In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
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Question: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Amtrak Investment Act of 1994''.

SEC. 2. FINDINGS.

    The Congress finds that--
            (1) intercity rail passenger service is an essential 
        component of the integrated national transportation system; 
        however, to achieve its full potential the National Railroad 
        Passenger Corporation (Amtrak) must provide a quality 
        transportation product in the form of clean, comfortable, and 
        on-time service;
            (2) Amtrak's management and employees are dedicated to 
        providing the high quality service that Amtrak's customers 
        deserve; however, additional capital investment is needed to 
        acquire the modern equipment and efficient facilities that are 
        essential to satisfy the demand for superior intercity rail 
        passenger service;
            (3) significant levels of Federal capital investment will 
        enable Amtrak to provide the world class service American rail 
        passengers deserve, and will reduce operating costs in the long 
        term;
            (4) Amtrak's management should be held accountable to 
        ensure that all capital investment by the Federal Government is 
        effectively used to improve the quality of service and the 
        long-term financial health of Amtrak;
            (5) the Secretary of Transportation, as an ex officio 
        member of Amtrak's board of directors, should use this position 
        to evaluate Amtrak's costs and revenue elements to ensure that 
        Amtrak provides excellent service to its customers and that 
        Amtrak uses its Federal investment wisely and efficiently;
            (6) States can play a significant role in providing cost-
        efficient intercity rail passenger transportation and in 
        addressing local transportation needs and air quality control; 
        and
            (7) the freight railroads represent a critical part of the 
        Nation's transportation infrastructure, which should help to 
        provide expeditious and cost-effective delivery of passenger 
        trains.

SEC. 3. WORLD CLASS SERVICE.

    Section 24101(c) of title 49, United States Code, is amended--
            (1) by striking ``and'' at the end of paragraph (10);
            (2) by striking the period at the end of paragraph (11) and 
        inserting in lieu thereof ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(12) manage capital investment in such a way as to 
        provide its customers with world class service.''.

SEC. 4. RETURN ON INVESTMENT.

    Section 24315(b)(1) of title 49, United States Code, is amended--
            (1) by striking ``and'' at the end of subparagraph (A);
            (2) by striking the period at the end of subparagraph (B) 
        and inserting in lieu thereof ``; and''; and
            (3) by adding at the end the following:
            ``(C) shall include projections of the anticipated benefits 
        of the projects proposed for funding under this part and a 
        report on the benefits actually realized from all projects 
        previously funded under this part, or legislation on which this 
        part is based, beginning with funds provided in fiscal year 
        1994.
Such report shall include an identification of improvements in the 
quality of service offered by Amtrak, facility improvements that 
demonstrate a productivity gain, equipment improvements that lower 
operating costs, environmental benefits (including air quality and land 
use), enhancements to local transportation needs, enhancements to 
mobility of physically and economically disadvantaged persons, an 
improvement to the revenue-to-cost ratio, reduced dependence on Federal 
operating support, and reductions in the need for alternative 
transportation investments. To the extent practicable, the benefits 
addressed in each report shall also be expressed as return on invested 
capital.''.

SEC. 5. STATE REQUESTED RAIL PASSENGER TRANSPORTATION.

    (a) State/Federal Formula.--(1) Section 24704 of title 49, United 
States Code, is amended--
            (A) in subsection (a)(1)(C)--
                    (i) by striking ``short term'' both places it 
                appears and inserting in lieu thereof ``long-term''; 
                and
                    (ii) by striking ``65 percent'' and inserting in 
                lieu thereof ``55 percent'';
            (B) in subsection (b)--
                    (i) by adding at the end of paragraph (2) the 
                following new sentence: ``Any such renewal shall 
                require the State, agency, or person to provide a 
                statement that such State, agency, or person agrees to 
                pay in each year of operation, beginning with the first 
                year of operation of service under such renewed 
                agreement, at least 55 percent of the long-term 
                avoidable losses of operating such service and at least 
                50 percent of the associated capital costs.''; and
                    (ii) by inserting at the end the following new 
                paragraph:
    ``(3) Amtrak is authorized to contribute in each year of operation 
of any service instituted or retained pursuant to this section no more 
than--
            ``(A) 55 percent in the first year of such operation; and
            ``(B) 45 percent in each year of operation thereafter,
of the long-term avoidable losses of operating such service and no more 
than 50 percent of the associated capital costs.''.
    (2) The amendments made by paragraph (1) shall only apply with 
respect to fiscal year 1996 and subsequent fiscal years.
    (b) Review of Program.--Within 2 years after the date of enactment 
of this Act, the Secretary of Transportation shall conduct a 
comprehensive review of the program of State-assisted rail passenger 
services operated by Amtrak under section 24704 of title 49, United 
States Code, and shall submit a report to the Congress detailing the 
Secretary's findings and conclusions, including any recommendations the 
Secretary may have for revising such section 24704. The Secretary's 
report shall address, among other things, whether and at what point 
services originated under section 24704 should become a part of the 
basic system of intercity rail passenger transportation and shall 
identify any other avenues for initiating and implementing new rail 
passenger transportation.

