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[Tuition Tax Credit Bill] (13)
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[Tuition Tax Credit Bill] (13)
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Records of the White House Office of Policy Development (Reagan Administration)
William P. Barr's Office Files
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Ronald Reagan Presidential Library
Digital Library Collections
This is a PDF of a folder from our textual collections.
Collection: Barr, William: Files
Folder Title: Tuition Tax Credit Bill (13)
Box: 13
To see more digitized collections visit:
https://reaganlibrary.gov/archives/digital-library
To see all Ronald Reagan Presidential Library inventories visit:
https://reaganlibrary.gov/document-colection
Contact a reference archivist at: [email protected]
Citation Guidelines: https://reaganlibrary.gov/citing
National Archives Catalogue: https://catalog.archives.gov/
Barr
019720.316
97th CONGRESS
2d Session
H.R. 1635
IN THE SENATE OF THE UNITED STATES
October 7, 1981
Read twice and referred tc the Committee on the Judiciary
September
(legislative day,
) 1982
Reported by Mr. Dole, with an amendment to the text and an
amendment to the title
[Strike out all after the enacting clause and insert the part
printed in italic]
:
AN ACT
For the relief of the Jefferson County Mental Health Center,
Incorporated, and of certain current and former employees
thereof.
1
Be it enacted by the Senate and House of Representatives
2 of the United States of America in Congress assembled, That
3
the-Seeretary-sf-the-freasury-is-authortped-and-dtreeted-te
4
pay,-eut-ef-any-meney-tn-the-freasury-not-etherwise
5 appropplated,-to-the-deffersen-County-Nental-Heatth-eentery
6
Ineerperated,-the-sum-ef-65608-in-fu11-setttement-of-att
7
elatms-of-the-senter-against-the-Unfted-States-fer-eavment
8
of-ameunts-the-eenter-ereeneeusty-refunded-te-its-empleyees
9
fer-seeial-seearity-sentetbutions-in-the-perto-after
10
Beeember-34,-4974-end-pter-to-ay-44-49757-pdfstent-te
11
instructions-by-the-Internal-evenue-Serviees
12
See---te-part-of-the-amount-appropriated-tn-the-tet-in
13
exeess-ef-4f-per-eentum-shall-be-paid-defivered-to-ep
14
reeeived-by-any-agent-or-atterney-en-aeeeunt-ef-servtees
15
fendered-in-eonneetien-with-thts-etatmg-and-the-same-shatt-be
16
unlawful;-any-senteaet-te-the-eontpary-netwtthstandtngs-tny
Barr
019720.316
97th CONGRESS
2d Session
H.R. 1635
IN THE SENATE OF THE UNITED STATES
October 7, 1981
Read twice and referred tc the Committee on the Judiciary
September
(legislative day,
) 1982
Reported by Mr. Dole, with an amendment to the text and an
amendment to the title
[Strike out all after the enacting clause and insert the part
printed in italic]
AN ACT
For the relief of the Jefferscn County Mental Health Center,
Incorporated, and of certain current and former employees
thereof.
1
Be it enacted by the Senate and House of Representatives
2 of the United States of America in Congress assembled, That
3
the-Seeretary-f-the-freasury-is-authoried-and-dtreetd-te
4
pay,-eut-ef-any-meney-in-the-freasury-net-etherwise
5
approprlated,-to-the-deffersen-county-Hental-Health-fenter
6
Ineorperated,-the-sum-ef-556008-in-fuff-sett1ement-of-att
7
elaims-ef-the-senter-against-the-nited-States-fer-repament
8
famounts-the-center-erpeneeusly-refunded-te-tts-empleyees
9
fer-seefal-seedrity-eentrtbutiens-in-the-perte6-aftef
10
Deeember-34,-4974-end-pEter-te-May-14-4975-pdrset-
11
instruetions-by-the-Internal-Revenue-Servieet
12
See----te-pat-ef-the-ameunt-apprepriated-in-the-tet-in
13 exeess-of-4f-per-eentum-shatt-be-patd-detivered-to-er
14 reeeived-by-any-agent-er-atterney-on-aeeeunt-ef-servtees
15
pendered-in-conneetion-with-this-etaimy-and-the-same-shat1-be
15 unlawfuly-any-sontpact-te-the-eenteary-notwithstandines-Any
019720.316
2
1 person-viotatiag-the-provisiens-of-this-seetien-shatl-be
2 deemed-guflty-of-a-misdemeaner-andy-upon-eonvietton-thereet
3 be-fined-any-sdm-net-exeeeding-$1,98.
4 SECTION 1. SHORT TITLE.
5
This Act may be cited as the ''Educational Opportunity
5 and Equity Act of 1982".
7 SEC. 2. CONGRESSIONAL FINDINGS AND PURPOSES.
8
(a) Findings. The Congress finds that it is the policy
9 of the United States to foster educational opportunity,
10 diversity, and choice for all Americans. Therefore, this Act
11 recognizes that--
12
(1) pluralism is cne of the great strengths of
13
American society, diversity in education is an important
14
contributor to that pluralism, and nonpublic schools play
15
an indispensable role in making that diversity possible;
16
(2) the existence and availability of alternatives to
17
public education tend to strengthen public education
18
through competition and to improve the educational
19
opportunities of all Americans;
20
(3) Americans should have equal opportunities to
21
choose between the education offered by public schools
22
and available in private educational systems and should
23
not be compelled because of economic circumstances to
24
accept education provided by government-created and
25
government-operated school systems, and to force such a
26
selection is an unfair and unjust discrimination against
27
persons of lesser means;
28
(4) increasing numbers of American families are
29
unable to afford nonpublic school tuition in addition to
30
the State and local taxes that go to support public
31
schools, and tax relief for nonpublic school tuition
32
expenses is necessary if American families are to
33
continue to have a meaningful choice between public and
34
private education at the elementary and secondary levels;
019720.316
3
1
(5) tax relief in the form of tuition tax credits is
2
the fairest way to extend a choice in education to a wide
3
range of individuals, tax relief in the form of tuition
4
tax credits creates the least possible danger of
5
interference in the lives of individuals and families
6
consistent with achieving these ends, and tax relief in
7
the form of tuition tax credits achieves these ends with
8
a minimum of complexity so that those for whom the tax
9
relief is intended will be able to understand and take
10
advantage of it;
11
(6) the tax revenue loss occasioned by a tuition tax
12
credit for a child would be small compared to the cost to
13
State and local taxpayers of educating the child at a
14
public school; and
15
(7) equality of educational opportunity is the policy
16
of the United States, and the tax relief afforded by this
17
legislation should not be used to promote racial
18
discrimination.
19 The Congress finds that this Act will expand opportunities
20 for personal liberty, diversity, and pluralism that
21 constitute important strengths of education in America.
22
(b) Purpose.-The primary purpose of this Act is to
23 enhance equality of educational opportunity, diversity, and
24 choice for Americans.
25 SEC. 3. CREDIT FOR TUITION EXPENSES.
26
(a) In General. Subpart A of part IV of subchapter A of
27 chapter 1 of the Internal Revenue Code of 1954 (relating to
28 credits allowable) is amended by inserting after section 44G
29 the following new section:
30 "SEC. 44H. CREDIT FOR TUITION EXPENSES.
31
(a) General Rule. At the election of an individual,
32 there shall be allowed as a credit against the tax imposed by
33 this chapter for the taxable year an amount equal to 50
34 percent of the qualified tuition expenses paid by such
019720.316
4
1 individual during the taxable year for any qualified
2 dependent.
3
(b) Limitations. --
4
(1) Maximum dollar amount per qualified
5
dependent.
6
(A) In general. The amount of the credit
7
allowable to the taxpayer under subsection (a) with
8
respect to any qualified dependent for any taxable
9
year shall not exceed the applicable amount.
