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This page contains a single entry by Associate Editor published on July 7, 2010 9:22 AM.

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Amendment to Emergency Supplementary Appropriations Bill Contains Provisions that Address GRATS and Biofuel

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An amendment to an emergency supplemental appropriations bill contains provisions that address terms for grantor-retained annuity trusts and biofuel.  The following is the text of the amendment to the emergency supplemental appropriations bill:


"AMENDMENT 1 TO THE SENATE AMENDMENT TO

H.R. 4899

 

                                              OFFERED BY M__. ___________

 

The House concurs in the Senate Amendment to H.R. 4899 with the following amendment:

 

In the matter proposed to be inserted by the Senate amendment to the text of the bill, insert before the short title at the end the following:

 

                                             TITLE V -- OTHER PROVISIONS

 

                              Subtitle A -- Settlements and Other

Program Provisions

 

SEC. 5001. APPROPRIATION OF FUNDS FOR FINAL SETTLEMENT OF CLAIMS FROM IN RE BLACK FARMERS DISCRIMINATION LITIGATION.

 

(a) DEFINITIONS. -- In this section:

 

(1) SETTLEMENT AGREEMENT. -- The term "Settlement Agreement" means the settlement agreement dated February 18, 2010 (including any modifications agreed to by the parties and approved by the court under that agreement) between certain plaintiffs, by and through their counsel, and the Secretary of Agriculture to resolve, fully and forever, the claims raised or that could have been raised in the cases consolidated in In re Black Farmers Discrimination Litigation, No. 08-511 (D.D.C.), including Pigford claims asserted under section 14012 of the Food, Conservation, and Energy Act of 2008 (Public Law 110-246; 122 Stat. 2209).

 

(2) PIGFORD CLAIM. -- The term "Pigford claim" has the meaning given that term in section 14012(a)(3) of the Food, Conservation, and Energy Act of 2008 (Public Law 110-246; 122 Stat. 2210).

 

(b) APPROPRIATION OF FUNDS. -- There is hereby appropriated to the Secretary of Agriculture $ 1,150,000,000, to remain available until expended, to carry out the terms of the Settlement Agreement if the Settlement Agreement is approved by a court order that is or becomes final and nonappealable. The funds appropriated by this subsection are in addition to the $ 100,000,000 of funds of the Commodity Credit Corporation made available by section 14012(i) of the Food, Conservation, and Energy Act of 2008 (Public Law 110-246; 122 Stat. 2212) and shall be available for obligation only after those Commodity Credit Corporation funds are fully obligated. If the Settlement Agreement is not approved as provided in this subsection, the $ 100,000,000 of funds of the Commodity Credit Corporation made available by section 14012(i) of the Food, Conservation, and Energy Act of 2008 shall be the sole funding available for Pigford claims.

 

(c) USE OF FUNDS. -- The use of the funds appropriated by subsection (b) shall be subject to the express terms of the Settlement Agreement.

 

(d) TREATMENT OF REMAINING FUNDS. -- If any of the funds appropriated by subsection (b) are not obligated and expended to carry out the Settlement Agreement, the Secretary of Agriculture shall return the unused funds to the Treasury and may not make the unused funds available for any purpose related to section 14012 of the Food, Conservation, and Energy Act of 2008, for any other settlement agreement executed in In re Black Farmers Discrimination Litigation, No. 08-511 (D.D.C.), or for any other purpose.

 

(e) RULES OF CONSTRUCTION. -- Nothing in this section shall be construed as requiring the United States, any of its officers or agencies, or any other party to enter into the Settlement Agreement or any other settlement agreement. Nothing in this section shall be construed as creating the basis for a Pigford claim.

 

(f) CONFORMING AMENDMENTS. -- Section 14012 of the Food, Conservation, and Energy Act of 2008 (Public Law 110-246; 122 Stat. 2209) is amended --

 

(1) in subsection (c)(1) --

 

(A) by striking "subsection (h)" and inserting "subsection (g)"; and

 

(B) by striking "subsection (i)" and inserting "subsection (h)";

 

(2) by striking subsection (e);

 

(3) in subsection (g), by striking "subsection (f)" and inserting "subsection (e)";

 

(4) in subsection (i) --

 

(A) by striking "(1) IN GENERAL. -- Of the funds" and inserting "Of the funds"; and

 

(B) by striking paragraph (2);

 

(5) by striking subsection (j); and

 

(6) by redesignating subsections (f), (g), (h), (i), and (k) as subsections (e), (f), (g), (h), and (i), respectively.

