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SECTION 1. SHORT TITLE.

    This Act may be cited as ``State Business Law Conformity Act of 
2004''.

SEC. 2. REFERENCES TO GENERAL PARTNERS.

    (a) Exclusion of Certain Active Businesses From at Risk Rules.--
Subclause (I) of section 465(c)(7)(D)(ii) of the Internal Revenue Code 
of 1986 (defining qualified corporate partner) is amended to read as 
follows:
                                    ``(I) such corporation is not 
                                prohibited or limited under State law 
                                from participation in the management or 
                                business of the partnership.''.
    (b) Payments to Retiring Partners.--Subparagraph (B) of section 
736(b)(3) of such Code (relating to limitation on application of 
paragraph (2)) is amended to read as follows:
                    ``(B) any portion of the retiring or deceased 
                partner's distributive share of partnership income was 
                subject to tax under section 1401.''.
    (c) Foreign Currency Transactions.--Subclause (I) of section 
988(c)(1)(E)(v) of such Code is amended to read as follows:
                                    ``(I) Certain general partners.--
                                The interest of a partner in the 
                                partnership shall not be treated as 
                                failing to meet the 20-percent 
                                ownership requirements of clause 
                                (iii)(I) for any taxable year of the 
                                partnership if for the taxable year of 
                                the partner in which such partnership 
                                taxable year ends--
                                            ``(aa) the partner is not 
                                        limited as to participation in 
                                        the management or activity of 
                                        the qualified fund, and
                                            ``(bb) such partner (and 
                                        each corporation filing a 
                                        consolidated return with such 
                                        partner) had no ordinary income 
                                        or loss from a section 988 
                                        transaction which is foreign 
                                        currency gain or loss (as the 
                                        case may be).''.
    (d) Special Valuation Rules for Generation-Skipping Tax.--Clause 
(ii) of section 2701(b)(2)(B) of such Code (relating to partnerships) 
is amended to read as follows:
                            ``(ii) in the case of a limited 
                        partnership, the holding of any interest as a 
                        partner who is not limited as to participation 
                        in management or activity of the 
                        partnership.''.
    (e) Tax Matters Partner.--Paragraph (7) of section 6231(a) of such 
Code (defining tax matters partner) is amended to read as follows:
            ``(7) Tax matters partner.--
                    ``(A) In general.--The tax matters partner of any 
                partnership is--
                            ``(i) the partner designated as the tax 
                        matters partner as provided in regulations, or
                            ``(ii) if there is no partner who has been 
                        so designated, the partner having the largest 
                        profits interest in the partnership at the 
                        close of the taxable year involved (or, where 
                        there is more than 1 such partner, the 1 of 
                        such partners whose name would appear first in 
                        an alphabetical listing).
                    ``(B) Selection by secretary.--If there is no 
                partner designated under subparagraph (A)(i) and the 
                Secretary determines that it is impracticable to apply 
                subparagraph (A)(ii), the partner selected by the 
                Secretary shall be treated as the tax matters partner. 
                The Secretary shall, within 30 days of selecting a tax 
                matters partner under the preceding sentence, notify 
                all partners required to receive notice under section 
                6223(a) of the name and address of the person selected.
                    ``(C) Restriction on designation of partner.--A 
                partner may not be designated as a tax matters partner 
                under subparagraph (A)(i) unless such partner is not 
                limited as to participation in management or activity 
                of the partnership.''.
    (f) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2004.

SEC. 3. REFERENCES TO LIMITED PARTNERS.

