ! case ( ti]$ p>tn]%ips1   
all items :i* are allocat$ 9 a mann] :i*
 meets ! requirem5ts ( p>agraph 7#a7 to 
qualifi$ capital int]e/s 9 a l[]-ti]    
p>tn]%ip %all reta9 su* "* to ! ext5t   
allocat$ on ! basis ( qualifi$ capital  
int]e/s 9 any upp]-ti] p>tn]%ip4  7#e7  
,exception = no-self-*>g$ c>ry &        
managem5t fee provisions ,except z      
o!rwise provid$ by ! ,secret>y1 an      
int]e/ %all n fail to be treat$ z       
satisfy+ ! requirem5t ( p>agraph        

7#a77;,a7 m]ely because ! allocations   
made by ! p>tn]%ip to su* int]e/ d n    
reflect ! co/ ( s]vices describ$ 9      
subsection 7c77#b7 :i* are provid$      
7directly or indirectly7 to ! p>tn]%ip  
by ! hold] ( su* int]e/ 7or a relat$    
p]son74  7#f7 ,special rule =           
dispositions ,9 ! case ( any inve/m5t   
s]vices p>tn]%ip int]e/ any portion (   
:i* is a qualifi$ capital int]e/1       
subsection 7b7 %all n apply to s mu* (  
any ga9 or loss z be>s ! same proportion
 to ! entire am\nt ( su* ga9 or loss z--
  7,a7 ! di/ributive %>e ( ga9 or loss t
 w\ld h be5 allocat$ to ! qualifi$      
capital int]e/ 7consi/5t ) ! requirem5ts
 ( p>agraph 7#a77 if ! p>tn]%ip _h sold 
all ( its assets at fair m>ket value    
imm$iately be=e ! disposition1 be>s to  
7,b7 ! di/ributive %>e ( ga9 or loss t  
w\ld h be5 s allocat$ to ! inve/m5t     
s]vices p>tn]%ip int]e/ ( :i* su*       
qualifi$ capital int]e/ is a "p4  7#g7  
,qualifi$ capital int]e/ ,= purposes (  
?is section-- 7,a7 ,9 g5]al ,! t]m      

qualifi$ capital int]e/ means s mu* ( a 
p>tn]'s int]e/ 9 ! capital ( ! p>tn]%ip 
z is attributable to--  7i7 ! fair m>ket
 value ( any money or o!r prop]ty       
contribut$ to ! p>tn]%ip 9 ex*ange = su*
 int]e/ 7det]m9$ )\t reg>d to section   
#geb7;a771  7ii7 any am\nts :i* h be5   
includ$ 9 gross income "u section #hc ) 
respect to ! transf] ( su* int]e/1 &    
7iii7 ! excess 7if any7 (-- 7,i7 any    
items ( income & ga9 tak5 into acc\nt "u
 section #gjb ) respect to su* int]e/1  
ov]  7,,ii7 any items ( d$uction & loss 
s tak5 into acc\nt4  7,b7 ,adju/m5t to  
qualifi$ capital int]e/  7i7            
,di/ributions & losses ,! qualifi$      
capital int]e/ %all be r$uc$ by         
di/ributions f ! p>tn]%ip ) respect to  
su* int]e/ & by ! excess 7if any7 ( !   
am\nt describ$ 9 subp>agraph            
7,a77iii77,,ii7 ov] ! am\nt describ$ 9  
subp>agraph 7,a77iii77,i74  7ii7        
,special rule = contributions ( prop]ty 
,9 ! case ( any contribution ( prop]ty  
describ$ 9 subp>agraph 7,a77i7 ) respect

