[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2534 Introduced in House (IH)]

  1st Session
                                H. R. 2534

To amend the Internal Revenue Code of 1986 with respect to treatment of 
                 corporations, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 25, 1995

   Mr. Sanders (for himself, Mr. Owens, Ms. Norton, Mr. Hinchey, Mr. 
 Romero-Barcelo, and Mr. Conyers) introduced the following bill; which 
was referred to the Committee on Ways and Means, and in addition to the 
   Committees on Agriculture, National Security, Science, Resources, 
  Commerce, Transportation and Infrastructure, Banking and Financial 
Services, and International Relations, for a period to be subsequently 
   determined by the Speaker, in each case for consideration of such 
 provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 with respect to treatment of 
                 corporations, and for other purposes.

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

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Corporate 
Responsibility Act of 1995''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Table of contents.
                      TITLE I--TAX SUBSIDY REFORM

Sec. 101. Elimination of credit for foreign taxes and allowance of 
                            deduction for such taxes.
Sec. 102. Repeal of election to take percentage credit under Puerto 
                            Rico and possession tax credit.
Sec. 103. Use of formulaic approach under section 482.
Sec. 104. Disposition of stock in domestic corporations by 10-percent 
                            foreign shareholders.
Sec. 105. Portfolio debt.
Sec. 106. Termination of exclusion of certain income of citizens or 
                            residents of United States living abroad.
Sec. 107. Elimination of exclusion of certain income of foreign sales 
                            corporations.
Sec. 108. Repeal of deferral of income of controlled foreign 
                            corporations.
Sec. 109. Extension of statute of limitations for certain foreign-
                            related deficiencies.
              TITLE II--AGRICULTURAL AND GRAZING SUBSIDIES

Sec. 201. Payment limitations under farm commodity programs.
Sec. 202. Repeal of title III of Agricultural Trade Act of 1978.
Sec. 203. Elimination of tobacco price support and production 
                            adjustment programs.
Sec. 204. Repeal of section 203 of Agricultural Trade Act of 1978.
Sec. 205. Grazing fees at fair market value.
      TITLE III--AEROSPACE AND HIGH-TECHNOLOGY INDUSTRY SUBSIDIES

Sec. 301. Termination of Federal assistance for Sematech.
Sec. 302. Termination of Federal assistance under defense technology 
                            reinvestment programs.
Sec. 303. Space station program.
               TITLE IV--NATIONAL PARKS CONCESSION REFORM

Sec. 401. Findings.
Sec. 402. Definitions.
Sec. 403. Repeal of concessions policy act of 1965.
Sec. 404. Concessions policy.
Sec. 405. Competitive selection process.
Sec. 406. Franchise fees.
Sec. 407. Duration of contract.
Sec. 408. Transfer of contract.
Sec. 409. Structures and facilities.
Sec. 410. Recordkeeping requirements.
Sec. 411. Exemption from certain lease requirements.
Sec. 412. Effective Date.
               TITLE V--MISCELLANEOUS INDUSTRY SUBSIDIES

Sec. 501. Fair market value sales of petroleum from naval petroleum 
                            reserves.
Sec. 502. Tokamak physics experiment program.
Sec. 503. Elimination of funding for highway demonstration projects.
Sec. 504. Use of fees from gaming activities to fund National Indian 
                            Gaming Commission.
Sec. 505. Reduction of outstanding loan, guarantee, and insurance 
                            authority of the Export-Import Bank of the 
                            United States.
Sec. 506. Abolition of Overseas Private Investment Corporation.
Sec. 507. Termination of nuclear weapons activities.
Sec. 508. Fossil and nuclear research and development.
Sec. 509. Requirements relating to recoupment of nonrecurring costs for 
                            certain sales of major defense equipment.
                       TITLE VI--EFFECTIVE DATES

Sec. 601. Effective dates.

                      TITLE I--TAX SUBSIDY REFORM

SEC. 101. ELIMINATION OF CREDIT FOR FOREIGN TAXES AND ALLOWANCE OF 
              DEDUCTION FOR SUCH TAXES.

    (a) In General.--Section 901 of the Internal Revenue Code of 1986 
(relating to taxes of foreign countries and of possessions of the 
United States) is amended by redesignating subsection (k) as subsection 
(l) and by inserting after subsection (j) the following new subsection:
    ``(k) Termination of Foreign Tax Credit.--
            ``(1) In general.--No credit shall be allowed under 
        subsection (a) for any income, war profits, or excess profits 
        taxes paid or accrued (or deemed paid under section 902 or 960) 
        for any taxable year beginning after the date of the enactment 
        of this subsection.
            ``(2) Taxes allowed as deduction.--Section 275(a)(4) shall 
        not apply to any tax for which credit is not allowable by 
        reason of this subsection.''
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after the date of the enactment of this Act.

SEC. 102. REPEAL OF ELECTION TO TAKE PERCENTAGE CREDIT UNDER PUERTO 
              RICO AND POSSESSION TAX CREDIT.

    (a) In General.--Paragraph (4) of section 936(a) of the Internal 
Revenue Act of 1986 (relating to Puerto Rico and possession tax credit) 
is amended by striking subparagraph (B).
    (b) Termination of Existing Elections.--No election under 
subparagraph (B) of section 936(a)(4) of such Code (as in effect on the 
day before the date of the enactment of this Act) shall apply for any 
taxable year beginning after December 31, 1995.
    (c) Revocation of Section 936 Election Without Consent of 
Secretary.--Notwithstanding section 936(e)(2)(A) of such Code, a 
taxpayer may revoke the election under subsection (a) of section 936 of 
such Code without the consent of the Secretary of the Treasury if the 
taxpayer had in effect, for the last taxable year ending on or before 
December 31, 1995, an election under subparagraph (B) of section 
936(a)(4) of such Code (as in effect on the day before the date of the 
enactment of this Act). This subsection shall apply only with respect 
to revocations made for the first taxable year beginning after December 
31, 1995.
    (d) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 1995.

SEC. 103. USE OF FORMULAIC APPROACH UNDER SECTION 482.

    Not later than January 1, 1996, the Secretary of the Treasury or 
his delegate shall prescribe regulations under section 482 of the 
Internal Revenue Code of 1986 which use a formulaic approach to clearly 
reflect income of multinational corporations.

SEC. 104. DISPOSITION OF STOCK IN DOMESTIC CORPORATIONS BY 10-PERCENT 
              FOREIGN SHAREHOLDERS.

    (a) General Rule.--Subpart D of part II of subchapter N of chapter 
1 of the Internal Revenue Code of 1986 (relating to miscellaneous 
provisions) is amended by adding at the end the following new section:

``SEC. 899. DISPOSITION OF STOCK IN DOMESTIC CORPORATIONS BY 10-PERCENT 
              FOREIGN SHAREHOLDERS.