    (a) Limited Entrepreneur.--
            (1) In general.--Subparagraph (A) of section 464(e)(2) of 
        the Internal Revenue Code of 1986 (defining limited 
        entrepreneur) is amended by striking ``other than as a limited 
        partner''.
            (2) Conforming amendments.--
                    (A) Section 464(c) of such Code is amended--
                            (i) by striking ``limited partners or'' in 
                        paragraph (1)(B),
                            (ii) by striking ``a limited partner or'' 
                        in paragraph (2).
                    (B) Section 1256 of such Code is amended--
                            (i) by striking ``limited partners or'' 
                        each place it appears in subsections (e)(3)(B) 
                        and (f)(4),
                            (ii) by striking ``a limited partner or'' 
                        in subsection (e)(3)(C), and
                            (iii) by striking ``limited partner or'' 
                        both places it appears in the heading and text 
                        of subsection (e)(4)(A)(i).
                    (C) Section 1258(d)(5)(C) of such Code is amended--
                            (i) by striking ``limited partner or'' in 
                        the matter preceding subclause (i),
                            (ii) by striking ``limited partner's (or 
                        limited entrepreneur's) in subclause (i) and 
                        inserting ``limited entrepreneur's'', and
                            (iii) by striking ``partners and limited'' 
                        in the heading.
    (b) Passive Loss Rules.--
            (1) Subsection (h) of section 469 of such Code is amended 
        by striking paragraph (2) and by redesignating paragraphs (3), 
        (4), and (5) as paragraphs (2), (3), and (4), respectively.
            (2) Subparagraph (A) of section 469(c)(7) of such Code is 
        amended by striking the last sentence.
            (3) Paragraph (6) of section 469(i) of such Code is amended 
        by striking subparagraph (C) and by redesignating subparagraph 
        (D) as subparagraph (C).
            (4) Subsection (f) of section 772 of such Code (relating to 
        special rules for applying passive loss limitations) is amended 
        to read as follows:
    ``(f) Special Rules for Applying Passive Loss Limitations.--
            ``(1) In general.--If any person holds an interest in an 
        electing large partnership other than as a partner described in 
        paragraph (3)--
                    ``(A) paragraph (2) of subsection (c) shall not 
                apply to such partner, and
                    ``(B) such partner's distributive share of the 
                partnership items allocable to passive loss limitation 
                activities shall be taken into account separately to 
                the extent necessary to comply with the provisions of 
                section 469.
            ``(2) Exception.--Paragraph (1) shall not apply to any 
        items allocable to an interest held as a partner described in 
        paragraph (3).
            ``(3) Partner described.--For purposes of this subsection, 
        a partner is described in this paragraph if the partner is a 
        person whose participation in the management or business 
        activity of the partnership is limited under applicable State 
        law.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2004.

SEC. 4. PARTNERSHIP INCOME ATTRIBUTABLE TO CAPITAL EXCLUDED FROM NET 
              EARNINGS FROM SELF-EMPLOYMENT.

    (a) In General.--Paragraph (13) of section 1402(a) of the Internal 
Revenue Code of 1986 is amended to read as follows:
            ``(13) there shall be excluded the distributive share of 
        net income of a partner attributable to capital;''.
    (b) Partnership Income Attributable to Capital.--Section 1402 of 
such Code is amended by adding at the end the following new subsection:
    ``(l) Partnership Income Attributable to Capital.--
            ``(1) In general.--For purposes of subsection (a)(13), the 
        following amounts shall be treated as income attributable to 
        capital--
                    ``(A) the amount, if any, in excess of what would 
                constitute reasonable compensation for services 
                rendered by such partner to the partnership, and
                    ``(B) an amount equal to a reasonable rate of 
                return on unreturned capital of the partner determined 
                as of the beginning of the taxable year.
            ``(2) Definitions.--For purposes of paragraph (1)--
                    ``(A) Unreturned capital.--The term `unreturned 
                capital' means the excess of the aggregate amount of 
                money and the fair market value as of the date of 
                contribution of other consideration (net of 
                liabilities) contributed by the partner over the 
                aggregate amount of money and the fair market value as 
                of the date of distribution of other consideration (net 
                of liabilities) distributed by the partnership to the 
                partner, increased or decreased for the partner's 
                distributive share of all reportable items as 
                determined in section 702. If the partner acquires a 
                partnership interest and the partnership makes an 
                election under section 754, the partner's unreturned 
                capital shall take into account appropriate adjustments 
                under section 743.
                    ``(B) Reasonable rate of return.--A reasonable rate 
                of return on unreturned capital shall equal 150 percent 
                (or such higher rate as is established in regulations) 
                of the highest applicable Federal rate, as determined 
                under section 1274(d)(1), at the beginning of the 
                partnership's taxable year.
            ``(3) Regulations.--The Secretary shall prescribe such 
        regulations as may be necessary to carry out the purposes of 
        this subsection.''.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to services performed in taxable years beginning 
after December 31, 2004.

