instruction:
In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
question:
on the Budget.--The last 
sentence of section 301(a) of the Congressional Budget Act of 1974 is 
amended by inserting before the period the following: ``, but shall 
separately set forth an estimate of benefit payments under the old-age, 
survivors, and disability insurance programs under title II of the 
Social Security Act for the fiscal year and each of the two ensuing 
fiscal years''.
    (b) Protection of OASDI Trust Funds.--Section 13302 of the Budget 
Enforcement Act of 1990 is amended by inserting at the end the 
following:
    ``(d) Point of Order.--It shall not be in order in the House of 
Representatives to consider any bill or joint resolution, as reported, 
amendment, or conference report the enactment of which would provide an 
appropriation for a fiscal year for the expenses of administering the 
old-age, survivors, and disability insurance programs under title II of 
the Social Security Act in excess of 1.5 percent of the estimate of 
benefit payments under those programs for that fiscal year set forth in 
the most recently agreed to concurrent resolution on the budget.''.

SEC. 3. TECHNICAL CORRECTIONS RELATED TO OASDI IN THE OMNIBUS BUDGET 
              RECONCILIATION ACT OF 1990.

    (a) Amendments Related to Provisions in Section 5103(b) Relating to 
Disabled Widows.--Section 223(f)(2) of the Social Security Act (42 
U.S.C. 423(f)(2)) is amended--
            (1) in subparagraph (A), by striking ``(in a case to which 
        clause (ii)(II) does not apply)''; and
            (2) by striking subparagraph (B)(ii) and inserting the 
        following:
                            ``(ii) the individual is now able to engage 
                        in substantial gainful activity; or''.
    (b) Amendments Related to Provisions in Section 5105(d) Relating to 
Representative Payees.--Section 5105(d)(1)(A) of the Omnibus Budget 
Reconciliation Act of 1990 (Public Law 101-508) is amended--
            (1) by striking ``Section 205(j)(5)'' and inserting 
        ``Section 205(j)(6)''; and
            (2) by redesignating the paragraph (5) as amended thereby 
        as paragraph (6).
    (c) Amendments Related to Provisions in Section 5106 Relating to 
Coordination of Rules Under Titles II and XVI Governing Fees for 
Representatives of Claimants With Entitlements Under Both Titles.--
            (1) Calculation of fee of claimant's representative based 
        on amount of past-due supplemental security income benefits 
        after application of windfall offset provision.--Section 
        1631(d)(2)(A)(i) of the Social Security Act (as amended by 
        section 5106(a)(2) of the Omnibus Budget Reconciliation Act of 
        1990) (42 U.S.C. 1383(d)(2)(A)(i)) is amended to read as 
        follows:
            ``(i) by substituting, in subparagraphs (A)(ii)(I) and 
        (C)(i), the phrase `(as determined before any applicable 
        reduction under section 1631(g), and reduced by the amount of 
        any reduction in benefits under this title or title II made 
        pursuant to section 1127(a))' for the parenthetical phrase 
        contained therein; and''.
            (2) Calculation of past-due benefits for purposes of 
        determining attorney fees in judicial proceedings.--
                    (A) In general.--Section 206(b)(1) of such Act (42 
                U.S.C. 406(b)(1)) is amended--
                            (i) by inserting ``(A)'' after ``(b)(1)''; 
                        and
                            (ii) by adding at the end the following new 
                        subparagraph:
    ``(B) For purposes of this paragraph--
            ``(i) the term `past-due benefits' excludes any benefits 
        with respect to which payment has been continued pursuant to 
        subsection (g) or (h) of section 223, and
            ``(ii) amounts of past-due benefits shall be taken into 
        account to the extent provided under the rules applicable in 
        cases before the Secretary.''.
                    (B) Protection from offsetting ssi benefits.--The 
                last sentence of section 1127(a) of such Act (as added 
                by section 5106(b) of the Omnibus Budget Reconciliation 
                Act of 1990) (42 U.S.C. 1320a-6(a)) is amended by 
                striking ``section 206(a)(4)'' and inserting 
                ``subsection (a)(4) or (b) of section 206''.
            (3) Application of single dollar amount ceiling to 
        concurrent claims under titles ii and xvi.--
                    (A) In general.--Section 206(a)(2) of such Act (as 
                amended by section 5106(a)(1) of the Omnibus Budget 
                Reconciliation Act of 1990) (42 U.S.C. 406(a)(2)) is 
                amended--
                            (i) by redesignating subparagraph (C) as 
                        subparagraph (D); and
                            (ii) by inserting after subparagraph (B) 
                        the following new subparagraph:
    ``(C) In any case involving--
            ``(i) an agreement described in subparagraph (A) with any 
        person relating to both a claim of entitlement to past-due 
        benefits under this title and a claim of entitlement to past-
        due benefits under title XVI, and
            ``(ii) a favorable determination made by the Secretary with 
        respect to both such claims,
the Secretary may approve such agreement only if the total fee or fees 
specified in such agreement does not exceed, in the aggregate, the 
dollar amount in effect under subparagraph (A)(ii)(II).''.
                    (B) Conforming amendment.--Section 206(a)(3)(A) of 
                such Act (as amended by section 5106(a)(1) of the 
                Omnibus Budget Reconciliation Act of 1990) (42 U.S.C. 
                406(a)(3)(A)) is amended by striking ``paragraph 
                (2)(C)'' and inserting ``paragraph (2)(D)''.
    (d) Amendment Related to Provisions in Section 5115 Relating to 
Advance Tax Transfers.--Section 201(a) of the Social Security Act (42 
U.S.C. 401(a)) is amended in the last sentence by striking ``and'' the 
second place it appears.

