I
106TH CONGRESS
2D SESSION
H. R. 5473
To assist workers who are displaced by trade or technology through no
fault of their own by providing medical benefits, increasing government
job search assistance, eliminating taxes on certain severance packages,
planning for a pilot program to provide public employment for dislocated
workers, increasing funding for the International Program of Child Labor
of the International Labor Organization, establishing the Office of Com-
munity Economic Adjustment in the Economic Development Administra-
tion of the Department of Commerce to coordinate the Federal response
in regions and communities experiencing severe and sudden economic
distress, helping these regions and communities in restructuring their
economies, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
OCTOBER 16, 2000
Mr. LARSON introduced the following bill; which was referred to the Com-
mittee on Ways and Means, and in addition to the Committees on Edu-
cation and the Workforce, Commerce, Transportation and Infrastructure,
Banking and Financial Services, and International Relations, for a period
to be subsequently determined by the Speaker, in each case for consider-
ation of such provisions as fall within the jurisdiction of the committee
concerned
A BILL
To assist workers who are displaced by trade or technology
through no fault of their own by providing medical bene-
fits, increasing government job search assistance, elimi-
nating taxes on certain severance packages, planning for
a pilot program to provide public employment for dis-
located workers, increasing funding for the International
Program of Child Labor of the International Labor Or-
ganization, establishing the Office of Community Eco-
nomic Adjustment in the Economic Development Admin-
istration of the Department of Commerce to coordinate
the Federal response in regions and communities experi-
encing severe and sudden economic distress, helping
these regions and communities in restructuring their
economies, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Rapid Change Oppor-
tunity Act’’.
TITLE I—FUNDING FOR ADDI-
TIONAL 
EMPOWERMENT
ZONES, ENTERPRISE COMMU-
NITIES, 
AND 
STRATEGIC
PLANNING COMMUNITIES
SEC. 101. SHORT TITLE.
This title may be cited as the ‘‘Empowerment Zones
and Enterprise Communities Enhancement Act of 2000’’.
SEC. 102. FUNDING ENTITLEMENT FOR ADDITIONAL EM-
POWERMENT ZONES AND ENTERPRISE COM-
MUNITIES, AND FOR STRATEGIC PLANNING
COMMUNITIES.
(a) ENTITLEMENT.—Section 2007(a)(1) of the Social
Security Act (42 U.S.C. 1397f(a)(1)) is amended—
(1) in subparagraph (A), by striking ‘‘in the
State; and’’ and inserting ‘‘that is in the State and
is designated pursuant to section 1391(b) of the In-
ternal Revenue Code of 1986;’’;
(2) by adding after subparagraph (B) the fol-
lowing:
‘‘(C)(i) 9 grants under this section for
each qualified empowerment zone that is in an
urban area in the State and is designated pur-
suant to section 1391(g) of such Code; and
‘‘(ii) 9 grants under this section for each
qualified empowerment zone that is in a rural
area in the State and is designated pursuant to
section 1391(g) of such Code;
‘‘(D) 9 grants under this section for each
qualified enterprise community that is in the
State and is designated pursuant to section 766
of the Agriculture, Rural Development, Food
and Drug Administration, and Related Agencies
Appropriations Act, 1999; and
‘‘(E) 1 grant under this section for each
strategic planning community.’’.
(b) AMOUNT
OF GRANTS.—Section 2007(a)(2) of
such Act (42 U.S.C. 1397f(a)(2)) is amended—
(1) in the heading of subparagraph (A), by in-
serting ‘‘ORIGINAL’’ before ‘‘EMPOWERMENT’’;
(2) in subparagraph (A), in the matter pre-
ceding clause (i), by inserting ‘‘referred to in para-
graph (1)(A)’’ after ‘‘empowerment zone’’;
(3) by redesignating subparagraph (C) as sub-
paragraph (F); and
(4) by inserting after subparagraph (B) the fol-
lowing:
‘‘(C) 
ADDITIONAL
EMPOWERMENT
GRANTS.—The amount of the grant to a State
under this section for a qualified empowerment
zone referred to in paragraph (1)(C) shall be—
‘‘(i) if the zone is in an urban area,
$7,000,000 
for 
fiscal 
year 
2000,
$10,000,000 for each of fiscal years 2001
through 2004, and $12,500,000 for each
of fiscal years 2005 through 2008; or
‘‘(ii) if the zone is in a rural area,
$3,800,000 for each of fiscal years 2000
through 2004, and $4,750,000 for each of
fiscal years 2005 through 2008,
multiplied by the proportion of the population
of the zone that resides in the State.
‘‘(D) ADDITIONAL
ENTERPRISE
COMMU-
NITY GRANTS.—The amount of the grant to a
State under this section for a qualified enter-
prise community referred to in paragraph
(1)(D) shall be $3,000,000, multiplied by the
proportion of the population of the community
that resides in the State.
‘‘(E) STRATEGIC
PLANNING
COMMUNITY
GRANTS.—The amount of the grant to a State
under this section for a strategic planning com-
munity shall be $3,000,000, multiplied by the
proportion of the population of the community
that resides in the State.’’.
(c) TIMING OF GRANTS.—Section 2007(a)(3) of such
Act (42 U.S.C. 1397f(a)(3)) is amended—
(1) in the heading of subparagraph (A), by in-
serting ‘‘ORIGINAL’’ before ‘‘QUALIFIED’’;
(2) in subparagraph (A), in the matter pre-
ceding clause (i), by inserting ‘‘referred to in para-
graph (1)(A)’’ after ‘‘empowerment zone’’; and
(3) by adding after subparagraph (B) the fol-
lowing:
‘‘(C) ADDITIONAL
QUALIFIED
EMPOWER-
MENT ZONES.—With respect to each qualified
empowerment zone referred to in paragraph
(1)(C), the Secretary shall make 1 grant under
this section to the State in which the zone lies,
on the first day of fiscal year 2000 and of each
of the 8 succeeding fiscal years.
‘‘(D) ADDITIONAL QUALIFIED ENTERPRISE
COMMUNITIES.—With respect to each qualified
enterprise community referred to in paragraph
(1)(D), the Secretary shall make 1 grant under
this section to the State in which the commu-
nity is located on October 1, 1999.