SEC. 6. NORTHEAST CORRIDOR IMPROVEMENT PROGRAM.

    (a) Capital Improvements.--(1) Section 24902(h) of title 49, United 
States Code, is amended--
            (A) by inserting ``(1)'' before ``If practicable''; and
            (B) by adding at the end the following new paragraph:
    ``(2) Amtrak shall make capital improvements for the Northeast 
Corridor improvement program under this chapter as necessary to operate 
reliable, high-speed rail passenger service, to enhance capacity for 
intercity and commuter passenger transportation, and as otherwise may 
be necessary to ensure continued reliable high-speed service. Amtrak 
shall also acquire train equipment to be used on the Northeast 
Corridor, mitigate environmental impacts related to the Northeast 
Corridor improvement program, and provide adequate parking at and 
improve Northeast Corridor rail stations.''.
    (2) Section 24909 of title 49, United States Code, is amended--
            (A) by striking subsection (e); and
            (B) by redesignating subsections (f) and (g) as subsections 
        (e) and (f), respectively.
    (b) Boston-New Haven Electrification Project.--(1) Section 24902(f) 
of title 49, United States Code, is amended--
            (A) by inserting ``(1)'' before ``Improvements under''; and
            (B) by adding at the end the following new paragraph:
    ``(2) Amtrak shall design and construct the electrification system 
between Boston, Massachusetts, and New Haven, Connecticut, to 
accommodate the installation of a third mainline track between 
Davisville and Central Falls, Rhode Island, to be used for double-stack 
freight service to and from the Port of Davisville. Wherever 
practicable, Amtrak shall use portal structures and realign existing 
tracks on undergrade and overgrade bridges to minimize the width of the 
right-of-way required to add the third track. Amtrak shall take such 
other steps as may be required to coordinate and facilitate design and 
construction work.''.
    (2) Amtrak shall, not later than 6 months after the date of 
enactment of this Act, transmit to the Congress a report detailing its 
electrification design between Davisville and Central Falls, Rhode 
Island, and describing efforts to comply with section 24902(f)(2) of 
title 49, United States Code.

SEC. 7. AUTHORIZATION OF APPROPRIATIONS.

    Section 24104 of title 49, United States Code, is amended--
            (1) in subsection (a)(1), by inserting ``and not more than 
        $332,000,000 for fiscal year 1995 and $335,000,000 for fiscal 
        year 1996 may be appropriated to the Secretary,'' after 
        ``September 30, 1994,'';
            (2) in subsection (a)(2), by adding at the end the 
        following new subparagraphs:
            ``(C) $250,000,000 for fiscal year 1995.
            ``(D) $250,000,000 for fiscal year 1996.'';
            (3) in subsection (b)(1), by inserting ``Not more than 
        $373,000,000 for fiscal year 1995 and $373,000,000 for fiscal 
        year 1996 may be appropriated to the Secretary for the benefit 
        of Amtrak for operating expenses.'' after ``for operating 
        expenses.'';
            (4) in subsection (b)(2)(A), by adding at the end the 
        following new clauses:
            ``(iii) $17,000,000 for fiscal year 1995.
            ``(iv) $17,000,000 for fiscal year 1996.'';
            (5) in subsection (c)(1)--
                    (A) by striking ``and'' after ``September 30, 
                1993,''; and
                    (B) by inserting ``$156,000,000 for fiscal year 
                1995, and $165,000,000 for fiscal year 1996,'' after 
                ``September 30, 1994,''; and
            (6) by amending subsection (d) to read as follows:
    ``(d) Administration of Appropriations.--Notwithstanding section 
6304 of title 31, United States Code, funds appropriated pursuant to 
this section shall be provided to Amtrak upon appropriation when 
requested by Amtrak.''.