SEC. 4. EFFECTIVE DATE.

    (a) Sections 1 and 2.--The amendments made by sections 1 and 2 
shall apply to fiscal year 1994 and subsequent fiscal years.
    (b) Section 3.--Each amendment made by section 3 shall take effect 
as if included in the provisions of the Omnibus Budget Reconciliation 
Act of 1990 to which such amendment relates.
answer:
Amends the Omnibus Budget Reconciliation Act of 1990 to exclude the administrative expenses of the old-age, survivors and disability insurance programs from Federal budget calculations.  Exempts such expenses from sequestration under the Balanced Budget and Emergency Deficit Control Act of 1985 (Gramm-Rudman-Hollings Act). 
Makes technical and related corrections to the Congressional Budget Act of 1974, Social Security Act and the Omnibus Budget Reconciliation Act of 1990.


question:
SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Space Tourism Promotion Act of 
2001''.

SEC. 2. FINDINGS.

    The Congress finds that--
            (1) humans have long had a yearning to travel in space and 
        experience conditions beyond Earth's atmosphere;
            (2) forty years of human space flight experience have 
        demonstrated the feasibility of safe travel to and from space 
        as well as the ability of humans to live and work in space;
            (3) the Nation's human space flight program has developed 
        technologies and operational procedures that the private sector 
        could make use of to enable American citizens to experience 
        space travel;
            (4) space tourism has the potential to become a significant 
        industry and a powerful stimulus for advances in space 
        transportation;
            (5) the Federal Government could play an important role in 
        stimulating the development of space tourism by means of 
        guaranteed loans, tax credits, expeditious establishment of a 
        straightforward and predictable regulatory structure, and 
        research and development in technologies that may enable the 
        private sector to develop operational passenger-carrying space 
        transportation systems and on-orbit habitations;
            (6) as the agency of the Federal Government primarily 
        responsible for the development of America's commercial sector, 
        the Department of Commerce, and in particular its Office of 
        Space Commercialization, should have the lead role in 
        encouraging the growth of space tourism;
            (7) as the agency of the Federal Government currently 
        responsible for regulating America's commercial space 
        transportation industry, the Federal Aviation Administration, 
        and in particular its Office of Commercial Space 
        Transportation, should have the lead role in establishing the 
        regulatory structure necessary to ensure the safety of United 
        States space tourism;
            (8) as the agency of the Federal Government responsible for 
        carrying out the major share of the Nation's civil space 
        activities, the National Aeronautics and Space Administration 
        should continue its traditional role of conducting research and 
        development related to new space technologies and systems and 
        facilitating their transfer to the private sector;
            (9) it is an appropriate role for the Federal Government to 
        undertake measures to encourage the development of space 
        tourism in the United States; and
            (10) at the same time, it is an inappropriate role and a 
        misallocation of taxpayer-provided resources for the Federal 
        Government to compete with the private sector in the provision 
        of transportation vehicles or facilities for space tourism.

