[Congressional Record Volume 143, Number 133 (Tuesday, September 30, 1997)]
[Senate]
[Pages S10234-S10238]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                          AMENDMENTS SUBMITTED

                                 ______
                                 

           THE DISTRICT OF COLUMBIA APPROPRIATIONS ACT, 1998

                                 ______
                                 

                      JEFFORDS AMENDMENT NO. 1226

  Mr. JEFFORDS proposed an amendment to the bill (S. 1156) making 
appropriations for the government of the District of Columbia and other 
activities chargeable in whole or in part against the revenues of said 
District for the fiscal year ending September 30, 1998, and for other 
purposes; as follows:

       At the end of the bill, add the following:
 DIVISION 2--METROPOLITAN WASHINGTON EDUCATION AND WORKFORCE TRAINING 
                        IMPROVEMENT ACT OF 1997

     SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

       (a) Short Title.--This division may be cited as the 
     ``Metropolitan Washington Education and Workforce Training 
     Improvement Act of 1997''.
       (b) Table of Contents.--The table of contents of this 
     division is as follows:

Sec. 1. Short title and table of contents.
Sec. 2. Findings and purpose.

   TITLE I--METROPOLITAN WASHINGTON EDUCATION AND WORKFORCE TRAINING 
                                 GRANTS

Sec. 101. Definitions.
Sec. 102. Grants.
Sec. 103. Metropolitan Partnership.
Sec. 104. Metropolitan Board.

 TITLE II--METROPOLITAN WASHINGTON EDUCATION AND WORKFORCE TRAINING TAX

Sec. 201. Tax on income of nonresidents.
Sec. 202. Repeal of unincorporated business tax.
Sec. 203. Withholding and returns.
Sec. 204. Credit for State income tax payments.
Sec. 205. Technical amendment.
Sec. 206. Reciprocal tax collection.
Sec. 207. Metropolitan Washington Education and Workforce Training 
              Trust Fund.
Sec. 208. Effective date.

     SEC. 2. FINDINGS AND PURPOSE.

       (a) Findings.--The Congress finds that--
       (1) the Greater Washington Metropolitan Area has an 
     expanding regional economy but suffers from a serious 
     regional labor market shortage that threatens economic 
     growth;
       (2) the region's education and training systems, 
     particularly in the District of Columbia, fail to provide 
     many youths and adults with the skills necessary to be 
     competitive in the regional labor market;
       (3) the need for a better skilled area workforce makes it 
     imperative that the region's businesses, educational 
     institutions, and governments work together to provide youth 
     and adults with the education and training necessary to meet 
     the needs of the 21st century;
       (4) the condition of school facilities is a major 
     impediment to improving the quality of education in the 
     District of Columbia and their repair and modernization is a 
     necessary step in making the District's public schools a full 
     partner in preparing students for the regional labor market;
       (5) the University of the District of Columbia, as well as 
     other area institutions of post-secondary education, have an 
     important role to play in providing skills training to meet 
     the needs of the regional labor market;
       (6) although the present revenues for the District of 
     Columbia public school system provide sufficient operating 
     funds, as with other public school systems in the 
     metropolitan region, there are insufficient revenues for 
     programs to prepare students to compete in the global economy 
     and or to provide students with the skills demanded by the 
     local market: and
       (7) the Greater Washington Metropolitan Area has an 
     opportunity to set a national example of regional cooperation 
     in engaging in education reform and workforce training.
       (b) Purpose.--
       (1) In general.--It is the purpose of this division to 
     foster the development of a regional workforce investment 
     system that will bring about improvements in education and 
     workforce preparation by--
       (A) creating a metropolitan partnership through which area 
     businesses, school systems, postsecondary institutions, and 
     governments can cooperate in charting a course for reforms 
     and investments in education and workforce training; and
       (B) providing the Greater Washington Metropolitan Area with 
     the resources necessary to lead the Nation in improving its 
     capacity to provide for a highly educated and skilled 
     workforce.
       (2) Nonresident tax.--The purpose of imposing the tax 
     established by title II is to--
       (A) fund the repair and modernization of District of 
     Columbia public schools; and
       (B) provide resources to carry out the activities of a 
     Washington metropolitan partnership as described in title I.
   TITLE I--METROPOLITAN WASHINGTON EDUCATION AND WORKFORCE TRAINING 
                                 GRANTS

     SEC. 101. DEFINITIONS.

       In this title:
       (1) Elementary school; local educational agency; secondary 
     school.--The terms ``elementary school'', ``local educational 
     agency'', and ``secondary school'' have the meanings given 
     the terms in section 14101 of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 8801).
       (2) Metropolitan region.--The term ``metropolitan region'' 
     means the Washington, D.C. metropolitan area, as defined by 
     the Secretaries.
       (3) Postsecondary institution.--The term ``postsecondary 
     institution'' has the meaning given the term ``institution of 
     higher education'' in section 481 of the Higher Education Act 
     of 1965 (20 U.S.C. 1088).
       (4) Principal.--The term ``principal'' means an elementary 
     school or secondary school principal.
       (5) Secretaries.--The term ``Secretaries'' means the 
     Secretary of Education and the Secretary of Labor, acting 
     jointly.
       (6) Teacher.--The term ``teacher'' means an elementary 
     school or secondary school teacher.

     SEC. 102. GRANTS.

