,i #aaf? ,,congress #b;d ,session ,h4 ,r4 #gdgg ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,july #a1 #bjbj ,mrs4 ,watson ,coleman 7= h]self & ,ms4 ,om>7 introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,ways & ,means1 & 9 addition to ! ,committee on ,education & ,labor1 = 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 require ! ,secret>y ( ,labor to e/abli% a program to provide grants = job gu>antee programs4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,work=ce ,promotion & ,access ,act or ! ,,wpa ,act4 #b4 ,job gu>antee grant program 7a7 ,def9itions ,9 ?is section3 7#a7 ,eligible entity ,! t]m eligible entity means an entity t is a political subdivision ( a ,/ate1 ,tribal entity1 outly+ area1 or a comb9ation ( contigu\s political subdivisions or ,tribal entities t-- 7,a7 has an unemploym5t rate t is equal to ! l[] ( #aj or #ajj p]c5t ( ! national unemploym5t rate1 z det]m9$ by ! ,bureau ( ,labor ,/ati/ics 7except 9 ! case ( ,tribal entities :i* may submit _! own employm5t data :]e no su* ,f$]al data is available = su* entities7 bas$ on ! mo/ rec5t data available at ! "t ! ,secret>y solicits applications = grants "u ?is section2 & 7,b7 submits an application 9 accordance ) subsection 7e74 7#b7 ,job gu>antee program ,! t]m job gu>antee program means a program t meets ! requirem5ts ( subsection 7c74 7#c7 ,rural area ,! t]m rural area means an area t is locat$ outside ( an urban area4 7#d7 ,tribal entity ,! t]m ,tribal entity means an ,indian tribe or tribal organization z su* t]ms are def9$ 9 section #d ( ! ,indian ,self-,det]m9ation ,act 7#be ,u4,s4,c4 #ecjd74 7#e7 ,urban area ,! t]m urban area means an urbaniz$ area 7a region ( #ej1jjj or m resid5ts7 & an urbaniz$ clu/] 7& area encompass+ betwe5 #b1ejj & #ej1jjj resid5ts71 accord+ to ! ,c5sus ,bureau's urban-rural classification 9 ! #bjaj c5sus4 7#f7 ,secret>y ,! t]m ,secret>y means ! ,secret>y ( ,labor4 7#g7 ,,wioa def9itions ,! t]ms adult education & lit]acy activities1 c>e] plann+1 individual ) a b>ri] to employm5t1 9-dem& indu/ry sector or occupation1 local bo>d1 outly+ area1 recogniz$ po/second>y cr$5tial1 ,/ate1 ,/ate bo>d1 supportive s]vices1 & workplace le>n+ advisor h ! mean+s giv5 su* t]ms 9 section #c ( ! ,work=ce ,innovation & ,opportunity ,act 7#bi ,u4,s4,c4 #cajb74 7b7 ,e/abli%m5t 7#a7 ,9 g5]al ,! ,secret>y %all e/abli% a program to provide competitive grants to eligible entities to e/abli% programs to ensure t any individual )9 ! area s]v$ by ! entity :o applies = a job ?r\gh ! program w be provid$ ) employm5t z provid$ = 9 ?is section4 7#b7 ,t]m9ation ,f$]al fund+ = a job gu>antee program e/abli%$ "u a grant "u ?is section %all t]m9ate on ! e>li] (-- 7,a7 ! end ( ! #c-ye> p]iod beg9n+ on ! date ( ! grant2 or 7,b7 ! date ( any revocation ( ! grantee z an eligible entity4 7#c7 ,grant r5ewal ,an eligible entity t receives a grant "u ?is section may reapply "u ?is section = an additional grant aft] ! fir/ #c-ye> grant p]iod4 7c7 ,job gu>antee programs ,a job gu>antee program meets ! requirem5ts ( ?is subsection if ! jobs provid$ "u su* program-- 7#a7 are available to any individual :o-- 7,a7 is #ah ye>s ( age or old]2 & 7,b7 resides 9 ! eligible entity z ( ! date t ! grant is aw>d$ "u ?is subsection to su* eligible entity1 except t