[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 805 Introduced in House (IH)]







104th CONGRESS
  1st Session
                                H. R. 805

To provide for the creation of jobs in America, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            February 2, 1995

   Mr. Owens (for himself, Mr. Sanders, Mr. Brown of California, Mr. 
 Conyers, Mr. Dellums, Mr. Hastings of Florida, Mr. Hinchey, Mrs. Mink 
  of Hawaii, and Mr. Watt of North Carolina) introduced the following 
  bill; which was referred to the Committee on Ways and Means and, in 
   addition, to the Committees on Transportation and Infrastructure, 
Banking and Financial Services, Economic and Educational Opportunities, 
     Commerce, and Appropriations, 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 provide for the creation of jobs in America, 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.

    (a) Short Title.--This Act may be cited as the ``Job Creation and 
Invest in America Act of 1995''.
    (b) Table of Contents.--

Sec. 1. Short title.
                  TITLE I--PHYSICAL CAPITAL INVESTMENT

                 Subtitle A--Highways and Mass Transit

Sec. 1001. Highway programs.
Sec. 1002. Federal Transit Act programs.
                          Subtitle B--Airports

Sec. 1101. Airport improvement program.
                         Subtitle C--Railroads

Sec. 1201. Local rail freight assistance.
           Subtitle D--Water and Sewage Treatment Facilities

Sec. 1301. State water pollution control revolving funds.
                 Subtitle E--Environmental Restoration

Sec. 1401. Environmental restoration at facilities of the Department of 
                            Defense and Department of Energy.
              Subtitle F--Community Development Assistance

             Chapter 1--Community Development Block Grants

Sec. 1501. Authorization of appropriations.
       Chapter 2--Community Banking and Economic Empowerment Act

Sec. 1511. Short title.
Sec. 1512. Authority of secretary.
Sec. 1513. Eligible community development lenders.
Sec. 1514. Capital and operating assistance for community development 
                            lenders.
Sec. 1515. Requirements of assisted community development lenders.
Sec. 1516. Application and approval for assistance.
Sec. 1517. Assistance agreements.
Sec. 1518. Books, records, and audits.
Sec. 1519. Technical assistance for organizing and operating community 
                            development lenders.
Sec. 1520. Relationship to Community Reinvestment Act of 1977.
Sec. 1521. Reports to Congress.
Sec. 1522. Regulations.
Sec. 1523. Definitions.
Sec. 1524. Authorization of appropriations.
                  Subtitle G--Education Infrastructure

Sec. 1601. Short title.
Sec. 1602. Findings.
Sec. 1603. Purpose.
Sec. 1604. Definitions.
Sec. 1605. Improvement of public elementary and secondary education 
                            facilities program authorized.
Sec. 1606. Applications.
Sec. 1607. Authorized activities.
Sec. 1608. Requirements.
Sec. 1609. Contracts.
Sec. 1610. Technical assistance.
Sec. 1611. Federal assessment.
           Subtitle H--Renewable Energy and Energy Efficiency

Sec. 1701. Renewable energy.
Sec. 1702. Energy efficiency.
                   TITLE II--HUMAN CAPITAL INVESTMENT

                        Subtitle A--Job Training

Sec. 2001. Human capital investments in job training.
                         Subtitle B--Education

Sec. 2101. Educational personnel.
                         Subtitle C--Head Start

Sec. 2201. Amendments to the Head Start Act.
          Subtitle D--Programs Under Public Health Service Act

  Chapter 1--Funding Initiative for Programs Providing Health Services

Sec. 2301. Funding initiative.
              Chapter 2--Community Health Advisor Program

Sec. 2311. Short title.
Sec. 2312. Findings.
Sec. 2313. Formula grants regarding community health advisor programs.
Sec. 2314. Requirements regarding community health advisor programs.
Sec. 2315. Additional agreements.
Sec. 2316. Application for assistance; State plan.
Sec. 2317. Determination of amount of allotment.
Sec. 2318. Quality assurance; cost-effectiveness.
Sec. 2319. Evaluations; technical assistance.
Sec. 2320. Rule of construction regarding programs of indian health 
                            service.
Sec. 2321. Definitions.
Sec. 2322. Funding.
         TITLE III--AMENDMENTS OF INTERNAL REVENUE CODE OF 1986

Subtitle A--Reduction in Employee Payroll Taxes; Credit for First-Time 
                               Homebuyers

Sec. 3001. Credit for portion of social security taxes.
Sec. 3002. Credit for purchase of principal residence by first-time 
                            homebuyer.
                     Subtitle B--Revenue Increases

Sec. 3101. Stock transfer excise tax.
Sec. 3102. Repeal of preferential rate of tax on capital gains.
Sec. 3103. Repeal of credit for foreign taxes.
Sec. 3104. Repeal of deferral of income of controlled foreign 
                            corporations.
Sec. 3105. Use of formulaic approach under section 482.
Sec. 3106. Repeal of increase in basis of property acquired from a 
                            decedent.
Sec. 3107. Phasein of capital gains tax on inherited property.
Sec. 3108. Additional exclusion of gain on sale of principal residence 
                            acquired from a decedent.
                        TITLE IV--APPROPRIATIONS

Sec. 4001. Appropriations.
Sec. 4002. Designation as emergency requirement.

                  TITLE I--PHYSICAL CAPITAL INVESTMENT

                 Subtitle A--Highways and Mass Transit

SEC. 1001. HIGHWAY PROGRAMS.

    (a) Section 1003 of the Intermodal Surface Transportation 
Efficiency Act of 1991 (105 Stat. 1918-1922) is amended by adding at 
the end the following:
    ``(d) Additional Funding From HTF.--In addition to amounts made 
available by subsection (a), for the purpose of carrying out the 
provisions of title 23, United States Code, the following sums are 
authorized to be appropriated out of the Highway Trust Fund (other than 
the Mass Transit Account):
            ``(1) Interstate maintenance program.--For the interstate 
        maintenance program $3,500,000,000 for each of fiscal years 
        1995 and 1996.
            ``(2) Surface transportation program.--For the surface 
        transportation program $3,000,000,000 for each of fiscal years 
        1995 and 1996.
            ``(3) Bridge program.--For the bridge program 
        $3,500,000,000 for each of fiscal years 1995 and 1996.''.
    (b) Non-Applicability of Obligation Ceiling.--Funds authorized by 
the amendment made by subsection (a) shall not be subject to any 
obligation limitation.

SEC. 1002. FEDERAL TRANSIT PROGRAMS.

    (a) Authorization of Appropriations.--Section 5338 of title 49, 
United States Code, is amended by adding at the end the following:
    ``(m) Additional Funding.--
            ``(1) Formula grant programs.--
                    ``(A) From the trust fund.--There shall be 
                available from the Mass Transit Account of the Highway 
                Trust Fund to carry out section 5311 of this title 
                $125,000,000 for each of fiscal years 1995 and 1996. 
                Such sums shall remain available until expended.
                    ``(B) From general funds.--There are authorized to 
                be appropriated to carry out sections 5307 and 5336 of 
                this title $825,000,000 for each of fiscal years 1995 
                and 1996. Such sums shall remain available until 
                expended.
            ``(2) Discretionary grants and loans.--There shall be 
        available from the Mass Transit Account of the Highway Trust 
        Fund only to carry out section 5309 of this title $650,000,000 
        for each of fiscal years 1995 and 1996. Such sums shall remain 
        available until expended.''.
    (b) Contract Authority.--Section 5338(k) of such title is amended--
            (1) in paragraph (1) by striking ``or (e)'' and inserting 
        ``(e), (m)(1)(A), or (m)(2)''; and
            (2) in paragraph (2) by striking ``or (b)(2)'' and 
        inserting ``, (b)(2), or (m)(1)(B)''.
    (c) Special Needs of Elderly Persons and Persons With 
Disabilities.--Section 5338(j)(1) of such title is amended by striking 
``subsection (a)(2)'' and inserting ``subsections (a)(2) and 
(m)(1)(B)''.
    (d) Non-Applicability of Obligation Ceiling.--Funds authorized by 
the amendment made by subsection (a) shall not be subject to any 
obligation limitation.

                          Subtitle B--Airports

SEC. 1101. AIRPORT IMPROVEMENT PROGRAM.

    Section 48103 of title 49, United States Code, is amended by adding 
at the end the following: ``In addition to amounts made available by 
the preceding sentence, there shall be available to the Secretary for 
such grants (including grants for airport noise compatibility planning 
under such section 47505(a)(2)) and for carrying out noise 
compatibility programs or parts thereof under such section 47504(c) 
$1,000,000,000 for each of fiscal years 1995 and 1996.''.

                         Subtitle C--Railroads

SEC. 1201. LOCAL RAIL FREIGHT ASSISTANCE.

    (a) Authorization of Appropriations.--Section 22108(a)(1) of title 
49, United States Code, is amended by adding at the end the following:
            ``(C) $1,000,000,000 for the fiscal year ending September 
        30, 1995.
            ``(D) $1,000,000,000 for the fiscal year ending September 
        30, 1996.''.
    (b) Limitation on Appropriations.--Section 22108(a)(3) of such 
title is amended by striking ``after September 30, 1994'' and inserting 
``after September 30, 1996''.

           Subtitle D--Water and Sewage Treatment Facilities

SEC. 1301. STATE WATER POLLUTION CONTROL REVOLVING FUNDS.

    Section 607 of the Federal Water Pollution Control Act (33 U.S.C. 
1387) is amended--
            (1) by striking ``and'' at the end of paragraph (4);
            (2) by striking the period at the end of paragraph (5) and 
        inserting a semicolon; and
            (3) by adding at the end the following:
            ``(6) $4,000,000,000 for fiscal year 1995; and
            ``(7) $4,000,000,000 for fiscal year 1996.''.

                 Subtitle E--Environmental Restoration

SEC. 1401. ENVIRONMENTAL RESTORATION AT FACILITIES OF THE DEPARTMENT OF 
              DEFENSE AND DEPARTMENT OF ENERGY.

    (a) Authorization of Appropriations.--
            (1) Department of defense.--There is hereby authorized to 
        be appropriated to the Secretary of Defense for each of fiscal 
        years 1995 and 1996 for environmental restoration the 
        following:
                    (A) $1,000,000,000, for deposit into the Defense 
                Environmental Restoration Account established in 
                section 2703 of title 10, United States Code.
                    (B) $1,000,000,000, for deposit into the Department 
                of Defense Base Closure Account 1990 established in 
                section 2906(a) of the National Defense Authorization 
                Act for Fiscal Year 1991 (Public Law 101-510; 10 U.S.C. 
                2687 note), of which--
                            (i) $500,000,000 shall be used to carry out 
                        environmental restoration activities at 
                        military installations selected in 1993 for 
                        closure or realignment under the Defense Base 
                        Closure and Realignment Act of 1990 (part A of 
                        title XXIX of Public Law 101-510; 10 U.S.C. 
                        2687 note); and
                            (ii) $500,000,000 shall be used to carry 
                        out environmental restoration activities at 
                        military installations selected in 1995 for 
                        closure or realignment under such Act.
            (2) Department of energy.--There is appropriated to the 
        Secretary of Energy for each of fiscal years 1995 and 1996 for 
        environmental restoration and waste management at defense 
        nuclear facilities the following:
                    (A) $1,000,000,000, for environmental restoration.
                    (B) $750,000,000, for waste management.
                    (C) $250,000,000, for corrective activities.
    (b) Appropriations for Fiscal Year 1995.--The following sums are 
appropriated, out of any money in the Treasury not otherwise 
appropriated, for the fiscal year ending September 30, 1995, to 
implement the provisions of this Act, namely:

                         department of defense

                       operation and maintenance

                   environmental restoration, defense

    For the Department of Defense, for deposit into the Defense 
Environmental Restoration Account established in section 2703 of title 
10, United States Code, $1,000,000,000, to remain available until 
transferred.

                         military construction

             base realignment and closure account, part ii

    For deposit into the Department of Defense Closure Account 1990 
established by section 2906(a) of the National Defense Authorization 
Act for Fiscal Year 1991 (Public Law 101-510; 10 U.S.C. 2687 note), 
$500,000,000, to be available solely for environmental restoration and 
to remain available until expended.

             base realignment and closure account, part iii

    For deposit into the Department of Defense Closure Account 1990 
established by section 2906(a) of the National Defense Authorization 
Act for Fiscal Year 1991 (Public Law 101-510; 10 U.S.C. 2687 note), 
$500,000,000, to be available solely for environmental restoration and 
to remain available until expended.

                          department of energy

         defense environmental restoration and waste management

    For Department of Energy expenses necessary for atomic energy 
defense environmental restoration and waste management activities, 
$2,000,000,000, to remain available until expended: Provided, That of 
the funds appropriated herein, $1,000,000,000 shall be available for 
environmental restoration, $750,000,000 shall be available for waste 
management, and $250,000,000 shall be available for corrective 
activities.
    (c) Appropriations for Fiscal Year 1996.--The following sums are 
appropriated, out of any money in the Treasury not otherwise 
appropriated, for the fiscal year ending September 30, 1996, to 
implement the provisions of this Act, namely:

                         department of defense

                       operation and maintenance

                   environmental restoration, defense

    For the Department of Defense, for deposit into the Defense 
Environmental Restoration Account established in section 2703 of title 
10, United States Code, $1,000,000,000, to remain available until 
transferred.