       (a) In General.--Using funds made available from the 
     Metropolitan Washington Education and Workforce Training 
     Trust Fund, established in section 208, the Secretaries shall 
     make grants to agencies and organizations to assist the 
     agencies and organizations in carrying out the education and 
     workforce training activities described in subsection (c) in 
     the metropolitan region.
       (b) Eligibility.--
       (1) In general.--To be eligible to receive a grant under 
     this section, an entity shall be a local educational agency, 
     or a public or private organization with demonstrated ability 
     and experience in carrying out the education and workforce 
     training activities.
       (2) Workforce training.--To be eligible to receive a grant 
     under this section to provide services described in 
     subsection (c)(5), an entity shall--
       (A) be an postsecondary institution, business, or another 
     provider of workforce training, such as literacy services, in 
     the metropolitan region; and
       (B) have demonstrated ability and experience in providing 
     workforce training.
       (c) Use of Funds.--An agency or organization that receives 
     a grant under subsection (a) shall use funds made available 
     through the grant to carry out activities in the metropolitan 
     region that consist of--
       (1) providing professional development activities, 
     including access to model professional development programs, 
     for teachers and principals;
       (2) developing apprenticeships and other programs that 
     provide business experience to teachers who are participating 
     in vocational training or technology training;
       (3) constructing, renovating, repairing, or improving 
     elementary schools, secondary schools, or other educational 
     facilities for workforce training programs;
       (4) developing partnerships between businesses, and 
     vocational education or vocational training providers, to 
     carry out student internship programs;
       (5) providing youth and adult workforce training with 
     remedial help such as literacy services;
       (6) establishing model benchmarks to be used in the 
     development of rigorous education and workforce training 
     curricula;

[[Page S10235]]

       (7) providing for both annual and long-term evaluation and 
     assessment of other education and workforce training 
     activities described in this subsection, including evaluation 
     and assessment of--
       (A) the degree to which expenditures of funds made 
     available through the grant result in improvements in the 
     activities;
       (B) the extent to which the activities succeed in preparing 
     participants for entry into postsecondary education, further 
     learning, or high-skill, high-wage careers;
       (C) the effect of benchmarks, performance measures, and 
     other measures of accountability on the delivery of the 
     activities; and
       (D) the extent to which vocational training enhances the 
     employment and earning potential of participants, reduces 
     income support costs, and increases the level of employment 
     in the metropolitan region;
       (8) assisting in the development of individual mentoring 
     and parental involvement programs and career path records for 
     elementary and secondary school students;
       (9) establishing--
       (A) voluntary skill standards for participants in workforce 
     training; and
       (B) a methodology to assess the participants and certify 
     attainment of the standards;
       (10) assessing the need for, and utilization of, 
     educational technology in the metropolitan region, including 
     assessment of the potential for linkages among--
       (A) elementary schools or secondary schools;
       (B) workforce training providers; and
       (C) businesses;
       (11) improving educational technology in elementary schools 
     or secondary schools; or
       (12) providing resources to extend a school year or school 
     day for any elementary school or secondary school that elects 
     to make such an extension.
       (d) Application.--To be eligible to receive a grant under 
     this section, an agency or organization shall submit an 
     application to the Secretaries at such time, in such manner, 
     and containing such information as the Secretaries may 
     require.
       (e) Distribution of Funds.--
       (1) In general.--In making grants under subsection (a), the 
     Secretaries shall, to the extent practicable, ensure that the 
     funds made available through the grants are equitably 
     distributed among the jurisdictions in the metropolitan 
     region.
       (2) Special rule for the district of columbia.--Any grants 
     awarded to District of Columbia public schools under this 
     section shall be expended in a manner consistent with section 
     2101(b)(1) of Public Law 104-134.
       (f) Maintenance of Effort.--
       (1) Definition.--As used in this subsection, the term 
     ``covered activities'' means education and workforce training 
     activities described in subsection (c) and carried out in the 
     District of Columbia.
       (2) In general.--Except as provided in paragraphs (3) and 
     (4), no payments shall be made under this title for any 
     fiscal year to an agency or organization for covered 
     activities, unless the Secretaries determine that the fiscal 
     effort per participant or the aggregate expenditures of the 
     agency or organization for the activities for the fiscal year 
     preceding the fiscal year for which the determination is 
     made, equaled or exceeded the effort or expenditures for the 
     activities for the second fiscal year preceding the fiscal 
     year for which the determination is made.
       (3) Computation.--In computing the fiscal effort or 
     aggregate expenditures pursuant to paragraph (2), the 
     Secretaries shall exclude capital expenditures, special one-
     time project costs, similar windfalls, and the cost of pilot 
     programs.
       (4) Decrease in federal support.--If the amount made 
     available for covered activities under this title for a 
     fiscal year is less than the amount made available for the 
     activities under this title the preceding fiscal year, then 
     the fiscal effort per participant or the aggregate 
     expenditures of the agency or organization required by 
     paragraph (2) for the preceding fiscal year shall be 
     decreased by the same percentage as the percentage decrease 
     in the amount so made available.
       (g) Technical Assistance for Skill Standards and 
     Methodology.--If the Secretaries make a grant to an agency or 
     organization under this section to establish the standards 
     and methodology described in subsection (c)(7), the National 
     Skill Standards Board established under section 503 of the 
     National Skill Standards Act of 1994 (29 U.S.C. 5933) shall 
     provide technical assistance to the agency or organization.

     SEC. 103. METROPOLITAN PARTNERSHIP.

