[Congressional Record Volume 144, Number 21 (Thursday, March 5, 1998)]
[Senate]
[Pages S1463-S1476]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                          AMENDMENTS SUBMITTED

                                 ______
                                 

      THE INTERMODAL SURFACE TRANSPORTATION EFFICIENCY ACT OF 1998

                                 ______
                                 

                 BINGAMAN (AND BYRD) AMENDMENT NO. 1696

  Mr. BINGAMAN (for himself and Mr. Byrd) proposed an amendment to 
amendment No. 1676 proposed by Mr. Chafee to the bill (S. 1173) to 
authorize funds for construction of highways, for highway safety 
programs, and for mass transit programs, and for other purposes; as 
follows:

       On page 236, between lines 16 and 17, insert the following:

     SEC. 14____. BAN ON SALE OF ALCOHOL THROUGH DRIVE-UP OR 
                   DRIVE-THROUGH SALES WINDOWS.

       (a) In General.--Chapter 1 of title 23, United States Code, 
     is amended by inserting after section 153 the following:

     ``Sec. 154. Ban on sale of alcohol through drive-up or drive-
       through sales windows

       ``(a) Withholding of Apportionments for Noncompliance.--
       ``(1) Fiscal year 2000.--The Secretary shall withhold 5 
     percent of the amount required to be apportioned to any State 
     under each of paragraphs (1)(A), (1)(C), and (3) of section 
     104(b) on October 1, 2000, if the State does not meet the 
     requirements of paragraph (3) on that date.
       ``(2) Subsequent fiscal years.--The Secretary shall 
     withhold 10 percent (including any amounts withheld under 
     paragraph (1)) of the amount required to be apportioned to 
     any State under each of paragraphs (1)(A), (1)(C), and (3) of 
     section 104(b) on October 1, 2001, and on October 1 of each 
     fiscal year thereafter, if the State does not meet the 
     requirements of paragraph (3) on that date.
       ``(3) Requirements.--A State meets the requirements of this 
     paragraph if the State has enacted and is enforcing a law 
     (including a regulation) that bans the sale of alcohol 
     through a drive-up or drive-through sales window.
       ``(b) Period of Availability; Effect of Compliance and 
     Noncompliance.--
       ``(1) Period of availability of withheld funds.--
       ``(A) Funds withheld on or before september 30, 2002.--Any 
     funds withheld under subsection (a) from apportionment to any 
     State on or before September 30, 2002, shall remain available 
     until the end of the third fiscal year following the fiscal 
     year for which the funds are authorized to be appropriated.
       ``(B) Funds withheld after september 30, 2002.--No funds 
     withheld under this section from apportionment to any State 
     after September 30, 2002, shall be available for 
     apportionment to the State.
       ``(2) Apportionment of withheld funds after compliance.--
     If, before the last day of the period for which funds 
     withheld under subsection (a) from apportionment are to 
     remain available for apportionment to a State under paragraph 
     (1)(A), the State meets the requirements of subsection 
     (a)(3), the Secretary shall, on the first day on which the 
     State meets the requirements, apportion to the State the 
     funds withheld under subsection (a) that remain available for 
     apportionment to the State.
       ``(3) Period of availability of subsequently apportioned 
     funds.--
       ``(A) In general.--Any funds apportioned under paragraph 
     (2) shall remain available for expenditure until the end of 
     the third fiscal year following the fiscal year in which the 
     funds are so apportioned.
       ``(B) Treatment of certain funds.--Sums not obligated at 
     the end of the period referred to in subparagraph (A) shall 
     lapse.
       ``(4) Effect of noncompliance.--If, at the end of the 
     period for which funds withheld under subsection (a) from 
     apportionment are available for apportionment to a State 
     under paragraph (1), the State does not meet the requirements 
     of subsection (a)(3), the funds shall lapse.''.
       (b) Conforming Amendment.--The analysis for chapter 1 of 
     title 23, United States Code,

[[Page S1464]]

     is amended by inserting after the item relating to section 
     153 the following:

``154. Ban on sale of alcohol through drive-up or drive-through sales 
              windows.''.
                                 ______
                                 

                 DORGAN (AND OTHERS) AMENDMENT NO. 1697

  Mr. DORGAN (for himself, Mr. Lautenberg, Mr. Bumbers, Mr. Conrad, Mr. 
Wellstone, Mr. Glenn, Mr. Bingaman, Mr. Inouye, Mr. Torricelli, and Mr. 
Reid) proposed an amendment to amendment No. 1676 proposed by Mr. 
Chafee to the bill, S. 1173, supra; as follows:

       At the end of subtitle D of title I, add the following:

     SEC. 14____. OPEN CONTAINER LAWS.

       (a) Establishment.--Chapter 1 of title 23, United States 
     Code, is amended by inserting after section 153 the 
     following:

     ``Sec. 154. Open container requirements

       ``(a) Definitions.--In this section:
       ``(1) Alcoholic beverage.--The term `alcoholic beverage' 
     has the meaning given the term in section 158(c).
       ``(2) Motor vehicle.--The term `motor vehicle' means a 
     vehicle driven or drawn by mechanical power and manufactured 
     primarily for use on public highways, but does not include a 
     vehicle operated exclusively on a rail or rails.
       ``(3) Open alcoholic beverage container.--The term `open 
     alcoholic beverage container' has the meaning given the term 
     in section 410(i).
       ``(4) Passenger area.--The term `passenger area' shall have 
     the meaning given the term by the Secretary by regulation.
       ``(b) Withholding of Apportionments for Noncompliance.--
       ``(1) Fiscal year 2002.--The Secretary shall withhold 5 
     percent of the amount required to be apportioned to any State 
     under each of paragraphs (1)(A), (1)(C), and (3) of section 
     104(b) on October 1, 2001, if the State does not have in 
     effect a law described in paragraph (3) on that date.
       ``(2) Subsequent fiscal years.--The Secretary shall 
     withhold 10 percent (including any amounts withheld under 
     paragraph (1)) of the amount required to be apportioned to 
     any State under each of paragraphs (1)(A), (1)(C), and (3) of 
     section 104(b) on October 1, 2002, and on October 1 of each 
     fiscal year thereafter, if the State does not have in effect 
     a law described in paragraph (3) on that date.
       ``(3) Open container laws.--
       ``(A) In general.--For the purposes of this section, each 
     State shall have in effect a law that prohibits the 
     possession of any open alcoholic beverage container, or the 
     consumption of any alcoholic beverage, in the passenger area 
     of any motor vehicle (including possession or consumption by 
     the driver of the vehicle) located on a public highway, or 
     the right-of-way of a public highway, in the State.
       ``(B) Motor vehicles designed to transport many 
     passengers.--For the purposes of this section, if a State has 
     in effect a law that makes unlawful the possession of any 
     open alcoholic beverage container in the passenger area by 
     the driver (but not by a passenger) of a motor vehicle 
     designed, maintained, or used primarily for the 
     transportation of persons for compensation, or to the living 
     quarters of a house coach or house trailer, the State shall 
     be deemed to have in effect a law described in this 
     subsection with respect to such a motor vehicle for each 
     fiscal year during which the law is in effect.
       ``(c) Period of Availability; Effect of Compliance and 
     Noncompliance.--
       ``(1) Period of availability of withheld funds.--
       ``(A) Funds withheld on or before september 30, 2003.--Any 
     funds withheld under subsection (b) from apportionment to any 
     State on or before September 30, 2003, shall remain available 
     until the end of the third fiscal year following the fiscal 
     year for which the funds are authorized to be appropriated.
       ``(B) Funds withheld after september 30, 2003.--No funds 
     withheld under this section from apportionment to any State 
     after September 30, 2003, shall be available for 
     apportionment to the State.
       ``(2) Apportionment of withheld funds after compliance.--
     If, before the last day of the period for which funds 
     withheld under subsection (b) from apportionment are to 
     remain available for apportionment to a State under paragraph 
     (1)(A), the State has in effect a law described in subsection 
     (b)(3), the Secretary shall, on the first day on which the 
     State has in effect such a law, apportion to the State the 
     funds withheld under subsection (b) that remain available for 
     apportionment to the State.
       ``(3) Period of availability of subsequently apportioned 
     funds.--
       ``(A) In general.--Any funds apportioned under paragraph 
     (2) shall remain available for expenditure until the end of 
     the third fiscal year following the fiscal year in which the 
     funds are so apportioned.
       ``(B) Treatment of certain funds.--Sums not obligated at 
     the end of the period referred to in subparagraph (A) shall--
       ``(i) lapse; or
       ``(ii) in the case of funds apportioned under section 
     104(b)(1)(A), lapse and be made available by the Secretary 
     for projects in accordance with section 118.
       ``(4) Effect of noncompliance.--If, at the end of the 
     period for which funds withheld under subsection (b) from 
     apportionment are available for apportionment to a State 
     under paragraph (1)(A), the State does not have in effect a 
     law described in subsection (b)(3), the funds shall--
       ``(A) lapse; or
       ``(B) in the case of funds withheld from apportionment 
     under section 104(b)(1)(A), lapse and be made available by 
     the Secretary for projects in accordance with section 118.''.
       (b) Conforming Amendment.--The analysis for chapter 1 of 
     title 23, United States Code, is amended by inserting after 
     the item relating to section 153 the following:

``154. Open container requirements.''.
                                 ______
                                 

               DOMENICI (AND BINGAMAN) AMENDMENT NO. 1698

  Mr. DOMENICI (for himself and Mr. Bingaman) proposed an amendment to 
amendment No. 1676 proposed by Mr. Chafee to the bill, S. 1173, supra; 
as follows:

       On page 337, after line 6, the chapter analysis for Chapter 
     5 of Title 23, United States Code is amended by striking 
     ``501. Definition of Safety.'' and inserting ``501. 
     Definitions''.
       On page 338, strike lines 2 through 8, and insert the 
     following:
                        ``Sec. 501. Definitions
       ``In this chapter:
       ``(1) Safety.--The term `safety' includes highway and 
     traffic safety systems, research, and development relating to 
     vehicle, highway, driver, passenger, bicyclist, and 
     pedestrian characteristics, accident investigations, 
     communications, emergency medical care, and transportation of 
     the injured.
       ``(2) Federal Laboratory.--The term `Federal laboratory' 
     includes a government-owned, government-operated laboratory 
     and a government-owned, contractor-operated laboratory.
                                 ______
                                 

           BINGAMAN (AND DOMENICI) AMENDMENTS NOS. 1699-1701

  Mr. BINGAMAN (for himself and Mr. Domenici) proposed three amendments 
to amendment No. 1676 proposed by Mr. Chafee to the bill, S. 1173, 
supra; as follows:

                           Amendment No. 1699

       On page 310, strike lines 9 through 17, and insert the 
     following:

     ``Sec. 5211. Transactional authority

       ``To further the objectives of this chapter, the Secretary 
     may make grants to, and enter into contracts, cooperative 
     agreements, and other transactions with--
       ``(1) any person or any agency or instrumentality of the 
     United States;
       ``(2) any unit of State or local government;
       ``(3) any educational institution;
       ``(4) any Federal laboratory; and
       ``(5) any other entity.''
                                                                    ____


                           Amendment No. 1700

       On page 312, strike line 20 and all that follows through 
     page 313, line 2, and insert the following:
       ``(B) to promote the exchange of information on 
     transportation-related research and development activities 
     among the operating elements of the Department, other Federal 
     departments and agencies, Federal laboratories, State and 
     local governments, colleges, and universities, industry, and 
     other private and public sector organizations engaged in the 
     activities;''.
                                                                    ____


                           Amendment No. 1701

       On page 317, strike lines 1 through 6, and insert the 
     following:
       ``(2) identify and apply innovative research performed by 
     the Federal Government, Federal laboratories, academia, and 
     the private sector to the intermodal and multimodal 
     transportation research, development, and deployment needs of 
     the Department and the transportation enterprise of the 
     United States;''.
                                 ______
                                 

                 CHAFEE (AND OTHERS) AMENDMENT NO. 1702

  Mr. CHAFEE (for himself, Mr. Wyden, and Mr. Graham) proposed an 
amendment to amendment No. 1676 proposed by Mr. Chafee to the bill, S. 
1173, supra; as follows:

       On page 162, after the end of line 25, insert the 
     following:
       ``(5) Concurrent processing.--The term, `concurrent 
     processing' means to the fullest extent practicable, and to 
     the extent otherwise required, agencies shall prepare 
     environmental impact statements and environmental assessments 
     concurrently with and integrated with environmental analyses 
     and related surveys and studies required by the Fish and 
     Wildlife Coordination Act (16 U.S.C. 661 et seq.), the 
     National Historic Preservation Act of 1966 (16 U.S.C. 470 et 
     seq.), the Endangered Species Act of 1973 (16 U.S.C. 1531 et 
     seq.) and other environmental review laws and executive 
     orders.''
       On page 163, lines 10-12, strike ``with the requirements'' 
     through the end of the sentence, and insert ``for surface 
     transportation projects at the earliest possible time, 
     including, to the extent appropriate, at the planning stage 
     with the agreement of the State transportation agencies and 
     the cooperating agencies.''

[[Page S1465]]

       On page 163, lines 17-18, strike ``with the planning, 
     predesign stage, and decision making''.
       On page 164, line 2, strike ``initiatives.'' and insert 
     ``initiatives, economic development and transportation 
     initiatives.''
       On page 164, lines 17-18, strike ``with the transportation 
     planning and decisionmaking of the'', and insert ``for 
     surface transportation projects by''.
       On page 166, line 2, delete ``(rather than sequential)''.
       On page 167, line 7, insert ``and the public on request'' 
     after ``cooperating agencies''.
       On page 168, line 11, strike ``grant'', and insert ``take 
     action on''.
       On page 169, after the end of line 10, insert the 
     following:
     ``and assure early consideration of alternatives to a 
     proposed project, including alternatives that address 
     transportation demand consistent with 23 U.S.C. 134(i)(3).''
       On page 169, strike lines 20 through page 170, line 2.
       On page 170, line 15, after ``agreement'', insert ``that 
     has been developed with public involvement''.
       On page 172, line 3, after ``Approaches.--'', insert ``In 
     addition to existing formal public participation 
     opportunities,''.
       On page 172, line 5, after ``used, insert ``, to the extent 
     appropriate,''.
       On page 174, line 19, after ``subsection (a)'', insert 
     ``consistent with Part 1501, et seq., of Title 40 of the Code 
     of Federal Regulations.''
       On page 175, line 6, insert the following new subsection 
     and redesignate the following subsections accordingly:
       (c) Section 112 of title 23, United States Code, is amended 
     by adding at the end the following new subsection:
       ``(g) Selection Process.--It shall not be considered to be 
     a conflict of interest, as defined under section 1.33 of 
     title 23, Code of Federal Regulations, for a State to 
     procure, under a single contract, the services of a 
     consultant to prepare any environmental assessments or 
     analyses required, including environmental impact statements, 
     as well as subsequent engineering and design work on the same 
     project, provided that the State has conducted an independent 
     multi-disciplined review that assesses the objectivity of any 
     analysis, environmental assessment or environmental impact 
     statement prior to its submission to the agency that approves 
     the project.''
                                 ______
                                 

                      HUTCHISON AMENDMENT NO. 1703

  Mrs. HUTCHISON proposed an amendment to amendment No. 1676 proposed 
by Mr. Chafee to the bill, S. 1173, supra; as follows:

       At the end of line 16, page 397 insert:
       ``(3) Continuation of partnership agreements.--The 
     Secretary shall continue through to completion public/private 
     partnership agreements previously executed to promote the 
     integration of surface transportation management systems, 
     including the integration of highway, transit, railroad and 
     emergency management systems.''
                                 ______
                                 

                 ABRAHAM (AND LEVIN) AMENDMENT NO. 1704

  Mr. ABRAHAM (for himself and Mr. Levin) proposed an amendment to 
amendment No. 1676 proposed by Mr. Chafee to the bill, S. 1173, supra; 
as follows:

       On page 136, after line 22, add the following:

     SEC. 11  . AMBASSADOR BRIDGE ACCESS, DETROIT, MICHIGAN.

