SECTION 1. PUBLIC SCHOOL REPAIR AND RENOVATION.

    Title XII of the Elementary and Secondary Education Act of 1965 (20
U.S.C. 8501 et seq.) is amended to read as follows:

            ``TITLE XII--PUBLIC SCHOOL REPAIR AND RENOVATION

``SEC. 12001. FINDINGS.

    ``Congress finds as follows:
            ``(1) The General Accounting Office estimated in 1995 that
        it would cost $112,000,000,000 to bring our Nation's school
        facilities into good overall condition.
            ``(2) The General Accounting Office also found in 1995 that
        60 percent of the Nation's schools, serving 28,000,000
        students, reported that 1 or more building features, such as
        roofs and plumbing, needed to be extensively repaired,
        overhauled, or replaced.
            ``(3) The National Center for Education Statistics reported
        that the average age for a school building in 1998 was 42 years
        and that local educational agencies with relatively high rates
        of poverty tend to have relatively old buildings.
            ``(4) School condition is positively correlated with
        student achievement, according to a number of research studies.
            ``(5) The results of a recent survey indicate that the
        condition of schools with large proportions of students living
        on Indian lands is particularly poor.
            ``(6) While school repair and renovation are primarily a
        State and local concern, some States and communities are not,
        on their own, able to meet the burden of providing adequate
        school facilities for all students, and the poorest communities
        have had the greatest difficulty meeting this need. It is,
        therefore, appropriate for the Federal Government to provide
        assistance to high-need communities for school repair and
        renovation.

``SEC. 12002. PURPOSE.

    ``The purpose of this title is to assist high-need local
educational agencies in making urgent repairs and renovations to public
school facilities in order to--
            ``(1) reduce health and safety problems, including
        violations of local or State fire codes, faced by students; and
            ``(2) improve the ability of students to learn in their
        school environment.

``SEC. 12003. AUTHORIZED ACTIVITIES.

    ``(a) In General.--A recipient of a grant or loan under this title
shall use the grant or loan funds to carry out the purpose of this
title by--
            ``(1) repairing or replacing roofs, electrical wiring or
        plumbing systems;
            ``(2) repairing, replacing, or installing heating,
        ventilation, or air conditioning systems;
            ``(3) ensuring that repairs and renovations under this
        title comply with the requirements of section 504 of the
        Rehabilitation Act of 1973 and the Americans with Disabilities
        Act of 1990 relating to the accessibility of public school
        programs to individuals with disabilities; and
            ``(4) making other types of school repairs and renovations
        that the Secretary may reasonably determine are urgently
        needed, particularly projects to correct facilities problems
        that endanger the health and safety of students and staff such
        as violations of State or local fire codes.
    ``(b) Limitation.--The Secretary shall not approve an application
for a grant or loan under this title unless the applicant demonstrates
to the Secretary's satisfaction that the applicant lacks sufficient
funds, from other sources, to carry out the repairs or renovations for
which the applicant is requesting assistance.

``SEC. 12004. GRANTS TO LOCAL EDUCATIONAL AGENCIES WITH HIGH
              CONCENTRATIONS OF STUDENTS LIVING ON INDIAN LANDS.

    ``(a) Grants Authorized.--From funds available under section
12008(a), the Secretary shall award grants to local educational
agencies to enable the agencies to carry out the authorized activities
described in section 12003 and subsection (e).
    ``(b) Eligibility.--A local educational agency is eligible for a
grant under this section if the number of children determined under
section 8003(a)(1)(C) of this Act for that agency constituted at least
50 percent of the number of children who were in average daily
attendance at the schools of such agency during the preceding school
year.
    ``(c) Allocation of Funds.--The Secretary shall allocate funds
available to carry out this section to eligible local educational
agencies based on their respective numbers of children in average daily
attendance who are counted under section 8003(a)(1)(C) of this Act.
    ``(d) Applications.--Each eligible local educational agency that
desires to receive a grant under this section shall submit an
application to the Secretary that includes--
            ``(1) a statement of how the agency will use the grant
        funds;
            ``(2) a description of the steps the agency will take to
        adequately maintain the facilities that the agency repairs,
        renovates, or constructs with those funds; and
            ``(3) such other information and assurances as the
        Secretary may reasonably require.
    ``(e) Construction of New Schools.--In addition to any other
activity authorized under section 12003, an eligible local educational
agency may use grant funds received under this section to construct a
new school if the agency demonstrates to the Secretary's satisfaction
that the agency will replace an existing school that is in such poor
condition that renovating the school will not be cost-effective.

``SEC. 12005. GRANTS TO HIGH-POVERTY LOCAL EDUCATIONAL AGENCIES.

    ``(a) Grants Authorized.--From funds available under section
12008(b)(1), the Secretary shall make grants, on a competitive basis,
to local educational agencies with poverty rates of 25 percent or
greater to enable the agencies to carry out the authorized activities
described in section 12003.
    ``(b) Criteria for Awarding Grants.--In awarding grants under this
section, the Secretary shall consider--
            ``(1) the poverty rate, the need for school repairs and
        renovations, and the fiscal capacity of each local educational
        agency; and
            ``(2) such other factors as the Secretary determines
        appropriate.
    ``(c) Applications.--Each eligible local educational agency that
desires to receive a grant under this section shall submit an
application to the Secretary that includes--
            ``(1) a description of the agency's urgent need for school
        repair and renovation and of how the agency will use funds
        available under this title to meet those needs;
            ``(2) information on the fiscal effort that the agency is
        making in support of education and evidence demonstrating that
        the agency lacks the capacity to meet the agency's urgent
        school repair and renovation needs without assistance made
        available under this title;
            ``(3) a description of the steps the agency will take to
        adequately maintain the facilities that the agency repairs or
        renovates with the assistance; and
            ``(4) such other information and assurances as the
        Secretary may reasonably require.

``SEC. 12006. SCHOOL RENOVATION GRANTS AND LOANS.

    ``(a) Grants and Loans Authorized.--From funds available under
section 12008(b)(2), the Secretary shall make grants, and shall pay the
cost of loans made, on a competitive basis, to local educational
agencies that lack the ability to fund urgent school repairs without a
grant or loan provided under this section to enable the agencies to
carry out the authorized activities described in section 12003.
    ``(b) Loan Period.--Each loan under this section shall be for a
period of 7 years and shall carry an interest rate of 0 percent.
    ``(c) Criteria for Making Loans.--In making loans under this
section, the Secretary shall consider--
            ``(1) the extent of poverty, the need for school repairs
        and renovations, and the fiscal capacity of each applicant; and
            ``(2) such other factors as the Secretary determines
        appropriate.
    ``(d) Applications.--Each eligible local educational agency that
desires to receive a grant or loan under this section shall submit an
application to the Secretary that includes the information described in
section 12005(c).
    ``(e) Credit Standards.--In carrying out this section, the
Secretary--
            ``(1) shall not extend credit without finding that there is
        reasonable assurance of repayment; and
            ``(2) may use credit enhancement techniques, as
        appropriate, to reduce the credit risk of loans.

``SEC. 12007. PROGRESS REPORTS.

    ``The Secretary shall require recipients of grants and loans under
this title to submit progress reports and such other information as the
Secretary determines necessary to ensure compliance with this title and
to evaluate the impact of activities assisted under this title.

``SEC. 12008. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) Grants Under Section 12004.--For the purpose of making grants
under section 12004, there are authorized to be appropriated
$50,000,000 for fiscal year 2001 and such sums as may be necessary for
each of the 4 succeeding fiscal years.
    ``(b) Grants Under Section 12005 and Grants and Loans Under Section
12006.--For the purpose of making grants under section 12005, and
grants and loans under section 12006, there are authorized to be
appropriated $1,250,000,000 for fiscal year 2001 and such sums as may
be necessary for each of the succeeding 4 years, of which--
            ``(1) 10 percent shall be available for grants under
        section 12005; and
            ``(2) 90 percent shall be available to make grants and to
        pay the cost of loans under section 12006.
    ``(c) Limitation on Loan Volume.--Within the available resources
and authority, gross obligations for the principal amount of direct
loans offered by the Secretary under section 12006 for fiscal year 2001
shall not exceed $7,000,000,000, or the amount specified in an
applicable appropriations Act, whichever is greater.

``SEC. 12009. DEFINITIONS.

    ``For the purpose of this title, the following terms have the
following meanings:
            ``(1) Local educational agency.--The term `local
        educational agency' has the meaning given that term in section
        14101(18) (A) and (B) of this Act.
            ``(2) Public school facility.--
                    ``(A) In general.--The term `public school
                facility' means a public building whose primary purpose
                is the instruction of public elementary or secondary
                students.
                    ``(B) Exclusions.--The term excludes athletic
                stadiums or any other structure or facility intended
                primarily for athletic exhibitions, contests, games, or
                events for which admission is charged to the general
                public.
            ``(3) Repair and renovation.--The term `repair and
        renovation' used with respect to an existing public school
        facility, means the repair or renovation of the facility
        without increasing the size of the facility.''.

