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[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5473 Introduced in House (IH)]

106th CONGRESS
  2d Session
                                H. R. 5473

 To assist workers who are displaced by trade or technology through no 
fault of their own by providing medical benefits, increasing government 
job search assistance, eliminating taxes on certain severance packages, 
     planning for a pilot program to provide public employment for 
dislocated workers, increasing funding for the International Program of 
 Child Labor of the International Labor Organization, establishing the 
  Office of Community Economic Adjustment in the Economic Development 
Administration of the Department of Commerce to coordinate the Federal 
  response in regions and communities experiencing severe and sudden 
      economic distress, helping these regions and communities in 
         restructuring their economies, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            October 16, 2000

  Mr. Larson introduced the following bill; which was referred to the 
   Committee on Ways and Means, and in addition to the Committees on 
       Education and the Workforce, Commerce, Transportation and 
   Infrastructure, Banking and Financial Services, and International 
 Relations, for a period to be subsequently determined by the Speaker, 
 in each case for consideration of such provisions as fall within the 
                jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL

 
 To assist workers who are displaced by trade or technology through no 
fault of their own by providing medical benefits, increasing government 
job search assistance, eliminating taxes on certain severance packages, 
     planning for a pilot program to provide public employment for 
dislocated workers, increasing funding for the International Program of 
 Child Labor of the International Labor Organization, establishing the 
  Office of Community Economic Adjustment in the Economic Development 
Administration of the Department of Commerce to coordinate the Federal 
  response in regions and communities experiencing severe and sudden 
      economic distress, helping these regions and communities in 
         restructuring their economies, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Rapid Change Opportunity Act''.

     TITLE I--FUNDING FOR ADDITIONAL EMPOWERMENT ZONES, ENTERPRISE 
            COMMUNITIES, AND STRATEGIC PLANNING COMMUNITIES

SEC. 101. SHORT TITLE.

    This title may be cited as the ``Empowerment Zones and Enterprise 
Communities Enhancement Act of 2000''.

SEC. 102. FUNDING ENTITLEMENT FOR ADDITIONAL EMPOWERMENT ZONES AND 
              ENTERPRISE COMMUNITIES, AND FOR STRATEGIC PLANNING 
              COMMUNITIES.