       (a) In General.--Notwithstanding section 129 of title 23, 
     United States Code, or any other provision of law, 
     improvements to access roads and construction of access 
     roads, approaches, and related facilities (such as signs, 
     lights, and signals) necessary to connect the Ambassador 
     Bridge in Detroit, Michigan, to the Interstate System shall 
     be eligible for funds apportioned under paragraphs (1)(C) and 
     (3) of section 104(b) of that title.
       (b) Use of Funds.--Funds described in subsection (a) shall 
     not be used for any improvements to, or construction of, the 
     bridge itself.
                                 ______
                                 

                       INHOFE AMENDMENT NO. 1705

  Mr. CHAFEE (for Mr. Inhofe) proposed an amendment to amendment No. 
1676 proposed by Mr. Chafee to the bill, S. 1173, supra; as follows:

       On page 135, strike lines 2 through 5 and insert the 
     following:
       ``aid highway funds, or reasonably expected or intended to 
     be part of 1 or more such projects, shall be performed under 
     a contract awarded in accordance with subparagraph (A) unless 
     the simplified acquisition procedures of the Federal 
     Acquisition Regulations apply.''
       On page 135, line 7, insert ``, or salary limitation in 
     consistent with the Federal Acquisition Regulations,'' after 
     ``restriction''.
       On page 135, line 15, strike ``cost principles'' and insert 
     ``procedures, cost principles,'' after ``the''.
       On page 135, line 24, strike ``process, contracting based 
     on'' and insert ``procedures of''.
       On page 136, line 12, strike ``process'' and insert 
     ``procedure''.
                                 ______
                                 

                 ABRAHAM (AND LEVIN) AMENDMENT NO. 1706

  Mr. CHAFEE (for Mr. Abraham, for himself and Mr. Levin) proposed an 
amendment to amendment No. 1676 proposed by Mr. Chafee to the bill, S. 
1173, supra; as follows:

       On page 183 at the end of line 23 insert the following:
       (5) in subsection (b)(9), by striking ``section 
     108(f)(1)(A) (other than clauses (xii) and (xvi)) of the 
     Clean Air Act'' and inserting ``section 108(f)(1)(A) (other 
     than clause (xvi)) of the Clean Air Act (42 U.S.C. 
     7408(f)(1)(A))'';
                                 ______
                                 

               MURKOWSKI (AND STEVENS) AMENDMENT NO. 1707

  (Ordered to lie on the table.)
  Mr. MURKOWSKI (for himself and Mr. Stevens) submitted an amendment 
intended to be proposed by them to amendment No. 1676 proposed by Mr. 
Chafee to the bill, S. 1173, supra; as follows:

       On page 269, line 2, insert ``(a) In General.--'' before 
     ``Section''.
       On page 278, between lines 14 and 15, insert the following:
       (b) Redundant Metropolitan Transportation Planning 
     Requirements.--
       (1) Finding.--Congress finds that certain major investment 
     study requirements under section 450.318 of title 23, Code of 
     Federal Regulations, are redundant to the planning and 
     project development processes required under other provisions 
     in titles 23 and 49, United States Code.
       (2) Streamlining.--
       (A) In general.--The Secretary shall streamline the Federal 
     transportation planning and NEPA decision process 
     requirements for all transportation improvements supported 
     with Federal surface transportation funds or requiring 
     Federal approvals, with the objective of reducing the number 
     of documents required and better integrating required 
     analyses and findings wherever possible.
       (B) Requirements.--The Secretary shall amend regulations as 
     appropriate and develop procedures to--
       (i) eliminate, within six months of the date of enactment 
     of this section, the major investment study under section 
     450.318 of title 23, Code of Federal Regulations, as a stand-
     alone requirement independent of other transportation 
     planning requirements, and integrate those components of the 
     major investment study procedure which are not duplicated 
     elsewhere with other transportation planning requirements;
       (ii) eliminate stand-alone report requirements wherever 
     possible;
       (iii) prevent duplication by integrating planning and 
     transportation processes under the National Environmental 
     Policy Act of 1969 by drawing on the products of the planning 
     process in the completion of all environmental and other 
     project development analyses;
       (iv) reduce project development time by achieving to the 
     maximum extent practical a single public interest decision 
     process for Federal environmental analyses and clearances; 
     and
       (v) expedite and support all phases of decisionmaking by 
     encouraging and facilitating the early involvement of 
     metropolitan planning organizations, State departments of 
     transportation, transit operators, and Federal and State 
     environmental resource and permit agencies throughout the 
     decisionmaking process.
       (3) Savings Clause.--Nothing in this subsection shall 
     affect the responsibility of the Secretary of conform review 
     requirements for transit projects under the National 
     Environmental Policy Act of 1969 to comparable requirements 
     under such Act applicable to highway projects.
                                 ______
                                 

               McCONNELL (AND OTHERS) AMENDMENT NO. 1708

  Mr. McCONNELL (for himself, Mr. Gorton, Mr. Sessions, Mr. Hutchinson, 
Mr. Ashcroft, Mr. Helms, and Mr. Smith of New Hampshire) proposed an 
amendment to amendment No. 1676 proposed by Mr. Chafee to the bill, S. 
1173, supra; as follows:

       Strike section 1111 and insert the following:

     SEC. 1111. EMERGING BUSINESS ENTERPRISE PROGRAM.

       (a) Definitions.--In this section:
       (1) Emerging business enterprise.--The term ``emerging 
     business enterprise'' means a business that--
       (A) has annual gross receipts over the preceding 3 fiscal 
     years of less than $8,400,000 (as adjusted by the Secretary 
     to reflect changes in the Consumer Price Index for all-urban 
     consumers published by the Department of Labor);
       (B) has not been in business for more than 9 years; and
       (C) in response to a survey conducted under subsection 
     (c)(2), has indicated an interest in participating in the 
     construction of a project funded, in whole or in part, under 
     a Federal surface transportation law.
       (2) Federal surface transportation law.--The term ``Federal 
     surface transportation law'' means the surface transportation 
     provisions of this Act and titles 23 and 49, United States 
     Code.
       (3) Preferential treatment.--The term ``preferential 
     treatment'' means the grant of an advantage to any person, 
     including--

[[Page S1466]]

       (A) any set-aside of any contract or subcontract;
       (B) any numerical goal, quota, timetable, benchmark, or 
     other numerical objective, for the award of a contract or 
     subcontract; or
       (C) any bid preference, cost preference, or price 
     preference, including a bonus and an evaluation credit.
       (4) Recruit; recruitment.--
       (A) In general.--The term ``recruit'' or ``recruitment'' 
     refers to distributing or disseminating information about an 
     opportunity to bid for a Federal surface transportation 
     contract or subcontract.
       (B) Exclusion.--The term ``recruit'' or ``recruitment'' 
     does not refer to preferential treatment.
       (5) Standard industrial classification code.--The term 
     ``standard industrial classification code'' means a 4-digit 
     code assigned to an industrial category in the Standard 
     Industrial Classification Manual published by the Office of 
     Management and Budget.
       (6) State.--The term ``State'' means any State or territory 
     of the United States, any political division of any such 
     State or territory, or any interstate entity, if the State, 
     territory, political subdivision, or interstate entity 
     receives financial assistance from the Federal Government 
     under Federal surface transportation law.
       (7) Targeted area.--The term ``targeted area'' means--
       (A) any population census tract with a poverty rate of not 
     less than 20 percent;
       (B) a population census tract with a population of less 
     than 2,000 if--
       (i) more than 75 percent of the tract is zoned for 
     commercial or industrial use; and
       (ii) the tract is contiguous to 1 or more other population 
     census tracts that meet the requirement of subparagraph (A) 
     without regard to this subparagraph; and
       (C) any empowerment zone or enterprise community (and any 
     supplemental zone designated on December 21, 1994).
       (8) Targeted business.--The term ``targeted business'' 
     means an emerging business enterprise that--
       (A) is physically located in a targeted area; or
       (B) employs a workforce that is at least 50 percent 
     composed of residents of a targeted area.
       (b) Policy.--It is the policy of the United States to 
     provide and encourage the maximum practicable opportunity for 
     emerging business enterprises, including targeted businesses 
     and emerging business enterprises owned by members of a 
     minority group based on race, color, or national origin 
     (referred to in this section as ``minorities'') and women, to 
     compete for prime contracts and subcontracts funded under 
     Federal surface transportation law, consistent with the fifth 
     and 14th amendments to the Constitution.
       (c) Requirement for Emerging Business Enterprise 
     Development and Outreach.--
       (1) In general.--Each State that receives funds made 
     available under Federal surface transportation law shall 
     engage in emerging business enterprise development and 
     outreach to implement the policy set forth in subsection (b), 
     including special recruitment efforts for targeted businesses 
     and for emerging business enterprises owned by minorities and 
     women, in carrying out programs under Federal surface 
     transportation law.
       (2) Methods of emerging business enterprise development and 
     outreach.--The required emerging business enterprise 
     development and outreach under paragraph (1) shall include--
       (A) outreach to the emerging business enterprises in the 
     construction industry in the State, and the recruitment of 
     such enterprises, including--
       (i) not less often than annually, a survey of construction 
     contractors and subcontractors within its jurisdiction to 
     determine--

       (I) the number and identity of such construction 
     contractors and subcontractors within its jurisdiction that 
     are emerging business enterprises;
       (II) the standard industrial classification code that 
     identifies the principal line of business of the emerging 
     business enterprises; and
       (III) whether the construction contractor or subcontractor 
     is a targeted business or owned, in whole or in part, by a 
     woman or a minority;

       (ii) not less often than annually, publication of a 
     directory of the emerging business enterprises within its 
     jurisdiction, including relevant information about the 
     enterprises such as--

       (I) name, address, and telephone and fax numbers; and
       (II) the standard industrial classification code that 
     identifies the principal line of business of the emerging 
     business enterprises;

       (iii) each time that the State solicits bids or proposals 
     for construction of a project funded, in whole or in part, 
     under Federal surface transportation law--

       (I) distribution of information on the project in a manner 
     that is reasonably calculated to reach emerging business 
     enterprises, including posting such opportunities in the 
     Commerce Business Daily and the Pro-Net System of the Small 
     Business Administration;
       (II) targeted recruitment of targeted businesses and of 
     emerging business enterprises owned by minorities and women; 
     and
       (III) designation of a location at which all emerging 
     business enterprises may have access to the plans and 
     specifications for the project at no cost during normal 
     business hours; and

       (iv) on a regular basis, provision of opportunities for 
     emerging business enterprises interested in performing prime 
     contracts or subcontracts funded under Federal surface 
     transportation law to meet and interact with other 
     construction companies and with equipment dealers and 
     material suppliers that support the construction industry in 
     the State;
       (B) professional and technical services and assistance with 
     any requirements for prequalification or bonding, including--
       (i) not less often than annually, publication of a 
     directory of the bonding companies that service the 
     construction industry in the State;
       (ii) on a regular basis, provision of opportunities for 
     emerging business enterprises to meet and interact with the 
     bonding companies that service the construction industry in 
     the State;
       (iii) on a regular basis, offering of seminars and other 
     educational programs on--

       (I) the purposes and criteria for prequalification and 
     bonding; and
       (II) the steps necessary to qualify a firm for bonding or 
     to increase the firm's bonding limit; and

       (iv) on a regular basis, provision of information to 
     emerging business enterprises regarding programs to guarantee 
     a surety against loss resulting from the breach of the terms 
     of a bond by an emerging business enterprise, including the 
     program carried out by the Small Business Administration 
     under part B of title IV of the Small Business Investment Act 
     of 1958 (15 U.S.C. 694a et seq.);
       (C) professional and technical services and assistance with 
     risk management and any insurance that the State may 
     encourage or require contractors or subcontractors to carry, 
     including--
       (i) not less often than annually, publication of a 
     directory of the insurance companies that service the 
     construction industry in the State;
       (ii) on a regular basis, provision of opportunities for 
     emerging business enterprises to meet and interact with the 
     insurance companies that service the construction industry in 
     the State; and
       (iii) on a regular basis, offering of seminars and other 
     educational programs on--

       (I) risk management; and
       (II) the steps necessary to obtain appropriate insurance, 
     including any insurance that the State may require;

       (D) professional and technical services and assistance with 
     financial matters, including--
       (i) not less often than annually, publication of a 
     directory of the financial institutions that service the 
     construction industry in the State;
       (ii) on a regular basis, provision of opportunities for 
     emerging business enterprises to meet and interact with the 
     financial institutions that service the construction industry 
     in the State; and
       (iii) on a regular basis, offering of seminars and other 
     educational programs on construction financing and the steps 
     necessary to qualify a firm for a line of credit or increase 
     the firm's credit limit; and
       (E) professional and technical services and assistance with 
     general business management, estimating, bidding, and 
     construction means and methods, including--
       (i) on a regular basis, offering of seminars and other 
     educational programs on general business management, 
     estimating, bidding, and construction means and methods; and
       (ii) on a regular basis, distribution to all emerging 
     business enterprises of information on seminars and other 
     educational programs offered by other entities on general 
     business management, estimating, bidding, and construction 
     means and methods.
       (3) Funding of emerging business development and 
     outreach.--Subject to the approval of the Secretary, each 
     State may use funds made available under this Act, and 
     section 140 of title 23, United States Code, to fund the 
     emerging business enterprise program required under this 
     section.
       (d) Requirement for Review of Construction Plans.--Each 
     State shall conduct a periodic review of its construction 
     plans and specifications to the extent necessary to--
       (1) ensure that the plans and specifications reflect the 
     State's actual requirements; and
       (2) determine the feasibility of subdividing contracts to 
     allow more opportunities for emerging business enterprises, 
     particularly those owned by minorities and women, to compete 
     for projects funded, in whole or in part, under Federal 
     surface transportation law.
       (e) Coordination Between Secretary and State.--The 
     Secretary shall coordinate with each State to help eliminate 
     any duplication between--
       (1) the emerging business enterprise program of the State 
     under this section; and
       (2) other Federal programs, such as programs carried out 
     under the Small Business Act (15 U.S.C. 631 et seq.).
       (f) Requirement for Review of Emerging Business Enterprise 
     Program.--
       (1) Review by state.--Each State shall conduct a periodic 
     review of the implementation and impact of its emerging 
     business enterprise development and outreach efforts under 
     this section, including an assessment of the impact of the 
     efforts on the overall competitiveness of emerging business 
     enterprises owned by minorities and women through 
     consideration of factors such as--
       (A) working capital;
       (B) net profit; and