p>ticipants 9 ! program may be discipl9$1 releas$1 or susp5d$ f fur!r p>ticipation 9 jobs "u ! program if !y are f\nd to be neglig5t1 or g5]ally disruptive to ! workplace involv$ "u proc$ures e/abli%$ by ! ,secret>y t provide = an opportunity = a review ( su* det]m9ations2 7#b7 are1 ) respect to individual p>ticipants1 includ$ z "p ( an e/abli%$ b>ga9+ unit & cov]$ by any applicable collective b>ga9+ agreem5t 9 effect if simil>ly situat$ employees are "p ( su* unit & repres5t$ by an exclusive b>ga9+ repres5tative2 7#c7 are available = ! duration ( ! program2 7#d7 provide a wage ( n less ?an ! great] (-- 7,a7 #ae p] h\r1 or ! h\rly wage o!rwise requir$ to be paid to employees 9 area to be s]v$ "u ! program1 :i*ev] is great]2 7,b7 ! prevail+ wage 9 ! area involv$ = a simil> job z requir$ by *apt] #fg ( title #da1 ,unit$ ,/ates ,code1 & o!r relat$ laws2 or 7,c7 ! applicable wage "u an applicable collective b>ga9+ agreem5t z provid$ = "u p>agraph 7#b72 7#e7 provide = cov]age ( ! work] "u a heal? insurance program t is comp>able to t (f]$ to ,f$]al employees "u ! ,f$]al ,employee ,heal? ,b5efits ,program2 & 7#f7 provide at a m9imum-- 7,a7 family & m$ical leave consi/5t ) ! provisions ( ! ,family & ,m$ical ,leave ,act ( #aiic & applicable ,/ate law1 except t su* leave %all be paid leave2 & 7,b7 ! ,em]g5cy ,paid ,sick ,leave ,act "u division ,e ( ! ,families ,fir/ ,coronavirus ,response ,act 7#bi ,u4,s4,c4 #bfja note74 7d7 ,o!r uses ,funds may be us$ to provide work]s 9 a job gu>antee program )-- 7#a7 supportive s]vices1 :i* c include transportation1 *ild c>e1 dep5d5t c>e1 h\s+1 & ne$s-relat$ paym5ts1 t are necess>y to enable an individual to p>ticipate 9 activities au?oriz$ "u ?is ,act2 7#b7 access to a workplace le>n+ advisor to support ! education1 skill developm5t1 job tra9+1 c>e] pann+1 & cr$5tials requir$ to progress t[>d c>e] goals ( su* employees 9 ord] to meet employ] requirem5ts relat$ to job op5+s & c>e] advancem5ts t support economic self-suffici5cy2 7#c7 adult education & lit]acy activities1 includ+ ^? provid$ by public libr>ies2 7#d7 activities t assi/ ju/ice involv$ individuals1 =m]ly inc>c]at$ individuals1 & individuals ) crim9al records 9 re5t]+ ! work=ce2 & 7#e7 f9ancial lit]acy activities includ+ ^? describ$ 9 section #abi7;b77#b77;,d7 ( ! ,work=ce ,innovation & ,opportunity ,act4 7e7 ,applications ,an eligible entity seek+ a grant "u ?is section %all submit an application to ! ,secret>y at su* "t1 9 su* mann]1 & conta9+ su* in=mation z ! ,secret>y may require4 ,su* application %all include-- 7#a7 a description ( ! geographic area & population t ! entity int5ds to s]ve "u ! job gu>antee program e/abli%$ "u ! grant1 includ+ ! area unemploym5t rate1 und]employm5t rate1 unemploym5t rate = individuals ) disabilities1 pov]ty rate1 h\s+ vacancy rate1 crime rate1 h\sehold income1 home-own]%ip rate1 labor =ce p>ticipation rate1 & educational atta9m5t2 7#b7 to ext5t practicable1 a description ( ! jobs t w be (f]$ "u ! job gu>antee program1 includ+-- 7,a7 a description ( supports provid$ to individuals ) disabilities & accommodations requir$ "u ! ,am]icans ) ,disabilities ,act ( #aiij 7#db ,u4,s4,c4 #abaja et seq472 & 7,b7 a description ( supports & proc$ures to ensure job access & opportunities = individuals ) crim9al records1 