10
: (B) Applicable amount. For purposes of this
11
paragraph, the term 'applicable amount' means the
12
excess, if any, of--
13
(i) $300, over
14
(11) 3 percent (6 percent in the case of a
15
married individual who does not file a joint
16
return) of the amount, if any, by which the
17
adjusted gross income of the taxpayer for the
18
taxable year exceeds $40,000 ($20,000 in the case
19
of such married individual).
20
(C) Transitional rule. For taxable years
21
beginning after December 31, 1982, and before January
22
1, 1985, subparagraph (P) shall be applied--
23
'`(i) in taxable years beginning in 1983, by
24
substituting--
25
(I) '$100' for "5300",
26
(II) '1 percent' for '3 percent', and
27
(III) '2 percent' for '6 percent, and
28
(li) in taxable years beginning in 1984, by
29
substituting--
30
''(I) 'S200' for "$300',
31
(II) '2 percent' for '3 percent' , and
32
(III) '4 percent' for '6 percent'.
33
''(2) Credit not to exceed tax liability. The credit
34
allowed by subsection (a) shall nct exceed the tax
019722.316
5
1
imposed by this chapter for the taxable year, reduced by
2
the sum of the credits allowable under a section of this
3
subpart having a lower number or letter designation than
4
this section, other than credits allowable by sections
5
31, 39, and 43.
6
(c) Credit Denied fcr Amounts Paid to Racially
7 Discriminatory Institutions.--
8
(1) Declaratory judgment entered.--
9
" (A) In general. No credit shall be allowed
10
under this section for any amount paid to an
11
educational institution during any taxable year if
12
within the calendar year ending with or within such
13
taxable year or in any preceding calendar year--
14
: (i) either--
15
(I) a judgment has been entered by a
16
district court of the United States under
17
section 7408 (regardless of whether such
18
judgment is appealed) declaring that such
19
educational institution follows a racially
20
discriminatory policy, or
21
(II) an order by any United States
22
Court of Appeals has been made which by its
23
terms requires the district court to enter
24
such a Judgment, and
25
: (ii) no order described in section 7408 (f)
26
(2) with respect to such educational institution
is in effect.
27
has been entered at any time subsequent to such
28
judgment.
29
: (B) Reversals of declaratory judgments.
30
: (1) In general. judgment or order
31
described in subparagraph (A) (1) entered in an
32
action brought with respect to an educational
33
institution shall not be taken into account under
34
subparagraph (A) for any taxable year if, after
6
1
all appeals in such action have been concluded cr
2
the time for filing such appeals has expired, the
3
declaration contained in such judgment, or
4
required to be entered under the terms of such
5
order, that such institution has followed a
6
racially discriminatory policy is negated (cther
7
than by reason of an order described in section
8
7438 (f) (2)).
9
'(11) Waiver of limitations.--
10
Notwithstanding section 6511 (a) or any other
11
period of limitation or lapse of time, a claim
12
for credit or refund of overpayment of the tax
13
imposed by this chapter which arises by reason of
14
this subparagraph may be filed by any person at
15
any time within the 1-year period beginning on
16
the date on which any judgment or order described
17
in clause (1) becomes final and no longer
18
appealable. Sections 6511 (b) and 6514 shall not
19
apply to any claim for credit or refund filed
20
under this paragraph within such 1-year period.
21
: (C) Stay of declaratory judgment.-
22
(1) In general. Any judgment or order
23
described in subparagraph (A) (1) shall not be
24
taken into account under subparagraph (A) for any
25
taxable year If such judgment or order is stayed
26
as of the close of such taxable year.
27
(11) Removal of stay. If a stay entered
28
against a Judgment or order described in
29
subparagraph (A) (1) is vacated--
30
(I) this subparagraph shall not apply
31
with respect to such judgment or order for
32
any taxable year preceding the taxable year
33
in which such stay is vacated, and
34
(II) notwithstanding any other
019720.316
7
1
provision of this title or of any other law,
2
the statutory period for the assessment of a
3
deficiency attributable to the disallowance
4
of any credit under this section by reason of
5
this clause shall not expire before the date
6
which is 3 years after the close of the
7
calendar year in which such stay is removed.
8
(2) Required statements.
9
" (A) Statements furnished by institutions to the
10
Secretary. No credit shall be allowed under
11
subsection (a) for amounts paid to any educational
12
institution during the taxable year if such
13
educational institution has not filed with the
14
Secretary (in such manner and form as the Secretary
15
shall by regulation prescribe) within 30 days after
16
the close of the calendar year ending with or within
17
such taxable year a verified statement which--
18
(1) declares that such institution has not
19
followed a racially discriminatory policy during
20
such calendar year;
21
(11) indicates whether--
22
(I) a declaratory judgment or order
23
described in paragraph (1) (A) (1) has been
24
entered against such institution in an action
25
brought under section 7478;
26
(II) a stay against such judgment or
27
order is in effect; and
28
(III) an order described in section
29
7408 (f) (2) has been entered in such action;
30
and
31
(111) attests that such institution has
32
complied with the requirements of subsection (d)
33
(3) (D) during such calendar year.
34
.11 (B) Statements furnished to taxpayers. Except
019720.316
R
1
as otherwise provided by regulations, within 30 days
2
after the close of the calendar year to which the
3
statement described in subparagraph (A) relates, the
4
educational institution shall furnish a copy of such
5
statement to all persons who paid tuition expenses to
5
the institution in the calendar year to which such
7
statement relates.
8
: (C) Statements furnished by taxpayers to the
9
Secretary. -- No credit shall be allowed to a taxpayer
12
under subsection (a) for amounts paid to an
11
educational institution during the taxable year if
12
the taxpayer does not attach to the return or which
13
the taxpayer claims the credit the statement
14
described in subparagraph (A) which is furnished by
15
such institution for the calendar year ending with or
16
within such taxable year of the taxpayer.
17
: (3) Enforcement responsibility. The Attorney
18
General shall have exclusive authority under this
19
subsection to investigate and to determine whether an
22
educational institution is following a racially
21
discriminatory policy.
22
''(4) Racially discriminatory policy. For purposes
23
of this subsection--
24
(A) In general. An educational institution
25
follows a racially discriminatory policy if such
26
institution refuses, on the basis of race, tc--
27
" (i) admit applicants as students;
28
(ii) admit students to the rights,
29
privileges, programs, and activities generally
30
made available to students by the educational
31
institution; or
32
" (iii) allow students to participate in its
33
scholarship, loan, athletic, cr other programs.
34
(B) Quotas, etc. The term 'racially
019722.316
9
1
discriminatory policy' shall not include failure of
2
any educational institution to pursue or achieve any
3
racial quota, proportion, or representation in the
4
student body.
5
(C) Race.--The term 'race' shall include color
6
or national origin.
7
(d) Definitions Fcr purposes of this section--
8
(1) Qualified tuition expenses. The term
9
'qualified tuition expenses' means the excess of--
10
(A) the amount of tuition expenses paid by the
11
taxpayer during the taxable year to any eligible
12
educational institution for any qualified dependent
13
of such taxpayer, over
14
(B) any scholarship or financial assistance
15
paid during such taxable year to such qualified
16
dependent or to the taxpayer with respect to such
17
qualified dependent.
18
(2) Qualified dependent. The term 'qualified
19
dependent' means any individual--
20
(A) who is a dependent of the taxpayer (other
21
than an individual described in paragraph (4), (5),
22
(7), or (8) of section 152 (a)),
23
(B) who has not attained 20 years of age at the
24
close of the taxable year, and
25
(C) with respect to whom a deduction under
26
section 151 is allowable to the taxpayer for the
27
taxable year.
