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 ''Rural Entrepreneur and
Microenterprise Assistance Act''.

SEC. 2. RURAL ENTREPRENEUR AND MICROENTERPRISE ASSISTANCE PROGRAM.

Subtitle D of the Consolidated Farm and Rural Development Act is
amended by inserting after section 364 (7 U.S.C. 2006f) the following:

''SEC. 365. RURAL ENTREPRENEUR AND MICROENTERPRISE ASSISTANCE PROGRAM.

''(a) Definitions.--In this section:
''(1) Economically disadvantaged microentrepreneur.--The
term 'economically disadvantaged microentrepreneur' means an
owner, majority owner, or developer of a microenterprise that
has the ability to compete in the private sector but has been
impaired because of diminished capital and credit
opportunities, as compared to other microentrepreneurs in the
industry.
''(2) Indian tribe.--The term 'Indian tribe' has the
meaning given the term in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450b).
''(3) Intermediary.--The term 'intermediary' means a
private, nonprofit entity that provides assistance--
''(A) to a microenterprise development
organization; or
''(B) for a microenterprise development program.
''(4) Low-income individual.--The term low-income
individual means an individual with an income (adjusted for
family size) of not more than the greatest of--
''(A) 80 percent of median income of an area;
''(B) 80 percent of the statewide non-metropolitan
area median income; or
''(C) 80 percent of the national median income.
''(5) Microcredit.--The term 'microcredit' means a business
loan or loan guarantee of not more than $50,000 that is
provided to a rural entrepreneur.
''(6) Microenterprise.--The term 'microenterprise' means--
''(A) a sole proprietorship; or
''(B) a business entity with not more than 10 full-
time-equivalent employees.
''(7) Microenterprise development organization.--
''(A) In general.--The term 'microenterprise
development organization' means a private, nonprofit
entity that--
''(i) provides training and technical
assistance to rural entrepreneurs; and
''(ii) facilitates access to capital or
another service described in subsection (b) for
rural entrepreneurs.
''(B) Inclusions.--The term 'microenterprise
development organization' includes an organization
described in subparagraph (A) with a demonstrated
record of delivering services to economically
disadvantaged microentrepreneurs, or an effective plan
to develop a program to deliver microenterprise
services to rural entrepreneurs effectively, as
determined by the Secretary.
''(8) Microenterprise development program.--The term
'microenterprise development organization' means a program
administered by an organization serving a rural area.
''(9) Microentrepreneur.--The term 'microentrepreneur'
means the owner, operator, or developer of a microenterprise.
''(10) Program.--The term 'program' means the rural
entrepreneur and microenterprise program established under
subsection (b)(1).
''(11) Qualified organization.--The term 'qualified
organization' means--
''(A) a microenterprise development organization or
microenterprise development program that has a
demonstrated record of delivering microenterprise
services to rural entrepreneurs, or an effective plan
to develop a program to deliver microenterprise
services to rural entrepreneurs effectively, as
determined by the Secretary.
''(B) an intermediary that has a demonstrated
record of delivery assistance to microenterprise
development organizations or microenterprise
development programs;
''(C) a microenterprise development organization or
microenterprise development program that serves rural
entrepreneurs;
''(D) an Indian tribe, the tribal government of
which certifies to the Secretary that no
microenterprise development organization or
microenterprise development program exists under the
jurisdiction of the Indian tribe;
''(E) a group of 2 or more organizations or Indian
tribes described in any of subparagraphs (A) through
(D) that agree to act jointly as a qualified
organization under this section; or
''(F) for purposes of subsection (b), a public
college or university.
''(12) Rural area.--The term 'rural area' means any
community that is rural in character and has a population of
not more than 25,000 individuals.
''(13) Rural capacity building service.--The term 'rural
capacity building service' means a service provided to an
organization that--
''(A) is, or is in the process of becoming, a
microenterprise development organization or
microenterprise development program; and
''(B) serves rural areas for the purpose of
enhancing the ability of the organization to provide
training, technical assistance, and other related
services to rural entrepreneurs.
''(14) Rural entrepreneur.--The term 'rural entrepreneur'
means a microentrepreneur, or prospective microentrepreneur--
''(A) the principal place of business of which is
in a rural area; and
''(B) that is unable to obtain sufficient training,
technical assistance, or microcredit elsewhere, as
determined by the Secretary.
''(15) Secretary.--The term 'Secretary' means the Secretary
of Agriculture, acting through the Rural Business-Cooperative
Service.
''(16) Tribal government.--The term 'tribal government'
means the governing body of an Indian tribe.
''(b) Rural Entrepreneurship and Microenterprise Program.--
''(1) Establishment.--The Secretary shall establish a rural
entrepreneurship and microenterprise program.
''(2) Purpose.--The purpose of the program shall be to
provide low-income individuals and moderate-income individuals
with--
''(A) the skills necessary to establish new small
businesses in rural areas; and
''(B) continuing technical and financial assistance
as individuals and business starting or operating small
businesses.
''(3) Grants.--
''(A) In general.--The Secretary may make a grant
under the program to a qualified organization--
''(i) to provide training, operational
support, or a rural capacity building service
