United States · United States Congress · 28 January 1986
Prohibits any benefits payable from the Civil Service Retirement and Disability Fund, including cost-of-living increases, during calendar year 1987 from being subject to reduction or suspension by statute or presidential order.
United States · United States Congress · 23 January 1986
Amends the Internal Revenue Code to extend the termination date of the residential energy tax credit for solar property from December 31, 1985, to July 31, 1986. Sets forth definitions and special rules for solar property during such extension period. Extends the energy investment tax credit for solar energy property from December 31, 1985, to July 31, 1986. Sets forth special rules for solar property eligible for such credit during such extension period.
United States · United States Congress · 3 December 1985
Tax Reform Act of 1985 - Enacts the Internal Revenue Code of 1985. Title I: Individual Income Tax Provisions - Subtitle A: Rate Reductions; Increase in Standard Deduction and Personal Exemptions - Sets forth income tax rates for: (1) married individuals filing joint returns and surviving spouses; (2) heads of households; (3) unmarried individuals; and (4) married individuals filing separate returns and estates and trusts. Allows for cost-of-living adjustments in such tax rates. Allows for a basic standard deduction of: (1) $4,800 for married individuals filing joint returns and surviving spouses; (2) $4,200 for heads of households; (3) $2,950 for single individuals; and (4) $2,400 for married individuals filing separate returns. Allows an additional standard deduction of $600 for the elderly or blind. Provides for cost-of-living adjustments to such amounts. Limits the amount of allowable itemized deductions to the amount in excess of $500 multiplied by the number of personal exemptions taken. Increases the personal exemption amount to $2,000. Provides for cost-of-living adjustments to such amount. Repeals the additional personal exemption for the elderly or blind. Sets forth minimum income levels for individuals required to file income tax returns. Subtitle B: Provisions Relating to Tax Credits - Increases the amount of the earned income tax credit from 11 percent to 14 percent of the first $5,000 of income. Increases the income level at which the phase-out of such credit begins. Provides for cost-of-living adjustments to such amounts. Repeals the income tax credit for contributions to candidates for public office. Subtitle C: Provisions Related to Exclusions - Limits to $5,000 the amount of employer provided dependent care assistance which may be excluded from an employee's gross income. Includes in gross income the total amount of unemployment compensation received by an individual. Excludes from gross income any amount received as a qualified scholarship grant by an individual who is a candidate for a degree at an educational institution. Provides that such exclusion shall not apply to any payments for teaching, research, or other services by the individual as a condition for receiving such a scholarship. Subtitle D: Provisions Related to Deductions - Repeals the income tax deduction for two-earner married couples. Allows miscellaneous itemized income tax deductions only to the extent that the aggregate amount of such deductions exceeds one percent of adjusted gross income. Allows individuals who do not itemize deductions an income tax deduction for charitable contributions to the extent such contributions exceed $100. Repeals the income tax deduction for adoption expenses. Subtitle E: Miscellaneous Provisions - Repeals income averaging. Allows an income tax deduction for business meals, travel, and entertainment provided such expenses have a clear business purpose. Limits to 80 percent of the amount of meal and entertainment expenses allowed as a business expense deduction. Limits such a deduction for the costs of luxury skyboxes at sporting facilities. Limits the amount of such a deduction for the costs of luxury water transportation. Revises certain rules concerning the treatment of hobby losses and the business use of a home. Allows an income tax deduction for mortgage interest and real property taxes where a parsonage allowance or a military housing allowance has been received. Sets forth reporting requirements concerning payments of refunds of State or local income taxes and payment of State or local income taxes or real or personal property taxes. Subtitle F: Effective Dates - Sets forth effective dates for provisions of this Title. Title II: Capital Income Provisions - Subtitle A: Depreciation Provisions - Repeals the accelerated cost recovery system of depreciation. Replaces such system with an incentive depreciation system for tangible property. Sets forth the method of calculating the depreciation deduction under such method. Provides for the recapture of additional depreciation amounts for certain property placed in service after December 31, 1985. Sets forth the method of calculating such additional depreciation amount. Sets forth specified transitional rules and makes specified exemptions to the incentive depreciation system for tangible property. Subtitle B: Repeal of Regular Investment Tax Credit - Repeals the regular investment tax credit as of December 31, 1985. Makes exceptions for qualified progress expenditures for periods before January 1, 1986. Makes exceptions for certain transition property. Subtitle C: Changes in Certain Rapid Amortization Provisions - Repeals the five-year amortization of trademark and trade name expenditures. Repeals the five-year amortization of pollution control facilities. Makes permanent the allowance of depreciation of expenditures to rehabilitate low-income rental housing. Increases the amount of such expenditures permitted to be taken into account. Repeals the amortization of railroad grading and tunnel bores. Extends from 1986 to 1988 the expense treatment for removal of architectural barriers to the handicapped and elderly. Subtitle D: Other Capital Related Costs - Extends until 1988 the income tax credit for increasing research activities. Reduces the amount of such credit from 25 percent to 20 percent. Revises definitions and special rules relating to such income tax credit. Reduces the percentage of costs to be taken into account for purposes of the investment tax credit for rehabilitation expenditures. Revises certain definitions and special rules relating to such tax credit. Limits the amount of funds which may be deposited in a capital construction fund established under the Merchant Marine Act, 1936. Sets forth the method of calculating such limit. Exempts from taxation any funds deposited in such an account. Specifies the tax treatment of funds withdrawn from such an account. Subtitle E: Capital Gains and Losses - Reduces the deduction for capital gains from 60 percent to 42 percent (50 percent in 1986). Repeals provisions relating to the treatment of the gain or loss incurred on the disposal of coal or domestic iron ore with a retained economic interest. Includes depletion allowances in the calculation of any recapture of amounts realized from the disposition of an interest in oil, gas, or geothermal property. Subtitle F: Provisions Relating to Oil and Gas - Disallows the expensing of intangible drilling and development costs incurred after the start of installation of production casing. Provides that such costs not expensed may be amortized over 26 months. Phases out the percentage depletion allowance for oil and gas wells and geothermal deposits. Reduces such percentage from 15 percent to: (1) 10 percent in 1986; and (2) five percent in 1987. Terminates such allowance as of 1988. Continues the percentage depletion allowance of 15 percent for stripper wells. Disallows a percentage depletion for lease bonuses. Exempts from the windfall profit tax certain crude oil exchanged for residual fuel oil. Subtitle G: Treatment of Hard Minerals - Reduces the percentage depletion allowance to five percent for certain hard minerals. Allows a higher percentage depletion for: (1) dimension or ornamental stone; and (2) minerals used in the production of animal feed or fertilizer. Allows the expensing of development and mining exploration expenditures. Provides for recapture of such amounts upon commencement of the production stage with respect to any mine. Subtitle H: Provisions Relating to Energy Credits - Extends the tax credit for renewable energy source expenditures for solar property from 1985 to 1988. Revises the method of calculating such credit for expenditures made after December 31, 1985, and before January 1, 1989. Extends the energy investment tax credit for solar energy property and geothermal property at reduced percentage rates from 1985 to 1988. Terminates the income tax credit for producing fuel from a nonconventional source. Allows such credit, on a transitional basis, for fuel which is produced from a well drilled or facility placed in service before January 1, 1986, and which is sold before 1990. Repeals the income tax credit for alcohol used as a fuel. Reduces the excise tax exemption for qualified menthanol and ethanol fuels. Subtitle I: Extension of Other Credits - Extends the targeted jobs tax credit from 1985 to 1987. Revises the method of calculating such credit. Extends the income tax credit for clinical testing expenses for certain drugs from 1987 to 1988. Title III: Corporate Provisions - Subtitle A: Corporate Rate Reductions - Sets the rate of tax for corporations at: (1) 15 percent of taxable income as does not exceed $50,000; (2) 25 percent of taxable income between $50,000 and $75,000; and (3) 36 percent of taxable income in excess of $75,000. Imposes a five percent surtax on a corporation's taxable income in excess of $100,000 up to a maximum surtax of $13,250. Increases the alternative tax rate for net capital gains of corporations to 36 percent. Sets forth transitional rules for pre-1986 net capital gains. Subtitle B: Dividend Paid Deduction; Etc. - Allows a corporation an income tax deduction for ten percent of the dividends paid by such corporation during the taxable year. Phases in such percentage over ten years. Requires each corporation to establish a qualified dividend account (QDA). Limits the amount of dividends which may be taken into account for the dividends paid deduction to the amount in the corporation's qualified dividend account. Specifies the calculation of amounts to be placed in such an account. Disallows a dividends paid deduction for any dividends paid by: (1) a regulated investment company; (2) a real estate investment trust; (3) a subchapter S corporation; (4) cooperative organizations; and (5) a Foreign Sales Corporation or a Domestic International Sales Corporation. Reduces the deduction for dividends received by a corporation. Provides for a phase-in period for such reduction. Sets forth special rules for such deduction. Repeals the partial exclusion of dividends received by individuals. Disallows a business expense deduction for expenses incurred by a corporation in connection with the redemption of its stock. Subtitle C: Limitation on Net Operating Loss Carryforwards and Excess Credit Carryforwards - Revises rules for the calculation of the limitations on net operating loss carryovers in cases of a change in ownership of more than 50 percent of value of the stock of a loss corporation. Provides that taxable income available for offset by a pre-acquisition net operating loss shall be limited to a specified rate times the value of the loss corporation's equity. Revises rules for the calculation of the limitations of certain excess tax credits in such cases. Subtitle D: Recognition of Gain and Loss on Distributions of Property in Liquidation - Revises rules concerning distributions of property in corporate liquidations to require the recognition of gain or loss to a corporation on the distribution of property in complete liquidation as if such property were sold to the distributee at its fair market value. Provides specified exceptions to such treatment if such property is distributed to the shareholders of the liquidating corporation. Title IV: Tax Shelters - Extends present at-risk limitations on losses from businesses and income-producing activities to the activity of holding real property. Provides certain exceptions for certain third-party nonrecourse financing which is secured by real property used in the activity. Limits the deduction for nonbusiness interest on investment indebtedness. Sets forth definitions and special rules concerning such limitation. Title V: Alternative Minimum Tax - Revises the method of calculating the alternative minimum tax for corporations and individuals. Revises the types of tax preferences which may be taken into account in calculating such minimum tax. Disallows certain losses in the calculation of such minimum tax. Revises definitions and sets forth special rules with respect to such minimum tax. Allows an income tax credit for prior year minimum tax liability. Title VI: Foreign Tax Provisions - Subtitle A: Foreign Tax Credit Modifications - Subjects passive income, banking and insurance income, and shipping income to separate foreign tax credit limitations. Disallows a foreign tax credit for any withholding tax imposed on interest income received or accrued by a bank, insurance company, or other financial institution to the extent that the tax exceeds the U.S. tax which is attributable to the associated interest income. Treats a specified proportion of foreign income taxes paid by a foreign corporation as being paid by a domestic corporation if that domestic corporation owns ten percent or more of the voting stock of the foreign corporation. Subtitle B: Source Rules - Treats income derived by the sale of personal property by a U.S. resident as U.S. source income. Treats similar income derived by a nonresident as foreign source income. Sets forth rules for the determination of an individual's residence. Sets forth special rules for income derived from the sale of inventory property and gain from the sale of depreciable personal property. Exempts from the U.S. source rules interest received by certain financial institutions or by similar foreign financial institutions if such interest is effectively connected with the conduct of a trade or business of such financial institution in a foreign country. Treats as U.S. source income any transportation income attributable to transportation which begins or ends in the United States. Imposes a four percent tax on the gross transportation income of nonresident aliens and foreign corporations. Sets forth rules for the allocation and apportionment of expenses to foreign source income. Treats as U.S. source income any income derived from a space or ocean activity by a U.S. resident. Treats as non-U.S. source income any income derived from a space or ocean activity by a non-U.S. resident. Defines "space or ocean activity." Specifies exceptions for transportation and oil and gas activities. Revises present regulations providing for allocation of research and expenditures for a specified two-year period. Subtitle C: Taxation of Income Earned Through Foreign Corporations - Revises the definition of foreign personal holding company income to include: (1) dividends; (2) certain property transactions; (3) commodities transactions; and (4) foreign currency gains. Excludes from such income: (1) rents and royalties; and (2) certain income received from related persons. Revises the definition of insurance income for purposes of the tax on income earned through foreign corporations. Repeals the exclusion for reinvested shipping income. Revises the definitions of controlled foreign corporations and foreign personal holding companies to provide for a test based on value and voting power. Repeals the special treatment of corporations organized in United States possessions. Revises the treatment of foreign investment company stock by repealing the 50-percent U.S. ownership requirement. Treats a passive foreign investment company as a controlled foreign corporation except in specified circumstances. Provides that only effectively connected capital gains and losses of foreign corporations shall be taken into account for purposes of the accumulated earnings tax and personal holding company provisions. Subtitle D: Special Tax Provisions for United States Persons - Revises the method of calculating the Puerto Rico and Possessions tax credit. Specifies that nothing in the Panama Canal Treaty shall be construed as exempting any citizen or resident of the United States from tax on amounts received from the Panama Canal Commission. Reduces Foreign Sales Corporations and Domestic International Sales Corporation tax preferences by specified amounts. Limits the foreign earned income exclusion to $75,000 per year per U.S. individual. Exempts from taxable income interest received on obligations of the United States by banks organized in Guam which are otherwise not treated as being a foreign corporation. Subtitle E: Treatment of Foreign Taxpayers - Imposes a 30 percent branch-level tax on effectively connected income of foreign corporations. Sets forth special rules for the treatment of deferred payments arising out of business conducted within the United States by a nonresident alien individual or a foreign corporation. Provides that gain on the sale or exchange of property whose basis is determined in whole or in part by reference to the basis of U.S. property shall be treated as gain from the sale of U.S. property. Provides for a uniform rate of the excise tax on insurance and reinsurance polices issued by foreign insurers. Requires the withholding of the excise tax on foreign insurers. Subtitle F: Foreign Currency Transactions - Treats any foreign currency gain or loss attributable to specified types of transactions as ordinary income or loss. Provides that any amount treated as ordinary income or loss shall be treated as interest income or expense. Specifies certain exceptions. Sets forth definitions and special rules for the calculation of such a gain or loss. Subtitle G: Tax Treatment of Possessions - Part