Teacher: In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
Teacher: Now, understand the problem? If you are still confused, see the following example:
SECTION 1. LIABILITY OF BUSINESS ENTITIES PROVIDING USE OF FACILITIES
TO NONPROFIT ORGANIZATIONS.

(a) Definitions.--In this section:
(1) Business entity.--The term ''business entity'' means a
firm, corporation, association, partnership, consortium, joint
venture, or other form of enterprise.
(2) Facility.--The term ''facility'' means any real
property, including any building, improvement, or appurtenance.
(3) Gross negligence.--The term ''gross negligence'' means
voluntary and conscious conduct by a person with knowledge (at
the time of the conduct) that the conduct is likely to be
harmful to the health or well-being of another person.
(4) Intentional misconduct.--The term ''intentional
misconduct'' means conduct by a person with knowledge (at the
time of the conduct) that the conduct is harmful to the health
or well-being of another person.
(5) Nonprofit organization.--The term ''nonprofit
organization'' means--
(A) any organization described in section 501(c)(3)
of the Internal Revenue Code of 1986 and exempt from
tax under section 501(a) of such Code; or
(B) any not-for-profit organization organized and
conducted for public benefit and operated primarily for
charitable, civic, educational, religious, welfare, or
health purposes.
(6) State.--The term ''State'' means each of the several
States, the District of Columbia, the Commonwealth of Puerto
Rico, the Virgin Islands, Guam, American Samoa, the Northern
Mariana Islands, any other territory or possession of the
United States, or any political subdivision of any such State,
territory, or possession.
(b) Limitation on Liability.--
(1) In general.--Subject to subsection (c), a business
entity shall not be subject to civil liability relating to any
injury or death occurring at a facility of the business entity
in connection with a use of such facility by a nonprofit
organization if--
(A) the use occurs outside of the scope of business
of the business entity;
(B) such injury or death occurs during a period
that such facility is used by the nonprofit
organization; and
(C) the business entity authorized the use of such
facility by the nonprofit organization.
(2) Application.--This subsection shall apply--
(A) with respect to civil liability under Federal
and State law; and
(B) regardless of whether a nonprofit organization
pays for the use of a facility.
(c) Exception for Liability.--Subsection (b) shall not apply to an
injury or death that results from an act or omission of a business
entity that constitutes gross negligence or intentional misconduct,
including any misconduct that--
(1) constitutes a crime of violence (as that term is
defined in section 16 of title 18, United States Code) or act
of international terrorism (as that term is defined in section
2331 of title 18) for which the defendant has been convicted in
any court;
(2) constitutes a hate crime (as that term is used in the
Hate Crime Statistics Act (28 U.S.C. 534 note));
(3) involves a sexual offense, as defined by applicable
State law, for which the defendant has been convicted in any
court; or
(4) involves misconduct for which the defendant has been
found to have violated a Federal or State civil rights law.
(d) Superseding Provision.--
(1) In general.--Subject to paragraph (2) and subsection
(e), this Act preempts the laws of any State to the extent that
such laws are inconsistent with this Act, except that this Act
shall not preempt any State law that provides additional
protection from liability for a business entity for an injury
or death with respect to which conditions under subparagraphs
(A) through (C) of subsection (b)(1) apply.
(2) Limitation.--Nothing in this Act shall be construed to
supersede any Federal or State health or safety law.
(e) Election of State Regarding Nonapplicability.--This Act shall
not apply to any civil action in a State court against a business
entity in which all parties are citizens of the State if such State
enacts a statute--
(1) citing the authority of this subsection;
(2) declaring the election of such State that this Act
shall not apply to such civil action in the State; and
(3) containing no other provision.
Solution: Shields a business entity from civil liability relating to any injury or death occurring at a facility of that entity in connection with a use of such facility by a nonprofit organization if: (1) the use occurs outside the scope of business of the business entity; (2) such injury or death occurs during a period that such facility is used by such organization; and (3) the business entity authorized the use of such facility by the organization.
Makes this Act inapplicable to an injury or death that results from an act or omission of a business entity that constitutes gross negligence or intentional misconduct, including misconduct that: (1) constitutes a hate crime or a crime of violence or act of international terrorism for which the defendant has been convicted in any court; or (2) involves a sexual offense for which the defendant has been convicted in any court or misconduct for which the defendant has been found to have violated a Federal or State civil rights law.
Preempts State laws to the extent that such laws are inconsistent with this Act, except State law that provides additional protection from liability. Specifies that this Act shall not be construed to supersede any Federal or State health or safety law.
Makes this Act inapplicable to any civil action in a State court against a business entity in which all parties are citizens of the State if such State, citing this Act's authority and containing no other provision, enacts a statute declaring the State's election that this Act shall not apply to such action in the State.
Reason: This Bill focuses on shielding business entities from civil liability relating to an injury or death depending on the conditions of injury, hence the generated summary is correct.

