[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 19 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
                                 S. 19

 To amend the Internal Revenue Code of 1986 to provide economic growth 
             incentives in 1993, and for no other purpose.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

             January 21 (legislative day, January 5), 1993

 Mr. Specter (for himself, and Mr. Domenici) introduced the following 
  bill; which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to provide economic growth 
             incentives in 1993, and for no other purpose.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS; AMENDMENT OF 1986 CODE.

    (a) Short Title.--This Act may be cited as the ``High Value 
Economic Growth Act of 1993''.
    (b) Table of Contents.--The table of contents is as follows:

Sec. 1. Short title; table of contents; amendment of 1986 Code.
                  TITLE I--ECONOMIC GROWTH INCENTIVES

Sec. 101. Credit for first-time homebuyers.
Sec. 102. Special depreciation allowance for certain equipment acquired 
                            in 1992.
Sec. 103. Penalty-free withdrawals from pension plans through 1992.
Sec. 104. Passive loss equity for real estate professionals.
Sec. 105. Real property acquired by a qualified organization.
Sec. 106. Special rules for investments in partnerships.
                       TITLE II--REVENUE OFFSETS

                     Subtitle A--General Provisions

Sec. 201. Elimination of the statute of limitations on collection of 
                            guaranteed student loans.
Sec. 202. Increase tax on ozone depleting chemicals.
Sec. 203. Mark to market inventory method for securities dealers.
Sec. 204. Disallowance of interest on certain overpayments of tax.
             Subtitle B--Electromagnetic Spectrum Function

Sec. 211. Short title.
Sec. 212. Findings.
Sec. 213. National spectrum planning.
Sec. 214. Identification of reallocable frequencies.
Sec. 215. Withdrawal of assignment to United States Government 
                            stations.
Sec. 216. Distribution of frequencies by the Commission.
Sec. 217. Authority to reclaim reassigned frequencies.
Sec. 218. Competitive bidding.
Sec. 219. Definitions.
                      Subtitle C--Other Provisions

Sec. 221. Extension of current law regarding lump-sum withdrawal of 
                            retirement.
Sec. 222. Extension of the patent and trademark office user fee 
                            surcharge through 1996.
Sec. 223. One-year extension of customs user fees.
Sec. 224. Disclosures of information for veterans benefits.
Sec. 225. Revision of procedure relating to certain loan defaults.
Sec. 226. Application of medicare part B limits to FEHBP enrollee age 
                            65 or older.
    (c) Amendment of 1986 Code.--Except as otherwise expressly 
provided, whenever in this Act an amendment or repeal is expressed in 
terms of an amendment to, or repeal of, a section or other provision, 
the reference shall be considered to be made to a section or other 
provision of the Internal Revenue Code of 1986.

                  TITLE I--ECONOMIC GROWTH INCENTIVES

SEC. 101. CREDIT FOR FIRST-TIME HOMEBUYERS.

    (a) In General.--Subpart A of part IV of chapter 1 is amended by 
inserting after section 22 the following new section:

``SEC. 23. PURCHASE OF PRINCIPAL RESIDENCE BY FIRST-TIME HOMEBUYER.

    ``(a) Allowance of Credit.--If an individual who is a first-time 
homebuyer purchases a principal residence (within the meaning of 
section 1034), there shall be allowed to such individual as a credit 
against the tax imposed by this subtitle an amount equal to 10 percent 
of the purchase price of the principal residence.
    ``(b) Limitations.--
            ``(1) Maximum credit.--The credit allowed under subsection 
        (a) shall not exceed $5,000.
            ``(2) Limitation to one residence.--The credit under this 
        section shall be allowed with respect to only one residence of 
        the taxpayer.
            ``(3) Married individuals filing jointly.--In the case of a 
        husband and wife who file a joint return under section 6013, 
        the credit under this section is allowable only if both the 
        husband and wife are first-time homebuyers, and the amount 
        specified under paragraph (1) shall apply to the joint return.
            ``(4) Other taxpayers.--In the case of individuals to whom 
        paragraph (3) does not apply who together purchase the same new 
        principal residence for use as their principal residence, the 
        credit under this section is allowable only if each of the 
        individuals is a first-time homebuyer, and the sum of the 
        amount of credit allowed to such individuals shall not exceed 
        the lesser of $5,000 or 10 percent of the total purchase price 
        of the residence. The amount of any credit allowable under this 
        section shall be apportioned among such individuals under 
        regulations to be prescribed by the Secretary.
            ``(5) Application with other credits.--The credit allowed 
        by subsection (a) shall not exceed the amount of the tax 
        imposed by this chapter for the taxable year, reduced by the 
        sum of any other credits allowable under this chapter.
    ``(c) Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Purchase price.--The term `purchase price' means the 
        adjusted basis of the principal residence on the date of the 
        acquisition thereof.
            ``(2) First-time homebuyer.--
                    ``(A) In general.--The term `first-time homebuyer' 
                means any individual if such individual has not had a 
                present ownership interest in any residence (including 
                an interest in a housing cooperative) at any time 
                within the 36-month period ending on the date of 
                acquisition of the residence on which the credit 
                allowed under subsection (a) is to be claimed. An 
                interest in a partnership, S corporation, or trust that 
                owns an interest in a residence is not considered an 
                interest in a residence for purposes of this paragraph 
                except as may be provided in regulations.
                    ``(B) Certain individuals.--Notwithstanding 
                subparagraph (A), an individual is not a first-time 
                homebuyer on the date of purchase of a residence if on 
                that date the running of any period of time specified 
                in section 1034 is suspended under subsection (h) or 
                (k) of section 1034 with respect to that individual.
            ``(3) Special rules for certain acquisitions.--No credit is 
        allowable under this section if--
                    ``(A) the residence is acquired from a person whose 
                relationship to the person acquiring it would result in 
                the disallowance of losses under section 267 or 707(b), 
                or
                    ``(B) the basis of the residence in the hands of 
                the person acquiring it is determined--
                            ``(i) in whole or in part by reference to 
                        the adjusted basis of such residence in the 
                        hands of the person from whom it is acquired, 
                        or
                            ``(ii) under section 1014(a) (relating to 
                        property acquired from a decedent).
    ``(d) Recapture for Certain Dispositions.--
            ``(1) In general.--Except as provided in paragraphs (2) and 
        (3), if the taxpayer disposes of property with respect to the 
        purchase of which a credit was allowed under subsection (a) at 
        any time within 36 months after the date the taxpayer acquired 
        the property as his principal residence, then the tax imposed 
        under this chapter for the taxable year in which the 
        disposition occurs is increased by an amount equal to the 
        amount allowed as a credit for the purchase of such property.
            ``(2) Acquisition of new residence.--If, in connection with 
        a disposition described in paragraph (1) and within the 
        applicable period prescribed in section 1034, the taxpayer 
        purchases a new principal residence, then the provisions of 
        paragraph (1) shall not apply and the tax imposed by this 
        chapter for the taxable year in which the new principal 
        residence is purchased is increased to the extent the amount of 
        the credit that could be claimed under this section on the 
        purchase of the new residence (determined without regard to 
        subsection (e)) is less than the amount of credit claimed by 
        the taxpayer under this section.
            ``(3) Death of owner; casualty loss; involuntary 
        conversion; etc.--The provisions of paragraph (1) do not apply 
        to--
                    ``(A) a disposition of a residence made on account 
                of the death of any individual having a legal or 
                equitable interest therein occurring during the 36-
                month period to which reference is made under paragraph 
                (1),
                    ``(B) a disposition of the old residence if it is 
                substantially or completely destroyed by a casualty 
                described in section 165(c)(3) or compulsorily or 
                involuntarily converted (within the meaning of section 
                1033(a)), or
                    ``(C) a disposition pursuant to a settlement in a 
                divorce or legal separation proceeding where the 
                residence is sold or the other spouse retains the 
                residence as a principal residence.
    ``(e) Property to Which Section Applies.--
            ``(1) In general.--The provisions of this section apply to 
        a principal residence if--
                    ``(A) the taxpayer acquires the residence on or 
                after February 1, 1993, and before January 1, 1994, or
                    ``(B) the taxpayer enters into, on or after 
                February 1, 1993, and before January 1, 1994, a binding 
                contract to acquire the residence, and acquires and 
                occupies the residence before July 1, 1994.''
    (b) Clerical Amendment.--The table of sections for subpart A of 
part IV of chapter 1 is amended by inserting after section 22 the 
following new item:

                              ``Sec. 23. Purchase of principal 
                                        residence by first-time 
                                        homebuyer.''
    (c) Effective Date.--The amendments made by this section are 
effective on August 1, 1993.

SEC. 102. SPECIAL DEPRECIATION ALLOWANCE FOR CERTAIN EQUIPMENT ACQUIRED 
              IN 1993.

