H.R. 1197 — Introduced in House

I 113th CONGRESS 1st Session H. R. 1197 IN THE HOUSE OF REPRESENTATIVES March 14, 2013 Mr. Ross introduced the following bill; which was referred to the Committee on Ways and Means A BILL To waive the arbitrage rules for certain bonds issued in 1990 and partially defeased in 1996. 1. Waiver of arbitrage rules for certain bonds (a) In general Section 148 of the Internal Revenue Code of 1986 shall not apply to an issue of bonds that were partially defeased, described in subsection (b), if— (1) such bonds are redeemed by the governmental unit that issued them within 90 days of the sale of the escrow securities, and (2) any net profit remaining after the proceeds of the sale of the escrow securities have been applied to such redemption is used by the issuer for an essential governmental function within twelve months of such redemption. (b) Bonds described Bonds described in this subsection are bonds issued on January 4, 1990, that were partially defeased on July 19, 1996, with revenues of a municipally owned electric and water system.