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H.R. 5278 (103rd): Jobs and Investment Act of 1994

The text of the bill below is as of Oct 7, 1994 (Introduced).


HR 5278 IH

103d CONGRESS

2d Session

H. R. 5278

To provide for the creation of jobs in America, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

October 7, 1994

Mr. SANDERS (for himself, Ms. VELAZQUEZ, Mr. HINCHEY, Mr. OWENS, Mr. BONIOR, and Mr. BROWN of California) introduced the following bill; which was referred jointly to the Committees on Public Works and Transportation, Energy and Commerce, Armed Services, Appropriations, Banking, Finance and Urban Affairs, Education and Labor, Natural Resources, and Ways and Means


A BILL

To provide for the creation of jobs in America, and for other purposes.

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

SECTION 1. SHORT TITLE.

    (a) SHORT TITLE- This Act may be cited as the ‘The Jobs and Investment Act of 1994’.

    (b) TABLE OF CONTENTS-

      Sec. 1. Short title.

TITLE I--PHYSICAL CAPITAL INVESTMENT

Subtitle A--Highways and Mass Transit

      Sec. 1001. Highway programs.

      Sec. 1002. Federal transit act programs.

Subtitle B--Airports

      Sec. 1101. Airport improvement program.

Subtitle C--Railroads

      Sec. 1201. Local rail freight assistance.

Subtitle D--Water and Sewage Treatment Facilities

      Sec. 1301. State water pollution control revolving funds.

Subtitle E--Environmental Restoration

      Sec. 1401. Environmental restoration at facilities of the department of defense and department of energy.

Subtitle F--Community Development Assistance

Chapter 1--Community Development Block Grants

      Sec. 1501. Authorization of appropriations.

Chapter 2--Community Banking and Economic Empowerment Act

      Sec. 1511. Short title.

      Sec. 1512. Authority of secretary.

      Sec. 1513. Eligible community development lenders.

      Sec. 1514. Capital and operating assistance for community development lenders.

      Sec. 1515. Requirements of assisted community development lenders.

      Sec. 1516. Application and approval for assistance.

      Sec. 1517. Assistance agreements.

      Sec. 1518. Books, records, and audits.

      Sec. 1519. Technical assistance for organizing and operating community development lenders.

      Sec. 1520. Relationship to community reinvestment act of 1977.

      Sec. 1521. Reports to congress.

      Sec. 1522. Regulations.

      Sec. 1523. Definitions.

      Sec. 1524. Authorization of appropriations.

Subtitle G--Education Infrastructure

      Sec. 1601. Short title.

      Sec. 1602. Findings.

      Sec. 1603. Purpose.

      Sec. 1604. Definitions.

      Sec. 1605. Improvement of public elementary and secondary education facilities program authorized.

      Sec. 1606. Applications.

      Sec. 1607. Authorized activities.

      Sec. 1608. Requirements.

      Sec. 1609. Contracts.

      Sec. 1610. Technical assistance.

      Sec. 1611. Federal assessment.

Subtitle H--Renewable Energy and Energy Efficiency

      Sec. 1701. Renewable energy.

      Sec. 1702. Energy efficiency.

TITLE II--HUMAN CAPITAL INVESTMENT

Subtitle A--Job Training

      Sec. 2001. Human capital investments in job training.

Subtitle B--Education

      Sec. 2101. Educational personnel.

Subtitle C--Head Start

      Sec. 2201. Amendments to the Head Start act.

Subtitle D--Programs Under Public Health Service Act

Chapter 1--Funding Initiative for Programs Providing Health Services

      Sec. 2301. Funding initiative.

Chapter 2--Community Health Advisor Program

      Sec. 2311. Short title.

      Sec. 2312. Findings.

      Sec. 2313. Formula grants regarding community health advisor programs.

      Sec. 2314. Requirements regarding community health advisor programs.

      Sec. 2315. Additional agreements.

      Sec. 2316. Application for assistance; State plan.

      Sec. 2317. Determination of amount of allotment.

      Sec. 2318. Quality assurance; cost-effectiveness.

      Sec. 2319. Evaluations; technical assistance.

      Sec. 2320. Rule of construction regarding programs of indian health service.

      Sec. 2321. Definitions.

      Sec. 2322. Funding.

Title III--AMENDMENTS OF INTERNAL REVENUE CODE OF 1986

Subtitle A--Reduction in Employee Payroll Taxes; Credit for First-Time Homebuyers

      Sec. 3001. Credit for portion of social security taxes.

      Sec. 3002. Credit for purchase of principal residence by first-time homebuyer.

Subtitle B--Revenue Increases

      Sec. 3101. Stock transfer excise tax.

      Sec. 3102. Repeal of preferential rate of tax on capital gains.

      Sec. 3103. Carryover basis at death.

      Sec. 3104. Miscellaneous amendments related to carryover basis.

TITLE IV--APPROPRIATIONS

      Sec. 4001. Appropriations.

      Sec. 4002. Designation as emergency requirement.

TITLE I--PHYSICAL CAPITAL INVESTMENT

Subtitle A--Highways and Mass Transit

SEC. 1001. HIGHWAY PROGRAMS.

    (a) Section 1003 of the Intermodal Surface Transportation Efficiency Act of 1991 (105 Stat. 1918-1922) is amended by adding at the end the following:

    ‘(d) ADDITIONAL FUNDING FROM HTF- In addition to amounts made available by subsection (a), for the purpose of carrying out the provisions of title 23, United States Code, the following sums are authorized to be appropriated out of the Highway Trust Fund (other than the Mass Transit Account):

      ‘(1) INTERSTATE MAINTENANCE PROGRAM- For the interstate maintenance program $3,500,000,000 for each of fiscal years 1995 and 1996.

      ‘(2) SURFACE TRANSPORTATION PROGRAM- For the surface transportation program $3,000,000,000 for each of fiscal years 1995 and 1996.

      ‘(3) BRIDGE PROGRAM- For the bridge program $3,500,000,000 for each of fiscal years 1995 and 1996.’.

    (b) NON-APPLICABILITY OF OBLIGATION CEILING- Funds authorized by the amendment made by subsection (a) shall not be subject to any obligation limitation.

SEC. 1002. FEDERAL TRANSIT ACT PROGRAMS.

    (a) AUTHORIZATION OF APPROPRIATIONS- Section 21 of the Federal Transit Act (49 U.S.C. App. 1617) is amended by adding at the end the following:

    ‘(h) ADDITIONAL FUNDING-

      ‘(1) FORMULA GRANT PROGRAMS-

        ‘(A) FROM THE TRUST FUND- There shall be available from the Mass Transit Account of the Highway Trust Fund to carry out section 18 of this Act $125,000,000 for each of fiscal years 1995 and 1996. Such sums shall remain available until expended.

        ‘(B) FROM GENERAL FUNDS- There are authorized to be appropriated to carry out section 9 of this Act $825,000,000 for each of fiscal years 1995 and 1996. Such sums shall remain available until expended.

      ‘(2) SECTION 3 DISCRETIONARY AND FORMULA GRANTS- There shall be available from the Mass Transit Account of the Highway Trust Fund only to carry out section 3 of this Act $650,000,000 for each of fiscal years 1995 and 1996. Such sums shall remain available until expended.’.

    (b) CONTRACT AUTHORITY- Section 21(b)(4) of such Act is amended--

      (1) by striking ‘or (b)(3)’ and inserting ‘(b)(3), (h)(1)(A), or (h)(2)’; and

      (2) by striking ‘or (b)(2)’ and inserting ‘, (b)(2), or (h)(1)(B)’.

    (c) NON-APPLICABILITY OF OBLIGATION CEILING- Funds authorized by the amendment made by subsection (a) shall not be subject to any obligation limitation.

Subtitle B--Airports

SEC. 1101. AIRPORT IMPROVEMENT PROGRAM.

    (a) FUNDING- Section 505(a) of the Airport and Airway Improvement Act of 1982 (49 U.S.C. App. 2204(a)) is amended by inserting after the second sentence the following: ‘In addition to amounts made available by the preceding sentence, there shall be available to the Secretary for such grants (including grants for airport noise compatibility planning under such Act) and for carrying out noise compatibility programs or parts thereof under such section 104(c) $1,000,000,000 for each of fiscal years 1995 and 1996.’.

    (b) OBLIGATION AUTHORITY- Section 505(b) of such Act is amended by striking ‘1993’ and inserting ‘1996’.

Subtitle C--Railroads

SEC. 1201. LOCAL RAIL FREIGHT ASSISTANCE.

    Section 5(q) of the Department of Transportation Act (49 U.S.C. App. 1654(q)) is amended--

      (1) by striking ‘and $30,000,000 for fiscal year 1994’ and inserting in lieu thereof ‘$30,000,000 for fiscal year 1994, $1,000,000,000 for fiscal year 1995, and $1,000,000,000 for fiscal year 1996’; and

      (2) by striking ‘after September 30, 1994’ and inserting in lieu thereof ‘after September 30, 1996’.

Subtitle D--Water and Sewage Treatment Facilities

SEC. 1301. STATE WATER POLLUTION CONTROL REVOLVING FUNDS.

    Section 607 of the Federal Water Pollution Control Act (33 U.S.C. 1387) is amended--

      (1) by striking ‘and’ at the end of paragraph (4);

      (2) by striking the period at the end of paragraph (5) and inserting a semicolon; and

      (3) by adding at the end the following:

      ‘(6) $4,000,000,000 for fiscal year 1995; and

      ‘(7) $4,000,000,000 for fiscal year 1996.’.

Subtitle E--Environmental Restoration

SEC. 1401. ENVIRONMENTAL RESTORATION AT FACILITIES OF THE DEPARTMENT OF DEFENSE AND DEPARTMENT OF ENERGY.

    (a) AUTHORIZATION OF APPROPRIATIONS-

      (1) DEPARTMENT OF DEFENSE- There is hereby authorized to be appropriated to the Secretary of Defense for each of fiscal years 1995 and 1996 for environmental restoration the following:

        (A) $1,000,000,000, for deposit into the Defense Environmental Restoration Account established in section 2703 of title 10, United States Code.

        (B) $1,000,000,000, for deposit into the Department of Defense Base Closure Account 1990 established in section 2906(a) of the National Defense Authorization Act for Fiscal Year 1991 (Public Law 101-510; 10 U.S.C. 2687 note), of which--

          (i) $500,000,000 shall be used to carry out environmental restoration activities at military installations selected in 1993 for closure or realignment under the Defense Base Closure and Realignment Act of 1990 (part A of title XXIX of Public Law 101-510; 10 U.S.C. 2687 note); and

          (ii) $500,000,000 shall be used to carry out environmental restoration activities at military installations selected in 1995 for closure or realignment under such Act.

      (2) DEPARTMENT OF ENERGY- There is appropriated to the Secretary of Energy for each of fiscal years 1995 and 1996 for environmental restoration and waste management at defense nuclear facilities the following:

        (A) $1,000,000,000, for environmental restoration.

        (B) $750,000,000, for waste management.

        (C) $250,000,000, for corrective activities.

    (b) APPROPRIATIONS FOR FISCAL YEAR 1995- The following sums are appropriated, out of any money in the Treasury not otherwise appropriated, for the fiscal year ending September 30, 1995, to implement the provisions of this Act, namely:

DEPARTMENT OF DEFENSE

OPERATION AND MAINTENANCE

ENVIRONMENTAL RESTORATION, DEFENSE

    For the Department of Defense, for deposit into the Defense Environmental Restoration Account established in section 2703 of title 10, United States Code, $1,000,000,000, to remain available until transferred.

MILITARY CONSTRUCTION

BASE REALIGNMENT AND CLOSURE ACCOUNT, PART II

    For deposit into the Department of Defense Closure Account 1990 established by section 2906(a) of the National Defense Authorization Act for Fiscal Year 1991 (Public Law 101-510; 10 U.S.C. 2687 note), $500,000,000, to be available solely for environmental restoration and to remain available until expended.

BASE REALIGNMENT AND CLOSURE ACCOUNT, PART III

    For deposit into the Department of Defense Closure Account 1990 established by section 2906(a) of the National Defense Authorization Act for Fiscal Year 1991 (Public Law 101-510; 10 U.S.C. 2687 note), $500,000,000, to be available solely for environmental restoration and to remain available until expended.

DEPARTMENT OF ENERGY

DEFENSE ENVIRONMENTAL RESTORATION AND WASTE MANAGEMENT

    For Department of Energy expenses necessary for atomic energy defense environmental restoration and waste management activities, $2,000,000,000, to remain available until expended: Provided, That of the funds appropriated herein, $1,000,000,000 shall be available for environmental restoration, $750,000,000 shall be available for waste management, and $250,000,000 shall be available for corrective activities.

    (c) APPROPRIATIONS FOR FISCAL YEAR 1996- The following sums are appropriated, out of any money in the Treasury not otherwise appropriated, for the fiscal year ending September 30, 1996, to implement the provisions of this Act, namely:

DEPARTMENT OF DEFENSE

OPERATION AND MAINTENANCE

ENVIRONMENTAL RESTORATION, DEFENSE

    For the Department of Defense, for deposit into the Defense Environmental Restoration Account established in section 2703 of title 10, United States Code, $1,000,000,000, to remain available until transferred.

MILITARY CONSTRUCTION

BASE REALIGNMENT AND CLOSURE ACCOUNT, PART II

    For deposit into the Department of Defense Closure Account 1990 established by section 2906(a) of the National Defense Authorization Act for Fiscal Year 1991 (Public Law 101-510; 10 U.S.C. 2687 note), $500,000,000, to be available solely for environmental restoration and to remain available until expended.

BASE REALIGNMENT AND CLOSURE ACCOUNT, PART III

    For deposit into the Department of Defense Closure Account 1990 established by section 2906(a) of the National Defense Authorization Act for Fiscal Year 1991 (Public Law 101-510; 10 U.S.C. 2687 note), $500,000,000, to be available solely for environmental restoration and to remain available until expended.

DEPARTMENT OF ENERGY

DEFENSE ENVIRONMENTAL RESTORATION AND WASTE MANAGEMENT

    For Department of Energy expenses necessary for atomic energy defense environmental restoration and waste management activities, $2,000,000,000, to remain available until expended: Provided, That of the funds appropriated herein, $1,000,000,000 shall be available for environmental restoration, $750,000,000 shall be available for waste management, and $250,000,000 shall be available for corrective activities.

    (d) DESIGNATION AS EMERGENCY REQUIREMENT- The entire amount appropriated under this section is designated by Congress as an emergency requirement pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985.

Subtitle F--Community Development Assistance

CHAPTER 1--COMMUNITY DEVELOPMENT BLOCK GRANTS

SEC. 1501. AUTHORIZATION OF APPROPRIATIONS.

    For assistance under section 106 of the Housing and Community Development Act of 1974, there is authorized to be appropriated, in addition to any amounts authorized under section 103 of such Act, $2,000,000,000 for fiscal year 1995 and $2,000,000,000 for fiscal year 1996.

CHAPTER 2--COMMUNITY BANKING AND ECONOMIC EMPOWERMENT ACT

SEC. 1511. SHORT TITLE.

    This chapter may be cited as the ‘Community Banking and Economic Empowerment Act’.

SEC. 1512. AUTHORITY OF SECRETARY.

    (a) IN GENERAL- To make credit and credit-related services available to low-income families and others not adequately served by traditional lending institutions and promote community development, economic development, and revitalization of low-income neighborhoods, the Secretary of Housing and Urban Development shall provide, to the extent amounts are provided in appropriation Acts--

      (1) assistance under section 1514 to community development lenders and other eligible entities that have submitted applications under section 1516 that have been approved by the Secretary and have entered into agreements with the Secretary under section 1517; and

      (2) technical assistance under section 1519 to assist in organizing and operating community development lenders.

