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:
SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Consumer Lending Education And 
Reform Act'' and the ``C.L.E.A.R. Act''.

SEC. 2. PROTECTIONS FOR CONSUMERS.

    (a) In General.--Chapter 2 of the Truth in Lending Act (15 U.S.C. 
1631 et seq.) is amended by inserting after section 129A the following 
new section:
``Sec. 129B Protections for consumers
    ``(a) Definitions.--For purposes of this section, the following 
definitions shall apply:
            ``(1) Affiliate.--The term `affiliate' has the same meaning 
        as in section 129(k).
            ``(2) Electronic signature.--The term `electronic 
        signature' means a signatures in digital or other electronic 
        form that meets the validity requirements of the Electronic 
        Signatures in Global and National Commerce Act.
            ``(3)  Extended payment plan.--The term `extended payment 
        plan' means an amendment to the payday loan that is signed in 
        person or electronically by both the consumer and the creditor 
        reflecting an agreement that the consumer pay the outstanding 
        balance on a payday loan in 4 equal payments, where the period 
        between each payment may not be less than the duration of the 
        original payday loan.
            ``(4) Home state.--
                    ``(A) In general.--The term `home State' means, 
                with respect to any creditor or any affiliate of a 
                creditor, the State in which the primary home office of 
                the creditor or any affiliate of the creditor is 
                located.
                    ``(B) Home office.--The term `home office' means 
                the office that houses a majority of the applicable 
                party's day-to-day management and administrative 
                support functions.
            ``(5) Interest and fees.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the term `interest and fees' includes 
                any charge payable directly or indirectly by the 
                consumer and imposed directly or indirectly by the 
                creditor as an incident to or a condition of the 
                extension of credit.
                    ``(B) Charges not included.--The term `interest and 
                fees' does not include--
                            ``(i) any charge for a default, 
                        delinquency, or similar occurrence; or
                            ``(ii) any charge imposed when, if for any 
                        reason, funds are not made available to pay an 
                        item or authorization delivered to the creditor 
                        in the manner described in subparagraph (A) or 
                        (B) of paragraph (1) to the extent that--
                                    ``(I) the charge does not exceed 
                                the greater of $25 or the amount 
                                charged to the creditor by the 
                                creditor's financial institution; and
                                    ``(II) the charge is only imposed 
                                once per each item or authorization 
                                regardless of whether the item or 
                                authorization is presented for payment 
                                more than once.
            ``(6) Loan store.--The term `loan store' means each 
        location operated by a creditor at which applications for 
        payday loans are received or the proceeds of payday loans are 
        disbursed.
            ``(7) Payday loan; loan.--The terms `payday loan' and 
        `loan' mean a closed-end credit transaction, evidenced by a 
        loan agreement signed by the creditor and the consumer, in 
        person or electronically, unsecured by any interest in the 
        consumer's tangible personal property with a term of at least 7 
        and not more than 90 days in which the amount financed does not 
        exceed $2,000 with a finance charge exceeding an annual 
        percentage rate of 36 percent, and the consumer--
                    ``(A) receives funds from and incurs interest or a 
                fee payable to a creditor, and contemporaneously with 
                the receipt of funds, provides a check or other payment 
                instrument to the creditor who agrees with the consumer 
                not to deposit or present the check or payment 
                instrument for more than 1 day; or
                    ``(B) receives funds from and incurs interest or a 
                fee payable to a creditor, and contemporaneously with 
                the receipt of funds, authorized the creditor to 
                initiate a debt or debits to the consumer's deposit 
                account (by electronic fund transfer or remotely 
                created check) after 1 or more days.
            ``(8) Payday lender.--The term `payday lender' means any 
        creditor with respect to a payday loan.
            ``(9) Refinancing.--The term `refinancing' means the use of 
        the proceeds of 1 payday loan obtained from a creditor to pay 
        off any amount due to that creditor.
    ``(b) Protections for Consumers.--