SEC. 8. CAPITAL AND EQUIPMENT ACQUISITION ACCOUNT.

    (a) Amendment.--Chapter 243 of title 49, United States Code, is 
amended by adding at the end the following new section:

``SEC. 24316. CAPITAL AND EQUIPMENT ACQUISITION ACCOUNT.

    ``(a) Establishment.--Amtrak shall establish a Capital and 
Equipment Acquisition Account. Amounts in this account shall be used by 
Amtrak to--
            ``(1) acquire passenger equipment and locomotives;
            ``(2) encourage State and local investment in facilities 
        and equipment used to provide intercity rail passenger 
        transportation; and
            ``(3) address other critical capital priorities.
    ``(b) Deposits.--Amtrak may deposit into the Capital and Equipment 
Acquisition Account--
            ``(1) payments received for the use of its equipment or 
        facilities;
            ``(2) claims recovered by Amtrak; and
            ``(3) amounts from any other source to the extent 
        authorized by Federal law.''.
    (b) Table of Sections Amendment.--The table of sections for chapter 
243 of title 49, United States Code, is amended by adding at the end 
the following new item:

``24316. Capital and equipment acquisition account.''.

SEC. 9. ON-TIME PERFORMANCE.

    (a) Comparison.--The Secretary of Transportation shall conduct a 
direct comparison of the on-time performance of Amtrak compared to 
other modes of commercial passenger transportation, using consistent 
methodologies.
    (b) Report to Congress.--The Secretary of Transportation shall, not 
later than 1 year after the date of enactment of this Act, transmit to 
the Congress a report on the results of the comparison required by 
subsection (a), along with an explanation of the differences found in 
on-time performance between modes of transportation, including 
consideration of the age and condition of equipment and any other 
differences among the modes that affect the ability to achieve on-time 
service.

SEC. 10. COOPERATION WITH STUDY.

    Amtrak shall cooperate with the efforts of the Virginia State 
Department of Transportation in designing and carrying out a study on 
the feasibility of reestablishing rail service between Washington, 
D.C., and Bristol, Virginia.

SEC. 11. BURBANK-GLENDALE-PASADENA, CALIFORNIA, STATION FACILITIES.

    Amtrak shall develop a plan for new station facilities at the 
Burbank-Glendale-Pasadena Airport to accommodate the intercity rail 
passenger requirements of Amtrak, along with the needs of the commuter 
rail services serving the Burbank-Glendale-Pasadena metropolitan area. 
In developing the plan, Amtrak shall consider use of a facility at the 
airport as a primary facility for handling intercity and commuter 
passengers, shall evaluate sources of State, local, and private funding 
for the new station facilities, and shall propose the allocation of 
space and costs in the new facilities among all transportation services 
using the facilities. The plan shall be predicated upon completing the 
project with State, local, and private funding, and without Federal 
funds appropriated for Amtrak. Amtrak shall submit a report to the 
Committee on Energy and Commerce of the House of Representatives and 
the Committee on Commerce, Science, and Transportation of the Senate 
containing such plan no later than April 1, 1995.

SEC. 12. CITY OF ONTARIO, CALIFORNIA, STATION FACILITIES.

    Amtrak shall develop a plan for new or redeveloped station 
facilities in the City of Ontario, California, to accommodate the 
intercity rail passenger requirements of Amtrak, along with the needs 
of the commuter rail services servicing the City of Ontario. In 
developing the plan, Amtrak shall consider use of a facility at the 
Ontario International Airport as the primary facility for handling 
intercity passengers, shall evaluate sources of State, local, and 
private funding for the new or redeveloped station facilities, and 
shall propose the allocation of space and costs in the new facilities 
among all transportation services using the facilities. The plan shall 
be predicated upon completing the project with State, local, and 
private funding, and without Federal funds appropriated for Amtrak. 
Amtrak shall submit a report to the Committee on Energy and Commerce of 
the House of Representatives and the Committee on Commerce, Science, 
and Transportation of the Senate containing such plan no later than 
April 1, 1995.

SEC. 13. LAND CONVEYANCE.