SEC. 5. REPEAL OF ABILITY TO ELECT LARGE PARTNERSHIP REPORTING RULES.

    (a) In General.--Paragraph (2) of section 775(a) of the Internal 
Revenue Code of 1986 (relating to election) is amended by adding at the 
end the following: ``No election under this subsection shall be made 
after December 31, 2004.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to partnership taxable years beginning after December 31, 2004.
State Business Law Conformity Act of 2004 - Amends the Internal Revenue Code to: (1) revise certain partnership tax definitions and rules relating to general and limited partners; (2) exclude from net earnings from self-employment partnership income attributable to capital; and (3) repeal, after 2004, the election to apply large partnership (100 partners or more) tax rules.

SECTION 1. REDUCTION IN LIMITATION AMOUNT APPLICABLE TO CONTRIBUTIONS 
              BY A MULTICANDIDATE POLITICAL COMMITTEE TO A HOUSE OF 
              REPRESENTATIVES CANDIDATE.

    Section 315(a)(2)(A) of the Federal Election Campaign Act of 1971 
(2 U.S.C. 441a(a)(2)(A)) is amended by inserting after ``$5,000'' the 
following: ``, except that in the case of an election for the office of 
Representative in, or Delegate or Resident Commissioner to, the 
Congress, the limitation shall be $1,000.''.

SEC. 2. PROHIBITION ON HOUSE OF REPRESENTATIVES GENERAL ELECTION 
              CONTRIBUTIONS IN NONELECTION YEARS.

    Section 315 of the Federal Election Campaign Act of 1971 (2 U.S.C. 
441a) is amended by adding at the end the following new subsection:
    ``(i) A candidate for the office of Representative in, or Delegate 
or Resident Commissioner to, the Congress may not solicit or accept any 
contribution in an odd-numbered year with respect to a general election 
for such office or any primary election relating to the general 
election.''.

SEC. 3. BAN ON SOFT MONEY.

    (a) In General.--Title III of the Federal Election Campaign Act of 
1971 (2 U.S.C. 431 et seq.) is amended by adding at the end the 
following new section:

  ``limitations and reporting requirements for amounts paid for mixed 
                          political activities

    ``Sec. 323. (a) Any payment by the national committee of a 
political party or a State committee of a political party for a mixed 
political activity--
            ``(1) shall be subject to limitation and reporting under 
        this Act as if such payment were an expenditure; and
            ``(2) may be paid only from an account that is subject to 
        the requirements of this Act.
    ``(b) As used in this section, the term `mixed political activity' 
means, with respect to a payment by the national committee of a 
political party or a State committee of a political party, an activity, 
such as a voter registration program, a get-out-the-vote drive, or 
general political advertising, that is both (1) for the purpose of 
influencing an election for Federal office, and (2) for any purpose 
unrelated to influencing an election for Federal office.''.
    (b) Repeal of Building Fund Exception to the Definition of the Term 
``Contribution''.--Section 301(8)(B) of the Federal Election Campaign 
Act of 1971 (2 U.S.C. 431(8)(B)) is amended--
            (1) by striking out clause (viii); and
            (2) by redesignating clauses (ix) through (xiv) as clauses 
        (viii) through (xiii), respectively.

SEC. 4. VOLUNTARY EXPENDITURE LIMITATION FOR HOUSE OF REPRESENTATIVES 
              ELECTIONS.

    Section 315 of the Federal Election Campaign Act of 1971 (2 U.S.C. 
441a), as amended by section 2, is further amended by adding at the end 
the following new subsection:
    ``(j) In such form and manner as the Commission may prescribe, each 
candidate for the office of Representative in, or Delegate or Resident 
Commissioner to, the Congress in a general election or a primary 
election for such office shall be given the opportunity to comply with 
a voluntary expenditure limitation of $500,000 with respect to the 
general election and any primary election relating to the general 
election. In the case of a candidate who declines to comply with the 
voluntary limitation, the limitation under subsection (a)(1)(A) shall 
be $250.''.