    (b) CONSULTATION- The Secretary of Housing and Urban Development shall consult with the Secretary of the Treasury in developing, implementing, and carrying out this chapter, and in providing assistance to community development lenders under section 1514.

SEC. 1513. ELIGIBLE COMMUNITY DEVELOPMENT LENDERS.

    (a) IN GENERAL- Applications for assistance under section 1514 may be submitted only by the following entities:

      (1) COMMUNITY DEVELOPMENT LENDERS- Any corporation, partnership, organization, agency, person, or other entity (which may include for-profit and nonprofit entities, community development corporations, microenterprise organizations, community organizations, and other entities and persons) that--

        (A) is organized for the purposes described in subsection (b); and

        (B) is not a depository institution (as such term is defined in section 3(c) of the Federal Deposit Insurance Act) or a credit union, or an affiliate or subsidiary of a depository institution or credit union (including community development credit unions, savings and loan associations, and other depository institutions).

      (2) ELIGIBLE ENTITIES ESTABLISHING COMMUNITY DEVELOPMENT LENDERS- Any corporation, partnership, organization, agency, person, or other entity that--

        (A) is engaged in organizing or establishing a community development financial institution; and

        (B) is not a depository institution (as such term is defined in section 3(c) of the Federal Deposit Insurance Act) or a credit union, or an affiliate or subsidiary of a depository institution or credit union (including community development credit unions, savings and loan associations, and other depository institutions).

    (b) PURPOSE- To be eligible to receive assistance under section 1514, a community development lender applying for such assistance (or to be established by the eligible entity applying for such assistance) shall have among its principal purposes making credit and credit-related services available to low-income families and in low-income neighborhoods and promoting the development and revitalization of low-income neighborhoods. The community development lender shall carry out such purpose by making loans to individuals, families, businesses, organizations, and other entities and conducting such other activities and services relating to making loans (such as loan counseling and servicing) as the lender considers appropriate. Such loans may include mortgage loans, loans for housing development, rehabilitation, and weatherization, business development and assistance loans, personal loans, operating loans, construction loans, loans for community and economic development activities, and other repayable assistance.

    (c) GOVERNANCE- To be eligible to receive assistance under section 1514, a community development lender applying for such assistance (or to be established by the eligible entity applying for such assistance) shall be governed by a board of directors that--

      (1) is solely responsible for determining policy for the community development lender with respect to management and operations, lending activities, loan standards and implementation, employment, asset management, and any other issues; and

      (2) includes among its members a significant number of members who are individuals meeting the requirements of any of subparagraphs (A) through (D), who shall include--

        (A) individuals who are members of low-income families;

        (B) individuals who are residents of the low-income neighborhood served by the lender;

        (C) individuals who are experienced in providing financial assistance or financial advice to low-income individuals or residents, businesses, or organizations in low-income neighborhoods; and

        (D) individuals who have significant experience in serving the low-income neighborhood served by the lender, the community in which such neighborhood is located, or any other low-income neighborhood.

SEC. 1514. CAPITAL AND OPERATING ASSISTANCE FOR COMMUNITY DEVELOPMENT LENDERS.

    (a) AUTHORITY- The Secretary may provide assistance under this section to community development lenders and eligible entities establishing community development lenders, for the purposes under subsection (b).

    (b) PURPOSES- Assistance under this section may be used only as provided in the assistance agreement under section 1517 for the community development lender or eligible entity and only for the following purposes:

      (1) FEASIBILITY STUDIES- To carry out studies to determine the feasibility of establishing a program to make loans for the purposes under section 1513(b) within a particular low-income neighborhood.

      (2) CAPITAL ASSISTANCE- To provide capital for the community development lender--

        (A) to establish or supplement amounts available for loans for the purposes under section 1513(b);

        (B) to provide credit enhancement for loans for the purposes under section 1513(b);

        (C) to establish or supplement capital reserves of the lender; and

        (D) to carry out other activities, as the Secretary may provide.

      (3) OPERATING COSTS- To provide amounts to cover operating costs of the community development lender, including marketing and management activities, business planning and counseling services, staff training, planning costs, costs relating to establishing the community development lender or changing the activities or management of a financial institution or other organization or entity to include community development lending activities.

    (c) OTHER TERMS- The Secretary may establish any terms and conditions of assistance under this section that the Secretary considers appropriate to carry out the purposes of this subtitle, including limitations on the amount of assistance provided to any community development lender or eligible entity, limitations on the number of applications that may be approved for any single community development lender or eligible entity, and requirements and limitations for the amounts and timing of the disbursement of assistance.

    (d) NON-FEDERAL FUNDS REQUIREMENT- The Secretary may not provide assistance under this section to any eligible entity for the establishment of a community development lender in an amount in excess of 9 times the amount that the entity certifies, as the Secretary shall require, that the entity will contribute from non-Federal sources to the community development lender established with amounts provided under this section.

SEC. 1515. REQUIREMENTS OF ASSISTED COMMUNITY DEVELOPMENT LENDERS.

    (a) PROHIBITION OF DIRECT ASSISTANCE- A community development lender that receives assistance under section 1514 (or established by an eligible entity that receives such assistance) may not provide amounts to any person from assistance received under such section in the form of a grant or nonrepayable advance or on any other nonrepayable basis, during the assistance agreement term established by the assistance agreement for the lender under section 1517.

    (b) LOW-INCOME FAMILY REQUIREMENTS-

      (1) REQUIREMENT- In each calendar year during the applicable assistance agreement term, a community development lender that receives assistance under section 1514 (or established by an eligible entity that receives such assistance) shall make loans under section 1513(b) benefiting low-income families--

        (A) in a number that is not less than 50 percent of the total number of loans made by the lender during such year; and

        (B) in an amount such that the sum of the principal amounts of such loans is not less than 50 percent of the sum of the principal amounts of all loans made by the lender during such year.

      (2) DETERMINATION OF BENEFIT-

        (A) DIRECT BENEFIT- A loan shall be considered to benefit a low-income family for purposes of paragraph (1) if the loan--

          (i) is made to such a family;

          (ii) is made for an activity that is carried out in a low-income neighborhood and for providing services for such families;

          (iii) is made for providing facilities designed for the use predominantly by such families; or

          (iv) is made for an activity that involves employment of persons, a majority of whom are members of such families.

        (B) ACTIVITIES OF GENERAL BENEFIT- In any case in which an activity assisted with a loan is designed to serve an area generally and is clearly designed to meet identified needs of low-income families in such area, such loan or activity shall be considered to benefit low-income families for purposes of paragraph (1) to the extent that the area is a low-income neighborhood.

        (C) HOUSING- A loan for the acquisition, construction, or rehabilitation of property to provide housing shall be considered to benefit low-income families for purposes of paragraph (1) only to the extent that such housing, upon completion, is occupied by low-income families.

    (c) LOW-INCOME NEIGHBORHOOD REQUIREMENTS- In each calendar year during the applicable assistance agreement term, a community development lender that receives assistance under section 1514 (or established by an eligible entity that receives such assistance) shall make loans under section 1513(b) for facilities or activities that serve the low-income neighborhood served by the lender--

      (1) in a number that is not less than 50 percent of the total number of loans made by the lender during such year; and

      (2) in an amount such that the sum of the principal amounts of such loans is not less than 50 percent of the sum of the principal amounts of all loans made by the lender during such year.

    (d) EMPLOYMENT PLAN- During the applicable assistance agreement term, a community development lender that receives assistance under section 1514 (or established by an eligible entity that receives such assistance) shall establish and comply with a written employment plan under this subsection. The Secretary shall, by regulation, require that each employment plan under this subsection set forth a policy for hiring employees of the community development lender that--

      (1) furthers the purposes of this subtitle by providing employment opportunities in the neighborhood served by the community development lender for residents of the neighborhood; and

      (2) gives preference in hiring to--

        (A) individuals who are members of low-income families residing in the neighborhood served by the community development lender; and

        (B) individuals who were formerly employed in positions at any office or branch of a depository institution, credit union, or other financial institution that is or was located in the neighborhood served by the community development lender and who are not employed in such positions because of the closing or reorganization of the office, branch, or institution, or because of the elimination of such positions or any decrease in compensation paid for such positions.

    (e) RESERVE REQUIREMENTS-

      (1) MAINTENANCE OF RESERVE- During the applicable assistance agreement term, a community development lender that receives assistance under section 1514 (or established by an eligible entity that receives such assistance) shall maintain, at all times, a reserve against losses on loans and any other losses in the amount determined under paragraph (2).

      (2) ESTABLISHMENT OF REQUIREMENTS- The Secretary shall, by regulation, establish reserve amounts to be maintained by community development lenders taking into consideration the purposes of such lenders, the nature of lending engaged in by such lenders, the size and amount of business of such lenders, the need for such lending in the communities and low-income neighborhoods served by such lenders, and any other factors the Secretary considers appropriate.

      (3) REPLENISHMENT- If at any time during the applicable assistance agreement term, the amount reserved by a community development lender under this subsection is less than the amount required to be reserved under the regulations issued pursuant to paragraph (2), the Secretary may take such actions as the Secretary may, by regulation, provide that are consistent with the purposes of this subtitle, including withholding any assistance amounts to be provided to the lender under the agreement under section 1517 but not yet disbursed and requiring the lender to replenish the reserve by regular contributions in the amounts determined by the Secretary.

    (f) STAFF- During the applicable assistance agreement term, a community development lender that receives assistance under section 1514 (or established by an eligible entity that receives assistance under such section) shall maintain personnel qualified and capable of conducting the activities described under section 1513(b) and the other activities of the lender relating to community development, as the Secretary may require.

SEC. 1516. APPLICATION AND APPROVAL FOR ASSISTANCE.

    (a) REQUIREMENT- The Secretary may provide assistance under section 1514 only to community development lenders and eligible entities establishing community development lenders that have submitted applications under this section to the Secretary that have been approved under subsection (d).

    (b) TIME AND MANNER- The Secretary shall establish requirements regarding the submission of applications under this section, which shall include requirements for the time and manner of submission.

    (c) CONTENTS- An application under this section shall contain the following information:

      (1) COMMUNITY DEVELOPMENT LENDER- A description of--

        (A) the existing community development financial institution to be assisted; or

        (B) in the case of an eligible entity submitting the application for assistance, the community development lender to be established by the eligible entity, the existing relationship between the eligible entity and the community development lender to be established, and any continuing relationship that will exist between the eligible entity and the community development lender.

      (2) LOW-INCOME NEIGHBORHOOD SERVED- Identification and a description of the low-income neighborhood in which the community development lender is, or is to be, located and conduct its principal operations and a description of the existing availability of credit and credit-related services in such neighborhood.

      (3) TYPES OF BUSINESS- A description of the types of business engaged in, or to be engaged in, by the community development lender and of the need for such business in the neighborhood served by the community development lender.

      (4) BOARD OF DIRECTORS AND OPERATION- In the case of an application by an existing community development lender, a description of the board of directors of the community development lender and the structure of the management and operations of the community development lender.

      (5) FINANCIAL EXPERTISE- In the case of an application by an existing community development lender, a description of any lending or financial expertise or experience of the members of the board of directors of the community development lender and the managers or employees of the lender.

      (6) FINANCIAL HISTORY- In the case of an application by an existing community development lender, any financial information regarding the community development lender that the Secretary considers necessary in determining whether to provide assistance to the community development lender, including information regarding any history of compliance with the requirements of section 1515.

      (7) REGULATION- Identification of any Federal, State, and local laws, ordinances, and regulations under which the financial operations of the community development lender are, or are to be, subject to the supervision, approval, regulation, or insuring of any agency or other instrumentality of the Federal Government or the State or local government and identification of the agency or instrumentality.

      (8) NEW COMMUNITY DEVELOPMENT LENDERS- In the case of an application by an eligible entity for assistance for the establishment of a community development lender, any financial, organizational, or other information that the Secretary considers necessary in determining whether to provide such assistance.

      (9) ASSISTANCE- A description of the amount of assistance for which the community development lender or eligible entity is applying and a description of the purposes for which such assistance will be used.

      (10) EMPLOYMENT PLAN- An employment plan in accordance with the regulations issued under section 1515(d).

      (11) COMPLIANCE WITH REQUIREMENTS- A description of the actions to be taken by the community development lender (or the eligible entity establishing the community development lender) to ensure compliance with the requirements under section 1515.

      (12) OTHER- Any other information the Secretary considers appropriate to carry out, and ensure compliance with, the provisions of this subtitle.

    (d) REVIEW AND APPROVAL-

      (1) REVIEW- The Secretary shall promptly review each application submitted under this section.

      (2) MINIMUM STANDARDS FOR APPROVAL- The Secretary may approve an application under this section for assistance only if the Secretary determines, based on the information contained in an application, that--

        (A) the lender will operate in accordance with the requirements of this chapter and in a financially safe and sound manner; and

        (B) the assistance is necessary and appropriate to facilitate the provision of credit and credit-related services in the neighborhood served by the lender to low-income families and others not adequately served by traditional lending institutions.

      (3) SELECTION CRITERIA- The Secretary shall approve applications under this subsection based on competitive selection criteria, which the Secretary shall establish by regulation.

      (4) NOTIFICATION- The Secretary shall promptly notify each applicant of the approval or disapproval of the applicant’s application. In the case of any disapproval, such notification shall include a statement of the reasons for the disapproval and of the availability of technical assistance under section 1519.

SEC. 1517. ASSISTANCE AGREEMENTS.

    (a) REQUIREMENT- The Secretary may not provide assistance under section 1514 for an application for such assistance approved under section 1516 unless the community development lender or eligible entity submitting the application enters into a written agreement with the Secretary under this section.

    (b) CONTENTS- An agreement under this section shall provide the following:

      (1) NEIGHBORHOOD SERVED- A delineation of the boundaries of the low-income neighborhood within which the community development lender shall be located and in which the lender shall conduct its principal operations.

      (2) COMPLIANCE WITH REQUIREMENTS- That the community development lender shall comply with the requirements under section 1515.

      (3) SAFE AND SOUND OPERATION- That the community development lender shall operate in a financially safe and sound manner.

      (4) BOOKS AND RECORDS- That the community development lender shall operate and maintain books and records in accordance with the regulations issued by the Secretary under section 1518 and will provide the Secretary with access to such books and records for purposes of determining the compliance of the lender with the requirements of this subtitle and the provisions of the agreement under this section.

      (5) PERFORMANCE STANDARDS AND SANCTIONS- Standards for the performance and financial operation of the community development lender appropriate for the particular lender, including standards relating to the lending volume, portfolio performance, personnel development, service to the neighborhood served by the lender, and sanctions for failure to comply with such standards.

      (6) REPORTS- That the community development lender (or the eligible entity establishing the community development lender) shall submit reports to the Secretary including such information, at such times, and in such manner, as required by the Secretary and provided in the agreement.

      (7) ASSISTANCE- The amount of assistance to be provided to the community development lender (or eligible entity establishing the community development lender), the purposes under section 1514(b) for which such assistance will be used, and the timing and terms of the disbursement of such assistance.

      (8) OTHER CONDITIONS- That the community development lender shall comply with any other written conditions (which shall be contained in the agreement) that the Secretary considers appropriate to carry out the purposes of this subtitle.

      (9) PERIOD OF COMPLIANCE- The period during which the community development lender shall comply with the provisions of the agreement under this section, which shall not be shorter than 12 months in duration.

    (c) FEDERAL OR OTHER REGULATION OF LENDER- An agreement under this section may not be construed to annul, alter, affect, or exempt the community development lender receiving assistance pursuant to the agreement (or established by the eligible entity receiving such assistance) from complying with any Federal, State, or local laws, ordinances, and regulations applicable to the financial and other operations of community development lender or with any orders or rulings of any agency or instrumentality of the Federal Government or the State or local government responsible for the supervision, approval, regulation, or insuring of the community development lender.