    (a) Validation and Confirmation.--The conveyance described in 
subsection (b)(1) involving certain real property in Tulare County, 
California, forming a part of the right-of-way granted by the United 
States to the Southern Pacific Railroad under the Act entitled ``An Act 
granting Lands to aid in the Construction of a Railroad and Telegraph 
Line from the States of Missouri and Arkansas to the Pacific Coast'', 
approved July 27, 1866 (14 Stat. 292), is legalized, validated, and 
confirmed in the Redevelopment Agency of the city of Tulare, the 
grantee in such conveyance, and their successors in interest, with 
respect to all interests of the United States in the rights to the real 
property described in subsection (b)(2).
    (b) Conveyance and Real Property Described.--
            (1) Conveyance.--The conveyance referred to in subsection 
        (a) was made by a Judgment in Condemnation and Final Order of 
        Condemnation of the Superior Court in and for the county of 
        Tulare, State of California in Action No. 150298 entitled 
        ``Redevelopment Agency of the City of Tulare v. Southern 
        Pacific Transportation Company'' filed and entered March 10, 
        1992, by the Southern Pacific Transportation Company to the 
        Redevelopment Agency of the city of Tulare.
            (2) Real property described.--The real property referred to 
        in subsection (a) is a parcel of land in the northwest quarter 
        of section 11, township 20 south, range 24 east, Mount Diablo 
        Base and meridian in the city of Tulare, county of Tulare, 
        State of California, more particularly described as follows:
            Commencing at the intersection of the centerlines of Tulare 
        Avenue and ``J'' Street;
            Thence north 10 degrees 20 minutes 00 seconds west 208.54 
        feet along the centerline of ``J'' Street;
            Thence south 79 degrees 39 minutes 36 seconds west 40.00 
        feet to the westerly right-of-way line of ``J'' Street and the 
        True Point of Beginning;
            Thence south 10 degrees 20 minutes 00 seconds east 148.54 
        feet along said westerly right-of-way line to the beginning of 
        a tangent curve concave to the northwest having a radius of 
        20.00 feet, a radial line through which bears north 79 degrees 
        40 minutes 00 seconds east;
            Thence south, southwesterly and westerly along said curve 
        and right-of-way line through a central angle of 89 degrees 59 
        minutes 36 seconds to the northerly right-of-way line of Tulare 
        Avenue;
            Thence south 79 degrees 39 minutes 36 seconds west 159.89 
        feet along last said right-of-way line;
            Thence leaving said right-of-way line north 10 degrees 20 
        minutes 00 seconds west 168.54 feet parallel with the 
        centerline of ``J'' Street;
            Thence north 79 degrees 39 minutes 36 seconds east 179.88 
        feet to the Point of Beginning.
            Containing 0.69 acres.

SEC. 14. RESIDENCE OF EMPLOYEES.

    The amendments made by section 7 of the Amtrak Reauthorization and 
Improvement Act of 1990 shall apply to all periods before and after the 
date of their enactment.

Answer: Amtrak Investment Act of 1994 - Amends Federal transportation law to make it a goal of the National Railroad Passenger Corporation (AMTRAK) to manage its capital investment in such a way as to provide its customers with world class service. 
(Sec. 4) Requires AMTRAK to include in its annual report on its operations to the President and the Congress projections of anticipated and realized benefits of proposed and previously funded projects. 
(Sec. 5) Requires applications by a State, agency, or person requesting AMTRAK to provide rail passenger transportation, or to keep a train, route, or service that AMTRAK intends to discontinue, to commit it to provide at least 65 percent of the long-term loss (currently, short-term loss) of providing such transportation in the first year, and at least 55 percent of such loss in each succeeding year.  Requires a State, agency, or person, with respect to the renewal of such service, to state that it agrees to pay at least 55 percent of the long-term avoidable losses of operating such service and at least 50 percent of the associated capital costs.  Authorizes AMTRAK for each year of operation to contribute no more than 55 percent of the long-term avoidable losses in the first year of operation, and no more than 45 percent in each succeeding year. 
Directs the Secretary of Transportation (Secretary) to review AMTRAK's State-assisted rail passenger services program and report the results, including recommendations for revising such program, to the Congress. 
(Sec. 6)  Directs AMTRAK to make capital improvements for the Northeast Corridor improvement project necessary for reliable, high- speed rail passenger service and enhancement of capacity for intercity and commuter passenger service. 
Requires AMTRAK to construct an electrification system between Boston, Massachusetts, and New Haven, Connecticut, to accommodate the installation of a third mainline track between Davisville and Central Falls, Rhode Island, to be used for double-stack freight service to and from the Port of Davisville.  Requires AMTRAK to report to the Congress on its electrification design between Davisville and Central Falls, Rhode Island. 
(Sec. 7)  Authorizes appropriations for:  (1) capital acquisition and corridor development; (2) AMTRAK operating expenses; (3) AMTRAK operating losses; and (4) certain mandatory payments. 
(Sec. 8) Directs AMTRAK to establish a Capital and Equipment Acquisition Account. 
(Sec. 9) Directs the Secretary to report to the Congress on the on-time performance of AMTRAK as compared to other modes of commercial transportation. 
(Sec. 10) Requires AMTRAK to cooperate with the Virginia State Department of Transportation on a study of the feasibility of reestablishing rail service between Washington, D.C., and Bristol, Virginia. 
(Sec. 11) Requires AMTRAK to develop plans for new station facilities at the Burbank-Glendale-Pasadena Airport and in Ontario, California. 
(Sec. 13) Confirms the conveyance of U.S. interests in certain real property to Tulare County, California.