    (a) In General.--Section 168 (relating to accelerated cost recovery 
system) is amended by adding at the end the following new subsection:
    ``(j) Special Allowance for Certain Equipment Acquired in 1993.--
            ``(1) Additional allowance.--Except as provided in 
        paragraph (2), in the case of any qualified equipment--
                    ``(A) the depreciation deduction provided by 
                section 167(a) for the taxable year in which such 
                equipment is placed in service shall include an 
                allowance equal to 15 percent of the adjusted basis of 
                the qualified equipment, and
                    ``(B) the adjusted basis of the qualified equipment 
                shall be reduced by the amount of such deduction 
                (without regard to paragraph (2)) before computing the 
                amount otherwise allowable as a depreciation deduction 
                under this chapter for such taxable year and any 
                subsequent taxable year.
            ``(2) Maximum first-year deduction.--Of the aggregate 
        deduction allowable under paragraph (1)--
                    ``(A) 0 percent shall be allowed for the taxable 
                year in which the property is placed in service, and
                    ``(B) 100 percent shall be allowed for the 
                succeeding taxable year.
            ``(3) Qualified equipment.--For purposes of this 
        subsection--
                    ``(A) In general.--The term `qualified equipment' 
                means property to which this section applies--
                            ``(i) which is section 1245 property 
                        (within the meaning of section 1245(a)(3)),
                            ``(ii) the original use of which commences 
                        with the taxpayer on or after February 1, 1993,
                            ``(iii) which is--
                                    ``(I) acquired by the taxpayer on 
                                or after February 1, 1993, and before 
                                January 1, 1994, but only if no written 
                                binding contract for the acquisition 
                                was in effect before February 1, 1993, 
                                or
                                    ``(II) acquired by the taxpayer 
                                pursuant to a written binding contract 
                                which was entered into on or after 
                                February 1, 1993, and before January 1, 
                                1994, and
                            ``(iv) which is placed in service by the 
                        taxpayer before July 1, 1994.
                    ``(B) Exceptions.--
                            ``(i) Alternative depreciation property.--
                        The term `qualified equipment' shall not 
                        include any property to which the alternative 
                        depreciation system under subsection (g) 
                        applies, determined--
                                    ``(I) without regard to paragraph 
                                (7) of subsection (g) (relating to 
                                election to have system apply), and
                                    ``(II) after application of section 
                                280F(b) (relating to listed property 
                                with limited business use).
                            ``(ii) Election out.--If a taxpayer makes 
                        an election under this clause with respect to 
                        any class of property for any taxable year, 
                        this subsection shall not apply to all property 
                        in such class placed in service during such 
                        taxable year.
                    ``(C) Special rules relating to original use.--
                            ``(i) Self-constructed property.--In the 
                        case of a taxpayer manufacturing, constructing, 
                        or producing property for the taxpayer's own 
                        use, the requirements of clause (iii) of 
                        subparagraph (A) shall be treated as met if the 
                        taxpayer begins manufacturing, constructing, or 
                        producing the property on and after February 1, 
                        1993, and before January 1, 1994.
                            ``(ii) Sale-leasebacks.--For purposes of 
                        subparagraph (A)(ii), if property--
                                    ``(I) is originally placed in 
                                service on or after February 1, 1993, 
                                by a person, and
                                    ``(II) is sold and leased back by 
                                such person within 3 months after the 
                                date such property was originally 
                                placed in service,
                        such property shall be treated as originally 
                        placed in service not earlier than the date on 
                        which such property is used under the leaseback 
                        referred to in subclause (II).
                    ``(D) Coordination with section 280f.--For purposes 
                of section 280F--
                            ``(i) Automobiles.--In the case of a 
                        passenger automobile (as defined in section 
                        280F(d)(5)) which is qualified equipment, the 
                        Secretary shall increase the limitation under 
                        section 280F(a)(1)(A)(i), and decrease each 
                        other limitation under subparagraphs (A) and 
                        (B) of section 280F(a)(1), to appropriately 
                        reflect the amount of the deduction allowable 
                        under paragraph (1).
                            ``(ii) Listed property.--The deduction 
                        allowable under paragraph (1) shall be taken 
                        into account in computing any recapture amount 
                        under section 280F(b)(2).''
    (b) Allowance Against Alternative Minimum Tax.--
            (1) In general.--Section 56(a)(1)(A) (relating to 
        depreciation adjustment for alternative minimum tax) is amended 
        by adding at the end the following new clause:
                            ``(iii) Additional allowance for equipment 
                        acquired in 1993.--The deduction under section 
                        168(j) shall be allowed.''
            (2) Conforming amendment.--Clause (i) of section 
        56(a)(1)(A) is amended by inserting ``or (iii)'' after 
        ``(ii)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service on or after February 1, 1993, in 
taxable years ending on or after such date.

SEC. 103. PENALTY-FREE WITHDRAWALS FROM PENSION PLANS THROUGH 1993.

    (a) In General.--In the case of any qualified withdrawal--
            (1) no additional tax shall be imposed under section 
        72(t)(1) of the Internal Revenue Code of 1986 with respect to 
        such qualified withdrawal, and
            (2) except as provided in subsection (b), any amount 
        includible in gross income by reason of such qualified 
        withdrawal (determined without regard to this section) shall be 
        includible ratably over the 4-taxable year period beginning 
        with the taxable year in which such qualified withdrawal 
        occurs.
    (b) Election To Recontribute to Plan.--
            (1) In general.--The amount required to be included in 
        gross income for any taxable year under subsection (a)(2) shall 
        be reduced by any designated recontribution.
            (2) Designated recontribution.--For purposes of paragraph 
        (1), a designated recontribution is any contribution to any 
        plan described in subsection (c)(1)(B)--
                    (A) which the taxpayer designates (in such manner 
                as the Secretary of the Treasury may prescribe) as in 
                lieu of all (or any portion of) any amount required to 
                be included in gross income under subsection (a)(2) for 
                a taxable year, and
                    (B) which is made not later than the due date 
                (without extensions) for such taxable year.
            (3) No deduction allowed for recontribution, etc.--For 
        purposes of the Internal Revenue Code of 1986, a designated 
        recontribution shall not be treated as a contribution for any 
        taxable year.
    (c) Qualified Withdrawal.--For purposes of this section--
            (1) In general.--The term ``qualified withdrawal'' means 
        any payment or distribution--
                    (A) which is made to an individual during 1992,
                    (B) which is made from--
                            (i) an individual retirement plan (as 
                        defined in section 7701(a)(37) of the Internal 
                        Revenue Code of 1986) established for the 
                        benefit of the individual, or
                            (ii) amounts attributable to employer 
                        contributions made on behalf of the individual 
                        pursuant to elective deferrals described in 
                        section 402(g)(3) (A) or (C) or 
                        501(c)(18)(D)(iii) of such Code, and
                    (C) which is used by the individual for a qualified 
                acquisition not later than the earlier of--
                            (i) the date which is 6 months after the 
                        date of such payment or distribution, or
                            (ii) the date on which the individual files 
                        the individual's income tax return for the 
                        taxable year in which such payment or 
                        distribution occurs.
            (2) Qualified acquisition.--The term ``qualified 
        acquisition'' means--
                    (A) the payment of qualified acquisition costs with 
                respect to a principal residence of a first-time 
                homebuyer who is the taxpayer or the child or 
                grandchild of the taxpayer, or
                    (B) the purchase of a new passenger automobile.
            (3) Dollar limitation.--The aggregate amount which may be 
        treated as qualified withdrawals under paragraph (1) with 
        respect to all plans and amounts of an individual described in 
        paragraph (1)(B) shall not exceed $10,000.
            (4) Definitions and special rules.--For purposes of this 
        subsection--
                    (A) Qualified acquisition costs.--The term 
                ``qualified acquisition costs'' means the costs of 
                acquiring, constructing, or reconstructing a residence. 
                Such term includes any usual or reasonable settlement, 
                financing, or other closing costs associated with such 
                qualified acquisition costs.
                    (B) First-time homebuyer; other definitions.--
                            (i) First-time homebuyer.--The term 
                        ``first-time homebuyer'' means any individual 
                        if such individual (and if married, such 
                        individual's spouse) had no present ownership 
                        interest in a principal residence during the 2-
                        year period ending on the date of acquisition 
                        of the principal residence to which this 
                        paragraph applies.
                            (ii) Principal residence.--The term 
                        ``principal residence'' has the same meaning as 
                        when used in section 1034.
                            (iii) Date of acquisition.--The term ``date 
                        of acquisition'' means the date--
                                    (I) on which a binding contract to 
                                acquire the principal residence to 
                                which this subsection applies is 
                                entered into, or
                                    (II) on which construction or 
                                reconstruction of such a principal 
                                residence is commenced.
                    (C) Special rule where delay in acquisition.--If--
                            (i) any amount is paid or distributed from 
                        an individual retirement plan to an individual 
                        for purposes of being used as provided in 
                        paragraph (1), and
                            (ii) by reason of a delay in the 
                        acquisition of the residence, the requirements 
                        of paragraph (1) cannot be met,
                the amount so paid or distributed may be paid into an 
                individual retirement plan as provided in section 
                408(d)(3)(A)(i) of the Internal Revenue Code of 1986 
                without regard to section 408(d)(3)(B) of such Code, 
                and, if so paid into such other plan, such amount shall 
                not be taken into account in determining whether 
                section 408(d)(3)(A)(i) of such Code applies to any 
                other amount.
                    (D) Distribution rules.--Any qualified withdrawal 
                shall not be treated as failing to meet the 
                requirements of sections 401(k)(2)(B)(i) or 403(b)(11) 
                of such Code.
    (d) Ordering Rules for Income Tax Purposes.--For purposes of the 
Internal Revenue Code of 1986--
            (1) all plans and amounts described in subsection (c)(1)(B) 
        with respect to an individual shall be treated as one plan, and
            (2) qualified withdrawals from such plan shall be treated 
        as made--
                    (A) first from amounts which are includible in 
                gross income of the individual when distributed to such 
                individual, and
                    (B) then from amounts not so includible.

