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

    This Act may be cited as the ``Improving Physician Access in 
Teaching Hospitals (PATH) Act of 2011''.

SEC. 2. DISTRIBUTION OF ADDITIONAL RESIDENCY SLOTS.

    Section 1886(h) of the Social Security Act (42 U.S.C. 1395ww(h)) is 
amended--
            (1) in paragraph (7)(E), by inserting ``paragraph (9),'' 
        after ``paragraph (8),''; and
            (2) by adding at the end the following:
            ``(9) Distribution of additional residency positions.--
                    ``(A) Reductions in limit based on unused 
                positions.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), if a hospital's resident level (as 
                        defined in paragraph (7)(C)(i)) for each of the 
                        5 most recent cost reporting periods (ending 
                        before the date of the enactment of this 
                        paragraph) of the hospital for which a cost 
                        report has been settled (or, if not, submitted 
                        subject to audit) as determined by the 
                        Secretary is less than the otherwise applicable 
                        resident limit (as defined in paragraph 
                        (8)(H)(iii)), effective for portions of cost 
                        reporting periods occurring on or after the 
                        paragraph (9) effective date (as defined in 
                        subparagraph (E)), the otherwise applicable 
                        resident limit shall be reduced by the 
                        difference between such otherwise applicable 
                        resident limit and the highest such reference 
                        resident level for any of such 5 cost reporting 
                        periods.
                            ``(ii) Exception.--Clause (i) shall not 
                        apply to--
                                    ``(I) a hospital located in a rural 
                                area with fewer than 250 beds; or
                                    ``(II) a hospital that has had in 
                                effect a voluntary residency reduction 
                                plan under paragraph (6) or pursuant to 
                                section 402 of Public Law 90-248.
                    ``(B) Requirements for additional residency 
                slots.--
                            ``(i) In general.--The Secretary shall 
                        increase the otherwise applicable resident 
                        limit for hospitals that submit an application 
                        under this subparagraph by such number as the 
                        Secretary may approve for portions of cost 
                        reporting periods occurring on or after the 
                        paragraph (9) effective date. The aggregate 
                        number of increases in the otherwise applicable 
                        resident limit under this subparagraph shall be 
                        equal to the sum of--
                                    ``(I) the aggregate reduction in 
                                such limits attributable to 
                                subparagraph (A) (as estimated by the 
                                Secretary); and
                                    ``(II) 1,000 for portions of cost 
                                reporting periods occurring during the 
                                12-month period beginning on the 
                                paragraph (9) effective date, 1,000 
                                additional positions for portions of 
                                cost reporting periods occurring during 
                                the 12-month period beginning 1 year 
                                after such effective date, 1,000 
                                additional positions for portion of 
                                cost reporting period occurring during 
                                the 12-month period beginning 2 years 
                                after such effective date, and such 
                                number of additional positions for 
                                portions of the 2 subsequent cost 
                                reporting periods as the Secretary may 
                                determine necessary to support 
                                residency training programs in 
                                specialities that exceed 3 years.
                            ``(ii) Consideration in redistribution.--In 
                        determining for which hospitals the increase in 
                        the otherwise applicable resident limit is 
                        provided under this subparagraph, the Secretary 