I: Treatment of Guam, American Samoa, and the Northern Mariana Islands - Authorizes Guam, American Samoa, and the Northern Mariana Islands to enact revenue laws with respect to income: (1) from sources within, or effectively connected with the conduct of a trade or business within, any such possession; or (2) received or accrued by any resident of such possession. Excludes from gross income any income from sources within Guam, American Samoa, and the Northern Mariana Islands received by an individual who is a bona fide resident of such a possession. Part II: Treatment of the Virgin Islands - Provides that residents of the United States who are not bona fide residents of the Virgin Islands and who have income derived from sources within the Virgin Islands shall pay an applicable percentage of income taxes to the Virgin Islands. Sets forth the method of calculating such applicable percentage. Authorizes the Virgin Islands to impose nondiscriminatory local income taxes. Authorizes the Secretary of the Treasury to prescribe regulations for purposes of determining tax liability incurred to the Virgin Islands. Allows a possession tax credit to Virgin Islands corporations. Part III: Cover Over of Income Taxes - Requires that the net collection of taxes imposed with respect to certain individuals shall be covered into the Treasury of the specified possession of which such individual is a bona fide resident. Applies such requirement to Guam, American Samoa, the Northern Mariana Islands, and the Virgin Islands. Part IV: Effective Dates - Sets forth the effective dates of the provisions of this subtitle. Title VII: Tax-Exempt Bonds - Revises rules relating to the exclusion of interest earned on State and local government bonds. Excludes interest earned on any State or local government bonds except: (1) nonessential function bonds which are not qualified bonds; (2) arbitrage bonds; and (3) any registration-required bond which is not in registered form. Defines a "nonessential function bond" as any bond issued as part of an issue if: (1) a specified percentage or more of the proceeds of such issue are to be used to make or finance loans to persons other than governmental units; or (2) a specified percentage or more of the gross proceeds of such issue are to be used in any trade or business carried on by any person other than a governmental unit. Defines a "qualified bond" as any nonessential function bond if such bond is: (1) an exempt facility bond; (2) a qualified mortgage bond; (3) a qualified veterans' mortgage bond; (4) a qualified small issue bond; (5) a qualified hospital bond or tax-exempt organization bond; (6) a qualified student loan bond; or (7) a qualified redevelopment bond. Defines each such qualified bond. Sets the volume cap of such qualified bonds which may be issued in a calendar year at the greater of: (1) an amount equal to $175 multiplied by the State population; or (2) $200,000,000. Defines an "arbitrage bond" as any State or local bond issued as part of an issue any portion of the proceeds of which are reasonably expected to be used directly or indirectly: (1) to acquire higher yielding investments; or (2) to replace funds which are used directly or indirectly to acquire higher yielding investments. Disallows a tax exemption for any State or local bond if such bond is federally guaranteed. Sets forth definitions and special rules. Repeals provisions relating to general stock ownership corporations. Sets forth effective dates and makes exceptions for presently binding agreements and certain projects presently under construction. Sets forth transitional rules. Title VIII: Financial Institutions - Repeals the deduction for additions to a bad debt reserve made by a large bank. Defines a bank as a "large bank" if for the year the average adjusted bases for all assets of such bank exceeded $500,000,000, or such bank was a member of a parent-subsidiary controlled group where the average adjusted bases of the assets of the group exceeded $500,000,000. Requires a large bank to take into income the balance of any bad debt reserve account over a five year period unless the bank makes an election to use the cut-off method for the bad debt reserves. Allows any domestic building and loan association, any mutual savings bank or any cooperative bank without capital stock organized and operated for mutual purposes and without profit to take a deduction for a reasonable addition to a reserve for bad debt. Provides that the amount of the deduction for additions to bad debt reserves based on a percentage of taxable income shall be limited to five percent of taxable income for such year. Repeals the percentage of eligible loans method for calculating the amount of the deduction. Provides that the reserves calculated under this provision will not be treated as tax preference items. Denies financial institutions (banks, thrift institutions, and other financial institutions) a deduction for that portion of the taxpayer's interest expense which is allocated to tax-exempt obligations acquired after December 31, 1985. Provides that the disallowance of interest expenses allocated to tax-exempt obligations must be applied before the application of the rules relating to the capitalization of preproductive expenses including interest and taxes. Repeals the special treatment of face-amount certificate companies. Repeals the special rules which permit financial institutions a ten-year carryback and a five-year carryforward of net operating losses. Repeals the special provisions relating to the acquisitions of financially-troubled thrift institutions and the exclusion from income and the basis reduction requirement of FSLIC payments to such thrift institutions. Provides that no deduction shall be disallowed relating to expenses allocable to tax-exempt income for any amount paid or incurred by a taxpayer on the ground that such amount is allocated to amounts of excluded FSLIC payments. Permits qualified individuals to elect to deduct losses on deposits in qualified financial institutions as casualty losses in the year in which the amount of the loss can be reasonably estimated. Defines "qualified individual" as any individual other than the owner of one percent or more of the value of the stock of the institution in which the loss was sustained, an officer of such institution, and certain relatives and related persons to such owners and officers. Prohibits the deduction of such loss as a bad debt deduction if this election is made by the taxpayer. Title IX: Accounting Provisions - Subtitle A: General Provisions - Permits eligible small businesses to elect to use the simplified dollar-value method of pricing inventories for purposes of the LIFO method of accounting for inventories. Requires, with the use of the simplified dollar-value LIFO method of inventory accounting, that inventories be grouped into pools in accordance with the major categories of the Producer Price Index or the CPI Detailed Report. Provides that the change in inventory costs for the pool for the taxable year is based on the change in the published index for the general category to which the pool relates. Defines "eligible small business" as a small business where the average annual gross receipts of the taxpayer for the three preceding taxable years do not exceed $5,000,000. Treats all taxpayers who are component members of a controlled group as one taxpayer for purposes of determining the gross receipts of the taxpayer. Provides that the election to use the simplified dollar-value method of inventory accounting may be made without the consent of the Secretary of the Treasury. Prohibits a corporation (other than a Subchapter S corporation) or a partnership where one of the partners is a corporation (other than a Subchapter S corporation) from computing their taxable income under the cash receipts and disbursement method of accounting. Excepts from this prohibition the following: (1) farming businesses; (2) entities where the incidence of taxation falls either at the individual level or on a qualified personal service corporation; or (3) taxpayers with average annual gross receipts of $5,000,000 or less. Provides that the prohibition on using the cash method of accounting shall apply to trusts subject to tax on unrelated trade or business income. Provides that, in the case of the provision of personal services, a taxpayer using the accrual basis of accounting is not required to accrue amounts for the performance of personal services earlier than when the amounts are billed by the taxpayer and will not be required to accrue any portion of such amounts which (on the basis of experience) will not be collected. Provides that if certain installment obligations are pledged as collateral for a loan, all or a portion of the proceeds of the loan generally will be treated as a payment received on such installment obligation thereby resulting in the recognition of gain equal to the product of the net loan proceeds and the gross profit ratio applicable to that obligation. Exempts from this rule installment obligations which have been pledged where the potential deferral of gain attributable to the portion so pledged does not exceed nine months. Provides an additional exception from this rule for installment obligations that are pledged for an indebtedness with a term not exceeding 90 days, and such indebtedness is not extended or refinanced during the 45-day period beginning on the day such indebtedness is repaid. Requires income from all long-term contracts to be reported under the percentage of completion method of accounting based on the estimated total cost of completion rather than physical completion. Requires, upon completion of the contract, the taxpayer to pay interest for any underpayment of tax with respect to a taxable year in which there was such underpayment or to receive an interest payment if there was an overpayment (i.e. the "look-back" method of computing interest payments). Allows the completed contract method of accounting to be used in the case of a contract for the construction of real property that is expected to be completed within the two-year period beginning on the commencement date of the contract if performed by a taxpayer whose average annual gross receipts over the three taxable years preceeding the taxable year in which such contract is entered into do not exceed $10,000,000. Requires any taxpayer who produces real or tangible personal property to capitalize: (1) the direct costs of such production; and (2) such production's proper share of those indirect costs (including taxes) part or all of which are assignable to such production. Exempts from this requirement: (1) personal use property; (2) research and experimental expenditures; (3) development and other costs of oil and gas wells or other mineral property; and (4) property subject to the long-term method of accounting. Sets forth special rules for capitalization of expenditures for farmers and ranchers. Provides specific rules for the capitalization of interest expenses in certain instances. Repeals the reserve method for computing expense deductions arising from bad debts for all taxpayers, other than certain financial institutions. Provides that no debt will be deductible as wholly or partially worthless for tax purposes until it is charged off on the taxpayer's books. Requires the balance of any reserve for bad debts, as of the effective date of this Act, to be taken into income ratably over a five-year period. Limits the deduction for additions to a reserve account for vacation pay to the vacation pay that is paid during the taxable year or within eight and one-half months following the close of the taxable year of the employer with respect to which the vacation pay was earned by the employees. Provides that amounts of any contribution in aid of construction or any other contribution as a customer or potential customer shall be included in the income of the taxpayer. Subtitle B: Provisions Relating to Timber - Permits the amortization of certain timber preproductive expenditures ratably over a 60-month period by qualified small timber producers. Defines "qualified small timber producers" as any taxpayer engaged in the trade or business of planting, cultivating, caring for, or cutting of trees if the timberland of the taxpayer does not exceed 75,000 acres. Phases out the allowance of the 60-month amortization period for taxpayers with acreage between 50,000 and 75,000. Repeals the capital gains treatment with respect to timber royalties and cutting income except for gains reported by natural persons, an estate, or a trust all the beneficiaries of which are natural persons or estates. Requires that the gains from timber of all taxpayers where such gains are attributable to timber grown on Federal lands are to be reported as ordinary income. Provides for a three-year transition period for the tax treatment of gains from timber received by corporations. Subtitle C: Special Provisions Relating to Agriculture - Repeals the provisions allowing expenditures for fertilizer and soil conditioning to be deducted currently. Repeals the provision allowing expenditures for the clearing of land in preparation for farming to be deducted currently. Limits the soil and water conservation expenditures that may be deducted currently to amounts incurred that are consistent with a conservation plan approved by the Soil Conservation Service of the Department of Agriculture for the area in which the land is located, and, if no plan exists for the particular area, amounts expended consistent with any conservation plan of a comparable State agency. Provides that expenditures for general earth moving, draining, and/or filling of wetlands, and for preparing land for installation and/or operation of a center pivot irrigation system may not be deducted under the special expensing provisions. Requires any gain realized on the disposition of "converted wetland" or "highly erodible cropland" to be treated as ordinary income and any loss on the disposition of such property to be treated as long-term capital loss. Defines "converted wetland" and "highly erodible cropland". Permits losses of a cooperative that are attributable to one or more allocation units (including a loss that is carried over from another year) to be offset against earnings of one or more other allocation units, but only to the extent that such earnings and losses are derived from business done with or for patrons. Allows the netting of gains and losses from one or more allocation units in certain transactions in which one cooperative acquires the assets of another cooperative. Requires a cooperative that offsets earnings and losses from one or more of its allocation units to notify its patrons in writing. Sets forth certain information of the cooperative which need not be disclosed. Requires the cooperative to furnish sufficient notice information to the patrons where a determination has been made by the Secretary that the cooperative failed to give sufficient notice to the patrons. Provides that the term "patent" includes a certificate of plant variety protection issued under the Plant Variety Protection Act. Title X: Insurance Products and Companies - Part I: Policyholder Issues - Requires all amounts paid to any beneficiary of a life insurance policy at a date later than the death of the insured to be included in gross income to the extent the death benefit represents a payment made by the insurance company for the use of the beneficiary's money, i.e. the unpaid death benefit. Prohibits the deduction of a nonbusiness casualty loss covered by insurance unless the taxpayer files a timely insurance claim with respect to such loss. Provides for the exclusion from income of amounts received with respect to structured settlement agreements only to the extent that the payment on account of a claim for personal injuries are the result of physical injury or physical sickness to the claimant. Part II: Life Insurance Companies - Repeals the special life insurance company deduction which allowed life insurance companies, in computing their life insurance company taxable income, to deduct 20 percent of the income from the insurance business in arriving at their taxable income. Provides that certain tax-exempt organizations shall be exempt from tax only if no substantial part of their activities consists of providing commercial-type insurance. Excludes form the definition of "commercial-type insurance": (1) insurance provided at substantially below cost to a class of charitable recipients; (2) incidential health insurance provided by a health maintenance organization of a kind customarily provided by such organization; and (3) property or casualty insurance provided by a church or convention or association of churches for such church or convention or association of churches. Directs the Secretary to prescribe regulations which provide, for Blue Cross and Blue Shield and their affiliates, special treatment for activities with respect to high-risk individuals and small groups. Permits a life insurance company to apply its current loss from operations and its unused operation loss carryovers against the increase in its taxable income attributable to the amount distributed from its policyholders surplus account if certain conditions are met. Part III: Property and Casualty Insurance Companies - Permits a property and casualty insurance company to deduct only 80 percent of the increase in unearned premiums on outstanding business for the taxable year. Includes in income over a five-year period 20 percent of the unearned premium reserve outstanding at the end of the most recent taxable year beginning before January 1, 1986. Requires the deduction for losses incurred to be reduced by a specified portion of the insurer's tax-exempt interest and of the deductible portion of dividends received (with special rules for dividends received from affiliates). Provides that the "specified portion" of tax-exempt interest and dividends shall be ten percent for taxable years beginning after December 31, 1985, increasing to 15 percent for taxable years beginning after December 31, 