       (a) Establishment.--There is established in the Department 
     of Labor and the Department of Education a Metropolitan 
     Washington Education and Workforce Training Partnership 
     (referred to in this title as the ``Metropolitan 
     Partnership''), under the joint control of the Secretary of 
     Labor and the Secretary of Education.
       (b) Administration.--Notwithstanding the Department of 
     Education Organization Act (20 U.S.C. 3401 et seq.), the 
     General Education Provisions Act (20 U.S.C. 1221 et seq.), 
     the Act entitled ``An Act To Create a Department of Labor'', 
     approved March 4, 1913 (29 U.S.C. 551 et seq.), and section 
     169 of the Job Training Partnership Act (29 U.S.C. 1579), the 
     Secretaries shall provide for, and exercise final authority 
     over, the effective and efficient administration of this 
     title and the officers and employees of the Metropolitan 
     Partnership.
       (c) Responsibilities of Secretaries.--The Secretaries, 
     working through the Metropolitan Partnership, shall approve 
     the applications, and make the grants, described in section 
     102.

     SEC. 104. METROPOLITAN BOARD.

       (a) Metropolitan Board.--
       (1) Composition.--There is established, in the Metropolitan 
     Partnership, a Metropolitan Washington Education and 
     Workforce Training Board (referred to in this title as the 
     ``Metropolitan Board'') that shall be composed of 13 
     individuals, including--
       (A) 7 individuals who are representative of business and 
     industry in the metropolitan region, appointed by the 
     President;
       (B) 3 individuals who are representative of providers of 
     secondary education, postsecondary education, and workforce 
     training in the metropolitan region, appointed by the 
     President; and
       (C) 3 individuals who are representative of local 
     government officers and employees in the metropolitan region, 
     including at least 1 representative of a local government in 
     Maryland, 1 representative of a local government in Virginia, 
     and 1 representative of the local government of the District 
     of Columbia, appointed by the President.
       (2) Terms.--Each member of the Metropolitan Board shall 
     serve for a term of 3 years, except that, as designated by 
     the President--
       (A) 5 of the members first appointed to the Metropolitan 
     Board shall serve for a term of 2 years;
       (B) 4 of the members first appointed to the Metropolitan 
     Board shall serve for a term of 3 years; and
       (C) 4 of the members first appointed to the Metropolitan 
     Board shall serve for a term of 4 years.
       (3) Vacancies.--Any vacancy in the Metropolitan Board shall 
     not affect the powers of the Metropolitan Board, but shall be 
     filled in the same manner as the original appointment. Any 
     member appointed to fill such a vacancy shall serve for the 
     remainder of the term for which the predecessor of such 
     member was appointed.
       (4) Duties and powers of the metropolitan board.--The 
     Metropolitan Board shall--
       (A) provide advice to the Secretary of Labor and the 
     Secretary of Education regarding reviewing and approving 
     applications, and making grants, described in section 102; 
     and
       (B) prepare and submit to the appropriate committees of 
     Congress an annual report on the activities of the 
     Metropolitan Partnership.
       (5) Chairperson.--The position of Chairperson of the 
     Metropolitan Board shall rotate annually among the appointed 
     members described in paragraph (1)(A).
       (6) Meetings.--The Metropolitan Board shall meet at the 
     call of the Chairperson but not less often than 4 times 
     during each calendar year. Seven members of the Metropolitan 
     Board shall constitute a quorum. All decisions of the 
     Metropolitan Board with respect to the exercise of the duties 
     and powers of the Metropolitan Board shall be made by a 
     majority vote of the members of the Metropolitan Board.
       (7) Compensation and travel expenses.--
       (A) Compensation.--Members of the Metropolitan Board shall 
     serve without compensation. Notwithstanding section 1342 of 
     title 31, United States Code, the Secretaries may accept the 
     voluntary and uncompensated services of members of the 
     Metropolitan Board.
       (B) Expenses.--The members of the Metropolitan Board shall 
     be allowed travel expenses, including per diem in lieu of 
     subsistence, at rates authorized for employees of agencies 
     under subchapter I of chapter 57 of title 5, United States 
     Code, while away from their homes or regular places of 
     business in the performance of services for the Metropolitan 
     Board.
       (8) Date of appointment.--The Metropolitan Board shall be 
     appointed not later than 120 days after the date of enactment 
     of this Act.
       (9) Nontermination of board.--Section 14 of the Federal 
     Advisory Committee Act shall not apply to the Metropolitan 
     Board.
       (b) Director.--
       (1) In general.--There shall be in the Metropolitan 
     Partnership a Director, who shall be appointed by the 
     President, by and with the advice and consent of the Senate.
       (2) Compensation.--The Director shall be compensated at the 
     rate provided for level IV of the Executive Schedule under 
     section 5315 of title 5, United States Code.
       (3) Duties.--The Director shall carry out the 
     administrative duties of the Metropolitan Partnership.
       (4) Date of appointment.--The Director shall be appointed 
     not later than 120 days after the date of enactment of this 
     Act.
       (c) Personnel.--
       (1) Appointments.--The Director may appoint and fix the 
     compensation of 2 employees to carry out the functions of the 
     Metropolitan Partnership. Except as otherwise provided by 
     law, such employees shall be appointed in accordance with the 
     civil service laws and their compensation fixed in accordance 
     with title 5, United States Code.
       (2) Experts and consultants.--The Director may obtain the 
     services of experts and consultants in accordance with 
     section 3109 of title 5, United States Code, and compensate 
     such experts and consultants for each day (including travel 
     time) at rates not in excess of the rate of pay for level IV 
     of the Executive Schedule under section 5315 of such title. 
     The Director may pay experts and consultants who are serving 
     away from their homes or regular places of business travel

[[Page S10236]]

     expenses and per diem in lieu of subsistence at rates 
     authorized by sections 5702 and 5703 of such title for 
     persons in Government service employed intermittently.
       (3) Detail of government employees.--Any Federal Government 
     employee may be detailed to the Metropolitan Partnership 
     without reimbursement, and such detail shall be without 
     interruption or loss of civil service or privilege.
       (4) Use of voluntary and uncompensated services.--
     Notwithstanding section 1342 of title 31, United States Code, 
     the Secretary of Labor and the Secretary of Education are 
     authorized to accept voluntary and uncompensated services in 
     furtherance of the objectives of this title.
       (5) Monetary contributions.--Notwithstanding any other 
     provision of law, the Metropolitan Partnership may accept 
     monetary contributions to defray expenses.
 TITLE II--METROPOLITAN WASHINGTON EDUCATION AND WORKFORCE TRAINING TAX

     SEC. 201. TAX ON INCOME OF NONRESIDENTS.