‘‘(E) 
STRATEGIC
PLANNING
COMMU-
NITIES.—With respect to each strategic plan-
ning community, the Secretary shall make 1
grant under this section to the State in which
the community is located, on October 1, 1999.’’.
(d) FUNDING.—Section 2007(a)(4) of such Act (42
U.S.C. 1397f(a)(4)) is amended—
(1) by striking ‘‘(4) FUNDING.—$1,000,000’’
and inserting the following:
‘‘(4) FUNDING.—
‘‘(A) ORIGINAL GRANTS.—$1,000,000’’;
(2) by inserting ‘‘for empowerment zones and
enterprise communities described in subparagraphs
(A) and (B) of paragraph (1)’’ before the period;
and
(4) by adding after and below the end the fol-
lowing:
‘‘(B) ADDITIONAL
EMPOWERMENT
ZONE
GRANTS.—$1,645,000,000 shall be made avail-
able to the Secretary for grants under this sec-
tion for empowerment zones referred to in para-
graph (1)(C).
‘‘(C) ADDITIONAL
ENTERPRISE
COMMU-
NITY
GRANTS.—$60,000,000 shall be made
available to the Secretary for grants under this
section for enterprise communities referred to
in paragraph (1)(D).
‘‘(D) STRATEGIC
PLANNING
COMMUNITY
GRANTS.—$45,000,000 shall be made available
to the Secretary for grants under this section
for strategic planning communities.’’.
(e) DIRECT FUNDING FOR INDIAN TRIBES.—Section
2007(a) of such Act (42 U.S.C. 1397f(a)) is amended by
adding at the end the following:
‘‘(5) DIRECT FUNDING FOR INDIAN TRIBES.—
‘‘(A) IN
GENERAL.—The Secretary may
make a grant under this section directly to the
governing body of an Indian tribe if—
‘‘(i) the tribe is identified in the stra-
tegic plan of a qualified empowerment zone
or qualified enterprise community as the
entity that assumes sole or primary re-
sponsibility for carrying out activities and
projects under the grant; and
‘‘(ii) the grant is to be used for activi-
ties and projects that are—
‘‘(I) included in the strategic
plan of the qualified empowerment
zone or qualified enterprise commu-
nity, consistent with this section; and
‘‘(II) approved by the Secretary
of Agriculture, in the case of a quali-
fied empowerment zone or qualified
enterprise community in a rural area,
or the Secretary of Housing and
Urban Development, in the case of a
qualified empowerment zone or quali-
fied enterprise community in an urban
area.
‘‘(B) RULES OF INTERPRETATION.—
‘‘(i) If grant under this section is
made directly to the governing body of an
Indian tribe under subparagraph (A), the
tribe shall be considered a State for pur-
poses of this section.
‘‘(ii) This subparagraph shall not be
construed as making applicable to this sec-
tion the provisions of the Indian Self-De-
termination 
and 
Education 
Assistance
Act.’’.
(f) DEFINITIONS.—
(1) QUALIFIED ENTERPRISE COMMUNITY.—Sec-
tion 
2007(f)(2)(A) 
of 
such 
Act 
(42 
U.S.C.
1397f(f)(2)(A)) is amended by inserting ‘‘or pursu-
ant to section 766 of the Agriculture, Rural Devel-
opment, Food and Drug Administration, and Re-
lated Agencies Appropriations Act, 1999’’ before the
semicolon.
(2) STRATEGIC
PLAN.—Section 2007(f)(3) of
such Act (42 U.S.C. 1397f(f)(3)) is amended by in-
serting ‘‘or under section 766 of the Agriculture,
Rural Development, Food and Drug Administration,
and Related Agencies Appropriations Act, 1999’’ be-
fore the period.
(3) STRATEGIC
PLANNING
COMMUNITY.—Sec-
tion 2007(f) of such Act (42 U.S.C. 1397f(f)) is
amended by adding at the end the following:
‘‘(7) STRATEGIC PLANNING COMMUNITY.—The
term ‘strategic planning community’ means a re-
spondent to the Notice Inviting Applications at 63
Federal Register 19162 (April 16, 1998) whose ap-
plication was ranked 16th through 30th in the com-
petition that concluded in December 1998.’’.
(4) INDIAN
TRIBE.—Section 2007(f) of such
Act (42 U.S.C. 1397f(f)), as amended by paragraph
(3) of this subsection, is amended by adding at the
end the following:
‘‘(8) INDIAN TRIBE.—The term ‘Indian tribe’
means any Indian tribe, band, nation, or other orga-
nized group or community, including any Alaska Na-
tive village or regional or village corporation as de-
fined in or established pursuant to the Alaska Na-
tive Claims Settlement Act, which is recognized as
eligible for the special programs and services pro-
vided by the United States to Indians because of
their status as Indians.’’.
SEC. 103. USE OF GRANT FUNDS.
(a) REVOLVING LOAN ACTIVITIES.—Section 2007(b)
of the Social Security Act (42 U.S.C. 1397f(b)) is amend-
ed by adding at the end the following:
‘‘(5) REVOLVING LOAN ACTIVITIES.—
‘‘(A) IN GENERAL.—In order to assist dis-
advantaged adults and youths in achieving and
maintaining economic self-support, a State may
use amounts paid under this section to fund re-
volving loan funds or similar arrangements for
the purpose of making loans to residents, insti-
tutions, organizations, or businesses that hire
disadvantaged adults and youths.
‘‘(B) 
RULES
FOR
DISBURSEMENT.—
Amounts to be used as described in subpara-
graph (A) shall be disbursed by the Secretary,
consistent with the provisions of the Cash Man-
agement Improvement Act and its implementing
rules, regulations, and procedures issued by the
Secretary of the Treasury—
‘‘(i) in the case of a grant to a revolv-
ing loan fund—
‘‘(I) pursuant to a written irrev-
ocable grant commitment; and
‘‘(II) at such time or times as the
Secretary determines that the funds
are needed to meet the purposes of
such commitment; or
‘‘(ii) in the case of a grant for pur-
poses of capitalizing an insured depository
institution (as defined in section 3 of the
Federal Deposit Insurance Act (12 U.S.C.
