[Congressional Record Volume 149, Number 91 (Thursday, June 19, 2003)]
[Senate]
[Page S8236]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. HOLLINGS:
  S. 1290. A bill to amend the Internal Revenue Code of 1986 to allow 
an additional advance refunding of tax-exempt bonds issued for the 
purchase or maintenance of electric generation, transmission, or 
distribution assets; to the Committee on Finance.
  Mr. HOLLINGS. Mr. President, I am introducing legislation today that 
would improve the Internal Revenue Code of 1986 by allowing an 
additional advanced refunding of tax exempt bonds issued for the 
purchase or maintenance of electric generation, transmission, or 
distribution assets. This bill will give municipal utilities additional 
flexibility in refinancing their debts, so they can respond to 
favorable market conditions. I ask that the text of this bill be 
printed in the Record.
  There being no objections, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1290

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

     SECTION 1. ADDITIONAL ADVANCE REFUNDING OF ELECTRICITY BONDS.

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