to a qualified organization to assist the
qualified organization in developing
microenterprise training, technical assistance,
market development assistance, and other
related services, primarily for business with 5
or fewer full-time-equivalent employees;
''(ii) to assist in researching and
developing the best practices in delivering
training, technical assistance, and microcredit
to rural entrepreneurs; and
''(iii) to carry out such other projects
and activities as the Secretary determines to
be consistent with the purposes of this
section.
''(B) Subgrants.--Subject to such regulations as
the Secretary may promulgate, a qualified organization
that receives a grant under this paragraph may use the
grant to provide assistance to other qualified
organizations, such as small or emerging qualified
organizations.
''(C) Diversity.--In making grants under this
paragraph, the Secretary shall ensure, to the maximum
extent practicable, that grant recipients include
qualified organizations--
''(i) of varying sizes; and
''(ii) that serve racially- and ethnically-
diverse populations.
''(D) Cost sharing.--
''(i) Federal share.--The Federal share of
the cost of a project carried out using funds
from a grant made under this paragraph shall be
75 percent.
''(ii) Form of non-federal share.--The non-
Federal share of the cost of a project
described in clause (i) may be provided--
''(I) in cash (including through
fees, grants (including community
development block grants), and gifts);
or
''(II) in kind.
''(4) Rural microloan program.--
''(A) Establishment.--In carrying out the program,
the Secretary may carry out a rural microloan program.
''(B) Purpose.--The purpose of the rural microloan
program shall be to provide technical and financial
assistance to sole proprietorships and small businesses
located in rural areas with a particular focus on those
businesses with 5 or fewer full-time equivalent
employees.
''(C) Authority of secretary.--In carrying out the
rural microloan program, the Secretary may--
''(i) make direct loans to qualified
organizations for the purpose of making short-
term, fixed interest rate microloans to
startup, newly established, and growing rural
microbusiness concerns; and
''(ii) in conjunction with those loans,
provide grants in accordance with subparagraph
(E) to those qualified organizations for the
purpose of providing intensive marketing,
management, and technical assistance to small
business concerns that are borrowers under this
paragraph.
''(D) Loan duration; interest rates; conditions.--
''(i) Loan duration.--A loan made by the
Secretary under this paragraph shall be for a
term of 20 years.
''(ii) Applicable interest rates.--A loan
made by the Secretary under this paragraph to a
qualified organization shall bear an annual
interest rate of at least 1 percent.
''(iii) Deferral of interest and
principal.--The Secretary may permit the
deferral of payments, for principal and
interest, on a loan made under this paragraph
for a period of not more than 2 years,
beginning on the date on which the loan was
made.
''(E) Grant amounts.--
''(i) In general.--Except as otherwise
provided in this section, each qualified
organization that receives a loan under this
paragraph shall be eligible to receive a grant
to provide marketing, management, and technical
assistance to small business concerns that are
borrowers or potential borrowers under this
subsection.
''(ii) Maximum amount of grant for
microenterprise development organizations.--
Each microenterprise development organization
that receives a loan under this paragraph shall
receive an annual grant in an amount equal to
not more than 25 percent of the total
outstanding balance of loans made to the
microenterprise development organization under
this paragraph, as of the date of provision of
the grant.
''(iii) Matching requirement.--
''(I) In general.--As a condition
of any grant made to a qualified
organization under this subparagraph,
the Secretary shall require the
qualified organization to match not
less than 15 percent of the total
amount of the grant.
''(II) Sources.--In addition to
cash from non-Federal sources, a
matching share provided by the
qualified organization may include
indirect costs or in-kind contributions
funded under non-Federal programs.
''(c) Administrative Expenses.--Not more than 10 percent of
assistance received by a qualified organization for a fiscal year under
this section may be used to pay administrative expenses.
''(d) Funding.--
''(1) In general.--Not later than 30 days after the date of
enactment of this Act, and on October 1, 2008, and each October
1 thereafter through October 1, 2012, out of any funds in the
Treasury not otherwise appropriated, the Secretary of the
Treasury shall transfer to the Secretary to carry out this
section $50,000,000, to remain available until expended.
''(2) Allocation of funds.--Of the amount made available by
paragraph (1) for each fiscal year--
''(A) not less than $30,000,000 shall be available
for use in carrying out subsection (b)(3); and
''(B) not less than $20,000,000 shall be available
for use in carrying out subsection (b)(4), of which not
more than $7,000,000 shall be used to support direct
loans.
''(C) Receipt and acceptance.--The Secretary shall
be entitled to receive, shall accept, and shall use to
carry out this section the funds transferred under
paragraph (1), without further appropriation.''.
answer:
Rural Entrepreneur and Microenterprise Assistance Act - Amends the Consolidated Farm and Rural Development Act to direct the Secretary of Agriculture to establish a rural entrepreneur and microenterprise (sole proprietorship or business entity with not more than 10 full-time employees) program to help low- and moderate- income individuals acquire: (1) necessary skills to establish small rural businesses; and (2) technical and financial assistance.

