324
‘‘(I) WAIVER OF 60-DAY REQUIREMENT.—
The Secretary may waive the 60-day require-
ment under subparagraphs (A) and (D) where
the failure to waive such requirement would be
against equity or good conscience, including
casualty, disaster, or other events beyond the
reasonable control of the individual subject to
such requirement.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to distributions after December 31,
2000.
SEC. 1235. TREATMENT OF FORMS OF DISTRIBUTION.
(a) PLAN TRANSFERS.—
(1) IN
GENERAL.—Paragraph (6) of section
411(d) (relating to accrued benefit not to be de-
creased by amendment) is amended by adding at the
end the following:
‘‘(D) PLAN TRANSFERS.—
‘‘(i) A defined contribution plan (in
this subparagraph referred to as the
‘transferee plan’) shall not be treated as
failing to meet the requirements of this
subsection merely because the transferee
plan does not provide some or all of the
forms of distribution previously available
325
under another defined contribution plan
(in this subparagraph referred to as the
‘transferor plan’) to the extent that—
‘‘(I) the forms of distribution
previously available under the trans-
feror plan applied to the account of a
participant or beneficiary under the
transferor plan that was transferred
from the transferor plan to the trans-
feree plan pursuant to a direct trans-
fer rather than pursuant to a distribu-
tion from the transferor plan;
‘‘(II) the terms of both the trans-
feror plan and the transferee plan au-
thorize the transfer described in sub-
clause (I);
‘‘(III) the transfer described in
subclause (I) was made pursuant to a
voluntary election by the participant
or beneficiary whose account was
transferred to the transferee plan;
‘‘(IV) the election described in
subclause (III) was made after the
participant or beneficiary received a
326
notice describing the consequences of
making the election;
‘‘(V) if the transferor plan pro-
vides for an annuity as the normal
form of distribution under the plan in
accordance with section 417, the
transfer is made with the consent of
the participant’s spouse (if any), and
such consent meets requirements simi-
lar to the requirements imposed by
section 417(a)(2); and
‘‘(VI) the transferee plan allows
the participant or beneficiary de-
scribed in subclause (III) to receive
any distribution to which the partici-
pant or beneficiary is entitled under
the transferee plan in the form of a
single sum distribution.
‘‘(ii) Clause (i) shall apply to plan
mergers and other transactions having the
effect of a direct transfer, including con-
solidations of benefits attributable to dif-
ferent employers within a multiple em-
ployer plan.
327
‘‘(E) ELIMINATION OF FORM OF DISTRIBU-
TION.—Except to the extent provided in regula-
tions, a defined contribution plan shall not be
treated as failing to meet the requirements of
this section merely because of the elimination of
a form of distribution previously available there-
under. This subparagraph shall not apply to the
elimination of a form of distribution with re-
spect to any participant unless—
‘‘(i) a single sum payment is available
to such participant at the same time or
times as the form of distribution being
eliminated; and
‘‘(ii) such single sum payment is
based on the same or greater portion of
the participant’s account as the form of
distribution being eliminated.’’.
(2) EFFECTIVE DATE.—The amendment made
by this subsection shall apply to years beginning
after December 31, 2000.
(b) REGULATIONS.—
(1) IN GENERAL.—The last sentence of para-
graph (6)(B) of section 411(d) (relating to accrued
benefit not to be decreased by amendment) is
amended to read as follows: ‘‘The Secretary may by
328
regulations provide that this subparagraph shall not
apply to any plan amendment that does not ad-
versely affect the rights of participants in a material
manner.’’.
(2) SECRETARY
DIRECTED.—Not later than
December 31, 2001, the Secretary of the Treasury
is directed to issue final regulations under section
411(d)(6) of the Internal Revenue Code of 1986.
Such regulations shall apply to plan years beginning
after December 31, 2001, or such earlier date as is
specified by the Secretary of the Treasury.
SEC. 1236. RATIONALIZATION OF RESTRICTIONS ON DIS-
TRIBUTIONS.
(a) MODIFICATION OF SAME DESK EXCEPTION.—
(1) SECTION 401(k).—
(A) Section 401(k)(2)(B)(i)(I) (relating to
qualified cash or deferred arrangements) is
amended by striking ‘‘separation from service’’
and inserting ‘‘severance from employment’’.
(B) 
Subparagraph 
(A) 
of 
section
401(k)(10) (relating to distributions upon ter-
mination of plan or disposition of assets or sub-
sidiary) is amended to read as follows:
‘‘(A) IN GENERAL.—An event described in
this subparagraph is the termination of the
329
plan without establishment or maintenance of
another defined contribution plan (other than
an employee stock ownership plan as defined in
section 4975(e)(7)).’’.
(C) Section 401(k)(10) is amended—
(i) in subparagraph (B)—
(I) by striking ‘‘An event’’ in
clause (i) and inserting ‘‘A termi-
nation’’, and
(II) by striking ‘‘the event’’ in
clause (i) and inserting ‘‘the termi-
nation’’,
(ii) by striking subparagraph (C), and
(iii) by striking ‘‘OR DISPOSITION OF
ASSETS OR SUBSIDIARY’’ in the heading.
(2) SECTION 403(b).—
(A) Paragraphs (7)(A)(ii) and (11)(A) of
section 403(b) are each amended by striking
‘‘separates from service’’ and inserting ‘‘has a
severance from employment’’.
(B) The heading for paragraph (11) of
section 403(b) is amended by striking ‘‘SEPARA-
TION
FROM
SERVICE’’ and inserting ‘‘SEVER-
ANCE FROM EMPLOYMENT’’.
330
(3) SECTION
457.—Clause (ii) of section
457(d)(1)(A) is amended by striking ‘‘is separated
from service’’ and inserting ‘‘has a severance from
employment’’.
(b) EFFECTIVE DATE.—The amendments made by
this section shall apply to distributions after December 31,
2000.
SEC. 1237. PURCHASE OF SERVICE CREDIT IN GOVERN-
MENTAL DEFINED BENEFIT PLANS.
(a) 403(b) PLANS.—Subsection (b) of section 403 is
amended by adding at the end the following new para-
graph:
‘‘(13) TRUSTEE-TO-TRUSTEE
TRANSFERS
TO
PURCHASE
PERMISSIVE
SERVICE
CREDIT.—No
amount shall be includible in gross income by reason
of a direct trustee-to-trustee transfer to a defined
benefit governmental plan (as defined in section
414(d)) if such transfer is—
‘‘(A) for the purchase of permissive service
credit (as defined in section 415(n)(3)(A))
under such plan, or
‘‘(B) a repayment to which section 415
does not apply by reason of subsection (k)(3)
thereof.’’.
(b) 457 PLANS.—
331
(1) Subsection (e) of section 457 is amended by
adding after paragraph (17) the following new para-
graph:
‘‘(18) TRUSTEE-TO-TRUSTEE
TRANSFERS
TO
PURCHASE
PERMISSIVE
SERVICE
CREDIT.—No
amount shall be includible in gross income by reason
of a direct trustee-to-trustee transfer to a defined
benefit governmental plan (as defined in section
414(d)) if such transfer is—
‘‘(A) for the purchase of permissive service
credit (as defined in section 415(n)(3)(A))
under such plan, or
‘‘(B) a repayment to which section 415
does not apply by reason of subsection (k)(3)
thereof.’’.