[[Page S1467]]

       (C) bonding capacity.
       (2) Review by comptroller general.--The Comptroller General 
     of the United States shall conduct a biennial review and 
     publish findings and conclusions on the nationwide impact of 
     the emerging business enterprise development and outreach 
     efforts under this section, including an assessment of the 
     impact of the efforts on the overall competitiveness of 
     emerging business enterprises owned by minorities and women 
     through consideration of relevant factors, including the 
     factors specified in paragraph (1).
       (g) Prohibition on Discrimination or Preferential 
     Treatment.--
       (1) In general.--No person in the United States shall, on 
     the basis of race, color, national origin, or sex, be 
     subjected to discrimination or provided preferential 
     treatment under any project (carried out directly or by grant 
     or contract) receiving Federal financial assistance under 
     this Act or any amendment made by this Act.
       (2) Requirement for express policy statement.--Each time 
     that the State solicits bids or proposals for construction of 
     a project funded under Federal surface transportation law, 
     the solicitation shall expressly state in prominent and 
     boldface lettering that--
       (A) ``Emerging business enterprises owned by minorities and 
     women are expressly encouraged to submit bids for contracts 
     and subcontracts.''; and
       (B) ``Federal law expressly prohibits the government from 
     discriminating against, or granting or requiring preferential 
     treatment to or for, any person, based on race, color, 
     national origin, or sex, in the award of any contract or 
     subcontract funded under Federal surface transportation 
     law.''.
       (h) Statutory Construction.--Nothing in subsection (b), 
     (c), or (g) shall be construed--
       (1) in any way to limit or restrain the power of the 
     judicial branch to order remedial relief to victims of 
     discrimination under the Civil Rights Act of 1964 (42 U.S.C. 
     2000a et seq.) or any other Federal statute;
       (2) to prohibit the Federal Government or any State or 
     local government, consistent with subsection (g), from--
       (A) recruiting emerging business enterprises owned by women 
     and minorities to bid for contracts or subcontracts;
       (B) requiring or encouraging any contractor or 
     subcontractor to recruit emerging business enterprises owned 
     by women and minorities to bid for contracts or subcontracts; 
     or
       (C) establishing overall annual goals for the participation 
     of emerging business enterprises, including emerging business 
     enterprises owned by minorities and women, in the emerging 
     business enterprise development and outreach under subsection 
     (c); or
       (3) to create any private right of action based on the 
     requirements set forth in subsection (c).
                                 ______
                                 

                   CAMPBELL AMENDMENTS NOS. 1709-1710

  (Ordered to lie on the table.)
  Mr. CAMPBELL submitted two amendments intended to be proposed by him 
to amendment No. 1676 proposed by Mr. Chafee to the bill, S. 1173, 
supra; as follows:

                           Amendment No. 1709

       On page 52, strike line 16 and insert the following:
     tribe. Notwithstanding any other provision of law or any 
     interagency agreement, program guideline, manual, or policy 
     directive, all funds made available under this chapter for 
     Indian reservation roads and bridges to pay for the costs of 
     programs, services, functions, and activities, or portions 
     thereof, that are specifically or functionally related to 
     transportation planning, research, engineering, or 
     construction of any highway, road, bridge, parkway, or 
     transit facility that provides access to or is located within 
     the reservation or community of an Indian tribal government, 
     shall, at the option of an Indian tribe (as defined in 
     section 4 of the Indian Self-Determination and Education 
     Assistance Act (25 U.S.C. 450b)), be made available to the 
     Indian tribe under, and shall be used in a manner governed 
     solely by, the flexible and consolidated authorities accorded 
     Indian tribes under the Indian Self-Determination and 
     Education Assistance Act (25 U.S.C. 450 et seq.) without 
     regard to the agency or office of the Bureau of Indian 
     Affairs within which the programs, services, functions, and 
     activities, or portions thereof, are performed.'';
                                                                    ____


                           Amendment No. 1710

       On page 49, strike lines 11 through 17 and insert the 
     following:
       ``(k) Use of Federal Lands Highways Program Funds.--
       ``(1) In general.--Subject to the other provisions of this 
     subsection and notwithstanding any other provision of law, 
     the funds made available to carry out the Federal lands 
     highways program under section 204 may be used to pay the 
     non-Federal share of the cost of any project that is funded 
     under section 104 and that provides access to or within 
     Federal or Indian lands.
       ``(2) Allocation.--All funds made available for Indian 
     reservation roads and bridges under this title shall be 
     allocated among Indian tribes--
       ``(A) for each of fiscal years 1998 and 1999, in accordance 
     with the relative needs formula used to allocate such funds 
     for fiscal year 1997; and
       ``(B) for fiscal year 2000 and each subsequent fiscal year, 
     in accordance with a formula with a formula established by 
     the Secretary of the Interior under a negotiated rulemaking 
     procedure under subchapter III of chapter 5 of title 5.
       ``(3) Regulations.--
       ``(A) In general.--Notwithstanding sections 563(a) and 
     565(a) of title 5, the Secretary of the Interior shall issue 
     regulations governing the Indian reservation roads and 
     bridges program, and establishing the funding formula for 
     fiscal year 2000 and each subsequent fiscal year under 
     paragraph (2)(B), in accordance with a negotiated rulemaking 
     procedure under subchapter III of chapter 5 of title 5.
       ``(B) Timing.--The regulations shall--
       ``(i) be promulgated in final form not later than April 1, 
     1999; and
       ``(ii) take effect not later than October 1, 1999.
       ``(4) Negotiated rulemaking committee.--In establishing a 
     negotiated rulemaking committee to carry out paragraph 
     (3)(A), the Secretary of the Interior shall--
       ``(A) apply the procedures under subchapter III of chapter 
     5 of title 5 in a manner that reflects the unique government-
     to-government relationship between the Indian tribes and the 
     United States; and
       ``(B) ensure that the membership of the committee includes 
     only representatives of the Federal Government and of 
     geographically diverse small, medium, and large Indian 
     tribes.
       ``(5) basis for funding formula.--The funding formula 
     established for fiscal year 2000 and each subsequent fiscal 
     year under paragraph (2)(B) shall be based on factors that 
     reflect--
       ``(A) the relative needs of the Indian tribes, and 
     reservation or tribal communities, for transportation 
     assistance; and
       ``(B) the relative administrative capacities of, and 
     challenges faced by, various Indian tribes, including 
     geographic isolation and difficulty in maintaining all-
     weather access to employment, commerce, health, safety, and 
     educational resources.''.
                                 ______
                                 

                      FAIRCLOTH AMENDMENT NO. 1711

  (Ordered to lie on the table.)
  Mr. FAIRCLOTH submitted an amendment intended to be proposed by him 
to amendment No. 1676 proposed by Mr. Chafee to the bill, S. 1173, 
supra; as follows:

       At the appropriate place, insert the following:
       (B) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out section 104(d)(2) of title 
     23, United States Code, $40,000,000 for each of fiscal years 
     1998 through 2003.
                                 ______
                                 

                       ABRAHAM AMENDMENT NO. 1712

  (Ordered to lie on the table.)
  Mr. ABRAHAM submitted an amendment intended to be proposed by him to 
amendment No. 1676 proposed by Mr. Chafee to the bill, S. 1173, supra; 
as follows:

                                S. 1173

       At the appropriate place, add the following:
                 TITLE ____--AMERICAN COMMUNITY RENEWAL

     SEC. ____00. SHORT TITLE, TABLE OF CONTENTS, FINDINGS, AND 
                   PURPOSE.

       (a) Short Title.--This title may be cited as the ``American 
     Community Renewal Act of 1998''.
       (b) Table of Contents.--The table of contents for this 
     title is as follows:

Sec. ____00. Short title, table of contents, findings, and purpose.

     Subtitle A--Designation and Evaluation of Renewal Communities

Sec. ____01. Short title.
Sec. ____02. Statement of purpose.
Sec. ____03. Designation of renewal communities.
Sec. ____04. Evaluation and reporting requirements.
Sec. ____05. Interaction with other Federal programs.

           Subtitle B--Tax Incentives for Renewal Communities

Sec. ____11. Tax treatment of renewal communities.
Sec. ____12. Extension of expensing of environmental remediation costs 
              for renewal communities.
Sec. ____13. Extension of work opportunity tax credit for renewal 
              communities
Sec. ____15. Conforming and clerical amendments.

                   Subtitle C--Additional Provisions

Sec. ____21. Transfer of unoccupied and substandard HUD-held housing in 
              renewal communities to local governments.
Sec. ____22. CRA credit for investments in community development 
              organizations located in renewal communities.
       (c) Findings.--The Congress makes the following findings:
       (1) Many of the Nation's urban centers are places with high 
     levels of poverty, high rates of welfare dependency, high 
     crime rates, and joblessness.
       (2) Federal tax incentives and regulatory reforms can 
     encourage economic growth, job

[[Page S1468]]

     creation, and small business formation in many urban centers.
       (3) Encouraging private sector investment in America's 
     economically distressed urban and rural areas is essential to 
     breaking the cycle of poverty and the related ills of crime, 
     drug abuse, illiteracy, welfare dependency, and unemployment.
       (d) Purpose.--The purpose of this title is to increase job 
     creation, small business expansion and formation, and 
     homeownership, and to foster moral renewal, in economically 
     depressed areas by providing Federal tax incentives, 
     regulatory reforms, and homeownership incentives.
     Subtitle A--Designation and Evaluation of Renewal Communities

     SEC. ____01. SHORT TITLE.

       This subtitle may be cited as the ``Renewing American 
     Communities Act of 1998''.

     SEC. ____02. STATEMENT OF PURPOSE.

       It is the purpose of this subtitle to provide for the 
     establishment of renewal communities in order to stimulate 
     the creation of new jobs, particularly for disadvantaged 
     workers and long-term unemployed individuals, and to promote 
     revitalization of economically distressed areas primarily by 
     providing or encouraging--
       (1) tax relief at the Federal, State, and local levels;
       (2) regulatory relief at the Federal, State, and local 
     levels; and
       (3) improved local services and an increase in the economic 
     stake of renewal community residents in their own community 
     and its development, particularly through the increased 
     involvement of private, local, and neighborhood 
     organizations.

     SEC. ____03. DESIGNATION OF RENEWAL COMMUNITIES.

       (a) In General.--Chapter 1 of the Internal Revenue Code of 
     1986 is amended by adding at the end the following new 
     subchapter:

                  ``Subchapter X--Renewal Communities

``Part I.   Designation.''

                         ``PART I--DESIGNATION

``Sec. 1400D. Designation of Renewal Communities.

     ``SEC. 1400D. DESIGNATION OF RENEWAL COMMUNITIES.

       ``(a) Designation.--
       ``(1) Definitions.--For purposes of this title, the term 
     `renewal community' means any area--
       ``(A) which is nominated by one or more local governments 
     and the State or States in which it is located for 
     designation as a renewal community (hereafter in this section 
     referred to as a `nominated area'), and
       ``(B) which the Secretary of Housing and Urban Development, 
     after consultation with--
       ``(i) the Secretaries of Agriculture, Commerce, Labor, and 
     the Treasury; the Director of the Office of Management and 
     Budget; and the Administrator of the Small Business 
     Administration, and
       ``(ii) in the case of an area on an Indian reservation, the 
     Secretary of the Interior,

     designates as a renewal community.
       ``(2) Number of designations.--
       ``(A) In general.--The Secretary of Housing and Urban 
     Development may designate not more than 50 nominated areas as 
     renewal communities.
       ``(B) Additional designations to replace revoked 
     designations.--
       ``(i) In general.--The Secretary of Housing and Urban 
     Development may designate one additional area under 
     subparagraph (A) to replace each area for which the 
     designation is revoked under subsection (b)(2), but in no 
     event may more than 50 areas designated under this subsection 
     bear designations as renewal communities at any time.
       ``(ii) Extension of time limit on designations.--In the 
     case of any designation made under this subparagraph, 
     paragraph (4)(B) shall be applied by substituting `36-month' 
     for `24-month'.
       ``(3) Areas designated based on degree of poverty, etc.--
       ``(A) In general.--Except as otherwise provided in this 
     section, the nominated areas designated as renewal 
     communities under this subsection shall be those nominated 
     areas with the highest average ranking with respect to the 
     criteria described in subparagraphs (C), (D), and (E) of 
     subsection (c)(3). For purposes of the preceding sentence, an 
     area shall be ranked within each such criterion on the basis 
     of the amount by which the area exceeds such criterion, with 
     the area which exceeds such criterion by the greatest amount 
     given the highest ranking.
       ``(B) Exception where inadequate course of action, etc.--An 
     area shall not be designated under subparagraph (A) if the 
     Secretary of Housing and Urban Development determines that 
     the course of action described in subsection (d)(2) with 
     respect to such area is inadequate.
       ``(C) Priority for empowerment zones and enterprise 
     communities with respect to first half of designations.--With 
     respect to the first 25 designations made under this section, 
     the nominated areas designated as renewal communities shall 
     be chosen first from nominated areas which are enterprise 
     zones or empowerment communities (and are otherwise eligible 
     for designation under this section), and then from other 
     nominated areas which are so eligible.
       ``(4) Limitation on designations.--
       ``(A) Publication of regulations.--The Secretary of Housing 
     and Urban Development shall prescribe by regulation no later 
     than 4 months after the date of the enactment of this 
     section, after consultation with the officials described in 
     paragraph (1)(B)--
       ``(i) the procedures for nominating an area under paragraph 
     (1)(A),
       ``(ii) the parameters relating to the size and population 
     characteristics of a renewal community, and
       ``(iii) the manner in which nominated areas will be 
     evaluated based on the criteria specified in subsection (d).
       ``(B) Time limitations.--The Secretary of Housing and Urban 
     Development may designate nominated areas as renewal 
     communities only during the 24-month period beginning on the 
     first day of the first month following the month in which the 
     regulations described in subparagraph (A) are prescribed.
       ``(C) Procedural rules.--The Secretary of Housing and Urban 
     Development shall not make any designation of a nominated 
     area as a renewal community under paragraph (2) unless--
       ``(i) the local governments and the State in which the 
     nominated area is located have the authority--

       ``(I) to nominate such area for designation as a renewal 
     community,
       ``(II) to make the State and local commitments described in 
     subsection (d), and
       ``(III) to provide assurances satisfactory to the Secretary 
     of Housing and Urban Development that such commitments will 
     be fulfilled,