1813)) or an insured credit union (as de-
fined in section 101 of the Federal Credit
Union Act (12 U.S.C. 1742)), at such time
or times as the Secretary determines that
funds are needed for such capitalization.’’.
(b) USE AS NON-FEDERAL SHARE.—Section 2007(b)
of such Act (42 U.S.C. 1397f(b)), as amended by sub-
section (a) of this section, is amended by adding at the
end the following:
‘‘(6) A State may use amounts received from a
grant under this section to pay all or part of the
non-Federal share of expenditures under any other
Federal grant to a local public or nonprofit private
agency or organization for activities consistent with
the purposes of this section, unless the statutory au-
thority for such other grant expressly prohibits
counting of Federal grant funds as such non-Federal
share.’’.
SEC. 104. ENVIRONMENTAL REVIEW.
Section 2007 of the Social Security Act (42 U.S.C.
1397f) is amended—
(1) by redesignating subsection (f) as sub-
section (g); and
(2) by inserting after subsection (e) the fol-
lowing:
‘‘(f) ENVIRONMENTAL REVIEW.—
‘‘(1) EXECUTION OF RESPONSIBILITY BY THE
SECRETARY OF HOUSING AND URBAN DEVELOPMENT
AND THE SECRETARY OF AGRICULTURE.—
‘‘(A) 
APPLICABILITY.—This 
subsection
shall apply to grants under this section in con-
nection with empowerment zones, enterprise
communities, and strategic planning commu-
nities (as defined in subsection (g)).
‘‘(B) EXECUTION
OF
RESPONSIBILITY.—
With respect to grants described in subpara-
graph (A), the Secretary of Housing and Urban
Development and the Secretary of Agriculture,
as appropriate, shall execute the responsibilities
under the National Environmental Policy Act of
1969 and other provisions of law that further
the purposes of such Act (as specified in regula-
tions issued by each such Secretary under para-
graph (2)(B)) that would otherwise apply to the
Secretary of Health and Human Services, and
may provide for the assumption of such respon-
sibilities in accordance with paragraphs (2)
through (5).
‘‘(C) DEFINITION OF SECRETARY.—Except
as otherwise specified, in this subsection, the
term ‘Secretary’ means the Secretary of Hous-
ents of assistance under this section if the
State, unit of general local government, or In-
dian tribe, as designated by the Secretary in ac-
cordance with regulations issued by the Sec-
retary under subparagraph (B), assumes all of
the responsibilities for environmental review,
decisionmaking, and action pursuant to such
Act, and such other provisions of law as the
regulations of the Secretary specify, that would
otherwise apply to the Secretary were the Sec-
retary to undertake such projects as Federal
projects.
‘‘(B) IMPLEMENTATION.—The Secretary of
Housing and Urban Development and the Sec-
retary of Agriculture shall each issue regula-
tions to carry out this subsection only after con-
sultation with the Council on Environmental
Quality. Such regulations shall—
‘‘(i) specify any other provisions of
law that further the purposes of the Na-
tional Environmental Policy Act of 1969
and to which the assumption of responsi-
bility as provided in this subsection ap-
plies;
‘‘(ii) provide eligibility criteria and
procedures for the designation of a State,
unit of general local government, or Indian
tribe to assume all of the responsibilities
described in subparagraph (A);
‘‘(iii) specify the purposes for which
funds may be committed without regard to
the procedure established under paragraph
(3);
‘‘(iv) provide for monitoring of the
performance 
of 
environmental 
reviews
under this subsection;
(v) in the discretion of the Secretary,
provide for the provision or facilitation of
training for such performance; and
‘‘(vi) subject to the discretion of the
Secretary, provide for suspension or termi-
nation by the Secretary of the assumption
under subparagraph (A).
‘‘(C) RESPONSIBILITIES OF STATE, UNIT
OF GENERAL LOCAL GOVERNMENT, OR INDIAN
TRIBE.—The Secretary’s duty under subpara-
graph (B) shall not be construed to limit any
responsibility assumed by a State, unit of gen-
eral local government, or Indian tribe with re-
spect to any particular release of funds under
subparagraph (A).
‘‘(3) PROCEDURE.—The Secretary shall ap-
prove the release of funds for projects subject to the
procedures authorized by this subsection only if, not
less than 15 days prior to such approval and prior
to any commitment of funds to such projects (except
for such purposes specified in the regulations issued
under paragraph (2)(B)), the recipient submits to
the Secretary a request for such release accompanied
by a certification of the State, unit of general local
government, or Indian tribe that meets the require-
ments of paragraph (4). The approval by the Sec-
retary of any such certification shall be deemed to
satisfy the Secretary’s responsibilities pursuant to
paragraph (1) under the National Environmental
Policy Act of 1969 and such other provisions of law
as the regulations of the Secretary specify insofar as
those responsibilities relate to the releases of funds
for projects to be carried out pursuant thereto that
are covered by such certification.
‘‘(4) CERTIFICATION.—A certification under the
procedures authorized by this subsection shall—
‘‘(A) be in a form acceptable to the Sec-
retary;
‘‘(B) be executed by the chief executive of-
ficer or other officer of the State, unit of gen-
eral local government, or Indian tribe who
qualifies under regulations of the Secretary;
‘‘(C) specify that the State, unit of general
local government, or Indian tribe under this
subsection has fully carried out its responsibil-
ities as described under paragraph (2); and
‘‘(D) specify that the certifying officer—
‘‘(i) consents to assume the status of
a responsible Federal official under the
National Environmental Policy Act of
1969 and each provision of law specified in
regulations issued by the Secretary insofar
as the provisions of such Act or other such
provisions of law apply pursuant to para-
graph (2); and
‘‘(ii) is authorized and consents on be-
half of the State, unit of general local gov-
ernment, or Indian tribe and himself or
herself to accept the jurisdiction of the
Federal courts for the purpose of enforce-
ment of the responsibilities as such an offi-
cial.
‘‘(5) APPROVAL BY STATES.—In cases in which
a unit of general local government carries out the re-
sponsibilities described in paragraph (2), the Sec-
retary may permit the State to perform those ac-
tions of the Secretary described in paragraph (3).
The performance of such actions by the State, where
permitted, shall be deemed to satisfy the responsibil-
ities referred to in the second sentence of paragraph
(3).’’.