                         military construction

             base realignment and closure account, part ii

    For deposit into the Department of Defense Closure Account 1990 
established by section 2906(a) of the National Defense Authorization 
Act for Fiscal Year 1991 (Public Law 101-510; 10 U.S.C. 2687 note), 
$500,000,000, to be available solely for environmental restoration and 
to remain available until expended.

             base realignment and closure account, part iii

    For deposit into the Department of Defense Closure Account 1990 
established by section 2906(a) of the National Defense Authorization 
Act for Fiscal Year 1991 (Public Law 101-510; 10 U.S.C. 2687 note), 
$500,000,000, to be available solely for environmental restoration and 
to remain available until expended.

                          department of energy

         defense environmental restoration and waste management

    For Department of Energy expenses necessary for atomic energy 
defense environmental restoration and waste management activities, 
$2,000,000,000, to remain available until expended: Provided, That of 
the funds appropriated herein, $1,000,000,000 shall be available for 
environmental restoration, $750,000,000 shall be available for waste 
management, and $250,000,000 shall be available for corrective 
activities.
    (d) Designation as Emergency Requirement.--The entire amount 
appropriated under this section is designated by Congress as an 
emergency requirement pursuant to section 251(b)(2)(D)(i) of the 
Balanced Budget and Emergency Deficit Control Act of 1985.

              Subtitle F--Community Development Assistance

             CHAPTER 1--COMMUNITY DEVELOPMENT BLOCK GRANTS

SEC. 1501. AUTHORIZATION OF APPROPRIATIONS.

    For assistance under section 106 of the Housing and Community 
Development Act of 1974, there is authorized to be appropriated, in 
addition to any amounts authorized under section 103 of such Act, 
$2,000,000,000 for fiscal year 1995 and $2,000,000,000 for fiscal year 
1996.

       CHAPTER 2--COMMUNITY BANKING AND ECONOMIC EMPOWERMENT ACT

SEC. 1511. SHORT TITLE.

    This chapter may be cited as the ``Community Banking and Economic 
Empowerment Act''.

SEC. 1512. AUTHORITY OF SECRETARY.

    (a) In General.--To make credit and credit-related services 
available to low-income families and others not adequately served by 
traditional lending institutions and promote community development, 
economic development, and revitalization of low-income neighborhoods, 
the Secretary of Housing and Urban Development shall provide, to the 
extent amounts are provided in appropriation Acts--
            (1) assistance under section 1514 to community development 
        lenders and other eligible entities that have submitted 
        applications under section 1516 that have been approved by the 
        Secretary and have entered into agreements with the Secretary 
        under section 1517; and
            (2) technical assistance under section 1519 to assist in 
        organizing and operating community development lenders.
    (b) Consultation.--The Secretary of Housing and Urban Development 
shall consult with the Secretary of the Treasury in developing, 
implementing, and carrying out this chapter, and in providing 
assistance to community development lenders under section 1514.

SEC. 1513. ELIGIBLE COMMUNITY DEVELOPMENT LENDERS.

    (a) In General.--Applications for assistance under section 1514 may 
be submitted only by the following entities:
            (1) Community development lenders.--Any corporation, 
        partnership, organization, agency, person, or other entity 
        (which may include for-profit and nonprofit entities, community 
        development corporations, microenterprise organizations, 
        community organizations, and other entities and persons) that--
                    (A) is organized for the purposes described in 
                subsection (b); and
                    (B) is not a depository institution (as such term 
                is defined in section 3(c) of the Federal Deposit 
                Insurance Act) or a credit union, or an affiliate or 
                subsidiary of a depository institution or credit union 
                (including community development credit unions, savings 
                and loan associations, and other depository 
                institutions).
            (2) Eligible entities establishing community development 
        lenders.--Any corporation, partnership, organization, agency, 
        person, or other entity that--
                    (A) is engaged in organizing or establishing a 
                community development financial institution; and
                    (B) is not a depository institution (as such term 
                is defined in section 3(c) of the Federal Deposit 
                Insurance Act) or a credit union, or an affiliate or 
                subsidiary of a depository institution or credit union 
                (including community development credit unions, savings 
                and loan associations, and other depository 
                institutions).
    (b) Purpose.--To be eligible to receive assistance under section 
1514, a community development lender applying for such assistance (or 
to be established by the eligible entity applying for such assistance) 
shall have among its principal purposes making credit and credit-
related services available to low-income families and in low-income 
neighborhoods and promoting the development and revitalization of low-
income neighborhoods. The community development lender shall carry out 
such purpose by making loans to individuals, families, businesses, 
organizations, and other entities and conducting such other activities 
and services relating to making loans (such as loan counseling and 
servicing) as the lender considers appropriate. Such loans may include 
mortgage loans, loans for housing development, rehabilitation, and 
weatherization, business development and assistance loans, personal 
loans, operating loans, construction loans, loans for community and 
economic development activities, and other repayable assistance.
    (c) Governance.--To be eligible to receive assistance under section 
1514, a community development lender applying for such assistance (or 
to be established by the eligible entity applying for such assistance) 
shall be governed by a board of directors that--
            (1) is solely responsible for determining policy for the 
        community development lender with respect to management and 
        operations, lending activities, loan standards and 
        implementation, employment, asset management, and any other 
        issues; and
            (2) includes among its members a significant number of 
        members who are individuals meeting the requirements of any of 
        subparagraphs (A) through (D), who shall include--
                    (A) individuals who are members of low-income 
                families;
                    (B) individuals who are residents of the low-income 
                neighborhood served by the lender;
                    (C) individuals who are experienced in providing 
                financial assistance or financial advice to low-income 
                individuals or residents, businesses, or organizations 
                in low-income neighborhoods; and
                    (D) individuals who have significant experience in 
                serving the low-income neighborhood served by the 
                lender, the community in which such neighborhood is 
                located, or any other low-income neighborhood.

SEC. 1514. CAPITAL AND OPERATING ASSISTANCE FOR COMMUNITY DEVELOPMENT 
              LENDERS.

    (a) Authority.--The Secretary may provide assistance under this 
section to community development lenders and eligible entities 
establishing community development lenders, for the purposes under 
subsection (b).
    (b) Purposes.--Assistance under this section may be used only as 
provided in the assistance agreement under section 1517 for the 
community development lender or eligible entity and only for the 
following purposes:
            (1) Feasibility studies.--To carry out studies to determine 
        the feasibility of establishing a program to make loans for the 
        purposes under section 1513(b) within a particular low-income 
        neighborhood.
            (2) Capital assistance.--To provide capital for the 
        community development lender--
                    (A) to establish or supplement amounts available 
                for loans for the purposes under section 1513(b);
                    (B) to provide credit enhancement for loans for the 
                purposes under section 1513(b);
                    (C) to establish or supplement capital reserves of 
                the lender; and
                    (D) to carry out other activities, as the Secretary 
                may provide.
            (3) Operating costs.--To provide amounts to cover operating 
        costs of the community development lender, including marketing 
        and management activities, business planning and counseling 
        services, staff training, planning costs, costs relating to 
        establishing the community development lender or changing the 
        activities or management of a financial institution or other 
        organization or entity to include community development lending 
        activities.
    (c) Other Terms.--The Secretary may establish any terms and 
conditions of assistance under this section that the Secretary 
considers appropriate to carry out the purposes of this subtitle, 
including limitations on the amount of assistance provided to any 
community development lender or eligible entity, limitations on the 
number of applications that may be approved for any single community 
development lender or eligible entity, and requirements and limitations 
for the amounts and timing of the disbursement of assistance.
    (d) Non-Federal Funds Requirement.--The Secretary may not provide 
assistance under this section to any eligible entity for the 
establishment of a community development lender in an amount in excess 
of 9 times the amount that the entity certifies, as the Secretary shall 
require, that the entity will contribute from non-Federal sources to 
the community development lender established with amounts provided 
under this section.

SEC. 1515. REQUIREMENTS OF ASSISTED COMMUNITY DEVELOPMENT LENDERS.

    (a) Prohibition of Direct Assistance.--A community development 
lender that receives assistance under section 1514 (or established by 
an eligible entity that receives such assistance) may not provide 
amounts to any person from assistance received under such section in 
the form of a grant or nonrepayable advance or on any other 
nonrepayable basis, during the assistance agreement term established by 
the assistance agreement for the lender under section 1517.
    (b) Low-Income Family Requirements.--
            (1) Requirement.--In each calendar year during the 
        applicable assistance agreement term, a community development 
        lender that receives assistance under section 1514 (or 
        established by an eligible entity that receives such 
        assistance) shall make loans under section 1513(b) benefiting 
        low-income families--
                    (A) in a number that is not less than 50 percent of 
                the total number of loans made by the lender during 
                such year; and
                    (B) in an amount such that the sum of the principal 
                amounts of such loans is not less than 50 percent of 
                the sum of the principal amounts of all loans made by 
                the lender during such year.
            (2) Determination of benefit.--
                    (A) Direct benefit.--A loan shall be considered to 
                benefit a low-income family for purposes of paragraph 
                (1) if the loan--
                            (i) is made to such a family;
                            (ii) is made for an activity that is 
                        carried out in a low-income neighborhood and 
                        for providing services for such families;
                            (iii) is made for providing facilities 
                        designed for the use predominantly by such 
                        families; or
                            (iv) is made for an activity that involves 
                        employment of persons, a majority of whom are 
                        members of such families.
                    (B) Activities of general benefit.--In any case in 
                which an activity assisted with a loan is designed to 
                serve an area generally and is clearly designed to meet 
                identified needs of low-income families in such area, 
                such loan or activity shall be considered to benefit 
                low-income families for purposes of paragraph (1) to 
                the extent that the area is a low-income neighborhood.
                    (C) Housing.--A loan for the acquisition, 
                construction, or rehabilitation of property to provide 
                housing shall be considered to benefit low-income 
                families for purposes of paragraph (1) only to the 
                extent that such housing, upon completion, is occupied 
                by low-income families.
    (c) Low-Income Neighborhood Requirements.--In each calendar year 
during the applicable assistance agreement term, a community 
development lender that receives assistance under section 1514 (or 
established by an eligible entity that receives such assistance) shall 
make loans under section 1513(b) for facilities or activities that 
serve the low-income neighborhood served by the lender--
            (1) in a number that is not less than 50 percent of the 
        total number of loans made by the lender during such year; and
            (2) in an amount such that the sum of the principal amounts 
        of such loans is not less than 50 percent of the sum of the 
        principal amounts of all loans made by the lender during such 
        year.
    (d) Employment Plan.--During the applicable assistance agreement 
term, a community development lender that receives assistance under 
section 1514 (or established by an eligible entity that receives such 
assistance) shall establish and comply with a written employment plan 
under this subsection. The Secretary shall, by regulation, require that 
each employment plan under this subsection set forth a policy for 
hiring employees of the community development lender that--
            (1) furthers the purposes of this subtitle by providing 
        employment opportunities in the neighborhood served by the 
        community development lender for residents of the neighborhood; 
        and
            (2) gives preference in hiring to--
                    (A) individuals who are members of low-income 
                families residing in the neighborhood served by the 
                community development lender; and
                    (B) individuals who were formerly employed in 
                positions at any office or branch of a depository 
                institution, credit union, or other financial 
                institution that is or was located in the neighborhood 
                served by the community development lender and who are 
                not employed in such positions because of the closing 
                or reorganization of the office, branch, or 
                institution, or because of the elimination of such 
                positions or any decrease in compensation paid for such 
                positions.
    (e) Reserve Requirements.--
            (1) Maintenance of reserve.--During the applicable 
        assistance agreement term, a community development lender that 
        receives assistance under section 1514 (or established by an 
        eligible entity that receives such assistance) shall maintain, 
        at all times, a reserve against losses on loans and any other 
        losses in the amount determined under paragraph (2).
            (2) Establishment of requirements.--The Secretary shall, by 
        regulation, establish reserve amounts to be maintained by 
        community development lenders taking into consideration the 
        purposes of such lenders, the nature of lending engaged in by 
        such lenders, the size and amount of business of such lenders, 
        the need for such lending in the communities and low-income 
        neighborhoods served by such lenders, and any other factors the 
        Secretary considers appropriate.
            (3) Replenishment.--If at any time during the applicable 
        assistance agreement term, the amount reserved by a community 
development lender under this subsection is less than the amount 
required to be reserved under the regulations issued pursuant to 
paragraph (2), the Secretary may take such actions as the Secretary 
may, by regulation, provide that are consistent with the purposes of 
this subtitle, including withholding any assistance amounts to be 
provided to the lender under the agreement under section 1517 but not 
yet disbursed and requiring the lender to replenish the reserve by 
regular contributions in the amounts determined by the Secretary.
    (f) Staff.--During the applicable assistance agreement term, a 
community development lender that receives assistance under section 
1514 (or established by an eligible entity that receives assistance 
under such section) shall maintain personnel qualified and capable of 
conducting the activities described under section 1513(b) and the other 
activities of the lender relating to community development, as the 
Secretary may require.

SEC. 1516. APPLICATION AND APPROVAL FOR ASSISTANCE.