SEC. 5. HOUSE OF REPRESENTATIVES ELECTION LIMITATION ON CONTRIBUTIONS 
              FROM PERSONS OTHER THAN IN-STATE RESIDENTS.

    Section 315 of the Federal Election Campaign Act of 1971 (2 U.S.C. 
441a), as amended by sections 2 and 4, is further amended by adding at 
the end the following new subsection:
    ``(k)(1) A candidate for the office of Representative in, or 
Delegate or Resident Commissioner to, the Congress may not, with 
respect to a reporting period for an election, accept contributions 
from persons other than in-State residents totaling in excess of one-
half of the total of contributions accepted with respect to the 
reporting period.
    ``(2) As used in this subsection, the term `in-State resident' 
means an individual who resides in the State in which the congressional 
district involved is located.''.

SEC. 6. PROHIBITION OF FRANKED MASS MAILINGS BY MEMBERS OF THE HOUSE OF 
              REPRESENTATIVES IN ELECTION YEARS.

    Notwithstanding any other provision of law, or any rule or other 
authority, a Member of the House of Representatives may not make any 
franked mass mailing in an even-numbered year. As used in this 
section--
            (1) the term ``mass mailing'' has the meaning given that 
        term in section 3210 of title 39, United States Code; and
            (2) the term ``Member of the House of Representatives'' 
        means a Representative in, or a Delegate or Resident 
        Commissioner to, the Congress.

SEC. 7. ELIMINATION OF CARRY-OVER OF CAMPAIGN FUNDS BETWEEN HOUSE OF 
              REPRESENTATIVES ELECTIONS.

    Section 315 of the Federal Election Campaign Act of 1971 (2 U.S.C. 
441a), as amended by sections 2, 4, and 5, is further amended by adding 
at the end the following new subsection:
    ``(l) Notwithstanding any other provision of this Act, if after 
satisfying all financial obligations with respect to a general election 
and any primary election relating to the general election, a candidate 
for the office of Representative in, or Delegate or Resident 
Commissioner to, the Congress has a campaign account balance, the 
candidate shall return the excess funds to contributors or, at the 
option of the candidate, donate the excess funds to charity. No excess 
funds may be carried forward or used for any other purpose.''.
Amends the Federal Election Campaign Act of 1971 to reduce the amount of contributions that a multicandidate political committee (PAC) may make to a House of Representatives candidate. 
Prohibits House general election contributions in nonelection years. 
Sets forth:  (1) limitations and reporting requirements for amounts paid for mixed political activities ("soft money"); (2) voluntary expenditure limitations for House elections; and (3) House contribution limitations from persons other than in-State residents. 
Prohibits election-year franked mass mailings by House members. 
Requires House members to return or give to charity unused campaign funds.

SECTION 1. WORKERS' COMPENSATION.

    (a) Amendments.--
            (1) Section 325 of the Legislative Branch Appropriations 
        Act, 1993 (Public Law 102-392) is repealed.
            (2) Section 504(d) of the Migrant and Seasonal Agricultural 
        Worker Protection Act (29 U.S.C. 1854(d)) is amended to read as 
        follows:
    ``(d)(1) Notwithstanding any other provisions of this Act, where a 
State workers' compensation law is applicable and coverage is provided 
for a migrant or seasonal agricultural worker, the workers' 
compensation benefits shall be the exclusive remedy for loss of such 
worker under this Act in the case of bodily injury or death in 
accordance with such State's workers' compensation law.
    ``(2) The exclusive remedy prescribed by paragraph (1) precludes 
the recovery under subsection (c) of actual damages for loss from an 
injury or death but does not preclude recovery under subsection (c) for 
statutory damages or equitable relief, except that such relief shall 
not include back or front pay or in any manner, directly or indirectly, 
expand or otherwise alter or affect (A) a recovery under a State 
workers' compensation law or (B) rights conferred under a State 
workers' compensation law.''.
    (b) Effective Date.--The amendment made by subsection (a)(2) shall 
apply to all cases in which a final judgment has not been entered.