28
''(3) Eligible educational institution. The term
29
'eligible educational institution' means an educational
30
institution--
31
''(A) which provides a full-time program of
32
elementary or secondary education;
33
(B) which is a privately operated, not-for-
34
profit, day or residential school;
019720.316
12
1
: (C) which is exempt from taxation under section
2
501(a) as an organization described in section
3
501(c)(3), including church-operated schools to which
4
subsections (a) and (b) of section 508 do not apply;
5
(D) which includes in its by-laws,
6
advertisements, admission application forms and other
7
such publications, if any, a statement (in such form
8
and manner as the Secretary may by regulations
9
prescribe) that it does not discriminate against
10
student applicants or students on the basis of race;
11
(E) which dces not have an admissions policy
12
that discriminates against handicapped children; and
13
(F) attendance at which satisfies the
14
requirements of any law of the State in which--
15
(1) such institution is located, or
16
(11) the qualified dependent of the
17
taxpayer resides,
18
which cequires children to attend school.
19
(4) Admissions policy which discriminates against
20
handicapped children.-
21
(A) In general. An educational institution has
22
an admissions policy which discriminates against
23
handicapped children if such institution refuses to
24
admit otherwise qualified applicants solely on the
25
basis of their handicap.
26
''(B) Inability to meet special needs.
27
educational institution which denies admission to any
28
handicapped child shall not be treated as having an
29
admissions policy which discriminates against
30
handicapped children if such admission is denied
31
because such institution does not have the special
32
facilities or programs or specially qualified
33
personnel to accommodate such handicapped child.
34
(C) Handicapped children.--The term
019720.316
11
1
handicapped children' has the same meaning given
2
such term by section 602 (1) of the Education cf the
3
Handicapped Act.
4
(5) Tuition expenses.-
5
(A) In general. The term 'tuition expenses'
6
means tuition and fees paid for the full-time
7
enrollment or attendance of a. student at an
8
educational institution, including required fees for
9
courses.
10
(B) Certain expenses excluded. The term
11
'tuition expenses' does not include any amount paid
12
for--
13
(1) bocks, supplies, and equipment for
14
courses of instruction;
15
''(11) meals, lodging, transportation, or
16
personal living expenses;
17
'`(111) education below the first-grade
18
level; or
19
(iv) education above the twelfth-grade
20
level.
21
(6) Scholarship or financial assistance. The term
22
'scholarship or financial assistance' means--
23
(A) a scholarship or fellowship grant (within
24
the meaning of section 117(a)(1)) which is not
25
includible in gross income under section 117;
26
''(B) an educational assistance allowance under
27
chapter 32, 34, or 35 of title 38, United States
28
Code; or
29
" (C) other financial assistance which--
30
(1) is for educational expenses, or
31
attributable to attendance at an educational
32
institution, and
33
(11) is exempt from income taxation by any
34
law of the United States (other than a gift,
019720.316
12
1
bequest, devise, or inheritance within the
2
meaning of section 102(a)).
3
: (e) Election. The election provided under subsection
4 (a) shall be made at such time and in such manner as the
5 Secretary shall by regulations prescribe.
6
(b) Disclosure of Information to Attorney General.-
7 Subsection (h) of section 6103 of such Code (relating to
8 disclosure to certain Federal officers and employees fcr tax
9 administration purposes) is amended by adding at the end
10 thereof the following new paragraph:
11
(6) Certain investigations and proceedings
12
regarding cacially discriminatory policies. Upon the
13
request of the Attorney General or the Secretary's CWD
14
motion, the Secretary shall disclose any return or return
15
information which is relevant to--
16
(A) any investigation conducted by the Attorney
17
General under section 44H (c) with regard to whether
18
an educational institution is following a racially
19
discriminatory policy (within the meaning of section
20
44H (c) (4)), or
21
'`(B) any proceeding which may be brought under
22
section 7408,
23
to any officer or employee of the Department of Justice
24
who is directly and personally involved in such
25
investigation or in preparation for such a proceeding
26
(c) Conforming Amendment.
27
(1) The table of sections for subpart A of part IV of
28
subchapter A of chapter 1 of such Code is amended by
29
inserting after the item relating to section 44G the
30
following:
''Sec. 44H. Tuition expenses.
31
(2) Section 6504 of such Code (relating to cross
32
references with respect to periods of limitation) is
33
amended by adding at the end thereof the following new
19720.316
13
1
paragraph:
(12) For disallowance of tuition tax credits
because of a declaratory judgment that a school
follows a racially discriminatory policy, see section
44H(c)
2 SEC. 4. DECLARATORY JUDGMENT PROCEEDING.
3
(a) In General. Subchapter A of chapter 76 of the
4 Internal Revenue Code of 1954 (relating to judicial
5 proceedings) is amended by redesignating section 7408 as
6 section 7409 and by inserting after section 7407 the
7 following new section:
8 "SEC. 7408. DECLARATORY JUDGMENT RELATING TO RACIALLY
9
DISCRIMINATORY POLICIES OF SCHOOLS.
10
: (a) In General. Upon filing of an appropriate pleading
11 by the Attorney General under subsection (b), the district
12 court of the United States for the district in which an
13 educational institution is located may make a declaration
14 with respect to whether such institution follows a racially
15 discriminatory policy. Any such declaration shall have the
16 force and effect of a final judgment of the district court
17 and shall be reviewable as such.
18
(b) Filing of Pleading.
19
(1) In general The Attorney General is authorized
20
and directed to seek a declaratory judgment under
21
subsection (a) against any educational institution upon--
22
(A) receipt by the Attorney General within the
23
previous 1-year period of any allegation of
24
discrimination against such institution, and
25
(B) a finding by the Attorney General of good
26
cause.
27
(2) Allegation of discrimination. For purposes of
28
this section, the term 'allegation of discrimination'
29
means an allegation made in writing by any person which
30
alleges with specificity that--
31
: (A) a named educational institution has
32
committed a racially discriminatory act against a
719720.316
14
1
named student applicant or student within one year
2
preceding the date on which such allegation is made
3
to the Attorney General, or
4
(B) the educational institution made a
5
statement, within one year preceding such date,
6
communicating an intent to follow a racially
7
discriminatory policy.
8
(3) Notice of allegations of discrimination. Upon
9
receipt of any allegation of discrimination made against
10
an educational institution, the Attorney General shall
11
promptly give written notice of such allegation to such
12
institution.
13
(4) Opportunity tc comment. Before any action may
14
be filed against an educational institution by the
15
Attorney General under subsection (a), the Attorney
16
General shall give the institution a fair opportunity to
17
comment on all allegations made against it and to show
18
that the alleged racially discriminatory policy does not
19
exist or has been abandoned.
20
''(5) Availability cf certain information to
21
complainant.
22
'`(A) In general.--If an allegation of
23
discrimination against an educational institution is
24
made to the Attorney General and the Attorney
25
General--
26
(i) declines to bring an action under
27
subsection (a) against such institution, or
28
''(11) enters into a settlement agreement
29
with such institution under subsection (d) before
30
such an action is brought,
31
the Attorney General shall make available to the
32
person who made such allegation the information upon
33
which the Attorney General based the decision not to
34
bring such an action or to enter into such settlement
019720.316
15
1
agreement. The Attorney General shal promptly give
2
written notice to such person that such information
3
is available for his inspection.