(2) Section 457(b)(2) is amended by striking
‘‘(other than rollover amounts)’’ and inserting
‘‘(other than rollover amounts and amounts received
in a transfer referred to in subsection (e)(16))’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to trustee-to-trustee transfers after
December 31, 2000.
332
SEC. 1238. EMPLOYERS MAY DISREGARD ROLLOVERS FOR
PURPOSES OF CASH-OUT AMOUNTS.
(a) IN GENERAL.—Section 411(a)(11) (relating to
restrictions on certain mandatory distributions) is amend-
ed by adding at the end the following:
‘‘(D) SPECIAL RULE FOR ROLLOVER CON-
TRIBUTIONS.—A plan shall not fail to meet the
requirements of this paragraph if, under the
terms of the plan, the present value of the non-
forfeitable accrued benefit is determined with-
out regard to that portion of such benefit which
is attributable to rollover contributions (and
earnings allocable thereto). For purposes of this
subparagraph, the term ‘rollover contributions’
means any rollover contribution under sections
402(c), 403(a)(4), 403(b)(8), 408(d)(3)(A)(ii),
and 457(e)(16).’’.
(b) ELIGIBLE DEFERRED COMPENSATION PLANS.—
Clause (i) of section 457(e)(9)(A) is amended by striking
‘‘such amount’’ and inserting ‘‘the portion of such amount
which is not attributable to rollover contributions (as de-
fined in section 411(a)(11)(D))’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to distributions after December 31,
2000.
333
SEC. 1239. MINIMUM DISTRIBUTION AND INCLUSION RE-
QUIREMENTS FOR SECTION 457 PLANS.
(a) MINIMUM
DISTRIBUTION
REQUIREMENTS.—
Paragraph (2) of section 457(d) (relating to distribution
requirements) is amended to read as follows:
‘‘(2) 
MINIMUM
DISTRIBUTION
REQUIRE-
MENTS.—A plan meets the minimum distribution re-
quirements of this paragraph if such plan meets the
requirements of section 401(a)(9).’’.
(b) INCLUSION IN GROSS INCOME.—
(1) YEAR
OF
INCLUSION.—Subsection (a) of
section 457 (relating to year of inclusion in gross in-
come) is amended to read as follows:
‘‘(a) YEAR OF INCLUSION IN GROSS INCOME.—
‘‘(1) IN GENERAL.—Any amount of compensa-
tion deferred under an eligible deferred compensa-
tion plan, and any income attributable to the
amounts so deferred, shall be includible in gross in-
come only for the taxable year in which such com-
pensation or other income—
‘‘(A) is paid to the participant or other
beneficiary, in the case of a plan of an eligible
employer described in subsection (e)(1)(A), and
‘‘(B) is paid or otherwise made available to
the participant or other beneficiary, in the case
334
of a plan of an eligible employer described in
subsection (e)(1)(B).
‘‘(2) 
SPECIAL
RULE
FOR
ROLLOVER
AMOUNTS.—To the extent provided in section
72(t)(9), section 72(t) shall apply to any amount in-
cludible in gross income under this subsection.’’.
(2) CONFORMING
AMENDMENT.—So much of
paragraph (9) of section 457(e) as precedes subpara-
graph (A) is amended to read as follows:
‘‘(9) BENEFITS OF TAX EXEMPT ORGANIZATION
PLANS NOT TREATED AS MADE AVAILABLE BY REA-
SON OF CERTAIN ELECTIONS, ETC.—In the case of
an eligible deferred compensation plan of an em-
ployer described in subsection (e)(1)(B)—’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to distributions after December 31,
2000.
Subtitle D—Strengthening Pension
Security and Enforcement
SEC. 1241. REPEAL OF 150 PERCENT OF CURRENT LIABIL-
ITY FUNDING LIMIT.
(a) IN GENERAL.—Section 412(c)(7) (relating to
full-funding limitation) is amended—
(1) by striking ‘‘the applicable percentage’’ in
subparagraph (A)(i)(I) and inserting ‘‘in the case of
335
plan years beginning before January 1, 2004, the
applicable percentage’’, and
(2) by amending subparagraph (F) to read as
follows:
‘‘(F) 
APPLICABLE
PERCENTAGE.—For
purposes of subparagraph (A)(i)(I), the applica-
ble percentage shall be determined in accord-
ance with the following table:
‘‘In the case of any plan year
The applicable
beginning in—
percentage is—
2001 .............................................................................
160
2002 .............................................................................
165
2003 .............................................................................
170.’’.
(b) EFFECTIVE DATE.—The amendments made by
this section shall apply to plan years beginning after De-
cember 31, 2000.
SEC. 1242. MAXIMUM CONTRIBUTION DEDUCTION RULES
MODIFIED AND APPLIED TO ALL DEFINED
BENEFIT PLANS.
(a) IN GENERAL.—Subparagraph (D) of section
404(a)(1) (relating to special rule in case of certain plans)
is amended to read as follows:
‘‘(D) SPECIAL RULE IN CASE OF CERTAIN
PLANS.—
‘‘(i) IN GENERAL.—In the case of any
defined benefit plan, except as provided in
regulations, the maximum amount deduct-
ible under the limitations of this paragraph
336
shall not be less than the unfunded termi-
nation liability (determined as if the pro-
posed termination date referred to in sec-
tion 4041(b)(2)(A)(i)(II) of the Employee
Retirement Income Security Act of 1974
were the last day of the plan year).
‘‘(ii) PLANS
WITH
LESS
THAN
100
PARTICIPANTS.—For purposes of this sub-
paragraph, in the case of a plan which has
less than 100 participants for the plan
year, termination liability shall not include
the liability attributable to benefit in-
creases for highly compensated employees
(as defined in section 414(q)) resulting
from a plan amendment which is made or
becomes effective, whichever is later, within
the last 2 years before the termination
date.
‘‘(iii) RULE FOR DETERMINING NUM-
BER OF PARTICIPANTS.—For purposes of
determining whether a plan has more than
100 participants, all defined benefit plans
maintained by the same employer (or any
member of such employer’s controlled
group (within the meaning of section
337
412(l)(8)(C))) shall be treated as 1 plan,
but only employees of such member or em-
ployer shall be taken into account.
‘‘(iv) PLANS ESTABLISHED AND MAIN-
TAIN BY PROFESSIONAL SERVICE EMPLOY-
ERS.—Clause (i) shall not apply to a plan
described in section 4021(b)(13) of the
Employee Retirement Income Security Act
of 1974.’’.
(b) CONFORMING AMENDMENT.—Paragraph (6) of
section 4972(c) is amended to read as follows:
‘‘(6) EXCEPTIONS.—In determining the amount
of nondeductible contributions for any taxable year,
there shall not be taken into account so much of the
contributions to 1 or more defined contribution
plans which are not deductible when contributed
solely because of section 404(a)(7) as does not ex-
ceed the greater of—
‘‘(A) the amount of contributions not in
excess of 6 percent of compensation (within the
meaning of section 404(a)) paid or accrued
(during the taxable year for which the contribu-
tions were made) to beneficiaries under the
plans, or
‘‘(B) the sum of—
338
‘‘(i) the amount of contributions de-
scribed in section 401(m)(4)(A), plus
‘‘(ii) the amount of contributions de-
scribed in section 402(g)(3)(A).