Question: SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE.

    (a) Short Title.--This Act may be cited as the ``Long-Term 
Investment Incentive Act of 1997''.
    (b) Amendment of 1986 Code.--Except as otherwise expressly 
provided, whenever in this Act an amendment 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 
provision of the Internal Revenue Code of 1986.

SEC. 2. REDUCTION OF TAX ON LONG-TERM CAPITAL GAINS ON ASSETS HELD MORE 
              THAN 2 YEARS.

    (a) In General.--Part I of subchapter P of chapter 1 (relating to 
treatment of capital gains) is amended by redesignating section 1202 as 
section 1203 and by inserting after section 1201 the following new 
section:

``SEC. 1202. CAPITAL GAINS DEDUCTION FOR ASSETS HELD BY NONCORPORATE 
              TAXPAYERS MORE THAN 2 YEARS.

    ``(a) General Rule.--If a taxpayer other than a corporation has a 
net capital gain for any taxable year, there shall be allowed as a 
deduction an amount equal to the sum of the applicable percentages of 
the classes of net capital gain described in the table under subsection 
(b).
    ``(b) Applicable Percentage.--For purposes of this subsection, the 
applicable percentage shall be the percentage determined in accordance 
with the following table:

          
                                                         The applicable
          ``In the case of:
                                                         percentage is:
                  2-year gain........................        7.145     
                  3-year gain........................        14.29     
                  4-year gain........................        21.45     
                  5-year gain........................        28.57     
                  6-year gain........................        35.71     
                  7-year gain........................        42.86     
                  8-year gain........................        50.00.    
    ``(c) Gain to Which Deduction Applies.--For purposes of this 
section--
            ``(1) 2-year gain.--The term `2-year gain' means the lesser 
        of--
                    ``(A) the net capital gain for the taxable year, or
                    ``(B) the amount of long-term capital gain which 
                would be computed for the taxable year if only gain 
                from the sale or exchange of property held by the 
                taxpayer for more than 2 years but not more than 3 
                years were taken into account.
            ``(2) 3-year gain, etc.--The terms `3-, 4-,
        5-, 6-, or 7-year gain' mean the amounts determined under 
        paragraph (1)--
                    ``(A) by reducing the amount of the net capital 
                gain under subparagraph (A) thereof by an amount equal 
                to the long-term capital gain from the sale or exchange 
                of property with a holding period less than the minimum 
                holding period for any such category, and
                    ``(B) by substituting 3, 4, 5, 6, or 7 years for 2 
                years and 4, 5, 6, 7, or 8 years for 3 years, 
                respectively, in subparagraph (B) thereof.
            ``(3) 8-year gain.--The term `8-year gain' means the lesser 
        of--
                    ``(A) the net capital gain for the taxable year, 
                reduced by in the same manner as under paragraph 
                (2)(A), or
                    ``(B) the amount of the long-term capital gain 
                which would be computed for the taxable year if only 
                gain from the sale or exchange of property held by the 
                taxpayer for more than 8 years were taken into account.
    ``(d) Estates and Trusts.--In the case of an estate or trust, the 
deduction under subsection (a) shall be computed by excluding the 
portion (if any) of the gains for the taxable year from sales or 
exchanges of capital assets which, under sections 652 and 662 (relating 
to inclusions of amounts in gross income of beneficiaries of trusts), 
is includible by the income beneficiaries as gain derived from the sale 
or exchange of capital assets.
    ``(e) Coordination With Treatment of Capital Gain Under Limitation 
on Investment Interest.--For purposes of this section, the net capital 
gain for any taxable year shall be reduced (but not below zero) by the 
amount which the taxpayer takes into account as investment income under 
section 163(d)(4)(B)(iii).
    ``(f) Treatment of Collectibles.--
            ``(1) In general.--Solely for purposes of this section, any 
        gain or loss from the sale or exchange of a collectible shall 
be treated as a short-term capital gain or loss (as the case may be), 
without regard to the period such asset was held. The preceding 
sentence shall apply only to the extent the gain or loss is taken into 
account in computing taxable income.
            ``(2) Treatment of certain sales of interest in 
        partnership, etc.--For purposes of paragraph (1), any gain from 
        the sale or exchange of an interest in a partnership, S 
        corporation, or trust which is attributable to unrealized 
        appreciation in the value of collectibles held by such entity 
        shall be treated as gain from the sale or exchange of a 
        collectible. Rules similar to the rules of section 751(f) shall 
        apply for purposes of the preceding sentence.
            ``(3) Collectible.--For purposes of this subsection, the 
        term `collectible' means any capital asset which is a 
