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‘‘(3) REMUNERATION.—The acts referred to in
paragraph (2) may be continued only upon the pay-
ment of an equitable remuneration to the patentee
that is determined in an action brought under chap-
ter 28 and chapter 29 (other than those provisions
excluded by paragraph (2)) of this title.’’.
(2) PROVISION OF FURTHER LIMITED REEXAM-
INATION
AND
CONDITIONS
OF
RESTRICTION
RE-
QUIREMENTS.—(A) The Commissioner of Patents
and Trademarks shall prescribe regulations to pro-
vide for further limited reexamination of applications
that have been pending for 2 years or longer as of
the effective date of section 154(a)(2) of title 35,
United States Code, as added by paragraph (1) of
this subsection, taking into account any reference
made in such application to any earlier filed applica-
tion under section 120, 121, or 365(c) of such title.
The Commissioner may establish appropriate fees
for such further limited reexamination.
(B) The Commissioner of Patents and Trade-
marks shall prescribe regulations to provide for the
examination of more than 1 independent and dis-
tinct invention in an application that has been pend-
ing for 3 years or longer as of the effective date of
section 154(a)(2) of title 35, United States Code, as
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added by paragraph (1) of this subsection, taking
into account any reference made in such application
to any earlier filed application under section 120,
121, or 365(c) of such title. The Commissioner may
establish appropriate fees for such examination.
(b) ESTABLISHMENT OF A DOMESTIC PRIORITY SYS-
TEM.—
(1) IN
GENERAL.—Section 119 of title 35,
United States Code, is amended—
(A) by amending the section caption to
read as follows:
‘‘§ 119. Benefit of earlier filing date; right of priority’’;
(B) by designating the undesignated para-
graphs as subsections (a), (b), (c), and (d), re-
spectively; and
(C) by adding at the end the following:
‘‘(e)(1) An application for patent filed under section
111(a) or section 363 of this title for an invention dis-
closed in the manner provided by the first paragraph of
section 112 of this title in a provisional application filed
under section 111(b) of this title, by an inventor or inven-
tors named in the provisional application, shall have the
same effect, as to such invention, as though filed on the
date of the provisional application filed under section
111(b) of this title, if the application for patent filed under
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section 111(a) or section 363 of this title is filed not later
than 12 months after the date on which the provisional
application was filed and if it contains or is amended to
contain a specific reference to the provisional application.
‘‘(2) A provisional application filed under section
111(b) of this title may not be relied upon in any proceed-
ing in the Patent and Trademark Office unless the fee
set forth in subparagraph (A) or (C) of section 41(a)(1)
of this title has been paid and the provisional application
was pending on the filing date of the application for patent
under section 111(a) or section 363 of this title.’’.
(2) FEES.—Section 41(a)(1) of title 35, United
States Code, is amended by adding at the end the
following:
‘‘(C) On filing each provisional application for
an original patent, $150.’’.
(3) APPLICATIONS.—Section 111 of title 35,
United States Code, is amended to read as follows:
‘‘§ 111. Application
‘‘(a) IN GENERAL.—
‘‘(1) WRITTEN
APPLICATION.—An application
for patent shall be made, or authorized to be made,
by the inventor, except as otherwise provided in this
title, in writing to the Commissioner.
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‘‘(2) CONTENTS.—Such application shall in-
clude—
‘‘(A) a specification as prescribed by sec-
tion 112 of this title;
‘‘(B) a drawing as prescribed by section
113 of this title; and
‘‘(C) an oath by the applicant as pre-
scribed by section 115 of this title.
‘‘(3) FEE AND OATH.—The application must be
accompanied by the fee required by law. The fee and
oath may be submitted after the specification and
any required drawing are submitted, within such pe-
riod and under such conditions, including the pay-
ment of a surcharge, as may be prescribed by the
Commissioner.
‘‘(4) FAILURE
TO
SUBMIT.—Upon failure to
submit the fee and oath within such prescribed pe-
riod, the application shall be regarded as abandoned,
unless it is shown to the satisfaction of the Commis-
sioner that the delay in submitting the fee and oath
was unavoidable or unintentional. The filing date of
an application shall be the date on which the speci-
fication and any required drawing are received in the
Patent and Trademark Office.
‘‘(b) PROVISIONAL APPLICATION.—
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‘‘(1) AUTHORIZATION.—A provisional applica-
tion for patent shall be made or authorized to be
made by the inventor, except as otherwise provided
in this title, in writing to the Commissioner. Such
application shall include—
‘‘(A) a specification as prescribed by the
first paragraph of section 112 of this title; and
‘‘(B) a drawing as prescribed by section
113 of this title.
‘‘(2) CLAIM.—A claim, as required by the sec-
ond through fifth paragraphs of section 112, shall
not be required in a provisional application.
‘‘(3) FEE.—(A) The application must be ac-
companied by the fee required by law.
‘‘(B) The fee may be submitted after the speci-
fication and any required drawing are submitted,
within such period and under such conditions, in-
cluding the payment of a surcharge, as may be pre-
scribed by the Commissioner.