SEC. 2. EXPANSION OF STATUTORY DAMAGES.

    (a) Amendment.--Section 504 of the Migrant and Seasonal 
Agricultural Worker Protection Act (29 U.S.C. 1854) is amended by 
adding after subsection (D) the following:
    ``(e) If the court finds in an action which is brought by or for a 
worker under subsection (a) in which a claim for actual damages is 
precluded because the workers' injury is covered by a State workers' 
compensation law as provided by subsection (d) that--
            ``(1)(A) the defendant in the action violated section 
        401(b) by knowingly requiring or permitting a driver to drive a 
        vehicle for the transportation of migrant or seasonal 
        agricultural workers while under the influence of alcohol or a 
        controlled substance (as defined in section 102 of the 
        Controlled Substances Act (21 U.S.C. 802)) and the defendant 
        had actual knowledge of the driver's condition, and
            ``(B) such violation resulted in injury to or death of the 
        migrant or seasonal worker by or for whom the action was 
        brought and such injury or death arose out of and in the course 
        of employment as determined under the State workers' 
        compensation law,
            ``(2)(A) the defendant violated a safety standard 
        prescribed by the Secretary under section 401(b) which the 
        defendant was determined in a previous judicial or 
        administrative proceeding to have violated, and
            ``(B) such safety violation resulted in an injury or death 
        described in paragraph (1)(B),
            ``(3)(A)(i) the defendant willfully disabled or removed a 
        safety device prescribed by the Secretary under section 401(b), 
        or
            ``(ii) the defendant in conscious disregard of the 
        requirements of section 401(b) failed to provide a safety 
        device required under such section, and
            ``(B) such disablement, removal, or failure to provide a 
        safety device resulted in an injury or death described in 
        paragraph (1)(B), or
            ``(4)(A) the defendant violated a safety standard 
        prescribed by the Secretary under section 401(b),
            ``(B) such safety violation resulted in an injury or death 
        described in paragraph (1)(B), and
            ``(C) the defendant at the time of the violation of section 
        401(b) also was--
                    ``(i) an unregistered farm labor contractor in 
                violation of section 101(a), or
                    ``(ii) a person who utilized the services of a farm 
                labor contractor of the type specified in clause (i) 
                without taking reasonable steps to determine that the 
                farm labor contractor possessed a valid certificate of 
                registration authorizing the performance of the farm 
                labor contracting activities which the contractor was 
                requested by or permitted to perform with the knowledge 
                of such person,
the court shall award not more than $10,000 per plaintiff per violation 
with respect to whom the court made the finding described in paragraph 
(1), (2), (3), or (4), except that multiple infractions of a single 
provision of this Act shall constitute only one violation for purposes 
of determining the amount of statutory damages due to a plaintiff under 
this subsection and in the case of a class action, the court shall 
award not more than the lesser of up to $10,000 per plaintiff or up to 
$500,000 for all plaintiffs in such class action.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to all cases in which a final judgment has not been entered.

SEC. 3. TOLLING OF STATUTE OF LIMITATIONS.

    Section 504 of the Migrant and Seasoned Agricultural Worker 
Protection Act (29 U.S.C. 1854), as amended by section 2, is amended by 
adding after subsection (e) the following:
    ``(f) If it is determined under a State workers' compensation law 
that the workers' compensation law is not applicable to a claim for 
bodily injury or death of a migrant or seasonal agricultural worker, 
the statute of limitations for bringing an action for actual damages 
for such injury or death under subsection (a) shall be tolled for the 
period during which the claim for such injury or death under such State 
workers' compensation law was pending. The statute of limitations for 
an action for other actual damages, statutory damages or equitable 
relief arising out of the same transaction or occurrence as the injury 
or death of the migrant or seasonal agricultural worker shall be tolled 
for the period during which the claim for such injury or death was 
pending under the State workers' compensation law.''.

SEC. 4. DISCLOSURE OF WORKERS' COMPENSATION COVERAGE.

