SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Aviation Disaster Family Assistance
Act of 1996''.

SEC. 2. ASSISTANCE BY NATIONAL TRANSPORTATION SAFETY BOARD TO FAMILIES
              OF PASSENGERS INVOLVED IN AIRCRAFT ACCIDENTS.

    (a) Authority To Provide Assistance.--
            (1) In general.--Subchapter III of chapter 11 of title 49,
        United States Code, is amended by adding at the end the
        following:
``Sec. 1136. Assistance to families of passengers involved in aircraft
              accidents
    ``(a) In General.--As soon as practicable after being notified of
an aircraft accident within the United States involving an air carrier
or foreign air carrier and resulting in a major loss of life, the
Chairman of the National Transportation Safety Board shall--
            ``(1) designate and publicize the name and phone number of
        a director of family support services who shall be an employee
        of the Board and shall be responsible for acting as a point of
        contact within the Federal Government for the families of
        passengers involved in the accident and a liaison between the
        air carrier or foreign air carrier and the families; and
            ``(2) designate an independent nonprofit organization, with
        experience in disasters and posttrauma communication with
        families, which shall have primary responsibility for
        coordinating the emotional care and support of the families of
        passengers involved in the accident.
    ``(b) Responsibilities of the Board.--The Board shall have primary
Federal responsibility for facilitating the recovery and identification
of fatally-injured passengers involved in an accident described in
subsection (a).
    ``(c) Responsibilities of Designated Organization.--The
organization designated for an accident under subsection (a)(2) shall
have the following responsibilities with respect to the families of
passengers involved in the accident:
            ``(1) To provide mental health and counseling services, in
        coordination with the disaster response team of the air carrier
        or foreign air carrier involved.
            ``(2) To take such actions as may be necessary to provide
        an environment in which the families may grieve in private.
            ``(3) To meet with the families who have traveled to the
        location of the accident, to contact the families unable to
        travel to such location, and to contact all affected families
        periodically thereafter until such time as the organization, in
        consultation with the director of family support services
        designated for the accident under subsection (a)(1), determines
        that further assistance is no longer needed.
            ``(4) To communicate with the families as to the roles of
        the organization, government agencies, and the air carrier or
        foreign air carrier involved with respect to the accident and
        the post-accident activities.
            ``(5) To arrange a suitable memorial service, in
        consultation with the families.
    ``(d) Passenger Lists.--
            ``(1) Requests for passenger lists.--
                    ``(A) Requests by director of family support
                services.--It shall be the responsibility of the
                director of family support services designated for an
                accident under subsection (a)(1) to request, as soon as
                practicable, from the air carrier or foreign air
                carrier involved in the accident a list, which is based
                on the best available information at the time of the
                request, of the names of the passengers that were
                aboard the aircraft involved in the accident.
                    ``(B) Requests by designated organization.--The
                organization designated for an accident under
                subsection (a)(2) may request from the air carrier or
                foreign air carrier involved in the accident a list
                described in subparagraph (A).
            ``(2) Use of information.--The director of family support
        services and the organization may not release to any person
        information on a list obtained under paragraph (1) but may
        provide information on the list about a passenger to the family
        of the passenger to the extent that the director of family
        support services or the organization considers appropriate.
    ``(e) Continuing Responsibilities of the Board.--In the course of
its investigation of an accident described in subsection (a), the Board
shall, to the maximum extent practicable, ensure that the families of
passengers involved in the accident--
            ``(1) are briefed, prior to any public briefing, about the
        accident, its causes, and any other findings from the
        investigation; and
            ``(2) are individually informed of and allowed to attend
        any public hearings and meetings of the Board about the
        accident.
    ``(f) Use of Air Carrier Resources.--To the extent practicable, the
organization designated for an accident under subsection (a)(2) shall
coordinate its activities with the air carrier or foreign air carrier
involved in the accident so that the resources of the carrier can be
used to the greatest extent possible to carry out the organization's
responsibilities under this section.
    ``(g) Prohibited Actions.--
            ``(1) Actions to impede the board.--No person (including a
        State or political subdivision) may impede the ability of the
        Board (including the director of family support services
        designated for an accident under subsection (a)(1)), or an
        organization designated for an accident under subsection
        (a)(2), to carry out its responsibilities under this section or
        the ability of the families of passengers involved in the
        accident to have contact with one another.
            ``(2) Unsolicited communications.--In the event of an
        accident involving an air carrier providing interstate or
        foreign air transportation, no unsolicited communication
        concerning a potential action for personal injury or wrongful
        death may be made by an attorney, representative of an
        attorney, insurance company, or air carrier litigation
        representative to an individual injured in the accident, or to
        a relative of an individual involved in the accident, before
        the 30th day following the date of the accident.
    ``(h) Definitions.--In this section, the following definitions
apply:
            ``(1) Aircraft accident.--The term `aircraft accident'
        means any aviation disaster regardless of its cause or
        suspected cause.
            ``(2) Passenger.--The term `passenger' includes an employee
        of an air carrier aboard an aircraft.''.
            (2) Conforming amendment.--The table of sections for
        chapter 11 of such title is amended by inserting after the item
        relating to section 1135 the following:

``1136. Assistance to families of passengers involved in aircraft
                            accidents.''.
    (b) Penalties.--Section 1155(a)(1) of such title is amended--
            (1) by striking ``or 1134(b) or (f)(1)'' and inserting ``,
        section 1134(b), section 1134(f)(1), or section 1136(g)''; and
            (2) by striking ``either of'' and inserting ``any of''.

SEC. 3. AIR CARRIER PLANS TO ADDRESS NEEDS OF FAMILIES OF PASSENGERS
              INVOLVED IN AIRCRAFT ACCIDENTS.

    (a) In General.--Chapter 411 of title 49, United States Code, is
amended by adding at the end the following:
``Sec. 41113. Plans to address needs of families of passengers involved
              in aircraft accidents
    ``(a) Submission of Plans.--Not later than 6 months after the date
of the enactment of this section, each air carrier holding a
certificate of public convenience and necessity under section 41102 of
this title shall submit to the Secretary and the Chairman of the
National Transportation Safety Board a plan for addressing the needs of
the families of passengers involved in any aircraft accident involving
an aircraft of the air carrier and resulting in a major loss of life.
    ``(b) Contents of Plans.--A plan to be submitted by an air carrier
under subsection (a) shall include, at a minimum, the following:
            ``(1) A plan for publicizing a reliable, toll-free
        telephone number, and for providing staff, to handle calls from
        the families of the passengers.
            ``(2) A process for notifying the families of the
        passengers, before providing any public notice of the names of
        the passengers, either by utilizing the services of the
        organization designated for the accident under section
        1136(a)(2) of this title or the services of other suitably
        trained individuals.
            ``(3) An assurance that the notice described in paragraph
        (2) will be provided to the family of a passenger as soon as
        the air carrier has verified that the passenger was aboard the
        aircraft (whether or not the names of all of the passengers
        have been verified) and, to the extent practicable, in person.
            ``(4) An assurance that the air carrier will provide to the
        director of family support services designated for the accident
        under section 1136(a)(1) of this title, and to the organization
        designated for the accident under section 1136(a)(2) of this
        title, immediately upon request, a list (which is based on the
        best available information at the time of the request) of the
        names of the passengers aboard the aircraft (whether or not
        such names have been verified), and will periodically update
        the list.
            ``(5) An assurance that the family of each passenger will
        be consulted about the disposition of all remains and personal
        effects of the passenger.
            ``(6) An assurance that if requested by the family of a
        passenger, any possession of the passenger within the control
        of the air carrier (regardless of its condition) will be
        returned to the family unless the possession is needed for the
        accident investigation or any criminal investigation.
            ``(7) An assurance that any unclaimed possession of a
        passenger within the control of the air carrier will be
        retained by the air carrier for at least 18 months.
            ``(8) An assurance that the family of each passenger will
        be consulted about construction by the air carrier of any
        monument to the passengers, including any inscription on the
        monument.
            ``(9) An assurance that the treatment of the families of
        nonrevenue passengers (and any other victim of the accident)
        will be the same as the treatment of the families of revenue
        passengers.
            ``(10) An assurance that the air carrier will work with any
        organization designated under section 1136(a)(2) of this title
        on an ongoing basis to ensure that families of passengers
        receive an appropriate level of services and assistance
        following each accident.
            ``(11) An assurance that the air carrier will provide
        reasonable compensation to any organization designated under
        section 1136(a)(2) of this title for services provided by the
        organization.
            ``(12) An assurance that the air carrier will assist the
        family of a passenger in traveling to the location of the
        accident and provide for the physical care of the family while
        the family is staying at such location.
            ``(13) An assurance that the air carrier will commit
        sufficient resources to carry out the plan.
    ``(c) Certificate Requirement.--After the date that is 6 months
after the date of the enactment of this section, the Secretary may not
approve an application for a certificate of public convenience and
necessity under section 41102 of this title unless the applicant has
included as part of such application a plan that meets the requirements
of subsection (b).
    ``(d) Limitation on Liability.--An air carrier shall not be liable
for damages in any action brought in a Federal or State court arising
out of the performance of the air carrier in preparing or providing a
passenger list pursuant to a plan submitted by the air carrier under
subsection (b), unless such liability was caused by conduct of the air
carrier which was grossly negligent or which constituted intentional
misconduct.
    ``(e) Aircraft Accident and Passenger Defined.--In this section,
the terms `aircraft accident' and `passenger' have the meanings such
terms have in section 1136 of this title.''.
    (b) Conforming Amendment.--The table of sections for such chapter
is amended by adding at the end the following:

``41113. Plans to address needs of families of passengers involved in
                            aircraft accidents.''.