4
(B) Privacy laws.-Nothing in this paragraph
5
shall be construed to authorize the Attorney General
6
to disclose any information if such disclosure would than
applicable State or Federals
7
violate any law relating to privacy
(other
($ 6103)
)
8
(c) Requirements for a Finding of Following a Racially
9 Discriminatory Policy.- district court may declare that an
10 educational institution follows a racially discriminatory
11 policy in an action brought under subsection (a) only if the
12 Attorney General establishes in such action that--
13
''(1) the institution has, pursuant to such policy,
14
taken an action discriminating against a student
15
applicant or student within the two years preceding
16
commencement of such action;
17
''(2) the institution has, within the two years
18
preceding commencement of such action, made a statement
19
communicating an intent to follow a racially
20
discriminatory policy against student applicants or
21
students; or
22
''(3) the institution has engaged in a pattern of
23
conduct intended to implement a racially discriminatory
24
policy, and that some act in furtherance of this pattern
25
of conduct was committed within two years preceding
26
commencement of such action.
27
(d) Settlements.--
28
(1) In general.--Prior to, and in lieu of, filing
29
an action under subsection (a), the Attorney General may,
30
at his discretion, enter into a settlement agreement with
31
the educational institution against which an allegation
32
of discrimination has been made if the Attorney General
33
finds that the institution has been acting in good faith
34
and has abandoned its racially discriminatory policy.
019720.316
16
1
''(2) Violation of settlement agreement. If the
2
Attorney General has entered into a settlement agreement
3
with an educational institution under paragraph (1) and
4
the Attorney General finds that such institution is in
5
violation of such agreement, the Attornev General may--
6
''(A) notwithstanding subsection (b) (1) (A),
7
bring an action under subsection (a) without having
8
received any allegation of discrimination against
9
such institution, or
10
(B) bring an action to enforce the terms of
11
such agreement.
12
(3) Copy of settlement agreement to complainant.--
13
The Attorney General shall give a copy of any settlement
14
agreement which is entered into with any educational
15
institution under paragraph (1) to any person from whom
16
the Attorney General has received an allegation of
17
discrimination against such institution.
18
(e) Retention of Jurisdiction. Any district court
19 which makes a declaration under subsection (a) that an
20 educational institution follows a racially discriminatory
21 policy shall retain jurisdiction of such case.
22
(f) Discontinuance of Racially Discriminatory Policy.--
23
''(1) Motion.--
24
(A) In general.-At any time after the date
25
which is 1 year after the date on which a judgment is
26
entered in an action brought under subsection (a)
27
declaring that an educational institution follows a
28
racially discriminatory policy, such institution may
29
file with the district court a motion to modify such
30
judgment to include a declaration that such
31
institution no longer follows a racially
32
discriminatory policy.
33
: (B) Affidavits.--Any motion filed under
34
subparagraph (A) shall contain affidavits--
019720.316
17
1
" (1) describing with specificity the ways in
abandoned
2
which the educational institution has changed its
3
previous racially discriminatory policy;
4
(ii) describing with specificity the ways
5
in which such institution has taken reasonable
6
steps to communicate its policy of
7
nondiscrimination to students, to faculty, to
8
school administrators, and to the public in the
9
area it serves;
10
(111) averring that such institution has
11
not discriminated against an applicant or student
12
pursuant to a racially discriminatory policy
13
during the preceding year; and
14
'(iv) averring that such institution has
15
complied with the requirements of section 44H (d)
16
(3) (D).
17
(2) Order. If a motion is made under paragraph
18
(1), the district court shall issue an order modifying
19
the judgment entered in the action to include a
20
declaration that the educational institution no longer
21
follows a discriminatory policy unless the Attorney
22
General establishes that--
23
''(A) the institution has not in fact stopped
24
following its previous discriminatory policy;
25
''(B) the institution has committed a racially
26
discriminatory act against an applicant or student
27
within the preceding year;
28
: (C) the institution has made statements within
29
the preceding year communicating an intent to follow
30
a racially discriminatory policy; or
31
(D) the institution has not, in fact, complied
32
with the requirements of clauses (11) and (iv) of
33
paragraph (1) (B).
34
: (3) Appeal of orders.--Any order of the district
019720.316
18
1
court granting or denying a motion made under paragraph
2
(1) shall be reviewable.
3
(g) Attorneys' Fees. If an educational institution
4 prevails in an action under this section, the court may award
5 the institution costs and reasonable attorneys' fees in such
6 action.
7
(h) Definitions. For purposes of this section--
8
(1) Racially discriminatory policy. The term
9
'racially discriminatory policy' has the meaning given to
10
such term by section 44H (c) (4).
11
''(2) Bacially discriminatory act.--
12
'`(A) In general.- An educational institution
13
commits a racially discriminatory act if such
14
institution refuses, on the basis of race, to--
15
(i) admit any applicant as a student;
16
'(11) admit any student to the rights,
17
privileges, programs, and activities generally
18
made available to students by the educational
19
institution; or
20
''(111) allow any student to participate in
21
its scholarship, loan, athletic, or other
22
programs.
23
''(B) Quotas, etc.--The term 'racially
24
discriminatory act' shall not include the failure of
25
such institution to pursue or achieve any racial
26
quota, proportion, or representation in the student
27
body.
28
(C) Race.--The term 'race' shall include color
29
or national origin.
30
(i) Report. Within 90 days of the close of each
31 calendar year, the Attorney General shall submit a report to
32 the Congress concerning the disposition during such calendar
33 year of--
34
''(1) any allegations of discrimination received by
019720.316
19
1
the Attorney General, and
2
(2) any actions brought under this section.
3
(b) Conforming Amendment. The table of sections for
4 subchapter A of chapter 76 of such Code (relating to civil
5 actions by the United States) is amended by striking out the
6 item relating to section 7408 and inserting in lieu thereof:
"Sec. 7408. Declaratory judgment relating to
racially discriminatory policies of
schools.
"Sec. 7409. cross references.
7 SEC. 5. TAX CREDITS ARE NOT FEDERAL FINANCIAL ASSISTANCE.
8
Tax credits claimed under section 44H of the Internal
9 Revenue Code of 1954 shall not constitute Federal financial
10 assistance to educational institutions or to the recipients
11 of such credits.
12 SEC. 6. EFFECTIVE DATE; SPECIAL RULE.
13
(a) Certification Required. The amendments made by this
14 Act shall not take effect until the Attorney General
15 certifies to the Secretary of the Treasury that, pursuant
16 to--
of Congress
17
(1) an Act joint resolution which has been
18
enacted, or
19
(2) a final decision of the United States Supreme
20
court,
21 the Internal Revenue Code of 1954 prohibits the granting of
22 tax exemption under section 501 (a) by reason of section 501
23 (c) (3) to private educational institutions maintaining a
24 racially discriminatory policy or practice as to students.
25
(b) Application When Certification is Made
25
(1) In general. If the certification described in
27
subsection (a) is made to the Secretary of the Treasury--
28
(A) except as provided in paragraph (2), the
29
amendments made by section 3 shall apply with respect
30
to expenditures made after the date on which such
31
certification is made to the Secretary of the
32
Treasury in taxable years beginning after December
19720.316
20
1
31, 1982, and ending after such date, and
2
(B) the amendments made by section 4 shall take
3
effect on the date on which such certification is
4
made to the Secretary of the Treasury.
5
(2) NO application before July 31, 1982.-In nc event
6
shall the amendments made by section 3 apply with respect
7
to expenditures made before August 1, 1982.
8
(c) Estimated Income Tax and Wage Withholding.--
9
(1) Estimated income tax. Any credit allowable to
10
any taxpayer under section 44H of the Internal Revenue
11
Code of 1954 shall not be taken into account under
12
section 6015 (d) in determining the estimated tax cf such
13
taxpayer for any taxable year beginning before January 1,
14
1984.
15
(2) Wage withholding. Any credit allowable under
16
section 44H of such Code shall not be taken into account
17
in determining the number of withholding exemptions to
18
which any taxpayer is entitled under section 3402 of such
19
Code with respect to remuneration paid before January 1.
20
1984.
