,i #aafth ,,congress #b;d ,session ,h4 ,r4 #gdgg ,,in ,,the ,,house ,,of ,,representatives ,july #a1 #bjbj ,mrs4 ,watson ,coleman 7for herself and ,ms4 ,omar7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means1 and in addition to the ,committee on ,education and ,labor1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to require the ,secretary of ,labor to establish a program to provide grants for job guarantee programs4 #a4 ,short title ,this ,act may be cited as the ,workforce ,promotion and ,access ,act or the ,,wpa ,act4 #b4 ,job guarantee grant program 7a7 ,definitions ,in this section3 7#a7 ,eligible entity ,the term eligible entity means an entity that is a political subdivision of a ,state1 ,tribal entity1 outlying area1 or a combination of contiguous political subdivisions or ,tribal entities that-- 7,a7 has an unemployment rate that is equal to the lower of #aj or #ajj percent of the national unemployment rate1 as determined by the ,bureau of ,labor ,statistics 7except in the case of ,tribal entities which may submit their own employment data where no such ,federal data is available for such entities7 based on the most recent data available at the time the ,secretary solicits applications for grants under this section2 and 7,b7 submits an application in accordance with subsection 7e74 7#b7 ,job guarantee program ,the term job guarantee program means a program that meets the requirements of subsection 7c74 7#c7 ,rural area ,the term rural area means an area that is located outside of an urban area4 7#d7 ,tribal entity ,the term ,tribal entity means an ,indian tribe or tribal organization as such terms are defined in section #d of the ,indian ,self-,determination ,act 7#be ,u4,s4,c4 #ecjd74 7#e7 ,urban area ,the term urban area means an urbanized area 7a region of #ej1jjj or more residents7 and an urbanized cluster 7and area encompassing between #b1ejj and #ej1jjj residents71 according to the ,census ,bureau's urban-rural classification in the #bjaj census4 7#f7 ,secretary ,the term ,secretary means the ,secretary of ,labor4 7#g7 ,,wioa definitions ,the terms adult education and literacy activities1 career planning1 individual with a barrier to employment1 in-demand industry sector or occupation1 local board1 outlying area1 recognized postsecondary credential1 ,state1 ,state board1 supportive services1 and workplace learning advisor have the meanings given such terms in section #c of the ,workforce ,innovation and ,opportunity ,act 7#bi ,u4,s4,c4 #cajb74 7b7 ,establishment 7#a7 ,in general ,the ,secretary shall establish a program to provide competitive grants to eligible entities to establish programs to ensure that any individual within the area served by the entity who applies for a job through the program will be provided with employment as provided for in this section4 7#b7 ,termination ,federal funding for a job guarantee program established under a grant under this section shall terminate on the earlier of-- 7,a7 the end of the #c-year period beginning on the date of the grant2 or 7,b7 the date of any revocation of the grantee as an eligible entity4 7#c7 ,grant renewal ,an eligible entity that receives a grant under this section may reapply under this section for an additional grant after the first #c-year grant period4 7c7 ,job guarantee programs ,a job guarantee program meets the requirements of this subsection if the jobs provided under such program-- 7#a7 are available to any individual who-- 7,a7 is #ah years of age or older2 and 7,b7 resides in the eligible entity as of the date that the grant is awarded under this subsection to such eligible entity1 except that participants in the program may be disciplined1 released1 or suspended from further participation in jobs under the program if they are found to be negligent1 or generally disruptive to the workplace involved under procedures established by the ,secretary that provide for an opportunity for a review of such determinations2 7#b7 are1 with respect to individual participants1 included as part of an established bargaining unit and covered by any applicable collective bargaining agreement in effect if similarly situated employees are part of such unit and represented by an exclusive bargaining representative2 7#c7 are available for the duration of the program2 7#d7 provide a wage of not less than the greater of-- 7,a7 #ae per hour1 or the hourly wage otherwise required to be paid to employees in area to be served under the program1 whichever is greater2 7,b7 the prevailing wage in the area involved for a similar job as required by chapter #fg of title #da1 ,united ,states ,code1 and other related laws2 or 7,c7 the applicable wage under an applicable collective bargaining agreement as provided for under