includ+ in=mation on physical & programmatic accessibility1 9 accordance ) section #ahh ( ! ,work=ce ,innovation & ,opportunity ,act1 if applicable1 & ! ,am]icans ) ,disabilities ,act ( #aiij1 = individuals ) disabilities2 7#c7 ! ne$ 9 ! area = jobs to be p]=m$1 includ+ = jobs designat$ z a high-skill1 high-wage or 9-dem& indu/ry sector or occupation by ! ,secret>y1 ,/ate bo>d1 or local bo>d2 7#d7 a description ( ,/ate1 local1 or philan?ropic fund+1 includ+ ?r\gh coord9ation & 9-k9d or non-f9ancial support1 if any1 t w be provid$ to assi/ 9 c>ry+ out ! job gu>antee program2 7#e7 an assurance t ! eligible entity w e/abli%-- 7,a7 a public int]net website1 9 conjunction ) ! ,secret>y1 to po/ all available jobs "u ! job gu>antee program2 & 7,b7 a process = individuals to apply = su* jobs2 7#f7 a compreh5sive plan to describe h[ ! fund+ "u ! program w lev]age exi/+ or anticipat$ local1 ,/ate1 & ,f$]al fund+2 7#g7 an assurance t necess>y adm9i/rative data sy/ems & in=mation te*nology infra/ructure are available1 or w be available1 to provide = full p>ticipation 9 ! evaluation "u subsection 7k72 7#h7 a description ( h[ ! eligible entity w comply ) ! requirem5ts describ$ 9 subsection 7c77#f72 7#i7 an assurance t ! entity w ent] into an allocation agreem5t ) ! ,secret>y "u subsection 7j77#b77;,a72 & 7#aj7 an assurance t en]gy & infra/ructure jobs provid$ "u ! program w n exac]bate ! impacts ( climate *ange4 7f7 ,selection ,9 aw>d+ su* grant "u ?is section1 ! ,secret>y %all consid] div]sity 9 geographic location1 urban-rural composition1 & political entity1 includ+ ! repres5tation ( ,tribal entities4 7g7 ,am\nt ( grant 7#a7 ,e/abli%m5t ( fund ,!re is e/abli%$ 9 ! ,treasury ( ! ,unit$ ,/ates a sep>ate acc\nt to be kn[n z ! ,job ,gu>antee ,program ,tru/ ,fund 7ref]r$ to 9 ?is section z ! ,fund74 7#b7 ,transf]s to fund ,!re is h]eby appropriat$ to ! ,fund am\nts equival5t to-- 7,a7 taxes receiv$ 9 ! ,treasury "u sub*apt] ,c ( *apt] #cf ( ! ,int]nal ,rev5ue ,code ( #aihf2 & 7,b7 int]e/ e>n$ on inve/m5t ( am\nts 9 ! ,fund "u rules simil> to ! rules ( section #ifjb7;b7 ( su* ,code4 7#c7 ,use ( am\nts ,! ,secret>y %all use am\nts 9 ! ,fund to make paym5ts to grantees "u grants "u ?is section 9 accordance ) p>agraph 7#d74 7#d7 ,paym5ts 7,a7 ,9 g5]al ,! ,secret>y %all det]m9e ! annual am\nt ( a grant "u ?is section bas$ on a =mula to be develop$ by ! ,secret>y4 7,b7 ,paym5ts ,! ,secret>y %all make paym5ts to grantees "u ?is section 9 a mann] det]m9$ appropriate by ! ,secret>y4 ,! ,secret>y %all n make subsequ5t paym5ts to a grantee aft] ! initial paym5t until ! grantee c]tifies to ! ,secret>y t ! grantee has exp5d$1 transf]r$1 or obligat$ n less ?an #hj p]c5t ( ! mo/ rec5t paym5t made "u ?is subsection4 7h7 ,limitations ,an eligible entity may n use am\nts receiv$ "u a grant "u ?is section to-- 7#a7 employ individuals :o w replace1 or lead to ! displacem5t (1 exi/+ employees1 positions1 or individuals :o w\ld o!rwise p]=m simil> employm5t1 or disrupt exi/+ contracts & collective b>ga9+ agreem5ts1 z def9$ 9 section #aha7;b7 ( ! ,work=ce ,innovation & ,opportunity ,act 7,public ,law #aac-abh72 7#b7 p]=m functions o!rwise prohibit$ by ,f$]al1 ,/ate1 or local laws2 & 7#c7 c>ry out o!r prohibit$ activities1 z det]m9$ by ! ,secret>y4 7i7 ,f$]al provision ( jobs 9 program sites 7#a7 ,guidance ,n lat] ?an #cj days aft] ! date on :i* ! ,secret>y aw>ds ! fir/ grant "u ?is section1 ! ,secret>y %all-- 7,a7 provide guidance to ! heads ( appropriate ,f$]al ag5cies to notify su* ag5cies ( job gu>antee programs e/abli%$ "u ! grants aw>d$ "u ?is section2 7,b7 reque/ t su* ag5cies notify ! ,secret>y1 )9 #cj days ( ! date on :i* ! guidance is receiv$ "u p>agraph 7#a71 ( ! numb] & types ( jobs t ea* su* ag5cy w\ld make available ?r\gh ea* ( ! programs2 & 7,c7 ensure t ea* su* ag5cy makes be/ ef=ts to provide jobs ?r\gh ! programs e/abli%$ "u su* grants4 7#b7 ,application ( provisions ,! requirem5ts ( subsection 7c7 relat+ to wages & b5efits provid$ to p>ticipants 9 jobs provid$ "u job gu>antee programs1 & ! limitations 9 subsection 7h71 %all apply to ,f$]al ag5cies & jobs provid$ "u ?is subsection1 except t a ,f$]al ag5cy %all employ ea* individual "u ?is subsection = up to #c ye>s4 7#c7 ,li/+ ( jobs on website ,! ,secret>y %all e/abli% proc$ures to ensure t jobs id5tifi$ "u p>agraph 7#a77;,b7 are li/$ on ! appropriate public int]net website z provid$ = "u subsection 7e77#e77;,a74 7#d7 ,reimbursem5t ,at ! end ( ea* fiscal ye>1 ! ,secret>y %all transf] f ! ,fund to ea* ,f$]al ag5cy t employs individuals "u a job gu>antee program "u ?is section1 an am\nt necess>y to reimburse su* ag5cy = ! full co/ ( employ+ ea* su* individual dur+ su* fiscal ye>4 7j7 ,tra9+ 7#a7 ,9 g5]al ,! ,secret>y %all develop proc$ures to support up to #h weeks ( paid tra9+ 7?r\gh privately or publicly fund$ tra9+ programs1 su* z ^? provid$ by ! public work=ce sy/em7 to p>ticipants 9 ord] to p]=m duties requir$ by job gu>antee programs "u ?is section1 includ+ a new p]iod ( tra9+1 n to exce$ #h weeks1 prior to comm5c+ any new job "u ! program4 7#b7 ,specific populations ,) respect to c]ta9 populations ) b>ri]s to employm5t 7z def9$ 9 section #c7bd7 ( ! ,work=ce ,innovation & ,opportunity ,act 7,public ,law #aac-abh771 ! #h-week tra9+ p]iod may include specific job-relat$ tra9+ & c\nsel+ & o!r g5]al skills tra9+ to prep>e su* individuals to re5t] ! work=ce4 7k7 ,priorities & audits 7#a7 ,priorities ,prior to aw>d+ ! initial grants "u ?is section1 ! ,secret>y %all issue a li/ ( national job priorities relat+ to jobs t may be c>ri$ out "u job gu>antee programs1 t %all include *ild c>e1 c>e = s5iors & individuals ) disabilities1 clean en]gy jobs1 community inve/m5t projects1 & su/a9able infra/ructure activities4 ,! ,secret>y %all take ,/ate bo>d & local bo>d sugge/ions into consid]ation :5 issu+ su* li/4 7#b7 ,audits 7,a7 ,9 g5]al ,! ,secret>y1 act+ ?r\gh ! ,inspector ,g5]al ( ! ,dep>tm5t ( ,labor1 %all c>ry out annual audits ( ! use ( grant funds provid$ to eligible entities "u ?is section4 7,b7 ,allocation agreem5ts & misuse ( funds 7i7 ,allocation agreem5ts ,an eligible entity %all ent] into an allocation agreem5t ) ! ,secret>y t %all provide t ! ,secret>y %all rec\p any am\nts paid to ! entity "u a grant "u ?is section if ! results ( an audit "u subp>agraph 7,a7 include a f9d+ t !re 0 an int5tional or reckless misuse ( su* funds by su* entity4 7ii7 ,loss ( eligibility ,an eligible entity t is det]m9$ to h falsifi$ or o!rwise mis/at$ data 9 any report submitt$ to ! ,secret>y ) ! int5t to deceive or mislead ! ,secret>y %all