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 ``Regulatory Transparency, Patient 
Access, and Effective Drug Enforcement Act of 2014''.

SEC. 2. SCHEDULING OF SUBSTANCES INCLUDED IN NEW FDA-APPROVED DRUGS.

    Section 201 of the Controlled Substances Act (21 U.S.C. 811) is 
amended by inserting after subsection (h) the following:
    ``(i) Within 45 days of receiving a recommendation from the 
Secretary to add a drug or substance that has never been marketed in 
the United States to a schedule under this title, the Attorney General 
shall, without regard to the findings required by subsection (a) of 
this section or section 202(b), issue an interim final rule, under the 
exception for good cause described in subparagraph (B) of section 
553(b) of title 5, United States Code, placing the drug or substance 
into the schedule recommended by the Secretary. The interim final rule 
shall be made immediately effective under section 553(d)(3) of title 5, 
United States Code.''.

SEC. 3. ENHANCING NEW DRUG DEVELOPMENT.

    Section 302 of the Controlled Substances Act (21 U.S.C. 822) is 
amended by inserting after subsection (g) the following:
    ``(h)(1) A person who submits an application for registration to 
manufacture or distribute a controlled substance in accordance with 
this section may indicate on the registration application that the 
substance will be used only in connection with clinical trials of a 
drug in accordance with section 505(i) of the Federal Food, Drug, and 
Cosmetic Act.
    ``(2) When an application for registration to manufacture or 
distribute a controlled substance includes an indication that the 
controlled substance will be used only in connection with clinical 
trials of a drug in accordance with section 505(i) of the Federal Food, 
Drug, and Cosmetic Act, the Attorney General shall--
            ``(A) make a final decision on the application for 
        registration within 180 days; or
            ``(B) provide notice to the applicant in writing of--
                    ``(i) the outstanding issues that must be resolved 
                in order to reach a final decision on the application; 
                and
                    ``(ii) the estimated date on which a final decision 
                on the application will be made.''.

SEC. 4. REGISTRATION PROCESS UNDER CONTROLLED SUBSTANCES ACT.

    (a) Definitions.--
            (1) Factors as may be relevant to and consistent with the 
        public health and safety.--Section 303 of the Controlled 
        Substances Act (21 U.S.C. 823) is amended by adding at the end 
        the following:
    ``(i) In this section, the phrase `factors as may be relevant to 
and consistent with the public health and safety' means factors that 
are relevant to and consistent with the findings contained in section 
101.''.
            (2) Imminent danger to the public health or safety.--
        Section 304(d) of the Controlled Substances Act (21 U.S.C. 
        824(d)) is amended--
                    (A) by striking ``(d) The Attorney General'' and 
                inserting ``(d)(1) The Attorney General''; and
                    (B) by adding at the end the following:
    ``(2) In this subsection, the phrase `imminent danger to the public 
health or safety' means that, in the absence of an immediate suspension 
order, controlled substances will continue to be distributed or 
dispensed by a registrant who knows or should know through fulfilling 
the obligations of the registrant under this Act, or has reason to 
believe that--
            ``(A) the dispensing is outside the usual course of 
        professional practice;
            ``(B) the distribution or dispensing poses a present or 
        foreseeable risk of adverse health consequences or death due to 
        the abuse or misuse of the controlled substances; or
            ``(C) the controlled substances will continue to be 
        diverted outside of legitimate distribution channels.''.
    (b) Opportunity To Submit Corrective Action Plan Prior to 
Revocation or Suspension.--Subsection (c) of section 304 of the 
Controlled Substances Act (21 U.S.C. 824) is amended--
            (1) by striking the last two sentences;
            (2) by striking ``(c) Before'' and inserting ``(c)(1) 
        Before''; and
            (3) by adding at the end the following:
    ``(2) An order to show cause under paragraph (1) shall--
            ``(A) contain a statement of the basis for the denial, 
        revocation, or suspension, including specific citations to any 
        laws or regulations alleged to be violated by the applicant or 
        registrant;
            ``(B) direct the applicant or registrant to appear before 
        the Attorney General at a time and place stated in the order, 
        but not less than 30 days after the date of receipt of the 
        order; and
            ``(C) notify the applicant or registrant of the opportunity 
        to submit a corrective action plan on or before the date of 
        appearance.
    ``(3) Upon review of any corrective action plan submitted by an 
applicant or registrant pursuant to paragraph (2), the Attorney General 
shall determine whether denial, revocation or suspension proceedings 
should be discontinued, or deferred for the purposes of modification, 
amendment, or clarification to such plan.
    ``(4) Proceedings to deny, revoke, or suspend shall be conducted 
pursuant to this section in accordance with subchapter II of chapter 5 
of title 5, United States Code. Such proceedings shall be independent 
of, and not in lieu of, criminal prosecutions or other proceedings 
under this title or any other law of the United States.
    ``(5) The requirements of this subsection shall not apply to the 
issuance of an immediate suspension order under subsection (d).''.