    (a) Entitlement.--Section 2007(a)(1) of the Social Security Act (42 
U.S.C. 1397f(a)(1)) is amended--
            (1) in subparagraph (A), by striking ``in the State; and'' 
        and inserting ``that is in the State and is designated pursuant 
        to section 1391(b) of the Internal Revenue Code of 1986;'';
            (2) by adding after subparagraph (B) the following:
                    ``(C)(i) 9 grants under this section for each 
                qualified empowerment zone that is in an urban area in 
                the State and is designated pursuant to section 1391(g) 
                of such Code; and
                    ``(ii) 9 grants under this section for each 
                qualified empowerment zone that is in a rural area in 
                the State and is designated pursuant to section 1391(g) 
                of such Code;
                    ``(D) 9 grants under this section for each 
                qualified enterprise community that is in the State and 
                is designated pursuant to section 766 of the 
                Agriculture, Rural Development, Food and Drug 
                Administration, and Related Agencies Appropriations 
                Act, 1999; and
                    ``(E) 1 grant under this section for each strategic 
                planning community.''.
    (b) Amount of Grants.--Section 2007(a)(2) of such Act (42 U.S.C. 
1397f(a)(2)) is amended--
            (1) in the heading of subparagraph (A), by inserting 
        ``Original'' before ``Empowerment'';
            (2) in subparagraph (A), in the matter preceding clause 
        (i), by inserting ``referred to in paragraph (1)(A)'' after 
        ``empowerment zone'';
            (3) by redesignating subparagraph (C) as subparagraph (F); 
        and
            (4) by inserting after subparagraph (B) the following:
                    ``(C) Additional empowerment grants.--The amount of 
                the grant to a State under this section for a qualified 
                empowerment zone referred to in paragraph (1)(C) shall 
                be--
                            ``(i) if the zone is in an urban area, 
                        $7,000,000 for fiscal year 2000, $10,000,000 
                        for each of fiscal years 2001 through 2004, and 
                        $12,500,000 for each of fiscal years 2005 
                        through 2008; or
                            ``(ii) if the zone is in a rural area, 
                        $3,800,000 for each of fiscal years 2000 
                        through 2004, and $4,750,000 for each of fiscal 
                        years 2005 through 2008,
                multiplied by the proportion of the population of the 
                zone that resides in the State.
                    ``(D) Additional enterprise community grants.--The 
                amount of the grant to a State under this section for a 
                qualified enterprise community referred to in paragraph 
                (1)(D) shall be $3,000,000, multiplied by the 
                proportion of the population of the community that 
                resides in the State.
                    ``(E) Strategic planning community grants.--The 
                amount of the grant to a State under this section for a 
                strategic planning community shall be $3,000,000, 
                multiplied by the proportion of the population of the 
                community that resides in the State.''.
    (c) Timing of Grants.--Section 2007(a)(3) of such Act (42 U.S.C. 
1397f(a)(3)) is amended--
            (1) in the heading of subparagraph (A), by inserting 
        ``Original'' before ``Qualified'';
            (2) in subparagraph (A), in the matter preceding clause 
        (i), by inserting ``referred to in paragraph (1)(A)'' after 
        ``empowerment zone''; and
            (3) by adding after subparagraph (B) the following:
                    ``(C) Additional qualified empowerment zones.--With 
                respect to each qualified empowerment zone referred to 
                in paragraph (1)(C), the Secretary shall make 1 grant 
                under this section to the State in which the zone lies, 
                on the first day of fiscal year 2000 and of each of the 
                8 succeeding fiscal years.
                    ``(D) Additional qualified enterprise 
                communities.--With respect to each qualified enterprise 
                community referred to in paragraph (1)(D), the 
                Secretary shall make 1 grant under this section to the 
                State in which the community is located on October 1, 
                1999.
                    ``(E) Strategic planning communities.--With respect 
                to each strategic planning community, the Secretary 
                shall make 1 grant under this section to the State in 
                which the community is located, on October 1, 1999.''.
    (d) Funding.--Section 2007(a)(4) of such Act (42 U.S.C. 
1397f(a)(4)) is amended--
            (1) by striking ``(4) Funding.--$1,000,000'' and inserting 
        the following:
            ``(4) Funding.--
                    ``(A) Original grants.--$1,000,000'';
            (2) by inserting ``for empowerment zones and enterprise 
        communities described in subparagraphs (A) and (B) of paragraph 
        (1)'' before the period; and
            (4) by adding after and below the end the following:
                    ``(B) Additional empowerment zone grants.--
                $1,645,000,000 shall be made available to the Secretary 
                for grants under this section for empowerment zones 
                referred to in paragraph (1)(C).
                    ``(C) Additional enterprise community grants.--
                $60,000,000 shall be made available to the Secretary 
                for grants under this section for enterprise 
                communities referred to in paragraph (1)(D).
                    ``(D) Strategic planning community grants.--
                $45,000,000 shall be made available to the Secretary 
                for grants under this section for strategic planning 
                communities.''.
    (e) Direct Funding for Indian Tribes.--Section 2007(a) of such Act 
(42 U.S.C. 1397f(a)) is amended by adding at the end the following:
            ``(5) Direct funding for indian tribes.--
                    ``(A) In general.--The Secretary may make a grant 
                under this section directly to the governing body of an 
                Indian tribe if--
                            ``(i) the tribe is identified in the 
                        strategic plan of a qualified empowerment zone 
                        or qualified enterprise community as the entity 
                        that assumes sole or primary responsibility for 
                        carrying out activities and projects under the 
                        grant; and
                            ``(ii) the grant is to be used for 
                        activities and projects that are--
                                    ``(I) included in the strategic 
                                plan of the qualified empowerment zone 
                                or qualified enterprise community, 
                                consistent with this section; and
                                    ``(II) approved by the Secretary of 
                                Agriculture, in the case of a qualified 
                                empowerment zone or qualified 
                                enterprise community in a rural area, 
                                or the Secretary of Housing and Urban 
                                Development, in the case of a qualified 
                                empowerment zone or qualified 
                                enterprise community in an urban area.
                    ``(B) Rules of interpretation.--
                            ``(i) If grant under this section is made 
                        directly to the governing body of an Indian 
                        tribe under subparagraph (A), the tribe shall 
                        be considered a State for purposes of this 
                        section.
                            ``(ii) This subparagraph shall not be 
                        construed as making applicable to this section 
                        the provisions of the Indian Self-Determination 
                        and Education Assistance Act.''.
    (f) Definitions.--
            (1) Qualified enterprise community.--Section 2007(f)(2)(A) 
        of such Act (42 U.S.C. 1397f(f)(2)(A)) is amended by inserting 
        ``or pursuant to section 766 of the Agriculture, Rural 
        Development, Food and Drug Administration, and Related Agencies 
        Appropriations Act, 1999'' before the semicolon.
            (2) Strategic plan.--Section 2007(f)(3) of such Act (42 
        U.S.C. 1397f(f)(3)) is amended by inserting ``or under section 
        766 of the Agriculture, Rural Development, Food and Drug 
        Administration, and Related Agencies Appropriations Act, 1999'' 
        before the period.
            (3) Strategic planning community.--Section 2007(f) of such 
        Act (42 U.S.C. 1397f(f)) is amended by adding at the end the 
        following:
            ``(7) Strategic planning community.--The term `strategic 
        planning community' means a respondent to the Notice Inviting 
        Applications at 63 Federal Register 19162 (April 16, 1998) 
        whose application was ranked 16th through 30th in the 
        competition that concluded in December 1998.''.
            (4) Indian tribe.--Section 2007(f) of such Act (42 U.S.C. 
        1397f(f)), as amended by paragraph (3) of this subsection, is 
        amended by adding at the end the following:
            ``(8) Indian tribe.--The term `Indian tribe' means any 
        Indian tribe, band, nation, or other organized group or 
        community, including any Alaska Native village or regional or 
        village corporation as defined in or established pursuant to 
        the Alaska Native Claims Settlement Act, which is recognized as 
        eligible for the special programs and services provided by the 
        United States to Indians because of their status as Indians.''.

SEC. 103. USE OF GRANT FUNDS.

    (a) Revolving Loan Activities.--Section 2007(b) of the Social 
Security Act (42 U.S.C. 1397f(b)) is amended by adding at the end the 
following:
            ``(5) Revolving loan activities.--
                    ``(A) In general.--In order to assist disadvantaged 
                adults and youths in achieving and maintaining economic 
                self-support, a State may use amounts paid under this 
                section to fund revolving loan funds or similar 
                arrangements for the purpose of making loans to 
                residents, institutions, organizations, or businesses 
                that hire disadvantaged adults and youths.
                    ``(B) Rules for disbursement.--Amounts to be used 
                as described in subparagraph (A) shall be disbursed by 
                the Secretary, consistent with the provisions of the 
                Cash Management Improvement Act and its implementing 
                rules, regulations, and procedures issued by the 
                Secretary of the Treasury--
                            ``(i) in the case of a grant to a revolving 
                        loan fund--
                                    ``(I) pursuant to a written 
                                irrevocable grant commitment; and
                                    ``(II) at such time or times as the 
                                Secretary determines that the funds are 
                                needed to meet the purposes of such 
                                commitment; or
                            ``(ii) in the case of a grant for purposes 
                        of capitalizing an insured depository 
                        institution (as defined in section 3 of the 
                        Federal Deposit Insurance Act (12 U.S.C. 1813)) 
                        or an insured credit union (as defined in 
                        section 101 of the Federal Credit Union Act (12 
                        U.S.C. 1742)), at such time or times as the 
                        Secretary determines that funds are needed for 
                        such capitalization.''.
    (b) Use as Non-Federal Share.--Section 2007(b) of such Act (42 
U.S.C. 1397f(b)), as amended by subsection (a) of this section, is 
amended by adding at the end the following:
            ``(6) A State may use amounts received from a grant under 
        this section to pay all or part of the non-Federal share of 
        expenditures under any other Federal grant to a local public or 
        nonprofit private agency or organization for activities 
        consistent with the purposes of this section, unless the 
        statutory authority for such other grant expressly prohibits 
        counting of Federal grant funds as such non-Federal share.''.

