[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2333 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 2333

  To provide improvements for the financial and emotional security of 
                                seniors.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 31, 1997

   Mr. Fox of Pennsylvania introduced the following bill; which was 
  referred to the Committee on Ways and Means, and in addition to the 
 Committees on the Judiciary, Banking and Financial Services, and the 
 Budget, 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 improvements for the financial and emotional security of 
                                seniors.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Senior Citizen Bill of Rights Act of 
1997''.

SEC. 2. REPEAL OF INCREASE IN TAX ON SOCIAL SECURITY BENEFITS.

    (a) In General.--Subsection (a) of section 86 of the Internal 
Revenue Code of 1986 (relating to social security and tier 1 railroad 
retirement benefits) is amended by adding at the end the following new 
paragraph:
            ``(3) Phaseout of additional amount.--In the case of any 
        taxable year beginning in a calendar year after 1997 and before 
        2002, paragraph (2) shall be applied by substituting the 
        percentage determined under the following table for `85 
        percent' each place it appears:

    ``In the case of a taxable
    year beginning in calendar      The percentage is:
        year:
        1998.......................
                                        75 percent
        1999.......................
                                        65 percent
        2000.......................
                                        60 percent
        2001.......................
                                        55 percent.''
    (b) Termination of Additional Amount.--Paragraph (2) of section 
86(a) of such Code is amended by adding at the end the following new 
flush sentence:
        ``This paragraph shall not apply to any taxable year beginning 
        after December 31, 2001.''
    (c) Conforming Amendments.--
            (1) Paragraph (3) of section 871(a) of such Code is 
        amended--
                    (A) in subparagraph (A), by striking ``85 percent'' 
                and inserting ``50 percent'', and
                    (B) by inserting before the last sentence the 
                following new flush sentence:
        ``In the case of any taxable year beginning in a calendar year 
        after 1997 and before 2002, subparagraph (A) shall be applied 
        by substituting the percentage determined for such calendar 
        year under section 86(a)(3) for `50 percent'.''
            (2)(A) Subparagraph (A) of section 121(e)(1) of the Social 
        Security Amendments of 1983 (Public Law 98-21) is amended--
                    (i) by striking ``(A) There'' and inserting 
                ``There'';
                    (ii) by striking ``(i)'' immediately following 
                ``amounts equivalent to''; and
                    (iii) by striking ``, less (ii)'' and all that 
                follows and inserting a period.
            (B) Paragraph (1) of section 121(e) of such Act is amended 
        by striking subparagraph (B).
            (C) Paragraph (3) of section 121(e) of such Act is amended 
        by striking subparagraph (B) and by redesignating subparagraph 
        (C) as subparagraph (B).
            (D) Paragraph (2) of section 121(e) of such Act is amended 
        in the first sentence by striking ``paragraph (1)(A)'' and 
        inserting ``paragraph (1)''.
    (d) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        apply to taxable years beginning after December 31, 1997.
            (2) Subsection (c)(2).--The amendments made by subsection 
        (c)(2) shall apply to tax liabilities for taxable years 
        beginning after December 31, 1997.

SEC. 3. EXEMPTION FROM TAX FOR GAIN ON SALE OF PRINCIPAL RESIDENCE.

    (a) In General.--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 to read as 
follows:

``SEC. 121. EXCLUSION OF GAIN FROM SALE OF PRINCIPAL RESIDENCE.

