[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 1290 Introduced in Senate (IS)]







108th CONGRESS
  1st Session
                                S. 1290

   To amend the Internal Revenue Code of 1986 to allow an additional 
   advance refunding of tax-exempt bonds issued for the purchase or 
   maintenance of electric generation, transmission, or distribution 
                                assets.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 19, 2003

 Mr. Hollings 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 allow an additional 
   advance refunding of tax-exempt bonds issued for the purchase or 
   maintenance of electric generation, transmission, or distribution 
                                assets.

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

SECTION 1. ADDITIONAL ADVANCE REFUNDING OF ELECTRICITY BONDS.

    (a) In General.--Subsection (d) of section 149 of the Internal 
Revenue Code of 1986 (relating to advance refunding) is amended by 
redesignating paragraph (7) as paragraph (8) and by inserting after 
paragraph (7) the following new paragraph:
            ``(7) Special rule for certain electricity bonds.--
                    ``(A) General rule.--In the case of a bond 
                described in subparagraph (B), one additional advance 
                refunding after the date of the enactment of this 
                paragraph shall be allowed under paragraph (3)(A)(i) if 
                the requirements of subparagraph (C) are met.
                    ``(B) Bond described.--A bond is described in this 
                subparagraph if such bond is issued as part of an issue 
                the net proceeds of which are used to finance the costs 
                of electric generation, transmission, or distribution 
                assets owned by the issuer or by a consortium of State 
                or local governments which includes the issuer and 
                which jointly own such assets.
                    ``(C) Requirements.--The requirements of this 
                subparagraph are met with respect to any advance 
                refunding of a bond described in subparagraph (B) if--
                            ``(i) no advance refundings of such bond 
                        would be allowed under any provision of law 
                        after the date of the enactment of this 
                        paragraph,
                            ``(ii) the advance refunding bond is the 
                        only other outstanding bond with respect to the 
                        refunded bond, and
                            ``(iii) the requirements of section 148 are 
                        met with respect to all bonds issued under this 
                        subsection.
                    ``(D) Inapplicability to certain bonds.--
                Subparagraph (A) shall not apply with respect to a bond 
                described in section 1400L(e).''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to advance refunding bonds issued after the date of the enactment 
of this Act.
                                 <all>