SEC. 5. REPORT TO CONGRESS ON EFFECTS OF LAW ENFORCEMENT ACTIVITIES ON 
              PATIENT ACCESS TO MEDICATIONS.

    (a) In General.--Not later than 1 year after the date of enactment 
of this Act, the Secretary of Health and Human Services, acting through 
the Commissioner of Food and Drugs and the Director of the Centers for 
Disease Control and Prevention, and in consultation with the 
Administrator of the Drug Enforcement Administration and the Director 
of National Drug Control Policy, shall submit a report to the 
Committees on the Judiciary of the House of Representatives, the 
Committee on Energy and Commerce of the House of Representatives, the 
Committee on the Judiciary of the Senate, and the Committee on Health, 
Education, Labor and Pensions of the Senate identifying--
            (1) obstacles to legitimate patient access to controlled 
        substances;
            (2) issues with diversion of controlled substances; and
            (3) how collaboration between Federal, State, local, and 
        tribal law enforcement agencies and the pharmaceutical industry 
        can benefit patients and prevent diversion and abuse of 
        controlled substances.
    (b) Consultation.--The report under subsection (a) shall 
incorporate feedback and recommendations from the following:
            (1) Patient groups.
            (2) Pharmacies.
            (3) Drug manufacturers.
            (4) Common or contract carriers and warehousemen.
            (5) Hospitals, physicians, and other health care providers.
            (6) State attorneys general.
            (7) Federal, State, local, and tribal law enforcement 
        agencies.
            (8) Health insurance providers and entities that provide 
        pharmacy benefit management services on behalf of a health 
        insurance provider.
            (9) Wholesale drug distributors.

SOLUTION: Regulatory Transparency, Patient Access, and Effective Drug Enforcement Act of 2014 - Amends the Controlled Substances Act to direct the Attorney General, within 45 days of receiving a recommendation from the Secretary of Health and Human Services (HHS) to add a drug or substance that has never been marketed in the United States to a schedule of controlled substances, to issue an interim final rule under the exception for good cause, placing it into the schedule recommended, effective immediately. Allows a person who submits an application for registration to manufacture or distribute a controlled substance to indicate on the registration application that the substance will be used only in connection with clinical trials of a drug. Requires the Attorney General to: (1) make a final decision on such application within 180 days, or (2) provide written notice to the applicant of the outstanding issues that must be resolved to reach a final decision and the estimated date on which such decision will be made. Defines: (1) "factors as may be relevant to and consistent with the public health and safety," and (2) "imminent danger to the public health or safety." Requires an order to show cause as to why a registration should not be denied, revoked, or suspended to notify the registrant of the opportunity to submit a corrective action plan on or before the date of appearance before the Attorney General. Requires the Attorney General, upon review of any such plan, to determine whether denial, revocation, or suspension proceedings should be discontinued or deferred for purposes of modification or clarification of such plan. Makes these requirements inapplicable to the issuance of an immediate suspension order. Directs the Secretary, acting through the Commissioner of Food and Drugs (FDA) and the Director of the Centers for Disease Control and Prevention (CDC), to identify: (1) obstacles to legitimate patient access to controlled substances; (2) issues with diversion of controlled substances; and (3) how collaboration between federal, state, local, and tribal law enforcement agencies and the pharmaceutical industry can benefit patients and prevent diversion and abuse of controlled substances.