Summary: Requires high-need local educational agencies (LEAs) to use the title XII grants or loans they receive for repairs and renovations to reduce health and safety problems, and to improve the learning environment, with respect to: (1) roofs, electrical wiring, or plumbing repair or replacement. (2) heating, ventilation, or air conditioning systems' repair, replacement, or installation. (3) title XII repairs and renovations compliance with specified accessibility requirements of the Rehabilitation Act of 1973 and the Americans with Disabilities Act of 1990. And (4) other types of school repairs and renovations that the Secretary of Education may reasonably determine are urgently needed, particularly projects to correct facilities problems that endanger the health and safety of students and staff. Requires title XII grant or loan applicants to demonstrate to the Secretary's satisfaction that they lack sufficient funds from other sources to carry out the repairs or renovations for which they are requesting assistance. Provides for the following types and portions of title XII assistance: (1) a specified amount reserved for allocated grants to LEAs with high concentrations of students living on Indian lands. (2) ten percent of the remainder for competitive grants to high-poverty LEAs. And (3) 90 percent of such remainder for competitive grants and loans to high-need LEAs that lack the ability to fund urgent school repairs . Authorizes appropriations. Prohibits title XII assistance for repair or renovation of athletic stadiums or other structures or facilities intended primarily for athletic events for which admission is charged to the general public.

A bill to authorize Federal financial assistance for the urgent repair and renovation of public elementary and secondary schools in high-need areas.


SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Interstate Transportation of
Municipal Waste Act of 1995''.

SEC. 2. INTERSTATE TRANSPORTATION OF MUNICIPAL WASTE.

    Subtitle D of the Solid Waste Disposal Act (42 U.S.C. 6941 et seq.)
is amended by adding at the end the following new section:

             ``interstate transportation of municipal waste

    ``Sec. 4011. (a) Authority To Restrict Out-of-State Municipal
Waste.--(1)(A) Except as provided in subsection (b), if requested in
writing by an affected local government, a Governor may prohibit the
disposal of out-of-State municipal waste in any landfill or incinerator
that is subject to the jurisdiction of the Governor or the affected
local government.
    ``(B) Prior to submitting a request under this section, the
affected local government shall--
            ``(i) provide notice and opportunity for public comment
        concerning any proposed request; and
            ``(ii) following notice and comment, take formal action on
        any proposed request at a public meeting.
    ``(2) Beginning with calendar year 1995, a Governor of a State may,
with respect to landfills covered by the exceptions provided in
subsection (b)--
            ``(A) notwithstanding the absence of a request in writing
        by the affected local government--
                    ``(i) limit the quantity of out-of-State municipal
                waste received for disposal at each landfill in the
                State to an annual quantity equal to the quantity of
                out-of-State municipal waste received for disposal at
                the landfill during the calendar year 1993 or 1994,
                whichever is less; and
                    ``(ii) limit the disposal of out-of-State municipal
                waste at landfills that received, during calendar year
                1993, documented shipments of more than 50,000 tons of
                out-of-State municipal waste representing more than 30
                percent of all municipal waste received at the landfill
                during the calendar year, by prohibiting at each such
                landfill the disposal, in any year, of a quantity of
                out-of-State municipal waste that is greater than 30
                percent of all municipal waste received at the landfill
                during calendar year 1993; and
            ``(B) if requested in writing by the affected local
        government, prohibit the disposal of out-of-State municipal
        waste in landfill cells that do not meet the design and
        location standards and leachate collection and ground water
        monitoring requirements of State law and regulations in effect
        on January 1, 1993, for new landfills.
    ``(3)(A) In addition to the authorities provided in paragraph
(1)(A), beginning with calendar year 1997, a Governor of any State, if
requested in writing by the affected local government, may further
limit the disposal of out-of-State municipal waste as provided in
paragraph (2)(A)(ii) by reducing the 30 percent annual quantity
limitation to 20 percent in each of calendar years 1998 and 1999, and
to 10 percent in each succeeding calendar year.
    ``(B)(i) A State may ban imports from large exporting States if the
volumes of municipal solid waste exported by those States did not meet
reduction targets.
    ``(ii) A ban under clause (i) may prohibit imports from States that
export more than--
            ``(I) 3,500,000 tons in calendar year 1996;
            ``(II) 3,000,000 tons in calendar year 1997;
            ``(III) 3,000,000 tons in calendar year 1998;
            ``(IV) 2,500,000 tons in calendar year 1999;
            ``(V) 2,500,000 tons in calendar year 2000;
            ``(VI) 1,500,000 tons in calendar year 2001;
            ``(VII) 1,500,000 tons in calendar year 2002; or
            ``(VIII) 1,000,000 tons in any calendar year after 2002,
excluding any volume legitimately covered by a host community
agreement.
    ``(4)(A) Any limitation imposed by the Governor under paragraph
(2)(A)--
            ``(i) shall be applicable throughout the State;
            ``(ii) shall not discriminate against any particular
        landfill within the State; and
            ``(iii) shall not discriminate against any shipments of
        out-of-State municipal waste on the basis of State of origin.
    ``(B) In responding to requests by affected local governments under
paragraphs (1)(A) and (2)(B), the Governor shall respond in a manner
that does not discriminate against any particular landfill within the
State and does not discriminate against any shipments of out-of-State
municipal waste on the basis of State of origin.
    ``(5)(A) Any Governor who intends to exercise the authority
provided in this paragraph shall, within 120 days after the date of
enactment of this section, submit to the Administrator information
documenting the quantity of out-of-State municipal waste received for
disposal in the State of the Governor during calendar years 1993 and
1994.
    ``(B) On receipt of the information submitted pursuant to
subparagraph (A), the Administrator shall notify the Governor of each
State and the public and shall provide a comment period of not less
than 30 days.
    ``(C) Not later than 60 days after receipt of information from a
Governor under subparagraph (A), the Administrator shall determine the
quantity of out-of-State municipal waste that was received at each
landfill covered by the exceptions provided in subsection (b) for
disposal in the State of the Governor during calendar years 1993 and
1994, and provide notice of the determination to the Governor of each
State. A determination by the Administrator under this subparagraph
shall be final and not subject to judicial review.
    ``(D) Not later than 180 days after the date of enactment of this
section, the Administrator shall publish a list of the quantity of out-
of-State municipal waste that was received during calendar years 1993
and 1994 at each landfill covered by the exceptions provided in
subsection (b) for disposal in each State in which the Governor intends
to exercise the authority provided in this paragraph, as determined in
accordance with subparagraph (C).
    ``(b) Exceptions To Authority To Prohibit Out-of-State Municipal
Waste.--The authority to prohibit the disposal of out-of-State
municipal waste provided under subsection (a)(1) shall not apply to--
            ``(1) landfills in operation on the date of enactment of
        this section that--
                    ``(A) received during calendar year 1993 documented
                shipments of out-of-State municipal waste; and
                    ``(B) are in compliance with all applicable State
                laws (including any State rule or regulation) relating
                to design and location standards, leachate collection,
                ground water monitoring, and financial assurance for
                closure and post-closure and corrective action;
            ``(2) proposed landfills that, prior to January 1, 1993,
        received--
                    ``(A) an explicit authorization as part of a host
                community agreement from the affected local government
                to receive municipal waste generated out-of-State; and
                    ``(B) a notice of decision from the State to grant
                a construction permit; or
            ``(3) incinerators in operation on the date of enactment of
        this section that--
                    ``(A) received, during calendar year 1993,
                documented shipments of out-of-State municipal waste;
                    ``(B) are in compliance with the applicable
                requirements of section 129 of the Clean Air Act (42
                U.S.C. 7429); and
                    ``(C) are in compliance with all applicable State
                laws (including any State rule or regulation) relating
                to facility design and operations.
    ``(c) Denial of Permits on Ground of Lack of Need.--
            ``(1) Denial.--A State may deny a permit for the
        construction or operation of a new landfill or incinerator or a
        major modification of an existing landfill or incinerator if--
                    ``(A) the State has approved a State or local
                comprehensive solid waste management plan developed
                under Federal or State law; and
                    ``(B) the denial is based on the State's
                determination, pursuant to a State law authorizing such
                denial, that there is not a local or regional need of
                the landfill or incinerator in the State.
            ``(2) Undue burden.--A denial of a permit under paragraph
        (1) shall not be considered to impose an undue burden on
        interstate commerce or to otherwise impair, restrain, or
        discriminate against interstate commerce.
    ``(d) Definitions.--As used in this section:
            ``(1) The term `affected local government' means--
                    ``(A) the public body authorized by State law to
                plan for the management of municipal solid waste, a
                majority of the members of which are elected officials,
                for the area in which the landfill or incinerator is
located or proposed to be located; or
                    ``(B) if there is not such body created by State
                law, the elected officials of the city, town, township,
                borough, county, or parish selected by the Governor and
                exercising primary responsibility over municipal solid
                waste management or the use of land in the jurisdiction
                in which the facility is located or proposed to be
                located.
            ``(2) The term `affected local solid waste planning unit'
        means a political subdivision of a State with authority
        relating to solid waste management planning in accordance with
        State law.
            ``(3) With respect to a State, the term `out-of-State
        municipal waste' means municipal waste generated outside the
        State. To the extent that it is consistent with the United
        States-Canada Free Trade Agreement and the General Agreement on
        Tariffs and Trade, the term shall include municipal waste
        generated outside the United States.
            ``(4) The term `host community agreement' means a written,
        legally binding document or documents executed by duly
        authorized officials of the affected local government that
        specifically authorizes a landfill or incinerator to receive
        municipal solid waste generated out-of-State.
            ``(5) The term `municipal waste' means refuse (and refuse-
        derived fuel) generated by the general public or from a
        residential, commercial, institutional, or industrial source
        (or any combination thereof), consisting of paper, wood, yard
        wastes, plastics, leather, rubber, or other combustible or
        noncombustible materials such as metal or glass (or any
        combination thereof). The term `municipal waste' does not
        include--
                    ``(A) any solid waste identified or listed as a
                hazardous waste under section 3001;
                    ``(B) any solid waste, including contaminated soil
                and debris, resulting from a response action taken
                under section 104 or 106 of the Comprehensive
                Environmental Response, Compensation, and Liability Act
                (42 U.S.C. 9604, 9606) or a corrective action taken
                under this Act;
                    ``(C) any metal, pipe, glass, plastic, paper,
                textile, or other material that has been separated or
                diverted from municipal waste and has been transported
                into the State for the purpose of recycling or
                reclamation;
                    ``(D) any solid waste that is--
                            ``(i) generated by an industrial facility;
                        and
                            ``(ii) transported for the purpose of
                        treatment, storage, or disposal to a facility
                        that is owned or operated by the generator of
                        the waste, or is located on property owned by
                        the generator or a company with which the
                        generator is affiliated;
                    ``(E) any solid waste generated incident to the
                provision of service in interstate, intrastate,
                foreign, or overseas air transportation;
                    ``(F) any industrial waste that is not identical to
                municipal waste with respect to the physical and
                chemical state of the industrial waste, and
                composition, including construction and demolition
                debris;
                    ``(G) any medical waste that is segregated from or
                not mixed with municipal waste; or
                    ``(H) any material or product returned from a
                dispenser or distributor to the manufacturer for
                credit, evaluation, or possible reuse.''.