            ``(1) Interest and fee cap.--A payday lender may not--
                    ``(A) require a consumer to pay--
                            ``(i) in the case of any original payday 
                        loan, interest and other fees and charges that 
                        total more than 15 cents for every dollar 
                        loaned; and
                            ``(ii) in the case of an original payday 
                        loan originated over the Internet, an 
                        additional origination fee in excess of 5 
                        percent of the original principal loan amount;
                    ``(B) require a consumer to pay interest and fees 
                that, combined, total more than--
                            ``(i) in the case of the 1st refinancing of 
                        an outstanding payday loan, 15 cents for every 
                        dollar of the outstanding original principal 
                        loan amount; and
                            ``(ii) in the case of the 2nd refinancing 
                        of an outstanding payday loan, 10 cents for 
                        every dollar of the outstanding original 
                        principal loan amount; or
                    ``(C) require a consumer to pay an origination fee 
                for a payday loan that is refinanced.
            ``(2) Mandatory disclosures.--A payday lender may not make 
        or refinance a payday loan unless the creditor has first 
        provided the consumer with a copy of a written loan agreement, 
        which shall be signed by the creditor and by the consumer and 
        shall include the following information in English and in the 
        language in which the loan was negotiated:
                    ``(A) A clear and conspicuous description of the 
                terms of the loan, including the total cost of all fees 
                and other charges in connection with the loan stated as 
                a dollar amount, and the consumer's payment obligations 
                under the loan.
                    ``(B) The name, address and telephone number of the 
                creditor making the loan, and the name of title of the 
                individual employee of the creditor who signs the loan 
                agreement on behalf of the creditor.
                    ``(C) The following statements, in at least 14-
                point bold face type:
                            ``(i) Warning.--This loan is not intended 
                        to meet long-term financial needs. This loan 
                        should be used only to meet short-term cash 
                        needs.
                            ``(ii) Credit counseling availability.--You 
                        should consider contacting an independent, 
                        nonprofit credit counseling agency approved by 
                        the National Foundation for Credit Counseling 
                        (NFCC) or by a State or Federal Government 
                        agency. You may obtain information on how to 
                        contact an approved counselor near you by 
                        calling the National Foundation for Credit 
                        Counseling at 1-800-388-2227.
                            ``(iii) No criminal prosecution or security 
                        interest.--You cannot be prosecuted in criminal 
                        court to collect this loan, and the creditor 
                        may not take or attempt to take an interest in 
                        any of your personal property to secure his 
                        loan.
            ``(3) Additional public disclosures.--A payday lender may 
        not make or refinance a payday loan to any consumer unless the 
        following notices are posted conspicuously in English and 
        Spanish and in not less than 1-inch bold print in the 
        creditor's public lending area in each loan store, or, if the 
        loan is made using the Internet, fax or other means, are posted 
        conspicuously on the creditor's public internet site relating 
        to any such payday loan:
                    ``(A) Warning.--This loan is not intended to meet 
                long-term financial needs. This loan should be used 
                only to meet short-term cash needs.
                    ``(B) Credit counseling availability.--You should 
                consider contacting an independent, nonprofit credit 
                counseling agency approved by the National Foundation 
                for Credit Counseling (NFCC) or by a State or Federal 
                Government agency. You may obtain information on how to 
                contact an approved counselor near you by calling the 
                National Foundation for Credit Counseling at 1-800-388-
                2227.
                    ``(C) No criminal prosecution or security 
                interest.--You cannot be prosecuted in criminal court 
                to collect this loan, and the creditor may not take or 
                attempt to take an interest in any of your personal 
                property to secure his loan.
            ``(4) Creditor surety bond requirements.--
                    ``(A) In general.--A payday lender may not make or 