Authorizes the Secretary to carry out a related rural microloan program to provide technical and financial assistance to sole proprietorships and small rural businesses with a particular focus on businesses with five or fewer full-time employees.

question:
SECTION 1. SHORT TITLE.

This Act may be cited as ''State Business Law Conformity Act of
2004''.

SEC. 2. REFERENCES TO GENERAL PARTNERS.

(a) Exclusion of Certain Active Businesses From at Risk Rules.--
Subclause (I) of section 465(c)(7)(D)(ii) of the Internal Revenue Code
of 1986 (defining qualified corporate partner) is amended to read as
follows:
''(I) such corporation is not
prohibited or limited under State law
from participation in the management or
business of the partnership.''.
(b) Payments to Retiring Partners.--Subparagraph (B) of section
736(b)(3) of such Code (relating to limitation on application of
paragraph (2)) is amended to read as follows:
''(B) any portion of the retiring or deceased
partner's distributive share of partnership income was
subject to tax under section 1401.''.
(c) Foreign Currency Transactions.--Subclause (I) of section
988(c)(1)(E)(v) of such Code is amended to read as follows:
''(I) Certain general partners.--
The interest of a partner in the
partnership shall not be treated as
failing to meet the 20-percent
ownership requirements of clause
(iii)(I) for any taxable year of the
partnership if for the taxable year of
the partner in which such partnership
taxable year ends--
''(aa) the partner is not
limited as to participation in
the management or activity of
the qualified fund, and
''(bb) such partner (and
each corporation filing a
consolidated return with such
partner) had no ordinary income
or loss from a section 988
transaction which is foreign
currency gain or loss (as the
case may be).''.
(d) Special Valuation Rules for Generation-Skipping Tax.--Clause
(ii) of section 2701(b)(2)(B) of such Code (relating to partnerships)
is amended to read as follows:
''(ii) in the case of a limited
partnership, the holding of any interest as a
partner who is not limited as to participation
in management or activity of the
partnership.''.
(e) Tax Matters Partner.--Paragraph (7) of section 6231(a) of such
Code (defining tax matters partner) is amended to read as follows:
''(7) Tax matters partner.--
''(A) In general.--The tax matters partner of any
partnership is--
''(i) the partner designated as the tax
matters partner as provided in regulations, or
''(ii) if there is no partner who has been
so designated, the partner having the largest
profits interest in the partnership at the
close of the taxable year involved (or, where
there is more than 1 such partner, the 1 of
such partners whose name would appear first in
an alphabetical listing).
''(B) Selection by secretary.--If there is no
partner designated under subparagraph (A)(i) and the
Secretary determines that it is impracticable to apply
subparagraph (A)(ii), the partner selected by the
Secretary shall be treated as the tax matters partner.
The Secretary shall, within 30 days of selecting a tax
matters partner under the preceding sentence, notify
all partners required to receive notice under section
6223(a) of the name and address of the person selected.
''(C) Restriction on designation of partner.--A
partner may not be designated as a tax matters partner
under subparagraph (A)(i) unless such partner is not
limited as to participation in management or activity
of the partnership.''.
(f) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2004.