                        shall take into account--
                                    ``(I) data provided by the Health 
                                Resources and Services Administration 
                                as a national standard to exhibit a 
                                specific demand in the health care 
                                workforce, as well as the 
                                Administration's projected demand and 
                                supply for physicians in the specialty 
                                of medicine involved; and
                                    ``(II) the demonstrated likelihood 
                                of the hospital filling positions made 
                                available under this paragraph within 
                                the first 3 cost reporting periods 
                                beginning on or after the paragraph (9) 
                                effective date.
                        The Secretary shall give special consideration 
                        for up to 25 additional positions in the case 
                        of a hospital that demonstrates the likelihood 
                        of filing such positions during the first cost 
                        reporting period beginning on or after such 
                        effective date.
                            ``(iii) Limitation.--In no case shall the 
                        number of additional positions made available 
                        to a hospital under this paragraph exceed 25 in 
                        the first cost reporting period or 75 for all 
                        cost reporting periods.
                    ``(C) Priority for additional positions resulting 
                from hospital closures.--With respect to additional 
                positions described in subparagraph (B)(i)(I) which are 
                derived from a reduction in limits under subparagraph 
                (A) for a hospital that closed (in this subparagraph 
                referred to as a `closed hospital'), the Secretary 
                shall distribute the increase to hospitals in the 
                following priority order:
                            ``(i) First, to other hospitals for the 
                        program or programs under which the hospital 
                        had a cooperative arrangement with the closed 
                        hospital under which residents in the graduate 
                        medical education program of the closed 
                        hospital also rotated through the other 
                        hospital.
                            ``(ii) Second, to other hospitals that are 
                        members of the same affiliated group of 
                        hospitals as the closed hospital.
                            ``(iii) Third, to other hospitals that are 
                        located in the same or contiguous core-based 
                        statistical area as the closed hospital.
                    ``(D) Preference.--After applying subparagraph (C) 
                and the special consideration under subparagraph (B), 
                in determining for which hospitals the increase in the 
                otherwise applicable resident limit is provided under 
                subparagraph (B), the Secretary shall give preference 
                to hospitals--
                            ``(i) that submit an application for new 
                        residents in primary care and geriatric 
                        medicine and in other specialties as determined 
                        to be in demand under subparagraph (B)(ii)(I); 
                        and
                            ``(ii) that emphasize training in community 
                        health centers and other community-based or 
                        hospital-sponsored clinics, and private 
                        physicians' offices, including physician 
                        groups.
                    ``(E) Paragraph (9) effective date defined.--In 
                this paragraph, the term `paragraph (9) effective date' 
                means July 1 of the year that begins after the date of 
                the enactment of this paragraph.
                    ``(F) Affiliation.--The provisions of this 
                paragraph shall be applied to hospitals which are 
                members of the same affiliated group (as defined by the 
                Secretary under paragraph (4)(H)(ii)) and the reference 
                resident level for each such hospital with respect to 
                the cost reporting period that results in the smallest 
                difference between the reference resident level and the 
                otherwise applicable resident limit.''.