    (a) Requirement.--The Secretary may provide assistance under 
section 1514 only to community development lenders and eligible 
entities establishing community development lenders that have submitted 
applications under this section to the Secretary that have been 
approved under subsection (d).
    (b) Time and Manner.--The Secretary shall establish requirements 
regarding the submission of applications under this section, which 
shall include requirements for the time and manner of submission.
    (c) Contents.--An application under this section shall contain the 
following information:
            (1) Community development lender.--A description of--
                    (A) the existing community development financial 
                institution to be assisted; or
                    (B) in the case of an eligible entity submitting 
                the application for assistance, the community 
                development lender to be established by the eligible 
                entity, the existing relationship between the eligible 
                entity and the community development lender to be 
                established, and any continuing relationship that will 
                exist between the eligible entity and the community 
                development lender.
            (2) Low-income neighborhood served.--Identification and a 
        description of the low-income neighborhood in which the 
        community development lender is, or is to be, located and 
        conduct its principal operations and a description of the 
        existing availability of credit and credit-related services in 
        such neighborhood.
            (3) Types of business.--A description of the types of 
        business engaged in, or to be engaged in, by the community 
        development lender and of the need for such business in the 
        neighborhood served by the community development lender.
            (4) Board of directors and operation.--In the case of an 
        application by an existing community development lender, a 
        description of the board of directors of the community 
        development lender and the structure of the management and 
        operations of the community development lender.
            (5) Financial expertise.--In the case of an application by 
        an existing community development lender, a description of any 
        lending or financial expertise or experience of the members of 
        the board of directors of the community development lender and 
        the managers or employees of the lender.
            (6) Financial history.--In the case of an application by an 
        existing community development lender, any financial 
        information regarding the community development lender that the 
        Secretary considers necessary in determining whether to provide 
        assistance to the community development lender, including 
        information regarding any history of compliance with the 
        requirements of section 1515.
            (7) Regulation.--Identification of any Federal, State, and 
        local laws, ordinances, and regulations under which the 
        financial operations of the community development lender are, 
        or are to be, subject to the supervision, approval, regulation, 
        or insuring of any agency or other instrumentality of the 
        Federal Government or the State or local government and 
        identification of the agency or instrumentality.
            (8) New community development lenders.--In the case of an 
        application by an eligible entity for assistance for the 
        establishment of a community development lender, any financial, 
        organizational, or other information that the Secretary 
        considers necessary in determining whether to provide such 
        assistance.
            (9) Assistance.--A description of the amount of assistance 
        for which the community development lender or eligible entity 
        is applying and a description of the purposes for which such 
        assistance will be used.
            (10) Employment plan.--An employment plan in accordance 
        with the regulations issued under section 1515(d).
            (11) Compliance with requirements.--A description of the 
        actions to be taken by the community development lender (or the 
        eligible entity establishing the community development lender) 
        to ensure compliance with the requirements under section 1515.
            (12) Other.--Any other information the Secretary considers 
        appropriate to carry out, and ensure compliance with, the 
        provisions of this subtitle.
    (d) Review and Approval.--
            (1) Review.--The Secretary shall promptly review each 
        application submitted under this section.
            (2) Minimum standards for approval.--The Secretary may 
        approve an application under this section for assistance only 
        if the Secretary determines, based on the information contained 
        in an application, that--
                    (A) the lender will operate in accordance with the 
                requirements of this chapter and in a financially safe 
                and sound manner; and
                    (B) the assistance is necessary and appropriate to 
                facilitate the provision of credit and credit-related 
                services in the neighborhood served by the lender to 
                low-income families and others not adequately served by 
                traditional lending institutions.
            (3) Selection criteria.--The Secretary shall approve 
        applications under this subsection based on competitive 
        selection criteria, which the Secretary shall establish by 
        regulation.
            (4) Notification.--The Secretary shall promptly notify each 
        applicant of the approval or disapproval of the applicant's 
        application. In the case of any disapproval, such notification 
        shall include a statement of the reasons for the disapproval 
        and of the availability of technical assistance under section 
        1519.

SEC. 1517. ASSISTANCE AGREEMENTS.

    (a) Requirement.--The Secretary may not provide assistance under 
section 1514 for an application for such assistance approved under 
section 1516 unless the community development lender or eligible entity 
submitting the application enters into a written agreement with the 
Secretary under this section.
    (b) Contents.--An agreement under this section shall provide the 
following:
            (1) Neighborhood served.--A delineation of the boundaries 
        of the low-income neighborhood within which the community 
        development lender shall be located and in which the lender 
        shall conduct its principal operations.
            (2) Compliance with requirements.--That the community 
        development lender shall comply with the requirements under 
        section 1515.
            (3) Safe and sound operation.--That the community 
        development lender shall operate in a financially safe and 
        sound manner.
            (4) Books and records.--That the community development 
        lender shall operate and maintain books and records in 
        accordance with the regulations issued by the Secretary under 
        section 1518 and will provide the Secretary with access to such 
        books and records for purposes of determining the compliance of 
        the lender with the requirements of this subtitle and the 
        provisions of the agreement under this section.
            (5) Performance standards and sanctions.--Standards for the 
        performance and financial operation of the community 
        development lender appropriate for the particular lender, 
        including standards relating to the lending volume, 
portfolio performance, personnel development, service to the 
neighborhood served by the lender, and sanctions for failure to comply 
with such standards.
            (6) Reports.--That the community development lender (or the 
        eligible entity establishing the community development lender) 
        shall submit reports to the Secretary including such 
        information, at such times, and in such manner, as required by 
        the Secretary and provided in the agreement.
            (7) Assistance.--The amount of assistance to be provided to 
        the community development lender (or eligible entity 
        establishing the community development lender), the purposes 
        under section 1514(b) for which such assistance will be used, 
        and the timing and terms of the disbursement of such 
        assistance.
            (8) Other conditions.--That the community development 
        lender shall comply with any other written conditions (which 
        shall be contained in the agreement) that the Secretary 
        considers appropriate to carry out the purposes of this 
        subtitle.
            (9) Period of compliance.--The period during which the 
        community development lender shall comply with the provisions 
        of the agreement under this section, which shall not be shorter 
        than 12 months in duration.
    (c) Federal or Other Regulation of Lender.--An agreement under this 
section may not be construed to annul, alter, affect, or exempt the 
community development lender receiving assistance pursuant to the 
agreement (or established by the eligible entity receiving such 
assistance) from complying with any Federal, State, or local laws, 
ordinances, and regulations applicable to the financial and other 
operations of community development lender or with any orders or 
rulings of any agency or instrumentality of the Federal Government or 
the State or local government responsible for the supervision, 
approval, regulation, or insuring of the community development lender.

SEC. 1518. BOOKS, RECORDS, AND AUDITS.

    (a) Books and Records.--During the applicable assistance agreement 
term, a community development lender that receives assistance under 
section 1514 (or established by an eligible entity that receives such 
assistance) shall maintain the books and records of the lender in the 
manner that the Secretary shall, by regulation, require.
    (b) Examinations and Audits.--
            (1) Recertification.--The Secretary shall, not less than 
        once each year during the applicable assistance agreement term, 
        conduct an examination of the books, records, and financial 
        accounts and transactions of each community development lender 
        receiving assistance under section 1514 (or established by an 
        eligible entity receiving assistance under such section) for 
        the purpose of determining compliance of the lender with this 
        subtitle and the provisions of the agreement.
            (2) Other.--During the applicable assistance agreement 
        term, the Secretary may conduct any other examinations and 
        audits of such a community development lender and its accounts 
        and transactions that the Secretary considers appropriate to 
        determine the condition of the lender and compliance with the 
        provisions of the assistance agreement.

SEC. 1519. TECHNICAL ASSISTANCE FOR ORGANIZING AND OPERATING COMMUNITY 
              DEVELOPMENT LENDERS.

    (a) Assistance to Establish Community Development Lenders.--The 
Secretary shall carry out a program under this subsection to provide 
technical assistance in establishing community development financial 
institutions, which shall include--
            (1) educating organizations, financial institutions, 
        governmental agencies, and other entities and persons in low-
        income neighborhoods and elsewhere regarding the need for, 
        capabilities, functions, and organization of community 
        development lenders;
            (2) educating and training organizations, financial 
        institutions, and other entities and persons in organizing 
        community development lenders and applying for assistance under 
        this subtitle for establishment of community development 
        lenders;
            (3) assisting entities and persons interested in 
        establishing community development lenders in identifying 
        community lending needs and meeting the application 
        requirements and preparing applications under this subtitle; 
        and
            (4) assisting community development lenders and eligible 
        entities whose applications have been disapproved under section 
        1516(d) to submit approvable applications for assistance under 
        section 1514.
    (b) Assistance for Operating Community Development Lenders.--The 
Secretary shall carry out a program under this subsection to provide 
technical assistance to community development lenders, which shall 
include--
            (1) education and training regarding management and 
        operation of the lenders, including designing and utilizing 
        lending practices to target credit to low-income families and 
        neighborhoods, complying with financial and accounting 
        standards under the agreement for the lender under section 
        1517, and implementing effective asset management and fund 
        development techniques;
            (2) collecting and disseminating information from various 
        community development lenders regarding successful management 
        and operation techniques, lending practices, and lending 
        activities; and
            (3) training personnel of lenders to meet requirements 
        under section 1515(f).
    (c) Provision of Assistance.--The Secretary may provide technical 
assistance under this section directly or through public or private 
organizations pursuant to contracts with such organizations or grants 
to such organizations.
    (d) Administration.--The Secretary may provide for making technical 
assistance under this section available to community development 
lenders and eligible entities that receive assistance under section 
1514 pursuant to a request for such assistance in an application under 
section 1516, approval of the application, and the inclusion of terms 
in the assistance agreement under section 1517 providing for such 
assistance.

SEC. 1520. RELATIONSHIP TO COMMUNITY REINVESTMENT ACT OF 1977.

    Section 807(b) of the Community Reinvestment Act of 1977 (12 U.S.C. 
2906(b)) is amended by adding at the end the following new paragraph:
            ``(3) Coordination with community banking and economic 
        empowerment act.--No regulated financial institution may 
        receive a rating of `outstanding record of meeting community 
        credit needs' or `satisfactory record of meeting community 
        credit needs' solely on the basis of loans to or investments in 
        community development lenders.''.

SEC. 1521. REPORTS TO CONGRESS.

    The Secretary shall submit a report to the Congress not later than 
July 1 of each year in which the Secretary provides assistance under 
section 1514 to community development lenders or eligible entities, 
which shall describe--
            (1) the assistance provided under such section, the 
        purposes for which such assistance will be used, the 
        neighborhoods to be served by the community development lenders 
        assisted, and the activities of community development lenders 
        assisted; and
            (2) any technical assistance provided under section 1519 by 
        the Secretary.

SEC. 1522. REGULATIONS.

    The Secretary of Housing and Urban Development, jointly with the 
Secretary of the Treasury, shall issue any regulations necessary to 
carry out this subtitle.

SEC. 1523. DEFINITIONS.

    For purposes of this chapter:
            (1) The term ``assistance agreement'' means an agreement 
        under section 1517 between the Secretary and a community 
        development lender or eligible entity receiving assistance 
        under section 1514.
            (2) The term ``assistance agreement term'' means the period 
        established by an assistance agreement during which the 
        community development lender that receives assistance under 
        section 1514 pursuant to the agreement (or established by the 
        eligible entity that receives such assistance) shall comply 
        with the provision of the agreement.
            (3) The term ``community development financial 
        institution'' means a financial institution described in 
        section 1513(a)(1) that meets the requirements under 
        subsections (b) and (c) of section 1513.
            (4) The term ``community development lender'' means a 
        community development financial institution that meets the 
        requirements under subsections (b) and (c) of section 1513.
            (5) The term ``eligible entity'' means any entity described 
        in section 1513(a)(2).
            (6) The term ``low-income family'' means any individual or 
        family whose income does not exceed 80 percent of the median 
        income for the area, as determined by the Secretary with 
        adjustments for smaller and larger families; except that the 
        Secretary may establish income ceilings higher or lower than 80 
        percent of the median for the area on the basis of any findings 
        by the Secretary that such variations are necessary because of 
        unusually high or low prevailing incomes.
            (7) The term ``low-income neighborhood'' means any area 
        within a city, county, town, township, parish, village, or 
        other general purpose subdivision of a State--
                    (A) that has a continuous boundary; and
                    (B) in which not less than 20 percent of the 
                residents are members of low-income families.
            (8) The term ``low-income neighborhood served by a 
        community development lender'' means the low-income 
        neighborhood identified in an application under section 1516 
        and an assistance agreement under section 1517 as the area in 
        which the community development lender that receives assistance 
        pursuant to such application and agreement (or established by 
        the eligible entity that receives such assistance) will be 
        located and conduct its principal operations.
            (9) The term ``Secretary'' means the Secretary of Housing 
        and Urban Development.

SEC. 1524. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated for each of fiscal years 
1995 and 1996--
            (1) $800,000,000 for assistance under section 1514; and
            (2) $200,000,000 for providing technical assistance under 
        section 1519.

                  Subtitle G--Education Infrastructure

SEC. 1601. SHORT TITLE.

    This subtitle may be cited as the ``Education Infrastructure Act of 
1994''.

SEC. 1602. FINDINGS.

    The Congress finds that--
            (1) improving the quality of public elementary and 
        secondary school libraries, media centers, and facilities will 
help our Nation meet the National Education Goals;
            (2) Federal, State, and local funding for the repair, 
        renovation, alteration and construction of public elementary 
        and secondary school libraries, media centers, and facilities 
        has not adequately reflected need; and
            (3) the challenges facing our Nation's public elementary 
        and secondary schools require the concerted and collaborative 
        efforts of all levels of government and all sectors of the 
        community.

SEC. 1603. PURPOSE.

    It is the purpose of this subtitle to help our Nation meet the 
National Education Goals through the repair, renovation, alteration and 
construction of public elementary and secondary school libraries, media 
centers, and facilities, used for academic or vocational instruction.

SEC. 1604. DEFINITIONS.

