[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3140 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 3140

 To provide tax and other incentives to maintain a vibrant travel and 
  tourism industry, to keep working people working, and to stimulate 
                economic growth, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 16, 2001

 Mr. Kennedy of Rhode Island (for himself and Mr. Hastings of Florida) 
 introduced the following bill; which was referred to the Committee on 
    Ways and Means, and in addition to the Committees on Energy and 
Commerce, Small Business, and Education and the Workforce, for a period 
    to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jursidiction of the 
                          committee concerned

_______________________________________________________________________

                                 A BILL


 
 To provide tax and other incentives to maintain a vibrant travel and 
  tourism industry, to keep working people working, and to stimulate 
                economic growth, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Tourism 
Revitalization And Valued Employee Labor Act of 2001''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Personal travel credit.
Sec. 4. Temporary increase in deduction for business meals and 
                            entertainment.
Sec. 5. Net operating loss carryback for travel and tourism industry.
Sec. 6. Public-private partnership to stimulate travel to and within 
                            the United States.
Sec. 7. Small business travel and tourism disaster loan program.
Sec. 8. Work opportunity credit.
Sec. 9. COBRA continuation coverage and other health insurance coverage 
                            and unemployment compensation for certain 
                            eligible workers.
Sec. 10. National emergency grants under the Workforce Investment Act 
                            of 1998.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) Prior to September 11, 2001, more than 19,000,000 
        Americans had been employed in travel and travel-related jobs, 
        with an estimated annual payroll of $171,500,000,000.
            (2) In recent years, the travel and tourism industry has 
        grown to be the third largest industry as measured by retail 
        sales, with over $582,000,000,000 in expenditures, generating 
        over $99,600,000,000 in Federal, State, and local tax revenues 
        in 2000.
            (3) In 2000, the travel and tourism industry created a 
        $14,000,000,000 balance of trade surplus for the United States.
            (4) The travel and tourism industry and all levels of 
        government are working together to ensure that, following the 
        horrific terrorist attacks on the World Trade Center and the 
        Pentagon on September 11, 2001, travel is safe and secure, and 
        that confidence among travelers is maintained.
            (5) Urgent, short-term measures are necessary to keep 
        working people working and to generate cash flow to assist the 
        travel and tourism industry in its ongoing efforts to retain 
        its economic footing.
            (6) Increased consumer spending on travel and tourism is 
        essential to revitalizing the economy.
            (7) The American public should be encouraged to travel for 
        personal, as well as on business, as a means of keeping working 
        people working and generating cash flow that can help stimulate 
        a rebound in the Nation's economy.

SEC. 3. PERSONAL TRAVEL CREDIT.

    (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 25B the 
following new section:

``SEC. 25C. PERSONAL TRAVEL CREDIT.

    ``(a) Allowance of Credit.--In the case of an individual, there 
shall be allowed as a credit against the tax imposed by this chapter 
for the taxable year an amount equal to the qualified personal travel 
expenses which are paid or incurred by the taxpayer for travel 
occurring after the date of enactment of this section and before 
January 1, 2003.
    ``(b) Maximum Credit.--The credit allowed to a taxpayer under 
subsection (a) for any taxable year shall not exceed $500 ($1,000, in 
the case of a joint return).
    ``(c) Qualified Personal Travel Expenses.--For purposes of this 
section--
            ``(1) In general.--The term `qualified personal travel 
        expenses' means expenses in connection with a qualifying 
        personal trip for--
                    ``(A) travel by commercial transportation, 
                including aircraft, rail, watercraft, or motor vehicle, 
                and
                    ``(B) lodging while away from home at any 
                commercial lodging facility.
        Such term does not include expenses for meals, entertainment, 
        merchandise, or services.
            ``(2) Qualifying personal trip.--
                    ``(A) In general.--The term `qualifying personal 
                trip' means travel within the United States, a 
                possession of the United States, Mexico, or Canada--
                            ``(i) the farthest destination of which is 
                        at least 100 miles from the taxpayer's 
                        residence, and
                            ``(ii) involves an overnight stay at a 
                        commercial lodging facility.
                    ``(B) Only personal travel included.--With respect 
                to any individual, such term shall not include travel 
                if, without regard to this section, any expenses of 
                such individual in connection with such travel are 
                deductible in connection with a trade or business or 
                activity for the production of income.
            ``(3) Commercial lodging facility.--The term `commercial 
        lodging facility' includes any hotel, lodging motel, resort, 
        rooming house, or campground.
    ``(d) Special Rules.--
            ``(1) Denial of credit to dependents.--No credit shall be 
        allowed under this section to any individual with respect to 
        whom a deduction under section 151 is allowable to another 
        taxpayer for a taxable year beginning in the calendar year in 
        which such individual's taxable year begins.
            ``(2) Expenses must be substantiated.-- No credit shall be 
        allowed by subsection (a) unless the taxpayer substantiates by 
        adequate records or by sufficient evidence corroborating the 
        taxpayer's own statement the amount of the expenses described 
        in subsection (c)(1).
    ``(e) Denial of Double Benefit.--No credit shall be allowed under 
this section for any expense for which a deduction is allowed under 
this chapter.''.
    (b) Conforming Amendment.--The table of sections for subpart A of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by inserting before the item relating to section 26 the 
following new item:

                              ``Sec. 25C. Personal travel credit.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after the date of the enactment of this 
Act.

SEC. 4. TEMPORARY INCREASE IN DEDUCTION FOR BUSINESS MEALS AND 
              ENTERTAINMENT.

    (a) In General.--Subsection (n) of section 274 of the Internal 
Revenue Code of 1986 (relating to only 50 percent of meal and 
entertainment expenses allowed as deduction) is amended by adding at 
the end the following new paragraph:
            ``(4) Temporary increase in limitation.--With respect to 
        any expense or item paid or incurred during the period October 
        1, 2001, through December 31, 2002, paragraph (1) shall be 
        applied by substituting `100 percent' for `50 percent'.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years ending after the date of the enactment of this Act.

SEC. 5. NET OPERATING LOSS CARRYBACK FOR TRAVEL AND TOURISM INDUSTRY.

    (a) In General.--Paragraph (1) of section 172(b) of the Internal 
Revenue Code of 1986 (relating to years to which loss may be carried) 
is amended by adding at the end the following new subparagraph:
                    ``(H) Travel and tourism industry losses.--In the 
                case of a taxpayer which has a travel or tourism loss 
                (as defined in subsection (j)) for a taxable year that 
                includes any portion of the period beginning on or 
                after September 12, 2001, and ending before January 1, 
                2003, such travel or tourism loss shall be a net 
                operating loss carryback to each of the 5 taxable years 
                preceding the taxable year of such loss.''.
    (b) Special Rules for Travel and Tourism in Losses.--Section 172 of 
the Internal Revenue Code of 1986 (relating to net operating loss 
deduction) is amended by redesignating subsection (j) as subsection (k) 
and by inserting after subsection (i) the following new subsection:
    ``(j) Rules Relating to Travel and Tourism Industry Losses.--For 
purposes of this section--
            ``(1) In general.--The term `travel or tourism loss' means 
        the lesser of--
                    ``(A) the amount which would be the net operating 
                loss for the taxable year if only income and deductions 
                attributable to the travel or tourism business are 
                taken into account, or
                    ``(B) the amount of the net operating loss for such 
                taxable year.
            ``(2) Travel or tourism business.--The term `travel or 
        tourism business' includes the active conduct of a trade or 
        business directly related to travel or tourism, including--
                    ``(A) the provision of commercial transportation 
                (including rentals) or lodging,
                    ``(B) the operation of airports or other 
                transportation facilities or the provision of services 
                or the sale of merchandise within such facilities,
                    ``(C) the provision of services as a travel agent,
                    ``(D) the operation of convention, trade show, or 
                entertainment facilities, and
                    ``(E) the provision of other services as specified 
                by the Secretary.
            ``(3) Coordination with subsection (b)(2).--For purposes of 
        applying subsection (b)(2), a travel or tourism loss for any 
        taxable year shall be treated in a manner similar to the manner 
        in which a specified liability loss is treated.
            ``(4) Election.--Any taxpayer entitled to a 5-year 
        carryback under subsection (b)(1)(H) from any loss year may 
        elect to have the carryback period with respect to such loss 
        year determined without regard to subsection (b)(1)(H). Such 
        election shall be made in such manner as may be prescribed by 
        the Secretary and shall be made by the due date (including 
        extensions of time) for filing the taxpayer's return for the 
        taxable year of the net operating loss. Such election, once 
        made for any taxable year, shall be irrevocable for such 
        taxable year.
            ``(5) Related taxpayers.--Under regulations prescribed by 
        the Secretary and at the election of a taxpayer entitled to a 
        5-year carryback under subsection (b)(1)(H) with respect to a 
        travel or tourism loss, such loss may be credited against the 
        taxable income earned during the 5-year carryback period by any 
        member of a controlled group of corporations (as defined in 
        section 1563(a)) of which the taxpayer is a component or 
        additional member within the meaning of section 1563(b).''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years ending before, on, or after the date of the 
enactment of this Act.