‘‘(C) Upon failure to submit the fee within such
prescribed period, the application shall be regarded
as abandoned, unless it is shown to the satisfaction
of the Commissioner that the delay in submitting
the fee was unavoidable or unintentional.
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‘‘(4) FILING DATE.—The filing date of a provi-
sional application shall be the date on which the
specification and any required drawing are received
in the Patent and Trademark Office.
‘‘(5) ABANDONMENT.—The provisional applica-
tion shall be regarded as abandoned 12 months after
the filing date of such application and shall not be
subject to revival thereafter.
‘‘(6) OTHER BASIS FOR PROVISIONAL APPLICA-
TION.—Subject to all the conditions in this sub-
section and section 119(e) of this title, and as pre-
scribed by the Commissioner, an application for pat-
ent filed under subsection (a) may be treated as a
provisional application for patent.
‘‘(7) NO RIGHT OF PRIORITY OR BENEFIT OF
EARLIEST FILING DATE.—A provisional application
shall not be entitled to the right of priority of any
other application under section 119 or 365(a) of this
title or to the benefit of an earlier filing date in the
United States under section 120, 121, or 365(c) of
this title.
‘‘(8) APPLICABLE PROVISIONS.—The provisions
of this title relating to applications for patent shall
apply to provisional applications for patent, except
as otherwise provided, and except that provisional
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applications for patent shall not be subject to sec-
tions 115, 131, 135, and 157 of this title.’’.
(c) CONFORMING CHANGES.—
(1) Section 156(a)(2) of title 35, United States
Code, is amended by inserting ‘‘under subsection
(e)(1) of this section’’ after ‘‘extended’’.
(2) Section 172 of title 35, United States Code,
is amended—
(A) by striking ‘‘section 119’’ and insert-
ing ‘‘subsections (a) through (d) of section
119’’; and
(B) by inserting at the end the following
new sentence:
‘‘The right of priority provided for by section 119(e) of
this title shall not apply to designs.’’.
(3) Section 173 of title 35, United States Code,
is amended by inserting ‘‘from the date of grant’’
after ‘‘years’’.
(4) Section 365 of title 35, United States Code,
is amended—
(A) in subsection (a), by striking ‘‘section
119’’ and inserting ‘‘subsections (a) through (d)
of section 119’’; and
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(B) in subsection (b), by striking ‘‘the first
paragraph of section 119’’ and inserting ‘‘sec-
tion 119(a)’’.
(5) Section 373 of title 35, United States Code,
is amended by striking ‘‘section 119’’ and inserting
‘‘subsections (a) through (d) of section 119’’.
(6) The table of sections for chapter 11 of title
35, United States Code, is amended—
(A) by striking the item relating to section
111 and inserting the following:
‘‘111. Application.’’;
and
(B) by striking the item relating to section
119 and inserting the following:
‘‘119. Benefit of earlier filing date; right of priority.’’.
SEC. 533. PATENT RIGHTS.
(a) DEFINITION OF INFRINGEMENT.—Section 271 of
title 35, United States Code, is amended—
(1) in subsection (a)—
(A) by inserting ‘‘, offers to sell,’’ after
‘‘uses’’; and
(B) by inserting ‘‘or imports into the Unit-
ed States any patented invention’’ after ‘‘the
United States’’;
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(2) in subsection (c), by striking ‘‘sells’’ and in-
serting ‘‘offers to sell or sells within the United
States or imports into the United States’’;
(3) in subsection (e)—
(A) in paragraph (1), by striking ‘‘or sell’’
and inserting ‘‘offer to sell, or sell within the
United States or import into the United
States’’;
(B) in paragraph (3), by striking ‘‘or sell-
ing’’ and inserting ‘‘offering to sell, or selling
within the United States or importing into the
United States’’;
(C) in paragraph (4)(B), by striking ‘‘or
sale’’ and inserting ‘‘offer to sell, or sale within
the United States or importation into the Unit-
ed States’’; and
(D) in paragraph (4)(C), by striking ‘‘or
sale’’ and inserting ‘‘offer to sell, or sale within
the United States or importation into the Unit-
ed States’’;
(4) in subsection (g)—
(A) by striking ‘‘sells’’ and inserting ‘‘of-
fers to sell, sells,’’;
(B) by striking ‘‘importation, sale,’’ and
inserting ‘‘importation, offer to sell, sale,’’; and
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(C) by striking ‘‘other use or’’ and insert-
ing ‘‘other use, offer to sell, or’’; and
(5) by adding at the end the following:
‘‘(i) As used in this section, an ‘offer for sale’ or an
‘offer to sell’ by a person other than the patentee, or any
designee of the patentee, is that in which the sale will
occur before the expiration of the term of the patent.’’.