TITLE II—CREDIT AGAINST IN-
COME TAX FOR CERTAIN IN-
VESTMENTS IN BUSINESSES
LOCATED 
IN 
LOW-INCOME
COMMUNITIES
SEC. 201. SHORT TITLE.
This title may be cited as the ‘‘New Markets Tax
Credit Act of 2000’’.
SEC. 202. NEW MARKETS TAX CREDIT.
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of
1986 (relating to business-related credits) is amended by
adding at the end the following new section:
‘‘SEC. 45D. NEW MARKETS TAX CREDIT.
‘‘(a) ALLOWANCE OF CREDIT.—
‘‘(1) IN GENERAL.—For purposes of section 38,
in the case of a taxpayer who holds a qualified eq-
uity investment on a credit allowance date of such
investment which occurs during the taxable year, the
new markets tax credit determined under this sec-
tion for such taxable year is an amount equal to 6
percent of the amount paid to the qualified commu-
nity development entity for such investment at its
original issue.
‘‘(2) CREDIT
ALLOWANCE
DATE.—The term
‘credit allowance date’ means, with respect to any
qualified equity investment—
‘‘(A) the date on which such investment is
initially made, and
‘‘(B) each of the 4 anniversary dates of
such date thereafter.
‘‘(b) QUALIFIED EQUITY INVESTMENT.—For pur-
poses of this section—
‘‘(1) IN GENERAL.—The term ‘qualified equity
investment’ means any equity investment in a quali-
fied community development entity if—
‘‘(A) such investment is acquired by the
taxpayer at its original issue (directly or
through an underwriter) solely in exchange for
cash,
‘‘(B) substantially all of such cash is used
by the qualified community development entity
to make qualified low-income community invest-
ments, and
‘‘(C) such investment is designated for
purposes of this section by the qualified com-
munity development entity.
Such term shall not include any equity investment
issued by a qualified community development entity
more than 5 years after the date that such entity re-
ceives an allocation under subsection (f). Any alloca-
tion not used within such 5-year period may be re-
allocated by the Secretary under subsection (f).
‘‘(2) LIMITATION.—The maximum amount of
equity investments issued by a qualified community
development entity which may be designated under
paragraph (1)(C) by such entity shall not exceed the
portion of the limitation amount allocated under
subsection (f) to such entity.
‘‘(3) SAFE HARBOR FOR DETERMINING USE OF
CASH.—The requirement of paragraph (1)(B) shall
be treated as met if at least 85 percent of the aggre-
gate gross assets of the qualified community devel-
opment entity are invested in qualified low-income
community investments.
‘‘(4) 
TREATMENT
OF
SUBSEQUENT
PUR-
CHASERS.—The term ‘qualified equity investment’
includes any equity investment which would (but for
paragraph (1)(A)) be a qualified equity investment
in the hands of the taxpayer if such investment was
a qualified equity investment in the hands of a prior
holder.
‘‘(5) REDEMPTIONS.—A rule similar to the rule
of section 1202(c)(3) shall apply for purposes of this
subsection.
‘‘(6) EQUITY INVESTMENT.—The term ‘equity
investment’ means—
‘‘(A) any stock in a qualified community
development entity which is a corporation, and
‘‘(B) any capital interest in a qualified
community development entity which is a part-
nership.
‘‘(c) QUALIFIED COMMUNITY DEVELOPMENT ENTI-
TY.—For purposes of this section—
‘‘(1) IN GENERAL.—The term ‘qualified com-
munity development entity’ means any domestic cor-
poration or partnership if—
‘‘(A) the primary mission of the entity is
serving, or providing investment capital for,
low-income communities or low-income persons,
‘‘(B) the entity maintains accountability to
residents of low-income communities through
representation on governing or advisory boards
or otherwise, and
‘‘(C) the entity is certified by the Secretary
for purposes of this section as being a qualified
community development entity.
‘‘(2) SPECIAL RULES FOR CERTAIN ORGANIZA-
TIONS.—The requirements of paragraph (1) shall be
treated as met by—
‘‘(A) any specialized small business invest-
ment 
company 
(as 
defined 
in 
section
1044(c)(3)), and
‘‘(B) any community development financial
institution (as defined in section 103 of the
Community Development Banking and Finan-
cial Institutions Act of 1994 (12 U.S.C. 4702)).
‘‘(d) QUALIFIED LOW-INCOME COMMUNITY INVEST-
MENTS.—For purposes of this section—
‘‘(1) IN GENERAL.—The term ‘qualified low-in-
come community investment’ means—
‘‘(A) any equity investment in, or loan to,
any qualified active low-income community busi-
ness,
‘‘(B) the purchase from another commu-
nity development entity of any loan made by
such entity which is a qualified low-income com-
munity investment if the amount received by
such other entity from such purchase is used by
such other entity to make qualified low-income
community investments,
‘‘(C) financial counseling and other serv-
ices specified in regulations prescribed by the
Secretary to businesses located in, and resi-
dents of, low-income communities, and
‘‘(D) any equity investment in, or loan to,
any qualified community development entity if
substantially all of the investment or loan is
used by such entity to make qualified low-in-
come community investments described in sub-
paragraphs (A), (B), and (C).
‘‘(2) QUALIFIED ACTIVE LOW-INCOME COMMU-
NITY BUSINESS.—
‘‘(A) IN GENERAL.—For purposes of para-
graph (1), the term ‘qualified active low-income
community business’ means, with respect to any
taxable year, any corporation or partnership if
for such year—
‘‘(i) at least 50 percent of the total
gross income of such entity is derived from
the active conduct of a qualified business
within any low-income community,
‘‘(ii) a substantial portion of the use
of the tangible property of such entity
(whether owned or leased) is within any
low-income community,
‘‘(iii) a substantial portion of the serv-
ices performed for such entity by its em-
ployees are performed in any low-income
community,
‘‘(iv) less than 5 percent of the aver-
age of the aggregate unadjusted bases of
the property of such entity is attributable
to collectibles (as defined in section
408(m)(2)) other than collectibles that are
held primarily for sale to customers in the
ordinary course of such business, and
‘‘(v) less than 5 percent of the aver-
age of the aggregate unadjusted bases of
the property of such entity is attributable
to nonqualified financial property (as de-
fined in section 1397B(e)).