PROBLEM: SECTION 1. CAREERS TO CLASSROOMS.

    Title II of the Elementary and Secondary Education Act of 1965 (20 
U.S.C. 6601 et seq.) is amended--
            (1) by redesignating part E as part F;
            (2) by redesignating sections 2401 and 2402 as sections 
        2601 and 2602, respectively; and
            (3) by adding at the end the following:

                    ``PART G--CAREERS TO CLASSROOMS

``SEC. 2401. CAREERS TO CLASSROOMS.

    ``(a) Definitions.--In this section:
            ``(1) Alternative certification program.--The term 
        `alternative certification program' means a State-approved 
        program that--
                    ``(A) provides the education and training necessary 
                to enable an individual to be eligible for teacher 
                certification in the State within a reduced period of 
                time, compared to the time typically required to 
                receive such certification; and
                    ``(B) relies upon an individual's experience, 
                expertise, academic qualifications, or other factors in 
                lieu of traditional course work for eligibility to 
                receive a degree in the field of education.
            ``(2) Eligible individual.--The term `eligible individual' 
        means an individual--
                    ``(A) who has submitted an application described in 
                subsection (d) to be a certified teacher through a 
                State-approved alternative certification program in an 
                elementary school or secondary school;
                    ``(B) who has an associate, baccalaureate, or 
                advanced degree from an accredited institution of 
                higher education;
                    ``(C) who--
                            ``(i) has substantial, demonstrable career 
                        experience and competence in mathematics, 
                        natural science, computer science, engineering, 
                        foreign language or another field of expertise 
                        determined by the State to be a field for which 
                        there is a significant shortage of qualified 
                        teachers and teacher applicants in that State; 
                        or
                            ``(ii) within 5 years of the date on which 
                        the individual submits an application described 
                        in subparagraph (A)--
                                    ``(I) has received a baccalaureate 
                                or advanced degree from an accredited 
                                institution of higher education in a 
                                field of expertise described in clause 
                                (i); and
                                    ``(II)(aa) has graduated with at 
                                least a 3.0 grade point average (or 
                                equivalent average on a different 
                                scale) in the major or graduate program 
                                for which the individual obtained the 
                                degree;
                                    ``(bb) has graduated at least in 
                                the top 50 percent of the individual's 
                                undergraduate or graduate class;
                                    ``(cc) can demonstrate a high level 
                                of competence through a high level of 
                                academic performance in core academic 
                                coursework and through successful 
                                passage of academic subject tests 
                                required by the State under its 
                                alternative certification program; and
                                    ``(dd) meets any additional 
                                academic or other standards or 
                                qualifications established by the 
                                State;
                    ``(D) in the case of an individual receiving a 
                stipend under this section, who agrees to, in good 
                faith, seek employment and to consider offers of 
                employment in the individual's subject matter of 
                expertise in a high need elementary or secondary school 
                within that State; and
                    ``(E) who meets any additional teacher 
                certification or other requirements that may be 
                established by the State.
            ``(3) High need elementary or secondary school.--The term 
        `high need elementary or secondary school' means a school--
                    ``(A)(i) in which the percentage of students from 
                families below the Federal poverty level (as determined 
                by the Secretary) is 20 percent or more; and
                    ``(ii) that the State determines has experienced a 
                significant period in which teacher vacancies have 
                remained unfilled due to greater than normal difficulty 
                in recruiting or retaining qualified teachers;
                    ``(B) is within the top quartile of schools 
                statewide with regard to the number of unfilled, 
                available teacher positions; or
                    ``(C) is located in an area, other than a 
                metropolitan statistical area, that the State 
                determines has a high percentage of students from low-
                income families or is one that has experienced greater 
                than normal difficulty in recruiting or retaining 
                teachers.
    ``(b) Program Authorized.--The Secretary may award, on a 
competitive basis, grants to States to enable such States to carry out 
the following activities:
            ``(1) Teacher recruitment, education, training, referral, 
        placement, and retention activities to place eligible 
        individuals as certified teachers in public schools through 
        State-approved alternative certification programs.
            ``(2) To award stipends (in an amount not to exceed the 
        lesser of $5,000 per person or an amount equal to the total 
        costs of the types described in paragraphs (1), (2), (3), (8), 
        and (9) of section 472 of the Higher Education Act of 1965 
        incurred by the eligible individual in obtaining alternative 
        certification under this section) to eligible individuals who--
                    ``(A) are enrolled in a State authorized 
                alternative certification program; and
                    ``(B) agree to--
                            ``(i) seek certification through teacher 
                        certification programs in that State; and
                            ``(ii) teach in a high need school in that 
                        State;
        with a preference being given to individuals who are deemed 
        financially in need of such assistance by the State.
            ``(3) To provide grants, in a manner prescribed by the 
        State, in an amount not to exceed $5,000 per eligible 
        individual, per year, to high need elementary or secondary 
        schools to offset the teacher mentoring, alternative 
        certification, and other direct costs associated with accepting 
        eligible individuals under this section.
            ``(4) To develop, or to award grants to accredited 
        institutions of higher education for the development of, 
        alternative certification programs, with preference given to 
        programs tailored to eligible individuals under this section.
            ``(5) Other activities determined by the State to be 
        reasonably necessary to carry-out the purposes of this section.
    ``(c) Criteria for Awarding of Grants.--
            ``(1) In general.--To be eligible to receive a grant under 
        this section a State shall--
                    ``(A) submit to the Secretary an application that 
