II

106TH CONGRESS

1ST SESSION S. 23

To promote a new urban agenda, and for other purposes.

IN THE SENATE OF THE UNITED STATES

JANUARY 19, 1999

Mr. SPECTER (for himself and Mr. DURBIN) introduced the following bill;

which was read twice and referred to the Committee on Finance

A BILL

To promote a new urban agenda, and for other purposes.

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 ‘‘New Urban Agenda Act of 1999’’.

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 and purposes.

TITLE I—FEDERAL COMMITMENT TO URBAN ECONOMIC

DEVELOPMENT

Sec. 101. Federal purchases from businesses in empowerment zones and enterprise communities.

Sec. 102. Minimum allocation of foreign assistance for purchase of certain

United States goods.
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Sec. 103. Preference for location of manufacturing outreach centers in urban

areas.

Sec. 104. Preference for construction and improvement of Federal facilities in

distressed urban areas.

Sec. 105. Definitions.

TITLE II—TAX INCENTIVES TO STIMULATE URBAN ECONOMIC

DEVELOPMENT

Sec. 201. Treatment of rehabilitation credit under passive activity limitations.

Sec. 202. Rehabilitation credit allowed to offset portion of alternative minimum

tax.

Sec. 203. Commercial industrial development bonds.

Sec. 204. Increase in amount of qualified small issue bonds permitted for facilities to be used by related principal users.

Sec. 205. Simplification of arbitrage interest rebate waiver.

Sec. 206. Qualified residential rental project bonds partially exempt from State

volume cap.

Sec. 207. Expansion of qualified wages subject to work opportunity credit.

Sec. 208. Exclusion for capital gains on certain investments within empowerment zones and enterprise communities.

TITLE III—COMMUNITY-BASED HOUSING DEVELOPMENT

Sec. 301. Block grant study.

TITLE IV—RESPONSE TO URBAN ENVIRONMENTAL CHALLENGES

Sec. 401. Release from liability of persons that fulfill requirements of State and

local law.

Sec. 402. Brownfield program.

Sec. 403. Reauthorization of urban and community forestry assistance program.

1 SEC. 2. FINDINGS AND PURPOSES.

2 (a) FINDINGS.—The Congress finds that—

3 (1) cities in the United States have been facing

4 an economic downhill trend in the past several years;

5 and

6 (2) a new approach to help such cities prosper

7 is necessary.

8 (b) PURPOSES.—It is the purpose of this Act to—

9 (1) provide various incentives for the economic

10 growth of cities in the United States;
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1 (2) provide an economic agenda designed to re2 verse current urban economic trends; and

3 (3) revitalize the jobs and tax base of such cit4 ies without significant new Federal outlays.

5 TITLE I—FEDERAL COMMIT6 MENT TO URBAN ECONOMIC

7 DEVELOPMENT

8 SEC. 101. FEDERAL PURCHASES FROM BUSINESSES IN EM9 POWERMENT ZONES AND ENTERPRISE COM10 MUNITIES.

11 (a) REQUIREMENTS.—The Office of Federal Procure12 ment Policy Act (41 U.S.C. 401 et seq.) is amended by

13 adding at the end the following new section:

14 ‘‘PURCHASES FROM BUSINESSES IN EMPOWERMENT

15 ZONES, ENTERPRISE COMMUNITIES, AND ENTER16 PRISE ZONES

17 ‘‘SEC. 40. (a) MINIMUM PURCHASE REQUIRE18 MENT.—Not less than 15 percent of the total amount ex19 pended by executive agencies for the purchase of goods

20 in a fiscal year shall be expended for the purchase of goods

21 from businesses located in empowerment zones or enter22 prise communities.

23 ‘‘(b) RECYCLED PRODUCTS.—To the maximum ex24 tent practicable consistent with applicable law, the head

25 of an executive agency shall purchase recycled products

26 that meet the needs of the executive agency from busi-
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1 nesses located in empowerment zones or enterprise com2 munities.

3 ‘‘(c) REGULATIONS.—The Federal Acquisition Regu4 lation shall include provisions that ensure the attainment

5 of the minimum purchase requirement set out in sub6 section (a).

7 ‘‘(d) DEFINITIONS.—In this section:

8 ‘‘(1) The term ‘empowerment zone’ means a

9 zone designated as an empowerment zone pursuant

10 to subchapter U of chapter 1 of the Internal Reve11 nue Code of 1986 (26 U.S.C. 1391 et seq.).

12 ‘‘(2) The term ‘enterprise community’ means a

13 community designated as an enterprise community

14 pursuant to subchapter U of chapter 1 of the Inter15 nal Revenue Code of 1986 (26 U.S.C. 1391 et

16 seq.).’’

17 (b) GSA ASSESSMENT.—(1) Not later than Decem18 ber 31, 1999, the Administrator of General Services shall

19 submit to Congress, in writing, the Administrator’s assess20 ment of the extent to which executive agencies are commit21 ted, by policy and practice, to encouraging and supporting

22 economic renewal in empowerment zones and enterprise

23 communities.

24 (2) In this subsection, the term ‘‘executive agency’’

25 has the meaning given such term in section 4(1) of the
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1 Office of Federal Procurement Policy Act (41 U.S.C.

2 403(1)).

3 (c) EFFECTIVE DATE.—Section 40 of the Office of

4 Federal Procurement Policy Act, as added by subsection

5 (a), shall take effect on the date of the enactment of this

6 Act and shall apply with respect to fiscal years beginning

7 after September 30, 1999.

8 (d) CONFORMING AMENDMENT.—The table of con9 tents in section 1(b) of the Office of Federal Procurement

10 Policy Act is amended by adding at the end the following

11 new item:

‘‘Sec. 40. Purchases from businesses in empowerment zones, enterprise communities and enterprise zones.’’

12 SEC. 102. MINIMUM ALLOCATION OF FOREIGN ASSISTANCE

13 FOR PURCHASE OF CERTAIN UNITED STATES

14 GOODS.

15 (a) ALLOCATION OF ASSISTANCE.—Notwithstanding

16 any other provision of law, effective beginning with fiscal

17 year 2000, not less than 15 percent of United States as18 sistance provided in a fiscal year shall be provided in the

19 form of credits which may only be used for the purchase

20 of United States goods produced, manufactured, or assem21 bled in empowerment zones or enterprise communities

22 within the United States.

23 (b) UNITED STATES ASSISTANCE.—As used in this

24 section, the term ‘‘United States assistance’’ means—
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1 (1) any assistance under the Foreign Assistance

2 Act of 1961 (22 U.S.C. 2151 et seq.);

3 (2) sales or financing of sales under the Arms

4 Export Control Act (22 U.S.C. 2751 et seq.); and

5 (3) assistance and other activities under the

6 Support for East European Democracy (SEED) Act

7 of 1989 (22 U.S.C. 5401 et seq.).