SEC. 3. TABLE OF CONTENTS AMENDMENT.

    The table of contents of the Solid Waste Disposal Act is amended by
adding at the end of the items relating to subtitle D the following new
item:

``Sec. 4011. Interstate transportation of municipal waste.''.

Summary: Interstate Transportation of Municipal Waste Act of 1995 - Amends the Solid Waste Disposal Act to authorize a State Governor, if requested by an affected local government, to prohibit the disposal of out-of-State municipal waste in: (1) any landfill or incinerator subject to the jurisdiction of the Governor or the local government. And (2) landfill cells that do not meet the State's design and location standards and leachate collection and groundwater monitoring requirements for new landfills. Permits such Governors, without the request of such entities, to limit the quantity of out-of-State municipal waste received for disposal, or the disposal of such waste, at landfills covered by exceptions under this Act. Authorizes States to ban imports from large exporting States if the volumes of municipal solid waste exported by such States did not meet reduction targets. Prohibits discrimination against any particular landfill and against shipments of out-of-State waste on the basis of State of origin. Exempts from a Governor's authority to prohibit the disposal of out-of-State waste: (1) landfills that received documented shipments of such waste in 1993 and are in compliance with State laws relating to design and location standards, leachate collection, groundwater monitoring, and financial assurance for closure and post-closure and corrective action. (2) proposed landfills that, prior to January 1, 1993, received an authorization as part of a host community agreement from the affected local government to receive municipal waste generated out-of-State and a State notice of decision to grant a construction permit. Or (3) incinerators that received documented shipments of such waste during 1993 and are in compliance with performance standards under the Clean Air Act and State laws relating to facility design and operations. Authorizes States to deny permits for the construction or operation of a new landfill or incinerator or a major modification of an existing landfill or incinerator if: (1) the State has approved a State or local comprehensive solid waste management plan developed under Federal or State law. And (2) the denial is based on the State's determination that there is not a local or regional need of the landfill or incinerator in the State.


SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Stock Option Accounting Reform
Act''.

SEC. 2. MANDATORY EXPENSING OF STOCK OPTIONS HELD BY HIGHLY COMPENSATED
              OFFICERS.

    Section 13 of the Securities Exchange Act of 1934 (15 U.S.C. 78m)
is amended by adding at the end the following:
    ``(m) Mandatory Expensing of Stock Options.--
            ``(1) Named executive officer.--As used in this subsection,
        the term `named executive officer' means--
                    ``(A) all individuals serving as the chief
                executive officer of an issuer, or acting in a similar
                capacity, during the most recent fiscal year,
                regardless of compensation level; and
                    ``(B) the 4 most highly compensated executive
                officers, other than an individual identified under
                subparagraph (A), that were serving as executive
                officers of an issuer at the end of the most recent
                fiscal year.
            ``(2) In general.--Subject to paragraph (4), every issuer
        of a security registered pursuant to section 12 shall show as
        an expense in the annual report of such issuer filed under
        subsection (a)(2), the fair value of all options to purchase
        the stock of the issuer granted after December 31, 2004, to a
        named executive officer of the issuer.
            ``(3) Fair value.--
                    ``(A) In general.--The fair value of an option to
                purchase the stock of the issuer that is subject to
                paragraph (2) shall be--
                            ``(i) equal to the value that would be
                        agreed upon by a willing buyer and seller of
                        such option, who are not under any compulsion
                        to buy or sell such option; and
                            ``(ii) shall take into account all of the
                        characteristics and restrictions imposed upon
                        the option.
                    ``(B) Pricing model.--To the extent that an option
                pricing model, such as the Black-Scholes method or a
                binomial model, is used to determine the fair value of
                an option, the assumed volatility of the underlying
                stock shall be zero.
            ``(4) Exemptions.--
                    ``(A) Small business issuers.--This subsection
                shall not apply to an issuer, if--
                            ``(i) the issuer has annual revenues of
                        less than $25,000,000;
                            ``(ii) the issuer is organized under the
                        laws of the United States or Canada;
                            ``(iii) the issuer is not an investment
                        company (as such term is defined under section
                        3 of the Investment Company Act of 1940 (15
                        U.S.C. 80a-3));
                            ``(iv) the aggregate value of the
                        outstanding voting and non-voting common equity
                        securities of the issuer held by non-affiliated
                        parties is less than $25,000,000; and
                            ``(v) in the case of an issuer that meets
                        the criteria in clauses (i) through (iv) and is
                        a majority owned subsidiary, the parent of the
                        issuer meets the requirements of this
                        paragraph.
                    ``(B) Delayed effectiveness.--The requirements of
                this subsection shall not apply to an issuer before the
                end of the 3-year period beginning on the date of the
                completion of the initial public offering of the
                securities of the issuer, and shall only apply to an
                option to purchase the stock of an issuer granted after
                such date.''.

SEC. 3. PROHIBITION ON EXPENSING AND ECONOMIC IMPACT STUDY.

    (a) Prohibition.--Section 19(b) of the Securities Act of 1933 is
amended by adding at the end the following:
            ``(3) Prohibition on expensing standards.--
                    ``(A) In general.--The Commission shall not
                recognize as ``generally accepted'' any accounting
                principle established by a standard setting body
                relating to the expensing of stock options unless--
                            ``(i) it complies with the requirements of
                        subparagraph (B); and
                            ``(ii) the economic impact study required
                        under section 3(b) of the Stock Option
                        Accounting Reform Act of 2003 has been
                        completed.
                    ``(B) Requirements.--A standard referred to in
                subparagraph (A) shall require that--
                            ``(i) if an option to purchase the stock of
                        an issuer that is subject to the requirements
                        of section 13(m) of the Securities Exchange Act
                        of 1934 is exercised, forfeited, or expires
                        unexercised, any expense that had been reported
                        under that section 13(m) with respect to such
                        option shall be reported in the fiscal year in
                        which the option expires or is forfeited as a
                        reduction of the total expense required to be
                        reported under that section 13(m) during that
                        fiscal year; and
                            ``(ii) to the extent that any reduction
                        required under clause (i) exceeds total option
                        expenses for any fiscal year, such excess shall
                        be reported as income with respect to options
                        to purchase the stock of the issuer.''.
    (b) Economic Impact Study.--The Secretary of Commerce and the
Secretary of Labor shall conduct and complete a joint study on the
economic impact of the mandatory expensing of all employee stock
options, including the impact upon--
            (1) the use of broad-based stock option plans in expanding
        employee corporate ownership to workers at a wide range of
        income levels, with particular focus upon non-executive
        employees;
            (2) the role of such plans in the recruitment and retention
        of skilled workers;
            (3) the role of such plans in stimulating research and
        innovation;
            (4) the effect of such plans in stimulating the economic
        growth of the United States; and
            (5) the role of such plans in strengthening the
        international competitiveness of businesses organized under the
        laws of the United States.