‘‘(B) PROPRIETORSHIP.—Such term shall
include any business carried on by an individual
as a proprietor if such business would meet the
requirements of subparagraph (A) were it incor-
porated.
‘‘(C) PORTIONS
OF
BUSINESS
MAY
BE
QUALIFIED
ACTIVE
LOW-INCOME
COMMUNITY
BUSINESS.—The term ‘qualified active low-in-
come community business’ includes any trades
or businesses which would qualify as a qualified
active low-income community business if such
trades or businesses were separately incor-
porated.
‘‘(3) QUALIFIED BUSINESS.—For purposes of
this subsection, the term ‘qualified business’ has the
meaning given to such term by section 1397B(d);
except that—
‘‘(A) in lieu of applying paragraph (2)(B)
thereof, the rental to others of real property lo-
cated in any low-income community shall be
treated as a qualified business if there are sub-
stantial improvements located on such property,
‘‘(B) paragraph (3) thereof shall not apply,
and
‘‘(C) such term shall not include any busi-
ness if a significant portion of the equity inter-
ests in such business are held by any person
who holds a significant portion of the equity in-
vestments in the community development entity.
‘‘(e) LOW-INCOME COMMUNITY.—For purposes of
this section—
‘‘(1) IN GENERAL.—The term ‘low-income com-
munity’ means any population census tract if—
‘‘(A) the poverty rate for such tract is at
least 20 percent, or
‘‘(B)(i) in the case of a tract not located
within a metropolitan area, the median family
income for such tract does not exceed 80 per-
cent of statewide median family income, or
‘‘(ii) in the case of a tract located within
a metropolitan area, the median family income
for such tract does not exceed 80 percent of the
greater of statewide median family income or
the metropolitan area median family income.
‘‘(2) AREAS NOT WITHIN CENSUS TRACTS.—In
the case of an area which is not tracted for popu-
lation census tracts, the equivalent county divisions
(as defined by the Bureau of the Census for pur-
poses of defining poverty areas) shall be used for
purposes of determining poverty rates and median
family income.
‘‘(f) NATIONAL LIMITATION ON AMOUNT OF INVEST-
MENTS DESIGNATED.—
‘‘(1) IN GENERAL.—There is a new markets tax
credit limitation of $1,200,000,000 for each of cal-
endar years 2000 through 2004.
‘‘(2) ALLOCATION OF LIMITATION.—The limita-
tion under paragraph (1) shall be allocated by the
Secretary among qualified community development
entities selected by the Secretary. In making alloca-
tions under the preceding sentence, the Secretary
shall give priority to entities with records of having
successfully provided capital or technical assistance
to disadvantaged businesses or communities.
‘‘(3) CARRYOVER OF UNUSED LIMITATION.—If
the new markets tax credit limitation for any cal-
endar year exceeds the aggregate amount allocated
under paragraph (2) for such year, such limitation
for the succeeding calendar year shall be increased
by the amount of such excess.
‘‘(g) RECAPTURE OF CREDIT IN CERTAIN CASES.—
‘‘(1) IN GENERAL.—If, at any time during the
5-year period beginning on the date of the original
issue of a qualified equity investment in a qualified
community development entity, there is a recapture
event with respect to such investment, then the tax
imposed by this chapter for the taxable year in
which such event occurs shall be increased by the
credit recapture amount.
‘‘(2) CREDIT RECAPTURE AMOUNT.—For pur-
poses of paragraph (1), the credit recapture amount
is an amount equal to the sum of—
‘‘(A) the aggregate decrease in the credits
allowed to the taxpayer under section 38 for all
prior taxable years which would have resulted if
no credit had been determined under this sec-
tion with respect to such investment, plus
‘‘(B) interest at the overpayment rate es-
tablished under section 6621 on the amount de-
termined under subparagraph (A) for each
prior taxable year for the period beginning on
the due date for filing the return for the prior
taxable year involved.
No deduction shall be allowed under this chapter for
interest described in subparagraph (B).
‘‘(3) RECAPTURE
EVENT.—For purposes of
paragraph (1), there is a recapture event with re-
spect to an equity investment in a qualified commu-
nity development entity if—
‘‘(A) such entity ceases to be a qualified
community development entity,
‘‘(B) the proceeds of the investment cease
to be used as required of subsection (b)(1)(B),
or
‘‘(C) such investment is redeemed by such
entity.
‘‘(4) SPECIAL RULES.—
‘‘(A) TAX
BENEFIT
RULE.—The tax for
the taxable year shall be increased under para-
graph (1) only with respect to credits allowed
by reason of this section which were used to re-
duce tax liability. In the case of credits not so
used to reduce tax liability, the carryforwards
and carrybacks under section 39 shall be appro-
priately adjusted.
‘‘(B) NO CREDITS AGAINST TAX.—Any in-
crease in tax under this subsection shall not be
treated as a tax imposed by this chapter for
purposes of determining the amount of any
credit under this chapter or for purposes of sec-
tion 55.
‘‘(h) BASIS REDUCTION.—The basis of any qualified
equity investment shall be reduced by the amount of any
credit determined under this section with respect to such
investment.
‘‘(i) REGULATIONS.—The Secretary shall prescribe
such regulations as may be appropriate to carry out this
section, including regulations—
‘‘(1) which limit the credit for investments
which are directly or indirectly subsidized by other
Federal benefits (including the credit under section
42 and the exclusion from gross income under sec-
tion 103),
‘‘(2) which prevent the abuse of the provisions
of this section through the use of related parties,
‘‘(3) which impose appropriate reporting re-
quirements, and
‘‘(4) which apply the provisions of this section
to newly formed entities.’’
(b) CREDIT MADE PART OF GENERAL BUSINESS
CREDIT.—
(1) IN GENERAL.—Subsection (b) of section 38
of such Code is amended by striking ‘‘plus’’ at the
end of paragraph (11), by striking the period at the
end of paragraph (12) and inserting ‘‘, plus’’, and
by adding at the end the following new paragraph:
‘‘(13) the new markets tax credit determined
under section 45D(a).’’