(b) CONFORMING AMENDMENTS.—
(1) Paragraph (2) of section 41(c) of title 35,
United States Code, is amended to read as follows:
‘‘(2) A patent, the term of which has been maintained
as a result of the acceptance of a payment of a mainte-
nance fee under this subsection, shall not abridge or affect
the right of any person or that person’s successors in busi-
ness who made, purchased, offered to sell, or used any-
thing protected by the patent within the United States,
or imported anything protected by the patent into the
United States after the 6-month grace period but prior
to the acceptance of a maintenance fee under this sub-
section, to continue the use of, to offer for sale, or to sell
to others to be used, offered for sale, or sold, the specific
thing so made, purchased, offered for sale, used, or im-
ported. The court before which such matter is in question
may provide for the continued manufacture, use, offer for
sale, or sale of the thing made, purchased, offered for sale,
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or used within the United States, or imported into the
United States, as specified, or for the manufacture, use,
offer for sale, or sale in the United States of which sub-
stantial preparation was made after the 6-month grace pe-
riod but before the acceptance of a maintenance fee under
this subsection, and the court may also provide for the
continued practice of any process that is practiced, or for
the practice of which substantial preparation was made,
after the 6-month grace period but before the acceptance
of a maintenance fee under this subsection, to the extent
and under such terms as the court deems equitable for
the protection of investments made or business com-
menced after the 6-month grace period but before the ac-
ceptance of a maintenance fee under this subsection.’’.
(2) The second undesignated paragraph of sec-
tion 252 of title 35, United States Code, is amended
to read as follows:
‘‘A reissued patent shall not abridge or affect the
right of any person or that person’s successors in business
who, prior to the grant of a reissue, made, purchased, of-
fered to sell, or used within the United States, or imported
into the United States, anything patented by the reissued
patent, to continue the use of, to offer to sell, or to sell
to others to be used, offered for sale, or sold, the specific
thing so made, purchased, offered for sale, used, or im-
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ported unless the making, using, offering for sale, or sell-
ing of such thing infringes a valid claim of the reissued
patent which was in the original patent. The court before
which such matter is in question may provide for the con-
tinued manufacture, use, offer for sale, or sale of the thing
made, purchased, offered for sale, used, or imported as
specified, or for the manufacture, use, offer for sale, or
sale in the United States of which substantial preparation
was made before the grant of the reissue, and the court
may also provide for the continued practice of any process
patented by the reissue that is practiced, or for the prac-
tice of which substantial preparation was made, before the
grant of the reissue, to the extent and under such terms
as the court deems equitable for the protection of invest-
ments made or business commenced before the grant of
the reissue.’’.
(3) Section 262 of title 35, United States Code,
is amended—
(A) by striking ‘‘use or sell’’ and inserting
‘‘use, offer to sell, or sell’’; and
(B) by inserting ‘‘within the United States,
or import the patented invention into the
United States,’’ after ‘‘invention’’.
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(4) Section 272 of title 35, United States Code,
is amended by striking ‘‘not sold’’ and inserting ‘‘not
offered for sale or sold’’.
(5) Section 287 of title 35, United States Code,
is amended—
(A) in subsection (a)—
(i) by striking ‘‘making or selling’’
and inserting ‘‘making, offering for sale, or
selling within the United States’’; and
(ii) by inserting ‘‘or importing any
patented article into the United States,’’
after ‘‘under them,’’; and
(B) in subsection (b)—
(i) in paragraph (1)(C), by striking
‘‘use, or sale’’ and inserting ‘‘use, offer for
sale, or sale’’;
(ii) in paragraph (4)(A), by striking
‘‘sold or’’ and inserting ‘‘sold, offered for
sale, or’’ in the matter preceding clause (i);
(iii) in paragraph (4)(A)(ii), by strik-
ing ‘‘use, or sale’’ and inserting ‘‘use, offer
for sale, or sale’’;
(iv) in paragraph (4)(C), by striking
‘‘have been sold’’ and inserting ‘‘have been
offered for sale or sold’’; and
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(v) in paragraph (4)(C), by striking
‘‘United States before’’ and inserting
‘‘United States, or imported by the person
into the United States, before’’.
(6) Section 292(a) of title 35, United States
Code, is amended—
(A) by striking ‘‘used, or sold by him’’ and
inserting ‘‘used, offered for sale, or sold by such
person within the United States, or imported by
the person into the United States’’; and
(B) by striking ‘‘made or sold’’ and insert-
ing ‘‘made, offered for sale, sold, or imported
into the United States’’.
(7) Section 295 of title 35, United States Code,
is amended by striking ‘‘sale, or use’’ and inserting
‘‘sale, offer for sale, or use’’.
(8) Section 307(b) of title 35, United States
Code, is amended by striking ‘‘used anything’’ and
inserting ‘‘used within the United States, or im-
ported into the United States, anything’’.
SEC. 534. EFFECTIVE DATES AND APPLICATION.
(a) IN GENERAL.—Subject to subsection (b), the
amendments made by this subtitle take effect on the date
that is one year after the date on which the WTO Agree-
ment enters into force with respect to the United States.
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(b) PATENT APPLICATIONS.—
(1) IN GENERAL.—Subject to paragraph (2),
the amendments made by section 532 take effect on
the date that is 6 months after the date of the en-
actment of this Act and shall apply to all patent ap-
plications filed in the United States on or after the
effective date.