    ``(a) Exclusion.--Gross income shall not include gain from the sale 
or exchange of property if, during the 5-year period ending on the date 
of the sale or exchange, such property has been owned and used by the 
taxpayer as the taxpayer's principal residence for periods aggregating 
2 years or more.
    ``(b) Limitations.--
            ``(1) Dollar limitation.--The amount of gain excluded from 
        gross income under subsection (a) with respect to any sale or 
        exchange shall not exceed $250,000 ($500,000 in the case of a 
        joint return where both spouses meet the use requirement of 
        subsection (a)).
            ``(2) Application to only 1 sale or exchange every 2 
        years.--
                    ``(A) In general.--Subsection (a) shall not apply 
                to any sale or exchange by the taxpayer if, during the 
                2-year period ending on the date of such sale or 
                exchange, there was any other sale or exchange by the 
                taxpayer or his spouse to which subsection (a) applied.
                    ``(B) Premarriage sales by spouse not taken into 
                account.--If, but for this subparagraph, subsection (a) 
                would not apply to a sale or exchange by a married 
                individual by reason of a sale or exchange by such 
                individual's spouse before their marriage--
                            ``(i) subparagraph (A) shall be applied 
                        without regard to the sale or exchange by such 
                        individual's spouse, but
                            ``(ii) the amount of gain excluded from 
                        gross income under subsection (a) with respect 
                        to the sale or exchange by such individual 
                        shall not exceed $250,000.
                    ``(C) Pre-1998 sales not taken into account.--
                Subparagraph (A) shall be applied without regard to any 
                sale or exchange before January 1, 1998.
    ``(c) Exclusion for Taxpayers Failing To Meet Certain 
Requirements.--
            ``(1) In general.--In the case of a sale or exchange to 
        which this subsection applies, the ownership and use 
        requirements of subsection (a) shall not apply and subsection 
        (b)(2) shall not apply; but the amount of gain excluded from 
        gross income under subsection (a) with respect to such sale of 
        exchange shall not exceed--
                    ``(A) the amount which bears the same ratio to the 
                amount which would be so excluded if such requirements 
                had been met, as
                    ``(B) the shorter of--
                            ``(i) the aggregate periods, during the 5-
                        year period ending on the date of such sale or 
                        exchange, such property has been owned and used 
                        by the taxpayer as the taxpayer's principal 
                        residence, or
                            ``(ii) the period after the date of the 
                        most recent prior sale or exchange by the 
                        taxpayer or his spouse to which subsection (a) 
                        applied and before the date of such sale or 
                        exchange,
                bears to 2 years.
            ``(2) Sales and exchanges to which subsection applies.--
        This subsection shall apply to any sale or exchange if--
                    ``(A) subsection (a) would not (but for this 
                subsection) apply to such sale or exchange by reason 
                of--
                            ``(i) a failure to meet the ownership and 
                        use requirements of subsection (a), or
                            ``(ii) subsection (b)(2), and
                    ``(B) such sale or exchange is by reason of a 
                change in place of employment, health, or other 
                unforeseen circumstances.
    ``(d) Special Rules.--
            ``(1) Joint returns.--For purposes of this section, if a 
        husband and wife make a joint return for the taxable year of 
        the sale or exchange of property, subsection (a) applies if 
        either spouse meets the ownership and use requirements of 
        subsection (a) with respect to such property.
            ``(2) Property of deceased spouse.--For purposes of this 
        section, in the case of an unmarried individual whose spouse is 
        deceased on the date of the sale or exchange of property, the 
        period such unmarried individual owned such property shall 
        include the period such deceased spouse held such property 
        before death.
            ``(3) Tenant-stockholder in cooperative housing 
        corporation.--For purposes of this section, if the taxpayer 
        holds stock as a tenant-stockholder (as defined in section 216) 
        in a cooperative housing corporation (as defined in such 
        section), then--
                    ``(A) the holding requirements of subsection (a) 
                shall be applied to the holding of such stock, and
                    ``(B) the use requirements of subsection (a) shall 
                be applied to the house or apartment which the taxpayer 
                was entitled to occupy as such stockholder.
            ``(4) Involuntary conversions.--
                    ``(A) In general.--For purposes of this section, 
                the destruction, theft, seizure, requisition, or 
                condemnation of property shall be treated as the sale 
                of such property.
                    ``(B) Application of section 1033.--In applying 
                section 1033 (relating to involuntary conversions), the 
                amount realized from the sale or exchange of property 
                shall be treated as being the amount determined without 
                regard to this section, reduced by the amount of gain 
not included in gross income pursuant to this section.
                    ``(C) Property acquired after involuntary 
                conversion.--If the basis of the property sold or 
                exchanged is determined (in whole or in part) under 
                section 1033(b) (relating to basis of property acquired 
                through involuntary conversion), then the holding and 
                use by the taxpayer of the converted property shall be 
                treated as holding and use by the taxpayer of the 
                property sold or exchanged.
            ``(5) Recognition of gain attributable to depreciation.--
        Subsection (a) shall not apply to so much of the gain from the 
        sale of any property as does not exceed the portion of the 
        depreciation adjustments (as defined in section 1250(b)(3)) 
        attributable to periods after December 31, 1997, in respect of 
        such property.