SEC. 3. EXPANDING PRIMARY CARE BONUS TO CERTAIN UNDERSERVED 
              SPECIALTIES.

    (a) In General.--Section 1833(x)(2)(A) of the Social Security Act 
(42 U.S.C. 1395l(x)(2)(A)) is amended--
            (1) in clause (i)--
                    (A) by striking ``or'' at the end of subclause (I);
                    (B) by striking ``and'' at the end of subclause 
                (II) and inserting ``or''; and
                    (C) by adding at the end the following new 
                subclause:
                                    ``(III) is a physician (as 
                                described in section 1861(r)(1)) who is 
                                in an underserved specialty, such as 
                                psychiatry or neurology, as specified 
                                by the Secretary, or other specialty 
                                identified by the Secretary to be in 
                                demand; and''; and
            (2) in clause (ii), by inserting after ``(ii)'' the 
        following: ``in the case of an individual described in 
        subclause (I) or (II) of clause (i),''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply to payments for items and services furnished on or after January 
1, 2012.

SEC. 4. SMALL PHYSICIAN PRACTICE RESIDENCY CREDIT.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to business related 
credits) is amended by adding at the end the following new section:

``SEC. 45S. SMALL PHYSICIAN PRACTICE RESIDENCY CREDIT.

    ``(a) In General.--For purposes of section 38, the amount of the 
small physician practice residency credit determined under this section 
for any taxable year with respect to a qualified small physician 
practice is the sum of the following:
            ``(1) Overall amount.--The per resident dollar amount 
        multiplied by the number of qualified teaching hospital 
        residents who provide services to, and are trained by, such 
        practice during the taxable year and who are in their first, 
        second, or third post-graduate year of medical residency.
            ``(2) Bonus.--The sum of--
                    ``(A) 50 percent of the per resident dollar amount 
                multiplied by the number of such residents who are in 
                their first post-graduate year of medical residency 
                during the taxable year; and
                    ``(B) 25 percent of the per resident dollar amount 
                multiplied by the average number of such residents who 
                are not counted under subparagraph (A) and are in their 
                second post-graduate year during the taxable year.
    ``(b) Qualified Small Physician Practice.--For purposes of this 
section, the term `qualified small physician practice' means any trade 
or business of providing physicians' services (as defined in section 
1861(q) of the Social Security Act), which may be a community health 
center, that is owned and operated by a doctor of medicine or 
osteopathy if fewer than 50 individuals are employed in such trade or 
business (including new training sites) and the trade or business 
includes as part of the practice the training of doctors of medicine or 
osteopathy in a rotation covering at least 6 months in the taxable 
year. All persons treated as a single employer under subsection (a) or 
(b) or section 52 or subsection (m) or (o) of section 414 shall be 
treated as a single trade or business for purposes of the preceding 
sentence.
    ``(c) Qualified Teaching Hospital Residents.--For purposes of this 
section, the term `qualified teaching hospital resident' means any 
resident (within the meaning of subparagraph (I) of section 1886(h)(5) 
of the Social Security Act) in an approved medical residency training 
program (as defined in subparagraph (A) of such section) which provides 
services to the qualified small physician practice (while utilizing the 
technologies and supplies of such practice) for a period not less 
than--
            ``(1) 4 weeks in the case of a primary care resident (as 
        defined in subparagraph (H) of such section); or
            ``(2) 2 weeks in the case of any other resident.
    ``(d) Per Resident Dollar Amount.--For purposes of this section, 
the term `per resident dollar amount' means, in the case of a qualified 
small physician practice that includes as part of the practice the 
training of doctors of medicine or osteopathy in a rotation covering--
            ``(1) at least 6 months but less than 9 months in the 
        taxable year, $2,500; or
            ``(2) at least 9 months in the taxable year, $3,000.
    ``(e) Residents Not Taken Into Account More Than Once.--A qualified 
teaching hospital resident shall be taken into account under subsection 
(a) for the taxable in which the period described in subsection (c) 
ends and shall not be so taken into account for any other taxable 
year.''.
    (b) Credit Allowed as Part of General Business Credit.--Section 
38(b) of such Code (defining current year business credit) is amended 
by striking ``plus'' at the end of paragraph (35), by striking the 
period at the end of paragraph (36) and inserting ``, plus'', and by 
adding at the end the following new paragraph:
            ``(37) the small physician practice residency credit 
        determined under section 45S(a).''.
    (c) Conforming Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of such Code is amended by adding 
at the end the following new item:

``Sec. 45S. Small physician practice residency credit.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SOLUTION: Improving Physician Access in Teaching Hospitals (PATH) Act of 2011 - Amends title XVIII (Medicare) of the Social Security Act with respect to distribution of additional resident positions as they affect calculation of payments for direct graduate medical education (DME) costs.

States that, if a hospital's resident level for each of the five most recent cost reporting periods is less than the otherwise applicable resident limit, then the otherwise applicable resident limit shall be reduced by the difference between it and the highest reference resident level for any of those five cost reporting periods. Excepts from this reduction requirement a hospital: (1) located in a rural area with fewer than 250 beds, or (2) that has had in effect a voluntary residency reduction plan.

Requires the Secretary of Health and Human Services (HHS) to increase the otherwise applicable resident limit (create additional residency slots) for applicant hospitals according to a specified formula that takes into account the aggregate reduction in limits attributable to this Act.

Expands the primary care bonus to certain underserved specialties, such as psychiatry or neurology.