(2) SECTION
154(a)(1).—Section 154(a)(1) of
title 35, United States Code, as amended by section
532(a)(1) of this Act, shall take effect on the effec-
tive date described in subsection (a).
(3) EARLIEST FILING.—The term of a patent
granted on a application that is filed on or after the
effective date described in subsection (a) and that
contains a specific reference to an earlier application
filed under the provisions of section 120, 121, or
365(c) of title 35, United States Code, shall be
measured from the filing date of the earliest filed
application.
TITLE VI—RELATED PROVISIONS
Subtitle A—Expiring Provisions
SEC. 601. GENERALIZED SYSTEM OF PREFERENCES.
(a) EXTENSION OF DUTY-FREE TREATMENT UNDER
SYSTEM.—Section 505(a) of the Trade Act of 1974 (19
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U.S.C. 2465(a)) is amended by striking ‘‘September 30,
1994’’ and inserting ‘‘July 31, 1995’’.
(b) RETROACTIVE APPLICATION FOR CERTAIN LIQ-
UIDATIONS AND RELIQUIDATIONS.—
(1) IN GENERAL.—Notwithstanding section 514
of the Tariff Act of 1930 or any other provision of
law and subject to paragraph (2), the entry—
(A) of any article to which duty-free treat-
ment under title V of the Trade Act of 1974
would have applied if the entry had been made
on September 30, 1994, and
(B) that was made after September 30,
1994, and before such date of enactment,
shall be liquidated or reliquidated as free of duty,
and the Secretary of the Treasury shall refund any
duty paid with respect to such entry. As used in this
subsection, the term ‘‘entry’’ includes a withdrawal
from warehouse for consumption.
(2) REQUESTS.—Liquidation or reliquidation
may be made under paragraph (1) with respect to
an entry only if a request therefor is filed with the
Customs Service, within 180 days after the date of
the enactment of this Act, that contains sufficient
information to enable the Customs Service—
(A) to locate the entry; or
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(B) to reconstruct the entry if it cannot be
located.
SEC. 602. U.S. INSULAR POSSESSIONS.
(a) EXTENSION OF VERIFICATION AND CERTIFICATE
ISSUANCE PROVISIONS.—Additional U.S. Note 5(h)(i) to
chapter 91 of the HTS is amended by striking ‘‘and before
January 1, 1995,’’ and inserting ‘‘and before January 1,
2007,’’.
(b) EXTENSION OF CERTIFICATE NUMBER PIC–EV–
89.—Notwithstanding any other provision of law, the pro-
duction incentive certificate, number PIC–EV–89, issued
jointly by the Secretary of Commerce and the Secretary
of the Interior, pursuant to paragraph (h)(i)(B) of Addi-
tional U.S. Note 5 to chapter 91 of the HTS (formerly
paragraph (h)(i)(II) of headnote 6 of schedule 7, part 2,
subpart E of the Tariff Schedules of the United States),
shall be deemed to have been reissued on the date of the
enactment of this Act in the amount of the balance re-
maining on such certificate, and shall expire on the date
that is 1 year after such date of enactment.
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Subtitle B—Certain Customs
Provisions
SEC. 611. REIMBURSEMENTS FROM CUSTOMS USER FEE
ACCOUNT.
(a) 
IN
GENERAL.—Subclause 
(II) 
of 
section
13031(f)(3)(A)(i) of the Consolidated Omnibus Budget
Reconciliation Act of 1985 (19 U.S.C. 58c(f)(3)(A)(i)(II))
is amended to read as follows:
‘‘(II) paying premium pay under section
5(b) of the Act of February 13, 1911, but the
amount for which reimbursement may be made
under this subclause may not, for any fiscal
year, exceed the difference between the total
cost of all the premium pay for such year cal-
culated under section 5(b) and the cost of the
night and holiday premium pay that the Cus-
toms Service would have incurred for the same
inspectional work on the day before the effective
date of section 13813 of the Omnibus Budget
Reconciliation Act of 1993,’’.
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply to customs inspectional services
performed on or after January 1, 1994.
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SEC. 612. MERCHANDISE PROCESSING FEES.
(a) IN GENERAL.—Section 13031 of the Consolidated
Omnibus Budget Reconciliation Act of 1985 (19 U.S.C.
58c) is amended—
(1) in subsection (a)(9)—
(A) in subparagraph (A), by striking
‘‘0.17’’ and inserting ‘‘0.21’’,
(B) in subparagraph (B)(i), by striking
‘‘(but not to a rate of more than 0.19 percent
nor less than 0.15 percent) that would’’ and in-
serting ‘‘(but not to a rate of more than 0.21
percent nor less than 0.15 percent) and the
amounts specified in subsection (b)(8)(A)(i)
(but not to more than $485 nor less than $21)
to rates and amounts which would’’, and
(C) in subparagraph (B)(ii), by striking
‘‘section 613A of the Tariff Act of 1930’’ and
inserting ‘‘subsection (f)’’
(2) in subsection (a)(10)—
(A) in subparagraph (C), by striking
‘‘entry or release.’’ and inserting ‘‘entry or re-
lease,’’,
(B) in clause (ii), by striking ‘‘$5’’ and in-
serting ‘‘$6’’, and
(C) in clause (iii), by striking ‘‘$8’’ and in-
serting ‘‘$9’’, and
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(3) in subsection (b)(8)(A)(i), by striking
‘‘$400 or be less than $21’’, and inserting ‘‘$485 or
be less than $25, unless adjusted pursuant to sub-
section (a)(9)(B)’’.