1987. Provides that for property and casualty insurance companies for taxable years beginning after December 31, 1987, if there is an adjusted net gain from operation of such company for the taxable year, the amount of the taxable income for such taxable year shall not be less than the amount which is 20/36 of such net gain from operation. Provides that if there is an adjusted net loss from operation of such company for such taxable year, the amount of the net operating loss of such company for such taxable year shall not be greater than the amount which is 20/36 of such adjusted net loss from operation. Repeals the deduction for contributions to protection against loss accounts loss accounts of mutual property and casualty insurance companies. Requires the balances in any protection against loss accounts to be includible in income over the first five taxable years beginning after December 31, 1985. Sets forth required percentages of the amount in the account to be included each year. Exempts from taxation mutual and stock property and casualty insurance companies if their net written premiums or direct written premiums (whichever is greater) do not exceed $500,000. Permits mutual and stock companies with net written premiums or direct written premiums (whichever is greater) in excess of $500,000 but less than $2,000,000 to elect to be taxed only on taxable investment income. Repeals the special deduction for small companies having a gross amount of less than $1,100,000. Requires the Secretary to study the tax treatment of policyholder dividends by mutual property and casualty insurance companies. Directs that such study be submitted to specified congressional committees no later than January 1, 1987. Gives the Secretary the authority to require the furnishing of such information as may be necessary to conduct the study. Requires the Secretary to conduct a study of the treatment of loss reserves of property and casualty insurance companies, and report such findings to specified Congressional committees no later than January 1, 1987. Gives the Secretary the authority to require the furnishing of such information as may be necessary to conduct the study. Title XI: Pension and Deferred Compensation; Fringe Benefits - Subtitle A: Pensions and Deferred Compensation - Part I: Limitations on Tax-Deferred Savings - Requires an individual's deduction to an individual retirement account to be reduced by the individual's elective deferrals under a qualified cash or deferred arrangement (to the extent the deferrals are not currently included in income) and any contributions to a tax-sheltered annuity made pursuant to a salary reduction agreement, to the extent the contribution is not currently included in income. Permits the spousal individual retirement account deduction to be made either if: (1) the spouse has no compensation for the taxable year; or (2) the spouse elects to be treated for the taxable year as having no compensation. Provides that the maximum amount that an employee can elect to defer for any taxable year under all cash or deferred arrangements in which the employee participates is limited to $7,000. Provides that the $7,000 limit is determined without regard to any community property laws. Provides that the $7,000 limit is increased by certain amounts if the employee is employed by certain qualified organizations such as an educational organization, hospital, home health service agency, church, or convention or association of churches. Permits the deferral of the imposition of these limits if there is a collective bargaining agreement in effect. Reduces the dollar limitation on contributions and benefits under a defined benefit plan from $90,000 to $77,000. Reduces the dollar limitation for defined contributions plans to the lesser of $25,000 or 25 percent of the defined benefit plan dollar limit or 25 percent of the participant's compensation. Provides that if retirement benefits under a defined benefit plan begin before the age 62, the $77,000 limit on retirement benefits is reduced so that it is the actuarial equivalent of an annual benefit beginning at age 62. Provides that in no event will the dollar limit for benefits commencing at or after the age of 55 be reduced below $65,000. Provides special rules regarding the retirement benefits for airline pilots, police, and firefighters. Permits a defined benefit plan to maintain a qualified cost-of-living arrangement under which employer and employee contributions may be applied to provide cost-of-living increases to a benefit. Provides that an employee of a nongovernmental tax-exempt organization shall not be considered to be in constructive receipt of compensation deferred under an eligible deferred compensation plan maintained by a tax-exempt organization if the plan satisfies the requirements applicable to eligible deferred compensation plans of State and local governments. Provides that the maximum amount of compensation of any one individual which may be deferred during any taxable year shall not exceed $7,500. Requires deferrals under an ineligible deferred compensation plan, agreement, or arrangement maintained by a nongovernmental tax-exempt entity are to be included in an employee's gross income when the amounts are not subject to a substantial risk of forfeiture. Part II: Nondiscrimination Requirements - Alters the special nondiscrimination tests applicable to qualified cash or deferred arrangements so that the actual deferral percentage under a cash or deferred arrangement by highly compensated employees for a plan year may not exceed either; (1) 125 percent of the actual deferral percentage of all non-highly compensated employees eligible to defer under the arrangement, or (2) the lesser of 200 percent of the actual deferral percentage of all eligible nonhighly compensated employees or the actual deferral percentage for all eligible nonhighly compensated employees plus two percentage points. Permits a qualified cash or deferred arrangement to make distributions on account of the plan's termination (provided no successor plan is established) as well as on account of the employee's death, disability, separation from service, or attainment of age 59 and one-half. Makes other modifications in the withdrawal requirements. Modifies the definition of "highly compensated employee" to mean an employee who, if at any time during the year of any of the two preceding years, is a five-percent owner of the employer, received compensation from the employer in excess of $50,000, or was in the top-paid group of employees. Provides that a cash or deferred arrangement will not be treated as disqualified if the amount of any excess contributions for the plan year is distributed before the close of the following plan year. Sets forth additional nondiscrimination requirements for employer matching contributions and employee contributions for defined contribution plans. Imposes a penalty tax on an employer making excess contributions to a qualified cash or deferred arrangement which is part of a qualified employee plan. Applies nondiscrimination rules to tax-sheltered annuity programs (other than those maintained for church employees). Provides that social security benefits earned with a prior employer shall not be taken into account in determining whether a defined benefit plan is discriminatory. Provides that benefits shall be treated as accruing ratably for purposes of determining whether an employee plan is top-heavy. Allows forfeitures arising in any defined contribution plan (including a money purchase pension plan) to be either: (1) reallocated to the accounts of other participants in a nondiscriminatory fashion; and (2) used to reduce future employer contributions or administrative costs. Part III: Treatment of Distributions - Imposes a penalty tax on certain accumulations in qualified retirement plans which fail to make required distributions. Revises rules relating to the inclusion in gross income of distributions from a qualified employee plan. Allows the averaging over five years to individuals receiving lump-sum distributions after age 59 and one-half. Limits such averaging to only one such lump-sum distribution. Repeals the capital gains treatment for such distributions. Increases from ten to 15 percent the penalty tax on early withdrawals from an individual retirement account. Extends such tax to early withdrawals by individuals from any qualified employee retirement plan. Part IV: Miscellaneous Provisions - Repeals the limit carryforward applicable to profit-sharing and stock bonus plans. Extends the combined plan deduction limit to any combination of a defined benefit pension plan and a money purchase pension plan. Requires that certain social security taxes be taken into account in applying the 15-percent and 25-percent compensation deduction limits. Imposes a ten percent excise tax on excess contributions to qualified plans. Imposes a ten percent excise tax on the reversion of qualified employee plan assets to an employer. Imposes a 15 percent excise tax on excess distributions to an individual from a qualified employee plan. Reduces the $50,000 limit on loans to a participant in a qualified employee plan by an amount equal to the participant's highest outstanding loan balance during the preceding 12-month period. Specifies that deferred annuities shall be made available only to natural persons. Requires the Secretary of the Treasury to conduct a study and report to the Congress concerning the effect of the existing coverage requirements for qualified employee plans and changes which should be made in such requirements. Provides that any amendments made necessary by provisions of this Act shall not be required to be made before the first plan year beginning on or after January 1, 1988. Imposes a penalty tax on underpayments attributable to overstatements of pension liabilities. Subtitle B: Fringe Benefits - Part I: Nondiscrimination Rules for Certain Statutory Fringe Benefit Plans - Requires a highly compensated employee who is a participant in a discriminatory statutory fringe benefit plan to include in income an amount equal to the employee's employer-provided benefit under the plan. Provides that the gross income of any employee, whether or not highly compensated, includes such employee's employer-provided benefit under a statutory benefit plan, unless: (1) the plan is in writing; (2) the employees' rights under the plan are legally enforceable; and (3) the employer established the plan with the intention of maintaining it indefinitely. Establishes a uniform nondiscriminatory eligibility requirement for all statutory benefit plans by requiring that: (1) at least 90 percent of all employees are eligible to participate in the plan; and (2) the plan contains no provisions relating to eligibility to participate that discriminates in favor of highly compensated employees. Sets forth additional rules relating to statutory defined benefit plans. Requires employers to file certain informational returns if benefits are provided under a cafeteria plan or statutory fringe benefit plan which were included in the income of a highly compensated or key employee. Part II: Other Provisions - Extends for two years, from December 31, 1985, to December 31, 1987, the exclusion for educational assistance and group legal services paid for by an employer that are furnished to employees. Permits a full-time life insurance salesperson to be treated as an employee for purposes of the cafeteria plan provisions to the extent the salesperson is otherwise permitted to exclude from income the benefit elected. Subtitle C: Changes Relating to Employee Stock Ownership Plans - Repeals the employee stock ownership tax credit. Terminates after December 31, 1988, the following provisions: (1) the exclusion of interest on loans used to acquire employer securities; (2) the dividends paid deduction; (3) the nonrecognition of gain on sales of stock to employee stock ownership plans, and (4) liability for payment in case of transfer of employer securities to an employee stock ownership plan or a worker-owned cooperative. Provides the following additional requirements for employee stock ownership plans: (1) requires more rapid (10-year graded) vesting: (2) modify the employee stock ownership plan nondiscrimination rules to limit the amount of a participant's compensation that may be taken into account and the annual amount of employer contributions that may be allocated to employees who are officers, shareholders, or highly compensated; (3) expand the pass-through voting requirements applicable to employer securities held by an employee stock ownership plan; (4) permit an eligibile plan participant to direct the employee stock ownership plan trustee to diversify a portion of the participant's employee stock ownership account balance; and (5) modify the distribution and put option requirements. Amends the tax credit employee stock ownership plan distribution provisions to permit certain distributions upon plan termination. Provides a special rule for eligible worker-owned cooperatives to ensure that such organizations can comply with the requirements of tax deferrment on gain derived from sales of stock to an employee stock ownership plan or for payment of estate tax liability by an employee stock ownership plan. Title XII: Unearned Income of Certain Dependent Children; Trusts and Estates - Subtitle A: Unearned Income of Certain Minor Children - Provides that to the extent that unearned income derived from property transferred from parents (parental-source unearned income) exceeds the amount of the child's personal exemption, such income is taxed to the child at the parents' marginal tax rate. Requires earned income and nonparental-source unearned income (i.e., income derived from property that is a qualified segregated asset) to be taxed to the child at the child's marginal tax rate. Subtitle B: Taxation of Estates and Trusts and Their Beneficiaries - Provides that all trusts created by a grantor, with the exception of qualified beneficiary trusts or qualified children's trusts, that are not treated as grantor trusts must be taxed at the marginal tax rate of the grantor. Permits the grantor to allocate any of the grantor's unused tax rate bracket amounts for any year to the trusts created by him in any manner the grantor elects. Provides that the income of a qualified beneficiary trust is taxed at the top marginal tax rates of the beneficiary. Definies "qualified beneficiary trust." Provides that where all the beneficiaries of a trust are children of the grantor (called a "qualified children's trust"), any beneficiary may allocate any of his or her unused tax bracket to the trust for any year prior to the time that beneficiary reaches majority, thereby taxing the trust income at this top marginal tax rate. Entitles all trusts, in lieu of the personal exemption, a deduction of $100. Entitles an estate a deduction, in lieu of the personal exemption, of $600. Permits any unused losses and deductions in the last year of the trust or estate to be claimed by the beneficiaries succeeding to the property of the estate or trust in accordance with regulations prescribed by the Secretary. Provides that no amounts shall be included in the gross income of any beneficiary by reason of income of any trust or estate, or by reason of any distribution from a trust or estate, with certain exceptions. Provides that the grantor is treated as the owner of the trust and therefore is taxed directly on the income of the trust in the following circumstances: (1) where the grantor possesses certain prohibited administrative powers with respect to the trust; (2) where the grantor or the grantor's spouse retains the power to revoke the trust; or (3) where the grantor or grantor's spouse has the power to control the income of the trust in certain respects. Provides that a person other than the grantor is treated as the owner of a trust where that person has a power to revoke the trust or retains one of the three powers listed in the preceeding sentence. Permits the executor to elect to extend the taxable year of the decedent until the end of the decedent's normal taxable year, instead of having the decedent's final taxable year terminate on the date of death. Provides that income of a trust required to be paid by the trust pursuant to a divorce decree or separate maintenance agreement shall be allowed as a deduction to the trust and such amount shall be included in the gross income of the wife. Exempts from such inclusion and deduction amounts payable for the support of minor children. Requires gain to be recognized by the transferor where property is transferred to a trust in exchange for an interest in other trust property and the trust would be considered an investment company if it were a corporation. Allows one $20,000 exemption for purposes of the minimum tax with respect to: (1) the estate of a decedent; and (2) trusts with respect to which a decedent is the grantor. Provides for the allocation of such amount among such trusts. Provides that distributions from foreign trusts are subject to tax at the top marginal rate applicable to individuals (38 percent), unless the fiduciary of the trust elects to be subject to current taxation of the United States by being treated as a domestic trust. Subtitle C: Generation Skipping Transfers - Amends the generation-skipping transfer tax, which attempts to determine the additional gift or estate tax that would have been paid if property has been transferred directly from one generation to another, to impose a simplified tax determined at the maximum gift and estate tax rate (currently the tax rate is 55 percent). Expands the generation-skipping transfer tax to include direct generation-skipping transfers (e.g., a direct transfer from a grandparent to a grandchild) as well as transfers in which benefits are shared by beneficiaries in more than one younger generation. Provides for an exemption of transfers up to S1,000,000 per grantor from the tax. Provides additional exemptions from the tax for certain transfers that are not subject to gift tax and for direct transfers to