be ineligible to receive additional funds "u ?is section4 7l7 ,reports ,n lat] ?an #ij days aft] ! end ( ea* cal5d> ye> = :i* an eligible entity obligates or exp5ds any am\nts made available "u a grant "u ?is section1 ! eligible entity %all submit to ! ,secret>y a report t-- 7#a7 specifies ! am\nt ( grant funds obligat$ or exp5d$ = ! prec$+ fiscal ye>2 7#b7 specifies any purposes = :i* ! funds 7 obligat$ or exp5d$2 & 7#c7 includes any o!r in=mation t ! ,secret>y may require to m effectively adm9i/] ! grant program "u ?is section1 includ+ ! indicators ( p]=mance "u section #aaf7;b77#b77;,a77i7 ( ! ,work=ce ,innovation & ,opportunity ,act 7#bi ,u4,s4,c4 #cada7;b77#b77;,a77i771 ) ! p]=mance data disaggregat$ by race1 e?nicity1 sex1 age1 & memb]%ip 9 a population specifi$ 9 section #c7bd7 ( su* ,act 7#bi ,u4,s4,c4 #cajb7bd774 7m7 ,evaluation ,! ,*ief ,evaluation ,(fic] at ! ,dep>tm5t ( ,labor %all provide = ! conduct ( an evaluation ( ! program1 us+ a rigor\s design & evaluation me?ods to assess ! implem5tation ( ! programs & _! impact on-- 7#a7 ov]all employm5t1 public-sector employm5t1 & private-sector employm5t2 7#b7 private sector employm5t1 wages1 & b5efits2 7#c7 pov]ty rate2 7#d7 public assi/ance sp5d+ & o!r ,f$]al sp5d+ 9 ! area s]v$ by ! program2 7#e7 *ild heal? & educational outcomes2 7#f7 heal? & well-be+ ( ^? ) m5tal1 emotional1 & behavioral heal? ne$s2 7#g7 inc>c]ation rates2 7#h7 ! environm5t1 includ+ air quality & wat] quality2 7#i7 ! indicators ( p]=mance z describ$ 9 subsection 7l77#c72 & 7#aj7 o!r economic developm5t & individual outcome indicators1 z det]m9$ by ! ,secret>y4 7n7 ,expansion ( "w opportunity cr$it ,to include p>ticipants 9 job gu>antee programs 7#a7 ,9 g5]al ,subsection 7d7 ( section #ea ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$-- 7,a7 9 p>agraph 7#a7-- 7i7 9 subp>agraph 7,i71 by /rik+ or at ! end1 7ii7 9 subp>agraph 7,j71 by /rik+ ! p]iod at ! end & ins]t+ 1 or1 & 7iii7 by add+ at ! end ! foll[+ new subp>agraph3 7,k7 a qualifi$ p>ticipant 9 a job gu>antee program4 1 & 7,b7 by add+ at ! end ! foll[+ new p>agraph3 7#af7 ,qualifi$ p>ticipant 9 a job gu>antee program ,! t]m qualifi$ p>ticipant 9 a job gu>antee program means any individual :o is c]tifi$ by ! designat$ local ag5cy z hav+ p>ticipat$ 9 a job gu>antee program "u section #b ( ! ,f$]al ,jobs ,gu>antee ,program ,act ( #bjbj = n less ?an #c mon?s dur+ ! #f-mon? p]iod end+ on ! hir+ date4 4 7#b7 ,effective date ,! am5dm5ts made by ?is subsection %all apply to individuals :o beg9 "w = ! employ] aft] ,decemb] #ca1 #bjbj4 7o7 ,appropriations ,f funds 9 ! ,treasury n o!rwise appropriat$1 !re are appropriat$ to ! ,secret>y su* sums z may be necess>y to c>ry out ?is section4 #c4 ,transaction tax 7a7 ,9 g5]al ,*apt] #cf ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by ins]t+ aft] sub*apt] ,b ! foll[+ new sub*apt]3 ,c ,tax on ,trad+ ,transactions ,sec4 #ddge4 ,tax on trad+ transactions4 ,sec4 #ddgf4 ,d]ivative def9$4 #ddge4 ,tax on trad+ transactions 7a7 ,imposition ( tax ,!re is h]eby impos$ a tax on ea* cov]$ transaction ) respect to any security4 7b7 ,rate ( tax ,! tax impos$ "u subsection 7a7 ) respect to any cov]$ transaction %all be #j4a p]c5t ( ! specifi$ base am\nt ) respect to su* cov]$ transaction4 7c7 ,specifi$ base am\nt ,= purposes ( ?is section1 ! t]m specifi$ base am\nt means-- 7#a7 except z provid$ 9 p>agraph 7#b71 ! fair m>ket value ( a security 7det]m9$ z ( ! "t ( ! cov]$ transaction71 & 7#b7 9 ! case ( any paym5t ) respect to a d]ivative1 ! am\nt ( su* paym5t4 7d7 ,cov]$ transaction ,= purposes ( ?is section-- 7#a7 ,9 g5]al ,! t]m cov]$ transaction means-- 7,a7 except z provid$ 9 subp>agraph 7,b71 any pur*ase if-- 7i7 su* pur*ase occurs on1 or is subject to ! rules (1 a qualifi$ bo>d or ex*ange locat$ 9 ! ,unit$ ,/ates1 or 7ii7 ! pur*as] or sell] is a ,unit$ ,/ates p]son1 & 7,b7 any transaction ) respect to a d]ivative if-- 7i7 su* d]ivative is trad$ on1 or is subject to ! rules (1 a qualifi$ bo>d or ex*ange locat$ 9 ! ,unit$ ,/ates1 or 7ii7 any p>ty ) rights "u su* d]ivative is a ,unit$ ,/ates p]son4 7#b7 ,exception = initial issues ,no tax %all be impos$ "u subsection 7a7 on any cov]$ transaction ) respect to ! initial issuance ( any security describ$ 9 subp>agraph 7,a71 7,b71 or 7,c7 ( subsection 7e77#a74 7e7 ,def9itions & special rules ,= purposes ( ?is section-- 7#a7 ,security ,= purposes ( ?is section1 ! t]m security means-- 7,a7 any %>e ( /ock 9 a corporation1 7,b7 any p>tn]%ip or b5eficial own]%ip int]e/ 9 a p>tn]%ip or tru/1 7,c7 except z provid$ 9 p>agraph 7#b71 any note1 bond1 deb5ture1 or o!r evid5ce ( indebt$ness1 & 7,d7 any d]ivative 7z def9$ 9 section #ddgf74 7#b7 ,exception = c]ta9 trad$ %ort-t]m indebt$ness ,a note1 bond1 deb5ture1 or o!r evid5ce ( indebt$ness :i*-- 7,a7 is trad$ on1 or is subject to ! rules (1 a qualifi$ bo>d or ex*ange locat$ 9 ! ,unit$ ,/ates1 & 7,b7 has a fix$ maturity ( n m ?an #ajj days1 %all n be treat$ z describ$ 9 p>agraph 7#a77;,c74 7#c7 ,qualifi$ bo>d or ex*ange ,! t]m qualifi$ bo>d or ex*ange has ! mean+ giv5 su* t]m by section #abef7;g77#g74 7f7 ,by :om paid 7#a7 ,9 g5]al ,! tax impos$ by ?is section %all be paid by-- 7,a7 9 ! case ( a transaction :i* occurs on1 or is subject to ! rules (1 a qualifi$ bo>d or ex*ange locat$ 9 ! ,unit$ ,/ates1 su* qualifi$ bo>d or ex*ange1 & 7,b7 9 ! case ( a pur*ase n describ$ 9 subp>agraph 7,a7 :i* is execut$ by a brok] 7z def9$ 9 section #fjde7;c77#a77 :i* is a ,unit$ ,/ates p]son1 su* brok]4 7#b7 ,special rules = direct1 etc41 transactions ,9 ! case ( any transaction to :i* p>agraph 7#a7 does n apply1 ! tax impos$ by ?is section %all be paid by-- 7,a7 9 ! case ( a transaction describ$ 9 subsection 7d77#a77;,a7-- 7i7 ! pur*as] if ! pur*as] is a ,unit$ ,/ates p]son1 & 7ii7 ! sell] if ! pur*as] is n a ,unit$ ,/ates p]son1 & 7,b7 9 ! case ( a transaction describ$ 9 subsection 7d77#a77;,b7-- 7i7 ! payor if ! payor is a ,unit$ ,/ates p]son1 & 7ii7 ! payee if ! payor is n a ,unit$ ,/ates p]son4 7g7 ,treatm5t ( ex*anges & paym5ts ) respect to d]ivatives ,= purposes ( ?is section-- 7#a7 ,treatm5t ( ex*anges 7,a7 ,9 g5]al ,an ex*ange %all be treat$ z ! sale ( ! prop]ty transf]r$ & a pur*ase ( ! prop]ty receiv$ by ea* p>ty to ! ex*ange4 7,b7 ,c]ta9 deem$ ex*anges ,9 ! case ( a di/ribution treat$ z an ex*ange = /ock "u section #cjb or #cca1 ! corporation mak+ su* di/ribution %all be treat$ z hav+ pur*as$ su* /ock = purposes ( ?is section4 7#b7 ,paym5ts ) respect to d]ivatives treat$ z sep>ate transactions ,except z o!rwise provid$ by ! ,secret>y1 any paym5t ) respect to