 to :i* ! fair m>ket value ( su* prop]ty
 is n equal to ! adju/$ basis ( su*     
prop]ty imm$iately be=e su*             
contribution1 prop] adju/m5ts %all be   
made to ! qualifi$ capital int]e/ to    
take into acc\nt su* diff]5ce consi/5t )
 su* regulations or o!r guidance z !    
,secret>y may provide4  7,c7 ,te*nical  
t]m9ations1 etc41 disreg>d$ ,no increase
 or decrease 9 ! qualifi$ capital int]e/
 ( any p>tn] %all result f a t]m9ation1 
m]g]1 consolidation1 or division        
describ$ 9 section #gjh1 or any simil>  
transaction4  7#h7 ,treatm5t ( c]ta9    
loans  7,a7 ,proce$s ( p>tn]%ip loans n 
treat$ z qualifi$ capital int]e/ (      
s]vice provid+ p>tn]s ,= purposes ( ?is 
subsection1 an inve/m5t s]vices p>tn]%ip
 int]e/ %all n be treat$ z a qualifi$   
capital int]e/ to ! ext5t t su* int]e/  
is acquir$ 9 connection ) ! proce$s (   
any loan or o!r advance made or         
gu>ante$1 directly or indirectly1 by any
 o!r p>tn] or ! p>tn]%ip 7or any p]son  
relat$ to any su* o!r p>tn] or !        

p>tn]%ip74 ,! prec$+ s5t5ce %all n apply
 to ! ext5t ! loan or o!r advance is    
repaid be=e ! date ( ! enactm5t ( ?is   
section unless su* repaym5t is made ) ! 
proce$s ( a loan or o!r advance describ$
 9 ! prec$+ s5t5ce4  7,b7 ,r$uction 9   
allocations to qualifi$ capital int]e/s 
= loans f nons]vice-provid+ p>tn]s to ! 
p>tn]%ip ,= purposes ( ?is subsection1  
any loan or o!r advance to ! p>tn]%ip   
made or gu>ante$1 directly or           
indirectly1 by a p>tn] n provid+ s]vices
 describ$ 9 subsection 7c77#b7 to !     
p>tn]%ip 7or any p]son relat$ to su*    
p>tn]7 %all be tak5 into acc\nt 9       
det]m9+ ! qualifi$ capital int]e/s ( !  
p>tn]s 9 ! p>tn]%ip4  7#i7 ,special rule
 = qualifi$ family p>tn]%ips  7,a7 ,9   
g5]al ,9 ! case ( any specifi$ family   
p>tn]%ip int]e/1 p>agraph 7#a77;,a7 %all
 be appli$ )\t reg>d to ! phrase & :o   
are n relat$ to ! p>tn] hold+ ! qualifi$
 capital int]e/4  7,b7 ,specifi$ family 
p>tn]%ip int]e/ ,= purposes ( ?is       
p>agraph1 ! t]m specifi$ family p>tn]%ip

 int]e/ means any inve/m5t s]vices      
p>tn]%ip int]e/ if-- 7i7 su* int]e/ is  
an int]e/ 9 a qualifi$ family p>tn]%ip1 
7ii7 su* int]e/ is held by a natural    
p]son or by a tru/ ) respect to :i* ea* 
b5efici>y is a grantor or a p]son ^:    
relation%ip to ! grantor is describ$ 9  
section #bfg7;b77#a71 &  7iii7 all o!r  
int]e/s 9 su* qualifi$ family p>tn]%ip )
 respect to :i* significant allocations 
are made 7)9 ! mean+ ( p>agraph         
7#a77;,b7 & 9 comp>ison to ! allocations
 made to ! int]e/ describ$ 9 clause     
7ii77 are held by p]sons :o--  7,i7 are 
relat$ to ! natural p]son or tru/ ref]r$
 to 9 clause 7ii71 or  7,,ii7 provide   
s]vices describ$ 9 subsection 7c77#b74  
7,c7 ,qualifi$ family p>tn]%ip ,=       
purposes ( ?is p>agraph1 ! t]m qualifi$ 
family p>tn]%ip means any p>tn]%ip if-- 
7i7 all ( ! capital & pr(its int]e/s (  
su* p>tn]%ip are held by--  7,i7        
specifi$ family memb]s1  7,,ii7 any     
p]son closely relat$ 7)9 ! mean+ (      
subsection 7c77#c77;,c77ii77 to a       