8 SEC. 103. PREFERENCE FOR LOCATION OF MANUFACTUR9 ING OUTREACH CENTERS IN URBAN AREAS.

10 (a) DESIGNATION.—In designating an organization

11 as a manufacturing outreach center under subsection

12 (c)(11) of section 5 of the Stevenson-Wydler Technology

13 Innovation Act of 1980 (15 U.S.C. 3704), the Secretary

14 of Commerce shall, to the maximum extent practicable,

15 designate organizations that are located in empowerment

16 zones or enterprise communities.

17 (b) FINANCIAL ASSISTANCE.—In utilizing a competi18 tive, merit-based review process to determine the manufac19 turing outreach centers to which to provide financial as20 sistance under such section, the Secretary shall give such

21 additional preference to centers located in empowerment

22 zones and enterprise communities as the Secretary deter23 mines appropriate in order to ensure the continuing exist24 ence of such centers in such zones and communities.
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1 SEC. 104. PREFERENCE FOR CONSTRUCTION AND IM2 PROVEMENT OF FEDERAL FACILITIES IN DIS3 TRESSED URBAN AREAS.

4 (a) DEFINITIONS.—In this section:

5 (1) DISTRESSED URBAN AREA.—The term ‘‘dis6 tressed urban area’’ means a city having a popu7 lation of more than 100,000 that, as determined by

8 the Secretary of Housing and Urban Development,

9 meets the qualifications for making an urban devel10 opment action grant to a community experiencing

11 severe economic distress established for large cities

12 and urban counties under subpart G of part 570 of

13 title 24, Code of Federal Regulations (as in effect on

14 April 1, 1998).

15 (2) EXECUTIVE AGENCY.—The term ‘‘Federal

16 agency’’ means an Executive agency (as defined in

17 section 105 of title 5, United States Code).

18 (3) FACILITY.—The term ‘‘facility’’ means any

19 place where employees of a Federal agency are regu20 larly employed.

21 (b) PREFERENCE.—Notwithstanding any other provi22 sion of law, in determining the location for the construc23 tion of a new facility of an Executive agency, in determin24 ing to improve an existing facility, or in determining the

25 location to which to relocate functions of an Executive

26 agency, the head of the Federal agency making the deter-
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1 mination shall make best efforts to construct or improve

2 the facility or to relocate the functions in a distressed

3 urban area.

4 (c) URBAN IMPACT STATEMENT.—A determination

5 to construct a new facility of an Executive agency, to im6 prove an existing facility, or to relocate the functions of

7 an Executive agency shall not be made until the head of

8 the Executive agency making the determination submits

9 to the President a report that—

10 (1) in the case of a facility to be constructed—

11 (A) identifies at least 1 distressed urban

12 area that would be an appropriate location for

13 the facility;

14 (B) describes the costs and benefits arising

15 from the construction and use of the facility in

16 the distressed urban area, including the effects

17 of the construction and use on the rate of un18 employment in the distressed urban area; and

19 (C) describes the effect on the economy of

20 the area of the closure or consolidation, if any,

21 of facilities located in the distressed urban area

22 during the 10-year period ending on the date of

23 the report, including the number of Federal and

24 non-Federal employment positions terminated
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1 in the distressed urban area as a result of the

2 closure or consolidation;

3 (2) in the case of a facility to be improved that

4 is not located in a distressed urban area—

5 (A) identifies at least 1 facility located in

6 a distressed urban area that would serve as an

7 appropriate alternative location for the facility;

8 (B) describes the costs and benefits arising

9 from the improvement and use of the facility lo10 cated in the distressed urban area as an alter11 native location for the facility to be improved,

12 including the effect of the improvement and use

13 of the facility on the rate of unemployment in

14 the distressed urban area; and

15 (C) describes the effect on the economy of

16 the distressed urban area of the closure or con17 solidation, if any, of facilities located in the dis18 tressed urban area during the 10-year period

19 ending on the date of the report, including the

20 number of Federal and non-Federal employ21 ment positions terminated in the distressed

22 urban area as a result of the closure or consoli23 dation;

24 (3) in the case of a facility to be improved that

25 is located in a distressed urban area—
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1 (A) describes the costs and benefits arising

2 from the improvement and continuing use of

3 the facility in the distressed urban area, includ4 ing the effect of the improvement and continu5 ing use on the rate of unemployment in the dis6 tressed urban area; and

7 (B) describes the effect on the economy of

8 the distressed urban area of the closure or con9 solidation, if any, of facilities located in the dis10 tressed urban area during the 10-year period

11 ending on the date of the report, including the

12 number of Federal and non-Federal employ13 ment positions terminated in the distressed

14 urban area as a result of the closure or consoli15 dation; or

16 (4) in the case of a relocation of functions—

17 (A) identifies at least 1 distressed urban

18 area that would serve as an appropriate loca19 tion for the carrying out of the functions;

20 (B) describes the costs and benefits arising

21 from carrying out the functions in the dis22 tressed urban area, including the effect of car23 rying out the functions on the rate of unem24 ployment in the distressed urban area; and
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1 (C) describes the effect on the economy of

2 the distressed urban area of the closure or con3 solidation, if any, of facilities located in the dis4 tressed urban area during the 10-year period

5 ending on the date of the report, including the

6 number of Federal and non-Federal employ7 ment positions terminated in the distressed

8 urban area as a result of such closure or con9 solidation.

10 (d) APPLICABILITY TO DEPARTMENT OF DEFENSE

11 FACILITIES.—The requirements set forth in subsections

12 (b) and (c) shall not apply to a determination to construct

13 or improve a facility of the Department of Defense, or to

14 relocate any functions of the Department of Defense, if

15 the President determines that the waiver of the application

16 of the requirements to that facility or relocation is in the

17 national interest.

18 SEC. 105. DEFINITIONS.

19 As used in this title:

20 (1) The term ‘‘empowerment zone’’ means a

21 zone designated as an empowerment zone pursuant

22 to subchapter U of chapter 1 of the Internal Reve23 nue Code of 1986 (26 U.S.C. 1391 et seq.).

24 (2) The term ‘‘enterprise community’’ means a

25 community designated as an enterprise community
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1 pursuant to subchapter U of chapter 1 of the Inter2 nal Revenue Code of 1986 (26 U.S.C. 1391 et seq.).

3 TITLE II—TAX INCENTIVES TO

4 STIMULATE URBAN ECO5 NOMIC DEVELOPMENT

6 SEC. 201. TREATMENT OF REHABILITATION CREDIT UNDER

7 PASSIVE ACTIVITY LIMITATIONS.

8 (a) GENERAL RULE.—Paragraphs (2) and (3) of sec9 tion 469(i) of the Internal Revenue Code of 1986 (relating

10 to $25,000 offset for rental real estate activities) are

11 amended to read as follows:

12 ‘‘(2) DOLLAR LIMITATIONS.—

13 ‘‘(A) IN GENERAL.—Except as otherwise

14 provided in this paragraph, the aggregate

15 amount to which paragraph (1) applies for any

16 taxable year shall not exceed $25,000, reduced

17 (but not below zero) by 50 percent of the

18 amount (if any) by which the adjusted gross in19 come of the taxpayer for the taxable year ex20 ceeds $100,000.