SEC. 104. ENVIRONMENTAL REVIEW.

    Section 2007 of the Social Security Act (42 U.S.C. 1397f) is 
amended--
            (1) by redesignating subsection (f) as subsection (g); and
            (2) by inserting after subsection (e) the following:
    ``(f) Environmental Review.--
            ``(1) Execution of responsibility by the secretary of 
        housing and urban development and the secretary of 
        agriculture.--
                    ``(A) Applicability.--This subsection shall apply 
                to grants under this section in connection with 
                empowerment zones, enterprise communities, and 
                strategic planning communities (as defined in 
                subsection (g)).
                    ``(B) Execution of responsibility.--With respect to 
                grants described in subparagraph (A), the Secretary of 
                Housing and Urban Development and the Secretary of 
                Agriculture, as appropriate, shall execute the 
                responsibilities under the National Environmental 
                Policy Act of 1969 and other provisions of law that 
                further the purposes of such Act (as specified in 
                regulations issued by each such Secretary under 
                paragraph (2)(B)) that would otherwise apply to the 
                Secretary of Health and Human Services, and may provide 
                for the assumption of such responsibilities in 
                accordance with paragraphs (2) through (5).
                    ``(C) Definition of secretary.--Except as otherwise 
                specified, in this subsection, the term `Secretary' 
                means the Secretary of Housing and Urban Development 
                for purposes of grants under this section with respect 
                to qualified empowerment zones and qualified enterprise 
                communities in urban areas, and strategic planning 
                areas, and the Secretary of Agriculture for purposes of 
                grants under this section with respect to qualified 
                empowerment zones and qualified enterprise communities 
                in rural areas.
            ``(2) Assumption of responsibility by states, units of 
        general local government, and indian tribes.--
                    ``(A) Release of funds.--In order to assure that 
                the policies of the National Environmental Policy Act 
                of 1969 and other provisions of law that further the 
                purposes of such Act (as specified in regulations 
                issued by the Secretary under subparagraph (B)) are 
                most effectively implemented in connection with the 
                expenditure of funds under this section, and to assure 
                to the public undiminished protection of the 
                environment, the Secretary may, under such regulations, 
                in lieu of the environmental protection procedures 
                otherwise applicable, provide for the release of funds 
                for particular projects to recipients of assistance 
                under this section if the State, unit of general local 
                government, or Indian tribe, as designated by the 
                Secretary in accordance with regulations issued by the 
                Secretary under subparagraph (B), assumes all of the 
                responsibilities for environmental review, 
                decisionmaking, and action pursuant to such Act, and 
                such other provisions of law as the regulations of the 
                Secretary specify, that would otherwise apply to the 
                Secretary were the Secretary to undertake such projects 
                as Federal projects.
                    ``(B) Implementation.--The Secretary of Housing and 
                Urban Development and the Secretary of Agriculture 
                shall each issue regulations to carry out this 
                subsection only after consultation with the Council on 
                Environmental Quality. Such regulations shall--
                            ``(i) specify any other provisions of law 
                        that further the purposes of the National 
                        Environmental Policy Act of 1969 and to which 
                        the assumption of responsibility as provided in 
                        this subsection applies;
                            ``(ii) provide eligibility criteria and 
                        procedures for the designation of a State, unit 
                        of general local government, or Indian tribe to 
                        assume all of the responsibilities described in 
                        subparagraph (A);
                            ``(iii) specify the purposes for which 
                        funds may be committed without regard to the 
                        procedure established under paragraph (3);
                            ``(iv) provide for monitoring of the 
                        performance of environmental reviews under this 
                        subsection;
                             (v) in the discretion of the Secretary, 
                        provide for the provision or facilitation of 
                        training for such performance; and
                            ``(vi) subject to the discretion of the 
                        Secretary, provide for suspension or 
                        termination by the Secretary of the assumption 
                        under subparagraph (A).
                    ``(C) Responsibilities of state, unit of general 
                local government, or indian tribe.--The Secretary's 
                duty under subparagraph (B) shall not be construed to 
                limit any responsibility assumed by a State, unit of 
                general local government, or Indian tribe with respect 
                to any particular release of funds under subparagraph 
                (A).
            ``(3) Procedure.--The Secretary shall approve the release 
        of funds for projects subject to the procedures authorized by 
        this subsection only if, not less than 15 days prior to such 
        approval and prior to any commitment of funds to such projects 
        (except for such purposes specified in the regulations issued 
        under paragraph (2)(B)), the recipient submits to the Secretary 
        a request for such release accompanied by a certification of 
        the State, unit of general local government, or Indian tribe 
        that meets the requirements of paragraph (4). The approval by 
        the Secretary of any such certification shall be deemed to 
        satisfy the Secretary's responsibilities pursuant to paragraph 
        (1) under the National Environmental Policy Act of 1969 and 
        such other provisions of law as the regulations of the 
        Secretary specify insofar as those responsibilities relate to 
        the releases of funds for projects to be carried out pursuant 
        thereto that are covered by such certification.
            ``(4) Certification.--A certification under the procedures 
        authorized by this subsection shall--
                    ``(A) be in a form acceptable to the Secretary;
                    ``(B) be executed by the chief executive officer or 
                other officer of the State, unit of general local 
                government, or Indian tribe who qualifies under 
                regulations of the Secretary;
                    ``(C) specify that the State, unit of general local 
                government, or Indian tribe under this subsection has 
                fully carried out its responsibilities as described 
                under paragraph (2); and
                    ``(D) specify that the certifying officer--
                            ``(i) consents to assume the status of a 
                        responsible Federal official under the National 
                        Environmental Policy Act of 1969 and each 
                        provision of law specified in regulations 
                        issued by the Secretary insofar as the 
                        provisions of such Act or other such provisions 
                        of law apply pursuant to paragraph (2); and
                            ``(ii) is authorized and consents on behalf 
                        of the State, unit of general local government, 
                        or Indian tribe and himself or herself to 
                        accept the jurisdiction of the Federal courts 
                        for the purpose of enforcement of the 
                        responsibilities as such an official.
            ``(5) Approval by states.--In cases in which a unit of 
        general local government carries out the responsibilities 
        described in paragraph (2), the Secretary may permit the State 
        to perform those actions of the Secretary described in 
        paragraph (3). The performance of such actions by the State, 
        where permitted, shall be deemed to satisfy the 
        responsibilities referred to in the second sentence of 
        paragraph (3).''.