       (a) Definition.--
       (1) In general.--Title III of the District of Columbia 
     Income and Franchise Tax Act of 1947 (D.C. Code, secs. 47-
     1803.1--47-1803.2) is amended by adding at the end thereof 
     the following new section:
       ``Sec. 4. Gross Income and Exclusion Therefrom in the Case 
     of Nonresidents.--(a) In the case of nonresidents, the words 
     `gross income' shall include--
       ``(1) gains, profits, and income derived from salaries, 
     wages, or compensation for personal services performed within 
     the District of whatever kind and in whatever form paid, 
     including salaries, wages, and compensation paid by the 
     United States to its officers and employees, or income 
     derived from any trade or business carried on within the 
     District within the meaning of title X of this article or 
     sales or dealings in property located within the District, 
     whether real or personal, including capital assets as defined 
     in this article, growing out of the ownership, or sale of, or 
     interest in, such property; and
       ``(2) income derived from rent, on such property located 
     within the District, or transactions of any trade or business 
     carried on within the District within the meaning of title X 
     of this article for gain or profit, or gains or profits.
       ``(b) In the case of nonresidents, the words `gross income' 
     shall not include any of the income described in subsection 
     (b) of section 2 of this title.''.
       (2) Conforming amendment.--Section 2 of such title III 
     (D.C. Code, sec. 47-1803.2) is amended by striking out ``.--
     (a) The'' and inserting in lieu thereof ``in the Case of 
     Residents.--(a) In the case of residents, the''.
       (b) Income Tax on Nonresidents.--
       (1) In general.--The District of Columbia Income and 
     Franchise Tax Act of 1947 (D.C. Code, secs. 47-1801.1--47-
     1816.3) is amended by adding at the end thereof the following 
     new title:

                ``Title XVII--Income Tax on Nonresidents

       ``Sec. 1. Income Tax on Nonresidents.--(a) For each taxable 
     year, there is imposed on the taxable income of each 
     nonresident an income tax determined at a rate equal to one-
     third of the rate applicable in the case of a resident under 
     title VI of this article.
       ``(b) In computing the net income of a nonresident for 
     purposes of this title, such nonresident shall be allowed a 
     deduction equal to that portion of the deductions which would 
     be allowed under any paragraph of section 3(a) of title III 
     of this article to the nonresident if such nonresident were a 
     resident which bears the same ratio to the sum of such 
     deductions as the income of such nonresident subject to tax 
     under this title bears to the gross income of such 
     nonresident from all sources.
       ``(c) In computing taxable income for purposes of this 
     title, there shall be allowed to nonresidents as credits 
     against net income the personal exemptions allowed to 
     residents under section 2 of title VI.
       ``Sec. 2. Limitation on Authority of the Council To Revise 
     Tax on Nonresidents.--The Council of the District of Columbia 
     may not--
       ``(1) amend or otherwise revise this title so as to impose 
     any additional or greater tax on the whole or any portion of 
     the personal income of any nonresident unless at the same 
     time it also amends or revises title VI of this article so as 
     to impose the same proportion of additional or greater tax on 
     the whole or portion of the personal income of any resident 
     as was imposed on the whole or portion of the personal income 
     of a nonresident; or
       ``(2) provide any deductions or personal exemptions to 
     residents which are not also available, in accordance with 
     section 1 of this title, in the case of nonresidents.
       ``Sec. 3. Disposition of Revenues.--The District of 
     Columbia shall allocate the revenues received under this 
     title as follows:
       ``(1) One-third of the revenues shall be transferred to the 
     District of Columbia Financial Responsibility and Management 
     Assistance Authority for the purpose of funding the repair 
     and modernization of public schools in the District of 
     Columbia.
       ``(2) Two-thirds of the revenues shall be transferred to 
     the Metropolitan Washington Education and Workforce Training 
     Trust Fund established by section 208 of the Metropolitan 
     Washington Education and Workforce Training Improvement Act 
     of 1997.''.
       (2) Phase-in of tax.--The income tax imposed by title XVII 
     of the District of Columbia Income and Franchise Tax Act of 
     1947 (as added by paragraph (1) of this subsection) shall be 
     phased in as follows:
       (A) In the calendar year beginning after the date of 
     enactment of this Act, the rate shall be \1/2\ of the rate 
     imposed and revenues received shall be expended as provided 
     in section 3(1) of title XVII.
       (B) In the calendar year beginning after the calendar year 
     referred to in subparagraph (A), the rate shall be the full 
     rate imposed and revenues received shall be expended \1/3\ as 
     provided in section 3(1) and \2/3\ as provided in section 
     3(2) of title XVII.
       (3) Existing tax on nonresidents.--Title VI of such Act is 
     amended--
       (A) in the title heading, by striking out ``and 
     Nonresidents''; and
       (B) in section 1 (D.C. Code, sec. 47-1806.1)--
       (i) by striking out ``every resident'' and inserting in 
     lieu thereof ``an individual'', and
       (ii) by inserting ``in the case of residents and by section 
     1(c) of title XVII in the case of nonresidents'' immediately 
     after ``this title''.