Now, solve this instance: SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE.

(a) Short Title.--This Act may be cited as the ''Rural Renaissance
Act II of 2005''.
(b) Amendment of 1986 Code.--Except as otherwise expressly
provided, whenever in this Act an amendment or repeal is expressed in
terms of an amendment to, or repeal of, a section or other provision,
the reference shall be considered to be made to a section or other
provision of the Internal Revenue Code of 1986.

SEC. 2. CREDIT TO HOLDERS OF RURAL RENAISSANCE BONDS.

(a) In General.--Part IV of subchapter A of chapter 1 (relating to
credits against tax) is amended by adding at the end the following new
subpart:

''Subpart H--Nonrefundable Credit to Holders of Rural Renaissance Bonds

''Sec. 54. Credit to holders of rural renaissance bonds.

''SEC. 54. CREDIT TO HOLDERS OF RURAL RENAISSANCE BONDS.

''(a) Allowance of Credit.--In the case of a taxpayer who holds a
rural renaissance bond on a credit allowance date of such bond, which
occurs during the taxable year, there shall be allowed as a credit
against the tax imposed by this chapter for such taxable year an amount
equal to the sum of the credits determined under subsection (b) with
respect to credit allowance dates during such year on which the
taxpayer holds such bond.
''(b) Amount of Credit.--
''(1) In general.--The amount of the credit determined
under this subsection with respect to any credit allowance date
for a rural renaissance bond is 25 percent of the annual credit
determined with respect to such bond.
''(2) Annual credit.--The annual credit determined with
respect to any rural renaissance bond is the product of--
''(A) the credit rate determined by the Secretary
under paragraph (3) for the day on which such bond was
sold, multiplied by
''(B) the outstanding face amount of the bond.
''(3) Determination.--For purposes of paragraph (2), with
respect to any rural renaissance bond, the Secretary shall
determine daily or caused to be determined daily a credit rate
which shall apply to the first day on which there is a binding,
written contract for the sale or exchange of the bond. The
credit rate for any day is the credit rate which the Secretary
or the Secretary's designee estimates will permit the issuance
of rural renaissance bonds with a specified maturity or
redemption date without discount and without interest cost to
the qualified issuer.
''(4) Credit allowance date.--For purposes of this section,
the term 'credit allowance date' means--
''(A) March 15,
''(B) June 15,
''(C) September 15, and
''(D) December 15.
Such term also includes the last day on which the bond is
outstanding.
''(5) Special rule for issuance and redemption.--In the
case of a bond which is issued during the 3-month period ending
on a credit allowance date, the amount of the credit determined
under this subsection with respect to such credit allowance
date shall be a ratable portion of the credit otherwise
determined based on the portion of the 3-month period during
which the bond is outstanding. A similar rule shall apply when
the bond is redeemed or matures.
''(c) Limitation Based on Amount of Tax.--
''(1) In general.--The credit allowed under subsection (a)
for any taxable year shall not exceed the excess of--
''(A) the sum of the regular tax liability (as
defined in section 26(b)) plus the tax imposed by
section 55, over
''(B) the sum of the credits allowable under this
part (other than subpart C thereof, relating to
refundable credits).
''(2) Carryover of unused credit.--If the credit allowable
under subsection (a) exceeds the limitation imposed by
paragraph (1) for such taxable year, such excess shall be
carried to the succeeding taxable year and added to the credit
allowable under subsection (a) for such taxable year.
''(d) Rural Renaissance Bond.--For purposes of this section--
''(1) In general.--The term 'rural renaissance bond' means
any bond issued as part of an issue if--
''(A) the bond is issued by a qualified issuer,
''(B) 95 percent or more of the proceeds from the
sale of such issue are to be used for capital
expenditures incurred for 1 or more qualified projects,
''(C) the qualified issuer designates such bond for
purposes of this section and the bond is in registered
form, and
''(D) the issue meets the requirements of
subsections (e) and (g).
''(2) Qualified project; special use rules.--
''(A) In general.--The term 'qualified project'
means 1 or more projects described in subparagraph (B)
located in a rural area.
''(B) Projects described.--A project described in
this subparagraph is--
''(i) a water or waste treatment project,
''(ii) an affordable housing project,
''(iii) a community facility project,
including hospitals, fire and police stations,
and nursing and assisted-living facilities,
''(iv) a value-added agriculture or
renewable energy facility project for
agricultural producers or farmer-owned
entities, including any project to promote the
production, processing, or retail sale of
ethanol (including fuel at least 85 percent of
the volume of which consists of ethanol),
biodiesel, animal waste, biomass, raw
commodities, or wind as a fuel,
''(v) a distance learning or telemedicine
project,
''(vi) a rural utility infrastructure
project, including any electric or telephone
system,
''(vii) a project to expand broadband
technology,
''(viii) a rural teleworks project, and
''(ix) any project described in any