SEC. 1518. BOOKS, RECORDS, AND AUDITS.

    (a) BOOKS AND RECORDS- During the applicable assistance agreement term, a community development lender that receives assistance under section 1514 (or established by an eligible entity that receives such assistance) shall maintain the books and records of the lender in the manner that the Secretary shall, by regulation, require.

    (b) EXAMINATIONS AND AUDITS-

      (1) RECERTIFICATION- The Secretary shall, not less than once each year during the applicable assistance agreement term, conduct an examination of the books, records, and financial accounts and transactions of each community development lender receiving assistance under section 1514 (or established by an eligible entity receiving assistance under such section) for the purpose of determining compliance of the lender with this subtitle and the provisions of the agreement.

      (2) OTHER- During the applicable assistance agreement term, the Secretary may conduct any other examinations and audits of such a community development lender and its accounts and transactions that the Secretary considers appropriate to determine the condition of the lender and compliance with the provisions of the assistance agreement.

SEC. 1519. TECHNICAL ASSISTANCE FOR ORGANIZING AND OPERATING COMMUNITY DEVELOPMENT LENDERS.

    (a) ASSISTANCE TO ESTABLISH COMMUNITY DEVELOPMENT LENDERS- The Secretary shall carry out a program under this subsection to provide technical assistance in establishing community development financial institutions, which shall include--

      (1) educating organizations, financial institutions, governmental agencies, and other entities and persons in low-income neighborhoods and elsewhere regarding the need for, capabilities, functions, and organization of community development lenders;

      (2) educating and training organizations, financial institutions, and other entities and persons in organizing community development lenders and applying for assistance under this subtitle for establishment of community development lenders;

      (3) assisting entities and persons interested in establishing community development lenders in identifying community lending needs and meeting the application requirements and preparing applications under this subtitle; and

      (4) assisting community development lenders and eligible entities whose applications have been disapproved under section 1516(d) to submit approvable applications for assistance under section 1514.

    (b) ASSISTANCE FOR OPERATING COMMUNITY DEVELOPMENT LENDERS- The Secretary shall carry out a program under this subsection to provide technical assistance to community development lenders, which shall include--

      (1) education and training regarding management and operation of the lenders, including designing and utilizing lending practices to target credit to low-income families and neighborhoods, complying with financial and accounting standards under the agreement for the lender under section 1517, and implementing effective asset management and fund development techniques;

      (2) collecting and disseminating information from various community development lenders regarding successful management and operation techniques, lending practices, and lending activities; and

      (3) training personnel of lenders to meet requirements under section 1515(f).

    (c) PROVISION OF ASSISTANCE- The Secretary may provide technical assistance under this section directly or through public or private organizations pursuant to contracts with such organizations or grants to such organizations.

    (d) ADMINISTRATION- The Secretary may provide for making technical assistance under this section available to community development lenders and eligible entities that receive assistance under section 1514 pursuant to a request for such assistance in an application under section 1516, approval of the application, and the inclusion of terms in the assistance agreement under section 1517 providing for such assistance.

SEC. 1520. RELATIONSHIP TO COMMUNITY REINVESTMENT ACT OF 1977.

    Section 807(b) of the Community Reinvestment Act of 1977 (12 U.S.C. 2906(b)) is amended by adding at the end the following new paragraph:

      ‘(3) COORDINATION WITH COMMUNITY BANKING AND ECONOMIC EMPOWERMENT ACT- No regulated financial institution may receive a rating of ‘outstanding record of meeting community credit needs’ or ‘satisfactory record of meeting community credit needs’ solely on the basis of loans to or investments in community development lenders.’.

SEC. 1521. REPORTS TO CONGRESS.

    The Secretary shall submit a report to the Congress not later than July 1 of each year in which the Secretary provides assistance under section 1514 to community development lenders or eligible entities, which shall describe--

      (1) the assistance provided under such section, the purposes for which such assistance will be used, the neighborhoods to be served by the community development lenders assisted, and the activities of community development lenders assisted; and

      (2) any technical assistance provided under section 1519 by the Secretary.

SEC. 1522. REGULATIONS.

    The Secretary of Housing and Urban Development, jointly with the Secretary of the Treasury, shall issue any regulations necessary to carry out this subtitle.

SEC. 1523. DEFINITIONS.

    For purposes of this chapter:

      (1) The term ‘assistance agreement’ means an agreement under section 1517 between the Secretary and a community development lender or eligible entity receiving assistance under section 1514.

      (2) The term ‘assistance agreement term’ means the period established by an assistance agreement during which the community development lender that receives assistance under section 1514 pursuant to the agreement (or established by the eligible entity that receives such assistance) shall comply with the provision of the agreement.

      (3) The term ‘community development financial institution’ means a financial institution described in section 1513(a)(1) that meets the requirements under subsections (b) and (c) of section 1513.

      (4) The term ‘community development lender’ means a community development financial institution that meets the requirements under subsections (b) and (c) of section 1513.

      (5) The term ‘eligible entity’ means any entity described in section 1513(a)(2).

      (6) The term ‘low-income family’ means any individual or family whose income does not exceed 80 percent of the median income for the area, as determined by the Secretary with adjustments for smaller and larger families; except that the Secretary may establish income ceilings higher or lower than 80 percent of the median for the area on the basis of any findings by the Secretary that such variations are necessary because of unusually high or low prevailing incomes.

      (7) The term ‘low-income neighborhood’ means any area within a city, county, town, township, parish, village, or other general purpose subdivision of a State--

        (A) that has a continuous boundary; and

        (B) in which not less than 20 percent of the residents are members of low-income families.

      (8) The term ‘low-income neighborhood served by a community development lender’ means the low-income neighborhood identified in an application under section 1516 and an assistance agreement under section 1517 as the area in which the community development lender that receives assistance pursuant to such application and agreement (or established by the eligible entity that receives such assistance) will be located and conduct its principal operations.

      (9) The term ‘Secretary’ means the Secretary of Housing and Urban Development.

SEC. 1524. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated for each of fiscal years 1995 and 1996--

      (1) $800,000,000 for assistance under section 1514; and

      (2) $200,000,000 for providing technical assistance under section 1519.

Subtitle G--Education Infrastructure

SEC. 1601. SHORT TITLE.

    This subtitle may be cited as the ‘Education Infrastructure Act of 1994’.

SEC. 1602. FINDINGS.

    The Congress finds that--

      (1) improving the quality of public elementary and secondary school libraries, media centers, and facilities will help our Nation meet the National Education Goals;

      (2) Federal, State, and local funding for the repair, renovation, alteration and construction of public elementary and secondary school libraries, media centers, and facilities has not adequately reflected need; and

      (3) the challenges facing our Nation’s public elementary and secondary schools require the concerted and collaborative efforts of all levels of government and all sectors of the community.

SEC. 1603. PURPOSE.

    It is the purpose of this subtitle to help our Nation meet the National Education Goals through the repair, renovation, alteration and construction of public elementary and secondary school libraries, media centers, and facilities, used for academic or vocational instruction.

SEC. 1604. DEFINITIONS.

    For purposes of this subtitle--

      (1) the term ‘alteration’ refers to any change to an existing property for use for a different purpose or function;

      (2) the term ‘construction’ refers to the erection of a building, structure, or facility, including the concurrent installation of equipment, site preparation, associated roads, parking, and utilities, which provides area or cubage not previously available, including--

        (A) freestanding structures, additional wings, or floors, enclosed courtyards or entryways, and any other means to provide usable program space that did not previously exist; and

        (B) the complete replacement of an existing facility;

      (3) the term ‘eligible local educational agency’ means a local educational agency, as such term is defined in section 1471 of the Elementary and Secondary Education Act of 1965, which demonstrates in the application submitted under section 1607 that such agency--

        (A) has urgent repair, renovation, alteration and construction needs for its public elementary or secondary school libraries, media centers, and facilities, used for academic or vocational instruction; and

        (B) serves large numbers or percentages of disadvantaged students;

      (4) the term ‘renovation’ refers to any change to an existing property to allow its more efficient use within such property’s designated purpose;

      (5) the term ‘repair’ refers to the restoration of a failed or failing real property facility, component, or a building system to such a condition that such facility, component, or system may be used effectively for its designated purpose, if, due to the nature or extent of the deterioration or damage to such facility, component, or system, such deterioration or damage cannot be corrected through normal maintenance; and

      (6) the term ‘Secretary’, unless otherwise specified, means the Secretary of Education.

SEC. 1605. IMPROVEMENT OF PUBLIC ELEMENTARY AND SECONDARY EDUCATION FACILITIES PROGRAM AUTHORIZED.

    (a) PROGRAM AUTHORITY- From amounts appropriated pursuant to the authority of subsection (b) in any fiscal year, the Secretary shall award grants to eligible local educational agencies having applications approved under section 1606 to carry out the authorized activities described in section 1607.

    (b) AUTHORIZATION OF APPROPRIATIONS- There are to be appropriated $3,000,000,000 for fiscal year 1995, and such sums as may be necessary for each of the fiscal years 1996 through 2004, to carry out this subtitle.

SEC. 1606. APPLICATIONS.

    (a) CONTENTS REQUIRED- Each eligible local educational agency desiring to receive a grant under this subtitle shall submit an application to the Secretary. Each such application shall--

      (1) contain an assurance that such application was developed in consultation with parents and classroom teachers; and

      (2) include--

        (A) a description of each architectural, civil, structural, mechanical, electrical, or telephone line, deficiency to be corrected with funds provided under this subtitle, including the priority for the repair of the deficiency;

        (B) a description of the corrective action to be supported with funds provided under this subtitle;

        (C) a cost estimate of the proposed corrective action;

        (D) an identification of the total amount and percentage of such agency’s budget used in the preceding fiscal year for the maintenance, repair, renovation, alteration, and construction of public elementary and secondary school libraries, media centers, and facilities;

        (E) a description of how such agency plans to maintain the repair, renovation, alteration, or construction supported with funds provided under this subtitle;

        (F) a description of the extent to which the repair, renovation, alteration, or construction will help the Secretary meet the goals described in section 1609(1)(A); and

        (G) such other information as the Secretary may reasonably require.

    (b) PRIORITIES IN SELECTION OF APPLICATIONS- In selecting applications for the award of grant funds under this subtitle, the Secretary shall give priority to local educational agencies that--

      (1) are seeking funds for the repair, renovation, alteration, or construction of facilities that are the oldest for which funds are sought under this subtitle;

      (2) have the highest number of facilities with health and safety hazards from one or more of the following sources: asbestos, lead, radon, plumbing, electrical wiring; and

      (3) serve areas with high rates of unemployment.

SEC. 1607. AUTHORIZED ACTIVITIES.

    Each eligible local educational agency receiving a grant under this subtitle shall use such grant funds to help our Nation meet the National Education Goals through the repair, renovation, alteration, and construction of a public elementary or secondary school library, media center, or facility, used for academic or vocational instruction, including--

      (1) inspection of such library, center, or facility;

      (2) repairing such library, center, or facility that poses a health or safety risk to students;

      (3) upgrading of and alteration to such library, center, or facility in order to accommodate new instructional technology;

      (4) meeting the requirements of section 504 of the Rehabilitation Act of 1973 and the Americans with Disabilities Act of 1990;

      (5) removal or containment of severely hazardous material such as asbestos, lead, and radon using a cost-effective method;

      (6) installation or upgrading of school security and communications systems;

      (7) energy conservation;

      (8) meeting Federal, State, or local codes related to fire, air, light, noise, waste disposal, building height, or other codes passed since the initial construction of such library, center, or facility; and

      (9) replacing an old library, center, or facility that is most cost-effectively torn down rather than renovated.

SEC. 1608. REQUIREMENTS.

    (a) SPECIAL RULES-

      (1) MAINTENANCE OF EFFORT- An eligible local educational agency may receive a grant under this subtitle for any fiscal year only if the Secretary finds that either the combined fiscal effort per student or the aggregate expenditures of that agency and the State with respect to the provision of free public education by such local educational agency for the preceding fiscal year was not less than 90 percent of such combined fiscal effort or aggregate expenditures for the fiscal year for which the determination is made.

      (2) SUPPLEMENT NOT SUPPLANT- An eligible local educational agency shall use funds received under this subtitle only to supplement the amount of funds that would, in the absence of such Federal funds, be made available from non-Federal sources for the repair and construction of school facilities used for educational purposes, and not to supplant such funds.

    (b) GENERAL LIMITATIONS-

      (1) REAL PROPERTY- No part of any grant funds under this subtitle shall be used for the acquisition of any interest in real property.

      (2) MAINTENANCE- Nothing in this subtitle shall be construed to authorize the payment of maintenance costs in connection with any projects constructed in whole or in part with Federal funds provided under this subtitle.

      (3) ENVIRONMENTAL SAFEGUARDS- All projects carried out with Federal funds provided under this subtitle shall comply with all relevant Federal, State, and local environmental laws and regulations.

      (4) APPLICABILITY OF LAWS REGARDING INDIVIDUALS WITH DISABILITIES- Sections 504 and 505 of the Rehabilitation Act of 1973 and the Americans with Disabilities Act of 1990 shall apply to projects carried out with Federal funds provided under this subtitle.

SEC. 1609. CONTRACTS.

    If a project assisted under this subtitle will be carried out pursuant to a contract, the following limitations shall apply:

      (1) MINORITY PARTICIPATION- The Secretary shall establish--

        (A) goals for the participation of small business concerns as contractors or subcontractors that meet or exceed the governmentwide goals established pursuant to section 15(g)(1) of the Small Business Act (15 U.S.C. 644(g)(1)) for the participation of such concerns in contracts supported with funds under this subtitle (and subcontracts under such contracts); and

        (B) an evaluation process for such participation that gives significant weight to the goals described in subparagraph (A).

      (2) DAVIS-BACON- All laborers and mechanics employed by contractors or subcontractors in the performance of any contract and subcontract for the repair, renovation, alteration, or construction, including painting and decorating, of any building or work that is financed in whole or in part by a grant under this subtitle, shall be paid wages not less than those determined by the Secretary of Labor in accordance with the Act of March 3, 1931 (commonly known as the Davis-Bacon Act); as amended (40 U.S.C. 276a-276a-5). The Secretary of Labor shall have the authority and functions set forth in reorganization plan of No. 14 of 1950 (15 FR 3176; 64 Stat. 1267) and section 2 of the Act of June 1, 1934 (commonly known as the Copeland Anti-Kickback Act) as amended (40 U.S.C. 276c, 48 Stat. 948).

SEC. 1610. TECHNICAL ASSISTANCE.

    The comprehensive regional centers established under section 2203 of the Elementary and Secondary Education Act of 1965 may provide assistance in the repair, renovation, alteration, and construction of public elementary or secondary school libraries, media centers, or facilities to eligible local educational agencies receiving assistance under this subtitle.

SEC. 1611. FEDERAL ASSESSMENT.

    The Secretary shall reserve not more than 1 percent of funds appropriated pursuant to the authority of section 1605(b)--

      (1) to collect such data as the Secretary determines necessary at the school, local, and State levels; and

      (2) to conduct studies and evaluations, including national studies and evaluations, in order to--

        (A) monitor the progress of projects supported with funds provided under this subtitle; and

        (B) evaluate the state of American public elementary and secondary school libraries, media centers, and facilities; and

      (3) to report to the Congress by July 1, 1997, regarding the findings of the studies and evaluations described in paragraph (2).

Subtitle H--Renewable Energy and Energy Efficiency

SEC. 1701. RENEWABLE ENERGY.

