[Congressional Record Volume 143, Number 93 (Friday, June 27, 1997)]
[Senate]
[Pages S6763-S6777]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                          AMENDMENTS SUBMITTED

                                 ______
                                 

                 THE REVENUE RECONCILIATION ACT OF 1997

                                 ______
                                 

                        GRAMM AMENDMENT NO. 566

  Mr. GRAMM proposed an amendment to the bill (S. 949) to provide 
revenue reconciliation pursuant to section 104(b) of the concurrent 
resolution on the budget for fiscal year 1998; from the Committee on 
Finance; as follows:

       At the appropriate place, add the following:

     SEC.   . GUARANTEED BALANCED BUDGET.

       (a) Maximum Deficit Amount.--Section 253 of the Balanced 
     Budget and Emergency Deficit Control Act of 1985 is amended--
       (1) in subsection (b), in the last sentence by striking the 
     period and inserting ``and $10,000,000,000 for fiscal years 
     1998 and thereafter.''; and
       (2) by striking subsections (g) and (h) and inserting the 
     following:
       ``(g) Maximum Deficit Amount.--In this section--
       ``(1) Notwithstanding any provision of this *  *  *  the 
     term `deficit' shall have the same meaning as the term 
     `deficit' in section 3(6) of the Congressional Budget and 
     Impoundment Control Act of 1974 as on the day before the date 
     of enactment of the Budget Enforcement Act of 1990; and
       ``(2) the term `maximum deficit amount' means--
       ``(A) with respect to fiscal year 1998, $90,500,000,000;
       ``(B) with respect to fiscal year 1999, $89,500,000,000;
       ``(C) with respect to fiscal year 2000, $82,900,000,000;
       ``(D) with respect to fiscal year 2001, $53,100,000,000;
       ``(E) with respect to fiscal year 2002 and fiscal years 
     thereafter, zero.''.
       (b) Look-Back Sequester.--Section 253 of the Balanced 
     Budget and Emergency Deficit Control Act of 1985 is amended 
     by adding at the end thereof the following new subsection:
       ``(h) Look-Back Sequester--
       ``(1) In general.--On July 1 of each fiscal year, the 
     Director of OMB shall determine if laws effective during the 
     current fiscal year will cause the deficit to exceed the 
     maximum deficit amount for such fiscal year. If the limit is 
     exceeded, there shall be a preliminary sequester on July 1 to 
     eliminate the excess.
       ``(2) Permanent sequester.--Budget authority sequestered on 
     July 1 pursuant to paragraph (1) shall be permanently 
     canceled on July 15.
       ``(3) No margin.--The margin for determining a sequester 
     under this subsection shall be zero.

[[Page S6764]]

       ``(4) Sequestration procedures.--The provision of 
     subsections (c), (d), and (e) of this section shall apply to 
     a sequester under this subsection.''.
       (c) Offsetting Tax Cuts With Cuts in Discretionary 
     Spending.--Section 252 of the Balanced Budget and Emergency 
     Deficit Control Act of 1985 is amended by adding at the end 
     the following:
       ``(f) Offsets With Discretionary Spending.--For purposes of 
     subsection (b), revenue reductions increasing the deficit may 
     be offset by reductions in discretionary appropriated amounts 
     reducing the deficit.''.
       (d) Adjustment of Discretionary Spending Levels for Tax 
     Cuts.--Section 251(b)(2) of the Balanced Budget and Emergency 
     Deficit Control Act of 1985 is amended by adding at the end 
     the following:
       ``(I) Tax relief adjustments.--If, for any fiscal year or 
     years, appropriations for discretionary appropriations are 
     reduced that Congress and the President designate in statute 
     as offsets for tax relief, the adjustments shall be the total 
     amount of such reductions in appropriations in discretionary 
     accounts and the outlays flowing in all years from such 
     reductions.''
       (e) Notwithstanding any provision in this or any other Act, 
     section 253 of the Balanced Budget and Emergency Deficit 
     Control Act is extended through fiscal year 2002.
                                 ______
                                 

                       JEFFORDS AMENDMENT NO. 567

  (Ordered to lie on the table.)
  Mr. JEFFORDS submitted an amendment intended to be proposed by him to 
the bill, S. 949, supra; as follows:

       On page 164, in the matter between lines 16 and 17, insert 
     after the item relating to section 1400B the following:

``Sec. 1400C. Trust Fund for DC schools.''

       On page 173, line 10, strike ``$75,000,000'' and insert 
     ``$60,000,000''.
       On page 174, strike lines 21 through 23, and insert:
       ``(a) Exclusion.--
       ``(1) In general.--Gross income shall not include qualified 
     capital gain from the sale or exchange of any DC asset held 
     for more than 5 years.
       ``(2) Special 10 percent rate for dc assets acquired in 
     1998.--
       ``(A) In general.--In the case of any DC asset acquired 
     during calendar year 1998--
       ``(i) paragraph (1) shall not apply to any qualified 
     capital gain from the sale or exchange of such asset, and
       ``(ii) the qualified capital gain described in clause (i) 
     shall be treated as adjusted net capital gain described in 
     section 1(h)(1)(D) for the taxable year of the sale or 
     exchange (and the amount under section 1(h)(1)(D)(i) for such 
     taxable year shall be increased by the amount of such gain).
       ``(B) Special rule.--For purposes of subparagraph (A), any 
     DC asset the basis of which is determined in whole or in part 
     by reference to the basis of an asset to which subparagraph 
     (A) applies shall be treated as a DC asset acquired during 
     calendar year 1998.
       On page 181, between lines 5 and 6, insert the following:

     ``SEC. 1400C. TRUST FUND FOR DC SCHOOLS.

       ``(a) Creation of Fund.--There is established in the 
     Treasury of the United States a trust fund to be known as the 
     `Trust Fund for DC Schools', consisting of such amounts as 
     may be appropriated or credited to the Fund as provided in 
     this section.
       ``(b) Transfer to Trust Fund of Amounts Equivalent to 
     Certain Taxes.--
       ``(1) In general.--There are hereby appropriated to the 
     Trust Fund for DC Schools amounts equivalent to the 
     applicable percentage of revenues received in the Treasury 
     from income taxes imposed by this chapter for any taxable 
     year beginning after December 31, 1997, and before January 1, 
     2008, on individual taxpayers who are residents of the 
     District of Columbia as of the last day of such taxable year.
       ``(2) Applicable percentage.--For purposes of paragraph 
     (1), the term `applicable percentage' means the percentage 
     which the Secretary determines necessary to result in the 
     following amounts being appropriated to the Trust Fund under 
     paragraph (1):
       ``(A) $5,000,000 for each of the calendar years 1998 
     through 2007.
       ``(3) Transfer of amounts.--The amounts appropriated by 
     paragraph (1) shall be transferred at least monthly from the 
     general fund of the Treasury to the Trust Fund for DC Schools 
     on the basis of estimates made by the Secretary of the 
     amounts referred to in such paragraph. Proper adjustments 
     shall be made in the amounts subsequently transferred to the 
     extent prior estimates were in excess of or less than the 
     amounts required to be transferred.
       ``(c) Expenditures From Fund.--
       ``(1) In general.--Amounts in the Trust Fund for DC Schools 
     are hereby appropriated, and shall be available without 
     fiscal year limitation, for payment by the Secretary of debt 
     service on qualified DC school bonds.
       ``(2) Qualified dc school bonds.--The term `qualified DC 
     school bonds' means bonds which--
       ``(A) are issued after March 31, 1998, by the District of 
     Columbia to finance the construction, rehabilitation, and 
     repair of schools under the jurisdiction of the government of 
     the District of Columbia, and
       ``(B) are certified by the District of Columbia Control 
     Board as meeting the requirements of subparagraph (A) after 
     giving 60 days notice of any proposed certification to the 
     Subcommittees on the District of Columbia of the Committees 
     on Appropriations of the House of Representatives and the 
     Senate.
       ``(d) Report.--It shall be the duty of the Secretary to 
     hold the Trust Fund for DC Schools and to report to the 
     Congress each year on the financial condition and the results 
     of the operations of such Fund during the preceding fiscal 
     year and on its expected condition and operations during the 
     next fiscal year. Such report shall be printed as a House 
     document of the session of the Congress to which the report 
     is made.
       ``(e) Investment.--
       ``(1) In general.--It shall be the duty of the Secretary to 
     invest such portion of the Trust Fund for DC Schools as is 
     not, in the Secretary's judgment, required to meet current 
     withdrawals. Such investments may be made only in interest-
     bearing obligations of the United States. For such purpose, 
     such obligations may be acquired--
       ``(A) on original issue at the issue price, or
       ``(B) by purchase of outstanding obligations at the market 
     price.
       ``(2) Sale of obligations.--Any obligation acquired by the 
     Trust Fund for DC Schools may be sold by the Secretary at the 
     market price.
       ``(3) Interest on certain proceeds.--The interest on, and 
     the proceeds from the sale or redemption of, any obligations 
     held in the Trust Fund for DC Schools shall be credited to 
     and form a part of the Trust Fund for DC Schools.''
                                 ______
                                 

                       BUMPERS AMENDMENT NO. 568

  Mr. BUMPERS proposed an amendment to the bill, S. 949, supra; as 
follows:

       At the appropriate place add the following:
       ``(f) Budgetary Treatment of Sales of Certain Federal 
     Lands.--The amounts realized from the sale or lease of lands 
     or interests in lands which are part of the National Park 
     System, the Forest Service System or the U.S. Fish and 
     Wildlife refuge system shall not be scored with respect to 
     the level of budget authority, outlays, or revenues.''
                                 ______
                                 

                        CRAIG AMENDMENT NO. 569

  Mr. CRAIG proposed an amendment to the bill, S. 949, supra; as 
follows:

       At the appropriate place insert the following:

     SEC.   . RESTRICTION ON THE USE OF TAX INCREASES.

       (a) In General.--In the Senate, for purposes of section 202 
     of House Concurrent Resolution 67 (104th Congress), it shall 
     not be in order to consider any bill, joint resolution, 
     amendment, motion, or conference report that provides an 
     increase in direct spending offset by an increase in 
     receipts.
       (b) Waiver.--This section may be waived or suspended in the 
     Senate only by the affirmative vote of three-fifths of the 
     Members, duly chosen and sworn.
       (c) Appeals.--Appeals in the Senate from the decisions of 
     the Chair relating to any provision of this section shall be 
     limited to 1 hour, to be equally divided between, and 
     controlled by, the appellant and the manager of the 
     concurrent resolution, bill, or joint resolution, as the case 
     may be. An affirmative vote of three-fifths of the Members of 
     the Senate, duly chosen and sworn, shall be required in the 
     Senate to sustain an appeal of the ruling of the Chair on a 
     point of order raised under this section.
       (d) Determination of Budget Levels.--For purposes of this 
     section, the levels of direct spending and receipts for a 
     fiscal year shall be determined on the basis of estimates 
     made by the Committee on the Budget of the Senate.
                                 ______
                                 

                BROWNBACK (AND OTHERS) AMENDMENT NO. 570

  Mr. BROWNBACK (for himself, Mr. Kohl, and Mr. McCain) proposed an 
amendment to the bill, S. 949, supra; as follows:

       At the end of the bill, add the following:
                        TITLE __--BUDGET CONTROL

     SEC. __01. SHORT TITLE; PURPOSE.

       (a) Short Title.--This title may be cited as the 
     ``Bipartisan Budget Enforcement Act of 1997''.
       (b) Purpose.--The purpose of this title is--
       (1) to ensure a balanced Federal budget by fiscal year 
     2002;
       (2) to ensure that the Bipartisan Budget Agreement is 
     implemented; and
       (3) to create a mechanism to monitor total costs of direct 
     spending programs, and, in the event that actual or projected 
     costs exceed targeted levels, to require the President and 
     Congress to address adjustments in direct spending.

     SEC. __02. ESTABLISHMENT OF DIRECT SPENDING TARGETS.

       (a) In General.--The initial direct spending targets for 
     each of fiscal years 1998 through 2002 shall equal total 
     outlays for all direct spending except net interest as 
     determined by the Director of the Office of Management and 
     Budget (hereinafter referred to in this title as the 
     ``Director``) under subsection (b).
       (b) Initial Report by Director.--
       (1) In general.--Not later than 30 days after the date of 
     enactment of this title, the Director shall submit a report 
     to Congress

[[Page S6765]]

     setting forth projected direct spending targets for each of 
     fiscal years 1998 through 2002.
       (2) Projections and assumptions.--The Director's 
     projections shall be based on legislation enacted as of 5 
     days before the report is submitted under paragraph (1). The 
     Director shall use the same economic and technical 
     assumptions used in preparing the concurrent resolution on 
     the budget for fiscal year 1998 (H.Con.Res. 84).

     SEC. __03. ANNUAL REVIEW OF DIRECT SPENDING AND RECEIPTS BY 
                   PRESIDENT.

       As part of each budget submitted under section 1105(a) of 
     title 31, United States Code, the President shall provide an 
     annual review of direct spending and receipts, which shall 
     include--
       (1) information on total outlays for programs covered by 
     the direct spending targets, including actual outlays for the 
     prior fiscal year and projected outlays for the current 
     fiscal year and the 5 succeeding fiscal years; and
       (2) information on the major categories of Federal 
     receipts, including a comparison between the levels of those 
     receipts and the levels projected as of the date of enactment 
     of this title.

     SEC. __04. SPECIAL DIRECT SPENDING MESSAGE BY PRESIDENT.

       (a) Trigger.--If the information submitted by the President 
     under section __03 indicates--
       (1) that actual outlays for direct spending in the prior 
     fiscal year exceeded the applicable direct spending target; 
     or
       (2) that outlays for direct spending for the current or 
     budget year are projected to exceed the applicable direct 
     spending targets,
     the President shall include in his budget a special direct 
     spending message meeting the requirements of subsection (b).
       (b) Contents.--
       (1) Inclusions.--The special direct spending message shall 
     include--
       (A) an analysis of the variance in direct spending over the 
     direct spending targets; and
       (B) the President's recommendations for addressing the 
     direct spending overages, if any, in the prior, current, or 
     budget year.
       (2) Additional matters.--The President's recommendations 
     may consist of any of the following:
       (A) Proposed legislative changes to recoup or eliminate the 
     overage for the prior, current, and budget years in the 
     current year, the budget year, and the 4 outyears.
       (B) Proposed legislative changes to recoup or eliminate 
     part of the overage for the prior, current, and budget year 
     in the current year, the budget year, and the 4 outyears, 
     accompanied by a finding by the President that, because of 
     economic conditions or for other specified reasons, only some 
     of the overage should be recouped or eliminated by outlay 
     reductions or revenue increases, or both.
       (C) A proposal to make no legislative changes to recoup or 
     eliminate any overage, accompanied by a finding by the 
     President that, because of economic conditions or for other 
     specified reasons, no legislative changes are warranted.
       (c) Proposed Special Direct Spending Resolution.--If the 
     President recommends reductions consistent with subsection 
     (b)(2)(A) or (B), the special direct spending message shall 
     include the text of a special direct spending resolution 
     implementing the President's recommendations through 
     reconciliation directives instructing the appropriate 
     committees of the House of Representatives and Senate to 
     determine and recommend changes in laws within their 
     jurisdictions. If the President recommends no reductions 
     pursuant to (b)(2)(C), the special direct spending message 
     shall include the text of a special resolution concurring in 
     the President's recommendation of no legislative action.

     SEC. __05. REQUIRED RESPONSE BY CONGRESS.

       (a) In General.--It shall not be in order in the House of 
     Representatives or the Senate to consider a concurrent 
     resolution on the budget unless that concurrent resolution 
     fully addresses the entirety of any overage contained in the 
     applicable report of the President under section __04 through 
     reconciliation directives.
       (b) Waiver and Suspension.--This section may be waived or 
     suspended in the Senate only by the affirmative vote of 
     three-fifths of the Members, duly chosen and sworn. This 
     section shall be subject to the provisions of section 258 of 
     the Balanced Budget and Emergency Deficit Control Act of 
     1985.
       (c) Appeals.--Appeals in the Senate from the decisions of 
     the Chair relating to any provision of this section shall be 
     limited to 1 hour, to be equally divided between, and 
     controlled by, the appellant and the manager of the bill or 
     joint resolution, as the case may be. An affirmative vote of 
     three-fifths of the Members of the Senate, duly chosen and 
     sworn, shall be required in the Senate to sustain an appeal 
     of the ruling of the Chair on a point of order raised under 
     this section.