Amends the Internal Revenue Code to allow a small physician practice residency credit.

PROBLEM: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Veterans Emergency Room Relief Act 
of 2017''.

SEC. 2. COVERAGE OF URGENT CARE AND EMERGENCY ROOM TREATMENT OF 
              VETERANS BY THE DEPARTMENT OF VETERANS AFFAIRS.

    (a) Payment of Reasonable Costs of Urgent Care.--
            (1) In general.--Subchapter III of chapter 17 of title 38, 
        United States Code, is amended by inserting after section 1725 
        the following new section:
``Sec. 1725A. Payment of reasonable costs of urgent care
    ``(a) In General.--The Secretary shall enter into contracts with 
urgent care providers under which the Secretary pays the urgent care 
provider the reasonable costs of urgent care provided to eligible 
veterans by the urgent care provider.
    ``(b) Eligible Veterans.--A veteran is an eligible veteran for 
purposes of this section if the veteran--
            ``(1) is enrolled in the system of annual patient 
        enrollment established and operated under section 1705(a) of 
        this title; and
            ``(2) has received health care under this chapter during 
        the two-year period preceding the date on which the veteran 
        receives urgent care under this section.
    ``(c) Cost Sharing.--(1) Except as provided in paragraph (2), the 
Secretary shall establish a cost-sharing amount that eligible veterans 
shall pay to the Secretary to receive urgent care from an urgent care 
provider under this section.
    ``(2) The cost-sharing amount established under paragraph (1) shall 
not apply to an eligible veteran--
            ``(A) if the eligible veteran is admitted to a hospital for 
        treatment or observation after receiving urgent care under this 
        section; or
            ``(B) if the eligible veteran is receiving urgent care 
        under this section for the treatment of a service-connected 
        disability or condition.
    ``(d) Treatment of Department.--Notwithstanding the coverage of an 
eligible veteran under a health-plan contract, the Secretary shall be 
considered the primary payer for any urgent care provided to the 
eligible veteran under this section.
    ``(e) Types of Providers.--The Secretary shall ensure that all 
types of urgent care providers, including local urgent care providers, 
have an opportunity to enter into a contract with the Secretary under 
this section.
    ``(f) Definitions.--In this section:
            ``(1) The term `health-plan contract' has the meaning given 
        that term in section 1725(f) of this title.
            ``(2) The term `urgent care' has the meaning given that 
        term by the Secretary.
            ``(3) The term `urgent care provider' means a health care 
        provider that provides urgent care at a non-Department 
        facility.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 17 of such title is amended by inserting 
        after the item relating to section 1725 the following new item:

``1725A. Payment of reasonable costs of urgent care.''.
            (3) Sense of congress.--It is the sense of Congress that 
        the Secretary of Veterans Affairs is encouraged to contract 
        with urgent care centers that are accredited by a nationally 
        recognized accrediting body or organization to carry out 
        section 1725A of title 38, United States Code, as added by 
        paragraph (1).
    (b) Establishment of Cost-Sharing Amount for Veterans Receiving 
Emergency Room Care From Department.--
            (1) In general.--Except as provided in paragraph (2), the 
        Secretary of Veterans Affairs shall establish a cost-sharing 
        amount that veterans shall pay to the Secretary to receive care 
        at an emergency room of the Department of Veterans Affairs.
            (2) Exception.--The cost-sharing amount established under 
        paragraph (1) shall not apply to a veteran if the veteran--
                    (A) receives care for a service-connected (as 
                defined in section 101 of title 38, United States Code) 
                disability or condition;
                    (B) meets a hardship exception established by the 
                Secretary for purposes of this subsection; or
                    (C) is admitted to a hospital for treatment or 
                observation after receiving care at an emergency room 
                of the Department.
    (c) Limitation on Cost-Sharing Amounts.--The Secretary of Veterans 
Affairs may not require a veteran to pay multiple cost-sharing amounts 
if the veteran seeks urgent care under section 1725A of title 38, 
United States Code, as added by subsection (a)(1), and care at an 
emergency room of the Department of Veterans Affairs for the same 
condition during a period determined by the Secretary for purposes of 
this subsection.
    (d) Report on Use by Veterans of Urgent and Emergency Room Care.--
Not later than two years after the date of the enactment of this Act, 
and not less frequently than once every two years thereafter, the 
Secretary of Veterans Affairs shall submit to the Committee on 
Veterans' Affairs of the Senate and the Committee on Veterans' Affairs 
of the House of Representatives a report on the use by veterans 
eligible for health care under the laws administered by the Secretary 
of--
            (1) urgent care facilities; and
            (2) emergency room facilities of the Department of Veterans 
        Affairs.