For purposes of this paragraph, the deductible limits
under section 404(a)(7) shall first be applied to
amounts contributed to a defined benefit plan and
then to amounts described in subparagraph (B).’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to plan years beginning after De-
cember 31, 2000.
SEC. 1243. EXCISE TAX RELIEF FOR SOUND PENSION FUND-
ING.
(a) IN GENERAL.—Subsection (c) of section 4972
(relating to nondeductible contributions) is amended by
adding at the end the following new paragraph:
‘‘(7) DEFINED BENEFIT PLAN EXCEPTION.—In
determining the amount of nondeductible contribu-
tions for any taxable year, an employer may elect for
such year not to take into account any contributions
to a defined benefit plan except to the extent that
such contributions exceed the full-funding limitation
(as defined in section 412(c)(7), determined without
regard to subparagraph (A)(i)(I) thereof). For pur-
poses of this paragraph, the deductible limits under
339
section 404(a)(7) shall first be applied to amounts
contributed to defined contribution plans and then
to amounts described in this paragraph. If an em-
ployer makes an election under this paragraph for a
taxable year, paragraph (6) shall not apply to such
employer for such taxable year.’’.
(b) EFFECTIVE DATE.—The amendments made by
this section shall apply to years beginning after December
31, 2000.
SEC. 1244. EXCISE TAX ON FAILURE TO PROVIDE NOTICE
BY DEFINED BENEFIT PLANS SIGNIFICANTLY
REDUCING FUTURE BENEFIT ACCRUALS.
(a) IN GENERAL.—Chapter 43 of subtitle D (relating
to qualified pension, etc., plans) is amended by adding at
the end the following new section:
‘‘SEC. 4980F. FAILURE OF APPLICABLE PLANS REDUCING
BENEFIT ACCRUALS TO SATISFY NOTICE RE-
QUIREMENTS.
‘‘(a) IMPOSITION OF TAX.—There is hereby imposed
a tax on the failure of any applicable pension plan to meet
the requirements of subsection (e) with respect to any ap-
plicable individual.
‘‘(b) AMOUNT OF TAX.—
‘‘(1) IN GENERAL.—The amount of the tax im-
posed by subsection (a) on any failure with respect
340
to any applicable individual shall be $100 for each
day in the noncompliance period with respect to such
failure.
‘‘(2) NONCOMPLIANCE PERIOD.—For purposes
of this section, the term ‘noncompliance period’
means, with respect to any failure, the period begin-
ning on the date the failure first occurs and ending
on the date the failure is corrected.
‘‘(c) LIMITATIONS ON AMOUNT OF TAX.—
‘‘(1) OVERALL
LIMITATION
FOR
UNINTEN-
TIONAL FAILURES.—In the case of failures that are
due to reasonable cause and not to willful neglect,
the tax imposed by subsection (a) for failures during
the taxable year of the employer (or, in the case of
a multiemployer plan, the taxable year of the trust
forming part of the plan) shall not exceed $500,000.
For purposes of the preceding sentence, all multiem-
ployer plans of which the same trust forms a part
shall be treated as 1 plan. For purposes of this
paragraph, if not all persons who are treated as a
single employer for purposes of this section have the
same taxable year, the taxable years taken into ac-
count shall be determined under principles similar to
the principles of section 1561.
341
‘‘(2) WAIVER BY SECRETARY.—In the case of a
failure which is due to reasonable cause and not to
willful neglect, the Secretary may waive part or all
of the tax imposed by subsection (a) to the extent
that the payment of such tax would be excessive rel-
ative to the failure involved.
‘‘(d) LIABILITY FOR TAX.—The following shall be lia-
ble for the tax imposed by subsection (a):
‘‘(1) In the case of a plan other than a multi-
employer plan, the employer.
‘‘(2) In the case of a multiemployer plan, the
plan.
‘‘(e) NOTICE REQUIREMENTS FOR PLANS SIGNIFI-
CANTLY REDUCING BENEFIT ACCRUALS.—
‘‘(1) IN
GENERAL.—If an applicable pension
plan is amended to provide for a significant reduc-
tion in the rate of future benefit accrual, the plan
administrator shall provide written notice to each
applicable individual (and to each employee organi-
zation representing applicable individuals).
‘‘(2) NOTICE.—The notice required by para-
graph (1) shall be written in a manner calculated to
be understood by the average plan participant and
shall provide sufficient information (as determined
in accordance with regulations prescribed by the
342
Secretary) to allow applicable individuals to under-
stand the effect of the plan amendment.
‘‘(3) TIMING OF NOTICE.—Except as provided
in regulations, the notice required by paragraph (1)
shall be provided within a reasonable time before the
effective date of the plan amendment.
‘‘(4) DESIGNEES.—Any notice under paragraph
(1) may be provided to a person designated, in writ-
ing, by the person to which it would otherwise be
provided.
‘‘(5) NOTICE
BEFORE
ADOPTION
OF
AMEND-
MENT.—A plan shall not be treated as failing to
meet the requirements of paragraph (1) merely be-
cause notice is provided before the adoption of the
plan amendment if no material modification of the
amendment occurs before the amendment is adopt-
ed.
‘‘(f) APPLICABLE INDIVIDUAL; APPLICABLE PEN-
SION PLAN.—For purposes of this section—
‘‘(1) APPLICABLE INDIVIDUAL.—The term ‘ap-
plicable individual’ means, with respect to any plan
amendment—
‘‘(A) any participant in the plan, and
‘‘(B) any beneficiary who is an alternate
payee (within the meaning of section 414(p)(8))
343
under an applicable qualified domestic relations
order 
(within 
the 
meaning 
of 
section
414(p)(1)(A)),
who may reasonably be expected to be affected by
such plan amendment.
‘‘(2) APPLICABLE
PENSION
PLAN.—The term
‘applicable pension plan’ means—
‘‘(A) any defined benefit plan, or
‘‘(B) an individual account plan which is
subject to the funding standards of section 412,
which had 100 or more participants who had ac-
crued a benefit, or with respect to whom contribu-
tions were made, under the plan (whether or not
vested) as of the last day of the plan year preceding
the plan year in which the plan amendment becomes
effective.’’.
(b) CLERICAL AMENDMENT.—The table of sections
for chapter 43 of subtitle D is amended by adding at the
end the following new item:
‘‘Sec. 4980F. Failure of applicable plans reducing benefit accruals
to satisfy notice requirements.’’.
(c) EFFECTIVE DATES.—
(1) IN GENERAL.—The amendments made by
this section shall apply to plan amendments taking
effect on or after the date of the enactment of this
Act.
344
(2) TRANSITION.—Until such time as the Sec-
retary of the Treasury issues regulations under sec-
tions 4980F(e)(2) and (3) of the Internal Revenue
Code of 1986 (as added by the amendment made by
subsection (a)), a plan shall be treated as meeting
the requirements of such section if it makes a good
faith effort to comply with such requirements.