     SEC. 202. REPEAL OF UNINCORPORATED BUSINESS TAX.

       (a) In General.--Title VIII of the District of Columbia 
     Income and Franchise Tax Act of 1947 (D.C. Code, secs. 47-
     1808.1--47-1808.7) is amended--
       (1) in the title heading, by striking out ``Tax on'' and 
     inserting in lieu thereof ``Net Income of''; and
       (2) by repealing sections 2 through 6 and inserting in lieu 
     thereof the following:
       ``Sec. 2. Net Income of Unincorporated Businesses.--(a) An 
     unincorporated business as such shall not be subject to tax 
     under this article. Individuals carrying on a trade or 
     business as an unincorporated business shall be liable in 
     their individual capacity, under title VI of this article in 
     the case of residents and under title XVII of this article in 
     the case of nonresidents, for tax with respect to their 
     distributive share, whether distributed or not, of the net 
     income of such unincorporated business derived from sources 
     within the District within the meaning of title X of this 
     article. If an individual entitled to a distributive share of 
     such net income of an unincorporated business computes his 
     income tax under this article upon the basis of a period 
     different from that upon the basis of which the net income of 
     the unincorporated business is computed, then his 
     distributive share of the net income of the unincorporated 
     business for any accounting period of the unincorporated 
     business ending within the taxable year upon the basis of 
     which such individual's income tax is computed shall be 
     included in computing such tax.
       ``(b) If the deductions which are allowed or allowable to 
     an unincorporated business under section 3(a) of title III of 
     this article exceed the gross income of such unincorporated 
     business derived from sources within the District within the 
     meaning of title X of this article, the distributive shares 
     of such excess deductions shall be allowed as deductions to 
     the individuals entitled thereto in determining their 
     individual tax liability under title VI of this article in 
     the case of residents and under title XVII of this article in 
     the case of nonresidents, except that in the case of a 
     nonresident such excess deductions shall be allowed to the 
     nonresident only to the extent provided in section 1(b) of 
     such title XVII. If an individual entitled to a distributive 
     share of the excess deductions of an unincorporated business 
     computes his income tax under this article upon the basis of 
     a period different from that upon the basis of which the net 
     income of the unincorporated business is computed, then his 
     distributive share of the excess deductions of the 
     unincorporated business for any accounting period of the 
     unincorporated business ending within the taxable year upon 
     the basis of which such individual's income tax is computed 
     shall be included in computing such tax.
       ``(c) In computing the net income or the excess deductions 
     of an unincorporated business for purposes of this title, the 
     full amount of the deductions described in section 3(a) of 
     title III of this article shall be allowed to such 
     unincorporated business notwithstanding that a nonresident 
     may be entitled to a distributive share of such net income or 
     excess deductions.''.
       (b) Conforming Amendments.--
       (1)(A) Section 1 of title III of such Act (D.C. Code, sec. 
     47-1803.1) is amended by inserting ``or unincorporated 
     business, as the case may be,'' immediately after 
     ``taxpayer''.
       (B) Paragraph (11) of section 3(a) of such title (D.C. 
     Code, sec. 47-1803.3(a)(11)) is amended to read as follows:
       ``(11) Reasonable allowance for salary.--A reasonable 
     allowance for salaries or other compensation for personal 
     services actually rendered. Nothing in this paragraph shall 
     be construed to exempt any salary or other compensation for 
     personal services from taxation as part of the taxable income 
     of the person receiving such salary or other compensation.''.
       (C) Such section 3(a) (D.C. Code, sec. 47-1803.3(a)) is 
     further amended by adding at the end thereof the following 
     new paragraph:
       ``(15) Excess deductions of an unincorporated business.--In 
     the case of an individual, the distributive share of any 
     excess deductions for an unincorporated business to which the 
     individual is entitled under section 2(b) of title VIII of 
     this article.''.
       (D) Paragraph (5) of section 3(b) of such title (D.C. Code, 
     sec. 47-1803.3(b)(5)) is repealed.
       (2)(A) Paragraph (f) of such section (D.C. Code, sec. 47-
     1805.2(6)) is amended--

[[Page S10237]]

       (i) in the first sentence, by striking out ``having a gross 
     income of more than $12,000, regardless of whether or not it 
     has a net income''; and
       (ii) in the second sentence, by striking out ``the taxpayer 
     or taxpayers liable for payment of the tax'' and inserting in 
     lieu thereof ``the individual or individuals who would be 
     entitled to share in the net income of the unincorporated 
     business, if distributed, and shall include the name and 
     address of each such individual and the amount of the 
     distributive share of each such individual in the net income 
     of the unincorporated business or, if the allowable 
     deductions of the unincorporated business exceed its gross 
     income, the allocation among such individuals of such excess 
     allowable deductions''.
       (B) Paragraph (g) of such section (D.C. Code, sec. 47-
     1805.2(7)) is amended by striking out ``other than 
     partnerships subject to the taxes imposed by title VIII of 
     this article on unincorporated businesses, engaged in any 
     trade or business, or'' and inserting in lieu thereof ``not 
     required to file a return under paragraph (f), which is''.
       (3) Section 1 of title VI of such Act (D.C. Code, sec. 47-
     1806.1) is amended by striking out ``and that portion of the 
     entire net income of every nonresident which is subject to 
     tax under title VIII of this article''.
       (4) Section 1 of title X of such Act (D.C. Code, sec. 47-
     1810.1) is amended by striking ``and (2) a franchise tax upon 
     every corporation and unincorporated business'' and inserting 
     ``(2) an income tax on certain income of nonresidents which 
     is derived from sources within the District, and (3) a 
     franchise tax upon every corporation''.
       (5)(A) Section 8(a) of title XII of such Act (D.C. Code, 
     sec. 47-1812.8(a)) is amended by striking out ``or 
     unincorporated business'' each place it appears.
       (B) Section 14 of such title (D.C. Code, sec. 47-1812.14-1) 
     is amended--
       (i) in the section caption, by striking out ``and 
     Unincorporated Businesses'';
       (ii) in the first sentence of subsection (a), by striking 
     out ``and unincorporated business''; and
       (iii) in subsection (b)--
       (I) in the subsection caption, by striking out ``or 
     Unincorporated Business'', and
       (II) in paragraph (1), by striking out ``or an 
     unincorporated business''.
       (6) The first sentence of section 1(a) of title XIV of such 
     Act (D.C. Code, sec. 47-1814.1(a)) is amended by striking out 
     ``which is excluded from the imposition of the District of 
     Columbia tax on unincorporated businesses under the 
     definition set forth in section 1 of title VIII of this 
     article''.