SEC. 4. ESTABLISHMENT OF TASK FORCE.

    (a) Establishment.--The Secretary of Transportation, in cooperation
with the National Transportation Safety Board, the Federal Emergency
Management Agency, the American Red Cross, air carriers, and families
which have been involved in aircraft accidents shall establish a task
force consisting of representatives of such entities and families,
representatives of air carrier employees, and representatives of such
other entities as the Secretary considers appropriate.
    (b) Model Plan and Recommendations.--The task force established
pursuant to subsection (a) shall develop--
            (1) a model plan to assist air carriers in responding to
        aircraft accidents;
            (2) recommendations on methods to ensure that attorneys and
        representatives of media organizations do not intrude on the
        privacy of families of passengers involved in an aircraft
        accident;
            (3) recommendations on methods to ensure that the families
        of passengers involved in an aircraft accident who are not
        citizens of the United States receive appropriate assistance;
            (4) recommendations on methods to ensure that State mental
        health licensing laws do not act to prevent out-of-state mental
        health workers from working at the site of an aircraft accident
        or other related sites;
            (5) recommendations on the extent to which military experts
        and facilities can be used to aid in the identification of the
        remains of passengers involved in an aircraft accident; and
            (6) recommendations on methods to improve the timeliness of
        the notification provided by air carriers to the families of
        passengers involved in an aircraft accident, including--
                    (A) an analysis of the steps that air carriers
                would have to take to ensure that an accurate list of
                passengers on board the aircraft would be available
                within 1 hour of the accident and an analysis of such
                steps to ensure that such list would be available
                within 3 hours of the accident;
                    (B) an analysis of the added costs to air carriers
                and travel agents that would result if air carriers
                were required to take the steps described in
                subparagraph (A); and
                    (C) an analysis of any inconvenience to passengers,
                including flight delays, that would result if air
                carriers were required to take the steps described in
                subparagraph (A).
    (c) Report.--Not later than 1 year after the date of the enactment
of this Act, the Secretary shall transmit to Congress a report
containing the model plan and recommendations developed by the task
force under subsection (b).

SEC. 5. LIMITATION ON STATUTORY CONSTRUCTION.

    Nothing in this Act or any amendment made by this Act may be
construed as limiting the actions that an air carrier may take, or the
obligations that an air carrier may have, in providing assistance to
the families of passengers involved in an aircraft accident.

            Passed the House of Representatives September 18, 1996.

            Attest:

                                                ROBIN H. CARLE,

                                                                 Clerk.

Summary: Aviation Disaster Family Assistance Act of 1996 - Amends Federal transportation law to require the Chairman of the National Transportation Safety Board (NTSB), after an accident involving a domestic or foreign aircraft that results in a major loss of life of passengers, to: (1) designate and publicize the name and phone number of a director of family support services to be a Government liaison between the air carrier or foreign air carrier and the families of the passengers. And (2) designate an experienced, independent nonprofit organization which shall have primary responsibility for coordinating the care and support of the passengers' families. Declares that the NTSB shall have primary Federal responsibility for facilitating the recovery and identification of fatally-injured passengers involved in an aircraft accident. Prohibits: (1) any person from impeding the ability of the NTSB, or the designated organization, from carrying out its responsibilities under this Act. And (2) any unsolicited communications from being made to the families concerning potential action for personal injury or wrongful death before the 30th day following the accident. Sets forth penalties for violations of this Act. Requires each air carrier to submit to the Secretary of Transportation and the Chairman of NTSB a plan for addressing the needs of the passengers' families. Specifies minimum requirements for such a plan. Prohibits the Secretary from approving an air carrier's application for a certificate of public convenience and necessity unless it includes such plan in its application. Requires the Secretary to establish a task force to develop: (1) a model plan to assist air carriers in responding to aircraft accidents. (2) recommendations to the Congress on methods to ensure that attorneys and the media do not intrude on the privacy of the passengers' families. And (3) recommendations on methods with respect to assistance to non-citizens, out-of-state mental health workers at the accident site, the use of military experts and facilities in passenger remains identification, and timeliness of airline notification to families of victims.


SECTION 1. QUALIFIED STATE TUITION PROGRAMS.

    (a) In General.--Subchapter F of chapter 1 of the Internal Revenue
Code of 1986 (relating to exempt organizations) is amended by adding at
the end the following new part:

             ``PART VIII--QUALIFIED STATE TUITION PROGRAMS

                              ``Sec. 529. Qualified State tuition
                                        programs.

``SEC. 529. QUALIFIED STATE TUITION PROGRAMS.