(2) LIMITATION
ON
CARRYBACK.—Subsection
(d) of section 39 of such Code is amended by adding
at the end the following new paragraph:
‘‘(9) NO CARRYBACK OF NEW MARKETS TAX
CREDIT BEFORE JANUARY 1, 2000.—No portion of
the unused business credit for any taxable year
which is attributable to the credit under section 45D
may be carried back to a taxable year ending before
January 1, 2000.’’
(c) DEDUCTION FOR UNUSED CREDIT.—Subsection
(c) of section 196 of such Code is amended by striking
‘‘and’’ at the end of paragraph (7), by striking the period
at the end of paragraph (8) and inserting ‘‘, and’’, and
by adding at the end the following new paragraph:
‘‘(9) the new markets tax credit determined
under section 45D(a).’’
(d) CLERICAL AMENDMENT.—The table of sections
for subpart D of part IV of subchapter A of chapter 1
of such Code is amended by adding at the end the fol-
lowing new item:
‘‘Sec. 45D. New markets tax credit.’’
(e) EFFECTIVE DATE.—The amendments made by
this section shall apply to investments made after Decem-
ber 31, 1999.
TITLE III—EXCLUSION OF CER-
TAIN SEVERANCE PAYMENT
AMOUNTS FROM INCOME
SEC. 301. SHORT TITLE.
This title may be cited as the ‘‘Layoff Tax Relief
Act’’.
SEC. 302. EXCLUSION FROM INCOME OF SEVERANCE PAY-
MENT AMOUNTS.
(a) IN GENERAL.—Part III of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 (relating to
items specifically excluded from gross income) is amended
by redesignating section 139 as section 139A and by in-
serting after section 138 the following new section:
‘‘SEC. 139. SEVERANCE PAYMENTS.
‘‘(a) IN GENERAL.—In the case of an individual,
gross income shall not include any qualified severance pay-
ment.
‘‘(b) LIMITATION.—The amount to which the exclu-
sion under subsection (a) applies shall not exceed $50,000
with respect to any separation from employment.
‘‘(c) QUALIFIED SEVERANCE PAYMENT.—For pur-
poses of this section—
‘‘(1) IN GENERAL.—The term ‘qualified sever-
ance payment’ means any payment received by an
individual if—
‘‘(A) such payment was paid by such indi-
vidual’s employer on account of such individ-
ual’s separation from employment, and
‘‘(B) such separation was in connection
with a reduction in the work force of the em-
ployer.
Such term shall include any payment received by an
individual from such individual’s employer on ac-
count of such individual’s completion of a degree
program pursuant to an education program of the
employer if such payment is received after such indi-
vidual’s separation from employment in connection
with a reduction in the work force of the employer.
‘‘(2) LIMITATION.—Such term shall not include
any payment received by an individual if the aggre-
gate payments received with respect to the separa-
tion from employment exceed $150,000.’’
(b) CLERICAL AMENDMENT.—The table of sections
for part III of subchapter B of chapter 1 of such Code
is amended by striking the item relating to section 139
and inserting the following new items:
‘‘Sec. 139. Severance payments.
‘‘Sec. 139A. Cross references to other Acts.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 1999.
TITLE IV—EXTENSION OF
MEDICAL BENEFITS
SEC. 401. AMENDMENTS TO THE EMPLOYEE RETIREMENT
INCOME SECURITY ACT OF 1974.
(a) 
ESTABLISHMENT
OF
NEW
QUALIFYING
EVENT.—
(1) IN GENERAL.—Section 603 of the Employee
Retirement Income Security Act of 1974 (29 U.S.C.
1163) is amended by inserting after paragraph (6)
the following new paragraph:
‘‘(7) the covered employee becoming eligible for
adjustment assistance under chapter 2 of title II of
the Trade Act of 1974 (19 U.S.C. 2271 et seq.)’’.
(2) ELIGIBLE
FOR
ADJUSTMENT
ASSISTANCE
DEFINED.—Section 607 of such Act (29 U.S.C.
1167) is amended—
(A) in paragraph (3)—
(i) in subparagraph (A), by inserting
‘‘except as otherwise provided in this para-
graph’’ after ‘‘means,’’; and
(ii) by adding at the end the following
new subparagraph:
‘‘(D) SPECIAL RULE FOR CERTAIN WORK-
ERS
ELIGIBLE
FOR
ADJUSTMENT
ASSIST-
ANCE.—In the case of a qualifying event de-
scribed in section 603(7), the term ‘eligible for
adjustment assistance’ means a covered em-
ployee and any other individual who, on the day
before such qualifying event, is a beneficiary
under the plan on the basis of the individual’s
relationship to such covered employee.’’; and
(B) by adding at the end the following new
paragraph:
‘‘(6) ELIGIBLE
FOR
ADJUSTMENT
ASSIST-
ANCE.—The term ‘eligible for adjustment assistance’
means with respect to a qualifying event described in
section 603(7), an individual who becomes eligible
for adjustment assistance under chapter 2 of title II
of the Trade Act of 1974 (19 U.S.C. 2271 et seq.)’’.
(3) PREMIUM REQUIREMENTS.—Section 602(3)
is amended by adding at the end the following sen-
tence: ‘‘In a case of an individual described in para-
graph 607(6), the Federal government shall pay any
premiums previously paid by the employer.
(b) EFFECTIVE DATE.—The amendments made by
this section shall apply to qualifying events occurring on
or after January 1, 2001. In the case of a qualifying event
occurring on or after such date and before the date of
the enactment of this Act, such event shall be deemed (for
purposes of such amendments) to have occurred on the
date of the enactment of this Act.
SEC. 402. AMENDMENTS TO THE PUBLIC HEALTH SERVICE
ACT.
(a) 
ESTABLISHMENT
OF
NEW
QUALIFYING
EVENT.—
(1) IN GENERAL.—Section 2203 of the Public
Health Service Act (42 U.S.C. 300bb-3) is amended
by inserting after paragraph (5) the following new
paragraph:
‘‘(6) the covered employee becoming eligible for
adjustment assistance under chapter 2 of title II of
the Trade Act of 1974 (19 U.S.C. 2271 et seq.)’’.
(2) ELIGIBLE
FOR
ADJUSTMENT
ASSISTANCE
DEFINED.—Section 2208 of such Act (42 U.S.C.