     SEC. 203. WITHHOLDING AND RETURNS.

       (a) Withholding.--
       (1) Section 8(b)(1) of title XII of the District of 
     Columbia Income and Franchise Tax Act of 1947 (D.C. Code, 
     sec. 47-1812.8(b)(1)) is amended by inserting before the 
     first sentence the following: ``Every employer making payment 
     of wages to a nonresident shall deduct and withhold a tax 
     upon such wages in accordance with regulations which the 
     Council of the District of Columbia shall promulgate.''.
       (2) Section 8(i)(1) of such title (D.C. Code, sec. 47-
     1812.8(i)(1)) is amended to read as follows:
       ``(1)(A) Every person residing or domiciled in the District 
     at the times prescribed in paragraph (4) of this subsection 
     shall, at such times, make a declaration of his estimated tax 
     for the taxable year if--
       ``(i) the gross income for the taxable year can reasonably 
     be expected to consist of wages and of not more than $1,000 
     from sources other than such wages, and can reasonably be 
     expected to exceed the total amount of the personal 
     exemptions to which he is entitled under this article plus 
     $5,000; or
       ``(ii) the gross income can reasonably be expected to 
     include more than $1,000 which is not subject to the 
     withholding provisions of this article, and can reasonably be 
     expected to exceed the personal exemptions to which he is 
     entitled under this article, plus $500.
       ``(B) Every person not residing or domiciled in the 
     District at the times prescribed in paragraph (4) of this 
     subsection shall, at such times, make a declaration of his 
     estimated tax for the taxable year if such person can 
     reasonably be expected to have more than $4,500 in taxable 
     income, as determined under section 1 of title XVII of this 
     article, for the taxable year which is not subject to 
     withholding under the regulations promulgated by the Council 
     of the District of Columbia pursuant to the first sentence of 
     subsection (b).
       ``(C) Under this article, a declaration of estimated tax 
     shall be considered a return of income.''.
       (b) Federal Withholding.--Section 5516(a) of title 5, 
     United States Code, is amended to read as follows:
       ``(a)(1) The Secretary of the Treasury, under regulations 
     prescribed by the President, shall enter into an agreement 
     with the District of Columbia Financial Responsibility and 
     Management Assistance Authority, which agreement shall 
     provide that the head of each agency of the United States 
     shall comply with the requirements of the District of 
     Columbia Income and Franchise Tax Act of 1947 in the case of 
     employees of the agency who are subject to income taxes 
     imposed by such Act and whose regular place of employment is 
     within the District of Columbia. The agreement may not apply 
     to pay for service as a member of the Armed Forces.
       ``(2) For purposes of this section--
       ``(A) the term `agency' means--
       ``(i) any executive agency, including any independent 
     establishment or wholly owned instrumentality of the Federal 
     Government;
       ``(ii) the Administrative Office of the United States 
     Courts;
       ``(iii) the General Accounting Office;
       ``(iv) the Library of Congress;
       ``(v) the Botanic Garden;
       ``(vi) the Government Printing Office; and
       ``(vii) the Office of the Architect of the Capitol; and
       ``(B) the term `employee' means any employee and any 
     officer of the United States and includes the President and 
     Vice President and any justice or judge of the United 
     States.''.

     SEC. 204. CREDIT FOR STATE INCOME TAX PAYMENTS.

       Section 5(a) of title VI of the District of Columbia Income 
     and Franchise Tax Act of 1947 (D.C. Code, sec. 47-1806.4(a)), 
     as amended by section 3(b)(3)(B) of this Act, is further 
     amended--
       (1) by inserting ``(1)'' immediately before ``The'' in the 
     first sentence; and
       (2) by adding at the end thereof the following new 
     paragraph:
       ``(2) If any income of a resident which is subject to 
     taxation under this title is also subject to an income tax 
     under the laws of another State, the income tax payable on 
     such income to such other State shall be allowed as a credit 
     to the resident against the tax imposed by this title, except 
     that (A) the credit allowed under this paragraph may not 
     exceed the amount of tax which would be payable under this 
     title on such income, and (B) no credit shall be allowed 
     under this paragraph if the other State allows a credit 
     against the income tax imposed by such State for the tax paid 
     under this title. Proof of payment of income tax to another 
     State shall be required before credit for such tax is allowed 
     under this paragraph.''.

     SEC. 205. TECHNICAL AMENDMENT.