 

SEC. 5002. SUMMER EMPLOYMENT FOR YOUTH.

 

There is appropriated, out of any funds in the Treasury not otherwise appropriated, for an additional amount for "Department of Labor -- Employment and Training Administration -- Training and Employment Services" for activities under the Workforce Investment Act of 1998 ("WIA"), $ 1,000,000,000 shall be available for obligation on the date of enactment of this Act for grants to States for youth activities, including summer employment for youth: Provided, That no portion of such funds shall be reserved to carry out section 127(b)(1)(A) of the WIA: Provided further, That for purposes of section 127(b)(1)(C)(iv) of the WIA, funds available for youth activities shall be allotted as if the total amount available for youth activities in the fiscal year does not exceed $ 1,000,000,000: Provided further, That with respect to the youth activities provided with such funds, section 101(13)(A) of the WIA shall be applied by substituting "age 24" for "age 21": Provided further, That the work readiness performance indicator described in section 136(b)(2)(A)(ii)(I) of the WIA shall be the only measure of performance used to assess the effectiveness of summer employment for youth provided with such funds: Provided further, That an amount that is not more than 1 percent of such amount may be used for the administration, management, and oversight of the programs, activities, and grants carried out with such funds, including the evaluation of the use of such funds: Provided further, That funds available under the preceding proviso, together with funds described in section 801(a) of division A of the American Recovery and reinvestment Act of 2009 (Public Law 111-5), and funds provided in such Act under the heading "Department of Labor-Departmental Management-Salaries and Expenses", shall remain available for obligation through September 30, 2011.

 

SEC. 5003. THE INDIVIDUAL INDIAN MONEY ACCOUNT LITIGATION SETTLEMENT ACT OF 2010.

 

(a) SHORT TITLE. -- This section may be cited as the "Individual Indian Money Account Litigation Settlement Act of 2010".

 

(b) DEFINITIONS. -- In this section:

 

(1) AMENDED COMPLAINT. -- The term "Amended Complaint" means the Amended Complaint attached to the Settlement.

 

(2) LAND CONSOLIDATION PROGRAM. -- The term "Land Consolidation Program" means a program conducted in accordance with the Settlement and the Indian Land Consolidation Act (25 U.S.C. 2201 et seq.) under which the Secretary may purchase fractional interests in trust or restricted land.

 

(3) LITIGATION. -- The term "Litigation" means the case entitled Elouise Cobell et al. v. Ken Salazar et al., United States District Court, District of Columbia, Civil Action No. 96-1285 (JR).

 

(4) PLAINTIFF. -- The term "Plaintiff" means a member of any class certified in the Litigation.

 

(5) SECRETARY. -- The term "Secretary" means the Secretary of the Interior.

 

(6) SETTLEMENT. -- The term "Settlement" means the Class Action Settlement Agreement dated December 7, 2009, in the Litigation, as modified by the parties to the Litigation.

 

(7) TRUST ADMINISTRATION CLASS. -- The term "Trust Administration Class" means the Trust Administration Class as defined in the Settlement.

 

(c) PURPOSE. -- The purpose of this section is to authorize the Settlement.

 

(d) AUTHORIZATION. -- The Settlement is authorized, ratified, and confirmed.

 

(e) JURISDICTIONAL PROVISIONS. --

 

(1) IN GENERAL. -- Notwithstanding the limitation of jurisdiction of district courts contained in section 1346(a)(2) of title 28, United States Code, the United States District Court for the District of Columbia shall have jurisdiction over the claims asserted in the Amended Complaint for purposes of the Settlement.

 

(2) CERTIFICATION OF TRUST ADMINISTRATION CLASS. --

 

(A) IN GENERAL. -- Notwithstanding the requirements of the Federal Rules of Civil Procedure, the court overseeing the Litigation may certify the Trust Administration Class.

 

(B) TREATMENT. -- On certification under subparagraph (A), the Trust Administration Class shall be treated as a class under Federal Rule of Civil Procedure 23(b)(3) for purposes of the Settlement.

 

(f) TRUST LAND CONSOLIDATION. --

 

(1) TRUST LAND CONSOLIDATION FUND. --

 

(A) ESTABLISHMENT. -- On final approval (as defined in the Settlement) of the Settlement, there shall be established in the Treasury of the United States a fund, to be known as the "Trust Land Consolidation Fund".