            ``(6) Determination of use during periods of out-of-
        residence care.--In the case of a taxpayer who--
                    ``(A) becomes physically or mentally incapable of 
                self-care, and
                    ``(B) owns property and uses such property as the 
                taxpayer's principal residence during the 5-year period 
                described in subsection (a) for periods aggregating at 
                least 1 year,
        then the taxpayer shall be treated as using such property as 
        the taxpayer's principal residence during any time during such 
        5-year period in which the taxpayer owns the property and 
        resides in any facility (including a nursing home) licensed by 
        a State or political subdivision to care for an individual in 
the taxpayer's condition.
            ``(7) Determination of marital status.--In the case of any 
        sale or exchange, for purposes of this section--
                    ``(A) the determination of whether an individual is 
                married shall be made as of the date of the sale or 
                exchange, and
                    ``(B) an individual legally separated from his 
                spouse under a decree of divorce or of separate 
                maintenance shall not be considered as married.
    ``(e) Denial of Exclusion for Expatriates.--This section shall not 
apply to any sale or exchange by an individual if the treatment 
provided by section 877(a)(1) applies to such individual.
    ``(f) Election To Have Section Not Apply.--This section shall not 
apply to any sale or exchange with respect to which the taxpayer elects 
not to have this section apply.
    ``(g) Residences Acquired in Rollovers Under Section 1034.--For 
purposes of this section, in the case of property the acquisition of 
which by the taxpayer resulted under section 1034 (as in effect on the 
day before the date of the enactment of this sentence) in the 
nonrecognition of any part of the gain realized on the sale or exchange 
of another residence, in determining the period for which the taxpayer 
has owned and used such property as the taxpayer's principal residence, 
there shall be included the aggregate periods for which such other 
residence (and each prior residence taken into account under section 
1223(7) in determining the holding period of such property) had been so 
owned and used.''
    (b) Repeal of Nonrecognition of Gain on Rollover of Principal 
Residence.--Section 1034 of such Code (relating to rollover of gain on 
sale of principal residence) is hereby repealed.
    (c) Conforming Amendments.--
            (1) The following provisions of the Internal Revenue Code 
        of 1986 are each amended by striking ``section 1034'' and 
        inserting ``section 121'': sections 25(e)(7), 56(e)(1)(A), 
        56(e)(3)(B)(i), 143(i)(1)(C)(i)(I), 163(h)(4)(A)(i)(I), 
        280A(d)(4)(A), 464(f)(3)(B)(i), 1274(c)(3)(B), 6334(a)(13), and 
        7872(f)(11)(A).
            (2) Paragraph (4) of section 32(c) of such Code is amended 
        by striking ``(as defined in section 1034(h)(3))'' and by 
        adding at the end the following new sentence: ``For purposes of 
        the preceding sentence, the term `extended active duty' means 
        any period of active duty pursuant to a call or order to such 
        duty for a period in excess of 90 days or for an indefinite 
        period.''
            (3) Subparagraph (A) of 143(m)(6) of such Code is amended 
        by inserting ``(as in effect on the day before the date of the 
        enactment of the Senior Citizen Bill of Rights)'' after 
        ``1034(e)''.
            (4) Subsection (e) of section 216 of such Code is amended 
        by striking ``such exchange qualifies for nonrecognition of 
        gain under section 1034(f)'' and inserting ``such dwelling unit 
        is used as his principal residence (within the meaning of 
        section 121)''.
            (5) Section 512(a)(3)(D) of such Code is amended by 
        inserting ``(as in effect on the day before the date of the 
        enactment of the Senior Citizen Bill of Rights)'' after 
        ``1034''.
            (6) Paragraph (7) of section 1016(a) of such Code is 
        amended by inserting ``(as in effect on the day before the date 
        of the enactment of the Senior Citizen Bill of Rights)'' after 
        ``1034'' and by inserting ``(as so in effect)'' after 
        ``1034(e)''.
            (7) Paragraph (3) of section 1033(k) of such Code is 
        amended to read as follows:
            ``(3) For exclusion from gross income of gain from 
        involuntary conversion of principal residence, see section 
        121.''
            (8) Subsection (e) of section 1038 of such Code is amended 
        to read as follows:
    ``(e) Principal residences.--If--
            ``(1) subsection (a) applies to a reacquisition of real 
        property with respect to the sale of which gain was not 
        recognized under section 121 (relating to gain on sale of 
        principal residence); and
            ``(2) within 1 year after the date of the reacquisition of 
        such property by the seller, such property is resold by him,
then, under regulations prescribed by the Secretary, subsections (b), 
(c), and (d) of this section shall not apply to the reacquisition of 
such property and, for purposes of applying section 121, the resale of 
such property shall be treated as a part of the transaction 
constituting the original sale of such property.''
            (9) Paragraph (7) of section 1223 of such Code is amended 
        by inserting ``(as in effect on the day before the date of the 
        enactment of the Senior Citizen Bill of Rights)'' after 
        ``1034''.
            (10) Paragraph (7) of section 1250(d) of such Code is 
        amended to read as follows:
            ``(7) Disposition of principal residence.--Subsection (a) 
        shall not apply to a disposition of property to the extent used 
        by the taxpayer as his principal residence (within the meaning 
        of section 121, relating to gain on sale of principal 
        residence).''
            (11) Subsection (c) of section 6012 of such Code is amended 
        by striking ``(relating to one-time exclusion of gain from sale 
        of principal residence by individual who has attained age 55)'' 
        and inserting ``(relating to gain from sale of principal 
        residence)''.
            (12) Paragraph (2) of section 6212(c) of such Code is 
        amended by striking subparagraph (C) and by redesignating 
        subparagraph (E) as subparagraph (C).
            (13) Section 6504 of such Code is amended by striking 
        paragraph (4) and by redesignating the succeeding paragraphs 
        accordingly.
            (14) The item relating to section 121 in the table of 
        sections for part III of subchapter B of chapter 1 of such Code 
        is amended to read as follows:

                              ``Sec. 121. Exclusion of gain from sale 
                                        of principal residence.''
            (15) The table of sections for part III of subchapter O of 
        chapter 1 of such Code is amended by striking the item relating 
        to section 1034.
    (d) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        apply to sales and exchanges after December 31, 1997.
            (2) Binding contracts, etc.--At the election of the 
        taxpayer, the amendments made by this section shall not apply 
        to a sale or exchange after December 31, 1997, if--
                    (A) such sale or exchange is pursuant to a contract 
                which was binding on such date, and at all times before 
                such sale or exchange, or
                    (B) without regard to such amendments, gain would 
                not be recognized under section 1034 of the Internal 
                Revenue Code of 1986 (as in effect on the day before 
                the date of the enactment of this Act) on such sale or 
                exchange by reason of a new residence acquired on or 
                before such date.
        This paragraph shall not apply to any sale or exchange by an 
        individual if the treatment provided by section 877(a)(1) of 
        the Internal Revenue Code of 1986 applies to such individual.

SEC. 4. REPEAL OF FEDERAL TRANSFER TAXES.

    (a) General Rule.--Subtitle B of the Internal Revenue Code of 1986 
(relating to estate, gift, and generation-skipping taxes) is hereby 
repealed.
    (b) Effective Date.--The repeal made by subsection (a) shall apply 
to the estates of decedents dying, and gifts and generation-skipping 
transfers made, after December 30, 1997.

SEC. 5. CONTINUATION OF COVERAGE FOR PERSONS 55 AND OLDER UNTIL 
              ELIGIBLE FOR MEDICARE.