                contains--
                            ``(i) a description of the manner in which 
                        the State will carry out activities under this 
                        section; and
                            ``(ii) a description of the alternative 
                        certification program of the State or a 
                        description of the manner in which the State is 
                        attempting to implement an alternative 
                        certification program;
                    ``(B) provide assurances to the Secretary that the 
                State will submit to the Secretary, at the end of the 
                grant period, a report on how the activities carried 
                out with funds made available under the grant were 
                utilized, including a description of--
                            ``(i) the manner in which the funds were 
                        used to increase the number of qualified 
                        teachers hired in the State;
                            ``(ii) the manner in which the funds 
                        improved teacher quality;
                            ``(iii) the number of teachers hired under 
                        the grant;
                            ``(iv) the professional experience and 
                        field of expertise of each teacher hired under 
                        the grant; and
                            ``(v) the manner in which the funds were 
                        used to meet other objectives of this section 
                        or other objectives of the State with regard to 
                        teacher hiring, quality, retention, and student 
                        performance;
                    ``(C) provide assurances that amounts received 
                under the grant will be used to supplement and not 
                supplant other Federal, State, and local funds expended 
                to provide services for individuals and entities 
                eligible to receive funds under this section; and
                    ``(D) provide assurances to the Secretary that 
                amounts received under the grants will be expended 
                within 3 years of the receipt of such funds and agree 
                to return unused funds to the Secretary.
            ``(2) Preference.--The Secretary shall give preference in 
        the awarding of grants under this section to States that have 
        developed, or that are developing, alternative certification 
        programs that--
                    ``(A) rapidly place quality certified teachers into 
                the classroom;
                    ``(B) emphasize subject matter content; and
                    ``(C) lead to the certification and placement of a 
                large number of teachers in relation to the number of 
                public elementary school and secondary school teachers 
                in the State.
            ``(3) Limitations.--A grant under this section may be made 
        for a period of up to 3 years, and may not exceed $10,000,000 
        per year.
            ``(4) Geographic diversity.--To the extent practicable, the 
        Secretary shall award grants under this section to support 
        programs in different geographic regions of the United States.
    ``(d) Application by Eligible Individuals.--To be eligible to 
participate as an eligible individual under this section, an individual 
shall submit an application to the State, or to an entity or individual 
designated by the State to receive such applications. Such application 
shall include--
            ``(1) a description of the academic, professional, and 
        other qualifications of the individual, including the academic 
        or professional subject matter expertise of the individual;
            ``(2) a description of the subject matter area, and, if 
        applicable, the grade level, in which the individual desires to 
        teach;
            ``(3)(A) a description of whether the individual is seeking 
        a stipend under this section (if offered by the State); and
            ``(B) if the individual is seeking such a stipend, a 
        description of the willingness of the individual to teach in a 
        high need elementary or secondary school for at least 2 years 
        under this section; and
            ``(4) any other information or documentation that may be 
        required by the State.
    ``(e) Stipends.--
            ``(1) Counted for eligibility purposes.--A stipend received 
        by an eligible individual under this section shall be taken 
        into account in determining the eligibility of the individual 
        for Federal student-based financial assistance.
            ``(2) Repayment.--The recipient of a stipend under this 
        section shall repay amounts received under such stipend to the 
        State from which the stipend was received if--
                    ``(A) the recipient fails to complete the 
                applicable alternative certification program;
                    ``(B) the recipient rejects a bona fide offer of 
                employment during the 1-year period beginning on the 
                date on which the individual completes the applicable 
                alternative certification program; or
                    ``(C) the recipient fails to teach for at least 2 
                years in a public elementary school or secondary school 
                within that State during the 5-year period beginning on 
                the date on which the individual completes the 
                applicable alternative certification program.
            ``(3) Additional procedures.--A State that receives a grant 
        under this section may establish additional procedures and 
        rules with respect to the reimbursement of the State of any 
        stipend funds under paragraph (2), and shall retain such 
        reimbursed funds to carry out activities under this section.
            ``(4) Exceptions.--Paragraphs (2) and (3) shall not apply 
        during the period of time in which an eligible individual is--
                    ``(A) pursuing a full-time course of study;
                    ``(B) serving on active duty as a member of the 
                Armed Forces;
                    ``(C) temporarily totally disabled for a period of 
                time not to exceed 3 years;
                    ``(D) not able to secure employment for a period of 
                not more than 12 months by reason of the care required 
                by a spouse who is disabled; or
                    ``(E) otherwise exempted from the requirements of 
                such paragraphs as may be provided by the Secretary.
    ``(f) Public Awareness.--The Secretary shall disseminate and 
otherwise make available information concerning the program under this 
section, including--
            ``(1) through the posting of a website on the Internet to 
        enable interested persons to easily find information and 
        application material for participation in activities under this 
        section, that contains a nationwide, publicly searchable data 
        bank of all State programs and all available public elementary 
        and secondary teaching positions the Secretary is able to 
        practicably ascertain, and a means by which individuals may 
        apply to, or inquire of, multiple States' alternative 
        certification programs under this section;
            ``(2) providing information to every State about the 
        program under this section, including the criteria for State 
        and individual eligibility; and
            ``(3) conducting other activities, either directly or 
        through contract with other appropriate entities, to broaden 
        awareness and participation in the program under this section.
    ``(g) Authorization of Appropriations.--For the purpose of carrying 
out this section, there are authorized to be appropriated $50,000,000 
in fiscal year 2002, and such sums as may be necessary for each of 
fiscal years 2003 through 2007.''.