                refinance a payday loan unless the creditor has 
                obtained and filed, in accordance with subparagraph 
                (B), a surety bond in the following amount:
                            ``(i) A surety bond in the amount of 
                        $100,000 for each loan store operated by the 
                        creditor, if the creditor operates fewer than 
                        10 loan stores and does not offer any payday 
                        loans over the Internet.
                            ``(ii) A surety bond in the amount of 
                        $1,000,000, if the creditor operates 10 or more 
                        loan stores or offers loans over the Internet.
                            ``(iii) Such greater amount as may be 
                        required by applicable State law.
                    ``(B) Bond requirements.--The surety bond obtained 
                by a payday lender to meet the requirements of 
                subparagraph (A) shall be filed with, and for the 
                benefit of, the State attorney general in the 
                creditor's home state.
                    ``(C) Aggregation of lender and affiliate under 
                certain circumstances.--For purposes of this paragraph, 
                a creditor and each affiliate of a creditor which has 
                the same home State as the creditor may aggregate the 
                loan stores operated by such creditor and any such 
                affiliate for purposes of determining the amount of the 
                surety bond required to be filed under subparagraph 
                (A).
            ``(5) Extended payment plan.--
                    ``(A) In general.--A payday lender may not make or 
                refinance a payday loan unless the terms of the loan 
                require the creditor, upon receiving notice from the 
                consumer of an inability to repay prior to close of 
                business on the last business day before the original 
                due date of the loan, provides the consumer with notice 
                of and the right to opt into an extended payment plan, 
                without charge, 1 time in any 12 month period.
                    ``(B) Limitation during extended payment plan.--A 
                creditor may not engage in any collection activity (or 
                procure the services of any other for such purpose) 
                during the term of any extended payment plan.
            ``(6) Refinancing.--A payday lender may not--
                    ``(A) refinance a payday loan for less than 7 days;
                    ``(B) refinance a payday loan more than 2 
                consecutive times; refinance a payday loan without 
                terminating the previous agreement and entering into a 
                new agreement that the creditor and consumer each sign 
                in person or with an electronic signature; or
                    ``(C) require a consumer to pay interest and fees 
                in connection with a refinancing that, combined, total 
                more than the amount permitted under paragraph 
                (1)(B).''.
    (b) Technical and Conforming Amendments.--
            (1) Disclosures.--Section 128(a)(4) of the Truth in Lending 
        Act (U.S.C. 1638(a)(4)) is amended--
                    (A) by striking ``or'' after ``does not exceed 
                $5,'' and
                    (B) by inserting ``, or if the loan is subject to 
                section 129B''.
            (2) Effect on other laws.--Section 111 of the Truth in 
        Lending Act (U.S.C. 1610) is amended--
                    (A) in subsection (b), by inserting ``subsection 
                (f) of this section and'' after ``Except as provided 
                in''; and
                    (B) by adding at the end the following new 
                subsection:
    ``(f) Payday Loans.--
            ``(1) In general.--The following provisions of the law of 
        any State shall not apply to any payday loan, or any 
        refinancing of a payday loan, that is subject to section 129B:
                    ``(A) Any provision requiring minimum loan terms.
                    ``(B) Any provision prohibiting, defining or 
                limiting any refinancing.
                    ``(C) Any provision prohibiting or limiting the use 
                of a check or debit authorization to originate a payday 
                loan.
                    ``(D) Any provision prohibiting or mandating 
                extended payment plans.
                    ``(E) Any provision limiting the rate or amount of 
                interest and fees or default, delinquency or not 
                sufficient fund fees or other charges which may be 
                taken, received or reserved by creditors for payday 
                loans or any refinancing of a payday loan.
            ``(2) Enforcement.--Notwithstanding paragraph (1), any 
        State may employ or establish State laws for the purpose of 
        enforcing the requirements of section 129B.''.
    (c) Clerical Amendment.--The table of sections for chapter 2 of the 
Truth in Lending Act is amended by inserting after the item relating to 
section 129 the following new items:

``129A. Fiduciary duty of servicers of pooled residential mortgages.
``129B. Protections for consumers.''.
answer:
Consumer Lending Education And Reform Act or the C.L.E.A.R. Act - Amends the Truth in Lending Act to limit the interest, fees and charges that a payday lender may require a consumer to pay with respect to an original payday loan and a refinanced payday loan.

Prohibits a payday lender from: (1) requiring a consumer to pay an origination fee for a payday loan that is refinanced; or (2) making or refinancing a payday loan unless the creditor has first provided the consumer with a copy of a written loan agreement, signed by the creditor and by the consumer, which includes specified information in English and in the language in which the loan was negotiated.

Requires a payday lender to file a surety bond.

Prohibits a payday lender from making or refinancing a payday loan unless the terms of the loan require the creditor, upon receiving notice of consumer's inability to repay, to provide the consumer with notice of and the right to opt into an extended payment plan, without charge, one time in any 12-month period.

Prohibits a creditor from engaging in any collection activity (or procuring the services of any other for such purpose) during the term of any extended payment plan.


question:
SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Union Member Protection Act''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) Labor unions make significant political contributions 
        and expenditures that directly or indirectly influence the 
        election of candidates and support or oppose political causes. 
        Decisions to use union dues for political contributions and 
        expenditures are usually made by union leadership and 
        management, rather than union membership.
            (2) Unions, acting through their management, should be 
        obligated to conduct business in the best interests of their 
        membership.
            (3) Historically, union members have not had a way to know, 
        or to influence, the political activities of unions that are 
        supposed to represent them. Union members and the public have a 
        right to know how unions are spending members' dues to make 
        political contributions or expenditures benefitting candidates, 
        political parties, and political causes.
            (4) Unions should be accountable to their membership in 
        making political contributions or expenditures affecting 
        Federal governance and public policy. Requiring the express 
        approval of a union's membership for political contributions or 
        expenditures will establish necessary accountability.

SEC. 3. DISCLOSURE AND APPROVAL OF CERTAIN POLITICAL EXPENDITURES.

    (a) In General.--Title II of the Labor-Management Reporting and 
Disclosure Act (29 U.S.C. 431 et seq.) is amended by inserting after 
section 201 the following:

``SEC. 201A. DISCLOSURE AND APPROVAL OF CERTAIN POLITICAL EXPENDITURES 
              BY LABOR ORGANIZATIONS.

    ``(a) Disclosure.--The report required under section 201 shall 
contain, in a clear and simple format--
            ``(1) a description of the specific nature of any 
        expenditures for political activities proposed to be made by 
        the labor organization for the forthcoming fiscal year, to the 
        extent the specific nature is known to the labor organization 
        and including the total amount of such proposed expenditures; 
        and
            ``(2) a disclosure of how each officer of the labor 
        organization voted to authorize or not to authorize each 
        expenditure for political activities made by the labor 
        organization during the preceding fiscal year.
    ``(b) Restriction on Expenditures.--No labor organization shall 
make any expenditure for political activities in any fiscal year 
unless--
            ``(1) such expenditure is of the nature of those proposed 
        by the labor organization pursuant to subsection (a); and
            ``(2) the full, free, and written authorization for such 
        expenditures has been granted by a majority of the members of 
        the labor organization.
    ``(c) Mechanism for Obtaining Authorization.--Not later than 1 year 
after the date of enactment of the Union Member Protection Act, every 
labor organization shall adopt a mechanism for obtaining, by secret 
ballot, the authorization of its members as required under subsection 
(b)(2).
    ``(d) Liability.--The officers of a labor organization who 
authorize an expenditure without first obtaining the authorization of 
members required under subsection (b)(2) shall be jointly and severally 
liable in any action brought in any court of competent jurisdiction to 
any member of the labor organization or class of members for the amount 
of dues paid by such member or class of member during the 1 year period 
prior to the date that such expenditure was made.
    ``(e) Definition of Expenditure for Political Activities.--As used 
in this section:
            ``(1) The term `expenditure for political activities' 
        means--
                    ``(A) an independent expenditure, as such term is 
                defined in section 301(17) of the Federal Election 
                Campaign Act of 1971 (2 U.S.C. 431(17));
                    ``(B) contributions to any political party, 
                committee, or electioneering communication, as such 
                term is defined in section 304(f)(3)(A) of the Federal 
                Election Campaign Act of 1971 (2 U.S.C. 434(f)(3)(A)); 
                and
                    ``(C) dues or other payments to trade associations 
                or other tax exempt organizations that are, or could 
                reasonably be anticipated to be, used for the purposes 
                described in subparagraph (A).
            ``(2) Such term shall not include--
                    ``(A) direct lobbying efforts through registered 
                lobbyists employed or hired by the labor organization;
                    ``(B) communications by a labor organization to its 
                members and executive or administrative personnel and 
                their families; or
                    ``(C) the establishment, administration, and 
                solicitation of contributions to a separate segregated 
                fund to be utilized for political purposes by a labor 
                organization.''.
    (b) Conforming Amendments.--
            (1) Section 201(c) of such Act (29 U.S.C. 431(c)) is 
        amended by striking ``make available the information required 
        to be contained in'' and inserting ``provide''.
            (2) Section 209(a) of such Act (29 U.S.C. 439(a)) is 
        amended by inserting ``other than section 201A'' after ``this 
        title''.