(3) SPECIAL RULE.—The period for providing
any notice required by the amendments made by this
section shall not end before the date which is 3
months after the date of the enactment of this Act.
Subtitle E—Reducing Regulatory
Burdens
SEC. 1251. REPEAL OF THE MULTIPLE USE TEST.
(a) IN GENERAL.—Paragraph (9) of section 401(m)
is amended to read as follows:
‘‘(9) REGULATIONS.—The Secretary shall pre-
scribe such regulations as may be necessary to carry
out the purposes of this subsection and subsection
(k), including regulations permitting appropriate ag-
gregation of plans and contributions.’’.
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply to years beginning after December
31, 2000.
345
SEC. 1252. MODIFICATION OF TIMING OF PLAN VALU-
ATIONS.
(a) IN GENERAL.—Section 412(c)(9) (relating to an-
nual valuation) is amended—
(1) by striking ‘‘For purposes’’ and inserting
the following:
‘‘(A) IN GENERAL.—For purposes’’, and
(2) by adding at the end the following:
‘‘(B) ELECTION
TO
USE
PRIOR
YEAR
VALUATION.—
‘‘(i) IN
GENERAL.—Except as pro-
vided in clause (ii), if, for any plan year—
‘‘(I) an election is in effect under
this subparagraph with respect to a
plan, and
‘‘(II) the assets of the plan are
not less than 125 percent of the
plan’s current liability (as defined in
paragraph (7)(B)), determined as of
the valuation date for the preceding
plan year,
then this section shall be applied using the
information available as of such valuation
date.
‘‘(ii) EXCEPTIONS.—
346
‘‘(I) ACTUAL VALUATION EVERY
3 YEARS.—Clause (i) shall not apply
for more than 2 consecutive plan
years and valuation shall be under
subparagraph (A) with respect to any
plan year to which clause (i) does not
apply by reason of this clause.
‘‘(II) REGULATIONS.—Subclause
(I) shall not apply to the extent that
more frequent valuations are required
under the regulations under subpara-
graph (A).
‘‘(iii) 
ADJUSTMENTS.—Information
under clause (i) shall, in accordance with
regulations, be actuarially adjusted to re-
flect significant differences in participants.
‘‘(iv) ELECTION.—An election under
this subparagraph, once made, shall be ir-
revocable without the consent of the Sec-
retary.’’.
(b) EFFECTIVE DATE.—The amendments made by
this section shall apply to plan years beginning after De-
cember 31, 2000.
347
SEC. 1253. FLEXIBILITY AND NONDISCRIMINATION AND
LINE OF BUSINESS RULES.
The Secretary of the Treasury shall, on or before De-
cember 31, 2000, modify the existing regulations issued
under section 401(a)(4) and section 414(r) of the Internal
Revenue Code of 1986 in order to expand (to the extent
that the Secretary determines appropriate) the ability of
a pension plan to demonstrate compliance with the non-
discrimination and line of business requirements based
upon the facts and circumstances surrounding the design
and operation of the plan, even though the plan is unable
to satisfy the mechanical tests currently used to determine
compliance.
SEC. 1254. ESOP DIVIDENDS MAY BE REINVESTED WITHOUT
LOSS OF DIVIDEND DEDUCTION.
(a) IN GENERAL.—Section 404(k)(2)(A) (defining
applicable dividends) is amended by striking ‘‘or’’ at the
end of clause (ii), by redesignating clause (iii) as clause
(iv), and by inserting after clause (ii) the following new
clause:
‘‘(iii) is, at the election of such par-
ticipants or their beneficiaries—
‘‘(I) payable as provided in clause
(i) or (ii), or
348
‘‘(II) paid to the plan and rein-
vested in qualifying employer securi-
ties, or’’.
(b) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 2000.
SEC. 1255. NOTICE AND CONSENT PERIOD REGARDING DIS-
TRIBUTIONS.
(a) EXPANSION OF PERIOD.—
(1) IN GENERAL.—Subparagraph (A) of section
417(a)(6) is amended by striking ‘‘90-day’’ and in-
serting ‘‘180-day’’.
(2) MODIFICATION
OF
REGULATIONS.—The
Secretary of the Treasury shall modify the regula-
tions under sections 402(f), 411(a)(11), and 417 of
the Internal Revenue Code of 1986 to substitute
‘‘180 days’’ for ‘‘90 days’’ each place it appears in
Treasury Regulations sections 1.402(f)–1, 1.411(a)–
11(c), and 1.417(e)–1(b).
(3) EFFECTIVE DATE.—The amendments made
by paragraph (1) and the modifications required by
paragraph (2) shall apply to years beginning after
December 31, 2000.
(b) CONSENT REGULATION INAPPLICABLE TO CER-
TAIN DISTRIBUTIONS.—
349
(1) IN GENERAL.—The Secretary of the Treas-
ury shall modify the regulations under section
411(a)(11) of the Internal Revenue Code of 1986 to
provide that the description of a participant’s right,
if any, to defer receipt of a distribution shall also de-
scribe the consequences of failing to defer such re-
ceipt.
(2) EFFECTIVE DATE.—The modifications re-
quired by paragraph (1) shall apply to years begin-
ning after December 31, 2000.
SEC. 1256. REPEAL OF TRANSITION RULE RELATING TO
CERTAIN HIGHLY COMPENSATED EMPLOY-
EES.
(a) IN GENERAL.—Paragraph (4) of section 1114(c)
of the Tax Reform Act of 1986 is hereby repealed.
(b) EFFECTIVE DATE.—The repeal made by sub-
section (a) shall apply to plan years beginning after De-
cember 31, 2000.
SEC. 1257. EMPLOYEES OF TAX-EXEMPT ENTITIES.
(a) IN GENERAL.—The Secretary of the Treasury
shall modify Treasury Regulations section 1.410(b)–6(g)
to provide that employees of an organization described in
section 403(b)(1)(A)(i) of the Internal Revenue Code of
1986 who are eligible to make contributions under section
403(b) pursuant to a salary reduction agreement may be
350
treated as excludable with respect to a plan under section
401(k), or section 401(m) of such Code that is provided
under the same general arrangement as a plan under such
section 401(k), if—
(1) no employee of an organization described in
section 403(b)(1)(A)(i) of such Code is eligible to
participate in such section 401(k) plan or section
401(m) plan, and
(2) 95 percent of the employees who are not
employees of an organization described in section
403(b)(1)(A)(i) of such Code are eligible to partici-
pate in such section 401(k) plan or section 401(m)
plan.
(b) EFFECTIVE DATE.—The modification required by
subsection (a) shall apply as of the same date set forth
in section 1426(b) of the Small Business Job Protection
Act of 1996.
SEC. 1258. CLARIFICATION OF TREATMENT OF EMPLOYER-
PROVIDED RETIREMENT ADVICE.
(a) IN GENERAL.—Subsection (a) of section 132 (re-
lating to exclusion from gross income) is amended by
striking ‘‘or’’ at the end of paragraph (5), by striking the
period at the end of paragraph (6) and inserting ‘‘, or’’,
and by adding at the end the following new paragraph:
‘‘(7) qualified retirement planning services.’’.