21 ‘‘(B) PHASEOUT NOT APPLICABLE TO

22 LOW-INCOME HOUSING CREDIT.—In the case of

23 the portion of the passive activity credit for any

24 taxable year which is attributable to any credit

25 determined under section 42—
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1 ‘‘(i) subparagraph (A) shall not apply,

2 and

3 ‘‘(ii) paragraph (1) shall not apply to

4 the extent that the deduction equivalent of

5 such portion exceeds—

6 ‘‘(I) $25,000, reduced by

7 ‘‘(II) the aggregate amount of

8 the passive activity loss (and the de9 duction equivalent of any passive ac10 tivity credit which is not so attrib11 utable and is not attributable to the

12 rehabilitation credit determined under

13 section 47) to which paragraph (1)

14 applies after the application of sub15 paragraph (A).

16 ‘‘(C) $55,500 LIMIT FOR REHABILITATION

17 CREDITS.—In the case of the portion of the

18 passive activity credit for any taxable year

19 which is attributable to the rehabilitation credit

20 determined under section 47—

21 ‘‘(i) subparagraph (A) shall not apply,

22 and

23 ‘‘(ii) paragraph (1) shall not apply to

24 the extent that the deduction equivalent of

25 such portion exceeds—
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1 ‘‘(I) $55,500, reduced by

2 ‘‘(II) the aggregate amount of

3 the passive activity loss (and the de4 duction equivalent of any passive ac5 tivity credit which is not so attrib6 utable) to which paragraph (1) applies

7 for the taxable year after the applica8 tion of subparagraphs (A) and (B).

9 ‘‘(3) ADJUSTED GROSS INCOME.—For purposes

10 of paragraph (2)(A), adjusted gross income shall be

11 determined without regard to—

12 ‘‘(A) any amount includable in gross in13 come under section 86,

14 ‘‘(B) any amount excludable from gross in15 come under section 135, 911, 931, or 933,

16 ‘‘(C) any amount allowable as a deduction

17 under section 219, and

18 ‘‘(D) any passive activity loss.’’

19 (b) CONFORMING AMENDMENTS.—

20 (1) Subparagraph (B) of section 469(i)(4) of

21 the Internal Revenue Code of 1986 is amended to

22 read as follows:

23 ‘‘(B) REDUCTION FOR SURVIVING

24 SPOUSE’S EXEMPTION.—For purposes of sub25 paragraph (A), the $25,000 amounts under
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1 paragraphs (2)(A) and (2)(B)(ii) and the

2 $55,500 amount under paragraph (2)(C)(ii)

3 shall each be reduced by the amount of the ex4 emption under paragraph (1) (determined with5 out regard to the reduction contained in para6 graph (2)(A)) which is allowable to the surviv7 ing spouse of the decedent for the taxable year

8 ending with or within the taxable year of the es9 tate.’’

10 (2) Subparagraph (A) of section 469(i)(5) of

11 such Code is amended by striking clauses (i), (ii),

12 and (iii) and inserting the following:

13 ‘‘(i) ‘$12,500’ for ‘$25,000’ in sub14 paragraphs (A) and (B)(ii) of paragraph

15 (2),

16 ‘‘(ii) ‘$50,000’ for ‘$100,000’ in para17 graph (2)(A)’’, and

18 ‘‘(iii) ‘$27,750’ for ‘$55,500’ in para19 graph (2)(C)(ii).’’

20 (3) The subsection heading for subsection (i) of

21 section 469 of such Code is amended by striking

22 ‘‘$25,000’’.

23 (c) EFFECTIVE DATE.—The amendments made by

24 this section shall apply to property placed in service on
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1 or after the date of enactment of this Act, in taxable years

2 ending on or after such date.

3 SEC. 202. REHABILITATION CREDIT ALLOWED TO OFFSET

4 PORTION OF ALTERNATIVE MINIMUM TAX.

5 (a) IN GENERAL.—Section 38(c) of the Internal Rev6 enue Code of 1986 (relating to limitation based on amount

7 of tax) is amended by redesignating paragraph (3) as

8 paragraph (4) and by inserting after paragraph (2) the

9 following:

10 ‘‘(3) REHABILITATION INVESTMENT CREDIT

11 MAY OFFSET PORTION OF MINIMUM TAX.—

12 ‘‘(A) IN GENERAL.—In the case of the re13 habilitation investment tax credit—

14 ‘‘(i) this section and section 39 shall

15 be applied separately with respect to such

16 credit, and

17 ‘‘(ii) for purposes of applying para18 graph (1) to such credit—

19 ‘‘(I) the tentative minimum tax

20 under subparagraph (A) thereof shall

21 be reduced by the minimum tax offset

22 amount determined under subpara23 graph (B) of this paragraph, and

24 ‘‘(II) the limitation under para25 graph (1) (as modified by subclause
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1 (I)) shall be reduced by the credit al2 lowed under subsection (a) for the

3 taxable year (other than the rehabili4 tation investment tax credit).

5 ‘‘(B) MINIMUM TAX OFFSET AMOUNT.—

6 For purposes of subparagraph (A)(ii)(I), the

7 minimum tax offset amount is an amount equal

8 to—

9 ‘‘(i) in the case of a taxpayer not de10 scribed in clause (ii), the lesser of—

11 ‘‘(I) 25 percent of the tentative

12 minimum tax for the taxable year, or

13 ‘‘(II) $20,000, or

14 ‘‘(ii) in the case of a C corporation

15 other than a closely held C corporation (as

16 defined in section 469(j)(1)), 5 percent of

17 the tentative minimum tax for the taxable

18 year.

19 ‘‘(C) REHABILITATION INVESTMENT TAX

20 CREDIT.—For purposes of this paragraph, the

21 term ‘regular investment tax credit’ means the

22 portion of the credit under subsection (a) which

23 is attributable to the credit determined under

24 section 47.’’
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1 (b) CONFORMING AMENDMENT.—Section 38(d) of

2 the Internal Revenue Code of 1986 (relating to compo3 nents of investment credit) is amended by adding at the

4 end the following:

5 ‘‘(4) SPECIAL RULE FOR REHABILITATION

6 CREDIT.—Notwithstanding paragraphs (1) and (2),

7 the rehabilitation investment tax credit (as defined

8 in subsection (c)(2)(C)) shall be treated as used

9 last.’’

