S.Amdt. 4463

SA 4463. Mr. HARKIN submitted an amendment intended to be proposed to amendment SA 4402 proposed by Mr. Reid (for Mr. Baucus (for himself, Ms. Landrieu, and Mr. Reid)) to the bill H.R. 5297, to create the Small Business Lending Fund Program to direct the Secretary of the Treasury to make capital investments in eligible institutions in order to increase the availability of credit for small businesses, to amend the Internal Revenue Code of 1986 to provide tax incentives for small business job creation, and for other purposes; which was ordered to lie on the table; as follows:

At the end of subtitle A of title II, insert the following:

PART V--OTHER PROVISIONS

SEC. ____. SPECIAL RULE FOR PRIVATE ACTIVITY BOND PRIVATE USE TESTS WITH RESPECT TO THE PURCHASE OF WATER OUTPUT.

(a) In General.--A qualified water output agreement shall be disregarded in determining whether the private business tests under section 141(b) of the Internal Revenue Code of 1986 are met with respect to an issue of bonds.

(b) Qualified Water Output Agreement.--For purposes of this section, the term “qualified water output agreement” means, with respect to any issue of bonds, any agreement with a qualified entity for the purchase of water from a facility which is financed by such issue if it is reasonably expected on the date of issuance that not less than 10 percent of the water will be sold by such qualified entity to individuals not involved in a trade or business or to political subdivisions or their utilities.

(c) Qualified Entity.--For purposes of this section, the term “qualified entity” means any rural water association--

(1) no part of the net earning of which inures to the benefit of any private shareholder or individual, and

(2) which is described in section 501(c)(12) of the Internal Revenue Code of 1986 and exempt from tax under section 501(a) of such Code.