In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.

[Q]: SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Keeping Families 
Together Act of 2001''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Restoration of definition of aggravated felony (repeal of 
                            section 321 of IIRIRA).
Sec. 3. Restoration of detention policy.
Sec. 4. Repeal of time stop provisions.
Sec. 5. Repeal of section 101(a)(48).
Sec. 6. Restoration of section 212(c).
Sec. 7. Restoration of judicial review provisions.
Sec. 8. Post-proceeding relief for affected aliens.

SEC. 2. RESTORATION OF DEFINITION OF AGGRAVATED FELONY (REPEAL OF 
              SECTION 321 OF IIRIRA).

    (a) In General.--Effective as if included in the enactment of the 
Illegal Immigration Reform and Immigrant Responsibility Act of 1996 
(division C of Public Law 104-208), section 321 of such Act is repealed 
and the provisions of law amended by such section are restored as if 
such section had not been enacted.
    (b) Restoration of Rights.--Any alien whose legal permanent 
resident status, application for permanent residence, or application 
for cancellation of removal, was affected by the changes in the 
definition of ``aggravated felony'' made by such section 321 may apply 
to the Attorney General to be considered for adjustment of status or 
cancellation of removal in conformance with the provisions of section 
101(a)(43) of the Immigration and Nationality Act, as restored by 
subsection (a).

SEC. 3. RESTORATION OF DETENTION POLICY.

    (a) In General.--Section 236(c) of the Immigration and Nationality 
Act (8 U.S.C. 1226(c)) is amended to read as follows:
    ``(c) Detention of Criminal Aliens.--
            ``(1) In general.--The Attorney General shall take into 
        custody any alien convicted of an aggravated felony upon 
        release of the alien (regardless of whether or not such release 
        is on parole, supervised release, or probation, and regardless 
        of the possibility of rearrest or further confinement in 
        respect of the same offense). Notwithstanding subsection (a) or 
        section 241(a) but subject to paragraph (2), the Attorney 
        General shall not release such felon from custody.
            ``(2) Non-release.--The Attorney General may not release 
        from custody any who has been convicted of an aggravated 
        felony, either before or after a determination of removability, 
        unless--
                    ``(A)(i) the alien was lawfully admitted, or
                    ``(ii) the alien was not lawfully admitted but the 
                alien cannot be removed because the designated country 
                of removal will not accept the alien; and
                    ``(B) the alien satisfies the Attorney General that 
                the alien will not pose a danger to the safety of other 
                persons or of property and is likely to appear for any 
                scheduled proceeding.''.
    (b) Effective Date.--The amendment made by subsection (a) shall be 
effective as if included in the Illegal Immigration Reform and 
Immigrant Responsibility Act of 1996.

SEC. 4. REPEAL OF TIME STOP PROVISIONS.

    (a) In General.--Section 240A(d) of the Immigration and Nationality 
Act (8 U.S.C. 1229b(d)) is repealed.
    (b) Effective Date.--The repeal made by subsection (a) shall be 
effective as if included in the enactment of subtitle A of title III of 
the Illegal Immigration Reform and Immigrant Responsibility Act of 
1996.

SEC. 5. REPEAL OF SECTION 101(A)(48).

    (a) In General.--Paragraph (48) of section 101(a)(48) of the 
Immigration and Nationality Act (8 U.S.C. 1101(a)) is repealed.
    (b) Effective Date.--The repeal made by subsection (a) shall take 
effect as if included in the enactment of section 322(a) of the Illegal 
Immigration Reform and Immigrant Responsibility Act of 1996.

SEC. 6. RESTORATION OF SECTION 212(C).