SEC. 6. PUBLIC-PRIVATE PARTNERSHIP TO STIMULATE TRAVEL TO AND WITHIN 
              THE UNITED STATES.

    (a) Promotional Efforts To Encourage Travel.--The Secretary of 
Commerce is authorized to award grants and to make direct expenditures 
in support of a coordinated, national promotional campaign developed in 
consultation with the private sector to encourage individuals to travel 
to and within the United States.
    (b) Authorization of Appropriations.--
            (1) Authorization.--Subject to paragraphs (3) and (4), 
        there is authorized to be appropriated $30,000,000 for fiscal 
        year 2002 and $20,000,000 for fiscal year 2003 for the purpose 
        of funding promotional programs to encourage individuals to 
        travel to and within the United States.
            (2) Designation.--Congress designates the entire amounts 
        described in paragraph (1) as emergency requirements pursuant 
        to section 252(e) of the Balanced Budget and Emergency Deficit 
        Control Act of 1985.
            (3) Conditions on disbursement of funds.--None of the funds 
        authorized to be appropriated under paragraph (1) may be 
        disbursed by the Secretary until he has--
                    (A) determined that a comparable amount of funds 
                will be expended collectively by the private sector and 
                state and local governments, whether in the form of 
                cash or in-kind contributions, in support of such 
                promotional efforts; and
                    (B) established appropriate procedures to maximize 
                the value of the Federal Government's expenditure of 
                funds to promote travel to and within the United 
                States.
            (4) Restrictions on use of funds.--None of the funds 
        authorized to be appropriated under paragraph (1) may be used 
        for purposes other than radio, television, and print 
        advertising and marketing programs designed to promote travel 
        to and within the United States.
            (5) Report to congress.--With respect to funds authorized 
        for expenditure in fiscal years 2002 and 2003, not later than 
        March 30, 2003, and March 30, 2004, as appropriate, the 
        Secretary shall submit to the Committee on Energy and Commerce 
        and the Committee on Transportation and Infrastructure of the 
        House of Representatives and the Committee on Commerce, 
        Science, and Transportation of the Senate a detailed report 
        setting forth--
                    (A) the manner in which the appropriated funds were 
                expended; and
                    (B) total expenditures by the private sector and 
                state and local governments, in the form of cash and 
                in-kind contributions, in support of the programs 
                authorized under this section to encourage individuals 
                to travel to and within the United States.

SEC. 7. SMALL BUSINESS TRAVEL AND TOURISM DISASTER LOAN PROGRAM.

    (a) In General.--The Administrator of the Small Business 
Administration may make loans under section 7(b)(2) of the Small 
Business Act (15 U.S.C. 636(b)(2)) to travel or tourism small business 
concerns that suffered substantial economic injury as a result of the 
terrorist attacks against the United States that occurred on September 
11, 2001.
    (b) Special Rules.--Notwithstanding the requirements of subsections 
(b) and (c) of section 7 of the Small Business Act (15 U.S.C. 636), the 
following special rules apply to loans described in subsection (a):
            (1) Interest rate.--The Administrator may charge interest 
        on any such loan. Such charge may not exceed a rate of 4 
        percent per year.
            (2) Use of loan proceeds.--In addition to any purpose for 
        which the proceeds of a loan made under section 7(b)(2) of the 
        Small Business Act (15 U.S.C. 636(b)(2)) could otherwise be 
        used, the proceeds of any loan made under subsection (a) may be 
        used for the following purposes:
                    (A) Retaining existing employees.
                    (B) Continuing health care or other benefits for 
                employees laid off by the concern after September 11, 
                2001.
                    (C) Refinancing indebtedness incurred prior to 
                September 11, 2001.
            (3) Disaster area.--No declaration of a disaster area is 
        required.
    (c) Termination.--The Administrator may not make a loan pursuant to 
the special rules of this section after December 31, 2002.
    (d) Travel or Tourism Small Business Concern.--For the purposes of 
this section, the term ``travel or tourism small business concern'' 
means a small business concern (as defined in section 3(a) of the Small 
Business Act (15 U.S.C. 632(a)) that provides a majority of the goods 
and services produced by the concern to businesses in the travel or 
tourism industry, or that is itself in the travel or tourism industry, 
including any small business concern described in sector 72, subsectors 
481, 487, and 713, and code 532111 of the North American Industry 
Classification System codes (as described in section 121.201 of title 
13, Code of Federal Regulations, as in effect on January 2, 2001).