(b) EFFECTIVE DATE.—The amendments made by
this section apply to articles entered, or withdrawn from
warehouse for consumption, on or after January 1, 1995.
Subtitle C—Conforming
Amendments
SEC. 621. CONFORMING AMENDMENTS.
(a) TRADE LAWS.—
(1) Section 1317(a)(1) of the Omnibus Trade
and Competitiveness Act of 1988 (19 U.S.C.
1677k(a)(1)) is amended—
(A) by inserting ‘‘(A)’’ after ‘‘(1)’’;
(B) by striking ‘‘General Agreement on
Tariffs and Trade’’ and inserting ‘‘GATT
1994’’; and
(C) by adding at the end the following:
‘‘(B) The term ‘GATT 1994’ has the meaning
given that term in section 2(1)(B) of the Uruguay
Round Agreements Act.’’.
(2) Section 212(c)(4) of the Caribbean Basin
Economic Recovery Act (19 U.S.C. 2702(c)(4)) is
amended by striking ‘‘General’’ and all that follows
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through ‘‘1979’’ and inserting ‘‘WTO Agreement
and the multilateral trade agreements (as such
terms are defined in paragraphs (9) and (4), respec-
tively, of section 2 of the Uruguay Round Agree-
ments Act)’’.
(3) Section 203(d)(4) of the Andean Trade
Preference Act (19 U.S.C. 3202(d)(4)) is amended
by striking ‘‘General’’ and all that follows through
‘‘1979’’ and inserting ‘‘WTO Agreement and the
multilateral trade agreements (as such terms are de-
fined in paragraphs (9) and (4), respectively, of sec-
tion 2 of the Uruguay Round Agreements Act)’’.
(4) Section 1106 of the Omnibus Trade and
Competitiveness Act of 1988 (19 U.S.C. 2905) is
amended—
(A) in subsection (a), by striking ‘‘the
GATT’’ and inserting ‘‘the GATT 1947, or to
the WTO Agreement,’’;
(B) in subsections (b) and (c), by inserting
after ‘‘the GATT’’ each place it appears ‘‘1947
or the WTO Agreement’’;
(C) by adding at the end the following new
subsection:
‘‘(e) DEFINITIONS.—For purposes of this section:—
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‘‘(1) The term ‘GATT 1947’ has the meaning
given that term in section 2(1)(A) of the Uruguay
Round Agreements Act.
‘‘(2) The term ‘WTO Agreement’ means the
Agreement Establishing the World Trade Organiza-
tion entered into on April 15, 1994 and the multilat-
eral trade agreements (as such term is defined in
section 2(4) of the Uruguay Round Agreements
Act).’’; and
(D) by inserting after ‘‘GENERAL AGREE-
MENT ON TARIFFS AND TRADE’’ in the heading
‘‘FOR THE WTO’’.
(5) Section 1107(a)(3) of the Omnibus Trade
and Competitiveness Act of 1988 (19 U.S.C.
2906(3)) is amended by striking ‘‘the General
Agreement on Tariffs and Trade’’ and inserting ‘‘the
GATT 1947 (as defined in section 2(1)(A) of the
Uruguay Round Agreements Act)’’.
(6) Section 1378(2) of the Omnibus Trade and
Competitiveness Act of 1988 (19 U.S.C. 3107(2)) is
amended by striking ‘‘the General Agreement on
Tariffs and Trade’’ and inserting ‘‘the WTO Agree-
ment and the multilateral trade agreements (as such
terms are defined in paragraphs (8) and (4), respec-
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tively, of section 2 of the Uruguay Round Agree-
ments Act)’’.
(7) Section 1382 of the Omnibus Trade and
Competitiveness Act of 1988 (19 U.S.C. 3111) is
amended by striking ‘‘the General Agreement on
Tariffs and Trade’’ and inserting ‘‘the WTO Agree-
ment and the multilateral trade agreements (as such
terms are defined in paragraphs (9) and (4), respec-
tively, of section 2 of the Uruguay Round Agree-
ments Act)’’.
(8) Section 141(c)(1) of the Trade Act of 1974
(19 U.S.C. 2171(c)(1)) is amended—
(A) in subparagraph (C) by inserting ‘‘all
negotiations on any matter considered under
the auspices of the World Trade Organization,’’
after ‘‘including’’; and
(B) in subparagraph (D) by inserting ‘‘,
including any matter considered under the aus-
pices of the World Trade Organization,’’ after
‘‘functions’’.
