[Congressional Record (Bound Edition), Volume 154 (2008), Part 2]
[Senate]
[Pages 1586-1589]
[From the U.S. Government Publishing Office, www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 4009. Mr. KERRY submitted an amendment intended to be proposed by 
him to the bill H.R. 5140, to provide economic stimulus through 
recovery rebates to individuals, incentives for business investment, 
and an increase in conforming and FHA loan limits; as follows:

       At the appropriate place, insert the following:

     SEC. ___. ECONOMIC STIMULUS SMALL BUSINESS CONCERNS.

       (a) In General.--For fiscal year 2008, and to the extent 
     the cost of such reduction in fees are offset by 
     appropriations, with respect to each loan guaranteed under 
     section 7(a) of Small Business Act (15 U.S.C. 636(a)), the 
     Administrator of the Small Business Administration shall, in 
     lieu of the fee otherwise applicable under section 
     7(a)(23)(A) of the Small Business Act (15 U.S.C. 
     636(a)(23)(A)), collect an annual fee in an amount equal to a 
     maximum of .25 percent of the outstanding balance of the 
     deferred participation share of that loan, and in lieu of the 
     fee otherwise applicable under section 7(a)(18)(A) of the 
     Small Business Act (15 U.S.C. 636(a)(18)(A)), collect a 
     guarantee fee in an amount equal to a maximum of 1 percent of 
     the deferred participation share of a total loan amount that 
     is not more than $150,000, 2.5 percent of the deferred 
     participation share of a total loan amount that is more than 
     $150,000, and not more than $700,000, and 3 percent of the 
     deferred participation share of a total loan amount that is 
     more than $700,000, and in lieu of the fee otherwise 
     applicable under section 7(a)(18)(A)(iv) of the Small 
     Business Act (15 U.S.C. 636(a)(18)(A)(iv)), collect no fee. 
     In carrying out this subsection, the Administrator of the 
     Small Business Administration shall reduce the fees for a 
     loan guaranteed under section 7(a) of Small Business Act (15 
     U.S.C. 636(a)) to the maximum extent possible, subject to the 
     availability of appropriations.
       (b) Appropriation.--There are appropriated, out of any 
     money in the Treasury not otherwise appropriated, for the 
     fiscal year ending September 30, 2008, for the ``Business 
     Loans Program Account'' of the Small Business Administration, 
     $150,000,000 for loan subsidies and for loan modifications 
     for loans to small business concerns authorized under 
     subsection (a), and $2,000,000, to remain available until 
     expended, for direct loans under the Microloan Program under 
     section 7(m) of the Small Business Act (15 U.S.C. 636(m)), 
     and for the ``Salaries and Expenses Account'' of the Small 
     Business Administration, $10,000,000, to remain available 
     until expended, for marketing, management, and technical 
     assistance under section 7(m)(4) of the Small Business Act 
     (15 U.S.C. 636(m)(4)) by intermediaries that make microloans 
     under the Microloan Program: Provided, That the amounts 
     provided under this subsection are designated as an emergency 
     requirement pursuant to section 204 of S. Con. Res. 21 (110th 
     Congress).
       (c) Application of Fee Reductions.--The Administrator of 
     the Small Business Administration shall reduce the fees under 
     subsection (a) for any loan guarantee subject to such 
     subsection for which the application is pending approval on 
     or after the date of enactment of this Act, until the amount 
     provided for such purpose under subsection (b) is expended.
                                 ______
                                 
  SA 4010. Mr. REID (for himself, Mr. McConnell, Mr. Baucus, Mr. 
Grassley, Mr. Stevens, Mrs. Lincoln, Ms. Snowe, Mr. Salazar, Mr. 
Bunning, Mr. Alexander, Mr. Sununu, Mr. Vitter, Mr. Wicker, Mr. Burr, 
Mr. Roberts, Mr. Brownback, Mr. Isakson, and Mr. Coleman) proposed an 
amendment to the bill H.R. 5140, to provide economic stimulus through 
recovery rebates to individuals, incentives for business investment, 
and an increase in conforming and FHA loan limits; as follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Economic 
     Stimulus Act of 2008''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.

    TITLE I--RECOVERY REBATES AND INCENTIVES FOR BUSINESS INVESTMENT

Sec. 101. 2008 recovery rebates for individuals.
Sec. 102. Temporary increase in limitations on expensing of certain 
              depreciable business assets.
Sec. 103. Special allowance for certain property acquired during 2008.