    In addition to any amounts otherwise authorized to be appropriated, there are authorized to be appropriated to the Secretary of Energy $250,000,000 for fiscal year 1995 and $250,000,000 for fiscal year 1996 for renewable energy research, development, and demonstration programs described in section 4(c) of the Renewable Energy and Efficiency Technology Competitiveness Act of 1989 (42 U.S.C. 12003(c)).

SEC. 1702. ENERGY EFFICIENCY.

    (a) FEDERAL ENERGY EFFICIENCY FUND- Section 546(b)(4) of the National Energy Conservation Policy Act (42 U.S.C. 8256(b)(4)) is amended by striking ‘$50,000,000 for fiscal year 1995’ and inserting in lieu thereof ‘$200,000,000 for fiscal year 1995, $125,000,000 for fiscal year 1996’.

    (b) NEW TECHNOLOGY DEMONSTRATION PROGRAM- Section 549(f) of the National Energy Conservation Policy Act (42 U.S.C. 8258a(f)) is amended by striking ‘, 1994, and 1995’ and inserting in lieu thereof ‘and 1994, $300,000,000 for fiscal year 1995, and $375,000,000 for fiscal year 1996’.

TITLE II--HUMAN CAPITAL INVESTMENT

Subtitle A--Job Training

SEC. 2001. HUMAN CAPITAL INVESTMENTS IN JOB TRAINING.

    (a) ESTABLISHMENT OF ALLIED HEALTH PROFESSIONAL JOB TRAINING PROGRAM UNDER THE JOB TRAINING PARTNERSHIP ACT-

      (1) IN GENERAL- Part D of title IV of the Job Training Partnership Act (29 U.S.C. 1731 et seq.) is amended by adding at the end the following new section:

‘SEC. 457. ALLIED HEALTH PROFESSIONAL JOB TRAINING PROGRAM.

    ‘(a) AUTHORIZATION- The Secretary shall provide grants to institutions of higher education to establish programs to provide job training assistance to at-risk youths and long-term welfare recipients to enable such youths and recipients to become allied health professionals.

    ‘(b) APPLICATION- The Secretary may provide a grant to an institution of higher education under subsection (a) only if such institution submits to the Secretary an application which contains such information as the Secretary may reasonably require.

    ‘(c) USE OF AMOUNTS- An institution of higher education shall use amounts received from a grant under subsection (a) to establish a program to provide job training assistance to at-risk youths and long-term welfare recipients to enable such youths and recipients to become allied health professionals. In carrying out such program, the institution of higher education shall meet the following requirements:

      ‘(1) The institution will consult with representatives from labor unions in carrying out the program and will allow such representatives to assist such institution in the recruitment and orientation of individuals for the program.

      ‘(2) The institution will disseminate information relating to the program in areas of substantial unemployment where the need for increased access to health care services is the greatest.

      ‘(3) In accepting individuals into the program, the institution will give priority to individuals from underrepresented populations.

      ‘(4) To the extent practicable, the training of an individual in the program will not exceed 2 years.

      ‘(5) To the extent practicable, the institution will provide individuals in the program with services leading to guaranteed job placement in the allied health profession.

    ‘(d) DEFINITIONS- For purposes of this section, the following definitions apply:

      ‘(1) ALLIED HEALTH PROFESSIONALS- The term ‘allied health professionals’ has the meaning given such term in section 799(5) of the Public Health Service Act (42 U.S.C. 295p(5)).

      ‘(2) FAMILY ADJUSTED INCOME-

        ‘(A) IN GENERAL- Except as provided in subparagraph (C), the term ‘family adjusted income’ means, with respect to a family, the sum of the adjusted incomes (as defined in subparagraph (B)) for all members of the family.

        ‘(B) ADJUSTED INCOME- In subparagraph (A), the term ‘adjusted income’ means, with respect to an individual, adjusted gross income (as defined in section 62(a) of the Internal Revenue Code of 1986)--

          ‘(i) determined without regard to sections 135, 162(l), 911, 931, and 933 of such Code, and

          ‘(ii) increased by the amount of interest received or accrued by the individual which is exempt from tax.

        ‘(C) PRESENCE OF ADDITIONAL DEPENDENTS- At the option of an individual, a family may include (and not be required to separate out) the income of other individuals who are claimed as dependents of the family for income tax purposes, but such individuals shall not be counted as part of the family for purposes of determining the size of the family.

      ‘(3) INSTITUTION OF HIGHER EDUCATION- The term ‘institution of higher education’ means an institution of higher education (as such term is defined in section 481 of the Higher Education Act of 1965 (20 U.S.C. 1088)) which--

        ‘(A) continues to meet the eligibility and certification requirements under title IV of such Act (20 U.S.C. 1070 et seq.); and

        ‘(B) has the capacity to train individuals to become allied health professionals, as determined by the Secretary.

      ‘(4) LONG-TERM WELFARE RECIPIENT DEFINED- The term ‘long-term welfare recipient’ means an individual who, in accordance with rules established by the Secretary, is identified as--

        ‘(A) having been substantially unemployed over a consecutive period of at least 2 years immediately preceding the date of application for the program;

        ‘(B) having, during such period, been receiving (or a member of a household that has been receiving) benefits under one or more Federal or State welfare programs identified under such rules, including the AFDC program, the SSI program, and medicaid; and

        ‘(C) having family adjusted income that does not exceed 200 percent of the applicable poverty level for the class of enrollment involved.

      ‘(5) UNDERREPRESENTED POPULATIONS- The term ‘underrepresented populations’ includes minorities, the poor, and persons with limited English proficiency.’.

      (2) AUTHORIZATION OF APPROPRIATIONS- Section 3(c) of such Act (29 U.S.C. 1502(c)) is amended--

        (A) in paragraph (1), by striking ‘There are authorized’ and inserting ‘Except as provided in paragraph (6), there are authorized’; and

        (B) by adding at the end the following new paragraph:

    ‘(6) In addition to amounts authorized to be appropriated under paragraph (1), there are authorized to be appropriated to carry out section 457 $2,000,000,000 for each of the fiscal years 1995 and 1996 and such sums as may be necessary for fiscal year 1997.’.

      (3) CONFORMING AMENDMENT- The table of contents of such Act is amended by inserting after the item relating to section 456 the following new item:

      ‘Sec. 457. Allied health professional job training program.’.

      (4) EFFECTIVE DATE- The amendments made by this subsection shall take effect on October 1, 1994, or the date of the enactment of this Act, whichever occurs later.

    (b) INCREASE IN AUTHORIZATION OF APPROPRIATIONS FOR CERTAIN YOUTH JOB TRAINING PROGRAMS-

      (1) YOUTH FAIR CHANCE PROGRAM- Section 3(c)(3) of the Job Training Partnership Act (29 U.S.C. 1502(c)(3)) is amended by striking ‘$100,000,000’ and all that follows through ‘1997’ and inserting ‘$700,000,000 for each of the fiscal years 1995 and 1996 and such sums as may be necessary for fiscal year 1997’.

      (2) YOUTHBILD PROGRAM- Section 402 of the Homeownership and Opportunity Through HOPE Act (42 U.S.C. 12870) is amended--

      (1) by redesignating subsection (c) as subsection (d); and

      (2) by inserting after subsection (b) the following new subsection:

    ‘(c) YOUTHBILD PROGRAM-

      ‘(1) IN GENERAL- There are authorized to be appropriated for activities authorized under subtitle D $400,000,000 for each of the fiscal years 1995 and 1996 and such sums as may be necessary for fiscal year 1997.

      ‘(2) AVAILABILITY- Amounts appropriated pursuant to the authorization of appropriations under paragraph (1) are authorized to remain available until expended.’.

Subtitle B--Education

SEC. 2101. EDUCATIONAL PERSONNEL.

    (a) ADULT EDUCATION- Section 313 of the Adult Education Act is amended by striking ‘1995’ and inserting ‘and $760,000,000 for each of the fiscal years 1995 and 1996’.

    (b) ELEMENTARY AND SECONDARY EDUCATION- Section 1502 of the Elementary and Secondary Education Act is amended--

      (1) by striking ‘and’; and

      (2) by inserting ‘$2,456,000,000 for each of the fiscal years 1995 and 1996,’ after ‘1993,’.

Subtitle C--Head Start

SEC. 2201. AMENDMENTS TO THE HEAD START ACT.

    Section 629(a) of the Head Start Act (42 U.S.C. 9834(a)) is amended--

      (1) by striking ‘1993, and’ and inserting ‘1993,’, and

      (2) by inserting ‘, $11,660,000 for fiscal year 1995, and $15,660,000 for fiscal year 1996’ before the period at the end.

Subtitle D--Programs Under Public Health Service Act

CHAPTER 1--FUNDING INITIATIVE FOR PROGRAMS PROVIDING HEALTH SERVICES

SEC. 2301. FUNDING INITIATIVE.

    (a) COMMUNITY HEALTH CENTERS- In addition to any other authorizations of appropriations that are available for the purpose of carrying out section 330 of the Public Health Service Act, there are authorized to be appropriated for such purpose $200,000,000 for fiscal year 1995.

    (b) MIGRANT HEALTH CENTERS- In addition to any other authorizations of appropriations that are available for the purpose of carrying out section 329 of the Public Health Service Act, there are authorized to be appropriated for such purpose $100,000,000 for fiscal year 1995.

    (c) HEALTH CARE FOR THE HOMELESS- In addition to any other authorizations of appropriations that are available for the purpose of carrying out section 340 of the Public Health Service Act, there are authorized to be appropriated for such purpose $100,000,000 for fiscal year 1995.

    (d) PREVENTIVE SERVICES REGARDING TUBERCULOSIS- In addition to any other authorizations of appropriations that are available for the purpose of carrying out section 317E of the Public Health Service Act (as added by section 301 of Public Law 103-183; 107 Stat. 2233), there are authorized to be appropriated for such purpose $150,000,000 for fiscal year 1995.

    (e) PREVENTIVE SERVICES REGARDING BREAST AND CERVICAL CANCER- In addition to any other authorizations of appropriations that are available for the purpose of carrying out the program under section 1501 of the Public Health Service Act, there are authorized to be appropriated for such purpose $120,000,000 for fiscal year 1995.

    (f) PREVENTIVE SERVICES REGARDING LEAD EXPOSURE- In addition to any other authorizations of appropriations that are available for the purpose of carrying out section 317A of the Public Health Service Act, there are authorized to be appropriated for such purpose $16,000,000 for fiscal year 1995.

    (g) PREVENTIVE SERVICES REGARDING HIV DISEASE- In addition to any other authorizations of appropriations that are available for the purpose of carrying out under the Public Health Service Act programs to prevent infection with the human immunodeficiency virus, there are authorized to be appropriated for such purpose $40,000,000 for fiscal year 1995.

    (h) IMMUNIZATION PROGRAM- In addition to any other authorizations of appropriations that are available for the purpose of carrying out the immunization program under section 317(j) of the Public Health Service Act, there are authorized to be appropriated for such purpose $200,000,000 for fiscal year 1995.

    (i) CANCER REGISTRIES- In addition to any other authorizations of appropriations that are available for the purpose of carrying out the program for cancer registries under section 399H of the Public Health Service Act, there are authorized to be appropriated for such purpose $13,000,000 for fiscal year 1995.

    (j) PREVENTIVE SERVICES REGARDING PROSTATE CANCER- In addition to any other authorizations of appropriations that are available for the purpose of carrying out section 317D of the Public Health Service Act, there are authorized to be appropriated for such purpose $4,000,000 for fiscal year 1995.

    (k) COMPREHENSIVE SCHOOL HEALTH EDUCATION- In addition to any other authorizations of appropriations that are available for the purpose of carrying out under the Public Health Service Act a program to provide comprehensive health education to school children, there are authorized to be appropriated for such purpose $40,000,000 for fiscal year 1995.

    (l) PREVENTION AND CONTROL OF SEXUALLY TRANSMITTED DISEASES- In addition to any other authorizations of appropriations that are available for the purpose of carrying out section 318 of the Public Health Service Act, there are authorized to be appropriated for such purpose $10,000,000 for fiscal year 1995.

    (m) PREVENTION AND CONTROL OF DIABETES- In addition to any other authorizations of appropriations that are available for the purpose of carrying out under the Public Health Service Act a program for the prevention and control of diabetes, there are authorized to be appropriated for such purpose $20,000,000 for fiscal year 1995.

    (n) CHILD DAY CARE HEALTH AND SAFETY- In addition to any other authorizations of appropriations that are available for the purpose of carrying out under the Public Health Service Act a program for child day care health and safety, there are authorized to be appropriated for such purpose $5,000,000 for fiscal year 1995.

    (o) PREVENTION AND CONTROL OF INJURIES- In addition to any other authorizations of appropriations that are available for the purpose of carrying out part J of title III of the Public Health Service Act, there are authorized to be appropriated for such purpose $5,000,000 for fiscal year 1995.

    (p) ASTHMA- In addition to any other authorizations of appropriations that are available for the purpose of carrying out under the Public Health Service Act a program regarding asthma, there are authorized to be appropriated for such purpose $5,000,000 for fiscal year 1995.

    (q) ENVIRONMENTAL HEALTH-

      (1) URGENT THREAT TO PUBLIC HEALTH- In addition to any other authorizations of appropriations that are available for the purpose of carrying out under the Public Health Service Act a program to respond to urgent environmental threats to the public health, there are authorized to be appropriated for such purpose $32,000,000 for fiscal year 1995.

      (2) ACTIVITIES REGARDING BORDER WITH MEXICO- In addition to any other authorizations of appropriations that are available for the purpose of carrying out under the Public Health Service Act a program to provide environmental services regarding the health of individuals in the United States in the vicinity of the international border with Mexico, there are authorized to be appropriated for such purpose $10,000,000 for fiscal year 1995.

    (r) BLOCK GRANTS FOR COMMUNITY MENTAL HEALTH SERVICES- In addition to any other authorizations of appropriations that are available for the purpose of carrying out subpart I of part B of title XIX of the Public Health Service Act, there are authorized to be appropriated for such purpose $50,000,000 for fiscal year 1995.

    (s) BLOCK GRANTS FOR PREVENTION AND TREATMENT OF SUBSTANCE ABUSE- In addition to any other authorizations of appropriations that are available for the purpose of carrying out subpart II of part B of title XIX of the Public Health Service Act, there are authorized to be appropriated for such purpose $50,000,000 for fiscal year 1995.

    (t) BLOCK GRANTS FOR PREVENTIVE HEALTH SERVICES- In addition to any other authorizations of appropriations that are available for the purpose of carrying out part A of title XIX of the Public Health Service Act, there are authorized to be appropriated for such purpose $30,000,000 for fiscal year 1995.

    (u) SCHOLARSHIP AND LOAN REPAYMENT PROGRAMS OF NATIONAL HEALTH SERVICE CORPS- In addition to any other authorizations of appropriations that are available for the purpose of contracts under sections 338A and 338B of the Public Health Service Act, there are authorized to be appropriated for such purpose $100,000,000 for fiscal year 1995.

    (v) SOCIAL SECURITY ACT; MATERNAL AND CHILD HEALTH BLOCK GRANT- In addition to any other authorizations of appropriations that are available for the purpose of carrying out title V of the Social Security Act, there are authorized to be appropriated for such purpose $100,000,000 for fiscal year 1995.

CHAPTER 2--COMMUNITY HEALTH ADVISOR PROGRAM

SEC. 2311. SHORT TITLE.

    This chapter may be cited as the ‘National Community Health Advisor Act’.

SEC. 2312. FINDINGS.

    The Congress finds the following:

      (1) Poverty, geographic isolation, cultural differences, lack of transportation, low literacy, lack of access to services and further difficulties resulting from a lack of continuity of care, are barriers for millions of low-income and underserved Americans in the current health care delivery system.

      (2) The Public Health Service has determined that many health problems are rooted in poverty and hit hardest at those least able to protect themselves.