SEC. 3. DEFINITIONS.

    In this Act--
            (1) terms that are defined in the Federal Credit Reform Act 
        of 1990 have the meaning given those terms in that Act; and
            (2) the term ``space tourism'' means travel to, from, or 
        within outer space, or to the surface of a body in space other 
        than Earth, or habitation in outer space, for the purpose of 
        recreation.

SEC. 4. LOAN GUARANTEES.

    (a) Authority.--
            (1) In general.--The Secretary of Commerce may guarantee up 
        to 85 percent of the value of loans for the purpose of 
        developing transportation systems, habitation facilities, or 
        other infrastructure required for space tourism.
            (2) Limitation.--The maximum aggregate amount of loan 
        commitments that may be guaranteed under this section by the 
        Secretary of Commerce at any one time shall be $2,000,000,000.
            (3) Administrative fee.--The Secretary of Commerce is 
        authorized to collect from any borrower, and to the extent 
        provided for in advance in appropriations Acts to use, an 
        amount not to exceed 0.5 percent of the amount borrowed, for 
        covering the administrative expenses and other annual costs to 
        the Department of Commerce of the loan guarantee.
    (b) Terms and Conditions.--A loan guaranteed under this section 
shall be on such terms and conditions as the Secretary of Commerce may 
prescribe.
    (c) Term of Loans.--Loans guaranteed under this section shall be 
for a term of not to exceed 20 years, or 100 percent of the useful life 
of the substantial portion of the physical assets to be financed by the 
loans, whichever is shorter, as determined by the Secretary of 
Commerce.
    (d) Lien on Interests in Assets.--Upon providing a loan guarantee 
to a borrower under this section, the Secretary of Commerce shall have 
liens which shall be superior to all other liens on assets of the 
borrower equal to 85 percent of the unpaid balance of the loan subject 
to the guarantee.
    (e) Protection.--No loan shall be guaranteed under this section 
unless the Secretary of Commerce determines that the borrower is 
responsible and that adequate provision is made for servicing the loan 
on reasonable terms and for protecting the interests of the United 
States.
    (f) Validity.--A loan guarantee under this section shall be 
conclusive evidence that such guarantee has been properly obtained, and 
that the underlying loan qualifies for such guarantee. In an action for 
fraud or material misrepresentation by the holder of a loan guaranteed 
under this section, such guarantee shall be presumed to be valid, 
legal, and enforceable.
    (g) Forbearance.--The Secretary of Commerce may approve an 
agreement, between the parties to a loan guaranteed under this section, 
that provides for forbearance for the benefit of the borrower if the 
forbearance will result in no cost to the Federal Government.
    (h) Administration and Oversight Responsibility.--The Office of 
Space Commercialization shall be responsible for the administration and 
oversight of this section on behalf of the Department of Commerce.

SEC. 5. CAPITAL GAINS EXCLUSION.

    (a) In General.--Part I of subchapter P of chapter 1 of the 
Internal Revenue Code of 1986 (relating to items specifically excluded 
from gross income) is amended by adding at the end the following new 
section:

``SEC. 1203. EXCLUSION OF GAINS FOR QUALIFIED SPACE TOURISM 
              CORPORATIONS.