SEC. 8. WORK OPPORTUNITY CREDIT.

    Subparagraph (B) of section 51(c)(4) of the Internal Revenue Code 
of 1986 is amended by striking ``2001'' and inserting ``2002''.

SEC. 9. COBRA CONTINUATION COVERAGE AND OTHER HEALTH INSURANCE COVERAGE 
              AND UNEMPLOYMENT COMPENSATION FOR CERTAIN ELIGIBLE 
              WORKERS.

    (a) Eligible Employee Defined.--For purposes of this section:
            (1) In general.--The term ``eligible employee'' means an 
        individual who has become totally or partially separated, or is 
        threatened to become totally or partially separated, from 
        employment with a travel or tourism business (as defined in 
        section 172(j)(2) of the Internal Revenue Code of 1986) as a 
        consequence of--
                    (A) reductions in services by a travel or tourism 
                business or hospitality business (including hotels, 
                restaurants, and catering) as a result of a terrorist 
                action or security measure, as determined by the 
                Secretary of Labor (in this section referred to as the 
                ``Secretary''); or
                    (B) a closure of such a travel or tourism or 
                hospitality business in the United States as a result 
                of a terrorist action or security measure, as 
                determined by the Secretary.
            (2) Total or partial separation.--Determinations as to 
        whether an individual has become totally or partially 
        separated, or is threatened to become totally or partially 
        separated, from employment shall be made in accordance with 
        such criteria as the Secretary shall prescribe, taking into 
        consideration the provisions of section 247 of the Trade Act of 
        1974 and the purposes of this section.
    (b) COBRA Continuation Coverage Assistance.--
            (1) In general.--In the case of an eligible employee, 
        subject to subsection (e), the Secretary shall provide for 
        payment of premiums for COBRA continuation coverage with 
        respect to such employee and members of the individual's 
        family. Such payment may be made through appropriate direct 
        payment arrangements with the group health plan or health 
        insurance issuer involved. The Secretary may require 
        documentation of election of benefits or proof of premium 
        payment.
            (2) COBRA continuation coverage defined.--For purposes of 
        this section, the term ``COBRA continuation coverage'' means 
        coverage under a COBRA continuation provision (as defined in 
        section 2791(d)(4) of the Public Health Service Act) or under 
        section 8905a of title 5, United States Code.
    (c) Optional Temporary Medicaid Coverage for Uninsured Eligible 
Employees.--
            (1) In general.--Notwithstanding any other provision of 
        law, subject to subsection (e), a State may elect to provide, 
        under its medicaid program under title XIX of the Social 
        Security Act, medical assistance in the case of an individual 
        who is eligible for benefits under this bill, who is not 
        eligible for COBRA continuation coverage, and who is uninsured. 
        For purposes of this subsection, an individual is considered to 
        be uninsured if the individual is not covered under a group 
        health plan, health insurance coverage, or under such program 
        or a program under title XVIII or XXI of such Act.
            (2) Limitation to 18 months of coverage.--Assistance under 
        this subsection shall end with respect to an individual on the 
        earlier of--
                    (A) the date the individual is no longer uninsured; 
                or
                    (B) 18 months after the date the individual is 
                first determined to be eligible for medical assistance 
                under this subsection.
            (3) Special rules.--In the case of medical assistance 
        provided under this subsection--
                    (A) the Federal medical assistance percentage under 
                section 1905(b) of the Social Security Act shall be 100 
                percent;
                    (B) a State may elect to disregard any income, 
                asset, or resource limitation imposed under the State 
                medicaid plan or under title XIX of such Act;
                    (C) such medical assistance shall not be provided 
                for periods before the date the individual is 
                determined eligible for such assistance;
                    (D) a State may elect to make eligible for such 
                assistance a dependent spouse or children of an 
                individual eligible for medical assistance under 
                paragraph (1), if such spouse or children are 
                uninsured; and
                    (E) individuals eligible for medical assistance 
                under this subsection shall be deemed to be described 
                in the list of individuals described in the matter 
                preceding paragraph (1) of section 1905(a) of such Act.
    (d) Assistance for Employees Not Eligible for Unemployment 
Benefits.--
            (1) Applicability.--This subsection applies with respect to 
        individuals who--
                    (A) qualify as eligible employees by virtue of 
                having become totally separated from employment in a 
                State, and
                    (B) would not otherwise be eligible for 
                compensation under the unemployment compensation law of 
                that State (as determined under paragraph (5)).
            (2) Temporary unemployment benefits.--The Secretary may, in 
        accordance with such terms and conditions as the Secretary 
        shall prescribe based on the Emergency Unemployment 
        Compensation Act of 1991 or similar provisions of law, and 
        subject to subsection (e), enter into an agreement with a 
        State, whereby--
                    (A) individuals described in paragraph (1) who 
                become separated from employment in such State would be 
                eligible to receive temporary unemployment benefits 
                from such State, and
                    (B) reimbursement to such State would be made under 
                this subsection for--
                            (i) the full amount of any temporary 
                        unemployment benefits paid out by such State 
                        under such agreement, and
                            (ii) reasonable costs incurred by such 
                        State in the administration of such agreement.
            (3) Duration and amount of benefits.--Under such an 
        agreement--
                    (A) benefits shall be available to an individual as 
                long as the individual's unemployment continues or 
                until the individual is reemployed in a suitable 
                position, but for no longer than 26 weeks of 
                unemployment, and
                    (B) such benefits shall not, for a week of 
                unemployment, exceed the average weekly benefit 
                received by an individual in the State under the State 
                unemployment compensation law during the most recent 
                52-week period for which data are available (as of the 
                time of such individual's application for benefits).
            (4) Definitions.--For purposes of this subsection, the 
        terms ``compensation'', ``State'', and ``week'' have the 
        respective meanings given such terms under section 205 of the 
        Federal-State Extended Unemployment Compensation Act of 1970 
        (26 U.S.C. 3304 note).
            (5) Regulations.--The Secretary may prescribe any operating 
        instructions or regulations necessary to carry out this 
        subsection.
    (e) Funding.--There is hereby authorized to be appropriated 
$1,750,000,000 to carry out this section in fiscal years 2002 and 2003.