SOLUTION: Veterans Emergency Room Relief Act of 2017 This bill directs the Department of Veterans Affairs (VA) to enter into contracts under which the VA pays health care providers the reasonable costs of urgent care provided to eligible veterans at non-VA facilities. An &quot;eligible veteran&quot; is one who: (1) is enrolled in the VA health care system, and (2) has received health care through the VA during the two years preceding the date on which the veteran receives urgent care. The VA shall establish a cost-sharing amount that a veteran shall pay to the VA to receive such urgent care. Such amount shall not apply to a veteran who: (1) is admitted to a hospital for treatment or observation after receiving urgent care, or (2) is receiving urgent care for the treatment of a service-connected disability or condition.  The VA shall: (1) be considered the primary payer for the urgent care provided, and (2) ensure that all types of urgent care providers have an opportunity to enter into such a contract.  The VA also shall establish a cost-sharing amount that veterans shall pay to receive care at a VA emergency room. Such amount shall not apply to a veteran who: (1) is receiving care for a service-connected disability or condition, (2) meets a hardship exception, or (3) is admitted to a hospital for treatment or observation after receiving care at a VA emergency room.  The VA may not require a veteran to pay multiple cost-sharing amounts if the veteran seeks urgent care under this bill and care at a VA emergency room for the same condition during a period determined by the VA.  The VA shall report every two years on the use by veterans of urgent care facilities and of VA emergency room facilities.

PROBLEM: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Individual Investment Account Act of 
1991''.

SEC. 2. ESTABLISHMENT OF INDIVIDUAL INVESTMENT ACCOUNTS.

    (a) In General.--Part VII of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 (relating to additional itemized 
deductions for individuals) is amended by redesignating section 220 as 
section 221 and by inserting after section 219 the following new 
section:

``SEC. 220. INDIVIDUAL INVESTMENT ACCOUNTS.