      (3) The Public Health Service has established goals and objectives regarding improvements in the health of the public by the year 2000. An evaluation by the Service, entitled ‘Health United States 1992 and Healthy People 2000 Review’, illustrates the acute access problem faced by rural areas and the inner cities. The evaluation cites the fact that suburbs have the lowest death rates, while death rates in rural counties are 12 percent higher and in large core metropolitan counties, 19 percent higher.

      (4) Discussions of health care reform focus almost exclusively on questions of how to extend health insurance to the Nation’s 35-40 million uninsured and make services available while simultaneously bringing medical costs under control; however, it is imperative to correct the fundamental and deep-rooted obstacles that low-income urban and rural Americans confront when trying to access medical care and preventive health services. For example, in 1991, 19 million American women qualified for mammography screening benefits through Medicare; however, only 670,000 (or less than 3 percent) took advantage of this benefit.

      (5) People who are local, indigenous members and residents of underserved communities are uniquely knowledgeable about their populations’ needs; where such individuals are already serving as community health advisors, they communicate to health and social service providers the needs of community members, provide quality health promotion and disease prevention information to the community and serve as the crucial link between their communities and providers to increase utilization of available preventive health services and to reach out to communities to increase the effectiveness of the health care delivery system, reduce preventable morbidity and mortality, and improve the quality of life.

SEC. 2313. FORMULA GRANTS REGARDING COMMUNITY HEALTH ADVISOR PROGRAMS.

    (a) FORMULA GRANTS-

      (1) IN GENERAL- In the case of each State (or entity designated by a State under subsection (b)) that submits to the Secretary an application in accordance with section 2316 for a fiscal year, the Secretary of Health and Human Services, acting through the Director of the Centers for Disease Control and Prevention and in coordination with the heads of the agencies specified in paragraph (2), shall make an award of financial assistance to the State or entity for the development and operation of community health advisor programs under section 2314(b). The award shall consist of the allotment determined under section 2317 with respect to the State, subject to section 2322(b).

      (2) COORDINATION WITH OTHER AGENCIES- The agencies referred to in paragraph (1) regarding coordination are the Health Resources and Services Administration, the National Institutes of Health, and the Substance Abuse and Mental Health Services Administration.

    (b) DESIGNATED ENTITIES- With respect to the State involved, an entity other than the State may receive an award under subsection (a) only if the entity--

      (1) is a public or nonprofit private academic organization (or other public or nonprofit private entity); and

      (2) has been designated by the State to carry out the purpose described in such subsection in the State and to receive amounts under such subsection in lieu of the State.

    (c) ROLE OF STATE AGENCY FOR PUBLIC HEALTH- A funding agreement for an award under subsection (a) is that--

      (1) if the applicant is a State, the award will be administered by the State agency with the principal responsibility for carrying out public health programs; and

      (2) if the applicant is an entity designated under subsection (b), the award will be administered in consultation with such State agency.

    (d) STATEWIDE RESPONSIBILITIES; LIMITATION ON EXPENDITURES-

      (1) STATEWIDE RESPONSIBILITIES- A funding agreement for an award under subsection (a) is that the applicant involved will--

        (A) operate a clearinghouse to maintain and disseminate information on community health advisor programs (and similar programs) in the State, including information on developing and operating such programs, on training individuals to participate in the programs, and on evaluation of the programs;

        (B) provide to community health advisor programs in the State technical assistance in training community health advisors under section 2315(g)(1); and

        (C) coordinate the activities carried out in the State under the award, including coordination between the various community health advisor programs and coordination between such programs and related activities of the State and of other public or private entities.

      (2) LIMITATION- A funding agreement for an award under subsection (a) is that the applicant involved will not expend more than 15 percent of the award in the aggregate for carrying out paragraph (1) and for the expenses of administering the award with respect to the State involved, including the process of receiving payments from the Secretary under the award, allocating the payments among the entities that are to develop and operate the community health advisor programs involved, and monitoring compliance with the funding agreements made under this chapter by the applicant.

SEC. 2314. REQUIREMENTS REGARDING COMMUNITY HEALTH ADVISOR PROGRAMS.

    (a) PURPOSE OF AWARD; HEALTHY PEOPLE 2000 OBJECTIVES-

      (1) IN GENERAL- Subject to paragraph (2), a funding agreement for an award under section 2313 for an applicant is that the purpose of the award is, through community health advisor programs under subsection (b), to assist the State involved in attaining the Healthy People 2000 Objectives (as defined in subsection (d).

      (2) AUTHORITY REGARDING SELECTION OF PRIORITY OBJECTIVES- With respect to compliance with the agreement made under paragraph (1), an applicant receiving an award under section 2313 may, from among the various Healthy People 2000 Objectives, select one or more Objectives to be given priority in the operation of a community health advisor program of the applicant, subject to the applicant selecting such priorities in consultation with the entity that is to carry out the program.

    (b) REQUIREMENTS FOR PROGRAMS-

      (1) IN GENERAL- A funding agreement for an award under section 2313 for an applicant is that, in expending the award, the purpose described in subsection (a)(1) will be carried out in accordance with the following:

        (A) For each community for which the purpose is to be carried out, the applicant will establish a program in accordance with this subsection.

        (B) The program will be carried out in a community only if the applicant has, under section 2315(a), identified the community as having a significant need for the program.

        (C) The program will be operated by a public or nonprofit private entity with experience in providing health or health-related social services to individuals who are underserved with respect to such services.

        (D) The services of the program, as specified in paragraph (2), will be provided principally by community health advisors (as defined in subsection (d)).

      (2) AUTHORIZED PROGRAM SERVICES- For purposes of paragraph (1)(D), the services specified in this paragraph for a program are as follows:

        (A) The program will collaborate with health care providers and related entities in order to facilitate the provision of health services and health-related social services (including collaborating with local health departments, community health centers, migrant health centers, rural health clinics, hospitals, physicians and nurses, providers of health education, and providers of social services).

        (B) The program will provide public education on health promotion and disease prevention and facilitate the use of available health services and health-related social services.

        (C) The program will provide health-related counseling.

        (D) The program will provide referrals for available health services and health-related social services.

        (E) For the purpose of increasing the capacity of individuals to utilize health services and health-related social services under Federal, State, and local programs, the following conditions will be met:

          (i) The program will assist individuals in establishing eligibility under the programs and in receiving the services or other benefits of the programs.

          (ii) The program will provide such other services as the Secretary determines to be appropriate, which services may include (but are not limited to) transportation and translation services.

        (F) The program will provide outreach services to inform the community of the availability of the services of the program.

    (c) PRIORITY FOR MEDICALLY UNDERSERVED COMMUNITIES- A funding agreement for an award under section 2313 is that the applicant involved will give priority to developing and operating community health advisor programs for medically underserved communities.

    (d) CERTAIN DEFINITIONS-

      (1) COMMUNITY HEALTH ADVISOR- For purposes of this chapter, the term ‘community health advisor’ means an individual--

        (A) who has demonstrated the capacity to carry out one or more of the authorized program services;

        (B) who, for not less than 1 year, has been a resident of the community in which the community health advisor program involved is to be operated; and

        (C) is a member of a socioeconomic group to be served by the program.

      (2) HEALTHY PEOPLE 2000 OBJECTIVES- For purposes of this chapter, the term ‘Healthy People 2000 Objectives’ means the objectives established by the Secretary toward the goals of increasing the span of healthy life, reducing health disparities among various populations, and providing access to preventive services, which objectives apply to the health status of the population of the United States for the year 2000.

      (3) MEDICALLY UNDERSERVED COMMUNITY- For purposes of this chapter, the term ‘medically underserved community’ means--

        (A) a community that has a substantial number of individuals who are members of a medically underserved population, as defined in section 330 of the Public Health Service Act; or

        (B) a community a significant portion of which is a health professional shortage area designated under section 332 of such Act.

SEC. 2315. ADDITIONAL AGREEMENTS.

    (a) IDENTIFICATION OF COMMUNITY NEEDS- A funding agreement for an award under section 2313 is that the applicant involved will--

      (1) identify the needs of the community involved for the authorized program services;

      (2) in identifying such needs, consult with members of the community, with individuals and programs that provide health services in the community, and with individuals and programs that provide health-related social services in the community; and

      (3) consider such needs in carrying out a community health advisor program for the community.

    (b) MATCHING FUNDS-

      (1) IN GENERAL- With respect to the cost of carrying out a community health advisor program, a funding agreement for an award under section 2313 is that the applicant involved will make available (directly or through donations from public or private entities) non-Federal contributions toward such cost in an amount that is not less than 25 percent of such cost.

      (2) DETERMINATION OF AMOUNT CONTRIBUTED-

        (A) Non-Federal contributions required in paragraph (1) may be in cash or in kind, fairly evaluated, including plant, equipment, or services. Amounts provided by the Federal Government, or services assisted or subsidized to any significant extent by the Federal Government, may not be included in determining the amount of such non-Federal contributions.

        (B) With respect to the State in which the community health advisor program involved is to be carried out, amounts provided by the State in compliance with subsection (c) shall be included in determining the amount of non-Federal contributions under paragraph (1).

    (c) MAINTENANCE OF EFFORT- With respect to the purposes for which an award under section 2313 is authorized in this chapter to be expended, the Secretary may make such an award only if the State involved agrees to maintain expenditures of non-Federal amounts for such purposes at a level that is not less than the level of such expenditures maintained by the State for the fiscal year preceding the first fiscal year for which such an award is made with respect to the State.

    (d) CULTURAL CONTEXT OF SERVICES- A funding agreement for an award under section 2313 for an applicant is that the services of the community health advisor program involved will be provided in the language and cultural context most appropriate for the individuals served by the program.

    (e) NUMBER OF PROGRAMS PER AWARD; PROGRAMS FOR URBAN AND RURAL AREAS- A funding agreement for an award under section 2313 for an applicant is that the number of community health advisor programs operated in the State with the award will be determined by the Secretary, except that (subject to section 2314(b)(1)(B)) such a program will be carried out in not less than one urban area of the State, and in not less than one rural area of the State.

    (f) ONGOING SUPERVISION OF ADVISORS- A funding agreement for an award under section 2313 is that the applicant involved will ensure that each community health advisor program operated with the award provides for the ongoing supervision of the community health advisors of the program.

    (g) CERTAIN EXPENDITURES-

      (1) TRAINING; CONTINUING EDUCATION- Funding agreements for an award under section 2313 include the following:

        (A) The applicant involved will ensure that, for each community health advisor program operated with the award, a program is carried out to train community health advisors to provide the authorized program services, including practical experiences in providing services for health promotion and disease prevention.

        (B) The program of training will provide for the continuing education of the community health advisors.

        (C) Not more than 15 percent of the award will be expended for the program of training.

      (2) COMPENSATION- With respect to compliance with the agreements made under this chapter, the purposes for which an award under section 2313 may be expended include providing compensation for the services of community health advisors.

    (h) REPORTS TO SECRETARY; ASSESSMENT OF EFFECTIVENESS- Funding agreements for an award under section 2313 for an applicant include the following:

      (1) The applicant will ensure that, for each fiscal year for which a community health advisor program receives amounts from the award, the program will prepare a report describing the activities of the program for such year, including--

        (A) a specification of the number of individuals served by the program;

        (B) a specification of the entities with which the program has collaborated in carrying out the purpose described in section 2314(a)(1); and

        (C) an assessment of the extent of the effectiveness of the program in carrying out such purpose.

      (2) Such reports will include such additional information regarding the applicant and the programs as the Secretary may require.

      (3) The applicant will prepare the reports as a single document and will submit the document to the Secretary not later than February 1 of the fiscal year following the fiscal year for which the reports were prepared.

SEC. 2316. APPLICATION FOR ASSISTANCE; STATE PLAN.

    For purposes of section 2313, an application is in accordance with this section if--

      (1) the application is submitted not later than the date specified by the Secretary;

      (2) the application contains each funding agreement described in this chapter;

      (3) the application contains a State plan describing the purposes for which the award is to be expended in the State, including a description of the manner in which the applicant will comply with each such funding agreement; and

      (4) the application is in such form, is made in such manner, and contains such agreements, assurances, and information as the Secretary determines to be necessary to carry out this chapter.

SEC. 2317. DETERMINATION OF AMOUNT OF ALLOTMENT.

    (a) IN GENERAL- For purposes of section 2313, the allotment under this section with respect to a State for a fiscal year is the greater of--

      (1) the sum of the respective amounts determined for the State under subsection (b) and subsection (c); and

      (2) $500,000.

    (b) AMOUNT RELATING TO POPULATION- For purposes of subsection (a), the amount determined under this subsection is the product of--

      (1) an amount equal to 50 percent of the amount appropriated under section 2322 for the fiscal year and available for awards under section 2313; and

      (2) the percentage constituted by the ratio of--

        (A) the number of individuals residing in the State involved; to

        (B) the sum of the respective amounts determined for each State under subparagraph (A).

    (c) AMOUNT RELATING TO POVERTY LEVEL- For purposes of subsection (a), the amount determined under this subsection is the product of--

      (1) the amount determined under subsection (b)(1); and

      (2) the percentage constituted by the ratio of--

        (A) the number of individuals residing in the State whose income is at or below an amount equal to 200 percent of the official poverty line; to

        (B) the sum of the respective amounts determined for each State under subparagraph (A).

SEC. 2318. QUALITY ASSURANCE; COST-EFFECTIVENESS.

    The Secretary shall establish guidelines for assuring the quality of community health advisor programs (including quality in the training of community health advisors) and for assuring the cost-effectiveness of the programs. A funding agreement for an award under section 2313 is that the applicant involved will carry out such programs in accordance with the guidelines.

SEC. 2319. EVALUATIONS; TECHNICAL ASSISTANCE.

    (a) EVALUATIONS- The Secretary shall conduct evaluations of community health advisor programs, and may disseminate information developed as result of the evaluations. In conducting such evaluations, the Secretary shall determine whether the programs are in compliance with the guidelines established under section 2318.

    (b) TECHNICAL ASSISTANCE- The Secretary may provide technical assistance to recipients of awards under section 2313 with respect to the planning, development, and operation of community health advisor programs.

    (c) GRANTS AND CONTRACTS- The Secretary may carry out this section directly or through grants, cooperative agreements, or contracts.

    (d) LIMITATION ON EXPENDITURES- Of the amounts appropriated under section 2322 for a fiscal year, the Secretary may reserve not more than 10 percent for carrying out this section.

SEC. 2320. RULE OF CONSTRUCTION REGARDING PROGRAMS OF INDIAN HEALTH SERVICE.

    This chapter may not be construed as requiring the Secretary to modify or terminate the program carried out by the Director of the Indian Health Service and designated by such Director as the Community Health Representative Program. The Secretary shall ensure that support for such Program is not supplanted by awards under section 2313. In communities in which both such Program and a community health advisor program are being carried out, the Secretary shall ensure that the community health advisor program works in cooperation with, and as a complement to, the Community Health Representative Program.

SEC. 2321. DEFINITIONS.

    For purposes of this chapter:

      (1) The term ‘authorized program services’, with respect to a community health advisor program, means the services specified in section 2314(b)(2).

      (2) The term ‘community health advisor’ has the meaning given such term in section 2314(d).

      (3) The term ‘community health advisor program’ means a program carried out under section 2314(b).

      (4) The term ‘financial assistance’, with respect to an award under section 2313, means a grant, cooperative agreement, or a contract.

      (5) The term ‘funding agreement’ means an agreement required as a condition of receiving an award under section 2313.

      (6) The term ‘Healthy People 2000 Objectives’ has the meaning given such term in section 2314(d).

      (7) The term ‘medically underserved community’ has the meaning given such term in section 2314(d).