preceding clause carried out by the Delta
Regional Authority.
''(C) Special rules.--For purposes of this
paragraph--
''(i) any project described in subparagraph
(B)(iv) for a farmer-owned entity may be
considered a qualified project if such entity
is located in a rural area, or in the case of a
farmer-owned entity the headquarters of which
are located in a nonrural area, if the project
is located in a rural area, and
''(ii) any project for a farmer-owned
entity which is a facility described in
subparagraph (B)(iv) for agricultural producers
may be considered a qualified project
regardless of whether the facility is located
in a rural or nonrural area.
''(3) Special use rules.--
''(A) Refinancing rules.--For purposes of paragraph
(1)(B), a qualified project may be refinanced with
proceeds of a rural renaissance bond only if the
indebtedness being refinanced (including any obligation
directly or indirectly refinanced by such indebtedness)
was originally incurred after the date of the enactment
of this section.
''(B) Treatment of changes in use.--For purposes of
paragraph (1)(B), the proceeds of an issue shall not be
treated as used for a qualified project to the extent
that a borrower takes any action within its control
which causes such proceeds not to be used for a
qualified project. The Secretary shall prescribe
regulations specifying remedial actions that may be
taken (including conditions to taking such remedial
actions) to prevent an action described in the
preceding sentence from causing a bond to fail to be a
rural renaissance bond.
''(e) Maturity Limitations.--
''(1) Duration of term.--A bond shall not be treated as a
rural renaissance bond if such bond is issued as part of an
issue and--
''(A) the average maturity of bonds issued as a
part of such issue, exceeds
''(B) 120 percent of the average reasonable
expected economic life of the facilities being financed
with the proceeds from the sale of such issue.
''(2) Determination of averages.--For purposes of paragraph
(1), the determination of averages of an issue and economic
life of any facility shall be determined in accordance with
section 147(b).
''(3) Ratable principal amortization required.--A bond
shall not be treated as a rural renaissance bond unless it is
part of an issue which provides for an equal amount of
principal to be paid by the qualified issuer during each
calendar year that the issue is outstanding.
''(f) Credit Included in Gross Income.--Gross income includes the
amount of the credit allowed to the taxpayer under this section
(determined without regard to subsection (c)) and the amount so
included shall be treated as interest income.
''(g) Special Rules Relating to Expenditures.--
''(1) In general.--An issue shall be treated as meeting the
requirements of this subsection if--
''(A) at least 95 percent of the proceeds from the
sale of the issue are to be spent for 1 or more
qualified projects within the 5-year period beginning
on the date of issuance of the rural renaissance bond,
''(B) a binding commitment with a third party to
spend at least 10 percent of the proceeds from the sale
of the issue will be incurred within the 6-month period
beginning on the date of issuance of the rural
renaissance bond or, in the case of a rural renaissance
bond, the proceeds of which are to be loaned to 2 or
more borrowers, such binding commitment will be
incurred within the 6-month period beginning on the
date of the loan of such proceeds to a borrower, and
''(C) such projects will be completed with due
diligence and the proceeds from the sale of the issue
will be spent with due diligence.
''(2) Extension of period.--Upon submission of a request
prior to the expiration of the period described in paragraph
(1)(A), the Secretary may extend such period if the qualified
issuer establishes that the failure to satisfy the 5-year
requirement is due to reasonable cause and the related projects
will continue to proceed with due diligence.
''(3) Failure to spend required amount of bond proceeds
within 5 years.--To the extent that less than 95 percent of the
proceeds of such issue are expended within such 5-year period
(and no extension has been obtained under paragraph (2)), the
qualified issuer shall redeem all of the nonqualified bonds on
the earliest call date subsequent to the expiration of the 5-
year period. If such earliest call date is more than 90 days
subsequent to the expiration of the 5-year period, the
qualified issuer shall establish a yield-restricted defeasance
escrow within such 90 days to retire such nonqualified bonds on
the earlier of the date which is 10 years after the issue date
or the first call date. For purposes of this paragraph, the
term 'nonqualified bonds' means the portion of the outstanding
bonds in an amount that, if the remaining bonds were issued on
the fifth anniversary of the date of the issuance of the issue,
at least 95 percent of the proceeds of the remaining bonds
would be used to provide qualified projects.
''(h) Special Rules Relating to Arbitrage.--
''(1) In general.--A bond which is part of an issue shall
not be treated as a rural renaissance bond unless, with respect
to the issue of which the bond is a part, the qualified issuer
satisfies the arbitrage rebate requirements of section 148 with
respect to gross proceeds of the issue (other than any amounts
applied in accordance with subsection (g)). For purposes of
