Calendar No. 212

106TH CONGRESS

1ST SESSION S. 1387

A BILL

To extend certain trade preferences to sub-Saharan

African countries.

JULY 16, 1999

Read twice and placed on the calendar
II

Calendar No. 212

106TH CONGRESS

1ST SESSION S. 1387

To extend certain trade preferences to sub-Saharan African countries.

IN THE SENATE OF THE UNITED STATES

JULY 16, 1999

Mr. ROTH, from the Committee on Finance, reported the following original

bill; which was read twice and placed on the calendar

A BILL

To extend certain trade preferences to sub-Saharan African

countries.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘African Growth and Opportunity Act’’.

6 (b) TABLE OF CONTENTS.—The table of contents for

7 this Act is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. Findings.

Sec. 3. Statement of policy.

Sec. 4. Sub-Saharan Africa defined.
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TITLE I—EXTENSION OF CERTAIN TRADE BENEFITS TO SUBSAHARAN AFRICA

Sec. 101. Eligibility for certain benefits.

Sec. 102. Treatment of certain textiles and apparel.

Sec. 103. United States-sub-Saharan African trade and economic cooperation

forum.

Sec. 104. United States-sub-Saharan Africa free trade area.

Sec. 105. Reporting requirement.

TITLE II—REVENUE PROVISIONS

Sec. 201. Limitation on use of non-accrual experience method of accounting.

Sec. 202. Returns relating to cancellations of indebtedness by organizations

lending money.

1 SEC. 2. FINDINGS.

2 Congress finds that—

3 (1) it is in the mutual interest of the United

4 States and the countries of sub-Saharan Africa to

5 promote stable and sustainable economic growth and

6 development in sub-Saharan Africa;

7 (2) the 48 countries of sub-Saharan Africa

8 form a region richly endowed with both natural and

9 human resources;

10 (3) sub-Saharan Africa represents a region of

11 enormous economic potential and of enduring polit12 ical significance to the United States;

13 (4) the region has experienced a rise in both

14 economic development and political freedom as coun15 tries in sub-Saharan Africa have taken steps toward

16 liberalizing their economies and encouraged broader

17 participation in the political process;
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1 (5) the countries of sub-Saharan Africa have

2 made progress toward regional economic integration

3 that can have positive benefits for the region;

4 (6) despite those gains, the per capita income

5 in sub-Saharan Africa averages less than $500 an6 nually;

7 (7) United States foreign direct investment in

8 the region has fallen in recent years and the sub-Sa9 haran African region receives only minor inflows of

10 direct investment from around the world;

11 (8) trade between the United States and sub12 Saharan Africa, apart from the import of oil, re13 mains an insignificant part of total United States

14 trade;

15 (9) trade and investment, as the American ex16 perience has shown, can represent powerful tools

17 both for economic development and for building a

18 stable political environment in which political free19 dom can flourish;

20 (10) increased trade and investment flows have

21 the greatest impact in an economic environment in

22 which trading partners eliminate barriers to trade

23 and capital flows and encourage the development of

24 a vibrant private sector that offers individual Afri-
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1 can citizens the freedom to expand their economic

2 opportunities and provide for their families;

3 (11) offering the countries of sub-Saharan Afri4 ca enhanced trade preferences will encourage both

5 higher levels of trade and direct investment in sup6 port of the positive economic and political develop7 ments under way throughout the region; and

8 (12) encouraging the reciprocal reduction of

9 trade and investment barriers in Africa will enhance

10 the benefits of trade and investment for the region

11 as well as enhance commercial and political ties be12 tween the United States and sub-Saharan Africa.

13 SEC. 3. STATEMENT OF POLICY.

14 Congress supports—

15 (1) encouraging increased trade and investment

16 between the United States and sub-Saharan Africa;

17 (2) reducing tariff and nontariff barriers and

18 other obstacles to sub-Saharan African and United

19 States trade;

20 (3) expanding United States assistance to sub21 Saharan Africa’s regional integration efforts;

22 (4) negotiating reciprocal and mutually bene23 ficial trade agreements, including the possibility of

24 establishing free trade areas that serve the interests
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1 of both the United States and the countries of sub2 Saharan Africa;

3 (5) focusing on countries committed to account4 able government, economic reform, and the eradi5 cation of poverty;

6 (6) strengthening and expanding the private

7 sector in sub-Saharan Africa;

8 (7) supporting the development of civil societies

9 and political freedom in sub-Saharan Africa; and

10 (8) establishing a United States-Sub-Saharan

11 African Economic Cooperation Forum.

12 SEC. 4. SUB-SAHARAN AFRICA DEFINED.

13 In this Act, the terms ‘‘sub-Saharan Africa’’, ‘‘sub14 Saharan African country’’, ‘‘country in sub-Saharan Afri15 ca’’, and ‘‘countries in sub-Saharan Africa’’ refer to the

16 following:

17 (1) Republic of Angola (Angola).