      (8) The term ‘official poverty line’ means the official poverty line established by the Director of the Office of Management and Budget and revised by the Secretary in accordance with section 673(2) of the Omnibus Budget Reconciliation Act of 1981, which poverty line is applicable the size of the family involved.

      (9) The term ‘Secretary’ means the Secretary of Health and Human Services.

      (10) The term ‘State’ means each of the several States, the District of Columbia, and each of the Commonwealth of Puerto Rico, American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, the Virgin Islands, and the Trust Territory of the Pacific Islands.

      (11) The term ‘State involved’, with respect to an applicant for an award under section 2313, means the State in which the applicant is to carry out a community health advisor program.

SEC. 2322. FUNDING.

    (a) AUTHORIZATION OF APPROPRIATIONS- For the purpose of carrying out this chapter, there is authorized to be appropriated $100,000,000 for each of the fiscal years 1995 through 2000.

    (b) EFFECT OF INSUFFICIENT APPROPRIATIONS FOR MINIMUM ALLOTMENTS-

      (1) IN GENERAL- If the amounts made available under subsection (a) for a fiscal year are insufficient for providing each State (or entity designated by the State pursuant to section 2313, as the case may be) with an award under section 2313 in an amount equal to or greater than the amount specified in section 2317(a)(2), the Secretary shall, from such amounts as are made available under subsection (a), make such awards on a discretionary basis.

      (2) RULE OF CONSTRUCTION- For purposes of paragraph (1), awards under section 2313 are made on a discretionary basis if the Secretary determines which States (or entities designated by States pursuant to such section, as the case may be) are to receive such awards, subject to meeting the requirements of this chapter for such an award, and the Secretary determines the amount of such awards.

Title III--AMENDMENTS OF INTERNAL REVENUE CODE OF 1986

Subtitle A--Reduction in Employee Payroll Taxes; Credit for First-Time Homebuyers

SEC. 3001. CREDIT FOR PORTION OF SOCIAL SECURITY TAXES.

    (a) GENERAL RULE- Subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to refundable credits) is amended by redesignating section 35 as section 36 and by inserting after section 34 the following new section:

‘SEC. 35. CREDIT FOR PORTION OF SOCIAL SECURITY TAXES.

    ‘(a) ALLOWANCE OF CREDIT- In the case of an individual, there shall be allowed as a credit against the tax imposed by this subtitle for the taxable year an amount equal to 20 percent of the taxpayer’s social security taxes for the taxable year.

    ‘(b) LIMITATION- The amount of the credit allowable under subsection (a) to any taxpayer for any taxable year shall not exceed $200 ($400 in the case of a joint return).

    ‘(c) SOCIAL SECURITY TAXES- For purposes of this section--

      ‘(1) IN GENERAL- The term ‘social security taxes’ means, with respect to any taxpayer for any taxable year--

        ‘(A) the amount of the taxes imposed by subsections (a) and (b) of section 3101 on amounts received by the taxpayer during the calendar year in which the taxable year begins,

        ‘(B) the amount of the taxes imposed by section 3201(a) on amounts received by the taxpayer during the calendar year in which the taxable year begins,

        ‘(C) 50 percent of the taxes imposed by subsections (a) and (b) of section 1401 on the self-employment income of the taxpayer for the taxable year, and

        ‘(D) 50 percent of the taxes imposed by section 3211(a)(1) on amounts received by the taxpayer during the calendar year in which the taxable year begins.

      ‘(2) COORDINATION WITH SPECIAL REFUND OF SOCIAL SECURITY TAXES- The term ‘social security taxes’ shall not include any taxes to the extent the taxpayer is entitled to a special refund of such taxes under section 6413(c).

      ‘(3) SPECIAL RULE- Any amounts paid pursuant to an agreement under section 3121(l) (relating to agreements entered into by American employers with respect to foreign affiliates) which are equivalent to the taxes referred to in paragraph (1)(A) shall be treated as taxes referred to in such paragraph.

    ‘(d) YEARS TO WHICH SECTION APPLIES- This section shall only apply to taxable years beginning after December 31, 1994, and before January 1, 1997.’

    (b) CLERICAL AMENDMENT- The table of sections for subpart C of part IV of subchapter A of chapter 1 is amended by striking the item relating to section 35 and inserting the following:

‘Sec. 35. Credit for portion of social security taxes.

‘Sec. 36. Overpayments of tax.’

    (c) EFFECTIVE DATE- The amendments made by this section shall apply to taxable years beginning after December 31, 1994.

SEC. 3002. CREDIT FOR PURCHASE OF PRINCIPAL RESIDENCE BY FIRST-TIME HOMEBUYER.

    (a) IN GENERAL- Subpart A of part IV of subchapter A of chapter 1 (relating to nonrefundable personal credits) is amended by inserting after section 22 the following new section:

‘SEC. 23. PURCHASE OF PRINCIPAL RESIDENCE BY FIRST-TIME HOMEBUYER.

    ‘(a) ALLOWANCE OF CREDIT- In the case of a first-time homebuyer, there shall be allowed as a credit against the tax imposed by this chapter an amount equal to 10 percent of the purchase price of the first principal residence purchased by the taxpayer during the eligibility period. Except as otherwise provided in this section, such credit shall be allowed for the taxable year in which such residence is purchased.

    ‘(b) LIMITATIONS-

      ‘(1) MAXIMUM OVERALL CREDIT- The credit allowed by subsection (a) to the taxpayer shall not exceed $6,000.

      ‘(2) PHASEOUT OF CREDIT BASED ON ADJUSTED GROSS INCOME- If the adjusted gross income of the taxpayer for the taxable year in which the residence is purchased exceeds $50,000, the $6,000 amount in paragraph (1) shall be reduced (but not below zero) by $100 for each $200 of such excess.

    ‘(c) FIRST-TIME HOMEBUYER- For purposes of this section--

      ‘(1) IN GENERAL- The term ‘first-time homebuyer’ means any individual unless such individual or such individual’s spouse had a present ownership interest in any residence at any time during the 3-year period ending on the date of the purchase of the residence referred to in subsection (a).

      ‘(2) UNMARRIED JOINT OWNERS- An individual shall not be treated as a first-time homebuyer with respect to any residence unless all the individuals purchasing such residence with such individual are first-time homebuyers.

      ‘(3) ALLOCATION OF LIMITS- All individuals purchasing a residence shall be treated as 1 individual for purposes of determining the maximum credit under subsection (a); and such maximum credit, and the $50,000 amount in subsection (b)(2), shall be allocated among such individuals under regulations prescribed by the Secretary.

      ‘(4) CERTAIN INDIVIDUALS INELIGIBLE- The term ‘first-time homebuyer’ shall not include any individual if, on the date of the purchase of the residence, the period of time specified in section 1034(a) is suspended under subsection (h) or (k) of section 1034 with respect to such individual.

      ‘(5) CERTAIN INDIRECT INTERESTS NOT TAKEN INTO ACCOUNT- Except as provided in regulations prescribed by the Secretary, an individual shall not be treated as holding an interest in a residence by reason of holding an interest in a partnership, S corporation, or trust.

    ‘(d) OTHER DEFINITIONS- For purposes of this section--

      ‘(1) ELIGIBILITY PERIOD-

        ‘(A) IN GENERAL- The term ‘eligibility period’ means the period beginning after December 31, 1994, and ending before January 1, 1997.

        ‘(B) BINDING CONTRACTS- A residence shall be treated as purchased during the eligibility period if--

          ‘(i) during the eligibility period, the purchaser enters into a binding contract to purchase the residence, and

          ‘(ii) the purchaser purchases and occupies the residence before July 1, 1997.

        For purposes of clause (i), a contract shall not fail to be treated as binding merely because it is contingent on financing or on the condition of the residence.

      ‘(2) PURCHASE- The term ‘purchase’ means any acquisition of property, but only if--

        ‘(A) the property is not acquired from a person whose relationship to the person acquiring it would result in the disallowance of losses under section 267 or 707(b), and

        ‘(B) the basis of the property in the hands of the person acquiring it is not determined--

          ‘(i) in whole or in part by reference to the adjusted basis of such property in the hands of the person from whom acquired, or

          ‘(ii) under section 1014(a) (relating to property acquired from a decedent).

      ‘(3) PRINCIPAL RESIDENCE- The term ‘principal residence’ has the same meaning as when used in section 1034.

      ‘(4) PURCHASE PRICE- The term ‘purchase price’ means the adjusted basis of the residence on the date of its acquisition.

    ‘(e) CARRYOVER OF UNUSED CREDIT-

      ‘(1) IN GENERAL- If--

        ‘(A) the credit allowable under subsection (a) after the application of subsection (b) exceeds

        ‘(B) the limitation imposed by section 26(a) reduced by the sum of the credits allowable under sections 21 and 22,

      such excess shall be carried to the succeeding taxable year and shall be allowable under subsection (a) for such succeeding taxable year.

      ‘(2) 5-YEAR LIMIT ON CARRYFORWARD- No amount may be carried under paragraph (1) to any taxable year after the 5th taxable year after the taxable year in which the residence is purchased.

    ‘(f) RECAPTURE OF CREDIT FOR CERTAIN DISPOSITIONS-

      ‘(1) IN GENERAL- Except as provided in paragraphs (2) and (3), if the taxpayer disposes of property with respect to the purchase of which a credit was allowed under subsection (a) and such disposition occurs at any time within 36 months after the date the taxpayer acquired the property as his principal residence, then the tax imposed under this chapter for the taxable year in which the disposition occurs is increased by an amount equal to the amount allowed as a credit for the purchase of such property.

      ‘(2) ACQUISITION OF NEW RESIDENCE- If, in connection with a disposition described in paragraph (1) and within the applicable period prescribed in section 1034, the taxpayer purchases a new principal residence, then paragraph (1) shall not apply and the tax imposed by this chapter for the taxable year in which the new principal residence is purchased is increased to the extent the amount of the credit that could be claimed under this section on the purchase of the new residence (were such residence purchased during the eligibility period) is less than the amount of credit claimed by the taxpayer under this section.

      ‘(3) DEATH OF OWNER; CASUALTY LOSS; INVOLUNTARY CONVERSION; ETC- Paragraph (1) shall not apply to--

        ‘(A) a disposition of a residence made on account of the death of any individual having a legal or equitable interest therein occurring during the 36-month period referred to in paragraph (1),

        ‘(B) a disposition of the old residence if it is substantially or completely destroyed by a casualty described in section 165(c)(3) or compulsorily or involuntarily converted (within the meaning of section 1033(a)), or

        ‘(C) a disposition pursuant to a settlement in a divorce or legal separation proceeding where the residence is sold or the other spouse retains the residence as a principal residence.

    ‘(g) BASIS ADJUSTMENT- For purposes of this subtitle, if a credit is allowed under this section with respect to the purchase of any residence, the basis of such residence shall be reduced by the amount of the credit so allowed.’.

    (b) CONFORMING AMENDMENTS-

      (1) Subsection (a) of section 1016 is amended by striking ‘and’ at the end of paragraph (24), by striking the period at the end of paragraph (25) and inserting ‘, and’, and by adding at the end thereof the following new paragraph:

      ‘(26) in the case of a residence with respect to which a credit was allowed under section 23, to the extent provided in section 23(g).’

      (2) The table of sections for subpart A of part IV of subchapter A of chapter 1 is amended by inserting after the item relating to section 22 the following new item:

‘Sec. 23. Purchase of principal residence by first-time homebuyer.’

    (c) EFFECTIVE DATE- The amendments made by this section shall apply to taxable years ending after December 31, 1994.

Subtitle B--Revenue Increases

SEC. 3101. STOCK TRANSFER EXCISE TAX.

    (a) IN GENERAL- Chapter 34 of the Internal Revenue Code of 1986 is amended by striking the chapter heading and inserting the following:

‘CHAPTER 34--TAX ON CERTAIN FINANCIAL TRANSACTIONS

‘Subchapter A. Tax on stock transfers.

‘Subchapter B. Policies issued by foreign insurers.

‘Subchapter A--Tax on Stock Transfers

‘Sec. 4301. Imposition of tax.

‘Sec. 4302. Collection of tax.

‘Sec. 4303. Taxable stock transfer.

‘Sec. 4304. Taxable stock.

‘SEC. 4301. IMPOSITION OF TAX.

    ‘(a) IN GENERAL- There is hereby imposed on each taxable stock transfer a tax equal to 0.25 percent of the amount realized by the transferor of the taxable stock.

    ‘(b) AMOUNT REALIZED- For purposes of subsection (a)--

      ‘(1) IN GENERAL- Except as otherwise provided in this subsection, the term ‘amount realized’ has the same meaning as when used in section 1001.

      ‘(2) TRANSFERS WHICH ARE NOT SALES OR EXCHANGES- In the case of any taxable stock transfer which is not a sale or exchange, the amount realized is the fair market value of the taxable stock involved.

      ‘(3) CERTAIN ITEMS NOT TAKEN INTO ACCOUNT- The following amounts shall not be taken into account in computing the amount realized from any taxable stock transfer:

        ‘(A) The tax imposed by this section.

        ‘(B) Any brokerage or similar fees or commissions.

        ‘(C) Any State, local or foreign tax imposed on the taxable stock transfer.

    ‘(c) TAX PAID BY TRANSFEROR- The tax imposed by subsection (a) shall be paid by the transferor of the taxable stock.

‘SEC. 4302. COLLECTION OF TAX.

    ‘(a) COLLECTED BY BROKER- Every broker who--

      ‘(1) acts on behalf of the transferor in any taxable stock transfer, and

      ‘(2) receives any payment on behalf of the transferor for such transfer,

    shall collect the amount of the tax imposed by section 4301 by deducting and withholding such tax from the amount of any such payment. Any person required to deduct and withhold any tax under the preceding sentence is hereby made liable for such tax and is hereby indemnified against the claims and demands of any person for the amount of any payment so deducted and withheld.

    ‘(b) PAYMENT BY TRANSFEROR WHERE NO BROKER- In any case in which there is no broker required to collect the tax under subsection (a), the transferor shall pay such tax in such manner as the Secretary shall by regulations prescribe.

‘SEC. 4303. TAXABLE STOCK TRANSFER.

    ‘(a) GENERAL RULE- For purposes of this subchapter, the term ‘taxable stock transfer’ means any transfer of a taxable stock if such transfer is made through an established securities market in the United States.

    ‘(b) EXEMPTIONS- For purposes of this subchapter, the term ‘taxable stock transfer’ does not include--

      ‘(1) DEATH- Any transfer at death.

      ‘(2) GIFT- Any transfer to the extent such transfer is a gift.

      ‘(3) BETWEEN SPOUSES OR INCIDENT TO DIVORCE- Any transfer described in section 1041(a).

‘SEC. 4304. TAXABLE STOCK DEFINED.

    ‘(a) TAXABLE STOCK- For purposes of this subchapter, the term ‘taxable stock’ means any stock in a corporation or interest in a partnership which is publicly traded on an established securities market in the United States.

‘Subchapter B--Policies Issued by Foreign Insurers’.

    (b) CONFORMING AMENDMENTS-

      (1) The table of chapters for subtitle D of such Code is amended by striking the item relating to chapter 34 and inserting the following:

‘Chapter 34. Tax on certain financial transactions.’

      (2) Sections 4372(c) and 4374 of such Code are each amended by striking ‘this chapter’ and inserting ‘this subchapter’.

    (c) EFFECTIVE DATE- The amendments made by this section shall apply to transfers after December 31, 1996.

SEC. 3102. REPEAL OF PREFERENTIAL RATE OF TAX ON CAPITAL GAINS.

    (a) IN GENERAL- Section 1 of the Internal Revenue Code of 1986 is amended by striking subsection (h).