               TITLE II--HOUSING GSE AND FHA LOAN LIMITS

Sec. 201. Temporary conforming loan limit increase for Fannie Mae and 
              Freddie Mac.
Sec. 202. Temporary loan limit increase for FHA.

                    TITLE III--EMERGENCY DESIGNATION

Sec. 301. Emergency designation.

    TITLE I--RECOVERY REBATES AND INCENTIVES FOR BUSINESS INVESTMENT

     SEC. 101. 2008 RECOVERY REBATES FOR INDIVIDUALS.

       (a) In General.--Section 6428 of the Internal Revenue Code 
     of 1986 is amended to read as follows:

     ``SEC. 6428. 2008 RECOVERY REBATES FOR INDIVIDUALS.

       ``(a) In General.--In the case of an eligible individual, 
     there shall be allowed as a credit against the tax imposed by 
     subtitle A for the first taxable year beginning in 2008 an 
     amount equal to the lesser of--
       ``(1) net income tax liability, or
       ``(2) $600 ($1,200 in the case of a joint return).
       ``(b) Special Rules.--
       ``(1) In general.--In the case of a taxpayer described in 
     paragraph (2)--
       ``(A) the amount determined under subsection (a) shall not 
     be less than $300 ($600 in the case of a joint return), and
       ``(B) the amount determined under subsection (a) (after the 
     application of subparagraph (A)) shall be increased by the 
     product of $300 multiplied by the number of qualifying 
     children (within the meaning of section 24(c)) of the 
     taxpayer.
       ``(2) Taxpayer described.--A taxpayer is described in this 
     paragraph if the taxpayer--
       ``(A) has qualifying income of at least $3,000, or
       ``(B) has--
       ``(i) net income tax liability which is greater than zero, 
     and
       ``(ii) gross income which is greater than the sum of the 
     basic standard deduction plus the exemption amount (twice the 
     exemption amount in the case of a joint return).
       ``(c) Treatment of Credit.--The credit allowed by 
     subsection (a) shall be treated as allowed by subpart C of 
     part IV of subchapter A of chapter 1.
       ``(d) Limitation Based on Adjusted Gross Income.--The 
     amount of the credit allowed by subsection (a) (determined 
     without regard to this subsection and subsection (f)) shall 
     be reduced (but not below zero) by 5 percent of so much of 
     the taxpayer's adjusted gross income as exceeds $75,000 
     ($150,000 in the case of a joint return).
       ``(e) Definitions.--For purposes of this section--
       ``(1) Qualifying income.--The term `qualifying income' 
     means--
       ``(A) earned income,
       ``(B) social security benefits (within the meaning of 
     section 86(d)), and
       ``(C) any compensation or pension received under chapter 
     11, chapter 13, or chapter 15 of title 38, United States 
     Code.
       ``(2) Net income tax liability.--The term `net income tax 
     liability' means the excess of--
       ``(A) the sum of the taxpayer's regular tax liability 
     (within the meaning of section 26(b)) and the tax imposed by 
     section 55 for the taxable year, over
       ``(B) the credits allowed by part IV (other than section 24 
     and subpart C thereof) of subchapter A of chapter 1.
       ``(3) Eligible individual.--The term `eligible individual' 
     means any individual other than--
       ``(A) any nonresident alien individual,
       ``(B) any individual with respect to whom a deduction under 
     section 151 is allowable to another taxpayer for a taxable 
     year beginning in the calendar year in which the individual's 
     taxable year begins, and
       ``(C) an estate or trust.
       ``(4) Earned income.--The term `earned income' has the 
     meaning set forth in section 32(c)(2) except that--
       ``(A) subclause (II) of subparagraph (B)(vi) thereof shall 
     be applied by substituting `January 1, 2009' for `January 1, 
     2008', and
       ``(B) such term shall not include net earnings from self-
     employment which are not taken into account in computing 
     taxable income.
       ``(5) Basic standard deduction; exemption amount.--The 
     terms `basic standard deduction' and `exemption amount' shall 
     have the same respective meanings as when used in section 
     6012(a).
       ``(f) Coordination With Advance Refunds of Credit.--
       ``(1) In general.--The amount of credit which would (but 
     for this paragraph) be allowable under this section shall be 
     reduced (but not below zero) by the aggregate refunds and 
     credits made or allowed to the taxpayer