Amend the title to read as follows: To amend the Internal
Revenue Code of 1954 tc provide a Federal income tax credit
for tuition.
Passed the House of Representatives October 6, 1981.
Attest:
EDMUND L. HENSHAW, JR.,
Clerk.
& 19720.317
1 if--
2
(1) an order (cther than an order described in
3
section 7488 (f) (2)) is entered in such action which
4
reverses, vacates, remands, or modifies such original
5
judgment,
6
(2) any modification of the original judgment made by
7
reason of the order oescribed in paragraph (1) negates
8
the declaration that such school follows a discriminatory
9
policy,
12
(3) any judgment subsequently entered in such action
11
by reason of an order described in paracraph (1) negates
12
such declaration, and
13
(4) the order described in paragrarh (1) and any
14
judgment described in paracraph (2) or (3) is final and
15
no longer appealable.
filed 9/23
019720.322
Calendar No.
97th CONGRESS
2d Session
H.R. 1635
[Report No. 97- 1
IN THE SENATE OF THE UNITED STATES
October 7, 1981
Read twice and referred to the Committee on Finance
September
(legislative day,
", 1982
Reported by Mr. Dole, with an amendment to the text and an
amendment to the title
[Strike out all after the enacting clause and insert the part
printed in italic]
AN ACT
For the relief of the Jefferson County Mental Health Center,
Incorporated, and of certain current and former employees
thereof.
1
Be it enacted by the Senate and House of Representatives
2 of the United States of America in Congress assembled, That
3 the-Seeretary-of-the-freasury-is-authortzed-and-dipeeted-te
4 payz-eut-ef-any-neney-in-the-Treasury-net-etherwise
5 appreprtated,-te-the-Jeffersen-feunty-Heneat-Heatth-eenterz
6 Ineorperated,-the-sum-ef-$50008-tn-fuft-setttement-ef-att
7 etatms-ef-the-eenter-against-the-tnited-States-fer-repayment
8 ef-amounts-the-eenter-erroneeusty-refunded-te-its-employees
9 fer-seetat-seeurtty-eontrtbuttens-in-th=-peried-after
10 December-34,-4974-and-ptter-te-May-447-49757-pdfsdant-te
11 instpuctions-by-the-Internat-Revenue-Servtee
12
See---Ne-part-of-the-ameunt-appeepttated-in-the-tet-in
13 exeess-ef-40-per-eentum-shatt-be-patd--dettvered-te7-or
14 reeetved-by-any-agent-er-atterney-en-aeseunt-ef-seevtees
019720.322
2
1
readered-in-eenneetten-wtth-this-etatm-and-the-same-shatt-be
2 ualawful,-any-eentraet-to-the-eenteary-netwtthstandtng--An
3 persen-viotating-the-ppovistons-ef-this-seetten-shatt-be
4 eemed-gufley-of-a-misdemeaner-and;-upon-eonvtetien-thereef
5 be-fined-any-sum-net-exeeeding-4,000
6 SECTION 1. SHORT TITLE.
7
This Act may be cited as the ''Educational Opportunity
ITALIC
8 and Equity Act of 1982''.
9 SEC. 2. CONGRESSIONAL FINDINGS AND PURPOSES.
10
(a) Findings. The Congress finds that it is the policy
11 of the United States to foster educational opportunity,
12 diversity, and choice for all Americans. Therefore, this Act
13 recognizes that--
14
(1) pluralism is one of the great strengths of
15
American society, diversity in education is an important
16
contributor to that pluralism, and nonpublic schools play
17
an indispensable role in making that diversity possible;
18
(2) the existence and availability of alternatives to
19
public education tend to strengthen public education
20
through competition and to improve the educational
21
opportunities of all Americans;
22
(3) Americans should have equal opportunities to
23
choose between the education offered by public schools
24
and available in private educational systems and should
25
not be compelled because of economic circumstances to
26
accept education provided by government-created and
27
government-operated school systems, and to force such a
28
selection is an unfair and unjust discrimination against
29
persons of lesser means;
30
(4) increasing numbers of American families are
31
unable to afford nonpublic school tuition in addition to
32
the State and local taxes that go to support public
33
schools, and tax relief for nonpublic school tuition
34
expenses is necessary if American families are to
ITALIC
019720.322
ITALIC
3
1
continue to have a meaningful choice between public and
2
private education at the elementary and secondary levels;
3
(5) tax relief in the form of tuition tax credits is
4
the fairest way to extend a choice in education to a wide
5
range of individuals, tax relief in the form of tuition
6
tax credits creates the least possible danger of
7
interference in the lives of individuals and families
8
consistent with achieving these ends, and tax relief in
9
the form of tuition tax credits achieves these ends with
10
a minimum of complexity SO that those for whom the tax
11
relief is intended will be able to understand and take
12
advantage of it;
13
(6) the tax revenue loss occasioned by a tuition tax
14
credit for a child would be small compared to the cost to
15
State and local taxpayers of educating the child at a
16
public school; and
17
(7) equality of educational opportunity is the policy
18
of the United States, and the tax relief afforded by this
19
legislation should not be used to promote racial
20
discrimination.
21 The Congress finds that this Act will expand opportunities
22 for personal liberty, diversity, and pluralism that
23 constitute important strengths of education in America.
24
(b) Purpose.-The primary purpose of this Act is to
25 enhance equality of educational opportunity, diversity, and
26 choice for Americans.
27 SEC. 3. CREDIT FOR TUITION EXPENSES.
28
(a) In General. Subpart A of part IV of subchapter A of
29 chapter 1 of the Internal Revenue Code of 1954 (relating to
30 credits allowable) is amended by inserting after section 44G
31 the following new section:
32 '`SEC. 44H. CREDIT FOR TUITION EXPENSES.
33
: (a) General Rule. At the election of an individual,
34 there shall be allowed as a credit against the tax imposed by
ITALIC
019720.322
ITALIC
4
1 this chapter for the taxable year an amount equal to 50
2 percent of the qualified tuition expenses paid by such
3 individual during the taxable year for any qualified
4 dependent.
5
(b) Limitations.--
6
(1) Maximum dollar amount per qualified
7
dependent.
8
(A) In general. The amount of the credit
9
allowable to the taxpayer under subsection (a) with
10
respect to any qualified dependent for any taxable
11
year shall not exceed the applicable amount.
12
(B) Applicable amount.--For purposes of this
13
paragraph, the term 'applicable amount' means the
14
excess, if any, of--
15
(1) $300, over
16
''(11) 3 percent (6 percent in the case of a
17
married individual who does not file a joint
18
return) of the amount, if any, by which the
19
adjusted gross income of the taxpayer for the
20
taxable year exceeds $40,000 ($20,000 in the case
21
of such married individual).
22
(C) Transitional rule.--For taxable years
23
beginning after December 31, 1982, and before January
24
1, 1985, subparagraph (B) shall be applied--
25
: (1) in taxable years beginning in 1983, by
26
substituting--
27
(I) '$100' for '$300',
28
(II) '1 percent' for '3 percent', and
29
(III) '2 percent' for '6 percent', and
30
(11) in taxable years beginning in 1984, by
31
substituting--
32
(I) '$200' for '$300',
33
(II) '2 percent' for '3 percent' , and
34
(III) '4 percent' for '6 percent'.
ITALIC
ITALIC
019720.322
5
1
"
(2) Credit not to exceed tax liability. The credit
2
allowed by subsection (a) shall not exceed the tax
3
imposed by this chapter for the taxable year, reduced by
4
the sum of the credits allowable under a section of this
5
subpart having a lower number or letter designation than
6
this section, other than credits allowable by sections
7
31, 39, and 43.
8
:. (c) Credit Denied for Amounts Paid to Racially
9 Discriminatory Institutions.
10
: (1) Declaratory judgment entered.