SEC. 3. REFERENCES TO LIMITED PARTNERS.

(a) Limited Entrepreneur.--
(1) In general.--Subparagraph (A) of section 464(e)(2) of
the Internal Revenue Code of 1986 (defining limited
entrepreneur) is amended by striking ''other than as a limited
partner''.
(2) Conforming amendments.--
(A) Section 464(c) of such Code is amended--
(i) by striking ''limited partners or'' in
paragraph (1)(B),
(ii) by striking ''a limited partner or''
in paragraph (2).
(B) Section 1256 of such Code is amended--
(i) by striking ''limited partners or''
each place it appears in subsections (e)(3)(B)
and (f)(4),
(ii) by striking ''a limited partner or''
in subsection (e)(3)(C), and
(iii) by striking ''limited partner or''
both places it appears in the heading and text
of subsection (e)(4)(A)(i).
(C) Section 1258(d)(5)(C) of such Code is amended--
(i) by striking ''limited partner or'' in
the matter preceding subclause (i),
(ii) by striking ''limited partner's (or
limited entrepreneur's) in subclause (i) and
inserting ''limited entrepreneur's'', and
(iii) by striking ''partners and limited''
in the heading.
(b) Passive Loss Rules.--
(1) Subsection (h) of section 469 of such Code is amended
by striking paragraph (2) and by redesignating paragraphs (3),
(4), and (5) as paragraphs (2), (3), and (4), respectively.
(2) Subparagraph (A) of section 469(c)(7) of such Code is
amended by striking the last sentence.
(3) Paragraph (6) of section 469(i) of such Code is amended
by striking subparagraph (C) and by redesignating subparagraph
(D) as subparagraph (C).
(4) Subsection (f) of section 772 of such Code (relating to
special rules for applying passive loss limitations) is amended
to read as follows:
''(f) Special Rules for Applying Passive Loss Limitations.--
''(1) In general.--If any person holds an interest in an
electing large partnership other than as a partner described in
paragraph (3)--
''(A) paragraph (2) of subsection (c) shall not
apply to such partner, and
''(B) such partner's distributive share of the
partnership items allocable to passive loss limitation
activities shall be taken into account separately to
the extent necessary to comply with the provisions of
section 469.
''(2) Exception.--Paragraph (1) shall not apply to any
items allocable to an interest held as a partner described in
paragraph (3).
''(3) Partner described.--For purposes of this subsection,
a partner is described in this paragraph if the partner is a
person whose participation in the management or business
activity of the partnership is limited under applicable State
law.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2004.

SEC. 4. PARTNERSHIP INCOME ATTRIBUTABLE TO CAPITAL EXCLUDED FROM NET
EARNINGS FROM SELF-EMPLOYMENT.

(a) In General.--Paragraph (13) of section 1402(a) of the Internal
Revenue Code of 1986 is amended to read as follows:
''(13) there shall be excluded the distributive share of
net income of a partner attributable to capital;''.
(b) Partnership Income Attributable to Capital.--Section 1402 of
such Code is amended by adding at the end the following new subsection:
''(l) Partnership Income Attributable to Capital.--
''(1) In general.--For purposes of subsection (a)(13), the
following amounts shall be treated as income attributable to
capital--
''(A) the amount, if any, in excess of what would
constitute reasonable compensation for services
rendered by such partner to the partnership, and
''(B) an amount equal to a reasonable rate of
return on unreturned capital of the partner determined
as of the beginning of the taxable year.
''(2) Definitions.--For purposes of paragraph (1)--
''(A) Unreturned capital.--The term 'unreturned
capital' means the excess of the aggregate amount of
money and the fair market value as of the date of
contribution of other consideration (net of
liabilities) contributed by the partner over the
aggregate amount of money and the fair market value as
of the date of distribution of other consideration (net
of liabilities) distributed by the partnership to the
partner, increased or decreased for the partner's
distributive share of all reportable items as
determined in section 702. If the partner acquires a
partnership interest and the partnership makes an
election under section 754, the partner's unreturned
capital shall take into account appropriate adjustments
under section 743.
''(B) Reasonable rate of return.--A reasonable rate
of return on unreturned capital shall equal 150 percent
(or such higher rate as is established in regulations)
of the highest applicable Federal rate, as determined
under section 1274(d)(1), at the beginning of the
partnership's taxable year.
''(3) Regulations.--The Secretary shall prescribe such
regulations as may be necessary to carry out the purposes of
this subsection.''.
(c) Effective Date.--The amendments made by this section shall
apply with respect to services performed in taxable years beginning
after December 31, 2004.