       ``(ii) a nomination regarding such area is submitted in 
     such a manner and in such form, and contains such 
     information, as the Secretary of Housing and Urban 
     Development shall by regulation prescribe, and
       ``(iii) the Secretary of Housing and Urban Development 
     determines that any information furnished is reasonably 
     accurate.
       ``(5) Nomination process for indian reservations.--For 
     purposes of this subchapter, in the case of a nominated area 
     on an Indian reservation, the reservation governing body (as 
     determined by the Secretary of the Interior) shall be treated 
     as being both the State and local governments with respect to 
     such area.
       ``(b) Period for Which Designation is in Effect.--
       ``(1) In general.--Any designation of an area as a renewal 
     community shall remain in effect during the period beginning 
     on the date of the designation and ending on the earliest 
     of--
       ``(A) December 31 of the 7th calendar year following the 
     calendar year in which such date occurs,
       ``(B) the termination date designated by the State and 
     local governments in their nomination pursuant to subsection 
     (a)(4)(C)(ii), or
       ``(C) the date the Secretary of Housing and Urban 
     Development revokes such designation under paragraph (2).
       ``(2) Revocation of designation.--The Secretary of Housing 
     and Urban Development may, after--
       ``(A) consultation with the officials described in 
     subsection (a)(1)(B), and
       ``(B) a hearing on the record involving officials of the 
     State or local government involved (or both, if applicable),

     revoke the designation of an area if the Secretary of Housing 
     and Urban Development determines that the local government or 
     State in which the area is located is not complying 
     substantially with the State or local commitments, 
     respectively, described in subsection (d).
       ``(c) Area and Eligibility Requirements.--
       ``(1) In general.--The Secretary of Housing and Urban 
     Development may designate any nominated area as a renewal 
     community under subsection (a) only if the area meets the 
     requirements of paragraphs (2) and (3) of this subsection.
       ``(2) Area requirements.--A nominated area meets the 
     requirements of this paragraph if--
       ``(A) the area is within the jurisdiction of a local 
     government,
       ``(B) the boundary of the area is continuous, and
       ``(C) the area--
       ``(i) has a population, as determined by the most recent 
     census data available, of at least--

       ``(I) 4,000 if any portion of such area is located within a 
     metropolitan statistical area (within the meaning of section 
     143(k)(2)(B)) which has a population of 50,000 or greater, or
       ``(II) 1,000 in any other case, or

       ``(ii) is entirely within an Indian reservation (as 
     determined by the Secretary of the Interior).
       ``(3) Eligibility requirements.--A nominated area meets the 
     requirements of this paragraph if the State and the local 
     governments in which it is located certify (and the Secretary 
     of Housing and Urban Development, after such review of 
     supporting data as he deems appropriate, accepts such 
     certification) that--
       ``(A) the area is one of pervasive poverty, unemployment, 
     and general distress,
       ``(B) the unemployment rate in the area, as determined by 
     the appropriate available data, was at least 1\1/2\ times the 
     national unemployment rate for the period to which such data 
     relate,
       ``(C) the poverty rate (as determined by the most recent 
     census data available) for each population census tract (or 
     where not tracted, the equivalent county division as defined 
     by the Bureau of the Census for the purpose of defining 
     poverty areas) within the area was at least 20 percent for 
     the period to which such data relate, and

[[Page S1469]]

       ``(D) at least 70 percent of the households living in the 
     area have incomes below 80 percent of the median income of 
     households within the jurisdiction of the local government 
     (determined in the same manner as under section 119(b)(2) of 
     the Housing and Community Development Act of 1974).
       ``(4) Consideration of high incidence of crime.--The 
     Secretary of Housing and Urban Development shall take into 
     account, in selecting nominated areas for designation as 
     renewal communities under this section, the extent to which 
     such areas have a high incidence of crime.
       ``(d) Required State and Local Commitments.--
       ``(1) In general.--The Secretary of Housing and Urban 
     Development may designate any nominated area as a renewal 
     community under subsection (a) only if--
       ``(A) the local government and the State in which the area 
     is located agree in writing that, during any period during 
     which the area is a renewal community, such governments will 
     follow a specified course of action which meets the 
     requirements of paragraph (2) and is designed to reduce the 
     various burdens borne by employers or employees in such area, 
     and
       ``(B) the economic growth promotion requirements of 
     paragraph (3) are met.
       ``(2) Course of action.--
       ``(A) In general.--A course of action meets the 
     requirements of this paragraph if such course of action is a 
     written document, signed by a State (or local government) and 
     neighborhood organizations, which evidences a partnership 
     between such State or government and community-based 
     organizations and which commits each signatory to specific 
     and measurable goals, actions, and timetables. Such course of 
     action shall include at least five of the following:
       ``(i) A reduction of tax rates or fees applying within the 
     renewal community.
       ``(ii) An increase in the level of efficiency of local 
     services within the renewal community.
       ``(iii) Crime reduction strategies, such as crime 
     prevention (including the provision of such services by 
     nongovernmental entities).
       ``(iv) Actions to reduce, remove, simplify, or streamline 
     governmental requirements applying within the renewal 
     community.
       ``(v) Involvement in the program by private entities, 
     organizations, neighborhood organizations, and community 
     groups, particularly those in the renewal community, 
     including a commitment from such private entities to provide 
     jobs and job training for, and technical, financial, or other 
     assistance to, employers, employees, and residents from the 
     renewal community.
       ``(vi) State or local income tax benefits for fees paid for 
     services performed by a nongovernmental entity which were 
     formerly performed by a governmental entity.
       ``(vii) The gift (or sale at below fair market value) of 
     surplus realty (such as land, homes, and commercial or 
     industrial structures) in the renewal community to 
     neighborhood organizations, community development 
     corporations, or private companies.
       ``(B) Recognition of past efforts.--For purposes of this 
     section, in evaluating the course of action agreed to by any 
     State or local government, the Secretary of Housing and Urban 
     Development shall take into account the past efforts of such 
     State or local government in reducing the various burdens 
     borne by employers and employees in the area involved.
       ``(3) Economic growth promotion requirements.--The economic 
     growth promotion requirements of this paragraph are met with 
     respect to a nominated area if the local government and the 
     State in which such area is located certify in writing that 
     such government and State, respectively, have repealed or 
     otherwise will not enforce within the area, if such area is 
     designated as a renewal community--
       ``(A) licensing requirements for occupations that do not 
     ordinarily require a professional degree,
       ``(B) zoning restrictions on home-based businesses which do 
     not create a public nuisance,
       ``(C) permit requirements for street vendors who do not 
     create a public nuisance,
       ``(D) zoning or other restrictions that impede the 
     formation of schools or child care centers, and
       ``(E) franchises or other restrictions on competition for 
     businesses providing public services, including but not 
     limited to taxicabs, jitneys, cable television, or trash 
     hauling,

     except to the extent that such regulation of businesses and 
     occupations is necessary for and well-tailored to the 
     protection of health and safety.
       ``(e) Coordination With Treatment of Empowerment Zones and 
     Enterprise Communities.--For purposes of this title, if there 
     are in effect with respect to the same area both--
       ``(1) a designation as a renewal community, and
       ``(2) a designation as an empowerment zone or enterprise 
     community,
     both of such designations shall be given full effect with 
     respect to such area.
       ``(f) Definitions.--For purposes of this subchapter--
       ``(1) Governments.--If more than one government seeks to 
     nominate an area as a renewal community, any reference to, or 
     requirement of, this section shall apply to all such 
     governments.
       ``(2) State.--The term `State' includes Puerto Rico, the 
     Virgin Islands of the United States, Guam, American Samoa, 
     the Northern Mariana Islands, and any other possession of the 
     United States.
       ``(3) Local government.--The term `local government' 
     means--
       ``(A) any county, city, town, township, parish, village, or 
     other general purpose political subdivision of a State,
       ``(B) any combination of political subdivisions described 
     in subparagraph (A) recognized by the Secretary of Housing 
     and Urban Development, and
       ``(C) the District of Columbia.''

     SEC. ____04. EVALUATION AND REPORTING REQUIREMENTS.

       Not later than the close of the fourth calendar year after 
     the year in which the Secretary of Housing and Urban 
     Development first designates an area as a renewal community 
     under section 1400D of the Internal Revenue Code of 1986 (as 
     added by this subtitle), and at the close of each fourth 
     calendar year thereafter, such Secretary shall prepare and 
     submit to the Congress a report on the effects of such 
     designations in accomplishing the purposes of this subtitle.

     SEC. ____05. INTERACTION WITH OTHER FEDERAL PROGRAMS.

       (a) Tax Reductions.--Any reduction of taxes, with respect 
     to any renewal community designated under section 1400D of 
     the Internal Revenue Code of 1986 (as so added), under any 
     plan of action under section 1400D(d) of such Code shall be 
     disregarded in determining the eligibility of a State or 
     local government for, or the amount or extent of, any 
     assistance or benefits under any law of the United States 
     (other than subchapter X of chapter 1 of such Code).
       (b) Coordination With Relocation Assistance.--The 
     designation of a renewal community under section 1400D of 
     such Code (as so added) shall not--
       (1) constitute approval of a Federal or Federally assisted 
     program or project (within the meaning of the Uniform 
     Relocation Assistance and Real Property Acquisition Policies 
     Act of 1970 (42 U.S.C. 4601 et seq.)), or
       (2) entitle any person displaced from real property located 
     in such community to any rights or any benefits under such 
     Act.
       (c) Renewal Communities Treated as Labor Surplus Areas.--
     Any area which is designated as a renewal community under 
     section 1400D of such Code (as so added) shall be treated for 
     all purposes under Federal law as a labor surplus area.
           Subtitle B--Tax Incentives for Renewal Communities

     SEC. ____11. TAX TREATMENT OF RENEWAL COMMUNITIES.

       (a) In General.--Subchapter X of chapter I of the Internal 
     Revenue Code of 1986 (as added by subtitle A) is amended by 
     adding at the end the following new parts:

               ``PART II--RENEWAL COMMUNITY CAPITAL GAIN

``Sec. 1400E. Renewal community capital gain.
``Sec. 1400F. Renewal community business defined.

     ``SEC. 1400E. RENEWAL COMMUNITY CAPITAL GAIN.

       ``(a) General Rule.--Gross income does not include any 
     qualified capital gain recognized on the sale or exchange of 
     a qualified community asset held for more than 5 years.
       ``(b) Qualified Community Asset.--For purposes of this 
     section--
       ``(1) In general.--The term `qualified community asset' 
     means--
       ``(A) any qualified community stock,
       ``(B) any qualified community business property, and
       ``(C) any qualified community partnership interest.
       ``(2) Qualified community stock.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the term `qualified community stock' means any stock in a 
     domestic corporation if--
       ``(i) such stock is acquired by the taxpayer on original 
     issue from the corporation solely in exchange for cash,
       ``(ii) as of the time such stock was issued, such 
     corporation was a renewal community business (or, in the case 
     of a new corporation, such corporation was being organized 
     for purposes of being a renewal community business), and
       ``(iii) during substantially all of the taxpayer's holding 
     period for such stock, such corporation qualified as a 
     renewal community business.
       ``(B) Redemptions.--The term `qualified community stock' 
     shall not include any stock acquired from a corporation which 
     made a substantial stock redemption or distribution (without 
     a bona fide business purpose therefor) in an attempt to avoid 
     the purposes of this section.
       ``(3) Qualified community business property.--
       ``(A) In general.--The term `qualified community business 
     property' means tangible property if--
       ``(i) such property was acquired by the taxpayer by 
     purchase (as defined in section 179(d)(2)) after the date on 
     which the designation of the renewal community took effect,
       ``(ii) the original use of such property in the renewal 
     community commences with the taxpayer, and
       ``(iii) during substantially all of the taxpayer's holding 
     period for such property, substantially all of the use of 
     such property was in a renewal community business of the 
     taxpayer.
       ``(B) Special rule for substantial improvements.--

[[Page S1470]]

       ``(i) In general.--The requirements of clauses (i) and (ii) 
     of subparagraph (A) shall be treated as satisfied with 
     respect to--

       ``(I) property which is substantially improved by the 
     taxpayer, and
       ``(II) any land on which such property is located.

       ``(ii) Substantial improvement.--For purposes of clause 
     (i), property shall be treated as substantially improved by 
     the taxpayer only if, during any 24-month period beginning 
     after the date on which the designation of the renewal 
     community took effect, additions to basis with respect to 
     such property in the hands of the taxpayer exceed the greater 
     of--

       ``(I) an amount equal to the adjusted basis at the 
     beginning of such 24-month period in the hands of the 
     taxpayer, or
       ``(II) $5,000.

       ``(C) Limitation on land.--The term `qualified community 
     business property' shall not include land which is not an 
     integral part of a renewal community business.
       ``(4) Qualified community partnership interest.--The term 
     `qualified community partnership interest' means any interest 
     in a partnership if--
       ``(A) such interest is acquired by the taxpayer from the 
     partnership solely in exchange for cash,
       ``(B) as of the time such interest was acquired, such 
     partnership was a renewal community business (or, in the case 
     of a new partnership, such partnership was being organized 
     for purposes of being a renewal community business), and
       ``(C) during substantially all of the taxpayer's holding 
     period for such interest, such partnership qualified as a 
     renewal community business.