11
: (A) In general No credit shall be allowed
12
under this section for any amount paid to an
13
educational institution during any taxable year if--
14
: (1) within the calendar year ending with or
15
within such taxable year or in any preceding
16
calendar year-
17
(I) a judgment has been entered by a
18
district court of the United States under
19
section 7408 (regardless of whether such
20
judgment is appealed) declaring that such
21
educational institution follows a racially
22
discriminatory policy, or
23
: (II) an order by any United States
24
Court of Appeals has been made which, by its
25
terms, requires the district court to enter
26
such a judgment, and
27
" (ii) no order described in section 7408 (f)
28
(2) with respect to such educational institution
29
has been entered which is in effect for the
30
calendar year ending with or within such taxable
31
year.
32
(B) Reversals of declaratory judgments or
33
orders
34
" (1) In general. --A judgment or order
ITALIC
019720.322
ITALIC
6
1
described in subparagraph (A) (1) entered in an
2
action brought with respect to an educational
3
institution shall not be taken into account under
4
subparagraph (A) for any taxable year if, after
5
all appeals in such action have been concluded or
6
the time for filing such appeals has expired, the
7
declaration contained in such judgment, or
8
required to be entered under the terms of such
9
order, that such institution has followed a
10
racially discriminatory policy is negated (other
11
than by reason of an order described in section
12
7408 (f) (2)).
13
(11) Waiver of limitations.--
14
Notwithstanding section 6511 (a) or any other
15
period of limitation or lapse of time, a claim
16
for credit or refund of overpayment of the tax
17
imposed by this chapter which arises by reason of
18
this subparagraph may be filed by any person at
19
any time within the 1-year period beginning on
20
the earlier of--
21
(I) the date on which all appeals with
22
respect to the judgment or order described in
23
subparagraph (A) (1) have been concluded, or
24
(II) the date on which the time for
25
such appeals has expired.
26
Sections 6511 (b) and 6514 shall not apply to any
27
claim for credit or refund filed under this
28
subparagraph within such 1-year period.
29
: (C) Stay of declaratory judgment.-
30
(1) In general. Any judgment or order
31
described in subparagraph (A) (1) shall not be
32
taken into account under subparagraph (A) for any
33
taxable year if such judgment or order is stayed
34
as of the close of such taxable year.
ITALIC
019720.322
ITALIC
7
1
(ii) Removal of stay. If a stay entered
2
against a judgment or order described in
3
subparagraph (A) (1) is vacated--
4
(I) this subparagraph shall not apply
5
with respect to such judgment or order for
6
any taxable year preceding the taxable year
7
in which such stay is vacated, and
8
(II) notwithstanding any other
9
provision of this title or of any other law,
10
the statutory period for the assessment of a
11
deficiency attributable to the disallowance
12
of any credit under this section by reason of
13
this clause shall not expire before the date
14
which is 3 years after the close of the
15
calendar year in which such stay is removed.
16
" (D) Waiver of limitations if institution ceases
17
to discriminate. Notwithstanding section 6511 (a) or
18
any other period of limitation or lapse of time, a
19
claim for credit or refund of overpayment of the tax
20
imposed by this chapter which arises by reason of a
21
reversal of any order denying a motion under section
22
7408 (f) (1) (A) may be filed by any person at any
23
time within the 1-year period beginning on the date
24
on which such reversal is made. Sections 6511 (B) and
25
6514 shall not apply to any claim for credit or
26
refund filed under this subparagraph within such 1-
27
year period.
28
: (2) Required statements.
29
: (A) Statements furnished by institutions to the
30
Secretary. No credit shall be allowed under
31
subsection (a) for amounts paid to any educational
32
institution during the taxable year if such
33
educational institution has not filed with the
34
Secretary (in such manner and form as the Secretary
ITALIC
ITALIC
019720.322
8
1
shall by regulation prescribe) within 30 days after
2
the close of the calendar year ending with or within
3
such taxable year a verified statement which--
4
" (1) declares that such institution has not
5
followed a racially discriminatory policy during
6
such calendar year;
7
: (11) indicates whether--
8
(I) a declaratory judgment or order
9
described in paragraph (1) (A) (1) has been
10
entered against such institution in an action
11
brought under section 7408;
12
: (II) a stay against such judgment or
13
order is in effect; and
14
(III) an order described in section
15
7408 (f) (2) is in effect; and
16
(111) attests that such institution has
17
complied with the requirements of subsection (d)
18
(3) (D) during such calendar year.
19
.. (B) Statements furnished to taxpayers. Except
20
as otherwise provided by regulations, within 30 days
21
after the close of the calendar year to which the
22
statement described in subparagraph (A) relates, the
23
educational institution shall furnish a copy of such
24
statement to all persons who paid tuition expenses to
25
the institution in the calendar year to which such
26
statement relates.
27
(C) Statements furnished by taxpayers to the
28
Secretary. No credit shall be allowed to a taxpayer
29
under subsection (a) for amounts paid to an
30
educational institution during the taxable year if
31
the taxpayer does not attach to the return on which
32
the taxpayer claims the credit the statement
33
described in subparagraph (A) which is furnished by
34
such institution for the calendar year ending with or
ITALIC
ITALIC
019720.322
9
1
within such taxable year of the taxpayer.
2
: (3) Enforcement responsibility. The Attorney
3
General shall have exclusive authority under this
4
subsection to investigate and to determine whether an
5
educational institution is following a racially
6
discriminatory policy.
7
(4) Racially discriminatory policy. For purposes
8
of this subsection--
9
(A) In general. An educational institution
10
follows a racially discriminatory policy if such
11
institution refuses, on the basis of race, to--
12
(1) admit applicants as students;
13
(11) admit students to the rights,
14
privileges, programs, and activities generally
15
made available to students by the educational
16
institution; or
17
(111) allow students to participate in its
18
scholarship, loan, athletic, or other programs.
19
(B) Quotas, etc.--The term 'racially
20
discriminatory policy' shall not include failure of
21
any educational institution to pursue or achieve any
22
racial quota, proportion, or representation in the
23
student body.
24
: (C) Race.--The term 'race' shall include color
25
or national origin.
26
" (d) Definitions. For purposes of this section--
27
(1) Qualified tuition expenses. The term
28
'qualified tuition expenses' means the excess of--
29
(A) the amount of tuition expenses paid by the
30
taxpayer during the taxable year to any eligible
31
educational institution for any qualified dependent
32
of such taxpayer, over
33
(B) any scholarship or financial assistance
34
paid during such taxable year to such qualified
ITALIC
019720.322
ITALIC
10
1
dependent or to the taxpayer with respect to such
2
qualified dependent.
3
(2) Qualified dependent. The term 'qualified
4
dependent' means any individual--
5
(A) who is a dependent of the taxpayer (other
6
than an individual described in paragraph (4), (5),
7
(7), or (8) of section 152 (a)),
8
: (B) who has not attained 20 years of age at the
9
close of the taxable year, and
10
(C) with respect to whom a deduction under
11
section 151 is allowable to the taxpayer for the
12
taxable year.
13
(3) Eligible educational institution. The term
14
'eligible educational institution' means an educational
15
institution--
16
(A) which provides a full-time program of
17
elementary or secondary education;
18
(B) which is a privately operated, not-for-
19
profit, day or residential school;
20
(C) which is exempt from taxation under section
21
501(a) as an organization described in section
22
501(c) (3), including church-operated schools to which
23
subsections (a) and (b) of section 508 do not apply;
24
(D) which includes in any published by-laws,
25
advertisements, admission application forms and other
26
such published materials, a statement (in such form
27
and manner as the Secretary may by regulations
28
prescribe) that it does not discriminate against
29
student applicants or students on the basis of race;
30
(E) which does not have an admissions policy
31
that discriminates against handicapped children; and
32
(F) attendance at which satisfies the
33
requirements of any law of the State in which--
34
''(1) such institution is located, or
ITALIC
ITALIC
019720.322
11
1
: (11) the qualified dependent of the
2
taxpayer resides,
3
which requires children to attend school.