specifi$ family memb]1 or  7,,iii7 any  
o!r p]son 7n describ$ 9 subclause 7,i7  
or 7,,ii77 if su* int]e/ is an inve/m5t 
s]vices p>tn]%ip int]e/ ) respect to su*
 p]son1 &  7ii7 su* p>tn]%ip does n hold
 itself out to ! public z an inve/m5t   
advisor4  7,d7 ,specifi$ family memb]s  
,= purposes ( subp>agraph 7,c71         
individuals %all be treat$ z specifi$   
family memb]s if su* individuals w\ld be
 treat$ z "o p]son "u ! rules ( section 
#acfa7;c77#a7 if ! applicable date 7)9 !
 mean+ ( subp>agraph 7,b77iii7 !re(7 7 !
 late/ (--  7i7 ! date ( ! e/abli%m5t ( 
! p>tn]%ip1  7ii7 ! e>lie/ date t !     
common ance/or holds a capital or pr(its
 int]e/ 9 ! p>tn]%ip1 or  7iii7 ! date (
 ! enactm5t ( ?is section4  7e7 ,o!r    
income & ga9 9 connection ) inve/m5t    
managem5t s]vices  7#a7 ,9 g5]al ,if--  
7,a7 a p]son p]=ms 7directly or         
indirectly7 inve/m5t managem5t s]vices =
 any inve/m5t entity1  7,b7 su* p]son   
holds 7directly or indirectly7 a        
disqualifi$ int]e/ ) respect to su*     

entity1 &  7,c7 ! value ( su* int]e/ 7or
 paym5ts !reund]7 is sub/antially relat$
 to ! am\nt ( income or ga9 7:e!r or n  
realiz$7 f ! assets ) respect to :i* !  
inve/m5t managem5t s]vices are p]=m$1   
any income or ga9 ) respect to su*      
int]e/ %all be treat$ z ord9>y income4  
,rules simil> to ! rules ( subsections  
7a77#e7 & 7d7 %all apply = purposes (   
?is subsection4  7#b7 ,def9itions ,=    
purposes ( ?is subsection-- 7,a7        
,disqualifi$ int]e/  7i7 ,9 g5]al ,! t]m
 disqualifi$ int]e/ means1 ) respect to 
any inve/m5t entity--  7,i7 any int]e/ 9
 su* entity o!r ?an indebt$ness1  7,,ii7
 conv]tible or cont+5t debt ( su*       
entity1  7,,iii7 any option or o!r "r to
 acquire prop]ty describ$ 9 subclause   
7,i7 or 7,,ii71 &  7,,iv7 any d]ivative 
in/rum5t ent]$ into 7directly or        
indirectly7 ) su* entity or any inve/or 
9 su* entity4  7ii7 ,exceptions ,su* t]m
 %all n include-- 7,i7 a p>tn]%ip       
int]e/1  7,,ii7 except z provid$ by !   
,secret>y1 any int]e/ 9 a taxable       

corporation1 &  7,,iii7 except z provid$
 by ! ,secret>y1 /ock 9 an ,s           
corporation4  7,b7 ,taxable corporation 
,! t]m taxable corporation means-- 7i7 a
 dome/ic ,c corporation1 or  7ii7 a     
=eign corporation sub/antially all ( !  
income ( :i* is-- 7,i7 effectively      
connect$ ) ! conduct ( a trade or       
bus9ess 9 ! ,unit$ ,/ates1 or  7,,ii7   
subject to a compreh5sive =eign income  
tax 7z def9$ 9 section #deg;,a7d77#b774 
7,c7 ,inve/m5t managem5t s]vices ,! t]m 
inve/m5t managem5t s]vices means a      
sub/antial quantity ( any ( ! s]vices   
describ$ 9 subsection 7c77#b74  7,d7    
,inve/m5t entity ,! t]m inve/m5t entity 
means any entity :i*1 if x 7 a p>tn]%ip1
 w\ld be an inve/m5t p>tn]%ip4  7f7     
,exception = dome/ic ,c corporations    
,except z o!rwise provid$ by !          
,secret>y1 9 ! case ( a dome/ic ,c      
corporation--  7#a7 subsections 7a7 &   
7b7 %all n apply to any item allocat$ to
 su* corporation ) respect to any       
inve/m5t s]vices p>tn]%ip int]e/ 7or to 