18 (2) Republic of Botswana (Botswana).

19 (3) Republic of Burundi (Burundi).

20 (4) Republic of Cape Verde (Cape Verde).

21 (5) Republic of Chad (Chad).

22 (6) Democratic Republic of Congo.

23 (7) Republic of the Congo (Congo).

24 (8) Republic of Djibouti (Djibouti).

25 (9) State of Eritrea (Eritrea).
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1 (10) Gabonese Republic (Gabon).

2 (11) Republic of Ghana (Ghana).

3 (12) Republic of Guinea-Bissau (Guinea4 Bissau).

5 (13) Kingdom of Lesotho (Lesotho).

6 (14) Republic of Madagascar (Madagascar).

7 (15) Republic of Mali (Mali).

8 (16) Republic of Mauritius (Mauritius).

9 (17) Republic of Namibia (Namibia).

10 (18) Federal Republic of Nigeria (Nigeria).

11 (19) Democratic Republic of Sao Tome and

12 Principe (Sao Tome and Principe).

13 (20) Republic of Sierra Leone (Sierra Leone).

14 (21) Somalia.

15 (22) Kingdom of Swaziland (Swaziland).

16 (23) Republic of Togo (Togo).

17 (24) Republic of Zimbabwe (Zimbabwe).

18 (25) Republic of Benin (Benin).

19 (26) Burkina Faso (Burkina).

20 (27) Republic of Cameroon (Cameroon).

21 (28) Central African Republic.

22 (29) Federal Islamic Republic of the Comoros

23 (Comoros).

24 (30) Republic of Cote d’Ivoire (Cote d’Ivoire).
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1 (31) Republic of Equatorial Guinea (Equatorial

2 Guinea).

3 (32) Ethiopia.

4 (33) Republic of the Gambia (Gambia).

5 (34) Republic of Guinea (Guinea).

6 (35) Republic of Kenya (Kenya).

7 (36) Republic of Liberia (Liberia).

8 (37) Republic of Malawi (Malawi).

9 (38) Islamic Republic of Mauritania (Mauri10 tania).

11 (39) Republic of Mozambique (Mozambique).

12 (40) Republic of Niger (Niger).

13 (41) Republic of Rwanda (Rwanda).

14 (42) Republic of Senegal (Senegal).

15 (43) Republic of Seychelles (Seychelles).

16 (44) Republic of South Africa (South Africa).

17 (45) Republic of Sudan (Sudan).

18 (46) United Republic of Tanzania (Tanzania).

19 (47) Republic of Uganda (Uganda).

20 (48) Republic of Zambia (Zambia).
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1 TITLE I—EXTENSION OF CER2 TAIN TRADE BENEFITS TO

3 SUB-SAHARAN AFRICA

4 SEC. 101. ELIGIBILITY FOR CERTAIN BENEFITS.

5 (a) IN GENERAL.—Title V of the Trade Act of 1974

6 is amended by inserting after section 506 the following

7 new section:

8 ‘‘SEC. 506A. DESIGNATION OF SUB-SAHARAN AFRICAN

9 COUNTRIES FOR CERTAIN BENEFITS.

10 ‘‘(a) AUTHORITY TO DESIGNATE.—

11 ‘‘(1) IN GENERAL.—Notwithstanding any other

12 provision of law, the President is authorized to des13 ignate a country listed in section 4 of the African

14 Growth and Opportunity Act as a beneficiary sub15 Saharan African country eligible for the benefits de16 scribed in subsection (b), if the President determines

17 that the country—

18 ‘‘(A) has established, or is making con19 tinual progress toward establishing—

20 ‘‘(i) a market-based economy, where

21 private property rights are protected and

22 the principles of an open, rules-based trad23 ing system are observed;