SEC. 104. PASSIVE LOSS EQUITY FOR REAL ESTATE PROFESSIONALS.

    (a) Rental Real Estate Activities of Persons in Real Property 
Business Not Automatically Treated as Passive Activities.--Section 
469(c) (defining passive activity) is amended by adding at the end 
thereof the following new paragraph:
            ``(7) Rules for taxpayers in real property business to end 
        discrimination.--
                    ``(A) In general.--If this paragraph applies to any 
                taxpayer for a taxable year--
                            ``(i) paragraph (2) shall not apply to any 
                        rental real estate activity of such taxpayer 
                        for such taxable year, and
                            ``(ii) this section shall be applied as if 
                        each interest of the taxpayer in rental real 
                        estate were a separate activity.
                Notwithstanding clause (ii), a taxpayer may elect to 
                treat all interests in rental real estate as one 
                activity.
                    ``(B) Taxpayers to whom paragraph applies.--This 
                paragraph shall apply to a taxpayer for a taxable year 
                if more than one-half of the personal services 
                performed in trades or businesses by the taxpayer 
                during such taxable year are performed in real property 
                trades or businesses in which the taxpayer materially 
                participates.
                    ``(C) Special rules for subparagraph (b).--
                            ``(i) Closely held c corporations.--In the 
                        case of a closely held C corporation, the 
                        requirements of subparagraph (B) shall be 
                        treated as met for any taxable year if more 
                        than 50 percent of the gross receipts of such 
                        corporation for such taxable year are derived 
                        from real property trades or businesses in 
                        which the corporation materially participates.
                            ``(ii) Personal services as an employee.--
                        For purposes of subparagraph (B), personal 
                        services performed as an employee (other than 
                        as an owner-employee) shall not be treated as 
                        performed in real property trades or 
                        businesses.''
    (b) Conforming Amendment.--Section 469(c)(2) is amended by striking 
``The'' and inserting ``Except as provided in paragraph (7), the''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after February 1, 1993.

SEC. 105. REAL PROPERTY ACQUIRED BY A QUALIFIED ORGANIZATION.

    (a) Interests in Mortgages.--The last sentence of subparagraph (B) 
of section 514(c)(9) is hereby transferred to subparagraph (A) of 
section 514(c)(9) and added at the end thereof.
    (b) Modifications of Exceptions.--Paragraph (9) of section 514(c) 
is amended by adding at the end thereof the following new subparagraph:
                    ``(G) Special rules for purposes of the 
                exceptions.--For purposes of subparagraph (B), except 
                as otherwise provided by regulations, the following 
                additional rules apply--
                            ``(i) In general.--
                                    ``(I) For purposes of clauses (iii) 
                                and (iv) of subparagraph (B), a lease 
                                to a person described in clause (iii) 
                                or (iv) shall be disregarded if no more 
                                than 10 percent of the leasable floor 
                                space in a building is covered by the 
                                lease and if the lease is on 
                                commercially reasonable terms.
                                    ``(II) Clause (v) of subparagraph 
                                (B) shall not apply to the extent the 
                                financing is commercially reasonable 
                                and is on substantially the same terms 
                                as loans involving unrelated persons; 
                                for this purpose, standards for 
                                determining a commercially reasonable 
                                interest rate shall be provided by the 
                                Secretary.
                            ``(ii) Qualifying sales out of foreclosure 
                        by financial institutions.--In the case of a 
                        qualifying sale out of foreclosure by a 
                        financial institution, clauses (i) and (ii) of 
                        subparagraph (B) shall not apply. For this 
                        purpose, a `qualifying sale out of foreclosure 
                        by a financial institution' exists where--
                                    ``(I) a qualified organization 
                                acquires real property from a person (a 
                                `financial institution') described in 
                                section 581 or 591(a) (including a 
                                person in receivership) and the 
                                financial institution acquired the 
                                property pursuant to a bid at 
                                foreclosure or by operation of an 
                                agreement or of process of law after a 
                                default on indebtedness which the 
                                property secured (`foreclosure'), and 
                                the financial institution treats any 
                                income realized from the sale or 
                                exchange of the property as ordinary 
                                income,
                                    ``(II) the amount of the financing 
                                provided by the financial institution 
                                does not exceed the amount of the 
                                financial institution's outstanding 
                                indebtedness (determined without regard 
                                to accrued but unpaid interest) with 
                                respect to the property at the time of 
                                foreclosure,
                                    ``(III) the financing provided by 
                                the financial institution is 
                                commercially reasonable and is on 
                                substantially the same terms as loans 
                                between unrelated persons for sales of 
                                foreclosed property (for this purpose, 
                                standards for determining a 
                                commercially reasonable interest rate 
                                shall be provided by the Secretary), 
                                and
                                    ``(IV) the amount payable pursuant 
                                to the financing that is determined by 
                                reference to the revenue, income, or 
                                profits derived from the property 
                                (`participation feature') does not 
                                exceed 25 percent of the principal 
                                amount of the financing provided by the 
                                financial institution, and the 
                                participation feature is payable no 
                                later than the earlier of satisfaction 
                                of the financing or disposition of the 
                                property.''
    (c) Effective Date.--The amendments made by this section shall 
apply to debt-financed acquisitions of real estate made on or after 
February 1, 1993.

SEC. 106. SPECIAL RULES FOR INVESTMENTS IN PARTNERSHIPS.

    (a) Modification to Anti-Abuse Rules.--Paragraph (9) of section 
514(c) (as amended by section 131 of this Act) is amended by adding at 
the end thereof the following new subparagraph:
                    ``(H) Partnerships not involving tax avoidance.--
                            ``(i) De minimis rule for certain large 
                        partnerships.--The provisions of subparagraph 
                        (B) shall not apply to an investment in a 
                        partnership having at least 250 partners if--
                                    ``(I) investments in the 
                                partnership are organized into units 
                                that are marketed primarily to 
                                individuals expected to be taxed at the 
                                maximum rate prescribed for individuals 
                                under section 1,
                                    ``(II) at least 50 percent of each 
                                class of interests is owned by such 
                                individuals,
                                    ``(III) the partners that are 
                                qualified organizations owning 
                                interests in a class participate on 
                                substantially the same terms as other 
                                partners owning interests in that 
                                class, and
                                    ``(IV) the principal purpose of 
                                partnership allocations is not tax 
                                avoidance.
                            ``(ii) Exception where taxable persons own 
                        a significant percentage.--In the case of any 
                        partnership, other than a partnership to which 
                        clause (i) applies, in which persons who are 
                        expected (under the regulations to be 
                        prescribed by the Secretary), at the time the 
                        partnership is formed, to pay tax at the 
                        maximum rate prescribed in section 1 or 11 
                        (whichever is applicable) throughout the term 
                        of the partnership own at least a 25-percent 
                        interest, the provisions of subparagraph (B) 
                        shall not apply if the partnership satisfies 
                        the requirements of subparagraph (E).''
    (b) Publicly Traded Partnerships; Unrelated Business Income From 
Partnerships.--Subsection (c) of section 512 is amended by striking 
paragraph (2) (relating to publicly traded partnerships), by 
redesignating paragraph (3) as paragraph (2), and by striking 
``paragraph (1) or (2)'' in paragraph (2) (as so redesignated) and 
inserting ``paragraph (1)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to partnership interests acquired on or after February 1, 1992.

                       TITLE II--REVENUE OFFSETS

                     Subtitle A--General Provisions

SEC. 201. ELIMINATION OF THE STATUTE OF LIMITATIONS ON COLLECTION OF 
              GUARANTEED STUDENT LOANS.

    Section 3(c) of the Higher Education Technical Amendments of 1991 
(Public Law 102-26) is amended by striking out ``that are brought 
before November 15, 1992''.

SEC. 202. INCREASED BASE TAX RATE ON OZONE-DEPLETING CHEMICALS AND 
              EXPANSION OF LIST OF TAXED CHEMICALS.

