[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1856 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 1856

     To provide relief from Federal tax liability arising from the 
 settlement of claims brought by African American farmers against the 
Department of Agriculture for discrimination in farm credit and benefit 
  programs and to exclude amounts received under such settlement from 
 means-based determinations under programs funded in whole or in part 
                          with Federal funds.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 15, 2001

Mr. Watts of Oklahoma introduced the following bill; which was referred 
                   to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
     To provide relief from Federal tax liability arising from the 
 settlement of claims brought by African American farmers against the 
Department of Agriculture for discrimination in farm credit and benefit 
  programs and to exclude amounts received under such settlement from 
 means-based determinations under programs funded in whole or in part 
                          with Federal funds.

    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 ``Black Farmer Fairness Act of 2001''.

SEC. 2. RELIEF FROM FEDERAL TAX LIABILITY ARISING FROM THE SETTLEMENT 
              OF CLAIMS BY AFRICAN AMERICAN FARMERS AGAINST THE 
              DEPARTMENT OF AGRICULTURE FOR DISCRIMINATION IN FARM 
              CREDIT AND BENEFIT PROGRAMS.

    Notwithstanding any provision of the Internal Revenue Code of 1986, 
in the case of a person who is certified to be a member of the 
plaintiff class in the settlement of the consolidated actions entitled 
``Pigford, et al. v. Glickman'', No. 97-1978 (D.D.C.) (PLF), and 
``Brewington, et al. v. Glickman'' No. 98-1693 (D.D.C.) (PLF)--
            (1) gross income for purposes of subtitle A of such Code 
        (relating to income taxes) shall not include--
                    (A) any amount of a cash payment received under 
                such settlement, and
                    (B) any amount which (but for this section) would 
                be includible in gross income by reason of the 
                discharge of indebtedness pursuant to such settlement, 
                and
            (2) no amount shall be includible in the gross estate of 
        any such person for purposes of chapter 11 of such Code 
        (relating to estate taxes) by reason of an interest in such 
        settlement.

SEC. 3. TREATMENT OF PAYMENTS UNDER PROGRAMS FUNDED IN WHOLE OR IN PART 
              WITH FEDERAL FUNDS.

    Notwithstanding any other provision of law, with respect to any 
calendar year in which a person receives an amount under the settlement 
described in section 2, such amount shall not--
            (1) be considered income or resources in determining 
        eligibility for,
            (2) be used as a basis for denying or reducing funds under, 
        or
            (3) be used as a basis for determining the amount of 
        assistance under,
any program funded in whole or in part with Federal funds.
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