grandchildren of the transferor if the aggregate amount of such transfers does not exceed $2,000,000 per grandchild. Defines various terms relating to generation-skipping transfers. Sets forth the methods for determining the taxable amount for various generation-skipping transactions. Sets forth various special rules and definitions. Directs the Secretary to prescribe by regulation the person who is required to make the return with respect to the generation-skipping tax and the time the return is to be filed. Title XIII: Compliance and Tax Administration - Part I: Revision of Certain Penalties, Etc. - Increases the maximum penalty from $50,000 to $100,000 for: (1) failure to file certain information returns with the IRS; (2) failure to supply a copy of that information return to the taxpayer; and (3) failure to supply taxpayer information numbers. Imposes a penalty for failure to include correct information either on an information return filed with the IRS or on the copy of that information return supplied to the taxpayer. Establishes the amount of the penalty at five dollars for each return or statement, with a maximum penalty not to exceed $20,000. Allows a waiver of these penalties if the failure is due to reasonable cause and not to willful neglect. Sets forth certain special rules with respect to the application of these penalties. Increases the penalty for failure to pay tax in specified situations from one-half of one percent per month to one percent per month. Repeals the provision allowing the offset of the failure to file a return penalty against the failure to pay tax penalty. Provides that the penalty for negligence shall apply to all taxes imposed under the Internal Revenue Code. Includes within the scope of the definition of negligence both any failure to make a reasonable attempt to comply with the provisions of the tax law as well as careless, reckless, or intentional disregard of the rules or regulations. Expands the scope of the special negligence penalty for failure to include in income interest and dividends shown on an information return to include failure to show properly on the taxpayer's return any amount that is shown on any information return. Part II: Estimated Tax Payments by Individuals - Increases from 80 percent to 90 percent the proportion of the current year's tax liability that taxpayers must make as estimated tax payments in order to avoid the estimated tax penalty. Part III: Provisions Relating to Attorneys' Fees and Exhaustion of Administrative Remedies - Extends for four years, from December 31, 1985, to December 31, 1989, the provisions providing for awards of reasonable litigation costs, including attorneys' fees and court costs, to a taxpayer who prevails over the Federal government in a tax case in any Federal court. Gives the Court in tax cases the discretion to assess all or a portion of any award against IRS employees if the Court determines that the proceeding resulted from any arbitrary or capricious act of the employee. Requires the Secretary to submit a report within 90 days after the close of each calendar year beginning after 1985 and before 1990 to the House Committee on Ways and Means and the Senate Committee on Finance that includes: (1) the number of awards made during such calendar year; (2) the number of proceedings in which claims for such awards were made by substantially prevailing parties during such calendar year; and (3) the aggregate amount payable by the United States pursuant to the awards so made during such calendar year. Authorizes the Tax Court to impose a $120 penalty on the taxpayer if the Tax Court determines that the taxpayer did not use reasonable efforts in good faith in attempting to resolve the tax case administratively with the Secretary. Requires that a joint annual report from the Secretary and the Tax Court concerning closing cases more efficiently in Tax Court inventory be submitted to the House Committee on Ways and Means and the Senate Committee on Finance. Part IV: Tax Administration Provisions - Authorizes the Secretary and the taxpayer to mutually consent to the recission of any notice of deficiency mailed to the taxpayer. Provides that where an IRS official fails either to perform a ministerial act in a timely manner or makes an error in performing a ministerial act, the IRS has the authority to abate the interest attributable to such delay. Suspends the compounding of interest on previously accrued interest, starting 30 days after a taxpayer has filed a waiver of restrictions on assessment of the underlying taxes and ending when a notice and demand is issued to the taxpayer. Prohibits the IRS from levying on any amount payable to an individual as a service-connected disability benefit. Permits the Secretary to sell up to $100,000 of personal property used in violation of the tax laws. Permits claimants to require a judicial forfeiture action by posting a $2,500 bond. Treats the use of an automobile by a special agent of the Internal Revenue Service in the same manner as use of an automobile by an officer of any other law enforcement agency for purposes of the substantiation rules for expenses or the income and wage inclusion rules. Part V: Interest Provisions - Provides that the interest rate which the Secretary must pay to the taxpayer on the overpayment of taxes must be the three-month Treasury bill rate plus two percentage points. Requires that the interest rate that taxpayers pay to the Secretary on underpayment of taxes shall be the three-month Treasury bill rate plus three percentage points. Requires the Secretary to determine the short-term Federal rate each quarter. Provides that interest is imposed on underpayment of the accumulated earnings tax from the due date (without regard to extensions) of the income tax return for the year the tax is initially imposed. Part VI: Modification of Withholding Allowances - Directs the Secretary to modify the withholding allowance schedules to reflect the new rate schedules promulgated by this Act. Repeals the authority of the IRS to issue regulations permitting employees to request decreases in withholding. Part VII: Information Reporting Provisions - Requires the reporting of real estate transactions to the IRS by the settlement attorney or other stakeholder to the transaction. Requires the head of every Federal executive agency to file an information return indicating the name, address, and taxpayer identification number of each person with which the agency enters into a contract. Requires any person required to file a return for the taxable year to include on such return the amount of interest received or accrued during the taxable year that is exempt from tax. Part VIII: Report on Return-Free System - Requires the Secretary to prepare a report on a return-free system for the Federal income tax of individuals which would include: (1) the identification of classes of individuals who would be permitted to use a return-free system; (2) how such system would be phased in; (3) what additional resources the IRS would need to carryout such a system; and (4) the type of changes to the Internal Revenue Code which would inhibit or enhance the use of such system. Part IX: Certain Diesel Fuel Taxes May Be Imposed on Sales to Retailers - Provides that the excise tax on diesel fuel for highway vehicles may be imposed on the sale to the retailer by the wholesaler (jobber) or by the manufacturer where the sale is direct to the retailer. Title XIV: Miscellaneous Provisions - Excludes from income amounts paid to the foster parent for caring for a qualified foster child in the foster parent's home. Provides that the tax relief provisions applicable with respect to Vietnam MIA's (and their spouses) that expired after 1982 are retroactively reinstated and made permanent. Imposes an excise tax of ten percent on amounts paid for U.S. television and radio broadcast rights for Olympic events. Imposes the tax on the business or government receiving the payment for the broadcast rights. Establishes a new trust fund in the Treasury, designated the "United States Olympic Trust Fund," to receive amounts equivalent to the revenues from the new ten percent excise tax. Permits the payment of amounts from the trust fund to the U.S. Olympic Committee. Provides that in the case of any tax-exempt organization, the term unrelated trade or business does not include any trade or business of such organization that consists of exchanging names and addresses of donors to (or members of) such organization with another such tax-exempt organization, or of renting donor names and addresses to another such tax-exempt organization. Provides that the term unrelated trade or business of a tax-exempt organization does not include activities of such organization relating to the distribution of low-cost articles incidental to the solicitation of charitable contributions. Permits a housing cooperative, where the cooperative charges such tenant-stockholder with a portion of the cooperative's interest and taxes in a manner that reasonably reflects the cost to the cooperative of the interest and taxes attributable to such tenant-stockholder's dwelling unit, to make an election whereby the share of the cooperative's interest and taxes that each tenant-stockholder is permitted to deduct would be the amounts that were so separately allocated and charged. Provides that certain royalties relating to computer software are not treated as personal holding company income, and therefore not subject to the additional tax on personal holding company income, if the recipient: (1) is actively engaged in the trade or business of producing, developing, or manufacturing computer software; (2) derives more than half of its income from software royalties; (3) incurs substantial trade or business expenses, or research and development expenses; and (4) distributes most of its passive income other than software royalties. Provides special rules with respect to taxpayers who are members of an affiliated group and receive royalties with respect to the licensing of computer software. Allows certain securities dealers to exclude from personal holding company income certain income received on securities or money market instruments held in inventory if the taxpayer: (1) derives at least 50 percent of its income from the active conduct of the business of dealing in securities; (2) distributes most of its passive income not derived form the business of dealing in securities; and (3) incurs substantial trade or business expenses relating to the business of dealing in securities. Amends the Social Security Act to provide 50 percent Federal matching funds to States to pay for "nonrecurring adoption expenses" relating to the adoption of a special needs child. Title XV: Technical Corrections - Subtitle A: Related to the Tax Reform Act of 1984 - Chapter 1: Amendments Related to Title I of the Act - Permits a taxpayer to elect to have the amendment of the Tax Reform Act of 1984 that defers the finance lease rules apply to any agreement entered into before March 7, 1984. Restores the year 1985 to the table of years for which the three percent telephone excise tax applies. Clarifies the rules relating to the electronic funds transfer of alcohol taxes to provide that all corporations that are members of a controlled group of corporations are treated as one taxpayer for purposes of the electronic funds transfer. Makes certain modifications of the Code to clarify the rules relating to the tax-exempt entity leasing provisions. Repeals the overlapping regulatory authority relating to high-technology equipment. Provides that any portion of a property that is owned or leased by a partnership that is treated as tax-exempt use property is ineligible for the investment tax credit. Clarifies the treatment of certain aircraft leased to foreign persons for purposes of the recapture of investment tax credit rules. Provides that thrift institutions cannot avoid the restriction on property leased to thrift institutions by the use of a partnership. Provides that the tax credit for rehabilitation expenditures is allowable on buildings leased to thrift institutions in accordance with the rules applicable to buildings leased to tax-exempt entities. Provides that the determination of whether a tax-exempt partner's share of partnership items is treated as derived from an unrelated trade or business is to be made without regard to the debt-financed income rules. Makes certain modifications in the tax treatment of certain bonds and other debt instruments. Clarifies the provisions limiting the dividends received deduction for dividends received by a corporate shareholder with respect to debt-financed portfolio stock. Disallows the dividend received deduction where the holding period requirement is not met, without regard to whether the stock has been disposed of. Applies this rule to obligations acquired after the date of enactment of this Act. Provides that if a taxpayer holds stock of a regulated investment company for six months or less, any loss on the sale or exchange of that stock is disallowed to the extent the taxpayer received exempt-interest dividends with respect to that stock. Provides an exception to this rule where the dispositions are pursuant to a periodic liquidation plan. Gives the Secretary the authority to shorten the six-month period requirement. Provides that, except to the extent provided by the Secretary, no dividends paid deduction will be allowed for purposes of the accumulated earnings tax, in the case of stock redemption by a mere holding or investment company which is not a regulated investment company. Makes certain modifications in the tax rules related to affiliated groups of corporations. Makes certain changes in the definition of a corporation's "earnings and profits." Modifies the rules relating to corporate reorganizations to provide that the transferor corporation does not recognize gain or loss on the transfer to the acquiring corporation pursuant to a plan of reorganization, without regard to whether properties received are distributed pursuant to the plan of reorganization. Makes the collapsible corporation provisions with respect to the recognition of ordinary income or loss applicable whether or not the stock has been held for six months. Makes certain changes in the rules relating to the taxation of "parachute payments" made by corporations to disqualified individuals. Modifies the partnership tax provisions with respect to: (1) retroactive allocation of cash basis items; (2) disguised sales transactions; (3) transfer partnership interests by corporations; and (4) distributions which are treated as exchanges. Modifies the like-kind exchange rules allowing for the non-recognition of gain to provide that like-kind property includes property identified as the property to be received by the taxpayer on or before (rather than only before) the date which is 45 days after the date on which the taxpayer relinquishes property. Provides that the rules regarding the treatment of two or more trusts as one trust will not apply to any trust which was irrevocable on March 1, 1984, except to the extent corpus is transferred to the trust after that date. Makes certain changes in the tax accounting rules relating to: (1) premature accrual of certain payments to insurance companies for indemnification for certain tort claims; (2) tax shelters; (3) mine reclamation and similar costs; (4) nuclear power plant decomissioning expenses; and (5) deferred payment for services. Makes modifications in the tax straddle provisions relating to: (1) subchapter S corporations; (2) amounts received for loaning securities; (3) straddles consisting of stock; and (4) losses from pre-1981 straddles. Permits the taxpayer to elect to recover the cost of low-income housing using a straight-line method of depreciation over a 15-year period (but not 18 years). Requires the mid-month convention for depreciation to be applied whenever a depreciation computation is made with respect to certain classes of real property. Provides that the cost of certain real property (which does not include low-income housing) financed by the proceeds from industrial development property cannot be recovered more rapidly than on a straight-line basis of depreciation over a fixed period of years, using a mid-month convention. Modifies the rules relating to the depreciation of property by certain transferees of recovery property. Prohibits the use of accelerated methods of depreciation with respect to films, video tapes, and sound recordings. Provides that investment credit property the reconstruction of which is completed by the taxpayer qualifies as new investment credit property. Provides that a domestic corporation which earns less than 20 percent of its gross income from U.S. sources will be treated as a U.S.