SOLUTION: Careers to Classrooms Act of 2001 - Amends the Elementary and Secondary Education Act of 1965 to establish a Careers to Classrooms program. Authorizes the Secretary of Education to award competitive grants to States for: (1) teacher recruitment, education, training, referral, placement, and retention activities to place eligible individuals as certified teachers in public schools through State-approved alternative certification programs; (2) stipends for eligible individuals enrolled in programs who agree to seek certification through teacher certification programs in that State and teach in a high-need school in that State, with preference for those individuals needing such assistance; (3) grants to high-need elementary or secondary schools to offset the teacher mentoring, alternative certification, and other direct costs associated with accepting eligible individuals under this Act; (4) grants to accredited institutions of higher education to develop alternative certification programs, with preference given to programs tailored to eligible individuals; and (5) other activities determined by the State to be reasonably necessary to carry out the purposes of this Act. Requires preference for such grants to be given to States that have developed, or are developing, alternative certification programs that: (1) rapidly place quality certified teachers into the classroom; (2) emphasize subject matter content; and (3) lead to the certification and placement of a large number of teachers in relation to the number of public elementary school and secondary school teachers in the State.

PROBLEM: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``District of Columbia Economic 
Recovery Act''.

SEC. 2. LIMITATION ON INCOME TAX IMPOSED ON INDIVIDUALS WHO ARE 
              RESIDENTS OF THE DISTRICT OF COLUMBIA.