SEC. 5. REPEAL OF ABILITY TO ELECT LARGE PARTNERSHIP REPORTING RULES.

(a) In General.--Paragraph (2) of section 775(a) of the Internal
Revenue Code of 1986 (relating to election) is amended by adding at the
end the following: ''No election under this subsection shall be made
after December 31, 2004.''.
(b) Effective Date.--The amendment made by this section shall apply
to partnership taxable years beginning after December 31, 2004.
answer:
State Business Law Conformity Act of 2004 - Amends the Internal Revenue Code to: (1) revise certain partnership tax definitions and rules relating to general and limited partners; (2) exclude from net earnings from self-employment partnership income attributable to capital; and (3) repeal, after 2004, the election to apply large partnership (100 partners or more) tax rules.

question:
SECTION 1. SHORT TITLE.

This Act may be cited as the ''Public Employer's Restitution Act
of 2003'' .

SEC. 2. ALIENATION OF PENSION PLAN BENEFITS TO SATISFY COURT JUDGMENTS,
DECREES, OR ORDERS REQUIRING RESTITUTION FOR EMBEZZLEMENT
OF STATE OR LOCAL GOVERNMENT FUNDS.

(a) Amendment to the Employee Retirement Income Security Act of
1974.--
(1) In general.--Section 206(d) of the Employee Retirement
Income Security Act of 1974 (29 U.S.C. 1056(d)) is amended by
adding at the end the following new paragraph:
''(6)(A) Paragraph (1) shall apply to the creation, assignment, or
recognition of a right to any benefit payable with respect to a
participant pursuant to an embezzlement restitution order, except that
paragraph (1) shall not apply if the order is determined to be a
qualified embezzlement restitution order. Each pension plan shall
provide for the payment of benefits in accordance with the applicable
requirements of any qualified embezzlement restitution order.
''(B) For purposes of this paragraph--
''(i) the term 'qualified embezzlement restitution order'
means an embezzlement restitution order--
''(I) which creates or recognizes the existence of
an aggrieved State or local government's right to, or
assigns to an aggrieved State or local government the
right to, receive all or a portion of the benefits
payable with respect to a participant under a plan, and
''(II) with respect to which the requirements of
subparagraphs (C) and (D) are met, and
''(ii) the term 'embezzlement restitution order' means an
order arising under a judgment of conviction of an individual
by a court of competent jurisdiction of the crime of
embezzlement in violation of the applicable laws of the United
States or of any State or political subdivision thereof, which
provides for restitution to the government of any State or
political subdivision thereof of losses sustained by such
government in connection with embezzlement of the funds of such
government by such individual.
''(C) A qualified embezzlement restitution order meets the
requirements of this subparagraph only if such order clearly
specifies--
''(i) the name and the last known mailing address (if any)
of the participant and the name and mailing address of each
aggrieved State or local government covered by the order,
''(ii) the amount or percentage of the participant's
benefits to be paid by the plan to each such aggrieved State or
local government, or the manner in which such amount or
percentage is to be determined,
''(iii) the number of payments or period to which such
order applies, and
''(iv) each plan to which such order applies.
''(D) A qualified embezzlement restitution order meets the
requirements of this subparagraph only if such order--
''(i) does not require a plan to provide any type or form
of benefit, or any option, not otherwise provided under the
plan,
''(ii) does not require the plan to provide increased
benefits (determined on the basis of actuarial value), and
''(iii) does not require the payment of benefits to the
government of any State or political subdivision thereof which
are required to be paid to any other entity--
''(I) as an aggrieved State or local government
under another order previously determined to be a
qualified embezzlement restitution order, or
''(II) as an alternate payee under an order
previously determined to be a qualified domestic
relations order (as defined in paragraph (3)(B)(i)).
''(E) The provisions of subparagraphs (E), (G), (H), (I), and (M)
of paragraph (3) shall apply for purposes of this paragraph in the same
manner and to the same extent as such subparagraphs apply for purposes
of paragraph (3), except that--
''(i) any reference to a 'qualified domestic relations
order' or a 'domestic relations order' shall be deemed a