    (a) In General.--Paragraph (1) of section 4681(b) (relating to 
amount of tax) is amended to read as follows:
                    ``(B) Base tax amount.--The base tax amount for 
                purposes of subparagraph (A) with respect to any sale 
                or use during a calendar year before 1997 with respect 
                to any ozone-depleting chemical is the amount 
                determined under the following table for such calendar 
                year:
                    

                                                               Base tax
                    Calendar year:
                                                                amount:
                          1993.......................             $1.85
                          1994.......................             $2.75
                          1995.......................             $3.65
                          1996.......................          $4.55.''
    (b) Conforming Amendments.--
            (1) Rates retained for chemical used in rigid foam 
        insulation.--The table in subparagraph (B) of section 
        4682(g)(2) (relating to chemicals used in rigid foam 
        insulation) is amended--
                    (A) by striking ``15'' and inserting ``13.5'', and
                    (B) by striking ``10'' and inserting ``9.6''.
            (2) Floor stock taxes.--
                    (A) Subparagraph (C) of section 4682(h)(2) 
                (relating to other tax-increase dates) is amended by 
                striking ``and 1994'' and inserting ``1994, 1995, and 
                1996, and July 1, 1993''.
                    (B) Paragraph (3) of section 4682(h) (relating to 
                due date) is amended--
                            (i) by inserting ``or July 1'' after 
                        ``January 1'', and
                            (ii) by inserting ``or December 31, 
                        respectively,'' after ``June 30''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable chemicals sold or used on or after July 1, 1993.

SEC. 203. MARK TO MARKET INVENTORY METHOD FOR SECURITIES DEALERS.

    (a) General Rule.--Subpart D of part II of subchapter E of chapter 
1 (relating to inventories) is amended by adding at the end thereof the 
following new section:

``SEC. 475. MARK TO MARKET INVENTORY METHOD FOR DEALERS IN SECURITIES.

    ``(a) General Rule.--Notwithstanding any other provision of this 
subpart, the following rules shall apply to securities held by a dealer 
in securities:
            ``(1) Any security which is inventory in the hands of the 
        dealer shall be included in inventory at fair market value.
            ``(2) In the case of any security which is not inventory in 
        the hands of the dealer and which is held at the close of any 
        taxable year--
                    ``(A) the dealer shall recognize gain or loss as if 
                such security were sold for its fair market value on 
                the last business day of such taxable year, and
                    ``(B) any gain or loss shall be taken into account 
                for such taxable year.
        Proper adjustment shall be made in the amount of any gain or 
        loss subsequently realized for gain or loss taken into account 
        under the preceding sentence. The Secretary may provide by 
        regulations for the application of this paragraph at times 
        other than the times provided in this paragraph.
    ``(b) Exceptions.--
            ``(1) In general.--Subsection (a) shall not apply to--
                    ``(A) any security held for investment,
                    ``(B) any security described in subsection 
                (c)(2)(C) which is originated or acquired by the 
                taxpayer in the ordinary course of a trade or business 
                of the taxpayer and which is not held for sale, and
                    ``(C) any hedge with respect to--
                            ``(i) a security to which subsection (a) 
                        does not apply, or
                            ``(ii) a position or a liability which is 
                        not a security in the hands of the taxpayer.
        Subparagraph (C) shall not apply to any security held by a 
        person in its capacity as a dealer in securities.
            ``(2) Identification required.--Any security shall not be 
        treated as described in subparagraph (A), (B), or (C) of 
        paragraph (1), as the case may be, unless such security is 
        clearly identified in the dealer's records as being described 
        in such subparagraph before the close of the day on which it 
        was acquired, originated, or entered into (or such other time 
        as the Secretary may by regulations prescribe).
            ``(3) Securities subsequently not exempt.--If a security 
        ceases to be described in paragraph (1) at any time after it 
        was identified as such under paragraph (2), this section shall 
        apply to such security as of the time such cessation occurs.
            ``(4) Special rule for property held for investment.--To 
        the extent provided in regulations, subparagraph (A) of 
        paragraph (1) shall not apply to any security described in 
        subparagraph (D) or (E) of subsection (c)(2) which is held by a 
        dealer in such securities.
    ``(c) Definitions.--For purposes of this section--
            ``(1) Dealer in securities defined.--The term `dealer in 
        securities' means a taxpayer who--
                    ``(A) regularly purchases securities from or sells 
                securities to customers in the ordinary course of a 
                trade or business; or
                    ``(B) regularly offers to enter into, assume, 
                offset, assign or otherwise terminate positions in 
                securities with customers in the ordinary course of a 
                trade or business.
            ``(2) Security defined.--The term `security' means any--
                    ``(A) share of stock in a corporation;
                    ``(B) partnership or beneficial ownership interest 
                in a widely held or publicly traded partnership or 
                trust;
                    ``(C) note, bond, debenture, or other evidence of 
                indebtedness;
                    ``(D) any interest rate, currency, or equity 
                notional principal contract;
                    ``(E) evidence of an interest in, or a derivative 
                financial instrument in, any security described in 
                subparagraph (A), (B), (C), or (D), or any currency, 
                including any option, forward contract, short position, 
                and any similar financial instrument in such a security 
                (but not including any contract to which section 
                1256(a) applies); and
                    ``(F) position which--
                            ``(i) is not a security described in 
                        subparagraph (A), (B), (C), (D), or (E),
                            ``(ii) is a hedge with respect to such a 
                        security, and
                            ``(iii) is clearly identified in the 
                        dealer's records as being described in this 
                        subparagraph before the close of the day on 
                        which it was acquired or entered into (or such 
                        other time as the Secretary may by regulations 
                        prescribe).
            ``(3) Hedge.--The term `hedge' includes any position which 
        reduces the dealer's risk of interest rate or price changes or 
        currency fluctuations.
    ``(d) Special Rules.--For purposes of this section--
            ``(1) Certain rules not to apply.--The rules of sections 
        263(g) and 263A shall not apply to securities to which 
        subsection (a) applies.
            ``(2) Improper identification.--If a taxpayer--
                    ``(A) identifies any security or position under 
                subsection (b)(2) as being described in such subsection 
                and such security or position is not so described, or
                    ``(B) fails under subsection (c)(2)(F)(iii) to 
                identify a security or position which is described in 
                such subsection at the time such identification is 
                required,
        the provisions of subsection (a) shall apply to such security 
        or position, except that any loss under this section prior to 
        the disposition of the security shall be recognized only to the 
        extent of gain previously recognized under this section with 
        respect to such security.
    ``(e) Regulatory Authority.--The Secretary shall prescribe such 
regulations as may be necessary or appropriate to carry out the 
purposes of this section, including rules--
            ``(1) to prevent the use of year-end transfers, related 
        parties, or other arrangements to avoid the provisions of this 
        section, and
            ``(2) to provide for the application of this section to 
        hedges which do not hedge a specific security, position, or 
        liability.''
    (b) Conforming Amendments.--
            (1) Paragraph (1) of section 988(d) is amended--
                    (A) by striking ``section 1256'' and inserting 
                ``section 475 or 1256'', and
                    (B) by striking ``1092 and 1256'' and inserting 
                ``475, 1092, and 1256''.
            (2) The table of sections for subpart D of part II of 
        subchapter E of chapter 1 is amended by adding at the end 
        thereof the following new item:

                              ``Sec. 475. Mark to market inventory 
                                        method for dealers in 
                                        securities.''
    (c) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        apply to all taxable years ending on or after December 31, 
        1994.
            (2) Change in method of accounting.--In the case of any 
        taxpayer required by this section to change its method of 
        accounting for any taxable year--
                    (A) such change shall be treated as initiated by 
                the taxpayer,
                    (B) such change shall be treated as made with the 
                consent of the Secretary, and
                    (C) the net amount of the adjustments required to 
                be taken into account by the taxpayer under section 481 
                of the Internal Revenue Code of 1986 shall be taken 
                into account ratably over the 10-taxable year period 
                beginning with the first taxable year ending on or 
                after December 31, 1993.

SEC. 204. DISALLOWANCE OF INTEREST ON CERTAIN OVERPAYMENTS OF TAX.

    (a) General Rule.--Subsection (e) of section 6611 is amended to 
read as follows:
    ``(e) Disallowance of Interest on Certain Overpayments.--
            ``(1) Refunds within 45 days after return is filed.--If any 
        payment of tax imposed by this title is refunded within 45 days 
        after the last day prescribed for filing the return of such tax 
        (determined without regard to any extension of time for filing 
        the return) or, in the case of a return filed after such last 
        date, is refunded within 45 days after the date the return is 
        filed, no interest shall be allowed under subsection (a) on 
        such overpayment.
            ``(2) Refunds after claim for credit or refund.--If--
                    ``(A) the taxpayer files a claim for a credit or 
                refund for any overpayment of tax imposed by this 
                title, and
                    ``(B) such overpayment is refunded within 45 days 
                after such claim is filed,
no interest shall be allowed on such overpayment from the date the 
claim is filed until the day the refund is made.
            ``(3) IRS initiated adjustments.--Notwithstanding any other 
        provision, if an adjustment, initiated by or on behalf of the 
        Secretary, results in a refund or credit of an overpayment, 
        interest on such overpayment shall be computed by subtracting 
        45 days from the number of days interest would otherwise be 
        allowed with respect to such overpayment.''
    (b) Effective Dates.--
            (1) Paragraph (1) of section 6611(e) of the Internal 
        Revenue Code of 1986 (as amended by subsection (a)) shall apply 
        in the case of returns the due date for which (determined 
        without regard to extensions) is on or after July 1, 1993.
            (2) Paragraph (2) of section 6611(e) of such Code (as so 
        amended) shall apply in the case of claims for credit or refund 
        of any overpayment filed on or after July 1, 1993 regardless of 
        the taxable period to which such refund relates.
            (3) Paragraph (3) of section 6611(e) of such Code (as so 
        amended) shall apply in the case of any refund paid on or after 
        July 1, 1993 regardless of the taxable period to which such 
        refund relates.