[[Page 1587]]

     under subsection (g). Any failure to so reduce the credit 
     shall be treated as arising out of a mathematical or clerical 
     error and assessed according to section 6213(b)(1).
       ``(2) Joint returns.--In the case of a refund or credit 
     made or allowed under subsection (g) with respect to a joint 
     return, half of such refund or credit shall be treated as 
     having been made or allowed to each individual filing such 
     return.
       ``(g) Advance Refunds and Credits.--
       ``(1) In general.--Each individual who was an eligible 
     individual for such individual's first taxable year beginning 
     in 2007 shall be treated as having made a payment against the 
     tax imposed by chapter 1 for such first taxable year in an 
     amount equal to the advance refund amount for such taxable 
     year.
       ``(2) Advance refund amount.--For purposes of paragraph 
     (1), the advance refund amount is the amount that would have 
     been allowed as a credit under this section for such first 
     taxable year if this section (other than subsection (f) and 
     this subsection) had applied to such taxable year.
       ``(3) Timing of payments.--The Secretary shall, subject to 
     the provisions of this title, refund or credit any 
     overpayment attributable to this section as rapidly as 
     possible. No refund or credit shall be made or allowed under 
     this subsection after December 31, 2008.
       ``(4) No interest.--No interest shall be allowed on any 
     overpayment attributable to this section.
       ``(h) Identification Number Requirement.--
       ``(1) In general.--No credit shall be allowed under 
     subsection (a) to an eligible individual who does not include 
     on the return of tax for the taxable year--
       ``(A) such individual's valid identification number,
       ``(B) in the case of a joint return, the valid 
     identification number of such individual's spouse, and
       ``(C) in the case of any qualifying child taken into 
     account under subsection (b)(1)(B), the valid identification 
     number of such qualifying child.
       ``(2) Valid identification number.--For purposes of 
     paragraph (1), the term `valid identification number' means a 
     social security number issued to an individual by the Social 
     Security Administration. Such term shall not include a TIN 
     issued by the Internal Revenue Service.''.
       (b) Administrative Amendments.--
       (1) Definition of deficiency.--Section 6211(b)(4)(A) of the 
     Internal Revenue Code of 1986 is amended by striking ``and 
     53(e)'' and inserting ``53(e), and 6428''.
       (2) Mathematical or clerical error authority.--Section 
     6213(g)(2)(L) of such Code is amended by striking ``or 32'' 
     and inserting ``32, or 6428''.
       (c) Treatment of Possessions.--
       (1) Payments to possessions.--
       (A) Mirror code possession.--The Secretary of the Treasury 
     shall make a payment to each possession of the United States 
     with a mirror code tax system in an amount equal to the loss 
     to that possession by reason of the amendments made by this 
     section. Such amount shall be determined by the Secretary of 
     the Treasury based on information provided by the government 
     of the respective possession.
       (B) Other possessions.--The Secretary of the Treasury shall 
     make a payment to each possession of the United States which 
     does not have a mirror code tax system in an amount estimated 
     by the Secretary of the Treasury as being equal to the 
     aggregate benefits that would have been provided to residents 
     of such possession by reason of the amendments made by this 
     section if a mirror code tax system had been in effect in 
     such possession. The preceding sentence shall not apply with 
     respect to any possession of the United States unless such 
     possession has a plan, which has been approved by the 
     Secretary of the Treasury, under which such possession will 
     promptly distribute such payment to the residents of such 
     possession.
       (2) Coordination with credit allowed against united states 
     income taxes.--No credit shall be allowed against United 
     States income taxes under section 6428 of the Internal 