    (a) In General.--Section 212 of the Immigration and Nationality Act 
(8 U.S.C. 1182) is amended by inserting after subsection (b) the 
following new subsection:
    ``(c) Aliens lawfully admitted for permanent residence who 
temporarily proceeded abroad voluntarily and not under an order of 
deportation or removal, and who are returning to a lawful 
unrelinquished domicile of seven consecutive years, may be admitted in 
the discretion of the Attorney General without regard to the provisions 
of subsection (a) (other than paragraphs (3) and (10)(C)). Nothing 
contained in this subsection shall limit the authority of the Attorney 
General to exercise the discretion vested in him under section 211(b). 
The first sentence of this subsection shall not apply to an alien who 
has been convicted of one or more aggravated felonies and has served 
for such felony or felonies a term of imprisonment of at least 5 
years.''.
    (b) Effective Date.--The amendment made by subsection (a) applies 
as of April 24, 1996, as if section 440(d) of the Antiterrorism and 
Effective Death Penalty Act of 1996 (Public Law 104-132) and section 
304(b) of Illegal Immigration Reform and Immigrant Responsibility Act 
of 1996 (division C of Public Law 104-208) had not been enacted.

SEC. 7. RESTORATION OF JUDICIAL REVIEW PROVISIONS.

    (a) In General.--Section 242 of the Immigration and Nationality Act 
(8 U.S.C. 1252) is amended to read as follows:

                 ``judicial review of orders of removal

    ``Sec. 242. (a) The procedure prescribed by, and all the provisions 
of chapter 158 of title 28, United States Code, shall apply to, and 
shall be the sole and exclusive procedure for, the judicial review of 
all final orders of removal heretofore or hereafter made against aliens 
within the United States pursuant to administrative proceedings under 
section 240 of this Act or comparable provisions of any prior Act, 
except that--
            ``(1) a petition for review may be filed not later than 90 
        days after the date of the issuance of the final removal order, 
        or, in the case of an alien convicted of an aggravated felony 
        not later than 30 days after the issuance of such order;
            ``(2) the venue of any petition for review under this 
        section shall be in the judicial circuit in which the 
        administrative proceedings before an immigration judge were 
        conducted in whole or in part, or in the judicial circuit 
        wherein is the residence, as defined in this Act, of the 
        petitioner, but not in more than one circuit;
            ``(3) the action shall be brought against the Immigration 
        and Naturalization Service, as respondent. Service of the 
        petition to review shall be made upon the Attorney General of 
        the United States and upon the official of the Immigration and 
        Naturalization Service in charge of the Service district in 
        which the office of the clerk of the court is located. The 
        service of the petition for review upon such official of the 
        Service shall stay the removal of the alien pending 
        determination of the petition by the court, unless the court 
        otherwise directs or unless the alien is convicted of an 
        aggravated felony, in which case the Service shall not stay the 
        removal of the alien pending determination of the petition of 
        the court unless the court otherwise directs;
            ``(4) except as provided in clause (B) of paragraph (5) of 
        this subsection, the petition shall be determined solely upon 
        the administrative record upon which the removal order is based 
        and the Attorney General's findings of fact, if supported by 
        reasonable, substantial, and probative evidence on the record 
        considered as a whole, shall be conclusive;
            ``(5) whenever any petitioner, who seeks review of an order 
        under this section, claims to be a national of the United 
        States and makes a showing that his claim is not frivolous, the 
        court shall (A) pass upon the issues presented when it appears 
        from the pleadings and affidavits filed by the parties that no 
        genuine issue of material fact is presented; or (B) where a 
        genuine issue of material fact as to the petitioner's 
        nationality is presented, transfer the proceedings to a United 
        States district court for the district where the petitioner has 
        his residence for hearing de novo of the nationality claim and 
        determination as if such proceedings were originally initiated 
        in the district court under the provisions of section 2201 of 
        title 28, United States Code. Any such petitioner shall not be 
        entitled to have such issue determined under section 360(a) of 
        this Act or otherwise;
            ``(6) whenever a petitioner seeks review of an order under 
        this section, any review sought with respect to a motion to 
        reopen or reconsider such an order shall be consolidated with 
        the review of the order;
            ``(7) if the validity of a removal order has not been 
        judicially determined, its validity may be challenged in a 
        criminal proceeding against the alien for violation of 
        subsection (a) or (b) of section 243 of this Act only by 
        separate motion for judicial review before trial. Such motion 
        shall be determined by the court without a jury and before the 
        trial of the general issue. Whenever a claim to United States 
        nationality is made in such motion, and in the opinion of the 
        court, a genuine issue of material fact as to the alien's 
        nationality is presented, the court shall accord him a hearing 
        de novo on the nationality claim and determine that issue as if 
        proceedings had been initiated under the provisions of section 
