101st CONGRESS
1st Session
H. R. 3299
AMENDMENT
HR 3299 EAS1S
In the Senate of the United States,
October 13 (legislative day, September 18), 1989.
Resolved, That the bill from the House of Representatives (H.R. 3299)
entitled `An Act to provide for reconciliation pursuant to section 5
of the concurrent resolution on the budget for the fiscal year 1990',
do pass with the following
AMENDMENT:
Strike out all after the enacting clause and insert:

635dfca2ea2fcdd1af3453579d771c5d326582254eb82f52732a50ddc4cb0786

This Act may be cited as `The Omnibus Budget Reconciliation Act of 1989'.

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(a) SHORT TITLE- This title may be cited as the `Agricultural Reconciliation
Act of 1989'.
(b) TABLE OF CONTENTS- The table of contents is as follows:

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TITLE I

-COMMITTEE ON AGRI- CULTURE, NUTRITION, AND FORESTRY

Subtitle A--Agricultural Commodity Programs

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acreage.
Subtitle B--Agricultural Trade Programs

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8a1cb339bc6ca06d67da15bba4fa3991171d7214b79559d8bf0fe743280f42f1

Effective only for the 1990 crop of upland cotton, section 103A(f)(2)(A)
of the Agricultural Act of 1949 (7 U.S.C. 1444-1(f)(2)(A)) is amended
by striking `(not to exceed 25 percent)' and inserting `(not to exceed
25 percent or, in the case of the 1990 crop, if the Secretary projects
a carryover of more than 7,000,000 bales (as of July 31, 1991) of upland
cotton, not to exceed 30 percent)'.

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Section 201(d)(1) of the Agricultural Act of 1949 (7 U.S.C. 1446(d)(1))
is amended--
(1) in subparagraph (C)--
(A) in clause (ii), by inserting after `Except as provided in' the following:
`clause (iii) and'; and
(B) by adding at the end the following new clause:
`(iii) In carrying out this paragraph during calendar year 1990, the
Secretary shall offer to purchase butter and nonfat dry milk for not less
than $1.10 per pound for butter and $0.8475 per pound for nonfat dry milk,
except that the Secretary may allocate the rate of price support between
the purchase prices for nonfat dry milk and butter in such manner as the
Secretary determines will result in the lowest level of expenditures by the
Commodity Credit Corporation and shall notify the Committee on Agriculture
of the House of Representatives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate of such determination.'; and
(2) in subparagraph (D)(i), by striking `each of the calendar years 1988
and 1990' and inserting `calendar year 1988'.

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(a) IN GENERAL- Title IV of the Agricultural Act of 1949 (7 U.S.C. 1421
et seq.) is amended by adding at the end the following new section:
`SEC. 425. REDUCTION OF DEFICIENCY PAYMENTS FOR 1990 CROPS.
`(a) IN GENERAL- Notwithstanding any other provision of law, the amount of
deficiency payments made available to producers of the 1990 crops of wheat,
feed grains, upland cotton, and rice under sections 107D(c), 105C(c),
103A(c), and 101A(c), respectively, shall be reduced by--
`(1) in the case of wheat, 2.33 cents per bushel;
`(2) in the case of corn, 2.33 cents per bushel (and a comparable amount
for other feed grains, as determined by the Secretary);
`(3) in the case of upland cotton, .515 cents per pound; and
`(4) in the case of rice, 5.15 cents per hundredweight.
`(b) APPLICATION TO ADVANCE DEFICIENCY PAYMENTS- To the extent practicable,
the Secretary shall apply the reduction required under subsection (a)
to any advance deficiency payment made available to producers of the 1990
crops under section 107C.'.
(b) CONFORMING AMENDMENT- Effective only for the 1990 crops of wheat,
feed grains, upland cotton, and rice, section 107C(a)(2)(G) of such Act
(7 U.S.C. 1445b-2(a)(2)(G)) is amended by inserting after `subsection'
the following: `(taking into consideration any reduction in the payment
made under section 425)'.

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ACREAGE.
(a) PLANTING OF SOYBEANS, SUNFLOWERS, AND SAFFLOWERS ON PERMITTED ACREAGE-
Effective only for the 1990 crops, subsection (e) of section 504 the
Agricultural Act of 1949 (7 U.S.C. 1464(e)) is amended to read as follows:
`(e) Notwithstanding any other provision of this Act--
`(1) Effective for the 1990 crops, the Secretary shall, subject to paragraph
(2), permit producers on a farm to plant soybeans, sunflowers, or safflowers
on a portion specified by the producer (but in any event not more than 25
percent) of the producers' 1990 wheat, feed grain, upland cotton, extra long
staple cotton, and rice permitted acreage, as determined by the Secretary.
`(2)(A) The Secretary shall establish a sign-up period during which the
producers on a farm, participating in the 1990 crop wheat, feed grain,
upland cotton, extra long staple cotton, or rice price support and
production adjustment program, must state their intentions regarding use
of the increased planting provision under paragraph (1).
`(B) After termination of the sign-up period under subparagraph (A), the
Secretary shall estimate whether, based on the anticipated additional
soybean, sunflower, and safflower plantings for the crop, the average
market price for the 1990 crop of soybeans will be below 115 percent of
the loan rate established for the 1989 crop of soybeans.
`(C) If the Secretary estimates that the average market price for the 1990
crop of soybeans will be below 115 percent of such loan rate, the Secretary
shall reduce the percentage of permitted acreage on the farm that may be
planted to soybeans, sunflowers, and safflowers to a level, or prohibit
such plantings, as is necessary to ensure, to the extent practicable,
that the average soybean market price does not fall below 115 percent of
such loan rate.
`(D) The Secretary shall submit to the Committee on Agriculture of the
House of Representatives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate a statement setting forth the reasons for any
reduction in the permitted planting percentage, or prohibition on such
plantings, under this paragraph.
`(3)(A) For the purposes of determining the farm acreage base or the crop
acreage bases for the farm, any acreage on the farm on which soybeans,
sunflowers, or safflowers are planted under this subsection shall be
considered to be planted to the program crop for which soybeans, sunflowers,
or safflowers are substituted.
`(B) The Secretary may not make program benefits other than soybean or
sunflower seed price support loans and purchases available to producers
with respect to acreage planted to soybeans, sunflowers, or safflowers under
this subsection and shall ensure that the crop acreage bases established for
the farm and the farm acreage base are not increased due to such plantings.'.
(b) FEED GRAIN ACREAGE LIMITATION PROGRAM- Effective only for the 1990 crop
of feed grains, section 105C(f)(1)(C) of such Act (7 U.S.C. 1444e(f)(1)(C))
is amended--
(1) by striking `(C)', `1990', `(i)', and `(ii)' and inserting `(C)(i)',
`1989', `(I)', and `(II)', respectively; and
(2) by adding at the end the following new clause:
`(ii) In the case of the 1990 crop of feed grains, if the Secretary
estimates, not later than September 30, 1989, that the quantity of corn
on hand in the United States on the first day of the marketing year for
that crop (not including any quantity of corn of that crop) will be--
`(I) more than 2,000,000,000 bushels, the Secretary shall provide for an
acreage limitation program (as described in paragraph (2)) under which the
acreage planted to feed grains for harvest on a farm would be limited to
the feed grain crop acreage base for the farm for the crop reduced by not
less than 12 1/2  percent nor more than 20 percent;
`(II) less than 2,000,000,000 bushels but more than 1,800,000,000 bushels,
the Secretary shall provide for an acreage limitation program (as described
in paragraph (2)) under which the acreage planted to feed grains for
harvest on a farm would be limited to the feed grain crop acreage base
for the farm for the crop reduced by not less than 10 percent nor more
than 12 1/2  percent; or
`(III) 1,800,000,000 bushels or less, the Secretary may provide for an
acreage limitation program (as described in paragraph (2)) under which the
acreage planted to feed grains for harvest on a farm would be limited to
the feed grain crop acreage base for the farm for the crop reduced by not
more than 10 percent.'.
Subtitle B--Agricultural Trade Programs

a1f50c7250d947b5a3d867498e25a3af09fb37d5c4cafc6efc07623d628d3200

(a) REDUCTION OF EXPENDITURES- During fiscal year 1990, except to the extent
provided for under section 4301 of the Agricultural Competitiveness and
Trade Act of 1988 (Public Law 100-418; 7 U.S.C. 1446 note), the Commodity
Credit Corporation shall not make available to exporters, processors,
and foreign importers under the authority of section 5(f) of the Commodity
Credit Corporation Charter Act (15 U.S.C. 714c(f)) more than $650,000,000
in commodities of the Commodity Credit Corporation to enhance the export
of United States commodities by making the price of such commodities
competitive in the world market.

58c03e78f0d3e4239f1f0a6bf23910fdc9fe88435b6f880fcf6a697479ab415f

Section 1124(a) of the Food Security Act of 1985 (7 U.S.C. 1736s(a))
is amended--
(1) by striking `and' at the end of paragraph (2); and
(2) by striking paragraph (3) and inserting the following:
`(3) for the fiscal year 1989, the Secretary shall use under this section
not less than $325,000,000 of the funds of, or commodities owned by,
the Corporation; and
`(4) for the fiscal year 1990, the Secretary shall use under this section
not less than $225,000,000 of the funds of, or commodities owned by,
the Corporation.'.
Subtitle C--General Provisions

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SYSTEM INSTITUTIONS.
(a) DELAYED EFFECTIVE DATE FOR STOCK PURCHASE REQUIREMENT- Notwithstanding
any other provision of law, the amendments to section 6.29 of the Farm
Credit Act of 1971 (12 U.S.C. 2278b-9) made by section 646 of the Rural
Development, Agriculture, and Related Agencies Appropriations Act, 1989
(Public Law 100-460; 102 Stat. 2266) shall be effective on October 1, 1992.
(b) Payments-
(1) FOUR ANNUAL PAYMENTS- Notwithstanding any other provision of law, the
Financial Assistance Corporation shall pay, out of the Trust Fund established
under section 6.25 of the Farm Credit Act of 1971 (12 U.S.C. 2278b-5), to
each of the institutions of the Farm Credit System that purchased stock
in the Financial Assistance Corporation under section 6.29 of the Farm
Credit Act of 1971, four annual payments as provided in this subsection.
(2) TIMING OF PAYMENTS- The annual payments provided for by this subsection
shall be made available as soon as practicable after October 1 of each of
the calendar years 1989 through 1992.
(3) CALCULATION OF FIRST PAYMENT- The first annual payment made available
under this subsection shall be in an amount equal to--
(i) a percentage equal to 1.5 times the average rate of interest received by
the Financial Assistance Corporation from March 30, 1988, through September
30, 1989; times
(ii) the difference between $177,000,000 and 4.4 percent of the amount
of the cumulative amount of the bonds issued by the Financial Assistance
Corporation by September 30, 1989.
(4) CALCULATION OF REMAINING PAYMENTS- The second, third, and fourth payments
made available under this subsection shall be in an amount equal to--
(i) a percentage equal to the average rate of interest received by the
Financial Assistance Corporation during each of the fiscal years 1990
through 1992; times
(ii) the difference between $177,000,000 and 4.4 percent of the amount of
the cumulative amount of the bonds issued by September 30 of each of such
fiscal years.
(5) DISTRIBUTION OF ANNUAL PAYMENTS- Annual payments due under this
subsection shall be made available to each institution described in paragraph
(1) in an amount equal to the total amount of annual payments to be made
available times the ratio of the amount of stock each institution purchased
divided by $177,000,000.

7b58f05f13632ac39c04bc6d39cac22e564cec1d017f89d8661f3d7941bd9001

(a) IN GENERAL- Section 5.55 of the Farm Credit Act of 1971 (12
U.S.C. 2277a-4(a)) is amended--
(1) by striking subsection (a) and inserting the following new subsection:
`(a) AMOUNT IN FUND NOT EXCEEDING SECURE BASE AMOUNT-
`(1) IN GENERAL- Until the aggregate of amounts in the Farm Credit Insurance
Fund exceeds the secure base amount, the annual premium due from any
insured System bank for any calendar year shall be equal to the sum of--
`(A) the annual average principal outstanding (as adjusted under paragraph
(2)) for such year on loans made by the bank that are in accrual status,
multiplied by 0.0015; and
`(B) the annual average principal outstanding (as adjusted under paragraph
(2)) for such year on loans made by the bank that are in nonaccrual status,
multiplied by 0.0025.
`(2) ADJUSTMENT OF ANNUAL AVERAGE PRINCIPAL OUTSTANDING- The Corporation,
under procedures and criteria established by regulation, shall adjust
downward the annual average principal outstanding for a bank during
a year to exclude all or a portion of any principal outstanding on
Government-guaranteed loans made by the bank and loans made by associations
serviced by such bank (as described in subsection (d)(1)), as appropriate on
an actuarial basis to more accurately reflect the reduced risks associated
with such loans for the holders of insured obligations of insured System
banks.
`(3) DEFINITION OF GOVERNMENT-GUARANTEED LOANS- As used in this subsection
and subsection (c), the term `Government-guaranteed loan' means a loan, or
portion of a loan, made by an insured System bank that carries a full faith
and credit performance or loss guarantee or surety or an unconditional
guarantee of the United States Government or any State government, or
of any department, agency, bureau, board, commission, or establishment
thereof, or any corporation wholly owned directly or indirectly by the
United States or any State.';
(2) in subsection (b), by inserting after `for the following calendar year'
the following: `, as determined under subsection (a),';
(3) in subsection (c), by inserting after `at such time' the following:
`(adjusted downward to exclude, from that portion of such obligations
attributable to Government-guaranteed loans made by insured System banks
and loans made by associations serviced by such banks (as described in
subsection (d)(1)), an amount that reflects all risk-based reductions of
principal outstanding on such guaranteed loans for purposes of establishing
premium rates under subsection (a), as determined by the Corporation)'; and
(4) in subsection (d), by striking paragraph (1) and inserting the following
new paragraph:
`(1) by any production credit association or any other association making
direct loans under authority transferred to it under section 7.6, that
is able to make such loans because such association is receiving, or has
received, funds provided through the Farm Credit Bank;'.
(b) EFFECTIVE DATE- The amendments made by subsection (a) shall become
effective on January 1, 1989.

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(a) IN GENERAL- Section 1319 of the National Flood Insurance Act of 1968
(42 U.S.C. 4026) is amended by striking `September 30, 1989' and inserting
`September 30, 1991'.
(b) EMERGENCY IMPLEMENTATION- Section 1336(a) of the National Flood Insurance
Act of 1968 (42 U.S.C. 4056(a)) is amended by striking `September 30,
1989' and inserting `September 30, 1991'.
(c) STRUCTURES ON LAND SUBJECT TO IMMINENT COLLAPSE OR SUBSIDENCE- Section
1306(c)(7) of the National Flood Insurance Act of 1968 (42 U.S.C. 4013(c)(7))
is amended by striking `September 30, 1989' and inserting `September 30,
1991'.

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TITLE II

-COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS

Section 1360(a) of the National Flood Insurance Act of 1968 (42
U.S.C. 4101(a)) is amended by striking paragraph (2) and inserting the
following:
`(2) establish or update flood-risk zone data in all such areas, and make
estimates with respect to the rates of probable flood caused loss for the
various flood risk zones for each of these areas until the date specified
in section 1319.'.

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TITLE III

-COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

(a) Establishment of Commercial Aviation Fee-
(1) IN GENERAL- The Secretary of Transportation shall establish, assess,
and collect a fee, which shall be imposed as of October 1, 1989, for
each passenger on commercial aircraft departing the United States on
international flights during fiscal year 1990.
(2) AMOUNT OF FEE- The amount of a fee under this section is $3 per
passenger on each flight with respect to which the fee is assessed.
(3) DEPOSIT OF FEES- Amounts received by the United States Government
under this subsection shall be deposited in the general fund of the
Treasury as offsetting receipts of the Department of Transportation
and ascribed to the activities of the Department of Transportation
(including the Federal Aviation Administration) involving the monitoring
and regulation of international air transportation operations, including
air traffic control operations, aviation security and safety inspections,
and activities associated with participation in the International Civil
Aviation Organization.
(4) REGULATIONS- The Secretary of Transportation shall prescribe regulations
implementing this subsection not later than 60 days after the date of
enactment of this subsection.
(b) ESTABLISHMENT OF PASSENGER VESSEL FEE-
(1) IN GENERAL- Chapter 35 of title 46, United States Code, is amended by
adding at the end the following new section:
`Sec. 3507. Passenger vessel fee
`(a) The Secretary shall establish, assess, and collect a fee, which shall
be imposed as of October 1, 1989, for each covered voyage during fiscal
year 1990 of--
`(1) a passenger vessel having berth or stateroom accommodations for more
than 16 passengers that is on a voyage that extends over 1 or more nights,
except a vessel that is--
`(A) on a voyage of less than 12 hours between 2 points in the United
States; or
`(B) owned and operated by a State or a political subdivision of a State; or
`(2) a vessel transporting passengers engaged in gambling aboard the vessel
beyond the territorial sea of the United States.
`(b)(1) Subject to paragraph (2) of this subsection, the amount of a fee
under this section is $3 for each passenger on a vessel for a covered voyage
with respect to which the fee is assessed. Such fee shall be assessed only
once for each passenger on a covered voyage, either when such passenger
first embarks in the United States or when the passenger first disembarks
in the United States.
`(2) The Secretary shall reduce a fee under this section for a covered
voyage of a vessel in an amount equal to--
`(A) the amount for which the person from whom the fee is collected is
liable with respect to that voyage under section 4461 of the Internal Revenue
Code of 1986 (26 U.S.C. 4461), relating to harbor maintenance tax; plus
`(B) an amount, to be determined by the Secretary, representing fees for
which that person is liable for inspections of the vessel performed by
the Coast Guard.
`(c) A fee under this section may be collected from an owner, operator,
or person in charge of a vessel for a covered voyage with respect to which
the fee is assessed.
`(d) Of amounts received by the United States Government under this section--
`(1) two-thirds shall be deposited as offsetting receipts into the Harbor
Maintenance Trust Fund established by section 9505 of the Internal Revenue
Code of 1986 (26 U.S.C. 9505); and
`(2) one-third shall be deposited into the general fund of the Treasury as
offsetting receipts of the department in which the Coast Guard is operating
and ascribed to Coast Guard activities.
`(e) In this section, `covered voyage' means a voyage of a passenger vessel
during which passengers of the vessel embark or disembark the vessel in
the United States.'.
(2) REGULATIONS- The Secretary of the department in which the Coast Guard
is operating shall prescribe regulations implementing section 3507 of
title 46, United States Code, as added by this subsection, not later than
60 days after the date of enactment of this subsection.
(3) CLERICAL AMENDMENT- The table of sections at the beginning of chapter
35 of title 46, United States Code, is amended by adding at the end the
following:
`3507. Passenger vessel fee.'.
(4) CONFORMING AMENDMENT- Section 9505(a) of the Internal Revenue Code of
1986 (26 U.S.C. 9505(a)), relating to the Harbor Maintenance Trust Fund,
is amended--
(A) in paragraph (2) by striking `, or' and inserting in lieu thereof
a comma;
(B) in paragraph (3) by striking the period at the end and inserting in
lieu thereof `, or'; and
(C) by adding at the end the following new paragraph:
`(4) deposited into the Harbor Maintenance Trust Fund under section
3507(d)(1) of title 46, United States Code (relating to passenger vessel
fee).'.