     Revenue Code of 1986 (as amended by this section) to any 
     person--
       (A) to whom a credit is allowed against taxes imposed by 
     the possession by reason of the amendments made by this 
     section, or
       (B) who is eligible for a payment under a plan described in 
     paragraph (1)(B).
       (3) Definitions and special rules.--
       (A) Possession of the united states.--For purposes of this 
     subsection, the term ``possession of the United States'' 
     includes the Commonwealth of Puerto Rico and the Commonwealth 
     of the Northern Mariana Islands.
       (B) Mirror code tax system.--For purposes of this 
     subsection, the term ``mirror code tax system'' means, with 
     respect to any possession of the United States, the income 
     tax system of such possession if the income tax liability of 
     the residents of such possession under such system is 
     determined by reference to the income tax laws of the United 
     States as if such possession were the United States.
       (C) Treatment of payments.--For purposes of section 
     1324(b)(2) of title 31, United States Code, the payments 
     under this subsection shall be treated in the same manner as 
     a refund due from the credit allowed under section 6428 of 
     the Internal Revenue Code of 1986 (as amended by this 
     section).
       (d) Refunds Disregarded in the Administration of Federal 
     Programs and Federally Assisted Programs.--Any credit or 
     refund allowed or made to any individual by reason of section 
     6428 of the Internal Revenue Code of 1986 (as amended by this 
     section) or by reason of subsection (c) of this section shall 
     not be taken into account as income and shall not be taken 
     into account as resources for the month of receipt and the 
     following 2 months, for purposes of determining the 
     eligibility of such individual or any other individual for 
     benefits or assistance, or the amount or extent of benefits 
     or assistance, under any Federal program or under any State 
     or local program financed in whole or in part with Federal 
     funds.
       (e) Appropriations To Carry Out Rebates.--
       (1) In general.--Immediately upon the enactment of this 
     Act, the following sums are appropriated, out of any money in 
     the Treasury not otherwise appropriated, for the fiscal year 
     ending September 30, 2008:
       (A) Department of treasury.--
       (i) For an additional amount for ``Department of the 
     Treasury--Financial Management Service--Salaries and 
     Expenses'', $64,175,000, to remain available until September 
     30, 2009.
       (ii) For an additional amount for ``Department of the 
     Treasury--Internal Revenue Service--Taxpayer Services'', 
     $50,720,000, to remain available until September 30, 2009.
       (iii) For an additional amount for ``Department of the 
     Treasury--Internal Revenue Service--Operations Support'', 
     $151,415,000, to remain available until September 30, 2009.
       (B) Social security administration.--For an additional 
     amount for ``Social Security Administration--Limitation on 
     Administrative Expenses'', $31,000,000, to remain available 
     until September 30, 2008.
       (2) Reports.--No later than 15 days after enactment of this 
     Act, the Secretary of the Treasury shall submit a plan to the 
     Committees on Appropriations of the House of Representatives 
     and the Senate detailing the expected use of the funds 
     provided by paragraph (1)(A). Beginning 90 days after 
     enactment of this Act, the Secretary of the Treasury shall 
     submit a quarterly report to the Committees on Appropriations 
     of the House of Representatives and the Senate detailing the 
     actual expenditure of funds provided by paragraph (1)(A) and 
     the expected expenditure of such funds in the subsequent 
     quarter.
       (f) Conforming Amendments.--
       (1) Paragraph (2) of section 1324(b) of title 31, United 
     States Code, is amended by inserting ``or 6428'' after 
     ``section 35''.
       (2) Paragraph (1) of section 1(i) of the Internal Revenue 
     Code of 1986 is amended by striking subparagraph (D).
       (3) The item relating to section 6428 in the table of 
     sections for subchapter B of chapter 65 of such Code is 
     amended to read as follows:

``Sec. 6428. 2008 recovery rebates for individuals.''.

     SEC. 102. TEMPORARY INCREASE IN LIMITATIONS ON EXPENSING OF 
                   CERTAIN DEPRECIABLE BUSINESS ASSETS.

       (a) In General.--Subsection (b) of section 179 of the 
     Internal Revenue Code of 1986 (relating to limitations) is 
     amended by adding at the end the following new paragraph:
       ``(7) Increase in limitations for 2008.--In the case of any 
     taxable year beginning in 2008--
       ``(A) the dollar limitation under paragraph (1) shall be 
     $250,000,
       ``(B) the dollar limitation under paragraph (2) shall be 
     $800,000, and
       ``(C) the amounts described in subparagraphs (A) and (B) 
     shall not be adjusted under paragraph (5).''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2007.

     SEC. 103. SPECIAL ALLOWANCE FOR CERTAIN PROPERTY ACQUIRED 
                   DURING 2008.

       (a) In General.--Subsection (k) of section 168 of the 
     Internal Revenue Code of 1986 (relating to special allowance 
     for certain property acquired after September 10, 2001, and 
     before January 1, 2005) is amended--
       (1) by striking ``September 10, 2001'' each place it 
     appears and inserting ``December 31, 2007'',
       (2) by striking ``September 11, 2001'' each place it 
     appears and inserting ``January 1, 2008'',
       (3) by striking ``January 1, 2005'' each place it appears 
     and inserting ``January 1, 2009'', and
       (4) by striking ``January 1, 2006'' each place it appears 
     and inserting ``January 1, 2010''.
       (b) 50 Percent Allowance.--Subparagraph (A) of section 
     168(k)(1) of such Code is amended by striking ``30 percent'' 
     and inserting ``50 percent''.
       (c) Conforming Amendments.--
       (1) Subclause (I) of section 168(k)(2)(B)(i) of such Code 
     is amended by striking ``and (iii)'' and inserting ``(iii), 
     and (iv)''.
       (2) Subclause (IV) of section 168(k)(2)(B)(i) of such Code 
     is amended by striking ``clauses (ii) and (iii)'' and 
     inserting ``clause (iii)''.
       (3) Clause (i) of section 168(k)(2)(C) of such Code is 
     amended by striking ``and (iii)'' and inserting ``, (iii), 
     and (iv)''.
       (4) Clause (i) of section 168(k)(2)(F) of such Code is 
     amended by striking ``$4,600'' and inserting ``$8,000''.

[[Page 1588]]

       (5)(A) Subsection (k) of section 168 of such Code is 
     amended by striking paragraph (4).
       (B) Clause (iii) of section 168(k)(2)(D) of such Code is 
     amended by striking the last sentence.
       (6) Paragraph (4) of section 168(l) of such Code is amended 
     by redesignating subparagraphs (A), (B), and (C) as 
     subparagraphs (B), (C), and (D) and inserting before 
     subparagraph (B) (as so redesignated) the following new 
     subparagraph:
       ``(A) Bonus depreciation property under subsection (k).--
     Such term shall not include any property to which section 
     168(k) applies.''.
       (7) Paragraph (5) of section 168(l) of such Code is 
     amended--
       (A) by striking ``September 10, 2001'' in subparagraph (A) 
     and inserting ``December 31, 2007'', and
       (B) by striking ``January 1, 2005'' in subparagraph (B) and 
     inserting ``January 1, 2009''.
       (8) Subparagraph (D) of section 1400L(b)(2) of such Code is 
     amended by striking ``January 1, 2005'' and inserting 
     ``January 1, 2010''.
       (9) Paragraph (3) of section 1400N(d) of such Code is 
     amended--
       (A) by striking ``September 10, 2001'' in subparagraph (A) 
     and inserting ``December 31, 2007'', and
       (B) by striking ``January 1, 2005'' in subparagraph (B) and 
     inserting ``January 1, 2009''.
       (10) Paragraph (6) of section 1400N(d) of such Code is 
     amended by adding at the end the following new subparagraph:
       ``(E) Exception for bonus depreciation property under 
     section 168(k).--The term `specified Gulf Opportunity Zone 
     extension property' shall not include any property to which 
     section 168(k) applies.''.
       (11) The heading for subsection (k) of section 168 of such 
     Code is amended--
       (A) by striking ``September 10, 2001'' and inserting 
     ``December 31, 2007'', and
       (B) by striking ``January 1, 2005'' and inserting ``January 
     1, 2009''.
       (12) The heading for clause (ii) of section 168(k)(2)(B) of 
     such Code is amended by striking ``pre-january 1, 2005'' and 
     inserting ``pre-january 1, 2009''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after December 31, 
     2007, in taxable years ending after such date.

               TITLE II--HOUSING GSE AND FHA LOAN LIMITS

     SEC. 201. TEMPORARY CONFORMING LOAN LIMIT INCREASE FOR FANNIE 
                   MAE AND FREDDIE MAC.

