S.Amdt. 2906

SA 2906. Mr. CORNYN submitted an amendment intended to be proposed by him to the bill S. 1637, to amend the Internal Revenue Code of 1986 to comply with the World Trade Organization rulings on the FSC/ETI benefit in a manner that preserves jobs and production activities in the United States, to reform and simplify the international taxation rules of the United States, and for other purposes; which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

SEC.

(a) In General.--Paragraph (1) of section 648 Public Law 98-369 (the Deficit Reduction Act of 1984) is amended to read as follows:

“(1) such securities obligations are held in a fund--

“(A) which, except to the extent of the investment earnings on such securities or obligations, cannot be used, under State constitutional or statutory restrictions continuously in effect since October 9, 1969, through the date of issue of the bond issue, to pay debt service on the bond issue or to finance the facilities that are to be financed with the proceeds of the bonds, or

“(B) the annual distributions from which cannot exceed 7 percent of the average fair market value of the assets held in such fund except to the extent distributions are necessary to pay debt service on the bond issue,”.

(b) Conforming Amendment.--Paragraph (3) of such section is amended by striking “the investment earnings of” and inserting “distributions from.”

(c) Effective Date.--The amendments made by this section shall take effect on January 1, 2000.