     A rule similar to the rule of paragraph (2)(C) shall apply 
     for purposes of this paragraph.
       ``(5) Treatment of subsequent purchasers.--The term 
     `qualified community asset' includes any property which would 
     be a qualified community asset but for paragraph (2)(A)(i), 
     (3)(A)(ii), or (4)(A) in the hands of the taxpayer if such 
     property was a qualified community asset in the hands of all 
     prior holders.
       ``(6) 10-year safe harbor.--If any property ceases to be a 
     qualified community asset by reason of paragraph (2)(A)(iii), 
     (3)(A)(iii), or (4)(C) after the 10-year period beginning on 
     the date the taxpayer acquired such property, such property 
     shall continue to be treated as meeting the requirements of 
     such paragraph; except that the amount of gain to which 
     subsection (a) applies on any sale or exchange of such 
     property shall not exceed the amount which would be qualified 
     capital gain had such property been sold on the date of such 
     cessation.
       ``(7) Treatment of community designation terminations.--The 
     termination of any designation of an area as a renewal 
     community shall be disregarded for purposes of determining 
     whether any property is a qualified community asset.
       ``(c) Other Definitions and Special Rules.--For purposes of 
     this section--
       ``(1) Qualified capital gain.--Except as otherwise provided 
     in this subsection, the term `qualified capital gain' means 
     any long-term capital gain recognized on the sale or exchange 
     of a qualified community asset held for more than 5 years 
     (determined without regard to any period before the 
     designation of the renewal community).
       ``(2) Certain gain on real property not qualified.--The 
     term `qualified capital gain' shall not include any gain 
     which would be treated as ordinary income under section 1250 
     if section 1250 applied to all depreciation rather than the 
     additional depreciation.
       ``(3) Gain attributable to periods after termination of 
     community designation not qualified.--The term `qualified 
     capital gain' shall not include any gain attributable to 
     periods after the termination of any designation of an area 
     as a renewal community.
       ``(4) Related party transactions.--The term `qualified 
     capital gain' shall not include any gain attributable, 
     directly or indirectly, in whole or in part, to a transaction 
     with a related person. For purposes of this paragraph, 
     persons are related to each other if such persons are 
     described in section 267(b) or 707(b)(1).
       ``(d) Treatment of Pass-Thru Entities.--
       ``(1) Sales and exchanges.--Gain on the sale or exchange of 
     an interest in a pass-thru entity held by the taxpayer (other 
     than an interest in an entity which was a renewal community 
     business during substantially all of the period the taxpayer 
     held such interest) for more than 5 years shall be treated as 
     gain described in subsection (a) to the extent such gain is 
     attributable to amounts which would be qualified capital gain 
     on qualified community assets (determined as if such assets 
     had been sold on the date of the sale or exchange) held by 
     such entity for more than 5 years (determined without regard 
     to any period before the date of the designation of the 
     renewal community) and throughout the period the taxpayer 
     held such interest. A rule similar to the rule of paragraph 
     (2)(C) shall apply for purposes of the preceding sentence.
       ``(2) Income inclusions.--
       ``(A) In general.--Any amount included in income by reason 
     of holding an interest in a pass-thru entity (other than an 
     entity which was a renewal community business during 
     substantially all of the period the taxpayer held the 
     interest to which such inclusion relates) shall be treated as 
     gain described in subsection (a) if such amount meets the 
     requirements of subparagraph (B).
       ``(B) Requirements.--An amount meets the requirements of 
     this subparagraph if--
       ``(i) such amount is attributable to qualified capital gain 
     recognized on the sale or exchange by the pass-thru entity of 
     property which is a qualified community asset in the hands of 
     such entity and which was held by such entity for the period 
     required under subsection (a), and
       ``(ii) such amount is includible in the gross income of the 
     taxpayer by reason of the holding of an interest in such 
     entity which was held by the taxpayer on the date on which 
     such pass-thru entity acquired such asset and at all times 
     thereafter before the disposition of such asset by such pass-
     thru entity.
       ``(C) Limitation based on interest originally held by 
     taxpayer.--Subparagraph (A) shall not apply to any amount to 
     the extent such amount exceeds the amount to which 
     subparagraph (A) would have applied if such amount were 
     determined by reference to the interest the taxpayer held in 
     the pass-thru entity on the date the qualified community 
     asset was acquired.
       ``(3) Pass-thru entity.--For purposes of this subsection, 
     the term `pass-thru entity' means--
       ``(A) any partnership,
       ``(B) any S corporation,
       ``(C) any regulated investment company, and
       ``(D) any common trust fund.
       ``(e) Sales and Exchanges of Interests in Partnerships and 
     S Corporations Which Are Qualified Community Businesses.--In 
     the case of the sale or exchange of an interest in a 
     partnership, or of stock in an S corporation, which was a 
     renewal community business during substantially all of the 
     period the taxpayer held such interest or stock, the amount 
     of qualified capital gain shall be determined without regard 
     to--
       ``(1) any intangible, and any land, which is not an 
     integral part of any qualified business entity (as defined in 
     section 1400F(b)), and
       ``(2) gain attributable to periods before the designation 
     of an area as a renewal community.
       ``(f) Certain Tax-Free and Other Transfers.--For purposes 
     of this section--
       ``(1) In general.--In the case of a transfer of a qualified 
     community asset to which this subsection applies, the 
     transferee shall be treated as--
       ``(A) having acquired such asset in the same manner as the 
     transferor, and
       ``(B) having held such asset during any continuous period 
     immediately preceding the transfer during which it was held 
     (or treated as held under this subsection) by the transferor.
       ``(2) Transfers to which subsection applies.--This 
     subsection shall apply to any transfer--
       ``(A) by gift,
       ``(B) at death, or
       ``(C) from a partnership to a partner thereof, of a 
     qualified community asset with respect to which the 
     requirements of subsection (d)(2) are met at the time of the 
     transfer (without regard to the 5-year holding requirement).
       ``(3) Certain rules made applicable.--Rules similar to the 
     rules of section 1244(d)(2) shall apply for purposes of this 
     section.

     ``SEC. 1400F. RENEWAL COMMUNITY BUSINESS DEFINED.

       ``(a) In General.--For purposes of this part, the term 
     `renewal community business' means--
       ``(1) any qualified business entity, and
       ``(2) any qualified proprietorship.
     Such term shall include any trades or businesses which would 
     qualify as a renewal community business if such trades or 
     businesses were separately incorporated. Such term shall not 
     include any trade or business of producing property of a 
     character subject to the allowance for depletion under 
     section 611.
       ``(b) Qualified Business Entity.-- For purposes of this 
     section, the term `qualified business entity' means, with 
     respect to any taxable year, any corporation or partnership 
     if for such year--
       ``(1) every trade or business of such entity is the active 
     conduct of a qualified business within a renewal community,
       ``(2) at least 80 percent of the total gross income of such 
     entity is derived from the active conduct of such business,
       ``(3) substantially all of the use of the tangible property 
     of such entity (whether owned or leased) is within a renewal 
     community,
       ``(4) substantially all of the intangible property of such 
     entity is used in, and exclusively related to, the active 
     conduct of any such business,
       ``(5) substantially all of the services performed for such 
     entity by its employees are performed in a renewal community,
       ``(6) at least 35 percent of its employees are residents of 
     a renewal community,
       ``(7) less than 5 percent of the average of the aggregate 
     unadjusted bases of the property of such entity is 
     attributable to collectibles (as defined in section 
     408(m)(2)) other than collectibles that are held primarily 
     for sale to customers in the ordinary course of such 
     business, and
       ``(8) less than 5 percent of the average of the aggregate 
     unadjusted bases of the property of such entity is 
     attributable to nonqualified financial property.
       ``(c) Qualified Proprietorship.--For purposes of this 
     section, the term `qualified proprietorship' means, with 
     respect to any taxable year, any qualified business carried 
     on

[[Page S1471]]

     by an individual as a proprietorship if for such year--
       ``(1) at least 80 percent of the total gross income of such 
     individual from such business is derived from the active 
     conduct of such business in a renewal community,
       ``(2) substantially all of the use of the tangible property 
     of such individual in such business (whether owned or leased) 
     is within a renewal community,
       ``(3) substantially all of the intangible property of such 
     business is used in, and exclusively related to, the active 
     conduct of such business,
       ``(4) substantially all of the services performed for such 
     individual in such business by employees of such business are 
     performed in a renewal community,
       ``(5) at least 35 percent of such employees are residents 
     of a renewal community,
       ``(6) less than 5 percent of the average of the aggregate 
     unadjusted bases of the property of such individual which is 
     used in such business is attributable to collectibles (as 
     defined in section 408(m)(2)) other than collectibles that 
     are held primarily for sale to customers in the ordinary 
     course of such business, and
       ``(7) less than 5 percent of the average of the aggregate 
     unadjusted bases of the property of such individual which is 
     used in such business is attributable to nonqualified 
     financial property.

     For purposes of this subsection, the term `employee' includes 
     the proprietor.
       ``(d) Qualified Business.--For purposes of this section--
       ``(1) In general.--Except as otherwise provided in this 
     subsection, the term `qualified business' means any trade or 
     business.
       ``(2) Rental of real property.--The rental to others of 
     real property located in a renewal community shall be treated 
     as a qualified business if and only if--
       ``(A) the property is not residential rental property (as 
     defined in section 168(e)(2)), and
       ``(B) at least 50 percent of the gross rental income from 
     the real property is from renewal community businesses.
       ``(3) Rental of tangible personal property.--The rental to 
     others of tangible personal property shall be treated as a 
     qualified business if and only if substantially all of the 
     rental of such property is by renewal community businesses or 
     by residents of a renewal community.
       ``(4) Treatment of business holding intangibles.--The term 
     `qualified business' shall not include any trade or business 
     consisting predominantly of the development or holding of 
     intangibles for sale or license.
       ``(5) Certain businesses excluded.--The term `qualified 
     business' shall not include--
       ``(A) any trade or business consisting of the operation of 
     any facility described in section 144(c)(6)(B), and
       ``(B) any trade or business the principal activity of which 
     is farming (within the meaning of subparagraph (A) or (B) of 
     section 2032A(e)(5)), but only if, as of the close of the 
     preceding taxable year, the sum of--
       ``(i) the aggregate unadjusted bases (or, if greater, the 
     fair market value) of the assets owned by the taxpayer which 
     are used in such a trade or business, and
       ``(ii) the aggregate value of assets leased by the taxpayer 
     which are used in such a trade or business,
     exceeds $500,000.
       ``(6) Controlled groups.--For purposes of paragraph (5)(B), 
     all persons treated as a single employer under subsection (a) 
     or (b) of section 52 shall be treated as a single taxpayer.
       ``(e) Nonqualified Financial Property.--For purposes of 
     this section, the term `nonqualified financial property' 
     means debt, stock, partnership interests, options, futures 
     contracts, forward contracts, warrants, notional principal 
     contracts, annuities, and other similar property specified in 
     regulations; except that such term shall not include--
       ``(1) reasonable amounts of working capital held in cash, 
     cash equivalents, or debt instruments with a term of 18 
     months or less, or
       ``(2) debt instruments described in section 1221(4).

                ``PART III--FAMILY DEVELOPMENT ACCOUNTS

``Sec. 1400G. Family development accounts.
``Sec. 1400H. Demonstration program to provide matching contributions 
              to family development accounts in certain renewal 
              communities.
``Sec. 1400I. Designation of earned income tax credit payments for 
              deposit to family development account.

     ``SEC. 1400G. FAMILY DEVELOPMENT ACCOUNTS FOR RENEWAL 
                   COMMUNITY EITC RECIPIENTS.

       ``(a) Allowance of Deduction.--
       ``(1) In general.--There shall be allowed as a deduction--
       ``(A) in the case of a qualified individual, the amount 
     paid in cash for the taxable year by such individual to any 
     family development account for such individual's benefit, and
       ``(B) in the case of any person other than a qualified 
     individual, the amount paid in cash for the taxable year by 
     such person to any family development account for the benefit 
     of a qualified individual.

     No deduction shall be allowed under this paragraph for any 
     amount deposited in a family development account under 
     section 1400H (relating to demonstration program to provide 
     matching amounts in renewal communities).
       ``(2) Limitation.--
       ``(A) In general.--The amount allowable as a deduction to 
     any individual for any taxable year by reason of paragraph 
     (1)(A) shall not exceed the lesser of--
       ``(i) $2,000, or
       ``(ii) an amount equal to the compensation includible in 
     the individual's gross income for such taxable year.
       ``(B) Persons donating to family development accounts of 
     others.--The amount allowable as a deduction to any person 
     for any taxable year by reason of paragraph (1)(B) shall not 
     exceed $1,000 with respect to any qualified individual.
       ``(3) Special rules for certain married individuals.--
       ``(A) In general.--In the case of an individual to whom 
     this subparagraph applies for the taxable year, the 
     limitation of subparagraph (A) of paragraph (2) shall be 
     equal to the lesser of--
       ``(i) the dollar amount in effect under paragraph (2)(A)(i) 
     for the taxable year, or
       ``(ii) the sum of--

       ``(I) the compensation includible in such individual's 
     gross income for the taxable year, plus--
       ``(II) the compensation includible in the gross income of 
     such individual's spouse for the taxable year reduced by the 
     amount allowed as a deduction under paragraph (1) to such 
     spouse for such taxable year.

       ``(B) Individuals to whom subparagraph (a) applies.--
     Subparagraph (A) shall apply to any individual if--
       ``(i) such individual files a joint return for the taxable 
     year, and
       ``(ii) the amount of compensation (if any) includible in 
     such individual's gross income for the taxable year is less 
     than the compensation includible in the gross income of such 
     individual's spouse for the taxable year.
       ``(4) Rollovers.--No deduction shall be allowed under this 
     section with respect to any rollover contribution.
       ``(b) Tax Treatment of Distributions.--
       ``(1) Inclusion of amounts in gross income.--Except as 
     otherwise provided in this subsection, any amount paid or 
     distributed out of a family development account shall be 
     included in gross income by the payee or distributee, as the 
     case may be.
       ``(2) Exclusion of qualified family development 
     distributions.--Paragraph (1) shall not apply to any 
     qualified family development distribution.
       ``(3) Special rules.--Rules similar to the rules of 
     paragraphs (4) and (5) of section 408(d) shall apply for 
     purposes of this section.
       ``(c) Qualified Family Development Distribution.--For 
     purposes of this section--
       ``(1) In general.--The term `qualified family development 
     distribution' means any amount paid or distributed out of a 
     family development account which would otherwise be 
     includible in gross income, to the extent that such payment 
     or distribution is used exclusively to pay qualified family 
     development expenses for the holder of the account or the 
     spouse or dependent (as defined in section 152) of such 
     holder.
       ``(2) Qualified family development expenses.--The term 
     `qualified family development expenses' means any of the 
     following:
       ``(A) Qualified postsecondary educational expenses.
       ``(B) First-home purchase costs.
       ``(C) Qualified business capitalization costs.
       ``(D) Qualified medical expenses.
       ``(E) Qualified rollovers.
       ``(3) Qualified postsecondary educational expenses.--
       ``(A) In general.--The term `qualified postsecondary 
     educational expenses' means postsecondary educational 
     expenses paid to an eligible educational institution.
       ``(B) Postsecondary educational expenses.--The term 
     `postsecondary educational expenses' means tuition, fees, 
     room, board, books, supplies, and equipment required for the 
     enrollment or attendance of a student at an eligible 
     educational institution.
       ``(C) Eligible educational institution.--The term `eligible 
     educational institution' means the following:
       ``(i) Institution of higher education.--An institution 
     described in section 481(a)(1) or 1201(a) of the Higher 
     Education Act of 1965 (20 U.S.C. 1088(a)(1), 1141(a)), as 
     such sections are in effect on the date of the enactment of 
     this section.
       ``(ii) Postsecondary vocational education school.--An area 
     vocational education school (as defined in subparagraph (C) 
     or (D) of section 521(4) of the Carl D. Perkins Vocational 
     and Applied Technology Education Act (20 U.S.C. 2471(4))) 
     which is in any State (as defined in section 521(33) of such 
     Act), as such sections are in effect on the date of the 
     enactment of this section.
       ``(D) Coordination with savings bond provisions.--The 
     amount of qualified postsecondary educational expenses for 
     any taxable year shall be reduced by any amount excludable 
     from gross income under section 135.
       ``(4) First-home purchase costs.--
       ``(A) In general.--The term `first-home purchase costs' 
     means qualified acquisition costs with respect to a qualified 
     principal residence for a qualified first-time homebuyer.
       ``(B) Qualified acquisition costs.--The term `qualified 
     acquisition costs' means the costs of acquiring, 
     constructing, or reconstructing a residence. Such term 
     includes any usual or reasonable settlement, financing, or 
     other closing costs.