    ``(a) General Rule.--A qualified State tuition program shall be
exempt from taxation under this subtitle. Notwithstanding the preceding
sentence, such program shall be subject to the taxes imposed by section
511 (relating to imposition of tax on unrelated business income of
charitable organizations).
    ``(b) Qualified State Tuition Program.--For purposes of this
section--
            ``(1) In general.--The term `qualified State tuition
        program' means a program established and maintained by a State
        or agency or instrumentality thereof--
                    ``(A) under which a person--
                            ``(i) may purchase tuition credits or
                        certificates on behalf of a designated
                        beneficiary which entitle the beneficiary to
                        the waiver or payment of qualified higher
                        education expenses of the beneficiary, or
                            ``(ii) may make contributions to an account
                        which is established for the sole purpose of
                        meeting the qualified higher education expenses
                        of the designated beneficiary of the account,
                        and
                    ``(B) which meets the other requirements of this
                subsection.
            ``(2) Cash contributions.--A program shall not be treated
        as a qualified State tuition program unless it provides that
        purchases or contributions may only be made in cash.
            ``(3) Refunds.--A program shall not be treated as a
        qualified State tuition program unless it imposes a more than
        de minimis penalty on any refund of earnings from the account
        which are not--
                    ``(A) used for qualified higher education expenses
                of the designated beneficiary,
                    ``(B) made on account of the death or disability of
                the designated beneficiary, or
                    ``(C) made on account of a scholarship received by
                the designated beneficiary to the extent the amount of
                the refund does not exceed the amount of the
                scholarship used for qualified higher education
                expenses.
            ``(4) Separate accounting.--A program shall not be treated
        as a qualified State tuition program unless it provides
        separate accounting for each designated beneficiary.
            ``(5) No investment direction.--A program shall not be
        treated as a qualified State tuition program unless it provides
        that any contributor to, or designated beneficiary under, such
        program may not direct the investment of any contributions to
        the program (or any earnings thereon).
            ``(6) No pledging of interest as security.--A program shall
        not be treated as a qualified State tuition program if it
        allows any interest in the program or any portion thereof to be
        used as security for a loan.
    ``(c) Tax Treatment of Designated Beneficiaries and Contributors.--
            ``(1) In general.--Except as otherwise provided in this
        subsection, no amount shall be includible in gross income of--
                    ``(A) a designated beneficiary under a qualified
                State tuition program, or
                    ``(B) a contributor to such program on behalf of a
                designated beneficiary,
        with respect to any distribution from, or earnings under, such
        program.
            ``(2) Distributions.--
                    ``(A) In general.--Any distribution under a
                qualified State tuition program shall be includible in
                the gross income of the distributee in the same manner
                as provided under section 72 to the extent not excluded
                from gross income under any other provision of this
                chapter.
                    ``(B) In-kind distributions.--The furnishing of
                education to a designated beneficiary under a qualified
                State tuition program shall be treated as a
                distribution to the beneficiary.
                    ``(C) Change in beneficiaries.--
                            ``(i) Rollovers.--Subparagraph (A) shall
                        not apply to that portion of any distribution
                        which, within 60 days of such distribution, is
                        transferred to the credit of another designated
                        beneficiary under a qualified State tuition
                        program who is a member of the same family as
                        the designated beneficiary with respect to
                        which the distribution was made.
                            ``(ii) Change in designated
                        beneficiaries.--Any change in the designated
                        beneficiary of an interest in a qualified State
                        tuition program shall not be treated as a
                        distribution for purposes of subparagraph (A)
                        if the new beneficiary is a member of the same
                        family as the old beneficiary.
                    ``(D) Operating rules.--For purposes of applying
                section 72--
                            ``(i) all qualified State tuition programs
                        of which an individual is a designated
                        beneficiary shall be treated as one program,
                            ``(ii) all distributions during a taxable
                        year shall be treated as one distribution, and
                            ``(iii) the value of the contract, income
                        on the contract, and investment in the contract
                        shall be computed as of the close of the
                        calendar year in which the taxable year begins.
            ``(3) Gift tax treatment.--Any contribution on behalf of a
        designated beneficiary to a qualified State tuition program
        shall be treated as a qualified transfer for purposes of
        section 2503(e).
    ``(d) Reporting Requirements.--
            ``(1) In general.--If--
                    ``(A) a designated beneficiary is furnished
                education under a qualified State tuition program
                during any calendar year, or
                    ``(B) there is a distribution to any individual
                with respect to an interest in such program during any
                calendar year,
        each officer or employee having control of the qualified State
        tuition program or their designee shall make such reports as
        the Secretary may require regarding such education or
        distribution to the Secretary and to the designated beneficiary
        or the individual to whom the distribution was made. Any such
        report shall include such information as the Secretary may
        prescribe.
            ``(2) Timing of reports.--Any report required by this
        subsection--
                    ``(A) shall be filed at such time and in such
                matter as the Secretary prescribes, and
                    ``(B) shall be furnished to individuals not later
                than January 31 of the calendar year following the
                calendar year to which such report relates.
    ``(e) Other Definitions and Special Rules.--For purposes of this
section--
            ``(1) Designated beneficiary.--The term `designated
        beneficiary' means--
                    ``(A) the individual designated at the commencement
                of participation in the qualified State tuition program
                as the beneficiary of amounts paid (or to be paid) to
                the program,
                    ``(B) in the case of a change in beneficiaries
                described in subsection (c)(2)(C)(ii), the individual
                who is the new beneficiary, and
                    ``(C) in the case of an interest in a qualified
                State tuition program purchased by a State or local
                government or an organization described in section
                501(c)(3) and exempt from taxation under section 501(a)
                as part of a scholarship program operated by such
                government or organization, the individual receiving
                such interest as a scholarship.
            ``(2) Member of family.--The term `member of family' has
        the same meaning given such term as section 2032A(e)(2).
            ``(3) Qualified higher education expenses.--The term
        `qualified higher education expenses' means tuition, fees,
        books, supplies, and equipment required for the enrollment or
        attendance of a designated beneficiary at an eligible education
        institution (as defined in section 135(c)(3)).
            ``(4) Application of section 514.--An interest in a
        qualified State tuition program shall not be treated as debt
        for purposes of section 514.''.
    (b) Effective Dates.--
            (1) In general.--The amendments made by this section shall
        apply to taxable years ending after the date of the enactment
        of this Act.
            (2) Transition rule.--If--
                    (A) a State or agency or instrumentality thereof
                maintains, on the date of the enactment of this Act, a
                program under which persons may purchase tuition
                credits or certificates on behalf of, or make
                contributions for education expenses of, a designated
                beneficiary, and
                    (B) such program meets the requirements of a
                qualified State tuition program before the later of--
                            (i) the date which is 1 year after such
                        date of enactment, or
                            (ii) the first day of the first calendar
                        quarter after the close of the first regular
                        session of the State legislature that begins
                        after such date of enactment,
                the amendments made by this section shall apply to
                contributions (and earnings allocable thereto) made
                before the later of such dates without regard to
                whether any requirements of such amendments are met
                with respect to such contributions and earnings. For
                purposes of subparagraph (B)(ii), if a State has a 2-
                year legislative session, each year of such session
                shall be deemed to be a separate regular session of the
                State legislature.

Summary: Amends the Internal Revenue Code to exempt from taxation a qualified State tuition program. Defines such a program.

To amend the Internal Revenue Code of 1986 to provide an exemption from income taxation for qualified State tuition programs.


SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Airport Streamlining Approval
Process Act of 2002''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) airports play a major role in interstate and foreign
        commerce;
            (2) congestion and delays at our Nation's major airports
        have a significant negative impact on our Nation's economy;
            (3) airport capacity enhancement projects at congested
        airports are a national priority and should be constructed on
        an expedited basis;
            (4) airport capacity enhancement projects must include an
        environmental review process that provides local citizenry an
        opportunity for consideration of and appropriate action to
        address environmental concerns; and
            (5) the Federal Aviation Administration, airport
        authorities, communities, and other Federal, State, and local
        government agencies must work together to develop a plan, set
        and honor milestones and deadlines, and work to protect the
        environment while sustaining the economic vitality that will
        result from the continued growth of aviation.

SEC. 3. PROMOTION OF NEW RUNWAYS.

    Section 40104 of title 49, United States Code, is amended by adding
at the end the following:
    ``(c) Airport Capacity Enhancement Projects at Congested
Airports.--In carrying out subsection (a), the Administrator shall take
action to encourage the construction of airport capacity enhancement
projects at congested airports as those terms are defined in section
47179.''.

SEC. 4. AIRPORT PROJECT STREAMLINING.

    (a) In General.--Chapter 471 of title 49, United States Code, is
amended by inserting after section 47153 the following:

             ``SUBCHAPTER III--AIRPORT PROJECT STREAMLINING

``Sec. 47171. DOT as lead agency
    ``(a) Airport Project Review Process.--The Secretary of
Transportation shall develop and implement a coordinated review process
for airport capacity enhancement projects at congested airports.
    ``(b) Coordinated Reviews.--The coordinated review process under
this section shall provide that all environmental reviews, analyses,
opinions, permits, licenses, and approvals that must be issued or made
by a Federal agency or airport sponsor for an airport capacity
enhancement project at a congested airport will be conducted
concurrently, to the maximum extent practicable, and completed within a
time period established by the Secretary, in cooperation with the
agencies identified under subsection (c) with respect to the project.
    ``(c) Identification of Jurisdictional Agencies.--With respect to
each airport capacity enhancement project at a congested airport, the
Secretary shall identify, as soon as practicable, all Federal and State
agencies that may have jurisdiction over environmental-related matters
that may be affected by the project or may be required by law to
conduct an environmental-related review or analysis of the project or
determine whether to issue an environmental-related permit, license, or
approval for the project.
    ``(d) State Authority.--If a coordinated review process is being
implemented under this section by the Secretary with respect to a
project at an airport within the boundaries of a State, the State,
consistent with State law, may choose to participate in such process
and provide that all State agencies that have jurisdiction over
environmental-related matters that may be affected by the project or
may be required by law to conduct an environmental-related review or
analysis of the project or determine whether to issue an environmental-
related permit, license, or approval for the project, be subject to the
process.
    ``(e) Memorandum of Understanding.--The coordinated review process
developed under this section may be incorporated into a memorandum of
understanding for a project between the Secretary and the heads of
other Federal and State agencies identified under subsection (c) with
respect to the project and the airport sponsor.
    ``(f) Effect of Failure To Meet Deadline.--
            ``(1) Notification of congress and ceq.--If the Secretary
        determines that a Federal agency, State agency, or airport
        sponsor that is participating in a coordinated review process
        under this section with respect to a project has not met a
        deadline established under subsection (b) for the project, the
        Secretary shall notify, within 30 days of the date of such
        determination, the Committee on Transportation and
        Infrastructure of the House of Representatives, the Committee
        on Commerce, Science, and Transportation of the Senate, the
        Council on Environmental Quality, and the agency or sponsor
        involved about the failure to meet the deadline.
            ``(2) Agency report.--Not later than 30 days after date of
        receipt of a notice under paragraph (1), the agency or sponsor
        involved shall submit a report to the Secretary, the Committee
        on Transportation and Infrastructure of the House of
        Representatives, the Committee on Commerce, Science, and
        Transportation of the Senate, and the Council on Environmental
        Quality explaining why the agency or sponsor did not meet the
        deadline and what actions it intends to take to complete or
        issue the required review, analysis, opinion, license, or
        approval.
    ``(g) Purpose and Need.--For any environmental review, analysis,
opinion, permit, license, or approval that must be issued or made by a
Federal or State agency that is participating in a coordinated review
process under this section with respect to an airport capacity
enhancement project at a congested airport and that requires an
analysis of purpose and need for the project, the agency,
notwithstanding any other provision of law, shall be bound by the
project purpose and need as defined by the Secretary.
    ``(h) Alternatives Analysis.--The Secretary shall determine the
reasonable alternatives to an airport capacity enhancement project at a
congested airport. Any other Federal or State agency that is
participating in a coordinated review process under this section with
respect to the project shall consider only those alternatives to the
project that the Secretary has determined are reasonable.
    ``(i) Solicitation and Consideration of Comments.--In applying
subsections (g) and (h), the Secretary shall solicit and consider
comments from interested persons and governmental entities.
``Sec. 47172. Categorical exclusions
    ``Not later than 120 days after the date of enactment of this
section, the Secretary of Transportation shall develop and publish a
list of categorical exclusions from the requirement that an
environmental assessment or an environmental impact statement be
prepared under the National Environmental Policy Act of 1969 (42 U.S.C.
4321 et seq.) for projects at airports.
``Sec. 47173. Access restrictions to ease construction
    ``At the request of an airport sponsor for a congested airport, the
Secretary of Transportation may approve a restriction on use of a
runway to be constructed at the airport to minimize potentially
significant adverse noise impacts from the runway only if the Secretary
determines that imposition of the restriction--
            ``(1) is necessary to mitigate those impacts and expedite
        construction of the runway;
            ``(2) is the most appropriate and a cost-effective measure
        to mitigate those impacts, taking into consideration any
        environmental tradeoffs associated with the restriction; and
            ``(3) would not adversely affect service to small
        communities, adversely affect safety or efficiency of the
        national airspace system, unjustly discriminate against any
        class of user of the airport, or impose an undue burden on
        interstate or foreign commerce.
``Sec. 47174. Airport revenue to pay for mitigation
    ``(a) In General.--Notwithstanding section 47107(b), section 47133,
or any other provision of this title, the Secretary of Transportation
may allow an airport sponsor carrying out an airport capacity
enhancement project at a congested airport to make payments, out of
revenues generated at the airport (including local taxes on aviation
fuel), for measures to mitigate the environmental impacts of the
project if the Secretary finds that--
            ``(1) the mitigation measures are included as part of, or
        are consistent with, the preferred alternative for the project
        in the documentation prepared pursuant to the National
        Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.);
            ``(2) the use of such revenues will provide a significant
        incentive for, or remove an impediment to, approval of the
        project by a State or local government; and
            ``(3) the cost of the mitigation measures is reasonable in
        relation to the mitigation that will be achieved.
    ``(b) Mitigation of Aircraft Noise.--Mitigation measures described
in subsection (a) may include the insulation of residential buildings
and buildings used primarily for educational or medical purposes to
mitigate the effects of aircraft noise and the improvement of such
buildings as required for the insulation of the buildings under local
building codes.
``Sec. 47175. Airport funding of FAA staff
    ``(a) Acceptance of Sponsor-Provided Funds.--Notwithstanding any
other provision of law, the Administrator of the Federal Aviation
Administration may accept funds from an airport sponsor, including
funds provided to the sponsor under section 47114(c), to hire
additional staff or obtain the services of consultants in order to
facilitate the timely processing, review, and completion of
environmental activities associated with an airport development
project.
    ``(b) Administrative Provision.--Instead of payment from an airport
sponsor from funds apportioned to the sponsor under section 47114, the
Administrator, with agreement of the sponsor, may transfer funds that
would otherwise be apportioned to the sponsor under section 47114 to
the account used by the Administrator for activities described in
subsection (a).
    ``(c) Receipts Credited as Offsetting Collections.--Notwithstanding
section 3302 of title 31, any funds accepted under this section, except
funds transferred pursuant to subsection (b)--
            ``(1) shall be credited as offsetting collections to the
        account that finances the activities and services for which the
        funds are accepted;
            ``(2) shall be available for expenditure only to pay the
        costs of activities and services for which the funds are
        accepted; and
            ``(3) shall remain available until expended.
    ``(d) Maintenance of Effort.--No funds may be accepted pursuant to
subsection (a), or transferred pursuant to subsection (b), in any
fiscal year in which the Federal Aviation Administration does not
allocate at least the amount it expended in fiscal year 2002, excluding
amounts accepted pursuant to section 337 of the Department of
Transportation and Related Agencies Appropriations Act, 2002 (115 Stat.
862), for the activities described in subsection (a).
``Sec. 47176. Authorization of appropriations
    ``In addition to the amounts authorized to be appropriated under
section 106(k), there is authorized to be appropriated to the Secretary
of Transportation, out of the Airport and Airway Trust Fund established
under section 9502 of the Internal Revenue Code of 1986 (26 U.S.C.
9502), $2,100,000 for fiscal year 2003 and $4,200,000 for each fiscal
year thereafter to facilitate the timely processing, review, and
completion of environmental activities associated with airport capacity
enhancement projects at congested airports.
``Sec. 47177. Judicial review
    ``(a) Filing and Venue.--A person disclosing a substantial interest
in an order issued by the Secretary of Transportation or the head of
any other Federal agency under this part or a person or agency relying
on any determination made under this part may apply for review of the
order by filing a petition for review in the United States Court of
Appeals for the District of Columbia Circuit or in the court of appeals
of the United States for the circuit in which the person resides or has
its principal place of business. The petition must be filed not later
than 60 days after the order is issued. The court may allow the
petition to be filed after the 60th day only if there are reasonable
grounds for not filing by the 60th day.
    ``(b) Judicial Procedures.--When a petition is filed under
subsection (a) of this section, the clerk of the court immediately
shall send a copy of the petition to the Secretary or the head of any
other Federal agency involved. The Secretary or the head of such other
agency shall file with the court a record of any proceeding in which
the order was issued.
    ``(c) Authority of Court.--When the petition is sent to the
Secretary or the head of any other Federal agency involved, the court
has exclusive jurisdiction to affirm, amend, modify, or set aside any
part of the order and may order the Secretary or the head of such other
agency to conduct further proceedings. After reasonable notice to the
Secretary or the head of such other agency, the court may grant interim
relief by staying the order or taking other appropriate action when
good cause for its action exists. Findings of fact by the Secretary or
the head of such other agency are conclusive if supported by
substantial evidence.
    ``(d) Requirement for Prior Objection.--In reviewing an order of
the Secretary or the head of any other Federal agency under this
section, the court may consider an objection to the action of the
Secretary or the head of such other agency only if the objection was
made in the proceeding conducted by the Secretary or the head of such
other agency or if there was a reasonable ground for not making the
objection in the proceeding.
    ``(e) Supreme Court Review.--A decision by a court under this
section may be reviewed only by the Supreme Court under section 1254 of
title 28.
    ``(f) Order Defined.--In this section, the term `order' includes a
record of decision or a finding of no significant impact.
``Sec. 47178. Definitions
    ``In this subchapter, the following definitions apply:
            ``(1) Airport sponsor.--The term `airport sponsor' has the
        meaning given the term `sponsor' under section 47102.
            ``(2) Congested airport.--The term `congested airport'
        means an airport that accounted for at least 1 percent of all
        delayed aircraft operations in the United States in the most
        recent year for which such data is available and an airport
        listed in table 1 of the Federal Aviation Administration's
        Airport Capacity Benchmark Report 2001.
            ``(3) Airport capacity enhancement project.--The term
        `airport capacity enhancement project' means--
                    ``(A) a project for construction or extension of a
                runway, including any land acquisition, taxiway, or
                safety area associated with the runway or runway
                extension; and
                    ``(B) such other airport development projects as
                the Secretary may designate as facilitating a reduction
                in air traffic congestion and delays.''.
    (b) Conforming Amendment.--The analysis for chapter 471 of such
title is amended by adding at the end the following:

             ``SUBCHAPTER III--AIRPORT PROJECT STREAMLINING

``47171. DOT as lead agency.
``47172. Categorical exclusions.
``47173. Access restrictions to ease construction.
``47174. Airport revenue to pay for mitigation.
``47175. Airport funding of FAA staff.
``47176. Authorization of appropriations.
``47177. Judicial review.
``47178. Definitions.''.

SEC. 5. GOVERNOR'S CERTIFICATE.

