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fiscal year, a complete and detailed report with respect
to the preceding fiscal year, setting forth—
(1) a summary of NIC’s operations, for such
preceding fiscal year;
(2) NIC’s financial statements and the opinion
with respect thereto prepared by the independent
public accountant reviewing such statements and a
copy of any report made on an audit conducted
under subsection (a) of this section;
(3) a schedule of NIC’s obligations and capital
securities outstanding at the end of such fiscal year,
with a statement of the amounts issued and re-
deemed or paid during such fiscal year; and
(4) the status of projects receiving funding or
other assistance pursuant to this Act, including dis-
closure of all entities with a development, ownership,
or operational interest in such projects.
(c) BOOKS AND RECORDS.—
(1) IN GENERAL.—NIC shall maintain adequate
books and records to support the financial trans-
actions of the Corporation, the Insurance Corpora-
tion, and subsidiaries of such corporations.
(2) AUDITS BY THE SECRETARY AND GAO.—
The books and records of NIC shall be maintained
in accordance with recommended accounting prac-
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tices and shall be open to inspection by the Sec-
retary and the Comptroller General of the United
States.
SEC. 18. TAX TREATMENT OF DISTRIBUTIONS FROM QUALI-
FIED RETIREMENT PLANS INVESTING IN
PUBLIC BENEFIT BONDS.
(a) IN GENERAL.—Section 72 of the Internal Reve-
nue Code of 1986 (relating to annuities; certain proceeds
of endowment and life insurance contracts) is amended by
redesignating subsection (w) as subsection (x) and by in-
serting after subsection (v) the following new subsection:
‘‘(w) TREATMENT OF DISTRIBUTION FROM QUALI-
FIED RETIREMENT PLANS INVESTING IN PUBLIC BENE-
FIT BONDS.—
‘‘(1) IN GENERAL.—In the case of any qualified
retirement plan which receives directly or indirectly
any interest on any public benefit bond (including
any payments in respect thereof made by a surety
or guarantor) for purposes of applying this section
to any distribution from such plan, the distributee’s
investment in the contract shall be treated as includ-
ing such distributee’s allocable share of such interest
under the terms of the qualified retirement plan,
and any such distribution shall be treated as a dis-
tribution described in subsection (e)(2)(B) in which
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the distribution is allocable first to the investment in
the contract attributable to such interest.
‘‘(2) TREATMENT OF INSTALLMENTS.—In the
case of a distribution to be made over more than one
calendar year, the amount of public benefit bond in-
terest to be taken into account with respect to a
given calendar year shall be the aggregate amount of
such interest allocable to the distributee as of the
end of the prior calendar year. With respect to the
final calendar year, the amount of public benefit
bond interest to be taken into account shall include
the amount of such interest received by the plan
during such year that is allocable to the plan partici-
pant with respect to whom the distribution is made.
‘‘(3) PUBLIC BENEFIT BOND.—For purposes of
this subsection, the term ‘public benefit bond’ means
any obligation issued after the date of the enactment
of this subsection if—
‘‘(A) 95 percent or more of the net pro-
ceeds of such obligation are used in connection
with the financing or refinancing of 1 or more
infrastructure facilities,
‘‘(B) such obligation has received a pub-
lished rating, and
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‘‘(C) the development of such infrastruc-
ture facilities have been or will be undertaken
by a governmental entity or public-private part-
nership,
as such terms are defined in section 4 of the Na-
tional Infrastructure Development Act of 1996.
‘‘(4) CERTIFICATION OF INFRASTRUCTURE FA-
CILITIES.—An issuer of an obligation of which 95
percent or more of the net proceeds are to be used
in connection with the financing or refinancing of 1
or more facilities may apply to the National Infra-
structure Development Corporation, in accordance
with such procedures as such corporation may estab-
lish, for certification that any such facility is an in-
frastructure facility (as defined in section 4 of the
National Infrastructure Development Act of 1996).
Certification by the Corporation shall create a pre-
sumption of such status, but shall not be binding on
the Secretary.