             Subtitle B--Electromagnetic Spectrum Function

SEC 211. SHORT TITLE.

    This subtitle may be cited as the ``Emerging Telecommunications 
Technologies Act of 1993''.

SEC. 212. FINDINGS.

    The Congress finds that--
            (1) spectrum is a valuable natural resource;
            (2) it is in the national interest that this resource be 
        used more efficiently;
            (3) the spectrum below 6 gigahertz (GHz) is becoming 
        increasingly congested, and, as a result entities that develop 
        innovative new spectrum-based services are finding it difficult 
        to bring these services to the marketplace;
            (4) scarcity of assignable frequencies can and will--
                    (A) impede the development and commercialization of 
                new spectrum-based products and services;
                    (B) reduce the capacity and efficiency of the 
                United States telecommunications system; and
                    (C) adversely affect the productive capacity and 
                international competitiveness of the United States 
                economy;
            (5) the United States Government presently lacks explicit 
        authority to use excess radiocommunications capacity to satisfy 
        non-United States Government requirements;
            (6) more efficient use of the spectrum can provide the 
        resources for increased economic returns;
            (7) many commercial users derive significant economic 
        benefits from their spectrum licenses, both through the income 
        they earn from their use of the spectrum and the returns they 
        realize upon transfer of their licenses to third parties; but 
        under current procedures, the United States public does not 
        sufficiently share in their benefits;
            (8) many United States Government functions and 
        responsibilities depend heavily on the use of the radio 
        spectrum, involve unique applications, and are performed in the 
        broad national and public interest;
            (9) competitive bidding for spectrum can yield significant 
        benefits for the United States economy by increasing the 
        efficiency of spectrum allocations, assignment, and use; and 
        for United States taxpayers by producing substantial revenues 
        for the United States Treasury; and
            (10) the Secretary, the President, and the Commission 
        should be directed to take appropriate steps to foster the more 
        efficient use of this valuable national resource, including the 
        reallocation of a target amount of 200 megahertz (MHz) of 
        spectrum from United States Government use under section 305 of 
        the Communications Act to non-United States Government use 
        pursuant to other provisions of the Communications Act and the 
        implementation of competitive bidding procedures by the 
        Commission for some new assignments of the spectrum.

SEC. 213. NATIONAL SPECTRUM PLANNING.

    (a) Planning Activities.--The Secretary and the Chairman of the 
Commission shall, at least twice each year, conduct joint spectrum 
planning meetings with respect to the following issues--
            (1) future spectrum needs;
            (2) the spectrum allocation actions necessary to 
        accommodate those needs, including consideration of innovation 
        and marketplace developments that may affect the relative 
        efficiencies of different portions of the spectrum; and
            (3) actions necessary to promote the efficient use of the 
        spectrum, including proven spectrum management techniques to 
        promote increased shared use of the spectrum as a means of 
        increasing non-United States Government access; and innovation 
        in spectrum utilization including means of providing incentives 
        for spectrum users to develop innovative services and 
        technologies.
    (b) Reports.--The Secretary and the Chairman of the Commission 
shall submit a joint annual report to the President on the joint 
spectrum planning meetings conducted under subsection (a) and any 
recommendations for action developed in such meetings.
    (c) Open Process.--The Secretary and the Commission will conduct an 
open process under this section to ensure the full consideration and 
exchange of views among any interested entities, including all private, 
public, commercial, and governmental interests.

SEC. 214. IDENTIFICATION OF REALLOCABLE FREQUENCIES.

    (a) Identification Required.--The Secretary shall prepare and 
submit to the President the reports required by subsection (d) to 
identify bands of frequencies that--
            (1) are allocated on a primary basis for United States 
        Government use and eligible for licensing pursuant to section 
        305(a) of the Communications Act;
            (2) are not required for the present or identifiable future 
        needs of the United States Government;
            (3) can feasibly be made available during the next 15 years 
        after enactment of this title for use under the provisions of 
        the Communications Act for non-United States Government users;
            (4) will not result in costs to the Federal Government that 
        are excessive in relation to the benefits that may be obtained 
        from the potential non-United States Government uses; and
            (5) are likely to have significant value for non-United 
        States Government uses under the Communications Act.
    (b) Amount of Spectrum Recommended.--
            (1) In general.--The Secretary shall recommend as a goal 
        for reallocation, for use by non-United States Government 
        stations, bands of frequencies constituting a target amount of 
        200 MHz, that are located below 6 GHz, and that meet the 
        criteria specified in paragraphs (1) through (5) of subsection 
        (a). If the Secretary identifies (as meeting such criteria) 
        bands of frequencies totalling more than 200 MHz, the Secretary 
        shall identify and recommend for reallocation those bands 
        (totalling not less than 200 MHz) that are likely to have the 
        greatest potential for non-United States Government uses under 
        the Communications Act.
            (2) Mixed uses permitted to be counted.--Bands of 
        frequencies which the Secretary recommends be partially 
        retained for use by United States Government stations, but 
        which are also recommended to be reallocated and made available 
        under the Communications Act for use by non-United States 
        Government stations, may be counted toward the target 200 MHz 
        of spectrum required by paragraph (1) of this subsection, 
        except that--
                    (A) the bands of frequencies counted under this 
                paragraph may not count toward more than one-half of 
                the amount targeted by paragraph (1) of this 
                subsection;
                    (B) a band of frequencies may not be counted under 
                this paragraph unless the assignments of the band to 
                United States Government stations under section 305 of 
                the Communications Act are limited by geographic area, 
                by time, or by other means so as to guarantee that the 
                potential use to be made by which United States 
                Government stations is substantially less (as measured 
                by geographic area, time, or otherwise) than the 
                potential United States Government use to be made; and
                    (C) the operational sharing permitted under this 
                paragraph shall be subject to procedures which the 
                Commission and the Department of Commerce shall 
                establish and implement to ensure against harmful 
                interference.
    (c) Criteria for Identification.--
            (1) Needs of the united states government.--In determining 
        whether a band of frequencies meets the criteria specified in 
        subsection (a)(2), the Secretary shall--
                    (A) consider whether the band of frequencies is 
                used to provide a communications service that is or 
                could be available from a commercial provider;
                    (B) seek to promote--
                            (i) the maximum practicable reliance on 
                        commercially available substitutes;
                            (ii) the sharing of frequencies (as 
                        permitted under subsection (b)(2));
                            (iii) the development and use of new 
                        communications technologies; and
                            (iv) the use of nonradiating communications 
                        systems where practicable;
                    (C) seek to avoid--
                            (i) serious degradation of United States 
                        Government services and operations;
                            (ii) excessive costs to the United States 
                        Government and civilian users of such 
                        Government services; and
                            (iii) identification of any bands for 
                        reallocation that are likely to be subject to 
                        substitution for the reasons specified in 
                        section 405(b)(2)(A) through (C); and
                    (D) exempt power marketing administrations and the 
                Tennessee Valley Authority from any reallocation 
                procedures.
            (2) Feasibility of use.--In determining whether a frequency 
        band meets the criteria specified in subsection (a)(3), the 
        Secretary shall--
                    (A) assume such frequencies will be assigned by the 
                Commission under section 303 of the Communications Act 
                over the course of fifteen years after the enactment of 
                this title;
                    (B) assume reasonable rates of scientific progress 
                and growth of demand for telecommunications services;
                    (C) determine the extent to which the reallocation 
                or reassignment will relieve actual or potential 
                scarcity of frequencies available for non-United States 
                Government use;
                    (D) seek to include frequencies which can be used 
                to stimulate the development of new technologies; and
                    (E) consider the cost to reestablish United States 
                Government services displaced by the reallocation of 
                spectrum during the fifteen year period.
            (3) Costs to the united states government.--In determining 
        whether a frequency band meets the criteria specified in 
        subsection (a)(4), the Secretary shall consider--
                    (A) the costs to the United States Government of 
                reaccommodating its services in order to make spectrum 
                available for non-United States Government use, 
                including the incremental costs directly attributable 
                to the loss of the use of the frequency band; and
                    (B) the benefits that could be obtained from 
                reallocating such spectrum to non-United States 
                Government users, including the value of such spectrum 
                in promoting--
                            (i) the delivery of improved service to the 
                        public;
                            (ii) the introduction of new services; and
                            (iii) the development of new communications 
                        technologies.
            (4) Non-united states government use.--In determining 
        whether a band of frequencies meets the criteria specified in 
        subsection (a)(5), the Secretary shall consider--
                    (A) the extent to which equipment is commercially 
                available that is capable of utilizing the band; and
                    (B) the proximity of frequencies that are already 
                assigned for non-United States Government use.
    (d) Procedure for Identification of Reallocable Bands of 
Frequencies.--
            (1) Submission of reports to the president to identify an 
        initial 50 mhz to be made available immediately for 
        reallocation, and to provide preliminary and final reports on 
        additional frequencies to be reallocated.--
                    (A) Within 3 months after the date of the enactment 
                of this title, the Secretary shall prepare and submit 
                to the President a report which specifically identifies 
                an initial 50 MHz of spectrum that are located below 3 
                GHz, to be made available for reallocation to the 
                Federal Communications Commission upon issuance of this 
                report, and to be distributed by the Commission 
                pursuant to competitive bidding procedures.
                    (B) The Department of Commerce shall make available 
                to the Federal Communications Commission 50 MHz as 
                identified in subparagraph (A) of electromagnetic 
                spectrum for allocation of land-mobile or land-mobile-
                satellite services. Notwithstanding section 553 of the 
                Administrative Procedure Act and title III of the 
                Communications Act, the Federal Communications 
                Commission shall allocate such spectrum and conduct 
                competitive bidding procedures to complete the 
                assignment of such spectrum in a manner which ensures 
                that the proceeds from such bidding are received by the 
                Federal Government no later than September 30, 1993. 
                From such proceeds, Federal agencies displaced by this 
                transfer of the electromagnetic spectrum to the Federal 
                Communications Commission shall be reimbursed for 
                reasonable costs directly attributable to such 
                displacement. The Department of Commerce shall 
                determine the amount of, and arrange for, such 
                reimbursement. Amounts to agencies shall be available 
                subject to appropriation Acts.
                    (C) Within 12 months after the date of the 
                enactment of this title, the Secretary shall prepare 
                and submit to the President a preliminary report to 
                identify reallocable bands of frequencies meeting the 
                criteria established by this section.
                    (D) Within 24 months after the date of enactment of 
                this title, the Secretary shall prepare and submit to 
                the President a final report which identifies the 
                target 200 MHz for reallocation (which shall encompass 
                the initial 50 MHz previously designated under 
                subparagraph (A)).
                    (E) The President shall publish the reports 
                required by this section in the Federal Register.
            (2) Convening of private sector advisory committee.--Not 
        later than 12 months after the enactment of this title, the 
        Secretary shall convene a private sector advisory committee 
        to--
                    (A) review the bands of frequencies identified in 
                the preliminary report required by paragraph (1)(C);
                    (B) advise the Secretary with respect to--
                            (i) the bands of frequencies which should 
                        be included in the final report required by 
                        paragraph (1)(D); and
                            (ii) the effective dates which should be 
                        established under subsection (e) with respect 
                        to such frequencies;
                    (C) receives public comment on the Secretary's 
                preliminary and final reports under this subsection; 
                and
                    (D) prepare and submit the report required by 
                paragraph (4).
        The private sector advisory committee shall meet at least 
        quarterly until each of the actions required by section 405(a) 
        have taken place.
            (3) Composition of committee; chairman.--The private sector 
        adviser committee shall include--
                    (A) the Chairman of the Commission, and the 
                Secretary, or their designated representatives, and two 
                other representatives from two different United States 
                Government agencies that are spectrum users, other than 
                the Department of Commerce, as such agencies may be 
                designated by the Secretary; and
                    (B) Persons who are representative of--
                            (i) manufacturers of spectrum-dependent 
                        telecommunications equipment;
                            (ii) commercial users;
                            (iii) other users of the electromagnetic 
                        spectrum; and
                            (iv) other interested members of the public 
                        who are knowledgeable about the uses of the 
                        electromagnetic spectrum to be chosen by the 
                        Secretary.
        A majority of the members of the committee shall be members 
        described in subparagraph (B), and one of such members shall be 
        designated as chairman by the Secretary.
            (4) Recommendations on spectrum allocation procedures.--The 
        private sector advisory committee shall, not later than 12 
        months after its formation, submit to the Secretary, the 
        Commission, the Committee on Energy and Commerce of the House 
        of Representatives, and the Committee on Commerce, Science and 
        Transportation of the Senate, such recommendations as the 
        committee considers appropriate for the reform of the process 
        of allocating the electromagnetic spectrum between United 
        States Government users and non-United States Government users, 
        and any dissenting views thereon.
    (e) Timetable for Reallocation and Limitation.--The Secretary 
shall, as part of the final report required by subsection (d)(1)(D), 
include a timetable for the effective dates by which the President 
shall, within 15 years after enactment of this title, withdraw or limit 
assignments on frequencies specified in the report. The recommended 
effective dates shall--
            (1) permit the earliest possible reallocation of the 
        frequency bands, taking into account the requirements of 
        section 406(a);
            (2) be based on the useful remaining life of equipment that 
        has been purchased or contracted for to operate on identified 
        frequencies;
            (3) be based on the need to coordinate frequency use with 
        other nations; and
            (4) avoid the imposition of incremental costs on the United 
        States Government directly attributable to the loss of the use 
        of frequencies or the changing to different frequencies that 
        are excessive in relation to the benefits that may be obtained 
        from non-United States Government uses of the reassigned 
        frequencies.