    ``(a) General Rule.--
            ``(1) Treatment as effectively connected with united states 
        trade or business.--For purposes of this title, if any 
        nonresident alien individual or foreign corporation is a 10-
        percent shareholder in any domestic corporation, any gain or 
        loss of such individual or foreign corporation from the 
        disposition of any stock in such domestic corporation shall be 
        taken into account--
                    ``(A) in the case of a nonresident alien 
                individual, under section 871(b)(1), or
                    ``(B) in the case of a foreign corporation, under 
                section 882(a)(1),
        as if the taxpayer were engaged during the taxable year in a 
        trade or business within the United States through a permanent 
        establishment in the United States and as if such gain or loss 
        were effectively connected with such trade or business and 
        attributable to such permanent establishment. Notwithstanding 
        section 865, any such gain or loss shall be treated as from 
        sources in the United States.
            ``(2) 26-percent minimum tax on nonresident alien 
        individuals.--
                    ``(A) In general.--In the case of any nonresident 
                alien individual, the amount determined under section 
                55(b)(1)(A) shall not be less than 26 percent of the 
                lesser of--
                            ``(i) the individual's alternative minimum 
                        taxable income (as defined in section 55(b)(2)) 
                        for the taxable year, or
                            ``(ii) the individual's net taxable stock 
                        gain for the taxable year.
                    ``(B) Net taxable stock gain.--For purposes of 
                subparagraph (A), the term `net taxable stock gain' 
                means the excess of--
                            ``(i) the aggregate gains for the taxable 
                        year from dispositions of stock in domestic 
                        corporations with respect to which such 
                        individual is a 10-percent shareholder, over
                            ``(ii) the aggregate of the losses for the 
                        taxable year from dispositions of such stock.
                    ``(C) Coordination with section 897(a)(2).--Section 
                897(a)(2)(A) shall not apply to any nonresident alien 
                individual for any taxable year for which such 
                individual has a net taxable stock gain, but the amount 
                of such net taxable stock gain shall be increased by 
                the amount of such individual's net United States real 
                property gain (as defined in section 897(a)(2)(B)) for 
                such taxable year.
    ``(b) 10-Percent Shareholder.--
            ``(1) In general.--For purposes of this section, the term 
        `10-percent shareholder' means any person who at any time 
        during the shorter of--
                    ``(A) the period beginning on January 1, 1995, and 
                ending on the date of the disposition, or
                    ``(B) the 5-year period ending on the date of the 
                disposition,
        owned 10 percent or more (by vote or value) of the stock in the 
        domestic corporation.
            ``(2) Constructive ownership.--
                    ``(A) In general.--Section 318(a) (relating to 
                constructive ownership of stock) shall apply for 
                purposes of paragraph (1).
                    ``(B) Modifications.--For purposes of subparagraph 
                (A)--
                            ``(i) paragraph (2)(C) of section 318(a) 
                        shall be applied by substituting `10 percent' 
                        for `50 percent', and
                            ``(ii) paragraph (3)(C) of section 318(a) 
                        shall be applied--
                                    ``(I) by substituting `10 percent' 
                                for `50 percent', and
                                    ``(II) in any case where such 
                                paragraph would not apply but for 
                                subclause (I), by considering a 
                                corporation as owning the stock (other 
                                than stock in such corporation) owned 
                                by or for any shareholder of such 
                                corporation in that proportion which 
                                the value of the stock which such 
                                shareholder owns in such corporation 
                                bears to the value of all stock in such 
                                corporation.
            ``(3) Treatment of stock held by certain partnerships.--
                    ``(A) In general.--For purposes of this section, 
                if--
                            ``(i) a partnership is a 10-percent 
                        shareholder in any domestic corporation, and
                            ``(ii) 10 percent or more of the capital or 
                        profits interests in such partnership is held 
                        (directly or indirectly) by nonresident alien 
                        individuals or foreign corporations,
                each partner in such partnership who is not otherwise a 
                10-percent shareholder in such corporation shall, with 
                respect to the stock in such corporation held by the 
                partnership, be treated as a 10-percent shareholder in 
                such corporation.
                    ``(B) Exception.--
                            ``(i) In general.--Subparagraph (A) shall 
                        not apply with respect to stock in a domestic 
                        corporation held by any partnership if, at all 
                        times during the 5-year period ending on the 
                        date of the disposition involved--
                                    ``(I) the aggregate bases of the 
                                stock and securities in such domestic 
                                corporation held by such partnership 
                                were less than 25 percent of the 
                                partnership's net adjusted asset cost, 
                                and
                                    ``(II) the partnership did not own 
                                50 percent or more (by vote or value) 
                                of the stock in such domestic 
                                corporation.
                        The Secretary may by regulations disregard any 
                        failure to meet the requirements of subclause 
                        (I) where the partnership normally met such 
                        requirements during such 5-year period.
                            ``(ii) Net adjusted asset cost.--For 
                        purposes of clause (i), the term `net adjusted 
                        asset cost' means--
                                    ``(I) the aggregate bases of all of 
                                the assets of the partnership other 
                                than cash and cash items, reduced by
                                    ``(II) the portion of the 
                                liabilities of the partnership not 
                                allocable (on a proportionate basis) to 
                                assets excluded under subclause (I).
                    ``(C) Exception not to apply to 50-percent 
                partners.--Subparagraph (B) shall not apply in the case 
                of any partner owning (directly or indirectly) more 
                than 50 percent of the capital or profits interests in 
                the partnership at any time during the 5-year period 
                ending on the date of the disposition.
                    ``(D) Special rules.--For purposes of subparagraphs 
                (B) and (C)--
                            ``(i) Treatment of predecessors.--Any 
                        reference to a partnership or corporation shall 
                        be treated as including a reference to any 
                        predecessor thereof.
                            ``(ii) Partnership not in existence.--If 
                        any partnership was not in existence throughout 
                        the entire 5-year period ending on the date of 
                        the disposition, only the portion of such 
                        period during which the partnership (or any 
                        predecessor) was in existence shall be taken 
                        into account.
                    ``(E) Other pass-thru entities; tiered entities.--
                Rules similar to the rules of the preceding provisions 
                of this paragraph shall also apply in the case of any 
                pass-thru entity other than a partnership and in the 
                case of tiered partnerships and other entities.
    ``(c) Coordination With Nonrecognition Provisions; Etc.--
            ``(1) Coordination with nonrecognition provisions.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), any nonrecognition provision shall 
                apply for purposes of this section to a transaction 
                only in the case of--
                            ``(i) an exchange of stock in a domestic 
                        corporation for other property the sale of 
                        which would be subject to taxation under this 
                        chapter, or
                            ``(ii) a distribution with respect to which 
                        gain or loss would not be recognized under 
                        section 336 if the sale of the distributed 
                        property by the distributee would be subject to 
                        tax under this chapter.
                    ``(B) Regulations.--The Secretary shall prescribe 
                regulations (which are necessary or appropriate to 
                prevent the avoidance of Federal income taxes) 
                providing--
                            ``(i) the extent to which nonrecognition 
                        provisions shall, and shall not, apply for 
                        purposes of this section, and
                            ``(ii) the extent to which--
                                    ``(I) transfers of property in a 
                                reorganization, and
                                    ``(II) changes in interests in, or 
                                distributions from, a partnership, 
                                trust, or estate,
                        shall be treated as sales of property at fair 
                        market value.
                    ``(C) Nonrecognition provision.--For purposes of 
                this paragraph, the term `nonrecognition provision' 
                means any provision of this title for not recognizing 
                gain or loss.
            ``(2) Certain other rules made applicable.--For purposes of 
        this section, rules similar to the rules of subsections (g) and 
(j) of section 897 shall apply.
    ``(d) Certain Interest Treated as Stock.--For purposes of this 
section--
            ``(1) any option or other right to acquire stock in a 
        domestic corporation,
            ``(2) the conversion feature of any debt instrument issued 
        by a domestic corporation, and
            ``(3) to the extent provided in regulations, any other 
        interest in a domestic corporation other than an interest 
        solely as creditor,
shall be treated as stock in such corporation.
    ``(e) Treatment of Certain Gain as a Dividend.--In the case of any 
gain which would be subject to tax by reason of this section but for a 
treaty and which results from any distribution in liquidation or 
redemption, for purposes of this subtitle, such gain shall be treated 
as a dividend to the extent of the earnings and profits of the domestic 
corporation attributable to the stock. Rules similar to the rules of 
section 1248(c) (determined without regard to paragraph (2)(D) thereof) 
shall apply for purposes of the preceding sentence.
    ``(f) Regulations.--The Secretary shall prescribe such regulations 
as may be appropriate to carry out the purposes of this section, 
including--
            ``(1) regulations coordinating the provisions of this 
        section with the provisions of section 897, and
            ``(2) regulations aggregating stock held by a group of 
        persons acting together.''
    (b) Withholding of Tax.--Subchapter A of chapter 3 of such Code is 
amended by adding at the end the following new section:

``SEC. 1447. WITHHOLDING OF TAX ON CERTAIN STOCK DISPOSITIONS.

    ``(a) General Rule.--Except as otherwise provided in this section, 
in the case of any disposition of stock in a domestic corporation by a 
foreign person who is a 10-percent shareholder in such corporation, the 
withholding agent shall deduct and withhold a tax equal to 10 percent 
of the amount realized on the disposition.
    ``(b) Exceptions.--
            ``(1) Stock which is not regularly traded.--In the case of 
        a disposition of stock which is not regularly traded, a 
        withholding agent shall not be required to deduct and withhold 
        any amount under subsection (a) if--
                    ``(A) the transferor furnishes to such withholding 
                agent an affidavit by such transferor stating, under 
                penalty of perjury, that section 899 does not apply to 
                such disposition because--
                            ``(i) the transferor is not a foreign 
                        person, or
                            ``(ii) the transferor is not a 10-percent 
                        shareholder, and
                    ``(B) such withholding agent does not know (or have 
                reason to know) that such affidavit is not correct.
            ``(2) Stock which is regularly traded.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), a withholding agent shall not be 
                required to deduct and withhold any amount under 
                subsection (a) with respect to any disposition of 
                regularly traded stock if such withholding agent does 
                not know (or have reason to know) that section 899 
                applies to such disposition.
                    ``(B) Special rule where substantial disposition.--
                If--
                            ``(i) there is a disposition of regularly 
                        traded stock in a corporation, and
                            ``(ii) the amount of stock involved in such 
                        disposition constitutes 1 percent or more (by 
                        vote or value) of the stock in such 
                        corporation,
                subparagraph (A) shall not apply but paragraph (1) 
                shall apply as if the disposition involved stock which 
                was not regularly traded.
                    ``(C) Notification by foreign person.--If section 
                899 applies to any disposition by a foreign person of 
                regularly traded stock, such foreign person shall 
                notify the withholding agent that section 899 applies 
                to such disposition.
            ``(3) Nonrecognition transactions.--A withholding agent 
        shall not be required to deduct and withhold any amount under 
        subsection (a) in any case where gain or loss is not recognized 
        by reason of section 899(c) (or the regulations prescribed 
        under such section).
    ``(c) Special Rule Where No Withholding.--If
            ``(1) there is no amount deducted and withheld under this 
        section with respect to any disposition to which section 899 
        applies, and
            ``(2) the foreign person does not pay the tax imposed by 
        this subtitle to the extent attributable to such disposition on 
        the date prescribed therefor,
for purposes of determining the amount of such tax, the foreign 
person's basis in the stock disposed of shall be treated as zero or 
such other amount as the Secretary may determine (and, for purposes of 
section 6501, the underpayment of such tax shall be treated as due to a 
willful attempt to evade such tax).
    ``(d) Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Withholding agent.--The term `withholding agent' 
        means--
                    ``(A) the last United States person to have the 
                control, receipt, custody, disposal, or payment of the 
                amount realized on the disposition, or
                    ``(B) if there is no such United States person, the 
                person prescribed in regulations.
            ``(2) Foreign person.--The term `foreign person' means any 
        person other than a United States person.
            ``(3) Regularly traded stock.--The term `regularly traded 
        stock' means any stock of a class which is regularly traded on 
        an established securities market.
            ``(4) Authority to prescribe reduced amount.--At the 
        request of the person making the disposition or the withholding 
        agent, the Secretary may prescribe a reduced amount to be 
        withheld under this section if the Secretary determines that to 
        substitute such reduced amount will not jeopardize the 
        collection of the tax imposed by section 871(b)(1) or 
        882(a)(1).
            ``(5) Other terms.--Except as provided in this section, 
        terms used in this section shall have the same respective 
        meanings as when used in section 899.
            ``(6) Certain rules made applicable.--Rules similar to the 
        rules of section 1445(e) shall apply for purposes of this 
        section.
    ``(e) Regulations.--The Secretary shall prescribe such regulations 
as may be appropriate to carry out the purposes of this section, 
including regulations coordinating the provisions of this section with 
the provisions of sections 1445 and 1446.''
    (c) Exception From Branch Profits Tax.--Subparagraph (C) of section 
884(d)(2) of such Code is amended to read as follows:
                    ``(C) gain treated as effectively connected with 
                the conduct of a trade or business within the United 
                States under--
                            ``(i) section 897 in the case of the 
                        disposition of a United States real property 
                        interest described in section 897(c)(1)(A)(ii), 
                        or
                            ``(ii) section 899,''.
    (d) Reports With Respect to Certain Distributions.--Paragraph (2) 
of section 6038B(a) of such Code (relating to notice of certain 
transfers to foreign person) is amended by striking ``section 336'' and 
inserting ``section 302, 331, or 336''.
    (e) Clerical Amendments.--
            (1) The table of sections for subpart D of part II of 
        subchapter N of chapter 1 of such Code is amended by adding at 
        the end the following new item:

                              ``Sec. 899. Dispositions of stock in 
                                        domestic corporations by 10-
                                        percent foreign shareholders.''
            (2) The table of sections for subchapter A of chapter 3 of 
        such Code is amended by adding at the end the following new 
        item:

                              ``Sec. 1447. Withholding of tax on 
                                        certain stock dispositions.''
    (f) Effective Date.--The amendments made by this section shall 
apply to dispositions after December 31, 1995, except that section 1447 
of such Code (as added by this section) shall not apply to any 
disposition before July 1, 1996.