Summary: Stock Option Accounting Reform Act - Amends the Securities Exchange Act of 1934 to require an issuer of registered securities to show as an expense in its mandatory annual report the fair value of all stock purchase options granted to certain of its senior executive officers after December 31, 2004. Exempts small business issuers from such requirement. Amends the Securities Act of 1933 to require reporting of: (1) stock option expenses as a reduction of the total expense in the fiscal year in which they expire or are forfeited. And (2) as income any excess by which such reduction exceeds total option expenses for any fiscal year. Requires any accounting principle recognized as generally accepted by the Securities and Exchange Commission (SEC) regarding the expensing of stock purchase options to comply with this Act. Denies recognition to any such accounting principle until the Secretaries of Commerce and of Labor complete a joint study on the economic impact of mandatory expensing of all employee stock options.

A bill to require the mandatory expensing of stock options granted to executive officers, and for other purposes.


SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Sensible Estate Tax Act of 2008''.

SEC. 2. RESTORATION OF ESTATE TAX; REPEAL OF CARRYOVER BASIS.

    (a) In General.--The following provisions of the Economic Growth
and Tax Relief Reconciliation Act of 2001, and the amendments made by
such provisions, are hereby repealed:
            (1) Subtitles A and E of title V.
            (2) Subsection (d), and so much of subsection (f)(3) as
        relates to subsection (d), of section 511.
            (3) Paragraph (2) of subsection (b), and paragraph (2) of
        subsection (e), of section 521.
The Internal Revenue Code of 1986 shall be applied as if such
provisions and amendments had never been enacted.
    (b) Sunset Not To Apply.--
            (1) Subsection (a) of section 901 of the Economic Growth
        and Tax Relief Reconciliation Act of 2001 is amended by
        striking ``this Act'' and all that follows and inserting ``this
        Act (other than title V) shall not apply to taxable, plan, or
        limitation years beginning after December 31, 2010.''.
            (2) Subsection (b) of such section 901 is amended by
        striking ``, estates, gifts, and transfers''.

SEC. 3. UNIFIED CREDIT AGAINST THE ESTATE TAX.

    (a) In General.--Subsection (c) of section 2010 of the Internal
Revenue Code of 1986 (relating to applicable credit amount) is amended
by striking all that follows ``the applicable exclusion amount'' and
inserting ``. For purposes of the preceding sentence, the applicable
exclusion amount is $2,000,000.''.
    (b) Inflation Adjustment.--Subsection (c) of section 2010 of such
Code, as amended by subsection (a), is amended--
            (1) by striking ``For purposes of this section,'' and
        inserting the following:
            ``(1) In general.--For purposes of this section,'', and
            (2) by adding at the end the following new paragraph:
            ``(2) Inflation adjustment.--In the case of any decedent
        dying in a calendar year after 2008, the $2,000,000 amount in
        paragraph (1) shall be increased by an amount equal to--
                    ``(A) such dollar amount, multiplied by
                    ``(B) the cost-of-living adjustment determined
                under section 1(f)(3) for such calendar year,
                determined by substituting `2007' for `1992' in
                subparagraph (B) thereof.
        If any increase determined under the preceding sentence is not
        a multiple of $10,000, such increase shall be rounded to the
        nearest multiple of $10,000.''.
    (c) Effective Date.--The amendments made by this section shall
apply to estates of decedents dying, and gifts made, after December 31,
2008.

SEC. 4. RATES OF TAX.

    (a) In General.--The table in paragraph (1) of section 2001(c) of
the Internal Revenue Code of 1986 (relating to rate schedule) is
amended by striking the last 3 rows and inserting the following:

    Over $1,500,000 but not over
        $5,000,000.
                                        $555,800, plus 45 percent of
                                                the excess of such
                                                amount over $1,500,000.
    Over $5,000,000 but not over
        $10,000,000.
                                        $2,130,800, plus 50 percent of
                                                the excess of such
                                                amount over $5,000,000.
    Over $10,000,000...............
                                        $4,630,800, plus 55 percent of
                                                the excess of such
                                                amount over
                                                $10,000,000.
    (b) Adjustment for Inflation.--Paragraph (2) of section 2001(c) of
such Code is amended to read as follows:
            ``(2) Inflation adjustment.--In the case of any decedent
        dying in a calendar year after 2008--
                    ``(A) each minimum and maximum dollar amount for
                each rate bracket in the table in paragraph (1) shall
                be increased by an amount equal to--
                            ``(i) such dollar amount, multiplied by
                            ``(ii) the cost-of-living adjustment
                        determined under section 1(f)(3) for such
                        calendar year, determined by substituting
                        `2007' for `1992' in subparagraph (B) thereof,
                        and
                    ``(B) each of the amounts setting forth the tax
                under such table shall be adjusted to the extent
                necessary to reflect the adjustments in the rate
                brackets made by subparagraph (A).
                If any increase determined under subparagraph (A) is
                not a multiple of $10,000, such increase shall be
                rounded to the nearest multiple of $10,000.''.
    (c) Effective Date.--The amendment made by subsection (a) shall
apply to estates of decedents dying, and gifts made, after December 31,
2008.

SEC. 5. RESTORATION OF CREDIT FOR STATE DEATH TAX.

    (a) In General.--Section 2011 of the Internal Revenue Code of 1986
(relating to credit for State death taxes) is amended by striking
subsection (f).
    (b) Repeal of Deduction for State Death Taxes.--
            (1) In general.--Section 2058 of such Code (relating to
        State death taxes) is amended by adding at the end the
        following:
    ``(c) Termination.--This section shall not apply to the estates of
decedents dying after December 31, 2008.''.
            (2) Conforming amendment.--Section 2106(a)(4) of such Code
        is amended by adding at the end the following new sentence:
        ``This paragraph shall not apply to the estates of decedents
        dying after December 31, 2008.''.
    (c) Effective Date.--The amendment made by subsection (a) shall
apply to estates of decedents dying, and gifts made, after December 31,
2008.

SEC. 6. RESTORATION OF UNIFIED CREDIT AGAINST GIFT TAX.

    (a) In General.--Paragraph (1) of section 2505(a) of the Internal
Revenue Code of 1986 (relating to general rule for unified credit
against gift tax) is amended by striking ``(determined as if the
applicable exclusion amount were $1,000,000)''.
    (b) Effective Date.--The amendments made by this section shall
apply to estates of decedents dying, generation-skipping transfers, and
gifts made, after December 31, 2008.

SEC. 7. UNIFIED CREDIT INCREASED BY UNUSED UNIFIED CREDIT OF DECEASED
              SPOUSE.