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

11 this section shall apply to taxable years beginning after

12 December 31, 1998.

13 SEC. 203. COMMERCIAL INDUSTRIAL DEVELOPMENT

14 BONDS.

15 (a) FACILITY BONDS.—

16 (1) IN GENERAL.—Subsection (a) of section

17 142 of the Internal Revenue Code of 1986 (relating

18 to exempt facility bond) is amended by striking ‘‘or’’

19 at the end of paragraph (11), by striking the period

20 at the end of paragraph (12) and inserting a

21 comma, and by adding at the end the following:

22 ‘‘(13) sports facilities,

23 ‘‘(14) convention or trade show facilities,

24 ‘‘(15) freestanding parking facilities,

25 ‘‘(16) air or water pollution control facilities, or
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1 ‘‘(17) industrial parks.’’

2 (2) INDUSTRIAL PARKS DEFINED.—Section 142

3 of such Code is amended by adding at the end the

4 following:

5 ‘‘(k) INDUSTRIAL PARKS.—A facility shall be treated

6 as described in subsection (a)(17) only if all of the prop7 erty to be financed by the net proceeds of the issue—

8 ‘‘(1) is—

9 ‘‘(A) land, and

10 ‘‘(B) water, sewage, drainage, or similar

11 facilities, or transportation, power, or commu12 nication facilities incidental to the use of such

13 land as an industrial park, and

14 ‘‘(2) is not structures or buildings (other than

15 with respect to facilities described in paragraph

16 (1)(B)).’’

17 (3) CONFORMING AMENDMENTS.—

18 (A) Section 147(c) of such Code (relating

19 to limitation on use for land acquisition) is

20 amended by adding at the end the following:

21 ‘‘(4) SPECIAL RULE FOR INDUSTRIAL PARKS.—

22 In the case of a bond described in section

23 142(a)(17), paragraph (1)(A) shall be applied by

24 substituting ‘50 percent’ for ‘25 percent’.’’
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1 (B) Section 147(e) of such Code (relating

2 to no portion of bonds may be issued for

3 skyboxes, airplanes, gambling establishments,

4 etc.) is amended by striking ‘‘A private activity

5 bond’’ and inserting ‘‘Except in the case of a

6 bond described in section 142(a)(13), a private

7 activity bond’’.

8 (b) SMALL ISSUE BONDS.—Section 144(a)(12) of the

9 Internal Revenue Code of 1986 (relating to termination

10 of qualified small issue bonds) is amended—

11 (1) by striking ‘‘any bond’’ in subparagraph

12 (A)(i) and inserting ‘‘any bond described in subpara13 graph (B)’’,

14 (2) by striking ‘‘a bond’’ in subparagraph

15 (A)(ii) and inserting ‘‘a bond described in subpara16 graph (B)’’, and

17 (3) by striking subparagraph (B) and inserting

18 the following:

19 ‘‘(B) BONDS FOR FARMING PURPOSES.—A

20 bond is described in this subparagraph if it is

21 issued as part of an issue 95 percent or more

22 of the net proceeds of which are to be used to

23 provide any land or property not in accordance

24 with section 147(c)(2).’’
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1 (c) EFFECTIVE DATE.—The amendments made by

2 this section shall apply to bonds issued after December

3 31, 1998.

4 SEC. 204. INCREASE IN AMOUNT OF QUALIFIED SMALL

5 ISSUE BONDS PERMITTED FOR FACILITIES

6 TO BE USED BY RELATED PRINCIPAL USERS.

7 (a) IN GENERAL.—Clause (i) of section 144(a)(4)(A)

8 of the Internal Revenue Code of 1986 (relating to

9 $10,000,000 limit in certain cases) is amended by striking

10 ‘‘$10,000,000’’ and inserting ‘‘$50,000,000’’.

11 (b) CLERICAL AMENDMENT.—The heading of para12 graph (4) of section 144(a) of the Internal Revenue Code

13 of 1986 is amended by striking ‘‘$10,000,000’’ and insert14 ing ‘‘$50,000,000’’.

15 (c) EFFECTIVE DATE.—The amendments made by

16 this section shall apply to—

17 (1) obligations issued after the date of enact18 ment of this Act, and

19 (2) capital expenditures made after such date

20 with respect to obligations issued on or before such

21 date.

22 SEC. 205. SIMPLIFICATION OF ARBITRAGE INTEREST RE23 BATE WAIVER.

24 (a) IN GENERAL.—Clause (ii) of section 148(f)(4)(C)

25 of the Internal Revenue Code of 1986 (relating to excep-
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1 tion from rebate for certain proceeds to be used to finance

2 construction expenditures) is amended to read as follows:

3 ‘‘(ii) SPENDING REQUIREMENT.—The

4 spending requirement of this clause is met

5 if 100 percent of the available construction

6 proceeds of the construction issue are

7 spent for the governmental purposes of the

8 issue within the 3-year period beginning on

9 the date the bonds are issued.’’

10 (b) CONFORMING AMENDMENTS.—

11 (1) Clause (iii) of section 148(f)(4)(C) of the

12 Internal Revenue Code of 1986 (relating to excep13 tion for reasonable retainage) is repealed.

14 (2) Subclause (II) of section 148(f)(4)(C)(vi) of

15 such Code (relating to available construction pro16 ceeds) is amended by striking ‘‘2-year period’’ and

17 inserting ‘‘3-year period’’.

18 (3) Subclause (I) of section 148(f)(4)(C)(vii) of

19 such Code (relating to election to pay penalty in lieu

20 of rebate) is amended by striking ‘‘, with respect to

21 each 6-month period after the date the bonds were

22 issued,’’ and ‘‘, as of the close of such 6-month pe23 riod,’’.

24 (4) Clause (viii) of section 148(f)(4)(C) of such

Code (relating to election to terminate 11 25 ⁄2 percent
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1 penalty) is amended by striking ‘‘to any 6-month pe2 riod’’ in the matter preceding subclause (I).

3 (5) Clause (ii) of section 148(c)(2)(C) of such

4 Code (relating to bonds used to provide construction

5 financing) is amended by striking ‘‘2 years’’ and in6 serting ‘‘3 years’’.

7 (c) EFFECTIVE DATE.—The amendments made by

8 this section shall apply to bonds issued after the date of

9 enactment of this Act.

10 SEC. 206. QUALIFIED RESIDENTIAL RENTAL PROJECT

11 BONDS PARTIALLY EXEMPT FROM STATE

12 VOLUME CAP.

13 (a) IN GENERAL.—Section 146(g) of the Internal

14 Revenue Code of 1986 (relating to exception for certain

15 bonds) is amended by striking ‘‘and’’ at the end of para16 graph (3), by striking the period at the end of paragraph

17 (4) and inserting ‘‘, and’’, and by inserting after para18 graph (4) the following:

19 ‘‘(5) 75 percent of any exempt facility bond

20 issued as part of an issue described in section

21 142(a)(7) (relating to qualified residential rental

22 projects).’’

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

24 this section shall apply to bonds issued after the date of

25 enactment of this Act.
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1 SEC. 207. EXPANSION OF QUALIFIED WAGES SUBJECT TO

2 WORK OPPORTUNITY CREDIT.

3 (a) INCREASE IN PERCENTAGE.—Section 51(a) of

4 the Internal Revenue Code of 1986 (relating to determina5 tion of amount) is amended by striking ‘‘40 percent’’ and

6 inserting ‘‘50 percent’’.