        2201 of title 28, United States Code. Any such alien shall not 
        be entitled to have such issue determined under section 360(a) 
        of this Act or otherwise. If no such hearing de novo as to 
        nationality is conducted, the determination shall be made 
        solely upon the administrative record upon which the removal 
        order is based and the Attorney General's findings of fact, if 
        supported by reasonable, substantial, and probative evidence on 
        the record considered as a whole, shall be conclusive. If the 
        removal order is held invalid, the court shall dismiss the 
        indictment and the United States shall have the right to appeal 
        to the court of appeals within 30 days. The procedure on such 
        appeals shall be as provided in the Federal rules of criminal 
        procedure. No petition for review under this section may be 
        filed by any alien during the pendency of a criminal proceeding 
        against such alien for violation of subsection (a) or (b) of 
        section 243 of this Act;
            ``(8) nothing in this section shall be construed to require 
        the Attorney General to defer removal of an alien after the 
        issuance of a removal order because of the right of judicial 
        review of the order granted by this section, or to relieve any 
        alien from compliance with subsections (a) and (b) of section 
        243 of this Act. Nothing contained in this section shall be 
        construed to preclude the Attorney General from detaining or 
        continuing to detain an alien or from taking the alien into 
        custody pursuant to section 241 of this Act at any time after 
        the issuance of a removal order;
            ``(9) it shall not be necessary to print the record or any 
        part thereof, or the briefs, and the court shall review the 
        proceedings on a typewritten record and on typewritten briefs; 
        and
            ``(10) any alien held in custody pursuant to an order of 
        removal may obtain judicial review thereof by habeas corpus 
        proceedings.
    ``(b) Notwithstanding the provisions of any other law, any alien 
against whom a final order of removal has been made heretofore or 
hereafter under the provisions of section 235 of this Act or comparable 
provisions of any prior Act may obtain judicial review of such order by 
habeas corpus proceedings and not otherwise.
    ``(c) An order of removal shall not be reviewed by any court if the 
alien has not exhausted the administrative remedies available to the 
alien as of right under the immigration laws and regulations or if the 
alien has departed from the United States after the issuance of the 
order. Every petition for review or for habeas corpus shall state 
whether the validity of the order has been upheld in any prior judicial 
proceeding, and, if so, the nature and date thereof, and the court in 
which such proceeding took place. No petition for review or for habeas 
corpus shall be entertained if the validity of the order has been 
previously determined in any civil or criminal proceeding, unless the 
petition presents grounds which the court finds could not have been 
presented in such prior proceeding, or the court finds that the remedy 
provided by such prior proceeding was inadequate or ineffective to test 
the validity of the order.
    ``(d)(1) A petition for review or for habeas corpus on behalf of an 
alien against whom a final order of removal has been issued pursuant to 
section 238(b) may challenge only--
            ``(A) whether the alien is in fact the alien described in 
        the order;
            ``(B) whether the alien is in fact an alien described in 
        section 238(b)(2);
            ``(C) whether the alien has been convicted of an aggravated 
        felony and such conviction has become final; and
            ``(D) whether the alien was afforded the procedures 
        required by section 238(b)(4).
    ``(2) No court shall have jurisdiction to review any issue other 
than an issue described in paragraph (1).''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on the date of the enactment of this Act and shall apply to 
determinations pending on or after such date with respect to which--
            (1) a final administrative decision has been not been 
        rendered as of such date; or
            (2) such a decision has been rendered but the period for 
        seeking judicial review of the decision has not expired.

SEC. 8. POST-PROCEEDING RELIEF FOR AFFECTED ALIENS.