SEC. 105. PORTFOLIO DEBT.

    (a) In General.--Section 871(h)(3) of the Internal Revenue Code of 
1986 (relating to tax on nonresident alien individuals) is amended to 
read as follows:
            ``(3) Portfolio interest to include only interest on 
        government obligations.--The term `portfolio interest' shall 
        include only interest paid on an obligation issued by a 
        governmental entity.''
    (b) Conforming Amendments.--
            (1) Section 881(c)(3) of such Code is amended--
                    (A) in subparagraph (A), by adding ``or'' at the 
                end, and
                    (B) by striking subparagraph (B) and redesignating 
                subparagraph (C) as subparagraph (B).
            (2) Section 881(c)(4) of such Code is amended--
                    (A) by striking ``section 871(h)(4)'' and inserting 
                ``section 871(h) (3) or (4)'', and
                    (B) in the heading, by striking ``contingent''.
    (c) Effective Date.--The amendments made by this section shall 
apply to interest received after December 31, 1995, with respect to 
obligations issued after such date.

SEC. 106. TERMINATION OF EXCLUSION OF CERTAIN INCOME OF CITIZENS OR 
              RESIDENTS OF UNITED STATES LIVING ABROAD.

    (a) In General.--Section 911 of the Internal Revenue Code of 1986 
(relating to citizens or residents of the United States living abroad) 
is amended by redesignating subsection (f) as subsection (g) and by 
inserting after subsection (e) the following new subsection:
    ``(f) Termination.--This section shall not apply to any taxable 
year beginning after December 31, 1995.''
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 1995.

SEC. 107. ELIMINATION OF EXCLUSION OF CERTAIN INCOME OF FOREIGN SALES 
              CORPORATIONS.

    (a) In General.--Section 921 of the Internal Revenue Code of 1986 
(relating to exempt foreign trade income excluded from gross income) is 
amended by adding at the end the following new subsection:
    ``(e) Termination.--This section shall not apply to any taxable 
year beginning after December 31, 1995.''
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 1995.

SEC. 108. REPEAL OF DEFERRAL OF INCOME OF CONTROLLED FOREIGN 
              CORPORATIONS.

    (a) General Rule.--Subpart F of part III of subchapter N of chapter 
1 of the Internal Revenue Code of 1986 is amended by striking sections 
952, 953, and 954 and inserting the following new sections:

``SEC. 952. SUBPART F INCOME.

    ``(a) General Rule.--For purposes of this subpart, the term 
`subpart F income' means the earnings and profits of the controlled 
foreign corporation for the taxable year computed with the following 
adjustments:
            ``(1) There shall be excluded the amount of the earnings 
        and profits which are attributable to income from sources 
        within the United States which is effectively connected with 
        the conduct by the controlled foreign corporation of a trade or 
        business within the United States, except to the extent such 
        income is exempt from taxation (or subject to a reduced rate of 
        tax) pursuant to a treaty obligation of the United States. For 
        purposes of the preceding sentence, income described in 
        paragraph (2) or (3) of section 921(d) shall be treated as 
        derived from sources within the United States.
            ``(2) In determining earnings and profits (or the deficit 
        in earnings and profits), the amount of any illegal bribe, 
        kickback, or other payment (within the meaning of section 
        162(c), except as otherwise provided in this paragraph) shall 
        not be taken into account to decrease such earnings and profits 
        or to increase such deficit. The payments referred to in the 
        preceding sentence include payments which would be unlawful 
        under the Foreign Corrupt Practices Act of 1977 if the payor 
        were a United States person.
            ``(3) Under regulations prescribed by the Secretary, there 
        shall be excluded any part of any earnings and profits if it is 
        established to the satisfaction of the Secretary that such part 
        could not have been distributed by the controlled foreign 
        corporation to United States shareholders who own (within the 
        meaning of section 958(a)) stock of such controlled foreign 
        corporation because of currency or other restrictions or 
        limitations imposed under the laws of any foreign country.
            ``(4) Earnings and profits shall be determined without 
        regard to paragraphs (4), (5), and (6) of section 312(n). Under 
        regulations, the preceding sentence shall not apply to the 
        extent it would increase earnings and profits by an amount 
        which was previously distributed by the controlled foreign 
        corporation.
Except as provided in this subsection and section 312(k)(4), the 
earnings and profits of any foreign corporation, and the deficit and 
earnings and profits of any foreign corporation for any taxable year 
shall be determined according to rules similar to those applicable to 
domestic corporations, under regulations prescribed by the Secretary.
    ``(b) Certain Deficits May Be Taken Into Account.--
            ``(1) Treatment of certain prior year deficits.--
                    ``(A) In general.--The amount included in the gross 
                income of any United States shareholder under section 
                951(a)(1)(A)(i) for any taxable year with respect to 
                any controlled foreign corporation shall be reduced by 
                the amount of such shareholder's pro rata share of any 
                qualified deficit of such controlled foreign 
                corporation.
                    ``(B) Qualified deficit.--For purposes of this 
                paragraph--
                            ``(i) In general.--The term `qualified 
                        deficit' means any deficit in the earnings and 
                        profits of the controlled foreign corporation 
                        for any prior taxable year which began after 
                        December 31, 1995, and for which such 
                        corporation was a controlled foreign 
                        corporation, but only to the extent such 
                        deficit has not previously been taken into 
                        account under this paragraph.
                            ``(ii) Special rule for deficits before 
                        1996.--The term `qualified deficit' includes 
                        any deficit in earnings and profits for any 
                        taxable year beginning before January 1, 1996, 
                        to the extent that such deficit qualified as a 
                        qualified deficit under subsection (c)(1)(B) of 
                        this section (as in effect on the day before 
                        the date of the enactment of this subsection); 
                        except that any such deficit may be taken into 
                        account under this paragraph only to offset 
                        amounts attributable to the same activity as 
                        the activity giving rise to such deficit.
                    ``(C) Pro rata share.--For purposes of this 
                paragraph, the shareholder's pro rata share of any 
                deficit shall be determined under rules similar to the 
                rules of section 951(a)(2) for whichever of the 
                following yields the smallest share:
                            ``(i) the close of the taxable year, or
                            ``(ii) the close of the taxable year in 
                        which the deficit arose.
            ``(2) Certain deficits of member of the same chain of 
        corporations may be taken into account.--
                    ``(A) In general.--A controlled foreign corporation 
                may elect to reduce the amount of its subpart F income 
                for any taxable year by the amount of any deficit in 
                earnings and profits of a qualified chain member for a 
                taxable year ending with (or within) the taxable year 
                of such controlled foreign corporation. To the extent 
                any deficit reduces subpart F income under the 
                preceding sentence, such deficit shall not be taken 
                into account under paragraph (1).
                    ``(B) Qualified chain member.--For purposes of this 
                paragraph, the term `qualified chain member' means, 
                with respect to any controlled foreign corporation, any 
                other corporation which is created or organized under 
                the laws of the same foreign country as the controlled 
                foreign corporation but only if--
                            ``(i) all the stock of such other 
                        corporation (other than directors' qualifying 
                        shares) is owned at all times during the 
                        taxable year in which the deficit arose 
                        (directly or through 1 or more corporations 
                        other than the common parent) by such 
                        controlled foreign corporation, or
                            ``(ii) all the stock of such controlled 
                        foreign corporation (other than directors' 
                        qualifying shares) is owned at all times during 
                        the taxable year in which the deficit arose 
                        (directly or through 1 or more corporations 
                        other than the common parent) by such other 
                        corporation.
                    ``(C) Coordination.--This paragraph shall be 
                applied after paragraph (1).
            ``(3) Determination of deficit.--In determining the amount 
        of any deficit in earnings and profits, the adjustments set 
        forth in subsection (a) shall apply.

``SEC. 953. SPECIAL RULES FOR CERTAIN INSURANCE COMPANIES.