        collectible (as defined in section 408(m) without regard to 
        paragraph (3) thereof).
    ``(g) Transitional Rule.--
            ``(1) In general.--Gain may be taken into account under 
        subsection (c) only if such gain is properly taken into account 
        on or after May 7, 1997.
            ``(2) Special rules for pass-thru entities.--
                    ``(A) In general.--In applying paragraph (1) with 
                respect to any pass-thru entity, the determination of 
                when gains and losses are properly taken into account 
                shall be made at the entity level.
                    ``(B) Pass-thru entity defined.--For purposes of 
                subparagraph (A), the term `pass-thru entity' means--
                            ``(i) a regulated investment company,
                            ``(ii) a real estate investment trust,
                            ``(iii) an S corporation,
                            ``(iv) a partnership,
                            ``(v) an estate or trust, and
                            ``(vi) a common trust fund.''
    (b) Deduction Allowable in Computing Adjusted Gross Income.--
Subsection (a) of section 62 is amended by inserting after paragraph 
(16) the following new paragraph:
            ``(17) Long-term capital gains.--The deduction allowed by 
        section 1202.''
    (c) Maximum Capital Gains Rate.--Section 1(h) is amended by adding 
at the end the following new sentence: ``For purposes of this 
subsection, taxable income shall be computed without regard to the 
deduction allowed under section 1202.''
    (d) Treatment of Certain Pass-Thru Entities.--
            (1) Capital gain dividends of regulated investment 
        companies.--
                    (A) Subparagraph (B) of section 852(b)(3) is 
                amended to read as follows:
                    ``(B) Treatment of capital gain dividends by 
                shareholders.--A capital gain dividend shall be treated 
                by the shareholders as gain from the sale or exchange 
                of a capital asset held for more than 1 year but not 
                more than 2 years; except that the portion of any such 
                dividend designated by the company as allocable 2-, 3-, 
                4-, 5-, 6-, 7-, or 8-year gain of the company shall be 
                treated as gain from the sale or exchange of a capital 
                asset held for the amount of years in such class for 
                purposes of section 1202. Rules similar to the rules of 
                subparagraph (C) shall apply to any designation under 
                the preceding sentence.''
                    (B) Clause (i) of section 852(b)(3)(D) is amended 
                by adding at the end the following new sentence: 
                ``Rules similar to the rules of subparagraph (B) shall 
                apply in determining character of the amount to be so 
                included by any such shareholder.''
            (2) Capital gain dividends of real estate investment 
        trusts.--Subparagraph (B) of section 857(b)(3) is amended to 
        read as follows:
                    ``(B) Treatment of capital gain dividends by 
                shareholders.--A capital gain dividend shall be treated 
                by the shareholders or holders of beneficial interests 
                as gain from the sale or exchange of a capital asset 
                held for more than 1 year but not more than 2 years; 
                except that the portion of any such dividend designated 
                by the company as allocable to 2-, 3-, 4-, 5-, 6-, 7-, 
                or 8-year gain of the company shall be treated as gain 
                from the sale or exchange of a capital asset held for 
                the amount of years in such class for purposes of 
                section 1202. Rules similar to the rules of 
                subparagraph (C) shall apply to any designation under 
                the preceding sentence.''
            (3) Common trust funds.--Subsection (c) of section 584 is 
        amended--
                    (A) by inserting ``and not more than 2 years'' 
                after ``1 year'' each place it appears in paragraph 
                (2),
                    (B) by striking ``and'' at the end of paragraph 
                (2), and
                    (C) by redesignating paragraph (3) as paragraph (4) 
                and inserting after paragraph (2) the following new 
                paragraph:
            ``(3) as part of its gains from sales or exchanges of 
        capital assets held for periods described in the classes of 
        gains under section 1202(c), its proportionate share of the 
        gains of the common trust fund from sales or exchanges of 
        capital assets held for such periods, and''.
    (e) Technical and Conforming Changes.--
            (1) Subparagraph (B) of section 170(e)(1) is amended by 
        inserting ``(or, in the case of a taxpayer other than a 
        corporation, the percentage of such gain equal to 100 percent 
        minus the percentage applicable to such gain under section 
        1202(a))'' after ``the amount of gain''.
            (2) Subparagraph (B) of section 172(d)(2) is amended to 
        read as follows:
                    ``(B) the deduction under section 1202 and the 
                exclusion under section 1203 shall not be allowed.''
            (3)(A) Section 221 (relating to cross reference) is amended 
        to read as follows:

``SEC. 221. CROSS REFERENCES.

    ``(1) For deduction for net capital gains in the case of a taxpayer 
other than a corporation, see section 1202.
    ``(2) For deductions in respect of a decedent, see section 691.''
            (B) The table of sections for part VII of subchapter B of 
        chapter 1 is amended by striking ``reference'' in the item 
        relating to section 221 and inserting ``references''.
            (4) The last sentence of section 453A(c)(3) is amended by 
        striking all that follows ``long-term capital gain,'' and 
        inserting ``the maximum rate on net capital gain under section 
        1(h) or 1201 or the deduction under section 1202 (whichever is 
        appropriate) shall be taken into account.''
            (5) Paragraph (4) of section 642(c) is amended to read as 
        follows:
            ``(4) Adjustments.--To the extent that the amount otherwise 
        allowable as a deduction under this subsection consists of gain 
        from the sale or exchange of capital assets held for more than 
        1 year, proper adjustment shall be made for any deduction 
        allowable to the estate or trust under section 1202 or any 
        exclusion allowable to the estate or trust under section 
        1203(a). In the case of a trust, the deduction allowed by this 
        subsection shall be subject to section 681 (relating to 
        unrelated business income).''
            (6) The last sentence of paragraph (3) of section 643(a) is 
        amended to read as follows: ``The deduction under section 1202 
        and the exclusion under section 1203 shall not be taken into 
        account.''
            (7) Subparagraph (C) of section 643(a)(6) is amended by 
        inserting ``(i)'' before ``there shall'' and by inserting 
        before the period ``, and (ii) the deduction under section 1202 
        (relating to capital gains deduction) shall not be taken into 
        account''.
            (8) Paragraph (4) of section 691(c) is amended by striking 
        ``sections 1(h), 1201, and 1211'' and inserting ``sections 
        1(h), 1201, 1202, and 1211''.
            (9) The second sentence of section 871(a)(2) is amended by 
        inserting ``or 1203'' after ``1202''.
            (10) Subsection (d) of section 1044 is amended by striking 
        ``1202'' and inserting ``1203''.
            (11) Paragraph (1) of section 1402(i) is amended by 
        inserting ``, and the deduction provided by section 1202 shall 
        not apply'' before the period at the end thereof.
    (f) Clerical Amendment.--The table of sections for part I of 
subchapter P of chapter 1 is amended by inserting after the item 
relating to section 1201 the following new item:

                              ``Sec. 1202. Capital gains deduction for 
                                        assets held by noncorporate 
                                        taxpayers more than 2 years.''
    (g) Effective Date.--
            (1) In general.--Except as otherwise provided in this 
        subsection, the amendments made by this section shall apply to 
        taxable years ending on and after May 7, 1997.
            (2) Contributions.--The amendment made by subsection (e)(1) 
        shall apply to contributions on or after May 7, 1997.

Answer: Long-Term Investment Incentive Act of 1997 - Amends the Internal Revenue Code to establish a sliding scale capital gains deduction on assets held between two years and eight years by noncorporate taxpayers.


Question: SECTION 1. PROHIBITION ON IMPORTATION OF SEMIAUTOMATIC ASSAULT RIFLES 
              AND ASSAULT PISTOLS.