    (a) In General.--Subchapter A of chapter 1 of the Internal Revenue 
Code of 1986 (relating to determination of tax liability) is amended by 
adding at the end the following new part:

``PART VIII--LIMITATION ON TAX IMPOSED ON RESIDENTS OF THE DISTRICT OF 
                                COLUMBIA

                              ``Sec. 59B. Limitation on tax.

``SEC. 59B. LIMITATION ON TAX.

    ``(a) General Rule.--The net income tax of an individual who is a 
resident of the District of Columbia for the taxable year shall not 
exceed the limitation determined under subsection (b) for such year.
    ``(b) Limitation.--The limitation determined under this subsection 
is the sum of the amounts determined under paragraphs (1) and (2).
            ``(1) 15-percent rate of district-sourced income in excess 
        of exemption amount.--The amount determined under this 
        paragraph is an amount equal to 15 percent of so much of 
        District-sourced income as exceeds the exemption amount.
            ``(2) Average rate of non-district-sourced adjusted gross 
        income.--The amount determined under this paragraph is an 
        amount equal to the average rate of the non-District-sourced 
        adjusted gross income.
    ``(c) Definitions.--For purposes of this section--
            ``(1) Resident of district of columbia.--An individual is a 
        resident of the District of Columbia for the taxable year if--
                    ``(A) such individual used a residence in the 
                District of Columbia as a place of abode (and was 
                physically present at such place) for at least 183 days 
                of such taxable year, and
                    ``(B) such individual files a District of Columbia 
                income tax return for such taxable year.
            ``(2) Net income tax.--The term `net income tax' means--
                    ``(A) the sum of regular tax liability and the tax 
                imposed by section 55 (determined without regard to 
                this section), reduced by
                    ``(B) the aggregate credits allowable under part IV 
                (other than section 31).
            ``(3) Exemption amount.--The term `exemption amount' 
        means--
                    ``(A) $30,000 in the case of a joint return or a 
                surviving spouse,
                    ``(B) $15,000 in the case of--
                            ``(i) an individual who is not a married 
                        individual and is not a surviving spouse, and
                            ``(ii) a married individual filing a 
                        separate return, and
                    ``(C) $25,000 in the case of a head of a household.
            ``(4) Average rate.--The term `average rate' means the 
        percentage determined by dividing--
                    ``(A) the sum (determined without regard to this 
                section) of the taxpayer's regular tax liability and 
                the tax imposed by section 55, by
                    ``(B) the taxpayer's taxable income.
        If the percentage determined under the preceding sentence is 
        not a whole number of percentage points, such percentage shall 
        be rounded to the nearest whole number of percentage points.
            ``(5) Regular tax liability.--The term `regular tax 
        liability' has the meaning given to such term by section 26(b).
    ``(d) District-Sourced Income.--For purposes of this section, the 
term `District-sourced income' means adjusted gross income reduced by 
the sum of--
            ``(1) non-District-sourced adjusted gross income,
            ``(2) net capital gain determined by taking into account 
        only gains and losses sourced in the District of Columbia,
            ``(3) the deduction allowed by section 170, and
            ``(4) the deduction allowed by section 163 to the extent 
        attributable to qualified residence interest (as defined in 
        section 163(h)).
    ``(e) Non-District-Sourced Adjusted Gross Income.--For purposes of 
this section, the term `non-District-sourced adjusted gross income' 
means gross income of the taxpayer from sources outside the District of 
Columbia reduced (but not below zero) by the deductions taken into 
account in determining adjusted gross income which are allocable to 
such income.
    ``(f) Sources of Income.--For purposes of this section--
            ``(1) Retirement income and other income not sourced under 
        subsection.--The source of any income not specifically provided 
        for in this subsection shall be treated as from sources within 
        the District of Columbia.
            ``(2) Personal services.--
                    ``(A) In general.--Compensation (other than 
                retirement income) for services performed by the 
                taxpayer as an employee, and net earnings from self-
                employment (as defined in section 1402)), shall be 
                sourced at the place such services are performed.
                    ``(B) Services performed in washington-baltimore 
                area treated as performed in the district of 
                columbia.--Services performed in the Washington-
                Baltimore area shall be treated as performed in the 
                District of Columbia.
                    ``(C) Individuals performing 80 percent of services 
                within washington-baltimore area.--If, during any 
                taxable year, at least 80 percent of the hours of 
                service performed by an individual are performed within 
                the Washington-Baltimore area, all such service shall 