67255ddf28fed8eef6d8e0c40c5e7ad334aafeffd0fb7109b6d375302e7d8b01

(a) IN GENERAL- Notwithstanding the provisions of section 2110 of title
46, United States Code, the Secretary of the department in which the
Coast Guard is operating (hereinafter in this section referred to as the
`Secretary') shall establish and implement a system for the collection,
commencing October 1, 1989, of $50,000,000 in fiscal year 1990 in receipts
from payments by users of services provided by the Coast Guard, other than
services associated with emergency search and rescue. Amounts received by
the United States Government under this section shall be deposited into
the general fund of the Treasury as offsetting receipts of the department
in which the Coast Guard is operating and ascribed to Coast Guard activities.
(b) REGULATIONS- The Secretary shall, by October 1, 1989, issue regulations
to carry out the provisions of subsection (a) of this section. Such
regulations shall include a schedule of fees which shall be established
in accordance with the provisions of section 9701 of title 31, United
States Code.
(c) Applicability-
(1) PAYMENTS FROM STAMPS AND FEES- The system established and implemented
under subsection (a) of this section shall include collections of payments
from--
(A) the sale of Support of Services Stamps, possession of which will
entitle the holder of such Stamps to specified services without charge; and
(B) fees to be charged to users of such specified services who have not
purchased such a Support of Services Stamp.
(2) CONSIDERATION OF PAYMENTS FOR CERTAIN COAST GUARD SERVICES- In developing
such system and issuing regulations under this section, the Secretary
shall consider collection of receipts from payments for non-emergency
search and rescue, as well as other services provided by the Coast Guard.
(d) MINIMIZATION OF ADVERSE EFFECTS ON MARITIME INDUSTRY- The Secretary
shall, to the maximum extent practicable, ensure that such system minimizes
adverse economic effects upon commercial towing services and other segments
of the maritime industry.
(e) REPORT- The Secretary shall report to the Congress on or before September
1, 1989, regarding activities undertaken to establish and implement such
system and on or before September 1, 1990, regarding the implementation
and effects of such system.
(f) DISCLAIMER- Nothing in this section shall alter or expand the duties
and liability of the United States under existing law for the performance of
functions for which fees or payments are collected. The collection of such
fees or payments shall not constitute an express or implied undertaking by
the United States to perform any service or activity in a certain manner
or to provide any service at a particular time or place.

ab1910f61fe8a5d900fda39b370518dac256ac7605337584ef40ff21ae2a8bd4

(a) IN GENERAL- The Secretary of Transportation shall, within 180 days
after the date of enactment of this section, establish a schedule of fees
to be collected--
(1) for each slot issued by the Federal Aviation Administration on behalf
of the Federal Government and held by an air carrier, other than a commuter
operator, at high density traffic airports; and
(2) to the extent consistent with international law and treaty obligations
of the United States, for each such slot held by a foreign air carrier at
such airports.
Such fees shall reasonably reflect the value of each such slot to its
holder. The total amount of fees collected under this schedule shall be at
least $239,000,000 for fiscal year 1990.
(b) DEPOSIT OF FEES- The fees collected under these provisions shall be
deposited in the general fund of the Treasury as offsetting receipts of
the Federal Aviation Adminis- tration.
(c) REGULATIONS- The Secretary shall prescribe appropriate regulations to
carry out the provisions of this section.
(d) DEFINITION- As used in this section--
(1) the terms `air carrier' and `foreign air car- rier' have the meanings
given such terms, respectively, in section 101 of the Federal Aviation
Act of 1958 (49 App. U.S.C. 1301); and
(2) the term `high density traffic airports' means airports so designated
in subpart K of part 93 of title 14, Code of Federal Regulations, as in
effect on the date of enactment of this section.
Subtitle A--Atmospheric Pollution Fees
TABLE OF CONTENTS

7d3fa97a3a226534b5e192a278474dd91c03483ac0447f1d3b3db3fa87a01225

OFFSET OF GOVERNMENT EXPENSES ASSOCIATED WITH IMPLEMENTATION OF REGULATORY
CONTROLS AND IMPOSITION OF PRODUCTION, IMPORTATION, AND DISTRIBUTION FEES
ON OZONE DEPLETING CHEMICALS

3f9b380968ae1300154470d654efb3c9831ed67ac0118128a3c3a4ea30dfc48c

TITLE IV

-ENVIRONMENT AND PUBLIC WORKS

regulatory controls and support for activities related to alternatives to
ozone-depleting chemicals.

856ce731d4da4b278762f0ae4ea9cacc4ff6f0759b0f48d0fddc007790629d3e

f8cfcc5b8912d58b47369869108b81db7f60093117187e4b9856583fed689b9c

Climate Protection Act of 1989'.
FINDINGS

fa211539040808073637ed5ceb23aeff47fe1c8723b9da25062347ced7f7946e

(1) the best available scientific evidence shows that manufactured
substances, including chlorofluorocarbons and other substances covered
by this subtitle, are destroying stratospheric ozone, and significantly
contributing to global climate change by enhancing the greenhouse effect
and causing other atmospheric modifications;
(2) no level of stratospheric ozone depletion or global climate change
caused by human activities can be deemed safe;
(3) stratospheric ozone depletion will lead to increased incidence of solar
ultraviolet radiation in the troposphere and at the surface of the Earth;
(4) increased incidence of solar ultraviolet radiation will cause increased
rates of disease in humans (including increased rates of skin cancer,
cataracts, and, potentially, suppression of the immune system), threaten food
crops and marine resources, and otherwise damage the natural environment;
(5) the Ozone Trends Report completed in March 1988 through the effort of
over one hundred international scientists found undisputed observational
evidence that the atmospheric concentrations of source gases important
in controlling stratospheric ozone levels and aggravating the problem of
uncontrolled global climate change (chlorofluorocarbons, halons, methane,
nitrous oxide, and carbon dioxide) are increasing on a global scale as a
result of human activities;
(6) scientific expeditions and analyses have established that chlorine
compounds derived from emissions of chlorofluorocarbons are responsible
for destruction of the stratospheric ozone layer over the Antarctic and
the surrounding oceans;
(7) recent scientific reports indicate that a similar destruction of the
ozone layer may occur over the Arctic region and that the same chlorine
compounds found in the Antarctic region are present in areas of the Arctic
ozone layer;
(8) experimental laboratory studies and measurements of ozone depletion
suggest that the chemical reactions responsible for destruction of ozone
over Antarctica could operate in the aerosol layer of the stratosphere
and would not be limited to the polar regions;
(9) the Montreal Protocol on Substances that Deplete the Ozone Layer (the
Montreal Protocol) provides a framework for all nations of the world to
protect the Earth's ozone shield;
(10) the control measures that are set forth in the Montreal Protocol (a
freeze on the consumption of certain chlorofluorocarbons at 1986 levels
in 1989 followed by a 20 per centum reduction in 1993 and an additional 30
per centum reduction in 1998, coupled with a freeze on the consumption of
certain halons at 1986 levels in 1992) will allow atmospheric concentrations
of chlorine to increase by more than a factor of two;
(11) restrictions on the production and use of chlorofluorocarbons and
halons, as required under the Montreal Protocol and by Environmental
Protection Agency regulations, will reduce the supply and increase the price
of these chemicals, and that increased prices will provide unwarranted,
excess rates of return to producers, importers and distributors of these
chemicals which may, absent payment to the Government as fees in exchange
for limited production, importation and distribution rights, provide
a disincentive for the introduction of substitute chemicals to replace
chlorofluorocarbons and other substances covered by this subtitle;
(12) in exchange for the limited rights to produce or import
chlorofluorocarbons and other ozone depleting substances, the Government
should charge fees approximating the market value of such limited rights and
use such fees to offset Government expenses associated with implementation
of regulatory restrictions, to supplement other regulations and controls
applicable to such substances, and for the benefit of the public;
(13) because of the worldwide recognition of the need to reduce significantly
the use of ozone-depleting chemicals, United States chemical producers
and chlorofluorocarbon and halon user industries should be encouraged to
develop improved chemicals, products, and technologies that do not rely
on chlorofluorocarbons and halons;
(14) the Ozone Trends Report and other recent scientific studies have
raised serious questions about the adequacy of the control measures that
are set forth in the Montreal Protocol;
(15) ozone depleting chlorofluorocarbons are also powerful greenhouse gases
projected to be responsible for 15 to 25 per centum of global warming and,
under the existing Montreal Protocol, 10 per centum of future warming;
(16) stratospheric ozone depletion and global climate change from continued
emissions of chlorofluorocarbons and other halogenated chlorocarbons with
ozone depleting potential, and emissions of other gases, such as methane
and carbon dioxide, imperil human health and the environment worldwide;
(17) in order to stabilize and eventually reduce concentrations of chlorine
and bromine in the stratosphere, to conserve the stratospheric ozone layer
(an exhaustible natural resource), and to reduce the extent of global
climate change--
(A) emissions of chlorofluorocarbons and other substances covered by this
subtitle, including halogenated carbons with ozone depleting potential,
should be terminated rapidly;
(B) it is necessary to control international trade in substances covered
by this subtitle and products containing such substances; and
(C) emissions of other gases, such as methane and carbon dioxide, should
be controlled;
(18) the highest priority must be given to developing and deploying safe
and energy efficient products and technologies as substitutes for ozone
depleting substances as rapidly as possible; and
(19) the United States needs to develop and deploy safe, energy efficient
substitutes to replace ozone depleting substances in order to demonstrate
to the world its commitment to protect the stratosphere and to limit global
climate change.
OBJECTIVES AND NATIONAL GOAL

1fb4cdd7eb73cac1b4e116ca276d826712c4da669a7b296e75d8e063d34817de

maintain the chemical and physical integrity of the Earth's atmosphere,
to protect human health and the global environment from all known and
potential dangers due to atmospheric or climatic modification, including
stratospheric ozone depletion, to provide for a smooth transition from the
use of ozone-depleting chemicals to the use of safe chemicals, products,
and technologies that do not threaten the ozone layer, and to reduce the
generation of greenhouse gases in order to protect the Earth's ozone layer
and to limit anthropogenically induced global climate changes by--
(1) reducing significantly the production and emission into the atmosphere
of pollutants caused by human activities,
(2) promoting the rapid development and deployment of energy efficient
alternatives to the use of chlorofluorocarbons and other substances covered
by this subtitle,
(3) assuring that such alternatives reduce ozone depleting potential to
the maximum extent possible and, at the same time, do not exacerbate the
problem of human induced global climate change either directly as radiatively
important trace gases or indirectly as substances that reduce the energy
efficiency of products which incorporate or use such substances, and
(4) promoting additional scientific research on atmospheric or climatic
modification, including stratospheric ozone depletion, and on the known
and potential adverse effects therefrom on human health and the global
environment.
(b) In order to achieve the objectives of this subtitle, it is the national
goal to eliminate atmospheric emissions of manufactured substances with
ozone depleting potential as well as direct and indirect global warming
potential, including chlorofluorocarbons and other halogenated carbons with
ozone depleting and global warming potential, to reduce to the maximum extent
possible emissions of other gases caused by human activities that are likely
to affect adversely the global climate, and to provide for an orderly and
equitable shift to alternative, safe chemicals, products, and technologies.
DEFINITIONS

373af273473e61b03d13b135f0b45c3e9e4314a92622c2c9265296f120579a85

(1) `Administrator' means the Administrator of the Environmental Protection
Agency;
(2) `distributor' means any person who purchases directly from a producer
or importer and markets or sells, at wholesale or retail, ozone depleting
chemicals subject to production, importation and distribution fees under
this subtitle;
(3) `household appliances' means noncommercial personal effects, including
air-conditioners, refrigerators, and motor vehicles;
(4) `import' means to land on, bring into, or introduce into, or attempt to
land on, bring into, or introduce into, any place subject to the jurisdiction
of the United States, whether or not such landing, bringing, or introduction
constitutes an importation within the meaning of the customs laws of the
United States;
(5) `manufactured substances' means any organic or inorganic chemical
substances of a particular molecular identity, or any mixture, that has
been manufactured for commercial purposes;
(6) `medical purposes' means medical devices and diagnostic products
(including drugs, as defined in the Federal Food, Drug, and Cosmetic Act
(21 U.S.C. 321) and drug delivery systems) (A) for which no safe substitute
has been developed and (B) which, after notice and opportunity for public
comment, has been approved and determined to be essential by the Commissioner
of the Food and Drug Administration, in consultation with the Administrator;
(7) `ozone-depleting chemicals' refers to those chemicals listed under
section 4011 of this subtitle;
(8) `person' means an individual, corporation (including a government
corporation), partnership, firm, joint stock company, trust, association,
or any other entity, or any officer, employee, agent, department, or
instrumentality of the Federal Government, of any State or political
subdivision thereof (including any interstate body), or of any foreign
government (including any international instrumentality);
(9) `producer' means the manufacturer of ozone-depleting chemicals subject
to production, importation and distribution fees under this subtitle;
(10) `Secretary' means the Secretary of the Treasury; and
(11) `substances covered by this subtitle' means those substances which are
known or may reasonably be anticipated to cause or contribute to atmospheric
or climatic modification, including stratospheric ozone depletion, and
are listed under subsections (a) or (b) of section 4005 of this subtitle.
OFFSET OF GOVERNMENT EXPENSES ASSOCIATED WITH IMPLEMENTATION OF REGULATORY
CONTROLS AND IMPOSITION OF PRODUCTION, IMPORTATION AND DISTRIBUTION FEES ON
OZONE-DEPLETING CHEMICALS
IMPOSITION OF FEES

11cd2461b53378d31a5059556c64b3729af2e7f7fdd15f000f0cd9dcb135aa46

of this subtitle, the Administrator shall issue such regulations as may
be necessary to impose production, importation and distribution fees,
commencing with the effective date provided by the following table, on
producers, importers and distributors of the following chemicals:
Ozone-Depleting Chemical
--Effective Date
Trichlorofluoromethane (CFC-11)
--July 1, 1989
Dichlorodifluoromethane (CFC-12)
--July 1, 1989
Trichlorotrifluoroethane (CFC-113)
--July 1, 1989
Dichlorotetrafluoroethane (CFC-114)
--July 1, 1989
(Mono) chloropentafluoroethane (CFC-115)
--July 1, 1989
Bromochlorodifluoroethane (Halon 1211)
--January 1, 1992
Bromotrifluoroethane (Halon 1301)
--January 1, 1992
Dibromotetrafluoroethane (Halon 2402)
--January 1, 1992.
Ozone-depleting chemicals that have been recovered and recycled shall not
be subject to the production, importation and distribution fees established
under this subtitle.
(2) Such regulations shall include and establish the 1987 average sales price
charged by producers, importers and distributors for each ozone-depleting
chemical subject to a production, importation and distribution fee under this
subtitle. To reflect changes in production, importation and distribution
costs, the Administrator shall publish, on April 1, 1991 and on April
1 of each calendar year thereafter, an annual adjustment to such 1987
average sales prices. The adjustment shall reflect an amount indicated by
(A) the producer price index for basic inorganic chemicals (published by
the Department of Labor) for the period covered by the preceding calendar
year and (B) other appropriate measurements established in regulations
promulgated by the Administrator.
(b)(1) BASE FEE- Each person producing or importing an ozone depleting
chemical subject to a production, importation and distribution fee under
this subtitle shall be required to pay, on a quarterly basis, for the right
to produce or import such chemical. Such fee shall be an amount equal to
sixty cents per pound of such chemical produced or imported by such person
during the preceding three months.
(2) ALTERNATIVE FEE- The production, importation and distribution fees
established and due under this subtitle shall be the greater of (A) an amount
equal to the base fee established under paragraph (1) of this subsection;
or (B) an amount equal to each producer's, importer's and distributor's
share of the total revenues collected by all such producers, importers and
distributors and attributable to sales of each ozone-depleting chemical
subject to a production, importation and distribution fee less (i) an
allowance equal to the revenues that such sales would have generated at
the 1987 average sales price for each such chemical, as determined and
adjusted by the Administrator in accordance with the preceding subsection,
and (ii) an amount equal to Federal and State income taxes due and payable
on such revenues by such producer, importer or distributor. For purposes
of computing the fee due and payable by a distributor under subparagraph
(B) of this paragraph, the amount equal to such distributor's share of
total revenues collected shall, in addition to the adjustments referred
to in clauses (i) and (ii), be offset by an amount equal to sixty cents
per pound of each ozone depleting chemical subject to a production,
importation and distribution fee and sold by such distributor.
(3) Within sixty days following the date of enactment of this subtitle,
the Administrator, in consultation with the Secretary, shall issue such
regulations as may be necessary to collect the production, importation and
distribution fees established by this subtitle, including requirements
for payment, on a quarterly basis, of such fees by producers, importers
and distributors of ozone-depleting chemicals subject to such production,
importation and distribution fees. The importation fees established by this
subtitle shall be due and payable by the importer of record as listed on
United States Custom Form 7501.
(c) The Administrator may promulgate regulations adding to the list
of ozone-depleting chemicals subject to the production, importation and
distribution fees referred to in subsection (a), any chemical that is known
or can reasonably be anticipated to cause or contribute to stratospheric
ozone depletion and is subject to regulatory controls that limit, on a
chemical specific basis, production and importation. The Administrator
shall also promulgate regulations to accelerate the effective dates in
subsection (a) if such changes are necessary to protect public health and
the environment and are in furtherance of the goal and objectives of this
subtitle as set forth in section 4003.
(d) In promulgating regulations under this section, the Administrator shall
take such action as may be necessary, consistent with the purposes of this
section, to assure that no production, importation and distribution fee
shall be imposed under this subtitle on any ozone-depleting chemical that
is used and entirely consumed in the production of other ozone depleting
chemicals that are subject to production, importation and distribution
fees under this subtitle.
(e) Any person exporting an ozone-depleting chemical subject to a production,
importation and distribution fee established by this subtitle may apply to
the Administrator for a refund of fees paid by such person and attributable
to the quantity of such ozone-depleting chemical that such person exported
during the assessment period to a developing country that is a party to
the Montreal Protocol on Substances that Deplete the Ozone Layer and is
subject to Article 5 of such Protocol. Applications for refunds must be
submitted to the Administrator for approval within thirty days after the
end of the applicable assessment period. The Administrator shall review
the request for a refund and notify both the requester and the Secretary
within sixty days of the approval or denial of such requests. Requests
for refunds approved by the Administrator shall be paid by the Secretary.
OFFSETTING GOVERNMENT EXPENSES ASSOCIATED WITH IMPLEMENTATION OF REGULATORY
CONTROLS AND SUPPORT FOR ACTIVITIES RELATED TO ALTERNATIVES TO OZONE-DEPLETING
CHEMICALS

a8494a4776d3dcb977a809880180fa32bb29c6f101d13b1598eb99281000ee0b

year shall be deposited as offsetting receipts in the Ozone Layer and
Climate Protection Trust Fund established by section 4013 of this subtitle.
TRUST FUND

f7de479b33becc88f7ae9068b68500a395de55587819839b8575872d04573adb

a trust fund to be known as the `Ozone Layer and Climate Protection Trust
Fund' (referred to in this subtitle as the `Trust Fund'). The Trust Fund
shall consist of such amounts as may be deposited in it as provided in
this subtitle.
(b) Amounts in the Trust Fund shall be available, as provided by
appropriation Acts, to implement the Montreal Protocol and this subtitle,
to carry out the grant program pursuant to section 4012 of this subtitle,
and to carry out the abatement and control activities and the research
and development activities of the Environmental Protection Agency.
(c)(1) It shall be the duty of the Secretary to report to the Congress
each year on the financial condition and the results of the operation
of the Trust Fund during the preceding fiscal year and on its expected
condition and operations during the next five fiscal years.
(2) It shall be the duty of the Secretary to invest such portion of
the Trust Fund as is not, in the Secretary's judgment, required to meet
current withdrawals. Such investments may be made only in interest-bearing
obligations of the United States. Such obligations may be acquired--
(A) as original issue at the issue price, or
(B) by purchase of outstanding obligations at the market price.
(3) Any obligation acquired with moneys from such Trust Fund may be sold
by the Secretary at market price. The interest on and the proceeds from
the sale or redemption of such obligation shall be credited to and become
a part of the Trust Fund.
Subtitle B--Nuclear Regulatory Commission User Fees