    Section 47106(c) of title 49, United States Code, is amended--
            (1) in paragraph (1)--
                    (A) by inserting ``and'' after the semicolon at the
                end of subparagraph (A)(ii);
                    (B) by striking subparagraph (B); and
                    (C) by redesignating subparagraph (C) as
                subparagraph (B);
            (2) in paragraph (2)(A) by striking ``stage 2'' and
        inserting ``stage 3'';
            (3) by striking paragraph (4); and
            (4) by redesignating paragraph (5) as paragraph (4).

SEC. 6. CONSTRUCTION OF CERTAIN AIRPORT CAPACITY PROJECTS.

    Section 47504(c)(2) of title 49, United States Code, is amended--
            (1) by striking ``and'' at the end of subparagraph (C);
            (2) by striking the period at the end of subparagraph (D)
        and inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(E) to an airport operator of a congested airport
                (as defined in section 47178) and a unit of local
                government referred to in paragraph (1)(A) or (1)(B) of
                this subsection to carry out a project to mitigate
                noise in the area surrounding the airport if the
                project is included as a commitment in a record of
                decision of the Federal Aviation Administration for an
                airport capacity enhancement project (as defined in
                section 47178) even if that airport has not met the
                requirements of part 150 of title 14, Code of Federal
                Regulations.''.

SEC. 7. LIMITATIONS.

    Nothing in this Act, including any amendment made by this Act,
shall preempt or interfere with--
            (1) any practice of seeking public comment; and
            (2) any power, jurisdiction, or authority of a State agency
        or an airport sponsor has with respect to carrying out an
        airport capacity enhancement project.

            Passed the House of Representatives July 9, 2002.

            Attest:

                                                 JEFF TRANDAHL,

                                                                 Clerk.

                            By Martha C. Morrison,

                                                          Deputy Clerk.

Summary: Airport Streamlining Approval Process Act of 2002 - Amends Federal transportation law to direct the Administrator of the Federal Aviation Administration (FAA) to take action to encourage the construction of airport capacity enhancement projects at congested airports. Directs the Secretary of Transportation to develop and implement a coordinated review process for such projects, which shall provide that all environmental reviews, analyses, opinions, permits, licenses, and approvals that must be issued or made by a Federal agency or airport sponsor for such a project will be conducted concurrently in cooperation with all Federal and State agencies with jurisdiction over environmental-related matters. Requires: (1) the Secretary determine the reasonable alternatives to an airport capacity enhancement project at a congested airport. And (2) any other participating Federal or State agency to consider only those alternatives the Secretary has determined are reasonable. Authorizes the Secretary, at the request of an airport sponsor for a congested airport, to approve a restriction on use of a runway to be constructed at the airport to minimize potentially significant adverse noise impacts from the runway only if the restriction is necessary and the most appropriate and cost-effective measure to mitigate such impacts and expedite runway construction. Authorizes the Secretary, in specified circumstances, to allow an airport sponsor carrying out such a project to make payments, out of airport revenues , for measures to mitigate the environmental impacts of the project, including aircraft noise. Permits the FAA Administrator to accept funds from an airport sponsor to hire additional staff or obtain the services of consultants in order to facilitate the timely processing, review, and completion of environmental activities associated with an airport development project. Authorizes appropriations to facilitate timely processing, review, and completion of environmental activities associated with airport capacity enhancement projects at congested airports. Permits a person disclosing a substantial interest in an order issued by the Secretary or the head of any other pertinent Federal agency to apply for judicial review of the order. Prescribes procedures and requirements for such an appeal. Repeals the requirement that the Secretary approve a project grant application only if the chief executive officer of the State in which the project will be located certifies that there is reasonable assurance that the project will be located, designed, constructed, and operated in compliance with applicable air and water quality standards. Revises the approval criteria without the requirement of an environmental impact statement for an airport development project that does not involve the location of an airport or runway, or a major runway extension, at an existing airport. Allows such a project without an environmental impact statement if completing the project would allow airport operations involving aircraft complying with the noise standards prescribed for stage 3 aircraft . Authorizes the Secretary to incur obligations to make grants to an operator of a congested airport and a specified unit of local government to carry out a project to mitigate noise in the area surrounding the airport, if the project is included as a commitment in an FFA record of decision for an airport capacity enhancement project, even if that airport has not met certain regulatory requirements.

To amend title 49, United States Code, relating to airport project streamlining, and for other purposes.


SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Department of Energy High Energy and
Nuclear Physics Authorization Act of 1994''.

SEC. 2. DEFINITIONS.

    For the purposes of this Act--
            (1) the term ``CERN'' means the European Organization for
        Nuclear Research;
            (2) the term ``construction'' means all activities
        necessary for completion of a project and its supporting
        infrastructure, and includes conventional construction and the
        research, development, design, fabrication, installation,
        testing, and preoperation of technical sytems;
            (3) the term ``conventional construction'' means the design
        and construction of civil works, facilities, and other
        infrastructure necessary to construct a project, including
        tunnels, buildings, and roads, necessary to house and support
        the technical systems, and utilities as necessary for the
        direct support of elements of a project;
            (4) the term ``Department'' means the Department of Energy;
            (5) the term ``Large Hadron Collider project'' means the
        Large Hadron Collider project at CERN; and
            (6) the term ``Secretary'' means the Secretary of Energy.

SEC. 3. AUTHORIZATION OF APPROPRIATIONS.

    (a) High Energy Physics.--There are authorized to be appropriated
to the Secretary for high energy physics activities of the Department--
            (1) $695,400,000 for fiscal year 1996;
            (2) $719,700,000 for fiscal year 1997;
            (3) $744,900,000 for fiscal year 1998; and
            (4) $713,600,000 for fiscal year 1999.
Funds authorized under paragraphs (1) through (4) may be expended for
the B-factory at the Stanford Linear Accelerator Center and the
Fermilab Main Injector. No funds are authorized for United States
participation in the planning and construction of the Large Hadron
Collider project until the Secretary certifies to the Congress that
there is an international agreement that includes the provisions
described in section 4(a).
    (b) Nuclear Physics.--There are authorized to be appropriated to
the Secretary for nuclear physics activities of the Department--
            (1) $337,100,000 for fiscal year 1996, of which not more
        than $15,000,000 shall be used for preparation for
        decontamination and decommissioning of the Los Alamos Meson
        Physics Facility;
            (2) $348,900,000 for fiscal year 1997;
            (3) $361,100,000 for fiscal year 1998; and
            (4) $373,700,000 for fiscal year 1999.
None of the funds authorized under paragraph (2), (3), or (4) are
authorized to be appropriated for the operation of the Los Alamos Meson
Physics Facility. Funds authorized under paragraphs (1) through (4) may
be expended for the Relativistic Heavy Ion Collider at Brookhaven
National Laboratory.
    (c) Limitation on Major Construction Projects.--No funds may be
expended for any high energy and nuclear physics facility construction
project of the Department, with total project expenditures projected to
be in excess of $100,000,000, unless funds are specifically authorized
for such purposes in an Act that is not an appropriations Act.

SEC. 4. THE LARGE HADRON COLLIDER PROJECT.

    (a) Negotiations.--The Secretary shall enter into negotiations with
CERN concerning United States participation in the planning and
construction of the Large Hadron Collider project, and shall seek to
ensure that any agreement incorporates provisions to protect the United
States investment in the project, including provisions for--
            (1) fair allocation of costs and benefits among project
        participants;
            (2) a limitation on the amount of United States
        contribution to project construction and subsequent operating
        costs;
            (3) a cost and schedule control system for the total
        project;
            (4) the projected cost and schedule for all component
        design, testing, and fabrication, including technical goals and
        milestones;
            (5) the projected cost and schedule for total project
        construction and operation, including technical goals and
        milestones;
            (6) reconsideration of the extent of United States
        participation if technical or operational milestones described
        in paragraphs (4) and (5) are not met, or if the project falls
        significantly behind schedule; and
            (7) conditions of access for United States and other
        scientists to the facility.
    (b) Other International Negotiations.--Nothing in this Act shall be
construed to preclude the President from entering into negotiations
with respect to international science agreements.

SEC. 5. OPERATING PLAN.

    Within 30 days after the date of the enactment of any Act
appropriating funds for the high energy or nuclear physics activities
of the Department, the Secretary shall transmit to the Committee on
Science, Space, and Technology of the House of Representatives and the
Committee on Energy and Natural Resources of the Senate a plan for the
operations of the high energy and nuclear physics activities of the
Department, as adjusted to reflect the amounts appropriated for such
purposes by such Act.

SEC. 6. LONG-RANGE PLANNING AND GOVERNANCE.