    ``(a) Special Rule for Certain Captive Insurance Companies.--
            ``(1) In general.--For purposes only of taking into account 
        subpart F income which is attributable to related person 
        insurance income--
                    ``(A) the term `United States shareholder' means, 
                with respect to any foreign corporation, a United 
                States person (as defined in section 957(c)) who owns 
                (within the meaning of section 958(a)) any stock of the 
                foreign corporation,
                    ``(B) the term `controlled foreign corporation' has 
                the meaning given to such term by section 957(a) 
                determined by substituting `25 percent or more' for 
                `more than 50 percent', and
                    ``(C) the pro rata share referred to in section 
                951(a)(1)(A)(i) shall be determined under paragraph (5) 
                of this subsection.
            ``(2) Related person insurance income.--For purposes of 
        this subsection, the term `related person insurance income' 
        means any insurance income (within the meaning of subsection 
        (c)) attributable to a policy of insurance or reinsurance with 
        respect to which the person (directly or indirectly) insured is 
        a United States shareholder in the foreign corporation or a 
        related person to such a shareholder.
            ``(3) Exceptions.--
                    ``(A) Corporations not held by insureds.--Paragraph 
                (1) shall not apply to any foreign corporation if at 
                all times during the taxable year of such foreign 
                corporation--
                            ``(i) less than 20 percent of the total 
                        combined voting power of all classes of stock 
                        of such corporation entitled to vote, and
                            ``(ii) less than 20 percent of the total 
                        value of such corporation,
                is owned (directly or indirectly) under the principles 
                of section 883(c)(4) by persons who are (directly or 
                indirectly) insured under any policy of insurance or 
                reinsurance issued by such corporation or who are 
                related persons to any such person.
                    ``(B) De minimis exception.--Paragraph (1) shall 
                not apply to any foreign corporation for a taxable year 
                of such corporation if the related person insurance 
                income (determined on a gross basis) of such 
                corporation for such taxable year is less than 20 
                percent of its insurance income (as so determined) for 
                such taxable year determined without regard to those 
                provisions of subsection (c)(1) which limit insurance 
                income to income from countries other than the country 
                in which the corporation was created or organized.
                    ``(C) Election to treat income as effectively 
                connected.--Paragraph (1) shall not apply to any 
                foreign corporation for any taxable year if--
                            ``(i) such corporation elects (at such time 
                        and in such manner as the Secretary may 
                        prescribe)--
                                    ``(I) to treat its related person 
                                insurance income for such taxable year 
                                as income effectively connected with 
                                the conduct of a trade or business in 
                                the United States, and
                                    ``(II) to waive all benefits (other 
                                than with respect to section 884) with 
                                respect to related person insurance 
                                income granted by the United 
States under any treaty between the United States and any foreign 
country, and
                            ``(ii) such corporation meets such 
                        requirements as the Secretary shall prescribe 
                        to ensure that the tax imposed by this chapter 
                        on such income is paid.
                An election under this subparagraph made for any 
                taxable year shall not be effective if the corporation 
                (or any predecessor thereof) was a disqualified 
                corporation for the taxable year for which the election 
                was made or for any prior taxable year beginning after 
                1986.
                    ``(D) Special rules for subparagraph (C).--
                            ``(i) Period during which election in 
                        effect.--
                                    ``(I) In general.--Except as 
                                provided in subclause (II), any 
                                election under subparagraph (C) shall 
                                apply to the taxable year for which 
                                made and all subsequent taxable years 
                                unless revoked with the consent of the 
                                Secretary.
                                    ``(II) Termination.--If a foreign 
                                corporation which made an election 
                                under subparagraph (C) for any taxable 
                                year is a disqualified corporation for 
                                any subsequent taxable year, such 
                                election shall not apply to any taxable 
                                year beginning after such subsequent 
                                taxable year.
                            ``(ii) Exemption from tax imposed by 
                        section 4371.--The tax imposed by section 4371 
                        shall not apply with respect to any related 
                        person insurance income treated as effectively 
                        connected with the conduct of a trade or 
                        business within the United States under 
                        subparagraph (C).
                    ``(E) Disqualified corporation.--For purposes of 
                this paragraph the term `disqualified corporation' 
                means, with respect to any taxable year, any foreign 
                corporation which is a controlled foreign corporation 
                for an uninterrupted period of 30 days or more during 
                such taxable year (determined without regard to this 
                subsection) but only if a United States shareholder 
                (determined without regard to this subsection) owns 
                (within the meaning of section 958(a)) stock in such 
                corporation at some time during such taxable year.
            ``(4) Treatment of mutual insurance companies.--In the case 
        of a mutual insurance company--
                    ``(A) this subsection shall apply,
                    ``(B) policyholders of such company shall be 
                treated as shareholders, and
                    ``(C) appropriate adjustments in the application of 
                this subpart shall be made under regulations prescribed 
                by the Secretary.
            ``(5) Determination of pro rata share.--
                    ``(A) In general.--The pro rata share determined 
                under this paragraph for any United States shareholder 
                is the lesser of--
                            ``(i) the amount which would be determined 
                        under paragraph (2) of section 951(a) if--
                                    ``(I) only related person insurance 
                                income were taken into account,
                                    ``(II) stock owned (within the 
                                meaning of section 958(a)) by United 
                                States shareholders on the last day of 
                                the taxable year were the only stock in 
                                the foreign corporation, and
                                    ``(III) only distributions received 
                                by United States shareholders were 
                                taken into account under subparagraph 
                                (B) of such paragraph (2), or
                            ``(ii) the amount which would be determined 
                        under paragraph (2) of section 951(a) on the 
                        basis of the entire subpart F income of the 
                        foreign corporation for the taxable year.
                    ``(B) Coordination with other provisions.--The 
                Secretary shall prescribe regulations providing for 
                such modifications to the provisions of this subpart as 
                may be necessary or appropriate by reason of 
                subparagraph (A).
            ``(6) Related person.--For purposes of this subsection--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the term `related person' has the 
                meaning given such term by section 964(a).
                    ``(B) Treatment of certain liability insurance 
                policies.--In the case of any policy of insurance 
                covering liability arising from services performed as a 
                director, officer, or employee of a corporation or as a 
                partner or employee of a partnership, the person 
                performing such services and the entity for which such 
                services are performed shall be treated as related 
                persons.
            ``(7) Coordination with section 1248.--For purposes of 
        section 1248, if any person is (or would be but for paragraph 
        (3)) treated under paragraph (1) as a United States shareholder 
        with respect to any foreign corporation which would be taxed 
        under subchapter L if it were a domestic corporation and which 
        is (or would be but for paragraph (3)) treated under paragraph 
        (1) as a controlled foreign corporation--
                    ``(A) such person shall be treated as meeting the 
                stock ownership requirements of section 1248(a)(2) with 
                respect to such foreign corporation, and
                    ``(B) such foreign corporation shall be treated as 
                a controlled foreign corporation.
            ``(8) Regulations.--The Secretary shall prescribe such 
        regulations as may be necessary to carry out the purposes of 
        this subsection, including--
                    ``(A) regulations preventing the avoidance of this 
                subsection through cross insurance arrangements or 
                otherwise, and
                    ``(B) regulations which may provide that a person 
                will not be treated as a United States shareholder 
under paragraph (1) with respect to any foreign corporation if neither 
such person (nor any related person to such person) is (directly or 
indirectly) insured under any policy of insurance or reinsurance issued 
by such foreign corporation.
    ``(b) Election by Foreign Insurance Company To Be Treated as 
Domestic Corporation.--
            ``(1) In general.--If--
                    ``(A) a foreign corporation is a controlled foreign 
                corporation (as defined in section 957(a) by 
                substituting `25 percent or more' for `more than 50 
                percent' and by using the definition of United States 
                shareholder under subsection (a)(1)(A) of this 
                section),
                    ``(B) such foreign corporation would qualify under 
                part I or II of subchapter L for the taxable year if it 
                were a domestic corporation,
                    ``(C) such foreign corporation meets such 
                requirements as the Secretary shall prescribe to ensure 
                that the taxes imposed by this chapter on such foreign 
                corporation are paid, and
                    ``(D) such foreign corporation makes an election to 
                have this paragraph apply and waives all benefits to 
                such corporation granted by the United States under any 
                treaty,
        for purposes of this title, such corporation shall be treated 
        as a domestic corporation.
            ``(2) Period during which election is in effect.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), an election under paragraph (1) shall 
                apply to the taxable year for which made and all 
                subsequent taxable years unless revoked with the 
                consent of the Secretary.
                    ``(B) Termination.--If a corporation which made an 
                election under paragraph (1) for any taxable year fails 
                to meet the requirements of subparagraph (A), (B), or 
                (C) of paragraph (1) for any subsequent taxable year, 
                such election shall not apply to any taxable year 
                beginning after such subsequent taxable year.
            ``(3) Treatment of losses.--If any corporation treated as a 
        domestic corporation under this subsection is treated as a 
        member of an affiliated group for purposes of chapter 6 
        (relating to consolidated returns), any loss of such 
        corporation shall be treated as a dual consolidated loss for 
        purposes of section 1503(d) without regard to paragraph (2)(B) 
        thereof.
            ``(4) Effect of election.--
                    ``(A) In general.--For purposes of section 367, any 
                foreign corporation making an election under paragraph 
                (1) shall be treated as transferring (as the 1st day of 
                the 1st taxable year to which such election applies) 
                all of its assets to a domestic corporation in 
                connection with an exchange to which section 354 
                applies.
                    ``(B) Exception for pre-1988 earnings and profit.--
                            ``(i) In general.--Earnings and profits of 
                        the foreign corporation accumulated in taxable 
                        years beginning before January 1, 1988, shall 
                        not be included in the gross income of the 
                        persons holding stock in such corporation by 
                        reason of subparagraph (A).
                            ``(ii) Treatment of distributions.--For 
                        purposes of this title, any distribution made 
                        by a corporation to which an election under 
                        paragraph (1) applies out of earnings and 
                        profits accumulated in taxable years beginning 
                        before January 1, 1988, shall be treated as a 
                        distribution made by a foreign corporation.
                            ``(iii) Certain rules to continue to apply 
                        to pre-1988 earnings.--The provisions specified 
                        in clause (iv) shall be applied without regard 
                        to paragraph (1), except that, in the case of a 
                        corporation to which an election under 
                        paragraph (1) applies, only earnings and 
                        profits accumulated in taxable years beginning 
                        before January 1, 1988, shall be taken into 
                        account.
                            ``(iv) Specified provisions.--The 
                        provisions specified in this clause are:
                                    ``(I) Section 1248 (relating to 
                                gain from certain sales or exchanges of 
                                stock in certain foreign corporations).
                                    ``(II) This subpart to the extent 
                                such subpart relates to earnings 
                                invested in United States property or 
                                amounts referred to in clause (ii) or 
                                (iii) of section 951(a)(1)(A).
                                    ``(III) Section 884 to the extent 
                                the foreign corporation reinvested 1987 
                                earnings and profits in United States 
                                assets.
            ``(5) Effect of termination.--For purposes of section 367, 
        if--
                    ``(A) an election is made by a corporation under 
                paragraph (1) for any taxable year, and
                    ``(B) such election ceases to apply for any 
                subsequent taxable year,
        such corporation shall be treated as a domestic corporation 
        transferring (as of the 1st day of such subsequent taxable 
        year) all of its property to a foreign corporation in 
        connection with an exchange to which section 354 applies.
            ``(6) Additional tax on corporation making election.--
                    ``(A) In general.--If a corporation makes an 
                election under paragraph (1), the amount of tax imposed 
                by this chapter for the 1st taxable year to which such 
                election applies shall be increased by the amount 
                determined under subparagraph (B).
                    ``(B) Amount of tax.--The amount of tax determined 
                under this paragraph shall be equal to the lesser of--
                            ``(i) \3/4\ of 1 percent of the aggregate 
                        amount of capital and accumulated surplus of 
                        the corporation as of December 31, 1987, or
                            ``(ii) $1,500,000.
    ``(c) Insurance Income Defined.--For purposes of this section, the 
term `insurance income' means any income which--
            ``(1) is attributable to the issuing (or reinsuring) of any 
        insurance or annuity contract--
                    ``(A) in connection with property in, liability 
                arising out of activity in, or in connection with the 
                lives or health of residents of, a country other than 
                the country under the laws of which the controlled 
                foreign corporation is created or organized, or
                    ``(B) in connection with risks not described in 
                subparagraph (A) as the result of any arrangement 
                whereby another corporation receives a substantially 
                equal amount of premiums or other consideration in 
                respect of issuing (or reinsuring) a contract described 
                in subparagraph (A), and
            ``(2) would (subject to the modifications provided by 
        paragraphs (1) and (2) of subsection (d)) be taxed under 
        subchapter L of this chapter if such income were the income of 
        a domestic insurance company.
    ``(d) Special Rules.--In determining the amount of insurance 
income--
            ``(1) The following provisions of subchapter L shall not 
        apply:
                    ``(A) The small life insurance company deduction.
                    ``(B) Section 805(a)(5) (relating to operations 
                loss deduction).
                    ``(C) Section 832(c)(5) (relating to certain 
                capital losses).
            ``(2) The items referred to in--
                    ``(A) section 803(a)(1) (relating to gross amount 
                of premiums and other considerations),
                    ``(B) section 803(a)(2) (relating to net decrease 
                in reserves),
                    ``(C) section 805(a)(2) (relating to net increase 
                in reserves), and
                    ``(D) section 832(b)(4) (relating to premiums 
                earned on insurance contracts),
        shall be taken into account only to the extent they are in 
        respect of any reinsurance or the issuing of any insurance or 
        annuity contract described in subsection (a)(1).
            ``(3) All items of income, expenses, losses, and deductions 
        shall be properly allocated or apportioned under regulations 
        prescribed by the Secretary.''
    (b) Repeal of Export Trade Corporation Provisions.--Subpart G of 
part III of subchapter N of chapter 1 of such Code (relating to export 
trade corporations) is hereby repealed.
    (c) Conforming Amendments to Subpart F.--
            (1) Subparagraph (A) of section 955(a)(1) of such Code is 
        amended by inserting ``(as in effect for taxable years 
        beginning before 1987)'' after ``section 954(b)(2)''.
            (2) Subsection (b) of section 955 of such Code is amended 
        by striking ``within the meaning of section 954(d)(3)'' and 
        inserting ``within the meaning of section 964(a)''.
            (3) Paragraph (2) of section 956(c) of such Code is 
        amended--
                    (A) by striking ``section 953(a)(1)'' in 
                subparagraph (E) and inserting ``section 953(c)(1)'', 
                and
                    (B) by inserting ``(as in effect on the day before 
                the date of the enactment of this parenthetical) or 
                under section 952(a)(1)'' after ``section 952(b)'' in 
                subparagraph (H).
            (4) Subsection (b) of section 957 of such Code is amended--
                    (A) by striking ``income described in section 
                953(a)'' and inserting ``subpart F income attributable 
                to income described in section 953(c)'', and
                    (B) by striking ``section 953(a)(1)'' and inserting 
                ``section 953(c)(1)''.
            (5) Subsection (b) of section 958 of such Code is amended--
                    (A) by striking ``954(d)(3), 956(b)(2), and 957'' 
                and inserting ``956(b)(2), 957, and 964(a)'', and
                    (B) by striking ``954(d)(3)'' the second place it 
                appears and inserting ``964(a)''.
            (6) Subsection (b) of section 959 of such Code is amended 
        by striking ``be also included in the gross income'' and 
        inserting ``be also included in the subpart F income''.
            (7) Subsection (a) of section 964 of such Code is amended 
        to read as follows:
    ``(a) Related Person.--For purposes of this part, a person is a 
related person with respect to a controlled foreign corporation, if--
            ``(1) such person is an individual, corporation, 
        partnership, trust, or estate which controls, or is controlled 
        by, the controlled foreign corporation, or
            ``(2) such person is a corporation, partnership, trust, or 
        estate which is controlled by the same person or persons which 
        control the controlled foreign corporation.
For purposes of the preceding sentence, control means, with respect to 
a corporation, the ownership, directly or indirectly, of stock 
possessing more than 50 percent of the total voting power of all 
classes of stock entitled to vote or of the total value of stock of 
such corporation. In the case of a partnership, trust, or estate, 
control means the ownership, directly or indirectly, more than 50 
percent (by value) of the beneficial interests in such partnership, 
trust, or estate. For purposes of this paragraph, rules similar to the 
rules of section 958 shall apply.''
            (8) Section 964 of such Code is amended by striking 
        subsection (b).
            (9) The table of sections for subpart F of part III of 
        subchapter N of chapter 1 of such Code is amended by striking 
        the items relating to sections 952, 953 and 954 and inserting 
        the following:

                              ``Sec. 952. Subpart F income.
                              ``Sec. 953. Special rules for certain 
                                        insurance companies.''
    (f) Other Conforming Amendments.--
            (1) Paragraph (2) of section 552(c) of such Code is 
        amended--
                    (A) by amending subparagraph (A) to read as 
                follows:
                    ``(A) is received from a related person which (i) 
                is a corporation created or organized under the laws of 
                the same foreign country under the laws of which the 
                foreign corporation involved was created or organized, 
                and (ii) has a substantial part of its assets used in 
                its trade or business located in such same foreign 
                country, and'', and
                    (B) by striking ``954(d)(3)'' and inserting 
                ``964(a)''.
            (2) Subparagraph (B) of section 861(c)(2) of such Code is 
        amended by striking ``954(d)(3)'' and inserting ``964(a)''.
            (3) Subparagraph (A) of section 864(d)(5) of such Code is 
        amended by striking clauses (ii), (iii), and (iv).
            (4) Subparagraph (A) of section 881(c)(5) of such Code is 
        hereby repealed.
            (5) Subparagraph (D) of section 884(d)(2) of such Code is 
        amended by striking ``953(c)(3)(C)'' and inserting 
        ``953(a)(3)(C)''.
            (6) Subparagraph (A) of section 898(b)(3) of such Code is 
        amended--
                    (A) by striking ``953(c)(2)'' and inserting 
                ``953(a)(2)'', and
                    (B) by striking ``953(c)(1) and inserting 
                ``953(a)(1)''.
            (7) Clause (i) of section 904(d)(2)(A) of such Code is 
        amended by inserting ``, as in effect on the day before the 
        date of the repeal of such section'' after ``section 954(c)''.
            (8) Subclause (III) of section 904(d)(2)(C)(ii) of such 
        Code is amended by striking ``953(a)'' and inserting 
        ``953(c)''.
            (9) Subparagraph (D) of section 904(d)(2) of such Code is 
        amended--
                    (A) by inserting ``, as in effect on the day before 
                the date of the repeal of such section'' after 
                ``954(f)'', and
                    (B) by inserting ``or passive income'' before the 
                period at the end thereof.
            (10) Subparagraph (H) of section 904(d)(2) of such Code is 
        amended by striking ``954(d)(3)'' and inserting ``964(a)''.
            (11) Subparagraph (E) of section 904(d)(3) of such Code is 
        hereby repealed.
            (12) Subparagraph (C) of section 988(a)(3) of such Code is 
        amended by striking ``954(d)(3)'' and inserting ``964(a)''.
            (13) Subsection (c) of section 999 of such Code is 
        amended--
                    (A) by striking ``, 952(a)(3),'' in paragraph (1), 
                and
                    (B) by striking ``, the addition to subpart F 
                income under section 952(a)(3),'' in paragraph (2).
            (14) Subsection (a) of section 6046 of such Code is amended 
        by striking ``953(c)'' and inserting ``953(a)''.
            (15) The table of subparts for part III of subchapter M of 
        chapter 1 of such Code is amended by striking the item relating 
        to subpart G.
    (g) Effective Date.--The amendments made by this section shall 
apply to taxable years of controlled foreign corporations beginning 
after December 31, 1995, and to the taxable years of United States 
shareholders with which (or in which) such taxable years of controlled 
foreign corporations end.

SEC. 109. EXTENSION OF STATUTE OF LIMITATIONS FOR CERTAIN FOREIGN-
              RELATED DEFICIENCIES.

    (a) General Rule--Subsection (c) of section 6501 of the Internal 
Revenue Code of 1986 (relating to limitations on assessment and 
collection) is amended by adding at the end thereof the following new 
paragraph:
            ``(10) Certain foreign-related deficiencies.--
                    ``(A) In general.--If, before the expiration of the 
                time prescribed by this section for the assessment of 
                any foreign-related deficiency (determined with regard 
                to extensions under paragraph (4))--
                            ``(i) the Secretary determines that such 
                        deficiency cannot be accurately assessed before 
                        the expiration of such period by reason of 
                        delay or other actions of the taxpayer which 
                        prevented the timely assessment of such 
                        deficiency, and
                            ``(ii) The Secretary sends by certified or 
                        registered mail a notice of such determination 
                        to the taxpayer,
                the Secretary may extend the period during which such 
                deficiency may be assessed by an additional period of 
                not more than 3 years. Not more than 1 extension may be 
                made under the preceding sentence with respect to any 
                deficiency.
                    ``(B) Foreign-related deficiency.--For purposes of 
                subparagraph (A), the term `foreign-related deficiency' 
                means--
                            ``(i) any deficiency of a domestic 
                        corporation which is 25-percent foreign-owned 
                        to the extent such deficiency is attributable 
                        to a transaction directly or indirectly with a 
                        related party who is a foreign person, and
                            ``(ii) any deficiency of a foreign 
                        corporation with respect to the taxes imposed 
                        pursuant to sections 882 and 884.
                    ``(C) Judicial proceedings.--
                            ``(i) Review.--Notwithstanding any law or 
                        rule of law, any taxpayer to which a notice of 
                        a determination under subparagraph (A) has been 
                        mailed shall have the right to begin a 
                        proceeding to review such determination not 
                        later than the 90th day after the day on which 
                        such notice was mailed. If such a proceeding is 
                        not begun on or before such 90th day, such 
                        determination by the Secretary shall be binding 
                        and shall not be reviewed by any court.
                            ``(ii) Jurisdiction.--The United States 
                        district court for the district in which the 
                        taxpayer resides or is found shall have 
                        jurisdiction to hear any proceeding brought 
                        under clause (i). Any order or other 
                        determination in such a proceeding shall be 
                        treated as a final order which may be appealed.
                            ``(iii) Suspension of statute of 
                        limitations.--If the taxpayer brings a 
                        proceeding under clause (i), the running of any 
                        period of limitations under this section or 
                        section 6531 with respect to the deficiency to 
                        which the proceeding relates shall be suspended 
                        for the period beginning on the date on which 
                        the notice under subparagraph (A) was mailed 
                        and ending on the date on which there is a 
                        final determination in the proceeding. In no 
                        event shall any such period expire before the 
                        90th day after the day on which there is a 
                        final determination in such proceeding.
                    ``(D) Definitions.--For purposes of this paragraph, 
                the terms `25-percent foreign-owned', `foreign person', 
                and `related party' have the respective meanings given 
                such terms by section 6038A(c).''
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to any deficiency--
            (1) for any taxable year ending after the date of the 
        enactment of this Act, or
            (2) any taxable year ending on or before such date of 
        enactment if the period during which such deficiency may be 
        assessed under section 6501 of the Internal Revenue Code of 
        1986 (determined without regard to the amendments made by 
        subsection (a)) has not expired before such date of the 
        enactment.