24 ‘‘(ii) a democratic society, where the

25 rule of law, political freedom, participatory
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1 democracy, and the right to due process

2 and a fair trial are observed;

3 ‘‘(iii) an open trading system through

4 the elimination of barriers to United States

5 trade and investment and the resolution of

6 bilateral trade and investment disputes;

7 and

8 ‘‘(iv) economic policies to reduce pov9 erty, increase the availability of health care

10 and educational opportunities, expand

11 physical infrastructure, and promote the

12 establishment of private enterprise;

13 ‘‘(B) does not engage in gross violations of

14 internationally recognized human rights or pro15 vide support for acts of international terrorism

16 and cooperates in international efforts to elimi17 nate human rights violations and terrorist ac18 tivities; and

19 ‘‘(C) subject to the authority granted to

20 the President under section 502 (a), (d), and

21 (e), otherwise satisfies the eligibility criteria set

22 forth in section 502.

23 ‘‘(2) MONITORING AND REVIEW OF CERTAIN

24 COUNTRIES.—The President shall monitor and re25 view the progress of each country listed in section 4
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1 of the African Growth and Opportunity Act in meet2 ing the requirements described in paragraph (1) in

3 order to determine the current or potential eligibility

4 of each country to be designated as a beneficiary

5 sub-Saharan African country for purposes of sub6 section (a). The President shall include the reasons

7 for the President’s determinations in the annual re8 port required by section 105 of the African Growth

9 and Opportunity Act.

10 ‘‘(3) CONTINUING COMPLIANCE.—If the Presi11 dent determines that a beneficiary sub-Saharan Afri12 can country is not making continual progress in

13 meeting the requirements described in paragraph

14 (1), the President shall terminate the designation of

15 that country as a beneficiary sub-Saharan African

16 country for purposes of this section, effective on

17 January 1 of the year following the year in which

18 such determination is made.

19 ‘‘(b) PREFERENTIAL TARIFF TREATMENT FOR CER20 TAIN ARTICLES.—

21 ‘‘(1) IN GENERAL.—The President may provide

22 duty-free treatment for any article described in sec23 tion 503(b)(1) (B) through (G) (except for textile

24 luggage) that is the growth, product, or manufacture

25 of a beneficiary sub-Saharan African country de-
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1 scribed in subsection (a), if, after receiving the ad2 vice of the International Trade Commission in ac3 cordance with section 503(e), the President deter4 mines that such article is not import-sensitive in the

5 context of imports from beneficiary sub-Saharan Af6 rican countries.

7 ‘‘(2) RULES OF ORIGIN.—The duty-free treat8 ment provided under paragraph (1) shall apply to

9 any article described in that paragraph that meets

10 the requirements of section 503(a)(2), except that—

11 ‘‘(A) if the cost or value of materials pro12 duced in the customs territory of the United

13 States is included with respect to that article,

14 an amount not to exceed 15 percent of the ap15 praised value of the article at the time it is en16 tered that is attributed to such United States

17 cost or value may be applied toward deter18 mining the percentage referred to in subpara19 graph (A) of section 503(a)(2); and

20 ‘‘(B) the cost or value of the materials in21 cluded with respect to that article that are pro22 duced in one or more beneficiary sub-Saharan

23 African countries shall be applied in deter24 mining such percentage.
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1 ‘‘(c) BENEFICIARY SUB-SAHARAN AFRICAN COUN2 TRIES, ETC.—For purposes of this title, the terms ‘bene3 ficiary sub-Saharan African country’ and ‘beneficiary sub4 Saharan African countries’ mean a country or countries

5 listed in section 4 of the African Growth and Opportunity

6 Act that the President has determined is eligible under

7 subsection (a) of this section.’’.

8 (b) WAIVER OF COMPETITIVE NEED LIMITATION.—

9 Section 503(c)(2)(D) of the Trade Act of 1974 (19 U.S.C.

10 2463(c)(2)(D)) is amended to read as follows:

11 ‘‘(D) LEAST-DEVELOPED BENEFICIARY

12 DEVELOPING COUNTRIES AND BENEFICIARY

13 SUB-SAHARAN AFRICAN COUNTRIES.—Subpara14 graph (A) shall not apply to any least-developed

15 beneficiary developing country or any bene16 ficiary sub-Saharan African country.’’.