351
(b) QUALIFIED RETIREMENT PLANNING SERVICES
DEFINED.—Section 132 is amended by redesignating sub-
section (m) as subsection (n) and by inserting after sub-
section (l) the following:
‘‘(m) QUALIFIED RETIREMENT PLANNING SERV-
ICES.—
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, the term ‘qualified retirement planning serv-
ices’ means any retirement planning service provided
to an employee and his spouse by an employer main-
taining a retirement plan.
‘‘(2) NONDISCRIMINATION
RULE.—Subsection
(a)(7) shall apply in the case of highly compensated
employees only if such services are available on sub-
stantially the same terms to each member of the
group of employees normally provided education and
information regarding the employer’s pension plan.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to years beginning after December
31, 2000.
SEC. 1259. PROVISIONS RELATING TO PLAN AMENDMENTS.
(a) IN GENERAL.—If this section applies to any plan
or contract amendment—
(1) such plan or contract shall be treated as
being operated in accordance with the terms of the
352
plan during the period described in subsection
(b)(2)(A), and
(2) such plan shall not fail to meet the require-
ments of section 411(d)(6) of the Internal Revenue
Code of 1986 by reason of such amendment.
(b) AMENDMENTS TO WHICH SECTION APPLIES.—
(1) IN GENERAL.—This section shall apply to
any amendment to any plan or annuity contract
which is made—
(A) pursuant to any amendment made by
this title, or pursuant to any regulation issued
under this title, and
(B) on or before the last day of the first
plan year beginning on or after January 1,
2003.
In the case of a government plan (as defined in sec-
tion 414(d) of the Internal Revenue Code of 1986,
this paragraph shall be applied by substituting
‘‘2005’’ for ‘‘2003’’.
(2) CONDITIONS.—This section shall not apply
to any amendment unless—
(A) during the period—
(i) beginning on the date the legisla-
tive or regulatory amendment described in
paragraph (1)(A) takes effect (or in the
353
case of a plan or contract amendment not
required by such legislative or regulatory
amendment, the effective date specified by
the plan), and
(ii) ending on the date described in
paragraph (1)(B) (or, if earlier, the date
the plan or contract amendment is adopt-
ed),
the plan or contract is operated as if such plan
or contract amendment were in effect, and
(B) such plan or contract amendment ap-
plies retroactively for such period.
SEC. 1260. MODEL PLANS FOR SMALL BUSINESSES.
(a) IN GENERAL.—Not later than December 31,
2000, the Secretary of the Treasury is directed to issue
at least one model defined contribution plan and at least
one model defined benefit plan that fit the needs of small
businesses and that shall be treated as meeting the re-
quirements of section 401(a) of the Internal Revenue Code
of 1986 with respect to the form of the plan. To the extent
that the requirements of section 401(a) of such Code are
modified after the issuance of such plans, the Secretary
of the Treasury shall, in a timely manner, issue model
amendments that, if adopted in a timely manner by an
employer that has a model plan in effect, shall cause such
354
model plan to be treated as meeting the requirements of
section 401(a) of such Code, as modified, with respect to
the form of the plan.
(b) PROTOTYPE PLAN ALTERNATIVE.—The Sec-
retary of the Treasury may satisfy the requirements of
subsection (a) through the enhancement and simplification
of the Secretary’s programs for prototype plans in such
a manner as to achieve the purposes of subsection (a).
SEC. 1261. SIMPLIFIED ANNUAL FILING REQUIREMENT FOR
PLANS WITH FEWER THAN 25 EMPLOYEES.
(a) IN GENERAL.—In the case of a retirement plan
which covers less than 25 employees on the 1st day of
the plan year and meets the requirements described in
subsection (b), the Secretary of the Treasury shall provide
for the filing of a simplified annual return that is substan-
tially similar to the annual return required to be filed by
a one-participant retirement plan.
(b) REQUIREMENTS.—A plan meets the requirements
of this subsection if it—
(1) meets the minimum coverage requirements
of section 410(b) of the Internal Revenue Code of
1986 without being combined with any other plan of
the business that covers the employees of the busi-
ness,
355
(2) does not cover a business that is a member
of an affiliated service group, a controlled group of
corporations, or a group of businesses under com-
mon control, and
(3) does not cover a business that leases em-
ployees.
SEC. 1262. IMPROVEMENT OF EMPLOYEE PLANS COMPLI-
ANCE RESOLUTION SYSTEM.
The Secretary of the Treasury shall continue to up-
date and improve the Employee Plans Compliance Resolu-
tion System (or any successor program) giving special at-
tention to—
(1) increasing the awareness and knowledge of
small employers concerning the availability and use
of the program,
(2) taking into account special concerns and
circumstances that small employers face with respect
to compliance and correction of compliance failures,
(3) extending the duration of the self-correction
period under the Administrative Policy Regarding
Self-Correction for significant compliance failures,
(4) expanding the availability to correct insig-
nificant compliance failures under the Administra-
tive Policy Regarding Self-Correction during audit,
and
356
(5) assuring that any tax, penalty, or sanction
that is imposed by reason of a compliance failure is
not excessive and bears a reasonable relationship to
the nature, extent, and severity of the failure.
SEC. 1263. TREATMENT OF MULTIEMPLOYER PLANS UNDER
SECTION 415.
(a) IN GENERAL.—Paragraph (11) of section 415(b)
(relating to limitation for defined benefit plans) is amend-
ed to read as follows:
‘‘(11) SPECIAL LIMITATION RULE FOR GOVERN-
MENTAL AND MULTIEMPLOYER PLANS.—In the case
of a governmental plan (as defined in section
414(d)) or a multiemployer plan (as defined in sec-
tion 414(f)), subparagraph (B) of paragraph (1)
shall not apply.’’.
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply to years beginning after December
31, 2000.
357
TITLE XIII—MISCELLANEOUS
PROVISIONS
Subtitle A—Provisions Primarily
Affecting Individuals
SEC. 1301. EXCLUSION FOR FOSTER CARE PAYMENTS TO
APPLY TO PAYMENTS BY QUALIFIED PLACE-
MENT AGENCIES.
(a) IN GENERAL.—The matter preceding subpara-
graph (B) of section 131(b)(1) (defining qualified foster
care payment) is amended to read as follows:
‘‘(1) IN GENERAL.—The term ‘qualified foster
care payment’ means any payment made pursuant to
a foster care program of a State or political subdivi-
sion thereof—
‘‘(A) which is paid by—
‘‘(i) a State or political subdivision
thereof, or
‘‘(ii) a qualified foster care placement
agency, and’’.
(b) QUALIFIED FOSTER INDIVIDUALS TO INCLUDE
INDIVIDUALS PLACED BY QUALIFIED PLACEMENT AGEN-
CIES.—Subparagraph (B) of section 131(b)(2) (defining
qualified foster individual) is amended to read as follows:
‘‘(B) a qualified foster care placement
agency.’’.
358
(c) QUALIFIED FOSTER CARE PLACEMENT AGENCY
DEFINED.—Subsection (b) of section 131 is amended by
redesignating paragraph (3) as paragraph (4) and by in-
serting after paragraph (2) the following new paragraph:
‘‘(3) QUALIFIED
FOSTER
CARE
PLACEMENT
AGENCY.—The term ‘qualified foster care placement
agency’ means any placement agency which is li-
censed or certified by—
‘‘(A) a State or political subdivision there-
of, or
‘‘(B) an entity designated by a State or
political subdivision thereof,
for the foster care program of such State or political
subdivision to make foster care payments to pro-
viders of foster care.’’.
