[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 271 Introduced in Senate (IS)]







108th CONGRESS
  1st Session
                                 S. 271

   To amend the Internal Revenue Code of 1986 to allow an additional 
 advance refunding of bonds originally issued to finance governmental 
         facilities used for essential governmental functions.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 30, 2003

   Mr. Smith (for himself, Mr. Corzine, Mr. Schumer, and Ms. Snowe) 
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 bonds originally issued to finance governmental 
         facilities used for essential governmental functions.

    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 Debt Refinancing Act''.

SEC. 2. ADDITIONAL ADVANCE REFUNDINGS OF CERTAIN GOVERNMENTAL BONDS.

    (a) In General.--Section 149(d)(3)(A)(i) of the Internal Revenue 
Code of 1986 (relating to advance refundings of other bonds) is 
amended--
            (1) by striking ``or'' at the end of subclause (I),
            (2) by adding ``or'' at the end of subclause (II), and
            (3) by inserting after subclause (II) the following:
                                    ``(III) the 2nd advance refunding 
                                of the original bond if the original 
                                bond was issued after 1985 or the 3rd 
                                advance refunding of the original bond 
                                if the original bond was issued before 
                                1986, if, in either case, the refunding 
                                bond is issued before the date which is 
                                2 years after the date of the enactment 
                                of this subclause and the original bond 
                                was issued as part of an issue 90 
                                percent or more of the net proceeds of 
                                which were used to finance governmental 
                                facilities used for 1 or more essential 
                                governmental functions (within the 
                                meaning of section 141(c)(2)),''.
    (b) Effective Date.--The amendments made by this section shall 
apply to refunding bonds issued on or after the date of the enactment 
of this Act.
                                 <all>