     SEC. __06. RELATIONSHIP TO BALANCED BUDGET AND EMERGENCY 
                   DEFICIT CONTROL ACT.

       Reductions in outlays or increases in receipts resulting 
     from legislation reported pursuant to section __05 shall not 
     be taken into account for purposes of any budget enforcement 
     procedures under the Balanced Budget and Emergency Deficit 
     Control Act of 1985.

     SEC. __07. ESTIMATING MARGIN.

       For any fiscal year for which the overage is less than one-
     half of 1 percent of the direct spending target for that 
     year, the procedures set forth in sections __04 and __05 
     shall not apply.

     SEC. __08. EFFECTIVE DATE.

       This title shall apply to direct spending targets for 
     fiscal years 1998 through 2002 and shall expire at the end of 
     fiscal year 2002.
                                 ______
                                 

                  FRIST (AND OTHERS) AMENDMENT NO. 571

  Mr. FRIST (for himself, Mr. Conrad, Mr. Abraham, Mr. Sessions, and 
Mr. Robb) proposed an amendment to the bill, S. 949, supra; as follows:

       At the appropriate place, add the following:

     SEC.   . ENFORCEMENT OF BALANCED BUDGET.

       (a) In the Senate.--Title III of the Congressional Budget 
     Act of 1974 is amended by adding at the end the following:


              ``enforcement balanced budget in the senate

       ``Sec. 315. (a) Point of Order.--It shall not be in order 
     in the Senate to consider any resolution or bill (or 
     amendment, motion, or conference report on such resolution or 
     bill) that provides or would cause a deficit (as determined 
     for purposes of the Bipartisan Budget Agreement of May 16, 
     1997) for fiscal year 2002 or any fiscal year thereafter.
       ``(b) Waiver and Suspension.--This section may be waived or 
     suspended in the Senate only by the affirmative vote of 
     three-fifths of the Members, duly chosen and sworn. This 
     section shall be subject to the provisions of section 258 of 
     the Balanced Budget and Emergency Deficit Control Act of 
     1985.
       ``(c) Appeals.--Appeals in the Senate from the decisions of 
     the Chair relating to any provision of this section shall be 
     limited to 1 hour, to be equally divided between, and 
     controlled by, the appellant and the manager of the bill or 
     joint resolution, as the case may be. An affirmative vote of 
     three-fifths of the Members of the Senate, duly chosen and 
     sworn, shall be required in the Senate to sustain an appeal 
     of the ruling of the Chair on a point of order raised under 
     this section.
       ``(d) Determination of Budget Levels.--For purposes of this 
     section, the levels of new budget authority, outlays, and 
     revenues for a fiscal year shall be determined on the basis 
     of estimates made by the Committee on the Budget of the 
     Senate.''.
       (b) President's Budget.--Section 1105(f) of title 31, 
     United States Code, is amended by adding at the end the 
     following: ``The budget shall also be prepared in a manner 
     that does not cause a deficit for fiscal year 2002 or any 
     fiscal year thereafter.''.
                                 ______
                                 

                         BYRD AMENDMENT NO. 572

  Mr. BYRD proposed an amendment to the bill, S. 949, supra; as 
follows:

       At the appropriate place, insert the following:

     SEC.   . DEBATE ON A RECONCILIATION BILL.

       Section 310(e)(2) of the Congressional Budget Act of 1974 
     is amended to read as follows:
       ``(2) For purposes of consideration of any reconciliation 
     bill reported under subsection (b)--
       ``(A) debate, and all amendments thereto and debatable 
     motions and appeals in connection therewith, shall be limited 
     to not more than 30 hours;
       ``(B) time on the bill may only be yielded back by consent 
     and a motion to further limit debate shall be debatable with 
     debate limited to \1/2\ hour equally divided;
       ``(C) time on amendments shall be limited to 30 minutes to 
     be equally divided in the usual form and on any second degree 
     amendment or motion to 20 minutes to be equally divided in 
     the usual form; except that after the 15th hour of 
     consideration of a bill, time on all amendments or motions 
     shall be limited to 30 minutes.
       ``(D) no first degree amendment may be proposed after the 
     15th hour of consideration of a bill unless it has been 
     submitted to the Journal Clerk prior to the expiration of the 
     15th hour;
       ``(E) no second degree amendment may be proposed after the 
     20th hour of consideration of a bill unless it has been 
     submitted to the Journal Clerk prior to the expiration of the 
     20th hour; and
       ``(F) After no more than thirty hours of consideration of 
     the measure, the Senate shall proceed, without any further 
     debate on any question, to vote on the final disposition 
     thereof to the exclusion of all amendments not then actually 
     pending before the Senate at that time and to the exclusion 
     of all motions, except a motion to table, or to reconsider 
     and one quorum call on demand to establish the presence of a 
     quorum (and motions required to establish a quorum) 
     immediately before the final vote begins.''
                                 ______
                                 

                KENNEDY (AND DASCHLE) AMENDMENT NO. 573

  Mr. KENNEDY (for himself and Mr. Daschle) proposed an amendment to 
the bill, S. 949, supra; as follows:

       On page 337, beginning with line 14, strike all through 
     page 339, line 15, and insert the following.
       (a) Cigarettes.-- Section 5701(b) of the Internal Revenue 
     Code of 1986 is amended--
       (1) in paragraph (1), by striking ``$12 per thousand ($10 
     per thousand on cigarettes removed during 1991 or 1992)'' and 
     inserting ``$33.50 per thousand'', and

[[Page S6766]]

       (2) in paragraph (2), by striking ``$25.20 per thousand 
     ($21 per thousand on cigarettes removed during 1991 or 
     1992)'' and inserting ``$70.35 per thousand''.
       (b) Cigars.--Section 5701(a) of the Internal Revenue Code 
     of 1986 is amended--
       (1) in paragraph (1), by striking ``$1.125 cents per 
     thousand (93.75 cents per thousand on cigars removed during 
     1991 or 1992)'' and inserting ``$3.141 cents per thousand'', 
     and
       (2) by striking ``equal to'' and all that follows in 
     paragraph (2) and inserting ``equal to 35.59 percent of the 
     price for which sold but not more than $83.75 per thousand.''
       (c) Cigarette Papers.--Section 5701(c) of the Internal 
     Revenue Code of 1986 is amended by striking ``0.75 cent 
     (0.625 cent on cigarette papers removed during 1991 or 
     1992)'' and inserting ``2.09 cents''.
       (d) Cigarette Tubes.--Section 5701(d) of the Internal 
     Revenue Code of 1986 is amended by striking ``1.5 cents (1.25 
     cents on cigarette tubes removed during 1991 or 1992)'' and 
     inserting ``4.18 cents''.
       (e) Smokeless Tobacco.--Section 5701(e) of the Internal 
     Revenue code of 1986 is amended--
       (1) in paragraph (1), by striking ``36 cents (30 cents on 
     snuff removed during 1991 or 1992)'' and inserting ``$1.00'', 
     and
       (2) by striking ``12 cents (10 cents on chewing tobacco 
     removed during 1991 or 1992)'' in paragraph (2) and inserting 
     ``33.5 cents''.
       (f) Pipe Tobacco.--Section 5701(f) of the Internal Revenue 
     Code of 1986 is amended by striking ``67.5 cents (56.25 cents 
     on pipe tobacco removed during 1991 or 1992)'' and inserting 
     ``$1.88''.
       (g) Imposition of Excise Tax on Manufacture or Importation 
     of Roll-Your-Own Tobacco.--
       (1) In general.--Section 5701 (relating to rate of tax) is 
     amended by redesignating subsection (g) as subsection (h) and 
     by inserting after subsection (f) the following new 
     subsection.
       ``(g) Roll-Your-Own Tobacco.--On roll-your-own tobacco, 
     manufactured in or imported into the United States, there 
     shall be imposed a tax of $1.74 cents per pound (and a 
     proportionate tax at the like rate on all fractional parts of 
     a pound).''
       On page 349, between lines 2 and 3, insert the following:
       ``(k) Appropriation of Portion of Resulting Revenues From 
     Increase in Taxes on Tobacco Products to Children's Health 
     Insurance Initiatives.--In addition to any amounts otherwise 
     appropriated for the purpose of carrying out title XXI of the 
     Social Security Act (relating to children's health insurance 
     initiatives), there is appropriated from the increase in 
     revenues resulting from the amendments made by this section 
     $2,400,000,000 for each of the fiscal years 1998 through 
     2002.''.
                                 ______
                                 

                COVERDELL (AND OTHERS) AMENDMENT NO. 574

  Mr. COVERDELL (for himself, Mr. Abraham, Mr. Coats, Mr. Craig, Mr. 
Santorum, and Mr. Ashcroft) proposed an amendment to the bill, S. 949, 
supra, as follows:

       On page 19, between lines 14 and 15, insert:
       ``(D) Adjustment.--The Secretary shall reduce the dollar 
     amounts otherwise in effect under this paragraph for any 
     calendar year to the extent necessary to increase Federal 
     revenues by the amount the Secretary estimates Federal 
     revenues will be reduced by reason of allowing distributions 
     from education individual retirement accounts under section 
     530 to be used for qualified elementary and secondary 
     education expenses described in section 530(b)(2)(A)(ii).''
       On line 64, beginning with line 8, strike all through page 
     67, line 15, and insert:
       ``(1) Education individual retirement account.--The term 
     `education individual retirement account' means a trust 
     created or organized in the United States exclusively for the 
     purpose of paying the qualified education expenses of the 
     account holder, but only if the written governing instrument 
     creating the trust meets the following requirements:
       ``(A) No contribution will be accepted--
       ``(i) unless it is in cash,
       ``(ii) after the date on which the account holder attains 
     age 18, or
       ``(iii) except in the case of rollover contributions, if 
     such contribution would result in aggregate contributions for 
     the taxable year exceeding the sum of--
       ``(I) $2,000, plus
       ``(II) the amount of the credit allowable under section 25A 
     for the taxable year for 1 qualifying child.
       ``(B) The trustee is a bank (as defined in section 408(n)) 
     or another person who demonstrates to the satisfaction of the 
     Secretary that the manner in which that person will 
     administer the trust will be consistent with the requirements 
     of this section.
       ``(C) No part of the trust assets will be invested in life 
     insurance contracts.
       ``(D) The assets of the trust shall not be commingled with 
     other property except in a common trust fund or common 
     investment fund.
       ``(E) Upon the death of the account holder, any balance in 
     the account will be distributed as required under section 
     529(b)(8) (as if such account were a qualified tuition 
     program).
       ``(F) The account becomes an IRA Plus as of the date the 
     account holder attains age 30 (and meets all requirements for 
     an IRA Plus on and after such date), unless the account 
     holder elects to have sections 529(b)(8) apply as of such 
     date (as if such account were a qualified tuition program).
       ``(2) Qualified education expenses.--
       ``(A) In general.--The term `qualified education expenses' 
     means--
       ``(i) qualified higher education expenses (as defined in 
     section 529(e)(3), and
       ``(ii) in the case of taxable years beginning after 
     December 31, 2000, qualified elementary and secondary 
     education expenses (as defined in paragraph (5)).
       ``(B) Qualified tuition programs.--Such term shall include 
     amounts paid or incurred to purchase tuition credits or 
     certificates, or to make contributions to an account, under a 
     qualified tuition program (as defined in section 529(b)) for 
     the benefit of the account holder.
       ``(3) Eligible educational institution.--The term `eligible 
     educational institution' has the meaning given such term by 
     section 529(e)(5).
       ``(4) Account holder.--The term `account holder' means the 
     individual for whose benefit the education individual 
     retirement account is established.
       ``(5) Qualified elementary and secondary education 
     expenses.--
       ``(A) In general.--The term `qualified elementary and 
     secondary education expenses' means tuition, fees, tutoring, 
     special needs services, books, supplies, equipment, 
     transportation, and supplementary expenses required for the 
     enrollment or attendance at a public, private, or sectarian 
     school of any dependent of the taxpayer with respect to whom 
     the taxpayer is allowed a deduction under section 151.
       ``(B) Special rule for homeschooling.--Scuh term shall 
     include expenses described in subparagraph (A) required for 
     education provided for homeschooling if the requirements of 
     any applicable State or local law are met with respect to 
     such education.
       ``(C) School.--The term `school' means any school which 
     provides elementary education or secondary education (through 
     grade 12), as determined under State law.
       ``(c) Tax Treatment of Distributions.--
       ``(1) In general.--Any amount paid or distributed shall be 
     includible in gross income to the extent required by section 
     529(c)(3) (determined as if such account were a qualified 
     tuition program and as if qualified higher education expenses 
     include qualified education expenses).
       ``(2) Special rules for applying estate and gift taxes with 
     respect to account.--Rules similar to the rules of paragraphs 
     (2), (4), and (5) of section 529(c) shall apply for purposes 
     of this section.
       ``(3) Additional tax for distributions not used for 
     educational expenses.--
       ``(A) In general.--The tax imposed by section 529(f) shall 
     apply to payments and distributions from an education 
     individual retirement account in the same manner as such tax 
     applies to qualified tuition programs (as defined in section 
     529), except that section 529(f) shall be applied by 
     reference by qualified education expenses.
                                 ______
                                 

                  KOHL (AND OTHERS) AMENDMENT NO. 575

  Mr. KOHL (for himself, Mr. Hatch, Mr. Daschle, Mr. D'Amato, Ms. 
Moseley-Braun, Mr. Abraham, Mr. Specter, Ms. Snowe, Mrs. Boxer, Mr. 
DeWine, Mrs. Murray, and Mr. Johnson) proposed an amendment to the 
bill, S. 949, supra; as follows:

       On page 20, between lines 5 and 6, insert:

     SEC. 103. ALLOWANCE OF CREDIT FOR EMPLOYER EXPENSES FOR CHILD 
                   CARE ASSISTANCE.

       (a) In General.--Subpart D of part IV of subchapter A of 
     chapter 1 (relating to business related credits) is amended 
     by adding at the end the following new section:

     ``SEC. 45D. EMPLOYER-PROVIDED CHILD CARE CREDIT.

       ``(a) In General.--For purposes of section 38, the 
     employer-provided child care credit determined under this 
     section for the taxable year is an amount equal to 50 percent 
     of the qualified child care expenditures of the taxpayer for 
     such taxable year.
       ``(b) Dollar Limitation.--The credit allowable under 
     subsection (a) for any taxable year shall not exceed 
     $150,000.
       ``(c) Definitions.--For purposes of this section--
       ``(1) Qualified child care expenditure.--The term 
     `qualified child care expenditure' means any amount paid or 
     incurred--
       ``(A) to acquire, construct, rehabilitate, or expand 
     property--
       ``(i) which is to be used as part of a qualified child care 
     facility of the taxpayer,
       ``(ii) with respect to which a deduction for depreciation 
     (or amortization in lieu of depreciation) is allowable, and
       ``(iii) which does not constitute part of the principal 
     residence (within the meaning of section 1034) of the 
     taxpayer or any employee of the taxpayer,
       ``(B) for the operating costs of a qualified child care 
     facility of the taxpayer, including costs related to the 
     training of employees, to scholarship programs, and to the 
     providing of increased compensation to employees with higher 
     levels of child care training,
       ``(C) under a contract with a qualified child care facility 
     to provide child care services to employees of the taxpayer, 
     or
       ``(D) under a contract to provide child care resource and 
     referral services to employees of the taxpayer, or
       ``(E) for the costs of seeking accreditation from a child 
     care credentialing or accreditation entity.

[[Page S6767]]

       ``(2) Qualified child care facility.--
       ``(A) In general.--The term `qualified child care facility' 
     means a facility--
       ``(i) the principal use of which is to provide child care 
     assistance, and
       ``(ii) which meets the requirements of all applicable laws 
     and regulations of the State or local government in which it 
     is located, including, but not limited to, the licensing of 
     the facility as a child care facility.