    (a) Program Governance Review.--
            (1) Requirement.--The Secretary shall contract with an
        appropriate independent organization to review the governance
        of all elements of the Department's high energy and nuclear
        physics programs. Such review shall include--
                    (A) a performance review of the effectiveness of
                the Department's management policies and procedures,
                including an evaluation of departmental staff
                allocation and the staff allocation and funding balance
                among facility operations, construction, and research
                support;
                    (B) an evaluation of the appropriateness of the
                current application of administrative, environmental,
                health, and safety regulations to the high energy and
                nuclear physics laboratories of the Department; and
                    (C) an analysis of the extent to which the
                Department's high energy and nuclear physics advisory
                groups represent the diversity of, and the full range
                of interests among, high energy and nuclear physics
                researchers.
            (2) Report to congress.--The Secretary shall submit a
        report to Congress within 9 months after the date of enactment
        of this Act detailing the results of the review required by
        this section, including recommendations for implementing the
        results and schedules for such implementation.
    (b) Long-Range Plan.--
            (1) Requirement.--The Secretary and the Director of the
        National Science Foundation shall jointly prepare, in
        consultation with the high energy physics and nuclear physics
        communities, a long-range plan for Federal high energy and
        nuclear physics programs based on current and projected program
        funding levels. The plan shall be modified every two years. The
        long-range plan shall include--
                    (A) a list of research opportunities to be pursued,
                including both ongoing and proposed activities, listed
                in order of priority;
                    (B) an analysis of the relevance of each research
                facility to the research opportunities listed under
                subparagraph (A);
                    (C) a statement of the optimal balance among
                facility operations, construction, and research support
                and the optimal balance between university and
                laboratory research programs;
                    (D) schedules for continuation, consolidation, or
                termination of each research program, and continuation,
                upgrade, transfer, or closure of each research
                facility;
                    (E) a statement by project of efforts to coordinate
                research projects with the international community to
                maximize the use of limited resources and avoid
                unproductive duplication of efforts; and
                    (F) a description of the extent to which the
                biennial plan modifications differ from previous plans
                submitted under this subsection, along with an
                explanation for such differences.
            (2) Reports to congress.--(A) The Secretary shall transmit
        a copy of the original long-range plan with the President's
        annual budget request to Congress for fiscal year 1997. The
        plan as modified shall be submitted with the President's budget
        request to Congress for each subsequent fiscal year ending in
        an odd number.
            (B) The Secretary shall transmit with the President's
        budget request to Congress each year a report demonstrating the
        consistency of the current long-range plan with the budget
        being requested for the Department's high energy and nuclear
        physics programs.
    (c) Capital Budget Account.--Each of the President's annual budget
requests to the Congress for high energy physics activities of the
Department, and for nuclear physics activities of the Department, shall
distinguish between the budget for capital expenditures, including all
ongoing and planned major construction and capital equipment items, and
other activities.

Summary: Department of Energy High Energy and Nuclear Physics Authorization Act of 1994 - Authorizes appropriations for FY 1996 through 1999 for high energy physics and nuclear physics activities of the Department of Energy (DOE). Instructs the Secretary of Energy to: (1) enter into negotiations with the European Organization for Nuclear Research (CERN) regarding US participation in the planning and construction of the Large Hadron Collider project. (2) submit an operations plan to certain congressional committees subsequent to enactment of appropriations for DOE high energy or nuclear activities. (3) contract with an independent organization to review the governance of DOE high energy and nuclear physics programs. And (4) report to the Congress on a mandated long-range plan prepared jointly with the Director of the National Science Foundation regarding Federal high energy and nuclear physics programs based on current and projected funding levels. Mandates that each of the President's annual budget requests for DOE high energy and nuclear physics activities distinguish between the budget for capital expenditures and other activities.


SECTION 1. LIMITATION ON INTEREST DEDUCTION ALLOWED CORPORATIONS.

    (a) In General.--Section 163 of the Internal Revenue Code of 1986
(relating to deduction for interest) is amended by redesignating
subsection (k) as subsection (l) and by inserting after subsection (j)
the following new subsection:
    ``(k) Limitation on Corporate Interest Payments.--
            ``(1) In general.--Except as provided in paragraph (2), in
        the case of a corporation, the amount otherwise allowed as a
        deduction under this chapter for interest paid or accrued
        during the taxable year by such corporation shall be reduced by
        20 percent.
            ``(2) Exception for certain corporations.--
                    ``(A) In general.--Paragraph (1) shall not apply
                for any taxable year to any corporation the earnings
                and profits of which for such taxable year (computed as
                of the close of the taxable year without diminution by
                reason of any dividend distributions made during such
                taxable year) do not exceed the lesser of--
                            ``(i) the corporation's tax liability under
                        this chapter for such taxable year (determined
                        after the application of paragraph (1)), or
                            ``(ii) $100,000.
                    ``(B) Controlled group.--For purposes of
                subparagraph (A), all component members of a controlled
                group (as defined in section 179(d)(7)) shall be
                treated as 1 corporation.
            ``(3) Exception for farming businesses.--Paragraph (1)
        shall not apply to any corporation substantially all of the
        assets of which are used in the active conduct of a farming
        business (as defined in section 448(d)(1)).''.
    (b) Effective Date.--The amendment made by subsection (a) shall
apply to taxable years beginning after December 31, 1993.

SEC. 2. DIVIDEND PAID DEDUCTION.

    (a) General Rule.--Part VIII of subchapter B of chapter 1 of the
Internal Revenue Code of 1986 (relating to special deductions for
corporations) is amended by striking the table of sections and section
241 and inserting the following:

                              ``Subpart A. Dividend paid deduction.
                              ``Subpart B. Dividend received deduction.
                              ``Subpart C. Miscellaneous provisions.

``SEC. 230. ALLOWANCE OF SPECIAL DEDUCTIONS.

    ``In addition to the deductions provided in part VI (section 161
and following), there shall be allowed as deductions in computing
taxable income the items specified in this part.

                  ``Subpart A--Dividend Paid Deduction

                              ``Sec. 231. Dividend paid deduction.
                              ``Sec. 232. Qualified dividend account.
                              ``Sec. 233. Ineligible corporations.
                              ``Sec. 234. Special rules.

``SEC. 231. DIVIDEND PAID DEDUCTION.

    ``(a) Allowance of Deduction.--In the case of a corporation, there
shall be allowed as a deduction an amount equal to 50 percent of the
dividends paid by such corporation during the taxable year.
    ``(b) Limitation Based on Amount in Qualified Dividend Account.--
The amount of the dividends paid during any taxable year which may be
taken into account under subsection (a) shall not exceed the amount in
the corporation's qualified dividend account as of the close of such
taxable year determined after the application of section 232(b)(1) for
the taxable year but before the application of section 232(b)(2) for
such taxable year.

``SEC. 232. QUALIFIED DIVIDEND ACCOUNT.

    ``(a) Establishment of Account.--Each corporation shall establish a
qualified dividend account. The opening balance of such account shall
be zero.
    ``(b) Adjustments to Accounts.--As of the close of each taxable
year beginning after January 1, 1993, the qualified dividend account--
            ``(1) shall be increased by the adjusted taxable income of
        the corporation for the taxable year, and
            ``(2) shall be reduced by the amount of the dividends paid
        by the corporation during the taxable year to the extent the
        amount so paid does not exceed the limitation of section
        231(c).
    ``(c) Adjusted Taxable Income.--For purposes of this section--
            ``(1) In general.--The term `adjusted taxable income' means
        taxable income adjusted as provided in this subsection.
            ``(2) Adjustment for certain qualifying dividends.--Taxable
        income shall be increased by the deduction allowed under
        section 243 with respect to that portion of any qualifying
        dividend (as defined in section 243(b)(1)) for which such
        deduction is determined at a rate of less than 100 percent.
        Similar rules shall apply in the case of dividends for which
        deductions are allowable under section 245(b).
            ``(3) Adjustment for tax credits.--
                    ``(A) In general.--Taxable income shall be reduced
                by the deduction equivalent of the tentative
                nonrefundable credits for the taxable year.
                    ``(B) Deduction equivalent.--For purposes of
                subparagraph (A), the deduction equivalent of the
                tentative nonrefundable credits for any taxable year is
                the amount which (if allowed as a deduction for the
                taxable year) would reduce the tax liability (as
                defined in section 26(b)) for the taxable year by an
                amount equal to the tentative nonrefundable credits.
                    ``(C) Tentative nonrefundable credits.--For
                purposes of this paragraph, the term `tentative
                nonrefundable credits' means the amount of the credits
                which would have been allowable under part IV of
                subchapter A of this chapter for the taxable year
                (other than the credit allowable under section 34) if
                no deduction were allowable under section 231.
            ``(4) Adjustment for corporate minimum tax.--If tax is
        imposed by section 55 on the corporation for any taxable year,
        taxable income for the succeeding taxable year shall be
        increased by an amount equal to \35/100\ of the amount of tax
        so imposed.
            ``(5) Dividend paid deduction not taken into account.--
        Taxable income shall be determined without regard to the
        deduction allowed under section 231.