reference to a qualified embezzlement restitution order or an
embezzlement restitution order, respectively, and
''(ii) any reference to an 'alternate payee' shall be
deemed a reference to an aggrieved State or local government.
''(F) Notwithstanding subparagraph (A), paragraph (1) shall apply
with respect to the creation, assignment, or recognition of a right to
any benefit payable with respect to a participant pursuant to any
embezzlement restitution order if the requirements of paragraph (4)(C)
are met with respect to the plan. In applying paragraph (4)(C) and
paragraph (5) for purposes of this subparagraph--
''(i) any reference to an 'offset' shall be deemed a
reference to the creation, assignment, or recognition of a
right to any benefit payable with respect to the participant
pursuant to an embezzlement restitution order,
''(ii) any reference to a 'judgment, order, decree, or
settlement' to pay an amount to the plan shall be deemed a
reference to the embezzlement restitution order, and
''(iii) any reference to a 'violation of part 4' of
subtitle B shall be deemed a reference to embezzlement in
violation of the applicable laws of the United States or of any
State or political subdivision thereof.
''(G) For purposes of this paragraph, the term 'aggrieved State or
local government' means, with respect to any plan participant, the
government of a State or a political subdivision thereof that is
recognized by an embezzlement restitution order as having a right to
receive as restitution all, or a portion of, the benefits payable under
the plan with respect to such participant.
''(H) This paragraph shall not apply to any plan to which paragraph
(1) does not apply.
''(I) In prescribing regulations under this paragraph, the
Secretary shall consult with the Secretary of the Treasury.''.
(2) Clarification of preemption provision.--Paragraph (7)
of section 514(b) of such Act (29 U.S.C. 1144(b)(7)) is amended
by inserting ''qualified embezzlement restitution orders
(within the meaning of section 206(d)(6)(B)(i)),'' after
''section 206(d)(3)(B)(i)),''.
(b) Amendments to the Internal Revenue Code of 1986.--
(1) In general.--Paragraph (13) of section 401(a) of the
Internal Revenue Code of 1986 (relating to assignment and
alienation) is amended by adding at the end the following new
subparagraph:
''(E) Special rules for qualified embezzlement
restitution orders.--Subparagraph (A) shall not apply
with respect to the creation, assignment, or
recognition of a right to any benefit payable with
respect to a participant pursuant to an embezzlement
restitution order, except that subparagraph (A) shall
not apply if the order is determined to be a qualified
embezzlement restitution order.''.
(2) Qualified embezzlement restitution order defined.--
Section 414 of such Code (relating to definitions and special
rules) is amended by adding at the end the following new
subsection:
''(w) Qualified Embezzlement Restitution Order Defined.--For
purposes of this subsection and section 401(a)(13)--
''(1) In general.--
''(A) Qualified embezzlement restitution order.--
The term 'qualified embezzlement restitution order'
means an embezzlement restitution order--
''(i) which creates or recognizes the
existence of an aggrieved State or local
government's right to, or assigns to an
aggrieved State or local government the right
to, receive all or a portion of the benefits
payable with respect to a participant under a
plan, and
''(ii) with respect to which the
requirements of paragraphs (2) and (3) are met.
''(B) Embezzlement restitution order.--The term
'embezzlement restitution order' means an order arising
under a judgment of conviction of an individual by a
court of competent jurisdiction of the crime of
embezzlement in violation of the applicable laws of the
United States or of any State or political subdivision
thereof, which provides for restitution to the
government of any State or political subdivision
thereof of losses sustained by such government in
connection with the embezzlement of the funds of such
government by such individual.
''(2) Order must clearly specify certain facts.--A
qualified embezzlement restitution order meets the requirements
of this paragraph only if such order clearly specifies--
''(A) the name and the last known mailing address
(if any) of the participant and the name and mailing
address of each aggrieved State or local government
covered by the order,
''(B) the amount or percentage of the participant's
benefits to be paid by the plan to each such aggrieved
State or local government, or the manner in which such
amount or percentage is to be determined,