paragraph 7#b72 7#e7 provide for coverage of the worker under a health insurance program that is comparable to that offered to ,federal employees under the ,federal ,employee ,health ,benefits ,program2 and 7#f7 provide at a minimum-- 7,a7 family and medical leave consistent with the provisions of the ,family and ,medical ,leave ,act of #aiic and applicable ,state law1 except that such leave shall be paid leave2 and 7,b7 the ,emergency ,paid ,sick ,leave ,act under division ,e of the ,families ,first ,coronavirus ,response ,act 7#bi ,u4,s4,c4 #bfja note74 7d7 ,other uses ,funds may be used to provide workers in a job guarantee program with-- 7#a7 supportive services1 which can include transportation1 child care1 dependent care1 housing1 and needs-related payments1 that are necessary to enable an individual to participate in activities authorized under this ,act2 7#b7 access to a workplace learning advisor to support the education1 skill development1 job training1 career panning1 and credentials required to progress toward career goals of such employees in order to meet employer requirements related to job openings and career advancements that support economic self-sufficiency2 7#c7 adult education and literacy activities1 including those provided by public libraries2 7#d7 activities that assist justice involved individuals1 formerly incarcerated individuals1 and individuals with criminal records in reentering the workforce2 and 7#e7 financial literacy activities including those described in section #abi7;b77#b77;,d7 of the ,workforce ,innovation and ,opportunity ,act4 7e7 ,applications ,an eligible entity seeking a grant under this section shall submit an application to the ,secretary at such time1 in such manner1 and containing such information as the ,secretary may require4 ,such application shall include-- 7#a7 a description of the geographic area and population that the entity intends to serve under the job guarantee program established under the grant1 including the area unemployment rate1 underemployment rate1 unemployment rate for individuals with disabilities1 poverty rate1 housing vacancy rate1 crime rate1 household income1 home-ownership rate1 labor force participation rate1 and educational attainment2 7#b7 to extent practicable1 a description of the jobs that will be offered under the job guarantee program1 including-- 7,a7 a description of supports provided to individuals with disabilities and accommodations required under the ,americans with ,disabilities ,act of #aiij 7#db ,u4,s4,c4 #abaja et seq472 and 7,b7 a description of supports and procedures to ensure job access and opportunities for individuals with criminal records1 including information on physical and programmatic accessibility1 in accordance with section #ahh of the ,workforce ,innovation and ,opportunity ,act1 if applicable1 and the ,americans with ,disabilities ,act of #aiij1 for individuals with disabilities2 7#c7 the need in the area for jobs to be performed1 including for jobs designated as a high-skill1 high-wage or in-demand industry sector or occupation by the ,secretary1 ,state board1 or local board2 7#d7 a description of ,state1 local1 or philanthropic funding1 including through coordination and in-kind or non-financial support1 if any1 that will be provided to assist in carrying out the job guarantee program2 7#e7 an assurance that the eligible entity will establish-- 7,a7 a public internet website1 in conjunction with the ,secretary1 to post all available jobs under the job guarantee program2 and 7,b7 a process for individuals to apply for such jobs2 7#f7 a comprehensive plan to describe how the funding under the program will leverage existing or anticipated local1 ,state1 and ,federal funding2 7#g7 an assurance that necessary administrative data systems and information technology infrastructure are available1 or will be available1 to provide for full participation in the evaluation under subsection 7k72 7#h7 a description of how the eligible entity will comply with the requirements described in subsection 7c77#f72 7#i7 an assurance that the entity will enter into an allocation agreement with the ,secretary under subsection 7j77#b77;,a72 and 7#aj7 an assurance that energy and infrastructure jobs provided under the program will not exacerbate the impacts of climate change4 7f7 ,selection ,in awarding such grant under this section1 the ,secretary shall consider diversity in geographic location1 urban-rural composition1 and political entity1 including the representation of ,tribal entities4 7g7 ,amount of grant 7#a7 ,establishment of fund ,there is established in the ,treasury of the ,united ,states a separate account to be known as the ,job ,guarantee ,program ,trust ,fund 7referred to in this section as