056fd0d1084a42eb448490a7487345f164c008928848aae314c185efc4d4b0e5

Act of 1985 (COBRA) (Public Law 99-272) is amended to read as follows:
`(1) IN GENERAL- The Nuclear Regulatory Commission shall assess and collect
annual charges from its licensees on a fiscal year basis, except that--
`(A) the maximum amount of the aggregate charges assessed pursuant to this
paragraph in any fiscal year may not exceed an amount that, when added to
other amounts collected by the Commission for such fiscal year under other
provisions of law, is estimated to be equal to 33 per centum of the costs
incurred by the Commission with respect to such fiscal year, except that for
fiscal year 1990 such maximum amount shall be estimated to be equal to 45
per centum of the costs incurred by the Commission for fiscal year 1990; and
`(B) any such charge assessed pursuant to this paragraph shall be reasonably
related to the regulatory service provided by the Commission and shall
fairly reflect the cost to the Commission of providing such service.
`(2) ESTABLISHMENT OF AMOUNT BY RULE- The amount of the charges assessed
pursuant to this paragraph shall be established by rule.'.
Subtitle C--Payments to the Offshore
Oil Pollution Compensation Fund

b61429d7a0de307cf64979ebfad0e50c5f768d25679ebc7d0c4b8ca2f0d31172

Shelf Lands Act Amendments of 1978 (43 U.S.C. 1812(d)(1)) is amended by
striking out `not to exceed'.
(2) Section 302(d)(2) of the Outer Continental Shelf Lands Act Amendments
of 1978 (43 U.S.C. 1812(d)(2)) is amended by striking out `not less than
$100,000,000 and not more than' and adding in lieu thereof `not more than
or less than'.
(b) EFFECTIVE DATE- The amendment made by this section shall take effect
on the date of enactment of this Act.
Subtitle D--Onondaga Lake Restoration Program

46ca3efc14ad646881c8063447a936cf55e2b44405f07ae6fc740a4790446bd8

The Secretary of the Army, acting through the Chief of Engineers, shall
carry out a reconnaissance study for an environmental restoration project for
Onondaga Lake as authorized by Committee Resolution XXX, as adopted by the
Senate Environment and Public Works Committee on July 9, 1989, and shall,
to the degree that matching funds are available, carry out the feasibility
study for such project as authorized by such Committee Resolution.

f1531ccd5e6d3aad94b93f965419c5b09dff8d9be35c95d118f83079e388ede8

(a) AMENDMENT OF THE SOCIAL SECURITY ACT- Except as otherwise expressly
provided, whenever in this title an amendment or repeal is expressed in
terms of an amendment to, or repeal of, a section or other provision, the
reference shall be considered to be made to a section or other provision
of the Social Security Act.
(b) TABLE OF CONTENTS-

d48f43e47ad280aa474b7643a2d3433abcc60f5cb74e808f007982cbf2e05ccd

TITLE V

-NON-REVENUE PROVISIONS OF THE COMMITTEE ON FINANCE

Subtitle A--Medicare
Part I--Provisions Relating to Part A of Medicare

1b8bdd8c4a62a7bec152da6b9017ac470c3a240a68168a1025b3b2d1ccb0f6d6

hospital services for fiscal year 1990.
Part II--Provisions Relating to Part B of Medicare
Subpart A--payment for physicians' services

e51820546177dc7ef6bc01dfbc4182a921817f33e8a8ceda910655afa0d05de0

ff14b13e5c6db89fa96426438997abc7e9de18cbdab29d23fcf048635bf0a555

Part III--Provisions Relating to Parts A and B of Medicare

200d004adefb34543851d49041089528ef4e98a5fb93ef4c2de64e287c6103fe

46ef366ad01a2522cd09c11007f71b58d441f36885cef4d6d7b7cb9a21ea5a75

4397f1c041587e38f5ccc3cd01f412bcf92a1b3be729be204f28325f2c0aa0e6

6cd29ff6827470607d5f1b7cfe3090932e3d2aecb852759d5620eccfb5b86924

from unemployment compensation (with technical amendments).
Subtitle A--Medicare
PART I--PROVISIONS RELATING TO PART A OF MEDICARE

1434680dd92304bb922cf8d8b3925db45739c0320027ac70c7582bd2cb69b5fb

Section 1886(b)(3)(B)(i) (42 U.S.C. 1395ww(b)(3)(B)(i)) is amended--
(1) by striking `and' at the end of subclause (IV);
(2) in subclause (V), by striking `1990' and inserting in lieu thereof
`1991' and redesignating such subclause as subclause (VI); and
(3) by inserting after subclause (IV) the following new subclause:
`(V) for fiscal year 1990, the market basket percentage increase plus 3
percentage points for hospitals located in a rural area, the market basket
percentage increase minus 0.7 percentage points for hospitals located in
a large urban area, and the market basket percentage increase minus 1.4
percentage points for hospitals located in other urban areas, and'.

aadd3ef218826c1821a1821a7c63ed191a8cf4fafe3ab0bfde0b17af5dded5a9

(a) INDIRECT MEDICAL EDUCATION PAYMENTS REDUCED-
(1) Section 1886(d)(5)(B)(ii) of the Social Security Act (42
U.S.C. 1395ww(d)(5)(B)(ii)) is amended--
(A) in subclause (I), by striking `1.89' and inserting in lieu thereof
`1.752'; and
(B) in subclause (II), by striking `1.43' and inserting in lieu thereof
`1.329'.
(2) Section 1886(d)(3)(C)(ii) of such Act (42 U.S.C. 1395ww(d)(3)(C)(ii))
is amended--
(A) in subclause (I)--
(i) by striking `1985 and' and inserting in lieu thereof `1985,', and
(ii) by inserting `and by section 5102 of the Omnibus Budget Reconciliation
Act of 1989' after `1987'; and
(B) in subclause (II)--
(i) by striking `1985 and' and inserting in lieu thereof `1985,', and
(ii) by inserting `and by section 5102 of the Omnibus Budget Reconciliation
Act of 1989' after `1987'.
(b) EFFECTIVE DATE- The amendments made by this section shall apply to
payments for discharges occurring on or after October 1, 1989.

55eca7dcd94700442e4c6a2a2852941e8feeeca5d9fbd0a646a5af44d4dc048f

HOSPITAL SERVICES FOR FISCAL YEAR 1990.
Section 1886(g)(3)(A) of the Social Security Act (42 U.S.C. 1395ww(g)(3)(A))
is amended--
(1) in clause (iii), by striking `and';
(2) in clause (iv), by striking the period at the end and inserting `,
and'; and
(3) by adding at the end the following new clause:
`(v) 13.5 percent for payments attributable to portions of cost reporting
periods or discharges (as the case may be) occurring during fiscal year 1990
(excluding such payments for such fiscal year for hospitals described in
section 1815(e)(1)(B)).'.
PART II--PROVISIONS RELATING TO PART B OF MEDICARE
Subpart A--Payment for Physicians' Services

ed65cb005f98f3dc26e65690bd8fa55fdce83b778e96107191a20631cd3dc98f

(a) DELAYING MEI UPDATE UNTIL APRIL 1-
(1) IN GENERAL- Subject to the amendments made by this section, any increase
or adjustment in prevailing or customary charges, fee schedule amounts,
maximum allowable actual charges, and other limits on actual charges with
respect to physicians' services and other items and services described
in paragraph (2) under part B of title XVIII of the Social Security Act
which would otherwise occur as of January 1, 1990, shall be delayed so as
to occur as of April 1, 1990, and, notwithstanding any other provision of
law, the amount of payment under such part for such items and services
which are furnished during the period beginning on January 1, 1990, and
ending on March 31, 1990, shall be determined on the same basis as the
amount of payment for such services furnished on December 31, 1989.
(2) ITEMS AND SERVICES COVERED- The items and services described in this
paragraph are items and services (other than ambulance services) for which
payment is made under part B of title XVIII of the Social Security Act on
the basis of reasonable charge or on the basis of a fee schedule if the
fee schedule is subject to an annual adjustment based on the percentage
increase in the MEI (as defined in section 1842(i)(3) of such Act).
(3) EXTENSION OF PARTICIPATION AGREEMENTS AND RELATED PROVISIONS-
Notwithstanding any other provision of law--
(A) subject to the last sentence of this paragraph, each participation
agreement in effect on December 31, 1989, under section 1842(h)(1) of the
Social Security Act shall remain in effect for the 3-month period beginning
on January 1, 1990;
(B) the effective period for such agreements under such section entered
into for 1990 shall be the 9-month period beginning on April 1, 1990, and
the Secretary shall provide an opportunity for physicians and suppliers
to enroll as participating physicians and suppliers before April 1, 1990;
(C) instead of publishing, under section 1842(h)(4) of the Social Security
Act, at the beginning of 1990, directories of participating physicians
and suppliers for 1990, the Secretary shall provide for such publication,
at the beginning of the 9-month period beginning on April 1, 1990, of such
directories of participating physicians and suppliers for such period; and
(D) instead of providing to nonparticipating physicians under section
1842(b)(3)(G) of the Social Security Act at the beginning of 1990, a list
of maximum allowable actual charges for 1990, the Secretary shall provide
such physicians, at the beginning of the 9-month period beginning on April
1, 1990, with such a list for such 9-month period.
An agreement with a participating physician or supplier described in
subparagraph (A) in effect on December 31, 1989, under section 1842(h)(1) of
the Social Security Act shall not remain in effect for the period described
in subparagraph (A) if the participating physician or supplier requests on
or before December 31, 1989, that the agreement be terminated.
(b) UPDATE- Section 1842(b)(4)(E) (42 U.S.C. 1395u(b)(4)(E)) is amended
by adding at the end thereof the following new clause:
`(iv) For purposes of this part for physicians' services furnished in 1990,
after March 31, 1990, the percentage increase in the MEI is--
`(I) zero percent for radiology services,
`(II) 2 percent for other services (other than primary care services), and
`(III) such percentage increase in the MEI (as defined in subsection (i)(3))
as would be otherwise determined for primary care services (as defined in
subsection (i)(4)).'.

505b60cb38862a8d5c4736fd54925c458714a6c7b9047bed6b4abc563e8cc026

(a) REDUCTION IN PAYMENTS FOR IDENTIFIED OVERVALUED PROCEDURES-
(1) IN GENERAL- Section 1842(b) (42 U.S.C. 1395u(b)) is amended by adding
at the end the following new paragraph:
`(14)(A) In determining the reasonable charge for a physician's service
specified in subparagraph (C)(i) and furnished during the 9-month period
beginning on April 1, 1990, the prevailing charge for such service shall
be the prevailing charge otherwise recognized for such service for 1989
reduced by 15 percent or, if less,  1/4  of the percent (if any) by which
the prevailing charge otherwise applied in the locality in 1989 exceeds the
locally-adjusted reduced prevailing amount (as determined under subparagraph
(B)(i)) for the service.
`(B) For purposes of this paragraph:
`(i) The `locally-adjusted reduced prevailing amount' for a locality for
a physician's service is equal to the product of (I) the reduced national
weighted average prevailing charge for the service (specified under clause
(ii)) and (II) the adjustment factor (specified under clause (iii) for
the locality.
`(ii) The `reduced national weighted average prevailing charge' for a
physician's service is equal to the national weighted average prevailing
charge for the service (specified under subparagraph (C)(ii)) reduced by the
percentage change (specified under subparagraph (C)(iii)) for the service.
`(iii) The `adjustment factor' for a locality is .54 plus the product of .46
and the geographic practice cost index value (specified under subparagraph
(C)(iv)) for the locality.
`(C) For purposes of this paragraph:
`(i) The physicians' services specified in this clause are the physicians'
services specified in Appendix A of the explanation of subtitle B of title
X (Committee on Ways and Means) contained in the report of the Committee
of the Budget, House of Representatives, to accompany H.R. 3299 (`Omnibus
Budget Reconciliation Act of 1989'), 101st Congress, which specification
is of physicians' services that have been identified as overpriced by
at least 15 percent based on a comparison of payments for such services
under a resource-based relative value scale and of the national average
prevailing charges under this part.
`(ii) The `national weighted average prevailing charge' specified in this
clause, for a physician's service specified in clause (i), is the national
weighted average prevailing charge for the service in 1989 as determined
by the Secretary using the best data available.
`(iii) The `percent change' specified in this clause, for a physician's
service specified in clause (i), is the percent change specified for the
service in the Appendix referred in clause (i).
`(iv) The geographic practice cost index value specified in this clause
for a locality is such value specified for the locality in the Appendix
referred to in clause (i).
`(D) In the case of a reduction in the prevailing charge for a physicians'
service under subparagraph (A), if a nonparticipating physician furnishes
the service to an individual entitled to benefits under this part, after
the effective date of such reduction, the physician's actual charge is
subject to a limit under subsection (j)(1)(D).'.
(2) SPECIAL LIMITS ON ACTUAL CHARGES- Section 1842(j)(1)(D) of such Act
is amended--
(A) in clause (ii)(II), by inserting `or (b)(14)(A)' after `(b)(10)(A)', and
(B) in clause (iii)(II), by striking `or (b)(11)(C)(i)' and inserting
`(b)(11)(C)(i), or (b)(14)(A)'.

4fcd377409f94a9919b6b4e9e4b5177064143344c081ad10ec8da113debb5301

(a) FEE SCHEDULES FOR RADIOLOGIST SERVICES REDUCED- Section 1834(b)(4)
(42 U.S.C. 1395m(b)(4)) is amended--
(1) by redesignating subparagraphs (C) and (D) as subparagraphs (D) and
(E), and
(2) by inserting after subparagraph (B) the following new subparagraph:
`(C) 1990 FEE SCHEDULES- (i) For radiology services furnished under this
part during 1990, after March 31 of such year, the fee schedules under
this subsection shall be 95 percent of the amounts permitted under the
fee schedules developed for 1989 under subparagraph (A).
`(ii) For portable X-ray services furnished under this part during 1990,
after March 31 of such year, clause (i) shall be applied by substituting
`97' for `95'.'.
(b) REDUCTION IN PREVAILING CHARGES FOR RADIOLOGY SERVICES- (1) Section
1842(b) (42 U.S.C. 1395u(b)) is amended by adding at the end thereof the
following new paragraph:
`(15) The prevailing charge levels for radiology services furnished during
1990, after March 31 of such year, shall be 98 percent of the prevailing
charge levels for such services furnished during 1989.'.
(2) Section 1842(j)(1)(D) of such Act, as amended by subsection (a)(2)
of this section, is further amended--
(i) in clause (ii)(IV), by inserting `or (b)(15)' before the comma at the
end, and
(ii) in clause (iii)(II), by striking `or (b)(14)(A)(i)' and inserting
`(b)(14)(A), or (b)(15)'.
(c) 1-YEAR EXEMPTION OF NUCLEAR PHYSICIANS- (1) In applying section
1834(b)(6) of the Social Security Act with respect to services furnished
during 1990, after March 31, of such year, the term `radiologist services'
does not include nuclear medicine services performed by, or under the
direct supervision of, a physician who is certified by the American Board
of Nuclear Medicine or by the American Board of Radiology (with Special
Competence in Nuclear Radiology).
(2) The Secretary of Health and Human Services shall make such adjustments
in the fee schedule under section 1834(b) of the Social Security Act as
may be necessary to ensure that the exclusion required by paragraph (1)
neither increases nor decreases the total amount that would have been
expended in 1990 for radiologist services (including the services excluded
pursuant to this paragraph) but for the exclusion.
(d) INTERVENTIONAL RADIOLOGISTS- In applying section 1834(b) of the Social
Security Act to radiology services furnished in 1990, the exception for
`split billing' set forth at section 5262J of the Medicare Carriers Manual
shall apply to services furnished in 1990 in the same manner and to the
same extent as the exception applied to services furnished in 1989.

cd5726ce08c7758da67a7ad9b24903c656193dca8e78ea988ff8b376a8b99266

For purposes of payment for anesthesia services (whether furnished by a
physician or by a certified registered nurse anesthetist) furnished under
part B of title XVIII of the Social Security Act on or after April 1,
1990, the time units shall be counted based on actual time rather than
rounded to full time units.
Subpart B--Payment For Other Services

e2cee5a824c0d1cfeceb89cd5cc7fe2e14347d6411dd2be331e4bfd6a06590f2

(a) SETTING FEE SCHEDULE UPDATE FOR 1990 AT 3 PERCENT- Paragraph (2)(A)(ii)
of section 1833(h) (42 U.S.C. 1395l(h)) is amended--
(1) by striking `and' at the end of subclause (I);
(2) in subclause (II), by striking `1988.' and inserting `1988, and'; and
(3) by adding at the end the following new subclause:
`(III) the annual adjustment under clause (i) to become effective on April
1, 1990, shall be an increase of 3 percent.'.
(b) REDUCTION OF LIMITATION AMOUNT ON PAYMENT AMOUNT- Paragraph (4)(B)
of such section is amended--
(1) in clause (i), by striking `or' at the end;
(2) in clause (ii)--
(A) by striking `and so long as a fee schedule for the test has not been
established on a nationwide basis,' and inserting `and before January 1,
1990,', and
(B) by striking the period at the end and inserting `, and'; and
(3) by adding at the end the following new clause:
`(iii) after December 31, 1989, and so long as a fee schedule for the test
has not been established on a nationwide basis, is equal to 95 percent
of the median of all the fee schedules established for that test for that
laboratory setting under paragraph (1).'.