17 (c) TERMINATION.—Title V of the Trade Act of 1974

18 is amended by inserting after section 505 the following

19 new section:

20 ‘‘SEC. 505A. TERMINATION OF BENEFITS FOR SUB-SAHARAN

21 AFRICAN COUNTRIES.

22 ‘‘In the case of a country listed in section 4 of the

23 African Growth and Opportunity Act that is a beneficiary

24 developing country, duty-free treatment provided under
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1 this title shall remain in effect through September 30,

2 2006.’’.

3 (d) CLERICAL AMENDMENTS.—The table of contents

4 for title V of the Trade Act of 1974 is amended—

5 (1) by inserting after the item relating to sec6 tion 505 the following new item:

‘‘505A. Termination of benefits for sub-Saharan African countries.’’;

7 and

8 (2) by inserting after the item relating to sec9 tion 506 the following new item:

‘‘506A. Designation of sub-Saharan African countries for certain benefits.’’.

10 (e) EFFECTIVE DATE.—The amendments made by

11 this section take effect on October 1, 1999.

12 SEC. 102. TREATMENT OF CERTAIN TEXTILES AND AP13 PAREL.

14 (a) PREFERENTIAL TREATMENT.—Notwithstanding

15 any other provision of law, textile and apparel articles de16 scribed in subsection (b) (including textile luggage) im17 ported from a beneficiary sub-Saharan African country,

18 described in section 506A(c) of the Trade Act of 1974,

19 shall enter the United States free of duty and free of any

20 quantitative limitations, if—

21 (1) the country adopts an efficient visa system

22 to guard against unlawful transshipment of textile

23 and apparel goods and the use of counterfeit docu24 ments; and
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1 (2) the country enacts legislation or promul2 gates regulations that would permit United States

3 Customs verification teams to have the access nec4 essary to investigate thoroughly allegations of trans5 shipment through such country.

6 (b) PRODUCTS COVERED.—The preferential treat7 ment described in subsection (a) shall apply only to the

8 following textile and apparel products:

9 (1) APPAREL ARTICLES ASSEMBLED IN BENE10 FICIARY SUB-SAHARAN AFRICAN COUNTRIES.—Ap11 parel articles assembled in one or more beneficiary

12 sub-Saharan African countries from fabrics wholly

13 formed and cut in the United States, from yarns

14 wholly formed in the United States that are—

15 (A) entered under subheading 9802.00.80

16 of the Harmonized Tariff Schedule of the

17 United States; or

18 (B) entered under chapter 61 or 62 of the

19 Harmonized Tariff Schedule of the United

20 States, if, after such assembly, the articles

21 would have qualified for entry under sub22 heading 9802.00.80 of the Harmonized Tariff

23 Schedule of the United States but for the fact

24 that the articles were subjected to stone-wash25 ing, enzyme-washing, acid washing, perma-
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1 pressing, oven-baking, bleaching, garment-dye2 ing, or other similar processes.

3 (2) APPAREL ARTICLES CUT AND ASSEMBLED

4 IN BENEFICIARY SUB-SAHARAN AFRICAN COUN5 TRIES.—Apparel articles cut in one or more bene6 ficiary sub-Saharan African countries from fabric

7 wholly formed in the United States from yarns whol8 ly formed in the United States, if such articles are

9 assembled in one or more beneficiary sub-Saharan

10 African countries with thread formed in the United

11 States.

12 (3) HANDLOOMED, HANDMADE, AND FOLKLORE

13 ARTICLES.—A handloomed, handmade, or folklore

14 article of a beneficiary sub-Saharan African country

15 or countries that is certified as such by the com16 petent authority of such beneficiary country or coun17 tries. For purposes of this paragraph, the President,

18 after consultation with the beneficiary sub-Saharan

19 African country or countries concerned, shall deter20 mine which, if any, particular textile and apparel

21 goods of the country (or countries) shall be treated

22 as being handloomed, handmade, or folklore goods.

23 (c) PENALTIES FOR TRANSSHIPMENTS.—

24 (1) PENALTIES FOR EXPORTERS.—If the Presi25 dent determines, based on sufficient evidence, that
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1 an exporter has engaged in transshipment with re2 spect to textile or apparel products from a bene3 ficiary sub-Saharan African country, then the Presi4 dent shall deny all benefits under this section and

5 section 506A of the Trade Act of 1974 to such ex6 porter, any successor of such exporter, and any

7 other entity owned or operated by the principal of

8 the exporter for a period of 2 years.