7 (b) FIRST 3 YEARS OF WAGES SUBJECT TO CRED8 IT.—Section 51 of the Internal Revenue Code of 1986 (re9 lating to amount of credit) is amended—

10 (1) in subsections (a) and (b)(3), by striking

11 ‘‘first-year’’; and

12 (2) in subsection (b)—

13 (A) by striking paragraphs (1) and (2) and

14 inserting the following:

15 ‘‘(1) IN GENERAL.—The term ‘qualified wages’

16 means the wages paid or incurred by the employer

17 during the taxable year—

18 ‘‘(A) with respect to an individual who is

19 a member of a targeted group, and

20 ‘‘(B) attributable to service rendered by

21 such individual during the 3-year period begin22 ning with the day the individual begins work for

23 the employer.’’; and

24 (B) by redesignating paragraph (3) as

25 paragraph (2).
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1 (b) EFFECTIVE DATE.—The amendments made by

2 this section shall apply to individuals who begin work for

3 the employer after the date of enactment of this Act.

4 SEC. 208. EXCLUSION FOR CAPITAL GAINS ON CERTAIN IN5 VESTMENTS WITHIN EMPOWERMENT ZONES

6 AND ENTERPRISE COMMUNITIES.

7 (a) IN GENERAL.—Part II of subchapter U of chap8 ter 1 of the Internal Revenue Code of 1986 is amended

9 by adding at the end the following new section:

10 ‘‘SEC. 1395. EXCLUSION FOR GAIN FROM ZONE OR COMMU11 NITY INVESTMENTS.

12 ‘‘(a) GENERAL RULE.—In the case of a taxpayer,

13 gross income shall not include any qualified capital gain

14 recognized on the sale or exchange of a qualified zone

15 asset held for more than 3 years.

16 ‘‘(b) QUALIFIED ZONE ASSET.—For purposes of this

17 section—

18 ‘‘(1) IN GENERAL.—The term ‘qualified zone

19 asset’ means, with respect to any qualified small

20 business—

21 ‘‘(A) any qualified zone stock,

22 ‘‘(B) any qualified zone property, and

23 ‘‘(C) any qualified zone partnership inter24 est.

25 ‘‘(2) QUALIFIED SMALL BUSINESS.—
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•S 23 IS

1 ‘‘(A) IN GENERAL.—The term ‘qualified

2 small business’ means any entity or proprietor3 ship the aggregate gross assets (within the

4 meaning of section 1202(d)(2)) of which do not

5 exceed $50,000,000.

6 ‘‘(B) APPLICATION OF RULES.—In deter7 mining if an entity or proprietorship is a quali8 fied small business, rules similar to the rules of

9 subsections (a) and (b) of section 52 shall

10 apply.

11 ‘‘(3) QUALIFIED ZONE STOCK.—

12 ‘‘(A) IN GENERAL.—Except as provided in

13 subparagraph (B), the term ‘qualified zone

14 stock’ means any stock in a domestic corpora15 tion if—

16 ‘‘(i) such stock is acquired by the tax17 payer on original issue from the corpora18 tion solely in exchange for cash,

19 ‘‘(ii) as of the time such stock was

20 issued, such corporation was an enterprise

21 zone business (or, in the case of a new cor22 poration, such corporation was being orga23 nized for purposes of being an enterprise

24 zone business), and
27

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1 ‘‘(iii) during substantially all of the

2 taxpayer’s holding period for such stock,

3 such corporation qualified as an enterprise

4 zone business.

5 ‘‘(B) REDEMPTIONS.—The term ‘qualified

6 zone stock’ shall not include any stock acquired

7 from a corporation which made a substantial

8 stock redemption or distribution (without a

9 bona fide business purpose therefor) in an at10 tempt to avoid the purposes of this section.

11 ‘‘(4) QUALIFIED ZONE PROPERTY.—

12 ‘‘(A) IN GENERAL.—The term ‘qualified

13 zone property’ has the meaning given to such

14 term by section 1397C, except that references

15 to empowerment zones shall be treated as in16 cluding references to enterprise communities.

17 ‘‘(5) QUALIFIED ZONE PARTNERSHIP INTER18 EST.—The term ‘qualified zone partnership interest’

19 means any interest in a partnership if—

20 ‘‘(A) such interest is acquired by the tax21 payer from the partnership solely in exchange

22 for cash,

23 ‘‘(B) as of the time such interest was ac24 quired, such partnership was an enterprise zone

25 business (or, in the case of a new partnership,
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1 such partnership was being organized for pur2 poses of being an enterprise zone business), and

3 ‘‘(C) during substantially all of the tax4 payer’s holding period for such interest, such

5 partnership qualified as an enterprise zone

6 business.

7 A rule similar to the rule of paragraph (2)(B) shall

8 apply for purposes of this paragraph.

9 ‘‘(6) TREATMENT OF SUBSEQUENT PUR10 CHASERS.—The term ‘qualified zone asset’ includes

11 any property which would be a qualified zone asset

12 but for paragraph (3)(A)(i), section 1397(a)(1)(B),

13 or paragraph (5)(A) in the hands of the taxpayer if

14 such property was a qualified zone asset in the

15 hands of any prior holder.

16 ‘‘(7) 10-YEAR SAFE HARBOR.—If any property

17 ceases to be a qualified zone asset by reason of para18 graph (3)(A)(iii), section 1397(a)(1)(C), or para19 graph (5)(C) after the 10-year period beginning on

20 the date the taxpayer acquired such property, such

21 property shall continue to be treated as meeting the

22 requirements of such paragraph; except that the

23 amount of gain to which subsection (a) applies on

24 any sale or exchange of such property shall not ex25 ceed the amount which would be qualified capital
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•S 23 IS

1 gain had such property been sold on the date of such

2 cessation.

3 ‘‘(8) TREATMENT OF ZONE OR COMMUNITY

4 TERMINATIONS.—The termination of any designa5 tion of an area as an empowerment zone or enter6 prise community shall be disregarded for purposes of

7 determining whether any property is a qualified zone

8 asset.

9 ‘‘(c) OTHER DEFINITIONS AND SPECIAL RULES.—

10 For purposes of this section—

11 ‘‘(1) ENTERPRISE ZONE BUSINESS.—For pur12 poses of this section, the term ‘enterprise zone busi13 ness’ has the meaning given to such term by section

14 1394(b)(3).’’

15 ‘‘(2) QUALIFIED CAPITAL GAIN.—Except as

16 otherwise provided in this subsection, the term

17 ‘qualified capital gain’ means any long-term capital

18 gain.