    ``(a) In General.--Gross income shall not include gain on the sale 
or exchange of any stock of a qualified space tourism corporation held 
for more than one year.
    ``(b) Qualified Space Tourism Corporation.--For purposes of 
subsection (a), the term `qualified space tourism corporation' means, 
with respect to any taxable year, a domestic corporation which is a C 
corporation if--
            ``(1) such corporation is organized exclusively for 
        providing to unrelated persons any service of space tourism (as 
        defined in section 3 of the Space Tourism Promotion Act of 
        2001), and
            ``(2) such corporation derives at least 75 percent of its 
        gross receipts from the active conduct of a trade or business 
        of providing a service described in paragraph (1).
    ``(c) Certain Purchases by Corporations of Its Own Stock.--For 
purposes of this section, rules similar to the rules of section 
1202(c)(3) shall apply.
    ``(d) Related Person.--Persons shall be treated as related to each 
other if such persons would be treated as a single employer under the 
regulations prescribed under section 52(b). In the case of a 
corporation which is a member of an affiliated group of corporations 
filing a consolidated return, such corporation shall be treated as 
providing services related to space tourism to an unrelated person if 
such services are provided to such a person by another member of such 
group.
    ``(e) Termination.--This section shall not apply to sales or 
exchanges after December 31, 2011.''.
    (b) Clerical Amendment.--The table of sections for part I of 
subchapter P of such Code is amended by adding at the end the following 
new item:

                              ``Sec. 1203. Exclusion of gains for 
                                        qualified space tourism 
                                        corporations.''
    (c) Effective Date.--The amendments made by this section shall 
apply to sales and exchanges in taxable years beginning after December 
31, 2001.

SEC. 6. ESTABLISHMENT OF REGULATORY STANDARDS.

    (a) In General.--Not later than 2 years after the date of the 
enactment of this Act, the Secretary of Transportation shall issue 
regulations to govern--
            (1) activities necessary to ensure the safe operation of 
        passenger-carrying launch and reentry vehicles and spacecraft 
        for space tourism, to the extent to which regulatory procedures 
        have not previously been established by law; and
            (2) activities related to the provision of and safe 
        operation of habitable facilities in outer space for space 
        tourism purposes.
    (b) Orbital Debris Avoidance.--Not later than 2 years after the 
date of the enactment of this Act, the Secretary of Transportation 
shall issue regulations to prevent, to the extent practicable, the 
growth of orbital debris resulting from activities associated with 
space tourism.
    (c) Legal Regime.--Activities taking place on space tourism 
habitation facilities and passenger-carrying launch and reentry 
vehicles and spacecraft for space tourism licensed or otherwise 
regulated by the Secretary of Transportation shall be governed by the 
laws of the United States.

SEC. 7. USE OF FEDERAL FACILITIES.

    (a) Prohibition Against Certain Uses of Federal Facilities.--
            (1) In general.--Launch, reentry, and space travel vehicles 
        owned by the Federal Government shall not be used for the 
        transport of any individuals other than those engaged in or 
        supporting the conduct of official business of the United 
        States or the conduct of scientific or engineering research and 
        development, except in emergency situations.
            (2) International space station.--The United States portion 
        of the International Space Station shall not be visited or 
        occupied by any individuals other than those engaged in or 
        supporting the conduct of official business of the United 
        States or the conduct of scientific or engineering research and 
        development, and those authorized by relevant international 
        agreements, except in emergency situations.
    (b) Use of Other Federal Facilities.--The use of other Federal 
facilities and infrastructure, such as launch ranges and data relay 
satellites, shall be made available to commercial entities engaged in 
space tourism on a cost-reimbursable basis to the extent that excess 
capacity exists at the time the commercial entity requests the use of 
such facilities and infrastructure.
answer:
Space Tourism Promotion Act of 2001 - Authorizes the Secretary of Commerce to guarantee up to 85 percent of the value of loans for developing transportation systems, habitation facilities, or other infrastructure required for space tourism.Amends the Internal Revenue Code of 1986 to exclude from gross income gain on the sale or exchange of any stock of a qualified space tourism corporation held for more than a year.Requires the Secretary of Transportation to issue regulations to: (1) govern activities necessary to ensure the safe operation of passenger-carrying launch and reentry vehicles and spacecraft for space tourism and activities related to the provision and safe operation of habitable facilities in outer space for space tourism; and (2) prevent the growth of orbital debris resulting from activities associated with space tourism.Prohibits: (1) the use of launch, reentry, and space travel vehicles owned by the Government for the transport of any individuals other than those engaged in or supporting the conduct of official business or scientific or engineering research and development (R&D), except in emergencies; and (2) the U.S. portion of the International Space Station from being visited or occupied by any individuals other than those engaged in or supporting the conduct of such business or R&D and those authorized by relevant international agreements, except in emergencies.Requires the use of other Federal facilities and infrastructure, such as launch ranges and data relay satellites, to be made available to commercial entities engaged in space tourism on a cost-reimbursable basis to the extent that excess capacity exists.