       (a) Increase of High Cost Areas Limits for Housing GSEs.--
     For mortgages originated during the period beginning on July 
     1, 2007, and ending at the end of December 31, 2008:
       (1) Fannie mae.--With respect to the Federal National 
     Mortgage Association, notwithstanding section 302(b)(2) of 
     the Federal National Mortgage Association Charter Act (12 
     U.S.C. 1717(b)(2)), the limitation on the maximum original 
     principal obligation of a mortgage that may be purchased by 
     the Association shall be the higher of--
       (A) the limitation for 2008 determined under such section 
     302(b)(2) for a residence of the applicable size; or
       (B) 125 percent of the area median price for a residence of 
     the applicable size, but in no case to exceed 175 percent of 
     the limitation for 2008 determined under such section 
     302(b)(2) for a residence of the applicable size.
       (2) Freddie mac.--With respect to the Federal Home Loan 
     Mortgage Corporation, notwithstanding section 305(a)(2) of 
     the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 
     1454(a)(2)), the limitation on the maximum original principal 
     obligation of a mortgage that may be purchased by the 
     Corporation shall be the higher of--
       (A) the limitation determined for 2008 under such section 
     305(a)(2) for a residence of the applicable size; or
       (B) 125 percent of the area median price for a residence of 
     the applicable size, but in no case to exceed 175 percent of 
     the limitation determined for 2008 under such section 
     305(a)(2) for a residence of the applicable size.
       (b) Determination of Limits.--The areas and area median 
     prices used for purposes of the determinations under 
     subsection (a) shall be the areas and area median prices used 
     by the Secretary of Housing and Urban Development in 
     determining the applicable limits under section 202 of this 
     title.
       (c) Rule of Construction.--A mortgage originated during the 
     period referred to in subsection (a) that is eligible for 
     purchase by the Federal National Mortgage Association or the 
     Federal Home Loan Mortgage Corporation pursuant to this 
     section shall be eligible for such purchase for the duration 
     of the term of the mortgage, notwithstanding that such 
     purchase occurs after the expiration of such period.
       (d) Effect on Housing Goals.--Notwithstanding any other 
     provision of law, mortgages purchased in accordance with the 
     increased maximum original principal obligation limitations 
     determined pursuant to this section shall not be considered 
     in determining performance with respect to any of the housing 
     goals established under section 1332, 1333, or 1334 of the 
     Housing and Community Development Act of 1992 (12 U.S.C. 
     4562-4), and shall not be considered in determining 
     compliance with such goals pursuant to section 1336 of such 
     Act (12 U.S.C. 4566) and regulations, orders, or guidelines 
     issued thereunder.
       (e) Sense of Congress.--It is the sense of the Congress 
     that the securitization of mortgages by the Federal National 
     Mortgage Association and the Federal Home Loan Mortgage 
     Corporation plays an important role in providing liquidity to 
     the United States housing markets. Therefore, the Congress 
     encourages the Federal National Mortgage Association and the 
     Federal Home Loan Mortgage Corporation to securitize 
     mortgages acquired under the increased conforming loan limits 
     established in this section, to the extent that such 
     securitizations can be effected in a timely and efficient 
     manner that does not impose additional costs for mortgages 
     originated, purchased, or securitized under the existing 
     limits or interfere with the goal of adding liquidity to the 
     market.

     SEC. 202. TEMPORARY LOAN LIMIT INCREASE FOR FHA.

       (a) Increase of High-Cost Area Limit.--For mortgages for 
     which the mortgagee has issued credit approval for the 
     borrower on or before December 31, 2008, subparagraph (A) of 
     section 203(b)(2) of the National Housing Act (12 U.S.C. 
     1709(b)(2)(A)) shall be considered (except for purposes of 
     section 255(g) of such Act (12 U.S.C. 1715z-20(g))) to 
     require that a mortgage shall involve a principal obligation 
     in an amount that does not exceed the lesser of--
       (1) in the case of a 1-family residence, 125 percent of the 
     median 1-family house price in the area, as determined by the 
     Secretary; and in the case of a 2-, 3-, or 4-family 
     residence, the percentage of such median price that bears the 
     same ratio to such median price as the dollar amount 
     limitation determined for 2008 under section 305(a)(2) of the 
     Federal Home Loan Mortgage Corporation Act (12 U.S.C. 
     1454(a)(2)) for a 2-, 3-, or 4-family residence, 
     respectively, bears to the dollar amount limitation 
     determined for 2008 under such section for a 1-family 
     residence; or
       (2) 175 percent of the dollar amount limitation determined 
     for 2008 under such section 305(a)(2) for a residence of the 
     applicable size (without regard to any authority to increase 
     such limitation with respect to properties located in Alaska, 
     Guam, Hawaii, or the Virgin Islands);