    (a) In General.--Section 2010 of the Internal Revenue Code of 1986,
as amended by section 2, is amended--
            (1) by striking the last sentence of paragraph (1),
            (2) by striking paragraph (2), and
            (3) by inserting after paragraph (1) the following new
        paragraph:
            ``(2) Applicable exclusion amount.--For purposes of
        paragraph (1)--
                    ``(A) In general.--The applicable exclusion amount
                is the sum of--
                            ``(i) the basic exclusion amount, and
                            ``(ii) in the case of a surviving spouse,
                        the aggregate deceased spousal unused exclusion
                        amount.
                    ``(B) Basic exclusion amount.--
                            ``(i) In general.--For purposes of
                        subparagraph (A), the basic exclusion amount is
                        $2,000,000.
                            ``(ii) Inflation adjustment.--In the case
                        of any decedent dying in a calendar year after
                        2008, the $2,000,000 amount in clause (i) shall
                        be increased by an amount equal to--
                                    ``(I) such dollar amount,
                                multiplied by
                                    ``(II) the cost-of-living
                                adjustment determined under section
                                1(f)(3) for such calendar year by
                                substituting `calendar year 2007' for
                                `calendar year 1992' in subparagraph
                                (B) thereof.
                        If any amount as adjusted under the preceding
                        sentence is not a multiple of $100,000, such
                        amount shall be rounded to the nearest multiple
                        of $100,000.
                    ``(C) Aggregate deceased spousal unused exclusion
                amount.--For purposes of this subsection--
                            ``(i) Aggregate deceased spousal unused
                        exclusion amount.--The term `aggregate deceased
                        spousal unused exclusion amount' means the
                        lesser of--
                                    ``(I) the basic exclusion amount,
                                or
                                    ``(II) the sum of the deceased
                                spousal unused exclusion amounts of the
                                surviving spouse.
                            ``(ii) Deceased spousal unused exclusion
                        amount.--For purposes of subsection (A), the
                        term `deceased spousal unused exclusion amount'
                        means, with respect to the surviving spouse of
                        any deceased spouse dying after December 31,
                        2008, the excess (if any) of--
                                    ``(I) the applicable exclusion
                                amount of the deceased spouse, over
                                    ``(II) the amount with respect to
                                which the tentative tax is determined
                                under section 2001(b)(1) on the estate
                                of such deceased spouse.
                            ``(iii) Special rules.--
                                    ``(I) Election required.--A
                                deceased spousal unused exclusion
                                amount may not be taken into account by
                                a surviving spouse under this paragraph
                                unless the executor of the estate of
                                the deceased spouse files an estate tax
                                return on which such amount is computed
                                and makes an election on such return
                                that such amount may be so taken into
                                account. Such election, once made,
                                shall be irrevocable. No election may
                                be made under this clause if such
                                return is filed after the time
                                prescribed by law (including
                                extensions) for filing such return.
                                    ``(II) Examination of prior returns
                                after expiration of period of
                                limitations with respect to deceased
                                spousal unused exclusion amount.--
                                Notwithstanding any period of
                                limitation in section 6501, after the
                                time has expired under section 6501
                                within which a tax may be assessed
                                under chapter 11 or 12 with respect to
                                a deceased spousal unused exclusion
                                amount, the Secretary may examine a
                                return of the deceased spouse to make
                                determinations with respect to such
                                amount for purposes of carrying out
                                this subsection.
                    ``(D) Regulations.--The Secretary shall prescribe
                such regulations as may be necessary or appropriate to
                carry out this subsection.''.
    (b) Conforming Amendments.--
            (1) Paragraph (1) of section 2505(a) of such Code, as
        amended by section 5, is amended to read as follows:
            ``(1) the applicable credit amount under section 2010(c)
        which would apply if the donor died as of the end of the
        calendar year, reduced by''.
            (2) Section 2631(c) of such Code is amended by striking
        ``the applicable exclusion amount'' and inserting ``the basic
        exclusion amount''.
            (3) Section 6018(a)(1) of such Code is amended by striking
        ``applicable exclusion amount'' and inserting ``basic exclusion
        amount''.
    (c) Effective Date.--The amendments made by this section shall
apply to estates of decedents dying, generation-skipping transfers, and
gifts made, after December 31, 2008.

Summary: Sensible Estate Tax Act of 2008 - Repeals provisions of the Economic Growth and Tax Reconciliation Act of 2001 relating to the estate and gift tax. Amends the Internal Revenue Code to: (1) allow an estate tax exclusion of $2 million adjusted for inflation in calendar years after 2008, (2) revise the estate tax rates for larger estates. (3) restore the estate tax credit for state estate, inheritance, legacy, or succession taxes, (4) restore the unified credit against the gift tax. And (5) allow a surviving spouse an increase in the unified estate tax credit by the amount of any unused credit of a deceased spouse.

To amend the Internal Revenue Code of 1986 to reform the estate and gift tax.


SECTION 1. PRIVACY OF CUSTOMERS OF BROADBAND INTERNET ACCESS SERVICE
              AND OTHER TELECOMMUNICATIONS SERVICES.

    (a) In General.--Section 222 of the Communications Act of 1934 (47
U.S.C. 222) is amended--
            (1) by redesignating subsection (h) as subsection (i); and
            (2) by inserting after subsection (g) the following:
    ``(h) Privacy of Customers of Broadband Internet Access Service and
Other Telecommunications Services.--
            ``(1) Definitions.--In this subsection--
                    ``(A) the term `broadband Internet access service'
                has the meaning given the term in section 8.2 of title
                47, Code of Federal Regulations, or any successor
                regulation;
                    ``(B) the term `customer' means--
                            ``(i) a current or former subscriber to a
                        telecommunications service; or
                            ``(ii) an applicant for a
                        telecommunications service;
                    ``(C) the term `customer proprietary information'
                means, with respect to information or content that a
                telecommunications carrier acquires in connection with
                its provision of telecommunications service--
                            ``(i) individually identifiable customer
                        proprietary network information;
                            ``(ii) personally identifiable information;
                        and
                            ``(iii) content of communications;
                    ``(D) the term `opt-in approval' means a method for
                a telecommunications carrier to obtain customer consent
                to use, disclose, or permit access to the customer's
                customer proprietary information that requires that the
                telecommunications carrier obtain from the customer
                affirmative, express consent allowing the requested
                usage, disclosure, or access to the customer
                proprietary information after the customer is provided
                appropriate notification of the carrier's request;
                    ``(E) the term `sensitive customer proprietary
                information' includes--
                            ``(i) financial information;
                            ``(ii) health information;
                            ``(iii) information pertaining to children;
                            ``(iv) Social Security numbers;
                            ``(v) precise geolocation information;
                            ``(vi) content of communications;
                            ``(vii) call detail information;
                            ``(viii) web browsing history, application
                        usage history, and the functional equivalents
                        of either; and
                            ``(ix) any other customary proprietary
                        information that the Commission determines to
                        be sensitive; and
                    ``(F) the term `telecommunications service'
                includes broadband Internet access service and
                interconnected VoIP service.
            ``(2) Regulations.--In carrying out this section, the
        Commission shall promulgate regulations to protect the privacy
        of customers of telecommunications service.
            ``(3) Contents.--In promulgating regulations under
        paragraph (2), the Commission shall--
                    ``(A) require a telecommunications carrier to
                notify a customer about the collection, use, and
                sharing of his or her customer proprietary information,
                including by--
                            ``(i) notifying the customer about the
                        types of customer proprietary information the
                        carrier collects;
                            ``(ii) specifying how and for what purposes
                        the carrier uses and shares customer
                        proprietary information; and
                            ``(iii) identifying the types of entities
                        with which the carrier shares customer
                        proprietary information;
                    ``(B) require a telecommunications carrier to--
                            ``(i) provide the notification under
                        subparagraph (A) to a customer at the point of
                        sale, before the purchase of service; and
                            ``(ii) update a customer when the carrier
                        makes a material change to a privacy policy,
                        including any of the policies described in
                        subparagraph (A);
                    ``(C) require a telecommunications carrier to
                obtain opt-in approval from a customer to use and share
                his or her sensitive customer proprietary information;
                    ``(D) implement strong protection for de-identified
                customary proprietary information, to prevent re-
                identifying such information;
                    ``(E) prohibit a telecommunications carrier from
                refusing to serve a customer who doesn't consent to the
                use and sharing of his or her customer proprietary
                information for commercial purposes (commonly known as
                `take-it-or-leave-it offers'); and
                    ``(F) require a telecommunications carrier to--
                            ``(i) develop reasonable data security
                        practices; and
                            ``(ii) notify customers if a breach of
                        security has occurred.''.
    (b) Deadline.--The Federal Communications Commission--
            (1) not later than 180 days after the date of enactment of
        this Act, shall promulgate regulations under section 222(h)(2)
        of the Communications Act of 1934 (47 U.S.C. 222(h)(2)), as
        added by subsection (a); and
            (2) shall ensure that the regulations promulgated under
        paragraph (1) take effect not later than 180 days after the
        date of promulgation.

Summary: This bill amends the Communications Act of 1934 to direct the Federal Communications Commission (FCC) to promulgate customer privacy regulations that require telecommunications services, broadband Internet access services, and interconnected VoIP services to: notify a customer about the collection, use, and sharing of customer proprietary information that is individually identifiable customer proprietary network information, personally identifiable information, or the content of communications. Obtain opt-in approval from a customer to use and share sensitive customer proprietary information about financial or health information, children, Social Security numbers, precise geolocation, content of communications, call detail information, web browsing or application usage history, or other customary proprietary information that the FCC determines to be sensitive. Not refuse to serve a customer who does not consent to the use and sharing of customer proprietary information for commercial purposes under a take-it-or-leave-it offer, develop data security practices. And notify customers of security breaches. The FCC must also implement strong protection for de-identified customary proprietary information to prevent re-identifying such information.

A bill to establish privacy protections for customers of broadband Internet access service and other telecommunications services.