ebb87ad7b1a3004c7c28106bcb9a2f10ffd3c2e95f4ad57f3dbe2c9ec80a39d7

(a) DELAY IN AND REDUCTION OF UPDATE FOR 1990-
(1) INEXPENSIVE AND ROUTINELY PURCHASED DURABLE MEDICAL EQUIPMENT AND ITEMS
REQUIRING FREQUENT AND SUBSTANTIAL SERVICING- Paragraphs (2)(B) and (3)(B)
of section 1834(a) of such Act (42 U.S.C. 1395m(a)) are each amended--
(A) in clause (i), by striking `in 1989' and inserting `in 1989 and the
first 3 months of 1990',
(B) in clause (i), by striking `or' at the end,
(C) in clause (ii), by striking `for the preceding year' and inserting
`for the last day of the preceding year',
(D) by redesignating clause (ii) as clause (iii), and
(E) by inserting after clause (i) the following new clause:
`(ii) in the remaining months of 1990, is the amount specified in clause
(i) increased by 3 percent, or'.
(2) MISCELLANEOUS DEVICES AND ITEMS AND OTHER COVERED ITEMS- Paragraph
(8)(A)(ii) of such section is amended--
(A) in subclause (I), by striking `1989' and inserting `1989 and the first
3 months of 1990',
(B) in subclause (I), by striking `or' at the end,
(C) in subclause (II), by striking `1990, 1991,' and inserting `1991',
(D) in subclause (II), by striking `for the previous year' and inserting
`for the last day of the previous year',
(E) by redesignating subclause (II) as subclause (III), and
(F) by inserting after subclause (I) the following new subclause:
`(II) in the remaining months of 1990, is the amount specified in subclause
(I) increased by 3 percent, or'.
(3) OXYGEN AND OXYGEN EQUIPMENT- Paragraph (9)(A)(ii) of such section
is amended--
(A) in subclause (I), by striking `1989' and inserting `1989 and the first
3 months of 1990',
(B) in subclause (I), by striking `or' at the end,
(C) in subclause (II), by striking `1990, 1991,' and inserting `1991',
(D) in subclause (II), by striking `for the previous year' and inserting
`for the last day of the previous year',
(E) by redesignating subclause (II) as subclause (III), and
(F) by inserting after subclause (I) the following new subclause:
`(II) to the remaining months of 1990, is the amount specified in subclause
(I) increased by 3 percent, or'.
(4) CONFORMING AMENDMENTS- Such section is further amended--
(A) in paragraph (7)(A)(i), by striking `this subparagraph' and inserting
`this clause';
(B) in paragraph (8)(C)(i), by striking `(A)(ii)(I)' and inserting
`(A)(ii)'; and
(C) in paragraphs (8) and (9)--
(i) in subparagraph (B)(i), by striking `(A)(ii)(II)' and inserting
`(A)(ii)(III)'; and
(ii) in clauses (ii) and (iii) of subparagraph (C), by striking `(A)(ii)(II)'
and inserting `(A)(ii)(III)'.
(b) ADJUSTMENT BY SECRETARY FOR OVERPRICED ITEMS- Paragraph (1) of section
1834(a) (42 U.S.C. 1395m(a)) is amended by adding at the end the following
new subparagraph:
`(D) REDUCTION IN FEE SCHEDULES FOR CERTAIN ITEMS- With respect to a
seat-lift chair or transcutaneous electrical nerve stimulator furnished
on or after April 1, 1990, the Secretary shall reduce the payment amount
applied under subparagraph (B)(ii) for such an item by 15 percent.'.
(c) TREATMENT OF POWER DRIVEN WHEELCHAIRS-
(1) AS ROUTINELY PURCHASED- Section 1834(a)(2)(A) (42 U.S.C. 1395m(a)(2)(A))
is amended--
(A) by striking `or' at the end of clause (i),
(B) by adding `or' at the end of clause (ii), and
(C) by inserting after clause (ii) the following new clause:
`(iii) which is a power-driven wheelchair (other than a customized
wheelchair that is classified as a customized item under paragraph (4)
pursuant to criteria specified by the Secretary),'.
(2) AS CUSTOMIZED ITEM- The Secretary of Health and Human Services (hereafter
in this subsection referred to as the `Secretary') shall by regulation
specify criteria to be used by carriers in making determinations on a case by
case basis as whether to classify power-driven wheelchairs as a customized
item (as described in section 1834(a)(4) of the Social Security Act)
for purposes of reimbursement under title XVIII of the Social Security Act.
(3) The amendments made by paragraph (1) shall apply to items furnished
on or after April 1, 1990.

dd59d70c8b22533602c831e8807e9f2a447c947fdb1bdb69e05e64dffaf1d02b

Section 1861(v)(1)(S) (42 U.S.C. 1395x(v)(1)(S)) is amended--
(1) by inserting `(i)' after `(S)', and
(2) by adding at the end the following new clause:
`(ii)(I) Such regulations shall provide that, in determining the amount
of the payments that may be made under this title with respect to all the
capital-related costs of outpatient hospital services, the Secretary shall
reduce the amounts of such payments otherwise established under this title
by 13.5 percent for services provided in cost reporting periods beginning
during fiscal year 1990.
`(II) Subclause (I) shall not apply to payments with respect to the
capital-related costs of any hospital for a cost reporting period if the
hospital is a sole community hospital (as defined in section 1886(d)(5))
or is eligible to be paid as a sole community hospital for the period.
`(III) Subclause (I) shall not apply to payments with respect to the
capital-related costs of any hospital for a cost reporting period if the
hospital is a hospital (described in section 1815(e)(1)(B)) for the period.
`(IV) The Secretary shall apply the reduction described in subclause (I)
to services for which payment may be based on a blended rate under section
1833(n) or 1833(i)(3); however, the reduction shall be applied only to
that portion of the payment based on hospital costs.'.
PART III--PROVISIONS RELATING TO PARTS A AND B OF MEDICARE

ce35920889dcc6eb9864e2adcce541cb0765c33649e448c3ce5123036357f1a2

(a) PART A- Section 1816(c) (42 U.S.C. 1395h(c)) is amended--
(1) in paragraph (2)(B)(ii)(IV), by striking `24' and inserting `25'; and
(2) in paragraph (3)(B)--
(A) by striking `and' at the end of clause (i),
(B) by striking the period at the end of clause (ii) and inserting `,
and', and
(C) by adding at the end the following new clause:
`(iii) with respect to claims received in the 12-month period beginning
October 1, 1989, 15 days.'.
(b) PART B- Section 1842(c) (42 U.S.C. 1395u(c)) is amended--
(1) in paragraph (2)(B)(ii)(IV), by striking `24' and `17' and inserting
`25' and `20', respectively; and
(2) in paragraph (3)(B)--
(A) by striking `and' at the end of clause (i),
(B) by striking the period at the end of clause (ii) and inserting `,
and', and
(C) by adding at the end the following new clause:
`(iii) with respect to claims received in the 12-month period beginning
October 1, 1989, 15 days.'.
(c) NECESSARY RESULT- Any transfer of outlays, receipts, or revenues
pursuant to this section, is a necessary (but secondary) result of a
significant policy change for purposes of section 202 of Public Law 100-119.

c54f36743c8d2003bd46708a6e7dae26af79adf5c4a3751d77a947727169b024

(a) IDENTIFICATION OF MEDICARE SECONDARY PAYER SITUATIONS-
(1) DISCLOSURE OF CERTAIN TAXPAYER IDENTITY INFORMATION FOR VERIFICATION OF
EMPLOYMENT STATUS OF MEDICARE BENEFICIARY AND SPOUSE OF MEDICARE BENEFICIARY-
(A) IN GENERAL- Subsection (l) of section 6103 of the Internal Revenue
Code of 1986 (relating to disclosure of returns and return information
for purposes other than tax administration) is amended by adding at the
end thereof the following new paragraph:
`(12) DISCLOSURE OF CERTAIN TAXPAYER IDENTITY INFORMATION FOR VERIFICATION OF
EMPLOYMENT STATUS OF MEDICARE BENEFICIARY AND SPOUSE OF MEDICARE BENEFICIARY-
`(A) RETURN INFORMATION FROM INTERNAL REVENUE SERVICE- The Secretary shall,
upon written request from the Commissioner of Social Security, disclose to
the Commissioner available filing status and taxpayer identity information
from the individual master files of the Internal Revenue Service relating to
whether any medicare beneficiary identified by the Commissioner was a married
individual (as defined in section 7703) for any specified year after 1986,
and, if so, the name of the spouse of such individual and such spouse's TIN.
`(B) RETURN INFORMATION FROM SOCIAL SECURITY ADMINISTRATION- The Commissioner
of Social Security shall, upon written request from the Administrator of
the Health Care Financing Administration, disclose to the Administrator
the following information:
`(i) The name and TIN of each medicare beneficiary who is identified as
having received wages (as defined in section 3401(a)) from a qualified
employer in a previous year.
`(ii) For each medicare beneficiary who was identified as married under
subparagraph (A) and whose spouse is identified as having received wages
from a qualified employer in a previous year--
`(I) the name and TIN of the medicare beneficiary, and
`(II) the name and TIN of the spouse.
`(iii) With respect to each such qualified employer, the name, address,
and TIN of the employer and the number of individuals with respect to whom
written statements were furnished under section 6051 by the employer with
respect to such previous year.
`(C) DISCLOSURE BY HEALTH CARE FINANCING ADMINISTRATION- With respect to
the information disclosed under subparagraph (B), the Administrator of
the Health Care Financing Administration may disclose--
`(i) to the qualified employer referred to in such subparagraph the name and
TIN of each individual identified under such subparagraph as having received
wages from the employer (hereinafter in this subparagraph referred to as the
`employee') for purposes of determining during what period such employee or
the employee's spouse may be (or have been) covered under a group health
plan of the employer and what benefits are or were covered under the plan
(including the name, address, and identifying number of the plan),
`(ii) to any group health plan which provides or provided coverage to such
an employee or spouse, the name of such employee and the employee's spouse
(if the spouse is a medicare beneficiary) and the name and address of the
employer, and, for the purpose of presenting a claim to the plan--
`(I) the TIN of such employee if benefits were paid under title XVIII of
the Social Security Act with respect to the employee during a period in
which the plan was a primary plan (as defined in section 1862(b)(2)(A)
of the Social Security Act), and
`(II) the TIN of such spouse if benefits were paid under such title with
respect to the spouse during such period, and
`(iii) to any agent of such Administrator the information referred to
in subparagraph (B) for purposes of carrying out clauses (i) and (ii)
on behalf of such Administrator.
`(D) SPECIAL RULES-
`(i) RESTRICTIONS ON DISCLOSURE- Information may be disclosed under this
paragraph only for purposes of, and to the extent necessary in, determining
the extent to which any medicare beneficiary is covered under any group
health plan.
`(ii) TIMELY RESPONSE TO REQUESTS- Any request made under subparagraph (A)
or (B) shall be complied with as soon as possible but in no event later
than 120 days after the date the request was made.
`(E) DEFINITIONS- For purposes of this paragraph--
`(i) MEDICARE BENEFICIARY- The term `medicare beneficiary' means an
individual entitled to benefits under part A, or enrolled under part B,
of title XVIII of the Social Security Act, but does not include such an
individual enrolled in part A under section 1818 or section 1818A.
`(ii) GROUP HEALTH PLAN- The term `group health plan' means--
`(I) any group health plan (as defined in section 5000(b)(1)), and
`(II) any large group health plan (as defined in section 5000(b)(2)).
`(iii) QUALIFIED EMPLOYER- The term `qualified employer' means, for a
calendar year, an employer which has furnished written statements under
section 6051 with respect to at least 20 individuals for wages paid in
the year.
`(F) TERMINATION- Subparagraphs (A) and (B) shall not apply to--
`(i) any request made after September 30, 1991, and
`(ii) any request made before such date for information relating to--
`(I) 1990 or thereafter in the case of subparagraph (A), or
`(II) 1991 or thereafter in the case of subparagraph (B).'
(B) SAFEGUARDS-
(i) Paragraph (3) of section 6103(a) of such Code is amended by inserting
`(l)(12),' after `(e)(1)(D)(iii),'.
(ii) Subparagraph (A) of section 6103(p)(3) of such Code is amended by
striking `or (11)' and inserting `(11), or (12)'.
(iii) Paragraph (4) of section 6103(p) of such Code is amended in the
material preceding subparagraph (A) by striking `or (9) shall' and inserting
`(9), or (12) shall'.
(iv) Clause (ii) of section 6103(p)(4)(F) of such Code is amended by striking
`or (11)' and inserting `(11), or (12)'.
(v) The next to the last sentence of paragraph (4) of section 6103(p)
of such Code is amended by inserting `or which receives any information
under subsection (l)(12)(B) and which discloses any such information to
any agent' before `, this paragraph'.
(C) PENALTY- Paragraph (2) of section 7213(a) of such Code is amended by
striking `or (10)' and inserting `(10), or (12)'.
(D) EFFECTIVE DATE- The amendments made by this paragraph shall take effect
on October 1, 1989.
(2) RESPONSIBILITIES OF HCFA-
(A) IN GENERAL- Section 1862(b) (42 U.S.C. 1395y(b)), as amended by
subsection (b)(1) of this section, is amended by inserting after paragraph
(4) the following new paragraph:
`(5) IDENTIFICATION OF SECONDARY PAYER SITUATIONS-
`(A) REQUESTING MATCHING INFORMATION-
`(i) COMMISSIONER OF SOCIAL SECURITY- The Commissioner of Social Security
shall, not less often than annually, transmit to the Secretary of the
Treasury a list of the names and TINs of medicare beneficiaries (as defined
in section 6103(l)(12) of the Internal Revenue Code of 1986) and request
that the Secretary disclose to the Commissioner the information described
in subparagraph (A) of such section.
`(ii) ADMINISTRATOR- The Administrator of the Health Care Financing
Administration shall request, not less often than annually, the Commissioner
of the Social Security Administration to disclose to the Administrator
the information described in subparagraph (B) of section 6103(l)(12)
of the Internal Revenue Code of 1986.
`(C) DISCLOSURE TO FISCAL INTERMEDIARIES AND CARRIERS- In addition to
any other information provided under this title to fiscal intermediaries
and carriers, the Administrator shall disclose to such intermediaries and
carriers the information received under subparagraph (B) for the purposes
of carrying out this subsection.
`(D) CONTACTING EMPLOYERS-
`(i) IN GENERAL- With respect to each individual (in this subparagraph
referred to as an `employee') who was furnished a written statement under
section 6051 of the Internal Revenue Code of 1986 by a qualified employer
(as defined in section 6103(l)(12)(D)(iii) of such Code), as disclosed
under subparagraph (C), the appropriate fiscal intermediary or carrier shall
contact the employer in order to determine during what period the employee
or employee's spouse may be (or have been) covered under a group health plan
of the employer and the nature of the coverage that is or was provided under
the plan (including the name, address, and identifying number of the plan).
`(ii) EMPLOYER RESPONSE- Within 30 days of the date of receipt of the
inquiry, the employer shall notify the intermediary or carrier making the
inquiry as to the determinations described in clause (i). An employer
(other than a Federal or other governmental entity) who willfully or
repeatedly fails to provide timely and accurate notice in accordance with
the previous sentence shall be subject to a civil money penalty of not to
exceed $1,000 for each individual with respect to which such an inquiry
is made. The provisions of section 1128A (other than subsections (a) and
(b)) shall apply to a civil money penalty under the previous sentence in
the same manner as such provisions apply to a penalty or proceeding under
section 1128A(a).
`(iii) SUNSET ON REQUIREMENT- Clause (ii) shall not apply to inquiries
made after September 30, 1991.'.
(B) DEADLINE FOR FIRST REQUEST- The Commissioner of Social Security
shall first--
(i) transmit to the Secretary of the Treasury information under paragraph
(5)(A)(i) of section 1862(b) of the Social Security Act (as inserted by
subparagraph (A)), and
(ii) request from the Secretary disclosure of information described in
section 6013(l)(12)(A) of the Internal Revenue Code of 1986,
by not later than October 15, 1989.
PART IV--MEDICARE PART B BASIC PREMIUM

7a4e8a9433e8b161a23be5a1ee4b7f08f66c37478c43e00e3b1d298f892e004b

Section 1839(e) (42 U.S.C. 1395q(e)) is amended by striking `1990' each
place it appears and inserting in lieu thereof `1991'.
Subtitle B--Medicaid

e27ce7bc11ebb194f22748c49b8a127d2c2fe3e65b31bd71fc1752e00d319cc9

(a) NURSE AIDE TRAINING-
(1) DELAY IN REQUIREMENT- Section 1919(b)(5) (42 U.S.C. 1396r(b)(5))
is amended--
(A) in subparagraph (A), by striking `January 1, 1990' and inserting
`October 1, 1990', and
(B) in subparagraph (B), by striking `July 1, 1989' and `January 1, 1990'
and inserting `January 1, 1990' and `October 1, 1990', respectively.
(2) WAIVERS FOR CERTAIN NURSE AIDES- Section 1919(b)(5) (42
U.S.C. 1396r(b)(5)) is further amended--
(A) in subparagraph (A), by striking `any individual' and inserting in lieu
thereof `any individual (except an individual described in subparagraph
(H))', and
(B) by inserting at the end thereof the following new subparagraph:
`(H) Exceptions to general rule of required training of nurse aides-
`(i) WAIVERS- With respect to the nurse aide training and competency
requirements described in subparagraph (A), a State shall waive such
requirements with respect to an individual who--
`(I) was hired as a nurse aide by an employer before January 1, 1990,
`(II) can demonstrate to the satisfaction of the State that such individual
has served as a nurse aide at one or more facilities of the same employer
in the State for at least 24 consecutive months, and
`(III) has completed a 15-hour course of instruction in basic skills
developed by the State.
`(ii) WAIVERS- With respect to the nurse aide training and competency
requirements described in subparagraph (a), a State shall waive such
requirements with respect to an individual who--
`(I) was employed as a nurse aide before January 1, 1990,
`(II) can demonstrate to the satisfaction of the State that he or she has
served as a nurse aide in the State in the preceding 24 month period, and
`(III) has completed a nurse aide training program that was required by
the State and established before December 22, 1987.'.
(b) DELAY IN REQUIREMENT FOR REMEDIES- Section 1919(h)(2)(B)(i) (42
U.S.C. 1396r(h)(2)(B)(i)) is amended by striking `October 1, 1989' and
inserting in lieu thereof `April 1, 1991'.
(c) EFFECTIVE DATES- Except as provided in subparagraph (B), the amendments
made by this section shall take effect as if they were included in the
enactment of the Omnibus Budget Reconciliation Act of 1987.
Subtitle C--Income Security

0da2932cfdc3fbf0f98747c88bfb7146ef02c2c00f74599215c1ec9e55bbc07c

FROM UNEMPLOYMENT COMPENSATION (WITH TECHNICAL AMENDMENTS).
(a) IN GENERAL- Section 303 is amended by adding at the end the following
new subsection:
`(j)(1) The State agency charged with administration of the State law may
deduct and withhold from the unemployment compensation otherwise payable
to an individual an amount equal to the unpaid contributions, as defined
in section 3306(g) of the Federal Unemployment Tax Act (26 U.S.C. 3306(g)),
owed by the individual to the State's unemployment fund.
`(2) Any amount deducted and withheld under this subsection shall for all
purposes be treated as if it were paid to the individual as unemployment
compensation and paid by such individual to the State's unemployment fund
in satisfaction of the contributions owed.
`(3) For purposes of this subsection, the term `unemployment compensation'
means any unemployment compensation payable under the State law (including
amounts payable pursuant to an agreement under a Federal unemployment
compensation law).'.
(b) DEDUCTIONS FROM BENEFITS- Section 303(a)(5) is amended by striking out
the last proviso and inserting in lieu thereof the following: `Provided
further, That amounts may be deducted from unemployment benefits and
otherwise payable to an individual and used in payment of obligations
owed by the individual solely as provided in subsections (d), (e), (g),
and (j) of this section.'.
(c) FEDERAL UNEMPLOYMENT TAX- Section 3304(a)(4) of the Federal Unemployment
Tax Act is amended by amending subparagraph (D) thereof to read as follows:
`(D) amounts may be deducted from unemployment benefits and used in payment
of obligations owed by the individual solely as provided in subsections (d),
(e), (g), and (j) of section 303 of the Social Security Act.'

ee88f483dd4ba3d7c65cd197c75183df7183d0e619d490639d8ad23e05126032

(a) SHORT TITLE- This title may be cited as the `Revenue Reconciliation
Act of 1989'.
(b) AMENDMENT OF 1986 CODE- Except as otherwise expressly provided,
whenever in this title an amendment or repeal is expressed in terms of an
amendment to, or repeal of, a section or other provision, the reference
shall be considered to be made to a section or other provision of the
Internal Revenue Code of 1986.
(c) TABLE OF CONTENTS-

1e782b3c1970381b5fd5fad6cca2102f65445169e75aee71d5b9e86c954ed87e

TITLE VI

-REVENUE MEASURES

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excess interest allocable to corporate equity reduction transactions.
Subtitle B--Employee Benefit Provisions

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and of products containing such chemicals.