SEC. 215. WITHDRAWAL OF ASSIGNMENT TO UNITED STATES GOVERNMENT 
              STATIONS.

    (a) In General.--The President shall--
            (1) within 3 months after receipt of the Secretary's report 
        under section 404(d)(1)(A), withdraw or limit the assignment to 
        a United States Government station of any frequency on the 
        initial 50 MHz which that report recommends for immediate 
        reallocation;
            (2) with respect to other frequencies recommended for 
        reallocation by the Secretary's report in section 404(d)(1)(D), 
        by the effective dates recommended pursuant to section 404(e) 
        (except as provided in subsection (b)(4) of this section), 
        withdraw or limit the assignment to a United States Government 
        station of any frequency which that report recommends be 
        reallocated or available for mixed use on such effective dates;
            (3) assign or reassign other frequencies to United States 
        Government stations as necessary to adjust to such withdrawal 
        or limitation of assignments; and
            (4) publish in the Federal Register a notice and 
        description of the actions taken under this subsection.
    (b) Exceptions.--
            (1) Authority to substitute.--If the President determines 
        that a circumstance described in section 405(b)(2) exists, the 
        President--
                    (A) may, within 1 month after receipt of the 
                Secretary's report under section 404(d)(1)(A), and 
                within 6 months after receipt of the Secretary's report 
                under section 404(d)(1)(D), substitute an alternative 
                frequency or band of frequencies for the frequency or 
                band that is subject to such determination and withdraw 
                (or limit) the assignment of that alternative frequency 
                or band in the manner required by subsection (a); and
                    (B) shall publish in the Federal Register a 
                statement of the reasons for taking the action 
                described in subparagraph (A).
            (2) Grounds for substitution.--For purposes of paragraph 
        (1), the following circumstances are described in this 
        paragraph:
                    (A) the reassignment would seriously jeopardize the 
                national security interests of the United States;
                    (B) the frequency proposed for reassignment is 
                uniquely suited to meeting important United States 
                Governmental needs;
                    (C) the reassignment would seriously jeopardize 
                public health or safety; or
                    (D) the reassignment will result in incremental 
                costs to the United States Government that are 
                excessive in relation to the benefits that may be 
                obtained from non-United States Government uses of the 
                reassigned frequency.
            (3) Criteria for substituted frequencies.--For purposes of 
        paragraph (1), a frequency may not be substituted for a 
        frequency identified by the final report of the Secretary under 
        section 404(d)(1)(D) unless the substituted frequency also 
        meets each of the criteria specified by section 404(a).
            (4) Delays in implementation.--If the President determines 
        that any action cannot be completed by the effective dates 
        recommended by the Secretary pursuant to section 404(e), or 
        that such an action by such date would result in a frequency 
        being unused as a consequence of the Commission's plan under 
        section 406, the President may--
                    (A) withdraw or limit the assignment to United 
                States Government stations on a later date that is 
                consistent with such plan, by providing notice to that 
                effect in the Federal Register, including the reason 
                that withdrawal at a later date is required; or
                    (B) substitute alternative frequencies pursuant to 
                the provisions of this subsection.
    (c) Costs of Withdrawing Frequencies Assigned to the United States 
Government; Appropriations Authorized.--Any United States Government 
licensee, or non-United States Government entity operating on behalf of 
a United States Government licensee, that is displaced from a frequency 
pursuant to this section may be reimbursed not more than the 
incremental costs it incurs, in such amounts as provided in advance in 
appropriation Acts, that are directly attributable to the loss of the 
use of the frequency pursuant to this section. The estimates of these 
costs shall be prepared by the affected agency, in consultation with 
the Department of Commerce.
    (d) There are authorized to be appropriated to the affected 
licensee agencies such sums as may be necessary to carry out the 
purposes of this section.

SEC. 216. DISTRIBUTION OF FREQUENCIES BY THE COMMISSION.

