[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 2104 Introduced in Senate (IS)]

  2d Session
                                S. 2104

                  To amend the Tax Reform Act of 1984.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 24, 2000

 Mr. Gramm (for himself and Mrs. Hutchison) introduced the following 
        bill; which was read twice and referred to the Committee on 
        FinanceYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYY

_______________________________________________________________________

                                 A BILL


 
                  To amend the Tax Reform Act of 1984.

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

SECTION 1. MODIFICATION OF SPECIAL ARBITRAGE RULE FOR CERTAIN FUNDS.

    (a) In General.--Paragraph (1) of section 648 of the Tax Reform Act 
of 1984 is amended to read as follows:
            ``(1) such securities or obligations are held in a fund--
                    ``(A) which, except to the extent of the investment 
                earnings on such securities or obligations, cannot be 
                used, under State constitutional or statutory 
                restrictions continuously in effect since October 9, 
                1969, through the date of issue of the bond issue, to 
                pay debt service on the bond issue or to finance the 
                facilities that are to be financed with the proceeds of 
                the bonds, or
                    ``(B) the annual distributions from which cannot 
                exceed 7 percent of the average fair market value of 
                the assets held in such fund except to the extent 
                distributions are necessary to pay debt service on the 
                bond issue,''.
    (b) Conforming Amendment.--Paragraph (3) of such section is amended 
by striking ``the investment earnings of'' and inserting 
``distributions from''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on January 1, 2000.
                                 <all>