              TITLE II--AGRICULTURAL AND GRAZING SUBSIDIES

SEC. 201. PAYMENT LIMITATIONS UNDER FARM COMMODITY PROGRAMS.

    Section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308) is 
amended--
            (1) in paragraph (1)--
                    (A) by striking ``(A)''; and
                    (B) by striking subparagraph (B); and
            (2) in paragraph (2), by striking ``$250,000'' and 
        inserting ``$50,000''.

SEC. 202. REPEAL OF TITLE III OF AGRICULTURAL TRADE ACT OF 1978.

    Title III of the Agricultural Trade Act of 1978 (7 U.S.C. 5651 et 
seq.) is repealed.

SEC. 203. ELIMINATION OF TOBACCO PRICE SUPPORT AND PRODUCTION 
              ADJUSTMENT PROGRAMS.

    (a) Price Support Program.--
            (1) Parity price support.--Section 101 of the Agricultural 
        Act of 1949 (7 U.S.C. 1441) is amended--
                    (A) in the first sentence of subsection (a), by 
                striking ``tobacco (except as otherwise provided 
                herein), corn,'' and inserting ``corn'';
                    (B) by striking subsection (c); and
                    (C) in subsection (d)(3)--
                            (i) by striking ``, except tobacco,''; and
                            (ii) by striking ``and no price support 
                        shall be made available for any crop of tobacco 
                        for which marketing quotas have been 
                        disapproved by producers;''.
            (2) No net cost provisions.--Sections 106, 106A, and 106B 
        of such Act (7 U.S.C. 1445, 1445-1, and 1445-2) are repealed.
            (3) Definition of basic agricultural commodity.--Section 
        408(c) of such Act (7 U.S.C. 1428(c)) is amended by striking 
        ``tobacco,''.
            (4) Review of burley tobacco imports.--Section 3 of Public 
        Law 98-59 (7 U.S.C. 625) is repealed.
            (5) Powers of commodity credit corporation.--Section 5(a) 
        of the Commodity Credit Corporation Charter Act (15 U.S.C. 
        714c(a)) is amended by inserting after ``agricultural 
        commodities'' the following: ``(other than tobacco)''.
    (b) Acreage Allotments and Marketing Quotas.--
            (1) Declaration of policy.--Section 2 of the Agricultural 
        Adjustment Act of 1938 (7 U.S.C. 1282) is amended by striking 
        ``tobacco,''.
            (2) Definitions.--Section 301(b) of such Act (7 U.S.C. 
        1301(b)) is amended--
                    (A) in paragraph (3), by striking subparagraph (C);
                    (B) in paragraph (6)(A), by striking ``tobacco,'';
                    (C) in paragraph (7), by striking the following:
                    ``Tobacco (flue-cured), July 1-June 30;
                    ``Tobacco (other than flue-cured), October 1-
                September 30;'';
                    (D) in paragraph (10), by striking subparagraph 
                (B);
                    (E) in paragraph (11)(B), by striking ``and 
                tobacco'';
                    (F) in paragraph (12), by striking ``tobacco,'';
                    (G) in paragraph (14)--
                            (i) by striking ``(A)''; and
                            (ii) by striking subparagraphs (B), (C), 
                        and (D);
                    (H) by striking paragraph (15); and
                    (I) in paragraph (16), by striking subparagraph 
                (B); and
            (3) Parity payments.--Section 303 of such Act (7 U.S.C. 
        1303) is amended by striking ``rice, or tobacco,'' and 
        inserting ``or rice,''.
            (4) Marketing quotas.--Part I of subtitle B of title III of 
        such Act (7 U.S.C. 1311-1314i) is repealed.
            (5) Administrative provisions.--Section 361 of such Act (7 
        U.S.C. 1361) is amended by striking ``tobacco,''.
            (6) Adjustment of quotas.--Section 371 of such Act (7 
        U.S.C. 1371) is amended--
                    (A) in subsection (a), by striking ``peanuts, or 
                tobacco'' and inserting ``or peanuts''; and
                    (B) in subsection (b), by striking ``peanuts or 
                tobacco'' and inserting ``or peanuts''.
            (7) Reports and records.--Section 373 of such Act (7 U.S.C. 
        1373) is amended--
                    (A) by striking ``peanuts, or tobacco'' each place 
                it appears in subsections (a) and (b) and inserting 
                ``or peanuts''; and
                    (B) in subsection (a)--
                            (i) in the first sentence, by striking 
                        ``all persons engaged in the business of 
                        redrying, prizing, or stemming tobacco for 
                        producers,''; and
                            (ii) in the last sentence, by striking 
                        ``$500;'' and all that follows through the 
                        period at the end of the sentence and inserting 
                        ``$500.''.
            (8) Regulations.--Section 375(a) of such Act (7 U.S.C. 
        1375(a)) is amended by striking ``peanuts, or tobacco'' and 
        inserting ``or peanuts''.
            (9) Eminent domain.--Section 378 of such Act (7 U.S.C. 
        1378) is amended--
                    (A) in the first sentence of subsection (c), by 
                striking ``cotton, tobacco, and peanuts'' and inserting 
                ``cotton and peanuts''; and
                    (B) by striking subsections (d), (e), and (f).
            (10) Burley tobacco farm reconstitution.--Section 379 of 
        such Act (7 U.S.C. 1379) is amended--
                    (A) in subsection (a)--
                            (i) by striking ``(a)''; and
                            (ii) in paragraph (6), by striking ``, but 
                        this clause (6) shall not be applicable in the 
                        case of burley tobacco''; and
                    (B) by striking subsections (b) and (c).
            (11) Acreage-poundage quotas.--Section 4 of Public Law 89-
        12 (7 U.S.C. 1314c note), is repealed.
            (12) Burley tobacco acreage allotments.--The Act of July 
        12, 1952 (7 U.S.C. 1315), is repealed.
            (13) Transfer of allotments.--Section 703 of Public Law 89-
        321 (7 U.S.C. 1316) is repealed.
    (c) Transition Provisions.--
            (1) Liability.--The amendments made by this section shall 
        not affect the liability of any person under any provision of 
        law as in effect before the date of the enactment of this Act.
            (2) Tobacco stocks and loans.--As soon as possible after 
        the date of the enactment of this Act, the Secretary of 
        Agriculture shall provide for--
                    (A) the orderly disposition of tobacco stocks; and
                    (B) the repayment of all tobacco price support 
                loans outstanding on such date by not later than one 
                year after such date.
            (3) Tobacco producer associations.--As soon as possible 
        after the date of the enactment of this Act, the Secretary of 
        Agriculture shall terminate all loan agreements entered into 
        with tobacco producer associations under section 106A of the 
        Agricultural Adjustment Act of 1938 and provide for the 
        disposal of all funds in the No Net Cost Tobacco Fund of those 
        associations and the No Net Cost Tobacco Account of the 
        Commodity Credit Corporation.
    (d) Prohibition on Subsequent Loans or Payments.--After the date of 
the enactment of this Act, the Secretary of Agriculture may not 
provide, using funds of the Commodity Credit Corporation or under the 
authority of any law, loans or price support payments for tobacco.

SEC. 204. REPEAL OF SECTION 203 OF AGRICULTURAL TRADE ACT OF 1978.

    Section 203 of the Agricultural Trade Act of 1978 (7 U.S.C. 5623) 
is repealed.

SEC. 205. GRAZING FEES AT FAIR MARKET VALUE.

    (a) In General.--Notwithstanding any other provision of law, the 
Secretary of Agriculture, with respect to National Forest lands in the 
16 contiguous Western States (except National Grasslands) administered 
by the United States Forest Service where domestic livestock grazing is 
permitted under applicable law, and the Secretary of the Interior with 
respect to public domain lands administered by the Bureau of Land 
Management where domestic livestock grazing is permitted under 
applicable law, shall establish beginning with the grazing season which 
commences on March 1, 1996, an annual domestic livestock grazing fee 
equal to fair market value.
    (b) Nonapplicability of Executive Order.--Executive Order No. 
12548, dated February 14, 1986, shall not apply to grazing fees 
established pursuant to this Act.

      TITLE III--AEROSPACE AND HIGH-TECHNOLOGY INDUSTRY SUBSIDIES

SEC. 301. TERMINATION OF FEDERAL ASSISTANCE FOR SEMATECH.

    Section 272 of the National Defense Authorization Act for Fiscal 
Years 1988 and 1989 (15 U.S.C. 4602) is amended by striking subsection 
(d) and inserting the following new subsection:
    ``(d) Termination of Grant Authority.--After September 30, 1998, 
the Secretary of Defense may not make grants to Sematech under the 
authority of this section.''.

SEC. 302. TERMINATION OF FEDERAL ASSISTANCE UNDER DEFENSE TECHNOLOGY 
              REINVESTMENT PROGRAMS.