(9) Section 301(a)(2)(A) of the Trade Act of
1974 (19 U.S.C. 2411(a)(2)(A)) is amended by
striking ‘‘the Contracting Parties’’ and all that fol-
lows through ‘‘Parties,’’ and inserting ‘‘the Dispute
Settlement Body (as defined in section 121(5) of the
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Uruguay Round Agreements Act) has adopted a re-
port,’’.
(b) EFFECTIVE DATE.—The amendments made by
this section shall take effect on the date on which the
WTO Agreement enters into force with respect to the
United States.
TITLE VII—REVENUE
PROVISIONS
SEC. 700. AMENDMENT OF 1986 CODE AND TABLE OF CON-
TENTS.
(a) AMENDMENT OF 1986 CODE.—Except as other-
wise expressly provided, whenever in this title an amend-
ment or repeal is expressed in terms of an amendment
to, or repeal of, a section or other provision, the reference
shall be considered to be made to a section or other provi-
sion of the Internal Revenue Code of 1986.
(b) TABLE OF CONTENTS.—
TITLE VII—REVENUE PROVISIONS
Sec. 700. Amendment of 1986 Code and table of contents.
Subtitle A—Withholding Tax Provisions
Sec. 701. Withholding on distributions of Indian casino profits to tribal mem-
bers.
Sec. 702. Voluntary withholding on certain Federal payments and on unemploy-
ment compensation.
Subtitle B—Provisions Relating to Estimated Taxes and Payments and
Deposits of Taxes
Sec. 711. Treatment of subpart F and section 936 income of taxpayers using
annualized method for estimated tax.
Sec. 712. Time for payments and deposits of certain taxes.
Sec. 713. Reduction in rate of interest paid on certain corporate overpayments.
Subtitle C—Earned Income Tax Credit
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Sec. 721. Extension of earned income tax credit to military personnel stationed
outside the United States.
Sec. 722. Certain nonresident aliens ineligible for earned income tax credit.
Sec. 723. Income of prisoners disregarded in determining earned income tax
credit.
Subtitle D—Provisions Relating To Retirement Benefits
Sec. 731. Treatment of excess pension assets used for retiree health benefits.
Sec. 732. Rounding rules for cost-of-living adjustments.
Sec. 733. Increase in inclusion of social security benefits paid to nonresidents.
Subtitle E—Other Provisions
Sec. 741. Partnership distributions of marketable securities.
Sec. 742. Taxpayer identification numbers required at birth.
Sec. 743. Extension of Internal Revenue Service user fees.
Sec. 744. Modification of substantial understatement penalty for corporations
participating in tax shelters.
Sec. 745. Modification of authority to set terms and conditions for savings
bonds.
Subtitle F—Pension Plan Funding and Premiums
Sec. 750. Short title.
PART I—PENSION PLAN FUNDING
SUBPART A—AMENDMENTS TO THE INTERNAL REVENUE CODE OF 1986
Sec. 751. Minimum funding requirements.
Sec. 752. Limitation on changes in current liability assumptions.
Sec. 753. Anticipation of bargained benefit increases.
Sec. 754. Modification of quarterly contribution requirement.
Sec. 755. Exceptions to excise tax on nondeductible contributions.
SUBPART B—AMENDMENTS TO THE EMPLOYEE RETIREMENT INCOME
SECURITY ACT OF 1974
Sec. 761. Minimum funding requirements.
Sec. 762. Limitation on changes in current liability assumptions.
Sec. 763. Anticipation of bargained benefit increases.
Sec. 764. Modification of quarterly contribution requirement.
SUBPART C—OTHER FUNDING PROVISIONS
Sec. 766. Prohibition on benefit increases where plan sponsor is in bankruptcy.
Sec. 767. Single sum distributions.
Sec. 768. Adjustments to lien for missed minimum funding contributions.
Sec. 769. Special funding rules for certain plans.
PART II—AMENDMENTS RELATED TO TITLE IV OF THE EMPLOYEE
RETIREMENT INCOME SECURITY ACT OF 1974
Sec. 771. Reportable events.
Sec. 772. Certain information required to be furnished to PBGC.
Sec. 773. Enforcement of minimum funding requirements.
Sec. 774. Computation of additional PBGC premium.
Sec. 775. Disclosure to participants.
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Sec. 776. Missing participants.
Sec. 777. Modification of maximum guarantee for disability benefits.
Sec. 778. Procedures to facilitate distribution of termination benefits.
PART III—EFFECTIVE DATES
Sec. 781. Effective dates.
Subtitle A—Withholding Tax
Provisions
SEC. 701. WITHHOLDING ON DISTRIBUTIONS OF INDIAN CA-
SINO PROFITS TO TRIBAL MEMBERS.
