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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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