                be treated for purposes of this paragraph as performed 
                within the District of Columbia.
                    ``(D) Washington-baltimore area.--For purposes of 
                this paragraph, the term `Washington-Baltimore area' 
                means the area consisting of--
                            ``(i) the Washington/Baltimore Consolidated 
                        Metropolitan Statistical Area (as designated by 
                        the Office of Management and Budget), and
                            ``(ii) St. Mary's County, Maryland.
            ``(3) Interest.--
                    ``(A) In general.--Interest received or accrued 
                during the taxable year shall be treated as from 
                sources outside the District of Columbia.
                    ``(B) Exception for small amounts of non-district-
                sourced interest.--Interest which would (but for this 
                subparagraph) be treated as from sources outside the 
                District of Columbia shall be treated as from sources 
                in the District of Columbia to the extent the amount of 
                such interest does not exceed $400.
                    ``(C) Exception for interest paid by district of 
                columbia businesses and residents.--
                            ``(i) Businesses.--In the case of interest 
                        paid during a calendar year by a debtor which 
                        was required to file (and filed) a franchise 
                        tax return with the District of Columbia for 
                        the debtor's taxable year ending with or within 
                        the prior calendar year, an amount equal to 
the D.C. percentage (as shown on such return) of such interest shall be 
treated as from sources within the District of Columbia. The preceding 
sentence shall apply only if such percentage is furnished to the 
taxpayer in writing on or before January 31 of the year following the 
calendar year in which such interest is paid.
                            ``(ii) Others.--Interest shall be treated 
                        as from sources within the District of Columbia 
                        if the interest is paid during a calendar year 
                        by a debtor--
                                    ``(I) which was required to file 
                                (and filed) an income tax return with 
                                the District of Columbia for the 
                                debtor's taxable year ending during the 
                                prior calendar year, and
                                    ``(II) which is not required to 
                                file a franchise tax return with the 
                                District of Columbia for such taxable 
                                year.
                    ``(D) Special rule for determination of d.c. 
                percentage for new businesses.--Interest shall be 
                treated as from sources within the District of Columbia 
                if the interest is paid during a calendar year by a 
                debtor which was required to file (and filed) a 
                franchise tax return with the District of Columbia for 
                such debtor's taxable year ending during such calendar 
                year, but which was not required to file such a return 
                for such debtor's prior taxable year.
            ``(4) Dividends.--
                    ``(A) In general.--Dividends received or accrued 
                during the taxable year shall be treated as from 
                sources outside the District of Columbia.
                    ``(B) Exception for small amounts of non-district-
                sourced dividends.--Dividends which would (but for this 
                subparagraph) be treated as from sources outside the 
                District of Columbia shall be treated as from sources 
                in the District of Columbia to the extent the amount of 
                such dividends do not exceed $400.
                    ``(C) Exception for dividends paid by corporation 
                engaged in business in the district of columbia.--In 
                the case of dividends paid during a calendar year by a 
                corporation which was required to file (and filed) a 
                franchise tax return with the District of Columbia for 
                the debtor's taxable year ending during the prior 
                calendar year, an amount equal to the D.C. percentage 
                (as shown on such return) of such dividends shall be 
                treated as from sources within the District of 
                Columbia. The preceding sentence shall apply only if 
                such percentage is furnished to the taxpayer in writing 
                on or before January 31 of the year following the 
                calendar year in which such dividends are paid.
            ``(5) Disposition of tangible property.--Income, gain, or 
        loss from the disposition of tangible property shall be sourced 
        to the place such property is located at the time of the 
        disposition.
            ``(6) Disposition of intangible property.--
                    ``(A) In general.--Income, gain, or loss from the 
                disposition of intangible property shall be treated as 
                from sources outside the District of Columbia.
                    ``(B) Exception.-- If any portion of the most 
                recent income received or accrued before such 
                disposition which was attributable to such property was 