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 1999.
SEC. 1302. MILEAGE REIMBURSEMENTS TO CHARITABLE
VOLUNTEERS EXCLUDED FROM GROSS IN-
COME.
(A) IN GENERAL.—Part III of subchapter B of chap-
ter 1 is amended by inserting after section 138 the fol-
lowing new section:
359
‘‘SEC. 138A. MILEAGE REIMBURSEMENTS TO CHARITABLE
VOLUNTEERS.
‘‘(a) IN GENERAL.—Gross income of an individual
does not include amounts received, from an organization
described in section 170(c), as reimbursement of operating
expenses with respect to use of a passenger automobile
for the benefit of such organization. The preceding sen-
tence shall apply only to the extent that such reimburse-
ment would be deductible under section 274(d) (deter-
mined by applying the standard business mileage rate es-
tablished pursuant to section 274(d)) if the organization
were not so described and such individual were an em-
ployee of such organization.
‘‘(b) NO DOUBLE BENEFIT.—Subsection (a) shall
not apply with respect to any expenses if the individual
claims a deduction or credit for such expenses under any
other provision of this title.
‘‘(c) EXEMPTION
FROM
REPORTING
REQUIRE-
MENTS.—Section 6041 shall not apply with respect to re-
imbursements excluded from income under subsection
(a).’’.
(b) CLERICAL AMENDMENT.—The table of sections
for part III of subchapter B of chapter 1 is amended by
inserting after the item relating to section 138 the fol-
lowing new item:
360
‘‘Sec. 138A. Reimbursement for use of passenger automobile for
charity.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 1999.
SEC. 1303. W–2 TO INCLUDE EMPLOYER SOCIAL SECURITY
TAXES.
(a) IN GENERAL.—Subsection (a) of section 6051
(relating to receipts for employees) is amended by striking
‘‘and’’ at the end of paragraph (10), by striking the period
at the end of paragraph (11) and inserting a comma, and
by inserting after paragraph (11) the following new para-
graphs:
‘‘(12) the amount of tax imposed by section
3111(a), and
‘‘(13) the amount of tax imposed by section
3111(b).’’.
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply with respect to remuneration paid
after December 31, 1999.
SEC. 1304. CONSISTENT TREATMENT OF SURVIVOR BENE-
FITS FOR PUBLIC SAFETY OFFICERS KILLED
IN THE LINE OF DUTY.
Subsection (b) of section 1528 of the Taxpayer Relief
Act of 1997 (Public Law 105–34) is amended by striking
the period and inserting ‘, and to amounts received in tax-
361
able years beginning after December 31, 1999, with re-
spect to individuals dying on or before December 31,
1996.’’.
Subtitle B—Provisions Primarily
Affecting Businesses
SEC. 1311. DISTRIBUTIONS FROM PUBLICLY TRADED PART-
NERSHIPS TREATED AS QUALIFYING INCOME
OF REGULATED INVESTMENT COMPANIES.
(a) IN GENERAL.—Paragraph (2) of section 851(b)
(defining regulated investment company) is amended by
inserting ‘‘income derived from an interest in a publicly
traded partnership (as defined in section 7704(b)),’’ after
‘‘dividends, interest,’’.
(b) SOURCE
FLOW-THROUGH
RULE
NOT
TO
APPLY.—The last sentence of section 851(b) is amended
by inserting ‘‘(other than a publicly traded partnership (as
defined in section 7704(b)))’’ after ‘‘derived from a part-
nership’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 2000.
362
SEC. 1312. SPECIAL PASSIVE ACTIVITY RULE FOR PUB-
LICLY TRADED PARTNERSHIPS TO APPLY TO
REGULATED INVESTMENT COMPANIES.
(a) IN GENERAL.—Subsection (k) of section 469 (re-
lating to separate application of section in case of publicly
traded partnerships) is amended by adding at the end the
following new paragraph:
‘‘(4) APPLICATION
TO
REGULATED
INVEST-
MENT COMPANIES.—For purposes of this section, a
regulated investment company (as defined in section
851) holding an interest in a publicly traded part-
nership shall be treated as a taxpayer described in
subsection (a)(2) with respect to items attributable
to such interest.’’.
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply to taxable years beginning after
December 31, 2000.
SEC. 1313. LARGE ELECTRIC TRUCKS, VANS, AND BUSES EL-
IGIBLE FOR DEDUCTION FOR CLEAN-FUEL
VEHICLES IN LIEU OF CREDIT.
(a) IN GENERAL.—Paragraph (1) of section 30(c)
(relating to credit for qualified electric vehicles) is amend-
ed by adding at the end the following new flush sentence:
‘‘Such term shall not include any vehicle described
in 
subclause 
(I) 
or 
(II) 
of 
section
179A(b)(1)(A)(iii).’’.
363
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply to property placed in service after
December 31, 1999.
SEC. 1314. MODIFICATIONS TO SPECIAL RULES FOR NU-
CLEAR DECOMMISSIONING COSTS.
(a) REPEAL
OF LIMITATION
ON DEPOSITS INTO
FUND BASED ON COST OF SERVICE.—Subsection (b) of
section 468A is amended to read as follows:
‘‘(b) LIMITATION ON AMOUNTS PAID INTO FUND.—
The amount which a taxpayer may pay into the Fund for
any taxable year shall not exceed the ruling amount appli-
cable to such taxable year.’’.
(b) CLARIFICATION
OF
TREATMENT
OF
FUND
TRANSFERS.—Subsection (e) of section 468A is amended
by adding at the end the following new paragraph:
‘‘(8) TREATMENT OF FUND TRANSFERS.—If, in
connection with the transfer of the taxpayer’s inter-
est in a nuclear powerplant, the taxpayer transfers
the Fund with respect to such powerplant to the
transferee of such interest and the transferee elects
to continue the application of this section to such
Fund—
‘‘(A) the transfer of such Fund shall not
cause such Fund to be disqualified from the ap-
plication of this section, and
364
‘‘(B) no amount shall be treated as distrib-
uted from such Fund, or be includible in gross
income, by reason of such transfer.’’.
(c) TRANSFERS
OF BALANCES
IN NONQUALIFIED
FUNDS.—Section 468A is amended by redesignating sub-
sections (f) and (g) as subsections (g) and (h), respec-
tively, and by inserting after subsection (e) the following
new subsection:
‘‘(f) TRANSFERS OF BALANCES IN NONQUALIFIED
FUNDS INTO QUALIFIED FUNDS.—
‘‘(1) IN GENERAL.—Notwithstanding subsection
(b), any taxpayer maintaining a Fund to which this
section applies with respect to a nuclear powerplant
may transfer into such Fund amounts held in any
nonqualified fund of such taxpayer with respect to
such powerplant.
‘‘(2) MAXIMUM
AMOUNT
PERMITTED
TO
BE
TRANSFERRED.—The amount permitted to be trans-
ferred under paragraph (1) shall not exceed the bal-
ance in the nonqualified fund as of December 31,
1998.
