[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 3145 Introduced in Senate (IS)]







106th CONGRESS
  2d Session
                                S. 3145

  To amend the Internal Revenue Code of 1986 to clarify the treatment 
under the tax-exempt bond rules of prepayments for certain commodities.


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                   IN THE SENATE OF THE UNITED STATES

            October 2 (legislative day, September 22), 2000

  Mr. Breaux introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
  To amend the Internal Revenue Code of 1986 to clarify the treatment 
under the tax-exempt bond rules of prepayments for certain commodities.

    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 ``Municipal Utility Fairness Act of 
2000''.

SEC. 2. ARBITRAGE RULES NOT TO APPLY TO PREPAYMENTS FOR NATURAL GAS AND 
              OTHER COMMODITIES.

    (a) In General.--Subsection (b) of section 148 of the Internal 
Revenue Code of 1986 (defining higher yielding investments) is amended 
by adding at the end the following new paragraph:
            ``(4) Exception for certain prepayments to ensure commodity 
        supply.--The term `investment property' shall not include a 
        prepayment by an issuer of bonds in order to ensure the supply 
        of a commodity necessary to, and used in a business of, a 
        governmental unit.''
    (b) Effective Date.--The amendment made by this section shall take 
effect as if included in the amendments made by section 1301 of the Tax 
Reform Act of 1986.
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