     Clause (i) shall not apply to a facility which is the 
     principal residence (within the meaning of section 1034) of 
     the operator of the facility.
       ``(B) Special rules with respect to a taxpayer.--A facility 
     shall not be treated as a qualified child care facility with 
     respect to a taxpayer unless--
       ``(i) enrollment in the facility is open to employees of 
     the taxpayer during the taxable year,
       ``(ii) the facility is not the principal trade or business 
     of the taxpayer unless at least 30 percent of the enrollees 
     of such facility are dependents of employees of the taxpayer, 
     and
       ``(iii) the use of such facility (or the eligibility to use 
     such facility) does not discriminate in favor of employees of 
     the taxpayer who are highly compensated employees (within the 
     meaning of section 414(q)).
       ``(d) Recapture of Acquisition and Construction Credit.--
       ``(1) In general.--If, as of the close of any taxable year, 
     there is a recapture event with respect to any qualified 
     child care facility of the taxpayer, then the tax of the 
     taxpayer under this chapter for such taxable year shall be 
     increased by an amount equal to the product of--
       ``(A) the applicable recapture percentage, and
       ``(B) the aggregate decrease in the credits allowed under 
     section 38 for all prior taxable years which would have 
     resulted if the qualified child care expenditures of the 
     taxpayer described in subsection (c)(1)(A) with respect to 
     such facility had been zero.
       ``(2) Applicable recapture percentage.--
       ``(A) In general.--For purposes of this subsection, the 
     applicable recapture percentage shall be determined from the 
     following table:

                                                         The applicable
                                                              recapture
                                    ``If the recapture evpercentage is:
    Years 1-3....................................................100   
    Year 4........................................................85   
    Year 5........................................................70   
    Year 6........................................................55   
    Year 7........................................................40   
    Year 8........................................................25   
    Years 9 and 10................................................10   
    Years 11 and thereafter........................................0.  

       ``(B) Years.--For purposes of subparagraph (A), year 1 
     shall begin on the first day of the taxable year in which the 
     qualified child care facility is placed in service by the 
     taxpayer.
       ``(3) Recapture event defined.--For purposes of this 
     subsection, the term `recapture event' means--
       ``(A) Cessation of operation.--The cessation of the 
     operation of the facility as a qualified child care facility.
       ``(B) Change in ownership.--
       ``(i) In general.--Except as provided in clause (ii), the 
     disposition of a taxpayer's interest in a qualified child 
     care facility with respect to which the credit described in 
     subsection (a) was allowable.
       ``(ii) Agreement to assume recapture liability.--Clause (i) 
     shall not apply if the person acquiring such interest in the 
     facility agrees in writing to assume the recapture liability 
     of the person disposing of such interest in effect 
     immediately before such disposition. In the event of such an 
     assumption, the person acquiring the interest in the facility 
     shall be treated as the taxpayer for purposes of assessing 
     any recapture liability (computed as if there had been no 
     change in ownership).
       ``(4) Special rules.--
       ``(A) Tax benefit rule.--The tax for the taxable year shall 
     be increased under paragraph (1) only with respect to credits 
     allowed by reason of this section which were used to reduce 
     tax liability. In the case of credits not so used to reduce 
     tax liability, the carryforwards and carrybacks under section 
     39 shall be appropriately adjusted.
       ``(B) No credits against tax.--Any increase in tax under 
     this subsection shall not be treated as a tax imposed by this 
     chapter for purposes of determining the amount of any credit 
     under subpart A, B, or D of this part.
       ``(C) No recapture by reason of casualty loss.--The 
     increase in tax under this subsection shall not apply to a 
     cessation of operation of the facility as a qualified child 
     care facility by reason of a casualty loss to the extent such 
     loss is restored by reconstruction or replacement within a 
     reasonable period established by the Secretary.
       ``(e) Special Rules.--For purposes of this section--
       ``(1) Aggregation rules.--All persons which are treated as 
     a single employer under subsections (a) and (b) of section 52 
     shall be treated as a single taxpayer.
       ``(2) Pass-thru in the case of estates and trusts.--Under 
     regulations prescribed by the Secretary, rules similar to the 
     rules of subsection (d) of section 52 shall apply.
       ``(3) Allocation in the case of partnerships.--In the case 
     of partnerships, the credit shall be allocated among partners 
     under regulations prescribed by the Secretary.
       ``(f) No Double Benefit.--
       ``(1) Reduction in basis.--For purposes of this subtitle--
       ``(A) In general.--If a credit is determined under this 
     section with respect to any property by reason of 
     expenditures described in subsection (c)(1)(A), the basis of 
     such property shall be reduced by the amount of the credit so 
     determined.
       ``(B) Certain dispositions.--If during any taxable year 
     there is a recapture amount determined with respect to any 
     property the basis of which was reduced under subparagraph 
     (A), the basis of such property (immediately before the event 
     resulting in such recapture) shall be increased by an amount 
     equal to such recapture amount. For purposes of the preceding 
     sentence, the term `recapture amount' means any increase in 
     tax (or adjustment in carrybacks or carryovers) determined 
     under subsection (d).
       ``(2) Other deductions and credits.--No deduction or credit 
     shall be allowed under any other provision of this chapter 
     with respect to the amount of the credit determined under 
     this section.
       ``(g) Termination.--This section shall not apply to taxable 
     years beginning after December 31, 1999.''
       (b) Conforming Amendments.--
       (1) Section 38(b) is amended--
       (A) by striking out ``plus'' at the end of paragraph (11),
       (B) by striking out the period at the end of paragraph 
     (12), and inserting a comma and ``plus'', and
       (C) by adding at the end the following new paragraph:
       ``(13) the employer-provided child care credit determined 
     under section 45D.''
       (2) The table of sections for subpart D of part IV of 
     subchapter A of chapter 1 is amended by adding at the end the 
     following new item:

``Sec. 45D. Employer-provided child care credit.''

       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     1997.

     SEC. 104. EXPANSION OF COORDINATED ENFORCEMENT EFFORTS OF 
                   INTERNAL REVENUE SERVICE AND HHS OFFICE OF 
                   CHILD SUPPORT ENFORCEMENT.

       (a) State Reporting of Custodial Data.--Section 
     454A(e)(4)(D) of the Social Security Act (42 U.S.C. 
     654(e)(4)(D)) is amended by striking ``the birth date of any 
     child'' and inserting ``the birth date and custodial status 
     of any child''.
       (b) Matching Program by IRS of Custodial Data and Tax 
     Status Information.--
       (1) National directory of new hires.--Section 453(i)(3) of 
     the Social Security Act (42 U.S.C. 653(i)(3)) is amended by 
     striking ``a claim with respect to employment in a tax 
     return'' and inserting ``information which is required on a 
     tax return''.
       (2) Federal case registry of child support orders.--Section 
     453(h) of the such Act (42 U.S.C. 653(h)) is amended by 
     adding at the end the following:
       ``(3) Administration of federal tax laws.--The Secretary of 
     the Treasury shall have access to the information described 
     in paragraph (2), consisting of the names and social security 
     numbers of the custodial parents linked with the children in 
     the custody of such parents, for the purpose of administering 
     those sections of the Internal Revenue Code of 1986 which 
     grant tax benefits based on support and residence provided 
     dependent children.''
       (c) Effective Date.--The amendments made by this section 
     shall take effect on October 1, 1997.
                                 ______
                                 

                        GRAHAM AMENDMENT NO. 576

  (Ordered to lie on the table.)
  Mr. GRAHAM submitted an amendment intended to be proposed by him to 
the bill, S. 949, supra; as follows:

       On page 93, strike lines 13 through 25, and insert:
       ``(ii) a silver coin described in section 5112(e) of title 
     31, United States Code,
       ``(iii) a platinum coin described in section 5112(k) of 
     title 31, United States Code, or
       ``(iv) a coin issued under the laws of any State, or
       ``(B) any gold, silver, platinum, or palladium bullion of a 
     fineness equal to or exceeding the minimum fineness required 
     for metals which may be delivered in satisfaction of a 
     regulated futures contract subject to regulation by the 
     Commodity Futures Trading Commission under the Commodity 
     Exchange Act,''.
       On page 205, before line 12, insert the following:
       (c) Special Amortization Rule.--
       (1) Code amendment.--Section 412(b)(2) is amended by 
     striking ``and'' at the end of subparagraph (C), by striking 
     the period at the end of subparagraph (D) and inserting ``, 
     and'', and by inserting after subparagraph (D) the following:
       ``(E) the amount necessary to amortize in equal annual 
     installments (until fully amortized) over a period of 20 
     years the contributions which would be required to be made 
     under the plan but for the provisions of subsection 
     (c)(7)(A)(i)(I).''.
       (2) ERISA amendment.--Section 302(b)(2) of the Employee 
     Retirement Income Security Act of 1974 (29 U.S.C. 1082(b)(2)) 
     is amended by striking ``and'' at the end of subparagraph 
     (C), by striking the period at the end of subparagraph (D) 
     and inserting ``, and'', and by inserting after subparagraph 
     (D) the following:
       ``(E) the amount necessary to amortize in equal annual 
     installments (until fully amortized) over a period of 20 
     years the contributions which would be required to be made

[[Page S6768]]

     under the plan but for the provisions of subsection 
     (c)(7)(A)(i)(I).''.
       (3) Conforming amendments.--
       (A) Section 412(c)(7)(D) is amended by adding ``and'' at 
     the end of clause (i), by striking ``, and'' at the end of 
     clause (ii) and inserting a period, and by striking clause 
     (iii).
       (B) Section 302(c)(7)(D) of the Employee Retirement Income 
     Security Act of 1974 (29 U.S.C. 1082(c)(7)(D)) is amended by 
     adding ``and'' at the end of clause (i), by striking ``, 
     and'' at the end of clause (ii) and inserting a period, and 
     by striking clause (iii).
       (4) Effective dates.--
       (A) In general.--The amendments made by this subsection 
     shall apply to plan years beginning after December 31, 1998.
       (B) Special rule for 1999.--In the case of a plan's first 
     year beginning in 1999, there shall be added to the amount 
     required to be amortized under section 412(b)(2)(E) of the 
     Internal Revenue Code of 1986 and section 302(b)(2)(E) of the 
     Employee Retirement Income Security Act of 1974 (as added by 
     paragraphs (1) and (2)) over the 20-year period beginning 
     with such year, the unamortized balance (as of the close of 
     the preceding plan year) of any amount required to be 
     amortized under section 412(c)(7)(D)(iii) of such Code and 
     section 302(c)(7)(D)(iii) of such Act (as repealed by 
     paragraph (3)) for plan years beginning before 1999.
       On page 639, between lines 11 and 12, insert:
       (4) Amendments related to section 1461.--
       (A) Section 415(e)(5)(A) is amended to read as follows:
       ``(A) Certain ministers may participate.--For purposes of 
     this part--
       ``(i) In general.--A duly ordained, commissioned, or 
     licensed minister of a church is described in paragraph 
     (3)(B) if, in connection with the exercise of their ministry, 
     the minister--
       ``(I) is a self-employed individual (within the meaning of 
     section 401(c)(1)(B), or
       ``(II) is employed by an organization other than an 
     organization which is described in section 501(c)(3) and with 
     respect to which the minister shares common religious bonds.
       ``(ii) Treatment as employer and employee.--For purposes of 
     sections 403(b)(1)(A) and 404(a)(10), a minister described in 
     clause (i)(I) shall be treated as employed by the minister's 
     own employer which is an organization described in section 
     501(c)(3) and exempt from tax under section 501(a).''
       (B) Section 403(b)(1)(A) is amended by striking ``or'' at 
     the end of clause (i), by inserting ``or'' at the end of 
     clause (ii), and by adding at the end the following new 
     clause:
       ``(iii) for the minister described in section 415(e)(5)(A) 
     by the minister or by an employer,''.
                                 ______
                                 

                        ALLARD AMENDMENT NO. 577

  Mr. ALLARD proposed an amendment to the bill, S. 949, supra; as 
follows:

       Beginning on page 94, line 8, strike all through page 101, 
     line 16, and insert the following:

     SEC. 311. 20-PERCENT MAXIMUM CAPITAL GAINS RATE FOR 
                   INDIVIDUALS AND INDEXING OF CERTAIN ASSETS 
                   ACQUIRED AFTER DECEMBER 31, 2000, FOR PURPOSES 
                   OF DETERMINING GAIN.

       (a) In General.--Subsection (h) of section 1 (relating to 
     maximum capital gains rate) is amended to read as follows:
       ``(h) Maximum Capital Gains Rate.--
       ``(1) In general.--If a taxpayer has a net capital gain for 
     any taxable year, the tax imposed by this section for such 
     taxable year shall not exceed the sum of--
       ``(A) a tax computed at the rates and in the same manner as 
     if this subsection had not been enacted on the greater of--
       ``(i) taxable income reduced by the net capital gain, or
       ``(ii) the amount of taxable income taxed at a rate below 
     28 percent, plus
       ``(B) 24 percent of the lesser of--
       ``(i) the unrecaptured section 1250 gain, or
       ``(ii) the amount of taxable income in excess of the sum of 
     the amount on which tax is determined under subparagraph (A) 
     plus the net capital gain determined without regard to 
     unrecaptured section 1250 gain, plus
       ``(C) 28 percent of the amount of taxable income in excess 
     of the sum of--
       ``(i) the adjusted net capital gain, plus
       ``(ii) the sum of the amounts on which tax is determined 
     under subparagraphs (A) and (B), plus
       ``(D) 10 percent of so much of the taxpayer's adjusted net 
     capital gain (or, if less, taxable income) as does not exceed 
     the excess (if any) of--
       ``(i) the amount of taxable income which would (without 
     regard to this paragraph) be taxed at a rate of 15 percent or 
     less, over
       ``(ii) the taxable income reduced by the adjusted net 
     capital gain, plus
       ``(E) 20 percent of the taxpayer's adjusted net capital 
     gain (or, if less, taxable income) in excess of the amount on 
     which a tax is determined under subparagraph (D).
       ``(2) Net capital gain taken into account as investment 
     income.--For purposes of this subsection, the net capital 
     gain for any taxable year shall be reduced (but not below 
     zero) by the amount which the taxpayer takes into account as 
     investment income under section 163(d)(4)(B)(iii).
       ``(3) Adjusted net capital gain.--For purposes of this 
     subsection, the term `adjusted net capital gain' means net 
     capital gain determined without regard to--
       ``(A) collectibles gain, and
       ``(B) unrecaptured section 1250 gain.
       ``(4) Collectibles gain.--For purposes of paragraph (3)--
       ``(A) In general.--The term `collectibles gain' means gain 
     from the sale or exchange of a collectible (as defined in 
     section 408(m) without regard to paragraph (3) thereof) which 
     is a capital asset held for more than 1 year but only to the 
     extent such gain is taken into account in computing gross 
     income.
       ``(B) Partnerships, etc.--For purposes of subparagraph (A), 
     any gain from the sale of an interest in a partnership, S 
     corporation, or trust which is attributable to unrealized 
     appreciation in the value of collectibles shall be treated as 
     gain from the sale or exchange of a collectible. Rules 
     similar to the rules of section 751 shall apply for purposes 
     of the preceding sentence.
       ``(C) Coordination with section 1022.--Gain from the 
     disposition of a collectible which is an indexed asset to 
     which section 1022(a) applies shall be disregarded for 
     purposes of this subsection. A taxpayer may elect to treat 
     any collectible specified in such election as not being an 
     indexed asset for purposes of section 1022. Any such 
     election, and any specification therein, once made, shall be 
     irrevocable.
       ``(5) Unrecaptured section 1250 gain.--For purposes of this 
     subsection, the term `unrecaptured section 1250 gain' means 
     the excess (if any) of--
       ``(A) the amount which would be treated as ordinary income 
     under section 1245 if all section 1250 property disposed of 
     by the taxpayer were section 1245 property, over
       ``(B) the amount treated as ordinary income under section 
     1250.