[[Page S1472]]

       ``(C) Qualified principal residence.--The term `qualified 
     principal residence' means a principal residence (within the 
     meaning of section 1034), the qualified acquisition costs of 
     which do not exceed 100 percent of the average area purchase 
     price applicable to such residence (determined in accordance 
     with paragraphs (2) and (3) of section 143(e)).
       ``(D) Qualified first-time homebuyer.--
       ``(i) In general.--The term `qualified first-time 
     homebuyer' means an individual if such individual (and, in 
     the case of a married individual, the individual's spouse) 
     has no present ownership interest in a principal residence 
     during the 3-year period ending on the date of acquisition of 
     the principal residence to which this subsection applies.
       ``(ii) Date of acquisition.--The term `date of acquisition' 
     means the date on which a binding contract to acquire, 
     construct, or reconstruct the principal residence to which 
     this subsection applies is entered into.
       ``(5) Qualified business capitalization costs.--
       ``(A) In general.--The term `qualified business 
     capitalization costs' means qualified expenditures for the 
     capitalization of a qualified business pursuant to a 
     qualified plan.
       ``(B) Qualified expenditures.--The term `qualified 
     expenditures' means expenditures included in a qualified 
     plan, including capital, plant, equipment, working capital, 
     and inventory expenses.
       ``(C) Qualified business.--The term `qualified business' 
     means any business that does not contravene any law or public 
     policy (as determined by the Secretary).
       ``(D) Qualified plan.--The term `qualified plan' means a 
     business plan which--
       ``(i) is approved by a financial institution, or by a 
     nonprofit loan fund having demonstrated fiduciary integrity,
       ``(ii) includes a description of services or goods to be 
     sold, a marketing plan, and projected financial statements, 
     and
       ``(iii) may require the eligible individual to obtain the 
     assistance of an experienced entrepreneurial adviser.
       ``(6) Qualified medical expenses.--The term `qualified 
     medical expenses' means any amount paid during the taxable 
     year, not compensated for by insurance or otherwise, for 
     medical care (as defined in section 213(d)) of the taxpayer, 
     his spouse, or his dependent (as defined in section 152).
       ``(7) Qualified rollovers.--The term `qualified rollover' 
     means any amount paid from a family development account of a 
     taxpayer into another such account established for the 
     benefit of--
       ``(A) such taxpayer, or
       ``(B) any qualified individual who is--
       ``(i) the spouse of such taxpayer, or
       ``(ii) any dependent (as defined in section 152) of the 
     taxpayer.
     Rules similar to the rules of section 408(d)(3) shall apply 
     for purposes of this paragraph.
       ``(d) Tax Treatment of Accounts.--
       ``(1) In general.--Any family development account is exempt 
     from taxation under this subtitle unless such account has 
     ceased to be a family development account by reason of 
     paragraph (2). Notwithstanding the preceding sentence, any 
     such account is subject to the taxes imposed by section 511 
     (relating to imposition of tax on unrelated business income 
     of charitable, etc., organizations).
       ``(2) Loss of exemption in case of prohibited 
     transactions.--For purposes of this section, rules similar to 
     the rules of section 408(e) shall apply.
       ``(e) Family Development Account.--For purposes of this 
     title, the term `family development account' means a trust 
     created or organized in the United States for the exclusive 
     benefit of a qualified individual or his beneficiaries, but 
     only if the written governing instrument creating the trust 
     meets the following requirements:
       ``(1) Except in the case of a qualified rollover (as 
     defined in subsection (c)(7))--
       ``(A) no contribution will be accepted unless it is in 
     cash, and
       ``(B) contributions will not be accepted for the taxable 
     year in excess of $2,000 (determined without regard to any 
     contribution made under section 1400H (relating to 
     demonstration program to provide matching amounts in renewal 
     communities)).
       ``(2) The trustee is a bank (as defined in section 408(n)) 
     or such other person who demonstrates to the satisfaction of 
     the Secretary that the manner in which such other person will 
     administer the trust will be consistent with the requirements 
     of this section.
       ``(3) No part of the trust funds will be invested in life 
     insurance contracts.
       ``(4) The interest of an individual in the balance in his 
     account is nonforfeitable.
       ``(5) The assets of the trust will not be commingled with 
     other property except in a common trust fund or common 
     investment fund.
       ``(6) Under regulations prescribed by the Secretary, rules 
     similar to the rules of section 401(a)(9) and the incidental 
     death benefit requirements of section 401(a) shall apply to 
     the distribution of the entire interest of an individual for 
     whose benefit the trust is maintained.
       ``(f) Qualified Individual.--For purposes of this section, 
     the term `qualified individual' means, for any taxable year, 
     an individual--
       ``(1) who is a bona fide resident of a renewal community 
     throughout the taxable year, and
       ``(2) to whom a credit was allowed under section 32 for the 
     preceding taxable year.
       ``(g) Other Definitions and Special Rules.--
       ``(1) Compensation.--The term `compensation' has the 
     meaning given such term by section 219(f)(1).
       ``(2) Married individuals.--The maximum deduction under 
     subsection (a) shall be computed separately for each 
     individual, and this section shall be applied without regard 
     to any community property laws.
       ``(3) Time when contributions deemed made.--For purposes of 
     this section, a taxpayer shall be deemed to have made a 
     contribution to a family development account on the last day 
     of the preceding taxable year if the contribution is made on 
     account of such taxable year and is made not later than the 
     time prescribed by law for filing the return for such taxable 
     year (not including extensions thereof).
       ``(4) Employer payments.--For purposes of this title, any 
     amount paid by an employer to a family development account 
     shall be treated as payment of compensation to the employee 
     (other than a self-employed individual who is an employee 
     within the meaning of section 401(c)(1)) includible in his 
     gross income in the taxable year for which the amount was 
     contributed, whether or not a deduction for such payment is 
     allowable under this section to the employee.
       ``(5) Zero basis.--The basis of an individual in any family 
     development account of such individual shall be zero.
       ``(6) Custodial accounts.--For purposes of this section, a 
     custodial account shall be treated as a trust if the assets 
     of such account are held by a bank (as defined in section 
     408(n)) or another person who demonstrates, to the 
     satisfaction of the Secretary, that the manner in which such 
     person will administer the account will be consistent with 
     the requirements of this section, and if the custodial 
     account would, except for the fact that it is not a trust, 
     constitute a family development account described in this 
     section. For purposes of this title, in the case of a 
     custodial account treated as a trust by reason of the 
     preceding sentence, the custodian of such account shall be 
     treated as the trustee thereof.
       ``(7) Reports.--The trustee of a family development account 
     shall make such reports regarding such account to the 
     Secretary and to the individual for whom the account is 
     maintained with respect to contributions (and the years to 
     which they relate), distributions, and such other matters as 
     the Secretary may require under regulations. The reports 
     required by this paragraph--
       ``(A) shall be filed at such time and in such manner as the 
     Secretary prescribes in such regulations, and
       ``(B) shall be furnished to individuals--
       ``(i) not later than January 31 of the calendar year 
     following the calendar year to which such reports relate, and
       ``(ii) in such manner as the Secretary prescribes in such 
     regulations.
       ``(8) Investment in collectibles treated as 
     distributions.--Rules similar to the rules of section 408(m) 
     shall apply for purposes of this section.
       ``(h) Penalty for Distributions Not Used for Qualified 
     Family Development Expenses.--
       ``(1) In general.--If any amount is distributed from a 
     family development account and is not used exclusively to pay 
     qualified family development expenses for the holder of the 
     account or the spouse or dependent (as defined in section 
     152) of such holder, the tax imposed by this chapter for the 
     taxable year of such distribution shall be increased by the 
     sum of--
       ``(A) 100 percent of the portion of such amount which is 
     includible in gross income and is attributable to amounts 
     contributed under section 1400H (relating to demonstration 
     program to provide matching amounts in renewal communities), 
     and
       ``(B) 10 percent of the portion of such amount which is 
     includible in gross income and is not described in paragraph 
     (1).

     For purposes of this subsection, the portion of a distributed 
     amount which is attributable to amounts contributed under 
     section 1400H is the amount which bears the same ratio to the 
     distributed amount as the aggregate amount contributed under 
     section 1400H to all family development accounts of the 
     individual bears to the aggregate amount contributed to such 
     accounts from all sources.
       ``(2) Exception for certain distributions.--Paragraph (1) 
     shall not apply to distributions which are--
       ``(A) made on or after the date on which the account holder 
     attains age 59\1/2\,
       ``(B) made pursuant to subsection (e)(6),
       ``(C) made to a beneficiary (or the estate of the account 
     holder) on or after the death of the account holder, or
       ``(D) attributable to the account holder's being disabled 
     within the meaning of section 72(m)(7).

     ``SEC. 1400H. DEMONSTRATION PROGRAM TO PROVIDE MATCHING 
                   CONTRIBUTIONS TO FAMILY DEVELOPMENT ACCOUNTS IN 
                   CERTAIN RENEWAL COMMUNITIES.

       ``(a) Designation.--
       ``(1) Definitions.--For purposes of this section, the term 
     `FDA matching demonstration area' means any renewal 
     community--
       ``(A) which is nominated under this section by each of the 
     local governments and States which nominated such community 
     for designation as a renewal community under section 
     1400D(a)(1)(A), and
       ``(B) which the Secretary of Housing and Urban Development, 
     after consultation with--
       ``(i) the Secretaries of Agriculture, Commerce, Labor, and 
     the Treasury, the Director

[[Page S1473]]

     of the Office of Management and Budget, and the Administrator 
     of the Small Business Administration, and
       ``(ii) in the case of a community on an Indian reservation, 
     the Secretary of the Interior,

     designates as an FDA matching demonstration area.
       ``(2) Number of designations.--The Secretary of Housing and 
     Urban Development may designate not more than 25 renewal 
     communities as FDA matching demonstration areas.
       ``(3) Limitations on designations.--
       ``(A) Publication of regulations.--The Secretary of Housing 
     and Urban Development shall prescribe by regulation no later 
     than 4 months after the date of the enactment of this 
     section, after consultation with the officials described in 
     paragraph (1)(B)--
       ``(i) the procedures for nominating a renewal community 
     under paragraph (1)(A) (including procedures for coordinating 
     such nomination with the nomination of an area for 
     designation as a renewal community under section 1400D), and
       ``(ii) the manner in which nominated renewal communities 
     will be evaluated for purposes of this section.
       ``(B) Time limitations.--The Secretary of Housing and Urban 
     Development may designate renewal communities as FDA matching 
     demonstration areas only during the 24-month period beginning 
     on the first day of the first month following the month in 
     which the regulations described in subparagraph (A) are 
     prescribed.
       ``(4) Designation based on degree of poverty, etc.--The 
     rules of section 1400D(a)(3) shall apply for purposes of 
     designations of FDA matching demonstration areas under this 
     section.
       ``(b) Period for Which Designation is in Effect.--Any 
     designation of a renewal community as an FDA matching 
     demonstration area shall remain in effect during the period 
     beginning on the date of such designation and ending on the 
     date on which such area ceases to be a renewal community.
       ``(c) Matching Contributions to Family Development 
     Accounts.--
       ``(1) In general.--Not less than once each taxable year, 
     the Secretary shall deposit (to the extent provided in 
     appropriation Acts) into a family development account of each 
     qualified individual (as defined in section 1400G(f)) who is 
     a resident throughout the taxable year of an FDA matching 
     demonstration area an amount equal to the sum of the amounts 
     deposited into all of the family development accounts of such 
     individual during such taxable year (determined without 
     regard to any amount contributed under this section).
       ``(2) Limitations.--
       ``(A) Annual limit.--The Secretary shall not deposit more 
     than $1000 under paragraph (1) with respect to any individual 
     for any taxable year.
       ``(B) Aggregate limit.--The Secretary shall not deposit 
     more than $2000 under paragraph (1) with respect to any 
     individual.
       ``(3) Exclusion from income.--Except as provided in section 
     1400G, gross income shall not include any amount deposited 
     into a family development account under paragraph (1).

     ``SEC. 1400I. DESIGNATION OF EARNED INCOME TAX CREDIT 
                   PAYMENTS FOR DEPOSIT TO FAMILY DEVELOPMENT 
                   ACCOUNT.

       ``(a) In General.--With respect to the return of any 
     qualified individual (as defined in section 1400G(f)) for the 
     taxable year of the tax imposed by this chapter, such 
     individual may designate that a specified portion (not less 
     than $1) of any overpayment of tax for such taxable year 
     which is attributable to the earned income tax credit shall 
     be deposited by the Secretary into a family development 
     account of such individual. The Secretary shall so deposit 
     such portion designated under this subsection.
       ``(b) Manner and Time of Designation.--A designation under 
     subsection (a) may be made with respect to any taxable year--
       ``(1) at the time of filing the return of the tax imposed 
     by this chapter for such taxable year, or
       ``(2) at any other time (after the time of filing the 
     return of the tax imposed by this chapter for such taxable 
     year) specified in regulations prescribed by the Secretary.
     Such designation shall be made in such manner as the 
     Secretary prescribes by regulations.
       ``(c) Portion Attributable to Earned Income Tax Credit.--
     For purposes of subsection (a), an overpayment for any 
     taxable year shall be treated as attributable to the earned 
     income tax credit to the extent that such overpayment does 
     not exceed the credit allowed to the taxpayer under section 
     32 for such taxable year.
       ``(d) Overpayments Treated as Refunded.--For purposes of 
     this title, any portion of an overpayment of tax designated 
     under subsection (a) shall be treated as being refunded to 
     the taxpayer as of the last date prescribed for filing the 
     return of tax imposed by this chapter (determined without 
     regard to extensions) or, if later, the date the return is 
     filed.

                    ``PART IV--ADDITIONAL INCENTIVES

``Sec. 1400J. Commercial revitalization credit.
``Sec. 1400K. Increase in expensing under section 179.

     ``SEC. 1400K. INCREASE IN EXPENSING UNDER SECTION 179.