9 (2) TRANSSHIPMENT DESCRIBED.—Trans10 shipment within the meaning of this subparagraph

11 has occurred when preferential treatment for a tex12 tile or apparel article under subsection (a) has been

13 claimed on the basis of material false information

14 concerning the country of origin, manufacture, proc15 essing, or assembly of the article or any of its com16 ponents. For purposes of this clause, false informa17 tion is material if disclosure of the true information

18 would mean or would have meant that the article is

19 or was ineligible for preferential treatment under

20 subsection (a).

21 (d) TECHNICAL ASSISTANCE.—The Customs Service

22 shall provide technical assistance to the beneficiary sub23 Saharan African countries for the implementation of the

24 requirements set forth in subsection (a)(1) and (2).
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1 (e) MONITORING AND REPORTS TO CONGRESS.—The

2 Customs Service shall monitor and the Commissioner of

3 Customs shall submit to Congress, not later than March

4 31 of each year, a report on the effectiveness of the anti5 circumvention systems described in this section and on

6 measures taken by countries in sub-Saharan Africa which

7 export textiles or apparel to the United States to prevent

8 circumvention as described in article 5 of the Agreement

9 on Textiles and Clothing.

10 (f) SAFEGUARD.—The President shall have the au11 thority to impose appropriate remedies, including restric12 tions on or the removal of quota-free and duty-free treat13 ment provided under this section, in the event that textile

14 and apparel articles from a beneficiary sub-Saharan Afri15 can country are being imported in such increased quan16 tities as to cause serious damage, or actual threat thereof,

17 to the domestic industry producing like or directly com18 petitive articles. The President shall exercise his authority

19 under this subsection consistent with the Agreement on

20 Textiles and Clothing.

21 (g) DEFINITIONS.—In this section:

22 (1) AGREEMENT ON TEXTILES AND CLOTH23 ING.—The term ‘‘Agreement on Textiles and Cloth24 ing’’ means the Agreement on Textiles and Clothing
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1 referred to in section 101(d)(4) of the Uruguay

2 Round Agreements Act (19 U.S.C. 3511(d)(4)).

3 (2) BENEFICIARY SUB-SAHARAN AFRICAN

4 COUNTRY, ETC.—The terms ‘‘beneficiary sub-Saha5 ran African country’’ and ‘‘beneficiary sub-Saharan

6 African countries’’ have the same meaning as such

7 terms have under section 506A(c) of the Trade Act

8 of 1974.

9 (3) CUSTOMS SERVICE.—The term ‘‘Customs

10 Service’’ means the United States Customs Service.

11 (h) EFFECTIVE DATE.—The amendments made by

12 this section take effect on October 1, 1999 and shall re13 main in effect through September 30, 2006.

14 SEC. 103. UNITED STATES-SUB-SAHARAN AFRICAN TRADE

15 AND ECONOMIC COOPERATION FORUM.

16 (a) DECLARATION OF POLICY.—The President shall

17 convene annual meetings between senior officials of the

18 United States Government and officials of the govern19 ments of sub-Saharan African countries in order to foster

20 close economic ties between the United States and sub21 Saharan Africa.

22 (b) ESTABLISHMENT.—Not later than 12 months

23 after the date of enactment of this Act, the President,

24 after consulting with the officials of interested sub-Saha25 ran African governments, shall establish a United States-
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1 Sub-Saharan African Trade and Economic Cooperation

2 Forum (in this section referred to as the ‘‘Forum’’).

3 (c) REQUIREMENTS.—In creating the Forum, the

4 President shall meet the following requirements:

5 (1) FIRST MEETING.—The President shall di6 rect the Secretary of Commerce, the Secretary of the

7 Treasury, the Secretary of State, and the United

8 States Trade Representative to invite their counter9 parts from interested sub-Saharan African govern10 ments and representatives of appropriate regional

11 organizations to participate in the first annual meet12 ing to discuss expanding trade and investment rela13 tions between the United States and sub-Saharan

14 Africa.

15 (2) NONGOVERNMENTAL ORGANIZATIONS.—

16 (A) IN GENERAL.—The President, in con17 sultation with Congress, shall invite United

18 States nongovernmental organizations to host

19 meetings with their counterparts from sub-Sa20 haran Africa in conjunction with meetings of

21 the Forum for the purpose of discussing the

22 issues described in paragraph (1).