     In the case of a taxable year which includes May 7, 1997, 
     unrecaptured section 1250 gain shall be determined by taking 
     into account only the gain properly taken into account for 
     the portion of the taxable year after May 6, 1997.
       ``(6) Pre-effective date gain.--
       ``(A) In general.--In the case of a taxable year which 
     includes May 7, 1997, adjusted net capital gain shall be 
     determined without regard to pre-May 7, 1997, gain.
       ``(B) Pre-may 7, 1997, gain.--The term `pre-May 7, 1997, 
     gain' means the amount which would be adjusted net capital 
     gain for the taxable year if adjusted net capital gain were 
     determined by taking into account only the gain or loss 
     properly taken into account for the portion of the taxable 
     year before May 7, 1997.
       ``(C) Special rules for pass-thru entities.--In applying 
     subparagraph (A) with respect to any pass-thru entity, the 
     determination of when gains and loss are properly taken into 
     account shall be made at the entity level.
       ``(D) Pass-thru entity defined.--For purposes of 
     subparagraph (C), the term `pass-thru entity' means--
       ``(i) a regulated investment company,
       ``(ii) a real estate investment trust,
       ``(iii) an S corporation,
       ``(iv) a partnership,
       ``(v) an estate or trust, and
       ``(vi) a common trust fund.''
       (b) Minimum tax.--
       (1) In general.--Subsection (b) of section 55 is amended by 
     adding at the end the following new paragraph:
       ``(3) Maximum rate of tax on net capital gain of 
     noncorporate taxpayers.--The amount determined under the 
     first sentence of paragraph (1)(A)(i) shall not exceed the 
     sum of--
       ``(A) the amount determined under such first sentence 
     computed at the rates and in the same manner as if this 
     paragraph had not been enacted on the taxable excess reduced 
     by the excess of the net capital gain over the sum of the 
     collectibles gain (as defined in section 1(h)(4)) and the 
     pre-effective date gain (as defined in section 1(h)(6)), plus
       ``(B) 24 percent of the lesser of--
       ``(i) the unrecaptured section 1250 gain (as defined in 
     section 1(h)(5)), or
       ``(ii) the amount of taxable excess in excess of the sum 
     of--

       ``(I) the adjusted net capital gain, plus
       ``(II) the amount on which a tax is determined under 
     subparagraph (A), plus

       ``(C) 10 percent of so much of the taxpayer's adjusted net 
     capital gain (or, if less, taxable excess) as does not exceed 
     the amount on which a tax is determined under section 
     1(h)(1)(B), plus
       ``(D) 20 percent of the taxpayer's adjusted net capital 
     gain (or, if less, taxable excess) in excess of the amount on 
     which tax is determined under subparagraph (C).''
       (2) Conforming amendment.--Clause (ii) of section 
     55(b)(1)(A) is amended by striking ``clause (i)'' and 
     inserting ``this subsection''.
       (c) Other Conforming Amendments.--
       (1) Subsection (d) of section 291 is amended by inserting 
     at the end the following new sentence: ``Any capital gain 
     dividend treated as having been paid out of such difference 
     to a shareholder which is not a corporation retains its 
     characters as unrecaptured section 1250 gain for purposes of 
     applying section 1(h) to such shareholder.''
       (2) Paragraph (1) of section 1445(e) is amended by striking 
     ``28 percent'' and inserting ``20 percent''.
       (3) The second sentence of section 7518(g)(6)(A), and the 
     second sentence of section 607(h)(6)(A) of the Merchant 
     Marine Act, 1936, are each amended by striking ``28 percent'' 
     and inserting ``20 percent''.
       (d) Indexing.--Part II of subchapter O of chapter 1 
     (relating to basis rules of general application) is amended 
     by inserting after section 1021 the following new section:

[[Page S6769]]

     ``SEC. 1022. INDEXING OF CERTAIN ASSETS ACQUIRED ON OR AFTER 
                   APRIL 1, 2002, FOR PURPOSES OF DETERMINING 
                   GAIN.

       ``(a) General Rule.--
       ``(1) Indexed basis substituted for adjusted basis.--Solely 
     for purposes of determining gain on the sale or other 
     disposition by a taxpayer (other than a corporation) of an 
     indexed asset which has been held for more than 5 years, the 
     indexed basis of the asset shall be substituted for its 
     adjusted basis.
       ``(2) Exception for depreciation, etc.--The deductions for 
     depreciation, depletion, and amortization shall be determined 
     without regard to the application of paragraph (1) to the 
     taxpayer or any other person.
       ``(3) Exception for principal residences.--Paragraph (1) 
     shall not apply to any disposition of the principal residence 
     (within the meaning of section 121) of the taxpayer .
       ``(b) Indexed Asset.--
       ``(1) In general.--For purposes of this section, the term 
     `indexed asset' means--
       ``(A) common stock in a C corporation (other than a foreign 
     corporation), and
       ``(B) tangible property,

     which is a capital asset or property used in the trade or 
     business (as defined in section 1231(b)).
       ``(2) Stock in certain foreign corporations included.--For 
     purposes of this section--
       ``(A) In general.--The term `indexed asset' includes common 
     stock in a foreign corporation which is regularly traded on 
     an established securities market.
       ``(B) Exception.--Subparagraph (A) shall not apply to--
       ``(i) stock of a foreign investment company (within the 
     meaning of section 1246(b)),
       ``(ii) stock in a passive foreign investment company (as 
     defined in section 1296),
       ``(iii) stock in a foreign corporation held by a United 
     States person who meets the requirements of section 
     1248(a)(2), and
       ``(iv) stock in a foreign personal holding company (as 
     defined in section 552).
       ``(C) Treatment of american depository receipts.--An 
     American depository receipt for common stock in a foreign 
     corporation shall be treated as common stock in such 
     corporation.
       ``(c) Indexed Basis.--For purposes of this section--
       ``(1) General rule.--The indexed basis for any asset is--
       ``(A) the adjusted basis of the asset, increased by
       ``(B) the applicable inflation adjustment.
       ``(2) Applicable inflation adjustment.--The applicable 
     inflation adjustment for any asset is an amount equal to--
       ``(A) the adjusted basis of the asset, multiplied by
       ``(B) the percentage (if any) by which--
       ``(i) the chain-type price index for GDP for the last 
     calendar quarter ending before the asset is disposed of, 
     exceeds
       ``(ii) the chain-type price index for GDP for the last 
     calendar quarter ending before the asset was acquired by the 
     taxpayer.

     The percentage under subparagraph (B) shall be rounded to the 
     nearest \1/10\ of 1 percentage point.
       ``(3) Chain-type price index for GDP.--The chain-type price 
     index for GDP for any calendar quarter is such index for such 
     quarter (as shown in the last revision thereof released by 
     the Secretary of Commerce before the close of the following 
     calendar quarter).
       ``(d) Suspension of Holding Period Where Diminished Risk of 
     Loss; Treatment of Short Sales.--
       ``(1) In general.--If the taxpayer (or a related person) 
     enters into any transaction which substantially reduces the 
     risk of loss from holding any asset, such asset shall not be 
     treated as an indexed asset for the period of such reduced 
     risk.
       ``(2) Short sales.--
       ``(A) In general.--In the case of a short sale of an 
     indexed asset with a short sale period in excess of 5 years, 
     for purposes of this title, the amount realized shall be an 
     amount equal to the amount realized (determined without 
     regard to this paragraph) increased by the applicable 
     inflation adjustment. In applying subsection (c)(2) for 
     purposes of the preceding sentence, the date on which the 
     property is sold short shall be treated as the date of 
     acquisition and the closing date for the sale shall be 
     treated as the date of disposition.
       ``(B) Short sale period.--For purposes of subparagraph (A), 
     the short sale period begins on the day that the property is 
     sold and ends on the closing date for the sale.
       ``(e) Treatment of Regulated Investment Companies and Real 
     Estate Investment Trusts.--
       ``(1) Adjustments at entity level.--
       ``(A) In general.--Except as otherwise provided in this 
     paragraph, the adjustment under subsection (a) shall be 
     allowed to any qualified investment entity (including for 
     purposes of determining the earnings and profits of such 
     entity).
       ``(B) Exception for corporate shareholders.--Under 
     regulations--
       ``(i) in the case of a distribution by a qualified 
     investment entity (directly or indirectly) to a corporation--

       ``(I) the determination of whether such distribution is a 
     dividend shall be made without regard to this section, and
       ``(II) the amount treated as gain by reason of the receipt 
     of any capital gain dividend shall be increased by the 
     percentage by which the entity's net capital gain for the 
     taxable year (determined without regard to this section) 
     exceeds the entity's net capital gain for such year 
     determined with regard to this section, and

       ``(ii) there shall be other appropriate adjustments 
     (including deemed distributions) so as to ensure that the 
     benefits of this section are not allowed (directly or 
     indirectly) to corporate shareholders of qualified investment 
     entities.

     For purposes of the preceding sentence, any amount includible 
     in gross income under section 852(b)(3)(D) shall be treated 
     as a capital gain dividend and an S corporation shall not be 
     treated as a corporation.
       ``(C) Exception for qualification purposes.--This section 
     shall not apply for purposes of sections 851(b) and 856(c).
       ``(D) Exception for certain taxes imposed at entity 
     level.--
       ``(i) Tax on failure to distribute entire gain.--If any 
     amount is subject to tax under section 852(b)(3)(A) for any 
     taxable year, the amount on which tax is imposed under such 
     section shall be increased by the percentage determined under 
     subparagraph (B)(i)(II). A similar rule shall apply in the 
     case of any amount subject to tax under paragraph (2) or (3) 
     of section 857(b) to the extent attributable to the excess of 
     the net capital gain over the deduction for dividends paid 
     determined with reference to capital gain dividends only. The 
     first sentence of this clause shall not apply to so much of 
     the amount subject to tax under section 852(b)(3)(A) as is 
     designated by the company under section 852(b)(3)(D).
       ``(ii) Other taxes.--This section shall not apply for 
     purposes of determining the amount of any tax imposed by 
     paragraph (4), (5), or (6) of section 857(b).
       ``(2) Adjustments to interests held in entity.--
       ``(A) Regulated investment companies.--Stock in a regulated 
     investment company (within the meaning of section 851) shall 
     be an indexed asset for any calendar quarter in the same 
     ratio as--
       ``(i) the average of the fair market values of the indexed 
     assets held by such company at the close of each month during 
     such quarter, bears to
       ``(ii) the average of the fair market values of all assets 
     held by such company at the close of each such month.
       ``(B) Real estate investment trusts.--Stock in a real 
     estate investment trust (within the meaning of section 856) 
     shall be an indexed asset for any calendar quarter in the 
     same ratio as--
       ``(i) the fair market value of the indexed assets held by 
     such trust at the close of such quarter, bears to
       ``(ii) the fair market value of all assets held by such 
     trust at the close of such quarter.
       ``(C) Ratio of 80 percent or more.--If the ratio for any 
     calendar quarter determined under subparagraph (A) or (B) 
     would (but for this subparagraph) be 80 percent or more, such 
     ratio for such quarter shall be 100 percent.
       ``(D) Ratio of 20 percent or less.--If the ratio for any 
     calendar quarter determined under subparagraph (A) or (B) 
     would (but for this subparagraph) be 20 percent or less, such 
     ratio for such quarter shall be zero.
       ``(E) Look-thru of partnerships.--For purposes of this 
     paragraph, a qualified investment entity which holds a 
     partnership interest shall be treated (in lieu of holding a 
     partnership interest) as holding its proportionate share of 
     the assets held by the partnership.
       ``(3) Treatment of return of capital distributions.--Except 
     as otherwise provided by the Secretary, a distribution with 
     respect to stock in a qualified investment entity which is 
     not a dividend and which results in a reduction in the 
     adjusted basis of such stock shall be treated as allocable to 
     stock acquired by the taxpayer in the order in which such 
     stock was acquired.
       ``(4) Qualified investment entity.--For purposes of this 
     subsection, the term `qualified investment entity' means--
       ``(A) a regulated investment company (within the meaning of 
     section 851), and
       ``(B) a real estate investment trust (within the meaning of 
     section 856).
       ``(f) Other Pass-Thru Entities.--
       ``(1) Partnerships.--
       ``(A) In general.--In the case of a partnership, the 
     adjustment made under subsection (a) at the partnership level 
     shall be passed through to the partners.
       ``(B) Special rule in the case of section 754 elections.--
     In the case of a transfer of an interest in a partnership 
     with respect to which the election provided in section 754 is 
     in effect--
       ``(i) the adjustment under section 743(b)(1) shall, with 
     respect to the transferor partner, be treated as a sale of 
     the partnership assets for purposes of applying this section, 
     and
       ``(ii) with respect to the transferee partner, the 
     partnership's holding period for purposes of this section in 
     such assets shall be treated as beginning on the date of such 
     adjustment.
       ``(2) S corporations.--In the case of an S corporation, the 
     adjustment made under subsection (a) at the corporate level 
     shall be passed through to the shareholders. This section 
     shall not apply for purposes of determining the amount of any 
     tax imposed by section 1374 or 1375.
       ``(3) Common trust funds.--In the case of a common trust 
     fund, the adjustment made under subsection (a) at the trust 
     level shall be passed through to the participants.

[[Page S6770]]

       ``(4) Indexing adjustment disregarded in determining loss 
     on sale of interest in entity.--Notwithstanding the preceding 
     provisions of this subsection, for purposes of determining 
     the amount of any loss on a sale or exchange of an interest 
     in a partnership, S corporation, or common trust fund, the 
     adjustment made under subsection (a) shall not be taken into 
     account in determining the adjusted basis of such interest.
       ``(g) Dispositions Between Related Persons.--
       ``(1) In general.--This section shall not apply to any sale 
     or other disposition of property between related persons 
     except to the extent that the basis of such property in the 
     hands of the transferee is a substituted basis.
       ``(2) Related persons defined.--For purposes of this 
     section, the term `related persons' means--
       ``(A) persons bearing a relationship set forth in section 
     267(b), and
       ``(B) persons treated as single employer under subsection 
     (b) or (c) of section 414.
       ``(h) Transfers To Increase Indexing Adjustment.--If any 
     person transfers cash, debt, or any other property to another 
     person and the principal purpose of such transfer is to 
     secure or increase an adjustment under subsection (a), the 
     Secretary may disallow part or all of such adjustment or 
     increase.
       ``(i) Special Rules.--For purposes of this section--
       ``(1) Treatment of improvements, etc.--If there is an 
     addition to the adjusted basis of any tangible property or of 
     any stock in a corporation during the taxable year by reason 
     of an improvement to such property or a contribution to 
     capital of such corporation--
       ``(A) such addition shall never be taken into account under 
     subsection (c)(1)(A) if the aggregate amount thereof during 
     the taxable year with respect to such property or stock is 
     less than $1,000, and
       ``(B) such addition shall be treated as a separate asset 
     acquired at the close of such taxable year if the aggregate 
     amount thereof during the taxable year with respect to such 
     property or stock is $1,000 or more.

     A rule similar to the rule of the preceding sentence shall 
     apply to any other portion of an asset to the extent that 
     separate treatment of such portion is appropriate to carry 
     out the purposes of this section.
       ``(2) Assets which are not indexed assets throughout 
     holding period.--The applicable inflation adjustment shall be 
     appropriately reduced for periods during which the asset was 
     not an indexed asset.
       ``(3) Treatment of certain distributions.--A distribution 
     with respect to stock in a corporation which is not a 
     dividend shall be treated as a disposition.
       ``(4) Acquisition date where there has been prior 
     application of subsection (a)(1) with respect to the 
     taxpayer.--If there has been a prior application of 
     subsection (a)(1) to an asset while such asset was held by 
     the taxpayer, the date of acquisition of such asset by the 
     taxpayer shall be treated as not earlier than the date of the 
     most recent such prior application.
       ``(5) Collapsible corporations.--The application of section 
     341(a) (relating to collapsible corporations) shall be 
     determined without regard to this section.
       ``(j) Regulations.--The Secretary shall prescribe such 
     regulations as may be necessary or appropriate to carry out 
     the purposes of this section.''
       (e) Clerical Amendment.--The table of sections for part II 
     of subchapter O of chapter 1 is amended by inserting after 
     the item relating to section 1021 the following new item:

``Sec. 1022. Indexing of certain assets acquired on or after April 1, 
              2002, for purposes of determining gain.''