''(C) the number of payments or period to which
such order applies, and
''(D) each plan to which such order applies.
''(3) Order may not alter amount, form, etc., of
benefits.--A qualified embezzlement restitution order meets the
requirements of this paragraph only if such order--
''(A) does not require a plan to provide any type
or form of benefit, or any option, not otherwise
provided under the plan,
''(B) does not require the plan to provide
increased benefits (determined on the basis of
actuarial value), and
''(C) does not require the payment of benefits to
the government of any State or political subdivision
thereof which are required to be paid to any other
entity--
''(i) as an aggrieved State or local
government under another order previously
determined to be a qualified embezzlement
restitution order, or
''(ii) as an alternate payee under an order
previously determined to be a qualified
domestic relations order (as defined in
subsection (p)(1)(A)).
''(4) Application of certain provisions.--The provisions of
paragraphs (4), (6), (7), (10), (11), and (12) of subsection
(p) shall apply for purposes of this subsection and section
401(a)(13) in the same manner and to the same extent as such
paragraphs apply for purposes of subsection (p) and section
401(a)(13), except that--
''(A) any reference to a 'qualified domestic
relations order' or a 'domestic relations order' shall
be deemed a reference to a qualified embezzlement
restitution order or an embezzlement restitution order,
respectively, and
''(B) any reference to an 'alternate payee' shall
be deemed a reference to an aggrieved State or local
government.
''(5) Inapplicability of embezzlement restitution orders in
the case of certain survivor annuity requirements applicable to
spouse.--Notwithstanding section 401(a)(13)(E), section
401(a)(13)(A) shall apply with respect to the creation,
assignment, or recognition of a right to any benefit payable
with respect to a participant pursuant to any embezzlement
restitution order if the requirements of section
401(a)(13)(C)(iii) are met with respect to the plan. In
applying subparagraphs (C)(iii) and (D) of section 401(a)(13)
for purposes of this paragraph--
''(A) any reference to an 'offset' shall be deemed
a reference to the creation, assignment, or recognition
of a right to any benefit payable with respect to the
participant pursuant to an embezzlement restitution
order,
''(B) to pay an amount to the plan shall be deemed
a reference to the embezzlement restitution order, and
''(C) any reference to a 'violation of part 4' of
subtitle B of title I of the Employee Retirement Income
Security Act of 1974 shall be deemed a reference to
embezzlement in violation of the applicable laws of the
United States or of any State or political subdivision
thereof.
''(6) Aggrieved state or local government.--The term
'aggrieved State or local government' means, with respect to
any plan participant, the government of any State or political
subdivision thereof that is recognized by an embezzlement
restitution order as having a right to receive as restitution
all, or a portion of, the benefits payable under the plan with
respect to such participant.
''(7) Subsection not to apply to plans to which section
401(a)(13) does not apply.--This subsection shall not apply to
any plan to which section 401(a)(13) does not apply. For
purposes of this title, except as provided in regulations, any
distribution from an annuity contract under section 403(b)
pursuant to a qualified embezzlement restitution order shall be
treated in the same manner as a distribution from a plan to
which section 401(a)(13) applies.
''(8) Consultation with the secretary.--In prescribing
regulations under this subsection and section 401(a)(13), the
Secretary of Labor shall consult with the Secretary.''.
(c) Effective Date.--The amendments made by this Act shall take
effect January 1, 2004.
answer:
Public Employer's Restitution Act of 2003 - Amends the Employee Retirement Income Security Act of 1974 (ERISA) and the Internal Revenue Code to allow alienation of an individual's benefits under certain pension plans in order to satisfy, in part or whole, court judgments, decrees, or orders requiring restitution for embezzlement of State or local government funds (qualified embezzlement restitution orders).

Gives priority, before payment of such benefits to a State or local government under such an order, to their payment to any other aggrieved State or local government under a previously determined qualified: (1) embezzlement restitution order; or (2) domestic relations order that has such government as an alternate payee.