SEC. 4. REQUIREMENT OF VOTE BY PRINCIPAL OFFICERS.

    Section 201 of the Labor-Management Reporting and Disclosure Act 
(29 U.S.C. 431) is further amended by adding at the end the following:
    ``(f) The bylaws required under this section shall expressly 
provide for a vote of the principal officers of the labor organization 
on any individual expenditure for political activities (as such term is 
defined in section 201A(e)) in excess of $50,000. A labor organization 
shall make publicly available the individual votes of principal 
officers required by the preceding sentence within 48 hours of the 
vote, including in a clear and conspicuous location on the Internet 
website of the labor organization.''.

SEC. 5. REPORT.

    The Comptroller General of the United States shall annually conduct 
a study on the compliance with the requirements of this Act by labor 
organizations and their management. Not later than April 1 of each 
year, the Comptroller General shall submit to Congress a report of such 
study.

SEC. 6. EFFECTIVE DATE.

    The amendments made by this Act shall take effect on the date of 
enactment of the Shareholder Protection Act of 2010.
answer:
Union Member Protection Act - Amends the Labor-Management Reporting and Disclosure Act (Landrum-Griffin Act) to require a labor organization's mandatory report to the Secretary of Labor on its constitution, officers, and basic organization to include, in a clear and simple format, both: (1) a description of the specific nature and total amount of political expenditures the labor organization proposes to make for the upcoming fiscal year; and (2) a disclosure of how each labor organization officer voted on each political expenditure made by the organization during the preceding fiscal year.

Prohibits a labor organization from making political expenditures unless: (1) they are of the nature of those proposed in such report; and (2) they have received a full, free, and written authorization by secret ballot by a majority of the labor organization members.

Makes officers jointly and severally liable for authorizing a political expenditure without first obtaining the authorization of labor organization members.

Requires labor organization bylaws to provide expressly for a vote of the organization's principal officers on individual political expenditures in excess of $50,000. Requires a labor organization to make public the individual votes of such officers within 48 hours, including in a clear and conspicuous location on its website.


question:
SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Citizens' Tax Relief Act of 1994''.

SEC. 2. REDUCTION OF LOWEST RATE OF INCOME TAX IMPOSED ON TAXPAYERS 
              OTHER THAN CORPORATIONS.