question:
SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Employee Ownership Act of 1999''.

SEC. 2. OWNERSHIP POLICY FOR THE UNITED STATES.

    (a) Findings.--The Congress finds that--
            (1) there is considerable evidence that employee-owned and 
        employee-controlled corporations are more productive and 
        provide more wealth to their employees than corporations not so 
        owned, and
            (2) the workplace experience of employee-owned and 
        employee-controlled corporations is proven to foster greater 
        appreciation of the economic system of the United States that 
        relies on ownership of private property and capitalism.
    (b) Policy.--It is the policy of the United States that by the year 
2010, 30 percent of all United States corporations are owned and 
controlled by employees of the corporations.

SEC. 3. TAX INCENTIVES RELATING TO EMPLOYEE-OWNED AND EMPLOYEE-
              CONTROLLED CORPORATIONS.

    (a) Trust of Employee-Owned and Employee-Controlled Corporation 
Exempt From Taxation.--
            (1) In general.--Section 501(c) of the Internal Revenue 
        Code of 1986 (relating to list of exempt organizations) is 
        amended by adding at the end the following new paragraph:
            ``(28)(A) employee-owned and employee-controlled 
        corporation trust.
            ``(B) For purposes of subparagraph (A), the term `employee-
        owned and employee-controlled corporation trust' means a trust 
        which has as its primary assets the employer securities (within 
        the meaning of section 409(l)) of an employee-owned and 
        employee-controlled corporation.
            (2) Employee-owned and employee-controlled corporation 
        defined.--Subsection (a) of section 7701 of such Code (relating 
        to definitions) is amended by adding at the end the following 
        new paragraph:
            ``(47) Employee-owned and employee-controlled 
        corporation.--The term `employee-owned and employee-controlled 
        corporation' means a corporation in which--
                    ``(A) more than 50 percent of the voting stock of 
                such corporation is held by a trust for the benefit of 
                the employees of that corporation,
                    ``(B) in all matters requiring the vote of stock, 
                including the election of the board of directors of the 
                corporation, the trustee of such trust is obligated to 
                vote the stock held in trust and allocated to 
                participants in the trust in the manner in which the 
                participants direct, on the basis of 1-employee 1-vote, 
                and to vote any stock not so allocated as if it were so 
                allocated,
                    ``(C) at least 25 employees of such corporation are 
                participants in and beneficiaries of such trust,
                    ``(D) a minimum of 90 percent of the employees who 
                work at least 1,000 hours annually for such corporation 
                are participants in such trust, and
                    ``(E) the trustee administers such trust for the 
                benefit of the employees of such corporation and 
                complies with all requirements of this title relating 
                to employee stock ownership plans (as defined in 
                section 4975(e)(7)) pertaining to independent appraisal 
                of shares not readily tradable and distribution of 
                those shares.''.
    (b) No Tax on Corporate Income of Employee-Owned and Employee-
Controlled Corporation.--Subsection (a) of section 11 of such Code 
(relating to corporations in general) is amended by inserting before 
the period at the end the following: ``(other than any employee-owned 
and employee-controlled corporation)''.
    (c) Exclusion of Income From Sale of Employee-Owned and Employee-
Controlled Corporation Stock by Employee Owner.--
            (1) In general.--Part III of subchapter B of chapter 1 of 
        such Code (relating to items specifically excluded from gross 
        income) is amended by redesignating section 139 as section 140 
        and by inserting after section 138 the following new section:

``SEC. 139. INCOME FROM EMPLOYEE OWNER SALE OF EMPLOYER SECURITIES 
              DISTRIBUTED FROM EMPLOYEE-OWNED AND EMPLOYEE-CONTROLLED 
              CORPORATION TRUST.