    TITLE II--CREDIT AGAINST INCOME TAX FOR CERTAIN INVESTMENTS IN 
              BUSINESSES LOCATED IN LOW-INCOME COMMUNITIES

SEC. 201. SHORT TITLE.

    This title may be cited as the ``New Markets Tax Credit Act of 
2000''.

SEC. 202. NEW MARKETS TAX CREDIT.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to business-related 
credits) is amended by adding at the end the following new section:

``SEC. 45D. NEW MARKETS TAX CREDIT.

    ``(a) Allowance of Credit.--
            ``(1) In general.--For purposes of section 38, in the case 
        of a taxpayer who holds a qualified equity investment on a 
        credit allowance date of such investment which occurs during 
        the taxable year, the new markets tax credit determined under 
        this section for such taxable year is an amount equal to 6 
        percent of the amount paid to the qualified community 
        development entity for such investment at its original issue.
            ``(2) Credit allowance date.--The term `credit allowance 
        date' means, with respect to any qualified equity investment--
                    ``(A) the date on which such investment is 
                initially made, and
                    ``(B) each of the 4 anniversary dates of such date 
                thereafter.
    ``(b) Qualified Equity Investment.--For purposes of this section--
            ``(1) In general.--The term `qualified equity investment' 
        means any equity investment in a qualified community 
        development entity if--
                    ``(A) such investment is acquired by the taxpayer 
                at its original issue (directly or through an 
                underwriter) solely in exchange for cash,
                    ``(B) substantially all of such cash is used by the 
                qualified community development entity to make 
                qualified low-income community investments, and
                    ``(C) such investment is designated for purposes of 
                this section by the qualified community development 
                entity.
        Such term shall not include any equity investment issued by a 
        qualified community development entity more than 5 years after 
        the date that such entity receives an allocation under 
        subsection (f). Any allocation not used within such 5-year 
        period may be reallocated by the Secretary under subsection 
        (f).
            ``(2) Limitation.--The maximum amount of equity investments 
        issued by a qualified community development entity which may be 
        designated under paragraph (1)(C) by such entity shall not 
        exceed the portion of the limitation amount allocated under 
        subsection (f) to such entity.
            ``(3) Safe harbor for determining use of cash.--The 
        requirement of paragraph (1)(B) shall be treated as met if at 
        least 85 percent of the aggregate gross assets of the qualified 
        community development entity are invested in qualified low-
        income community investments.
            ``(4) Treatment of subsequent purchasers.--The term 
        `qualified equity investment' includes any equity investment 
        which would (but for paragraph (1)(A)) be a qualified equity 
        investment in the hands of the taxpayer if such investment was 
        a qualified equity investment in the hands of a prior holder.
            ``(5) Redemptions.--A rule similar to the rule of section 
        1202(c)(3) shall apply for purposes of this subsection.
            ``(6) Equity investment.--The term `equity investment' 
        means--
                    ``(A) any stock in a qualified community 
                development entity which is a corporation, and
                    ``(B) any capital interest in a qualified community 
                development entity which is a partnership.
    ``(c) Qualified Community Development Entity.--For purposes of this 
section--
            ``(1) In general.--The term `qualified community 
        development entity' means any domestic corporation or 
        partnership if--
                    ``(A) the primary mission of the entity is serving, 
                or providing investment capital for, low-income 
                communities or low-income persons,
                    ``(B) the entity maintains accountability to 
                residents of low-income communities through 
                representation on governing or advisory boards or 
                otherwise, and
                    ``(C) the entity is certified by the Secretary for 
                purposes of this section as being a qualified community 
                development entity.
            ``(2) Special rules for certain organizations.--The 
        requirements of paragraph (1) shall be treated as met by--
                    ``(A) any specialized small business investment 
                company (as defined in section 1044(c)(3)), and
                    ``(B) any community development financial 
                institution (as defined in section 103 of the Community 
                Development Banking and Financial Institutions Act of 
                1994 (12 U.S.C. 4702)).
    ``(d) Qualified Low-Income Community Investments.--For purposes of 
this section--
            ``(1) In general.--The term `qualified low-income community 
        investment' means--
                    ``(A) any equity investment in, or loan to, any 
                qualified active low-income community business,
                    ``(B) the purchase from another community 
                development entity of any loan made by such entity 
                which is a qualified low-income community investment if 
                the amount received by such other entity from such 
                purchase is used by such other entity to make qualified 
                low-income community investments,
                    ``(C) financial counseling and other services 
                specified in regulations prescribed by the Secretary to 
                businesses located in, and residents of, low-income 
                communities, and
                    ``(D) any equity investment in, or loan to, any 
                qualified community development entity if substantially 
                all of the investment or loan is used by such entity to 
                make qualified low-income community investments 
                described in subparagraphs (A), (B), and (C).
            ``(2) Qualified active low-income community business.--
                    ``(A) In general.--For purposes of paragraph (1), 
                the term `qualified active low-income community 
                business' means, with respect to any taxable year, any 
                corporation or partnership if for such year--
                            ``(i) at least 50 percent of the total 
                        gross income of such entity is derived from the 
                        active conduct of a qualified business within 
                        any low-income community,
                            ``(ii) a substantial portion of the use of 
                        the tangible property of such entity (whether 
                        owned or leased) is within any low-income 
                        community,
                            ``(iii) a substantial portion of the 
                        services performed for such entity by its 
                        employees are performed in any low-income 
                        community,
                            ``(iv) less than 5 percent of the average 
                        of the aggregate unadjusted bases of the 
                        property of such entity is attributable to 
                        collectibles (as defined in section 408(m)(2)) 
                        other than collectibles that are held primarily 
                        for sale to customers in the ordinary course of 
                        such business, and
                            ``(v) less than 5 percent of the average of 
                        the aggregate unadjusted bases of the property 
                        of such entity is attributable to nonqualified 
                        financial property (as defined in section 
                        1397B(e)).
                    ``(B) Proprietorship.--Such term shall include any 
                business carried on by an individual as a proprietor if 
                such business would meet the requirements of 