    (a) In General.--Each of the tables contained in subsections (a), 
(b), (c), (d), and (e) of section 1 of the Internal Revenue Code of 
1986 is amended by striking ``15%'' and inserting ``12.5%''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to taxable years beginning after December 31, 1994.
    (c) Section 15 Not To Apply.--The amendment made by subsection (a) 
shall not be treated as a change in the rate of a tax imposed by 
chapter 1 of the Internal Revenue Code of 1986 for purposes of section 
15 of such Code.

SEC. 3. REPEAL OF INCREASE IN BASIS OF PROPERTY ACQUIRED FROM A 
              DECEDENT.

    (a) In General.--Section 1014 of the Internal Revenue Code of 1986 
(relating to basis of property acquired from a decedent) is hereby 
repealed.
    (b) Basis To Be Determined Under Rules Applicable to Gifts.--
Section 1015 of such Code (relating to basis of property acquired by 
gifts and transfers in trusts) is amended by adding at the end the 
following new subsection:
    ``(f) Property Acquired From or Passing From a Decedent.--
            ``(1) In general.--Property acquired from a decedent dying 
        after December 31, 1994, or passed from such a decedent shall 
        be treated for purposes of subsection (a) as acquired by gift 
        for purposes of this section.
            ``(2) Property acquired from a decedent.--Section 1014(b) 
        (as in effect on the day before the date of the enactment of 
        the Citizens' Tax Relief Act of 1994) shall apply for purposes 
        of whether property is considered to have been acquired from or 
        to have passed from the decedent.
            ``(3) Increase in basis for estate tax paid.--
                    ``(A) In general.--The basis of any property which 
                this subsection applies shall be the basis determined 
                under subsection (a) increased by the portion of the 
                aggregate death tax adjustment which is allocated to 
                the property pursuant to this paragraph.
                    ``(B) Limitation.--The death tax adjustment for any 
                property shall not exceed--
                            ``(i) the net appreciation in such 
                        property, multiplied by
                            ``(ii) the Federal marginal estate tax 
                        rate.
                    ``(C) Net appreciation.--For purposes of this 
                paragraph, the net appreciation in value of any 
                property is the amount by which--
                            ``(i) the fair market value of such 
                        property, exceeds
                            ``(ii) the initial basis of such property 
                        increased by the minimum basis adjustment of 
                        such property.
            ``(4) Aggregate death tax adjustment.--In the case of any 
        estate--
                    ``(A) In general.--The aggregate death tax 
                adjustment is the product of--
                            ``(i) the aggregate net appreciation of all 
                        properties which have net appreciation, and
                            ``(ii) the Federal marginal estate tax 
                        rate.
                    ``(B) Limitation.--The amount taken into account 
                under subparagraph (A)(i) shall not exceed the taxable 
                estate.
                    ``(C) Federal marginal estate tax rate.--The term 
                `Federal marginal estate tax rate' means the highest 
                rate in the rate schedule set forth in section 
                2001(c)--
                            ``(i) which is used in determining the 
                        tentative tax under section 2001(b)(1) with 
                        respect to the estate of the decedent, and
                            ``(ii) the amount subject to which is at 
                        least $50,000.
                In no event shall the Federal marginal estate tax rate 
                be less than 30 percent.
            ``(5) Allocation rules.--The executor shall allocate the 
        adjustments under this subsection among the properties on the 
        return of the tax imposed by chapter 11.''.
    (c) Conforming Amendments.--
            (1) The table of sections for part II of subchapter O of 
        chapter 1 of such Code is amended by striking the item relating 
        to section 1014.
            (2) The heading of section 1015 of such Code is amended to 
        read as follows:

``SEC. 1015. BASIS OF PROPERTY ACQUIRED BY GIFT, FROM A DECEDENT, OR 
              TRANSFERRED IN TRUST.''.

            (3) The table of sections for part II of subchapter O of 
        chapter 1 of such Code is amended by striking the item relating 
        to section 1015 and inserting the following new item:

                              ``Sec. 1015. Basis of property acquired 
                                        by gift, from a decedent, or 
                                        transferred in trust.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to decedents dying after December 31, 1994.