    For purposes of this subtitle--
            (1) the term ``alteration'' refers to any change to an 
        existing property for use for a different purpose or function;
            (2) the term ``construction'' refers to the erection of a 
        building, structure, or facility, including the concurrent 
        installation of equipment, site preparation, associated roads, 
        parking, and utilities, which provides area or cubage not 
        previously available, including--
                    (A) freestanding structures, additional wings, or 
                floors, enclosed courtyards or entryways, and any other 
                means to provide usable program space that did not 
                previously exist; and
                    (B) the complete replacement of an existing 
                facility;
            (3) the term ``eligible local educational agency'' means a 
        local educational agency, as such term is defined in section 
        1471 of the Elementary and Secondary Education Act of 1965, 
        which demonstrates in the application submitted under section 
        1607 that such agency--
                    (A) has urgent repair, renovation, alteration and 
                construction needs for its public elementary or 
                secondary school libraries, media centers, and 
                facilities, used for academic or vocational 
                instruction; and
                    (B) serves large numbers or percentages of 
                disadvantaged students;
            (4) the term ``renovation'' refers to any change to an 
        existing property to allow its more efficient use within such 
        property's designated purpose;
            (5) the term ``repair'' refers to the restoration of a 
        failed or failing real property facility, component, or a 
        building system to such a condition that such facility, 
        component, or system may be used effectively for its designated 
        purpose, if, due to the nature or extent of the deterioration 
        or damage to such facility, component, or system, such 
        deterioration or damage cannot be corrected through normal 
        maintenance; and
            (6) the term ``Secretary'', unless otherwise specified, 
        means the Secretary of Education.

SEC. 1605. IMPROVEMENT OF PUBLIC ELEMENTARY AND SECONDARY EDUCATION 
              FACILITIES PROGRAM AUTHORIZED.

    (a) Program Authority.--From amounts appropriated pursuant to the 
authority of subsection (b) in any fiscal year, the Secretary shall 
award grants to eligible local educational agencies having applications 
approved under section 1606 to carry out the authorized activities 
described in section 1607.
    (b) Authorization of Appropriations.--There are to be appropriated 
$3,000,000,000 for fiscal year 1995, and such sums as may be necessary 
for each of the fiscal years 1996 through 2004, to carry out this 
subtitle.

SEC. 1606. APPLICATIONS.

    (a) Contents Required.--Each eligible local educational agency 
desiring to receive a grant under this subtitle shall submit an 
application to the Secretary. Each such application shall--
            (1) contain an assurance that such application was 
        developed in consultation with parents and classroom teachers; 
        and
            (2) include--
                    (A) a description of each architectural, civil, 
                structural, mechanical, electrical, or telephone line, 
                deficiency to be corrected with funds provided under 
                this subtitle, including the priority for the repair of 
                the deficiency;
                    (B) a description of the corrective action to be 
                supported with funds provided under this subtitle;
                    (C) a cost estimate of the proposed corrective 
                action;
                    (D) an identification of the total amount and 
                percentage of such agency's budget used in the 
                preceding fiscal year for the maintenance, repair, 
                renovation, alteration, and construction of public 
                elementary and secondary school libraries, media 
                centers, and facilities;
                    (E) a description of how such agency plans to 
                maintain the repair, renovation, alteration, or 
                construction supported with funds provided under this 
                subtitle;
                    (F) a description of the extent to which the 
                repair, renovation, alteration, or construction will 
                help the Secretary meet the goals described in section 
                1609(1)(A); and
                    (G) such other information as the Secretary may 
                reasonably require.
    (b) Priorities in Selection of Applications.--In selecting 
applications for the award of grant funds under this subtitle, the 
Secretary shall give priority to local educational agencies that--
            (1) are seeking funds for the repair, renovation, 
        alteration, or construction of facilities that are the oldest 
        for which funds are sought under this subtitle;
            (2) have the highest number of facilities with health and 
        safety hazards from one or more of the following sources: 
        asbestos, lead, radon, plumbing, electrical wiring; and
            (3) serve areas with high rates of unemployment.

SEC. 1607. AUTHORIZED ACTIVITIES.

    Each eligible local educational agency receiving a grant under this 
subtitle shall use such grant funds to help our Nation meet the 
National Education Goals through the repair, renovation, alteration, 
and construction of a public elementary or secondary school library, 
media center, or facility, used for academic or vocational instruction, 
including--
            (1) inspection of such library, center, or facility;
            (2) repairing such library, center, or facility that poses 
        a health or safety risk to students;
            (3) upgrading of and alteration to such library, center, or 
        facility in order to accommodate new instructional technology;
            (4) meeting the requirements of section 504 of the 
        Rehabilitation Act of 1973 and the Americans with Disabilities 
        Act of 1990;
            (5) removal or containment of severely hazardous material 
        such as asbestos, lead, and radon using a cost-effective 
        method;
            (6) installation or upgrading of school security and 
        communications systems;
            (7) energy conservation;
            (8) meeting Federal, State, or local codes related to fire, 
        air, light, noise, waste disposal, building height, or other 
        codes passed since the initial construction of such library, 
        center, or facility; and
            (9) replacing an old library, center, or facility that is 
        most cost-effectively torn down rather than renovated.

SEC. 1608. REQUIREMENTS.

    (a) Special Rules.--
            (1) Maintenance of effort.--An eligible local educational 
        agency may receive a grant under this subtitle for any fiscal 
        year only if the Secretary finds that either the combined 
        fiscal effort per student or the aggregate expenditures of that 
        agency and the State with respect to the provision of free 
        public education by such local educational agency for the 
        preceding fiscal year was not less than 90 percent of such 
        combined fiscal effort or aggregate expenditures for the fiscal 
        year for which the determination is made.
            (2) Supplement not supplant.--An eligible local educational 
        agency shall use funds received under this subtitle only to 
        supplement the amount of funds that would, in the absence of 
        such Federal funds, be made available from non-Federal sources 
        for the repair and construction of school facilities used for 
        educational purposes, and not to supplant such funds.
    (b) General Limitations.--
            (1) Real property.--No part of any grant funds under this 
        subtitle shall be used for the acquisition of any interest in 
        real property.
            (2) Maintenance.--Nothing in this subtitle shall be 
        construed to authorize the payment of maintenance costs in 
        connection with any projects constructed in whole or in part 
        with Federal funds provided under this subtitle.
            (3) Environmental safeguards.--All projects carried out 
        with Federal funds provided under this subtitle shall comply 
        with all relevant Federal, State, and local environmental laws 
        and regulations.
            (4) Applicability of laws regarding individuals with 
        disabilities.--Sections 504 and 505 of the Rehabilitation Act 
        of 1973 and the Americans with Disabilities Act of 1990 shall 
        apply to projects carried out with Federal funds provided under 
        this subtitle.

SEC. 1609. CONTRACTS.

    If a project assisted under this subtitle will be carried out 
pursuant to a contract, the following limitations shall apply:
            (1) Minority participation.--The Secretary shall 
        establish--
                    (A) goals for the participation of small business 
                concerns as contractors or subcontractors that meet or 
                exceed the governmentwide goals established pursuant to 
                section 15(g)(1) of the Small Business Act (15 U.S.C. 
                644(g)(1)) for the participation of such concerns in 
                contracts supported with funds under this subtitle (and 
                subcontracts under such contracts); and
                    (B) an evaluation process for such participation 
                that gives significant weight to the goals described in 
                subparagraph (A).
            (2) Davis-bacon.--All laborers and mechanics employed by 
        contractors or subcontractors in the performance of any 
        contract and subcontract for the repair, renovation, 
        alteration, or construction, including painting and decorating, 
        of any building or work that is financed in whole or in part by 
        a grant under this subtitle, shall be paid wages not less than 
        those determined by the Secretary of Labor in accordance with 
        the Act of March 3, 1931 (commonly known as the Davis-Bacon 
        Act); as amended (40 U.S.C. 276a-276a-5). The Secretary of 
        Labor shall have the authority and functions set forth in 
        reorganization plan of No. 14 of 1950 (15 FR 3176; 64 Stat. 
        1267) and section 2 of the Act of June 1, 1934 (commonly known 
        as the Copeland Anti-Kickback Act) as amended (40 U.S.C. 276c, 
        48 Stat. 948).

SEC. 1610. TECHNICAL ASSISTANCE.

    The comprehensive regional centers established under section 2203 
of the Elementary and Secondary Education Act of 1965 may provide 
assistance in the repair, renovation, alteration, and construction of 
public elementary or secondary school libraries, media centers, or 
facilities to eligible local educational agencies receiving assistance 
under this subtitle.

SEC. 1611. FEDERAL ASSESSMENT.

    The Secretary shall reserve not more than 1 percent of funds 
appropriated pursuant to the authority of section 1605(b)--
            (1) to collect such data as the Secretary determines 
        necessary at the school, local, and State levels; and
            (2) to conduct studies and evaluations, including national 
        studies and evaluations, in order to--
                    (A) monitor the progress of projects supported with 
                funds provided under this subtitle; and
                    (B) evaluate the state of American public 
                elementary and secondary school libraries, media 
                centers, and facilities; and
            (3) to report to the Congress by July 1, 1997, regarding 
        the findings of the studies and evaluations described in 
        paragraph (2).

           Subtitle H--Renewable Energy and Energy Efficiency

SEC. 1701. RENEWABLE ENERGY.

    In addition to any amounts otherwise authorized to be appropriated, 
there are authorized to be appropriated to the Secretary of Energy 
$250,000,000 for fiscal year 1995 and $250,000,000 for fiscal year 1996 
for renewable energy research, development, and demonstration programs 
described in section 4(c) of the Renewable Energy and Efficiency 
Technology Competitiveness Act of 1989 (42 U.S.C. 12003(c)).

SEC. 1702. ENERGY EFFICIENCY.

    (a) Federal Energy Efficiency Fund.--Section 546(b)(4) of the 
National Energy Conservation Policy Act (42 U.S.C. 8256(b)(4)) is 
amended by striking ``$50,000,000 for fiscal year 1995'' and inserting 
in lieu thereof ``$200,000,000 for fiscal year 1995, $125,000,000 for 
fiscal year 1996''.
    (b) New Technology Demonstration Program.--Section 549(f) of the 
National Energy Conservation Policy Act (42 U.S.C. 8258a(f)) is amended 
by striking ``, 1994, and 1995'' and inserting in lieu thereof ``and 
1994, $300,000,000 for fiscal year 1995, and $375,000,000 for fiscal 
year 1996''.

                   TITLE II--HUMAN CAPITAL INVESTMENT

                        Subtitle A--Job Training

SEC. 2001. HUMAN CAPITAL INVESTMENTS IN JOB TRAINING.

    (a) Establishment of Allied Health Professional Job Training 
Program Under the Job Training Partnership Act.--
            (1) In general.--Part D of title IV of the Job Training 
        Partnership Act (29 U.S.C. 1731 et seq.) is amended by adding 
        at the end the following new section:

``SEC. 457. ALLIED HEALTH PROFESSIONAL JOB TRAINING PROGRAM.

    ``(a) Authorization.--The Secretary shall provide grants to 
institutions of higher education to establish programs to provide job 
training assistance to at-risk youths and long-term welfare recipients 
to enable such youths and recipients to become allied health 
professionals.
    ``(b) Application.--The Secretary may provide a grant to an 
institution of higher education under subsection (a) only if such 
institution submits to the Secretary an application which contains such 
information as the Secretary may reasonably require.
    ``(c) Use of Amounts.--An institution of higher education shall use 
amounts received from a grant under subsection (a) to establish a 
program to provide job training assistance to at-risk youths and long-
term welfare recipients to enable such youths and recipients to become 
allied health professionals. In carrying out such program, the 
institution of higher education shall meet the following requirements:
            ``(1) The institution will consult with representatives 
        from labor unions in carrying out the program and will allow 
        such representatives to assist such institution in the 
        recruitment and orientation of individuals for the program.
            ``(2) The institution will disseminate information relating 
        to the program in areas of substantial unemployment where the 
        need for increased access to health care services is the 
        greatest.
            ``(3) In accepting individuals into the program, the 
        institution will give priority to individuals from 
        underrepresented populations.
            ``(4) To the extent practicable, the training of an 
        individual in the program will not exceed 2 years.
            ``(5) To the extent practicable, the institution will 
        provide individuals in the program with services leading to 
        guaranteed job placement in the allied health profession.
    ``(d) Definitions.--For purposes of this section, the following 
definitions apply:
            ``(1) Allied health professionals.--The term `allied health 
        professionals' has the meaning given such term in section 
        799(5) of the Public Health Service Act (42 U.S.C. 295p(5)).
            ``(2) Family adjusted income.--
                    ``(A) In general.--Except as provided in 
                subparagraph (C), the term `family adjusted income' 
                means, with respect to a family, the sum of the 
                adjusted incomes (as defined in subparagraph (B)) for 
                all members of the family.
                    ``(B) Adjusted income.--In subparagraph (A), the 
                term `adjusted income' means, with respect to an 
                individual, adjusted gross income (as defined in 
                section 62(a) of the Internal Revenue Code of 1986)--
                            ``(i) determined without regard to sections 
                        135, 162(l), 911, 931, and 933 of such Code, 
                        and
                            ``(ii) increased by the amount of interest 
                        received or accrued by the individual which is 
                        exempt from tax.
                    ``(C) Presence of additional dependents.--At the 
                option of an individual, a family may include (and not 
                be required to separate out) the income of other 
                individuals who are claimed as dependents of the family 
                for income tax purposes, but such individuals shall not 
                be counted as part of the family for purposes of 
                determining the size of the family.
            ``(3) Institution of higher education.--The term 
        `institution of higher education' means an institution of 
        higher education (as such term is defined in section 481 of the 
        Higher Education Act of 1965 (20 U.S.C. 1088)) which--
                    ``(A) continues to meet the eligibility and 
                certification requirements under title IV of such Act 
                (20 U.S.C. 1070 et seq.); and
                    ``(B) has the capacity to train individuals to 
                become allied health professionals, as determined by 
                the Secretary.
            ``(4) Long-term welfare recipient defined.--The term `long-
        term welfare recipient' means an individual who, in accordance 
        with rules established by the Secretary, is identified as--
                    ``(A) having been substantially unemployed over a 
                consecutive period of at least 2 years immediately 
                preceding the date of application for the program;
                    ``(B) having, during such period, been receiving 
                (or a member of a household that has been receiving) 
                benefits under one or more Federal or State welfare 
                programs identified under such rules, including the 
                AFDC program, the SSI program, and medicaid; and
                    ``(C) having family adjusted income that does not 
                exceed 200 percent of the applicable poverty level for 
                the class of enrollment involved.
            ``(5) Underrepresented populations.--The term 
        `underrepresented populations' includes minorities, individuals 
        with disabilities, the poor, and persons with limited English 
        proficiency.''.
            (2) Authorization of appropriations.--Section 3(c) of such 
        Act (29 U.S.C. 1502(c)) is amended--
                    (A) in paragraph (1), by striking ``There are 
                authorized'' and inserting ``Except as provided in 
                paragraph (6), there are authorized''; and
                    (B) by adding at the end the following new 
                paragraph:
    ``(6) In addition to amounts authorized to be appropriated under 
paragraph (1), there are authorized to be appropriated to carry out 
section 457 $2,000,000,000 for each of the fiscal years 1995 and 1996 
and such sums as may be necessary for fiscal year 1997.''.
            (3) Conforming amendment.--The table of contents of such 
        Act is amended by inserting after the item relating to section 
        456 the following new item:

``Sec. 457. Allied health professional job training program.''.
            (4) Effective Date.--The amendments made by this subsection 
        shall take effect on October 1, 1994, or the date of the 
        enactment of this Act, whichever occurs later.
    (b) Increase in Authorization of Appropriations for Certain Youth 
Job Training Programs.--
            (1) Youth fair chance program.--Section 3(c)(3) of the Job 
        Training Partnership Act (29 U.S.C. 1502(c)(3)) is amended by 
        striking ``$100,000,000'' and all that follows through ``1997'' 
        and inserting ``$700,000,000 for each of the fiscal years 1995 
        and 1996 and such sums as may be necessary for fiscal year 
        1997''.
            (2) Youthbild program.--Section 402 of the Homeownership 
        and Opportunity Through HOPE Act (42 U.S.C. 12870) is amended--
                    (A) by redesignating subsection (c) as subsection 
                (d); and
                    (B) by inserting after subsection (b) the following 
                new subsection:
    ``(c) Youthbild Program.--
            ``(1) In general.--There are authorized to be appropriated 
        for activities authorized under subtitle D $400,000,000 for 
        each of the fiscal years 1995 and 1996 and such sums as may be 
        necessary for fiscal year 1997.
            ``(2) Availability.--Amounts appropriated pursuant to the 
        authorization of appropriations under paragraph (1) are 
        authorized to remain available until expended.''.

                         Subtitle B--Education

SEC. 2101. EDUCATIONAL PERSONNEL.

    (a) Adult Education.--Section 313 of the Adult Education Act is 
amended by striking ``1995'' and inserting ``and $760,000,000 for each 
of the fiscal years 1995 and 1996''.
    (b) Elementary and Secondary Education.--Section 1502 of the 
Elementary and Secondary Education Act is amended--
            (1) by striking ``and''; and
            (2) by inserting ``$2,456,000,000 for each of the fiscal 
        years 1995 and 1996,'' after ``1993,''.

                         Subtitle C--Head Start

SEC. 2201. AMENDMENTS TO THE HEAD START ACT.

    Section 629(a) of the Head Start Act (42 U.S.C. 9834(a)) is 
amended--
            (1) by striking ``1993, and'' and inserting ``1993,'', and
            (2) by inserting ``, $11,660,000 for fiscal year 1995, and 
        $15,660,000 for fiscal year 1996'' before the period at the 
        end.

          Subtitle D--Programs Under Public Health Service Act

  CHAPTER 1--FUNDING INITIATIVE FOR PROGRAMS PROVIDING HEALTH SERVICES

SEC. 2301. FUNDING INITIATIVE.

    (a) Community Health Centers.--In addition to any other 
authorizations of appropriations that are available for the purpose of 
carrying out section 330 of the Public Health Service Act, there are 
authorized to be appropriated for such purpose $200,000,000 for fiscal 
year 1995.
    (b) Migrant Health Centers.--In addition to any other 
authorizations of appropriations that are available for the purpose of 
carrying out section 329 of the Public Health Service Act, there are 
authorized to be appropriated for such purpose $100,000,000 for fiscal 
year 1995.
    (c) Health Care for the Homeless.--In addition to any other 
authorizations of appropriations that are available for the purpose of 
carrying out section 340 of the Public Health Service Act, there are 
authorized to be appropriated for such purpose $100,000,000 for fiscal 
year 1995.
    (d) Preventive Services Regarding Tuberculosis.--In addition to any 
other authorizations of appropriations that are available for the 
purpose of carrying out section 317E of the Public Health Service Act 
(as added by section 301 of Public Law 103-183; 107 Stat. 2233), there 
are authorized to be appropriated for such purpose $150,000,000 for 
fiscal year 1995.
    (e) Preventive Services Regarding Breast and Cervical Cancer.--In 
addition to any other authorizations of appropriations that are 
available for the purpose of carrying out the program under section 
1501 of the Public Health Service Act, there are authorized to be 
appropriated for such purpose $120,000,000 for fiscal year 1995.
    (f) Preventive Services Regarding Lead Exposure.--In addition to 
any other authorizations of appropriations that are available for the 
purpose of carrying out section 317A of the Public Health Service Act, 
there are authorized to be appropriated for such purpose $16,000,000 
for fiscal year 1995.
    (g) Preventive Services Regarding HIV Disease.--In addition to any 
other authorizations of appropriations that are available for the 
purpose of carrying out under the Public Health Service Act programs to 
prevent infection with the human immunodeficiency virus, there are 
authorized to be appropriated for such purpose $40,000,000 for fiscal 
year 1995.
    (h) Immunization Program.--In addition to any other authorizations 
of appropriations that are available for the purpose of carrying out 
the immunization program under section 317(j) of the Public Health 
Service Act, there are authorized to be appropriated for such purpose 
$200,000,000 for fiscal year 1995.
    (i) Cancer Registries.--In addition to any other authorizations of 
appropriations that are available for the purpose of carrying out the 
program for cancer registries under section 399H of the Public Health 
Service Act, there are authorized to be appropriated for such purpose 
$13,000,000 for fiscal year 1995.
    (j) Preventive Services Regarding Prostate Cancer.--In addition to 
any other authorizations of appropriations that are available for the 
purpose of carrying out section 317D of the Public Health Service Act, 
there are authorized to be appropriated for such purpose $4,000,000 for 
fiscal year 1995.
    (k) Comprehensive School Health Education.--In addition to any 
other authorizations of appropriations that are available for the 
purpose of carrying out under the Public Health Service Act a program 
to provide comprehensive health education to school children, there are 
authorized to be appropriated for such purpose $40,000,000 for fiscal 
year 1995.
    (l) Prevention and Control of Sexually Transmitted Diseases.--In 
addition to any other authorizations of appropriations that are 
available for the purpose of carrying out section 318 of the Public 
Health Service Act, there are authorized to be appropriated for such 
purpose $10,000,000 for fiscal year 1995.
    (m) Prevention and Control of Diabetes.--In addition to any other 
authorizations of appropriations that are available for the purpose of 
carrying out under the Public Health Service Act a program for the 
prevention and control of diabetes, there are authorized to be 
appropriated for such purpose $20,000,000 for fiscal year 1995.
    (n) Child Day Care Health and Safety.--In addition to any other 
authorizations of appropriations that are available for the purpose of 
carrying out under the Public Health Service Act a program for child 
day care health and safety, there are authorized to be appropriated for 
such purpose $5,000,000 for fiscal year 1995.
    (o) Prevention and Control of Injuries.--In addition to any other 
authorizations of appropriations that are available for the purpose of 
carrying out part J of title III of the Public Health Service Act, 
there are authorized to be appropriated for such purpose $5,000,000 for 
fiscal year 1995.
    (p) Asthma.--In addition to any other authorizations of 
appropriations that are available for the purpose of carrying out under 
the Public Health Service Act a program regarding asthma, there are 
authorized to be appropriated for such purpose $5,000,000 for fiscal 
year 1995.
    (q) Environmental Health.--
            (1) Urgent threat to public health.--In addition to any 
        other authorizations of appropriations that are available for 
        the purpose of carrying out under the Public Health Service Act 
        a program to respond to urgent environmental threats to the 
        public health, there are authorized to be appropriated for such 
        purpose $32,000,000 for fiscal year 1995.
            (2) Activities regarding border with mexico.--In addition 
        to any other authorizations of appropriations that are 
        available for the purpose of carrying out under the Public 
        Health Service Act a program to provide environmental services 
        regarding the health of individuals in the United States in the 
        vicinity of the international border with Mexico, there are 
        authorized to be appropriated for such purpose $10,000,000 for 
        fiscal year 1995.
    (r) Block Grants for Community Mental Health Services.--In addition 
to any other authorizations of appropriations that are available for 
the purpose of carrying out subpart I of part B of title XIX of the 
Public Health Service Act, there are authorized to be appropriated for 
such purpose $50,000,000 for fiscal year 1995.
    (s) Block Grants for Prevention and Treatment of Substance Abuse.--
In addition to any other authorizations of appropriations that are 
available for the purpose of carrying out subpart II of part B of title 
XIX of the Public Health Service Act, there are authorized to be 
appropriated for such purpose $50,000,000 for fiscal year 1995.
    (t) Block Grants for Preventive Health Services.--In addition to 
any other authorizations of appropriations that are available for the 
purpose of carrying out part A of title XIX of the Public Health 
Service Act, there are authorized to be appropriated for such purpose 
$30,000,000 for fiscal year 1995.
    (u) Scholarship and Loan Repayment Programs of National Health 
Service Corps.--In addition to any other authorizations of 
appropriations that are available for the purpose of contracts under 
sections 338A and 338B of the Public Health Service Act, there are 
authorized to be appropriated for such purpose $100,000,000 for fiscal 
year 1995.
    (v) Social Security Act; Maternal and Child Health Block Grant.--In 
addition to any other authorizations of appropriations that are 
available for the purpose of carrying out title V of the Social 
Security Act, there are authorized to be appropriated for such purpose 
$100,000,000 for fiscal year 1995.

              CHAPTER 2--COMMUNITY HEALTH ADVISOR PROGRAM

SEC. 2311. SHORT TITLE.

    This chapter may be cited as the ``National Community Health 
Advisor Act''.

SEC. 2312. FINDINGS.

    The Congress finds the following:
            (1) Poverty, geographic isolation, cultural differences, 
        lack of transportation, low literacy, lack of access to 
        services and further difficulties resulting from a lack of 
        continuity of care, are barriers for millions of low-income and 
        underserved Americans in the current health care delivery 
        system.
            (2) The Public Health Service has determined that many 
        health problems are rooted in poverty and hit hardest at those 
        least able to protect themselves.
            (3) The Public Health Service has established goals and 
        objectives regarding improvements in the health of the public 
        by the year 2000. An evaluation by the Service, entitled 
        ``Health United States 1992 and Healthy People 2000 Review'', 
        illustrates the acute access problem faced by rural areas and 
        the inner cities. The evaluation cites the fact that suburbs 
        have the lowest death rates, while death rates in rural 
        counties are 12 percent higher and in large core metropolitan 
        counties, 19 percent higher.
            (4) Discussions of health care reform focus almost 
        exclusively on questions of how to extend health insurance to 
        the Nation's 35-40 million uninsured and make services 
        available while simultaneously bringing medical costs under 
        control; however, it is imperative to correct the fundamental 
        and deep-rooted obstacles that low-income urban and rural 
        Americans confront when trying to access medical care and 
        preventive health services. For example, in 1991, 19 million 
        American women qualified for mammography screening benefits 
        through Medicare; however, only 670,000 (or less than 3 
        percent) took advantage of this benefit.
            (5) People who are local, indigenous members and residents 
        of underserved communities are uniquely knowledgeable about 
        their populations' needs; where such individuals are already 
        serving as community health advisors, they communicate to 
        health and social service providers the needs of community 
        members, provide quality health promotion and disease 
        prevention information to the community and serve as the 
        crucial link between their communities and providers to 
        increase utilization of available preventive health services 
        and to reach out to communities to increase the effectiveness 
        of the health care delivery system, reduce preventable 
        morbidity and mortality, and improve the quality of life.

SEC. 2313. FORMULA GRANTS REGARDING COMMUNITY HEALTH ADVISOR PROGRAMS.