(a) IN GENERAL.—Section 3402 (relating to income
tax collected at source) is amended by inserting after sub-
section (q) the following new subsection:
‘‘(r) EXTENSION
OF WITHHOLDING
TO CERTAIN
TAXABLE PAYMENTS OF INDIAN CASINO PROFITS.—
‘‘(1) IN GENERAL.—Every person, including an
Indian tribe, making a payment to a member of an
Indian tribe from the net revenues of any class II
or class III gaming activity conducted or licensed by
such tribe shall deduct and withhold from such pay-
ment a tax in an amount equal to such payment’s
proportionate share of the annualized tax.
‘‘(2) EXCEPTION.—The tax imposed by para-
graph (1) shall not apply to any payment to the ex-
tent that the payment, when annualized, does not
exceed an amount equal to the sum of—
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‘‘(A) the basic standard deduction (as de-
fined in section 63(c)) for an individual to
whom section 63(c)(2)(C) applies, and
‘‘(B) the exemption amount (as defined in
section 151(d)).
‘‘(3) ANNUALIZED TAX.—For purposes of para-
graph (1), the term ‘annualized tax’ means, with re-
spect to any payment, the amount of tax which
would be imposed by section 1(c) (determined with-
out regard to any rate of tax in excess of 31 per-
cent) on an amount of taxable income equal to the
excess of—
‘‘(A) the annualized amount of such pay-
ment, over
‘‘(B) the amount determined under para-
graph (2).
‘‘(4) CLASSES OF GAMING ACTIVITIES, ETC.—
For purposes of this subsection, terms used in para-
graph (1) which are defined in section 4 of the In-
dian Gaming Regulatory Act (25 U.S.C. 2701 et
seq.), as in effect on the date of the enactment of
this subsection, shall have the respective meanings
given such terms by such section.
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‘‘(5) 
ANNUALIZATION.—Payments 
shall 
be
placed on an annualized basis under regulations pre-
scribed by the Secretary.
‘‘(6) 
ALTERNATE
WITHHOLDING
PROCE-
DURES.—At the election of an Indian tribe, the tax
imposed by this subsection on any payment made by
such tribe shall be determined in accordance with
such tables or computational procedures as may be
specified in regulations prescribed by the Secretary
(in lieu of in accordance with paragraphs (2) and
(3)).
‘‘(7) COORDINATION WITH OTHER SECTIONS.—
For purposes of this chapter and so much of subtitle
F as relates to this chapter, payments to any person
which are subject to withholding under this sub-
section shall be treated as if they were wages paid
by an employer to an employee.’’
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply to payments made after December
31, 1994.
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SEC. 702. VOLUNTARY WITHHOLDING ON CERTAIN FED-
ERAL PAYMENTS AND ON UNEMPLOYMENT
COMPENSATION.
(a) IN GENERAL.—Subsection (p) of section 3402
(relating to voluntary withholding agreements) is amended
to read as follows:
‘‘(p) VOLUNTARY WITHHOLDING AGREEMENTS.—
‘‘(1) CERTAIN FEDERAL PAYMENTS.—
‘‘(A) IN GENERAL.—If, at the time a speci-
fied Federal payment is made to any person, a
request by such person is in effect that such
payment be subject to withholding under this
chapter, then for purposes of this chapter and
so much of subtitle F as relates to this chapter,
such payment shall be treated as if it were a
payment of wages by an employer to an em-
ployee.
‘‘(B) AMOUNT
WITHHELD.—The amount
to be deducted and withheld under this chapter
from any payment to which any request under
subparagraph (A) applies shall be an amount
equal to the percentage of such payment speci-
fied in such request. Such a request shall apply
to any payment only if the percentage specified
is 7, 15, 28, or 31 percent or such other per-
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centage as is permitted under regulations pre-
scribed by the Secretary.
‘‘(C) SPECIFIED
FEDERAL
PAYMENTS.—
For purposes of this paragraph, the term ‘spec-
ified Federal payment’ means—
‘‘(i) any payment of a social security
benefit (as defined in section 86(d)),
‘‘(ii) any payment referred to in the
second sentence of section 451(d) which is
treated as insurance proceeds,
‘‘(iii) any amount which is includible
in gross income under section 77(a), and
‘‘(iv) any other payment made pursu-
ant to Federal law which is specified by
the Secretary for purposes of this para-
graph.
‘‘(D) REQUESTS
FOR
WITHHOLDING.—
Rules similar to the rules that apply to annu-
ities under subsection (o)(4) shall apply to re-
quests under this paragraph and paragraph (2).
‘‘(2) VOLUNTARY
WITHHOLDING
ON
UNEM-
PLOYMENT BENEFITS.—If, at the time a payment of
unemployment compensation (as defined in section
85(b)) is made to any person, a request by such per-
son is in effect that such payment be subject to
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ter), remuneration or other payments with respect to
which such agreement is made shall be treated as if
they were wages paid by an employer to an employee
to the extent that such remuneration is paid or other
payments are made during the period for which the
agreement is in effect.’’
(b) STATE LAW MUST PERMIT VOLUNTARY WITH-
HOLDING OF FEDERAL INCOME TAX FROM UNEMPLOY-
MENT COMPENSATION.—Section 3304(a) is amended by
striking ‘‘and’’ at the end of paragraph (17), by redesig-
nating paragraph (18) as paragraph (19), and by insert-
ing after paragraph (17) the following new paragraph:
‘‘(18) Federal individual income tax from un-
employment compensation is to be deducted and
withheld if an individual receiving such compensa-
tion voluntarily requests such deduction and with-
holding; and’’.