SEC. 10. NATIONAL EMERGENCY GRANTS UNDER THE WORKFORCE INVESTMENT ACT 
              OF 1998.

    (a) In General.--Section 173(a) of the Workforce Investment Act of 
1998 (29 U.S.C. 2918(a)) is amended--
            (1) in paragraph (2), by striking ``and'' at the end;
            (2) in paragraph (3), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(4) to a State or local board that applies for assistance 
        under subsection (f) to provide employment and training 
        assistance to travel or tourism industry workers who are 
        dislocated as a result of the terrorist attacks against the 
        United States that occurred on September 11, 2001.''.
    (b) Requirements.--Section 173 of the Workforce Investment Act of 
1998 (29 U.S.C. 2918) is amended by adding at the end the following:
    ``(f) Relief for Travel or Tourism Industry Workers Dislocated as a 
Result of the Terrorist Attacks of September 11, 2001.--
            ``(1) Grant recipient eligibility.--To be eligible to 
        receive a grant under subsection (a)(4), a State or local board 
        shall submit to the Secretary an application at such time, in 
        such manner, and containing such information as the Secretary 
        may require.
            ``(2) Participant eligibility.--To be eligible to receive 
        employment and training assistance under a grant awarded under 
        subsection (a)(4), a worker shall be an individual who has 
        become totally or partially separated, or is threatened to 
        become totally or partially separated, from employment with a 
        travel or tourism business (as defined in section 172(j)(2) of 
        the Internal Revenue Code of 1986) as a consequence of--
                    ``(A) reductions in services by a travel or tourism 
                business or hospitality business (including hotels, 
                restaurants, and catering) as a result of the terrorist 
                attacks against the United States that occurred on 
                September 11, 2001, or a security measure related to 
                such attacks, as determined by the Secretary; or
                    ``(B) a closure of such a travel or tourism or 
                hospitality business in the United States as a result 
                of such terrorist attacks or security measure, as 
                determined by the Secretary.
            ``(3) Authorization of appropriations.--There is authorized 
        to be appropriated $50,000,000 for each of the fiscal years 
        2002 and 2003 for the award of grants under subsection (a)(4) 
        in accordance with this subsection.''.
                                 <all>