    (a) In General.--Notwithstanding section 240(c)(6) of the 
Immigration and Nationality Act (8 U.S.C. 1229a(c)(6)) or any other 
limitation imposed by law on motions to reopen removal proceedings, the 
Attorney General shall establish a process (whether through permitting 
the reopening of a removal proceeding or otherwise) under which an 
alien--
            (1) who is (or was) in removal proceedings before the date 
        of the enactment of this Act (whether or not the alien has been 
        removed as of such date); and
            (2) whose eligibility for cancellation of removal has been 
        established by this Act;
may apply (or reapply) for cancellation of removal under section 
240A(a) of the Immigration and Nationality Act (8 U.S.C. 1229b(a)) as a 
beneficiary of the relief provided under this Act.
    (b) Parole.--The Attorney General should exercise the parole 
authority under section 212(d)(5)(A) of the Immigration and Nationality 
Act (8 U.S.C. 1182(d)(5)(A)) for the purpose of permitting aliens 
removed from the United States to participate in the process 
established under subsection (a).
[A]: Keeping Families Together Act of 2001 - Amends the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (Act) to repeal the provision amending the definition of "aggravated felony," and restore provisions of law amended by such provision as if it had not been enacted, including residency-or status-related rights of an affected legal alien. Amends the Immigration and Nationality Act to revise detention of criminal alien provisions, effective as if included in the Act. Repeals, as if included in the Act: (1) certain provisions respecting termination of continuous presence or physical presence in the United States; and (2) the definition of "conviction."Authorizes the Attorney General to admit certain lawfully admitted permanent resident aliens returning to the United States who temporarily proceeded abroad voluntarily and not under an order of deportation or removal, effective as of a specified date, as if certain sections of the Antiterrorism and Effective Death Penalty Act of 1996 and the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 had not been enacted. Revises provisions respecting judicial review of removal orders.Requires the Attorney General to establish a post-proceeding removal relief process for affected aliens.


[Q]: SECTION 1. ENCOURAGING THE PREPARATION OF TANF RECIPIENTS FOR HIGH-
              SKILL, HIGH-DEMAND JOBS.

    (a) In General.--Section 407(c)(2)(D) of the Social Security Act 
(42 U.S.C. 607(c)(2)(D)) is amended to read as follows:
                    ``(D) Limitation on number of persons who may be 
                treated as engaged in work by reason of participation 
                in educational activities.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), for purposes of paragraphs 
                        (1)(B)(i) and (2)(B) of subsection (b), not 
                        more than 30 percent of the number of 
                        individuals in all families in a State who are 
                        treated as engaged in work for a month may 
                        consist of individuals who are--
                                    ``(I) determined to be engaged in 
                                work for the month by reason of 
                                participation in vocational educational 
                                training (but only with respect to such 
                                training that does not exceed 12 months 
                                with respect to any individual); or
                                    ``(II) deemed to be engaged in work 
                                for the month by reason of subparagraph 
                                (C) of this paragraph.
                            ``(ii) Exception for education in 
                        preparation for sector-specific, high-skill 
                        occupations to meet employer demand.--
                                    ``(I) In general.--Notwithstanding 
                                clause (i) and subsection (d)(8), for 
                                purposes of determining monthly 
                                participation rates under paragraphs 
                                (1)(B)(i) and (2)(B) of subsection (b) 
                                with respect to an individual who is 
                                enrolled, in preparation for a sector-
                                specific, high-skill occupation to meet 
                                employer demand (as defined in 
                                subclause (II)), in a postsecondary 2- 
                                or 4-year degree program or in 
                                vocational educational training--
                                            ``(aa) the State may count 
                                        the number of hours per week 
                                        that the individual attends 
                                        such program or training for 
                                        purposes of determining the 
                                        number of hours for which a 
                                        family is engaged in work for 
                                        the month without regard to the 
                                        30 percent limitation under 
                                        clause (i); and
                                            ``(bb) the individual shall 
                                        be permitted to complete the 
                                        requirements of the degree 
                                        program or vocational 
                                        educational training within the 
                                        normal time frame for full-time 
                                        students seeking the particular 
                                        degree or completing such 
                                        vocational educational 
                                        training.
                                    ``(II) Sector-specific, high-skill 
                                occupation to meet employer demand 
                                defined.--In subclause (I), the term 
                                `sector-specific, high-demand, high-
                                skill occupation to meet employer 
                                demand' means an occupation--
                                            ``(aa) that has been 
                                        identified by the State 
                                        workforce investment board 
                                        established under section 111 
                                        of the Workforce Investment Act 
                                        of 1998 (29 U.S.C. 2821) as 
                                        within the needs of the State 
                                        with regard to current and 
                                        projected employment 
                                        opportunities in specific 
                                        industry sectors or that has 
                                        been defined by the State 
                                        agency administering the State 
                                        program funded under this part 
                                        as within the needs of the 
                                        State with regard to current 
                                        and projected employment 
                                        opportunities in specific 
                                        industry sectors and is 
                                        consistent with high demand 
                                        jobs identified in the State 
                                        plan in accordance with section 
                                        402(a)(1)(A)(vii);
                                            ``(bb) that requires 
                                        occupational training; and
                                            ``(cc) that provides a wage 
                                        of at least 75 percent of the 
                                        State median hourly wage, as 
                                        calculated by the Bureau of 
                                        Labor Statistics on the basis 
                                        of the most recent Occupational 
                                        Employment and Wage Survey.''.
    (b) Conforming State Plan Amendment.--Section 402(a)(1)(B) of the 
Social Security Act (42 U.S.C. 602(a)(1)(B)) is amended by adding at 
the end the following:
                            ``(vii) The document shall describe any 
                        strategies and programs the State plans to use 
                        to address employment placement, retention, and 
                        advancement for recipients of assistance under 
                        the program, including placement into high-
                        demand jobs and whether such jobs are 
                        identified using labor market information.''.
    (c) Effective Date.--The amendments made by this section take 
effect on October 1, 2005.
[A]: Revises the mandatory work requirements of part A (Temporary Assistance for Needy Families) (TANF) of title IV of the Social Security Act with respect to the limitation on the number of persons in a state who may be treated as engaged in work by reason of participation in educational activities. Removes two-parent families from the formula for such limitation. Creates an exception to the limitation for education in preparation for sector-specific, high-skill occupations to meet employer demand.