    ``(a) Deduction Allowed.--In the case of an individual, there shall 
be allowed as a deduction an amount equal to the aggregate amount paid 
in cash for the taxable year by such individual to an individual 
investment account established for the benefit of such individual.
    ``(b) Limitation.--The amount allowable as a deduction under 
subsection (a) to any individual for any taxable year shall not exceed 
$2,500.
    ``(c) Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Individual investment account.--The term `individual 
        investment account' means a trust created or organized in the 
        United States for the exclusive benefit of an individual, but 
        only if the written governing instrument creating the trust 
        meets the following requirements:
                    ``(A) No contribution will be accepted unless it is 
                in cash.
                    ``(B) The trustee is a bank (as defined in section 
                408(n)) or another person who demonstrates to the 
                satisfaction of the Secretary that the manner in which 
                that person will administer the trust will be 
                consistent with the requirements of this section.
                    ``(C) No part of the trust assets will be invested 
                in life insurance contracts or in any collectible (as 
                defined in section 408(m)).
                    ``(D) The assets of the trust will not be 
                commingled with other property except in a common trust 
                fund or common investment fund.
            ``(2) Time when contributions deemed made.--A taxpayer 
        shall be deemed to have made a contribution on the last day of 
        a taxable year if the contribution is made on account of such 
        taxable year and is made not later than the time prescribed by 
        law for filing the return for such taxable year (not including 
        extensions thereof).
    ``(d) Tax Treatment of Distributions.--
            ``(1) In general.--Except as otherwise provided in this 
        subsection, any amount distributed out of an individual 
        investment account shall be included in gross income by the 
        distributee unless--
                    ``(A) such amount is treated as a distribution of a 
                contribution to such account for which no deduction was 
                allowed under this section, or
                    ``(B) such amount is part of a qualified 1st-time 
                homebuyer distribution.
            ``(2) Ordering rules.--Distributions (other than qualified 
        1st-time homebuyer distributions) from an individual investment 
        account shall be treated as made--
                    ``(A) first from contributions to such account for 
                which no deduction was allowed under this section; and
                    ``(B) then from other amounts.
        Any qualified 1st-time homebuyer distribution shall be treated 
        as made first from amounts referred to in subparagraph (B) and 
        then from amounts referred to in subparagraph (A).
            ``(3) Qualified 1st-time homebuyer distribution.--For 
        purposes of this subsection--
                    ``(A) In general.--The term `qualified 1st-time 
                homebuyer distribution' means any payment or 
                distribution received by a 1st-time homebuyer from an 
                individual investment account to the extent such 
                payment or distribution is used by the individual 
                within 60 days to pay qualified acquisition costs with 
                respect to a principal residence for such individual.
                    ``(B) Dollar limitation.--The aggregate amount 
                which may be treated as qualified 1st-time homebuyer 
                distributions for all taxable years shall not exceed 
                $15,000.
                    ``(C) Basis reduction.--The basis of any principal 
                residence described in subparagraph (A) shall be 
                reduced by the amount of any qualified 1st-time 
                homebuyer distribution which would be includible in 
                gross income if the last sentence of paragraph (2)(B) 
                did not apply.
                    ``(D) Definitions.--For purposes of this 
                paragraph--
                            ``(i) Qualified acquisition costs.--The 
                        term `qualified acquisition costs' means the 
                        costs of acquiring, constructing, or 
                        reconstructing a residence. Such term includes 
                        any usual or reasonable settlement, financing, 
                        or other closing costs.
                            ``(ii) 1st-time homebuyer.--The term `1st-
                        time homebuyer' means any individual if such 
                        individual had no present ownership interest in 
                        a principal residence during the 3-year period 
                        ending on the date of acquisition of the 
                        principal residence to which this paragraph 
                        applies.
                            ``(iii) Principal residence.--The term 
                        `principal residence' has the same meaning as 
                        when used in section 1034.
            ``(4) Transfer of account incident to divorce.--The 
        transfer of an individual's interest in an individual 
        investment account to his former spouse under a divorce decree 
        or under a written instrument incident to a divorce shall not 