       (f) Effective Dates.--
       (1) In general.--Except as provided in paragraphs (2) and 
     (3), the amendments made by this section shall apply to 
     taxable years ending after May 6, 1997.
       (2) Withholding.--The amendment made by subsection (c)(2) 
     shall apply only to amounts paid after the date of the 
     enactment of this Act.
       (3) Indexing.--
       (A) In general.--The amendments made by subsections (d) and 
     (e) shall apply to the disposition of any property the 
     holding period of which begins on or after April 1, 2002.
       (B) Certain transactions between related persons.--The 
     amendments made by subsections (d) and (e) shall not apply to 
     the disposition of any property acquired on or after April 1, 
     2002, from a related person (as defined in section 1022(g)(2) 
     of the Internal Revenue Code of 1986, as added by this 
     section) if--
       (i) such property was so acquired for a price less than the 
     property's fair market value, and
       (ii) the amendments made by this section did not apply to 
     such property in the hands of such related person.
       (g) Election To Recognize Gain on Assets Held on or After 
     April 1, 2002.--For purposes of the Internal Revenue Code of 
     1986--
       (1) In general.--A taxpayer other than a corporation may 
     elect to treat--
       (A) any readily tradable stock (which is an indexed asset) 
     held by such taxpayer on or after April 1, 2002, and not sold 
     before the next business day after such date, as having been 
     sold on such next business day for an amount equal to its 
     closing market price on such next business day (and as having 
     been reacquired on such next business day for an amount equal 
     to such closing market price), and
       (B) any other indexed asset held by the taxpayer on or 
     after April 1, 2002, as having been sold on such date for an 
     amount equal to its fair market value on such date (and as 
     having been reacquired on such date for an amount equal to 
     such fair market value).
       (2) Treatment of gain or loss.--
       (A) Any gain resulting from an election under paragraph (1) 
     shall be treated as received or accrued on the date the asset 
     is treated as sold under paragraph (1) and shall be 
     recognized notwithstanding any provision of the Internal 
     Revenue Code of 1986.
       (B) Any loss resulting from an election under paragraph (1) 
     shall not be allowed for any taxable year.
       (3) Election.--An election under paragraph (1) shall be 
     made in such manner as the Secretary of the Treasury or his 
     delegate may prescribe and shall specify the assets for which 
     such election is made. Such an election, once made with 
     respect to any asset, shall be irrevocable.
       (4) Readily tradable stock.--For purposes of this 
     subsection, the term ``readily tradable stock'' means any 
     stock which, as of April 1, 2002, is readily tradable on an 
     established securities market or otherwise.
                                 ______
                                 

              TORRICELLI (AND LANDRIEU) AMENDMENT NO. 578

  Mr. TORRICELLI (for himself and Ms. Landrieu) proposed an amendment 
to the bill, S. 949, supra; as follows:

       On page 267, between lines 15 and 16, insert the following:

     SEC.   . EXCLUSION FROM INCOME OF SEVERANCE PAYMENT AMOUNTS; 
                   TIME PERIODS FOR CARRYBACK AND CARRYFORWARD OF 
                   UNUSED CREDITS.

       (a) Exclusion From Income of Severance Payment Amounts.--
     Part III of subchapter B of chapter 1 (relating to items 
     specifically excluded from gross income) is amended by 
     redesignating section 138 as section 139 and by inserting 
     after section 137 the following new section:

     ``SEC. 138. SEVERANCE PAYMENTS.

       ``(a) In General.--In the case of an individual, gross 
     income shall not include any qualified severance payment.
       ``(b) Limitation.--The amount to which the exclusion under 
     subsection (a) applies shall not exceed $2,000 with respect 
     to any separation from employment.
       ``(c) Qualified Severance Payment.--For purposes of this 
     section--
       ``(1) In general.--The term `qualified severance payment' 
     means any payment received by an individual if--
       ``(A) such payment was paid by such individual's employer 
     on account of such individual's separation from employment,
       ``(B) such separation was in connection with a reduction in 
     the work force of the employer, and
       ``(C) such individual does not attain employment within 6 
     months of the date of such separation in which the amount of 
     compensation is equal to or greater than 95 percent of the 
     amount of compensation for the employment that is related to 
     such payment.
       ``(2) Limitation.--Such term shall not include any payment 
     received by an individual if the aggregate payments received 
     with respect to the separation from employment exceed 
     $125,000.''
       (b) Time Periods for Carryback and Carryforward of Unused 
     Credits.--Section 39(a) (relating to unused credits) is 
     amended--
       (1) in paragraph (1), by striking ``3'' each place it 
     appears and inserting ``1'' and by striking ``15'' each place 
     it appears and inserting ``20''; and
       (2) in paragraph (2), by striking ``18'' each place it 
     appears and inserting ``22'' and by striking ``17'' each 
     place it appears and inserting ``21''.
       (c) Clerical Amendment.--The table of sections for part III 
     of subchapter B of chapter 1 is amended by striking the item 
     relating to section 138 and inserting the following new 
     items:

``Sec. 138. Severance payments.
``Sec. 139. Cross references to other Acts.''

       (d) Effective Dates.--
       (1) In general.--The amendments made by subsections (a) and 
     (c) shall apply to taxable years beginning after December 31, 
     1997, and before July 1, 2002.
       (2) Subsection (b).--The amendments made by subsection (b) 
     shall apply to the carryback and carryforward of credits 
     arising in taxable years beginning after December 31, 1997.
                                 ______
                                 

                 HARKIN (AND OTHERS) AMENDMENT NO. 579

  Mr. HARKIN (for himself, Mr. D'Amato, Mr. Mack, and Mr. Specter) 
proposed an amendment to the bill, supra; as follows:

       On page 1027, between lines 7 and 8, insert the following:
             Subtitle N--National Fund for Health Research

     SEC. 5995. SHORT TITLE.

       This subtitle may be cited as the ``National Fund for 
     Health Research Act''.

[[Page S6771]]

     SEC. 5996. FINDINGS.

       Congress makes the following findings:
       (1) Nearly 4 of 5 peer reviewed research projects deemed 
     worthy of funding by the National Institutes of Health are 
     not funded.
       (2) Less than 3 percent of the nearly one trillion dollars 
     our Nation spends on health care is devoted to health 
     research, while the defense industry spends 15 percent of its 
     budget on research and development.
       (3) Public opinion surveys have shown that Americans want 
     more Federal resources put into health research and are 
     willing to pay for it.
       (4) Ample evidence exists to demonstrate that health 
     research has improved the quality of health care in the 
     United States. Advances such as the development of vaccines, 
     the cure of many childhood cancers, drugs that effectively 
     treat a host of diseases and disorders, a process to protect 
     our Nation's blood supply from the HIV virus, progress 
     against cardiovascular disease including heart attack and 
     stroke, and new strategies for the early detection and 
     treatment of diseases such as colon, breast, and prostate 
     cancer clearly demonstrates the benefits of health research.
       (5) Health research which holds the promise of prevention 
     of intentional and unintentional injury and cure and 
     prevention of disease and disability, is critical to holding 
     down health care costs in the long term.
       (6) Expanded medical research is also critical to holding 
     down the long-term costs of the medicare program under title 
     XVIII of the Social Security Act. For example, recent 
     research has demonstrated that delaying the onset of 
     debilitating and costly conditions like Alzheimer's disease 
     could reduce general health care and medicare costs by 
     billions of dollars annually.
       (7) The state of our Nation's research facilities at the 
     National Institutes of Health and at universities is 
     deteriorating significantly. Renovation and repair of these 
     facilities are badly needed to maintain and improve the 
     quality of research.
       (8) Because discretionary spending is likely to decline in 
     real terms over the next 5 years, the Nation's investment in 
     health research through the National Institutes of Health is 
     likely to decline in real terms unless corrective legislative 
     action is taken.
       (9) A health research fund is needed to maintain our 
     Nation's commitment to health research and to increase the 
     percentage of approved projects which receive funding at the 
     National Institutes of Health.

     SEC. 5997. ESTABLISHMENT OF FUND.

       (a) Establishment.--There is established in the Treasury of 
     the United States a fund, to be known as the ``National Fund 
     for Health Research'' (hereafter in this section referred to 
     as the ``Fund''), consisting of such amounts as are 
     transferred to the Fund under subsection (b) any sums 
     specifically designated for such purpose by future acts of 
     Congress, and any interest earned on investment of amounts in 
     the Fund.
       (b) Transfers to Fund.--
       (1) In general.--The Secretary of the Treasury shall 
     transfer to the Fund amounts equivalent to one half the 
     amounts for each of the fiscal years 1998 through 2002 
     derived for each such fiscal year under Section 311 through 
     Section 314 of this act that exceeds the amount of Federal 
     revenues estimated by the Joint Tax Committee as of the date 
     of enactment of this act, to be gained from enactment of 
     Section 311 through Section 314 for each such fiscal year.
       (B) Determination by secretary.--Not later than 6 months 
     after the end of each of the fiscal years described in 
     subparagraph (A), the Secretary of the Treasury shall--
       (i) make a determination as to the amount to be transferred 
     to the Fund for the fiscal year involved under this 
     subsection; and
       (ii) subject to subsection (d), transfer such amount to the 
     Fund.
       (C) Fund Administered by Health and Human Services.--The 
     Secretary of Health and Human Services shall administer funds 
     transferred into the Fund.
       (D) Cap on transfer.--Amounts transferred to the Fund under 
     this subsection for any year in the 5-fiscal year period 
     beginning on October 1, 1997, shall not in combination with 
     the appropriated amount exceed an amount equal to the amount 
     appropriated for the National Institutes of Health for fiscal 
     year 1997 multiplied by 2.
       (c) Obligations From Fund.--
       (1) In general.--Subject to the provisions of paragraph 
     (4), with respect to the amounts made available in the Fund 
     in a fiscal year, the Secretary of Health and Human Services 
     shall distribute--
       (A) 2 percent of such amounts during any fiscal year to the 
     Office of the Director of the * * *

                           *   *   *   *   *

     Act with respect to health information communications; and
       (D) the remainder of such amounts during any fiscal year to 
     member institutes and centers, including the Office of AIDS 
     Research, of the National Institutes of Health in the same 
     proportion to the total amount received under this section, 
     as the amount of annual appropriations under appropriations 
     Acts for each member institute and Centers for the fiscal 
     year bears to the total amount of appropriations under 
     appropriations Acts for all member institutes and Centers of 
     the National Institutes of Health for the fiscal year.
       (2) Plans of allocation.--The amounts transferred under 
     paragraph (1)(D) shall be allocated by the Director of the 
     National Institutes of Health or the various directors of the 
     institutes and centers, as the case may be, pursuant to 
     allocation plans developed by the various advisory councils 
     to such directors, after consultation with such directors.
       (3) Grants and contracts fully funded in first year.--With 
     respect to any grant or contract funded by amounts 
     distributed under paragraph (1), the full amount of the total 
     obligation of such grant or contract shall be funded in the 
     first year of such grant or contract, and shall remain 
     available until expended.
       (4) Trigger and release of monies.--
       (A) Trigger and release.--No expenditure shall be made 
     under paragraph (1) during any fiscal year in which the 
     annual amount appropriated for the National Institutes of 
     Health is less than the amount so appropriated for the prior 
     fiscal year.
       (d) Required Appropriation.--No transfer may be made for a 
     fiscal year under subsection (b) unless an appropriations Act 
     providing for such a transfer has been enacted with respect 
     to such fiscal year.
                                 ______
                                 

                KENNEDY (AND D'AMATO) AMENDMENT NO. 580

  (Ordered to lie on the table.)
  Mr. KENNEDY (for himself, and Mr. D'Amato) submitted an amendment 
intended to be proposed by them to the bill, S. 949, supra; as follows:

       On page 267, between lines 15 and 16, insert the following:

     SEC. 780. TAX TREATMENT OF CONSOLIDATIONS OF LIFE INSURANCE 
                   DEPARTMENTS OF MUTUAL SAVINGS BANKS.

       (a) General Rule.--Section 594 (relating to alternative tax 
     for mutual savings banks conducting life insurance business) 
     is amended by adding at the end thereof the following new 
     subsection:
       ``(c) Treatment of Consolidations.--If 2 or more life 
     insurance departments to which subsection (a) applied are 
     consolidated into a single life insurance company pursuant to 
     a requirement of State law--
       ``(1) such consolidation shall be treated as a 
     reorganization described in section 368(a)(1)(E), and
       ``(2) any payments required to be made to policyholders in 
     connection with such consolidation shall be treated as 
     policyholder dividends deductible under section 808 but only 
     if--
       ``(A) such payments are only with respect to policies in 
     effect immediately before such consolidation,
       ``(B) such payments are only with respect to policies which 
     are participating before and after such consolidation,
       ``(C) such payments shall cease with respect to any policy 
     if such policy lapses after such consolidation,
       ``(D) the policyholders before such consolidation had no 
     divisible right to the surplus of any such department and had 
     no right to vote, and
       ``(E) the approval of such policyholders was not required 
     for such consolidation.''
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect on December 31, 1991.
                                 ______
                                 

              MOSELEY-BRAUN (AND OTHERS) AMENDMENT NO. 581

  Ms. MOSELEY-BRAUN (for herself, Mr. Kennedy, and Mr. Wellstone) 
proposed an amendment to the bill, S. 949, supra; as follows:

       On page 267, between lines 15 and 16, insert the following:
   Subtitle G--Tax Credit for Public Elementary and Secondary School 
                              Construction

     SEC. 781. TAX CREDIT FOR PUBLIC ELEMENTARY AND SECONDARY 
                   SCHOOL CONSTRUCTION.

       (a) In General.--Subpart B of part IV of subchapter A of 
     chapter 1 (relating to general business credits) is amended 
     by adding at the end the following new section:

     ``SEC. 45B. CREDIT FOR PUBLIC ELEMENTARY AND SECONDARY SCHOOL 
                   CONSTRUCTION.

       ``(a) In General.--For purposes of section 38, the amount 
     of the school construction credit determined under this 
     section for an eligible taxpayer for any taxable year with 
     respect to an eligible school construction project shall be 
     an amount equal to the lesser of--
       ``(1) the applicable percentage of the qualified school 
     construction costs, or
       ``(2) the excess (if any) of--
       ``(A) the taxpayer's allocable school construction amount 
     with respect to such project under subsection (d), over
       ``(B) any portion of such allocable amount used under this 
     section for preceding taxable years.
       ``(b) Eligible Taxpayer; Eligible School Construction 
     Project.--For purposes of this section--
       ``(1) Eligible taxpayer.--The term `eligible taxpayer' 
     means any person which--
       ``(A) has entered into a contract with a local educational 
     agency for the performance of construction or related 
     activities in connection with an eligible school construction 
     project, and
       ``(B) has received an allocable school construction amount 
     with respect to such contract under subsection (d).
       ``(2) Eligible school construction project.--

[[Page S6772]]

       ``(A) In general.--The term `eligible school construction 
     project' means any project related to a public elementary 
     school or secondary school that is conducted for 1 or more of 
     the following purposes:
       ``(i) Construction of school facilities in order to ensure 
     the health and safety of all students, which may include--

       ``(I) the removal of environmental hazards,
       ``(II) improvements in air quality, plumbing, lighting, 
     heating and air conditioning, electrical systems, or basic 
     school infrastructure, and
       ``(III) building improvements that increase school safety.