300bb-8) is amended—
(A) in paragraph (3)—
(i) in subparagraph (A), by inserting
‘‘except as otherwise provided in this para-
graph’’ after ‘‘means,’’; and
(ii) by adding at the end the following
new subparagraph:
‘‘(C) SPECIAL RULE FOR CERTAIN WORK-
ERS
ELIGIBLE
FOR
ADJUSTMENT
ASSIST-
ANCE.—In the case of a qualifying event de-
scribed in section 2203(6), the term ‘eligible for
adjustment assistance’ means a covered em-
ployee and any other individual who, on the day
before such qualifying event, is a beneficiary
under the plan on the basis of the individual’s
relationship to such covered employee.’’; and
(B) by adding at the end the following new
paragraph:
‘‘(5) ELIGIBLE
FOR
ADJUSTMENT
ASSIST-
ANCE.—The term ‘eligible for adjustment assistance’
means with respect to a qualifying event described in
section 2203(6), an individual who becomes eligible
for adjustment assistance under chapter 2 of title II
of the Trade Act of 1974 (19 U.S.C. 2271 et seq.)’’.
(3) 
PREMIUM
REQUIREMENTS.—Section
2202(3) is amended by adding at the end the fol-
lowing sentence: ‘‘In a case of an individual de-
scribed in paragraph 2208(5), the Federal govern-
ment shall pay any premiums previously paid by the
employer.
(b) EFFECTIVE DATE.—The amendments made by
this section shall apply to qualifying events occurring on
or after January 1, 2001. In the case of a qualifying event
occurring on or after such date and before the date of
the enactment of this Act, such event shall be deemed (for
purposes of such amendments) to have occurred on the
date of the enactment of this Act.
SEC. 403. AMENDMENTS TO THE INTERNAL REVENUE CODE
OF 1986.
(a) 
ESTABLISHMENT
OF
NEW
QUALIFYING
EVENT.—
(1) IN GENERAL.—Section 4980B(f)(3) of the
Internal Revenue Code of 1986 is amended by in-
serting after subparagraph (F) the following new
subparagraph:
‘‘(G) the covered employee becoming eligi-
ble for adjustment assistance under chapter 2
of title II of the Trade Act of 1974 (19 U.S.C.
2271 et seq.)’’.
(2) ELIGIBLE
FOR
ADJUSTMENT
ASSISTANCE
DEFINED.—Section 4980B(g) of such Code is
amended—
(A) in paragraph (1)—
(i) in subparagraph (A), by inserting
‘‘except as otherwise provided in this para-
graph’’ after ‘‘means,’’; and
(ii) by adding at the end the following
new subparagraph:
‘‘(E) SPECIAL RULE FOR CERTAIN WORK-
ERS
ELIGIBLE
FOR
ADJUSTMENT
ASSIST-
ANCE.—In the case of a qualifying event de-
scribed in subsection (f)(3)(G), the term ‘eligi-
ble for adjustment assistance’ means a covered
employee and any other individual who, on the
day before such qualifying event, is a bene-
ficiary under the plan on the basis of the indi-
vidual’s relationship to such covered em-
ployee.’’; and
(B) by adding at the end the following new
paragraph:
‘‘(5) ELIGIBLE
FOR
ADJUSTMENT
ASSIST-
ANCE.—The term ‘eligible for adjustment assistance’
means with respect to a qualifying event described in
section (f)(3)(G), an individual who becomes eligible
for adjustment assistance under chapter 2 of title II
of the Trade Act of 1974 (19 U.S.C. 2271 et seq.)’’.
(3) 
PREMIUM
REQUIREMENTS.—Section
4980B(f)(2)(C) is amended by adding at the end the
following sentence: ‘‘In a case of an individual de-
scribed in subsection (g)(5), the Federal government
shall pay any premiums previously paid by the em-
ployer.
(b) EFFECTIVE DATE.—The amendments made by
this section shall apply to qualifying events occurring on
or after January 1, 2001. In the case of a qualifying event
occurring on or after such date and before the date of
the enactment of this Act, such event shall be deemed (for
purposes of such amendments) to have occurred on the
date of the enactment of this Act.
TITLE 
V—COMMUNITY 
ECO-
NOMIC ADJUSTMENT ACT OF
2000
SEC. 501. SHORT TITLE.
This title may be cited as the ‘‘Community Economic
Adjustment Act of 2000’’.
SEC. 502. FINDINGS AND PURPOSES
(a) FINDINGS.—Congress finds the following:
(1) When a community suffers a significant loss
of jobs over a relatively short period of time whether
from industrial or corporate restructuring, new re-
quirements in Federal laws or regulations, reduction
in defense expenditures, depletion of natural re-
sources, natural disasters, changing trade patterns
or other reasons, it can experience sudden economic
distress.
(2) Federal departments and agencies with ex-
isting programs that support workers and commu-
nities in States and local areas in their efforts to re-
cover from this economic distress do so in a capacity
defined by the mission of the department or agency.
(3) Federal departments and agencies providing
such assistance include the Department of Agri-
culture, Department of Commerce, Department of
Defense, Department of Education, Department of
Labor, Department of Housing and Urban Develop-
ment, the Department of the Treasury, and the
Small Business Administration.
(4) To date, no Federal department or agency
has unique authority to coordinate these often inde-
pendent efforts across the Federal Government in
the same manner as the Federal Emergency Man-
agement Agency is charged to coordinate the Fed-
eral response to a disaster or the Department of De-
fense’s Office of Economic Adjustment is charged to
coordinate the Federal response for communities ex-
periencing base closures and realignments.
(5) There is a recognized need for the Federal
Government to be able to coordinate its response to
communities experiencing sudden economic distress
both at the national level and in the community
itself, and to further be able to coordinate the Fed-
eral response with State and local efforts.
(6) The Office of Economic Adjustment of the
Department of Defense has successfully provided
such coordination across the Federal Government
for communities experiencing defense base closures
and is a good model on which to base any govern-
ment-wide coordination effort with respect to com-
munities experiencing sudden economic distress.
(7) The mission of the Economic Development
Administration of the Department of Commerce in-
cludes helping States and local areas to design and
implement strategies for facilitating adjustment to
changes in their economic situation that are causing
or threaten to cause serious structural damage to
the underlying economic base which may occur sud-
denly, and as a result, is the most appropriate place
in the Federal Government to locate an office to co-
ordinate Federal response to communities experi-
encing sudden economic distress.