any d]ivative %all be treat$ z a sep>ate transaction = purposes ( ?is section4 7h7 ,application to transactions by controll$ =eign corporations 7#a7 ,9 g5]al ,= purposes ( ?is section1 a controll$ =eign corporation %all be treat$ z a ,unit$ ,/ates p]son4 7#b7 ,special rules = paym5t ( tax on direct1 etc41 transactions ,9 ! case ( any transaction :i* is a cov]$ transaction solely by reason ( p>agraph 7#a7 & :i* is n describ$ 9 subsection 7f77#a7-- 7,a7 ,paym5t by ,unit$ ,/ates %>ehold]s ,any tax :i* w\ld 7b = ?is p>agraph7 be payable "u subsection 7f77#b7 by ! controll$ =eign corporation %all1 9 lieu !re(1 be paid by ! ,unit$ ,/ates %>ehold]s ( su* controll$ =eign corporation z provid$ 9 subp>agraph 7,b74 7,b7 ,pro rata %>es ,ea* su* ,unit$ ,/ates %>ehold] %all pay ! same proportion ( su* tax z-- 7i7 ! /ock :i* su* ,unit$ ,/ates %>ehold] owns 7)9 ! mean+ ( section #ieh7;a77 9 su* controll$ =eign corporation1 be>s to 7ii7 ! /ock s own$ by all ,unit$ ,/ates %>ehold]s 9 su* controll$ =eign corporation4 7,c7 ,def9itions ,= purposes ( ?is subsection1 ! t]ms ,unit$ ,/ates %>ehold] & controll$ =eign corporation h ! mean+s giv5 su* t]ms 9 sections #iea7;b7 & #ieg7;a71 respectively4 7i7 ,adm9i/ration ,! ,secret>y %all c>ry out ?is section 9 consultation ) ! ,securities & ,ex*ange ,commission & ! ,commodity ,futures ,trad+ ,commission4 7j7 ,guidance2 regulations ,! ,secret>y %all-- 7#a7 provide guidance reg>d+ su* in=mation report+ conc]n+ cov]$ transactions z ! ,secret>y deems appropriate1 & 7#b7 prescribe su* regulations z are necess>y or appropriate to prev5t avoidance ( ! purposes ( ?is section1 includ+ ! use ( non-,unit$ ,/ates p]sons 9 su* transactions4 #ddgf4 ,d]ivative def9$ 7a7 ,9 g5]al ,= purposes ( ?is sub*apt]1 except z o!rwise provid$ 9 ?is section1 ! t]m d]ivative means any contract 7includ+ any option1 =w>d contract1 futures contract1 %ort position1 swap1 or simil> contract7 ! value ( :i*1 or any paym5t or o!r transf] ) respect to :i*1 is 7directly or indirectly7 det]m9$ by ref]5ce to "o or m ( ! foll[+3 7#a7 ,any %>e ( /ock 9 a corporation4 7#b7 ,any p>tn]%ip or b5eficial own]%ip int]e/ 9 a p>tn]%ip or tru/4 7#c7 ,any evid5ce ( indebt$ness4 7#d7 ,except z provid$ 9 subsection 7b77#a71 any real prop]ty4 7#e7 ,any commodity :i* is actively trad$ 7)9 ! mean+ ( section #ajib7;d77#a774 7#f7 ,any curr5cy4 7#g7 ,any rate1 price1 am\nt1 index1 =mula1 or algori?m4 7#h7 ,any o!r item z ! ,secret>y may prescribe4 ,except z provid$ 9 regulations prescrib$ by ! ,secret>y to prev5t ! avoidance ( ! purposes ( ?is sub*apt]1 su* t]m %all n include any item describ$ 9 p>agraphs 7#a7 ?r\gh 7#h74 7b7 ,exceptions 7#a7 ,c]ta9 real prop]ty 7,a7 ,9 g5]al ,= purposes ( ?is sub*apt]1 ! t]m d]ivative %all n include any contract ) respect to int]e/s 9 real prop]ty 7z def9$ 9 section #hef7;c77#e77;,c77 if su* contract requires physical deliv]y ( su* real prop]ty4 7,b7 ,options to settle 9 ca% 7i7 ,9 g5]al ,= purposes ( subp>agraph 7,a71 a contract :i* provides = an option ( ca% settlem5t %all n be treat$ z requir+ physical deliv]y ( real prop]ty unless ! option is-- 7,i7 n ex]cisable unconditionally1 & 7,,ii7 ex]cisable only 9 unusual & exceptional circum/ances4 7ii7 ,option ( ca% settlem5t ,= purposes ( clause 7i71 a contract provides an option ( ca% settlem5t if ! contract settles 9 7or c\ld be settl$ 97 ca% or prop]ty o!r ?an ! und]ly+ real prop]ty4 7#b7 ,securities l5d+1 sale-repur*ase1 & simil> f9anc+ transactions ,to ! ext5t provid$ by ! ,secret>y1 = purposes ( ?is sub*apt]1 ! t]m d]ivative %all n include ! "r to ! return ( ! same or sub/antially id5tical securities transf]r$ 9 a securities l5d+ transaction1 sale-repur*ase transaction1 or simil> f9anc+ transaction4 7#c7 ,options receiv$ 9 connection ) ! p]=mance ( s]vices ,= purposes ( ?is sub*apt]1 ! t]m d]ivative %all n include any option describ$ 9 section #hc7;e77#c7 receiv$ 9 connection ) ! p]=mance ( s]vices4 7#d7 ,insurance contracts1 annuities1 & end[m5ts ,= purposes ( ?is sub*apt]1 ! t]m d]ivative %all n include any insurance1 annuity1 or end[m5t contract issu$ by an insurance company to :i* sub*apt] ,l applies 7or issu$ by any =eign corporation to :i* su* sub*apt] w\ld apply if su* =eign corporation 7 a dome/ic corporation74 7#e7 ,d]ivatives ) respect to /ock ( memb]s ( same worldwide affiliat$ gr\p ,= purposes ( ?is sub*apt]1 ! t]m d]ivative %all n include any d]ivative 7det]m9$ )\t reg>d to ?is p>agraph7 ) respect to /ock issu$ by any memb] ( ! same worldwide affiliat$ gr\p 7z def9$ 9 section #hfd7;f77 9 :i* ! taxpay] is a memb]4 7#f7 ,commodities us$ 9 normal c\rse ( trade or bus9ess ,= purposes ( ?is sub*apt]1 ! t]m d]ivative %all n include any contract ) respect to any commodity if-- 7,a7 su* contract requires physical deliv]y ) ! option ( ca% settlem5t only 9 unusual & exceptional circum/ances1 & 7,b7 su* commodity is us$ 7& is us$ 9 quantities ) respect to :i* su* d]ivative relates7 9 ! normal c\rse ( ! taxpay]'s trade or bus9ess 7or1 9 ! case ( an individual1 = p]sonal consumption74 7c7 ,contracts ) emb$d$ d]ivative compon5ts 7#a7 ,9 g5]al ,if a contract has d]ivative & nond]ivative compon5ts1 !n ea* d]ivative compon5t %all be treat$ z a d]ivative = purposes ( ?is sub*apt]4 ,if ! d]ivative compon5t _c be sep>ately valu$1 !n ! entire contract %all be treat$ z a d]ivative = purposes ( ?is sub*apt]4 7#b7 ,exception = c]ta9 emb$d$ d]ivative compon5ts ( debt in/rum5ts ,a debt in/rum5t %all n be treat$ z hav+ a d]ivative compon5t m]ely because-- 7,a7 su* debt in/rum5t is d5om9at$ 9 a nonfunctional curr5cy 7z def9$ 9 section #ihh7;c77#a77;,c77ii771 or 7,b7 paym5ts ) respect to su* debt in/rum5t are det]m9$ by ref]5ce to ! value ( a nonfunctional curr5cy 7z s def9$74 7d7 ,treatm5t ( ,am]ican ,depository ,receipts & simil> in/rum5ts ,except z o!rwise provid$ by ! ,secret>y1 = purposes ( ?is sub*apt]1 ,am]ican depository receipts 7& simil> in/rum5ts7 ) respect to %>es ( /ock 9 =eign corporations %all be treat$ z %>es ( /ock 9 su* =eign corporations4 4 7b7 ,in=mation report+ ) respect to controll$ =eign corporations ,section #fjch7;a77#a77;,b7 ( su* ,code is am5d$ by ins]t+ & transactions :i* are cov]$ transactions = purposes ( section #ddge by reason ( ! application ( section #ddge7;h77#a7 to su* corporation be=e ! semicolon at ! end4 7c7 ,con=m+ am5dm5t ,! table ( sub*apt]s = *apt] #cf ( su* ,code is am5d$ by ins]t+ aft] ! item relat+ to sub*apt] ,b ! foll[+ new item3 ,sub*apt] ,c4 ,tax on trad+ transactions 4 7d7 ,effective date ,! am5dm5ts made by ?is section %all apply to transactions aft] ,decemb] #ca1 #bjbj4