    (a) General Rule.--Except as provided in subsection (b), the 
importation into the United States of--
            (1) semiautomatic assault rifles;
            (2) semiautomatic assault pistols;
            (3) large capacity ammunition feeding devices; and
            (4) semiautomatic assault weapon accessories;
is prohibited.
    (b) Exceptions.--The prohibition in subsection (a) does not apply 
to any importation under the authority of the United States, by any 
department or agency of the United States, or by any department or 
agency of any State or political subdivision of a State.

SEC. 2. DEFINITIONS.

    The following terms apply for the purposes of this Act:
            (1) HTS.--The term ``HTS'' means the Harmonized Tariff 
        Schedule of the United States.
            (2) Semiautomatic assault rifles.--The term ``semiautomatic 
        assault rifles'' means rifles of any of the following types 
        (provided for in subheading 9301.00.30 or 9303.30.80 of the 
        HTS):

      

                AK47 type            86S type                           
                AK47S type           86S7 type                          
                AK74 type            87S type                           
                AKS type             Galil type                         
                AKM type             Type 56 type                       
                AKMS type            Type 56S type                      
                84S type             Valmet M76 type                    
                ARM type             Valmet M78 type                    
                84S1 type            M76 counter-sniper type            
                84S3 type            FAL type                           
                HK91 type            L1A1A type                         
                HK93 type            SAR 48 type                        
                HK94 type            AUG type                           
                G3SA type            FNC type                           
                K1 type              Uzi carbine                        
                K2 type              Algimec AGMI type                  
                AR100 type           AR180 type                         
                M14S type            Australian Automatic Arms SAR type 
                MAS223 type          Beretta AR70 type                  
                SIG 550SP type       Beretta BM59 type                  
                SIG 551SP type       CIS SR88 type                      
                SKS type with        Any other type determined pursuant 
                 detachable           to law to be appropriate.         
                 magazine                                               
                                                                        

            (3) Semiautomatic assault pistols.--The term 
        ``semiautomatic assault pistols'' means pistols of any of the 
        following types (provided for in subheading 9302.00.00 of the 
        HTS):

                              Uzi type
                              Heckler & Koch SP-89 type
                              Australian Automatic Arms SAP type
                              Spectre Auto type
                              Sterling Mark 7 type
                              Any other type determined pursuant to law 
                                        to be appropriate.
            (4) Large-capacity ammunition feeding device.--The term 
        ``large-capacity ammunition feeding device'' means a detachable 
        magazine, belt, drum, feed strip, or similar device that has a 
        capacity of, or that can be readily restored or converted to 
        accept, more than 5 rounds of ammunition (provided for in 
        subheading 9305.29.50, 9305.90.10, or 9305.10.20 of the HTS). 
        Such term also includes any combination of parts from which 
        such a device can be assembled.
            (5) Semiautomatic assault weapon parts and accessories.--
        The term ``semiautomatic assault weapon accessory or 
        semiautomatic assault weapon part'' means any of the following 
        articles if specifically designed for use with any 
        semiautomatic weapon:
                    (A) Grenade launchers (provided for in subheading 
                9301.00.90 of the HTS).
                    (B) Bayonets (provided for in subheading 9307.00.00 
                of the HTS).
                    (C) Flash suppressors (provided for in subheading 
                9305.90.30 of the HTS).
                    (D) Night sights (provided for in subheading 
                9305.90.30 of the HTS).
                    (E) Adaptors designed to facilitate the attachment 
                of silencers or flash suppressors (provided for in 
                subheading 9305.90.30 of the HTS).
                    (F) Any combination of parts from which an article 
                referred to in any of subparagraphs (A) through (E) can 
                be assembled (provided for in subheading 9305.90.30 of 
                the HTS).
                    (G) Any part designed and intended solely for use 
                in assembling an article referred to in any of 
                subparagraphs (A) through (E).
                    (H) Any other article determined pursuant to law to 
                be appropriate.

SEC. 3. APPLICABILITY.

    The provisions of sections 1 and 2 apply with respect to goods 
entered, or withdrawn from warehouse for consumption, on or after the 
15th day after the date of the enactment of this Act.

Answer:
Prohibits the importation into the United States of any semiautomatic assault weapon, large capacity ammunition feeding devices, or assault weapon accessories.  Makes an exception for the importation of such articles under authority of the United States, by a U.S. department or agency, or by a State or local department or agency.