any ga9 or loss ) respect to !          
disposition ( su* an int]e/71 &  7#b7   
subsection 7e7 %all n apply4  7g7       
,regulations ,! ,secret>y %all prescribe
 su* regulations or o!r guidance z is   
necess>y or appropriate to c>ry out !   
purposes ( ?is section1 includ+         
regulations or o!r guidance to--  7#a7  
require su* report+ & recordkeep+ by any
 p]son 9 su* mann] & at su* "t z !      
,secret>y may prescribe = purposes (    
enabl+ ! p>tn]%ip to meet ! requirem5ts 
( section #fjca ) respect to any item   
describ$ 9 section #gjb7;a77#i71  7#b7  
provide modifications to ! application (
 ?is section 7includ+ treat+ relat$     
p]sons z n relat$ to "o ano!r7 to !     
ext5t su* modification is consi/5t ) !  
purposes ( ?is section1  7#c7 prev5t !  
avoidance ( ! purposes ( ?is section    
7includ+ ?r\gh ! use ( qualifi$ family  
p>tn]%ips71 &  7#d7 coord9ate ?is       
section ) ! o!r provisions ( ?is title4 
7h7 ,cross ref]5ce ,= #dj-p]c5t p5alty  
on c]ta9 und]paym5ts due to ! avoidance 

( ?is section1 see section #fffb4  4    
7b7 ,application ( section #gea to      
indirect dispositions ( inve/m5t s]vices
 p>tn]%ip int]e/s  7#a7 ,9 g5]al        
,subsection 7a7 ( section #gea is am5d$ 
by /rik+ or at ! end ( p>agraph 7#a71 by
 ins]t+ or at ! end ( p>agraph 7#b71 &  
by ins]t+ aft] p>agraph 7#b7 ! foll[+   
new p>agraph3  7#c7 inve/m5t s]vices    
p>tn]%ip int]e/s held by ! p>tn]%ip1  4 
7#b7 ,c]ta9 di/ributions treat$ z sales 
or ex*anges ,subp>agraph 7,a7 ( section 
#gea7;b77#a7 is am5d$ by /rik+ or at !  
end ( clause 7i71 by ins]t+ or at ! end 
( clause 7ii71 & by ins]t+ aft] clause  
7ii7 ! foll[+ new clause3  7iii7        
inve/m5t s]vices p>tn]%ip int]e/s held  
by ! p>tn]%ip1  4  7#c7 ,application (  
special rules 9 ! case ( ti]$ p>tn]%ips 
,subsection 7f7 ( section #gea is       
am5d$-- 7,a7 by /rik+ or at ! end (     
p>agraph 7#a71 by ins]t+ or at ! end (  
p>agraph 7#b71 & by ins]t+ aft] p>agraph
 7#b7 ! foll[+ new p>agraph3  7#c7 an   
inve/m5t s]vices p>tn]%ip int]e/ held by

 ! p>tn]%ip1  1 &  7,b7 by /rik+ p>tn]4 
& ins]t+ p>tn] 7o!r ?an a p>tn]%ip 9 :i*
 x holds an inve/m5t s]vices p>tn]%ip   
int]e/744  7#d7 ,inve/m5t s]vices       
p>tn]%ip int]e/s2 qualifi$ capital      
int]e/s ,section #gea is am5d$ by add+  
at ! end ! foll[+ new subsection3  7g7  
,inve/m5t s]vices p>tn]%ip int]e/s ,=   
purposes ( ?is section--  7#a7 ,9 g5]al 
,! t]m inve/m5t s]vices p>tn]%ip int]e/ 
has ! mean+ giv5 su* t]m by section     
#gaj7;c74  7#b7 ,adju/m5ts = qualifi$   
capital int]e/s ,! am\nt to :i*         
subsection 7a7 applies by reason (      
p>agraph 7#c7 !re( %all n include s mu* 
( su* am\nt z is attributable to any    
portion ( ! inve/m5t s]vices p>tn]%ip   
int]e/ :i* is a qualifi$ capital int]e/ 
7det]m9$ "u rules simil> to ! rules (   
section #gaj7;d774  7#c7 ,exception =   
publicly trad$ p>tn]%ips ,except z      
o!rwise provid$ by ! ,secret>y1 9 ! case
 ( an ex*ange ( an int]e/ 9 a publicly  
trad$ p>tn]%ip 7z def9$ 9 section #ggjd7
 to :i* subsection 7a7 applies--  7,a7  