     except that the dollar amount limitation in effect under this 
     subsection for any size residence for any area shall not be 
     less than the greater of (A) the dollar amount limitation in 
     effect under such section 203(b)(2) for the area on October 
     21, 1998; or (B) 65 percent of the dollar amount limitation 
     determined for 2008 under such section 305(a)(2) for a 
     residence of the applicable size. Any reference in this 
     subsection to dollar amount limitations in effect under 
     section 305 (a)(2) of the Federal Home Loan Mortgage 
     Corporation Act means such limitations as in effect without 
     regard to any increase in such limitation pursuant to section 
     201 of this title.
       (b) Discretionary Authority.--If the Secretary of Housing 
     and Urban Development determines that market conditions 
     warrant such an increase, the Secretary may, for the period 
     that begins upon the date of the enactment of this Act and 
     ends at the end of the date specified in subsection (a), 
     increase the maximum dollar amount limitation determined 
     pursuant to subsection (a) with respect to any particular 
     size or sizes of residences, or with respect to residences 
     located in any particular area or areas, to an amount that 
     does not exceed the maximum dollar amount then otherwise in 
     effect pursuant to subsection (a) for such size residence, or 
     for such area (if applicable), by not more than $100,000.
       (c) Publication of Area Median Prices and Loan Limits.--The 
     Secretary of Housing and Urban Development shall publish the 
     median house prices and mortgage principal obligation limits, 
     as revised pursuant to this section, for all areas as soon as 
     practicable, but in no case more than 30 days after the date 
     of the enactment of this Act. With respect to existing areas 
     for which the Secretary has not established area median 
     prices before such date of enactment, the Secretary may rely 
     on existing commercial data in determining area median prices 
     and calculating such revised principal obligation limits.

                    TITLE III--EMERGENCY DESIGNATION

     SEC. 301. EMERGENCY DESIGNATION.

       For purposes of Senate enforcement, all provisions of this 
     Act are designated as emergency requirements and necessary to 
     meet emergency needs pursuant to section 204 of S. Con. Res. 
     21 (110th Congress), the concurrent resolution on the budget 
     for fiscal year 2008.
                                 ______
                                 
  SA 4011. Mr. KERRY (for himself and Mr. Smith) submitted an amendment 
intended to be proposed by him to the bill H.R. 5140, to provide 
economic stimulus through recovery rebates to individuals, incentives 
for business investment, and an increase in conforming and FHA loan 
limits; as follows:

       At the end of title I, insert the following:

[[Page 1589]]



     SEC. 104. MODIFICATIONS ON USE OF QUALIFIED MORTGAGE BONDS; 
                   TEMPORARY INCREASED VOLUME CAP FOR CERTAIN 
                   HOUSING BONDS.

       (a) Use of Qualified Mortgage Bonds Proceeds for Subprime 
     Refinancing Loans.--Section 143(k) of the Internal Revenue 
     Code of 1986 (relating to other definitions and special 
     rules) is amended by adding at the end the following new 
     paragraph:
       ``(12) Special rules for subprime refinancings.--
       ``(A) In general.--Notwithstanding the requirements of 
     subsection (i)(1), the proceeds of a qualified mortgage issue 
     may be used to refinance a mortgage on a residence which was 
     originally financed by the mortgagor through a qualified 
     subprime loan.
       ``(B) Special rules.--In applying this paragraph to any 
     case in which the proceeds of a qualified mortgage issue are 
     used for any refinancing described in subparagraph (A)--
       ``(i) subsection (a)(2)(D)(i) shall be applied by 
     substituting `12-month period' for `42-month period' each 
     place it appears,
       ``(ii) subsection (d) (relating to 3-year requirement) 
     shall not apply, and
       ``(iii) subsection (e) (relating to purchase price 
     requirement) shall be applied by using the market value of 
     the residence at the time of refinancing in lieu of the 
     acquisition cost.
       ``(C) Qualified subprime loan.--The term `qualified 
     subprime loan' means an adjustable rate single-family 
     residential mortgage loan originated after December 31, 2001, 
     and before January 1, 2008, that the bond issuer determines 
     would be reasonably likely to cause financial hardship to the 
     borrower if not refinanced.
       ``(D) Termination.--This paragraph shall not apply to any 
     bonds issued after December 31, 2010.''.
       (b) Increased Volume Cap for Certain Bonds.--
       (1) In general.--Subsection (d) of section 146 of the 
     Internal Revenue Code of 1986 is amended by adding at the end 
     the following new paragraph:
       ``(5) Increase and set aside for housing bonds for 2008.--
       ``(A) Increase for 2008.--In the case of calendar year 
     2008, the State ceiling for each State shall be increased by 
     an amount equal to $10,000,000,000 multiplied by a fraction--
       ``(i) the numerator of which is the population of such 
     State (as reported in the most recent decennial census), and
       ``(ii) the denominator of which is the total population of 
     all States (as reported in the most recent decennial census).
       ``(B) Set aside.--
       ``(i) In general.--Any amount of the State ceiling for any 
     State which is attributable to an increase under this 
     paragraph shall be allocated solely for one or more qualified 
     purposes.
       ``(ii) Qualified purpose.--For purposes of this paragraph, 
     the term `qualified purpose' means--

       ``(I) the issuance of exempt facility bonds used solely to 
     provide qualified residential rental projects, or
       ``(II) a qualified mortgage issue (determined by 
     substituting `12-month period' for `42-month period' each 
     place it appears in section 143(a)(2)(D)(i)).''.