SEC. 4. PHASEIN OF CAPITAL GAINS TAX ON INHERITED PROPERTY.

    (a) In General.--Subsection (h) of section 1 of the Internal 
Revenue Code of 1986 (relating to maximum capital gains rate) is 
amended to read as follows:
    ``(h) Maximum Capital Gains Rate.--
            ``(1) In general.--If a taxpayer has a net capital gain for 
        any taxable year, then the tax imposed by this section shall 
        not exceed the sum of--
                    ``(A) a tax computed at the rates and in the same 
                manner as if this subsection had not been enacted on 
                the greater of--
                            ``(i) taxable income reduced by the amount 
                        of the net capital gain, or
                            ``(ii) the amount of taxable income taxed 
                        at a rate below 28 percent, plus
                    ``(B) a tax equal to the sum of--
                            ``(i) the applicable percentage of so much 
                        of such net capital gain as is attributable to 
                        property acquired by the taxpayer from a 
                        decedent dying after December 31, 1994 (or 
                        passed to the taxpayer from such a decedent), 
                        and
                            ``(ii) 28 percent of the amount of the 
                        taxable income in excess of the sum of the 
                        amount determined under subparagraph (A) and 
                        the net capital gain described in clause (i) of 
                        this subparagraph.
            ``(2) Applicable percentage.--For purposes of paragraph 
        (1), the term `applicable percentage' means--
                    ``(A) 10 percent in the case of taxable years 
                beginning after December 31, 1993, and before January 
                1, 1996,
                    ``(B) 15 percent in the case of taxable years 
                beginning during 1996,
                    ``(C) 20 percent in the case of taxable years 
                beginning during 1997, and
                    ``(D) 25 percent in the case of taxable years 
                beginning during 1998.
            ``(3) Election to mark-to-market property acquired from a 
        decedent.--If the taxpayer elects this paragraph with respect 
        to any property described in paragraph (1)(B)(i), such property 
        shall be treated as sold (for its fair market value as of the 
        first day of the taxpayer year) and any gain or loss shall be 
        treated as received or accrued on such day.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years ending after December 31, 1994.

SEC. 5. ADDITIONAL EXCLUSION OF GAIN ON SALE OF PRINCIPAL RESIDENCE 
              ACQUIRED FROM A DECEDENT.

    (a) In General.--Subsection (d) of section 121 of the Internal 
Revenue Code of 1986 (relating to one-time exclusion of gain from sale 
of principal residence by individual who has attained age 55) is 
amended by adding at the end the following new paragraph:
            ``(10) Special rules for residence acquired from 
        decedent.--
                    ``(A) In general.--In the case of a residence which 
                was acquired by the taxpayer from a decedent dying 
                after December 31, 1994, or to whom such residence 
                passed from such a decedent (within the meaning of 
                section 1015(f)(2))--
                            ``(i) subsection (a)(1) shall not apply, 
                        and
                            ``(ii) the requirement of subsection (a)(2) 
                        shall be treated as met if the decedent 
                        satisfied such requirement as of the date of 
                        death or the taxpayer satisfies such 
                        requirement.
                    ``(B) Additional election.--Any election under this 
                section with respect to any residence to which 
                subparagraph (A) applies shall not be taken into 
                account in determining whether any other election may 
                be made under this section.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to sales and exchanges after December 31, 1994, in taxable years ending 
after such date.
answer:

Citizens' Tax Relief Act of 1994 - Amends the Internal Revenue Code to reduce the lowest rate of income tax imposed on taxpayers other than corporations. 
Repeals the rule relating to determining the basis of property acquired from a decedent.  Provides for determining such basis under rules applicable to gifts and transfers in trusts.  Revises and reduces the current maximum capital gains tax on inherited property. 
Allows an exclusion of gain from gross income from the sale of a principal residence acquired from a decedent.