‘‘(5) LEGEND REQUIRED.—No obligation shall
be a public benefit bond for purposes of this sub-
section unless it is designated as intended to be a
public benefit bond on the date of issuance and
bears a legend to such effect.
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‘‘(6) QUALIFIED RETIREMENT PLAN.—For pur-
poses of this subsection, the term ‘qualified retire-
ment plan’ means—
‘‘(A) a qualified retirement plan (as de-
fined in section 4974(c)), and
‘‘(B) an eligible deferred compensation
plan (as defined in section 457(b)).
‘‘(7) TREATMENT OF DIVIDENDS FROM MUTUAL
FUNDS.—
‘‘(A) IN GENERAL.—For purposes of this
subsection, in the case of any dividend (other
than a dividend described in section 854(a)) re-
ceived from a regulated investment company
which meets the requirements of section 852 for
the taxable year in which it paid the dividend—
‘‘(i) the entire amount of such divi-
dend shall be treated as interest on a pub-
lic benefit bond if the aggregate interest on
such bonds received by such company dur-
ing the taxable year equals or exceeds 75
percent of its gross income, or
‘‘(ii) if clause (i) does not apply, a
portion of such dividend shall be treated as
interest on a public benefit bond based on
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the portion of the company’s gross income
which consists of such interest.
‘‘(B) NOTICE
TO
SHAREHOLDERS.—The
amount of any distribution by a regulated in-
vestment company which may be taken into ac-
count as interest on a public benefit bond for
purposes of this section shall not exceed the
amount so designated by the company in a writ-
ten notice to its shareholders mailed not later
than 45 days after the close of its taxable year.
‘‘(C) GROSS
INCOME.—For purposes of
this section, the term ‘gross income’ does not
include gain from the sale or other disposition
of stock or securities.’’.
(b) CONFORMING AMENDMENTS.—
(1) Subsection (w) of section 72 of the Internal
Revenue Code of 1986 is amended by adding the fol-
lowing new paragraph:
‘‘(4) TREATMENT OF QUALIFYING PUBLIC BEN-
EFIT BOND INTEREST.—For purposes of subsections
(c)(1)(A) and (c)(2)(A), the total amount of public
benefit bond interest described in subsection (w)
with respect to a participant in a qualified retire-
ment plan (determined without reference to the an-
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nuity starting date) shall be treated as an invest-
ment in the contract.’’.
(c) EFFECTIVE DATE.—The amendment made this
section shall apply to distributions after the date of the
enactment of this Act.
SEC. 19. AUTHORIZATIONS.
(a) APPROPRIATIONS AUTHORIZED FOR ESTABLISH-
MENT.—There are hereby authorized to be appropriated
to the Secretary $30,000,000 for the purpose of facilitat-
ing the NIC’s initial operations.
(b) APPROPRIATIONS AUTHORIZED FOR CONDUCT OF
BUSINESS OF NIC.—There are authorized to be appro-
priated to the Secretary $1,000,000,000 for each of the
fiscal years 1997 through 1999 to make the capital con-
tributions in accordance with section 9(a)(1)(A) for the
purpose of carrying out this Act.
(c) ESTABLISHMENT OF NIC ACCOUNT.—Before the
transition date, the funds appropriated under subsection
(b) shall be deposited in an account to be established in
the Treasury of the United States to be known as the
‘‘National Infrastructure Development Corporation Ac-
count’’, which shall be available to the Corporation, with-
out need for further appropriation and without fiscal year
limitation, for carrying out its purposes, functions and
powers, including the investment and reinvestment of
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these funds as permitted in this Act, and which shall not
be subject to apportionment under subchapter II of chap-
ter 15 of title 31. The Secretary of the Treasury, in con-
sultation with the board of directors of the Corporation,
shall invest amounts in the account in public debt securi-
ties with maturities suitable to the needs of the account
and bearing interest at rates determined by the Secretary,
taking into consideration current market yields on out-
standing marketable obligations of the United States of
comparable maturities.
SEC. 20. PROHIBITION ON ADDITIONAL FEDERAL ASSIST-
ANCE.
Except as otherwise specifically provided by sections
13 and 19, NIC shall receive no appropriations, loans, or
other financial assistance from the Federal Government.
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