       ``(a) General Rule.--In the case of a renewal community 
     business (as defined in section 1400F), for purposes of 
     section 179--
       ``(1) the limitation under section 179(b)(1) shall be 
     increased by the lesser of--
       ``(A) $35,000, or
       ``(B) the cost of section 179 property which is qualified 
     renewal property placed in service during the taxable year, 
     and
       ``(2) the amount taken into account under section 179(b)(2) 
     with respect to any section 179 property which is qualified 
     renewal property shall be 50 percent of the cost thereof.
       ``(b) Recapture.--Rules similar to the rules under section 
     179(d)(10) shall apply with respect to any qualified renewal 
     property which ceases to be used in a renewal community by a 
     renewal community business.
       ``(c) Qualified Renewal Property.--
       ``(1) General rule.--For purposes of this section--
       ``(A) In general.--The term `qualified renewal property' 
     means any property to which section 168 applies (or would 
     apply but for section 179) if--
       ``(i) such property was acquired by the taxpayer by 
     purchase (as defined in section 179(d)(2)) after the date on 
     which the designation of the renewal community took effect,
       ``(ii) the original use of which in a renewal community 
     commences with the taxpayer, and
       ``(iii) substantially all of the use of which is in a 
     renewal community and is in the active conduct of a qualified 
     business (as defined in section 1400F(d)) by the taxpayer in 
     such renewal community.
       ``(B) Special rule for substantial renovations.--In the 
     case of any property which is substantially renovated by the 
     taxpayer, the requirements of clauses (i) and (ii) of 
     subparagraph (A) shall be treated as satisfied. For purposes 
     of the preceding sentence, property shall be treated as 
     substantially renovated by the taxpayer only if, during any 
     24-month period beginning after the date on which the 
     designation of the renewal community took effect, additions 
     to basis with respect to such property in the hands of the 
     taxpayer exceed the greater of (i) an amount equal to the 
     adjusted basis at the beginning of such 24-month period in 
     the hands of the taxpayer, or (ii) $5,000.
       ``(2) Special rules for sale-leasebacks.--For purposes of 
     paragraph (1)(A)(ii), if property is sold and leased back by 
     the taxpayer within 3 months after the date such property was 
     originally placed in service, such property shall be treated 
     as originally placed in service not earlier than the date on 
     which such property is used under the leaseback.''
       (b) Deduction for Contributions to Family Development 
     Accounts Allowable Whether or Not Taxpayer Itemizes.--
     Subsection (a) of section 62 of the Internal Revenue Code of 
     1986 (relating to adjusted gross income defined) is amended 
     by inserting after paragraph (17) the following new 
     paragraph:
       ``(18) Family development accounts.--The deduction allowed 
     by section 1400G(a)(1)(A).''

     SEC. ____12. EXTENSION OF EXPENSING OF ENVIRONMENTAL 
                   REMEDIATION COSTS FOR RENEWAL COMMUNITIES.

       Section 198(c)(2)(A) of the Internal Revenue Code of 1986 
     (defining targeted area) is amended by striking ``and'' at 
     the end of clause (iii), by redesignating clause (iv) as 
     clause (v), and by inserting after clause (iii) the following 
     new clause:
       ``(iv) any renewal community designated under section 
     1400D, and''.

     SEC. ____13. EXTENSION OF WORK OPPORTUNITY TAX CREDIT FOR 
                   RENEWAL COMMUNITIES

       (a) Extension.--Paragraph (4) of section 51(c) of the 
     Internal Revenue Code of 1986 (relating to termination) is 
     amended to read as follows:
       ``(4) Termination.--
       ``(A) In general.--The term `wages' shall not include any 
     amount paid or incurred to an individual who begins work for 
     the employer--
       ``(i) after December 31, 1994, and before October 1, 1996, 
     or
       ``(ii) after June 30, 1998.
       ``(B) Special rule for renewal communities.--If--
       ``(i) the employer is engaged in a trade or business in a 
     renewal community throughout the 1-year period referred to in 
     subsection (b)(2),
       ``(ii) the individual who begins work for the employer is a 
     resident of such renewal community throughout such 1-year 
     period, and
       ``(iii) substantially all of the services which such 
     individual performs for the employer during such 1-year 
     period are performed in such renewal community,

     then subparagraph (A)(ii) shall be applied by substituting 
     the last day for which the designation of such renewal 
     community under section 1400D is in effect for `June 30, 
     1998.' ''
       (b) Congruent Treatment of Renewal Communities and 
     Enterprise Zones for Purposes of Youth Residence 
     Requirements.--
       (1) High-risk youth.--Subparagraphs (A)(ii) and (B) of 
     section 51(d)(5) of such Code are each amended by striking 
     ``empowerment zone or enterprise community'' and inserting 
     ``empowerment zone, enterprise community, or renewal 
     community''.
       (2) Qualified summer youth employee.--Clause (iv) of 
     section 51(d)(7)(A) of such Code is amended by striking 
     ``empowerment zone or enterprise community'' and inserting 
     ``empowerment zone, enterprise community, or renewal 
     community''.

[[Page S1474]]

       (3) Headings.--Paragraphs (5)(B) and (7)(C) of section 
     51(d) of such Code are each amended by inserting ``or 
     community'' in the heading after ``zone''.

     SEC. ____14. ALLOWANCE OF COMMERCIAL REVITALIZATION CREDIT.

       Section 46 of the Internal Revenue Code of 1986 (relating 
     to investment credit) is amended by striking ``and'' at the 
     end of paragraph (2), by striking the period at the end of 
     paragraph (3) and inserting ``, and'', and by adding at the 
     end the following new paragraph:
       ``(4) the commercial revitalization credit provided under 
     section 1400J.''

     SEC. ____15. CONFORMING AND CLERICAL AMENDMENTS.

       (a) Tax on Excess Contributions.--
       (1) Tax imposed.--Subsection (a) of section 4973 of such 
     Code is amended by striking ``or'' at the end of paragraph 
     (2), adding ``or'' at the end of paragraph (3), and inserting 
     after paragraph (3) the following new paragraph:
       ``(4) a family development account (within the meaning of 
     section 1400G(e)),''
       (2) Excess contributions.--Section 4973 of such Code is 
     amended by adding at the end the following new subsection:
       ``(g) Family Development Accounts.--For purposes of this 
     section, in the case of a family development account, the 
     term `excess contributions' means the sum of--
       ``(1) the excess (if any) of--
       ``(A) the amount contributed for the taxable year to the 
     account (other than a qualified rollover, as defined in 
     section 1400G(c)(7), or a contribution under section 1400H), 
     over
       ``(B) the amount allowable as a deduction under section 
     1400G for such contributions, and
       ``(2) the amount determined under this subsection for the 
     preceding taxable year reduced by the sum of--
       ``(A) the distributions out of the account for the taxable 
     year which were included in the gross income of the payee 
     under section 1400G(b)(1),
       ``(B) the distributions out of the account for the taxable 
     year to which rules similar to the rules of section 408(d)(5) 
     apply by reason of section 1400G(b)(3), and
       ``(C) the excess (if any) of the maximum amount allowable 
     as a deduction under section 1400G for the taxable year over 
     the amount contributed to the account for the taxable year 
     (other than a contribution under section 1400H).

     For purposes of this subsection, any contribution which is 
     distributed from the family development account in a 
     distribution to which rules similar to the rules of section 
     408(d)(4) apply by reason of section 1400G(b)(3) shall be 
     treated as an amount not contributed.''
       (3) Heading.--The heading of section 4973 of such Code is 
     amended by inserting ``FAMILY DEVELOPMENT ACCOUNTS,'' after 
     ``CONTRACTS,''.
       (b) Tax on Prohibited Transactions.--Section 4975 of such 
     Code is amended--
       (1) by adding at the end of subsection (c) the following 
     new paragraph:
       ``(6) Special rule for family development accounts.--An 
     individual for whose benefit a family development account is 
     established and any contributor to such account shall be 
     exempt from the tax imposed by this section with respect to 
     any transaction concerning such account (which would 
     otherwise be taxable under this section) if, with respect to 
     such transaction, the account ceases to be a family 
     development account by reason of the application of section 
     1400G(d)(2) to such account.'', and
       (2) in subsection (e)(1), by striking ``or'' at the end of 
     subparagraph (E), by redesignating subparagraph (F) as 
     subparagraph (G), and by inserting after subparagraph (E) the 
     following new subparagraph:
       ``(F) a family development account described in section 
     1400G(e), or''.
       (c) Information Relating to Certain Trusts and Annuity 
     Plans.--Subsection (c) of section 6047 of such Code is 
     amended--
       (1) by inserting ``or section 1400G'' after ``section 
     219'', and
       (2) by inserting ``, of any family development account 
     described in section 1400G(e),'', after ``section 408(a)''.
       (d) Inspection of Applications for Tax Exemption.--Clause 
     (i) of section 6104(a)(1)(B) of such Code is amended by 
     inserting ``a family development account described in section 
     1400G(e),'' after ``section 408(a),''.
       (e) Failure To Provide Reports on Family Development 
     Accounts.--Section 6693 of such Code is amended--
       (1) by inserting ``OR ON FAMILY DEVELOPMENT ACCOUNTS'' 
     after ``ANNUITIES'' in the heading of such section, and
       (2) in subsection (a)(2), by striking ``and'' at the end of 
     subparagraph (C), by striking the period and inserting ``, 
     and'' in subparagraph (D), and by adding at the end the 
     following new subparagraph:
       ``(E) section 1400G(g)(7) (relating to family development 
     accounts).''
       (f) Conforming Amendments Regarding Commercial 
     Revitalization Credit.--
       (1) Section 39(d) of such Code is amended by adding at the 
     end the following new paragraph:
       ``(9) No carryback of section 1400j credit before date of 
     enactment.--No portion of the unused business credit for any 
     taxable year which is attributable to any commercial 
     revitalization credit determined under section 1400J may be 
     carried back to a taxable year ending before the date of the 
     enactment of section 1400J.''
       (2) Subparagraph (B) of section 48(a)(2) of such Code is 
     amended by inserting ``or commercial revitalization'' after 
     ``rehabilitation'' each place it appears in the text and 
     heading.
       (3) Subparagraph (C) of section 49(a)(1) of such Code is 
     amended by striking ``and'' at the end of clause (ii), by 
     striking the period at the end of clause (iii) and inserting 
     ``, and'', and by adding at the end the following new clause:
       ``(iv) the portion of the basis of any qualified 
     revitalization building attributable to qualified 
     revitalization expenditures.''
       (4) Paragraph (2) of section 50(a) of such Code is amended 
     by inserting ``or 1400J(d)(2)'' after ``section 47(d)'' each 
     place it appears.
       (5) Subparagraph (A) of section 50(a)(2) of such Code is 
     amended by inserting ``or qualified revitalization building 
     (respectively)'' after ``qualified rehabilitated building''.
       (6) Subparagraph (B) of section 50(a)(2) of such Code is 
     amended by adding at the end the following new sentence: ``A 
     similar rule shall apply for purposes of section 1400J.''
       (7) Paragraph (2) of section 50(b) of such Code 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 adding at the end the following 
     new subparagraph:
       ``(E) a qualified revitalization building (as defined in 
     section 1400J) to the extent of the portion of the basis 
     which is attributable to qualified revitalization 
     expenditures (as defined in section 1400J).''
       (8) Subparagraph (C) of section 50(b)(4) of such Code is 
     amended--
       (A) by inserting ``or commercial revitalization'' after 
     ``rehabilitated'' in the text and heading, and
       (B) by inserting ``or commercial revitalization'' after 
     ``rehabilitation''.
       (9) Subparagraph (C) of section 469(i)(3) is amended--
       (A) by inserting ``or section 1400J'' after ``section 42''; 
     and
       (B) by striking ``credit'' in the heading and inserting 
     ``and commercial revitalization credits''.
       (g) Clerical Amendments.--
       (1) The table of subchapters for chapter 1 of the Internal 
     Revenue Code of 1986 is amended by adding at the end the 
     following new item:

``Subchapter X. Renewal Communities.''
       (2) The table of parts for subchapter X of chapter 1 of 
     such Code (as added by subtitle A) is amended by adding at 
     the end the following new items:

``Part II.  Renewal community capital gain and stock.
``Part III. Family development accounts.
``Part IV.  Additional Incentives.''
       (3) The table of sections for chapter 43 of such Code is 
     amended by striking the item relating to section 4973 and 
     inserting the following new item:

``Sec. 4973. Tax on excess contributions to individual retirement 
              accounts, medical savings accounts, certain section 
              403(b) contracts, family development accounts, and 
              certain individual retirement annuities.''
       (4) The table of sections for part I of subchapter B of 
     chapter 68 of such Code is amended by striking the item 
     relating to section 6693 and inserting the following new 
     item:

``Sec. 6693. Failure to provide reports on individual retirement 
              accounts or annuities or on family development accounts; 
              penalties relating to designated nondeductible 
              contributions.''
                   Subtitle C--Additional Provisions

     SEC. ____21. TRANSFER OF UNOCCUPIED AND SUBSTANDARD HUD-HELD 
                   HOUSING IN RENEWAL COMMUNITIES TO LOCAL 
                   GOVERNMENTS.

       (a) Transfer Requirement.--Pursuant to the authority under 
     section 204 of the Departments of Veterans Affairs and 
     Housing and Urban Development, and Independent Agencies 
     Appropriations Act, 1997, the Secretary shall transfer 
     ownership of any qualified HUD property to the unit of 
     general local government having jurisdiction for the area in 
     which the property is located in accordance with this 
     section, but only if the unit of general local government 
     enters into an agreement with the Secretary meeting the 
     requirements of subsection (d).
       (b) Qualified HUD Properties.--For purposes of this 
     section, the term ``qualified HUD property'' means any 
     unoccupied multifamily housing, project, substandard 
     multifamily housing project, or unoccupied single family 
     property, that is--
       (1) owned by the Secretary; and
       (2) located within a renewal community.
       (c) Timing of Transfer.--Any transfer of ownership required 
     under subsection (a) shall be completed--
       (1) with respect to any multifamily housing project or 
     single family property that is acquired by the Secretary 
     before the date on which the area in which property is 
     located is designated as a renewal community and that is 
     substandard or unoccupied (as applicable) upon such date, not 
     later than 1 year after such date; and
       (2) with respect to any multifamily housing project or 
     single family property that is acquired by the Secretary on 
     or after the date on which the area in which the property is 
     located is designated as a renewal community, not later than 
     1 year after--

[[Page S1475]]