    (a) In General.--Section 4980B(f)(2) of the Internal Revenue Code 
of 1986 is amended by adding at the end the following:
                    ``(F) Coverage for persons 55 and older until 
                eligible for medicare.--In the case of a covered 
                employee who has attained the age of 55 before a 
                qualifying event described in paragraph (3)(B)--
                            ``(i) in no case shall the period of 
                        continued coverage under subparagraph (B)(i) 
                        with respect to such event end before 
the applicable date under subparagraph (B)(iv), and
                            ``(ii) the premium requirements for any 
                        period of continuation of coverage solely be 
                        reason of clause (i) shall be determined by 
                        substituting `110 percent' for `102 percent' in 
                        subparagraph (C)(i), unless the last sentence 
                        of subparagraph (C) otherwise applies.''.
    (b) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendment made by subsection (a) shall apply with respect to 
        plan years beginning after the date of the enactment of this 
        Act.
            (2) Special rule for collective bargaining agreements.--In 
        the case of a group health plan maintained pursuant to one or 
        more collective bargaining agreements between employee 
        representatives and one or more employers ratified before the 
        date of the enactment of this Act, the amendment made by 
        subsection (a) shall not apply to plan years beginning before 
        the later of--
                    (A) the date on which the last of the collective 
                bargaining agreements relating to the plan terminates 
                (determined without regard to any extension thereof 
                agreed to after the date of the enactment of this Act), 
                or
                    (B) the date that is two years after the date of 
                the enactment of this Act.
        For purposes of subparagraph (A), any plan amendment made 
        pursuant to a collective bargaining agreement relating to the 
        plan which amends the plan solely to conform to any requirement 
        added by this section shall not be treated as a termination of 
        such collective bargaining agreement.

SEC. 6. TELEMARKETING FRAUD PREVENTION.

    (a) Forfeiture of fraud proceeds.--
            (1) Civil.--Section 981(a)(1) of title 18, United States 
        Code, is amended by adding at the end the following:
                    ``(G) Any property, real or personal, constituting, 
                derived from, or traceable to, any proceeds obtained 
                directly or indirectly to a violation of section 2326. 
                Notwithstanding any other provision of law, any 
                property forfeited under this subparagraph, or the 
                proceeds of such property, shall be used, to the extent 
                needed, as determined by the Attorney General, for the 
                national information hotline established under section 
                250008 of the Violent Crime Control and Law Enforcement 
                Act of 1994 and other enforcement of section 2326.''.
            (2) Criminal.--Section 982(a) of title 18, United States 
        Code, is amended by adding at the end the following:
            ``(6) The Court, in sentencing an offender under section 
        2326, shall order that the offender forfeit to the United 
        States any real or personal property constituting or derived 
        from proceeds that the offender obtained directly or indirectly 
        as a result of the offense. Any property forfeited under this 
        paragraph, or the proceeds of such property, shall be used, to 
        the extent needed, as determined by the Attorney General, for 
        the national information hotline established under section 
        250008 of the Violent Crime Control and Law Enforcement Act of 
        1994 and other enforcement of section 2326.''.
    (b) Priority For Mandatory Restitution.--Section 2327(a) of title 
18, United States Code, is amended by adding at the end ``The payment 
of an amount due pursuant to such restitution shall have priority over 
the payment of any fine or the forfeiture of any property under section 
982(a)(6) from which such payment could be made or derived.''.
    (c) Sentencing in Cases with Vulnerable Victims.--The United States 
Sentencing Commission shall amend the sentencing guidelines to increase 
by 2 levels the vulnerable victim adjustment.
    (d) Increased punishment for use of foreign location to evade 
prosecution.--The United States Sentencing Commission shall amend the 
sentencing guidelines to increase the offense level for any fraud 
offense by 2 levels if defendant conducted activities to further the 
fraud from a foreign country in order to impede prosecution for the 
offense.
    (e) Information About Victims of Certain Crimes.--Any presentence 
report required under the Federal Rules of Criminal Procedure shall 
include information about the age of each victim of each fraud offense 
for which a defendant is convicted.

SEC. 7. TRANSITIONAL PRIMARY INSURANCE AMOUNTS UNDER TITLE II OF THE 
              SOCIAL SECURITY ACT TO BE NO LOWER THAN THOSE DETERMINED 
              UNDER PRE-1977 FORMULA.