the ,fund74 7#b7 ,transfers to fund ,there is hereby appropriated to the ,fund amounts equivalent to-- 7,a7 taxes received in the ,treasury under subchapter ,c of chapter #cf of the ,internal ,revenue ,code of #aihf2 and 7,b7 interest earned on investment of amounts in the ,fund under rules similar to the rules of section #ifjb7;b7 of such ,code4 7#c7 ,use of amounts ,the ,secretary shall use amounts in the ,fund to make payments to grantees under grants under this section in accordance with paragraph 7#d74 7#d7 ,payments 7,a7 ,in general ,the ,secretary shall determine the annual amount of a grant under this section based on a formula to be developed by the ,secretary4 7,b7 ,payments ,the ,secretary shall make payments to grantees under this section in a manner determined appropriate by the ,secretary4 ,the ,secretary shall not make subsequent payments to a grantee after the initial payment until the grantee certifies to the ,secretary that the grantee has expended1 transferred1 or obligated not less than #hj percent of the most recent payment made under this subsection4 7h7 ,limitations ,an eligible entity may not use amounts received under a grant under this section to-- 7#a7 employ individuals who will replace1 or lead to the displacement of1 existing employees1 positions1 or individuals who would otherwise perform similar employment1 or disrupt existing contracts and collective bargaining agreements1 as defined in section #aha7;b7 of the ,workforce ,innovation and ,opportunity ,act 7,public ,law #aac-abh72 7#b7 perform functions otherwise prohibited by ,federal1 ,state1 or local laws2 and 7#c7 carry out other prohibited activities1 as determined by the ,secretary4 7i7 ,federal provision of jobs in program sites 7#a7 ,guidance ,not later than #cj days after the date on which the ,secretary awards the first grant under this section1 the ,secretary shall-- 7,a7 provide guidance to the heads of appropriate ,federal agencies to notify such agencies of job guarantee programs established under the grants awarded under this section2 7,b7 request that such agencies notify the ,secretary1 within #cj days of the date on which the guidance is received under paragraph 7#a71 of the number and types of jobs that each such agency would make available through each of the programs2 and 7,c7 ensure that each such agency makes best efforts to provide jobs through the programs established under such grants4 7#b7 ,application of provisions ,the requirements of subsection 7c7 relating to wages and benefits provided to participants in jobs provided under job guarantee programs1 and the limitations in subsection 7h71 shall apply to ,federal agencies and jobs provided under this subsection1 except that a ,federal agency shall employ each individual under this subsection for up to #c years4 7#c7 ,listing of jobs on website ,the ,secretary shall establish procedures to ensure that jobs identified under paragraph 7#a77;,b7 are listed on the appropriate public internet website as provided for under subsection 7e77#e77;,a74 7#d7 ,reimbursement ,at the end of each fiscal year1 the ,secretary shall transfer from the ,fund to each ,federal agency that employs individuals under a job guarantee program under this section1 an amount necessary to reimburse such agency for the full cost of employing each such individual during such fiscal year4 7j7 ,training 7#a7 ,in general ,the ,secretary shall develop procedures to support up to #h weeks of paid training 7through privately or publicly funded training programs1 such as those provided by the public workforce system7 to participants in order to perform duties required by job guarantee programs under this section1 including a new period of training1 not to exceed #h weeks1 prior to commencing any new job under the program4 7#b7 ,specific populations ,with respect to certain populations with barriers to employment 7as defined in section #c7bd7 of the ,workforce ,innovation and ,opportunity ,act 7,public ,law #aac-abh771 the #h-week training period may include specific job-related training and counseling and other general skills training to prepare such individuals to reenter the workforce4 7k7 ,priorities and audits 7#a7 ,priorities ,prior to awarding the initial grants under this section1 the ,secretary shall issue a list of national job priorities relating to jobs that may be carried out under job guarantee programs1 that shall include child care1 care for seniors and individuals with disabilities1 clean energy jobs1 community investment projects1 and sustainable infrastructure activities4 ,the ,secretary shall take ,state board and local board suggestions into consideration when issuing such list4 7#b7 ,audits 7,a7 ,in general ,the ,secretary1 acting through the ,inspector ,general of the ,department of ,labor1 shall carry out annual audits of the use of grant funds provided to eligible entities under this section4 7,b7 ,allocation agreements and misuse of funds 7i7 ,allocation agreements ,an eligible entity shall enter into an allocation agreement with the ,secretary that shall provide that the ,secretary shall recoup any amounts paid to the entity under a grant under this section if the results of an audit under subparagraph 7,a7 include a finding that there was an intentional or reckless misuse of such funds by such entity4 7ii7 ,loss of eligibility ,an eligible entity that is determined to have falsified or otherwise misstated data in any report submitted to the ,secretary with the intent to deceive or mislead the ,secretary shall be ineligible to receive additional funds under this section4 7l7 ,reports ,not later than #ij days after the end of each calendar year for which an eligible entity obligates or expends any amounts made available under a grant under this section1 the eligible entity shall submit to the ,secretary a report that-- 7#a7 specifies the amount of grant funds obligated or expended for the preceding fiscal year2 7#b7 specifies any purposes for which the funds were obligated or expended2 and 7#c7 includes any other information that the ,secretary may require to more effectively administer the grant program under this section1 including the indicators of performance under section #aaf7;b77#b77;,a77i7 of the ,workforce ,innovation and ,opportunity ,act 7#bi ,u4,s4,c4 #cada7;b77#b77;,a77i771 with the performance data disaggregated by race1 ethnicity1 sex1 age1 and membership in a population specified in section #c7bd7 of such ,act 7#bi ,u4,s4,c4 #cajb7bd774 7m7 ,evaluation ,the ,chief ,evaluation ,officer at the ,department of ,labor shall provide for the conduct of an evaluation of the program1 using a rigorous design and evaluation methods to assess the implementation of the programs and their impact on-- 7#a7 overall employment1 public-sector employment1 and private-sector employment2 7#b7 private sector employment1 wages1 and benefits2 7#c7 poverty rate2 7#d7 public assistance spending and other ,federal spending in the area served by the program2 7#e7 child health and educational outcomes2 7#f7 health and well-being of those with mental1 emotional1 and behavioral health needs2 7#g7 incarceration rates2 7#h7 the environment1 including air quality and water quality2 7#i7 the indicators of performance as described in subsection 7l77#c72 and 7#aj7 other economic development and individual outcome indicators1 as determined by the ,secretary4 7n7 ,expansion of work opportunity credit ,to include participants in job guarantee programs 7#a7 ,in general ,subsection 7d7 of section #ea of the ,internal ,revenue ,code of #aihf is amended-- 7,a7 in paragraph 7#a7-- 7i7 in subparagraph 7,i71 by striking or at the end1 7ii7 in subparagraph 7,j71 by striking the period at the end and inserting 1 or1 and 7iii7 by adding at the end the following new subparagraph3 7,k7 a qualified participant in a job guarantee program4 1 and 7,b7 by adding at the end the following new paragraph3 7#af7 ,qualified participant in a job guarantee program ,the term qualified participant in a job guarantee program means any individual who is certified by the designated local agency as having participated in a job guarantee program under section #b of the ,federal ,jobs ,guarantee ,program ,act of #bjbj for not less than #c months during the #f-month period ending on the hiring date4 4 7#b7 ,effective date ,the amendments made by this subsection shall apply to individuals who begin work for the employer after ,december #ca1 #bjbj4 7o7 ,appropriations ,from funds in the ,treasury not otherwise appropriated1 there are appropriated to the ,secretary such sums as may be necessary to carry out this section4 #c4 ,transaction tax 7a7 ,in general ,chapter #cf of the ,internal ,revenue ,code of #aihf is amended by inserting after subchapter ,b the following new subchapter3 ,c ,tax on ,trading ,transactions ,sec4 #ddge4 ,tax on trading transactions4 ,sec4 #ddgf4 ,derivative defined4 #ddge4 ,tax on trading transactions 7a7 ,imposition of tax ,there is hereby imposed a tax on each covered transaction with respect to any security4 7b7 ,rate of tax ,the tax imposed under subsection 7a7 with respect to any covered transaction shall be #j4a percent of the specified base amount with respect to such covered transaction4 7c7 ,specified base amount ,for purposes of this section1 the term specified base amount means-- 7#a7 except as provided in paragraph 7#b71 the fair market value of a security 7determined as of the time of the covered transaction71 and 7#b7 in the case of any payment with respect