       (A) the date on which the project is determined to be 
     substandard or unoccupied (as applicable), in the case of a 
     property that is not unoccupied or substandard upon 
     acquisition by the Secretary; or
       (B) the date on which the project is acquired by the 
     Secretary, in the case of a property that is substandard or 
     unoccupied (as applicable) upon such acquisition.
       (d) Agreements To Sell Property to Community Development 
     Corporations.--An agreement described in this subsection is 
     an agreement that requires a unit of general local government 
     to dispose of the qualified HUD property acquired by the unit 
     of general local government in accordance with the following 
     requirements:
       (1) Notification to community development corporations.--
     Not later than 30 days after the date on which the unit of 
     general local government acquires title to the property under 
     subsection (a), the unit of general local government shall 
     notify each community development corporation located in the 
     State in which the property is located--
       (A) of such acquisition of title; and
       (B) that, during the 6-month period beginning on the date 
     on which such notification is made, such community 
     development corporations shall have the exclusive right under 
     this subsection to make bona fide offers to purchase the 
     property on a cost recovery basis.
       (2) Right of first refusal.--During the 6-month period 
     described in paragraph (1)(B)--
       (A) the unit of general local government may not sell or 
     offer to sell the qualified HUD property other than to a 
     party notified under paragraph (1), unless each community 
     development corporation required to be so notified has 
     notified the unit of general local government that the 
     corporation will not make an offer to purchase the property; 
     and
       (B) the unit of general local government shall accept a 
     bona fide offer to purchase the property made during such 
     period if the offer is acceptable to the unit of general 
     local government, except that a unit of general local 
     government may not sell a property to a community development 
     corporation during that 6-month period other than on a cost 
     recovery basis.
       (3) Other disposition.--During the 6-month period beginning 
     on the expiration of the 6-month period described in 
     paragraph (1)(B), the unit of general local government shall 
     dispose of the property on a negotiated, competitive bid, or 
     other basis, on such terms as the unit of general local 
     government deems appropriate.
       (e) Satisfaction of Indebtedness.--Before transferring 
     ownership of any qualified HUD property pursuant to 
     subsection (a), the Secretary shall satisfy any indebtedness 
     incurred in connection with the property to be transferred, 
     by--
       (1) canceling the indebtedness; or
       (2) reimbursing the unit of general local government to 
     which the property is transferred for the amount of the 
     indebtedness.
       (f) Determination of Status of Properties.--To ensure 
     compliance with the requirements of subsection (c), the 
     Secretary shall take the following actions:
       (1) Upon designation of renewal communities.--Upon the 
     designation of any renewal community, the Secretary shall 
     promptly assess each residential property owned by the 
     Secretary that is located within such renewal community to 
     determine whether such property is a qualified HUD property.
       (2) Upon acquisition.--Upon acquiring any residential 
     property that is located with a renewal community, the 
     Secretary shall promptly determine whether the property is a 
     qualified HUD property.
       (3) Updates.--The Secretary shall periodically reassess the 
     residential properties owned by the Secretary to determine 
     whether any such properties have become qualified HUD 
     properties.
       (g) Tenant Leases.--This section shall not affect the terms 
     or the enforceability of any contract or lease entered into 
     with respect to any residential property before the date that 
     such property becomes a qualified HUD property.
       (h) Procedures.--Not later than the expiration of the 6-
     month period beginning on the date of the enactment of this 
     Act, the Secretary shall establish, by rule, regulation, or 
     order, such procedures as may be necessary to carry out this 
     section.
       (i) Definitions.--For purposes of this section, the 
     following definitions shall apply:
       (1) Community development corporation.--The term 
     ``community development corporation'' means a nonprofit 
     organization whose primary purpose is to promote community 
     development by providing housing opportunities for low-income 
     families.
       (2) Cost recovery basis.--The term ``cost recovery basis'' 
     means, with respect to any sale of a residential property by 
     a unit of general local government to a community development 
     corporation under subsection (d)(2), that the purchase price 
     paid by the community development corporation is less than or 
     equal to the costs incurred by the unit of general local 
     government in connection with such property during the period 
     beginning on the date on which the unit of general local 
     government acquires title to the property under subsection 
     (a) and ending on the date on which the sale is consummated.
       (3) Low-income families.--The term ``low-income families'' 
     has the meaning given the term in section 3(b) of the United 
     States Housing Act of 1937.
       (4) Multifamily housing project.--The term ``multifamily 
     housing project'' has the meaning given the term in section 
     203 of the Housing and Community Development Amendments of 
     1978.
       (5) Renewal community.--The term ``renewal community'' 
     means an area designated (under subchapter X of chapter 1 of 
     the Internal Revenue Code of 1986) as a renewal community.
       (6) Residential property.--The term ``residential 
     property'' means a property that is a multifamily housing 
     project or a single family property.
       (7) Secretary.--The term ``Secretary'' means the Secretary 
     of Housing and Urban Development.
       (8) Severe physical problems.--The term ``severe physical 
     problems'' means, with respect to a dwelling unit, that the 
     unit--
       (A) lacks hot or cold piped water, a flush toilet, or both 
     a bathtub and a shower in the unit, for the exclusive use of 
     that unit;
       (B) on not less than 3 separate occasions during the 
     preceding winter months, was uncomfortably cold for a period 
     of more than 6 consecutive hours due to a malfunction of the 
     heating system for the unit;
       (C) has no functioning electrical service, exposed wiring, 
     any room in which there is not a functioning electrical 
     outlet, or has experienced 3 or more blown fuses or tripped 
     circuit breakers during the preceding 90-day period;
       (D) is accessible through a public hallway in which there 
     are no working light fixtures, loose or missing steps or 
     railings, and no elevator; or
       (E) has severe maintenance problems, including water leaks 
     involving the roof, windows, doors, basement, or pipes or 
     plumbing fixtures, holes or open cracks in walls or ceilings, 
     severe paint peeling or broken plaster, and signs of rodent 
     infestation.
       (9) Single family property.--The term ``single family 
     property'' means a 1- to 4-family residence.
       (10) Substandard.--The term ``substandard'' means, with 
     respect to a multifamily housing project, that 25 percent or 
     more of the dwelling units in the project have severe 
     physical problems.
       (11) Unit of general local government.--The term ``unit of 
     general local government'' has the meaning given the term in 
     section 102(a) of the Housing and Community Development Act 
     of 1974.
       (12) Unoccupied.--The term ``unoccupied'' means, with 
     respect to a residential property, that the unit of general 
     local government having jurisdiction over the area in which 
     the project is located has certified in writing that the 
     property is not inhabited.

     SEC. ____22. CRA CREDIT FOR INVESTMENTS IN COMMUNITY 
                   DEVELOPMENT ORGANIZATIONS LOCATED IN RENEWAL 
                   COMMUNITIES.

       Section 804 of the Community Reinvestment Act of 1977 (12 
     U.S.C. 2903) is amended by adding at the end the following 
     new subsection:
       ``(c) Investments in Certain Community Development 
     Organizations.--In assessing and taking into account, under 
     subsection (a), the record of a regulated financial 
     institution, the appropriate Federal financial supervisory 
     agency may consider, as a factor, investments of the 
     institution in, and capital investment, loan participation, 
     and other ventures undertaken by the institution in 
     cooperation with, any community development organization (as 
     defined in section 234 of the Bank Enterprise Act of 1991) 
     which is located in a renewal community (as designated under 
     section 1400D of the Internal Revenue Code of 1986).''.

     SEC. 23. CLARIFICATION OF DEDUCTION FOR DEFERRED 
                   COMPENSATION.

       (a) In General.--Section 404(a) (relating to deduction for 
     contributions of an employer to an employee's trust or 
     annuity plan and compensation under a deferred-payment plan) 
     is amended by adding at the end the following new paragraph:
       ``(11) Determinations relating to deferred compensation.--
       ``(A) In general.--For purposes of determining under this 
     section--
       ``(i) whether compensation of an employee is deferred 
     compensation, and
       ``(ii) when deferred compensation is paid, no amount shall 
     be treated as received by the employee, or paid, until it is 
     actually received by the employee.
       ``(B) Exception.--Subparagraph (A) shall not apply to 
     severance pay.''
       (b) Effective Date.--
       (1) In general.--The amendment made by subsection (a) shall 
     apply to taxable years ending after the date of the enactment 
     of this Act.
       (2) Change in method of accounting.--In the case of any 
     taxpayer required by the amendment made by subsection (a) to 
     change its method of accounting for its first taxable year 
     ending after the date of the enactment of this Act--
       (A) such change shall be treated as initiated by the 
     taxpayer,
       (B) such change shall be treated as made with the consent 
     of the Secretary of the Treasury, and
       (C) the net amount of the adjustments required to be taken 
     into account by the taxpayer under section 481 of the 
     Internal Revenue Code of 1986 shall be taken into account in 
     such first taxable year.

     SEC.  24. MODIFICATION TO FOREIGN TAX CREDIT CARRYBACK AND 
                   CARRYOVER PERIODS.

       (a) In General.--Section 904(c) (relating to limitation on 
     credit) is amended--
       (1) by striking ``in the second preceding taxable year,'', 
     and
       (2) striking ``or fifth'' and inserting ``fifth, sixth, or 
     seventh''.

[[Page S1476]]

       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to credits arising in taxable years beginning 
     after December 31, 1999.
                                 ______
                                 

             BENNETT (AND HATCH) AMENDMENTS NOS. 1713-1714

  (Order to lie on the table.)
  Mr. BENNETT (for himself and Mr. Hatch) submitted two amendments 
intended to be proposed by them to amendment No. 1676 proposed by Mr. 
Chafee to the bill, S. 1173, supra; as follows:

                           Amendment No. 1713

       At the end of subtitle A of title I, add the following:

     SEC. 11____. TRANSPORTATION ASSISTANCE FOR OLYMPIC CITIES.

       (a) Purpose.--The purpose of this section is to authorize 
     the provision of assistance for, and support of, State and 
     local efforts concerning surface transportation issues 
     necessary to obtain the national recognition and economic 
     benefits of participation in the International Olympic 
     movement and the International Paralympic movement by hosting 
     international quadrennial Olympic and Paralympic events in 
     the United States.
       (b) Priority for Transportation Projects Relating to 
     Olympic and Paralympic Events.--Notwithstanding any other 
     provision of law, from funds available to carry out section 
     104(k) of title 23, United States Code, the Secretary may 
     give priority to funding for a transportation project 
     relating to an international quadrennial Olympic or 
     Paralympic event if--
       (1) the project meets the extraordinary needs associated 
     with an international quadrennial Olympic or Paralympic 
     event; and
       (2) the project is otherwise eligible for assistance under 
     section 104(k) of that title.
       (c) Transportation Planning Activities.--The Secretary may 
     participate in--
       (1) planning activities of States and metropolitan planning 
     organizations and transportation projects relating to an 
     international quadrennial Olympic or Paralympic event under 
     sections 134 and 135 of title 23, United States Code; and
       (2) developing intermodal transportation plans necessary 
     for the projects in coordination with State and local 
     transportation agencies.
       (d) Funding.--Notwithstanding section 541(a) of title 23, 
     United States Code, from funds made available under that 
     section, the Secretary may provide assistance for the 
     development of an Olympic and a Paralympic transportation 
     management plan in cooperation with an Olympic Organizing 
     Committee responsible for hosting, and State and local 
     communities affected by, an international quadrennial Olympic 
     or Paralympic event.
       (e) Transportation Projects Relating to Olympic and 
     Paralympic Events.--
       (1) In general.--The Secretary may provide assistance, 
     including planning, capital, and operating assistance, to 
     States and local governments in carrying out transportation 
     projects relating to an international quadrennial Olympic or 
     Paralympic event.
       (2) Federal share.--The Federal share of the cost of a 
     project assisted under this subsection shall not exceed 80 
     percent.
       (f) Eligible Governments.--A State or local government 
     shall be eligible to receive assistance under this section 
     only if the government is hosting a venue that is part of an 
     international quadrennial Olympics that is officially 
     selected by the International Olympic Committee.
       (g) Authorization of Appropriations.--There are authorized 
     to be appropriated from the Highway Trust Fund (other than 
     the Mass Transit Account) to carry out this section such sums 
     as are necessary for each of fiscal years 1998 through 2003.
                                                                    ____


                           Amendment No. 1714

       At the appropriate place, insert the following:

     SEC. ____. TRANSPORTATION ASSISTANCE FOR OLYMPIC CITIES.

       (a) Purpose; Definitions.--
       (1) Purpose.--The purpose of this section is to provide 
     assistance and support to State and local efforts on surface 
     and aviation-related transportation issues necessary to 
     obtain the national recognition and economic benefits of 
     participation in the International Olympic movement and the 
     International Paralympic movement by hosting international 
     quadrennial Olympic and Paralympic events in the United 
     States.
       (2) Definition.--In this section, the term ``Secretary'' 
     means the Secretary of Transportation.
       (b) Priority for Transportation Projects Related to Olympic 
     and Paralympic Events.--
       (1) In general.--Notwithstanding any other provision of 
     law, the Secretary may give priority to funding for a mass 
     transportation project related to an international 
     quadrennial Olympic or Paralympic event to carry out 1 or 
     more of sections 5303, 5307, and 5309 of title 49, United 
     States Code, if the project--
       (A) in the determination of the Secretary, will meet 
     extraordinary transportation needs associated with an 
     international quadrennial Olympic or Paralympic event; and
       (B) is otherwise eligible for assistance under the section 
     at issue.
       (2) Contractual obligation.--A grant or a contract for a 
     project described in paragraph (1), approved by the Secretary 
     and funded with amounts made available under this subsection, 
     is a contractual obligation to pay the Government's share of 
     the cost of the project.
       (3) Non-federal share.--For purposes of determining the 
     non-Federal share of a project funded under this subsection, 
     highway and transit projects shall be considered to be a 
     program of projects.
       (4) Authorization of appropriations.--There are authorized 
     to be appropriated from the Mass Transit Account of the 
     Highway Trust Fund such sums as may be necessary to carry out 
     this subsection.
       (c) Transportation Planning Activities.--Notwithstanding 
     any other provision of law, the Secretary may participate 
     in--
       (1) planning activities of State and metropolitan planning 
     organizations, and project sponsors, for a transportation 
     project related to an international quadrennial Olympic or 
     Paralympic event under sections 5303 and 5305a of title 49, 
     United States Code; and
       (2) developing intermodal transportation plans necessary 
     for transportation projects described in paragraph (1), in 
     coordination with State and local transportation agencies.
       (d) Transportation Projects Related to Olympic and 
     Paralympic Events.--
       (1) General authority.--The Secretary may provide 
     assistance to State and local governments, and an Olympic 
     Organizing Committee responsible for hosting an international 
     quadrennial Olympic or Paralympic event, in carrying out 
     transportation projects related to an international 
     quadrennial Olympic or Paralympic event. Such assistance may 
     include planning, capital, and operating assistance.
       (2) Non-federal share.--The Federal share of the costs of 
     any transportation project assisted under this subsection 
     shall not exceed 80 percent. For purposes of determining the 
     non-Federal share of a project assisted under this 
     subsection, highway and transit projects shall be considered 
     to be a program of projects.
       (e) Eligible Governments.--A State or local government is 
     eligible to receive assistance under this section only if it 
     is hosting a venue that is part of an international 
     quadrennial Olympics that is officially selected by the 
     International Olympic Committee.
       (f) Airport Development Projects.--
       (1) Airport development defined.--Section 47102(3) of title 
     49, United States Code, is amended by adding at the end the 
     following:
       ``(H) Developing, in coordination with State and local 
     transportation agencies, intermodal transportation plans 
     necessary for Olympic-related projects at an airport.''.
       (2) Discretionary grants.--Section 47115(d) of title 49, 
     United States Code, is amended--
       (A) by striking ``and'' at the end of paragraph (5);
       (B) by striking the period at the end of paragraph (6) and 
     inserting ``; and''; and
       (C) by adding at the end the following:
       ``(7) the need for the project in order to meet the unique 
     demands of hosting international quadrennial Olympic or 
     Paralympic events.''.
       (g) Grant or Contract Terms and Conditions.--
     Notwithstanding any other provision of law, a grant or 
     contract funded under this section shall be subject to such 
     terms and conditions as the Secretary may determine, 
     including the waiver of planning and procurement 
     requirements.
       (h) Use of Funds Before Apportionments and Allocations.--
     Notwithstanding any other provision of law, funds made 
     available under section 5307 of title 49, United States Code, 
     may be used by the Secretary for projects funded under this 
     section before apportioning or allocating funds to States, 
     metropolitan planning organizations, or transit agencies.
       (i) Use of Appropriations.--From amounts made available to 
     carry out sections 5303, 5307, and 5309 of title 49, United 
     States Code, in each of fiscal years 1998 through 2003, the 
     Secretary may use such amounts as may be necessary to carry 
     out this section.

                          ____________________