    (b) Conforming Amendments-

      (1) Paragraph (4) of section 691(c) of such Code is amended by striking ‘1(h),’.

      (2)(A) Subparagraph (B) of section 904(b)(2) of such Code is amended by striking ‘In the case of any taxable year’ and inserting ‘In the case of a corporation with respect to any taxable year’.

      (B) Subparagraph (D) of section 904(b)(3) of such Code is amended by striking ‘if--’ and all that follows through ‘(ii) in the case of a corporation,’ and inserting ‘if’.

      (C) Subparagraph (E) of section 904(b)(3) of such Code is amended to read as follows:

        ‘(E) RATE DIFFERENTIAL PORTION- The rate differential portion of foreign source net capital gain, net capital gain, or the excess of net capital gain from sources within the United States over net capital gain, as the case may be, is the same proportion of such amount as--

          ‘(i) the excess of--

            ‘(I) the highest rate of tax specified in section 11(b), over

            ‘(II) the alternative rate of tax under section 1201(a), bears to

          ‘(ii) the highest rate of tax specified in section 11(b).’

      (3) Paragraph (1) of section 1445(e) of such Code is amended by striking ‘(or, to the extent provided in regulations, 28 percent)’.

      (4)(A) The second sentence of section 7518(g)(6)(A) of such Code is amended--

        (i) by striking ‘With respect to’ and inserting ‘In the case of a corporation, with respect to’,

        (ii) by striking ‘1(h) or’, and

        (iii) by striking ‘28 percent (34 percent in the case of a corporation’ and inserting ‘34 percent’.

      (B) The second sentence of section 607(h)(6)(A) of the Merchant Marine Act, 1936 is amended--

        (i) by striking ‘With respect to’ and inserting ‘In the case of a corporation, with respect to’,

        (ii) by striking ‘1(h) or’, and

        (iii) by striking ‘28 percent (34 percent in the case of a corporation’ and inserting ‘34 percent’.

    (c) EFFECTIVE DATE- The amendments made by this section shall apply to taxable years beginning after December 31, 1996.

SEC. 3103. CARRYOVER BASIS AT DEATH.

    (a) GENERAL RULE- Part II of subchapter O of chapter 1 of subtitle A of the Internal Revenue Code of 1986 is amended by inserting after section 1021 the following new section:

‘SEC. 1022. CARRYOVER BASIS FOR CERTAIN PROPERTY ACQUIRED FROM A DECEDENT.

    ‘(a) CARRYOVER BASIS-

      ‘(1) IN GENERAL- Except as otherwise provided in this section, the basis of carryover basis property in the hands of a person acquiring such property from a decedent is--

        ‘(A) its initial basis, increased by

        ‘(B) its section 1022 adjustment determined under subsection (c).

      ‘(2) INITIAL BASIS- The initial basis of carryover basis property is its adjusted basis for purposes of determining gain immediately before the death of the decedent, adjusted as provided in subsection (d).

      ‘(3) FAIR MARKET VALUE RULE FOR ESTATES HAVING $600,000 OR LESS OF PROPERTY DESCRIBED IN SECTION 1022(b)-

        ‘(A) IN GENERAL- In the case of any decedent dying after December 31, 1996, if the aggregate fair market value of the property which (but for this paragraph) would be carryover basis property is $600,000 or less, then--

          ‘(i) this section (other than this paragraph) shall not apply to such property, and

          ‘(ii) the basis of such property in the hands of the person acquiring it shall be determined under section 1014.

        ‘(B) ELECTION WITH RESPECT TO TANGIBLE PERSONAL PROPERTY DISREGARDED- For purposes of subparagraph (A), the determination of what would be carryover basis property shall be made without regard to any election under subsection (b)(3).

      ‘(4) ELECTION OF MARK-TO-MARKET-

        ‘(A) IN GENERAL- If the executor elects this paragraph with respect to all property which (but for this paragraph) would be carryover basis property, then--

          ‘(i) this section (other than this paragraph) shall not apply to such property, and

          ‘(ii) the basis of such property in the hands of the person acquiring it shall be determined under section 1014.

        ‘(B) EFFECT OF ELECTION- If an election under this paragraph applies to any property, such property shall be treated as sold (for its value determined for purposes of chapter 11) on the date of the decedent’s death (and any gain or loss shall be treated as received or accrued on such date).

        ‘(C) DISTRIBUTIONS IN REDEMPTION OF STOCK TO PAY TAX- Section 303 shall be applied--

          ‘(i) by treating subsection (a)(1) thereof as including a reference to the tax imposed by this chapter by reason of the election under this paragraph, and

          ‘(ii) by determining the period of distribution with respect to such tax without regard to subparagraph (C) of section 303(b)(1) and as if subparagraphs (A) and (B) thereof referred only to the tax imposed by this chapter.

        ‘(D) ELECTION- An election under this paragraph shall be made by the executor not later than the date prescribed for filing the return of the tax imposed by chapter 11 (including extensions thereof), and shall be made on such return. Such an election, once made, shall be irrevocable.

    ‘(b) CARRYOVER BASIS PROPERTY DEFINED-

      ‘(1) IN GENERAL- For purposes of this section, the term ‘carryover basis property’ means any property--

        ‘(A) which is acquired from or passed from a decedent who died after December 31, 1996, and

        ‘(B) which is not excluded pursuant to paragraph (2) or (3).

      The property taken into account under subparagraph (A) shall be determined under section 1014(b) without regard to subparagraph (A) of the last sentence of paragraph (9) thereof.

      ‘(2) CERTAIN PROPERTY NOT CARRYOVER BASIS PROPERTY- The term ‘carryover basis property’ does not include--

        ‘(A) property which--

          ‘(i) was acquired from the decedent before the decedent’s death, and

          ‘(ii) was sold, exchanged, or otherwise disposed of before the decedent’s death by the person so acquiring it,

        ‘(B) any item of gross income in respect of a decedent described in section 691;

        ‘(C) property described in section 2042 (relating to proceeds of life insurance); and

        ‘(D) property described in section 1014(b)(5).

      ‘(3) $25,000 EXCLUSION FOR TANGIBLE PERSONAL PROPERTY-

        ‘(A) EXCLUSION- The term ‘carryover basis property’ does not include any tangible personal property--

          ‘(i) which, in the hands of the decedent, was a capital asset, and

          ‘(ii) with respect to which the executor has made an election under this paragraph.

        ‘(B) LIMITATION- The fair market value of all assets designated under this subsection with respect to any decedent shall not exceed $25,000.

        ‘(C) ELECTION- An election under this paragraph with respect to any asset shall be made by the executor not later than the date prescribed for filing the return of the tax imposed by chapter 11 (including extensions thereof), and shall be made on such return.

    ‘(c) SECTION 1022 ADJUSTMENT-

      ‘(1) IN GENERAL- The section 1022 adjustment for any carryover basis property is the sum of--

        ‘(A) the minimum basis adjustment for such property, and

        ‘(B) the death tax adjustment for such property.

      ‘(2) MINIMUM BASIS ADJUSTMENT-

        ‘(A) IN GENERAL- The minimum basis adjustment for any carryover basis property is the portion of the aggregate minimum basis adjustment which is allocated to the property pursuant to this section.

        ‘(B) AGGREGATE MINIMUM BASIS ADJUSTMENT- In the case of any estate, the aggregate minimum basis adjustment is the amount (if any) by which--

          ‘(i) $600,000, exceeds

          ‘(ii) the aggregate of the initial bases of all carryover basis property.

      ‘(3) DEATH TAX ADJUSTMENT-

        ‘(A) IN GENERAL- The death tax adjustment for any carryover basis property is the portion of the aggregate death tax adjustment which is allocated to the property pursuant to this section.

        ‘(B) LIMITATION- The death tax adjustment for any property shall not exceed--

          ‘(i) the net appreciation in such property, multiplied by

          ‘(ii) the Federal marginal estate tax rate.

        ‘(C) NET APPRECIATION- For purposes of this subsection, the net appreciation in value of any property is the amount by which--

          ‘(i) the fair market value of such property, exceeds

          ‘(ii) the initial basis of such property increased by the minimum basis adjustment of such property.

      ‘(4) AGGREGATE DEATH TAX ADJUSTMENT- In the case of any estate--

        ‘(A) IN GENERAL- The aggregate death tax adjustment is the product of--

          ‘(i) the aggregate net appreciation of all carryover basis properties which have net appreciation, and

          ‘(ii) the Federal marginal estate tax rate.

        ‘(B) LIMITATION- The amount taken into account under subparagraph (A)(i) shall not exceed the greater of--

          ‘(i) $250,000, or

          ‘(ii) the taxable estate.

        ‘(C) FEDERAL MARGINAL ESTATE TAX RATE- The term ‘Federal marginal estate tax rate’ means the highest rate in the rate schedule set forth in section 2001(c)--

          ‘(i) which is used in determining the tentative tax under section 2001(b)(1) with respect to the estate of the decedent, and

          ‘(ii) the amount subject to which is at least $50,000.

        In no event shall the Federal marginal estate tax rate be less than 30 percent.

      ‘(5) ALLOCATION RULES-

        ‘(A) IN GENERAL- The executor shall allocate the adjustments under this subsection among the carryover basis properties on the return of the tax imposed by chapter 11.

        ‘(B) CHANGES IN ALLOCATION- Any allocation made pursuant to subparagraph (A) may be changed at any time before the close of the 30th day after the initial basis finality date. The allocation in effect at the close of such 30th day may be changed only with the consent of the Secretary.

        ‘(C) INITIAL BASIS FINALITY DATE- For purposes of this paragraph, the term ‘initial basis finality date’ means the last day on which the initial basis of property may be changed in an administrative or judicial proceeding referred to in section 7479.

    ‘(d) FRESH START ADJUSTMENT-

      ‘(1) MARKETABLE SECURITIES- If--

        ‘(A) the adjusted basis immediately before the death of the decedent of any property which is carryover basis property reflects the adjusted basis of any marketable security on December 31, 1996, and

        ‘(B) the fair market value of such security on December 31, 1996, exceeded its adjusted basis on such date,

      then the adjusted basis of such property shall be increased to reflect the excess referred to in subparagraph (B).

      ‘(2) OTHER PROPERTY-

        ‘(A) IN GENERAL- For purposes of this section, if the holding period for any property other than a marketable security includes December 31, 1996, the adjusted basis of such property immediately before the death of the decedent shall be treated as being not less than the greatest of the amounts determined under subparagraph (B).

        ‘(B) DETERMINATION USING DISCOUNT BACK METHOD- The amount determined under this subparagraph for any property is--

          ‘(i) the fair market value of such property, divided by

          ‘(ii) 1.005 to the ‘nth’ power where ‘n’ equals the number of full calendar months which have elapsed between December 31, 1996, and the date of the decedent’s death.

        Except as provided in subparagraph (C), the amount determined under this subparagraph shall not be less than 25 percent of the fair market value of the property.

        ‘(C) SUBSTANTIAL IMPROVEMENT OR OTHER CHANGE AFTER 1992- Under regulations prescribed by the Secretary, proper adjustment shall be made in the adjustment under subparagraph (B) or (C) for any property with respect to which there has been a substantial improvement or other change after December 31, 1996.

      ‘(3) ONLY ONE FRESH START- There shall be no increase in basis under this subsection by reason of the death of any decedent if the adjusted basis of the property in the hands of such decedent reflects the adjusted basis of property which was carryover basis property with respect to a prior decedent.

      ‘(4) CERTAIN PREFERRED STOCK-

        ‘(A) IN GENERAL- For purposes of this subsection, preferred stock which was issued and outstanding on December 31, 1996, and which, but for this subparagraph, would not be a marketable security shall be treated as a marketable security the fair market value of which, on December 31, 1996, is its stated redemption price on such date excluding any dividends in arrears.

        ‘(B) PREFERRED STOCK DEFINED- For purposes of subparagraph (A), the term ‘preferred stock’ means any stock which--

          ‘(i) is fixed and preferred as to dividends and does not participate in corporate growth to any significant extent, and

          ‘(ii) is not convertible into any other class of stock.

      ‘(5) CERTAIN OTHER PROPERTY- In the case of any property which, as of December 31, 1996, had a value which was readily ascertainable (whether because of a buy-sell agreement, a redemption value, or otherwise) by a method other than appraisal, the Secretary may by regulations provide rules similar to the rules provided by paragraph (1).

      ‘(6) DEFINITIONS- For purposes of this subsection--

        ‘(A) MARKETABLE SECURITY- Except as provided in paragraphs (4) and (5), the term ‘marketable security’ means any security for which, as of December 1996, there was a market on a stock exchange, in an over-the-counter market, or otherwise.

        ‘(B) HOLDING PERIOD- The term ‘holding period’ means, with respect to any carryover basis property, the period during which the decedent (or, if any other person held such property immediately before the death of the decedent, such other person) held such property as determined under section 1223; except that such period shall end on the date of the decedent’s death.

    ‘(e) SPECIAL RULES AND DEFINITIONS- For purposes of this section--

      ‘(1) TREATMENT OF ITEMS ON A CLASS BASIS- Under regulations prescribed by the Secretary, the holding periods, bases, and fair market value of similar items falling within the same class of property may be determined on a class basis rather than on an individual item basis.

      ‘(2) IMPROVEMENTS TO PRINCIPAL RESIDENCE-

        ‘(A) IN GENERAL- If--

          ‘(i) property was used by the decedent as his principal residence, and

          ‘(ii) the decedent’s holding period for such property began after December 31, 1996,

        then in determining the decedent’s adjusted basis for such property immediately before the death of the decedent the improvements to such residence for each calendar year during which the decedent held it and used it as his principal residence shall be deemed to be not less than $250.

        ‘(B) SPECIAL RULES- For purposes of subparagraph (A):

          ‘(i) The term ‘principal residence’ has the same meaning as when used in section 1034.

          ‘(ii) The period taken into account shall include any period during the decedent’s holding period for this residence during which the decedent held a prior principal residence.

          ‘(iii) Holding and use by the decedent for more than 182 days in a calendar year shall be treated as holding and use by the decedent throughout the calendar year.

          ‘(iv) Holding and use by the spouse of the decedent shall be treated as holding and use by the decedent.

      ‘(3) DECEDENT’S BASIS UNKNOWN- If the facts necessary to determine the basis (unadjusted) of carryover basis property immediately before the death of the decedent are unknown and cannot reasonably be ascertained, such basis shall be treated as being the fair market value of such property as of the date (or approximate date) at which such property was acquired by the decedent or by the last preceding owner in whose hands it did not have a basis determined in whole or in part by reference to its basis in the hands of a prior holder.

      ‘(4) PERSONAL AND HOUSEHOLD EFFECTS-

        ‘(A) LOSS- In the case of any carryover basis property which, in the hands of the decedent, was a personal or household effect, for purposes of determining loss the basis of such property in the hands of the person acquiring such property from the decedent shall not exceed its fair market value.

        ‘(B) DETERMINATION OF MINIMUM BASIS- In determining under subsection (c)(2)(B) the aggregate of the initial bases of all carryover basis property, the basis of any property which is a personal or household effect shall be treated as not greater than the fair market value of such property.

      ‘(5) FAIR MARKET VALUE- For purposes of this section, when not otherwise distinctly expressed, the term ‘fair market value’ means value as determined under chapter 11 (without regard to whether there is a mortgage on, or indebtedness in respect of, the property).

      ‘(6) FAIR MARKET VALUE LIMITATION- The adjustments under subsections (c) and (d) shall not increase the basis of property above its fair market value.

      ‘(7) PROPERTY PASSING FROM THE DECEDENT- For purposes of this section, property passing from the decedent shall be treated as property acquired from the decedent.