    ``(a) In General.--In the case of an individual, gross income shall 
not include any proceeds from the qualified sale of employer 
securities.
    ``(b) Qualified Sale of Employer Securities.--The term `qualified 
sale of employer securities' means the sale of employer securities (as 
defined in section 409(l)) which were distributed to a participant in 
the employee-owned and employee-controlled corporation trust to--
            ``(1) an employee of the employee-owned and employee-
        controlled corporation which issued such securities,
            ``(2) such corporation, or
            ``(3) such trust.''.
            (2) Clerical amendment.--The table of sections for part III 
        of subchapter B of chapter 1 of such Code is amended by 
        striking the item relating to section 139 and inserting after 
        the item relating to section 138 the following new items:

                              ``Sec. 139. Income from employee owner 
                                        sale of employer securities 
                                        distributed from employee-owned 
                                        and employee-controlled 
                                        corporation trust.
                              ``Sec. 140. Cross references to other 
                                        Acts.''.
    (d) Receipt of Stock in an Employee Owned and Controlled 
Corporation During 3-Year Transition Period.--Section 83 of such Code 
(relating to property transferred in connection with performance of 
services) is amended by adding at the end the following new subsection:
    ``(i) Receipt of Stock in an Employee Owned and Controlled 
Corporation During 3-Year Transition Period.--
            ``(1) In general.--In the case of an employee, this section 
        shall not apply to the transfer in lieu of compensation of 
        employer securities in an employer owned and controlled 
        corporation during the 3-year period beginning on the effective 
        date of the election of a corporation to become an employee 
        owned and controlled corporation.
            ``(2) Exception.--If, on the day after the end of the 3-
        year period referred to in paragraph (1), such corporation is 
        not an employee owned and controlled corporation, paragraph (1) 
        shall not apply and the following sum shall be included in the 
        gross income of such employee:
                    ``(A) an amount equal to the fair market value of 
                all of such securities at the time of transfer 
                (determined without regard to any restriction other 
                than a restriction which by its terms will never lapse) 
                to the employee in lieu of compensation for such 
                period, plus
                    ``(B) an amount equal to 10 percent of the amount 
                determined under subparagraph (A).''.
    (e) No Tax on Gain on Sales or Transfers to Employee-Owned and 
Employee-Controlled Corporation Trust.--
            (1) In general.--Part III of subchapter O of chapter 1 of 
        such Code (relating to common nontaxable exchanges) is amended 
        by adding at the end the following new section:

``SEC. 1046. SALE OF SECURITIES TO EMPLOYEE-OWNED AND EMPLOYEE-
              CONTROLLED CORPORATION TRUST.

    ``(a) Nonrecognition of Gain.--If the taxpayer elects the 
application of this section, in the case of the sale or transfer of 
employer securities (as defined in section 409(l)) to an employee-owned 
and employee-controlled corporation trust, gain on such sale or 
transfer shall not be recognized if the requirements of subsection (b) 
are met.
    ``(b) Requirements.--
            ``(1) In general.--The requirements of this subsection are 
        that--
                    ``(A) the employee-owned and employee-controlled 
                corporation trust acquiring such securities from the 
                taxpayer agrees--
                            ``(i) to hold such securities for the 3-
                        year period beginning on the date of such 
                        transfer or sale, and
                            ``(ii) to notify the taxpayer upon the 
                        transfer of such securities before the end of 
                        such period, and
                    ``(B) the taxpayer agrees to the provisions of 
                subsection (b).
            ``(2) Exceptions.--Paragraph (1) shall not apply--
                    ``(A) in a case where such securities are 
                securities of an employee-owned and employee-controlled 
                corporation which are distributed within such 3-year 
                period to an employee of such corporation, and
                    ``(B) in the case of the sale or transfer of stock 
                of an employee-owned and employee-controlled 
                corporation in connection with the sale or 
                reorganization of such corporation, if such sale or 
                reorganization is approved by the employees of such 
                corporation in a vote held on a 1-employee 1-vote 
                basis.
    ``(c) Recapture of Tax.--If, during any year within the 3-year 
period referred to in subsection (b)(1), securities subject to 
subsection (a) are sold or transferred in a manner that does not meet 
the requirements of subsection (b), then gain on the sale or transfer 
described in subsection (a) shall be recognized for the year in which 
such requirements are not met.''.
            (2) Clerical amendment.--The table of sections for part III 
        of subchapter O of chapter 1 of such Code is amended by adding 
        at the end the following new item:

                              ``Sec. 1046. Sale of securities to 
                                        employee-owned and employee-
                                        controlled corporation 
                                        trust.''.
    (f) Credit For Transfer of Stock From Estate to Employee-Owned and 
Employee-Controlled Corporation.--
            (1) In general.--Part II of subchapter A of chapter 11 of 
        such Code (relating to credits against tax) is amended by 
        redesignating section 2016 as section 2017 and by inserting 
        after section 2015 the following new section:

``SEC. 2016. CREDIT FOR TRANSFER OF EMPLOYEE SECURITIES FROM ESTATE TO 
              EMPLOYEE-OWNED AND EMPLOYEE-CONTROLLED CORPORATION TRUST.

    ``(a) General Rule.--The tax imposed by section 2001 shall be 
credited with the amount of employer securities considered to have been 
acquired from or to have passed from the decedent to an employee-owned 
and employee-controlled corporation trust.
    ``(b) Limitation.--Such credit may not exceed the tax imposed by 
section 2001, reduced under this part (other than by this section).
    ``(c) Value of Stock Not Readily Tradable.--No credit shall be 
allowed under subsection (a) in the case of employer securities which 
are not readily tradable on an established securities market unless the 
value of such employer securities is established by an independent 
appraiser. For purposes of the preceding sentence, the term 
`independent appraiser' means any appraiser meeting requirements 
similar to the requirements of the regulations prescribed under section 
170(a)(1).
    ``(d) Definitions.--For purposes of subsection (a)--
            ``(1) Acquired from or passed from a decedent.--Employer 
        securities shall be considered to have been acquired from or to 
        have passed from a decedent if the basis of such property in 
        the hands of the employee-owned and employee-controlled 
        corporation trust is determined under section 1014 by reference 
        to paragraph (1), (2), (4), or (9) of subsection (b) of such 
        section.
            ``(2) Employer securities.--The term `employer securities' 
        has the meaning given such term by section 409(l)), except that 
        such term shall not include any security which is not voting 
        common stock.''.
            (2) Clerical amendment.--The table of sections for part II 
        of subchapter A of chapter 11 of such Code (relating to credits 
        against tax) is amended by striking the item relating to 
        section 2016 and adding at the end the following new items:

                              ``Sec. 2016. Credit for transfer of 
                                        employee securities from estate 
                                        to employee-owned and employee-
                                        controlled corporation trust.
                              ``Sec. 2017. Recovery of taxes claimed as 
                                        credit.''.
    (g) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to taxable years 
        beginning after the date of the enactment of this Act.
            (2) Credit for transfer of stock from estate to employee-
        owned and employee-controlled corporation.--The amendments made 
        subsection (f) shall apply to estates of decedents dying after 
        the date of the enactment of this Act.

SEC. 4. STUDY OF GOVERNMENT POLICIES AFFECTING EMPLOYEE-OWNED AND 
              EMPLOYEE-CONTROLLED CORPORATIONS.

    The Comptroller General of the United States shall--
            (1) conduct a study of all Federal Government regulations 
        and policies that might impact the creation and operation of an 
        employee-owned and employee-controlled corporation as defined 
        in section 7701(a)(47) of the Internal Revenue Code of 1986,
            (2) identify those regulations and policies that are 
        barriers to employee ownership and control of such a 
        corporation, and
            (3) not later than one year after the date of the enactment 
        of this Act, submit a report on the findings of such study, 
        together with such recommendations as the Comptroller General 
        determines appropriate, to the Congress.