(c) WITHHOLDING FROM UNEMPLOYMENT COM-
PENSATION OF FEDERAL, STATE, AND LOCAL INCOME
TAXES PERMITTED.—
(1) Subparagraph (C) of section 3304(a)(4) is
amended by inserting after ‘‘health insurance’’ the
following: ‘‘, or the withholding of Federal, State, or
local individual income tax,’’.
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(2) Subsection (f) of section 3306 is amended
by redesignating paragraphs (3) and (4) as para-
graphs (4) and (5), respectively, and by inserting
after paragraph (2) the following new paragraph:
‘‘(3) nothing in this subsection shall be con-
strued to prohibit deducting any amount from unem-
ployment compensation otherwise payable to an indi-
vidual and using the amount so deducted to pay for
health insurance, or the withholding of Federal,
State, or local individual income tax, if the individ-
ual elected to have such deduction made and such
deduction was made under a program approved by
the Secretary of Labor;’’.
(3) Paragraph (5) of section 303(a) of the So-
cial Security Act is amended by inserting after
‘‘health insurance’’ the following: ‘‘, or the withhold-
ing of Federal, State, or local individual income
tax,’’.
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply to payments made after December
31, 1996.
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Subtitle B—Provisions Relating to
Estimated Taxes and Payments
and Deposits of Taxes
SEC. 711. TREATMENT OF SUBPART F AND SECTION 936 IN-
COME OF TAXPAYERS USING ANNUALIZED
METHOD FOR ESTIMATED TAX.
(a) CORPORATIONS.—Section 6655(e) (relating to
lower required installment where annualized income in-
stallment is less) is amended by adding at the end the
following new paragraph:
‘‘(4) TREATMENT OF SUBPART F AND SECTION
936 INCOME.—
‘‘(A) IN GENERAL.—Any amounts required
to be included in gross income under section
936(h) or 951(a) (and credits properly allocable
thereto) shall be taken into account in comput-
ing any annualized income installment under
paragraph (2) in a manner similar to the man-
ner under which partnership income inclusions
(and credits properly allocable thereto) are
taken into account.
‘‘(B) PRIOR YEAR SAFE HARBOR.—
‘‘(i) IN
GENERAL.—If a taxpayer
elects to have this subparagraph apply for
any taxable year—
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‘‘(I) subparagraph (A) shall not
apply, and
‘‘(II) for purposes of computing
any annualized income installment for
such taxable year, the taxpayer shall
be treated as having received ratably
during such taxable year items of in-
come and credit described in subpara-
graph (A) in an amount equal to 115
percent of the amount of such items
shown on the return of the taxpayer
for the preceding taxable year (the
second preceding taxable year in the
case of the first and second required
installments for such taxable year).
‘‘(ii) 
SPECIAL
RULE
FOR
NONCONTROLLING SHAREHOLDER.—
‘‘(I) IN GENERAL.—If a taxpayer
making the election under clause (i) is
a noncontrolling shareholder of a cor-
poration, clause (i)(II) shall be ap-
plied with respect to items of such
corporation by substituting ‘100 per-
cent’ for ‘115 percent’.
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‘‘(II) NONCONTROLLING SHARE-
HOLDER.—For purposes of subclause
(I), the term ‘noncontrolling share-
holder’ means, with respect to any
corporation, a shareholder which (as
of the beginning of the taxable year
for which the installment is being
made) does not own (within the mean-
ing of section 958(a)), and is not
treated as owning (within the meaning
of section 958(b)), more than 50 per-
cent (by vote or value) of the stock in
the corporation.’’
(b) INDIVIDUALS.—Section 6654(d)(2) (relating to
lower required installment where annualized income in-
stallment is less) is amended by adding at the end the
following new subparagraph:
‘‘(D) TREATMENT
OF
SUBPART
F
AND
SECTION 936 INCOME.—
‘‘(i) IN GENERAL.—Any amounts re-
quired to be included in gross income
under section 936(h) or 951(a) (and cred-
its properly allocable thereto) shall be
taken into account in computing any
annualized income installment under sub-
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paragraph (B) in a manner similar to the
manner under which partnership income
inclusions (and credits properly allocable
thereto) are taken into account.
‘‘(ii) PRIOR YEAR SAFE HARBOR.—If
a taxpayer elects to have this clause apply
to any taxable year—
‘‘(I) clause (i) shall not apply,
and
‘‘(II) for purposes of computing
any annualized income installment for
such taxable year, the taxpayer shall
be treated as having received ratably
during such taxable year items of in-
come and credit described in clause (i)
in an amount equal to the amount of
such items shown on the return of the
taxpayer for the preceding taxable
year (the second preceding taxable
year in the case of the first and sec-
ond required installments for such
taxable year).’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply for purposes of determining under-