4
: (4) Admissions policy which discriminates against
5
handicapped children.--
6
(A) In general. An educational institution has
7
an admissions policy which discriminates against
8
handicapped children if such institution refuses to
9
admit otherwise qualified applicants solely on the
10
basis of their handicap.
11
" (B) Inability to meet special needs.--An
12
educational institution which denies admission to any
13
handicapped child shall not be treated as having an
14
admissions policy which discriminates against
15
handicapped children if such admission is denied
16
because such institution does not have the special
17
facilities or programs or specially qualified
18
personnel to accommodate such handicapped child.
19
" (C) Handicapped children. The term
20
'handicapped children' has the same meaning given
21
such term by section 602 (1) of the Education of the
22
Handicapped Act (20 U.S.C. 1401).
23
: (5) Tuition expenses.--
24
''(A) In general. The term 'tuition expenses'
25
means tuition and fees paid for the full-time
26
enrollment or attendance of a student at an
27
educational institution, including required fees for
28
courses.
29
: (B) Certain expenses excluded. The term
30
'tuition expenses' does not include any amount paid
31
for--
32
.. (1) books, supplies, and equipment for
33
courses of instruction;
34
" (11) meals, lodging, transportation, or
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personal living expenses;
2
(111) education below the first-grade
3
level; or
4
(iv) education above the twelfth-grade
5
level.
6
(6) Scholarship or financial assistance.- The term
7
'scholarship or financial assistance' means--
8
(A) a scholarship or fellowship grant (within
9
the meaning of section 117(a)(1)) which is not
10
includible in gross income under section 117;
11
(B) an educational assistance allowance under
12
chapter 32, 34, or 35 of title 38, United States
13
Code; or
14
(C) other financial assistance which--
15
(1) is for educational expenses, or
16
attributable to attendance at an educational
17
institution, and
18
(11) is exempt from income taxation by any
19
law of the United States (other than a gift,
20
bequest, devise, or inheritance within the
21
meaning of section 102(a)).
22
: (e) Election. The election provided under subsection
23 (a) shall be made at such time and in such manner as the
24 Secretary shall by regulations prescribe.
25
(b) Disclosure of Information to Attorney General.--
26 Subsection (h) of section 6103 of such Code (relating to
27 disclosure to certain Federal officers and employees for tax
28 administration purposes) is amended by adding at the end
29 thereof the following new paragraph:
30
(6) Certain investigations and proceedings
31
regarding racially discriminatory policies. Upon the
32
request of the Attorney General or the Secretary's own
33
motion, the Secretary shall disclose any return or return
34
information which is relevant to--
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1
: (A) any investigation conducted by the Attorney
2
General under section 44H (c) with regard to whether
3
an educational institution is following a racially
4
discriminatory policy (within the meaning of section
5
44H (c) (4)), or
6
(B) any proceeding which may be brought under
7
section 7408,
8
to any officer or employee of the Department of Justice
9
who is directly and personally involved in such
10
investigation or in preparation for such a proceeding.
11
(c) Conforming Amendment.
12
(1) The table of sections for subpart A of part IV of
13
subchapter A of chapter 1 of such Code is amended by
14
inserting after the item relating to section 44G the
15
following:
''Sec. 44H. Tuition expenses.
16
(2) Section 6504 of such Code (relating to cross
17
references with respect to periods of limitation) is
18
amended by adding at the end thereof the following new
19
paragraph:
(12) For disallowance of tuition tax credits
because of a declaratory judgment that a school
follows a racially discriminatory policy, see section
44H(c)
20 SEC. 4. DECLARATORY JUDGMENT PROCEEDING.
21
(a) In General. Subchapter A of chapter 76 of the
22 Internal Revenue Code of 1954 (relating to judicial
23 proceedings) is amended by redesignating section 7408 as
24 section 7409 and by inserting after section 7407 the
25 following new section:
26 ''SEC. 7408. DECLARATORY JUDGMENT RELATING TO RACIALLY
27
DISCRIMINATORY POLICIES OF SCHOOLS.
28
(a) In General. Upon filing of an appropriate pleading
29 by the Attorney General under subsection (b), the district
30 court of the United States for the district in which an
31 educational institution is located may make a declaration
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1 with respect to whether such institution follows a racially
2 discriminatory policy. Any such declaration shall have the
3 force and effect of a final judgment of the district court
4 and shall be reviewable as such.
5
(b) Filing of Pleading.
6
(1) In general. The Attorney General is authorized
7
and directed to seek a declaratory judgment under
8
subsection (a) against any educational institution upon--
9
: (A) receipt by the Attorney General within the
10
previous 1-year period of any allegation of
11
discrimination against such institution, and
12
(B) a finding by the Attorney General of good
13
cause.
14
" (2) Allegation of discrimination.- For purposes of
15
this section, the term 'allegation of discrimination'
16
means an allegation made in writing by any person which
17
alleges with specificity that--
18
(A) a named educational institution has
19
committed a racially discriminatory act against a
20
named student applicant or student within one year
21
preceding the date on which such allegation is made
22
to the Attorney General, or
23
: (B) the educational institution made a
24
communication, within one year preceding such date,
25
expressing that the institution follows a racially
26
discriminatory policy.
27
(3) Notice of allegations of discrimination. Upon
28
receipt of any allegation of discrimination made against
29
an educational institution, the Attorney General shall
30
promptly give written notice of such allegation to such
31
institution.
32
(4) Opportunity to comment. Before any action may
33
be filed against an educational institution by the
34
Attorney General under subsection (a), the Attorney
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1
General shall give the institution a fair opportunity to
2
comment on all allegations made against it and to show
3
that the alleged racially discriminatory policy does not
4
exist or has been abandoned.
5
(5) Availability of certain information to
6
complainant.
7
(A) In general. If an allegation of
8
discrimination against an educational institution is
9
made to the Attorney General and the Attorney
10
General--
11
(1) declines to bring an action under
12
subsection (a) against such institution, or
13
(11) enters into a settlement agreement
14
with such institution under subsection (d) before
15
such an action is brought,
16
the Attorney General shall make available to the
17
person who made such allegation the information upon
18
which the Attorney General based the decision not to
19
bring such an action or to enter into such settlement
20
agreement. The Attorney General shall promptly give
21
written notice to such person that such information
22
is available for his inspection.
23
: (B) Privacy laws. Nothing in this paragraph
24
shall be construed to authorize or require the
25
Attorney General to disclose any information if such
26
disclosure would violate any applicable State or
27
Federal law relating to privacy.
28
:. (c) Requirements for a Finding of Following a Racially
29 Discriminatory Policy.- district court may declare that an
30 educational institution follows a racially discriminatory
31 policy in an action brought under subsection (a) only if the
32 Attorney General establishes in such action that--
33
(1) the institution has, pursuant to such policy,
34
committed a racially discriminatory act against a student
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1
applicant or student within the two years preceding
2
commencement of such action;
3
(2) the institution has, within the two years
4
preceding commencement of such action, made a
5
communication expressing that it follows a racially
6
discriminatory policy against student applicants or
7
students; or
8
: (3) the institution has engaged in a pattern of
9
conduct intended to implement a racially discriminatory
10
policy, and that some act in furtherance of this pattern
11
of conduct was committed within two years preceding
12
commencement of such action.
13
: (d) Settlements.