?is section %all be appli$ )\t reg>d to 
subsections 7a77#c71 7b77#a77;,a77iii71 
& 7f77#c71 &  7,b7 su* p>tn]%ip %all be 
treat$ z own+ its proportionate %>e ( ! 
prop]ty ( any o!r p>tn]%ip 9 :i* x is a 
p>tn]4  7#d7 ,recognition ( ga9s ,any   
ga9 ) respect to :i* subsection 7a7     
applies by reason ( p>agraph 7#c7 !re(  
%all be recogniz$ not)/&+ any o!r       
provision ( ?is title4  7#e7            
,coord9ation ) inv5tory items ,an       
inve/m5t s]vices p>tn]%ip int]e/ held by
 ! p>tn]%ip %all n be treat$ z an       
inv5tory item ( ! p>tn]%ip4  7#f7       
,prev5tion ( d\ble c\nt+ ,"u regulations
 or o!r guidance prescrib$ by !         
,secret>y1 subsection 7a77#c7 %all n    
apply ) respect to any am\nt to :i*     
section #gaj applies4  7#g7 ,valuation  
me?ods ,! ,secret>y %all prescribe      
regulations or o!r guidance :i* provide 
! acceptable me?ods = valu+ inve/m5t    
s]vices p>tn]%ip int]e/s = purposes (   
?is section4  4  7c7 ,treatm5t =        
purposes ( section #ggjd ,subsection 7d7

 ( section #ggjd is am5d$ by add+ at !  
end ! foll[+ new p>agraph3  7#f7 ,income
 f c]ta9 c>ri$ int]e/s n qualifi$  7,a7 
,9 g5]al ,specifi$ c>ri$ int]e/ income  
%all n be treat$ z qualify+ income4     
7,b7 ,specifi$ c>ri$ int]e/ income ,=   
purposes ( ?is p>agraph-- 7i7 ,9 g5]al  
,! t]m specifi$ c>ri$ int]e/ income     
means--  7,i7 any item ( income or ga9  
allocat$ to an inve/m5t s]vices p>tn]%ip
 int]e/ 7z def9$ 9 section #gaj7;c77    
held by ! p>tn]%ip1  7,,ii7 any ga9 on !
 disposition ( an inve/m5t s]vices      
p>tn]%ip int]e/ 7z s def9$7 or a        
p>tn]%ip int]e/ to :i* 79 ! h&s ( !     
p>tn]%ip7 section #gea applies1 &       
7,,iii7 any income or ga9 tak5 into     
acc\nt by ! p>tn]%ip "u subsection      
7b77#d7 or 7e7 ( section #gaj4  7ii7    
,exception = qualifi$ capital int]e/s ,a
 rule simil> to ! rule ( section        
#gaj7;d7 %all apply = purposes ( clause 
7i74  7,c7 ,coord9ation ) o!r provisions
 ,subp>agraph 7,a7 %all n apply to any  
item describ$ 9 p>agraph 7#a77;,e7 7or s