    (a) Migrant Workers.--Section 201(a) of the Migrant and Seasonal 
Agricultural Worker Protection Act (29 U.S.C. 1821(a)) is amended by 
striking ``and'' at the end of paragraph (6), by striking the period at 
the end of paragraph (7) and inserting ``; and'', and by adding after 
paragraph (7) the following:
            ``(8) whether State workers' compensation insurance is 
        provided, and, if so, the name of the State workers' 
        compensation insurance carrier, the name of the policyholder of 
        such insurance, the name and the telephone number of each 
        person who must be notified of an injury or death, and the time 
        period within which such notice must be given.
Compliance with the disclosure requirement of paragraph (8) for a 
migrant agricultural worker may be met if such worker is given a 
photocopy of any notice regarding workers' compensation insurance 
required by law of the State in which such worker is employed. Such 
worker shall be given such disclosure at the time of recruitment or if 
sufficient information is unavailable at that time, at the earliest 
practicable time but in no event later than the commencement of 
work.''.
    (b) Seasonal Workers.--Section 301(a)(1) of the Migrant and 
Seasonal Agricultural Worker Protection Act (29 U.S.C. 1831(a)(1)) is 
amended by striking ``and'' at the end of subparagraph (F), by striking 
the period at the end of subparagraph (G) and inserting ``; and'', and 
by adding after subparagraph (G) the following:
            ``(H) whether State workers' compensation in insurance is 
        provided, and, if so, the name of the State workers' 
        compensation insurance carrier, the name of the policyholder of 
        such insurance, the name and the telephone number of each 
        person who must be notified of an injury or death, and the time 
        period within which such notice must be given.
Compliance with the disclosure requirement of subparagraph (H) may be 
met if such worker is given, upon request, a photocopy of any notice 
regarding workers' compensation insurance required by law of the State 
in which such worker is employed.''.
    (c) Effective Date.--The amendments made by subsections (a) and (b) 
shall take effect upon the expiration of 90 days after the date final 
regulations are issued by the Secretary of Labor to implement such 
amendments.

SEC. 5. LIABILITY INSURANCE.

    (a) Amendment.--Section 401(b)(3) of the Migrant and Seasonal 
Agricultural Worker Protection Act (29 U.S.C. 1841(b)(3)) is amended to 
read as follows:
    ``(3) The level of insurance required under paragraph (1)(C) shall 
be determined by the Secretary considering at least the factors set 
forth in paragraph (2)(B) and similar farmworker transportation 
requirements under State law.''.
    (b) Regulations.--Within 180 days of the date of the enactment of 
this Act, the Secretary of Labor shall promulgate regulations 
establishing insurance levels under section 401(b)(3) of the Migrant 
and Seasonal Agricultural Worker Protection Act (29 U.S.C. 1841(b)(3)) 
as amended by subsection (a).
    (c) Effective Date.--The amendment made by subsection (a) takes 
effect upon the expiration of 180 days after the date of enactment of 
this Act or upon the issuance of final regulations under subsection 
(b), whichever occurs first.

Repeals provisions of the Legislative Branch Appropriations Act, 1993 which amended the Migrant and Seasonal Agricultural Worker Protection Act with respect to applicable State workers' compensation laws. 
Amends the Migrant and Seasonal Agricultural Worker Protection Act (MSAWPA) to make State workers' compensation laws, which are applicable to and provide coverage for a migrant or seasonal agricultural worker, the exclusive remedy for actual damages for loss from an injury or death of such a worker, for all cases in which a final judgment has not been entered.  Provides that this does not preclude recovery under such Act for statutory damages or relief (except that such relief may not include back or front pay or in any manner expand or otherwise alter or affect a recovery or rights conferred under a State workers' compensation law. 
Increases statutory damages under MSAWPA under certain limited circumstances. 
Provides for tolling of the statute of limitations on actions brought under MSAWPA during the time period in which a claim under State workers' compensation was pending. 
Requires disclosure of information regarding workers' compensation coverage to migrant or seasonal agricultural workers. 
Directs the Secretary of Labor to determine, considering specified factors, the level of liability insurance required of employers engaged in transportation of migrant or seasonal agricultural workers.