SECTION 1. INCREASE IN MAXIMUM TAXABLE INCOME FOR 15 PERCENT RATE
              BRACKET.

    (a) In General.--Section 1(f) of the Internal Revenue Code of 1986
(relating to adjustments in tax tables so that inflation will not
result in tax increases) is amended--
            (1) in paragraph (2)--
                    (A) by redesignating subparagraphs (B) and (C) as
                subparagraphs (C) and (D),
                    (B) by inserting after subparagraph (A) the
                following:
                    ``(B) for taxable years beginning in any calendar
                year after 1999 and before 2010--
                            ``(i) in the case of the table contained in
                        subsection (c), by increasing the maximum
                        dollar amount for the 15 percent rate bracket
                        and the minimum dollar amount for the 28
                        percent rate bracket otherwise determined under
                        subparagraph (A) by the applicable dollar
                        amount for such calendar year, and
                            ``(ii) in the case of the tables contained
                        in subsections (a), (b), and (d), by increasing
                        the maximum and minimum dollar amounts for the
                        15 and 28 percent rate brackets, respectively,
                        by an amount which maintains the same
                        proportionate differential in such dollar
                        amounts among the tables in subsections (a),
                        (b), (c), and (d) as existed in calendar year
                        1999,'', and
                    (C) by striking ``subparagraph (A)'' in
                subparagraph (C) (as so redesignated) and inserting
                ``subparagraphs (A) and (B)'', and
            (2) by adding at the end the following:
            ``(8) Applicable dollar amount.--
                    ``(A) In general.--For purposes of paragraph
                (2)(B), the applicable dollar amount for any calendar
                year is equal to the applicable percentage of the
                excess of--
                            ``(i) the contribution and benefit base (as
                        determined under section 230 of the Social
                        Security Act) for the calendar year, over
                            ``(ii) the maximum dollar amount for the 15
                        percent rate bracket for the table contained in
                        subsection (c) for the calendar year otherwise
                        determined under paragraph (2)(A).
                    ``(B) Applicable percentage.--For purposes of
                subparagraph (A), the applicable percentage for any
                calendar year shall be determined as follows:

                                                             Applicable
``Calendar year:                                            Percentage:
    2000..........................................                  10
    2001..........................................                  20
    2002..........................................                  30
    2003..........................................                  40
    2004..........................................                  50
    2005..........................................                  60
    2006..........................................                  70
    2007..........................................                  80
    2008..........................................                  90
    2009..........................................               100.''
    (b) Effective Date.--The amendments made by this section shall take
effect on the date of the enactment of this Act.

SEC. 2. USE OF NATIONAL AVERAGE WAGE INDEX FOR COST-OF-LIVING
              ADJUSTMENTS.

    (a) In General.--Section 1(f) of the Internal Revenue Code of 1986
(relating to adjustments in tax tables so that inflation will not
result in tax increases) is amended by striking paragraphs (3), (4),
and (5) and inserting the following:
            ``(3) Cost-of-living adjustment.--For purposes of paragraph
        (2), the cost-of-living adjustment for any calendar year is the
        percentage (if any) by which--
                    ``(A) the national average wage index for the
                preceding calendar year, exceeds
                    ``(B) such index for calendar year 1998.
            ``(4) National average wage index for any calendar year.--
        For purposes of paragraph (3), the national average wage index
        for any calendar year is the average of such index as of
the close of the 12-month period ending on August 31 of such calendar
year.
            ``(5) National average wage index.--For purposes of this
        subsection, the term `national average wage index' has the
        meaning given such term by section 209(k)(1) of the Social
        Security Act, as in effect on the date of the enactment of this
        paragraph.''
    (b) Conforming Amendments to Tax Tables To Restart Inflation
Adjustment.--Section 1 of the Internal Revenue Code of 1986 (relating
to tax imposed) is amended by striking subsections (a) through (e) and
inserting the following:
    ``(a) Married Individuals Filing Joint Returns and Surviving
Spouses.--There is hereby imposed on the taxable income of--
            ``(1) every married individual (as defined in section 7703)
        who makes a single return jointly with his spouse under section
        6013, and
            ``(2) every surviving spouse (as defined in section 2(a)),
a tax determined in accordance with the following table:

``If taxable income is:             The tax is:
    Not over $43,050...............
                                        15% of taxable income.
    Over $43,050 but not over
        $104,050.
                                        $6,457.50, plus 28% of the
                                                excess over $43,050.
    Over $104,050 but not over
        $158,550.
                                        $23,537.50, plus 31% of the
                                                excess over $104,050.
    Over $158,550 but not over
        $283,150.
                                        $40,432.50, plus 36% of the
                                                excess over $158,550.
    Over $283,150..................
                                        $85,288.50 plus 39.6% of the
                                                excess over $283,150.
    ``(b) Heads of Households.--There is hereby imposed on the taxable
income of every head of a household (as defined in section 2(b)) a tax
determined in accordance with the following table:

``If taxable income is:             The tax is:
    Not over $34,550...............
                                        15% of taxable income.
    Over $34,550 but not over
        $89,150.
                                        $5,182.50, plus 28% of the
                                                excess over $34,550.
    Over $89,150 but not over
        $144,400.
                                        $20,470.50, plus 31% of the
                                                excess over $89,150.
    Over $144,400 but not over
        $283,150.
                                        $37,598, plus 36% of the excess
                                                over $144,400.
    Over $283,150..................
                                        $87,548 plus 39.6% of the
                                                excess over $283,150.
    ``(c) Unmarried Individuals (Other Than Surviving Spouses and Heads
of Households).--There is hereby imposed on the taxable income of every
individual (other than a married individual (as defined in section
7703) filing a joint return or a separate return, a surviving spouse as
defined in section 2(a), or a head of household as defined in section
2(b)) a tax determined in accordance with the following table:

``If taxable income is:             The tax is:
    Not over $25,750...............
                                        15% of taxable income.
    Over $25,750 but not over
        $62,450.
                                        $3,862.50, plus 28% of the
                                                excess over $25,450.
    Over $62,450 but not over
        $130,250.
                                        $14,138.50, plus 31% of the
                                                excess over $62,450.
    Over $130,250 but not over
        $283,150.
                                        $35,156.50, plus 36% of the
                                                excess over $130,250.
    Over $283,150..................
                                        $90,200.50 plus 39.6% of the
                                                excess over $283,150.
    ``(d) Married Individuals Filing Separate Returns.--There is hereby
imposed on the taxable income of every married individual (as defined
in section 7703) who does not make a single return jointly with his
spouse under section 6013, a tax determined in accordance with the
following table:

``If taxable income is:             The tax is:
    Not over $21,175...............
                                        15% of taxable income.
    Over $21,175 but not over
        $52,025.
                                        $3,228.75, plus 28% of the
                                                excess over $21,175.
    Over $52,025 but not over
        $79,275.
                                        $11,768.75, plus 31% of the
                                                excess over $52,025.
    Over $79,275 but not over
        $141,575.
                                        $20,216.20, plus 36% of the
                                                excess over $79,275.
    Over $141,575..................
                                        $42,644.25 plus 39.6% of the
                                                excess over $141,575.
    ``(e) Estates and Trusts.--There is hereby imposed on the taxable
income of--
            ``(1) every estate, and
            ``(2) every trust,
taxable under this subsection a tax determined in accordance with the
following table:

``If taxable income is:             The tax is:
    Not over $1,750................
                                        15% of taxable income.
    Over $1,750 but not over $4,050
                                        $262.50, plus 28% of the excess
                                                over $1,750.
    Over $4,050 but not over $6,200
                                        $906.50, plus 31% of the excess
                                                over $4,050.
    Over $6,200 but not over $8,450
                                        $1,573, plus 36% of the excess
                                                over $6,200.
    Over $8,450....................
                                        $2,383, plus 39.6% of the
                                                excess over $8,450.''
    (c) Inflation Adjustment To Apply in Determining Rates for 2000.--
Section 1(f) of the Internal Revenue Code of 1986 is amended--
            (1) by striking ``1993'' in paragraph (1) and inserting
        ``1999'',
            (2) by striking ``1992'' in paragraph (3)(B) and inserting
        ``1998'', and
            (3) by striking paragraph (7).
    (d) Conforming Amendments.--
            (1) The following provisions of the Internal Revenue Code
        of 1986 are each amended by striking ``1992'' and inserting
        ``1998'' each place it appears:
                    (A) Section 25A(h).
                    (B) Section 32(j)(1)(B).
                    (C) Section 41(e)(5)(C).
                    (D) Section 59(j)(2)(B).
                    (E) Section 63(c)(4)(B).
                    (F) Section 68(b)(2)(B).
                    (G) Section 135(b)(2)(B)(ii).
                    (H) Section 151(d)(4).
                    (I) Section 220(g)(2).
                    (J) Section 221(g)(1)(B).
                    (K) Section 512(d)(2)(B).
                    (L) Section 513(h)(2)(C)(ii).
                    (M) Section 685(c)(3)(B).
                    (N) Section 877(a)(2).
                    (O) Section 911(b)(2)(D)(ii)(II).
                    (P) Section 2032A(a)(3)(B).
                    (Q) Section 2503(b)(2)(B).
                    (R) Section 2631(c)(1)(B).
                    (S) Section 4001(e)(1)(B).
                    (T) Section 4261(e)(4)(A)(ii).
                    (U) Section 6039F(d).
                    (V) Section 6323(i)(4)(B).
                    (W) Section 6601(j)(3)(B).
                    (X) Section 7430(c)(1).
            (2) Subclause (II) of section 42(h)(6)(G)(i) of such Code
        is amended by striking ``1987'' and inserting ``1998''.
            (3) Clause (ii) of section 132(f)(6)(A) of such Code, as
        amended by section 9010(b)(1) of the Transportation Equity Act
        for the 21st Century, is amended by striking ``, by
        substituting `calendar year 1998' for `calendar year 1992'.''
        and by inserting a period.
            (4) Subparagraph (A) of section 132(f)(6) of such Code, as
        amended by section 9010(c)(2) of the Transportation Equity Act
        for the 21st Century, is amended by striking clause (ii) and
        all that follows through ``paragraph (2)(A).'' and inserting:
                            ``(ii) the cost-of-living adjustment
                        determined under section 1(f)(3) for the
                        calendar year in which the taxable year begins.
                        In the case of any taxable year beginning in a
                        calendar year after 2002, section 1(f)(3) shall
                        be applied by substituting `calendar year 2001'
                        for `calendar year 1998' for purposes of
                        adjusting the dollar amount contained in
                        paragraph (2)(A).''.
            (5) Subparagraph (B) of section 6334(g)(1) of such Code is
        amended by striking ``, by substituting `calendar year 1998'
        for `calendar year 1992' in subparagraph (B) thereof''.
    (e) Additional Conforming Amendments.--
            (1) Section 42(h)(6)(G)(ii) of the Internal Revenue Code of
        1986 is amended--
                    (A) by striking ``the CPI'' the first and third
                places it appears and inserting ``the national average
                wage index'',
                    (B) by striking ``the CPI'' the second place it
                appears and inserting ``such index'', and
                    (C) by striking ``section 1(f)(4)'' and inserting
                ``section 1(f)(5)''.
            (2) Section 162(p)(2) of such Code is amended by striking
        ``(as defined in section 1(f)(5))''.
            (3) Section 213(d)(10)(B)(ii)(I) of such Code is amended by
        striking ``(as defined in section 1(f)(5))''.
            (4) The last sentence of section 936(j)(4)(C) of such Code
        is amended by inserting ``, as in effect for taxable years
        beginning before January 1, 1999'' before the period.
    (f) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the
        amendments made by this section shall apply to taxable years
        beginning after December 31, 1998.
            (2) Conforming amendment.--The amendment made by subsection
        (d)(4) shall apply to taxable years beginning after December
        31, 2001.

SEC. 3. INFLATION ADJUSTMENT FOR INDIVIDUAL ALTERNATIVE MINIMUM TAX
              EXEMPTION AMOUNTS.

    (a) In General.--Section 55(d) of the Internal Revenue Code of 1986
(relating to exemption amount) is amended by adding at the end the
following:
            ``(4) Inflation adjustment.--
                    ``(A) In general.--In the case of any taxable year
                beginning after 1999, each of the dollar amounts
                contained in paragraph (1) and paragraph (3) (other
                than subparagraph (A)(ii) thereof) shall be increased
                by an amount equal to--
                            ``(i) such dollar amount, multiplied by
                            ``(ii) the cost-of-living adjustment
                        determined under section 1(f)(3) for such
                        calendar year.
                    ``(B) Rounding.--If any increase determined under
                subparagraph (A) is not a multiple of $50, such
                increase shall be rounded to the nearest multiple of
                $50.''
    (b) Conforming Amendment.--Section 55(d)(3)(A) of the Internal
Revenue Code of 1986 is amended to read as follows:
                    ``(A) $150,000 in the case of a taxpayer described
                in--
                            ``(i) paragraph (1)(A), or
                            ``(ii) paragraph (2),''.
    (c) Effective Dates.--
            (1) In general.--The amendment made by subsection (a) shall
        apply to taxable years beginning after December 31, 1999.
            (2) Conforming amendment.--The amendment made by subsection
        (b) shall apply to taxable years beginning after December 31,
        1998.

Summary: Amends the Internal Revenue Code to: (1) increase the maximum taxable income for the 15 percent rate bracket. (2) replace the Consumer Price Index with the national average wage index for purposes of cost-of-living adjustments. And (3) adjust for inflation the exemption amounts used in calculating the alternative minimum tax.

A bill to amend the Internal Revenue Code of 1986 to increase the maximum taxable income for the 15 percent rate bracket, to replace the Consumer Price Index with the national average wage index for purposes of cost-of-living adjustments, to lessen the impact of the noncorporate alternative minimum tax, and for other purposes.


That this Act may be
cited as the ``Line-Item Rescission Act of 1993''.

SEC. 2. EXPEDITED CONSIDERATION OF CERTAIN PROPOSED RESCISSIONS.

    (a) In General.--Part B of title X of the Congressional Budget and
Impoundment Control Act of 1974 is amended by redesignating sections
1013 through 1017 as sections 1014 through 1018, respectively, and
inserting after section 1012 the following new section:

       ``expedited consideration of certain proposed rescissions

    ``Sec. 1013. (a) Transmittal of Special Message.--The President
may, on the same calendar day the President approves any appropriation
bill, transmit to both Houses of the Congress, for consideration in
accordance with this section, one or more special messages proposing to
rescind all or part of any item of budget authority provided in the
appropriation bill.
    ``(b) Contents of Special Message.--
            ``(1) No special message may be considered in accordance
        with this section if the special message proposes to rescind
        more than one item of budget authority.
            ``(2) Each special message transmitted under subsection (a)
        shall specify, with respect to the item of budget authority (or
        part thereof) proposed by the message to be rescinded, the
        matters referred to in paragraphs (1) through (5) of section
        1012(a).
            ``(3) Each special message transmitted under subsection (a)
        shall be accompanied by a draft bill or joint resolution that
        would, if enacted, rescind the budget authority proposed to be
        rescinded.
    ``(c) Procedures.--
            ``(1)(A) On the day on which a special message proposing to
        rescind an item of budget authority is transmitted to the House
        of Representatives and the Senate under subsection (a), the
        draft bill or joint resolution accompanying such special
        message shall be introduced (by request) by the majority leader
        of the House of the Congress in which the appropriation Act
        providing the budget authority originated. If such House is not
        in session on the day on which a special message is
        transmitted, the draft bill or joint resolution shall be
        introduced in such House, as provided in the preceding
        sentence, on the first day thereafter on which such House is in
        session.
            ``(B) A draft bill or joint resolution introduced in the
        House of Representatives or the Senate pursuant to subparagraph
        (A) shall be referred to the Committee on Appropriations of
        such House. The committee shall report the bill or joint
        resolution without substantive revision (and with or without
        recommendation) not later than 20 calendar days of continuous
        session of the Congress after the date on which the bill or
        joint resolution is introduced. A committee failing to report a
        bill or joint resolution within the 20-day period referred to
        in the preceding sentence shall be automatically discharged
        from consideration of the bill or joint resolution, and the
        bill or joint resolution shall be placed on the appropriate
        calendar.
            ``(C) A vote on final passage of a bill or joint resolution
        introduced in a House of the Congress pursuant to subparagraph
        (A) shall be taken on or before the close of the 30th calendar
        day of continuous session of the Congress after the date of the
        introduction of the bill or joint resolution in such House. If
        the bill or joint resolution is agreed to, the Clerk of the
        House of Representatives (in the case of a bill or joint
        resolution agreed to in the House of Representatives) or the
        Secretary of the Senate (in the case of a bill or joint
        resolution agreed to in the Senate) shall cause the bill or
        joint resolution to be engrossed, certified, and transmitted to
        the other House of the Congress on the same calendar day on
        which the bill or joint resolution is agreed to.
            ``(2)(A) A bill or joint resolution transmitted to the
        House of Representatives or the Senate pursuant to subparagraph
        (C) of paragraph (1) shall be referred to the Committee on
        Appropriations of such House. The committee shall report the
        bill or joint resolution without substantive revision (and with
        or without recommendation) not later than 20 calendar days of
        continuous session of the Congress after the bill or joint
        resolution is transmitted to such House. A committee failing to
        report the bill or joint resolution within the 20-day period
        referred to in the preceding sentence shall be automatically
        discharged from consideration of the bill or joint resolution,
        and the bill or joint resolution shall be placed upon the
        appropriate calendar.
            ``(B) A vote on final passage of a bill or joint resolution
        transmitted to a House of the Congress pursuant to subparagraph
        (C) of paragraph (1) shall be taken on or before the close of
        the 30th calendar day of continuous session of the Congress
        after the date on which the bill or joint resolution is
        transmitted to such House. If the bill or joint resolution is
        agreed to in such House, the Clerk of the House of
        Representatives (in the case of a bill or joint resolution
        agreed to in the House of Representatives) or the Secretary of
        the Senate (in the case of a bill or joint resolution agreed to
        in the Senate) shall cause the engrossed bill or joint
        resolution to be returned to the House in which the bill or
        joint resolution originated, together with a statement of the
        action taken by the House acting under this paragraph.
            ``(3)(A) A motion in the House of Representatives to
        proceed to the consideration of a bill or joint resolution
        under this section shall be highly privileged and not
        debatable. An amendment to the motion shall not be in order,
        nor shall it be in order to move to reconsider the vote by
        which the motion is agreed to or disagreed to.
            ``(B) Debate in the House of Representatives on a bill or
        joint resolution under this section shall be limited to not
        more than 10 hours, which shall be divided equally between
        those favoring and those opposing the bill or joint resolution.
        A motion further to limit debate shall not be debatable. It
        shall not be in order to move to recommit a bill or joint
        resolution under this section or to move to reconsider the vote
        by which the bill or joint resolution is agreed to or disagreed
        to.
            ``(C) Motions to postpone, made in the House of
        Representatives with respect to the consideration of a bill or
        joint resolution under this section, and motions to proceed to
        the consideration of other business, shall be decided without
        debate.
            ``(D) All appeals from the decisions of the Chair relating
        to the application of the Rules of the House of Representatives
        to the procedure relating to a bill or joint resolution under
        this section shall be decided without debate.
            ``(E) Except to the extent specifically provided in the
        preceding provisions of this subsection, consideration of a
        bill or joint resolution under this section shall be governed
        by the Rules of the House of Representatives applicable to
        other bills and joint resolutions in similar circumstances.
            ``(4)(A) A motion in the Senate to proceed to the
        consideration of a bill or joint resolution under this section
        shall be privileged and not debatable. An amendment to the
        motion shall not be in order, nor shall it be in order to move
        to reconsider the vote by which the motion is agreed to or
        disagreed to.
            ``(B) Debate in the Senate on a bill or joint resolution
        under this section, and all debatable motions and appeals in
        connection therewith, shall be limited to not more than 10
        hours. The time shall be equally divided between, and
        controlled by, the majority leader and the minority leader or
        their designees.
            ``(C) Debate in the Senate on any debatable motion or
        appeal in connection with a bill or joint resolution under this
        section shall be limited to not more than 1 hour, to be equally
        divided between, and controlled by, the mover and the manager
        of the bill or joint resolution, except that in the event the
        manager of the bill or joint resolution is in favor of any such
        motion or appeal, the time in opposition thereto, shall be
        controlled by the minority leader or his designee. Such
        leaders, or either of them, may, from time under their control
        on the passage of a bill or joint resolution, allot additional
        time to any Senator during the consideration of any debatable
        motion or appeal.
            ``(D) A motion in the Senate to further limit debate on a
        bill or joint resolution under this section is not debatable. A
        motion to recommit a bill or joint resolution under this
        section is not in order.
    ``(d) Amendments Prohibited.--No amendment to a bill or joint
resolution considered under this section shall be in order in either
the House of Representatives or the Senate. No motion to suspend the
application of this subsection shall be in order in either House, nor
shall it be in order in either House for the Presiding Officer to
entertain a request to suspend the application of this subsection by
unanimous consent.
    ``(e) Requirement to Make Available for Obligation.--Any item of
budget authority proposed to be rescinded in a special message
transmitted to the Congress in accordance with subsection (a) shall be
made available for obligation unless, not more than 60 days after the
transmittal of the special message, both Houses of the Congress have
agreed to the bill or joint resolution accompanying such special
message.
    ``(f) Definitions.--For purposes of this section, the term--
            ``(1) `item' means any numerically expressed amount of
        budget authority set forth in an appropriation bill;
            ``(2) `appropriation bill' means any general or special
        appropriation bill, and any bill or joint resolution making
        supplemental, deficiency, or continuing appropriations; and
            ``(3) `appropriation Act' means any appropriation bill that
        has been approved by the President and become law.''.
    (b) Conforming Amendments.--
            (1) Section 1011(5) of the Congressional Budget and
        Impoundment Control Act of 1974 is amended--
                    (A) by striking out ``1012, and'' and inserting in
                lieu thereof ``1012, the 20-day periods referred to in
                paragraphs (1)(B) and (2)(A) of section 1013(c), the
                60-day period referred to in section 1013(e) and'';
                    (B) by striking out ``1012 during'' and inserting
                in lieu thereof ``1012 or 1013 during'';
                    (C) by striking out ``of 45'' and inserting in lieu
                thereof ``of the applicable number of''; and
                    (D) by striking out ``45-day period referred to in
                paragraph (3) of this section and in section 1012'' and
                inserting in lieu thereof ``period or periods of time
                applicable under such section''.
            (2)(A) Section 1011 of such Act is further amended--
                    (i) in paragraph (4) by striking out ``1013'' and
                inserting in lieu thereof ``1014''; and
                    (ii) in paragraph (5)--
                            (I) by striking out ``1016'' and inserting
                        in lieu thereof ``1017''; and
                            (II) by striking out ``1017(b)(1)'' and
                        inserting in lieu thereof ``1018(b)(1)''.
            (B) Section 1012 of such Act is amended--
                    (i) by striking out ``1012 or 1013'' each place it
                appears and inserting in lieu thereof ``1012, 1013, or
                1014'';
                    (ii) in subsection (b)(1) by striking out ``1012''
                and inserting in lieu thereof ``1012 or 1013'';
                    (iii) in subsection (b)(2) by striking out ``1013''
                and inserting in lieu thereof ``1014''; and
                    (iv) in subsection (e)(2)--
                            (I) by striking out ``and'' at the end of
                        subparagraph (A),
                            (II) by redesignating subparagraph (B) as
                        subparagraph (C),
                            (III) by striking out ``1013'' in
                        subparagraph (C) (as so redesignated), and
                            (IV) by inserting after subparagraph (A)
                        the following new subparagraph:
                    ``(B) he has transmitted a special message under
                section 1013 with respect to a proposed rescission;
                and''.
            (C) Section 1015 of such Act is amended by striking out
        ``1012 or 1013'' each place it appears and inserting in lieu
        thereof ``1012, 1013, or 1014''.
            (D) Section 1016 of such Act is amended by striking out
        ``or 1013(b)'' and inserting in lieu thereof ``, 1013(e), or
        1014(b)''.
            (E) Section 1012(b) of such Act is amended by adding at the
        end thereof the following new sentence: ``The preceding
        sentence shall not apply to any item of budget authority
        proposed by the President to be rescinded under this section
        that the President has also proposed to rescind under section
        1013 and with respect to which the 60-day period referred to in
        subsection (e) of such section has not expired.''.
            (3) The table of sections for subpart B of title X of the
        Congressional Budget and Impoundment Control Act of 1974 is
        amended--
                    (A) by redesignating the items relating to sections
                1013 through 1017 as items relating to sections 1014
                through 1018; and
                    (B) by inserting after the item relating to section
                1012 the following new item:

``Sec. 1013. Expedited consideration of certain proposed
                            rescissions.''.

SEC. 3. APPLICATION.

    The amendments made by this section shall apply to items of budget
authority (as defined in subsection (f)(1) of section 1013 of the
Congressional Budget and Impoundment Control Act of 1974, as added by
section 2 of this Act) provided by appropriation Acts (as defined in
subsection (f)(3) of such section) that become law after the date of
the enactment of this Act.

Summary: Line-Item Rescission Act of 1993 - Amends the Congressional Budget and Impoundment Control Act of 1974 to allow the President to transmit to both Houses of the Congress, for expedited consideration, one or more special messages proposing to rescind all or part of any item of budget authority provided in an appropriation bill. Requires that such special message be transmitted on the same calendar day the President approves the appropriation bill and be accompanied by a draft bill or joint resolution that would, if enacted, rescind the budget authority proposed to be rescinded. Sets forth House and Senate procedures for the expedited consideration of such a proposal. Requires the item of budget authority proposed to be rescinded to be made available for obligation unless both Houses adopt the bill rescinding such item within 60 days.

Line-Item Rescission Act of 1993