       (2) Carryforward of unused limitations.--Subsection (f) of 
     section 146 of such Code is amended by adding at the end the 
     following new paragraph:
       ``(6) Special rules for increased volume cap under 
     subsection (d)(5).--
       ``(A) In general.--No amount which is attributable to the 
     increase under subsection (d)(5) may be used--
       ``(i) for a carryforward purpose other than a qualified 
     purpose (as defined in subsection (d)(5)), and
       ``(ii) to issue any bond after calendar year 2010.
       ``(B) Ordering rules.--For purposes of subparagraph (A), 
     any carryforward of an issuing authority's volume cap for 
     calendar year 2008 shall be treated as attributable to such 
     increase to the extent of such increase.''.
       (c) Alternative Minimum Tax.--
       (1) In general.--Clause (ii) of section 57(a)(5)(C) of the 
     Internal Revenue Code of 1986 is amended by striking ``shall 
     not include'' and all that follows and inserting ``shall not 
     include--

       ``(I) any qualified 501(c)(3) bond (as defined in section 
     145), or
       ``(II) any qualified mortgage bond (as defined in section 
     143(a)) or qualified veterans' mortgage bond (as defined in 
     section 143(b)) issued after the date of the enactment of 
     this subclause and before January 1, 2011.''.

       (2) Conforming amendment.--The heading for section 
     57(a)(5)(C)(ii) is amended by striking ``qualified 501(c)(3) 
     bonds'' and inserting ``certain bonds''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to bonds issued after the date of the enactment 
     of this Act.
                                 ______
                                 
  SA 4012. Mr. COBURN submitted an amendment intended to be proposed by 
him to the bill S. 1200, to amend the Indian Health Care Improvement 
Act to revise and extend the Act; which was ordered to lie on the 
table; as follows:

       On page 298, after line 25, add the following:
       ``(e) Speedy Notice to Rape and Sexual Assault Victims.--
     The Secretary shall withhold from a Service Area carrying out 
     a program under this section an amount equal to 10 percent of 
     the amount allocated for the program until the date on which 
     the Secretary, in consultation with the Attorney General, 
     determines that, with respect to the Service Area--
       ``(1)(A) there exists and is enforced a law or regulation 
     that requires--
       ``(i) at the request of a victim, the administration to a 
     defendant, against whom an information or indictment is 
     presented for a crime in which, by force or threat of force, 
     the defendant compels the victim to engage in sexual 
     activity, of a test for the human immunodeficiency virus 
     (HIV) and such other sexually transmitted diseases as are 
     requested by the victim not later than 48 hours after the 
     date on which the information or indictment is presented;
       ``(ii) a notification of the test results to be provided to 
     the victim or the parent or guardian of the victim and the 
     defendant as soon as practicable after the results are 
     generated; and
       ``(iii) such follow-up tests for HIV and other sexually 
     transmitted diseases as are medically appropriate, with the 
     test results made available in accordance with clause (ii); 
     or
       ``(B) a law or regulation described in subparagraph (A) 
     will be established and enforced in the Service Area by not 
     later than 1 year after the date of enactment of the Indian 
     Health Care Improvement Act Amendments of 2008; and
       ``(2) pursuant to subsection (a), HIV and other sexually 
     transmitted disease testing, treatment, and counseling is 
     provided for victims of sexual abuse.
                                 ______
                                 
  SA 4013. Mr. COBURN submitted an amendment intended to be proposed by 
him to the bill S. 1200, to amend the Indian Health Care Improvement 
Act to revise and extend the Act; which was ordered to lie on the 
table; as follows:

       At the appropriate place in title VIII of the Indian
       Health Care Improvement Act (as amended by section 101), 
     insert the following:

     ``SEC. 8 . REQUIREMENT FOR MEDICAL EVIDENCE.

       ``Notwithstanding any other provision of this Act, no 
     funding shall be provided pursuant to this Act for any 
     treatment activity for a health care condition unless the 
     treatment is supported by medical evidence.

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