19 ‘‘(3) CERTAIN GAIN ON REAL PROPERTY NOT

20 QUALIFIED.—The term ‘qualified capital gain’ shall

21 not include any gain which would be treated as ordi22 nary income under section 1250 if section 1250 ap23 plied to all depreciation rather than the additional

24 depreciation.
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1 ‘‘(4) GAIN ATTRIBUTABLE TO PERIODS AFTER

2 TERMINATION OF ZONE OR COMMUNITY DESIGNA3 TION NOT QUALIFIED.—The term ‘qualified capital

4 gain’ shall not include any gain attributable to peri5 ods after the termination of any designation of an

6 area as an empowerment zone or enterprise commu7 nity.

8 ‘‘(d) TREATMENT OF PASS-THRU ENTITIES.—

9 ‘‘(1) SALES AND EXCHANGES.—Gain on the

10 sale or exchange of an interest in a pass-thru entity

11 which is a qualified small business held by the tax12 payer (other than an interest in an entity which was

13 an enterprise zone business during substantially all

14 of the period the taxpayer held such interest) for

15 more than 3 years shall be treated as gain described

16 in subsection (a) to the extent such gain is attrib17 utable to amounts which would be qualified capital

18 gain on qualified zone assets (determined as if such

19 assets had been sold on the date of the sale or ex20 change) held by such entity for more than 3 years

21 and throughout the period the taxpayer held such in22 terest. A rule similar to the rule of paragraph (2)(B)

23 shall apply for purposes of the preceding sentence.

24 ‘‘(2) DISTRIBUTIONS.—
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1 ‘‘(A) IN GENERAL.—Any amount included

2 in income by reason of holding an interest in a

3 pass-thru entity (other than an entity which

4 was an enterprise zone business during substan5 tially all of the period the taxpayer held the in6 terest to which such inclusion relates) shall be

7 treated as gain described in subsection (a) if

8 such amount meets the requirements of sub9 paragraph (B).

10 ‘‘(B) REQUIREMENTS.—An amount meets

11 the requirements of this subparagraph if—

12 ‘‘(i) such amount is attributable to

13 gain on the sale or exchange by the pass14 thru entity of property which is a qualified

15 zone asset in the hands of such entity and

16 which was held by such entity for the pe17 riod required under subsection (a), and

18 ‘‘(ii) such amount is includible in the

19 gross income of the taxpayer by reason of

20 the holding of an interest in such entity

21 which was held by the taxpayer on the date

22 on which such pass-thru entity acquired

23 such asset and at all times thereafter be24 fore the disposition of such asset by such

25 pass-thru entity.
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1 ‘‘(C) LIMITATION BASED ON INTEREST

2 ORIGINALLY HELD BY TAXPAYER.—Subpara3 graph (A) shall not apply to any amount to the

4 extent such amount exceeds the amount to

5 which subparagraph (A) would have applied if

6 such amount were determined by reference to

7 the interest the taxpayer held in the pass-thru

8 entity on the date the qualified zone asset was

9 acquired.

10 ‘‘(3) PASS-THRU ENTITY.—For purposes of this

11 subsection, the term ‘pass-thru entity’ means—

12 ‘‘(A) any partnership,

13 ‘‘(B) any S corporation,

14 ‘‘(C) any regulated investment company,

15 and

16 ‘‘(D) any common trust fund.

17 ‘‘(e) SALES AND EXCHANGES OF INTERESTS IN

18 PARTNERSHIPS AND S CORPORATIONS WHICH ARE

19 QUALIFIED ZONE BUSINESSES.—In the case of the sale

20 or exchange of an interest in a partnership, or of stock

21 in an S Corporation, which was an enterprise zone busi22 ness during substantially all of the period the taxpayer

23 held such interest or stock, is an enterprise zone business,

24 the amount of qualified capital gain shall be determined

25 without regard to—
33

•S 23 IS

1 ‘‘(1) any intangible, and any land, which is not

2 an integral part of any qualified business (as defined

3 in section 1397B(d)), and

4 ‘‘(2) gain attributable to periods before the des5 ignation of an area as an empowerment zone or en6 terprise community.

7 ‘‘(f) CERTAIN TAX-FREE AND OTHER TRANSFERS.—

8 For purposes of this section—

9 ‘‘(1) IN GENERAL.—In the case of a transfer of

10 a qualified zone asset to which this subsection ap11 plies, the transferee shall be treated as—

12 ‘‘(A) having acquired such asset in the

13 same manner as the transferor, and

14 ‘‘(B) having held such asset during any

15 continuous period immediately preceding the

16 transfer during which it was held (or treated as

17 held under this subsection) by the transferor.

18 ‘‘(2) TRANSFERS TO WHICH SUBSECTION AP19 PLIES.—This subsection shall apply to any

20 transfer—

21 ‘‘(A) by gift,

22 ‘‘(B) at death, or

23 ‘‘(C) from a partnership to a partner

24 thereof of a qualified zone asset with respect to

25 which the requirements of subsection (d)(2) are
34

•S 23 IS

1 met at the time of the transfer (without regard

2 to the 3-year holding requirement).

3 ‘‘(3) CERTAIN RULES MADE APPLICABLE.—

4 Rules similar to the rules of section 1244(d)(2) shall

5 apply for purposes of this section.’’

6 (b) CONFORMING AMENDMENTS.—

7 (1) Section 172(d)(2)(B) of the Internal Reve8 nue Code of 1986 (relating to modifications with re9 spect to net operating loss deduction) is amended by

10 striking ‘‘section 1202’’ and inserting ‘‘sections

11 1202 and 1395B’’.

12 (2) Section 642(c)(4) of such Code (relating to

13 adjustments) is amended by inserting ‘‘or

14 1395B(a)’’ after ‘‘section 1202(a)’’ and by inserting

15 ‘‘or 1395B’’ after ‘‘section 1202’’.

16 (3) Section 643(a)(3) of such Code (defining

17 distributable net income) is amended by striking

18 ‘‘section 1202’’ and inserting ‘‘sections 1202 and

19 1395B’’.

20 (4) Section 691(c)(4) of such Code (relating to

21 coordination with capital gain provisions) is amend22 ed by striking ‘‘1202, and 1211’’ and inserting

23 ‘‘1202, 1211, and 1395B’’.

24 (5) The second sentence of section 871(a)(2) of

25 such Code (relating to capital gains of aliens present
35

•S 23 IS

1 in the United States 183 days or more) is amended

2 by inserting ‘‘or 1395B’’ after ‘‘section 1202’’.

3 (6) Part II of subchapter U of chapter 1 of

4 such Code is amended to read as follows:

5 ‘‘PART II—INCENTIVES FOR EMPOWERMENT

6 ZONES AND ENTERPRISE COMMUNITIES.’’

7 (7) The table of parts of subchapter U of chap8 ter 1 of such Code is amended to read as follows:

‘‘Part II. Incentives for empowerment zones and enterprise communities.’’

9 (8) The table of sections of part II of sub10 chapter U of chapter 1 of such Code is amended by

11 adding at the end the following new item:

‘‘Sec. 1395. Exclusion for gain from zone or community investments.’’