SEC. 5. PRESIDENTIAL COMMISSION ON EMPLOYEE OWNERSHIP.

    (a) Establishment.--Not later than one year after the date of the 
enactment of this Act, the President shall establish a commission to be 
known as the ``Presidential Commission on Employee Ownership'' 
(hereafter in this section referred to as the ``Commission'').
    (b) Duties and Report.--The Commission shall--
            (1) conduct a study concerning all issues that affect 
        ownership of businesses in the United States, with a primary 
        focus on the issues that affect employee ownership of such 
        businesses, and
            (2) not later than two years after the date of its 
        establishment, submit a final report to the President and the 
        Congress which includes the findings and recommendations of the 
        Commission.
    (c) Membership.--The Commission shall be composed of 15 members 
appointed by the President as follows:
            (1) Three individuals, each of whom is an employee of a 
        corporation that has at least 50 percent of its voting stock in 
        a trust for the benefit of employees and who is not an officer 
        or senior manager of that corporation.
            (2) Three individuals, each of whom is an employee of a 
        corporation that has at least 50 percent of its voting stock in 
        a trust for the benefit of employees and who is an officer or 
        senior manager of that corporation.
            (3) Three individuals, each of whom is a professor employed 
        by an institution of higher learning.
            (4) Three individuals, each of whom is employed by a not-
        for-profit entity that has as its primary mission issues 
        arising from employee ownership of businesses.
            (5) The Secretary of Labor, or his designee, the Secretary 
        of the Treasury, or his designee, and the Director of the 
        Office of Management and Budget, or his designee.
    (d) Staff.--The Commission shall have such number of staff as the 
President shall determine, except that such staff shall include not 
less than five full-time employees.
    (e) Gifts and Bequests.--The Commission may accept, use, and 
dispose of gifts or bequests or services or personal property for the 
purpose of aiding or facilitating the work of the Commission. Gifts or 
bequests of money and proceeds from sales of other property received as 
gifts or bequests shall be deposited in the Treasury and shall be 
available for disbursement upon order of the Commission.
answer:

(Sec. 3) Amends the Internal Revenue Code to provide for tax-exempt employee-owned and employee-controlled corporation (EOECC) trusts whose primary assets consist of the employer securities of an EOECC in which: (1) more than 50 percent of the voting stock is held by a trust for the benefit of the corporation's employees; (2) in all matters requiring the vote of stock, including the election of the corporate board of directors, the trustee of such trust is obligated to vote the stock held in trust and allocated to participants in the trust in the manner in which the participants direct, on the basis of one-employee one-vote (and vote any stock not so allocated as if it were so allocated); (3) at least 25 employees of such corporation are participants in and beneficiaries of such trust; (4) a minimum of 90 percent of the employees who work at least 1,000 hours annually for such corporation are participants in such trust; and (5) the trustee administers the trust for the benefit of the corporation's employees, complying with all Code requirements for employee stock ownership plans which pertain to independent appraisal of shares not readily tradable, and distribution of those shares.
Declares that: (1) there shall be no tax on the corporate income of an EOECC; and (2) the gross income of an employee owner shall not include any proceeds from the qualified sale of EOECC securities.
Exempts from inclusion in gross income of property transferred in connection with performance of services any transfer (in lieu of compensation) of EOECC securities during the three years following a corporation's election to become an EOECC.
Mandates nonrecognition of gain in the case of the sale or transfer of EOECC securities to an EOECC trust.
Establishes a credit against the estate tax for the amount of EOECC securities considered to have been acquired from or to have passed from a decedent to an EOECC trust.
(Sec. 4) Directs the Comptroller General to study and report to Congress on Federal regulations and policies affecting EOECCs.
(Sec. 5) Directs the President to establish a Presidential Commission on Employee Ownership to study and report on all issues that affect ownership of businesses in the United States, with a primary focus on the issues that affect employee ownership of such businesses.