      ‘(8) NONRESIDENTS NOT CITIZENS- In the case of a decedent who was (at the time of his death) a nonresident not a citizen of the United States--

        ‘(A) subsections (a)(3) and (b)(4) shall not apply,

        ‘(B) there shall be no section 1022 adjustment other than the death tax adjustment, and

        ‘(C) in applying subsection (c)(6)(C)--

          ‘(i) the reference to section 2001(c) shall be treated as referring to section 2101(d),

          ‘(ii) the reference to section 2001(b)(1) shall be treated as referring to section 2101(b)(1), and

          ‘(iii) 6 percent shall be substituted for 30 percent.

    ‘(f) SPECIAL RULE WHERE PROPERTY SOLD TO FUND DEATH TAXES-

      ‘(1) IN GENERAL- If the executor elects the benefits of this subsection, subsection (c)(5)(B) shall not apply to carryover basis property--

        ‘(A) which is a capital asset or property described in section 1231 in the hands of the estate or the person acquiring the property from the decedent, and

        ‘(B) is sold or exchanged by the estate or such person on or before the 30th day after the initial basis finality date.

      ‘(2) LIMITATION- The fair market value of all assets to which the election under this subsection applies shall not exceed the sum of the items set forth in paragraphs (1) and (2) of section 303(a).

      ‘(3) ELECTION REQUIREMENTS- An election under this subsection may be made only:

        ‘(A) TIME- On or before the 30th day after the initial basis finality date.

        ‘(B) IF CLOSELY HELD INTEREST- If the executor may make an election under section 6166.

    ‘(g) REGULATIONS- The Secretary shall prescribe such regulations as may be necessary to carry out the purposes of this section.’

    (b) TERMINATION OF APPLICATION OF SECTION 1014, ETC-

      (1) Section 1014 (relating to basis of property acquired from a decedent) is amended by adding at the end thereof the following new subsection:

    ‘(f) DECEDENTS DYING AFTER DECEMBER 31, 1996- In the case of a decedent dying after December 31, 1996, this section shall not apply to property for which a carryover basis is provided by section 1022.’

      (2) Subsection (a) of section 1016 (relating to adjustments to basis) is amended by striking ‘and’ at the end of paragraph (23), by striking the period at the end of paragraph (24) and inserting ‘; and’, and by adding at the end thereof the following new paragraph:

      ‘(25) to the extent provided in section 1022 (relating to carryover basis for certain property acquired from a decedent dying after December 31, 1996).’

    (c) NONRECOGNITION OF GAIN, ETC. WHERE CERTAIN APPRECIATED CARRYOVER BASIS PROPERTY IS USED IN SATISFACTION OF A PECUNIARY BEQUEST-

      (1) NONRECOGNITION OF GAIN-

        (A) IN GENERAL- Part III of subchapter O of chapter 1 (relating to common nontaxable exchanges) is amended by adding at the end thereof the following new section:

‘SEC. 1043. USE OF CERTAIN APPRECIATED CARRYOVER BASIS PROPERTY TO SATISFY PECUNIARY BEQUEST.

    ‘(a) GENERAL RULE- If the executor of the estate of any decedent satisfies the right of any person to receive a pecuniary bequest with appreciated carryover basis property, then gain on such exchange shall be recognized to the estate only to the extent that, on the date of such exchange, the fair market value of such property exceeds the value of such property for purposes of chapter 11.

    ‘(b) SIMILAR RULE FOR CERTAIN TRUSTS- To the extent provided in regulations prescribed by the Secretary, a rule similar to the rule provided in subsection (a) shall apply where--

      ‘(1) by reason of the death of the decedent, a person has a right to receive from a trust a specific dollar amount which is the equivalent of a pecuniary bequest, and

      ‘(2) the trustee of the trust satisfies such right with carryover basis property to which section 1022 applies.

    ‘(c) BASIS OF PROPERTY ACQUIRED IN EXCHANGE DESCRIBED IN SUBSECTION (a) OR (b)- The basis of property acquired in an exchange with respect to which gain realized is not recognized by reason of subsection (a) or (b) shall be the basis of such property immediately before the exchange, increased by the amount of the gain recognized to the estate or trust on the exchange.’

        (B) CLERICAL AMENDMENT- The table of sections for such part III is amended by adding at the end thereof the following new item:

‘Sec. 1043. Use of certain appreciated carryover basis property to satisfy pecuniary bequest.’

      (2) LIMITATION ON RECAPTURE RULES IN CASE OF CARRYOVER BASIS PROPERTY TRANSFERRED TO SATISFY PECUNIARY BEQUEST-

        (A) AMENDMENT OF SECTION 1245- Subsection (b) of section 1245 (relating to exceptions and limitations) is amended by adding at the end thereof the following new paragraph:

      ‘(9) TRANSFERS OF CARRYOVER BASIS PROPERTY TO SATISFY PECUNIARY BEQUEST- If property is disposed of and gain (determined without regard to this section) is not recognized in whole or in part under section 1043, then the amount of gain taken into account by the transferor under subsection (a)(1) shall not exceed the amount of gain recognized to the transferor on such disposition (determined without regard to this section).’

        (B) AMENDMENT TO SECTION 1250- Subsection (d) of section 1250 (relating to exceptions and limitations) is amended by adding at the end thereof the following new paragraph:

      ‘(11) TRANSFERS OF CARRYOVER BASIS PROPERTY TO SATISFY PECUNIARY BEQUEST- If property is disposed of and gain (determined without regard to this section) is not recognized in whole or in part under section 1043, then the amount of gain taken into account by the transferor under subsection (a) shall not exceed the amount of gain recognized to the transferor on such disposition (determined without regard to this section).’

    (d) PROCEDURE FOR BINDING DETERMINATION OF INITIAL BASIS-

      (1) IN GENERAL- Part IV of subchapter C of chapter 76 (relating to declaratory judgments) is amended by adding at the end thereof the following new section:

‘SEC. 7479. PROCEDURE FOR BINDING DETERMINATION OF INITIAL BASIS OF CARRYOVER BASIS PROPERTY.

    ‘(a) ADMINISTRATIVE AUDIT-

      ‘(1) DESIGNATION BY EXECUTOR- An executor may request the Secretary to audit the initial basis of any carryover basis property which is shown on the return of the tax imposed by chapter 11. Any such request shall be made on such return.

      ‘(2) AUTHORITY OF THE SECRETARY- For purposes of examining the correctness of the initial basis of any property with respect to which an executor has made a request under paragraph (1), the Secretary shall have the same authority as if he were determining the liability of any person for a tax imposed by this title.

    ‘(b) JUDICIAL REVIEW-

      ‘(1) BRINGING OF ACTION- If the executor and the Secretary have not entered into an agreement described in subsection (c)(2) with respect to any property for which a request has been made under subsection (a)(1), the executor may bring an action in the Tax Court with respect to such property.

      ‘(2) DECLARATION BY TAX COURT- Upon the filing of an appropriate pleading in an action brought under paragraph (1), the Tax Court may make a declaration of the initial basis of the property with respect to which such an action is brought. Any such declaration shall be final and conclusive and shall not be reviewed by any other court.

      ‘(3) TIME FOR BRINGING ACTION- No action may be brought under this subsection with respect to any property unless the pleading is filed--

        ‘(A) after the expiration of 1 year after the date on which the executor made a request under subsection (a)(1) with respect to such property, and

        ‘(B) before the 91st day after the later of--

          ‘(i) the day on which the Secretary sends by certified or registered mail a notification of his disagreement with the initial basis of the property shown on the return of the tax imposed by chapter 11, or

          ‘(ii) the expiration of the 1-year period referred to in subparagraph (A).

    ‘(c) BINDING EFFECT OF DETERMINATIONS-

      ‘(1) NO NOTICE FROM SECRETARY- If--

        ‘(A) an executor makes a request under subsection (a)(1) with respect to the initial basis of any property, and

        ‘(B) before the date 3 years after the day on which such request is made, the Secretary does not send to the executor by certified or registered mail notice of his disagreement with the initial basis of such property shown on the return of the tax imposed by chapter 11,

      then the initial basis so shown shall be binding and conclusive on the Secretary and on any person whose basis in such property is affected by such initial basis unless any such person establishes a different initial basis to the satisfaction of the Secretary.

      ‘(2) AGREEMENT BETWEEN SECRETARY AND EXECUTOR- If the executor and the Secretary sign a written agreement as to the initial basis of any property with respect to which the executor made a request under subsection (a)(1), such agreement shall be binding and conclusive on the Secretary and on any person whose basis in such property is affected by the initial basis in the same manner as if such agreement were a closing agreement under section 7121 between the Secretary and such person.

      ‘(3) TAX COURT DECISION BINDING ON HEIRS- Any declaration of the initial basis of any property made by the Tax Court which has become final shall also be binding on any person whose basis in the property is affected by the initial basis.

    ‘(d) INTERVENTION- Any person whose basis in any property is affected by the initial basis of any property shall be allowed to intervene in any administrative or judicial proceeding under this section with respect to such property.

    ‘(e) DEFINITIONS-

      ‘(1) IN GENERAL- Terms used in this section which are also used in section 1022 shall have the meanings as when used in section 1022.

      ‘(2) ESTATES NOT REQUIRED TO FILE ESTATE TAX RETURNS- In the case of any estate with respect to which a return of the tax imposed by chapter 11 is not required, any reference in this section or in section 1022 to such a return shall be treated as a reference to a return required under section 6039F(a).’

      (2) COMMISSIONERS- Subsection (c) of section 7456 (relating to Tax Court commissioners) is amended by striking out ‘and 7478’ and inserting in lieu thereof ‘7478, and 7479’.

    (e) INFORMATION RETURNS; ASSESSABLE PENALTY FOR NEGLIGENT OR FRAUDULENT OVERSTATEMENT OF INITIAL BASIS; PENALTIES FOR FAILURE TO FURNISH INFORMATION-

      (1) INFORMATION RETURNS- Subpart A of part III of subchapter A of chapter 61 (relating to information concerning persons subject to special provisions) is amended by adding after section 6039E the following new section:

‘SEC. 6039F. INFORMATION REGARDING CARRYOVER BASIS PROPERTY ACQUIRED FROM A DECEDENT.

    ‘(a) IN GENERAL- Every executor (as defined in section 2203) shall furnish the Secretary such information with respect to carryover basis property to which section 1022 applies as the Secretary may by regulations prescribe.

    ‘(b) STATEMENTS TO BE FURNISHED TO PERSONS WHO ACQUIRE PROPERTY FROM A DECEDENT- Every executor who is required to furnish information under subsection (a) shall furnish in writing to each person acquiring an item of such property from the decedent (or to whom the item passes from the decedent) the adjusted basis of such item.’

      (2) PENALTIES- Part I of subchapter B of chapter 68 (relating to assessable penalties) is amended by adding at the end thereof the following new section:

‘SEC. 6714. FAILURE TO FILE INFORMATION WITH RESPECT TO CARRYOVER BASIS PROPERTY.

    ‘(a) INFORMATION REQUIRED TO BE FURNISHED TO THE SECRETARY- Any executor who fails to furnish information required under section 6039F(a) on the date prescribed therefor (determined with regard to any extension of time for filing) shall, if such failure is due to negligence or intentional disregard of rules and regulations, pay a penalty of $100 for each such failure, but the total amount imposed for all such failures shall not exceed $5,000.

    ‘(b) INFORMATION REQUIRED TO BE FURNISHED TO BENEFICIARIES- Any executor who fails to furnish in writing to each person described in section 6039F(b) the information required under such section shall, if such failure is due to negligence or intentional disregard of rules and regulations, pay a penalty of $50 for each such failure, but the total amount imposed for all such failures shall not exceed $2,500.

    ‘(c) NEGLIGENT OR FRAUDULENT OVERSTATEMENT OF INITIAL BASIS-

      ‘(1) NEGLIGENT OVERSTATEMENT- If any part of an initial basis overstatement is due to negligence or intentional disregard of rules and regulations (but without intent to defraud) by the executor, such executor shall pay a penalty equal to 10 percent of such overstatement.

      ‘(2) FRAUDULENT OVERSTATEMENT- If any part of an initial basis overstatement is due to fraud by the executor, such executor shall pay a penalty equal to 30 percent of such overstatement.

      ‘(3) INITIAL BASIS OVERSTATEMENT DEFINED- For purposes of this subsection, the term ‘initial basis overstatement’ means the excess of--

        ‘(A) the initial basis of any carryover basis property shown on the return of the tax imposed by chapter 11 (or, if no such return is required, a return required under section 6039F(a)), over

        ‘(B) the amount determined to be the initial basis of such property.

    ‘(d) DEFICIENCY PROCEDURES NOT TO APPLY- Subchapter B of chapter 63 (relating to deficiency procedures for income, estate, gift, and certain excise taxes) shall not apply in respect of the assessment or collection of any penalty imposed by this section.’

      (3) CLERICAL AMENDMENTS-

        (A) The table of sections for subpart A of part III of subchapter A of chapter 61 is amended by adding after the item relating to section 6039E the following new item:

‘Sec. 6039F. Information regarding carryover basis property acquired from a decedent.’

        (B) The table of sections for part I of subchapter B of chapter 68 is amended by adding at the end thereof the following new item:

‘Sec. 6714. Failure to file information with respect to carryover basis property.’

    (f) $125,000 EXCLUSION MADE AVAILABLE TO SPOUSE OF DECEDENT IN CERTAIN CASES- Paragraph (2) of section 121(d) (relating to property of deceased spouse) is amended by striking the period at the end thereof and inserting in lieu thereof ‘, and, if the deceased spouse attained age 55 before the date of his death, then such individual shall be treated as satisfying the age requirement of subsection (a)(1) with respect to such property.’

    (g) EFFECTIVE DATE- The amendments made by this section shall apply to estates of decedents dying after December 31, 1996.

SEC. 3104. MISCELLANEOUS AMENDMENTS RELATED TO CARRYOVER BASIS.

    (a) ALLOWANCE OF CAPITAL LOSS CARRYOVERS TO AN ESTATE- Section 642 (relating to special rules for credits and deductions for estates and trusts) is amended by redesignating subsection (j) as (k) and by inserting after subsection (i) the following new subsection:

    ‘(j) UNUSED CAPITAL LOSS CARRYOVER TRANSFERRED TO ESTATE- In the case of a decedent with respect to whom section 1022 (relating to carryover basis property) applies, if, but for this subsection, part or all of any capital loss carryover under section 1212(b) for the decedent’s last taxable year would be lost, then, in accordance with regulations prescribed by the Secretary, the estate shall be allowed such carryover under section 1212(b) beginning with the estate’s first taxable year.’

    (b) CAPITAL GAIN TREATMENT FOR INHERITED ART WORK OR SIMILAR PROPERTY-

      (1) IN GENERAL- Subparagraph (C) of section 1221(3) (defining capital asset) is amended by inserting ‘(other than by reason of section 1022)’ after ‘is determined’.

      (2) COORDINATION WITH SECTION 170- Paragraph (1) of section 170(e) is amended by adding at the end thereof the following new sentence: ‘For purposes of this paragraph, the determination of whether property is a capital asset shall be made without regard to the exception contained in section 1221(3)(C) for basis determined under section 1022.’

    (c) EFFECTIVE DATE- The amendments made by this section shall apply to the estates of decedents dying after December 31, 1996.

TITLE IV--APPROPRIATIONS

SEC. 4001. APPROPRIATIONS.

    There is hereby appropriated for any fiscal year, out of any money in the Treasury not otherwise appropriated, an amount equal to each amount authorized by this Act for such fiscal year. Any amount appropriated under the preceding sentence for any fiscal year shall be expended only for the purpose for which authorized and shall remain available until the close of the second following fiscal year.

SEC. 4002. DESIGNATION AS EMERGENCY REQUIREMENT.

    The entire amount appropriated under this Act is designated by Congress as an emergency requirement pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985.