       ``(ii) Construction activities needed to meet the 
     requirements of section 504 of the Rehabilitation Act of 1973 
     (29 U.S.C. 794) or of the Americans with Disabilities Act of 
     1990 (42 U.S.C. 12101 et seq.).
       ``(iii) Construction activities that increase the energy 
     efficiency of school facilities.
       ``(iv) Construction that facilitates the use of modern 
     educational technologies.
       ``(v) Construction of new school facilities that are needed 
     to accommodate growth in school enrollments.
       ``(vi) Such other construction as the Secretary of 
     Education determines appropriate.
       ``(B) Special rules.--For purposes of this paragraph--
       ``(i) the term `construction' includes reconstruction, 
     renovation, or other substantial rehabilitation, and
       ``(ii) an eligible school construction project shall not 
     include the costs of acquiring land (or any costs related to 
     such acquisition).
       ``(c) Qualified School Construction Costs; Applicable 
     Percentage.--For purposes of this section--
       ``(1) In general.--The term `qualified school construction 
     costs' means the aggregate amounts paid to an eligible 
     taxpayer during the taxable year under the contract described 
     in subsection (b)(1).
       ``(2) Applicable percentage.--The term `applicable 
     percentage' means, in the case of an eligible school 
     construction project related to a local educational agency, 
     the higher of the following percentages:
       ``(A) If the local educational agency has a percentage or 
     number of children described in clause (i)(I) or (ii)(I) of 
     section 1125(c)(2)(A) of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 6335(c)(2)(A)), the 
     applicable percentage is 10 percent.
       ``(B) If the local educational agency has a percentage or 
     number of children described in clause (i)(II) or (ii)(II) of 
     such section, the applicable percentage is 15 percent.
       ``(C) If the local educational agency has a percentage or 
     number of children described in clause (i)(III) or (ii)(III) 
     of such section, the applicable percentage is 20 percent.
       ``(D) If the local educational agency has a percentage or 
     number of children described in clause (i)(IV) or (ii)(IV) of 
     such section, the applicable percentage is 25 percent.
       ``(E) If the local educational agency has a percentage or 
     number of children described in clause (i)(V) or (ii)(V) of 
     such section, the applicable percentage is 30 percent.
       ``(d) Allocable Amount.--For purposes of this section--
       ``(1) In general.--Subject to paragraph (3), a local 
     educational agency may allocate to any person a school 
     construction amount with respect to any eligible school 
     construction project.
       ``(2) Time for making allocation.--An allocation shall be 
     taken into account under paragraph (1) only if the allocation 
     is made at the time the contract described in subsection 
     (b)(1) is entered into (or such later time as the Secretary 
     may by regulation allow).
       ``(3) Coordination with state program.--A local educational 
     agency may not allocate school construction amounts for any 
     calendar year--
       ``(A) which in the aggregate exceed the amount of the State 
     school construction ceiling allocated to such agency for such 
     calendar year under subsection (e), and
       ``(B) which is consistent with any specific allocation 
     required by the State or this section.
       ``(e) State Ceilings and Allocation.--
       ``(1) In general.--A State educational agency shall 
     allocate to local educational agencies within the State for 
     any calendar year a portion of the State school construction 
     ceiling for such year. Such allocations shall be consistent 
     with the State application which has been approved under 
     subsection (f) and with any requirement of this section.
       ``(2) State school construction ceiling.--
       ``(A) In general.--The State school construction ceiling 
     for any State for any calendar year shall be an amount equal 
     to the State's allocable share of the national school 
     construction amount.
       ``(B) State's allocable share.--The State's allocable share 
     of the national school construction amount for a fiscal year 
     shall bear the same relation to the national school 
     construction amount for the fiscal year as the amount the 
     State received under section 1124 of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 6333) for the 
     preceding fiscal year bears to the total amount received by 
     all States under such section for such preceding fiscal year.
       ``(C) National school construction amount.--The national 
     school construction amount for any calendar year is the 
     lesser of--
       ``(i) $1,000,000,000, or
       ``(ii) the amount made available for such year under the 
     School Infrastructure Improvement Trust Fund established 
     under section 9512,
     reduced by any amount described in paragraph (3).
       ``(3) Special allocations for indian tribes and 
     territories.--
       ``(A) Allocation to indian tribes.--The national school 
     construction amount under paragraph (2)(C) shall be reduced 
     by 1.5 percent for each calendar year and the Secretary of 
     Interior shall allocate such amount among Indian tribes 
     according to their respective need for assistance under this 
     section.
       ``(B) Allocation to territories.--The national school 
     construction amount under paragraph (2)(C) shall be reduced 
     by 0.5 percent for each calendar year and the Secretary of 
     Education shall allocate such amount among the territories 
     according to their respective need for assistance under this 
     section.
       ``(4) Reallocation.--If the Secretary of Education 
     determines that a State is not making satisfactory progress 
     in carrying out the State's plan for the use of funds 
     allocated to the State under this section, the Secretary may 
     reallocate all or part of the State school construction 
     ceiling to 1 or more other States that are making 
     satisfactory progress.
       ``(e) State Application.--
       ``(1) In general.--A State educational agency shall not be 
     eligible to allocate any amount to a local educational agency 
     for any calendar year unless the agency submits to the 
     Secretary of Education (and the Secretary approves) an 
     application containing such information as the Secretary may 
     require, including--
       ``(A) an estimate of the overall condition of school 
     facilities in the State, including the projected cost of 
     upgrading schools to adequate condition;
       ``(B) an estimate of the capacity of the schools in the 
     State to house projected student enrollments, including the 
     projected cost of expanding school capacity to meet rising 
     student enrollment;
       ``(C) the extent to which the schools in the State have the 
     basic infrastructure elements necessary to incorporate modern 
     technology into their classrooms, including the projected 
     cost of upgrading school infrastructure to enable the use of 
     modern technology in classrooms;
       ``(D) the extent to which the schools in the State offer 
     the physical infrastructure needed to provide a high-quality 
     education to all students; and
       ``(E) an identification of the State agency that will 
     allocate credit amounts to local educational agencies within 
     the State.
       ``(2) Specific items in allocation.--The State shall 
     include in the State's application the process by which the 
     State will allocate the credits to local educational agencies 
     within the State. The State shall consider in its allocation 
     process the extent to which--
       ``(A) the school district served by the local educational 
     agency has--
       ``(i) a high number or percentage of the total number of 
     children aged 5 to 17, inclusive, in the State who are 
     counted under section 1124(c) of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 6333(c)); or
       ``(ii) a high percentage of the total number of low-income 
     residents in the State;
       ``(B) the local educational agency lacks the fiscal 
     capacity, including the ability to raise funds through the 
     full use of such agency's bonding capacity and otherwise, to 
     undertake the eligible school construction project without 
     assistance;
       ``(C) the local area makes an unusually high local tax 
     effort, or has a history of failed attempts to pass bond 
     referenda;
       ``(D) the local area contains a significant percentage of 
     federally owned land that is not subject to local taxation;
       ``(E) the threat the condition of the physical facility 
     poses to the safety and well-being of students;
       ``(F) there is a demonstrated need for the construction, 
     reconstruction, renovation, or rehabilitation based on the 
     condition of the facility;
       ``(G) the extent to which the facility is overcrowded; and
       ``(H) the extent to which assistance provided will be used 
     to support eligible school construction projects that would 
     not otherwise be possible to undertake.
       ``(3) Identification of areas.--The State shall include in 
     the State's application the process by which the State will 
     identify the areas of greatest needs (whether those areas are 
     in large urban centers, pockets of rural poverty, fast-
     growing suburbs, or elsewhere) and how the State intends to 
     meet the needs of those areas.
       ``(4) Allocations on basis of application.--The Secretary 
     of Education shall evaluate applications submitted under this 
     subsection and shall approve any such application which meets 
     the requirements of this section.
       ``(g) Required Allocations.--Notwithstanding any process 
     for allocation under a State application under subsection 
     (f), in the case of a State which contains 1 or more of the 
     100 school districts within the United States which contains 
     the largest number of poor children (as determined by the 
     Secretary of Education), the State shall allocate each 
     calendar year to the local educational agency serving such 
     districts that portion of the State school construction 
     ceiling which bears the same ratio to such ceiling as the 
     number of children in such district for the

[[Page S6773]]

     preceding calendar year who are counted for purposes of 
     section 1124(c) of the Elementary and Secondary Education Act 
     of 1965 (20 U.S.C. 6333(c)) bears to the total number of 
     children in such State who are so counted.
       ``(h) Definitions.--For purposes of this section--
       ``(1) Elementary school; local educational agency; 
     secondary school; state educational agency.--The terms 
     `elementary school', `local educational agency', `secondary 
     school', and `State educational agency' have the meanings 
     given the terms in section 14101 of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 8801).
       ``(2) Territories.--The term `territories' means the United 
     States Virgin Islands, Guam, American Samoa, the Commonwealth 
     of the Northern Mariana Islands, the Republic of the Marshall 
     Islands, the Federated States of Micronesia, and the Republic 
     of Palau.
       ``(3) State.--The term `State' means each of the several 
     States of the United States, the District of Columbia, and 
     the Commonwealth of Puerto Rico.''
       (b) Inclusion in General Business Credit.--
       (1) In general.--Section 38(b) is amended by striking 
     ``plus'' at the end of paragraph (11), by striking the period 
     at the end of paragraph (12) and inserting ``, plus'', and by 
     adding at the end the following new paragraph:
       ``(13) the school construction credit determined under 
     section 45D(a).''
       (2) Transition rule.--Section 39(d) is amended by adding at 
     the end the following new paragraph:
       ``(8) No carryback of section 45d credit before 
     enactment.--No portion of the unused business credit for any 
     taxable year which is attributable to the school construction 
     credit determined under section 45D may be carried back to a 
     taxable year ending before the date of the enactment of 
     section 45D.''
       (c) Establishment of School Infrastructure Improvement 
     Trust Fund.--
       (1) In general.--Subchapter A of chapter 98 is amended by 
     adding at the end the following new section:

     ``SEC. 9512. SCHOOL INFRASTRUCTURE IMPROVEMENT TRUST FUND.

       ``(a) Creation of Trust Fund.--There is established in the 
     Treasury of the United States a trust fund to be known as the 
     `School Infrastructure Improvement Trust Fund', consisting of 
     such amounts as may be credited or paid to such Trust Fund as 
     provided in this section or section 9602(b).
       ``(b) Transfers to Trust Fund.--
       ``(1) In general.--There are hereby appropriated to the 
     Trust Fund for any calendar year an amount equal to the 
     lesser of--
       ``(A) the revenue surplus determined under paragraph (2) 
     for the preceding calendar year, or
       ``(B) $1,000,000,000.
       ``(2) Revenue surplus.--The revenue surplus determined 
     under this paragraph for any calendar year is an amount equal 
     to the excess (if any) of--
       ``(A) the Secretary's estimate of revenues received in the 
     Treasury of the United States for the calendar year, over
       ``(B) the amount the Director of the Congressional Budget 
     Office estimated would be so received in the report provided 
     to the Committees on the Budget of the House and the Senate 
     pursuant to section 202(f)(1) of the Congressional Budget Act 
     of 1974, as amended.
       ``(c) Expenditures From Trust Fund.--Amounts in the Trust 
     Fund shall be transferred to the general fund of the Treasury 
     at such times as the Secretary determines appropriate to 
     offset any decrease in Federal revenues by reason of credits 
     allowed under section 38 which are attributable to the school 
     construction credit determined under section 45D.''
       (2) Conforming amendment.--The table of section for 
     subchapter A of chapter 98 is amended by adding at the end 
     the following new item:
``Sec. 9512. School Infrastructure Improvement Trust Fund.

       (d) Conforming Amendment.--The table of sections for 
     subpart D of part IV of subchapter A of chapter 1 is amended 
     by adding at the end the following new item:
``Sec. 45B. Credit for public elementary and secondary school 
              construction.''

       (e) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     1997.
                                 ______
                                 

                FEINGOLD (AND BUMPERS) AMENDMENT NO. 582

  Mr. FEINGOLD (for himself and Mr. Bumpers) proposed an amendment to 
the bill, S. 949, supra; as follows:

       On page 400, between lines 14 and 15, insert the following:

     SEC.   . CERTAIN MINERALS NOT ELIGIBLE FOR PERCENTAGE 
                   DEPLETION.

       (a) In General.--Section 613(b)(1) (relating to percentage 
     depletion rates) is amended--
       (A) in subparagraph (A), by striking ``and uranium''; and
       (B) in subparagraph (B), by striking ``asbestos,'', 
     ``lead,'', and ``mercury,'',
       (b) Conforming Amendments.--
       (1) Section 613(b)(3)(A) is amended by inserting ``other 
     than lead, mercury, or uranium'' after ``mental mines''.
       (2) Section 613(b)(4) is amended by striking ``asbestos (if 
     paragraph (1)(B) does not apply),''.
       (3) Section 613(b)(7) is amended by striking ``or'' at the 
     end of subparagraph (B), by striking the period at the end of 
     subparagraph (C) and inserting ``, or'', and by inserting 
     after subparagraph (C) the following:
       ``(D) mercury, uranium, lead, and asbestos.''
       (4) Section 613(c)(4)(D) is amended by striking ``lead,'' 
     and ``uranium,''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     1996.
                                 ______
                                 

                        GRAHAM AMENDMENT NO. 583

  Mr. ROTH (for Mr. Graham) proposed an amendment to the bill, S. 949, 
supra; as follows:

       On page 93, strike lines 13 through 25, and insert:
       ``(ii) a silver coin described in section 5112(e) of title 
     31, United States Code,
       ``(iii) a platinum coin described in section 5112(k) of 
     title 31, United States Code, or
       ``(iv) a coin issued under the laws of any State, or
       ``(B) any gold, silver, platinum, or palladium bullion of a 
     fineness equal to or exceeding the minimum fineness required 
     for metals which may be delivered in satisfaction of a 
     regulated futures contract subject to regulation by the 
     Commodity Futures Trading Commission under the Commodity 
     Exchange Act,
       On page 205, before line 12, insert the following:
       (c) Special Amortization Rule.--
       (1) Code amendment.--Section 412(b)(2) is amended by 
     striking ``and'' at the end of subparagraph (C), by striking 
     the period at the end of subparagraph (D) and inserting ``, 
     and'', and by inserting after subparagraph (D) the following:
       ``(E) the amount necessary to amortize in equal annual 
     installments (until fully amortized) over a period of 20 
     years the contributions which would be required to be made 
     under the plan but for the provisions of subsection 
     (c)(7)(A)(i)(I).''.
       (2) ERISA amendment.--Section 302(b)(2) of the Employee 
     Retirement Income Security Act of 1974 (29 U.S.C. 1082(b)(2)) 
     is amended by striking ``and'' at the end of subparagraph 
     (C), by striking the period at the end of subparagraph (D) 
     and inserting ``, and'', and by inserting after subparagraph 
     (D) the following:
       ``(E) the amount necessary to amortize in equal annual 
     installments (until fully amortized) over a period of 20 
     years the contributions which would be required to be made 
     under the plan but for the provisions of subsection 
     (c)(7)(A)(i)(I).''.
       (3) Conforming amendments.--
       (A) Section 412(c)(7)(D) is amended by adding ``and'' at 
     the end of clause (i), by striking ``, and'' at the end of 
     clause (ii) and inserting a period, and by striking clause 
     (iii).
       (B) Section 302(c)(7)(D) of the Employee Retirement Income 
     Security Act of 1974 (29 U.S.C. 1082(c)(7)(D)) is amended by 
     adding ``and'' at the end of clause (i), by striking ``, 
     and'' at the end of clause (ii) and inserting a period, and 
     by striking clause (iii).
       (4) Effective dates.--
       (A) In general.--The amendments made by this subsection 
     shall apply to plan years beginning after December 31, 1998.
       (B) Special rule for 1999.--In the case of a plan's first 
     year beginning in 1999, there shall be added to the amount 
     required to be amortized under section 412(b)(2)(E) of the 
     Internal Revenue Code of 1986 and section 302(b)(2)(E) of the 
     Employee Retirement Income Security Act of 1974 (as added by 
     paragraphs (1) and (2)) over the 20-year period beginning 
     with such year, the unamortized balance (as of the close of 
     the preceding plan year) of any amount required to be 
     amortized under section 412(c)(7)(D)(iii) of such Code and 
     section 302(c)(7)(D)(iii) of such Act (as repealed by 
     paragraph (3)) for plan years beginning before 1999.
       On page 639, between lines 11 and 12, insert:
       (4) Amendments related to section 1461.--
       (A) Section 415(e)(5)(A) is amended to read as follows:
       ``(A) Certain ministers may participate.--For purposes of 
     this part--
       ``(i) In general.--A duly ordained, commissioned, or 
     licensed minister of a church is described in paragraph 
     (3)(B) if, in connection with the exercise of their ministry, 
     the minister--
       ``(I) is a self-employed individual (within the meaning of 
     section 401(c)(1)(B), or
       ``(II) is employed by an organization other than an 
     organization which is described in section 501(c)(3) and with 
     respect to which the minister shares common religious bonds.
       ``(ii) Treatment as employer and employee.--For purposes of 
     sections 403(b)(1)(A) and 404(a)(10), a minister described in 
     clause (i)(I) shall be treated as employed by the minister's 
     own employer which is an organization described in section 
     501(c)(3) and exempt from tax under section 501(a).''
       (B) Section 403(b)(1)(A) is amended by striking ``or'' at 
     the end of clause (i), by inserting ``or'' at the end of 
     clause (ii), and by adding at the end the following new 
     clause:
       ``(iii) for the minister described in section 415(e)(5)(A) 
     by the minister or by an employer.''.