                from sources within the District of Columbia, a like 
                portion of the income, gain, or loss from such 
                disposition shall be treated as from sources within the 
                District of Columbia.
            ``(7) Rentals.--Rents from property shall be sourced at the 
        place where such property is located.
            ``(8) Royalties.--Royalties shall be treated as from 
        sources outside the District of Columbia.
            ``(9) Income from proprietorship.--
                    ``(A) In general.--In the case of a trade or 
                business carried on by the taxpayer as a 
                proprietorship, income from such trade or business 
                (other than income which is included in net earnings 
                from self-employment by the taxpayer) shall be treated 
                as from sources outside the District of Columbia.
                    ``(B) Exception for district of columbia 
                businesses.--If the taxpayer is required to file (and 
                files) a franchise tax return with the District of 
                Columbia for the taxable year, subparagraph (A) shall 
                not apply to an amount equal to the D.C. percentage of 
                such income.
            ``(10) Income from partnership.--
                    ``(A) In general.--In the case of a taxpayer who is 
                a partner in a partnership, income from such 
                partnership (other than income which is included in net 
                earnings from self-employment by any partner) shall be 
                treated as from sources outside the District of 
                Columbia.
                    ``(B) Exceptions.--
                            ``(i) Subparagraph (A) shall not apply to a 
                        partnership which was required to file (and 
                        filed) a franchise tax return with the District 
                        of Columbia for the partnership's taxable year 
                        ending with or within the taxpayer's taxable 
                        year to the extent of the D.C. percentage of 
                        the taxpayer's distributive share of the 
                        partnership income.
                            ``(ii) Subparagraph (A) shall not apply to 
                        a partnership which was not required to file a 
                        franchise tax return with the District of 
                        Columbia for the partnership's taxable year 
                        ending with or within the taxpayer's taxable 
                        year to the extent of the taxpayer's 
                        distributive share of partnership income which 
                        is not (as determined under this subsection) 
                        from sources outside the District of Columbia.
            ``(11) Income in respect of a decedent; income from an 
        estate.--Income in respect of a decedent, and income from an 
        estate, shall be sourced at the place where the decedent was 
        domiciled at the time of his death.
            ``(12) Income from a trust.--Income (other than retirement 
        income) from a trust shall be treated as from the same sources 
        as the income of the trust to which it is attributable.
    ``(g) Definitions Relating to Subsection (f).--For purposes of 
subsection (f)--
            ``(1) Retirement income.--The term `retirement income' has 
        the meaning given such term by section 114(b)(1) of title 4, 
        United States Code (determined without regard to subparagraph 
        (I) thereof).
            ``(2) D.C. percentage.--The term `D.C. percentage' means 
        the percentage determined by dividing--
                    ``(A) the net income taxable in the District of 
                Columbia (as shown on the original return for the 
                taxable year), by
                    ``(B) total net income from all sources (as shown 
                on such return).
        The preceding sentence shall be applied based on amounts shown 
        on the original applicable District of Columbia franchise or 
        income tax return.
    ``(h) Section Not To Apply to Estates and Trusts.--This section 
shall not apply to an estate or trust.
    ``(i) Regulations.--The Secretary shall prescribe such regulations 
as may be necessary or appropriate to carry out the purposes of this 
section.''
    (b) Conforming Amendments.--
            (1) Paragraph (1) of section 55(c) of such Code is amended 
        by adding at the end the following: ``Such regular tax shall be 
        determined without regard to section 59B.''
            (2) The table of parts for subchapter A of chapter 1 of 
        such Code is amended by adding at the end the following new 
        item:

                              ``Part VIII. Limitation on tax imposed on 
                                        residents of the District of 
                                        Columbia.''
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after the date of the enactment of this 
Act.

SOLUTION:
District of Columbia Economic Recovery Act - Amends the Internal Revenue Code to set forth a limitation on the income tax imposed on individuals who are residents of the District of Columbia.  Specifies that the limitation is the sum of:   (1) 15 percent of so much District-sourced income as exceeds the exemption amount; and (2) the average rate of the non-District-sourced adjusted gross income. Sets forth definitions, including for "resident of the District of Columbia" and "exemption amount." 
Provides for the tax treatment of certain sources of income.