‘‘(3) 
DEDUCTION
FOR
AMOUNTS
TRANS-
FERRED.—
‘‘(A) IN GENERAL.—The deduction allowed
by subsection (a) for any transfer permitted by
365
this subsection shall be allowed ratably over the
remaining estimated useful life (within the
meaning of subsection (d)(2)(A)) of the nuclear
powerplant, beginning with the later of the tax-
able year during which the transfer is made or
the taxpayer’s first taxable year beginning after
December 31, 2001.
‘‘(B) DENIAL
OF
DEDUCTION
FOR
PRE-
VIOUSLY DEDUCTED AMOUNTS.—No deduction
shall be allowed for any transfer under this sub-
section of an amount for which a deduction was
allowed when such amount was paid into the
nonqualified fund. For purposes of the pre-
ceding sentence, a ratable portion of each trans-
fer shall be treated as being from previously de-
ducted amounts to the extent thereof.
‘‘(C) TRANSFERS OF QUALIFIED FUNDS.—
If—
‘‘(i) any transfer permitted by this
subsection is made to any Fund to which
this section applies, and
‘‘(ii) such Fund is transferred there-
after,
any deduction under this subsection for taxable
years ending after the date that such Fund is
366
transferred shall be allowed to the transferee
and not to the transferor. The preceding sen-
tence shall not apply if the transferor is an or-
ganization exempt from tax imposed by this
chapter.
‘‘(4) NEW RULING AMOUNT REQUIRED.—Para-
graph (1) shall not apply to any transfer unless the
taxpayer requests from the Secretary a new schedule
of ruling amounts in connection with such transfer.
‘‘(5) NONQUALIFIED FUND.—For purposes of
this subsection, the term ‘nonqualified fund’ means,
with respect to any nuclear powerplant, any fund in
which amounts are irrevocably set aside pursuant to
the requirements of any State or Federal agency ex-
clusively for the purpose of funding the decommis-
sioning of such powerplant.
‘‘(6) NO
BASIS
IN
QUALIFIED
FUNDS.—Not-
withstanding any other provision of law, the basis of
any Fund to which this section applies shall not be
increased by reason of any transfer permitted by
this subsection.’’.
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 1999.
367
SEC. 1315. CONSOLIDATION OF LIFE INSURANCE COMPA-
NIES WITH OTHER CORPORATIONS.
(a) IN GENERAL.—Section 1504(b) (defining includ-
ible corporation) is amended by striking paragraph (2).
(b) CONFORMING AMENDMENTS.—
(1) Subsection (c) of section 1503 is amended
by striking paragraph (2) (relating to losses of re-
cent nonlife affiliates).
(2) Section 1504 is amended by striking sub-
section (c) and by redesignating subsections (d), (e),
and (f) as subsections (c), (d), and (e), respectively.
(3) Section 1503(c)(1) (relating to special rule
for application of certain losses against income of in-
surance companies taxed under section 801) is
amended by striking ‘‘an election under section
1504(c)(2) is in effect for the taxable year and’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 2004.
(d) NO CARRYBACK BEFORE JANUARY 1, 2005.—To
the extent that a consolidated net operating loss is allowed
or increased by reason of the amendments made by this
section, such loss may not be carried back to a taxable
year beginning before January 1, 2005.
368
(e) NONTERMINATION
OF GROUP.—No affiliated
group shall terminate solely as a result of the amendments
made by this section.
(f) WAIVER OF 5-YEAR WAITING PERIOD.—Under
regulations prescribed by the Secretary of the Treasury
or his delegate, an automatic waiver from the 5-year wait-
ing period for reconsolidation provided in section
1504(a)(3) of such Code shall be granted to any corpora-
tion which was previously an includible corporation but
was subsequently deemed a nonincludible corporation as
a result of becoming a subsidiary of a corporation which
was not an includible corporation solely by operation of
section 1504(c)(2) of such Code (as in effect on the day
before the date of the enactment of this Act).
Subtitle C—Provisions Relating to
Excise Taxes
SEC. 1321. CONSOLIDATION OF HAZARDOUS SUBSTANCE
SUPERFUND AND LEAKING UNDERGROUND
STORAGE TANK TRUST FUND.
(a) IN GENERAL.—Subchapter A of chapter 98 (re-
lating to trust fund code) is amended by striking sections
9507 and 9508 and inserting the following new section:
‘‘SEC. 9507. ENVIRONMENTAL REMEDIATION TRUST FUND.
‘‘(a) CREATION OF TRUST FUND.—There is estab-
lished in the Treasury of the United States a trust fund
369
to be known as the ‘Environmental Remediation Trust
Fund’ consisting of such amounts as may be—
‘‘(1) appropriated to the Environmental Reme-
diation Trust Fund as provided in this section,
‘‘(2) appropriated to the Environmental Reme-
diation Trust Fund pursuant to section 517(b) of
the Superfund Revenue Act of 1986, or
‘‘(3) credited to the Environmental Remediation
Trust Fund as provided in section 9602(b).
‘‘(b) TRANSFERS TO ENVIRONMENTAL REMEDIATION
TRUST FUND.—
‘‘(1) IN GENERAL.—There are hereby appro-
priated to the Environmental Remediation Trust
Fund amounts equivalent to—
‘‘(A) the taxes received in the Treasury
under—
‘‘(i) section 59A, 4611, 4661, or 4671
(relating to environmental taxes),
‘‘(ii) section 4041(d) (relating to addi-
tional taxes on motor fuels),
‘‘(iii) section 4081 (relating to tax on
gasoline, diesel fuel, and kerosene) to the
extent attributable to the Environmental
Remediation Trust Fund financing rate
under such section,
370
‘‘(iv) section 4091 (relating to tax on
aviation fuel) to the extent attributable to
the 
Environmental 
Remediation 
Trust
Fund financing rate under such section,
and
‘‘(v) section 4042 (relating to tax on
fuel used in commercial transportation on
inland waterways) to the extent attrib-
utable to the Environmental Remediation
Trust Fund financing rate under such sec-
tion,
‘‘(B) amounts recovered on behalf of the
Environmental Remediation Trust Fund under
the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980 (here-
inafter 
in 
this 
section 
referred 
to 
as
‘CERCLA’),
‘‘(C) all moneys recovered or collected
under section 311(b)(6)(B) of the Clean Water
Act,
‘‘(D) penalties assessed under title I of
CERCLA,
‘‘(E) punitive damages under section
107(c)(3) of CERCLA, and
371
‘‘(F) amounts received in the Treasury and
collected under section 9003(h)(6) of the Solid
Waste Disposal Act.
‘‘(2) LIMITATION ON TRANSFERS.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), no amount may be appro-
priated or credited to the Environmental Reme-
diation Trust Fund on and after the date of
any expenditure from any such Trust Fund
which is not permitted by this section. The de-
termination of whether an expenditure is so
permitted shall be made without regard to—
‘‘(i) any provision of law which is not
contained or referenced in this title or in
a revenue Act, and
‘‘(ii) whether such provision of law is
a subsequently enacted provision or di-
rectly or indirectly seeks to waive the ap-
plication of this paragraph.