    (a) Formula Grants.--
            (1) In general.--In the case of each State (or entity 
        designated by a State under subsection (b)) that submits to the 
        Secretary an application in accordance with section 2316 for a 
        fiscal year, the Secretary of Health and Human Services, acting 
        through the Director of the Centers for Disease Control and 
        Prevention and in coordination with the heads of the agencies 
        specified in paragraph (2), shall make an award of financial 
        assistance to the State or entity for the development and 
        operation of community health advisor programs under section 
        2314(b). The award shall consist of the allotment determined 
        under section 2317 with respect to the State, subject to 
        section 2322(b).
            (2) Coordination with other agencies.--The agencies 
        referred to in paragraph (1) regarding coordination are the 
        Health Resources and Services Administration, the National 
        Institutes of Health, and the Substance Abuse and Mental Health 
        Services Administration.
    (b) Designated Entities.--With respect to the State involved, an 
entity other than the State may receive an award under subsection (a) 
only if the entity--
            (1) is a public or nonprofit private academic organization 
        (or other public or nonprofit private entity); and
            (2) has been designated by the State to carry out the 
        purpose described in such subsection in the State and to 
        receive amounts under such subsection in lieu of the State.
    (c) Role of State Agency for Public Health.--A funding agreement 
for an award under subsection (a) is that--
            (1) if the applicant is a State, the award will be 
        administered by the State agency with the principal 
        responsibility for carrying out public health programs; and
            (2) if the applicant is an entity designated under 
        subsection (b), the award will be administered in consultation 
        with such State agency.
    (d) Statewide Responsibilities; Limitation on Expenditures.--
            (1) Statewide responsibilities.--A funding agreement for an 
        award under subsection (a) is that the applicant involved 
        will--
                    (A) operate a clearinghouse to maintain and 
                disseminate information on community health advisor 
                programs (and similar programs) in the State, including 
                information on developing and operating such programs, 
                on training individuals to participate in the programs, 
                and on evaluation of the programs;
                    (B) provide to community health advisor programs in 
                the State technical assistance in training community 
                health advisors under section 2315(g)(1); and
                    (C) coordinate the activities carried out in the 
                State under the award, including coordination between 
                the various community health advisor programs and 
                coordination between such programs and related 
activities of the State and of other public or private entities.
            (2) Limitation.--A funding agreement for an award under 
        subsection (a) is that the applicant involved will not expend 
        more than 15 percent of the award in the aggregate for carrying 
        out paragraph (1) and for the expenses of administering the 
        award with respect to the State involved, including the process 
        of receiving payments from the Secretary under the award, 
        allocating the payments among the entities that are to develop 
        and operate the community health advisor programs involved, and 
        monitoring compliance with the funding agreements made under 
        this chapter by the applicant.

SEC. 2314. REQUIREMENTS REGARDING COMMUNITY HEALTH ADVISOR PROGRAMS.

    (a) Purpose of Award; Healthy People 2000 Objectives.--
            (1) In general.--Subject to paragraph (2), a funding 
        agreement for an award under section 2313 for an applicant is 
        that the purpose of the award is, through community health 
        advisor programs under subsection (b), to assist the State 
        involved in attaining the Healthy People 2000 Objectives (as 
        defined in subsection (d).
            (2) Authority regarding selection of priority objectives.--
        With respect to compliance with the agreement made under 
        paragraph (1), an applicant receiving an award under section 
        2313 may, from among the various Healthy People 2000 
        Objectives, select one or more Objectives to be given priority 
        in the operation of a community health advisor program of the 
        applicant, subject to the applicant selecting such priorities 
        in consultation with the entity that is to carry out the 
        program.
    (b) Requirements for Programs.--
            (1) In general.--A funding agreement for an award under 
        section 2313 for an applicant is that, in expending the award, 
        the purpose described in subsection (a)(1) will be carried out 
        in accordance with the following:
                    (A) For each community for which the purpose is to 
                be carried out, the applicant will establish a program 
                in accordance with this subsection.
                    (B) The program will be carried out in a community 
                only if the applicant has, under section 2315(a), 
                identified the community as having a significant need 
                for the program.
                    (C) The program will be operated by a public or 
                nonprofit private entity with experience in providing 
                health or health-related social services to individuals 
                who are underserved with respect to such services.
                    (D) The services of the program, as specified in 
                paragraph (2), will be provided principally by 
                community health advisors (as defined in subsection 
                (d)).
            (2) Authorized program services.--For purposes of paragraph 
        (1)(D), the services specified in this paragraph for a program 
        are as follows:
                    (A) The program will collaborate with health care 
                providers and related entities in order to facilitate 
                the provision of health services and health-related 
                social services (including collaborating with local 
                health departments, community health centers, migrant 
                health centers, rural health clinics, hospitals, 
                physicians and nurses, providers of health education, 
                and providers of social services).
                    (B) The program will provide public education on 
                health promotion and disease prevention and facilitate 
                the use of available health services and health-related 
                social services.
                    (C) The program will provide health-related 
                counseling.
                    (D) The program will provide referrals for 
                available health services and health-related social 
                services.
                    (E) For the purpose of increasing the capacity of 
                individuals to utilize health services and health-
                related social services under Federal, State, and local 
                programs, the following conditions will be met:
                            (i) The program will assist individuals in 
                        establishing eligibility under the programs and 
                        in receiving the services or other benefits of 
                        the programs.
                            (ii) The program will provide such other 
                        services as the Secretary determines to be 
                        appropriate, which services may include (but 
                        are not limited to) transportation and 
                        translation services.
                    (F) The program will provide outreach services to 
                inform the community of the availability of the 
                services of the program.
                    (G) The program will undertake special outreach 
                activities to--
                            (i) recruit individuals with disabilities 
                        for service as community health advisors, and
                            (ii) ensure that the services of the 
                        program are accessible and available to 
                        individuals with disabilities who reside within 
                        the community.
    (c) Priority for Medically Underserved Communities.--A funding 
agreement for an award under section 2313 is that the applicant 
involved will give priority to developing and operating community 
health advisor programs for medically underserved communities.
    (d) Certain Definitions.--
            (1) Community health advisor.--For purposes of this 
        chapter, the term ``community health advisor'' means an 
        individual--
                    (A) who has demonstrated the capacity to carry out 
                one or more of the authorized program services;
                    (B) who, for not less than 1 year, has been a 
                resident of the community in which the community health 
                advisor program involved is to be operated; and
                    (C) is a member of a socioeconomic group to be 
                served by the program.
            (2) Healthy people 2000 objectives.--For purposes of this 
        chapter, the term ``Healthy People 2000 Objectives'' means the 
        objectives established by the Secretary toward the goals of 
        increasing the span of healthy life, reducing health 
        disparities among various populations, and providing access to 
        preventive services, which objectives apply to the health 
        status of the population of the United States for the year 
        2000.
            (3) Medically underserved community.--For purposes of this 
        chapter, the term ``medically underserved community'' means--
                    (A) a community that has a substantial number of 
                individuals who are members of a medically underserved 
                population, as defined in section 330 of the Public 
                Health Service Act; or
                    (B) a community a significant portion of which is a 
                health professional shortage area designated under 
                section 332 of such Act.

SEC. 2315. ADDITIONAL AGREEMENTS.

    (a) Identification of Community Needs.--A funding agreement for an 
award under section 2313 is that the applicant involved will--
            (1) identify the needs of the community involved for the 
        authorized program services;
            (2) in identifying such needs, consult with members of the 
        community, with individuals and programs that provide health 
        services in the community, and with individuals and programs 
        that provide health-related social services in the community; 
        and
            (3) consider such needs in carrying out a community health 
        advisor program for the community.
    (b) Matching Funds.--
            (1) In general.--With respect to the cost of carrying out a 
        community health advisor program, a funding agreement for an 
        award under section 2313 is that the applicant involved will 
        make available (directly or through donations from public or 
        private entities) non-Federal contributions toward such cost in 
        an amount that is not less than 25 percent of such cost.
            (2) Determination of amount contributed.--
                    (A) Non-Federal contributions required in paragraph 
                (1) may be in cash or in kind, fairly evaluated, 
                including plant, equipment, or services. Amounts 
                provided by the Federal Government, or services 
                assisted or subsidized to any significant extent by the 
                Federal Government, may not be included in determining 
                the amount of such non-Federal contributions.
                    (B) With respect to the State in which the 
                community health advisor program involved is to be 
                carried out, amounts provided by the State in 
                compliance with subsection (c) shall be included in 
                determining the amount of non-Federal contributions 
                under paragraph (1).
    (c) Maintenance of Effort.--With respect to the purposes for which 
an award under section 2313 is authorized in this chapter to be 
expended, the Secretary may make such an award only if the State 
involved agrees to maintain expenditures of non-Federal amounts for 
such purposes at a level that is not less than the level of such 
expenditures maintained by the State for the fiscal year preceding the 
first fiscal year for which such an award is made with respect to the 
State.
    (d) Cultural Context of Services.--A funding agreement for an award 
under section 2313 for an applicant is that the services of the 
community health advisor program involved will be provided in the 
language and cultural context most appropriate for the individuals 
served by the program.
    (e) Number of Programs Per Award; Programs for Urban and Rural 
Areas.--A funding agreement for an award under section 2313 for an 
applicant is that the number of community health advisor programs 
operated in the State with the award will be determined by the 
Secretary, except that (subject to section 2314(b)(1)(B)) such a 
program will be carried out in not less than one urban area of the 
State, and in not less than one rural area of the State.
    (f) Ongoing Supervision of Advisors.--A funding agreement for an 
award under section 2313 is that the applicant involved will ensure 
that each community health advisor program operated with the award 
provides for the ongoing supervision of the community health advisors 
of the program.
    (g) Certain Expenditures.--
            (1) Training; continuing education.--Funding agreements for 
        an award under section 2313 include the following:
                    (A) The applicant involved will ensure that, for 
                each community health advisor program operated with the 
                award, a program is carried out to train community 
                health advisors to provide the authorized program 
                services, including practical experiences in providing 
                services for health promotion and disease prevention.
                    (B) The program of training will provide for the 
                continuing education of the community health advisors.
                    (C) Not more than 15 percent of the award will be 
                expended for the program of training.
            (2) Compensation.--With respect to compliance with the 
        agreements made under this chapter, the purposes for which an 
        award under section 2313 may be expended include providing 
        compensation for the services of community health advisors.
    (h) Reports to Secretary; Assessment of Effectiveness.--Funding 
agreements for an award under section 2313 for an applicant include the 
following:
            (1) The applicant will ensure that, for each fiscal year 
        for which a community health advisor program receives amounts 
        from the award, the program will prepare a report describing 
        the activities of the program for such year, including--
                    (A) a specification of the number of individuals 
                served by the program;
                    (B) a specification of the entities with which the 
                program has collaborated in carrying out the purpose 
                described in section 2314(a)(1); and
                    (C) an assessment of the extent of the 
                effectiveness of the program in carrying out such 
                purpose.
            (2) Such reports will include such additional information 
        regarding the applicant and the programs as the Secretary may 
        require.
            (3) The applicant will prepare the reports as a single 
        document and will submit the document to the Secretary not 
        later than February 1 of the fiscal year following the fiscal 
        year for which the reports were prepared.

SEC. 2316. APPLICATION FOR ASSISTANCE; STATE PLAN.

    For purposes of section 2313, an application is in accordance with 
this section if--
            (1) the application is submitted not later than the date 
        specified by the Secretary;
            (2) the application contains each funding agreement 
        described in this chapter;
            (3) the application contains a State plan describing the 
        purposes for which the award is to be expended in the State, 
        including a description of the manner in which the applicant 
        will comply with each such funding agreement; and
            (4) the application is in such form, is made in such 
        manner, and contains such agreements, assurances, and 
        information as the Secretary determines to be necessary to 
        carry out this chapter.

SEC. 2317. DETERMINATION OF AMOUNT OF ALLOTMENT.

    (a) In General.--For purposes of section 2313, the allotment under 
this section with respect to a State for a fiscal year is the greater 
of--
            (1) the sum of the respective amounts determined for the 
        State under subsection (b) and subsection (c); and
            (2) $500,000.
    (b) Amount Relating to Population.--For purposes of subsection (a), 
the amount determined under this subsection is the product of--
            (1) an amount equal to 50 percent of the amount 
        appropriated under section 2322 for the fiscal year and 
        available for awards under section 2313; and
            (2) the percentage constituted by the ratio of--
                    (A) the number of individuals residing in the State 
                involved; to
                    (B) the sum of the respective amounts determined 
                for each State under subparagraph (A).
    (c) Amount Relating to Poverty Level.--For purposes of subsection 
(a), the amount determined under this subsection is the product of--
            (1) the amount determined under subsection (b)(1); and
            (2) the percentage constituted by the ratio of--
                    (A) the number of individuals residing in the State 
                whose income is at or below an amount equal to 200 
                percent of the official poverty line; to
                    (B) the sum of the respective amounts determined 
                for each State under subparagraph (A).

SEC. 2318. QUALITY ASSURANCE; COST-EFFECTIVENESS.

    The Secretary shall establish guidelines for assuring the quality 
of community health advisor programs (including quality in the training 
of community health advisors) and for assuring the cost-effectiveness 
of the programs. A funding agreement for an award under section 2313 is 
that the applicant involved will carry out such programs in accordance 
with the guidelines.

SEC. 2319. EVALUATIONS; TECHNICAL ASSISTANCE.

    (a) Evaluations.--The Secretary shall conduct evaluations of 
community health advisor programs, and may disseminate information 
developed as result of the evaluations. In conducting such evaluations, 
the Secretary shall determine whether the programs are in compliance 
with the guidelines established under section 2318.
    (b) Technical Assistance.--The Secretary may provide technical 
assistance to recipients of awards under section 2313 with respect to 
the planning, development, and operation of community health advisor 
programs.
    (c) Grants and Contracts.--The Secretary may carry out this section 
directly or through grants, cooperative agreements, or contracts.
    (d) Limitation on Expenditures.--Of the amounts appropriated under 
section 2322 for a fiscal year, the Secretary may reserve not more than 
10 percent for carrying out this section.

SEC. 2320. RULE OF CONSTRUCTION REGARDING PROGRAMS OF INDIAN HEALTH 
              SERVICE.