Defines sector-specific, high-demand, high-skill occupation to meet employer demand as an occupation that: (1) has been identified by the state workforce investment board or by the state agency administering the state TANF program as within state needs with regard to current and projected employment opportunities in specific industry sectors; (2) requires occupational training; and (3) provides a wage of at least 75 percent of the state median hourly wage.


[Q]: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Intercity Passenger Rail Trust Fund 
Act of 1995''.

SEC. 2. INTERCITY PASSENGER RAIL TRUST FUND.

    (a) Establishment of Trust Fund.--Subchapter A of chapter 98 of the 
Internal Revenue Code of 1986 (relating to trust fund code) is amended 
by adding at the end the following new section:

``SEC. 9512. INTERCITY PASSENGER RAIL TRUST FUND.

    ``(a) Creation of Trust Fund.--There is established in the Treasury 
of the United States a trust fund to be known as the `Intercity 
Passenger Rail Trust Fund', consisting of such amounts as may be 
transferred or credited to the Trust Fund as provided in section 
9503(c)(7) or section 9602(b).
    ``(b) Expenditures From Trust Fund.--
            ``(1) In general.--Except as provided in paragraph (2), 
        amounts in the Intercity Passenger Rail Trust Fund shall be 
        available, as provided by appropriation Acts, to finance 
        qualified expenses of--
                    ``(A) the National Railroad Passenger Corporation, 
                and
                    ``(B) each eligible State, to the extent determined 
                under paragraph (3).
            ``(2) Direct spending amounts.--The following amounts in 
        the Intercity Passenger Rail Trust Fund are hereby appropriated 
        to finance qualified expenses:
                                                                 Amount
``Fiscal year:                                               Available:
    1996..........................................        $131,000,000 
    1997..........................................         663,000,000 
    1998..........................................         667,000,000 
    1999..........................................         670,000,000 
    2000..........................................         672,000,000.
            ``(3) Maximum amount of funds to eligible states.--Each 
        eligible State shall receive under this subsection an amount 
        equal to the lesser of--
                    ``(A) the State's qualified expenses for the fiscal 
                year, or
                    ``(B) the product of--
                            ``(i) \1/12\ of 1 percent of the lesser 
                        of--
                                    ``(I) the aggregate amounts 
                                transferred and credited to the 
                                Intercity Passenger Rail Trust Fund 
                                under subsection (a) for such fiscal 
                                year, or
                                    ``(II) the aggregate amounts 
                                appropriated from the Intercity 
                                Passenger Rail Trust Fund under this 
                                subsection for such fiscal year, and
                            ``(ii) the number of months such State was 
                        an eligible State in the preceding fiscal year.
        If the amount determined under subparagraph (B) exceeds the 
        amount under subparagraph (A) for any fiscal year, the amount 
        under subparagraph (B) for the following fiscal year shall be 
        increased by the amount of such excess.
    ``(c) Definitions.--For purposes of this section--
            ``(1) Qualified expenses.--The term `qualified expenses' 
        means expenses incurred, with respect to obligations made, 
        after December 31, 1995, and before October 1, 2000--
                    ``(A) in the case of--
                            ``(i) the National Railroad Passenger 
                        Corporation, for capital improvements in 
                        intercity passenger rail service, or
                            ``(ii) an eligible State, for capital 
                        improvements in intercity rail service, and
                    ``(B) certified by the Secretary of Transportation 
                as meeting the requirements of subparagraph (A).
            ``(2) Eligible state.--The term `eligible State' means any 
        State which does not receive intercity passenger rail service 
        from the National Railroad Passenger Corporation.
    ``(d) Termination.--The Secretary shall determine and retain, not 
later than October 1, 2000, the amount in the Intercity Passenger Rail 
Trust Fund necessary to pay any outstanding qualified expenses, and 
shall transfer any amount not so retained to the Mass Transit Account 
under section 9503(e).''
    (b) Transfers From Highway Trust Fund.--Section 9503(c) of the 
Internal Revenue Code of 1986 (relating to expenditures from Highway 
Trust Fund) is amended by adding at the end the following new 
paragraph:
            ``(7) Transfers from trust fund for intercity passenger 
        rail.--
                    ``(A) In general.--The Secretary shall transfer 
                from time to time from the Highway Trust Fund to the 
                Intercity Passenger Rail Trust Fund under section 9512 
                the intercity passenger rail portion of the amounts 
                appropriated to the Highway Trust Fund under subsection 
                (b) which are attributable to taxes under sections 4041 
                and 4081 imposed after December 31, 1995, and before 
                October 1, 2000.
                    ``(B) Intercity passenger rail portion.--For 
                purposes of subparagraph (A), the term `intercity 
                passenger rail portion' means the amount--
                            ``(i) determined at the rate of 0.5 cent 
                        for each gallon with respect to which tax was 
                        imposed under section 4041 or 4081, and
                            ``(ii) reduced (but not below zero) by the 
                        amount by which--
                                    ``(I) the outlays of the Mass 
                                Transit Account for the fiscal year 
                                with respect to which such tax was 
                                imposed, as estimated by the Secretary, 
                                exceed
                                    ``(II) the available funds in the 
                                Mass Transit Account for such fiscal 
                                year (as so estimated).''
    (c) Conforming Amendments.--
            (1) Section 9503(e)(2) of the Internal Revenue Code of 1986 
        (relating to transfers to mass transit account) is amended by 
        striking ``4081.'' and inserting ``4081 (for the period 
        beginning after December 31, 1995, and ending before October 1, 
        2000, an amount determined at the rate of 1.5 cents for each 
        such gallon, increased by the amount described in subsection 
        (c)(7)(B)(ii)).''.
            (2) The table of sections for subchapter A of chapter 98 of 
        such Code (relating to trust fund code) is amended by adding at 
        the end the following new item:

                              ``Sec. 9512. Intercity Passenger Rail 
                                        Trust Fund.''
    (d) Effective Date.--The amendments made by this section shall 
apply with respect to taxes imposed after December 31, 1995.