                subparagraph (A) were it incorporated.
                    ``(C) Portions of business may be qualified active 
                low-income community business.--The term `qualified 
                active low-income community business' includes any 
                trades or businesses which would qualify as a qualified 
                active low-income community business if such trades or 
                businesses were separately incorporated.
            ``(3) Qualified business.--For purposes of this subsection, 
        the term `qualified business' has the meaning given to such 
        term by section 1397B(d); except that--
                    ``(A) in lieu of applying paragraph (2)(B) thereof, 
                the rental to others of real property located in any 
                low-income community shall be treated as a qualified 
                business if there are substantial improvements located 
                on such property,
                    ``(B) paragraph (3) thereof shall not apply, and
                    ``(C) such term shall not include any business if a 
                significant portion of the equity interests in such 
                business are held by any person who holds a significant 
                portion of the equity investments in the community 
                development entity.
    ``(e) Low-Income Community.--For purposes of this section--
            ``(1) In general.--The term `low-income community' means 
        any population census tract if--
                    ``(A) the poverty rate for such tract is at least 
                20 percent, or
                    ``(B)(i) in the case of a tract not located within 
                a metropolitan area, the median family income for such 
                tract does not exceed 80 percent of statewide median 
                family income, or
                    ``(ii) in the case of a tract located within a 
                metropolitan area, the median family income for such 
                tract does not exceed 80 percent of the greater of 
                statewide median family income or the metropolitan area 
                median family income.
            ``(2) Areas not within census tracts.--In the case of an 
        area which is not tracted for population census tracts, the 
        equivalent county divisions (as defined by the Bureau of the 
        Census for purposes of defining poverty areas) shall be used 
        for purposes of determining poverty rates and median family 
        income.
    ``(f) National Limitation on Amount of Investments Designated.--
            ``(1) In general.--There is a new markets tax credit 
        limitation of $1,200,000,000 for each of calendar years 2000 
        through 2004.
            ``(2) Allocation of limitation.--The limitation under 
        paragraph (1) shall be allocated by the Secretary among 
        qualified community development entities selected by the 
        Secretary. In making allocations under the preceding sentence, 
        the Secretary shall give priority to entities with records of 
        having successfully provided capital or technical assistance to 
        disadvantaged businesses or communities.
            ``(3) Carryover of unused limitation.--If the new markets 
        tax credit limitation for any calendar year exceeds the 
        aggregate amount allocated under paragraph (2) for such year, 
        such limitation for the succeeding calendar year shall be 
        increased by the amount of such excess.
    ``(g) Recapture of Credit in Certain Cases.--
            ``(1) In general.--If, at any time during the 5-year period 
        beginning on the date of the original issue of a qualified 
        equity investment in a qualified community development entity, 
        there is a recapture event with respect to such investment, 
        then the tax imposed by this chapter for the taxable year in 
        which such event occurs shall be increased by the credit 
        recapture amount.
            ``(2) Credit recapture amount.--For purposes of paragraph 
        (1), the credit recapture amount is an amount equal to the sum 
        of--
                    ``(A) the aggregate decrease in the credits allowed 
                to the taxpayer under section 38 for all prior taxable 
                years which would have resulted if no credit had been 
                determined under this section with respect to such 
                investment, plus
                    ``(B) interest at the overpayment rate established 
                under section 6621 on the amount determined under 
                subparagraph (A) for each prior taxable year for the 
                period beginning on the due date for filing the return 
                for the prior taxable year involved.
        No deduction shall be allowed under this chapter for interest 
        described in subparagraph (B).
            ``(3) Recapture event.--For purposes of paragraph (1), 
        there is a recapture event with respect to an equity investment 
        in a qualified community development entity if--
                    ``(A) such entity ceases to be a qualified 
                community development entity,
                    ``(B) the proceeds of the investment cease to be 
                used as required of subsection (b)(1)(B), or
                    ``(C) such investment is redeemed by such entity.
            ``(4) Special rules.--
                    ``(A) Tax benefit rule.--The tax for the taxable 
                year shall be increased under paragraph (1) only with 
                respect to credits allowed by reason of this section 
                which were used to reduce tax liability. In the case of 
                credits not so used to reduce tax liability, the 
                carryforwards and carrybacks under section 39 shall be 
                appropriately adjusted.
                    ``(B) No credits against tax.--Any increase in tax 
                under this subsection shall not be treated as a tax 
                imposed by this chapter for purposes of determining the 
                amount of any credit under this chapter or for purposes 
                of section 55.
    ``(h) Basis Reduction.--The basis of any qualified equity 
investment shall be reduced by the amount of any  credit determined 
under this section with respect to such investment.
    ``(i) Regulations.--The Secretary shall prescribe such regulations 
as may be appropriate to carry out this section, including 
regulations--
            ``(1) which limit the credit for investments which are 
        directly or indirectly subsidized by other Federal benefits 
        (including the credit under section 42 and the exclusion from 
        gross income under section 103),
            ``(2) which prevent the abuse of the provisions of this 
        section through the use of related parties,
            ``(3) which impose appropriate reporting requirements, and
            ``(4) which apply the provisions of this section to newly 
        formed entities.''
    (b) Credit Made Part of General Business Credit.--
            (1) In general.--Subsection (b) of section 38 of such Code 
        is amended by striking ``plus'' at the end of paragraph (11), 
        by striking the period at the end of paragraph (12) and 
        inserting ``, plus'', and by adding at the end the following 
        new paragraph:
            ``(13) the new markets tax credit determined under section 
        45D(a).''
            (2) Limitation on carryback.--Subsection (d) of section 39 
        of such Code is amended by adding at the end the following new 
        paragraph:
            ``(9) No carryback of new markets tax credit before january 
        1, 2000.--No portion of the unused business credit for any 
        taxable year which is attributable to the credit under section 
        45D may be carried back to a taxable year ending before January 
        1, 2000.''
    (c) Deduction for Unused Credit.--Subsection (c) of section 196 of 
such Code is amended by striking ``and'' at the end of paragraph (7), 
by striking the period at the end of paragraph (8) and inserting ``, 
and'', and by adding at the end the following new paragraph:
            ``(9) the new markets tax credit determined under section 
        45D(a).''
    (d) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of such Code is amended by adding 
at the end the following new item:

                              ``Sec. 45D. New markets tax credit.''
    (e) Effective Date.--The amendments made by this section shall 
apply to investments made after December 31, 1999.

 TITLE III--EXCLUSION OF CERTAIN SEVERANCE PAYMENT AMOUNTS FROM INCOME

SEC. 301. SHORT TITLE.

    This title may be cited as the ``Layoff Tax Relief Act''.

SEC. 302. EXCLUSION FROM INCOME OF SEVERANCE PAYMENT AMOUNTS.

    (a) In General.--Part III of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 (relating to items specifically excluded 
from gross income) is amended by redesignating section 139 as section 
139A and by inserting after section 138 the following new section:

``SEC. 139. SEVERANCE PAYMENTS.

    ``(a) In General.--In the case of an individual, gross income shall 
not include any qualified severance payment.
    ``(b) Limitation.--The amount to which the exclusion under 
subsection (a) applies shall not exceed $50,000 with respect to any 
separation from employment.
    ``(c) Qualified Severance Payment.--For purposes of this section--
            ``(1) In general.--The term `qualified severance payment' 
        means any payment received by an individual if--
                    ``(A) such payment was paid by such individual's 
                employer on account of such individual's separation 
                from employment, and
                    ``(B) such separation was in connection with a 
                reduction in the work force of the employer.
        Such term shall include any payment received by an individual 
        from such individual's employer on account of such individual's 
        completion of a degree program pursuant to an education program 
        of the employer if such payment is received after such 
        individual's separation from employment in connection with a 
        reduction in the work force of the employer.
            ``(2) Limitation.--Such term shall not include any payment 
        received by an individual if the aggregate payments received 
        with respect to the separation from employment exceed 
        $150,000.''
    (b) Clerical Amendment.--The table of sections for part III of 
subchapter B of chapter 1 of such Code is amended by striking the item 
relating to section 139 and inserting the following new items:

                              ``Sec. 139. Severance payments.
                              ``Sec. 139A. Cross references to other 
                                        Acts.''
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1999.

                TITLE IV--EXTENSION OF MEDICAL BENEFITS

SEC. 401. AMENDMENTS TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 
              1974.

    (a) Establishment of New Qualifying Event.--
            (1) In general.--Section 603 of the Employee Retirement 
        Income Security Act of 1974 (29 U.S.C. 1163) is amended by 
        inserting after paragraph (6) the following new paragraph:
            ``(7) the covered employee becoming eligible for adjustment 
        assistance under chapter 2 of title II of the Trade Act of 1974 
        (19 U.S.C. 2271 et seq.)''.
            (2) Eligible for adjustment assistance defined.--Section 
        607 of such Act (29 U.S.C. 1167) is amended--
                    (A) in paragraph (3)--
                             (i) in subparagraph (A), by inserting 
                        ``except as otherwise provided in this 
                        paragraph'' after ``means,''; and
                            (ii) by adding at the end the following new 
                        subparagraph:
                    ``(D) Special rule for certain workers eligible for 
                adjustment assistance.--In the case of a qualifying 
                event described in section 603(7), the term `eligible 
                for adjustment assistance' means a covered employee and 
                any other individual who, on the day before such 
                qualifying event, is a beneficiary under the plan on 
                the basis of the individual's relationship to such 
                covered employee.''; and
                    (B) by adding at the end the following new 
                paragraph:
            ``(6) Eligible for adjustment assistance.--The term 
        `eligible for adjustment assistance' means with respect to a 
        qualifying event described in section 603(7), an individual who 
        becomes eligible for adjustment assistance under chapter 2 of 
        title II of the Trade Act of 1974 (19 U.S.C. 2271 et seq.)''.
            (3) Premium Requirements.--Section 602(3) is amended by 
        adding at the end the following sentence: ``In a case of an 
        individual described in paragraph 607(6), the Federal 
        government shall pay any premiums previously paid by the 
        employer.
    (b) Effective Date.--The amendments made by this section shall 
apply to qualifying events occurring on or after January 1, 2001. In 
the case of a qualifying event occurring on or after such date and 
before the date of the enactment of this Act, such event shall be 
deemed (for purposes of such amendments) to have occurred on the date 
of the enactment of this Act.

SEC. 402. AMENDMENTS TO THE PUBLIC HEALTH SERVICE ACT.