        be considered a taxable transfer made by such individual 
        notwithstanding any other provision of this subtitle, and such 
        interest at the time of the transfer shall be treated as an 
        individual investment account of such spouse and not of such 
        individual. Thereafter such account shall be treated, for 
        purposes of this subtitle, as maintained for the benefit of 
        such spouse.
    ``(e) Tax Treatment of Accounts.--
            ``(1) Exemption from tax.--An individual investment account 
        shall be exempt from taxation under this subtitle unless such 
        account has ceased to be such an account by reason of paragraph 
        (2). Notwithstanding the preceding sentence, any such account 
        shall be subject to the taxes imposed by section 511 (relating 
        to imposition of tax on unrelated business income of 
        charitable, etc. organizations).
            ``(2) Loss of exemption of account where individual engages 
        in prohibited transaction.--
                    ``(A) In general.--If, during any taxable year of 
                the individual for whose benefit the individual 
                investment account is established, that individual 
                engages in any transaction prohibited by section 4975 
                with respect to the account, the account shall cease to 
                be an individual investment account as of the first day 
                of that taxable year.
                    ``(B) Account treated as distributing all its 
                assets.--In any case in which any account ceases to be 
                an individual investment account by reason of 
                subparagraph (A) on the first day of any taxable year, 
                paragraph (1) of subsection (d) shall be applied as if 
                there were a distribution on such first day in an 
                amount equal to the fair market value (on such first 
                day) of all assets in the account (on such first day).
            ``(3) Effect of pledging account as security.--If, during 
        any taxable year, an individual for whose benefit an individual 
        investment account is established uses the account or any 
        portion thereof as security for a loan, the portion so used 
        shall be treated as distributed to that individual.
            ``(4) Rollover contributions.--Paragraph (1) shall not 
        apply to any amount paid or distributed out of an individual 
        investment account to the individual for whose benefit the 
        account is maintained if such amount is paid into another 
        individual investment account for the benefit of such 
        individual not later than the 60th day after the day on which 
        he receives the payment or distribution.
    ``(f) Cost-of-Living Adjustment.--
            ``(1) In general.--In the case of any taxable year 
        beginning in a calendar year after 1992, each of the dollar 
        amounts contained in subsections (b) and (d)(3)(B) shall be 
        increased by an amount equal to--
                    ``(A) such dollar amount, multiplied by
                    ``(B) the cost-of-living adjustment determined 
                under section 1(f)(3) for the calendar year in which 
                the taxable year begins, by substituting `1991' for 
                `1989' in subparagraph (B) thereof.
            ``(2) Rounding.--If any dollar amount (as increased under 
        paragraph (1)) is not a multiple of $10, such dollar amount 
        shall be increased to nearest multiple of $10 (or, if such 
        dollar amount is a multiple of $5 and not of $10, such dollar 
        amount shall be increased to next higher multiple of $10).
    ``(g) Custodial Accounts.--For purposes of this section, a 
custodial account shall be treated as a trust if the assets of such 
account are held by a bank (as defined in section 408(n)) or another 
person who demonstrates, to the satisfaction of the Secretary, that the 
manner in which he will administer the account will be consistent with 
the requirements of this section, and if the custodial account would, 
except for the fact that it is not a trust, constitute an individual 
investment account described in subsection (c). For purposes of this 
title, in the case of a custodial account treated as a trust by reason 
of the preceding sentence, the custodian of such account shall be 
treated as the trustee thereof.
    ``(h) Reports.--The trustee of an individual investment account 
shall make such reports regarding such account to the Secretary and to 
the individual for whose benefit the account is maintained with respect 
to contributions, distributions, and such other matters as the 
Secretary may require under regulations. The reports required by this 
subsection shall be filed at such time and in such manner and furnished 
to such individuals at such time and in such manner as may be required 
by those regulations.''.
    (b) Deduction Allowed in Arriving at Adjusted Gross Income.--
Subsection (a) of section 62 of such Code (defining adjusted gross 
income) is amended by adding at the end thereof the following new 
paragraph:
            ``(14) Individual investment account contributions.--The 
        deduction allowed by section 220 (relating to individual 
        investment accounts).''.
    (c) Nonrecognition of Gain on Sale of Principal Residence Where 
Amount Equal to Otherwise Taxable Gain Deposited Into Individual 
Investment Account.--Part III of subchapter B of chapter 1 of such Code 
is amended by inserting after section 121 the following new section:

``SEC. 121A. EXCLUSION OF GAIN FROM SALE OF PRINCIPAL RESIDENCE IF 
              REINVESTMENT IN INDIVIDUAL INVESTMENT ACCOUNT.

    ``(a) General Rule.--Gross income does not include gain from the 
sale or exchange of property if, during the 5-year period ending on the 
date of the sale or exchange, such property has been owned and used by 
the taxpayer as his principal residence for periods aggregating 3 years 
or more.
    ``(b) Limitation.--The amount of gain excluded from gross income 
under subsection (a) shall not exceed the amount paid in cash (during 
the 1-year period beginning on the date of the sale or exchange) to an 
individual investment account (as defined in section 220(c)) 
established for the benefit of the taxpayer or his spouse.
    ``(c) Certain Rules On Ownership and Use To Apply.--Rules similar 
to the rules of section 121(d) shall apply for purposes of determining 
ownership and use under this section.''.
    (d) Tax on Prohibited Transactions.--Section 4975 of such Code 
(relating to prohibited transactions) is amended--
            (1) by adding at the end of subsection (c) the following 
        new paragraph:
            ``(4) Special rule for individual investment accounts.--An 
        individual for whose benefit an individual investment account 
        is established shall be exempt from the tax imposed by this 
        section with respect to any transaction concerning such account 
        (which would otherwise be taxable under this section) if, with 
        respect to such transaction, the account ceases to be an 
        individual investment account by reason of the application of 
        section 220(e)(2)(A) to such account.''; and
            (2) by inserting ``or an individual investment account 
        described in section 220(c)'' in subsection (e)(1) after 
        ``described in section 408(a)''.
    (e) Failure To Provide Reports on Individual Investment Accounts.--
Section 6693 of such Code (relating to failure to provide reports on 
individual retirement account or annuities) is amended--
            (1) by inserting ``or on individual investment accounts'' 
        after ``annuities'' in the heading of such section; and
            (2) by adding at the end of subsection (a) the following: 
        ``The person required by section 220(h) to file a report 
        regarding an individual investment account at the time and in 
        the manner required by such section shall pay a penalty of $50 
        for each failure unless it is shown that such failure is due to 
        reasonable cause.''.
    (f) Adjustment of Basis of Residence Acquired Through Use of 
Account.--Subsection (a) of section 1016 of such Code is amended by 
striking ``and'' at the end of paragraph (23), by striking the period 
at the end of paragraph (24) and inserting ``; and'', and by adding at 
the end thereof the following new paragraph:
            ``(25) to the extent provided in section 220(d)(3)(C), in 
        the case of a residence the acquisition of which was made in 
        whole or in part with funds from an individual investment 
        account.''.
    (g) Clerical Amendments.--
            (1) The table of sections for part III of subchapter B of 
        chapter 1 of such Code is amended by inserting after the item 
        relating to section 121 the following new item:

``Sec. 121A. Exclusion of gain from sale of principal residence if 
                            reinvestment in individual investment 
                            account.''.
            (2) The table of sections for part VII of subchapter B of 
        chapter 1 of such Code is amended by striking the item relating 
        to section 220 and inserting the following:

``Sec. 220. Individual investment accounts.
``Sec. 221. Cross reference.''.
            (3) The table of sections for subchapter B of chapter 68 of 
        such Code is amended by striking the item relating to section 
        6693 and inserting the following:

``Sec. 6693. Failure to provide reports on individual retirement 
                            accounts or annuities or on individual 
                            investment accounts.''.
    (h) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1991.

SOLUTION:
Individual Investment Account Act of 1991 - Amends the Internal Revenue Code to allow a deduction for amounts contributed to individual investment accounts, limited to $2,500.  Allows tax-free distributions, limited to $15,000 for all taxable years, from such accounts for use in the purchase of a principal residence by a first-time homebuyer.  Makes such accounts tax-exempt unless the individual engages in prohibited transactions.  Adjusts dollar limitations under this Act for inflation.  Allows such deduction in determining adjusted gross income. 
Excludes from gross income gain from the sale or exchange of property if, during the five-year period ending on the date of the sale or exchange, such property has been owned and used by the taxpayer as a principal residence for periods aggregating three years or more.  Limits such exclusion to the amount paid to an individual investment account during the one-year period beginning on the date of the sale or exchange. 
Provides for adjusting the basis of a residence acquired through the use of an individual investment account.