    (a) Termination.--(1) Subchapter II of chapter 148 of title 10, 
United States Code, is amended by inserting after section 2503 the 
following new section:
``Sec. 2504. Termination of authority to provide assistance
    ``(a) Termination of Authority.--After September 30, 1998, the 
Secretary of Defense may not make grants, enter into contracts or 
cooperative agreements, or otherwise provide assistance under the 
authority of the defense technology reinvestment programs described in 
subsection (b).
    ``(b) Defense Technology Reinvestment Programs Covered.--The 
defense technology reinvestment programs covered by subsection (a) are 
as follows:
            ``(1) Defense dual-use critical technology partnerships 
        under section 2511 of this title.
            ``(2) Commercial-military integration partnerships under 
        section 2512 of this title.
            ``(3) Defense regional technology alliances under section 
        2513 of this title.
            ``(4) Defense advanced manufacturing technology 
        partnerships under section 2522 of this title.
            ``(5) The manufacturing extension program under section 
        2523 of this title.
            ``(6) The defense dual-use extension program under section 
        2524 of this title, including the loan guarantee authority 
        provided by subsection (b)(3) of such section.
            ``(7) The Federal Defense Laboratory Diversification 
        Program under section 2519 of this title.
            ``(8) The Navy Reinvestment Program under section 2520 of 
        this title.
            ``(9) The maritime technology development program under 
        section 1352(c)(2) of the National Shipbuilding and Shipyard 
        Conversion Act of 1993 (subtitle D of title XIII of Public Law 
        103-160; 10 U.S.C. 2501 note).
            ``(10) The agile manufacturing/enterprise integration 
        program.
            ``(11) The advanced materials synthesis and processing 
        partnership program.''.
    (2) The table of sections at the beginning of such subchapter is 
amended by inserting after the item relating to section 2503 the 
following new item:

                              ``2504. Termination of authority to 
                                        provide assistance.''.
    (b) Conforming Amendments.--
            (1) Defense manufacturing engineering education grants.--
        Section 2196 of such title is amended by adding at the end the 
        following new subsection:
    ``(l) Termination of Grant Authority.--After September 30, 1998, 
the Secretary of Defense may not make grants under the authority of 
this section.''.
            (2) Management training program in japanese language and 
        culture.--Section 2198 of such title is amended by adding at 
        the end the following new subsection:
    ``(d) After September 30, 1998, the Secretary of Defense may not 
make grants under the authority of this section.''.

SEC. 303. SPACE STATION PROGRAM.

    The United States shall not obligate any funds for the space 
station program, except as necessary to terminate the program in an 
orderly manner.

               TITLE IV--NATIONAL PARKS CONCESSION REFORM

SEC. 401. FINDINGS.

    The Congress finds that the right to provide public accommodations, 
facilities, and services within the national park system should be 
based on competitive bidding without preferences which may result in 
subsidies to existing concession contract holders or permittees and 
that minimum franchise fees should be established for all businesses 
operating within the national park system.

SEC. 402. DEFINITIONS.

    As used in this title:
            (1) The term ``concessioner'' means a person, corporation, 
        or other entity to whom a concessions contract has been 
        awarded.
            (2) The term ``concessions contract'' means a contract or 
        permit authorizing any person to provide facilities or 
        services, or both, at a park.
            (3) The term ``facilities'' means improvements to real 
        property within a park used to provide accommodations, 
        facilities, or services to park visitors.
            (4) The term ``park'' means a unit of the National Park 
        System.
            (5) The term ``proposal'' means the complete proposal for a 
        concessions contract offered by a potential or existing 
        concessioner in response to the minimum requirements for the 
        contract established by the Secretary.
            (6) The term ``Secretary'' means the Secretary of the 
        Interior.

SEC. 403. REPEAL OF CONCESSIONS POLICY ACT OF 1965.

    The Act of October 9, 1965, Public Law 89-249 (79 Stat. 969, 16 
U.S.C. 20-20g), entitled ``An Act relating to the establishment of 
concession policies administered in the areas administered by the 
National Park Service and for other purposes'', is hereby repealed. The 
repeal of such Act shall not affect the validity of any contract 
entered into under such Act, but the provisions of this Act shall apply 
to any such contract except to the extent such provisions are 
inconsistent with the express terms and conditions of the contract.

SEC. 404. CONCESSIONS POLICY.

    Upon a determination by the Secretary that facilities or services 
are necessary and appropriate for the accommodation of visitors at a 
park, the Secretary shall, consistent with the provisions of this Act, 
laws relating generally to the administration and management of units 
of the National Park System, and the park's general management plan, 
concessions plan, or other applicable plans, authorize private persons, 
corporations, or other entities to provide and operate such facilities 
or services as the Secretary deems necessary and appropriate.

SEC. 405. COMPETITIVE SELECTION PROCESS.

    (a) In General.--(1) Except as provided in subsection (b), and 
consistent with the provisions of subsection (g), any concessions 
contract entered into pursuant to this Act shall be awarded to the 
person submitting the best proposal as determined by the Secretary, 
through a competitive selection process.
    (2) Within 180 days after the date of enactment of this Act, the 
Secretary shall promulgate appropriate regulations establishing such 
process. The regulations shall include provisions for establishing a 
method or procedure for the resolution of disputes between the 
Secretary and a concessioner in those instances where the Secretary has 
been unable to meet conditions or requirements or provide such 
services, if any, as set forth in a prospectus pursuant to subsections 
(b).
    (b) Prospectus.--(1) Prior to soliciting proposals for a 
concessions contract at a park, the Secretary shall publish a notice of 
availability for a prospectus soliciting proposals at least once in 
local or national newspapers or trade publications, as appropriate, and 
shall make such prospectus available upon request to all interested 
parties.
    (2) The prospectus shall include, but need not be limited to, the 
following information:
            (A) The minimum requirements for such contract, as set 
        forth in subsection (c).
            (B) The terms and conditions of the existing concessions 
        contract awarded for such park, if any, including all fees and 
        other forms of compensation provided to the United States by 
        the concessioner.
            (C) Other authorized facilities or services which may be 
        provided in a proposal.
            (D) Facilities and services to be provided by the Secretary 
        to the concessioner, if any, including but not limited to, 
        public access, utilities, and buildings.
            (E) Minimum public services to be offered within a park by 
        the Secretary, including but not limited to, interpretive 
        programs, campsites, and visitor centers.
            (F) Such other information related to the proposed 
        concessions operation as is not privileged or otherwise exempt 
        from disclosure under Federal law as the Secretary determines 
        is necessary to allow for the submission of competitive 
        proposals.
    (c) Minimum Proposal Requirements.--(1) No proposal shall be 
considered which fails to meet the minimum requirements as determined 
by the Secretary. Such minimum requirements shall include, but need not 
be limited to, the minimum acceptable franchise fee, the duration of 
the contract, facilities, services, or capital investment required to 
be provided by the concessioner, and measures needed to ensure the 
protection and preservation of park resources.
    (2) The Secretary may reject any proposal, notwithstanding the 
amount of franchise fee offered, if the Secretary determines that the 
person, corporation, or entity is not qualified, is likely to provide 
unsatisfactory service, or that the proposal is not responsive to the 
objectives of protecting and preserving park resources and of providing 
necessary and appropriate facilities or services to the public at 
reasonable rates.
    (3) If all proposals submitted to the Secretary either fail to meet 
the minimum requirements or are rejected by the Secretary, the 
Secretary shall establish new minimum contract requirements and re-
initiate the competitive selection process pursuant to this section.
    (d) Selection of Best Proposal.--In selecting the best proposal, 
the Secretary shall consider the following principal factors:
            (1) The proposed franchise fee.
            (2) The responsiveness of the proposal to the objectives of 
        protecting and preserving park resources and of providing 
        necessary and appropriate facilities and services to the public 
        at reasonable rates.
            (3) The experience and related background of the person, 
        corporation, or entity submitting the proposal.
            (4) The financial capability of the person, corporation, or 
        entity submitting the proposal.
            (5) Such secondary factors as the Secretary deems 
        appropriate.
    (e) No Preferential Rights Renewal.--The Secretary shall not grant 
a preferential right to a concessioner to renew a concessions contract 
executed pursuant to this Act. The Secretary shall not grant a 
preferential right to a concessioner to provide new or additional 
services at a park.

SEC. 406. FRANCHISE FEES.

    (a) In General.--Franchise fees, however stated, shall not be less 
than the minimum fee established by the Secretary for each contract. 
The minimum fee shall be determined in a manner that will provide the 
concessioner with a reasonable opportunity to realize a profit on the 
operation as a whole, commensurate with the capital invested and the 
obligations assumed.
    (b) Multiple Contracts Within a Park.--If multiple concessions 
contracts are awarded to authorize concessioners to provide the same or 
similar outfitting, guide, river running, or other similar services at 
the same approximate location or resource within a specific park, the 
Secretary shall establish an identical franchise fee for all such 
contracts. Such fee shall reflect fair market value, as determined by 
the Secretary.

SEC. 407. DURATION OF CONTRACT.

    A concessions contract entered into pursuant to this Act shall be 
awarded for a term not to exceed 10 years.

SEC. 408. TRANSFER OF CONTRACT.

    No concessions contract may be transferred, assigned, sold, or 
otherwise conveyed by a concessioner without prior written notification 
to, and approval of the Secretary. The Secretary shall not approve the 
transfer of a concessions contract to any individual, corporation or 
other entity if the Secretary determines that--
            (1) such individual, corporation or entity is, or is likely 
        to be, unable to completely satisfy all of the requirements, 
        terms, and conditions of the contract; or
            (2) such transfer, assignment, sale or conveyance is not 
        consistent with the objectives of protecting and preserving 
        park resources, and of providing necessary and appropriate 
        facilities or services to the public at reasonable rates.

SEC. 409. STRUCTURES AND FACILITIES.