    (a) In General.--Section 215 of the Social Security Act (42 U.S.C. 
415) is amended by adding at the end the following new subsection:

  ``Transitional Primary Insurance Amounts to Be No Lower Than Those 
                   Determined Under Pre-1977 Formula

    ``(j)(1) Notwithstanding any other provision of this title, in any 
case where--
            ``(A) a transitional primary insurance amount as otherwise 
        determined under this section is lower than it would be if it 
        were determined under the pre-1977 formula, or
            ``(B) the maximum amount of benefits payable on the basis 
        of any transitional primary insurance amount as otherwise 
        determined under section 203(a) is lower than it would be if it 
        were determined under the pre-1977 formula,
such transitional primary insurance amount or maximum amount of 
benefits (as otherwise so determined) shall be increased to the amount 
at which it would be fixed if it had been determined under the pre-1977 
formula, as though title II of the Social Security Amendments of 1977 
(and any subsequent amendments to the provisions affected by such 
title) had not been enacted.
    ``(2) For purposes of paragraph (1)--
            ``(A) the term `transtional primary insurance amount' means 
        the primary insurance amount of an individual who attained age 
        62 during the period beginning January 1, 1979, and ending 
        December 31, 1986, and
            ``(B) the term `pre-1977 formula' means (with respect to a 
        primary insurance amount) the provisions governing the 
        computation of primary insurance amounts which were contained 
        in this section as in effect immediately prior to the enactment 
        of the Social Security Amendments of 1977, or (with respect to 
        the maximum amount of benefits payable on the basis of a given 
        primary insurance amount) the provisions governing the 
        determination of maximum benefits which were contained in 
        section 203(a) as in effect immediately prior to the enactment 
        of such amendments.''.
    (b) Conforming Amendments.--
            (1) Section 215(a)(1)(A) of such Act (42 U.S.C. 
        415(a)(1)(A)) is amended by striking ``shall (except as 
        otherwise provided in this section)'' and inserting ``shall, 
        subject to subsection (j) (and except as otherwise provided in 
        this section),''.
            (2) Section 203(a)(1) of such Act (42 U.S.C. 403(a)(1)) is 
        amended by striking ``except as provided in paragraphs (3) and 
        (6)'' and inserting ``subject to section 215(j) and except as 
        provided in paragraphs (3) and (6) of this subsection''.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to monthly insurance benefits payable under title II 
of the Social Security Act for months after the month in which this Act 
is enacted. Notwithstanding section 215(f)(1) of the Social Security 
Act, the Commissioner of Social Security shall recompute primary 
insurance amounts to the extent necessary to carry out the provisions 
of this section.

SEC. 8. PET OWNERSHIP IN FEDERALLY ASSISTED HOUSING BY ELDERLY PERSONS 
              AND PERSONS WITH DISABILITIES.

    Section 227 of the Housing and Urban-Rural Recovery Act of 1983 (12 
U.S.C. 1701r-1) is amended to read as follows:

``SEC. 227. PET OWNERSHIP IN FEDERALLY ASSISTED RENTAL HOUSING.