97725c01e9767d25a995f87f5a6401ea81ad2f19229d5bd28a28c3395c873bb6

Subtitle E--Miscellaneous Provisions
Part I--Like Kind Exchanges Between Related Persons

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incentive jobs credit.
Subtitle F--Coordination With Budget Act

6d42eac83a23dd9d24cf63540ab38450336cc5f272bef27e15646f32f1001f83

STOCK OF CERTAIN SUBSIDIARIES.
(a) IN GENERAL- Section 246 (relating to rules for applying deduction for
dividends received) is amended by redesignating subsection (f) as subsection
(g) and by inserting after subsection (e) the following new subsection:
`(f) Deduction Disallowed on Preferred Stock of Subsidiary to Extent
Taxable Income Reduced by Losses of Group-
`(1) GENERAL RULE- No deduction shall be allowed under section 243, 244,
or 245 in respect of the disallowed portion of any applicable dividend.
`(2) APPLICABLE DIVIDEND- For purposes of this subsection--
`(A) IN GENERAL- The term `applicable dividend' means any dividend--
`(i) on stock described in section 1504(a)(4) in any corporation which
is a member of an affiliated group filing a consolidated return other
than the common parent (hereinafter in this subsection referred to as the
`distributing corporation'), and
`(ii) paid out of the current earnings and profits of the distributing
corporation for the taxable year (as determined under section 316(a)(2)).
`(B) LIMITATION BASED ON CONSOLIDATED LOSS OFFSET- The aggregate amount
of dividends treated as applicable dividends under subparagraph (A) shall
not exceed the consolidated loss offset of the distributing corporation.
`(3) DISALLOWED PORTION- For purposes of this subsection, the term
`disallowed portion' means the portion of an applicable dividend which
bears the same ratio to such dividend as--
`(A) the consolidated loss offset, bears to
`(B) the separately computed taxable income of the distributing corporation.
`(4) CONSOLIDATED LOSS OFFSET- For purposes of this subsection, the
term `consolidated loss offset' means, with respect to any distributing
corporation, any of the following items of any other member of the same
affiliated group as such corporation which are treated as used to offset
the separately computed taxable income of such corporation:
`(A) Any net operating loss or any net operating loss carryover under
section 172.
`(B) Any loss from the sale or exchange of any capital asset or any capital
loss carryover under section 1212.
`(C) The deduction equivalent (determined in the same manner as under
section 383) of any excess credit or any excess credit carryover (determined
under section 383 without regard to any foreign tax credit allowed under
section 27(a)).
`(5) SEPARATELY COMPUTED TAXABLE INCOME- The term `separately computed
taxable income' means the taxable income of a distributing corporation
computed as if it were not a member of an affiliated group.
`(6) REGULATIONS- The Secretary shall prescribe such regulations as may
be necessary to carry out the provisions of this subsection, including
regulations--
`(A) preventing the avoidance of this subsection through the transfer
of assets with built-in losses to the distributing corporation, through
delaying dividend payments, or through the use of tiered entities; and
`(B) exempting dividends from the application of this subsection if the
taxpayer can establish such dividends were paid from previously taxed
income.'
(b) REPORTING REQUIREMENTS FOR DIVIDENDS- Section 6042(a) (relating to
returns regarding payments of dividends and corporate earnings and profits)
is amended by inserting `or' at the end of subparagraph (B) and by adding
after subparagraph (B) the following new subparagraph:
`(C) who makes payments of applicable dividends (within the meaning of
section 246(f)(2)) to any corporation a portion of which is not allowable
as a deduction under section 243 or 245 by reason of section 246(f),'.
(c) EFFECTIVE DATES-
(1) IN GENERAL- The amendment made by this section shall apply to
distributions after October 2, 1989, in respect of stock issued after
such date.
(2) BINDING CONTRACT EXCEPTION- The amendment made by this section shall
not apply to distributions after October 2, 1989, in respect to stock
issued after such date pursuant to a written binding contract in effect
on October 2, 1989, and at all times thereafter before such issuance.
(3) SPECIAL RULE WHEN SUBSIDIARY LEAVES GROUP- If, by reason of a transaction
after October 2, 1989, a corporation ceases to be, or becomes, a member of
an affiliated group, the amendment made by this section shall apply to any
distribution in respect of the stock in such corporation after the date
of such cessation or commencement, unless such transaction is of a kind
which would not result in the recognition of any deferred intercompany gain
under the consolidated return regulations by reason of the acquisition of
the entire group.
(4) RETIRED STOCK- The amendments made by this section shall apply to
distributions in respect of stock described in paragraph (1) or (2) if such
stock is retired (or acquired) by the corporation or another member of the
same affiliated group, unless such retirement is pursuant to an obligation
to reissue under a binding written contract in effect on October 1, 1989,
and at all times thereafter.
(5) SPECIAL RATE FOR AUCTION RATE REFERRED- For purposes of this subsection,
auction rate preferred stock shall be treated as issued when the contract
requiring the auction became binding.

0bc7b1c646883dd6050717c707aa1a91c2e1fd9f9687eae45966696934243d4a

ISSUE DISCOUNT OBLIGATIONS.
(a) GENERAL RULE- Subsection (e) of section 163 (relating to interest
deductions on original issue discount obligations) is amended by
redesignating paragraph (5) as paragraph (6) and by inserting after paragraph
(4) the following new paragraph:
`(5) SPECIAL RULE FOR ORIGINAL ISSUE DISCOUNT ON CERTAIN HIGH YIELD
OBLIGATIONS- Any portion of any original issue discount on an applicable
high yield discount obligation (as defined in subsection (i)) otherwise
deductible by a C corporation shall not be allowable as a deduction until
paid. For purposes of the preceding sentence, rules similar to the rules
of subsection (i)(3)(B) shall apply in determining the time when original
issue discount is paid.'
(b) APPLICABLE HIGH YIELD DISCOUNT OBLIGATION- Section 163 is amended
by redesignating subsection (i) as subsection (j) and by inserting after
subsection (h) the following new subsection:
`(i) APPLICABLE HIGH YIELD DISCOUNT OBLIGATION-
`(1) IN GENERAL- For purposes of this section, the term `applicable high
yield discount obligation' means any debt instrument if--
`(A) the maturity date of such instrument is more than 5 years from the
date of issue,
`(B) the yield to maturity on such instrument equals or exceeds the sum of--
`(i) the applicable Federal rate in effect under section 1274(d) for the
calendar month in which the obligation is issued, plus
`(ii) 5 percentage points, and
`(C) such instrument has significant original issue discount.
For purposes of subparagraph (B)(i), the Secretary may by regulation permit
a rate to be used with respect to any debt instrument which is higher than
the applicable Federal rate if the taxpayer establishes to the satisfaction
of the Secretary that such higher rate is based on the same principles as
the applicable Federal rate and is appropriate for the term of the instrument.
`(2) SIGNIFICANT ORIGINAL ISSUE DISCOUNT- For purposes of paragraph (1)(C),
a debt instrument shall be treated as having significant original issue
discount if--
`(A) the aggregate amount which would be includible in gross income with
respect to such instrument for periods before the close of any accrual
period (as defined in section 1272(a)(5)) ending after the date 5 years
after the date of issue, exceeds--
`(B) the sum of--
`(i) the aggregate amount of interest to be paid under the instrument
before the close of such accrual period, and
`(ii) the product of the issue price of such instrument (as defined in
sections 1273(b) and 1274(a)) and its yield to maturity.
`(3) SPECIAL RULES- For purposes of determining whether a debt instrument
is an applicable high yield discount obligation--
`(A) any payment under the instrument shall be assumed to be made on the
last day permitted under the instrument, and
`(B) any payment to be made in the form of another obligation (or stock)
of the issuer (or a related person within the meaning of section 453(f)(1))
shall be assumed to be made when such obligation (or stock) is required
to be paid in cash or in property other than such obligation (or stock).
`(4) DEBT INSTRUMENT- For purposes of this subsection, the term `debt
instrument' means any instrument which is a debt instrument as defined in
section 1275(a).
`(5) REGULATIONS- The Secretary shall prescribe such regulations as may
be appropriate to carry out the purposes of this subsection, including--
`(A) regulations providing for modifications to the provisions of this
subsection in the case of varying rates of interest, put or call options,
indefinite maturities, contingent payments, assumptions of debt instruments,
conversion rights, or other circumstances where such modifications are
appropriate to carry out the purposes of this subsection, and
`(B) regulations to prevent avoidance of the purposes of this subsection
through the use of issuers other than C corporations, agreements to borrow
amounts due under the debt instrument, or other arrangements.'
(c) EFFECTIVE DATE-
(1) IN GENERAL- Except as provided in paragraph (2), the amendments made
by this section shall apply to instruments issued after July 10, 1989.
(2) EXCEPTIONS-
(A) The amendments made by this section shall not apply to any instrument
if--
(i) such instrument is issued in connection with an acquisition--
(I) which is made on or before July 10, 1989,
(II) for which there was a written binding contract in effect on July 10,
1989, and at all times thereafter before such acquisition, or
(III) for which a tender offer was filed with the Securities and Exchange
Commission on or before July 10, 1989,
(ii) the term of such instrument is not greater than--
(I) the term specified in the written documents described in clause (iii), or
(II) if no term is determined under subclause (I), 10 years, and
(iii) the use of such instrument in connection with such acquisition (and the
maximum amount of proceeds from such instrument) was determined on or before
July 10, 1989, and such determination is evidenced by written documents--
(I) which were transmitted on or before July 10, 1989 between the issuer and
any governmental regulatory bodies or prospective parties to the issuance
or acquisition, and
(II) which are customarily used for the type of acquisition or financing
involved.
(B) The amendments made by this section shall not apply to any instrument
issued pursuant to the terms of a debt instrument issued on or before July
10, 1989, or described in subparagraph (A) or (D).
(C) The amendments made by this section shall not apply to any instrument
issued to refinance an original issue discount debt instrument to which
the amendments made by this section do not apply if--
(i) the maturity date of the refinancing instrument is not later than the
maturity date of the refinanced instrument,
(ii) the issue price of the refinancing instrument does not exceed the
adjusted issue price of the refinanced instrument,
(iii) the stated redemption price at maturity of the refinancing instrument
is not greater than the stated redemption price at maturity of the refinanced
instrument, and
(iv) the interest payments required under the refinancing instrument before
maturity are not less than (and are paid not later than) the interest
payments required under the refinanced instrument.
(D) The amendments made by this section shall not apply to instruments issued
after July 10, 1989, pursuant to a reorganization plan in a title 11 or
similar case (as defined in section 368(a)(3) of the Internal Revenue Code
of 1986) if the amount of proceeds of such instruments, and the maturities
of such instruments, do not exceed the amount or maturities specified in
the last reorganization plan filed in such case on or before July 10, 1989.

9e82c82bdd74b5769269c2b675a76ad1ef8889f6b80d2f10f3f546e714eb5393

(a) GENERAL RULE- Section 351(a) (relating to nonrecognition in cases of
transfers to corporations controlled by transferor) is amended by striking
`or securities'.
(b) EXCEPTIONS FOR CERTAIN EXCHANGES- Section 351 is amended by redesignating
subsection (g) as subsection (h) and by inserting after subsection (f)
the following new subsection:
`(g) Certain Transferors Permitted to Receive Securities Without Recognition
of Gain or Loss-
`(1) IN GENERAL- In the case of the following exchanges, subsections (a),
(b), (d), and (e) shall be applied by substituting `stock or securities'
for `stock':
`(A) Any exchange in pursuance of a plan of reorganization.
`(B) Any exchange where the stock or securities received in the exchange
are distributed in a transaction to which section 355 (or so much of
section 356 as relates to section 355) applies.'
(c) CONFORMING AMENDMENTS- Subsections (b), (d), and (e)(2) of section
351 are each amended by striking `or securities'.
(d) Effective Date-
(1) IN GENERAL- Except as provided in this subsection, the amendments made
by this section shall apply to transfers after October 2, 1989, in taxable
years ending after such date.
(2) BINDING CONTRACT- The amendments made by this section shall not apply to
any transfer pursuant to a written binding contract in effect on October 2,
1989, and at all times thereafter before such transfer.
(3) CORPORATE TRANSFERS- In the case of property transferred (directly
or indirectly through a partnership or otherwise) by a C corporation,
paragraphs (1) and (2) shall be applied by substituting `July 11, 1989'
for `October 2, 1989'. The preceding sentence shall not apply where the
corporation meets the requirements of section 1504(a)(2) of the Internal
Revenue Code of 1986 with respect to the transferee corporation (and
where the transfer is not part of a plan pursuant to which the transferor
subsequently fails to meet such requirements.)

f1da627e9ef2ddcfbdcc8ea52a141c44536a5b976d8a2eb3c3d65f38fb428866

(a) REQUIREMENT TO DISTRIBUTE 98 PERCENT OF ORDINARY INCOME-
(1) IN GENERAL- Subparagraph (A) of section 4982(b)(1) (defining required
distribution) is amended by striking `97 percent' and inserting `98 percent'.
(2) EFFECTIVE DATE- The amendment made by paragraph (1) shall apply to
calendar years ending after July 10, 1989.
(b) TREATMENT OF CERTAIN MUTUAL FUND LOAD CHARGES-
(1) IN GENERAL- Section 852 (relating to taxation of regulated investment
companies and their shareholders) is amended by adding at the end thereof
the following new subsection:
`(f) TREATMENT OF CERTAIN LOAD CHARGES-
`(1) IN GENERAL- If--
`(A) the taxpayer incurs a load charge in acquiring stock in a regulated
investment company and, by reason of incurring such charge or making such
acquisition, the taxpayer acquires a reinvestment right,
`(B) such stock is disposed of within 6 months of the date on which such
stock was acquired, and
`(C) the taxpayer subsequently acquires stock in such regulated investment
company or in another regulated investment company and the otherwise
applicable load charge is reduced by reason of the reinvestment right,
the load charge referred to in subparagraph (A) (to the extent it does not
exceed the reduction referred to in subparagraph (C)) shall not be taken
into account for purposes of determining the amount of gain or loss on the
disposition referred to in subparagraph (B). To the extent such charge is not
taken into account in determining the amount of such gain or loss, such charge
shall be treated as incurred in connection with the acquisition referred to
in subparagraph (C) (including for purposes of reapplying this paragraph).
`(2) DEFINITIONS AND SPECIAL RULES- For purposes of this subsection--
`(A) LOAD CHARGE- The term `load charge' means any sales or similar
charge incurred by a person in acquiring stock of a regulated investment
company. Such term does not include any charge incurred by reason of the
reinvestment of a dividend.
`(B) REINVESTMENT RIGHT- The term `reinvestment right' means any right to
acquire stock of 1 or more other regulated investment companies without
the payment of a load charge or with the payment of a reduced charge.
`(C) NONRECOGNITION TRANSACTIONS- If the taxpayer acquires stock in
a regulated investment company from another person in a transaction in
which gain or loss is not recognized, the taxpayer shall succeed to the
treatment of such other person under this subsection.'
(2) EFFECTIVE DATE- The amendment made by paragraph (1) shall apply to
charges incurred after October 3, 1989, in taxable years ending after
such date.
(c) REGULATED INVESTMENT COMPANIES REQUIRED TO ACCRUE DIVIDENDS ON THE
EX-DIVIDEND DATE-
(1) IN GENERAL- Subsection (b) of section 852 (relating to treatment of
companies and shareholders) is amended by adding at the end thereof the
following new paragraph:
`(9) DIVIDENDS TREATED AS RECEIVED BY COMPANY ON EX-DIVIDEND DATE- For
purposes of this title, any dividend received by a regulated investment
company with respect to any share of stock shall be treated as received
by such company on the later of--
`(A) the date such share became ex-dividend with respect to such dividend, or
`(B) the date such company acquired such share.'
(2) EFFECTIVE DATE- The amendment made by paragraph (1) shall apply to
dividends in cases where the stock becomes ex-dividend after the date of
the enactment of this Act.