-owned foreign corporation and thus will be subject to the rules maintaining the source of U.S. source income to foreign income. Requires that the source maintenance rules apply notwithstanding any contrary U.S. treaty obligations, even those entered into after the Act's date of enactment, unless the treaty clearly expresses an intent to override the rules by specific reference. Modifies the rules with respect to maintaining the character of interest income for foreign personal holding companies to insure that there will be no possibility of converting interest income into noninterest income subject to the overall foreign tax credit. Modifies the rules relating to the factoring of income with respect to certain controlled foreign corporations. Makes certain modifications in the rules concerning the repeal of the 30 percent withholding tax requirement on the gross amount of U.S. source investment income payments to foreign persons. Clarifies the rules concerning the taxation of original issue discount obligations of foreign investors. Modifies the rules respecting the disposition of U.S. real property interests by foreigners. Provides that the transfer of stock by a domestic corporation to foreign persons pursuant to a distribution of stock and securities of a controlled corporation will give rise to the recognition of gain on such a transaction, to the extent provided by regulations issued by the Secretary. Modifies the rules concerning the taxation of U.S. shareholders in foreign personal holding companies. Clarifies the treatment of certain indirect transfers of stock in a U.S. corporation for newly issued stock (or treasury stock) of a foreign corporation. Provides that the regulations that the Secretary is to prescribe pertaining to "stapled stock" entities may include regulations providing that any tax imposed on a foreign corporation that is treated as a U.S. corporation may, if that corporation does not pay the tax, be collected from the U.S. corporation to which the foreign stock is stapled or from the shareholders of the foreign corporation. Provides that the "stapled stock" rules will not apply if it is established that both the stapled foreign corporation and the U.S. corporation to which it is stapled are foreign owned. Clarifies the definition of foreign base company service income of controlled foreign corporations with respect to insurance or reinsurance services. Modifies the definition of resident alien to provide that days spent working in the United States as a teacher or trainee during four calendar years in any seven-year period do not count as days of U.S. presence for purposes of the substantial presence test for a resident alien status. Makes miscellaneous changes with respect to the compliance provisions of the Code. Provides that, for purposes of the tax benefit rule, an amount is excludible from gross income only to the extent that it does not reduce a taxpayer's income tax. Modifies provisions with respect to the tax treatment of loans with below-market interest rates by treating certain term loans as demand loans for the purpose of determining the timing of deemed interest and compensation payments. Exempts certain loans to Israel from the below-market interest rate rules. Directs the Secretary to issue regulations applying the "matching principles" with respect to deductions generally applicable to related party transactions in cases in which the person to whom the payment is to be made is not a U.S. person. Makes several adjustments in the dividends received deduction for dividends allocable to post-1984 Federal Home Loan Mortgage Corporation income. Modifies the rules relating to the maximum amount of investment tax credit and depreciation that a taxpayer may claim with respect to a passenger automobile or listed property which is required to be used in a trade or business a certain percent of the time. Chapter 2: Amendments Related to Title II of the Act - Makes certain technical corrections with respect to the taxation of life insurance companies. Chapter 3: Amendments Related to Title III of the Act - Clarifies the rule disqualifying certain foundations from the rate reduction of the excise tax imposed on the net investment income of a private foundation to provide that the rate reduction is not available if the foundation was liable for the excise tax with respect to any year in certain base period years. Chapter 4: Amendments Related to Title IV of the Act - Makes clerical and conforming amendments to the tax simplification provisions of the 1984 Act, including such items as individual estimated tax, domestic relations, at-risk rules, administrative provisions, distilled spirits, the Tax Court, and income tax credits. Chapter 5: Amendments Related to Title V of the Act - Makes technical corrections with respect to the employee benefit provisions of the 1984 Act with respect to: (1) the welfare benefit plan provisions; (2) qualified pension, profit-sharing, and stock bonus plans; (3) fringe benefit provisions; (4) employee stock ownership plans; and (5) certain miscellaneous provisions. Chapter 6: Amendments Related to Title VI of the Act - Makes certain technical corrections with respect to the tax-exempt bond provisions of the Code, such as mortgage subsidy bonds and mortgage credit certificates and private activity bonds. Chapter 7: Miscellaneous Provisions - Clarifies the tax treatment of stock transfers between 50-percent owned corporations. Makes miscellaneous technical corrections with respect to certain pension provisions. Makes technical corrections with respect to the tax provisions relating to foreign sales corporations and domestic international sales corporations. Allows a full 15-cents-a-gallon refund of excise tax on diesel fuel used in a school bus while engaged in the transportation of students and school employees. Provides that the additional six percent excise tax on certain piggyback trailers will not apply to a piggyback trailer after six years have elapsed from the date of the first retail sale of the trailer. Provides that certain helicopter uses are exempt from aviation excise taxes. Modifies the acquisition of indebtedness rules with respect to certain exempt organizations. Clarifies the provision permitting the nonrecognition of gain on the rollover of gain on the sale of a personal residence in the case of military personnel stationed outside the United States. Provides that the expanded prohibition on current deduction of costs and other losses incurred in connection with the demolition of buildings applies only to demolitions commencing after July 18, 1984, in the case of buildings other than certified historic structures. Modifies certain recordkeeping requirements of regulated investment companies. Allows individual taxpayers until April 15, 1985, and corporations until March 15, 1985, (the filing date for calendar year returns) to pay their full 1984 income tax liabilities without incurring any additions to tax on account of underpayments of estimated tax to the extent that the underpayments are attributable to changes in the law made by the Tax Reform Act of 1984. Makes certain modifications in the requirements with respect to the tax credit for the qualified clinical testing of certain drugs that are necessary to obtain the approval of the Food and Drug Administration. Clarifies the provisions as to the allowability of the tax credit for production of fuels from nonconventional sources. Repeals the requirement that the Joint Committee on Taxation submit an annual report to the Congress on proposed IRS tax refunds and credits submitted to the Committee for its review. Provides that any organization that is exempt from tax and that is engaged primarily in providing electric service on a mutual or cooperative basis is eligible to maintain a qualified cash or deferred arrangement for employees. Clarifies the definition of "newly discovered oil" for purposes of the imposition of the windfall profit tax. Provides that medicinal alcohol produced in Puerto Rico and the Virgin Islands is eligible for refunds of the tax on distilled spirits paid when the alcohol is brought into the United States. Provides that these amendments made to the Tax Reform Act of 1984, unless otherwise provided, will take effect as if included in the original legislation. Chapter 8: Effective Date - Sets forth effective date provisions. Subtitle B: Related to Other Programs Affected by the Deficit Reduction Act of 1984 - Chapter 1: Amendments Related to Social Security Act Programs - Amends the Internal Revenue Code to disqualify certain church employees from a religion based exception to the tax on self-employment income. Amends the Code and title II (Old Age, Survivors and Disability Insurance) of the Social Security Act to exclude certain church employee income from the computation of other net self-employment earnings, but lowers the sum required before church employee income qualifies as self-employment income. Authorizes a church to revoke its election to have services performed in its employ excluded from employment for taxation purposes. Amends title XVIII (Medicare) of the Act to make the late enrollment penalty and special enrollment period accommodations of part B (Supplemental Medical Insurance) specifically applicable to individuals who have attained age 65 and were not enrolled or reenrolled because they were covered by work-related group health insurance, or their spouse's work-related group health insurance. Makes technical corrections to other portions of the Social Security Act. Chapter 2: Amendments Related to Unemployment Compensation Program - Makes certain technical amendments to the Federal Unemployment Tax Act. Chapter 3: Amendments Related to Trade and Tariff Programs - Amends the Tariff Schedules of the United States to make technical and conforming amendments. Imposes a duty on silicon electrical steel. Amends the Tariff Act of 1930 to provide that the administering authority with respect to a countervailing duty investigation, may not accept any agreement from a foreign country to eliminate or offset a subsidy or to cease exports of subsidized merchandise unless such agreement ensures that the quantity of merchandise covered in the agreement does not exceed the quantity of such merchandise exported to the United States during the most recent representative period as determined by the administering authority. Sets forth specified provisions relating to the marking of imported articles. Provides that the performing of incidental operations (including testing, cleaning, repacking, and inspecting) on imported merchandise or merchandise of the same kind and quality does not amount to manufacture or production for drawback (refund) purposes. Amends the Trade Act of 1974 to make technical and conforming amendments. Amends the Trade and Tariff Act of 1984 to make technical and conforming amendments. Sets forth specified provisions relating to certain articles given duty-free treatment. Amends the Caribbean Basin Economic Recovery Act to make technical and conforming amendments. Subtitle C: Technical Corrections Related to the Retirement Equity Act of 1984 - Amends the Internal Revenue Code (IRC) and the Employee Retirement Income Security Act of 1974 (ERISA) to make technical corrections and other revisions related to the Retirement Equity Act of 1984 (REA). Sets forth amendments related to REA modifications of minimum participation and vesting standards for employee benefit plans. Requires class-year plans, in general, to provide that a participant's rights to benefits derived from employer contributions for any plan year are nonforfeitable not later than when such participant has performed services for the employer as of the close of each of five plan years (whether or not consecutive after the plan year for which the contributions were made), but allows for such plans to provide for forfeiture of such rights if the participant has not performed such services as of the close of each of any five consecutive plan years after such plan year (i.e. a five-year break in service). Requires, for purposes of determining whether any distribution which becomes payable to the recipient on account of the employee's separation from service is a lump sum distribution, that the balance to the credit of the employee be determined without regard to any increase in vesting which may occur if the employee is reemployed by the employer. Provides for recapture of such reduction in tax, in certain cases. Provides, under repayment requirements relating to withdrawals of mandatory contributions, that a defined contribution plan may provide that such a repayment must be made before a participant has a period of five consecutive one-year breaks in service (currently any one-year break in service). Reduces from 25 years to 21 years the age which plan participants may be required to attain for purposes of simplified employment pensions. Sets forth amendments related to REA requirements of joint and survivor annuity and preretirement survivor annuity. Provides that qualified preretirement survivor annuity rules apply in the case of death before the annuity starting date. Provides that qualified joint and survivor annuity rules apply in the case of death on or after the annuity starting date. Provides that the transferee plan rule applies only with respect to: (1) transfers made after December 31, 1984; and (2) the transferred assets if the plan separately accounts for assets and any income therefrom. Requires spousal consent for: (1) using plan assets as security for loans; and (2) changes in designations. Provides that, in the case of a participant hired after age 35, the period for giving notice to the participant of the right to waive a qualified preretirement survivor annuity is a reasonable period after the date of hire. Makes certain clerical amendments. Sets forth amendments related to special rules for assignments in divorce, etc., proceedings (which REA added to IRC and ERISA). Provides that such special rules for determining the taxability of benefits subject to a qualified domestic relations order apply only to distributions made to an alternate payee who is the spouse or the former spouse of the participant. Specifies that the 18-month period during which benefits may be deferred begins with the date on which the first payment would be required to be made under the domestic relations order if there were no deferral. Directs the Secretary of the Treasury to prescribe regulations to coordinate specified requirements (and regulations issued by the Secretary of Labor thereunder) affecting qualified domestic relations orders with the overall qualification requirements. Waives certain distribution requirements which prohibit payment of benefits before termination of employment. Sets forth amendments related to the requirement under IRC, as amended by REA, that a written explanation be given to recipients of distributions eligible for rollover. Defines "eligible rollover distribution" for purposes of such requirement. Sets forth amendments related to provisions, under ERISA as amended by REA, for the treatment of certain plan amendments as reducing benefits. Sets forth amendments related to the REA transitional rule for requirement of joint and survivor annuity and preretirement survivor annuity. Sets forth amendments related to REA provisions for treatment of certain participants who perform services on or after January 1, 1976.
United States · United States Congress · 20 November 1985
Campaign Finance Reform Act of 1985 - Amends the Federal Election Campaign Act of 1971 to: (1) increase dollar limits on personal contributions to candidates and their authorized political committees; and (2) decrease the amount one multicandidate political committee may contribute to any other political committee. Limits to $100,000 ($125,000 where two or more candidates qualify for the ballot) the aggregate amount which all multicandidate political committees may contribute to a candidate for the House of Representatives in a general or special election, including any primary election, convention, or caucus relating to such general or special election. Limits to $25,000 the aggregate amount allowed for multicandidate political committee contributions in a runoff election for the office of Representative. Establishes a formula for multicandidate political committee contributions to candidates for the Senate based upon State populations and limited to an aggregate total of $750,000. Requires multicandidate political committees which make independent expenditures for advertisements connected with a candidate's campaign to disclose such information within the advertisement. Amends the Communications Act of 1934 to require any station licensee which allows a person to broadcast material endorsing or opposing a candidate to provide the candidate opposing the endorsed candidate, or to the candidate opposed by the material, the opportunity to use the same amount of broadcasting time, without charge, during the same period of the day.
United States · United States Congress · 20 November 1985
Designates May 25, 1986, as Hands Across America Day. Authorizes and requests the President to commend: (1) United Support of Artists for Africa for their Hands Across America project; and (2) the American people for their commitment to helping people help themselves.
United States · United States Congress · 5 November 1985
Declares that: (1) the people around the world desire a world free from the threat of war; (2) it is the hope of all citizens that the President and General Secretary Gorbachev will reach an arms control agreement which significantly cuts nuclear stockpiles and halts the arms race between the United States and the Soviet Union; and (3) in order to express this hope, all citizens are invited to light candles from dusk to dawn on November 19 and 20, 1985, while the President and Gorbachev meet in summit.
United States · United States Congress · 31 October 1985
Anti-Terrorism Trade Preference Act of 1985 - Directs the Secretary of State to identify and publish the name of each country that repeatedly supports acts of international terrorism. Requires the Secretary to provide the Congress with a list of such countries annually. Imposes the following sanctions on countries identified as supporting international terrorism: (1) termination, withdrawal, or suspension of any treaty that relates to most-favored-nation treatment of such country; (2) denial of most-favored-nation treatment and imposition of column 2 tariff rates on imports from such countries; (3) non-application of the Generalized System of Preferences on imports from such countries; and (4) non-application of the provisions of the Caribbean Basin Economic Recovery Act with respect to the products of such countries. Authorizes the President to waive such sanctions if it would be in the best interests of the United States. Directs the President to notify the Congress 30 days before any such waiver takes effect.
United States · United States Congress · 30 October 1985
Designates 1986 as Save for the U.S.A. Year. Requests the President to initiate a nationwide campaign, to be known as the Buy Back America campaign, to encourage the people of the United States to buy U.S. savings bonds and certificates and thereby reduce borrowings from foreign sources. Requires the Secretary of the Treasury to enhance the marketability of such bonds and certificates.