 mu* ( p>agraph 7#a77;,f7 z relates to  
p>agraph 7#a77;,e774  7,d7 ,special     
rules = c]ta9 p>tn]%ips  7i7 ,c]ta9     
p>tn]%ips own$ by real e/ate inve/m5t   
tru/s ,subp>agraph 7,a7 %all n apply 9 !
 case ( a p>tn]%ip :i* meets ea* ( !    
foll[+ requirem5ts3  7,i7 ,su* p>tn]%ip 
is treat$ z publicly trad$ "u ?is       
section solely by reason ( int]e/s 9 su*
 p>tn]%ip be+ conv]tible into int]e/s 9 
a real e/ate inve/m5t tru/ :i* is       
publicly trad$4  7,,ii7 ,fifty p]c5t or 
m ( ! capital & pr(its int]e/s ( su*    
p>tn]%ip are own$1 directly or          
indirectly1 at all times dur+ ! taxable 
ye> by su* real e/ate inve/m5t tru/     
7det]m9$ ) ! application ( section      
#bfg7;c774  7,,iii7 ,su* p>tn]%ip meets 
! requirem5ts ( p>agraphs 7#b71 7#c71 & 
7#d7 ( section #hef7;c74  7ii7 ,c]ta9   
p>tn]%ips own+ o!r publicly trad$       
p>tn]%ips ,subp>agraph 7,a7 %all n apply
 9 ! case ( a p>tn]%ip :i* meets ea* ( !
 foll[+ requirem5ts3  7,i7 ,sub/antially
 all ( ! assets ( su* p>tn]%ip consi/ ( 

int]e/s 9 "o or m publicly trad$        
p>tn]%ips 7det]m9$ )\t reg>d to         
subsection 7b77#b774  7,,ii7            
,sub/antially all ( ! income ( su*      
p>tn]%ip is ord9>y income or section    
#abca ga9 7z def9$ 9 section            
#abca7;a77#c774  7,e7 ,transitional rule
 ,subp>agraph 7,a7 %all n apply to any  
taxable ye> ( ! p>tn]%ip beg9n+ be=e !  
date :i* is #aj ye>s aft] ! date ( !    
enactm5t ( ?is p>agraph4  4  7d7        
,imposition ( p5alty on und]paym5ts     
7#a7 ,9 g5]al ,subsection 7b7 ( section 
#fffb is am5d$ by ins]t+ aft] p>agraph  
7#g7 ! foll[+ new p>agraph3  7#h7 ,!    
application ( section #gaj7;e7 or !     
regulations or o!r guidance prescrib$ "u
 section #gaj7;g7 to prev5t ! avoidance 
( ! purposes ( section #gaj4  4  7#b7   
,am\nt ( p5alty  7,a7 ,9 g5]al ,section 
#fffb is am5d$ by add+ at ! end ! foll[+
 new subsection3  7k7 ,increase 9 p5alty
 9 case ( prop]ty transf]r$ = inve/m5t  
managem5t s]vices ,9 ! case ( any       
portion ( an und]paym5t to :i* ?is      

section applies by reason ( subsection  
7b77#h71 subsection 7a7 %all be appli$ )
 respect to su* portion by sub/itut+ #dj
 p]c5t = #bj p]c5t4  4  7,b7 ,con=m+    
am5dm5t ,subp>agraph 7,b7 ( section     
#fffb;,a7e77#b7 is am5d$ by /rik+ or 7i7
 & ins]t+ 1 7i71 or 7k74  7#c7 ,special 
rules = application ( reasonable cause  
exception ,subsection 7c7 ( section     
#fffd is am5d$--  7,a7 by r$esignat+    
p>agraphs 7#c7 & 7#d7 z p>agraphs 7#d7 &
 7#e71 respectively2  7,b7 by /rik+     
p>agraph 7#c7 9 p>agraph 7#e77;,a71 z s 
r$esignat$1 & ins]t+ p>agraph 7#d72 &   
7,c7 by ins]t+ aft] p>agraph 7#b7 !     
foll[+ new p>agraph3  7#c7 ,special rule
 = und]paym5ts attributable to inve/m5t 
managem5t s]vices  7,a7 ,9 g5]al        
,p>agraph 7#a7 %all n apply to any      
portion ( an und]paym5t to :i* section  
#fffb applies by reason ( subsection    
7b77#h7 unless--  7i7 ! relevant facts  
affect+ ! tax treatm5t ( ! item are     
adequately disclos$1  7ii7 !re is or 0  
sub/antial au?ority = su* treatm5t1 &   