 

(B) AVAILABILITY OF AMOUNTS. -- Amounts in the Trust Land Consolidation Fund shall be made available to the Secretary during the 10-year period beginning on the date of final approval of the Settlement --

 

(i) to conduct the Land Consolidation Program; and

 

(ii) for other costs specified in the Settlement.

 

(C) DEPOSITS. --

 

(i) IN GENERAL. -- On final approval (as defined in the Settlement) of the Settlement, the Secretary of the Treasury shall deposit in the Trust Land Consolidation Fund $ 2,000,000,000 of the amounts appropriated by section 1304 of title 31, United States Code.

 

(ii) CONDITIONS MET. -- The conditions described in section 1304 of title 31, United States Code, shall be considered to be met for purposes of clause (i).

 

(D) TRANSFERS. -- In a manner designed to encourage participation in the Land Consolidation Program, the Secretary may transfer, at the discretion of the Secretary, not more than $ 60,000,000 of amounts in the Trust Land Consolidation Fund to the Indian Education Scholarship Holding Fund established under paragraph 2.

 

(2) INDIAN EDUCATION SCHOLARSHIP HOLDING FUND. --

 

(A) ESTABLISHMENT. -- On the final approval (as defined in the Settlement) of the Settlement, there shall be established in the Treasury of the United States a fund, to be known as the "Indian Education Scholarship Holding Fund".

 

(B) AVAILABILITY. -- Notwithstanding any other provision of law governing competition, public notification, or Federal procurement or assistance, amounts in the Indian Education Scholarship Holding Fund shall be made available, without further appropriation, to the Secretary to contribute to an Indian Education Scholarship Fund, as described in the Settlement, to provide scholarships for Native Americans.

 

(3) ACQUISITION OF TRUST OR RESTRICTED LAND. -- The Secretary may acquire, at the discretion of the Secretary and in accordance with the Land Consolidation Program, any fractional interest in trust or restricted land.

 

(4) TREATMENT OF UNLOCATABLE PLAINTIFFS. -- A Plaintiff the whereabouts of whom are unknown and who, after reasonable efforts by the Secretary, cannot be located during the 5 year period beginning on the date of final approval (as defined in the Settlement) of the Settlement shall be considered to have accepted an offer made pursuant to the Land Consolidation Program.

 

(g) TAXATION AND OTHER BENEFITS. --

 

(1) INTERNAL REVENUE CODE. -- For purposes of the Internal Revenue Code of 1986, amounts received by an individual Indian as a lump sum or a periodic payment pursuant to the Settlement --

 

(A) shall not be included in gross income; and

 

(B) shall not be taken into consideration for purposes of applying any provision of the Internal Revenue Code of 1986 that takes into account excludable income in computing adjusted gross income or modified adjusted gross income, including section 86 of that Code (relating to Social Security and tier 1 railroad retirement benefits).

 

(2) OTHER BENEFITS. -- Notwithstanding any other provision of law, for purposes of determining initial eligibility, ongoing eligibility, or level of benefits under any Federal or federally assisted program, amounts received by an individual Indian as a lump sum or a periodic payment pursuant to the Settlement shall not be treated for any household member, during the 1-year period beginning on the date of receipt --

 

(A) as income for the month during which the amounts were received; or

 

(B) as a resource.

 

SEC. 5004. EXTENSION AND FLEXIBILITY FOR CERTAIN ALLOCATED SURFACE TRANSPORTATION PROGRAMS.

 

(a) MODIFICATION OF ALLOCATION RULES. -- Section 411(d) of the Surface Transportation Extension Act of 2010 (Public Law 111-147; 124 Stat. 80) is amended --

 

(1) in paragraph (1) --

 

(A) in the matter preceding subparagraph (A) --

 

(i) by striking "1301, 1302,"; and

 

(ii) by striking "1198, 1204,"; and

 

(B) in subparagraph (A) --

 

(i) in the matter preceding clause (i) by striking "apportioned under sections 104(b) and 144 of title 23, United States Code," and inserting "specified in section 105(a)(2) of title 23, United States Code (except the high priority projects program),"; and

 

(ii) in clause (ii) by striking "apportioned under such sections of such Code" and inserting "specified in such section 105(a)(2) (except the high priority projects program)";

 

(2) in paragraph (2) --

 

(A) in the matter preceding subparagraph (A) --

 

(i) by striking "1301, 1302,"; and

 