    (a) Plans Submitted.--
            (1) With respect to the initial 50 MHz to be reallocated 
        from United States Government to non-United States Government 
        use under section 404(d)(1)(A), not later than 6 months after 
        enactment of this title, the Commission shall complete a public 
        notice and comment proceeding regarding the allocation of this 
        spectrum and shall form a plan to assign such spectrum pursuant 
        to competitive bidding procedures, pursuant to section 408, 
        during fiscal years 1994 through 1996.
            (2) With respect to the remaining spectrum to be 
        reallocated from United States Government to non-United States 
        Government use under section 404(e), not later than 2 years 
        after issuance of the report required by section 404(d)(1)(D), 
        the Commission shall complete a public notice and comment 
        proceeding; and the Commission shall, after consultation with 
        the Secretary, prepare and submit to the President a plan for 
        the distribution under the Communications Act of the frequency 
        bands reallocated pursuant to the requirements of this title. 
        Such plan shall--
                    (A) not propose the immediate distribution of all 
                such frequencies, but, taking into account the 
                timetable recommended by the Secretary pursuant to 
                section 404(e), shall propose--
                            (i) gradually to distribute the frequencies 
                        remaining, after making the reservation 
                        required by subparagraph (ii), over the course 
                        of a 10-year period beginning on the date of 
                        submission of such plan; and
                            (ii) to reserve a significant portion of 
                        such frequencies for distribution beginning 
                        after the end of such 10-year period;
                    (B) contain appropriate provisions to ensure--
                            (i) the availability of frequencies for new 
                        technologies and services in accordance with 
                        the policies of section 7 of the Communications 
                        Act (47 U.S.C. 157); and
                            (ii) the availability of frequencies to 
                        stimulate the development of such technologies; 
                        and
                    (C) not prevent the Commission from allocating 
                bands of frequencies for specific uses in future 
                rulemaking proceedings.
    (b) Amendment to the Communications Act.--Section 303 of the 
Communications Act is amended by adding at the end thereof the 
following new subsection:
    ``(u) Have authority to assign the frequencies reallocated from 
United States Government use to non-United States Government use 
pursuant to the Emerging Telecommunications Technologies Act of 1991, 
except that any such assignment shall expressly be made subject to the 
right of the President to reclaim such frequencies under the provisions 
of section 407 of the Emerging Telecommunications Technologies Act of 
1991.''.

SEC. 217. AUTHORITY TO RECLAIM REASSIGNED FREQUENCIES.

    (a) Authority of President.--The President may reclaim reallocated 
frequencies for reassignment to United States Government stations in 
accordance with this section.
    (b) Procedure for Reclaiming Frequencies.--
            (1) Unassigned frequencies.--If the frequencies to be 
        reclaimed have not been assigned by the Commission, the 
        President may reclaim them based on the grounds described in 
        section 405(b)(2).
            (2) Assigned frequencies.--If the frequencies to be 
        reclaimed have been assigned by the Commission, the President 
        may reclaim them based on the grounds described in section 
        405(b)(2), except that the notification required by section 
        405(b)(1) shall include--
                    (A) a timetable to accommodate an orderly 
                transition for licensees to obtain new frequencies and 
                equipment necessary for their utilization; and
                    (B) an estimate of the cost of displacing the 
                licensees.
    (c) Costs of Reclaiming Frequencies.--Any non-United States 
Government licensee that is displaced from a frequency pursuant to this 
section shall be reimbursed the incremental costs it incurs that are 
directly attributable to the loss of the use of the frequency pursuant 
to this section.
    (d) Effect on Other Law.--Nothing in this section shall be 
construed to limit or otherwise affect the authority of the President 
under section 706 of the Communications Act (47 U.S.C. 606).

SEC. 218. COMPETITIVE BIDDING.

    (a) Competitive Bidding Authorized.--Section 309 of the 
Communications Act is amended by adding the following new subsection:
    ``(j)(1)(A) The Commission shall use competitive bidding for 
awarding all initial licenses or new construction permits, including 
licenses and permits for spectrum reallocated for non-United States 
Government use pursuant to the Emerging Telecommunications Technologies 
Act of 1991, subject to the exclusions listed in paragraph (2).
    ``(B) The Commission shall require potential bidders to file a 
first-stage application indicating an intent to participate in the 
competitive bidding process and containing such other information as 
the Commission finds necessary. After conducting the bidding, the 
Commission shall require the winning bidder to submit a second-stage 
application. Upon determining that such application is acceptable for 
filing and that the applicant is qualified pursuant to subparagraph 
(C), the Commission shall grant a permit or license.
    ``(C) No construction permit or license shall be granted to an 
applicant selected pursuant to subparagraph (B) unless the Commission 
determines that such applicant is qualified pursuant to section 308(b) 
and subsection (a) of this section, on the basis of the information 
contained in the first- and second-stage applications submitted under 
subparagraph (B).
    ``(D) Each participant in the competitive bidding process is 
subject to the schedule of changes contained in section 8 of this Act.
    ``(E) The Commission shall have the authority in awarding 
construction permits or licenses under competitive bidding procedures 
to (i) define the geographic and frequency limitations and technical 
requirements, if any, of such permits or licenses; (ii) establish 
minimum acceptable competitive bids; and (iii) establish other 
appropriate conditions on such permits and licenses that will serve the 
public interest.
    ``(F) The Commission, in designing the competitive bidding 
procedures under this subsection, shall study and include procedures--
            ``(i) to ensure bidding access for small and rural 
        companies,
            ``(ii) if appropriate, to extend the holding period for 
        winning bidders awarded permits or licenses, and
            ``(iii) to expand review and enforcement requirements to 
        ensure that winning bidders continue to meet their obligations 
        under this Act.
    ``(G) The Commission shall, within 6 months after enactment of the 
Emerging Telecommunications Technologies Act of 1991, following public 
notice and comment proceedings, adopt rules establishing competitive 
bidding procedures under this subsection, including the method of 
bidding and the basis for payment (such as flat fees, fixed or variable 
royalties, combinations of flat fees and royalties, or other reasonable 
forms of payment); and a plan for applying such competitive bidding 
procedures to the initial 50 MHz reallocated from United States 
Government to non-United States Government use under section 
404(d)(1)(A) of the Emerging Telecommunications Technologies Act of 
1991, to be distributed during the fiscal years 1994 through 1996.
    ``(2) Competitive bidding shall not apply to--
            ``(A) license renewals;
            ``(B) the United States Government and State or local 
        government entities;
            ``(C) amateur operator services, over-the-air terrestrial 
        radio and television broadcast services, public safety 
        services, and radio astronomy services;
            ``(D) private radio end-user licenses, such as Specialized 
        Mobile Radio Service (SMRS), maritime, and aeronautical end-
        user licenses;
            ``(E) any license grant to a non-United States Government 
        licensee being moved from its current frequency assignment to a 
        different one by the Commission in order to implement the goals 
        and objectives underlying the Emerging Telecommunications 
        Technologies Act of 1991;
            ``(F) any other service, class of services, or assignments 
        that the Commission determines, after conducting public comment 
        and notice proceedings, should be exempt from competitive 
        bidding because of public interest factors warranting an 
        exemption; and
            ``(G) small businesses, as defined in section 3(a)(1) of 
        the Small Business Act.
    ``(3) In implementing this subsection, the Commission shall ensure 
that current and future rural telecommunications needs are met and that 
existing rural licensees and their subscribers are not adversely 
affected.
    ``(4) Monies received from competitive bidding pursuant to this 
subsection shall be deposited in the general fund of the United States 
Treasury.''.
    (b) Random Selection not to Apply When Competitive Bidding 
Required.--Section 309(i)(1) of the Communications Act is amended by 
striking the period after the word ``selection'' and inserting ``, 
except in instances where competitive bidding procedures are required 
under subsection (j).''.
    (c) Spectrum Allocation Decisions.--Section 303 of the 
Communications Act is amended by adding the following new subsection:
    ``(v) In making spectrum allocation decisions among services that 
are subject to competitive bidding, the Commission is authorized to 
consider as one factor among others taken into account in making its 
determination, the relative economic values and other public interest 
benefits of the proposed uses as reflected in the potential revenues 
that would be collected under its competitive bidding procedures.''.

SEC. 219. DEFINITIONS.

    As used in this subtitle:
            (1) The term ``allocation'' means an entry in the National 
        Table of Frequency Allocations of a given frequency band for 
        the purpose of its use by one or more radiocommunications 
        services.
            (2) The term ``assignment'' means an authorization given by 
        the Commission or the United States Government for a radio 
        station to use a radio frequency or radio frequency channel.
            (3) The term ``Commission'' means the Federal 
        Communications Commission.
            (4) The term ``Communications Act'' means the 
        Communications Act of 1934 (47 U.S.C. 151 et seq.).
            (5) The term ``Secretary'' means the Secretary of Commerce.

                      Subtitle C--Other Provisions

SEC. 221. EXTENSION OF CURRENT LAW REGARDING LUMP-SUM WITHDRAWAL OF 
              RETIREMENT CONTRIBUTIONS FOR CIVIL SERVICE RETIREES.

    (a) Civil Service Retirement System.--Section 8343a(f)(3) of title 
5, United States Code, is amended by striking out ``October 1, 1995'' 
and inserting in lieu thereof ``October 1, 1996''.
    (b) Federal Employees Retirement System.--Section 8420a(f)(3) of 
title 5, United States Code, is amended by striking out ``October 1, 
1995'' and inserting in lieu thereof ``October 6, 1996''.

SEC. 222. EXTENSION OF THE PATENT AND TRADEMARK OFFICE USER FEE 
              SURCHARGE THROUGH 1996.