11bdbb932eda9c0f4c56d560b4ad4bb53c2325fbeaf051b0277dcff08b6117d1

GAIN AND LOSS PROVISIONS.
(a) GENERAL RULE- Clause (i) of section 382(h)(3)(B) (relating to threshold
requirement) is amended to read as follows:
`(i) IN GENERAL- If the amount of the net unrealized built-in gain or net
unrealized built-in loss (determined without regard to this subparagraph)
of any old loss corporation is not greater than the lesser of--
`(I) 15 percent of the amount determined for purposes of subparagraph
(A)(i)(I), or
`(II) $25,000,000,
the net unrealized built-in gain or net unrealized built-in loss shall
be zero.'
(b) CONFORMING AMENDMENT TO ADJUSTED CURRENT EARNINGS PREFERENCE-
Subparagraph (H) of section 56(g)(4) (relating to treatment of certain
ownership changes) is amended by striking clause (ii) and all that follows
and inserting the following:
`(ii) there is a net unrealized built-in loss (within the meaning of
section 382(h)) with respect to such corporation,
then the adjusted basis of each asset of such corporation (immediately after
the ownership change) shall be its proportionate share (determined on the
basis of respective fair market values) of the fair market value of the
assets of such corporation (determined under section 382(h)) immediately
before the ownership change.'
(c) EFFECTIVE DATE-
(1) IN GENERAL- Except as provided in paragraph (2), the amendments made
by this section shall apply to ownership changes and acquisitions after
October 2, 1989, in taxable years ending after such date.
(2) BINDING CONTRACT- The amendments made by this section shall not apply
to any ownership change or acquisition pursuant to a written binding
contract in effect on October 2, 1989, and at all times thereafter before
such change or acquisition.
(3) BANKRUPTCY PROCEEDINGS- In the case of a reorganization described in
section 368(a)(1)(G) of the Internal Revenue Code of 1986, or an exchange of
debt for stock in a title 11 or similar case (as defined in section 368(a)(3)
of such Code), the amendments made by this section shall not apply to any
ownership change resulting from such a reorganization or proceeding if a
petition in such case was filed with the court before October 3, 1989.

aa5c3bec374492ae45b27a386c898f2f5e989f723378278469efd97b5ca43d91

DIVIDENDS.
(a) GENERAL RULE- Section 1059 (relating to corporate shareholder's basis
in stock reduced by nontaxed portion of extraordinary dividends) is amended
by striking subsection (f) and inserting the following:
`(f) TREATMENT OF DIVIDENDS ON CERTAIN PREFERRED STOCK-
`(1) IN GENERAL- Any dividend with respect to disqualified preferred stock
shall be treated as an extraordinary dividend to which paragraphs (1) and
(2) of subsection (a) apply without regard to the period the taxpayer held
the stock.
`(2) DISQUALIFIED PREFERRED STOCK- For purposes of this subsection, the
term `disqualified preferred stock' means any stock which is preferred as
to dividends if--
`(A) when issued, such stock has a dividend rate which declines (or can
reasonably be expected to decline) in the future,
`(B) the issue price of such stock exceeds its liquidation rights or its
stated redemption price, or
`(C) such stock is otherwise structured--
`(i) to avoid the other provisions of this section, and
`(ii) to enable corporate shareholders to reduce tax through a combination
of dividend received deductions and loss on the disposition of the stock.
`(g) REGULATIONS- The Secretary shall prescribe such regulations as
may be appropriate to carry out the purposes of this section, including
regulations--
`(1) providing for the application of this section in the case of stock
dividends, stock splits, reorganizations, and other similar transactions
and in the case of stock held by pass-thru entities, and
`(2) providing that the rules of subsection (f) shall apply in the case
of stock which is not preferred as to dividends in cases where stock is
structured to avoid the purposes of this section.'
(b) EFFECTIVE DATE-
(1) IN GENERAL- Except as provided in paragraph (2), the amendment made by
subsection (a) shall apply to stock issued after July 10, 1989, in taxable
years ending after such date.
(2) BINDING CONTRACT- The amendment made by subsection (a) shall not apply
to any stock issued pursuant to a written binding contract in effect on
July 10, 1989, and at all times thereafter before the stock is issued.

820f1c5b04628828c7620470b162a1ed6169e9abdcd0910d6ee6bbcea1143889

REDUCING BASIS OF INDEBTEDNESS.
(a) GENERAL RULE- Subsection (e) of section 1503 (relating to special
rule for determining adjustment to basis) is amended by adding at the end
thereof the following new paragraph:
`(4) ELIMINATION OF ELECTION TO REDUCE BASIS OF INDEBTEDNESS- Nothing in
the regulations prescribed under section 1502 shall permit any reduction
in the amount otherwise included in gross income by reason of an excess
loss account if such reduction is on account of a reduction in the basis
of indebtedness.'
(b) EFFECTIVE DATE-
(1) IN GENERAL- Except as provided in paragraph (2), the amendment made by
subsection (a) shall apply to dispositions after July 10, 1989, in taxable
years ending after such date.
(2) BINDING CONTRACT- The amendment made by subsection (a) shall not apply
to any disposition pursuant to a written binding contract in effect on
July 10, 1989, and at all times thereafter before such disposition.

2bb730b43b26f1220e0e2ea15b94140b9ca86d8e7333efe51fed630c1cd77d9c

(a) CLARIFICATION OF REGULATORY AUTHORITY UNDER SECTION 385-
(1) IN GENERAL- Subsection (a) of section 385 (relating to treatment of
certain interests in corporations as stock or indebtedness) is amended
by inserting `(or as in part stock and in part indebtedness)' before the
period at the end thereof.
(2) REGULATIONS NOT TO BE APPLIED RETROACTIVELY- Any regulations issued
pursuant to the authority granted by the amendment made by paragraph (1)
shall only apply with respect to instruments issued after the date on which
the Secretary of the Treasury or his delegate provides public guidance as
to the characterization of such instruments whether by regulation, ruling,
or otherwise.
(b) REPORTING OF CERTAIN ACQUISITIONS OR RECAPITALIZATIONS-
(1) IN GENERAL- Section 6043 is amended by striking subsection (c) and
inserting the following new subsections:
`(c) CHANGES IN CONTROL AND RECAPITALIZATIONS- If--
`(1) control (as defined in section 304(c)(1)) of a corporation is acquired
by any person (or group of persons) in a transaction (or series of related
transactions), or
`(2) there is a recapitalization of a corporation or other substantial
change in the capital structure of a corporation,
when required by the Secretary, such corporation shall make a return
(at such time and in such manner as the Secretary may prescribe) setting
forth the identity of the parties to the transaction, the fees involved,
the changes in the capital structure involved, and such other information
as the Secretary may require with respect to such transaction.
`(d) CROSS REFERENCES-
`For provisions relating to penalties for failure to file--
`(1) a return under subsection (b), see section
6652(c), or
`(2) a return under subsection (c), see section
6652(l).'
(2) PENALTY- Section 6652 is amended by redesignating subsection (l)
as subsection (m) and by inserting after subsection (k) the following
new subsection:
`(l) FAILURE TO FILE RETURN WITH RESPECT TO CERTAIN CORPORATE TRANSACTIONS-
In the case of any failure to make a return required under section 6043(c)
containing the information required by such section on the date prescribed
therefor (determined with regard to any extension of time for filing),
unless it is shown that such failure is due to reasonable cause, there shall
be paid (on notice and demand by the Secretary and in the same manner as
tax) by the person failing to file such return, an amount equal to $500 for
each day during which such failure continues, but the total amount imposed
under this subsection with respect to any return shall not exceed $100,000.'
(3) CONFORMING AMENDMENTS-
(A) The subsection heading for subsection (a) of section 6043 is amended
by striking `CORPORATIONS' and inserting `CORPORATE LIQUIDATING, ETC.,
TRANSACTIONS'.
(B) The section heading for section 6043 is amended to read as follows:
`SEC. 6043. LIQUIDATING; ETC., TRANSACTIONS.'
(C) The table of sections for subpart B of part III of subchapter A of
chapter 61 is amended by striking the item relating to section 6043 and
inserting the following:
`Sec. 6043. Liquidating; etc., transactions.'
(4) EFFECTIVE DATE- The amendments made by this subsection shall apply to
transactions after March 31, 1990.

3cda7cd189950c880360b380688f03c675cccf55f7ff6d8e138914fa41e8bf88

(a) IN GENERAL- Subsection (g) of section 6655 (relating to failure by
corporation to pay estimated income tax) is amended by adding at the end
thereof the following new paragraph:
`(4) APPLICATION OF SECTION TO CERTAIN TAXES IMPOSED ON S CORPORATIONS-
In the case of an S corporation, for purposes of this section--
`(A) The following taxes shall be treated as imposed by section 11:
`(i) The tax imposed by section 1374(a) (or the corresponding provisions
of prior law).
`(ii) The tax imposed by section 1375(a).
`(iii) Any tax for which the S corporation is liable by reason of section
1371(d)(2).
`(B) Paragraph (2) of subsection (d) shall not apply.
`(C) Clause (ii) of subsection (d)(1)(B) shall be applied as if it read
as follows:
`(ii) the sum of--
`(I) the amount determined under clause (i) by only taking into account
the taxes referred to in clauses (i) and (iii) of subsection (g)(4)(A), and
`(II) 100 percent of the tax imposed by section 1375(a) which was shown
on the return of the corporation for the preceding taxable year.'
`(D) The requirement in the last sentence of subsection (d)(1)(B) that
the return for the preceding taxable year show a liability for tax shall
not apply.
`(E) Any reference in subsection (e) to taxable income shall be treated
as including a reference to the net recognized built-in gain or the excess
passive income (as the case may be).'
(b) EFFECTIVE DATE- The amendment made by subsection (a) shall apply to
taxable years beginning after December 31, 1989.

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EXCESS INTEREST ALLOCABLE TO CORPORATE EQUITY REDUCTION TRANSACTIONS.
(a) IN GENERAL- Paragraph (1) of section 172(b) (relating to which loss
may be carried) is amended by adding at the end thereof the following
new subparagraph:
`(M) Excess interest loss-
`(i) IN GENERAL- If--
`(I) there is a corporate equity reduction transaction, and
`(II) an applicable corporation has a corporate equity reduction interest
loss for any loss limitation year ending after August 2, 1989,
then the corporate equity reduction interest loss shall be a net operating
loss carryback and carryover to the taxable years described in subparagraphs
(A) and (B), except that such loss shall not be carried back to a taxable
year preceding the taxable year in which the corporate equity reduction
transaction occurs.
`(ii) LOSS LIMITATION YEAR- For purposes of clause (i) and subsection (m),
the term `loss limitation year' means, with respect to any corporate equity
reduction transaction, the taxable year in which such transaction occurs
and each of the 2 succeeding taxable years.
`(iii) APPLICABLE CORPORATION- For purposes of clause (i), the term
`applicable corporation' means--
`(I) a C corporation which acquires stock, or the stock of which is acquired,
in a major stock acquisition,
`(II) a C corporation which makes distributions with respect to, or redeems,
its stock in connection with an excess distribution, or
`(III) any C corporation which is a successor corporation of a corporation
described in subclause (I) or (II).
`(iv) OTHER DEFINITIONS- For definitions of terms used in this subparagraph,
see subsection (m).'
(b) CORPORATE EQUITY REDUCTION INTEREST LOANS AND CORPORATE EQUITY REDUCTION
TRANSACTION DEFINED- Section 172 is amended by redesignating subsection
(m) as subsection (n) and by inserting after subsection (l) the following
new subsection:
`(m) CORPORATE EQUITY REDUCTION INTEREST LOSSES- For purposes of this
section--
`(1) IN GENERAL- The term `corporate equity reduction interest loss' means,
with respect to any loss limitation year, the excess (if any) of--
`(A) the net operating loss for such taxable year, over
`(B) the net operating loss for such taxable year determined without
regard to any allocable interest deductions otherwise taken into account
in computing such loss.
`(2) Allocable interest deductions-
`(A) IN GENERAL- The term `allocable interest deductions' means deductions
allowed under this chapter for interest on the portion of any indebtedness
allocable to a corporate equity reduction transaction.
`(B) METHOD OF ALLOCATION- Except as provided in regulations and
subparagraph (E), indebtedness shall be allocated to a corporate equity
reduction transaction in the manner prescribed under clause (ii) of section
263A(f)(2)(A) (without regard to clause (i) thereof).
`(C) ALLOCABLE DEDUCTIONS NOT TO EXCEED INTEREST INCREASES- Allocable
interest deductions for any loss limitation year shall not exceed the excess
(if any) of--
`(i) the amount allowable as a deduction for interest paid or accrued by
the taxpayer during the loss limitation year, over
`(ii) the average of such amounts for the 3 taxable years preceding the
taxable year in which the corporate equity reduction transaction occurred.
`(D) DE MINIMIS RULE- A taxpayer shall be treated as having no allocable
interest deductions for any taxable year if the amount of such deductions
(without regard to this subparagraph) is less than $1,000,000.
`(E) SPECIAL RULE FOR CERTAIN UNFORESEEABLE EVENTS- If an unforeseeable
extraordinary adverse event occurs during a loss limitation year but after
the corporate equity reduction transaction--
`(i) indebtedness shall be allocated in the manner described in subparagraph
(B) to unreimbursed costs paid or incurred in connection with such event
before being allocated to the corporate equity reduction transaction, and
`(ii) the amount determined under subparagraph (C)(i) shall be reduced by
the amount of interest on indebtedness described in clause (i).
`(F) TRANSITION RULE- If any of the 3 taxable years described in subparagraph
(C)(ii) end on or before August 2, 1989, the taxpayer may substitute
for the amount determined under such subparagraph an amount equal to the
interest paid or accrued (determined on an annualized basis) during the
taxpayer's taxable year which includes August 3, 1989, on indebtedness of
the taxpayer outstanding on August 2, 1989.
`(3) Corporate equity reduction transaction-
`(A) IN GENERAL- The term `corporate equity reduction transaction' means--
`(i) a major stock acquisition, or
`(ii) an excess distribution.
`(B) Major stock acquisition-
`(i) IN GENERAL- The term `major stock acquisition' means the acquisition
by a corporation pursuant to a plan of such corporation (or any group
of persons acting in concert with such corporation) of stock in another
corporation representing 50 percent or more (by vote or value) of the
stock in such other corporation,
`(ii) EXCEPTIONS- The term `major stock acquisition' shall not include--
`(I) a qualified stock purchase (within the meaning of section 338) to which
an election under section 338 applies, or
`(II) except as provided in regulations, an acquisition in which
a corporation acquires stock of another corporation which, immediately
before the acquisition, was a member of an affiliated group (within the
meaning of section 1504(a)) other than the common parent of such group.
`(C) EXCESS DISTRIBUTION- The term `excess distribution' means the excess
(if any) of--
`(i) the aggregate distributions (including redemptions) made during a
taxable year by a corporation with respect to its stock, over
`(ii) the greater of--
`(I) 150 percent of the average of such distributions during the 3 taxable
years immediately preceding such taxable year, or
`(II) 10 percent of the fair market value of the stock of such corporation
as of the beginning of such taxable year.
`(D) RULES FOR APPLYING SUBPARAGRAPH (B)- For purposes of subparagraph (B)--
`(i) PLANS TO ACQUIRE STOCK- All plans referred to in subparagraph (B)
by any corporation (or group of persons acting in concert with such
corporation) with respect to another corporation shall be treated as 1 plan.
`(ii) ACQUISITIONS DURING 24-MONTH PERIOD- All acquisitions during any
24-month period shall be treated as pursuant to 1 plan.
`(E) RULES FOR APPLYING SUBPARAGRAPH (C)- For purposes of subparagraph (C)--
`(i) CERTAIN PREFERRED STOCK DISREGARDED- Stock described in section
1504(a)(4), and distributions (including redemptions) with respect to such
stock, shall be disregarded.
`(ii) ISSUANCE OF STOCK- The amounts determined under clauses (i) and
(ii)(I) of subparagraph (C) shall be reduced by the aggregate amount of
stock issued by the corporation during the applicable period in exchange
for money or property other than stock in the corporation.
`(4) Other rules-
`(A) ORDERING RULE- For purposes of paragraph (1), in determining the
allocable interest deductions taken into account in computing the net
operating loss for any taxable year, taxable income for such taxable year
shall be treated as having been computed by taking allocable interest
deductions into account after all other deductions.
`(B) COORDINATION WITH SUBSECTION (B)(2)- In applying paragraph (2)
of subsection (b), the corporate equity reduction interest loss shall be
treated in a manner similar to the manner in which a foreign expropriation
loss is treated.
`(C) MEMBERS OF AFFILIATED GROUPS- Except as provided by regulations, all
members of an affiliated group filing a consolidated return under section
1501 shall be treated as 1 taxpayer for purposes of this subsection and
subsection (b)(1)(M).
`(5) REGULATIONS- The Secretary shall prescribe such regulations as may
be necessary to carry out the purposes of this subsection, including
regulations--
`(A) for applying this subsection to successor corporations and in cases
where a taxpayer becomes, or ceases to be, a member of an affiliated group
filing a consolidated return under section 1501,
`(B) to prevent the avoidance of this subsection through related parties,
pass-through entities, and intermediaries, and
`(C) for applying this subsection where more than 1 corporation is involved
in a corporate equity reduction transaction.
(c) Effective Date-
(1) IN GENERAL- Except as provided in this subsection, the amendments made
by this section shall apply to corporate equity reduction transactions
occurring after August 2, 1989, in taxable years ending after August 2, 1989.
(2) EXCEPTIONS- In determining whether a corporate equity reduction
transaction has occurred after August 2, 1989, there shall not be taken
into account--
(A) acquisitions or redemptions of stock, or distributions with respect
to stock, occurring on or before August 2, 1989,
(B) acquisitions or redemptions of stock after August 2, 1989, pursuant
to a binding written contract (or tender offer filed with the Securities
and Exchange Commission) in effect on August 2, 1989, and at all times
thereafter before such acquisition or redemption, or
(C) any distribution with respect to stock after August 2, 1989, which
was declared on or before August 2, 1989.
Any distribution to which the preceding sentence applies shall be taken into
account under section 172(m)(3)(C)(ii)(I) of the Internal Revenue Code of 1986
(relating to base period for distributions).
Subtitle B--Employee Benefit Provisions