United States · United States Congress · 24 October 1985
Joint Chiefs of Staff Reorganization Act of 1985 - Revises Federal provisions concerning the composition and function of the Joint Chiefs of Staff (JCS) to define the Chairman of JCS as the principal military advisor to the President, the National Security Council, and the Secretary of Defense. Authorizes a member of JCS other than the Chairman to offer, to the Secretary of Defense and then to the President, a separate opinion in disagreement with that of the Chairman concerning military advice given. Directs that the Chairman of JCS shall supervise the commanders of the combatant commands and act as their spokesman. Extends the term of the Chairman of JCS from two to four years. Establishes the position of Deputy Chairman of JCS. Prohibits the Deputy Chairman and the Chairman from being a member of the same military branch, unless the Secretary of Defense waives such prohibition for a limited period. Sets the term of the Deputy Chairman at four years. Requires the Deputy Chairman to perform such duties as delegated by the Chairman with the approval of the Secretary of Defense. Directs the Deputy Chairman to act as Chairman if the latter position is vacated for any reason. Directs the Deputy Chairman to act as director of the Joint Staff, which performs such duties as the Chairman prescribes. Eliminates any maximum number of officers on the Joint Staff. Provides that the four-year term of a member of the Joint Staff may be extended with the approval of the Secretary of Defense. Directs the Secretary to ensure that the Joint Staff is independently organized and operated in order to provide for the unified strategic direction of the combatant forces and their operation and integration into an efficient team of land, naval, and air forces. Requires the Chairman of the Joint Chiefs of Staff to submit an evaluation to the President of any person for appointment to a grade above major general or rear admiral. Requires such evaluation to consider the performance of that officer as a member of the Joint Staff and in other assignments involving joint military experiences. Requires such evaluation to be submitted to the President at the same time as the submission of the recommendation for the appointment. Directs the Chairman or the Deputy Chairman of JCS to attend all meetings of the National Security Council and participate fully in its deliberations. Directs the Secretary of Defense, no later than six months after the enactment of this Act, to report to the Congress on plans for further changes in the administration of the military high commands of each of the armed forces. Outlines proposals to be developed in such report.
United States · United States Congress · 24 October 1985
Expresses the sense of the Senate that the United States: (1) should not sell advanced weapons to Jordan; (2) should ensure that Israel retains its qualitative military edge in the Middle East; and (3) should focus its efforts on bringing Jordan into direct peace negotiations with Israel.
United States · United States Congress · 10 October 1985
Declares that the Congress calls upon the President to direct the Agency for International Development (AID) to work in a global effort to provide support toward achieving the goal of universal access to childhood immunization by the year 1990. Sets forth specified actions to be taken by AID, in conjunction with the World Health Organization and UNICEF, in reaching such goal. Urges the President to seek both private and public assistance in the United States to achieve universal access to childhood immunization.
United States · United States Congress · 8 October 1985
Amends the copyright law to prohibit a copyright holder from conveying the right to publicly perform an audiovisual work on non-network commercial television without simultaneously conveying the right to perform in synchronization any copyrighted music which accompanies such work.
United States · United States Congress · 7 October 1985
Recognizes the 20th anniversary of the Higher Education Act of 1965 and the important role that the legislation has played in the Nation's development. Reaffirms the historic partnership between the Federal Government and the colleges and universities toward the development of human resources required for an increasingly complex and technological society.
United States · United States Congress · 3 October 1985
Commends the Committee on Solar and Space Physics for their work on developing a program of solar and space physics research through the year 2000; and, endorses their reported goals and guidelines and their program recommendations.
United States · United States Congress · 3 October 1985
Commends the Astronomy Survey Committee for its work on developing a program of astronomical and astrophysical exploration and understanding; and endorses its research and program recommendations.
United States · United States Congress · 3 October 1985
Commends the Solar System Exploration Committee for its work on developing a program of continued exploration of the solar system by the United States; and, endorses its reported goals and program recommendations.
United States · United States Congress · 1 October 1985
Social Security Budget and Administrative Reorganization Act of 1985 - Title I: Establishment of the Social Security Administration - Amends title VII (Administration) of the Social Security Act to establish as an independent executive agency a Social Security Administration, headed by a Social Security Board. Provides that it shall be the duty of the Administration to administer the programs established by titles II (Old Age, Survivors and Disability Insurance) and XVI (Supplemental Security Income) of the Social Security Act. Requires the Board to study and make recommendations as to the most effective methods of providing economic security through social insurance and as to legislation and matters of administrative policy. Establishes in the Administration: (1) a Commissioner of Social Security; (2) a Deputy Commissioner of Social Security; (3) a General Counsel; (4) an Inspector General; and (5) an Office of the Beneficiary Ombudsman, to be headed by a Beneficiary Ombudsman who shall represent the interests of beneficiaries under the Old Age, Survivors and Disability Insurance program and the Supplemental Security Income Program within the Administration. Requires the annual report of the Board to include a description of the activities of the Beneficiary Ombudsman. Requires the Board to make annual budgetary recommendations relating to the Administration. Requires that appropriations requests by the Administration for staffing and personnel be based upon a comprehensive workforce plan as established by the Board. Provides for the apportionment of administrative costs. Requires the annual report of the Board to include a section reflecting the use of budget authority provided to the Administration. Requires that authority for automated data processing procurement and facilities construction be provided in the form of contract authority covering the total cost of such acquisitions. Makes amounts needed for the liquidation of contract authority so provided available from the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund to the extent that such amounts are not needed to meet current obligations for benefit payments. Requires the Board and the Director of the Office of Personnel Management to implement demonstration projects relating to personnel matters. Directs the Board and the Administrator of General Services to implement such projects relating to delegations from the Administrator. Specifies the authorities which are to be delegated to the Board from the Administrator and the Director. Requires the Comptroller General to report to specified congressional committees concerning such projects, including an evaluation of the Board's readiness to assume full and permanent authority. Requires the Board to cause a seal of office to be made and judicial notice taken thereof. Provides for the transfer to the Administration of all functions carried out by the Secretary of Health and Human Services with respect to the programs and activities to be carried out by the Administration under this Act. Abolishes the position of Commissioner of Social Security in the Department of Health and Human Services. Sets forth effective date and transitional rule provisions. Title II: Conforming Amendments and Rules of Construction - Requires the Secretary and the Board to report to Congress within 120 days after the beginning of each regular session on their administration under this Act. Requires the Secretary to study and make recommendations on the most effective methods of providing economic security and on the administrative policy for the programs which he or she administers. Directs the Board to appoint, quadrennially, an Advisory Council on the Old-Age, Survivors, and Disability Insurance program and an Advisory Council on Health and Supplementary Medical Insurance to review the relation of the trust funds supporting the Old-Age, Survivors and Disability Insurance program and the Medicare program and the long-term commitments of those programs. Requires each council to submit a report to the Board for transmittal to the Congress and the Board of Trustees of each Trust Fund. Sets forth the effective dates of this title. Title III: Budgetary Treatment of Old-Age, Survivors, and Disability Insurance Program - Provides for off-budget treatment of the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund beginning with FY 1987.
United States · United States Congress · 1 October 1985
Federal-Aid Highway Reform Act of 1985 - Repeals apportionment guidelines for the Interstate System for FY 1957 through 1959 and for FY 1960 through 1990. Repeals the availability guidelines for sums apportioned for certain Interstate priorities. Repeals the authority the Secretary of Transportation (the Secretary) to transfer upon State request certain amounts apportioned for Interstate System resurfacing. Authorizes the Secretary to apportion and approve certain Interstate System construction projects. Authorizes the Secretary to designate a highway on the Federal-aid primary system as part of the Interstate System upon determining that such highway is a logical component to a system serving principal cities, national defense needs and certain transportation modes. Includes as part of the Interstate System any project whose construction costs are included in the Interstate cost estimate for 1985. Amends the Federal-Aid Highway Act of 1978 to authorize appropriations for Interstate System resurfacing for FY 1988 through 1991. Directs the Secretary to set aside $1,000,000,000 for Interstate discretionary projects before any apportionment is made for resurfacing, restoring, rehabilitating and reconstructing the Interstate System. Makes sums apportioned to the States for the Interstate System available for expenditure until the close of the fiscal year for which such sums are authorized (currently such availability is for a period of two years after the close of the fiscal year). Makes sums apportioned to the States for the Interstate System available for construction projects by States in advance of apportionment. States that sums obligated for projects under highway assistance programs for FY 1986 and 1987 shall be available out of the Highway Trust Fund. Directs the Secretary to transmit to the Congress revised estimates of the cost of completing substitute highway and substitute urban mass transit projects, and to use the Federal share in making apportionments for such projects for FY 1988 through 1990 upon approval by the Congress. Makes sums available for expenditure for substitute highway projects for FY 1986 through 1990. Authorizes the Secretary to approve as a project on the Federal-aid primary system any project for replacement or rehabilitation of any bridge on the Federal-aid secondary system or Federal-aid urban system. Amends the Highway Improvement Act of 1982 to extend the Federal-aid primary formula for authorizations from FY 1986 to 1990, and to include an authorization formula for deficient bridges in each State. Authorizes appropriations for Federal-aid primary system projects out of the Highway Trust Fund for FY 1987 through 1990. Directs the Transportation Research Board of the National Academy of Sciences to conduct a study and report to the Congress regarding: (1) Federal-aid primary funds apportionment formulas; and (2) national defense and national economic development needs with respect to the Federal-aid primary system routes and projects. Authorizes appropriations for such study for FY 1987. Repeals the Secretary's authority to approve Federal participation in replacing or rehabilitating deficient highway bridges upon State request. Repeals authorizations for such bridges. Requires the Secretary to obligate in FY 1987 through 1990 all funds authorized to be appropriated under this Act for bridge replacement and rehabilitation using certain discretionary guidelines. Authorizes appropriations for such bridge replacement and rehabilitation for FY 1987 through 1990. Authorizes the Secretary to make a block grant to each State for FY 1987 through 1990 for highway, mass transportation, and highway safety projects. Sets apportionment and reallocation guidelines. Authorizes appropriations for such block grants for FY 1987 through 1990. Extends from FY 1986 to 1990 the period during which the Secretary shall allocate among the States a minimum percentage of funds apportioned for Federal-aid highway programs. Prohibits the authorization of appropriations out of the Highway Trust Fund for implementing projects in the Federal facilities highway program. Authorizes appropriations for such program for FY 1987 through 1990. Permits the States to impose tolls on any highway project without payback of Federal-aid highway funds expended on such highway if the State highway department agrees that toll revenues which exceed highway maintenance costs will be used for projects eligible for Federal funds, and if such highway is publicly owned and operated. Sets guidelines for Federal participation in: (1) the construction or reconstruction of new State toll highways; (2) the construction of ferry boats (whether toll or free); (3) construction projects constituting an approach to a ferry (whether toll or free) on the Federal-aid primary or secondary system; and (4) engineering and fiscal assessments, traffic and design analyses to determine whether a privately owned toll road, bridge or tunnel shall be acquired by a State or its political subdivision. Sets an obligation ceiling, with specified exceptions, for Federal-aid highways and highway safety construction programs for FY 1987 through 1990. Sets allocation guidelines for the distribution of such obligation limitations. Sets obligation limitations upon the States for the first quarter of FY 1985 through 1987. Directs the Secretary of Transportation to: (1) provide all States with authority to prevent lapses of authorized appropriations which have been apportioned for Federal-aid highways and highway safety construction; and (2) redistribute Federal-aid highway and highway safety construction funds based upon a determination of which States will obligate such funds and which States will not. Prohibits the Secretary from distributing amounts authorized for administrative expenses and Federal lands highways. Requires the Secretary to reduce the Federal share payable on a Federal-aid highway or Interstate System project according to the percentage requested by the State implementing such project.
United States · United States Congress · 1 October 1985
Child Health Incentives Reform Plan - Amends the Internal Revenue Code to deny employers an income tax deduction for group health plan expenses unless such plan includes coverage for pediatric preventive health care. Defines "pediatric preventive health care" for purposes of qualification for such income tax deduction.
United States · United States Congress · 20 September 1985
Credit Card Interest Rate Limitation Act of 1985 - Amends the Truth in Lending Act to establish a national ceiling on credit card interest rates. Directs the Board of Governors of the Federal Reserve System to conduct a study of: (1) the relationship between credit card interest rates and the cost of extending such credit; and (2) the degree to which such interest rates reflected competition for new credit card accounts. Requires such report to be submitted to specified congressional committees by June 1, 1986. Provides that such ceiling shall not take effect if such study reveals that the credit rates are competitive with the cost of extending credit.
United States · United States Congress · 20 September 1985
Requests the President to resubmit the proposed Agreement for Cooperation with China to the Congress, together with a formal exemption from the safeguard and non-alteration requirements of transferred nuclear materials under the Atomic Energy Act of 1954.
United States · United States Congress · 29 July 1985
States that the Congress: (1) reaffirms the Helsinki Final Act and the Madrid Concluding Document; (2) condemns Eastern Bloc violations of specified international human rights agreements; and (3) requests the President to direct the U.S. Department of State to convey U.S. concerns with regard to such violations to the Soviet Union and its allies. Calls upon the President to use every opportunity to stress the link between respect for human rights and the achievement of peace.
United States · United States Congress · 26 July 1985
Amends the Internal Revenue Code to provide that the amount of a qualified artistic charitable contribution shall be the fair market value of the property contributed (determined at the time of such contribution). Defines "qualified artistic charitable contribution" as the contribution of any literary, music, artistic, or scholarly composition, any letter or memorandum, or similar property, but only if: (1) such property was created by the personal efforts of the taxpayer making such contribution no less than one year prior to such contribution; (2) there is a written appraisal of the fair market value of the property included with the tax return; and (3) the use of such property by the donee is related to the purpose or function constituting the basis for the donee's tax exemption. Limits the amount of the qualified artistic charitable contributions for any taxable year to the artistic adjusted gross income for the taxpayer for such taxable year. Defines "artistic adjusted gross income." Prohibits public officials from taking a deduction for donation of their papers if the papers were produced while the officials were officers or employees of the United States or any State, or if the papers were created out of the performance of any duties as officers or employees of the government. Provides that alternative tax itemized deductions shall be determined without regard to the deduction for qualified artistic charitable contributions.