(ii) by striking "1198, 1204,"; and

 

(B) in subparagraph (A) --

 

(i) in the matter preceding clause (i) by striking "apportioned under sections 104(b) and 144 of title 23, United States Code," and inserting "specified in section 105(a)(2) of title 23, United States Code (except the high priority projects program),"; and

 

(ii) in clause (ii) by striking "apportioned under such sections of such Code" and inserting "specified in such section 105(a)(2) (except the high priority projects program)"; and

 

(3) by adding at the end the following:

 

"(5) PROJECTS OF NATIONAL AND REGIONAL SIGNIFICANCE AND NATIONAL CORRIDOR INFRASTRUCTURE IMPROVEMENT PROGRAMS. --

 

"(A) REDISTRIBUTION AMONG STATES. -- Notwithstanding sections 1301(m) and 1302(e) of SAFETEA-LU (119 Stat. 1202 and 1205), the Secretary shall apportion funds authorized to be appropriated under subsection (b) for the projects of national and regional significance program and the national corridor infrastructure improvement program among all States such that each State's share of the funds so apportioned is equal to the State's share for fiscal year 2009 of funds apportioned or allocated for the programs specified in section 105(a)(2) of title 23, United States Code.

 

"(B) DISTRIBUTION AMONG PROGRAMS. -- Funds apportioned to a State pursuant to subparagraph (A) shall be --

 

"(i) made available to the State for the programs specified in section 105(a)(2) of title 23, United States Code (except the high priority projects program), and in the same proportion for each such program that --

 

"(I) the amount apportioned to the State for that program for fiscal year 2009; bears to

 

"(II) the amount apportioned to the State for fiscal year 2009 for all such programs; and

 

"(ii) administered in the same manner and with the same period of availability as funding is administered under programs identified in clause (i).".

 

(b) EXPENDITURE AUTHORITY FROM HIGHWAY TRUST FUND. -- Paragraph (1) of section 9503(c) of the Internal Revenue Code of 1986 is amended by striking "Surface Transportation Extension Act of 2010" and inserting "Supplemental Appropriations Act, 2010".

 

(c) EFFECTIVE DATE. -- The amendments made by this section shall take effect upon the date of enactment of the Surface Transportation Extension Act of 2010 (Public Law 111-147; 124 Stat. 78 et seq.) and shall be treated as being included in that Act at the time of the enactment of that Act.

 

(d) SAVINGS CLAUSE. --

 

(1) IN GENERAL. -- For fiscal year 2010 and for the period beginning on October 1, 2010, and ending on December 31, 2010, the amount of funds apportioned to each State under section 411(d) of the Surface Transportation Extension Act of 2010 (Public Law 111-147) that is determined by the amount that the State received or was authorized to receive for fiscal year 2009 to carry out the projects of national and regional significance program and national corridor infrastructure improvement program shall be the greater of --

 

(A) the amount that the State was authorized to receive under section 411(d) of the Surface Transportation Extension Act of 2010 with respect to each such program according to the provisions of that Act, as in effect on the day before the date of enactment of this Act; or

 

(B) the amount that the State is authorized to receive under section 411(d) of the Surface Transportation Extension Act of 2010 with respect to each such program pursuant to the provisions of that Act, as amended by the amendments made by this section.

 

(2) OBLIGATION AUTHORITY. -- For fiscal year 2010, the amount of obligation authority distributed to each State shall be the greater of --

 

(A) the amount that the State was authorized to receive pursuant to section 120(a)(4)(A) (as it pertains to the Appalachian Development Highway System program) of title I of division A of the Consolidated Appropriations Act, 2010 (Public Law 111-117) and sections 120(a)(4)(B) and 120(a)(6) of such title, as of the day before the date of enactment of this Act; or

 

(B) the amount that the State is authorized to receive pursuant to section 120(a)(4)(A) (as it pertains to the Appalachian Development Highway System program) of title I of division A of the Consolidated Appropriations Act, 2010 (Public Law 111-117) and sections 120(a)(4)(B) and 120(a)(6) of such title, as of the date of enactment of this Act.

 

(3) AUTHORIZATION OF APPROPRIATIONS. -- There is authorized to be appropriated out of the Highway Trust Fund (other than the Mass Transit Account) such sums as may be necessary to carry out this subsection.

 

(4) INCREASE IN OBLIGATION LIMITATION. -- The limitation under the heading "Federal-aid Highways (Limitation on Obligations) (Highway Trust Fund)" in Public Law 111-117 is increased by such sums as may be necessary to carry out this subsection.