       The table of contents for the District of Columbia Revenue 
     Act of 1947 (article I of which constitutes the District of 
     Columbia Income and Franchise Tax Act of 1947) is amended as 
     follows:
       (1)(A) In the item relating to section 2 of title III of 
     article I, insert ``in the case of residents'' immediately 
     before the period.
       (B) Immediately after the item relating to section 3(b) of 
     such title, insert the following:

``Sec. 4. Gross income and exclusion therefrom in the case of 
              nonresidents.''.

       (2) In the item relating to the title heading for title VI 
     of article I, striking out ``And Nonresidents''.
       (3)(A) In the item relating to the title heading for title 
     VIII of article I, strike out ``Tax on'' and insert in lieu 
     thereof ``Net Income of''.
       (B) Strike out the items relating to sections 2 through 6 
     of such title VIII and insert in lieu thereof the following:

``Sec. 2. Net income of unincorporated businesses.''.

       (4)(A) In the item relating to subsection 14 of title XII 
     of article I, strike out ``and unincorporated businesses''.
       (B) In the item relating to subsection (b) of such section, 
     strike out ``or unincorporated business''.
       (5) Immediately after the item relating to title XVI of 
     article I, insert the following new item:

                ``TITLE XVII--INCOME TAX ON NONRESIDENTS

``Sec. 1. Income tax on nonresidents.
``Sec. 2. Limitation on authority of the Council to revise tax on 
              nonresidents.''.

     SEC. 206. RECIPROCAL TAX COLLECTION.

       (a) In General.--Any State, territory, or possession, by 
     and through its lawfully authorized officials, shall have the 
     right to sue in the Superior Court of the District of 
     Columbia to recover any tax lawfully due and owing to it when 
     the reciprocal right is accorded to the District by such 
     State, territory, or possession, whether such right is 
     granted by statutory authority or as a matter of comity.
       (b) Proof.--The certificate of the Secretary of State or 
     other authorized official of any State, territory, or 
     possession, or subdivision thereof, to the effect that the 
     official instituting the suit for collection of taxes in the 
     Superior Court of the District of Columbia has the authority 
     to institute such suit and collect such taxes shall be 
     conclusive proof of that authority.
       (c) Definition.--For the purposes of this section, the term 
     ``taxes'' includes--
       (1) any and all tax assessments lawfully made, whether they 
     be based upon a return or other disclosure of the taxpayer, 
     or upon the information and belief of the taxing authority, 
     or otherwise;
       (2) any and all penalties lawfully imposed pursuant to a 
     taxing statute, ordinance, or regulation; and
       (3) interest charges lawfully added to the tax liability 
     which constitutes the subject of the suit.
       (d) Authorization of Suit.--The Corporation Council or any 
     of his assistants is authorized to bring suit in the name of 
     the District of Columbia in the courts of States, 
     territories, and possessions, and subdivisions thereof, to 
     collect taxes lawfully due the District. The District of 
     Columbia Financial Responsibility and Management Assistance 
     Authority is authorized to procure professional and other 
     services, at such rates as may be usual and customary for 
     such services in the

[[Page S10238]]

     jurisdiction concerned, when he deems it necessary for the 
     prosecution of any suit authorized by this section.

     SEC. 207. METROPOLITAN WASHINGTON EDUCATION AND WORKFORCE 
                   TRAINING TRUST FUND.

       (a) Establishment.--There is established in the Treasury of 
     the United States a trust fund, to be known as the 
     Metropolitan Washington Education and Workforce Training 
     Trust Fund (hereafter in this section referred to as the 
     ``Trust Fund''), consisting of such amounts as are 
     transferred to the Trust Fund under subsection (b)(1) of this 
     section and any interest earned on investment of amounts in 
     the Trust Fund under subsection (c)(2) of this section.
       (b) Transfer of Amounts Equivalent to Certain Tariffs.--
       (1) In general.--The District of Columbia Financial 
     Responsibility and Management Assistance Authority shall 
     transfer to the Trust Fund an amount equal to \2/3\ of the 
     revenues received by the District of Columbia from the tax 
     imposed by title XVII of the District of Columbia Income and 
     Franchise Tax Act of 1947 (as added by section 201 of this 
     division).
       (2) Effective date.--The transfers required by paragraph 
     (1) shall begin at the end of the first quarter of the 
     calendar year beginning after the calendar year referred to 
     in section 201(b)(2)(A).
       (3) Transfers based on estimates.--The amounts required to 
     be transferred to the Trust Fund under paragraph (1) shall be 
     transferred at least quarterly from the District of Columbia 
     to the Trust Fund on the basis of estimates made by the 
     District of Columbia Financial Responsibility and Management 
     Assistance Authority. Proper adjustment shall be made in 
     amounts subsequently transferred to the extent prior 
     estimates were in excess of or less than the amounts required 
     to be transferred.
       (c) Investment of Trust Fund.--
       (1) In general.--It shall be the duty of the Secretary of 
     the Treasury to invest such portion of the Trust Fund 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 or in obligations 
     guaranteed as to both principal and interest by 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.