United States · United States Congress · 18 July 1985
Authorizes the President, on behalf of the Congress, to present a gold medal to Aaron Copland in recognition of his contributions to American musical composition. Authorizes the Secretary of the Treasury to provide for the sale of bronze duplicates of the medal. Authorizes appropriations.
United States · United States Congress · 18 July 1985
Foreign Language Assistance for National Security Act of 1985 - Directs the Secretary of Education to make grants to State educational agencies to fund model programs, designed and operated by local educational agencies, for the improvement and expansion of foreign language study for children aged five through 17 who reside within their school districts. Sets forth formulas for determining the amount of such grants based on State population. Sets forth provisions relating to the availability of such funds. Sets forth grant application requirements for State educational agencies, including provisions for periodic student proficiency evaluation. Provides for program participation by private school children. Requires ratable reduction of such grants when appropriations are insufficient. Directs the Secretary to make grants to State agencies to fund model foreign language programs designed and operated at community and junior colleges. Bases the amount of such grants on State population. Sets forth grant application requirements, including periodic student proficiency evaluation. Requires ratable reduction of such grants when appropriations are insufficient. Directs the Secretary to make grants to institutions of higher education to cover part of the costs of undergraduate foreign language instruction. Sets forth formulas to determine whether an institution is eligible for such grants, based on the percentage of its student body enrolled in qualified postsecondary language courses. Provides that to be eligible for such grants an institution must require that: (1) each entering student have successfully completed at least two years of secondary school foreign language instruction; or (2) each graduating student have earned two years postsecondary credit in a foreign language (or have demonstrated equivalent competence in a foreign language). Authorizes the Secretary to establish standards, including reporting requirements, for programs assisted by such grants. Sets forth formulas for determining the amounts of such grants, based on numbers of undergraduate students enrolled in such courses. Requires ratable reduction of such grants when appropriations are insufficient. Directs the Secretary to make grants to institutions of higher education, or consortia of such institutions, in each Federal region for summer intensive language training institutes for exceptional secondary school students. Bases the amount of each grant on the number of students (up to a limited number) enrolled in such institute. Sets forth application requirements for such grants. Directs the Secretary to encourage, to the extent possible, diversity in the languages taught in summer institutes. Bases awarding of such grants on the excellence of the proposed program, taking specified elements into consideration. Permits such grant funds to be used to cover costs associated with enrollment in an institute. Requires ratable reduction of such grants when appropriations are insufficient. Directs the Secretary to make grants to institutions of higher education, or consortia of such institutions, in each Federal region for summer language training institutes for the professional development of the proficiency of elementary and secondary school language teachers. Bases the amount of each grant on the number of students (up to a limited number) enrolled in such institute. Sets forth application requirements for such grants. Bases awarding of such grants on the excellence of the proposed program, taking specified elements into consideration. Permits such grant funds to be used to cover costs associated with enrollment in an institute. Requires ratable reduction of such grants when appropriations are insufficient. Directs the Secretary to make matching grants to institutions of higher education, or consortia of such institutions, to assist advanced foreign language students to develop their language skills and knowledge of foreign cultures and societies through study abroad. Allows such study abroad to be combined with an internship in an international business enterprise. Requires such program to provide the opportunity for language-proficient students with majors in various other fields to combine language study with studies in those fields. Sets forth a range of world regions and languages which such programs may include. Limits the amount of each grant to one-half the cost of providing such assistance. Sets forth application requirements for such grants. Permits grant funds to be used to cover costs associated with enrollment in an institute. Requires ratable reduction of such grants when appropriations are insufficient. Prohibits any grant or contract under this Act except to such extent, or in such amounts, as may be provided in appropriation Acts. Defines "foreign language" as any language other than English, except that with respect to programs and activities conducted under this Act in the Commonwealth of Puerto Rico such term includes English. Authorizes appropriations for FY 1986 through 1989 to carry out grant programs under this Act.
United States · United States Congress · 10 July 1985
Amends the Foreign Assistance Act of 1961 to direct the President, in providing assistance to developing countries, to: (1) place a high priority on conservation and sustainable management of tropical forests; and (2) take certain steps (including engaging in dialogues on conserving forest resources and information exchanges with recipient countries, supporting projects and activities which offer alternatives to colonizing forests, supporting related training and research programs, helping to end destructive agricultural practices, and denying any assistance for certain activities harmful to the forests). Directs the President, whenever feasible, to accomplish the objectives of this Act through projects managed by private and voluntary and other nongovernmental organizations. Requires the annual report to the Congress on foreign aid programs to include a report on the implementation of this Act. Requires that each country plan prepared by the Agency for International Development include an analysis of actions necessary to achieve conservation and sustainable management of tropical forests and the extent such actions meet the needs identified.
United States · United States Congress · 10 July 1985
Amends the Foreign Assistance Act of 1961 to authorize appropriations to help developing countries protect and maintain wildlife habitats and develop sound wildlife management and plant conservation programs. Requires each country development strategy statement or other country plan prepared by the Agency for International Development (AID) to include a detailed plan to assist that country in the conservation of biological diversity. States that, whenever feasible, such protection, maintenance, management, and conservation activities shall be accomplished through projects managed by private and voluntary organizations and other nongovernmental organizations. Directs AID to allocate at least a specified sum for projects managed by such organizations. Directs the Administrator of AID to take certain steps, including: (1) cooperating with appropriate organizations; (2) looking to the World Conservation Strategy as an overall guide; (3) engaging in dialogues and exchanges of information with recipient countries which stress the importance of conserving biological diversity; (4) supporting training and education which improve the capacity of recipient countries to prevent loss of biological diversity; and (5) the denial of any assistance for actions which invade or significantly degrade national parks or similar protected areas. Requires the annual report to the Congress on foreign aid programs to include a report on implementation of this Act.
United States · United States Congress · 27 June 1985
Institutional Aid Act of 1985 - Amends title III (Institutional Aid) of the Higher Education Act of 1965 (HEA) to revise institutional aid programs, especially in relation to the development needs of historically black colleges and universities and other institutions with large concentrations of minority, low-income students. Includes as eligible institutions, for purposes of the title III part A (Strengthening Institutions) grants program, any institution of higher education which meets specified requirements and which has an enrollment of which at least: (1) 20 percent are Mexican American, Puerto Rican, Cuban, or other Hispanic students, or combination thereof; (2) 60 percent American Indian, Alaska Native, or Aleut, or combination thereof; or (3) five percent Native Hawaiian, American Samoan, Micronesian, Guamian (Chamorro), or Northern Marianan, or any combination thereof. Establishes under title III part B, "Strengthening Historically Black Colleges and Universities" (which replaces the current part B, Aid to Institutions with Special Needs). Defines a "part B institution" as any historically black college or university that was established prior to 1964 and whose principal mission was, and is, the education of black Americans. Sets forth authorized uses for grants allotted to institutions under the part B program. Directs the Secretary of Education (the Secretary) to make allotments to part B institutions according to formulas based on number of: (1) Pell grant recipients; (2) graduates; and (3) graduates in attendance at graduate or professional schools in degree programs in disciplines in which blacks are underrepresented. Sets forth a special rule regarding allotments to Howard University or the University of the District of Columbia. Sets forth provisions for applications for part B grant allotments. Sets forth provisions for part B program grants to professional and graduate institutions. Directs the Secretary, subject to the availability of appropriations for such purpose, to award such grants to each of listed postgraduate institutions that the Secretary determines to be making a substantial contribution to the legal, medical, dental, veterinary, or other graduate education opportunities for black Americans. Prohibits any such grant in excess of $500,000 unless the postgraduate institution assures that 50 percent of the cost of the purposes for which the grant is made will be paid from non-Federal sources. Limits the duration of any such grant to five years. Provides that any one undergraduate or postgraduate institution may receive no more than two such five-year grants. Allows use of such grants for: (1) any of the authorized uses of part B allotment grants; (2) contribution development offices; and (3) institutional endowments. Sets forth application requirements. Provides that independent professional or graduate institutions eligible for such grants include: (1) Morehouse School of Medicine; (2) Meharry Medical School; (3) Charles R. Drew Postgraduate Medical School; (4) Atlanta University; and (5) Tuskegee Institute School of Veterinary Medicine. Sets forth reporting and audit requirements and penalties for misuse of funds. Revises title III part C (Challenge Grants for Institutions Eligible for Assistance Under Part A or Part B) to rename the "endowment grants" under such part "challenge grants." Makes technical and conforming amendments to eligibility requirements under such part. Reduces the maximum amount of any such part C challenge grant for FY 1985 through 1987. (Retains the current maximum for FY 1988 and succeeding fiscal years.) Establishes under title III a new part D, "Reservation for Hispanic, Native American, and Pacific Basin Institutions." (Redesignates the current part D as part E.) Directs the Secretary, from part A appropriations, to make available for use for the purpose of such part the greater of specified amounts or the following portions of such funds: (1) 20 percent for Hispanic institutions; (2) five percent for Native American, Native Alaskan, or Aleut institutions; and (3) five percent for institutions serving Native American Pacific Islanders, including Native Hawaiians residing in the Pacific Basin, including the State of Hawaii. Sets forth authorized uses of such part A funds which are reserved under the new part C. Revises the redesignated part E (General Provisions) under title III. Directs the Secretary to publish in the Federal Register all policies and procedures required to exercise the authority to approve applications for title III assistance. Prohibits any other criteria, policies, or procedure from being applicable for such purpose. Directs the Secretary to: (1) use the most recent and relevant data concerning the number and percentage of students receiving need-based assistance under title IV (Student Assistance) of HEA in making eligibility determinations under part A of title III; and (2) advance the base-year forward following each annual grant cycle. Requires the Secretary to waive specified part A institutional eligibility requirements (involving an institution's having a relatively high percentage of students receiving need-based assistance under title IV of HEA) in the case of an institution which is: (1) extensively subsidized by the State in which it is located and charges low or no tuition; (2) serving a substantial number of low- and middle-income students as a percentage of its total student population; (3) contributing substantially to increasing higher education opportunities for black Americans, Hispanic Americans, Native Americans, Native American Pacific Islanders, including Native Hawaiians, who are low-income individuals; or (4) substantially increasing higher educational opportunities for individuals in rural or other isolated areas unserved by postsecondary institutions. Includes Hispanic, Native American, or Pacific Basin institutions which have been determined eligible under part D, although not satisfying a specified eligibility criterion (involving an institution's having relatively low and general expenditures), among those institutions which must be included in an annual report of the Secretary to the Congress. Includes among those reasons for which the Secretary may grant a waiver of specified eligibility requirements (involving an institution's being accredited by a nationally recognized accrediting agency and its being authorized to offer bachelor's or junior or community college degrees) a determination that such waiver will substantially increase higher education opportunities appropriate to the needs of Hispanic Americans or Native American Pacific Islanders, including Native Hawaiians. Directs the Secretary to take care to assure that representatives of historically black colleges, Hispanic institutions, Native American institutions, and Native American Pacific Islanders, including Native Hawaiians, are included as readers on title III application review panels. Revises provisions for grants to encourage cooperative arrangements to include such arrangements between title III aid recipients and institutions not receiving such assistance. Includes benefit to the applicant institutions as a priority criterion in making such grants. Authorizes appropriations for FY 1987 through 1991 for the following title III programs: (1) part A, Strengthening Institutions; (2) part B, Strengthening Historically Black Colleges and Universities (with a separate authorization for part B provisions for Professional and Graduate Institutions); and (3) part C, Challenge Grants for Institutions Eligible for Assistance Under Part A or Part B. Directs the Secretary to make available part A funds for any fiscal year to eligible institutions as follows: (1) at least 30 percent to junior or community colleges; (2) at least 20 percent (or a specified minimum amount, if that is greater) for Hispanic institutions; (3) at least five percent (or a specified minimum amount if that is greater) for Native American, Alaskan, or Aleut institutions; (4) at least five percent (or a specified minimum amount if that is greater) for Pacific Basin institutions; and (5) the remainder to institutions that plan to award a bachelor's degree during that year.
United States · United States Congress · 26 June 1985
Authorizes the Secretary of the Interior to erect a monument, given as a gift from Morocco in recognition of mutual friendship, on Federal land within the District of Columbia. Directs the Secretary, with the approval of the Commission of Fine Arts and the National Capital Planning Commission, to select a design and site for the monument. Directs the Secretary to maintain the monument. Makes the authority to erect the monument contingent on construction beginning within five years. Directs that U.S. funds may not be used to build the monument.