[[Page S6774]]

                                 ______
                                 

                  NICKLES (AND BOND) AMENDMENT NO. 584

  Mr. ROTH (for Mr. Nickles, for himself and Mr. Bond) proposed an 
amendment to the bill, S. 949, supra; as follows:

       On page 212, between lines 11 and 12, insert the following:

     SEC.   . SENSE OF THE SENATE WITH RESPECT TO SELF-EMPLOYMENT 
                   TAX OF LIMITED PARTNERS.

       (a) Findings.--The Senate finds that--
       (1) the Department of the Treasury issued Proposed 
     Regulation 1.1402(a)-2 in January 1997 relating to the 
     definition of a limited partner for self-employment tax 
     purposes under section 1402(a)(13) of the Internal Revenue 
     Code;
       (2) since 1977, section 1402(a)(13) of such Code has 
     provided that--
       (A) a limited partner's net earnings from self-employment 
     include only guaranteed payments made to the individual for 
     services actually rendered and do not include a limited 
     partner's distributive share of the income or loss of the 
     partnership, and
       (B) a general partner's net earnings from self-employment 
     include the partner's distributive share;
       (3) the proposed regulations provide generally--
       (A) that a partner will not be treated as a limited partner 
     if the individual--
       (i) has personal liability for partnership debts,
       (ii) has authority to contract on behalf of the 
     partnership, or
       (iii) participates in the partnership's trade or business 
     for more than 500 hours during the taxable year;
       (B) that an individual meeting any one of these three 
     criteria will be treated as a general partner, and net 
     earnings from self-employment will include the partner's 
     distributive share of partnership income and loss, resulting 
     in substantial tax liability because there is a 15.3 percent 
     tax on self-employment income below $65,400 in 1997 and a 2.9 
     percent hospital insurance tax on self-employment income 
     above that amount;
       (4) certain types of entities, such as limited liability 
     companies and limited liability partnerships, were not widely 
     used at the time the present rule relating to limited 
     partners was enacted, and that the proposed regulations 
     attempt to address owners of such entities.
       (5) the Senate is concerned that the proposed change in the 
     treatment of individuals who are limited partners under 
     applicable State law exceeds the regulatory authority of the 
     Treasury Department and would effectively change the law 
     administratively without congressional action; and
       (6) the proposed regulations address and raise significant 
     policy issues and the proposed definition of a limited 
     partner may have a substantial impact on the tax liability of 
     certain individuals and may also affect individuals' 
     entitlement to social security benefits.
       (b) Sense of Senate.--It is the sense of the Senate that--
       (1) the Department of the Treasury and the Internal Revenue 
     Service should withdraw Proposed Regulation 1.1402(a)-(2) 
     which imposes a tax on limited partners; and
       (2) Congress, not the Department of the Treasury or the 
     Internal Revenue Service, should determine the tax law 
     governing self-employment income for limited partners.
                                 ______
                                 

                       SPECTER AMENDMENT NO. 585

  Mr. ROTH (for Mr. Specter) proposed an amendment to the bill S. 949, 
supra; as follows:

       On page 20, between lines 5 and 6, insert the following;

     SEC. 105. ADOPTION EXPENSES.

       (a) Distributions From Certain Plans May Be Used Without 
     Penalty To Pay Adoption Expenses.--
       (1) In General.--Section 72(t)(2) (relating to exceptions 
     to 10-percent additional tax on early distributions from 
     qualified retirement plans) is amended by adding at the end 
     the following:
       ``(E) Distributions from certain plans for adoption 
     expenses.--Distributions to an individual from an individual 
     retirement plan of so much of the qualified adoption expenses 
     (as defined in section 23(d)(1)) of the individual as does 
     not exceed $2,000.''.
       (C) Conforming Amendment.--Section 72(t)(2)(B) is amended 
     by striking ``or (D)'' and inserting ``, (D) or (E)''.
       (3) Effective Date.--The amendments made by this subsection 
     shall apply to payments and distributions after December 31, 
     1996.
                                 ______
                                 

                FAIRCLOTH (AND OTHERS) AMENDMENT NO. 586

  Mr. ROTH (for Mr. Faircloth, for himself, Mr. Helms, and Mr. Lott) 
proposed an amendment to the bill, S. 949, supra; as follows:

       On page 267, between lines 15 and 16, insert the following:

     SECTION   . CURRENT REFUNDINGS OF CERTAIN TAX-EXEMPT BONDS.

       (a) In General.--Subsection (c) of section 10632 of the 
     Revenue Act of 1987 (relating to bonds issued by Indian 
     tribal governments) is amended by adding at the end the 
     following new sentence: ``The amendments made by this section 
     shall not apply to any obligation issued after such date if--
       ``(1) such obligation is issued (or is part of a series of 
     obligations issued) to refund an obligation issued on or 
     before such date,
       ``(2) the average maturity date of the issue of which the 
     refunding obligation is a part is not later than the average 
     maturity date of the obligations to be refunded by such 
     issue,
       ``(3) the amount of the refunding obligation does not 
     exceed the outstanding amount of the refunded obligation, and
       ``(4) the net proceeds of the refunding obligation are used 
     to redeem the refunded obligation not later than 90 days 
     after the date of the issuance of the refunding obligation.

     For purposes of paragraph (2), average maturity shall be 
     determined in accordance with section 147(b)(2)(A) of the 
     Internal Revenue Code of 1986.''
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to refunding obligations issued after the date of 
     the enactment of this Act.
                                 ______
                                 

                        GORTON AMENDMENT NO. 587

  Mr. ROTH (for Mr. Gorton) proposed an amendment to the bill, S. 949, 
supra; as follows:

       At the end of title VII, insert:

     SEC.  . SPECIAL RULE FOR THRIFTS WHICH BECOME LARGE BANKS.

       (a) In General.--Section 593(g)(2) (defining applicable 
     excess reserves) is amended by adding at the end the 
     following new subparagraph:
       ``(C) Special rule for thrifts which became large banks in 
     1995.--
       ``(i) In General.--In the case of a bank (as defined in 
     section 581) which became a large bank (as defined in section 
     585(c)(2)) for its first taxable year beginning after 
     December 31, 1994, the balance taken into account under 
     subparagraph (A)(ii) shall not be less than the amount which 
     would be the balance of such reserves as of the close of its 
     last taxable year beginning before January 1, 1995, if the 
     additions to such reserves for all taxable years had been 
     determined under section 585(b)(2)(A).
       ``(ii) Application of cut-off method; etc.--In the case of 
     a taxpayer to which this subparagraph applies--
       ``(I) paragraph (5)(B) shall apply, and
       ``(II) this subparagraph shall not apply in determining the 
     amount taken into account by the taxpayer under subparagraph 
     (A)(ii) for purposes of paragraphs (5) and (6) or subsection 
     (e)(1).''
       (b) Effective Date.--The amendment made by this section 
     shall take effect as if included in the amendment made by 
     section 1616 of the Small Business Job Protection Act of 
     1996.
                                 ______
                                 

                       SANTORUM AMENDMENT NO. 588

  Mr. ROTH (for Mr. Santorum) proposed an amendment to the bill, S. 
949, supra; as follows:

       On page 267, between lines 15 and 16, insert the following:

     SEC.   . SENSE OF THE SENATE.

       (a) Findings.--The Senate finds that--
       (1) Congress has not provided a genuine tax cut for 
     America's middle-class families since 1981;
       (2) President Clinton promised middle-class tax cuts in 
     1992;
       (3) President Clinton raised taxes by $240,000,000,000 in 
     1993;
       (4) President Clinton vetoed middle-class tax cuts in 1995;
       (5) the Middle-class American worker had to work until May 
     9 in order to earn enough money to pay all Federal, State, 
     and local taxes in 1997;
       (6) the Joint Economic Committee reports that real total 
     Government taxes per household in 1994 totaled $18,600;
       (7) more than 70 percent of the tax cuts in both the House 
     of Representatives and the Senate tax relief bills will go to 
     Americans earning less than $75,000 annually;
       (8) the Joint Economic Committee estimates that a family of 
     4 earning $30,000 will receive 53 percent of the tax relief 
     under the reconciliation bill;
       (9) the earned income tax credit was already expanded in 
     President Clinton's 1993 tax bill;
       (10) the fiscal year 1998 budget resolution does not make 
     the $500-per-child tax credit refundable; and
       (11) those who receive the earned income tax credit do not 
     pay Federal income taxes but receive a substantial cash 
     transfer from the Federal Government in the form of refund 
     checks above and beyond income tax rebates.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that America's middle-class taxpayers shoulder the biggest 
     tax burden and that only those who pay Federal income taxes 
     should benefit from the Federal income tax cuts contained in 
     the Revenue Reconciliation Act of 1997.
                                 ______
                                 

                         BURNS AMENDMENT NO 589

  Mr. ROTH (for Mr. Burns) proposed an amendment to the bill, S. 949, 
supra; as follows:

       On page 267, between lines 15 and 16, insert the following:

     SEC. 780. AVERAGING OF FARM INCOME OVER 3 YEARS.

       (a) In General.--Subpart B of part II of subchapter E of 
     chapter 1 of the Internal Revenue Code of 1986 (relating to 
     taxable

[[Page S6775]]

     year for which items of gross income included) is amended by 
     adding the following new section:

     ``SEC. 460A. AVERAGING OF FARM INCOME.

       ``(a) In General.--At the election of a taxpayer engaged in 
     a farming business, the tax imposed by section 1 for such 
     taxable year shall be equal to the sum of--
       ``(1) a tax computed under such section on taxable income 
     reduced by elected farm income, plus
       ``(2) the increase in tax which would result if taxable 
     income for the 3 prior taxable years were increased by the 
     elected farm income.
       ``(b) Definitions.--In this section--
       ``(1) Elected farm income.--
       ``(A) In general.--The term `elected farm income' means so 
     much of the taxable income for the taxable year--
       ``(i) which is attributable to any farming business; and
       ``(ii) which is specified in the election under subsection 
     (a).
       ``(B) Treatment of gains.--For purposes of subparagraph 
     (A), gain from the sale or other disposition of property 
     (other than land) regularly used by the taxpayer in a farming 
     business for a substantial period shall be treated as 
     attributable to a farming business.
       ``(2) Farming business.--The term `farming business' has 
     the meaning given such term by section 263A(e)(4).''
       (b) Clerical Amendment.--The table of sections for such 
     subpart B is amended by adding at the end the following new 
     item:

``Sec. 460A. Averaging of farm income.''

       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act and before January 1, 2001.
       Section 503 of the bill is amended on page 161, line 4 by 
     striking ``July 31, 1999'' and inserting ``May 31, 1999.''
                                 ______
                                 

                WELLSTONE (AND OTHERS) AMENDMENT NO. 590

  Mr. WELLSTONE (for himself, Mr. Bingaman, Mr. Kerry, Mr. Kennedy, Mr. 
Reed, and Mr. Dodd) proposed an amendment to the bill, S. 949, supra; 
as follows:

       Strike section 201 and insert the following:

     SEC. 201. REFUNDABLE CHILD TAX CREDIT.

       (a) In General.--Subpart C of part IV of subchapter A of 
     chapter 1 (relating to refundable credits) is amended by 
     redesignating section 35 as section 36 and by inserting after 
     section 34 the following new section:

     ``SEC. 35. HIGHER EDUCATION TUITION AND RELATED EXPENSES.

       ``(a) Allowance of Credit.--
       ``(1) In general.--In the case of an individual, there 
     shall be allowed as a credit against the tax imposed by this 
     subtitle for the taxable year the amount equal to 50 percent 
     of qualified tuition and related expenses paid by the 
     taxpayer during such taxable year for education furnished 
     during any academic period beginning in such year.
       ``(2) Special rule for education at community colleges and 
     vocational schools.--In the case of qualified tuition and 
     related expenses for education furnished at a community 
     college or vocational school, paragraph (1) shall be applied 
     by substituting `75 percent' for `50 percent'.
       ``(b) Limitations.--
       ``(1) Dollar limitation.--The amount allowed as a credit 
     under subsection (a) for any taxable year with respect to the 
     qualified tuition and related expenses of any 1 individual 
     shall not exceed $1,500.
       ``(2) Election required.--
       ``(A) In general.--No credit shall be allowed under 
     subsection (a) for a taxable year with respect to the 
     qualified tuition and related expenses of an individual 
     unless the taxpayer elects to have this section apply with 
     respect to such individual for such year.
       ``(B) Credit allowed only for 2 taxable years.--An election 
     under this paragraph shall not take effect with respect to an 
     individual for any taxable year if an election under this 
     paragraph (by the taxpayer or any other individual) is in 
     effect with respect to such individual for any 2 prior 
     taxable years.
       ``(C) Coordination with exclusions.--An election under this 
     paragraph shall not take effect with respect to an individual 
     for any taxable year if there is in effect for such taxable 
     year an election under section 529(c)(3)(B) or 530(c)(1) (by 
     the taxpayer or any other individual) to exclude from gross 
     income distributions from a qualified tuition program or 
     education individual retirement account used to pay qualified 
     higher education expenses of the individual.
       ``(3) Credit allowed for year only if individual is at 
     least \1/2\ time student for portion of year.--No credit 
     shall be allowed under subsection (a) for a taxable year with 
     respect to the qualified tuition and related expenses of an 
     individual unless such individual is an eligible student for 
     at least one academic period which begins during such year.
       ``(4) Credit allowed only for first 2 years of 
     postsecondary education.--No credit shall be allowed under 
     subsection (a) for any taxable year with respect to the 
     qualified tuition and related expenses of an individual if 
     the individual has completed (before the beginning of such 
     taxable year) the first 2 years of postsecondary education at 
     an eligible educational institution.
       ``(c) Limitation Based on Modified Adjusted Gross Income.--
       ``(1) In general.--The amount which would (but for this 
     subsection) be taken into account under subsection (a) for 
     the taxable year shall be reduced (but not below zero) by the 
     amount determined under paragraph (2).
       ``(2) Amount of reduction.--The amount determined under 
     this paragraph is the amount which bears the same ratio to 
     the amount which would be so taken into account as--
       ``(A) the excess of--
       ``(i) the taxpayer's modified adjusted gross income for 
     such taxable year, over
       ``(ii) $40,000 ($80,000 in the case of a joint return), 
     bears to
       ``(B) $10,000 ($20,000 in the case of a joint return).
       ``(3) Modified adjusted gross income.--The term `modified 
     adjusted gross income' means the adjusted gross income of the 
     taxpayer for the taxable year increased by any amount 
     excluded from gross income under section 911, 931, or 933.
       ``(d) Definitions.--For purposes of this section--
       ``(1) Qualified tuition and related expenses.--
       ``(A) In general.--The term `qualified tuition and related 
     expenses' means tuition and fees required for the enrollment 
     or attendance of--
       ``(i) the taxpayer,
       ``(ii) the taxpayer's spouse, or
       ``(iii) any dependent of the taxpayer with respect to whom 
     the taxpayer is allowed a deduction under section 151,

     at an eligible educational institution and books required for 
     courses of instruction of such individual at such 
     institution.
       ``(B) Exception for education involving sports, etc.--Such 
     term does not include expenses with respect to any course or 
     other education involving sports, games, or hobbies, unless 
     such course or other education is part of the individual's 
     degree program.
       ``(C) Exception for nonacademic fees.--Such term does not 
     include student activity fees, athletic fees, insurance 
     expenses, or other expenses unrelated to an individual's 
     academic course of instruction.
       ``(D) Reduction for scholarships, etc.--

  ``For reduction for scholarships, etc. and limitation based on 
grants, see subsection (g)(2).