    (a) Establishment of New Qualifying Event.--
            (1) In general.--Section 2203 of the Public Health Service 
        Act (42 U.S.C. 300bb-3) is amended by inserting after paragraph 
        (5) the following new paragraph:
            ``(6) the covered employee becoming eligible for adjustment 
        assistance under chapter 2 of title II of the Trade Act of 1974 
        (19 U.S.C. 2271 et seq.)''.
            (2) Eligible for adjustment assistance defined.--Section 
        2208 of such Act (42 U.S.C. 300bb-8) is amended--
                    (A) in paragraph (3)--
                             (i) in subparagraph (A), by inserting 
                        ``except as otherwise provided in this 
                        paragraph'' after ``means,''; and
                            (ii) by adding at the end the following new 
                        subparagraph:
                    ``(C) Special rule for certain workers eligible for 
                adjustment assistance.--In the case of a qualifying 
                event described in section 2203(6), the term `eligible 
                for adjustment assistance' means a covered employee and 
                any other individual who, on the day before such 
                qualifying event, is a beneficiary under the plan on 
                the basis of the individual's relationship to such 
                covered employee.''; and
                    (B) by adding at the end the following new 
                paragraph:
            ``(5) Eligible for adjustment assistance.--The term 
        `eligible for adjustment assistance' means with respect to a 
        qualifying event described in section 2203(6), an individual 
        who becomes eligible for adjustment assistance under chapter 2 
        of title II of the Trade Act of 1974 (19 U.S.C. 2271 et 
        seq.)''.
            (3) Premium Requirements.--Section 2202(3) is amended by 
        adding at the end the following sentence: ``In a case of an 
        individual described in paragraph 2208(5), the Federal 
        government shall pay any premiums previously paid by the 
        employer.
    (b) Effective Date.--The amendments made by this section shall 
apply to qualifying events occurring on or after January 1, 2001. In 
the case of a qualifying event occurring on or after such date and 
before the date of the enactment of this Act, such event shall be 
deemed (for purposes of such amendments) to have occurred on the date 
of the enactment of this Act.

SEC. 403. AMENDMENTS TO THE INTERNAL REVENUE CODE OF 1986.

    (a) Establishment of New Qualifying Event.--
            (1) In general.--Section 4980B(f)(3) of the Internal 
        Revenue Code of 1986 is amended by inserting after subparagraph 
        (F) the following new subparagraph:
                    ``(G) the covered employee becoming eligible for 
                adjustment assistance under chapter 2 of title II of 
                the Trade Act of 1974 (19 U.S.C. 2271 et seq.)''.
            (2) Eligible for adjustment assistance defined.--Section 
        4980B(g) of such Code is amended--
                    (A) in paragraph (1)--
                             (i) in subparagraph (A), by inserting 
                        ``except as otherwise provided in this 
                        paragraph'' after ``means,''; and
                            (ii) by adding at the end the following new 
                        subparagraph:
                    ``(E) Special rule for certain workers eligible for 
                adjustment assistance.--In the case of a qualifying 
                event described in subsection (f)(3)(G), the term 
                `eligible for adjustment assistance' means a covered 
                employee and any other individual who, on the day 
                before such qualifying event, is a beneficiary under 
                the plan on the basis of the individual's relationship 
                to such covered employee.''; and
                    (B) by adding at the end the following new 
                paragraph:
            ``(5) Eligible for adjustment assistance.--The term 
        `eligible for adjustment assistance' means with respect to a 
        qualifying event described in section (f)(3)(G), an individual 
        who becomes eligible for adjustment assistance under chapter 2 
        of title II of the Trade Act of 1974 (19 U.S.C. 2271 et 
        seq.)''.
            (3) Premium Requirements.--Section 4980B(f)(2)(C) is 
        amended by adding at the end the following sentence: ``In a 
        case of an individual described in subsection (g)(5), the 
        Federal government shall pay any premiums previously paid by 
        the employer.
    (b) Effective Date.--The amendments made by this section shall 
apply to qualifying events  occurring on or after January 1, 2001. In 
the case of a qualifying event occurring on or after such date and 
before the date of the enactment of this Act, such event shall be 
deemed (for purposes of such amendments) to have occurred on the date 
of the enactment of this Act.

           TITLE V--COMMUNITY ECONOMIC ADJUSTMENT ACT OF 2000

SEC. 501. SHORT TITLE.

    This title may be cited as the ``Community Economic Adjustment Act 
of 2000''.

SEC. 502. FINDINGS AND PURPOSES

    (a) Findings.--Congress finds the following:
            (1) When a community suffers a significant loss of jobs 
        over a relatively short period of time whether from industrial 
        or corporate restructuring, new requirements in Federal laws or 
        regulations, reduction in defense expenditures, depletion of 
        natural resources, natural disasters, changing trade patterns 
        or other reasons, it can experience sudden economic distress.
            (2) Federal departments and agencies with existing programs 
        that support workers and communities in States and local areas 
        in their efforts to recover from this economic distress do so 
        in a capacity defined by the mission of the department or 
        agency.
            (3) Federal departments and agencies providing such 
        assistance include the Department of Agriculture, Department of 
        Commerce, Department of Defense, Department of Education, 
        Department of Labor, Department of Housing and Urban 
        Development, the Department of the Treasury, and the Small 
        Business Administration.
            (4) To date, no Federal department or agency has unique 
        authority to coordinate these often independent efforts across 
        the Federal Government in the same manner as the Federal 
        Emergency Management Agency is charged to coordinate the 
        Federal response to a disaster or the Department of Defense's 
        Office of Economic Adjustment is charged to coordinate the 
        Federal response for communities experiencing base closures and 
        realignments.
            (5) There is a recognized need for the Federal Government 
        to be able to coordinate its response to communities 
        experiencing sudden economic distress both at the national 
        level and in the community itself, and to further be able to 
        coordinate the Federal response with State and local efforts.
            (6) The Office of Economic Adjustment of the Department of 
        Defense has successfully provided such coordination across the 
        Federal Government for communities experiencing defense base 
        closures and is a good model on which to base any government-
        wide coordination effort with respect to communities 
        experiencing sudden economic distress.
            (7) The mission of the Economic Development Administration 
        of the Department of Commerce includes helping States and local 
        areas to design and implement strategies for facilitating 
        adjustment to changes in their economic situation that are 
        causing or threaten to cause serious structural damage to the 
        underlying economic base which may occur suddenly, and as a 
        result, is the most appropriate place in the Federal Government 
        to locate an office to coordinate Federal response to 
        communities experiencing sudden economic distress.
    (b) Purposes.--The purposes of this title are--
            (1) to help communities to adjust to such economic 
        dislocation by providing for targeted and integrated Federal 
        responses by authorizing the Secretary of Commerce to 
        coordinate the Federal response through an Office of Community 
        Economic Adjustment which will employ methods and techniques 
        proven successful by the Defense Department's Office of 
        Economic Adjustment in connection with defense base closures; 
        and
            (2) to increase authorization of appropriations for 
        community adjustment programs of the Economic Development 
        Administration to provide the Secretary of Commerce with more 
        resources for grant assistance for communities to support the 
        development and implementation of adjustment strategies that 
        are designed to restore vital economic activity and create new 
        jobs.