     The purposes for which obligations of the United States may 
     be issued under chapter 31 of title 31, of the United States 
     Code, are hereby extended to authorize the issuance at par of 
     special obligations exclusively to the Trust Fund. Such 
     special obligations shall bear interest at a rate equal to 
     the average rate of interest, computed as to the end of the 
     calendar month next preceding the date of such issue, borne 
     by all marketable interest-bearing obligations of the United 
     States then forming a part of the Public Debt; except that 
     where such average rate is not a multiple of one-eighth of 1 
     percent, the rate of interest of such special obligations 
     shall be the multiple of one-eighth of 1 percent next lower 
     than such average rate. Such special obligations shall be 
     issued only if the Secretary of the Treasury determines that 
     the purchase of other interest-bearing obligations of the 
     United States, or of obligations guaranteed as to both 
     principal and interest by the United States on original issue 
     or at the market price, is not in the public interest.
       (2) Sale of obligation.--Any obligation acquired by the 
     Trust Fund (except special obligations issued exclusively to 
     the Trust Fund) may be sold by the Secretary of the Treasury 
     at the market price, and such special obligations may be 
     redeemed at par plus accrued interest.
       (3) Credits to trust fund.--The interest on, and the 
     proceeds from the sale or redemption of, any obligations held 
     in the Trust Fund shall be credited to and form a part of the 
     Trust Fund.
       (d) Obligations From Trust Fund.--The Secretary of Labor 
     and the Secretary of Education are authorized to obligate 
     such sums as are available in the Trust Fund (including any 
     amounts not obligated in previous fiscal years) for grants as 
     provided in section 101 of this division.
       (e) Report to Congress.--It shall be the duty of the 
     Secretary of the Treasury to hold the Trust Fund, and (after 
     consultation with the Secretary of Labor or the regional 
     authority, as appropriate) to report to the Congress each 
     year on the financial condition and the results of the 
     operations of the Trust Fund during the preceding fiscal year 
     and on its expected condition and operations during the next 
     fiscal year. Such report shall be printed as both a House and 
     Senate document of the session of the Congress to which the 
     report is made.

     SEC. 208. EFFECTIVE DATE.

       The amendments made by this title and this title shall take 
     effect at the beginning of the calendar year beginning after 
     the date of enactment of this Act, and shall apply with 
     respect to taxable years beginning on or after such date.
                                 ______
                                 

                     BYRD AMENDMENTS NOS. 1267-1269

  Mr. BYRD proposed three amendments to the bill, S. 1156, supra; as 
follows:

                           Amendment No. 1267

       At the appropriate place, insert the following:
       Sec.   . (a) Chapter 29 of title 12A of the District of 
     Columbia Municipal Regulations (D.C. Building Code Supplement 
     of 1992; 39 DCR 8833) is amended by adding the following 2 
     new sections 2915 and 2916 to read as follows:
       ``Section 2915.0 Alcoholic Beverage Advertisements.
       ``2915.1 Notwithstanding any other law or regulation, no 
     person may place any sign, poster, placard, device, graphic 
     display, or any other form of alcoholic beverage 
     advertisements in publicly visible locations. For the 
     purposes of this section `publicly visible location' includes 
     outdoor billboards, sides of buildings, and freestanding 
     signboards.
       ``2915.2 This section shall not apply to the placement of 
     signs, including advertisements, inside any licensed premises 
     used by a holder of a licensed premises, on commercial 
     vehicles used for transporting alcoholic beverages, or in 
     conjunction with a one-day alcoholic beverage license or a 
     temporary license.
       ``2915.3 This section shall not apply to any sign that 
     contains the name or slogan of the licensed premises that has 
     been placed for the purpose of identifying the licensed 
     premises.
       `'2915.4 This section shall not apply to any sign that 
     contains a generic description of beer, wine, liquor, or 
     spirits, or any other generic description of alcoholic 
     beverages.
       ``2915.5 This section shall not apply to any neon or 
     electrically charged sign on a licensed premises that is 
     provided as part of a promotion of a particular brand of 
     alcoholic beverages.
       ``2915.6 This section shall not apply to any sign on a 
     WMATA public transit vehicle or a taxicab.
       ``2915.7 This section shall not apply to any sign on 
     property owned, leased, or operated by the Armory Board.
       ``2915.8 This section shall not apply to any sign on 
     property adjacent to an interstate highway.
       ``2915.9 This section shall not apply to any sign located 
     in a commercial or industrial zone.
       ``2915.10 Any person who violates any provision of this 
     section shall be fined $500. Every person shall be deemed 
     guilty of a separate offense for every day that violation 
     continues.''.
       (b) The amendment made by subsection (a) shall take effect 
     180 days after the date of enactment of this Act.
                                                                    ____


                           Amendment No. 1268

       On page 49, between lines 13 and 14, insert the following:
       Sec. 148. There are appropriated from applicable funds of 
     the District of Columbia such sums as may be necessary to 
     hire 12 additional inspectors for the Alcoholic Beverage 
     Control Board. Of the additional inspectors, 6 shall focus 
     their responsibilities on the enforcement of laws relating to 
     the sale of alcohol to minors.
                                                                    ____


                           Amendment No. 1269

       At the appropriate place, insert the following:
       Sec.   . (a) Not later than 6 months after the date of 
     enactment of this Act, the General Accounting Office shall 
     conduct and submit to Congress a study of--
       (1) the District of Columbia's alcoholic beverage tax 
     structure and its relation to surrounding jurisdictions;
       (2) the effects of the District of Columbia's lower excise 
     taxes on alcoholic beverages on consumption of alcoholic 
     beverages in the District of Columbia;
       (3) ways in which the District of Columbia's tax structure 
     can be revised to bring it into conformity with the higher 
     levels in surrounding jurisdictions; and
       (4) ways in which those increased revenues can be used to 
     lower consumption and promote abstention from alcohol among 
     young people.
       (b) The study should consider whether--
       (1) alcohol is being sold in proximity to schools and other 
     areas where children are likely to be; and
       (2) creation of alcohol free zones in areas frequented by 
     children would be useful in deterring underage alcohol 
     consumption.

                          ____________________