12 (c) EFFECTIVE DATE.—The amendments made by

13 this section shall apply to taxable years beginning after

14 December 31, 1998.

15 SEC. 209. HOMEBUYER CREDIT FOR EMPOWERMENT ZONES

16 AND ENTERPRISE COMMUNITIES.

17 (a) IN GENERAL.—Part II of subchapter U of chap18 ter 1 of the Internal Revenue Code of 1986, as amended

19 by section 208, is amended by adding at the end the fol20 lowing new section:

21 ‘‘SEC. 1395A. HOMEBUYER CREDIT.

22 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in23 dividual who purchases a principal residence in an em-
36

•S 23 IS

1 powerment zone or enterprise community during any tax2 able year, there shall be allowed as a credit against the

3 tax imposed by this chapter for the taxable year an

4 amount equal to so much of the purchase price of the resi5 dence as does not exceed $5,000.

6 ‘‘(b) LIMITATIONS.—

7 ‘‘(1) LIMITATION BASED ON MODIFIED AD8 JUSTED GROSS INCOME.—

9 ‘‘(A) IN GENERAL.—The amount allowable

10 as a credit under subsection (a) (determined

11 without regard to this subsection and sub12 section (d)) for the taxable year shall be re13 duced (but not below zero) by the amount

14 which bears the same ratio to the credit so al15 lowable as—

16 ‘‘(i) the excess (if any) of—

17 ‘‘(I) the taxpayer’s modified ad18 justed gross income for such taxable

19 year, over

20 ‘‘(II) $70,000 ($110,000 in the

21 case of a joint return), bears to

22 ‘‘(ii) $20,000.

23 ‘‘(B) MODIFIED ADJUSTED GROSS IN24 COME.—For purposes of subparagraph (A), the

25 term ‘modified adjusted gross income’ means
37

•S 23 IS

1 the adjusted gross income of the taxpayer for

2 the taxable year increased by any amount ex3 cluded from gross income under section 911,

4 931, or 933.

5 ‘‘(2) PURCHASE PRICE LIMITATION.—A credit

6 shall not be allowed under subsection (a) with re7 spect to the purchase of a residence the purchase

8 price of which exceeds $225,000.

9 ‘‘(c) PRINCIPAL RESIDENCE.—For purposes of this

10 section, the term ‘principal residence’ has the same mean11 ing as when used in section 121.

12 ‘‘(d) CARRYOVER OF CREDIT.—If the credit allowable

13 under subsection (a) exceeds the limitation imposed by

14 section 26(a) for such taxable year reduced by the sum

15 of the credits allowable under subpart A of part IV of sub16 chapter A (other than this section), such excess shall be

17 carried to the succeeding taxable year and added to the

18 credit allowable under subsection (a) for such taxable year.

19 ‘‘(e) SPECIAL RULES.—For purposes of this

20 section—

21 ‘‘(1) ALLOCATION OF DOLLAR LIMITATION.—

22 ‘‘(A) MARRIED INDIVIDUALS FILING SEPA23 RATELY.—In the case of a married individual

24 filing a separate return, subsection (a) shall be

25 applied by substituting ‘$2,500’ for ‘$5,000’.
38

•S 23 IS

1 ‘‘(B) OTHER TAXPAYERS.—If 2 or more

2 individuals who are not married purchase a

3 principal residence, the amount of the credit al4 lowed under subsection (a) shall be allocated

5 among such individuals in such manner as the

6 Secretary may prescribe, except that the total

7 amount of the credits allowed to all such indi8 viduals shall not exceed $5,000.

9 ‘‘(2) PURCHASE.—

10 ‘‘(A) IN GENERAL.—The term ‘purchase’

11 means any acquisition, but only if—

12 ‘‘(i) the property is not acquired from

13 a person whose relationship to the person

14 acquiring it would result in the disallow15 ance of losses under section 267 or 707(b)

16 (but, in applying section 267 (b) and (c)

17 for purposes of this section, paragraph (4)

18 of section 267(c) shall be treated as pro19 viding that the family of an individual shall

20 include only his spouse, ancestors, and lin21 eal descendants), and

22 ‘‘(ii) the basis of the property in the

23 hands of the person acquiring it is not

24 determined—
39

•S 23 IS

1 ‘‘(I) in whole or in part by ref2 erence to the adjusted basis of such

3 property in the hands of the person

4 from whom acquired, or

5 ‘‘(II) under section 1014(a) (re6 lating to property acquired from a de7 cedent).

8 ‘‘(B) CONSTRUCTION.—A residence which

9 is constructed by the taxpayer shall be treated

10 as purchased by the taxpayer on the date the

11 taxpayer first occupies such residence.

12 ‘‘(3) PURCHASE PRICE.—The term ‘purchase

13 price’ means the adjusted basis of the principal resi14 dence on the date such residence is purchased.

15 ‘‘(f) REPORTING.—If the Secretary requires informa16 tion reporting under section 6045 by a person described

17 in subsection (e)(2) thereof to verify the eligibility of tax18 payers for the credit allowable by this section, the excep19 tion provided by section 6045(e)(5) shall not apply.

20 ‘‘(g) CREDIT TREATED AS NONREFUNDABLE PER21 SONAL CREDIT.—For purposes of this title, the credit al22 lowed by this section shall be treated as a credit allowable

23 under subpart A of part IV of subchapter A of this chap24 ter.
40

•S 23 IS

1 ‘‘(h) BASIS ADJUSTMENT.—For purposes of this sub2 title, if a credit is allowed under this section with respect

3 to the purchase of any residence, the basis of such resi4 dence shall be reduced by the amount of the credit so al5 lowed.

6 ‘‘(i) APPLICATION OF SECTION.—This section shall

7 apply to property purchased after December 31, 1998, and

8 before January 1, 2002.’’

9 (b) CONFORMING AMENDMENT.—The table of sec10 tions of part II of subchapter U of chapter 1 of such Code

11 is amended by adding at the end the following new item:

‘‘Sec. 1395A. Homebuyer credit.’’

12 TITLE III—COMMUNITY-BASED

13 HOUSING DEVELOPMENT

14 SEC. 301. BLOCK GRANT STUDY.

15 (a) STUDY.—

16 (1) IN GENERAL.—The Secretary of Housing

17 and Urban Development shall conduct a study

18 regarding—

19 (A) the feasibility of consolidating existing

20 public and low-income housing programs under

21 the United States Housing Act of 1937 into a

22 comprehensive block grant system of Federal

23 aid that—

24 (i) provides assistance on an annual

25 basis;
41

•S 23 IS

1 (ii) maximizes funding certainty and

2 flexibility; and

3 (iii) minimizes paperwork and delay;

4 and

5 (B) the possibility of administering future

6 public and low-income housing programs under

7 the United States Housing Act of 1937 in ac8 cordance with such a block grant system.