    ``(a) Right of Ownership.--A resident of a dwelling unit in 
federally assisted rental housing who is an elderly person or a person 
with disabilities may own common household pets or have common 
household pets present in the dwelling unit of such resident, subject 
to the reasonable requirements of the owner of the federally assisted 
rental housing and the requirement that the resident maintain the 
animals responsibly and in compliance with applicable local and State 
public health, animal control, and anticruelty laws. Such reasonable 
requirements may include requiring payment of a nominal fee and pet 
deposit by such residents owning or having pets present, to cover the 
operating costs to the project relating to the presence of pets and to 
establish an escrow account for additional such costs not otherwise 
covered, respectively. To the extent that a public housing agency has 
the authority under Federal law to exempt an assisted family from 
payment of the minimum amount otherwise payable by the family for 
rental of the dwelling unit of the family, the authority may grant an 
exemption from payment, in whole or in part, of any fee or deposit 
required pursuant to the preceding sentence.
    ``(b) Prohibition Against Discrimination.--No owner of federally 
assisted rental housing may restrict or discriminate against any 
elderly person or person with disabilities in connection with admission 
to, or continued occupancy of, such housing by reason of the ownership 
of common household pets by, or the presence of such pets in the 
dwelling unit of, such person.
    ``(c) Definitions.--For purposes of this section, the following 
definitions shall apply:
            ``(1) Federally assisted rental housing.--The term 
        `federally assisted rental housing' means any multifamily 
rental housing project that is--
                    ``(A) public housing (as such term is defined in 
                section 3(b) of the United States Housing Act of 1937;
                    ``(B) assisted with project-based assistance under 
                section 8 of the United States Housing Act of 1937;
                    ``(C) assisted under section 202 of the Housing Act 
                of 1959 (as amended by section 801 of the Cranston-
                Gonzalez National Affordable Housing Act);
                    ``(D) assisted under section 202 of the Housing Act 
                of 1959 (as in effect before the enactment of the 
                Cranston-Gonzalez National Affordable Housing Act);
                    ``(E) assisted under section 811 of the Cranston-
                Gonzalez National Affordable Housing Act;
                    ``(F) assisted under title V of the Housing Act of 
                1949; or
                    ``(G) insured, assisted, or held by the Secretary 
                or a State or State agency under section 236 of the 
                National Housing Act.
            ``(2) Owner.--The term `owner' means, with respect to 
        federally assisted rental housing, the entity or private 
        person, including a cooperative or public housing agency, that 
        has the legal right to lease or sublease dwelling units in such 
        housing (including a manager of such housing having such 
        right).
            ``(3) Elderly person and person with disabilities.--The 
        terms `elderly person' and `person with disabilities' have the 
        meanings given such terms in section 3(b) of the United States 
        Housing Act of 1937.
    ``(d) Regulations.--Subsections (a) through (c) of this section 
shall take effect upon the date of the effectiveness of regulations 
issued by the Secretary to carry out this section. Such regulations 
shall be issued not later than the expiration of the 1-year period 
beginning on the date of the enactment of the Senior Citizen Bill of 
Rights Act of 1997 and after notice and opportunity for public comment 
in accordance with the procedure under section 553 of title 5, United 
States Code, applicable to substantive rules (notwithstanding 
subsections (a)(2), (b)(B), and (d)(3) of such section).''.

SEC. 9. OFF-BUDGET TREATMENT OF EXPENSES OF ADMINISTERING THE OLD-AGE, 
              SURVIVORS, AND DISABILITY INSURANCE PROGRAM UNDER TITLE 
              II OF THE SOCIAL SECURITY ACT.

    (a) Amendments to the Omnibus Budget Reconciliation Act of 1990.--
Section 13301(a) of the Omnibus Budget Reconciliation Act of 1990 is 
amended by inserting ``(including the expenses of administering the 
old-age, survivors, and disability insurance programs)'' before 
``shall'' and by adding at the end the following new sentence: ``No 
expenses of administering the old-age, survivors, and disability 
insurance programs shall be subject to sequestration under the Balanced 
Budget and Emergency Deficit Control Act of 1985.''.
    (b) Amendments to the Balanced Budget and Emergency Deficit Control 
Act of 1985.--
            (1) Section 250(c)(4)(B) of the Balanced Budget and 
        Emergency Deficit Control Act of 1985 is amended by inserting 
        after ``appropriations'' the following: ``, except that 
        expenses for the administration of the social security old-age 
        and survivors insurance trust fund and the disability insurance 
        trust fund (20-8006-0-7-651 and 20-8007-0-7-651) shall not be 
        considered to be within any category''.
            (2) Section 253(b) of such Act is amended by striking 
        ``and'' after paragraph (2), by striking the period and 
        inserting ``; and'' after paragraph (3), and by adding at the 
        end the following new paragraph:
            ``(4) any spending excluded under section 250(c)(4)(B).''.
            (3) Section 256(h)(4) of such Act is amended by inserting 
        at the end the following:
                    ``(J) The old-age, survivors and disability 
                insurance (OASDI) programs.''.
                                 <all>