    Section 10101 of the Omnibus Budget Reconciliation Act of 1990 (35 
U.S.C. 41 note) is amended--
            (1) in subsection (a) by striking ``1995'' and inserting 
        ``1996'';
            (2) in subsection (b)(2) by striking ``1995'' and inserting 
        ``1996''; and
            (3) in subsection (c)--
                    (A) by striking ``1995'' the first place it appears 
                and inserting ``1996''; and
                    (B) by adding at the end the following new 
                paragraph:
            ``(6) $107,000,000 in fiscal year 1996.''

SEC. 223. ONE-YEAR EXTENSION OF CUSTOMS USER FEES.

    Paragraph (3) of section 13031(j) of the Consolidated Omnibus 
Budget Reconciliation Act of 1985 (19 U.S.C. 58c(j)(3)) is amended by 
striking out ``1995'' and inserting ``1996''.

SEC. 224. DISCLOSURES OF INFORMATION FOR VETERANS BENEFITS.

    (a) In General.--Section 6103(l)(7)(D) (relating to programs to 
which rule applies) is amended by striking ``September 30, 1992'' in 
the last sentence and inserting ``September 30, 1998''.
    (b) Conforming Amendment.--Section 5317(g) of title 38, United 
States Code, is amended by striking ``September 30, 1992'' and 
inserting ``September 30, 1998''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on September 30, 1992.

SEC. 225. REVISION OF PROCEDURE RELATING TO CERTAIN LOAN DEFAULTS.

    (a) Revision.--Section 3732(c)(1)(C)(ii) of title 38, United States 
Code, is amended by striking out ``resale,'' and inserting in lieu 
thereof ``resale (including losses sustained on the resale of the 
property),''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on October 1, 1991.

SEC. 226. APPLICATION OF MEDICARE PART B LIMITS TO FEHBP ENROLLEE AGE 
              65 OR OLDER.

    (a) Federal Employees Health Benefits Program.--Subsection 8904(b) 
of title 5, United States Code, is amended:
            (1) by amending paragraph (1) to read as follows:
    ``(b)(1)(A) A plan, other than a prepayment plan described in 
section 8903(4) of this title, may not provide benefits under this 
chapter, in the case of any individual enrolled in the plan who is not 
an employee and who is age 65 or older, to the extent that--
            ``(i) a benefit claim involves a charge by a health care 
        provider for a type of service or medical item which is covered 
        for purposes of benefit payments under both this chapter and 
        title XVIII of the Social Security Act (42 U.S.C. 1395-1395ccc) 
        relating to medicare hospital and supplementary medical 
        insurance, and
            ``(ii) benefits otherwise payable under such provisions of 
        law in the case of such individual would exceed applicable 
        limitations on hospital and physician charges established for 
        medicare purposes under sections 1886 and 1848 of the Social 
        Security Act (42 U.S.C. 1395ww and 1395w-4), respectively.
    ``(B)(i) For purposes of this subsection, hospitals, physicians, 
and other suppliers of medical and health services who have in force 
participation agreements with the Secretary of Health and Human 
Services consistent with sections 1842(h) and 1866 of the Social 
Security Act (42 U.S.C. 1395u(h) and 1395cc), whereby the participating 
provider accepts medicare benefits in full payment of charges for 
covered items and services after applicable patient copayments under 
sections 1813, 1833 and 1866(a)(2) of the Social Security Act (42 
U.S.C. 1395e, 1395l, and 1395cc(a)(2)) have been satisfied, shall 
accept equivalent benefit payments and enrollee copayments under this 
chapter as full payment for any item or service described under 
subparagraph (A) which is furnished to an individual who is enrolled 
under this chapter and is not covered for purposes of benefit payments 
applicable to such item or service under provisions of title XVIII of 
the Social Security Act.
    ``(ii) Physicians and other health care suppliers who are 
nonparticipating physicians, as defined by section 1842(i)(2) of the 
Social Security Act (42 U.S.C. 1395u(i)(2)) for purposes of services 
furnished to medicare beneficiaries, may not bill in excess of the 
limiting charge prescribed under section 1848(g) of the Social Security 
Act (42 U.S.C. 1395w-4(g)) when providing services described under 
subparagraph (A) to an individual who is enrolled under this chapter 
and is not covered for purposes of benefit payments applicable to those 
services under provisions of title XVIII of the Social Security Act.
    ``(iii) The Office of Personnel Management shall notify the 
Secretary of Health and Human Services if a hospital, physician, or 
other supplier of medical services is found to knowingly and willfully 
violate this subsection and the Secretary shall invoke appropriate 
sanctions in accordance with subsections 1128A(a)(2), 1848(g)(8), and 
1866(b)(2) of the Social Security Act (42 U.S.C. 1320a-7a(a)(2), 1395w-
4(g)(8), and 1395cc(b)(2)) and applicable regulations.''; and
            (2) by amending paragraph (3)(B) to read as follows:
                    ``(B) For purposes of this paragraph, the term 
                `medicare program information' includes--
                            ``(i) the limitations on hospital charges 
                        established for medicare purposes under section 
                        1886 of the Social Security Act (42 U.S.C. 
                        1395ww) and the identity of hospitals which 
                        have in force agreements with the Secretary of 
                        Health and Human Services consistent with 
                        section 1866 of the Social Security Act (42 
                        U.S.C. 1395cc); and
                            ``(ii) the annual fee schedule amounts for 
                        services of participating physicians and 
                        `limiting charge' information for 
                        nonparticipating physicians established for 
                        medicare purposes under section 1848 of the 
                        Social Security Act (42 U.S.C. 1395w-4) and the 
                        identity of physicians and suppliers who have 
                        in force participation agreements with the 
                        Secretary consistent with subsection 1842(h) of 
                        the Social Security Act (42 U.S.C. 1395u(h).''.
    (b) Medicare Agreements With Institutional Providers.--Section 
1866(a)(1) of the Social Security Act (42 U.S.C. 1395cc(a)(1)) is 
amended--
            (1) by striking out ``and'' at the end of subparagraph (P);
            (2) by striking out the period at the end of subparagraph 
        (Q) and inserting ``, and'', and
            (3) by inserting after subparagraph (Q) the following new 
        paragraph:
                    ``(R) to accept as payment in full the amounts that 
                would be payable under this part (including the amounts 
                of any coinsurance and deductibles required of 
                individuals entitled to have payment made on their 
                behalf) for an item or service which the provider 
                normally furnishes to patients (or others furnish under 
                arrangement with the provider) and which is furnished 
                to an individual who has attained age 65, is ineligible 
                to receive benefits under this part, and is enrolled, 
                other than as an employee, under a health benefits plan 
                described in paragraphs (1) through (3) of section 8903 
                and section 8903a of title 5, United States Code, if 
                such item or service is of a type that is covered under 
                both this title and chapter 89 of title 5, United 
                States Code.''.
    (c) Medicare Participating Physicians and Suppliers.--Section 
1842(h)(1) of the Social Security Act (42 U.S.C. 1395u(h)(1)) is 
amended, after the second sentence, by inserting the following new 
sentence: ``Such agreement shall provide, for any year beginning with 
1993, that the physician or supplier will accept as payment in full the 
amounts that would be payable under this part (plus the amounts of any 
coinsurance or deductibles required of individuals on whose behalf 
payments are made under this title) for an item or service furnished 
during such year to an individual who has attained age 65, is 
ineligible to receive benefits under this part, and is enrolled, other 
than as an employee, under a health benefits plan described in 
paragraphs (1) through (3) of section 8903 and section 8903a of title 
5, United States Code, if such item or service is of a type that is 
covered under both this part and chapter 89 of title 5, United States 
Code.''.
    (d) Medicare Actual Charge Limitation for Nonparticipating 
Physicians.--Section 1848(g) of the Social Security Act (42 U.S.C. 
1359w-4(g)) is amended by adding at the end thereof the following 
paragraph:
            ``(8) Limitation of actual charges for enrollees of the 
        federal employees health benefits program.--(A) A 
        nonparticipating physician shall not impose an actual charge in 
        excess of the limiting charge defined in paragraph (2) for 
        items and services furnished after 1993 in any case involving--
                    ``(i) an individual who has attained age 65, is 
                ineligible to receive benefits under this part, and is 
                enrolled, other than as an employee, under a health 
                benefits plan described in paragraphs (1) through (3) 
                or section 8903 or section 8903a of title 5, United 
                States Code; and
                    ``(ii) an item or service of a type that is covered 
                for benefits under both this part and chapter 89 of 
                title 5, United States Code.
            ``(B) If a person knowingly and willfully bills for 
        physicians' services in violation of subparagraph (A), the 
        Secretary shall apply sanctions against the person in 
        accordance with section 1842(j)(2).''.
    (e) Effective Dates.--
            (1) Except as provided in paragraph (2), the amendments 
        made by this section shall be effective with respect to health 
        care provider charges for items and services furnished to 
        individuals enrolled in plans under chapter 89 of title 5, 
        United States Code, in contract years beginning after December 
        31, 1993.
            (2) The amendment made by subsection (b) applies to 
        agreements for periods after 1991.

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