23 (B) PRIVATE SECTOR.—The President, in

24 consultation with Congress, shall invite United

25 States representatives of the private sector to
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1 host meetings with their counterparts from sub2 Saharan Africa in conjunction with meetings of

3 the Forum for the purpose of discussing the

4 issues described in paragraph (1).

5 (3) ANNUAL MEETINGS.—As soon as prac6 ticable after the date of enactment of this Act, the

7 President shall meet with the heads of the govern8 ments of interested sub-Saharan African countries

9 for the purpose of discussing the issues described in

10 paragraph (1).

11 SEC. 104. UNITED STATES-SUB-SAHARAN AFRICA FREE

12 TRADE AREA.

13 (a) IN GENERAL.—The President shall examine the

14 feasibility of negotiating a free trade agreement (or agree15 ments) with interested sub-Saharan African countries.

16 (b) REPORT TO CONGRESS.—Not later than 12

17 months after the date of enactment of this Act, the Presi18 dent shall submit a report to the Committee on Finance

19 of the Senate and the Committee on Ways and Means of

20 the House of Representatives regarding the President’s

21 conclusions on the feasibility of negotiating such agree22 ment (or agreements). If the President determines that

23 the negotiation of any such free trade agreement is fea24 sible, the President shall provide a detailed plan for such

25 negotiation that outlines the objectives, timing, any poten-
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1 tial benefits to the United States and sub-Saharan Africa,

2 and the likely economic impact of any such agreement.

3 SEC. 105. REPORTING REQUIREMENT.

4 Not later than 1 year after the date of enactment

5 of this Act, and annually thereafter for 4 years, the Presi6 dent shall submit a report to Congress on the implementa7 tion of this Act.

8 TITLE II—REVENUE PROVISIONS

9 SEC. 201. LIMITATION ON USE OF NON-ACCRUAL EXPERI10 ENCE METHOD OF ACCOUNTING.

11 (a) IN GENERAL.—Section 448(d)(5) of the Internal

12 Revenue Code of 1986 (relating to special rule for serv13 ices) is amended—

14 (1) by inserting ‘‘in fields described in para15 graph (2)(A)’’ after ‘‘services by such person’’, and

16 (2) by inserting ‘‘CERTAIN PERSONAL’’ before

17 ‘‘SERVICES’’ in the heading.

18 (b) EFFECTIVE DATE.—

19 (1) IN GENERAL.—The amendments made by

20 this section shall apply to taxable years ending after

21 the date of enactment of this Act.

22 (2) CHANGE IN METHOD OF ACCOUNTING.—In

23 the case of any taxpayer required by the amend24 ments made by this section to change its method of
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1 accounting for its first taxable year ending after the

2 date of enactment of this Act—

3 (A) such change shall be treated as initi4 ated by the taxpayer,

5 (B) such change shall be treated as made

6 with the consent of the Secretary of the Treas7 ury, and

8 (C) the net amount of the adjustments re9 quired to be taken into account by the taxpayer

10 under section 481 of the Internal Revenue Code

11 of 1986 shall be taken into account over a pe12 riod (not greater than 4 taxable years) begin13 ning with such first taxable year.

14 SEC. 202. RETURNS RELATING TO CANCELLATIONS OF IN15 DEBTEDNESS BY ORGANIZATIONS LENDING

16 MONEY.

17 (a) IN GENERAL.—Paragraph (2) of section

18 6050P(c) of the Internal Revenue Code of 1986 (relating

19 to definitions and special rules) is amended—

20 (1) by striking ‘‘and’’ at the end of subpara21 graph (B);

22 (2) by striking the period at the end of sub23 paragraph (C) and inserting ‘‘, and’’; and

24 (3) by inserting after subparagraph (C) the fol25 lowing new subparagraph:
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1 ‘‘(D) any organization a significant trade

2 or business of which is the lending of money.’’

3 (b) EFFECTIVE DATE.—The amendments made by

4 subsection (a) shall apply to discharges of indebtedness

5 after December 31, 1999.