SEC. 503 OFFICE OF COMMUNITY ECONOMIC ADJUSTMENT.

    Title V of the Public Works and Economic Development Act of 1965 
(42 U.S.C. 3191) is amended by adding at the end the following:

``SEC. 508. OFFICE OF COMMUNITY ECONOMIC ADJUSTMENT.

    ``(a) Establishment.--The Secretary is authorized to establish in 
the Economic Development Administration an Office of Community Economic 
Adjustment (hereinafter in this section referred to as the `Office'). 
The head of the Office shall, not later than 90 days after the date of 
the enactment of the Community Economic Adjustment Act of 2000, develop 
an operating plan for the Office.
    ``(b) Duties.--The Office shall--
            ``(1) coordinate the Federal Government's response to 
        communities experiencing sudden economic distress caused by a 
        loss of jobs due to plant closures, significant layoffs, or 
        significant relocation of jobs to other communities for any 
        reason, including shifting patterns in international trade, 
        natural disasters or other problems, by--
                    ``(A) identifying relevant programs and resources 
                to ensure that communities are aware of all available 
                Federal resources that complement or support state and 
                local resources and programs; and
                    ``(B) working with the Departments of the Treasury, 
                Agriculture, Labor, Housing and Urban Development, and 
                Education, the Small Business Administration, and other 
                agencies to ensure that communities receive Federal 
                assistance in a targeted, integrated manner;
                    ``(C) assigning a project manager as appropriate to 
                work with an affected community to carry out 
                subparagraphs (A) and (B);
            ``(2) provide technical assistance, planning grants, and 
        other assistance under this Act to help communities organize 
        themselves, develop, and carry out economic adjustment 
        strategies for replacing industry and jobs that have been lost 
        or are threatened by the economic downturn;
            ``(3) help eligible applicants in completing applications 
        for other assistance that may be useful in alleviating the 
        economic distress in the communities; and
            ``(4) perform such other duties as the Secretary may deem 
        appropriate.''.

SEC. 504. AUTHORIZATION OF APPROPRIATIONS.

    Title VII of the Public Works and Economic Development Act (42 
U.S.C. 3231) is amended by adding at the end the following:

``SEC. 704. AUTHORIZATION OF APPROPRIATIONS FOR COMMUNITY ADJUSTMENT 
              ASSISTANCE.

    ``(a) In General.--In addition to amounts made available under 
section 701, there is authorized to be appropriated $35,000,000 for 
each of fiscal years 2001 through 2005 for community adjustment 
assistance under the economic adjustment program of the Economic 
Development Administration, of which--
            ``(1) $10,000,000 is authorized to be appropriated for each 
        such fiscal year to the Office of Community Economic Adjustment 
        established under section 508(a) for the conduct of the duties 
        of the Office under section 508(b), of which not to exceed 
        $1,500,000 may be made available for salaries and expenses of 
        the Office; and
            ``(2) $25,000,000 is authorized to be appropriated for each 
        such fiscal year for additional economic development program 
        funds in addition to the amounts available for such purposes 
        for communities successfully completing planning grants (as 
        described in section 508(b)(2)) to implement their approved 
        plans.
    ``(b) Availability.--Amounts appropriated pursuant to the 
authorization of appropriations under subsection (a) are authorized to 
remain available until expended.''.

                   TITLE VI--MISCELLANEOUS PROVISIONS

SEC. 601. STUDY AND REPORT RELATING TO PILOT PROJECTS FOR PUBLIC 
              EMPLOYMENT FOR TEMPORARILY DISLOCATED WORKERS.

    (a) Study.--The Secretary of Labor shall conduct a study on the 
feasibility of establishing and carrying out 1 or more pilot projects 
to provide public employment for temporarily dislocated workers.
    (b) Report.--Not later than 1 year after the date of the enactment 
of this Act, the Secretary of Labor shall prepare and submit to the 
Congress a report that contains the results of the study conducted 
under subsection (a).

SEC. 602. RESUME PREPARATION ASSISTANCE FOR ELIGIBLE INDIVIDUALS UNDER 
              THE WORKFORCE INVESTMENT ACT OF 1998.

    (a) Youth Activities.--Section 129(c)(2) of the Workforce 
Investment Act of 1998 (29 U.S.C. 2854(c)(2)) is amended--
            (1) in subparagraph (I), by striking ``and'' at the end;
            (2) in subparagraph (J), by striking the period and 
        inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(K) assistance for the preparation of resumes and 
                related pre-employment assistance.''.
    (b) Adult and Dislocated Worker Activities.--Section 134(d)(2)(D) 
of the Workforce Investment Act of 1998 (29 U.S.C. 2864(d)(2)(D)) is 
amended by inserting after ``job search and placement assistance'' the 
following: ``, including assistance for the preparation of resumes and 
related pre-employment assistance''.

SEC. 603. FUNDING FOR INTERNATIONAL PROGRAM FOR THE ELIMINATION OF 
              CHILD LABOR (IPEC) OF THE INTERNATIONAL LABOR 
              ORGANIZATION (ILO).

    There is authorized to be appropriated to the President for a 
contribution to the International Program for the Elimination of Child 
Labor (IPEC) of the International Labor Organization (ILO) $45,000,000 
for fiscal year 2001.
                                 <all>
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