       ``(2) Eligible educational institution.--The term `eligible 
     educational institution' means an institution--
       ``(A) which is described in section 481 of the Higher 
     Education Act of 1965 (20 U.S.C. 1088), as in effect on the 
     date of the enactment of this section, and
       ``(B) which is eligible to participate in a program under 
     title IV of such Act.
       ``(3) Eligible student.--The term `eligible student' means, 
     with respect to any academic period, a student who--
       ``(A) meets the requirements of section 484(a)(1) of the 
     Higher Education Act of 1965 (20 U.S.C. 1091(a)(1)), as in 
     effect on the date of the enactment of this section, and
       ``(B) is carrying at least \1/2\ the normal full-time work 
     load for the course of study the student is pursuing.
       ``(4) Community college.--The term `community college' 
     means any institution of higher education (as defined in 
     section 1201 of the Higher Education Act of 1965 (20 U.S.C. 
     1141)) that awards an associate's degree.
       ``(5) Vocational school.--The term `vocational school' 
     means a postsecondary vocational institution (as defined in 
     section 481 of such Act (20 U.S.C. 1088)).
       ``(e) Treatment of Expenses Paid by Dependent.--If a 
     deduction under section 151 with respect to an individual is 
     allowed to another taxpayer for a taxable year beginning in 
     the calendar year in which such individual's taxable year 
     begins--
       ``(1) no credit shall be allowed under subsection (a) to 
     such individual for such individual's taxable year, and
       ``(2) qualified tuition and related expenses paid by such 
     individual during such individual's taxable year shall be 
     treated for purposes of this section as paid by such other 
     taxpayer.
       ``(f) Treatment of Certain Prepayments.--If qualified 
     tuition and related expenses are paid by the taxpayer during 
     a taxable year for an academic period which begins during the 
     first 3 months following such taxable year, such academic 
     period shall be treated for purposes of this section as 
     beginning during such taxable year.
       ``(g) Special Rules.--
       ``(1) Identification requirement.--No credit shall be 
     allowed under subsection (a) to a taxpayer with respect to 
     the qualified tuition and related expenses of an individual 
     unless the taxpayer includes the name and taxpayer 
     identification number of such individual on the return of tax 
     for the taxable year.
       ``(2) Adjustment for certain scholarships, etc.--
       ``(A) In general.--The amount of qualified tuition and 
     related expenses otherwise taken into account under 
     subsection (a) with respect to an individual for an academic 
     period shall be reduced (before the application of 
     subsections (b) and (c)) by the sum of any amounts paid for 
     the benefit of such individual which are allocable to such 
     period as--
       ``(i) a qualified scholarship which is excludable from 
     gross income under section 117,
       ``(ii) an educational assistance allowance under chapter 
     30, 31, 32, 34, or 35 of title 38, United States Code, or 
     under chapter 1606 of title 10, United States Code, and
       ``(iii) a payment (other than a gift, bequest, devise, or 
     inheritance within the

[[Page S6776]]

     meaning of section 102(a)) for such individual's educational 
     expenses, or attributable to such individual's enrollment at 
     an eligible educational institution, which is excludable from 
     gross income under any law of the United States.
       ``(B) Exception for room and board.--Subject to 
     subparagraph (C), subparagraph (A) shall not apply to that 
     portion of any amount which is properly allocable to room and 
     board relating to the attendance of the individual at an 
     eligible educational institution.
       ``(C) Limitation on qualified tuition and related 
     expenses.--In no event shall the qualified tuition and 
     related expenses of an individual for any academic period 
     exceed the excess (if any) of--
       ``(i) the costs of attendance (as defined in section 472 of 
     the Higher Education Act of 1965 (20 U.S.C. 1087ll) of the 
     individual for such period, over
       ``(ii) the aggregate amounts described in subparagraph (A) 
     for such period (without regard to subparagraph (B)).
       ``(3) Denial of credit if student convicted of a felony 
     drug offense.--No credit shall be allowed under subsection 
     (a) for qualified tuition and related expenses for the 
     enrollment or attendance of a student for any academic period 
     if such student has been convicted of a Federal or State 
     felony offense consisting of the possession or distribution 
     of a controlled substance before the end of the taxable year 
     with or within which such period ends.
       ``(4) Denial of credit where no high school degree.--No 
     credit shall be allowed under subsection (a) for qualified 
     tuition and related expenses for the enrollment or attendance 
     of a student for any academic period if such student has not 
     received a high school degree (or its equivalent) before the 
     beginning of such period. This paragraph shall not apply to a 
     student if the student did not receive such degree by reason 
     of enrollment in an early admission program to an eligible 
     educational institution.
       ``(5) Denial of double benefit.--No credit shall be allowed 
     under this section for any expense for which a deduction is 
     allowed under any other provision of this chapter.
       ``(6) No credit for married individuals filing separate 
     returns.--If the taxpayer is a married individual (within the 
     meaning of section 7703), this section shall apply only if 
     the taxpayer and the taxpayer's spouse file a joint return 
     for the taxable year.
       ``(7) Nonresident aliens.--If the taxpayer is a nonresident 
     alien individual for any portion of the taxable year, this 
     section shall apply only if such individual is treated as a 
     resident alien of the United States for purposes of this 
     chapter by reason of an election under subsection (g) or (h) 
     of section 6013.
       ``(h) Inflation Adjustments.--
       ``(1) Dollar limitation on amount of credit.--
       ``(A) In general.--In the case of a taxable year beginning 
     after 1998, the $1,500 amount in subsection (b)(1) shall be 
     increased by an amount equal to--
       ``(i) such dollar amount, multiplied by
       ``(ii) the cost-of-living adjustment determined under 
     section 1(f)(3) for the calendar year in which the taxable 
     year begins, determined by substituting `calendar year 1997' 
     for `calendar year 1992' in subparagraph (B) thereof.
       ``(B) Rounding.--If any amount as adjusted under 
     subparagraph (A) is not a multiple of $50, such amount shall 
     be rounded to the next lowest multiple of $50.
       ``(2) Income limits.--
       ``(A) In general.--In the case of a taxable year beginning 
     after 2000, the $40,000 and $80,000 amounts in subsection 
     (c)(2) shall each be increased by an amount equal to--
       ``(i) such dollar amount, multiplied by
       ``(ii) the cost-of-living adjustment determined under 
     section 1(f)(3) for the calendar year in which the taxable 
     year begins, determined by substituting `calendar year 1999' 
     for `calendar year 1992' in subparagraph (B) thereof.
       ``(B) Rounding.--If any amount as adjusted under 
     subparagraph (A) is not a multiple of $5,000, such amount 
     shall be rounded to the next lowest multiple of $5,000.
       ``(i) Coordination With Means-Tested Program.--For purposes 
     of any means-tested Federal program, any refund made to an 
     individual (or the spouse of an individual) shall not be 
     treated as income (and shall not be taken into account in 
     determining resources for the month of its receipt and the 
     following month).
       ``(j) Regulations.--The Secretary may prescribe such 
     regulations as may be necessary or appropriate to carry out 
     this section, including regulations providing for a recapture 
     of credit allowed under this section in cases where there is 
     a refund in a subsequent taxable year of any amount which was 
     taken into account in determining the amount of such 
     credit.''
       (b) Extension of Procedures Applicable to Mathematical or 
     Clerical Errors.--Paragraph (2) of section 6213(g) (relating 
     to the definition of mathematical or clerical errors) is 
     amended by striking ``and'' at the end of subparagraph (G), 
     by striking the period at the end of subparagraph (H) and 
     inserting ``, and'', and by inserting after subparagraph (H) 
     the following new subparagraph:
       ``(I) an omission of a correct TIN required under section 
     35(g)(1) (relating to higher education tuition and related 
     expenses) to be included on a return.''
       (c) Returns Relating to Tuition and Related Expenses.--
       (1) In general.--Subpart B of part III of subchapter A of 
     chapter 61 (relating to information concerning transactions 
     with other persons) is amended by inserting after section 
     6050R the following new section:

     ``SEC. 6050S. RETURNS RELATING TO HIGHER EDUCATION TUITION 
                   AND RELATED EXPENSES.

       ``(a) In General.--Any person--
       ``(1) which is an eligible educational institution which 
     receives payments for qualified tuition and related expenses 
     with respect to any individual for any calendar year, or
       ``(2) which is engaged in a trade or business and which, in 
     the course of such trade or business, makes payments during 
     any calendar year to any individual which constitute 
     reimbursements or refunds (or similar amounts) of qualified 
     tuition and related expenses of such individual,

     shall make the return described in subsection (b) with 
     respect to the individual at such time as the Secretary may 
     by regulations prescribe.
       ``(b) Form and Manner of Returns.--A return is described in 
     this subsection if such return--
       ``(1) is in such form as the Secretary may prescribe,
       ``(2) contains--
       ``(A) the name, address, and TIN of the individual with 
     respect to whom payments described in subsection (a) were 
     received from (or were paid to),
       ``(B) the name, address, and TIN of any individual 
     certified by the individual described in subparagraph (A) as 
     the taxpayer who will claim the individual as a dependent for 
     purposes of the deduction allowable under section 151 for any 
     taxable year ending with or within the calendar year, and
       ``(C) the--
       ``(i) aggregate amount of payments for qualified tuition 
     and related expenses received with respect to the individual 
     described in subparagraph (A) during the calendar year, and
       ``(ii) aggregate amount of reimbursements or refunds (or 
     similar amounts) paid to such individual during the calendar 
     year, and
       ``(D) such other information as the Secretary may 
     prescribe.
       ``(c) Application to Governmental Units.--For purposes of 
     this section--
       ``(1) a governmental unit or any agency or instrumentality 
     thereof shall be treated as a person, and
       ``(2) any return required under subsection (a) by such 
     governmental entity shall be made by the officer or employee 
     appropriately designated for the purpose of making such 
     return.
       ``(d) Statements To Be Furnished to Individuals With 
     Respect to Whom Information Is Required.--Every person 
     required to make a return under subsection (a) shall furnish 
     to each individual whose name is required to be set forth in 
     such return under subparagraph (A) or (B) of subsection 
     (b)(2) a written statement showing--
       ``(1) the name, address, and phone number of the 
     information contact of the person required to make such 
     return, and
       ``(2) the aggregate amounts described in subparagraph (C) 
     of subsection (b)(2).

     The written statement required under the preceding sentence 
     shall be furnished on or before January 31 of the year 
     following the calendar year for which the return under 
     subsection (a) was required to be made.
       ``(e) Definitions.--For purposes of this section, the terms 
     `eligible educational institution' and `qualified tuition and 
     related expenses' have the meanings given such terms by 
     section 35.
       ``(f) Returns Which Would Be Required To Be Made by 2 or 
     More Persons.--Except to the extent provided in regulations 
     prescribed by the Secretary, in the case of any amount 
     received by any person on behalf of another person, only the 
     person first receiving such amount shall be required to make 
     the return under subsection (a).
       ``(g) Regulations.--The Secretary shall prescribe such 
     regulations as may be necessary to carry out the provisions 
     of this section. No penalties shall be imposed under section 
     6724 with respect to any return or statement required under 
     this section until such time as such regulations are 
     issued.''
       (2) Assessable penalties.--
       (A) Subparagraph (B) of section 6724(d)(1) (relating to 
     definitions) is amended by redesignating clauses (ix) through 
     (xiv) as clauses (x) through (xv), respectively, and by 
     inserting after clause (viii) the following new clause:
       ``(ix) section 6050S (relating to returns relating to 
     payments for qualified tuition and related expenses),''.
       (B) Paragraph (2) of section 6724(d) is amended by striking 
     ``or'' at the end of the next to last subparagraph, by 
     striking the period at the end of the last subparagraph and 
     inserting ``, or'', and by adding at the end the following 
     new subparagraph:
       ``(Z) section 6050S(d) (relating to returns relating to 
     qualified tuition and related expenses).''
       (3) Clerical amendment.--The table of sections for subpart 
     B of part III of subchapter A of chapter 61 is amended by 
     inserting after the item relating to section 6050R the 
     following new item:

``Sec. 6050S. Returns relating to higher education tuition and related 
              expenses.''


[[Page S6777]]


       (d) Coordination With Section 135.--Subsection (d) of 
     section 135 is amended by redesignating paragraphs (2) and 
     (3) as paragraphs (3) and (4), respectively, and by inserting 
     after paragraph (1) the following new paragraph:
       ``(2) Coordination with higher education credit.--The 
     amount of the qualified higher education expenses otherwise 
     taken into account under subsection (a) with respect to the 
     education of an individual shall be reduced (before the 
     application of subsection (b)) by the amount of such expenses 
     which are taken into account in determining the credit 
     allowable to the taxpayer or any other person under section 
     35 with respect to such expenses.
       (e) Clerical Amendment.--The table of sections for subpart 
     C of part IV of subchapter A of chapter 1 is amended by 
     inserting after the item relating to section 35 the following 
     new items:

``Sec. 35. Higher education tuition and related expenses.
``Sec. 36. Overpayments of tax.''

       (f) Effective Date.--The amendments made by this section 
     shall apply to expenses paid after December 31, 1997 (in 
     taxable years ending after such date), for education 
     furnished in academic periods beginning after such date.

       On page 13, beginning with line 21, strike all through page 
     14, line 4, and insert:
       ``(B) Threshold amount.--For purposes of subparagraph (A), 
     the term `threshold amount' means--
       ``(i) $90,000 in the case of a joint return,
       ``(ii) $70,000 in the case of an individual who is not 
     married, and
       ``(iii) $45,000 in the case of a married individual filing 
     a separate return.
                                 ______
                                 

                         ENZI AMENDMENT NO. 591

  Mr. ROTH (for Mr. Enzi) proposed an amendment to the bill, S. 949, 
supra; as follows:

       On page 190, line 1, strike ``(III)'' and insert ``(IV)'' 
     and insert a new subparagraph (A)(ii)(III)--
       ``(VI) the upgrading and maintenance of intercity primary 
     and rural air service facilities, and the purchase of 
     intercity air service between primary and rural airports and 
     regional hubs; and ''.
                                 ______
                                 

                WELLSTONE (AND OTHERS) AMENDMENT NO. 592

  Mr. WELLSTONE (for himself, Mr. Domenici, Mr. Reid, and Mr. Conrad) 
proposed an amendment to the bill, S. 949, supra; as follows:

       At the appropriate place, insert:

     ``SEC. 2107A. MENTAL HEALTH PARITY.

       ``(a) Prohibition.--In the case of a health plan that 
     enrolls children through the use of assistance provided under 
     a grant program conducted under this title, such plan, if the 
     plan provides both medical and surgical benefits and mental 
     health benefits, shall not impose treatment limitations or 
     financial requirements on the coverage of mental health 
     benefits if similar limitations or requirements are not 
     imposed on medical and surgical benefits.
       ``(b) Rule of Construction.--Nothing in this section shall 
     be construed--
       ``(1) as prohibiting a health plan from requiring 
     preadmission screening prior to the authorization of services 
     covered under the plan or from applying other limitations 
     that restrict coverage for mental health services to those 
     services that are medically necessary; and
       ``(2) as requiring a health plan to provide any mental 
     health benefits.
       ``(c) Separate Application to Each Option Offered.--In the 
     case of a health plan that offers a child described in 
     subsection (a) 2 or more benefit package options under the 
     plan, the requirements of this section shall be applied 
     separately with respect to each such option.
       ``(d) Definitions.--In this section:
       ``(1) Medical or surgical benefits.--The term `medical or 
     surgical benefits' means benefits with respect to medical or 
     surgical services, as defined under the terms of the plan, 
     but does not include mental health benefits.
       ``(2) Mental health benefits.--The term `mental health 
     benefits' means benefits with respect to mental health 
     services, as defined under the terms of the plan, but does 
     not include benefits with respect to the treatment of 
     substance abuse and chemical dependency.

                          ____________________