7iii7 ! taxpay] reasonably believ$ t su*
 treatm5t 0 m likely ?an n ! prop]      
treatm5t4  7,b7 ,rules relat+ to        
reasonable belief ,rules simil> to !    
rules ( subsection 7d77#c7 %all apply = 
purposes ( subp>agraph 7,a77iii74  4    
7e7 ,income & loss f inve/m5t s]vices   
p>tn]%ip int]e/s tak5 into acc\nt 9     
det]m9+ net e>n+s f self-,employm5t     
7#a7 ,int]nal ,rev5ue ,code  7,a7 ,9    
g5]al ,section #adjb7;a7 is am5d$ by    
/rik+ & at ! end ( p>agraph 7#af71 by   
/rik+ ! p]iod at ! end ( p>agraph 7#ag7 
& ins]t+ 2 &1 & by ins]t+ aft] p>agraph 
7#ag7 ! foll[+ new p>agraph3  7#ah7     
not)/&+ ! prec$+ provisions ( ?is       
subsection1 9 ! case ( any individual   
engag$ 9 ! trade or bus9ess ( provid+   
s]vices describ$ 9 section #gaj7;c77#b7 
) respect to any entity1 inve/m5t       
s]vices p>tn]%ip income or loss 7z def9$
 9 subsection 7m77 ( su* individual )   
respect to su* entity %all be tak5 into 
acc\nt 9 det]m9+ ! net e>n+s f          
self-employm5t ( su* individual4  4     

7,b7 ,inve/m5t s]vices p>tn]%ip income  
or loss ,section #adjb is am5d$ by add+ 
at ! end ! foll[+ new subsection3  7m7  
,inve/m5t s]vices p>tn]%ip income or    
loss ,= purposes ( subsection 7a7--     
7#a7 ,9 g5]al ,! t]m inve/m5t s]vices   
p>tn]%ip income or loss means1 ) respect
 to any inve/m5t s]vices p>tn]%ip int]e/
 7z def9$ 9 section #gaj7;c77 or        
disqualifi$ int]e/ 7z def9$ 9 section   
#gaj7;e771 ! net (--  7,a7 ! am\nts     
treat$ z ord9>y income or ord9>y loss "u
 subsections 7b7 & 7e7 ( section #gaj ) 
respect to su* int]e/1  7,b7 all items (
 income1 ga91 loss1 & d$uction allocat$ 
to su* int]e/1 &  7,c7 ! am\nts treat$ z
 realiz$ f ! sale or ex*ange ( prop]ty  
o!r ?an a capital asset "u section #gea 
) respect to su* int]e/4  7#b7          
,exception = qualifi$ capital int]e/s ,a
 rule simil> to ! rule ( section        
#gaj7;d7 %all apply = purposes ( apply+ 
p>agraph 7#a77;,b74  4  7#b7 ,social    
,security ,act ,section #baa7;a7 ( !    
,social ,security ,act is am5d$ by /rik+