14
(1) In general. Prior to, and in lieu of, filing
15
an action under subsection (a), the Attorney General may,
16
at his discretion, enter into a settlement agreement with
17
the educational institution against which an allegation
18
of discrimination has been made if the Attorney General
19
finds that the institution has been acting in good faith
20
and has abandoned its racially discriminatory policy.
21
(2) Violation of settlement agreement. If the
22
Attorney General has entered into a settlement agreement
23
with an educational institution under paragraph (1) and
24
the Attorney General finds that such institution is in
25
violation of such agreement, the Attorney General may--
26
" (A) notwithstanding subsection (b) (1) (A),
27
bring an action under subsection (a) without having
28
received any allegation of discrimination against
29
such institution, or
30
.. (B) bring an action to enforce the terms of
31
such agreement.
32
: (3) Copy of settlement agreement to complainant.--
33
The Attorney General shall give a copy of any settlement
34
agreement which is entered into with any educational
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1
institution under paragraph (1) to any person from whom
2
the Attorney General has received an allegation of
3
discrimination against such institution.
4
(e) Retention of Jurisdiction.- Any district court
5 which makes a declaration under subsection (a) that an
6 educational institution follows a racially discriminatory
7 policy shall retain jurisdiction of such case.
8
(f) Discontinuance of Racially Discriminatory Policy.--
9
" (1) Motion.
10
(A) In general. At any time after the date
11
which is 1 year after the date on which a judgment is
12
entered in an action brought under subsection (a)
13
declaring that an educational institution follows a
14
racially discriminatory policy, such institution may
15
file with the district court a motion to modify such
16
judgment to include a declaration that such
17
institution no longer follows a racially
18
discriminatory policy.
19
(B) Affidavits.- Any motion filed under
20
subparagraph (A) shall contain affidavits--
21
: (1) describing with specificity the ways in
22
which the educational institution has abandoned
23
its previous racially discriminatory policy;
24
: (11) describing with specificity the ways
25
in which such institution has taken reasonable
26
steps to communicate its policy of
27
nondiscrimination to students, to faculty, to
28
school administrators, and to the public in the
29
area it serves;
30
(111) averring that such institution has
31
not, during the preceding year--
32
(I) committed a racially discriminatory
33
act against a student applicant or student
34
pursuant to a racially discriminatory policy,
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18
1
: (II) made a communication expressing
2
that it follows a racially discriminatory
3
policy against student applicants or
4
students; or
5
(III) engaged in a pattern of conduct
6
intended to implement a caciamnitted
7
discriminatory policy, and that some act in
8
furtherance of this pattern of conduct: has
9
been committed during the preceding year and
10
: (iv) averring that such institution has
11
complied with the requirements of section 44H (d)
12
(3) (D).
13
" (2) Order. If a motion is made under paragraph
14
(1), the district court shall issue an order modifying
15
the judgment entered in the action to include a
16
declaration that the educational institution no longer
17
follows a racially discriminatory policy unless the
18
Attorney General establishes that--
19
" (A) any affidavit provided by the institution
20
under paragraph (1) (B) is false;
21
(B) the institution has, during the preceding
22
year, committed any act, made any communication, or
23
engaged in any pattern of conduct described in
24
paragraph (1) (B) (111); or
25
(C) the institution has not, in fact, complied
26
with the requirements of clauses (11) and (iv) of
27
paragraph (1) (B).
28
: (3) Appeal of orders. Any order of the district
29
court granting or denying a motion made under paragraph
30
(1) shall be reviewable.
31
''(g) Attorneys' Fees. If an educational institution
32 prevails in an action under this section, the court may award
33 the institution costs and reasonable attorneys' fees in such
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19
1 action.
2
" (h) Definitions. For purposes of this section--
3
: (1) Racially discriminatory policy. The term
4
'racially discriminatory policy' has the meaning given to
5
such term by section 44H (c) (4).
6
(2) Racially discriminatory act.--
7
: (A) In general. An educational institution
8
commits a racially discriminatory act if such
9
institution refuses, on the basis of race, to--
10
: (i) admit any applicant as a student;
11
" (ii) admit any student to the rights,
12
privileges, programs, and activities generally
13
made available to students by the educational
14
institution; or
15
: (iii) allow any student to participate in
16
its scholarship, loan, athletic, or other
17
programs.
18
: (B) Quotas, etc.--The term 'racially
19
discriminatory act' shall not include the failure of
20
such institution to pursue or achieve any racial
21
quota, proportion, or representation in the student
22
body.
23
: (C) Race. The term 'race' shall include color
24
or national origin.
25
: (i) Report. Within 90 days of the close of each
26 calendar year, the Attorney General shall submit a report to
27 the Congress concerning the disposition during such calendar
28 year of--
29
: (1) any allegations of discrimination received by
30
the Attorney General, and
31
" (2) any actions brought under this section.
32
(b) Conforming Amendments.
33
(1) The table of sections for subchapter A of chapter
34
76 of such Code (relating to civil actions by the United
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1
States) is amended by striking out the item relating to
2
section 7408 and inserting in lieu thereof:
''Sec. 7408. Declaratory judgment relating to
racially discriminatory policies of
schools.
''Sec. 7409. Cross references.
3
(2) Section 2201 of title 28, United States Code
4
(relating to creation of declaratory judgment remedy) is
5
amended by striking out 'section 7428'' and inserting in
6
lieu thereof ''section 7408 or 7428
7 SEC. 5. TAX CREDITS ARE NOT FEDERAL FINANCIAL ASSISTANCE.
8
Tax credits claimed under section 44H of the Internal
9 Revenue Code of 1954 shall not constitute Federal financial
10 assistance to educational institutions or to the recipients
11 of such credits.
12 SEC. 6. EFFECTIVE DATE; SPECIAL RULE.
13
(a) Certification Required. The amendments made by this
14 Act shall not take effect until the Attorney General
15 certifies to the Secretary of the Treasury that, pursuant
16 to--
17
(1) an Act of Congress which has been enacted, or
18
(2) a final decision of the United States Supreme
19
Court,
20 the Internal Revenue Code of 1954 prohibits the granting of
21 tax exemption under section 501 (a) by reason of section 501
22 (c) (3) to private educational institutions maintaining a
23 racially discriminatory policy or practice as to students.
24
(b) Application When Certification is Made.
25
(1) In general. If the certification described in
26
subsection (a) is made to the Secretary of the Treasury--
27
(A) except as provided in paragraph (2), the
28
amendments made by section 3 shall apply with respect
29
to expenditures made after the date on which such
30
certification is made to the Secretary of the
31
Treasury in taxable years beginning after December
32
31, 1982, and ending after such date, and
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019720.322
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1
(B) the amendments made by section 4 shall take
2
effect on the date on which such certification is
3
made to the Secretary of the Treasury.
4
(2) NO application before July 31, 1983. In no event
5
shall the amendments made by section 3 apply with respect
6
to expenditures made before August 1, 1983.
7
(c) Estimated Income Tax and Wage Withholding.-
8
(1) Estimated income tax. Any credit allowable to
9
any taxpayer under section 44H of the Internal Revenue
10
Code of 1954 shall not be taken into account under
11
section 6015 (d) in determining the estimated tax of such
12
taxpayer for any taxable year beginning before January 1,
13
1984.
14
(2) Wage withholding. Any credit allowable under
15
section 44H of such Code shall not be taken into account
16
in determining the number of withholding exemptions to
17
which any taxpayer is entitled under section 3402 of such
18
Code with respect to remuneration paid before January 1,
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19
1984.
Amend the title to read as follows: To amend the Internal
Revenue Code of 1954 to provide a Federal income tax credit
for tuition.
Passed the House of Representatives October 6, 1981.
Attest:
EDMUND L. HENSHAW, JR.,
Clerk.