9 (2) PUBLIC HOUSING/SECTION 8 MOVING TO

10 WORK DEMONSTRATION.—In conducting the study

11 described in paragraph (1), the Secretary of Hous12 ing and Urban Development shall consider data

13 from and assessments of the demonstration program

14 conducted under section 204 of the Omnibus Con15 solidated Rescissions and Appropriations Act of

16 1996 (Public Law 104–134, 110 Stat. 1321).

17 (b) REPORT TO COMPTROLLER GENERAL.—Not later

18 than 18 months after the date of enactment of this Act,

19 the Secretary of Housing and Urban Development shall

20 submit to the Comptroller General of the United States

21 a report that includes—

22 (1) the results of the study conducted under

23 subsection (a); and

24 (2) any recommendations for legislation.
42

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1 (c) REPORT TO CONGRESS.—Not later than 24

2 months after the date of enactment of this Act, the Comp3 troller General of the United States shall submit to the

4 Congress a report that includes—

5 (1) an analysis of the report submitted under

6 subsection (b); and

7 (2) any recommendations for legislation.

8 TITLE IV—RESPONSE TO URBAN

9 ENVIRONMENTAL CHALLENGES

10 SEC. 401. RELEASE FROM LIABILITY OF PERSONS THAT

11 FULFILL REQUIREMENTS OF STATE AND

12 LOCAL LAW.

13 Section 107 of the Comprehensive Environmental Re14 sponse, Compensation, and Liability Act of 1980 (42

15 U.S.C. 9607) is amended by adding at the end the follow16 ing:

17 ‘‘(o) RELEASE FROM LIABILITY OF PERSONS THAT

18 FULFILL REQUIREMENTS OF STATE AND LOCAL LAW.—

19 ‘‘(1) DEFINITIONS.—In this subsection—

20 ‘‘(A) URBAN AREA.—The term ‘urban

21 area’ has the meaning given the term in section

22 1393(a) of the Internal Revenue Code of 1986.

23 ‘‘(B) URBAN NONLISTED FACILITY.—The

24 term ‘urban nonlisted facility’ means a facility

25 that is located in an urban area and is not list-
43

•S 23 IS

1 ed or proposed for listing on the National Pri2 orities List.

3 ‘‘(2) IN GENERAL.—Neither the President nor

4 any other person may bring an administrative or ju5 dicial enforcement action under this Act with respect

6 to an urban nonlisted facility against a person that

7 has fulfilled all requirements applicable to the person

8 under State and local law to conduct a response ac9 tion at the urban nonlisted facility, as evidenced by

10 a release from liability issued by authorized State

11 and local officials, to the extent that the administra12 tive or judicial action would seek to require response

13 action that is within the scope of the response action

14 conducted in accordance with State and local law.’’

15 SEC. 402. BROWNFIELD PROGRAM.

16 Title I of the Comprehensive Environmental Re17 sponse, Compensation, and Liability Act of 1980 (42

18 U.S.C. 9601 et seq.) is amended by adding at the end

19 the following:

20 ‘‘SEC. 127. BROWNFIELD PROGRAM.

21 ‘‘(a) DEFINITION OF BROWNFIELD FACILITY.—In

22 this section—

23 ‘‘(1) IN GENERAL.—The term ‘brownfield facil24 ity’ means a parcel of land that contains an aban25 doned, idled, or underused commercial or industrial
44

•S 23 IS

1 facility, the expansion or redevelopment of which is

2 complicated by the presence or potential presence of

3 a hazardous substance.

4 ‘‘(2) EXCLUSIONS.—The term ‘brownfield facil5 ity’ does not include—

6 ‘‘(A) a facility that is the subject of a re7 moval or planned removal under this title;

8 ‘‘(B) a facility that is listed or has been

9 proposed for listing on the National Priorities

10 List or that has been removed from the Na11 tional Priorities List;

12 ‘‘(C) a facility that is subject to corrective

13 action under section 3004(u) or 3008(h) of the

14 Solid Waste Disposal Act (42 U.S.C. 6924(u)

15 or 6928(h)) at the time at which an application

16 for a grant or loan concerning the facility is

17 submitted under this section;

18 ‘‘(D) a land disposal unit with respect to

19 which—

20 ‘‘(i) a closure notification under sub21 title C of the Solid Waste Disposal Act (42

22 U.S.C. 6921 et seq.) has been submitted;

23 and

24 ‘‘(ii) closure requirements have been

25 specified in a closure plan or permit;
45

•S 23 IS

1 ‘‘(E) a facility with respect to which an ad2 ministrative order on consent or judicial con3 sent decree requiring cleanup has been entered

4 into by the United States under this Act, the

5 Solid Waste Disposal Act (42 U.S.C. 6901 et

6 seq.), the Federal Water Pollution Control Act

7 (33 U.S.C. 1251 et seq.), the Toxic Substances

8 Control Act (15 U.S.C. 2601 et seq.), or the

9 Safe Drinking Water Act (42 U.S.C. 300f et

10 seq.);

11 ‘‘(F) a facility that is owned or operated

12 by a department, agency, or instrumentality of

13 the United States; or

14 ‘‘(G) a portion of a facility, for which por15 tion, assistance for response activity has been

16 obtained under subtitle I of the Solid Waste

17 Disposal Act (42 U.S.C. 6991 et seq.) from the

18 Leaking Underground Storage Tank Trust

19 Fund established under section 9508 of the In20 ternal Revenue Code of 1986.

21 ‘‘(b) MAINTENANCE OF BROWNFIELD PROGRAM.—

22 The Administrator shall maintain the brownfield program

23 established by the Administrator before the date of enact24 ment of this section.
46

•S 23 IS

1 ‘‘(c) ELEMENTS OF PROGRAM.—In conducting the

2 brownfield program, the Administrator may—

3 ‘‘(1) expend funds to identify and examine idle

4 or underused industrial and commercial facilities for

5 inclusion in the brownfield program; and

6 ‘‘(2) provide grants to State and local govern7 ments to clean up brownfields and return

8 brownfields to productive use.

9 ‘‘(d) MAXIMUM GRANT AMOUNT.—A grant under

10 subsection (c) shall not exceed $200,000 with respect to

11 any brownfield facility.

12 ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There

13 are authorized to be appropriated out of the Hazardous

14 Substance Superfund to carry out this section—

15 ‘‘(1) $50,000,000 for fiscal year 2000;

16 ‘‘(2) $55,000,000 for fiscal year 2001; and

17 ‘‘(3) $60,000,000 for fiscal year 2002.’’

18 SEC. 403. REAUTHORIZATION OF URBAN AND COMMUNITY

19 FORESTRY ASSISTANCE PROGRAM.

20 Section 9(i) of the Cooperative Forestry Assistance

21 Act of 1978 (16 U.S.C. 2105(i)) is amended by striking

22 ‘‘$30,000,000 for each of the fiscal years 1991 through

23 1995’’ and inserting ‘‘$50,000,000 for each of fiscal years

24 2000 through 2005’’.

Æ