‘‘(B) EXCEPTION
FOR
PRIOR
OBLIGA-
TIONS.—Subparagraph (A) shall not apply to
any expenditure to liquidate any contract en-
tered into (or for any amount otherwise obli-
gated) in accordance with the provisions of this
section.’’.
372
‘‘(c) EXPENDITURES FROM ENVIRONMENTAL REME-
DIATION TRUST FUND.—
‘‘(1) IN GENERAL.—Amounts in the Environ-
mental Remediation Trust Fund shall be available,
as provided in appropriation Acts, only for purposes
of making expenditures—
‘‘(A) to carry out the purposes of—
‘‘(i) paragraphs (1), (2), (5), and (6)
of section 111(a) of CERCLA as in effect
on July 12, 1999,
‘‘(ii) section 111(c) of CERCLA (as
so in effect), other than paragraphs (1)
and (2) thereof, and
‘‘(iii) section 111(m) of CERCLA (as
so in effect), or
‘‘(B) to carry out section 9003(h) of the
Solid Waste Disposal Act as in effect on July
12, 1999.
‘‘(2) EXCEPTION
FOR
CERTAIN
TRANSFERS,
ETC., OF HAZARDOUS SUBSTANCES.—No amount in
the Environmental Remediation Trust Fund or de-
rived from the Environmental Remediation Trust
Fund shall be available or used for the transfer or
disposal of hazardous waste carried out pursuant to
a cooperative agreement between the Administrator
373
of the Environmental Protection Agency and a State
if the following conditions apply—
‘‘(A) the transfer or disposal, if made on
December 13, 1985, would not comply with a
State or local requirement,
‘‘(B) the transfer is to a facility for which
a final permit under section 3005(a) of the
Solid Waste Disposal Act was issued after Jan-
uary 1, 1983, and before November 1, 1984,
and
‘‘(C) the transfer is from a facility identi-
fied as the McColl Site in Fullerton, California.
‘‘(3) TRANSFERS FROM TRUST FUND FOR CER-
TAIN REPAYMENTS AND CREDITS.—
‘‘(A) IN
GENERAL.—The Secretary shall
pay from time to time from the Environmental
Remediation Trust Fund into the general fund
of the Treasury amounts equivalent to—
‘‘(i) amounts paid under—
‘‘(I) section 6420 (relating to
amounts paid in respect of gasoline
used on farms),
‘‘(II) section 6421 (relating to
amounts paid in respect of gasoline
374
used for certain nonhighway purposes
or by local transit systems), and
‘‘(III) section 6427 (relating to
fuels not used for taxable purposes),
and
‘‘(ii) credits allowed under section 34,
with respect to the taxes imposed by section
4041(d) or by sections 4081 and 4091 (to the
extent attributable to the Leaking Underground
Storage Tank Trust Fund financing rate or the
Environmental Remediation Trust Fund financ-
ing rate under such sections).
‘‘(B) TRANSFERS BASED ON ESTIMATES.—
Transfers under subparagraph (A) shall be
made on the basis of estimates by the Sec-
retary, and proper adjustments shall be made
in amounts subsequently transferred to the ex-
tent prior estimates were in excess of or less
than the amounts required to be transferred.
‘‘(d) LIABILITY OF UNITED STATES LIMITED TO
AMOUNT IN TRUST FUND.—
‘‘(1) GENERAL RULE.—Any claim filed against
the Environmental Remediation Trust Fund may be
paid only out of the Environmental Remediation
Trust Fund.
376
(3) Sections 4041(d), 4042(b), 4081(a)(2)(B),
4081(d)(3), 4091(b), 4092(b), 6421(f), and 6427(l)
are each amended by striking ‘‘Leaking Under-
ground Storage Tank’’ each place it appears (other
than the headings) and inserting ‘‘Environmental
Remediation’’.
(4) The heading for subsection (d) of section
4041 is amended by striking ‘‘LEAKING UNDER-
GROUND STORAGE TANK’’ and inserting ‘‘ENVIRON-
MENTAL REMEDIATION’’.
(5) The headings for subsections (a)(2)(B) and
(d)(3) of section 4081 and section 4091(b)(2) are
each amended by striking ‘‘LEAKING UNDERGROUND
STORAGE
TANK’’ and inserting ‘‘ENVIRONMENTAL
REMEDIATION’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall take effect on October 1, 1999.
(d) ENVIRONMENTAL REMEDIATION TRUST FUND
TREATED AS CONTINUATION OF OLD TRUST FUNDS.—
The Environmental Remediation Trust Fund established
by the amendments made by this section shall be treated
for all purposes of law as a continuation of both the Haz-
ardous Substance Superfund and the Leaking Under-
ground Storage Tank Trust Fund. Any reference in any
law to the Hazardous Substance Superfund or the Leak-
377
ing Underground Storage Tank Trust Fund shall be
deemed to include (wherever appropriate) a reference to
the Environmental Remediation Trust Fund established
by such amendments.
SEC. 1322. REPEAL OF CERTAIN MOTOR FUEL EXCISE
TAXES ON FUEL USED BY RAILROADS AND ON
INLAND WATERWAY TRANSPORTATION.
(a) REPEAL OF LEAKING UNDERGROUND STORAGE
TANK TRUST FUND TAXES ON FUEL USED IN TRAINS.—
(1) IN
GENERAL.—Paragraph (1) of section
4041(d) is amended by adding at the end the fol-
lowing new sentence: ‘‘The preceding sentence shall
not apply to any sale for use, or use, of fuel in a
diesel-powered train.’’.
(2) CONFORMING AMENDMENTS.—
(A) Paragraph (3) of section 6421(f) is
amended by striking ‘‘with respect to—’’ and
all that follows through ‘‘so much of’’ and in-
serting ‘‘with respect to so much of’’.
(B) Paragraph (3) of section 6427(l) is
amended by striking ‘‘with respect to—’’ and
all that follows through ‘‘so much of’’ and in-
serting ‘‘with respect to so much of’’.
453
amended by inserting ‘‘, any Chief Counsel advice,’’ after
‘‘technical advice memorandum’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall take effect as if included in the provisions
of the Internal Revenue Service Restructuring and Reform
Act of 1998 to which they relate.
SEC. 1603. AMENDMENTS RELATED TO TAXPAYER RELIEF
ACT OF 1997.
(a) AMENDMENT RELATED TO SECTION 302 OF THE
ACT.—The last sentence of section 3405(e)(1)(B) is
amended by inserting ‘‘(other than a Roth IRA)’’ after
‘‘individual retirement plan’’.
(b) AMENDMENTS RELATED TO SECTION 1072 OF
THE ACT.—
(1) Clause (ii) of section 415(c)(3)(D) and sub-
paragraph (B) of section 403(b)(3) are each amend-
ed by striking ‘‘section 125 or’’ and inserting ‘‘sec-
tion 125, 132(f)(4), or’’.
(2) Paragraph (2) of section 414(s) is amended
by striking ‘‘section 125, 402(e)(3)’’ and inserting
‘‘section 125, 132(f)(4), 402(e)(3)’’.
(c) AMENDMENT RELATED TO SECTION 1454 OF
THE ACT.—Subsection (a) of section 7436 is amended by
inserting before the period at the end of the first sentence