United States · United States Congress · 25 June 1985
Child Care Opportunities for Families Act - Title I: Increasing the Supply of Child Care - Amends title XX (Block Grants to States for Social Services) of the Social Security Act to increase the amount of appropriations authorized for FY 1985 through 1988 and succeeding fiscal years for title XX allotments to States. Reserves specified amounts from such title XX funds for FY 1986 through 1988 and succeeding fiscal years for use only for the provision of qualified child day care services. Directs the Secretary of Health and Human Services (HHS) to allot such reserved funds in the same proportions as regular title XX allotments. Defines qualified child day care services, for such purposes, as child day care services which are provided to: (1) children who are abused or neglected children, or at risk of being abused or neglected, or in families receiving child protective services; (2) children of eligible families who are recipients of aid to families with dependent children (AFDC); and (3) children (handicapped or nonhandicapped) of low-income parents (including legal guardians or primary caretakers) who are adolescents, or working, or enrolled in education or training programs, or seeking employment. Provides that such child day care services funds shall be: (1) only supplementary to funds from other sources (including other title XX funds); (2) separately accounted for in reports and audits; and (3) not transferable for purposes of other Federal block grant programs. Requires States, as a condition of eligibility for title XX block grants, to provide a State share of the total expenditures made by the State during any fiscal year (in cash or kind) for the provision of services directed at the goals set forth under title XX. Sets such State share to be provided from non-Federal public or private sources, at 25 percent of such total expenditures. Establishes a school-based early childhood education and child care services pilot program. Directs the Secretary of Education to make grants to States to assist local educational agencies (LEAs) to establish and expand such education and services for children aged four and five. Permits such pilot program funds to be used to: (1) extend half-day kindergarten to a full school day or typical working day to meet the needs of working parents; (2) contract with community-based child care organizations to provide part-day child day care to complement existing half-day or full school day school-based kindergarten or early childhood education programs; and (3) establish, or contract with community-based child care organizations to provide, pre-kindergarten or early childhood education programs and child day care services for children four years of age for a typical working day. Sets forth provisions for State applications for such pilot program grants, including requirements for: (1) State and LEA advisory panels; (2) encouragement of participation of severely handicapped children; and (3) priority consideration to programs serving substantial proportions of children from low-income families. Directs the Secretary of Education, in considering such applications to: (1) give preference to applicants whose programs provide services for the typical working day; and (2) ensure an equitable distribution of grants among States. Sets forth requirements for such pilot programs, including parent involvement, sliding scale fee scales, and no fees charged to families with incomes less than 150 percent of the poverty level. Sets forth matching requirements for such pilot programs. Limits the Federal share to 75 percent in the first year of assistance, 60 percent in the second year, and 40 percent in the third and any subsequent year. Limits administrative costs to five percent of the grant to the State or five percent of assistance to any LEA. Requires that at least ten percent of the total enrollment opportunities in each LEA in such pilot programs shall be available for handicapped children, with services to meet their special needs. Sets forth requirements for reports on, and evaluation of, such pilot programs. Defines community-based child care organization, for purposes of such pilot program provisions, as a private organization which is representative of the community and which has experience in providing child care services to low-income families. Authorizes appropriations for FY 1986 through 1988 for such pilot program of school-based early childhood education and child care services. Title II: Upgrading State Child Care Standards - Amends title XX (Block Grants to States for Social Services) of the Social Security Act to add a further increase (above that already provided under title I of this Act) in the amount of appropriations authorized for Fy 1986 through 1988 and succeeding fiscal years for title XX allotments to States. Reserves specified amounts from such title XX funds for FY 1986 through 1988 and succeeding fiscal years for incentive grants to States for improvements in their child care licensing, regulatory, and monitoring systems. Directs the Secretary of Health and Human Services (HHS) to initially allot such reserved funds in the same proportions as regular title XX allotments. Requires that any remaining part of such reserved funds be used for making further grants to States which require additional assistance to carry out their State plans for such purpose. Requires that, for years after FY 1986, priority be given in distributing such additional funds to those States which have developed plans that will lead to their meeting or exceeding the recommended standards established by the National Advisory Committee on Child Care Standards pursuant to this Act. Requires the Governor of each State, as a condition of the State's eligibility for receiving title XX Federal payments, to establish or designate a State Advisory Committee on Child Care Standards which shall: (1) examine, investigate, and study the State's laws, regulations, and procedures for licensing, regulating, and monitoring child care services and programs within the State; and (2) prepare a report outlining the committee's findings and recommendations, including a description of the current status of child care licensing, regulating, or monitoring within the State to be submitted to each State's Governor for transmittal, along with the Governor's comments, to the Secretary of HHS. Establishes a National Advisory Committee on Child Care Standards in order to assist and provide guidance to the States in improving the quality of child care services. Requires each State Advisory Committee and the National Advisory Committee to review the options for child care standards published by the Department of HHS in January 1985 and the final 1980 HEW Day Care Regulations. Directs the National Advisory Committee to issue recommended standards for child care programs, after first publishing proposed standards and receiving comments. Terminates the National Advisory Committee 90 days after the publication of the final recommended standards. Directs the Secretary of HHS, from the title XX funds reserved and allotted to the States for such purpose, to make incentive grants to assist States in carrying out their plans to correct deficiences in, or otherwise improving, the licensing, regulating, and monitoring of their child care programs. Requires that State applications for such grants include such plans. Requires a detailed explanation if the State plan omits carrying out any recommendation contained in the State advisory committee's report. Title III: Expanding Private Sector Initiatives - Directs the Secretary of Health and Human Services (HHS) to establish a demonstration program of grants to local private nonprofit organizations to improve and expand child care services in the community by establishing and administering community funds for child care, in partnership with private for-profit businesses. Requires that such grants be used to provide: (1) child care scholarships on a sliding fee scale for low-income families through vouchers or by purchasing slots in child care programs; (2) partial scholarships of such sort to families ineligible for child care under title XX of the Social Security Act and whose income does not exceed $30,000; and (3) loans and grants to local nonprofit organizations (especially those serving significant proportions of low-income children) for start-up or renovation costs for community child day care services. Sets the maximum Federal share of the cost of expenditures from such community funds at 50 percent in the first year of Federal assistance, 40 percent in the second year, and 25 percent in the third and any subsequent year. Sets forth grant application requirements, including: (1) establishment of local advisory boards; and (2) obtaining of at least half of the local share of such community funds from for-profit private businesses. Directs the Secretary of HHS, in considering such applications, to: (1) ensure an equitable distribution of assistance among States and among urban and rural areas; and (2) give preference to organizations that have received such assistance in the previous year. Sets forth requirements for annual reports, evaluations, and audits of such community child care funds. Authorizes appropriations for FY 1986 through 1988 for such community child care funds program. Title IV: Training Child Care Personnel - Amends title XX (Block Grants to States for Social Services) of the Social Security Act to add a further increase (above that already provided under titles I and II of this Act) in the amount of appropriations authorized for FY 1986 through 1988 and succeeding fiscal years for title XX allotments to States. Reserves specified amounts from such title XX funds for FY 1986 through 1988 and succeeding fiscal years for use by States in providing child care personnel training and retraining (including training in child development and in prevention of child abuse in day care settings). Provides that such training may be given to: (1) providers of licensed or registered child care services; (2) operators and staffs of facilities where such services are provided; (3) State licensing and enforcement officials; and (4) parents. Gives priority in such training to infant care providers, family day care providers, and providers of care for children with handicapping conditions. Directs the Secretary of Health and Human Services (HHS) to initially allot such reserved funds in the same proportions as regular title XX allotments. Requires that any remaining part of such reserved funds be used for making further payments to States on the basis of their respective needs and other factors which the Secretary of HHS considers appropriate. Establishes a program of scholarships for low-income individuals who are candidates for the Child Development Associate (CDA) credential. Directs the Secretary of HHS to make grants to States to provide such scholarships. Requires that preference be given to scholarship applicants who are candidates for the CDA credential for work in: (1) a family day care setting with children who are not more than five years of age; or (2) a center-based setting with children who are not more than three years of age. Requires State grant applications to assure that: (1) each scholarship will cover all necessary costs incidental to receiving the CDA credential; and (2) the State will not expend more than five percent of the grant for administrative costs. Defines low-income individual, for such purposes, as one whose income does not exceed 185 percent of a specified poverty line. Amends title V (Teacher Corps and Teacher Training Programs) of the Higher Education Act of 1965 (HEA) to add a new part G, Training Personnel for Early Childhood Education. Authorizes the Secretary of Education to make grants to institutions of higher education to: (1) train personnel for careers in early childhood education and development; and (2) prepare professional personnel to provide such training. Directs the Secretary to ensure that such part G grant funds are equitably distributed by geographic region and between four-year and two-year institutions. Permits such grants to be used by the institutions: (1) to cover the cost of such courses of training or study; and (2) for scholarships to individuals who agree to be providers of early childhood education or child day care services for at least two years after completion of their academic program. Requires that such scholarships be awarded on the basis of need to full- or part-time students, with preference to be given to those preparing to work with children three years of age or younger or children with handicapping conditions. Sets forth reporting requirements for grant or contract recipients under part G. Authorizes appropriations for FY 1986 through 1988 to carry out such HEA title V part G grants program for training personnel in early childhood education. Authorizes appropriations for FY 1986 through 1988 to carry out such program. Amends the Omnibus Budget Reconciliation Act of 1981 to revise provisions for grants to States for planning and development of dependent care programs. Adds an authorization of appropriations for FY 1986 for allotments to States to carry out the family day care training and technical assistance grants program added by this Act. Prohibits a project under such program from duplicating any services already provided by the State or locality to be served. Permits such program funds for FY 1986 to be used for grants to eligible nonprofit community-based organizations to provide: (1) training to family day care providers and individuals involved in training such providers (including child development and infant care training); and (2) technical assistance to family day care sponsors, providers, and individuals involved in training such providers, on laws and regulations applicable to the provision of family day care services. Allows training and technical assistance relating to the provision of family day care for handicapped children to be included under such grants. Makes nonprofit community-based organizations eligible for such grants if they: (1) have experience with working with such providers; and (2) agree to give training and technical assistance to such providers serving low-income families. Defines family day care as the care of children provided outside their residences, for a fee and on a part-day basis, by an individual in that individual's residence. Title V: Child Care Services for Special Groups - Part A: Child Care Services for Low-Income Postsecondary Students - Amends title IV (Student Assistance) of the Higher Education Act of 1965 to add a new part D, Higher Education Institution-Based Child Care Program. Authorizes appropriations for such new part D program for FY 1986 through 1990. Directs the Secretary of Education to use such part D funds to make grants to institutions of higher education to provide child care services to low-income students. Sets forth grant application requirements, including provision of assurances that: (1) at least two-thirds of program participants are low-income individuals who are first-generation college students; (2) the remaining participants are either low-income individuals or first-generation college students; (3) the participants require the services to pursue a successful education beyond secondary school; (4) participants are enrolled at the grant recipient institution; and (5) the institution will provide to participants market rate vouchers for child care in licensed or registered programs or purchase slots in such programs for use by participants. Limits institutional administrative costs to five percent of the program grant. Defines low-income individual as one from a family whose taxable income for the preceding year did not exceed 150 percent of a specified poverty level amount. Part B: Respite Care Demonstration Grants for Families with Special Needs - Directs the Secretary of Health and Human Services (HHS) to establish a demonstration program of grants to States to assist public and private agencies to provide in-home or out-of-home respite care for handicapped children and children with chronic or terminal illnesses. Requires that such care be provided on a sliding fee scale with hourly and daily rates. Directs the Secretary of HHS to establish a demonstration program of grants to States to assist public and private agencies to provide crisis nurseries (i.e. centers providing temporary emergency services and care) for children who are abused and neglected, at high risk of abuse and neglect, or in families receiving child protective services. Requires crisis nurseries to: (1) provide such services and care without fee for a maximum of 30 days; (2) provide referral to support services. Sets forth administrative provisions for applications and awards of grants for the demonstration programs under this part. Requires States receiving such grants to submit annual funded program evaluation reports to the Secretary of HHS. Part C: Comprehensive Service Centers - Directs the Secretary of HHS to establish a program of grants to State and local health departments and nonprofit agencies to establish and operate school-located comprehensive health service centers. Requires such programs to be administered through the health resources and services administration of the Department of HHS. Requires such centers to provide, or arrange for the provision of, comprehensive health care services, child care sufficient to enable a student to continue education or enter employment, family life and parenting education, and academic and employment counseling and placement. Makes such services available to any student, but requires that priority attention be given the needs of any student who is an adolescent parent, pregnant, or a potential dropout. Requires such programs to provide or arrange provision of: (1) such services on school campuses, to the extent practicable; and (2) transportation of students to and from agencies supplying such services, and of eligible adolescent parents and their children to and from child care services. Sets forth provisions for fee schedules for such services. Prohibits discrimination on the basis of inability to provide full payment for such services. Requires grant recipients to collect reimbursement, where possible, for the Medicaid and title XX child care services programs under the Social Security Act. Limits State or local administrative costs to ten percent, and Federal administrative costs to one percent, of program funds. Sets forth grant application requirements. Directs the Secretary of HHS, in reviewing such applications, to: (1) consider the equitable geographic distribution of grants among States, and among urban and rural areas; and (2) give preference to recipients who will provide services in schools with the highest adolescent birth rate and the highest concentrations of low-income students and potential dropouts. Requires that Federal funds for such programs be supplementary to State and local funds, and that such programs provide services which are in addition to, rather than in substitution for, comparable services previously provided without Federal assistance. Sets the maximum Federal share of assistance to a center at 100 percent in the first year, 75 percent in the second year, and 50 percent in the third and any subsequent year of assistance. Sets forth annual reporting requirements for grant recipients. Directs the Secretary of HHS, after the second year of such assistance, to provide for an independent evaluation of a representative sample of such programs. Defines comprehensive health care services to include: (1) primary and preventive health services, including prenatal, delivery, and postpartum care; (2) pregnancy testing and maternity counseling; (3) nutrition counseling and referral; (4) screening and treatment of sexually transmitted diseases; (5) appropriate pediatric care; (6) pediatric services for infants born to adolescents; (7) mental health services and referral; (8) family planning services; (9) dental services and referral; and (10) such other services as the Secretary of HHS provides by regulation. Defines child care services,for purposes of this part, as services that: (1) are provided by a school-based or community-based child care organization (2) at a minimum include the provision of child care services to any child of an adolescent parent from birth through age 30 months; and (3) meet applicable State licensing standards. Authorizes appropriations for FY 1986 through 1988 for the grants program for school-located comprehensive health service centers under this part. Part D: Child Care Expenses for AFDC Recipients - Amends Social Security Act provisions relating to aid to families with dependent children (AFDC) to allow an increased amount of child care expenses to be taken into consideration in determinations of AFDC eligibility.
United States · United States Congress · 5 June 1985
Expresses the Senate's commendation of the Soil Conservation Service on its 50th anniversary, and the Senate's commitment to vigorous soil and water conservation efforts.
![Official portrait of Sen. Fowler, Wyche, Jr. [D-GA]](https://www.congress.gov/img/member/f000329_200.jpg)