4932b030ddfc0d6d517cf451efe415c24ee72feeb6e52e788e991cab20800269

ACQUIRE EMPLOYER SECURITIES.
(a) EXCLUSION AVAILABLE ONLY WHERE EMPLOYEES RECEIVE SIGNIFICANT OWNERSHIP
INTEREST- Subsection (b) of section 133 (defining securities acquisition
loans) is amended by adding at the end thereof the following new paragraph:
`(6) PLAN MUST HOLD 30 PERCENT OF STOCK AFTER ACQUISITION OR TRANSFER-
`(A) IN GENERAL- A loan shall not be treated as a securities acquisition
loan for purposes of this section unless, immediately after the acquisition
or transfer referred to in subparagraph (A) or (B) of paragraph (1),
respectively, the employee stock ownership plan owns (after application
of section 318(a)(4)) at least 30 percent of--
`(i) each class of outstanding stock of the corporation issuing the employer
securities, or
`(ii) the total value of all outstanding stock of the corporation.
`(B) STOCK- For purposes of subparagraph (A)--
`(i) IN GENERAL- The term `stock' means stock other than stock described
in section 1504(a)(4).
`(ii) TREATMENT OF CERTAIN RIGHTS- The Secretary may provide that warrants,
options, contracts to acquire stock, convertible debt interests and
other similar interests be treated as stock for 1 or more purposes under
subparagraph (A).'.
(b) TERM OF LOAN MAY NOT EXCEED 15 YEARS- Paragraph (1) of section 133(b)
is amended by adding at the end thereof the following new sentence: `The
term `securities acquisition loan' shall not include a loan with a term
greater than 15 years.'
(c) VOTING RIGHTS- Subsection (b) of section 133, as amended by subsection
(a), is amended by adding at the end thereof the following new paragraph:
`(7) VOTING RIGHTS OF EMPLOYER SECURITIES- A loan shall not be treated as
a securities acquisition loan for purposes of this section unless--
`(A) the employee stock ownership plan meets the requirements of section
409(e)(2) with respect to all employer securities acquired by, or transferred
to, the plan in connection with such loan (without regard to whether or
not the employer has a registration-type class of securities), and
`(B) no stock described in section 409(l)(3) is acquired by, or transferred
to, the plan in connection with such loan unless--
`(i) such stock has voting rights equivalent to the stock to which it may
be converted, and
`(ii) the requirements of subparagraph (A) are met with respect to such
voting rights.'.
(d) TAX ON DISPOSITION OF SECURITIES BY EMPLOYEE STOCK OWNERSHIP PLANS-
(1) IN GENERAL- Chapter 43 is amended by inserting after section 4978A
the following new section:
`SEC. 4978B. TAX ON DISPOSITION OF EMPLOYER SECURITIES TO WHICH SECTION
133 APPLIED.
`(a) IMPOSITION OF TAX- In the case of an employee stock ownership plan
which has acquired section 133 securities, there is hereby imposed a tax
on each taxable event in an amount equal to the amount determined under
subsection (b).
`(b) AMOUNT OF TAX-
`(1) IN GENERAL- The amount of the tax imposed by subsection (a) shall
be equal to 10 percent of the amount realized on the disposition to the
extent allocable to section 133 securities under section 4978A(d).
`(2) DISPOSITIONS OTHER THAN SALES OR EXCHANGES- For purposes of paragraph
(1), in the case of a disposition of employer securities which is not a
sale or exchange, the amount realized on such disposition shall be the
fair market value of such securities at the time of disposition.
`(c) TAXABLE EVENT- For purposes of this section, the term `taxable event'
means any of the following dispositions:
`(1) DISPOSITIONS WITHIN 3 YEARS- Any disposition of any employer securities
by an employee stock ownership plan within 3 years after such plan acquired
section 133 securities if--
`(A) the total number of employer securities held by such plan after such
disposition is less than the total number of employer securities held
after such acquisition, or
`(B) except to the extent provided in regulations, the value of employer
securities held by such plan after the disposition is less than 30 percent of
the total value of all employer securities as of the time of the disposition.
`(2) STOCK DISPOSED OF BEFORE ALLOCATION- Any disposition of section 133
securities to which paragraph (1) does not apply if--
`(A) such disposition occurs before such securities are allocated to
accounts of participants or their beneficiaries, and
`(B) the proceeds from such disposition are not so allocated.
`(d) DEFINITIONS AND SPECIAL RULES- For purposes of this section--
`(1) EXCEPTIONS- Rules similar to the rules of section 4978A(e) shall apply.
`(2) LIABILITY FOR PAYMENT OF TAXES- The tax imposed by this section shall
be paid by the employer.
`(3) SECTION 133 SECURITIES- The term `section 133 securities' means employer
securities acquired by an employee stock ownership plan in a transaction
to which section 133 applied, except that such term shall not include--
`(A) qualified securities (as defined in section 4978(e)(2)), or
`(B) qualified employer securities (as defined in section 4978A(f)(2)).
`(4) DISPOSITION- The term `disposition' includes any distribution.
`(5) ORDERING RULES- For ordering rules for dispositions of employer
securities, see section 4978A(d).'
(2) CONFORMING AMENDMENTS-
(A) Section 4978A(d) is amended by redesignating paragraphs (3) and (4) as
paragraphs (5) and (6) and by inserting after paragraph (2) the following
new paragraphs:
`(3) Third, from section 133 securities (as defined in section 4978B(d)(3))
acquired during the 3-year period ending on the date of such disposition,
beginning with the securities first so acquired.
`(4) Fourth, from section 133 securities (as so defined) acquired before
such 3-year period unless such securities (or proceeds from the disposition)
have been allocated to accounts of participants or beneficiaries.'
(B) Section 4978A(d)(5), as redesignated by clause (i), is amended by
striking `Third' and inserting `Fifth'.
(C) The table of sections for chapter 43 is amended by inserting after
the item relating to section 4978A the following new item:
`Sec. 4978B. Tax on disposition of employer securities to which section
133 applied.'.
(e) Effective Dates-
(1) IN GENERAL- Except as provided in this subsection, the amendments made
by this section shall apply to loans made after June 6, 1989.
(2) BINDING COMMITMENT EXCEPTION- The amendments made by this section
shall not apply to any loan--
(A) which is made pursuant to a binding written commitment in effect on
June 6, 1989, and at all times thereafter before such loan is made, or
(B) to the extent that the proceeds of such loan are used to acquire
employer securities pursuant to a written binding contract (or tender offer
registered with the Securities and Exchange Commission) in effect on June 6,
1989, and at all times thereafter before such securities are acquired.
(3) REFINANCINGS- The amendments made by this section shall not apply to
loans made after June 6, 1989, to refinance securities acquisition loans
(determined without regard to section 133(b)(2) of the Internal Revenue
Code of 1986) made on or before such date or to refinance loans described
in this paragraph or paragraph (2), (4), or (5) if--
(A) such refinancing loans meet the requirements of such section 133 of
such Code (as in effect before such amendments) applicable to such loans,
(B) immediately after the refinancing the principal amount of the loan
resulting from the refinancing does not exceed the principal amount of
the refinanced loan (immediately before the refinancing), and
(C) the term of such refinancing loan does not extend beyond the later of--
(i) the last day of the term of the original securities acquisition loan, or
(ii) the last day of the 7-year period beginning on the date the original
securities acquisition loan was made.
For purposes of this paragraph, the term `securities acquisition loan'
shall include a loan from a corporation to an employee stock ownership plan
described in section 133(b)(3) of such Code.
(4) COLLECTIVE BARGAINING AGREEMENTS- The amendments made by this section
shall not apply to any loan to the extent such loan is used to acquire
employer securities for an employee stock ownership plan pursuant to a
collective bargaining agreement setting forth the material terms of such
employee stock ownership plan which was agreed to on or before June 6,
1989, by one or more employers and employee representatives (and ratified
on or before such date or within a reasonable period thereafter).
(5) FILINGS WITH UNITED STATES- The amendments made by this section shall not
apply to any loan the aggregate principal amount of which was specified in
a filing with an agency of the United States on or before June 6, 1989, if--
(A) such filing specifies such loan is to be a securities acquisition loan
for purposes of section 133 of the Internal Revenue Code of 1986 and such
filing is for the registration required to permit the offering of such
loan, or
(B) such filing is for the approval required in order for the employee
stock ownership plan to acquire more than a certain percentage of the
stock of the employer.

f344272d2ca778e1f7671793dc7dbdf6864d62c288e6d9bf527e6e286f44b3cf

(a) IN GENERAL- Section 401(h) is amended by adding at the end thereof the
following new sentence: `In no event shall the requirements of paragraph
(1) be treated as met if the aggregate actual contributions for medical
benefits, when added to actual contributions for life insurance protection
under the plan, exceed 25 percent of the total actual contributions to
the plan (other than contributions to fund past service credits) after
the date on which the account is established.'
(b) EFFECTIVE DATE- The amendment made by this section shall apply to
contributions after October 3, 1989.
Subtitle C--Foreign Provisions

d60e665d352fbdbb760d1bab7f5640b8a67e0031ef495ffb417cc1da8b2df612

(a) GENERAL RULE- Subpart D of part II of subchapter N of chapter 1
(relating to miscellaneous provisions) is amended by adding at the end
thereof the following new section:
`SEC. 898. TAXABLE YEAR OF CERTAIN FOREIGN CORPORATIONS.
`(a) GENERAL RULE- For purposes of this title, the taxable year of any
specified foreign corporation shall be the required year determined under
subsection (c).
`(b) SPECIFIED FOREIGN CORPORATION- For purposes of this section--
`(1) IN GENERAL- The term `specified foreign corporation' means any foreign
corporation--
`(A) which is--
`(i) treated as a controlled foreign corporation for any purpose under
subpart F of part III of this subchapter, or
`(ii) a foreign personal holding company (as defined in section 552), and
`(B) with respect to which the ownership requirements of paragraph (2)
are met.
`(2) Ownership requirements-
`(A) IN GENERAL- The ownership requirements of this paragraph are met with
respect to any foreign corporation if a United States shareholder owns,
on each testing day, more than 50 percent of--
`(i) the total voting power of all classes of stock of such corporation
entitled to vote, or
`(ii) the total value of all classes of stock of such corporation.
`(B) OWNERSHIP- For purposes of subparagraph (A), the rules of subsections
(a) and (b) of section 958 and sections 551(f) and 554, whichever are
applicable, shall apply in determining ownership.
`(3) UNITED STATES SHAREHOLDER-
`(A) IN GENERAL- The term `United States shareholder' has the meaning
given to such term by section 951(b), except that, in the case of a
foreign corporation having related person insurance income (as defined in
section 953(c)(2)), the Secretary may treat any person as a United States
shareholder for purposes of this section if such person is treated as a
United States shareholder under section 953(c)(1).
`(B) FOREIGN PERSONAL HOLDING COMPANIES- In the case of any foreign
personal holding company (as defined in section 552) which is not a
specified foreign corporation by reason of paragraph (1)(A)(i), the term
`United States shareholder' means any person who is treated as a United
States shareholder under section 551.
`(c) DETERMINATION OF REQUIRED YEAR-
`(1) CONTROLLED FOREIGN CORPORATIONS-
`(A) IN GENERAL- In the case of a specified foreign corporation described
in subsection (b)(1)(A)(i), the required year is--
`(i) the majority U.S. shareholder year, or
`(ii) if there is no majority U.S. shareholder year, the taxable year
prescribed under regulations.
`(B) 1-MONTH DEFERRAL ALLOWED- Except as provided in paragraph (2),
a specified foreign corporation may elect, in lieu of the taxable year
under subparagraph (A)(i), a taxable year beginning 1 month earlier than
the majority U.S. shareholder year.
`(C) MAJORITY U.S. SHAREHOLDER YEAR-
`(i) IN GENERAL- For purposes of this subsection, the term `majority
U.S. shareholder year' means the taxable year (if any) which, on each
testing day, constituted the taxable year of--
`(I) each United States shareholder described in subsection (b)(2)(A), and
`(II) each United States shareholder not described in subclause (I) whose
stock was treated as owned under subsection (b)(2)(B) by any shareholder
described in such subclause.
`(ii) TESTING DAY- The testing days shall be--
`(I) the first day of the corporation's taxable year (determined without
regard to this section), or
`(II) the days during such representative period as the Secretary may
prescribe.
`(2) FOREIGN PERSONAL HOLDING COMPANIES- In the case of a foreign personal
holding company described in subsection (b)(3)(B), the required year shall
be determined under paragraph (1), except that subparagraph (B) of paragraph
(1) shall not apply.'
(b) TREATMENT OF DIVIDENDS PAID AFTER CLOSE OF TAXABLE YEAR-
(1) IN GENERAL- Section 563 is amended by redesignating subsection (c)
as subsection (d) and by inserting after subsection (b) the following
new subsection:
`(c) FOREIGN PERSONAL HOLDING COMPANY TAX-
`(1) IN GENERAL- In the determination of the dividends paid deduction for
purposes of part III, a dividend paid after the close of any taxable year
and on or before the 15th day of the 3rd month following the close of such
taxable year shall, to the extent the company designates such dividend
as being taken into account under this subsection, be considered as paid
during such taxable year. The amount allowed as a deduction by reason of
the application of this subsection with respect to any taxable year shall
not exceed the undistributed foreign personal holding company income of the
corporation for the taxable year computed without regard to this subsection.
`(2) SPECIAL RULES- In the case of any distribution referred to in paragraph
(1)--
`(A) paragraph (1) shall apply only if such distribution is to the person
who was the shareholder of record (as of the last day of the taxable year
of the foreign personal holding company) with respect to the stock for
which such distribution is made,
`(B) the determination of the person required to include such distribution
in gross income shall be made under the principles of section 551(f), and
`(C) any person required to include such distribution in gross or
distributable net income shall include such distribution in income for such
person's taxable year in which the taxable year of the foreign personal
holding company ends.'
(2) CONFORMING AMENDMENT- Subsection (d) of section 563 (as redesignated by
paragraph (1)) is amended by striking `subsection (a) or (b)' and inserting
`subsection (a), (b), or (c)'.
(c) CLERICAL AMENDMENT- The table of sections for subpart D of part II
of subchapter N of chapter 1 is amended by adding at the end thereof the
following new item:
`Sec. 898. Taxable year of certain foreign corporations.'
(d) EFFECTIVE DATE-
(1) IN GENERAL- The amendments made by this section shall apply to taxable
years of foreign corporations beginning after July 10, 1989.
(2) SPECIAL RULES- If any foreign corporation is required by the amendments
made by this section to change its taxable year for its first taxable year
beginning after July 10, 1989--
(A) such change shall be treated as initiated by the taxpayer,
(B) such change shall be treated as having been made with the consent of
the Secretary of the Treasury or his delegate, and
(C) if, by reason of such change, any United States person is required
to include in gross income for 1 taxable year amounts attributable to 2
taxable years of such foreign corporation, the amount which would otherwise
be required to be included in gross income for such 1 taxable year by reason
of the short taxable year of the foreign corporation resulting from such
change shall be included in gross income ratably over the 4-taxable-year
period beginning with such 1 taxable year.

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LIMITATIONS.
(a) GENERAL RULE- Section 904 (relating to limitations on foreign tax
credit) is amended by redesignating subsection (i) as subsection (j)
and by inserting after subsection (h) the following new subsection:
`(i) LIMITATION ON USE OF DECONSOLIDATION TO AVOID FOREIGN TAX CREDIT
LIMITATIONS- If 2 or more domestic corporations would be members of the
same affiliated group if--
`(1) section 1504(b) were applied without regard to the exceptions contained
therein, and
`(2) the constructive ownership rules of section 1563(e) applied for
purposes of section 1504(a),
the Secretary may by regulations provide for resourcing the income of any of
such corporations or for modifications to the consolidated return regulations
to the extent that such resourcing or modifications are necessary to prevent
the avoidance of the provisions of this subpart.'
(b) EFFECTIVE DATE- The amendment made by subsection (a) shall apply to
taxable years beginning after July 10, 1989.

d89175138d18848b88f6e523a52d432391f7fc492e621d4ec0011638db66d4ae

(a) 25-PERCENT FOREIGN-OWNED CORPORATIONS REQUIRED TO REPORT-
(1) Paragraph (2) of section 6038A(a) is amended to read as follows:
`(2) is 25-percent foreign-owned,'.
(2) Subsection (c) of section 6038A is amended to read as follows:
`(c) DEFINITIONS- For purposes of this section--
`(1) 25-PERCENT FOREIGN-OWNED- A corporation is 25-percent foreign-owned
if at least 25 percent of--
`(A) the total voting power of all classes of stock of such corporation
entitled to vote, or
`(B) the total value of all classes of stock of such corporation,
is owned at any time during the taxable year by 1 foreign person (hereinafter
in this section referred to as a `25-percent foreign shareholder').
`(2) RELATED PARTY- The term `related party' means--
`(A) any 25-percent foreign shareholder of the reporting corporation,
`(B) any person who is related (within the meaning of section 267(b)
or 707(b)(1)) to the reporting corporation or to a 25-percent foreign
shareholder of the reporting corporation, and
`(C) any other person who is related (within the meaning of section 482)
to the reporting corporation.
`(4) FOREIGN PERSON- The term `foreign person' means any person who is
not a United States person. For purposes of the preceding sentence, the
term `United States person' has the meaning given to such term by section
7701(a)(30), except that any individual who is a citizen of any possession
of the United States (but not otherwise a citizen of the United States)
and who is not a resident of the United States shall not be treated as a
United States person.
`(5) RECORDS- The term `records' includes any books, papers, or other data.
`(6) SECTION 318 TO APPLY- Section 318 shall apply for purposes of paragraphs
(1) and (2), except that--
`(A) `10 percent' shall be substituted for `50 percent' in section
318(a)(2)(C), and
`(B) subparagraphs (A), (B), and (C) of section 318(a)(3) shall not be
applied so as to consider a United States person as owning stock which is
owned by a person who is not a United States person.'
(b) U.S. RECORDKEEPING REQUIREMENTS- Subsection (a) of section 6038A is
amended by inserting before the period at the end thereof the following:
`and such corporation shall maintain (in the location, in the manner, and
to the extent prescribed in regulations) such records as may be appropriate
to determine the correct treatment of transactions with related parties
as the Secretary shall by regulations prescribe (or shall cause another
person to so maintain such records)'.
(c) INCREASE IN PENALTY- Subsection (d) of section 6038A is amended to
read as follows:
`(d) Penalty for Failure To Furnish Information or Maintain Records-
`(1) IN GENERAL- If a reporting corporation--
`(A) fails to furnish (within the time prescribed by regulations) any
information described in subsection (b), or
`(B) fails to maintain (or cause another to maintain) records as required
by subsection (a),
such corporation shall pay a penalty of $10,000 for each taxable year with
respect to which such failure occurs.
`(2) INCREASE IN PENALTY WHERE FAILURE CONTINUES AFTER NOTIFICATION- If
any failure described in paragraph (1) continues for more than 90 days
after the day on which the Secretary mails notice of such failure to the
reporting corporation, such corporation shall pay a penalty (in addition
to the amount required under paragraph (1)) of $10,000 for each 30-day
period (or fraction thereof) during which such failure continues after
the expiration of such 90-day period.
`(3) REASONABLE CAUSE- For purposes of this subsection, the time prescribed
by regulations to furnish information or maintain records (and the beginning
of the 90-day period after notice by the Secretary) shall be treated as
not earlier than the last day on which (as shown to the satisfaction of the
Secretary) reasonable cause existed for failure to furnish the information
or maintain the records.'
(d) ENFORCEMENT OF INFORMATION REQUESTS- Section 6038A is amended by
redesignating subsection (e) as subsection (f) and by inserting after
subsection (d) the following new subsection:
`(e) ENFORCEMENT OF REQUESTS FOR CERTAIN RECORDS-
`(1) AGREEMENT TO TREAT CORPORATION AS AGENT- The rules of paragraph (3)
shall apply to any transaction between the reporting corporation and any
related party who is a foreign person unless such related party agrees
(in such manner and at such time as the Secretary shall prescribe) to
authorize the reporting corporation to act as such related party's agent
solely for purposes of applying sections 7602, 7603, and 7604 with respect
to any request to examine records or produce testimony related to any such
transaction or with respect to any summons for such records or testimony.
`(2) RULES WHERE INFORMATION NOT FURNISHED- If--
`(A) for purposes of determining the correct treatment of any transaction
between the reporting corporation and a related party who is a foreign
person, the Secretary issues a summons to such corporation to produce (either
directly or as agent for such related party) any records or testimony,
`(B) such summons is not quashed in a proceeding begun under paragraph (4)
and is not determined to be invalid in a proceeding begun under section
7604(b) to enforce such summons, and
`(C) the reporting corporation does not substantially comply in a timely
manner with such summons,
the Secretary may apply the rules of paragraph (3) with respect to such
transaction (whether or not the Secretary begins a proceeding to enforce such
summons). If the reporting corporation fails to maintain (or cause another
to maintain) records as required by subsection (a), and by reason of that
failure, the summons is quashed in a proceeding described in subparagraph (B)
or the reporting corporation is not able to provide the records requested in
the summons, the Secretary may apply the rules of paragraph (3) with respect
to any transaction to which the records relate.
`(3) APPLICABLE RULES IN CASES OF NONCOMPLIANCE- If the rules of this
paragraph apply to any transaction--
`(A) the amount of the deduction allowed under subtitle A for any amount
paid or incurred by the reporting corporation to the related party in
connection with such transaction, and
`(B) the cost to the reporting corporation of any property acquired in such
transaction from the related party (or transferred by such corporation in
such transaction to the related party),
shall be the amount determined by the Secretary in the Secretary's sole
discretion from the Secretary's own knowledge or from such information as
the Secretary may obtain through testimony or otherwise.
`(4) PROCEEDING TO QUASH-
`(A) IN GENERAL- Notwithstanding any law or rule of law, any reporting
corporation to which the Secretary issues a summons referred to in paragraph
(2)(A) shall have the right to begin a proceeding to quash such summons
not later than the 90th day after such summons was issued. In any such
proceeding, the Secretary may seek to compel compliance with such summons.
`(B) JURISDICTION- The United States district court for the district in which
the person (to whom the summons is issued) resides or is found shall have
jurisdiction to hear any proceeding brought under subparagraph (A). An order
denying the petition shall be treated as a final order which may be appealed.
`(C) SUSPENSION OF STATUTE OF LIMITATIONS- If the reporting corporation
brings an action under subparagraph (A) to quash the summons referred to in
paragraph (2)(A), the running of any period of limitations under section
6501 (relating to assessment and collection of tax) or under section 6531
(relating to criminal prosecutions) with respect to any transaction to
which the summons relates shall be suspended for the period during which
such proceeding, and appeals therein, are pending. In no event shall any
such period expire before the 90th day after the day on which there is a
final determination in such proceeding.'
(e) EFFECTIVE DATE- The amendments made by this section shall apply to
taxable years beginning after July 10, 1989.
Subtitle D--Excise Tax Provisions

9f2a8f115eefd575a496297432b0edddeb5cfec5f9d9d2c395851c6aef5aeba7

(a) IN GENERAL- Subsection (a) of section 4283 (relating to reduction in
aviation-related taxes in certain cases) is amended by striking `during
1990' and inserting `after September 30, 1990'.
(b) CONFORMING AMENDMENTS-
(1) Clause (i) of section 4283(b)(1)(A) is amended by striking `1988 and
1989' and inserting `1989 and 1990'.
(2) Paragraph (3) of section 4283(b) is amended--
(A) by striking `December 1, 1989' and inserting `September 1, 1990', and
(B) by striking `during 1990' and inserting `after September 30, 1990'.
(3) Subsection (q) of section 6427 is amended by striking `during 1990'
each place it appears and inserting `after September 30, 1990'.