such requirements, yield over the term of an issue shall be
determined under the principles of section 148 based on the
qualified issuer's payments of principal, interest (if any),
and fees for qualified guarantees on such issue.
''(2) Exception.--Amounts on deposit in a bona fide debt
service fund with regard to any rural renaissance bond are not
subject to the arbitrage rebate requirements of section 148.
''(i) Qualified Issuer.--For purposes of this section--
''(1) In general.--The term 'qualified issuer' means any
not-for-profit cooperative lender which has as of the date of
the enactment of this section received a guarantee under
section 306 of the Rural Electrification Act and which meets
the requirement of paragraph (2).
''(2) User fee requirement.--The requirement of this
paragraph is met if the issuer of any rural renaissance bond
makes grants for economic and community development projects on
a semi-annual basis every year that such bond is outstanding in
an annual amount equal to /2\ of the rate on United States
Treasury bills of the same maturity multiplied by the
outstanding principal balance of rural renaissance bonds issued
by such issuer.
''(j) Special Rules Relating to Pool Bonds.--No portion of a pooled
financing bond may be allocable to loan unless the borrower has entered
into a written loan commitment for such portion prior to the issue date
of such issue.
''(k) Other Definitions and Special Rules.--For purposes of this
section--
''(1) Bond.--The term 'bond' includes any obligation.
''(2) Pooled financing bond.--The term 'pooled financing
bond' shall have the meaning given such term by section
149(f)(4)(A).
''(3) Rural area.--The term 'rural area' means any area
other than--
''(A) a city or town which has a population of
greater than 50,000 inhabitants, or
''(B) the urbanized area contiguous and adjacent to
such a city or town.
''(4) Partnership; s corporation; and other pass-thru
entities.--Under regulations prescribed by the Secretary, in
the case of a partnership, trust, S corporation, or other pass-
thru entity, rules similar to the rules of section 41(g) shall
apply with respect to the credit allowable under subsection
(a).
''(5) Bonds held by regulated investment companies.--If any
rural renaissance bond is held by a regulated investment
company, the credit determined under subsection (a) shall be
allowed to shareholders of such company under procedures
prescribed by the Secretary.
''(6) Treatment for estimated tax purposes.--Solely for
purposes of sections 6654 and 6655, the credit allowed by this
section to a taxpayer by reason of holding a rural renaissance
bond on a credit allowance date shall be treated as if it were
a payment of estimated tax made by the taxpayer on such date.
''(7) Reporting.--Issuers of rural renaissance bonds shall
submit reports similar to the reports required under section
149(e).''.
(b) Reporting.--Subsection (d) of section 6049 (relating to returns
regarding payments of interest) is amended by adding at the end the
following new paragraph:
''(8) Reporting of credit on rural renaissance bonds.--
''(A) In general.--For purposes of subsection (a),
the term 'interest' includes amounts includible in
gross income under section 54(f) and such amounts shall
be treated as paid on the credit allowance date (as
defined in section 54(b)(4)).
''(B) Reporting to corporations, etc.--Except as
otherwise provided in regulations, in the case of any
interest described in subparagraph (A), subsection
(b)(4) shall be applied without regard to subparagraphs
(A), (H), (I), (J), (K), and (L)(i) of such subsection.
''(C) Regulatory authority.--The Secretary may
prescribe such regulations as are necessary or
appropriate to carry out the purposes of this
paragraph, including regulations which require more
frequent or more detailed reporting.''.
(c) Clerical Amendments.--
(1) The table of subparts for part IV of subchapter A of
chapter 1 is amended by adding at the end the following new
item:

''Subpart H. Nonrefundable credit to holders of rural
renaissance bonds.''.
(2) Section 6401(b)(1) is amended by striking ''and G'' and
inserting ''G, and H''.
(d) Issuance of Regulations.--The Secretary of Treasury shall issue
regulations required under section 54 of the Internal Revenue Code of
1986 (as added by this section) not later than 120 days after the date
of the enactment of this Act.
(e) Effective Date.--The amendments made by this section shall
apply to bonds issued after the date of the enactment of this Act.
Student:
Rural Renaissance Act II of 2005 - Amends the Internal Revenue Code to allow holders of rural renaissance bonds a nonrefundable tax credit of 25 percent of the annual credit amount as determined by the Secretary of the Treasury. Defines "rural renaissance bond" as any bond issued by a nonprofit cooperative lender that is used for capital expenditures for qualified projects in rural areas, including projects for water or waste treatment, affordable housing, community facilities (e.g., hospitals, fire and police stations, nursing facilities, etc.), rural utility infrastructure, broadband technology, and rural teleworks.

Sets forth rules for maturity limitations, arbitrage, and expenditures, including a requirement that 95 percent of the proceeds from the sale of a bond issue be spent on qualified projects within five yeas from the date of a bond issuance.