SEC. 3. DENIAL OF DEDUCTION FOR INTEREST ON LOANS WITH RESPECT TO 
              COMPANY-OWNED INSURANCE.

    (a) In General.--Paragraph (4) of section 264(a) of the Internal 
Revenue Code of 1986 (relating to certain amounts paid in connection 
with insurance contracts) is amended--
            (1) by inserting ``, or any endowment or annuity contracts 
        owned by the taxpayer covering any individual,'' after ``the 
        life of any individual'', and
            (2) by striking all that follows ``carried on by the 
        taxpayer'' and inserting a period.
    (b) Exception for Contracts Relating to Key Persons; Permissible 
Interest Rates.--Section 264 of the Internal Revenue Code of 1986 is 
amended--
            (1) by striking ``Any'' in subsection (a)(4) and inserting 
        ``Except as provided in subsection (d), any'', and
            (2) by adding at the end the following new subsection:
    ``(d) Special Rules for Application of Subsection (a)(4).--
            ``(1) Exception for key persons.--Subsection (a)(4) shall 
        not apply to any interest paid or accrued on any indebtedness 
        with respect to policies or contracts covering an individual 
        who is a key person to the extent that the aggregate amount of 
        such indebtedness with respect to policies and contracts 
        covering such individual does not exceed $50,000.
            ``(2) Interest rate cap on key persons and pre-1986 
        contracts.--No deduction shall be allowed by reason of 
        paragraph (1) or the last sentence of subsection (a) with 
        respect to interest paid or accrued for any month to the extent 
        the amount of such interest exceeds the amount which would have 
        been determined if the rate of interest for such month were the 
        rate of interest described as Moody's Corporate Bond Yield 
        Average-Monthly Average Corporates as published by Moody's 
        Investors Service, Inc., or any successor thereto, for such 
        month.
            ``(3) Key person.--For purposes of paragraph (1), the term 
        `key person' means an officer or 20-percent owner, except that 
        the number of individuals who may be treated as key persons 
        with respect to any taxpayer shall not exceed the greater of--
                    ``(A) 5 individuals, or
                    ``(B) the lesser of 5 percent of the total officers 
                and employees of the taxpayer or 25 individuals.
            ``(4) 20-percent owner.--For purposes of this subsection, 
        the term `20-percent owner' means--
                    ``(A) if the taxpayer is a corporation, any person 
                who owns directly 20 percent or more of the outstanding 
                stock of the corporation or stock possessing 20 percent 
                or more of the total combined voting power of all stock 
                of the corporation, or
                    ``(B) if the taxpayer is not a corporation, any 
                person who owns 20 percent or more of the capital or 
                profits interest in the employer.
            ``(5) Aggregation rules.--
                    ``(A) In general.--For purposes of paragraph (4)(A) 
                and applying the $50,000 limitation in paragraph (1)--
                            ``(i) all members of a controlled group 
                        shall be treated as 1 taxpayer, and
                            ``(ii) such limitation shall be allocated 
                        among the members of such group in such manner 
                        as the Secretary may prescribe.
                    ``(B) Controlled group.--For purposes of this 
                paragraph, all persons treated as a single employer 
                under subsection (a) or (b) of section 52 or subsection 
                (m) or (o) of section 414 shall be treated as members 
                of a controlled group.''
    (c) Effective Dates.--
            (1) In general.--The amendments made by this section shall 
        apply to interest paid or accrued after December 31, 1995.
            (2) Transition rule for existing indebtedness.--
                    (A) In general.--In the case of indebtedness 
                incurred before January 1, 1996, the amendments made by 
                this section shall not apply to qualified interest paid 
                or accrued on such indebtedness after October 13, 1995, 
                and before January 1, 2001.
                    (B) Qualified interest.--For purposes of 
                subparagraph (A), the qualified interest with respect 
                to any indebtedness for any month is the amount of 
                interest which would be paid or accrued for such month 
                on such indebtedness if the lesser of the following 
                rates of interest were used for such month:
                            (i) The rate of interest specified under 
                        the terms of the indebtedness as in effect on 
                        October 13, 1995 (and without regard to 
modification of such terms after such date).
                            (ii) The applicable percentage rate of 
                        interest described as Moody's Corporate Bond 
                        Yield Average-Monthly Average Corporates as 
                        published by Moody's Investors Service, Inc., 
                        or any successor thereto, for such month.
                    (C) Applicable percentage.--For purposes of 
                subparagraph (B), the applicable percentage is as 
                follows:

        For calendar year:
                                                     The percentage is:
                1995 or 1996.........................  100 percent     
                1997.................................   95 percent     
                1998.................................   90 percent     
                1999.................................   85 percent     
                2000.................................   80 percent.    
            (3) Special rule for grandfathered contracts.--This section 
        shall not apply to any contract purchased on or before June 20, 
        1986, except that--
                    (A) paragraph (2) shall apply to interest on 
                indebtedness incurred in connection with such contract 
                which is paid or accrued after October 13, 1995, and 
                before January 1, 1996, and
                    (B) section 264(d)(2) of the Internal Revenue Code 
                of 1986 (as added by subsection (b)) shall apply to 
                such interest paid or accrued after December 31, 1995.
    (d) Spread of Income Inclusion on Surrender, Etc. of Contracts.--
            (1) In general.--If any amount is received under any life 
        insurance policy or endowment or annuity contract described in 
        paragraph (4) of section 264(a) of the Internal Revenue Code of 
        1986--
                    (A) on the complete surrender, redemption, or 
                maturity of such policy or contract during calendar 
                year 1996, 1997, 1998, 1999, 2000, or 2001, or
                    (B) in full discharge during any such calendar year 
                of the obligation under the policy or contract which is 
                in the nature of a refund of the consideration paid for 
                the policy or contract,
        then (in lieu of any other inclusion in gross income) such 
        amount shall be includible in gross income ratably over the 4-
        taxable year period beginning with the taxable year such amount 
        would (but for this paragraph) be includible. The preceding 
        sentence shall only apply to the extent the amount is 
        includible in gross income for the taxable year in which the 
        event described in subparagraph (A) or (B) occurs.
            (2) Special rules for applying section 264.--A contract 
        shall not be treated--
                    (A) as failing to meet the requirement of section 
                264(c)(1) of the Internal Revenue Code of 1986, or
                    (B) as a single premium contract under section 
                264(b)(1) of such Code,
        solely by reason of an occurrence described in subparagraph (A) 
        or (B) of paragraph (1) of this subsection or solely by reason 
        of no additional premiums being received under the contract by 
        reason of a lapse occurring after October 13, 1995.
            (3) Special rule for deferred acquisition costs.--In the 
        case of the occurrence of any event described in subparagraph 
        (A) or (B) of paragraph (1) of this subsection with respect to 
        any policy or contract--
                    (A) section 848 of the Internal Revenue Code of 
                1986 shall not apply to the unamortized balance (if 
                any) of the specified policy acquisition expenses 
                attributable to such policy or contract immediately 
                before the insurance company's taxable year in which 
                such event occurs, and
                    (B) there shall be allowed as a deduction to such 
                company for such taxable year under chapter 1 of such 
                Code an amount equal to such unamortized balance.
[A]:
Intercity Passenger Rail Trust Fund Act of 1995 - Amends the Internal Revenue Code to establish the Intercity Passenger Rail Trust Fund to finance qualified expenses of:  (1) the National Railroad Passenger Corporation; and (2) eligible States.  Makes appropriations in specified amounts for FY 1996 through FY 2000 to such Fund.  Directs the Secretary of Transportation, by October 1, 2000, to determine and retain the amount in the Intercity Passenger Rail Fund necessary to pay any outstanding qualified expenses, and to transfer any amount not so retained to the Mass Transit Fund. 
Authorizes the Secretary to transfer from time to time from the Highway Trust Fund to the Intercity Passenger Rail Trust Fund the intercity passenger rail portion of specified funds appropriated to the Highway Trust Fund. 
Prohibits a deduction for interest paid on loans with respect to any endowment or annuity insurance contracts owned by the taxpayer covering any individual.