[House Report 105-336]
[From the U.S. Government Publishing Office]



105th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 1st Session                                                    105-336
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 PROVIDING FOR CONSIDERATION OF H.R. 2646, THE ``EDUCATION SAVINGS ACT 
                    FOR PUBLIC AND PRIVATE SCHOOLS''

                                _______
                                

  October 22, 1997.--Referred to the House Calendar and ordered to be 
                                printed

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   Mrs. Myrick, from the Committee on Rules, submitted the following

                              R E P O R T

                       [To accompany H. Res. 274]

    The Committee on Rules, having had under consideration 
House Resolution 274, by a nonrecord vote, report the same to 
the House with the recommendation that the resolution be 
adopted.

               brief summary of provisions of resolution

    The resolution provides for consideration of H.R. 2646, the 
``Education Savings Act for Public and Private Schools'' under 
a modified closed rule. The rule considers the bill as read for 
amendment. The rule further considers the amendment in the 
nature of a substitute recommended by the Committee on Ways and 
Means, as modified by the amendment printed in part 1 of this 
report, as adopted.
    The rule provides one hour of debate equally divided and 
controlled by the chairman and ranking minority member of the 
Committee on Ways and Means. The rule further provides for 
consideration of the further amendment printed in part 2 of 
this report, if offered by Representative Rangel or his 
designee against which all points of order are waived, which 
shall be considered as read for amendment and shall be 
debatable for 60 minutes equally divided and controlled by the 
proponent and an opponent. Finally, the rule provides one 
motion to recommit with or without instructions.

                                 PART I

  Amendment Considered as Adopted Upon Adoption of the Rule for H.R. 
2646, ``The Educational Savings Accounts for Public and Private Schools 
                             Act of 1997''

    In clause (ii) of section 530(b)(2)(A) of the Internal 
Revenue Code of 1986, as proposed to be added by section 2(a) 
of the bill, insert before the period ``but only with respect 
to amounts in the account which are attributable to 
contributions for any taxable year ending before January 1, 
2003, and earnings on such contributions''.
    Strike subsection (b) of section 2 of the bill and insert 
the following:
    (b) Temporary Increase in Maximum Annual Contributions.--
          (1) In general.--Section 530(b)(1)(A)(iii) of the 
        Internal Revenue Code of 1986 is amended by striking 
        ``$500'' and inserting ``the contribution limit for 
        such taxable year''.
          (2) Contribution limit.--Section 530(b) of such Code 
        is amended by adding at the end the following new 
        paragraph:
          ``(4) Contribution limit.--The term `contribution 
        limit' means $2,500 ($500 in the case of any taxable 
        year ending after December 31, 2002).''
          (3) Conforming amendments.--
                  (A) Section 530(d)(4)(C) of such Code is 
                amended by striking ``$500'' and inserting 
                ``the contribution limit for such taxable 
                year''.
                  (B) Section 4973(e)(1)(A) of such Code is 
                amended by striking ``$500'' and inserting 
                ``the contribution limit (as defined in section 
                530(b)(4)) for such taxable year''.
    In section 3(a) of the bill, strike ``(other than with 
respect to severance pay)''.
                              ----------                              


                                PART II

 An Amendment To Be Offered by Representative Rangel of New York, or a 
                   Designee, Debatable for 60 Minutes

    Strike sections 1 and 2 of the bill and insert the 
following:

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Public School Improvement 
Act''.

SEC. 2. MODIFICATIONS TO EDUCATION ZONE PROVISIONS.

    (a) Increase in Volume Cap on Bonds.--Paragraph (1) of 
section 1397E(c) of the Internal Revenue Code of 1986 (relating 
to credit to holders of qualified zone academy bonds) is 
amended by striking ``$400,000,000'' and inserting 
``$4,000,000,000''.
    (b) Permitted Uses of Bond Proceeds to Include School 
Construction.--Subparagraph (A) of section 1397E(d)(5) of such 
Code is amended to read as follows:
                  ``(A) constructing, rehabilitating, or 
                repairing the public school facility in which 
                the academy is established,''.
    Amend the title to read as follows: ``To amend the Internal 
Revenue Code of 1986 to promote the construction and 
rehabilitation of public schools by increasing the amount of 
qualified zone academy bonds which may be issued.''