1bcb783d8af698ae2aa156827e3b69404503a3e2a3a240bd1f14a88152b411b9

(a) IN GENERAL- Section 4261(c) (relating to tax on use of international
travel facilities) is amended by striking `$3' and inserting `$6'.
(b) EFFECTIVE DATE- The amendment made by subsection (a) shall apply with
respect to transportation beginning after December 31, 1989.

9079137d375a30d65a7ca776dbf567224e1ca7f15a39c30b5fdb5cc13ce7f9e6

(a) IN GENERAL- Chapter 36 (relating to certain other excise taxes) is
amended by inserting after subchapter A the following new subchapter:
`Subchapter B--Transportation by Water
`Sec. 4471. Imposition of tax.
`Sec. 4472. Definitions and special rules.
`SEC. 4471. IMPOSITION OF TAX.
`(a) IN GENERAL- There is hereby imposed a tax of $3 per passenger on a
covered voyage.
`(b) BY WHOM PAID- The tax imposed by this section shall be paid by the
person providing the covered voyage.
`(c) TIME OF IMPOSITION- The tax imposed by this section shall be imposed
only once for each passenger on a covered voyage, either at the time of
first embarkation or disembarkation in the United States.
`SEC. 4472. DEFINITIONS.
`For purposes of this subchapter--
`(1) Covered voyage-
`(A) IN GENERAL- The term `covered voyage' means a voyage of--
`(i) a commercial passenger vessel which extends over 1 or more nights, or
`(ii) a commercial vessel transporting passengers engaged in gambling
aboard the vessel beyond the territorial waters of the United States,
during which passengers embark or disembark the vessel in the United
States. Such term shall not include any voyage on any vessel owned or operated
by the United States, a State, or any agency or subdivision thereof.
`(B) EXCEPTION FOR CERTAIN VOYAGES ON PASSENGER VESSELS- The term `covered
voyage' shall not include a voyage of a passenger vessel of less than 12
hours between 2 ports in the United States.
`(2) PASSENGER VESSEL- The term `passenger vessel' means any vessel having
berth or stateroom accommodations for more than 16 passengers.'
(b) CLERICAL AMENDMENTS- The table of subchapters for chapter 36 is amended
by inserting after the item relating to subchapter A the following new item:
`SUBCHAPTER B. Transportation by water.'
(c) EFFECTIVE DATE-
(1) IN GENERAL- The amendments made by this section shall apply to voyages
beginning after December 31, 1989.
(2) NO DEPOSITS REQUIRED BEFORE APRIL 1, 1990- No deposit of any tax
imposed by subchapter B of chapter 36 of the Internal Revenue Code of 1986,
as added by this section, shall be required to be made before April 1, 1990.

fad1a7295a4498d14362802660450089ef3382bedf0563cf3f7cec00eae4a779

1, 1990.
(a) TAX TO TAKE EFFECT ON JANUARY 1, 1990-
(1) IN GENERAL- Subsection (f) of section 4611 (relating to application
of Oil Spill Liability Trust Fund financing rate) is amended by striking
paragraphs (1) and (2) and by inserting the following:
`(1) IN GENERAL- Except as provided in paragraph (2), the Oil Spill Liability
Trust Fund financing rate under subsection (c) shall apply after December
31, 1989, and before January 1, 1992.'
(2) CONFORMING AMENDMENT- Paragraph (3) of section 4611(f) is redesignated
as paragraph (2) and is amended by striking `the commencement date' in
subparagraph (A) and inserting `January 1, 1990,'.
(b) 3-CENT RATE OF TAX- Subparagraph (B) of section 4611(c)(2) is amended
by striking `1.3 cents' and inserting `3 cents'.
(c) OIL SPILL LIABILITY TRUST FUND TO BE OPERATING FUND-
(1) IN GENERAL- For purposes of sections 8032(d) and 8033(c) of the Omnibus
Budget Reconciliation Act of 1986, the commencement date is January 1, 1990.
(2) CONFORMING AMENDMENTS-
(A) Section 9509 (relating to Oil Spill Liability Trust Fund) is amended
by adding at the end thereof the following new subsection:
`(f) REFERENCES TO COMPREHENSIVE OIL POLLUTION LIABILITY AND COMPENSATION
ACT- For purposes of this section, references to the Comprehensive Oil
Pollution Liability and Compensation Act shall be treated as references to
any law enacted before December 31, 1990, which is substantially identical
to subtitle E of title VI, or subtitle D of title VIII, of H.R. 5300 of
the 99th Congress as passed by the House of Representatives or the Oil
Pollution Liability and Compensation Act of 1989, S. 686 of the 101st
Congress as passed by the Senate.'
(B) Paragraph (3) of section 9509(b) is amended by striking `(on the 1st
day the Oil Spill Liability Trust Fund financing rate under section 4611(c)
applies)' and inserting `(on January 1, 1990)'.
(C) Paragraph (1)(A) of section 9509(c) is amended by striking the last
sentence.

1f97bfbb267988cc0ffd0071ecbbc73262f557a02a63edf097b5984b8f7f91fe

AND OF PRODUCTS CONTAINING SUCH CHEMICALS.
(a) IN GENERAL- Chapter 38 (relating to environmental taxes) is amended
by adding at the end thereof the following new subchapter:
`Subchapter D--Ozone-Depleting Chemicals, Etc.
`Sec. 4681. Imposition of tax.
`Sec. 4682. Definitions and special rules.
`SEC. 4681. IMPOSITION OF TAX.
`(a) GENERAL RULE- There is hereby imposed a tax on--
`(1) any ozone-depleting chemical sold or used by the manufacturer,
producer, or importer thereof, and
`(2) any imported taxable product sold or used by the importer thereof.
`(b) AMOUNT OF TAX-
`(1) OZONE-DEPLETING CHEMICALS-
`(A) IN GENERAL- The amount of the tax imposed by subsection (a) on each
pound of ozone-depleting chemical shall be an amount equal to--
`(i) the base tax amount, multiplied by
`(ii) the ozone-depletion factor for such chemical.
`(B) BASE TAX AMOUNT- The base tax amount for purposes of subparagraph
(A) with respect to any sale or use during a calendar year is the amount
determined under the following table for such calendar year:
--Base tax
`Calendar year:
--amount:
1990
--$1.07
1991
--1.12
1992
--1.67
1993
--3.15
1994 or thereafter
--3.15.
`(2) IMPORTED TAXABLE PRODUCT-
`(A) IN GENERAL- The amount of the tax imposed by subsection (a) on any
imported taxable product shall be the amount of tax which would have been
imposed by subsection (a) on the ozone-depleting chemicals used as materials
in the manufacture or production of such product if such ozone-depleting
chemicals had been sold in the United States on the date of the sale of
such imported taxable product.
`(B) CERTAIN RULES TO APPLY- Rules similar to the rules of paragraphs (2)
and (3) of section 4671(b) shall apply.
`SEC. 4682. DEFINITIONS AND SPECIAL RULES.
`(a) OZONE-DEPLETING CHEMICAL- For purposes of this subchapter--
`(1) IN GENERAL- The term `ozone-depleting chemical' means any substance--
`(A) which, at the time of the sale or use by the manufacturer, producer,
or importer, is listed as an ozone-depleting chemical in the table contained
in paragraph (2), and
`(B) which is manufactured or produced in the United States or entered
into the United States for consumption, use, or warehousing.
`(2) OZONE-DEPLETING CHEMICALS-
`Common name:
Chemical nomenclature:
CFC-11
trichlorofluoromethane
CFC-12
dichlorodifluoromethane
CFC-113
trichlorotrifluoroethane
CFC-114
1,2-dichloro-1,1,2,2-tetra-
xl
fluoroethane
CFC-115
chloropentafluoroethane
Halon-1211
bromochlorodifluoromethane
Halon-1301
bromotrifluoromethane
Halon-2402
dibromotetrafluoroethane.
`(b) OZONE-DEPLETION FACTOR- For purposes of this subchapter, the term
`ozone-depletion factor' means, with respect to an ozone-depleting chemical,
the factor assigned to such chemical under the following table:
`Ozone-depleting
--Ozone-depletion
chemical:
--factor:
CFC-11
--1.0
CFC-12
--1.0
CFC-113
--0.8
CFC-114
--1.0
CFC-115
--0.6
Halon-1211
--3.0
Halon-1301
--10.0
Halon-2402
--6.0.
`(c) IMPORTED TAXABLE PRODUCT- For purposes of this subchapter--
`(1) IN GENERAL- The term `imported taxable product' means any product
(other than an ozone-depleting chemical) entered into the United States
for consumption, use, or warehousing if any ozone-depleting chemical was
used as material in the manufacture or production of such product.
`(2) DE MINIMIS EXCEPTION- The term `imported taxable product' shall not
include any product specified in regulations prescribed by the Secretary
as using a de minimis amount of ozone-depleting chemicals as materials
in the manufacture or production thereof. The preceding sentence shall
not apply to any product in which any ozone-depleting chemical is used for
purposes of refrigeration or air conditioning, creating an aerosol or foam,
or manufacturing electronic components.
`(d) EXCEPTIONS-
`(1) RECYCLING- No tax shall be imposed by section 4681 on any
ozone-depleting chemical which is diverted or recovered in the United
States as part of a recycling process (and not as part of the original
manufacturing or production process).
`(2) USE IN FURTHER MANUFACTURE-
`(A) IN GENERAL- No tax shall be imposed by section 4681 on any
ozone-depleting chemical which is used (and entirely consumed) by the
manufacturer, producer, or importer thereof in the manufacture or production
of any other chemical.
`(B) CREDIT OR REFUND- Under regulations prescribed by the Secretary, if--
`(i) a tax under this subchapter was paid with respect to any ozone-depleting
chemical, and
`(ii) such chemical was used (and entirely consumed) by any person in the
manufacture or production of any other chemical,
then an amount equal to the tax so paid shall be allowed as a credit or
refund (without interest) to such person in the same manner as if it were
an overpayment of tax imposed by section 4681.
`(3) EXPORTS-
`(A) IN GENERAL- Except as provided in subparagraph (B), rules similar to
the rules of section 4662(e) (other than section 4662(e)(2)(A)(ii)(II))
shall apply for purposes of this subchapter.
`(B) LIMIT ON BENEFIT-
`(i) IN GENERAL- The aggregate tax benefit allowable under subparagraph
(A) with respect to ozone-depleting chemicals manufactured or produced by
any person during a calendar year shall not exceed the sum of--
`(I) the amount equal to the 1986 export percentage of the aggregate
tax imposed by this subchapter with respect to ozone-depleting chemicals
manufactured or produced by such person during such calendar year (other
than chemicals with respect to which subclause (II) applies), and
`(II) the aggregate tax imposed by this subchapter with respect to any
additional production allowance granted to such person with respect to
ozone-depleting chemicals manufactured or produced by such person during
such calendar year by the Environmental Protection Agency under 40 CFR
Part 82 (as in effect on September 14, 1989).
`(ii) 1986 EXPORT PERCENTAGE- A person's 1986 export percentage is
the percentage equal to the ozone-depletion factor adjusted pounds of
ozone-depleting chemicals manufactured or produced by such person during
1986 which were exported during 1986, divided by the ozone-depletion
factor adjusted pounds of all ozone-depleting chemicals manufactured or
produced by such person during 1986. The percentage determined under the
preceding sentence shall be based on data published by the Environmental
Protection Agency.
`(e) OTHER DEFINITIONS- For purposes of this subchapter--
`(1) IMPORTER- The term `importer' means the person entering the article
for consumption, use, or warehousing.
`(2) UNITED STATES- The term `United States' has the meaning given such
term by section 4612(a)(4).
`(f) SPECIAL RULES-
`(1) FRACTIONAL PARTS OF A POUND- In the case of a fraction of a pound,
the tax imposed by this subchapter shall be the same fraction of the amount
of such tax imposed on a whole pound.
`(2) DISPOSITION OF REVENUES FROM PUERTO RICO AND THE VIRGIN ISLANDS-
The provisions of subsections (a)(3) and (b)(3) of section 7652 shall not
apply to any tax imposed by this subchapter.
`(g) PHASE-IN OF TAX ON CERTAIN SUBSTANCES-
`(1) Treatment for 1990-
`(A) HALONS- The term `ozone-depleting chemical' shall not include
halon-1211, halon-1301, or halon-2402 with respect to any sale or use
during 1990.
`(B) CHEMICALS USED IN RIGID FOAM INSULATION- No tax shall be imposed by
section 4681--
`(i) on the use during 1990 of any substance in the manufacture of rigid
foam insulation,
`(ii) on the sale during 1990 by the manufacturer, producer, or importer
of any substance--
`(I) for use by the purchaser in the manufacture of rigid foam insulation, or
`(II) for resale by the purchaser to a second purchaser for such use by
the second purchaser, or
`(iii) on the sale or use during 1990 by the importer of any rigid foam
insulation.
Clause (ii) shall apply only if the manufacturer, producer, and importer,
and the 1st and 2d purchasers (if any) meet such registration requirements
as may be prescribed by the Secretary.
`(2) TREATMENT FOR 1991, 1992, AND 1993-
`(A) HALONS- The tax imposed by section 4681 during 1991, 1992, or 1993
by reason of the treatment of halon-1211, halon-1301, and halon-2402 as
ozone-depleting chemicals shall be the applicable percentage (determined
under the following table) of the amount of such tax which would (but for
this subparagraph) be imposed.
--------------------------------------------------------------------------------------------------------------------
`In the case of: The applicable percentage is:
For sales or use during 1991 For sales or use
during 1992 For sales or use during 1993
--------------------------------------------------------------------------------------------------------------------
Halon-1211                                   7                            5
3
Halon-1301                                   2                            1
1
Halon-2402                                   4                            2
1.
--------------------------------------------------------------------------------------------------------------------
`(B) CHEMICALS USED IN RIGID FOAM INSULATION- In the case of a sale or
use during 1991, 1992, or 1993 on which no tax would have been imposed by
reason of paragraph (1)(B) had such sale or use occurred during 1990, the
tax imposed by section 4681 shall be the applicable percentage (determined
in accordance with the following table) of the amount of such tax which
would (but for this subparagraph) be imposed.
`In the case of
--The applicable
sales or use during:
--percentage is:
1991
--23
1992
--16
1993
--8.
`(3) OVERPAYMENTS WITH RESPECT TO CHEMICALS USED IN RIGID FOAM INSULATION-
If any substance on which tax was paid under this subchapter is used during
1990, 1991, 1992, or 1993 by any person in the manufacture of rigid foam
insulation, credit or refund (without interest) shall be allowed to such
person an amount equal to the excess of--
`(A) the tax paid under this subchapter on such substance, over
`(B) the tax (if any) which would be imposed by section 4681 if such
substance were used for such use by the manufacturer, producer, or importer
thereof on the date of its use by such person.
`(h) Imposition of Floor Stocks Taxes-
`(1) JANUARY 1, 1990, TAX- On any ozone-depleting chemical which on January
1, 1990, is held by any person (other than the manufacturer, producer,
or importer thereof) for sale or for use in further manufacture, there is
hereby imposed a floor stocks tax in an amount equal to the tax which would
be imposed by section 4681 on such chemical if the sale of such chemical
by the manufacturer, producer, or importer thereof had occurred during 1990.
`(2) Other tax-increase dates-
`(A) IN GENERAL- If, on any tax-increase date, any ozone-depleting
chemical is held by any person (other than the manufacturer, producer,
or importer thereof) for sale or for use in further manufacture, there is
hereby imposed a floor stocks tax.
`(B) AMOUNT OF TAX- The amount of the tax imposed by subparagraph (A)
shall be the excess (if any) of--
`(i) the tax which would be imposed under section 4681 on such substance
if the sale of such chemical by the manufacturer, producer, or importer
thereof had occurred on the tax-increase date, over
`(ii) the prior tax (if any) imposed by this subchapter on such substance.
`(C) TAX-INCREASE DATE- For purposes of this paragraph, the term
`tax-increase date' means January 1 of 1991, 1992, 1993, and 1994.
`(3) DUE DATE- The taxes imposed by this subsection on January 1 of any
calendar year shall be paid on or before April 1 of such year.
`(4) APPLICATION OF OTHER LAWS- All other provisions of law, including
penalties, applicable with respect to the taxes imposed by section 4681
shall apply to the floor stocks taxes imposed by this subsection.'
(b) CLERICAL AMENDMENT- The table of subchapters for chapter 38 is amended
by adding at the end thereof the following new item:
`SUBCHAPTER D. Ozone-depleting chemicals, etc.'
(c) Effective Date-
(1) IN GENERAL- The amendments made by this section shall take effect on
January 1, 1990.
(2) NO DEPOSITS REQUIRED BEFORE APRIL 1, 1990- No deposit of any tax
imposed by subchapter D of chapter 38 of the Internal Revenue Code of 1986,
as added by this section, shall be required to be made before April 1, 1990.

39d6cb06a2290278e6a4d24878b9318f46c7e9c47d796aff3e148b32d7be7443

Omnibus Budget Reconciliation Act of 1989

Other Sections

TITLE I

TITLE II

TITLE III

TITLE IV

TITLE V

TITLE VI

TITLE VII

TITLE VIII

TITLE IX

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