    This chapter may not be construed as requiring the Secretary to 
modify or terminate the program carried out by the Director of the 
Indian Health Service and designated by such Director as the Community 
Health Representative Program. The Secretary shall ensure that support 
for such Program is not supplanted by awards under section 2313. In 
communities in which both such Program and a community health advisor 
program are being carried out, the Secretary shall ensure that the 
community health advisor program works in cooperation with, and as a 
complement to, the Community Health Representative Program.

SEC. 2321. DEFINITIONS.

    For purposes of this chapter:
            (1) The term ``authorized program services'', with respect 
        to a community health advisor program, means the services 
        specified in section 2314(b)(2).
            (2) The term ``community health advisor'' has the meaning 
        given such term in section 2314(d).
            (3) The term ``community health advisor program'' means a 
        program carried out under section 2314(b).
            (4) The term ``financial assistance'', with respect to an 
        award under section 2313, means a grant, cooperative agreement, 
        or a contract.
            (5) The term ``funding agreement'' means an agreement 
        required as a condition of receiving an award under section 
        2313.
            (6) The term ``Healthy People 2000 Objectives'' has the 
        meaning given such term in section 2314(d).
            (7) The term ``medically underserved community'' has the 
        meaning given such term in section 2314(d).
            (8) The term ``official poverty line'' means the official 
        poverty line established by the Director of the Office of 
        Management and Budget and revised by the Secretary in 
        accordance with section 673(2) of the Omnibus Budget 
        Reconciliation Act of 1981, which poverty line is applicable to 
        the size of the family involved.
            (9) The term ``Secretary'' means the Secretary of Health 
        and Human Services.
            (10) The term ``State'' means each of the several States, 
        the District of Columbia, and each of the Commonwealth of 
        Puerto Rico, American Samoa, Guam, the Commonwealth of the 
        Northern Mariana Islands, the Virgin Islands, and the Trust 
        Territory of the Pacific Islands.
            (11) The term ``State involved'', with respect to an 
        applicant for an award under section 2313, means the State in 
        which the applicant is to carry out a community health advisor 
        program.

SEC. 2322. FUNDING.

    (a) Authorization of Appropriations.--For the purpose of carrying 
out this chapter, there is authorized to be appropriated $100,000,000 
for each of the fiscal years 1995 through 2000.
    (b) Effect of Insufficient Appropriations for Minimum Allotments.--
            (1) In general.--If the amounts made available under 
        subsection (a) for a fiscal year are insufficient for providing 
        each State (or entity designated by the State pursuant to 
        section 2313, as the case may be) with an award under section 
        2313 in an amount equal to or greater than the amount specified 
        in section 2317(a)(2), the Secretary shall, from such amounts 
        as are made available under subsection (a), make such awards on 
        a discretionary basis.
            (2) Rule of construction.--For purposes of paragraph (1), 
        awards under section 2313 are made on a discretionary basis if 
        the Secretary determines which States (or entities designated 
        by States pursuant to such section, as the case may be) are to 
        receive such awards, subject to meeting the requirements of 
        this chapter for such an award, and the Secretary determines 
        the amount of such awards.

         TITLE III--AMENDMENTS OF INTERNAL REVENUE CODE OF 1986

Subtitle A--Reduction in Employee Payroll Taxes; Credit for First-Time 
                               Homebuyers

SEC. 3001. CREDIT FOR PORTION OF SOCIAL SECURITY TAXES.

    (a) General Rule.--Subpart C of part IV of subchapter A of chapter 
1 of the Internal Revenue Code of 1986 (relating to refundable credits) 
is amended by redesignating section 35 as section 36 and by inserting 
after section 34 the following new section:

``SEC. 35. CREDIT FOR PORTION OF SOCIAL SECURITY TAXES.

    ``(a) Allowance of Credit.--In the case of an individual, there 
shall be allowed as a credit against the tax imposed by this subtitle 
for the taxable year an amount equal to 20 percent of the taxpayer's 
social security taxes for the taxable year.
    ``(b) Limitation.--The amount of the credit allowable under 
subsection (a) to any taxpayer for any taxable year shall not exceed 
$200 ($400 in the case of a joint return).
    ``(c) Social Security Taxes.--For purposes of this section--
            ``(1) In general.--The term `social security taxes' means, 
        with respect to any taxpayer for any taxable year--
                    ``(A) the amount of the taxes imposed by 
                subsections (a) and (b) of section 3101 on amounts 
                received by the taxpayer during the calendar year in 
                which the taxable year begins,
                    ``(B) the amount of the taxes imposed by section 
                3201(a) on amounts received by the taxpayer during the 
                calendar year in which the taxable year begins,
                    ``(C) 50 percent of the taxes imposed by 
                subsections (a) and (b) of section 1401 on the self-
                employment income of the taxpayer for the taxable year, 
                and
                    ``(D) 50 percent of the taxes imposed by section 
                3211(a)(1) on amounts received by the taxpayer during 
                the calendar year in which the taxable year begins.
            ``(2) Coordination with special refund of social security 
        taxes.--The term `social security taxes' shall not include any 
        taxes to the extent the taxpayer is entitled to a special 
        refund of such taxes under section 6413(c).
            ``(3) Special rule.--Any amounts paid pursuant to an 
        agreement under section 3121(l) (relating to agreements entered 
        into by American employers with respect to foreign affiliates) 
        which are equivalent to the taxes referred to in paragraph 
        (1)(A) shall be treated as taxes referred to in such paragraph.
    ``(d) Years to Which Section Applies.--This section shall only 
apply to taxable years beginning after December 31, 1994, and before 
January 1, 1997.''
    (b) Clerical Amendment.--The table of sections for subpart C of 
part IV of subchapter A of chapter 1 is amended by striking the item 
relating to section 35 and inserting the following:

                              ``Sec. 35. Credit for portion of social 
                                        security taxes.
                              ``Sec. 36. Overpayments of tax.''
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1994.

SEC. 3002. CREDIT FOR PURCHASE OF PRINCIPAL RESIDENCE BY FIRST-TIME 
              HOMEBUYER.

    (a) In General.--Subpart A of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to nonrefundable 
personal credits) is amended by inserting after section 22 the 
following new section:

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

    ``(a) Allowance of Credit.--In the case of a first-time homebuyer, 
there shall be allowed as a credit against the tax imposed by this 
chapter an amount equal to 10 percent of the purchase price of the 
first principal residence purchased by the taxpayer during the 
eligibility period. Except as otherwise provided in this section, such 
credit shall be allowed for the taxable year in which such residence is 
purchased.
    ``(b) Limitations.--
            ``(1) Maximum overall credit.--The credit allowed by 
        subsection (a) to the taxpayer shall not exceed $6,000.
            ``(2) Phaseout of credit based on adjusted gross income.--
        If the adjusted gross income of the taxpayer for the taxable 
        year in which the residence is purchased exceeds $50,000, the 
        $6,000 amount in paragraph (1) shall be reduced (but not below 
        zero) by $100 for each $200 of such excess.
    ``(c) First-Time Homebuyer.--For purposes of this section--
            ``(1) In general.--The term `first-time homebuyer' means 
        any individual unless such individual or such individual's 
        spouse had a present ownership interest in any residence at any 
        time during the 3-year period ending on the date of the 
        purchase of the residence referred to in subsection (a).
            ``(2) Unmarried joint owners.--An individual shall not be 
        treated as a first-time homebuyer with respect to any residence 
        unless all the individuals purchasing such residence with such 
        individual are first-time homebuyers.
            ``(3) Allocation of limits.--All individuals purchasing a 
        residence shall be treated as 1 individual for purposes of 
        determining the maximum credit under subsection (a); and such 
        maximum credit, and the $50,000 amount in subsection (b)(2), 
        shall be allocated among such individuals under regulations 
        prescribed by the Secretary.
            ``(4) Certain individuals ineligible.--The term `first-time 
        homebuyer' shall not include any individual if, on the date of 
        the purchase of the residence, the period of time specified in 
        section 1034(a) is suspended under subsection (h) or (k) of 
        section 1034 with respect to such individual.
            ``(5) Certain indirect interests not taken into account.--
        Except as provided in regulations prescribed by the Secretary, 
        an individual shall not be treated as holding an interest in a 
        residence by reason of holding an interest in a partnership, S 
        corporation, or trust.
    ``(d) Other Definitions.--For purposes of this section--
            ``(1) Eligibility period.--
                    ``(A) In general.--The term `eligibility period' 
                means the period beginning after December 31, 1994, and 
                ending before January 1, 1997.
                    ``(B) Binding contracts.--A residence shall be 
                treated as purchased during the eligibility period if--
                            ``(i) during the eligibility period, the 
                        purchaser enters into a binding contract to 
                        purchase the residence, and
                            ``(ii) the purchaser purchases and occupies 
                        the residence before July 1, 1997.
                For purposes of clause (i), a contract shall not fail 
                to be treated as binding merely because it is 
                contingent on financing or on the condition of the 
                residence.
            ``(2) Purchase.--The term `purchase' means any acquisition 
        of property, but only if--
                    ``(A) the property is not acquired from a person 
                whose relationship to the person acquiring it would 
                result in the disallowance of losses under section 267 
                or 707(b), and
                    ``(B) the basis of the property in the hands of the 
                person acquiring it is not determined--
                            ``(i) in whole or in part by reference to 
                        the adjusted basis of such property in the 
                        hands of the person from whom acquired, or
                            ``(ii) under section 1014(a) (relating to 
                        property acquired from a decedent).
            ``(3) Principal residence.--The term `principal residence' 
        has the same meaning as when used in section 1034.
            ``(4) Purchase price.--The term `purchase price' means the 
        adjusted basis of the residence on the date of its acquisition.
    ``(e) Carryover of Unused Credit.--
            ``(1) In general.--If--
                    ``(A) the credit allowable under subsection (a) 
                after the application of subsection (b) exceeds
                    ``(B) the limitation imposed by section 26(a) 
                reduced by the sum of the credits allowable under 
                sections 21 and 22,
        such excess shall be carried to the succeeding taxable year and 
        shall be allowable under subsection (a) for such succeeding 
        taxable year.
            ``(2) 5-year limit on carryforward.--No amount may be 
        carried under paragraph (1) to any taxable year after the 5th 
        taxable year after the taxable year in which the residence is 
        purchased.
    ``(f) Recapture of Credit for Certain Dispositions.--
            ``(1) In general.--Except as provided in paragraphs (2) and 
        (3), if the taxpayer disposes of property with respect to the 
        purchase of which a credit was allowed under subsection (a) and 
        such disposition occurs at any time within 36 months after the 
        date the taxpayer acquired the property as his principal 
        residence, then the tax imposed under this chapter for the 
        taxable year in which the disposition occurs is increased by an 
        amount equal to the amount allowed as a credit for the purchase 
        of such property.
            ``(2) Acquisition of new residence.--If, in connection with 
        a disposition described in paragraph (1) and within the 
        applicable period prescribed in section 1034, the taxpayer 
        purchases a new principal residence, then paragraph (1) shall 
        not apply and the tax imposed by this chapter for the taxable 
        year in which the new principal residence is purchased is 
        increased to the extent the amount of the credit that could be 
        claimed under this section on the purchase of the new residence 
        (were such residence purchased during the eligibility period) 
        is less than the amount of credit claimed by the taxpayer under 
        this section.
            ``(3) Death of owner; casualty loss; involuntary 
        conversion; etc.--Paragraph (1) shall not apply to--
                    ``(A) a disposition of a residence made on account 
                of the death of any individual having a legal or 
                equitable interest therein occurring during the 36-
                month period referred to in paragraph (1),
                    ``(B) a disposition of the old residence if it is 
                substantially or completely destroyed by a casualty 
                described in section 165(c)(3) or compulsorily or 
                involuntarily converted (within the meaning of section 
                1033(a)), or
                    ``(C) a disposition pursuant to a settlement in a 
                divorce or legal separation proceeding where the 
                residence is sold or the other spouse retains the 
                residence as a principal residence.
    ``(g) Basis Adjustment.--For purposes of this subtitle, if a credit 
is allowed under this section with respect to the purchase of any 
residence, the basis of such residence shall be reduced by the amount 
of the credit so allowed.''.
    (b) Conforming Amendments.--
            (1) Subsection (a) of section 1016 of such Code is amended 
        by striking ``and'' at the end of paragraph (24), by striking 
        the period at the end of paragraph (25) and inserting ``, 
        and'', and by adding at the end thereof the following new 
        paragraph:
            ``(26) in the case of a residence with respect to which a 
        credit was allowed under section 23, to the extent provided in 
        section 23(g).''
            (2) The table of sections for subpart A of part IV of 
        subchapter A of chapter 1 of such Code is amended by inserting 
        after the item relating to section 22 the following new item:

                              ``Sec. 23. Purchase of principal 
                                        residence by first-time 
                                        homebuyer.''
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after December 31, 1994.

                     Subtitle B--Revenue Increases

SEC. 3101. STOCK TRANSFER EXCISE TAX.

    (a) In General.--Chapter 34 of the Internal Revenue Code of 1986 is 
amended by striking the chapter heading and inserting the following:

          ``CHAPTER 34--TAX ON CERTAIN FINANCIAL TRANSACTIONS

                              ``Subchapter A. Tax on stock transfers.
                              ``Subchapter B. Policies issued by 
                                        foreign insurers.

                 ``Subchapter A--Tax on Stock Transfers

                              ``Sec. 4301. Imposition of tax.
                              ``Sec. 4302. Collection of tax.
                              ``Sec. 4303. Taxable stock transfer.
                              ``Sec. 4304. Taxable stock.