``SEC. 233. INELIGIBLE CORPORATIONS.

    ``(a) General Rule.--No deduction shall be allowed under section
231 with respect to any dividend paid by--
            ``(1) a regulated investment company,
            ``(2) a real estate investment trust,
            ``(3) an S corporation,
            ``(4) any organization taxable under subchapter T of this
        chapter (relating to cooperative organizations), or
            ``(5) a FSC or DISC.
    ``(b) Foreign Corporations.--In the case of a foreign corporation--
            ``(1) no deduction shall be allowed under section 231 for
        dividends paid by such corporation during any taxable year
        unless the corporation meets the requirements of section 245(a)
        for such taxable year,
            ``(2) only adjusted taxable income effectively connected
        with the conduct of a trade or business in the United States
        and attributable to the uninterrupted period referred to in
        section 245(a) shall be added to the qualified dividend
        account, and
            ``(3) any distribution shall be treated as made ratably out
        of income effectively connected with the conduct of a trade or
        business in the United States and other income.

``SEC. 234. SPECIAL RULES.

    ``(a) Certain Distributions Not Treated as Dividends.--For purposes
of this subpart, the term `dividend' does not include--
            ``(1) any distribution in redemption of stock, in
        liquidation, or in a reorganization (whether or not such
        distribution is treated as a distribution to which section 301
        applies), and
            ``(2) any dividend described in section 244 (relating to
        dividends received on certain preferred stock).
    ``(b) Deduction Not Taken Into Account for Purposes of Certain
Limitations Based on Taxable Income.--For purposes of sections 246(c),
613, 613A, and 593, taxable income shall be determined without regard
to the deduction allowed under section 231.
    ``(c) Treatment of Dividends Received by 5-Percent Tax-Exempt
Shareholders.--
            ``(1) In general.--For purposes of part III of subchapter F
        (relating to taxation of unrelated business income of certain
        exempt organizations), any dividend received by a tax-exempt
        organization from a corporation in which such organization is a
        5-percent shareholder shall be treated as unrelated business
        taxable income to the extent of the amount of the deduction
        allowable under section 231 to such corporation with respect to
        such dividend. Except as provided in regulations, the amount of
        such deduction shall be determined on the basis of the return
        filed by the corporation for the taxable year.
            ``(2) Definitions.--For purposes of this subsection--
                    ``(A) 5-percent shareholder.--The term `5-percent
                shareholder' means any tax-exempt organization which
                owns (or is considered as owning within the meaning of
                section 318)--
                            ``(i) 5 percent or more (by value) of the
                        outstanding stock of the corporation, or
                            ``(ii) stock possessing 5 percent or more
                        of the total combined voting power of all stock
                        of the corporation.
                    ``(B) Tax-exempt organization.--The term `tax-
                exempt organization' means any organization which is
                exempt from the tax imposed by this chapter.
                    ``(C) Related entities.--A tax-exempt organization
                and 1 or more other tax-exempt organizations which
                have--
                            ``(i) significant common purposes and
                        substantial common membership, or
                            ``(ii) directly or indirectly substantial
                        common direction or control, shall be treated
                        as 1 tax-exempt organization for purposes of
                        this paragraph.
    ``(d) Treatment of Subsequent Adjustments.--If there is any
adjustment which affects the amount of the adjusted taxable income of a
corporation for any taxable year (whether by reason of any carryback to
such taxable year or otherwise) for purposes of this subpart and
subpart B, the amount of such adjustment shall be treated as made as of
the close of such taxable year.
    ``(e) Allocation of Qualified Dividend Account in Corporate
Separations, Reorganizations, and Redemptions.--Adjustments similar to
the adjustments provided in subsection (h) or (n)(7) of section 312
shall be made to the qualified dividend account in the case of a
transaction described in either of such subsections.
    ``(f) Mutual Life Insurance Companies.--
            ``(1) General rule.--In the case of a mutual life insurance
        company, for purposes of this subpart, 80 percent of the
        differential earnings amount (as defined in section 809(a)(3))
        shall be treated as a dividend paid to a shareholder.
            ``(2) Regulations.--The Secretary may prescribe regulations
        applying rules consistent with this subpart to mutual life
        insurance companies. Such regulations may include rules
        treating an appropriate portion of the recomputed differential
        earnings amount (as defined in section 809(f)(3)) as an
        adjustment to the amount described in paragraph (1).

                ``Subpart B--Dividend Received Deduction

                              ``Sec. 243. Dividends received by
                                        corporations.
                              ``Sec. 244. Dividends received on certain
                                        preferred stock.
                              ``Sec. 245. Dividends received from
                                        certain foreign corporations.
                              ``Sec. 246. Rules applying to deductions
                                        for dividends received.
                              ``Sec. 246A. Dividends received deduction
                                        reduced where portfolio stock
                                        is debt financed.
                              ``Sec. 247. Dividends paid on certain
                                        preferred stock of public
                                        utilities.''.
    (b) Compensatory Withholding Tax on Dividends Paid to Nonresident
Aliens or Foreign Corporations.--
            (1) 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. 899. ADDITIONAL TAX ON DIVIDENDS TO REFLECT DIVIDEND PAID
              DEDUCTION.

    ``(a) General Rule.--In addition to any tax imposed by section 871
or 881, there is hereby imposed a tax equal to 30.4 percent of the
dividends received from sources within the United States by a
nonresident alien individual or foreign corporation.
    ``(b) Tax Not To Apply to Shareholder's Effectively Connected
Items.--The tax imposed by this section shall not apply to any dividend
to the extent such dividend is effectively connected with the conduct
of a trade or business by the shareholder within the United States.
    ``(c) Corresponding Increase in Withholding Tax.--In the case of
any dividend subject to tax under subsection (a), the tax imposed by
section 1441 or 1442 (as the case may be) shall be increased by an
amount equal to the applicable percentage of such dividend.
    ``(d) Exception for Certain Treaty Countries.--The tax imposed by
subsection (a) shall not apply to any dividend paid to a resident or
corporation of a foreign country during any period--
            ``(1) in which an income tax treaty between such country
        and the United States is in effect, and
            ``(2) during which there is in effect a certification by
        the Secretary that--
                    ``(A) such income tax treaty has adequate
                provisions to prevent treaty shopping, and
                    ``(B) if such foreign country imposes an income tax
                comparable to the tax imposed by this subtitle and
                grants relief from such tax to its residents, such
                country grants relief equivalent to that provided in
                section 231 with respect to dividends paid to United
                States persons.
The requirements of paragraph (2) shall not apply to dividends paid
before January 1, 1994.''.
            (2) 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. 899. Additional tax on dividends
                                        to reflect dividend paid
                                        deduction.''.
    (c) Section 381 To Apply to Qualified Dividend Account.--Subsection
(c) of section 381 (relating to items of the distributor or transferor
corporation) is amended by adding at the end thereof the following new
paragraph:
            ``(27) Qualified dividend account.--Under regulations
        prescribed by the Secretary, the acquiring corporation shall
        take into account (to the extent proper to carry out the
        purposes of this section and subpart A of part VIII of
        subchapter B of this chapter) the qualified dividend account of
        the distributor or transferor corporation.''.
    (d) Clerical Amendment.--Part VIII of subchapter B of chapter 1 is
amended by inserting after section 247 the following:

                 ``Subpart C--Miscellaneous Provisions

                              ``Sec. 248. Organizational expenditures.
                              ``Sec. 249. Limitation on deduction of
                                        bond premium on repurchase.''.

Summary: Amends the Internal Revenue Code to reduce the deduction for corporate interest payments by 20 percent. Excepts small corporations and farming businesses from such reduction. Allows corporations a deduction of 50 percent of the dividends paid during a taxable year. Limits such deduction to the amount in the qualified dividend account established by the corporation for the payment of such dividends. Prohibits the following corporations from using such deduction: (1) regulated investment companies, (2) real estate investment trusts, (3) an S corporation, (4) cooperative organizations. And (5) foreign sales corporations and domestic international sales corporations. Provides for an increase in the withholding tax on dividends paid to nonresident aliens or foreign corporations to reflect the dividend paid deduction. Requires, in the case of the acquisition of assets of a corporation by another corporation, that the acquiring corporation carryover the qualified dividend account.

A bill to amend the Internal Revenue Code of 1986 to limit the interest deduction allowed corporations and to allow a deduction for dividends paid by corporations.


SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Twenty-First Amendment Enforcement
Act''.

SEC. 2. SHIPMENT OF INTOXICATING LIQUOR INTO STATE IN VIOLATION OF
              STATE LAW.

    The Act entitled ``An Act divesting intoxicating liquors of their
interstate character in certain cases'', approved March 1, 1913
(commonly known as the ``Webb-Kenyon Act'') (27 U.S.C. 122) is amended
by adding at the end the following:

``SEC. 2. INJUNCTIVE RELIEF IN FEDERAL DISTRICT COURT.

    ``(a) Definitions.--In this section--
            ``(1) the term `attorney general' means the attorney
        general or other chief law enforcement officer of a State, or
        the designee thereof;
            ``(2) the term `intoxicating liquor' means any spirituous,
        vinous, malted, fermented, or other intoxicating liquor of any
        kind;
            ``(3) the term `person' means any individual and any
        partnership, corporation, company, firm, society, association,
        joint stock company, trust, or other entity capable of holding
        a legal or beneficial interest in property, but does not
        include a State or agency thereof; and
            ``(4) the term `State' means any State of the United
        States, the District of Columbia, the Commonwealth of Puerto
        Rico, or any territory or possession of the United States.
    ``(b) Action by State Attorney General.--If the attorney general
has reasonable cause to believe that a person is engaged in, or has
engaged in, any act that would constitute a violation of a State law
regulating the importation or transportation of any intoxicating
liquor, the attorney general may bring a civil action in accordance
with this section for injunctive relief (including a preliminary or
permanent injunction or other order) against the person, as the
attorney general determines to be necessary to--
            ``(1) restrain the person from engaging, or continuing to
        engage, in the violation; and
            ``(2) enforce compliance with the State law.
    ``(c) Federal Jurisdiction.--
            ``(1) In general.--The district courts of the United States
        shall have jurisdiction over any action brought under this
        section by an attorney general against any person, except one
        licensed or otherwise authorized to produce, sell, or store
        intoxicating liquor in such State.
            ``(2) Venue.--An action under this section may be brought
        only in accordance with section 1391 of title 28, United States
        Code, or in the district in which the recipient of the
        intoxicating liquor resides or is found.
    ``(d) Requirements for Injunctions and Orders.--
            ``(1) In general.--In any action brought under this
        section, upon a proper showing by the attorney general of the
        State, the court may issue a preliminary or permanent
        injunction or other order to restrain a violation of this
        section. A proper showing under this paragraph shall require
        clear and convincing evidence that a violation of State law as
        described in subsection (b) has taken place. In addition, no
        temporary restraining order or preliminary injunction may be
        granted except upon--
                    ``(A) evidence demonstrating the probability of
                irreparable injury if injunctive relief is not granted;
                and
                    ``(B) evidence supporting the probability of
                success on the merits.
            ``(2) Notice.--No preliminary injunction or permanent
        injunction or other order may be issued under paragraph (1)
        without notice to the adverse party and an opportunity for a
        hearing.
            ``(3) Form and scope of order.--Any preliminary or
        permanent injunction or other order entered in an action
        brought under this section shall--
                    ``(A) set forth the reasons for the issuance of the
                order;
                    ``(B) be specific in its terms;
                    ``(C) describe in reasonable detail, and not by
                reference to the complaint or other document, the act
                or acts sought to be restrained; and
                    ``(D) be binding upon--
                            ``(i) the parties to the action and the
                        officers, agents, employees, and attorneys of
                        those parties; and
                            ``(ii) persons in active concert or
                        participation with the parties to the action
                        who receive actual notice of the order by
                        personal service or otherwise.
    ``(e) Additional Remedies.--
            ``(1) In general.--A remedy under this section is in
        addition to any other remedies provided by law.
            ``(2) State court proceedings.--Nothing in this section may
        be construed to prohibit an authorized State official from
        proceeding in State court on the basis of an alleged violation
        of any State law.

``SEC. 3. GENERAL PROVISIONS.

    ``(a) Effect on Internet Tax Freedom Act.--Nothing in this Act may
be construed to modify or supersede the operation of the Internet Tax
Freedom Act (47 U.S.C. 151 note).
    ``(b) Enforcement of Twenty-First Amendment.--It is the purpose of
this Act to assist the States in the enforcement of section 2 of the
twenty-first article of amendment to the Constitution of the United
States, and not to impose an unconstitutional burden on interstate
commerce in violation of article I, section 8, of the Constitution of
the United States. No State may enforce under this Act a law regulating
the importation or transportation of any intoxicating liquor that
unconstitutionally discriminates against interstate commerce by out-of-
State sellers by favoring local industries, erecting barriers to
competition, and constituting mere economic protectionism.
    ``(c) Support for Internet and Other Interstate Commerce.--Nothing
in this Act may be construed--
            ``(1) to permit State regulation or taxation of Internet
        services or any other related interstate telecommunications
        services; or
            ``(2) to authorize any injunction against--
                    ``(A) an interactive computer service (as defined
                in section 230(f) of the Communications Act of 1934 (47
                U.S.C. 230(f)); or
                    ``(B) electronic communication service (as defined
                in section 2510(15) of title 18, United States Code)
                used by another person to engage in any activity that
                is subject to this Act.''.

SEC. 3. EFFECTIVE DATE; APPLICATION OF AMENDMENT.

    (a) Effective Date.--Except as provided in subsection (b), this Act
and the amendment made by this Act shall take effect on the date of the
enactment of this Act.
    (b) Application of Amendment.--The amendment made by this Act shall
apply only with respect to the importation or transportation of any
intoxicating liquor occurring after--
            (1) October 31, 1999, or the expiration of the 90-day
        period beginning on the date of the enactment of this Act,
        whichever is earlier, if this Act is enacted before November 1,
        1999; or
            (2) the date of the enactment of this Act if this Act is
        enacted after October 31, 1999.

SEC. 4. STUDY.

    The Attorney General shall submit to the Congress the results of a
study to determine the impact of this Act. The Attorney General shall
carry out the study required by subsection (a) and shall submit the
results of such study not later than 180 days after the date of the
enactment of this Act.

            Passed the House of Representatives August 3, 1999.

            Attest:

                                                 JEFF TRANDAHL,

                                                                 Clerk.

                              By Martha C. Morrison,

                                                          Deputy Clerk.

Summary: Twenty-First Amendment Enforcement Act - Amends the Webb-Kenyon Act to authorize a State attorney general who has reasonable cause to believe that a person is engaging in any act that would constitute a violation of State law regulating the importation or transportation of any intoxicating liquor, to bring a civil action for injunctive relief to: (1) restrain the person from engaging in the violation. And (2) enforce compliance with State law. Grants US district courts jurisdiction over any action brought by a State AG against any person, except one licensed or otherwise authorized to produce, sell, or store intoxicating liquor in such State. Permits such an action to be brought only in accordance with Federal judicial code provisions regarding venue, or in the district in which the recipient of such liquor resides or is found. Authorizes the court, in such action and upon a proper showing by the State AG, to issue a preliminary or permanent injunction or other order to restrain a violation. Specifies that a proper showing shall require clear and convincing evidence that a violation of State law regulating the importation or transportation of intoxicating liquor has taken place, and that no temporary restraining order or preliminary injunction may be granted except upon evidence: (1) demonstrating the probability of irreparable injury if injunctive relief is not granted. And (2) supporting the probability of success on the merits. Prohibits such issuance without notice to the adverse party and an opportunity for a hearing. Sets forth provisions regarding the form and scope of the order. Specifies that nothing in this Act may be construed to modify or supersede the operation of the Internet Tax Freedom Act. Prohibits any State from enforcing under this Act a law regulating the importation or transportation of intoxicating liquor that unconstitutionally discriminates against interstate commerce by out-of-State sellers by favoring local industries, erecting barriers to competition, and constituting mere economic protectionism. Provides that nothing in this Act may be construed to: (1) permit State regulation or taxation of Internet services or any other related interstate telecommunications services. Or (2) authorize any injunction against an interactive computer service or against an electronic communication service used by another person to engage in any activity that is subject to this Act. Provides that the amendment made by this Act shall apply only with respect to the importation or transportation of intoxicating liquor occurring after: (1) October 31, 1999, or the expiration of the 90-day period beginning on the date of this Act's enactment, whichever is earlier, if this Act is enacted before November 1, 1999. Or (2) the date of this Act's enactment if this Act is enacted after October 31, 1999. Directs the Attorney General to conduct and report to Congress on the impact of this Act.

Twenty-First Amendment Enforcement Act