(b) PURPOSES.—The purposes of this title are—
(1) to help communities to adjust to such eco-
nomic dislocation by providing for targeted and inte-
grated Federal responses by authorizing the Sec-
retary of Commerce to coordinate the Federal re-
sponse through an Office of Community Economic
Adjustment which will employ methods and tech-
niques proven successful by the Defense Depart-
ment’s Office of Economic Adjustment in connection
with defense base closures; and
(2) to increase authorization of appropriations
for community adjustment programs of the Eco-
nomic Development Administration to provide the
Secretary of Commerce with more resources for
grant assistance for communities to support the de-
velopment and implementation of adjustment strate-
gies that are designed to restore vital economic ac-
tivity and create new jobs.
SEC. 503 OFFICE OF COMMUNITY ECONOMIC ADJUSTMENT.
Title V of the Public Works and Economic Develop-
ment Act of 1965 (42 U.S.C. 3191) is amended by adding
at the end the following:
‘‘SEC. 508. OFFICE OF COMMUNITY ECONOMIC ADJUST-
MENT.
‘‘(a) ESTABLISHMENT.—The Secretary is authorized
to establish in the Economic Development Administration
an Office of Community Economic Adjustment (herein-
after in this section referred to as the ‘Office’). The head
of the Office shall, not later than 90 days after the date
of the enactment of the Community Economic Adjustment
Act of 2000, develop an operating plan for the Office.
‘‘(b) DUTIES.—The Office shall—
‘‘(1) coordinate the Federal Government’s re-
sponse to communities experiencing sudden economic
distress caused by a loss of jobs due to plant clo-
sures, significant layoffs, or significant relocation of
jobs to other communities for any reason, including
shifting patterns in international trade, natural dis-
asters or other problems, by—
‘‘(A) identifying relevant programs and re-
sources to ensure that communities are aware
of all available Federal resources that com-
plement or support state and local resources
and programs; and
‘‘(B) working with the Departments of the
Treasury, Agriculture, Labor, Housing and
Urban Development, and Education, the Small
Business Administration, and other agencies to
ensure that communities receive Federal assist-
ance in a targeted, integrated manner;
‘‘(C) assigning a project manager as ap-
propriate to work with an affected community
to carry out subparagraphs (A) and (B);
‘‘(2) provide technical assistance, planning
grants, and other assistance under this Act to help
communities organize themselves, develop, and carry
out economic adjustment strategies for replacing in-
dustry and jobs that have been lost or are threat-
ened by the economic downturn;
‘‘(3) help eligible applicants in completing appli-
cations for other assistance that may be useful in al-
leviating the economic distress in the communities;
and
‘‘(4) perform such other duties as the Secretary
may deem appropriate.’’.
SEC. 504. AUTHORIZATION OF APPROPRIATIONS.
Title VII of the Public Works and Economic Develop-
ment Act (42 U.S.C. 3231) is amended by adding at the
end the following:
‘‘SEC. 704. AUTHORIZATION OF APPROPRIATIONS FOR COM-
MUNITY ADJUSTMENT ASSISTANCE.
‘‘(a) IN GENERAL.—In addition to amounts made
available under section 701, there is authorized to be ap-
propriated $35,000,000 for each of fiscal years 2001
through 2005 for community adjustment assistance under
the economic adjustment program of the Economic Devel-
opment Administration, of which—
‘‘(1) $10,000,000 is authorized to be appro-
priated for each such fiscal year to the Office of
Community Economic Adjustment established under
section 508(a) for the conduct of the duties of the
Office under section 508(b), of which not to exceed
$1,500,000 may be made available for salaries and
expenses of the Office; and
‘‘(2) $25,000,000 is authorized to be appro-
priated for each such fiscal year for additional eco-
nomic development program funds in addition to the
amounts available for such purposes for communities
successfully completing planning grants (as de-
scribed in section 508(b)(2)) to implement their ap-
proved plans.
‘‘(b) AVAILABILITY.—Amounts appropriated pursu-
ant to the authorization of appropriations under sub-
section (a) are authorized to remain available until ex-
pended.’’.
TITLE VI—MISCELLANEOUS
PROVISIONS
SEC. 601. STUDY AND REPORT RELATING TO PILOT
PROJECTS FOR PUBLIC EMPLOYMENT FOR
TEMPORARILY DISLOCATED WORKERS.
(a) STUDY.—The Secretary of Labor shall conduct
a study on the feasibility of establishing and carrying out
1 or more pilot projects to provide public employment for
temporarily dislocated workers.
(b) REPORT.—Not later than 1 year after the date
of the enactment of this Act, the Secretary of Labor shall
prepare and submit to the Congress a report that contains
the results of the study conducted under subsection (a).
SEC. 602. RESUME PREPARATION ASSISTANCE FOR ELIGI-
BLE INDIVIDUALS UNDER THE WORKFORCE
INVESTMENT ACT OF 1998.
(a) YOUTH ACTIVITIES.—Section 129(c)(2) of the
Workforce Investment Act of 1998 (29 U.S.C. 2854(c)(2))
is amended—
(1) in subparagraph (I), by striking ‘‘and’’ at
the end;
(2) in subparagraph (J), by striking the period
and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(K) assistance for the preparation of re-
sumes and related pre-employment assistance.’’.
(b) ADULT
AND
DISLOCATED
WORKER
ACTIVI-
TIES.—Section 134(d)(2)(D) of the Workforce Investment
Act of 1998 (29 U.S.C. 2864(d)(2)(D)) is amended by in-
serting after ‘‘job search and placement assistance’’ the
following: ‘‘, including assistance for the preparation of
resumes and related pre-employment assistance’’.
SEC. 603. FUNDING FOR INTERNATIONAL PROGRAM FOR
THE ELIMINATION OF CHILD LABOR (IPEC)
OF THE INTERNATIONAL LABOR ORGANIZA-
TION (ILO).
There is authorized to be appropriated to the Presi-
dent for a contribution to the International Program for
the Elimination of Child Labor (IPEC) of the Inter-
national Labor Organization (ILO) $45,000,000 for fiscal
year 2001.
Æ