``SEC. 4301. IMPOSITION OF TAX.

    ``(a) In General.--There is hereby imposed on each taxable stock 
transfer a tax equal to 0.25 percent of the amount realized by the 
transferor of the taxable stock.
    ``(b) Amount Realized.--For purposes of subsection (a)--
            ``(1) In general.--Except as otherwise provided in this 
        subsection, the term `amount realized' has the same meaning as 
        when used in section 1001.
            ``(2) Transfers which are not sales or exchanges.--In the 
        case of any taxable stock transfer which is not a sale or 
        exchange, the amount realized is the fair market value of the 
        taxable stock involved.
            ``(3) Certain items not taken into account.--The following 
        amounts shall not be taken into account in computing the amount 
        realized from any taxable stock transfer:
                    ``(A) The tax imposed by this section.
                    ``(B) Any brokerage or similar fees or commissions.
                    ``(C) Any State, local or foreign tax imposed on 
                the taxable stock transfer.
    ``(c) Tax Paid by Transferor.--The tax imposed by subsection (a) 
shall be paid by the transferor of the taxable stock.

``SEC. 4302. COLLECTION OF TAX.

    ``(a) Collected by Broker.--Every broker who--
            ``(1) acts on behalf of the transferor in any taxable stock 
        transfer, and
            ``(2) receives any payment on behalf of the transferor for 
        such transfer,
shall collect the amount of the tax imposed by section 4301 by 
deducting and withholding such tax from the amount of any such payment. 
Any person required to deduct and withhold any tax under the preceding 
sentence is hereby made liable for such tax and is hereby indemnified 
against the claims and demands of any person for the amount of any 
payment so deducted and withheld.
    ``(b) Payment by Transferor Where No Broker.--In any case in which 
there is no broker required to collect the tax under subsection (a), 
the transferor shall pay such tax in such manner as the Secretary shall 
by regulations prescribe.

``SEC. 4303. TAXABLE STOCK TRANSFER.

    ``(a) General Rule.--For purposes of this subchapter, the term 
`taxable stock transfer' means any transfer of a taxable stock if such 
transfer is made through an established securities market in the United 
States.
    ``(b) Exemptions.--For purposes of this subchapter, the term 
`taxable stock transfer' does not include--
            ``(1) Death.--Any transfer at death.
            ``(2) Gift.--Any transfer to the extent such transfer is a 
        gift.
            ``(3) Between spouses or incident to divorce.--Any transfer 
        described in section 1041(a).

``SEC. 4304. TAXABLE STOCK DEFINED.

    ``(a) Taxable Stock.--For purposes of this subchapter, the term 
`taxable stock' means any stock in a corporation or interest in a 
partnership which is publicly traded on an established securities 
market in the United States.

         ``Subchapter B--Policies Issued by Foreign Insurers''.

    (b) Conforming Amendments.--
            (1) The table of chapters for subtitle D of such Code is 
        amended by striking the item relating to chapter 34 and 
        inserting the following:

                              ``Chapter 34. Tax on certain financial 
                                        transactions.''
            (2) Sections 4372(c) and 4374 of such Code are each amended 
        by striking ``this chapter'' and inserting ``this subchapter''.
    (c) Effective Date.--The amendments made by this section shall 
apply to transfers after December 31, 1996.

SEC. 3102. REPEAL OF PREFERENTIAL RATE OF TAX ON CAPITAL GAINS.

    (a) In General.-- Section 1 of the Internal Revenue Code of 1986 is 
amended by striking subsection (h).
    (b) Conforming Amendments.--
            (1) Paragraph (4) of section 691(c) of such Code is amended 
        by striking ``1(h),''.
            (2)(A) Subparagraph (B) of section 904(b)(2) of such Code 
        is amended by striking ``In the case of any taxable year'' and 
        inserting ``In the case of a corporation with respect to any 
        taxable year''.
            (B) Subparagraph (D) of section 904(b)(3) of such Code is 
        amended by striking ``if--'' and all that follows through 
        ``(ii) in the case of a corporation,'' and inserting ``if''.
            (C) Subparagraph (E) of section 904(b)(3) of such Code is 
        amended to read as follows:
                    ``(E) Rate differential portion.--The rate 
                differential portion of foreign source net capital 
                gain, net capital gain, or the excess of net capital 
                gain from sources within the United States over net 
                capital gain, as the case may be, is the same 
                proportion of such amount as--
                            ``(i) the excess of--
                                    ``(I) the highest rate of tax 
                                specified in section 11(b), over
                                    ``(II) the alternative rate of tax 
                                under section 1201(a), bears to
                            ``(ii) the highest rate of tax specified in 
                        section 11(b).''
            (3) Paragraph (1) of section 1445(e) of such Code is 
        amended by striking ``(or, to the extent provided in 
        regulations, 28 percent)''.
            (4)(A) The second sentence of section 7518(g)(6)(A) of such 
        Code is amended--
                    (i) by striking ``With respect to'' and inserting 
                ``In the case of a corporation, with respect to'',
                    (ii) by striking ``1(h) or'', and
                    (iii) by striking ``28 percent (34 percent in the 
                case of a corporation'' and inserting ``34 percent''.
            (B) The second sentence of section 607(h)(6)(A) of the 
        Merchant Marine Act, 1936 is amended--
                    (i) by striking ``With respect to'' and inserting 
                ``In the case of a corporation, with respect to'',
                    (ii) by striking ``1(h) or'', and
                    (iii) by striking ``28 percent (34 percent in the 
                case of a corporation'' and inserting ``34 percent''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1996.

SEC. 3103. REPEAL OF CREDIT FOR FOREIGN 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(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. 3104. 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)) 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 are 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 the 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 the Job Creation 
                        and Invest in America Act of 1995); 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)),
                    ``(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 subparagraphs (A), (B), and 
                (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 related 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 the Job Creation and 
                Invest in America Act of 1995) 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 enactment of the Job Creation and Invest in America 
        Act of 1995,'' 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 enactment of the Job Creation and 
                Invest in America Act of 1995,'' 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. 3105. 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. 3106. REPEAL OF INCREASE IN BASIS OF PROPERTY ACQUIRED FROM A 
              DECEDENT.

    (a) In General.--Section 1014 of the Internal Revenue Code of 1986 
(relating to basis of property acquired from a decedent) is hereby 
repealed.
    (b) Basis To Be Determined Under Rules Applicable to Gifts.--
Section 1015 of such Code (relating to basis of property acquired by 
gifts and transfers in trusts) is amended by adding at the end the 
following new subsection:
    ``(f) Property Acquired From or Passing From a Decedent.--
            ``(1) In general.--Property acquired from a decedent dying 
        after December 31, 1995, or passed from such a decedent shall 
        be treated for purposes of subsection (a) as acquired by gift 
        for purposes of this section.
            ``(2) Property acquired from a decedent.--Section 1014(b) 
        (as in effect on the day before the date of the enactment of 
        the Citizens' Tax Relief Act of 1995) shall apply for purposes 
        of whether property is considered to have been acquired from or 
        to have passed from the decedent.
            ``(3) Increase in basis for estate tax paid.--
                    ``(A) In general.--The basis of any property which 
                this subsection applies shall be the basis determined 
                under subsection (a) increased by the portion of the 
                aggregate death tax adjustment which is allocated to 
                the property pursuant to this paragraph.
                    ``(B) Limitation.--The death tax adjustment for any 
                property shall not exceed--
                            ``(i) the net appreciation in such 
                        property, multiplied by
                            ``(ii) the Federal marginal estate tax 
                        rate.
                    ``(C) Net appreciation.--For purposes of this 
                paragraph, the net appreciation in value of any 
                property is the amount by which--
                            ``(i) the fair market value of such 
                        property, exceeds
                            ``(ii) the initial basis of such property 
                        increased by the minimum basis adjustment of 
                        such property.
            ``(4) Aggregate death tax adjustment.--In the case of any 
        estate--
                    ``(A) In general.--The aggregate death tax 
                adjustment is the product of--
                            ``(i) the aggregate net appreciation of all 
                        properties which have net appreciation, and
                            ``(ii) the Federal marginal estate tax 
                        rate.
                    ``(B) Limitation.--The amount taken into account 
                under subparagraph (A)(i) shall not exceed the taxable 
                estate.
                    ``(C) Federal marginal estate tax rate.--The term 
                `Federal marginal estate tax rate' means the highest 
                rate in the rate schedule set forth in section 
                2001(c)--
                            ``(i) which is used in determining the 
                        tentative tax under section 2001(b)(1) with 
                        respect to the estate of the decedent, and
                            ``(ii) the amount subject to which is at 
                        least $50,000.
                In no event shall the Federal marginal estate tax rate 
                be less than 30 percent.
            ``(5) Allocation rules.--The executor shall allocate the 
        adjustments under this subsection among the properties on the 
        return of the tax imposed by chapter 11.''.
    (c) Conforming Amendments.--
            (1) The table of sections for part II of subchapter O of 
        chapter 1 of such Code is amended by striking the item relating 
        to section 1014.
            (2) The heading of section 1015 of such Code is amended to 
        read as follows:

``SEC. 1015. BASIS OF PROPERTY ACQUIRED BY GIFT, FROM A DECEDENT, OR 
              TRANSFERRED IN TRUST.''.

            (3) The table of sections for part II of subchapter O of 
        chapter 1 of such Code is amended by striking the item relating 
        to section 1015 and inserting the following new item:

                              ``Sec. 1015. Basis of property acquired 
                                        by gift, from a decedent, or 
                                        transferred in trust.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to decedents dying after December 31, 1995.

SEC. 3107. PHASE IN OF CAPITAL GAINS TAX ON INHERITED PROPERTY.

    (a) In General.--Subsection (h) of section 1 of the Internal 
Revenue Code of 1986 (relating to maximum capital gains rate) is 
amended to read as follows:
    ``(h) Maximum Capital Gains Rate.--
            ``(1) In general.--If a taxpayer has a net capital gain for 
        any taxable year, then the tax imposed by this section shall 
        not exceed the sum of--
                    ``(A) a tax computed at the rates and in the same 
                manner as if this subsection had not been enacted on 
                the greater of--
                            ``(i) taxable income reduced by the amount 
                        of the net capital gain, or
                            ``(ii) the amount of taxable income taxed 
                        at a rate below 28 percent, plus
                    ``(B) a tax equal to the sum of--
                            ``(i) the applicable percentage of so much 
                        of such net capital gain as is attributable to 
                        property acquired by the taxpayer from a 
                        decedent dying after December 31, 1995 (or 
                        passed to the taxpayer from such a decedent), 
                        and
                            ``(ii) 28 percent of the amount of the 
                        taxable income in excess of the sum of the 
                        amount determined under subparagraph (A) and 
                        the net capital gain described in clause (i) of 
                        this subparagraph.
            ``(2) Applicable percentage.--For purposes of paragraph 
        (1), the term `applicable percentage' means--
                    ``(A) 10 percent in the case of taxable years 
                beginning after December 31, 1994, and before January 
                1, 1997,
                    ``(B) 15 percent in the case of taxable years 
                beginning during 1997,
                    ``(C) 20 percent in the case of taxable years 
                beginning during 1998, and
                    ``(D) 25 percent in the case of taxable years 
                beginning during 1999.
            ``(3) Election to mark-to-market property acquired from a 
        decedent.--If the taxpayer elects this paragraph with respect 
        to any property described in paragraph (1)(B)(i), such property 
        shall be treated as sold (for its fair market value as of the 
        first day of the taxpayer year) and any gain or loss shall be 
        treated as received or accrued on such day.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years ending after December 31, 1995.

SEC. 3108. ADDITIONAL EXCLUSION OF GAIN ON SALE OF PRINCIPAL RESIDENCE 
              ACQUIRED FROM A DECEDENT.

    (a) In General.--Subsection (d) of section 121 of the Internal 
Revenue Code of 1986 (relating to one-time exclusion of gain from sale 
of principal residence by individual who has attained age 55) is 
amended by adding at the end the following new paragraph:
            ``(10) Special rules for residence acquired from 
        decedent.--
                    ``(A) In general.--In the case of a residence which 
                was acquired by the taxpayer from a decedent dying 
                after December 31, 1995, or to whom such residence 
                passed from such a decedent (within the meaning of 
                section 1015(f)(2))--
                            ``(i) subsection (a)(1) shall not apply,
                            ``(ii) the requirement of subsection (a)(2) 
                        shall be treated as met if the decedent 
                        satisfied such requirement as of the date of 
                        death or the taxpayer satisfies such 
                        requirement, and
                            ``(iii) subsection (b)(1) shall be applied 
                        by substituting `$250,000' for `$125,000' and 
                        `$125,000' for `$62,500'.
                    ``(B) Additional election.--Any election under this 
                section with respect to any residence to which 
                subparagraph (A) applies shall not be taken into 
                account in determining whether any other election may 
                be made under this section.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to sales and exchanges after December 31, 1995, in taxable years ending 
after such date.

                        TITLE IV--APPROPRIATIONS

SEC. 4001. APPROPRIATIONS.

    There is hereby appropriated for any fiscal year, out of any money 
in the Treasury not otherwise appropriated, an amount equal to each 
amount authorized by this Act for such fiscal year. Any amount 
appropriated under the preceding sentence for any fiscal year shall be 
expended only for the purpose for which authorized and shall remain 
available until the close of the second following fiscal year.

SEC. 4002. DESIGNATION AS EMERGENCY REQUIREMENT.

    The entire amount appropriated under this Act is designated by 
Congress as an emergency requirement pursuant to section 
251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control 
Act of 1985.
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