    (a) Existing Structures.--(1) A concessioner who before the date of 
the enactment of this Act has acquired or constructed, or is required 
under an existing concessions contract to commence acquisition or 
construction of any structure, fixture, or improvement upon land owned 
by the United States within a park, pursuant to a concessions contract, 
shall have a possessory interest therein, to the extent provided by 
such contract.
    (2) The provisions of this subsection shall not apply to a 
concessioner whose contract in effect on the date of enactment of this 
Act does not include recognition of a possessory interest.
    (3) For any concessions contract entered into on or after the date 
of enactment of this Act, the provisions of subsection (b) shall apply 
to any existing structure, fixture, or improvement as defined in 
paragraph (1), except that the value of the possessory interest as of 
the termination date of the first contract expiring after the date of 
enactment of this Act shall be used as the basis for depreciation, in 
lieu of the actual original cost of such structure, fixture, or 
improvement.
    (b) New Structures.--(1) On or after the date of enactment of this 
Act, if a concessioner constructs or acquires a new, additional, or 
replacement structure, fixture, or improvement upon land owned by the 
United States within a park, pursuant to a concessions contract, title 
to any such structure, fixture, or improvement shall be vested in the 
United States but the concessioner shall have an interest in such 
structure, fixture, or improvement equivalent to the actual original 
cost of acquiring or constructing such structure, fixture, or 
improvement, less straight line depreciation over the estimated useful 
life of the asset according to Generally Accepted Accounting 
Principles. In no event shall the estimated useful life of such asset 
exceed the depreciation period used for such asset for Federal income 
tax purposes.
    (2) When any contract expires or is terminated, the concessioner 
shall be entitled to receive from the United States or the successor 
concessioner payment equal to the remaining value, if any, of the 
concessioner's interest in any structure, fixture, or improvement at 
the time of such termination or expiration. A successor concessioner 
may not revalue the interest in such structure, fixture, or 
improvement, the method of depreciation, or the estimated useful life 
of the asset.
    (c) Insurance, Maintenance and Repair.--Nothing in this section 
shall affect the obligation of a concessioner to insure, maintain, and 
repair any structure, fixture, or improvement assigned to such 
concessioner and to insure that such structure, fixture, or improvement 
fully complies with applicable safety and health laws and regulations.

SEC. 410. RECORDKEEPING REQUIREMENTS.

    (a) In General.--Each concessioner shall keep such records as the 
Secretary may prescribe to enable the Secretary to determine that all 
terms of the concessioner's contract have been, and are being 
faithfully performed, and the Secretary or any of the Secretary's duly 
authorized representatives shall, for the purpose of audit and 
examination, have access to such records and to other books, documents 
and papers of the concessioner pertinent to the contract and all the 
terms and conditions thereof as the Secretary deems necessary.
    (b) General Accounting Office Review.--The Comptroller General of 
the United States or any of his or her duly authorized representatives 
shall, until the expiration of five calendar years after the close of 
the business year for each concessioner, have access to and the 
right to examine any pertinent books, documents, papers, and records of 
the concessioner related to the contracts or contracts involved.

SEC. 411. EXEMPTION FROM CERTAIN LEASE REQUIREMENTS.

    The provisions of section 321 of the Act of June 30, 1932 (47 Stat. 
412; 40 U.S.C. 303b), relating to the leasing of buildings and 
properties of the United States, shall not apply to contracts awarded 
by the Secretary pursuant to this Act.

SEC. 412. EFFECTIVE DATE.

    This title shall take effect on October 1, 1995.

               TITLE V--MISCELLANEOUS INDUSTRY SUBSIDIES

SEC. 501. FAIR MARKET VALUE SALES OF PETROLEUM FROM NAVAL PETROLEUM 
              RESERVES.

    Section 7430 of title 10, United States Code, is amended by 
striking subsection (b) and inserting the following new subsection:
    ``(b) Notwithstanding any other provision of law, each sale of the 
United States share of petroleum produced from the naval petroleum 
reserves shall be made by the Secretary to the highest qualified bidder 
at a price not less than the prevailing local market price of 
comparable petroleum. Each sale shall be open to the public and shall 
be conducted at such times, after such advertising, and involve such 
amounts of petroleum as the Secretary considers proper, without regard 
to Federal, State, or local regulations controlling sales or allocation 
of petroleum products. Each sale of the United States share of 
petroleum shall be for periods of not more than one year, except that a 
sale of natural gas may be made for a period of more than one year.''.

SEC. 502. TOKAMAK PHYSICS EXPERIMENT PROGRAM.

    The United States shall not obligate any funds for the Tokamak 
Physics Experiment program of the Department of Energy, except as 
necessary to terminate the program in an orderly manner.

SEC. 503. ELIMINATION OF FUNDING FOR HIGHWAY DEMONSTRATION PROJECTS.

    (a) Repeal of Authorization of Appropriations.--Sections 1103(b), 
1104(b), 1105(f), 1106(a)(2), 1106(b)(2), 1107(b), and 1108(b) of the 
Intermodal Surface Transportation Efficiency Act of 1991 (105 Stat. 
2027-2063) are each amended by striking ``through 1997'' and inserting 
``through 1995''.
    (b) Conforming Amendments.--Sections 1103(c), 1104(c), 1105(g)(2), 
1106(a)(3), 1106(b)(3), 1107(c), and 1108(c) of such Act are each 
amended by striking ``1995, 1996, and 1997'' and inserting ``and 
1995''.

SEC. 504. USE OF FEES FROM GAMING ACTIVITIES TO FUND NATIONAL INDIAN 
              GAMING COMMISSION.

    (a) Increase in Cap on Amounts Collected.--Section 18(a)(2)(B) of 
the Indian Gaming Regulatory Act (25 U.S.C. 2717(a)(2)(B)) is amended 
by striking ``$1,500,000'' and inserting ``$3,000,000''.
    (b) Authorization of Appropriations.--
            (1) In general.--Section 19 of the Indian Gaming Regulatory 
        Act (25 U.S.C. 2718) is amended to read as follows:

                    ``restrictions on appropriations

    ``Sec. 19. Except as provided in section 18, amounts may not be 
appropriated for or otherwise made available for the operation of the 
Commission.''.
            (2) Effective date.--The amendment made be paragraph (1) 
        shall take effect 90 days after the date of the enactment of 
        this Act and amounts appropriated or otherwise made available 
        for the National Indian Gaming Commission (other than amounts 
        made available under section 18 of the Indian Gaming Regulatory 
        Act (25 U.S.C. 2717) may not be obligated after such 90 days.

SEC. 505. REDUCTION OF OUTSTANDING LOAN, GUARANTEE, AND INSURANCE 
              AUTHORITY OF THE EXPORT-IMPORT BANK OF THE UNITED STATES.

    (a) In General.--Section 6(a) of the Export-Import Bank Act of 1945 
(12 U.S.C. 635e(a)) is amended by striking ``$75,000,000,000'' and 
inserting ``$37,500,000,000''.
    (b) Authority to Impose Financing Fees Based on Credit Risk.--
Section 2 of the Export-Import Bank Act of 1945 (12 U.S.C. 635) is 
amended by adding at the end the following:
    ``(f) Imposition of Financing Fees Based on Credit Risk.--The Bank 
shall charge and collect a fee for the provision of a guarantee, the 
provision of insurance, the extension of credit, or the participation 
of the Bank in an extension of credit, under this Act, which shall be--
            ``(1) based on the credit risk associated with the 
        transaction involved; and
            ``(2) not less than the fee that would be charged for 
        similar purposes in an arms-length transaction in the private 
        sector.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on October 1, 1995.

SEC. 506. ABOLITION OF OVERSEAS PRIVATE INVESTMENT CORPORATION.

    (a) Abolition.--The Overseas Private Investment Corporation is 
abolished, effective October 1, 1995.
    (b) Administration of Existing Obligations.--The Secretary of State 
shall carry out the functions performed on September 30, 1995, by the 
Overseas Private Investment Corporation only for purposes of 
administering insurance, reinsurance, financing, and other contracts or 
agreements issued or entered into by the Corporation that are effective 
on October 1, 1995. Such functions shall terminate when all such 
insurance, reinsurance, financing, and other contracts or agreements 
expire.
    (c) Termination of Provisions.--Title IV of chapter 2 of part I of 
the Foreign Assistance Act of 1961 (22 U.S.C. 2191 and following) shall 
cease to be effective on October 1, 1995, except that such title shall 
continue in effect with respect to the functions performed by the 
Secretary of State under subsection (b).
    (d) Termination of Affairs.--The Director of the Office of 
Management and Budget shall take the necessary steps to terminate the 
affairs of the Overseas Private Investment Corporation.

SEC. 507. TERMINATION OF NUCLEAR WEAPONS ACTIVITIES.

    The United States may not obligate, in fiscal year 1996 or any 
fiscal year thereafter, any funds for activities of the Department of 
Energy described under the heading ``Weapons Activities'' under 
``Atomic Energy Defense Activities'' in title III of the Energy and 
Water Development Appropriations Act, 1995 (Public Law 103-316; 108 
Stat. 1717), except to the extent necessary to terminate such 
activities in an orderly manner.

SEC. 508. FOSSIL AND NUCLEAR RESEARCH AND DEVELOPMENT.

    The United States shall not obligate any funds for carrying out 
fossil and nuclear energy research and development for any fiscal year 
after fiscal year 1997.

SEC. 509. REQUIREMENTS RELATING TO RECOUPMENT OF NONRECURRING COSTS FOR 
              CERTAIN SALES OF MAJOR DEFENSE EQUIPMENT.

    (a) Recoupment of Costs in Commercial Export Sales.--
            (1) In general.--Section 38 of the Arms Export Control Act 
        (22 U.S.C. 2778) is amended by adding at the end the following 
        new subsection:
    ``(i)(1) Any sale involving the export of major defense equipment 
pursuant to a license or other approval granted under this section 
shall include an appropriate charge for a proportionate amount of the 
nonrecurring costs incurred by the United States in the research, 
development, and production of such equipment. Such charge shall be 
comparable to the charge imposed pursuant to section 21(e)(1)(B) of 
this Act relating to government-to-government sales of major defense 
equipment.
    ``(2) The charge provided for in paragraph (1) shall not apply with 
respect to major defense equipment that is at least 90 percent paid for 
from funds transferred under section 503(a)(3) of the Foreign 
Assistance Act of 1961 or from funds made available on a grant or other 
nonrepayable basis under section 23 of this Act.''.
            (2) Effective date.--Section 38(i) of the Arms Export 
        Control Act, as added by paragraph (1), applies with respect to 
        major defense equipment sold pursuant to a contract entered 
        into on or after the date of the enactment of this Act.
    (b) Elimination of Authority To Reduce or Waive Charges for Costs 
in Foreign Military Sales for NATO Member Countries and Certain Other 
Countries.--Paragraph (2) of section 21(e) of such Act (22 U.S.C. 
2761(e)) is repealed.

                       TITLE VI--EFFECTIVE DATES

SEC. 601. EFFECTIVE DATES.

    Except as otherwise specified in this Act, the amendments made by 
this Act shall take effect on October 1, 1995.
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