 & at ! end ( p>agraph 7#ae71 by /rik+ !
 p]iod at ! end ( p>agraph 7#af7 &      
ins]t+ 2 &1 & by ins]t+ aft] p>agraph   
7#af7 ! foll[+ new p>agraph3  7#ag7     
,not)/&+ ! prec$+ provisions ( ?is      
subsection1 9 ! case ( any individual   
engag$ 9 ! trade or bus9ess ( provid+   
s]vices describ$ 9 section #gaj7;c77#b7 
( ! ,int]nal ,rev5ue ,code ( #aihf )    
respect to any entity1 inve/m5t s]vices 
p>tn]%ip income or loss 7z def9$ 9      
section #adjb7m7 ( su* ,code7 %all be   
tak5 into acc\nt 9 det]m9+ ! net e>n+s f
 self-employm5t ( su* individual4  4    
7f7 ,sep>ate acc\nt+ by p>tn] ,section  
#gjb7;a7 is am5d$ by /rik+ & at ! end ( 
p>agraph 7#g71 by /rik+ ! p]iod at ! end
 ( p>agraph 7#h7 & ins]t+ 1 &1 & by     
ins]t+ aft] p>agraph 7#h7 ! foll[+3     
7#i7 any am\nt treat$ z ord9>y income or
 loss "u subsection 7a71 7b71 or 7e7 (  
section #gaj4  4  7g7 ,con=m+ am5dm5ts  
7#a7 ,subsection 7d7 ( section #gca is  
am5d$ by ins]t+ section #gaj7;b77#d7    
7relat+ to di/ributions ( p>tn]%ip      

prop]ty71 aft] to ! ext5t o!rwise       
provid$ by4  7#b7 ,section #gda is am5d$
 by ins]t+ or section #gaj 7relat+ to   
special rules = p>tn]s provid+ inve/m5t 
managem5t s]vices to p>tn]%ips7 be=e !  
p]iod at ! end4  7#c7 ,! table (        
sections = "p ,i ( sub*apt] ,k ( *apt]  
#a is am5d$ by add+ at ! end ! foll[+   
new item3  ,sec4 #gaj4 ,special rules = 
p>tn]s provid+ inve/m5t managem5t       
s]vices to p>tn]%ips4  4  7#d7 ,"p ,,iv 
( sub*apt] ,o ( *apt] #a is am5d$ by    
/rik+ section #ajfa1 & ! table (        
sections = su* "p is am5d$ by /rik+ !   
item relat+ to section #ajfa4  7h7      
,effective date  7#a7 ,9 g5]al ,except z
 o!rwise provid$ 9 ?is subsection1 !    
am5dm5ts made by ?is section %all apply 
to taxable ye>s end+ aft] ! date ( !    
enactm5t ( ?is ,act4  7#b7 ,p>tn]%ip    
taxable ye>s :i* include effective date 
,9 apply+ section #gaj7;a7 ( ! ,int]nal 
,rev5ue ,code ( #aihf 7z add$ by ?is    
section7 9 ! case ( any p>tn]%ip taxable
 ye> :i* includes ! date ( ! enactm5t ( 

?is ,act1 ! am\nt ( ! net capital ga9   
ref]r$ to 9 su* section %all be treat$ z
 be+ ! less] ( ! net capital ga9 = !    
entire p>tn]%ip taxable ye> or ! net    
capital ga9 det]m9$ by only tak+ into   
acc\nt items attributable to ! portion (
 ! p>tn]%ip taxable ye> :i* is aft] su* 
date4  7#c7 ,dispositions ( p>tn]%ip    
int]e/s  7,a7 ,9 g5]al ,section #gaj7;b7
 ( su* ,code 7z add$ by ?is section7    
%all apply to dispositions &            
di/ributions aft] ! date ( ! enactm5t ( 
?is ,act4  7,b7 ,indirect dispositions  
,! am5dm5ts made by subsection 7b7 %all 
apply to transactions aft] ! date ( !   
enactm5t ( ?is ,act4  7#d7 ,o!r income &
 ga9 9 connection ) inve/m5t managem5t  
s]vices ,section #gaj7;e7 ( su* ,code 7z
 add$ by ?is section7 %all take effect  
on ! date ( ! enactm5t ( ?is ,act4      
#djc4 ,return to pre-#bjah e/ate & gift 
tax basic exclusion am\nt  7a7 ,9 g5]al 
,section #bjaj7;c77#c7 ( ! ,int]nal     
,rev5ue ,code ( #aihf is am5d$ by /rik+ 
subp>agraph 7,c74  7b7 ,effective date  

,! am5dm5ts made by ?is section %all    
apply to e/ates ( dec$5ts dy+ & gifts   
made aft] ! date ( ! enactm5t ( ?is     
,act4