 

(5) CONTRACT AUTHORITY. -- Funds made available to carry out this subsection shall be available for obligation and administered in the same manner as if such funds were apportioned under chapter 1 of title 23, United States Code.

 

(6) AMOUNTS. -- The dollar amount specified in section 105(d)(1) of title 23, United States Code, the dollar amount specified in section 120(a)(4)(B) of title I of division A of the Consolidated Appropriations Act, 2010 (Public Law 111-117), and the dollar amount specified in section 120(b)(10) of such title shall each be increased as necessary to carry out this subsection.

 

                                           Subtitle B -- Revenue Provisions

 

SEC. 5101. REQUIRED MINIMUM 10-YEAR TERM, ETC., FOR GRANTOR RETAINED ANNUITY TRUSTS.

 

(a) IN GENERAL. -- Subsection (b) of section 2702 of the Internal Revenue Code of 1986 is amended --

 

(1) by redesignating paragraphs (1), (2) and (3) as subparagraphs (A), (B), and (C), respectively, and by moving such subparagraphs (as so redesignated) 2 ems to the right,

 

(2) by striking "For purposes of" and inserting the following:

 

"(1) IN GENERAL. -- For purposes of", and

 

(3) by striking "paragraph (1) or (2)" in paragraph (1)(C) (as so redesignated) and inserting "subparagraph (A) or (B)", and

 

(4) by adding at the end the following new paragraph:

 

"(2) ADDITIONAL REQUIREMENTS WITH RESPECT TO GRANTOR RETAINED ANNUITIES. -- For purposes of subsection (a), in the case of an interest described in paragraph (1)(A) (determined without regard to this paragraph) which is retained by the transferor, such interest shall be treated as described in such paragraph only if --

 

"(A) the right to receive the fixed amounts referred to in such paragraph is for a term of not less than 10 years,

 

"(B) such fixed amounts, when determined on an annual basis, do not decrease relative to any prior year during the first 10 years of the term referred to in subparagraph (A), and

 

"(C) the remainder interest has a value greater than zero determined as of the time of the transfer.".

 

(b) EFFECTIVE DATE. -- The amendments made by this section shall apply to transfers made after the date of the enactment of this Act.

 

SEC. 5102. CRUDE TALL OIL INELIGIBLE FOR CELLULOSIC BIOFUEL PRODUCER CREDIT.

 

(a) IN GENERAL. -- Clause (iii) of section 40(b)(6)(E) of the Internal Revenue Code of 1986 is amended --

 

(1) by striking "or" at the end of subclause (I),

 

(2) by striking the period at the end of subclause (II) and inserting ", or",

 

(3) by adding at the end the following new subclause:

 

"(III) such fuel has an acid number greater than 25.", and

 

(4) by striking "UNPROCESSED" in the heading and inserting "CERTAIN".

 

(b) EFFECTIVE DATE. -- The amendment made by this section shall apply to fuels sold or used on or after January 1, 2010.

 

SEC. 5103. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES.

 

The percentage under paragraph (2) of section 561 of the Hiring Incentives to Restore Employment Act in effect on the date of the enactment of this Act is increased by 5.25 percentage points.

 

                                          Subtitle C -- Budgetary Provisions

 

SEC. 5201. BUDGETARY PROVISIONS.

 

(a) STATUTORY PAYGO. -- The budgetary effects of this Act, for the purpose of complying with the Statutory Pay-As-You-Go-Act of 2010, shall be determined by reference to the latest statement titled "Budgetary Effects of PAYGO Legislation" for this Act, jointly submitted for printing in the Congressional Record by the Chairmen of the House and Senate Budget Committees, provided that such statement has been submitted prior to the vote on passage in the House acting first on this conference report or amendment between the Houses.

 

(b) EXCLUSION FROM PAYGO. --

 

(1) Savings in this Act that would be subject to inclusion in the Statutory Pay-As-You-Go scorecards are providing an offset to increased discretionary spending. As such, they should not be available on the scorecards maintained by the Office of Management and Budget to provide offsets for future legislation.

 

(2) The Director of the Office of Management and Budget shall not include any net savings resulting from the changes in direct spending or revenues contained in this Act on the scorecards required to be maintained by OMB under the Statutory Pay-As-You-Go Act of 2010."

Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies Journal.




 

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