to a derivative1 the amount of such payment4 7d7 ,covered transaction ,for purposes of this section-- 7#a7 ,in general ,the term covered transaction means-- 7,a7 except as provided in subparagraph 7,b71 any purchase if-- 7i7 such purchase occurs on1 or is subject to the rules of1 a qualified board or exchange located in the ,united ,states1 or 7ii7 the purchaser or seller is a ,united ,states person1 and 7,b7 any transaction with respect to a derivative if-- 7i7 such derivative is traded on1 or is subject to the rules of1 a qualified board or exchange located in the ,united ,states1 or 7ii7 any party with rights under such derivative is a ,united ,states person4 7#b7 ,exception for initial issues ,no tax shall be imposed under subsection 7a7 on any covered transaction with respect to the initial issuance of any security described in subparagraph 7,a71 7,b71 or 7,c7 of subsection 7e77#a74 7e7 ,definitions and special rules ,for purposes of this section-- 7#a7 ,security ,for purposes of this section1 the term security means-- 7,a7 any share of stock in a corporation1 7,b7 any partnership or beneficial ownership interest in a partnership or trust1 7,c7 except as provided in paragraph 7#b71 any note1 bond1 debenture1 or other evidence of indebtedness1 and 7,d7 any derivative 7as defined in section #ddgf74 7#b7 ,exception for certain traded short-term indebtedness ,a note1 bond1 debenture1 or other evidence of indebtedness which-- 7,a7 is traded on1 or is subject to the rules of1 a qualified board or exchange located in the ,united ,states1 and 7,b7 has a fixed maturity of not more than #ajj days1 shall not be treated as described in paragraph 7#a77;,c74 7#c7 ,qualified board or exchange ,the term qualified board or exchange has the meaning given such term by section #abef7;g77#g74 7f7 ,by whom paid 7#a7 ,in general ,the tax imposed by this section shall be paid by-- 7,a7 in the case of a transaction which occurs on1 or is subject to the rules of1 a qualified board or exchange located in the ,united ,states1 such qualified board or exchange1 and 7,b7 in the case of a purchase not described in subparagraph 7,a7 which is executed by a broker 7as defined in section #fjde7;c77#a77 which is a ,united ,states person1 such broker4 7#b7 ,special rules for direct1 etc41 transactions ,in the case of any transaction to which paragraph 7#a7 does not apply1 the tax imposed by this section shall be paid by-- 7,a7 in the case of a transaction described in subsection 7d77#a77;,a7-- 7i7 the purchaser if the purchaser is a ,united ,states person1 and 7ii7 the seller if the purchaser is not a ,united ,states person1 and 7,b7 in the case of a transaction described in subsection 7d77#a77;,b7-- 7i7 the payor if the payor is a ,united ,states person1 and 7ii7 the payee if the payor is not a ,united ,states person4 7g7 ,treatment of exchanges and payments with respect to derivatives ,for purposes of this section-- 7#a7 ,treatment of exchanges 7,a7 ,in general ,an exchange shall be treated as the sale of the property transferred and a purchase of the property received by each party to the exchange4 7,b7 ,certain deemed exchanges ,in the case of a distribution treated as an exchange for stock under section #cjb or #cca1 the corporation making such distribution shall be treated as having purchased such stock for purposes of this section4 7#b7 ,payments with respect to derivatives treated as separate transactions ,except as otherwise provided by the ,secretary1 any payment with respect to any derivative shall be treated as a separate transaction for purposes of this section4 7h7 ,application to transactions by controlled foreign corporations 7#a7 ,in general ,for purposes of this section1 a controlled foreign corporation shall be treated as a ,united ,states person4 7#b7 ,special rules for payment of tax on direct1 etc41 transactions ,in the case of any transaction which is a covered transaction solely by reason of paragraph 7#a7 and which is not described in subsection 7f77#a7-- 7,a7 ,payment by ,united ,states shareholders ,any tax which would 7but for this paragraph7 be payable under subsection 7f77#b7 by the controlled foreign corporation shall1 in lieu thereof1 be paid by the ,united ,states shareholders of such controlled foreign corporation as provided in subparagraph 7,b74 7,b7 ,pro rata shares ,each such ,united ,states shareholder shall pay the same proportion of such tax as-- 7i7 the stock which such ,united ,states shareholder owns 7within the meaning of section #ieh7;a77 in such controlled foreign corporation1 bears to 7ii7 the stock so owned by all ,united ,states shareholders in such controlled foreign corporation4 7,c7 ,definitions ,for purposes of this subsection1 the terms ,united ,states shareholder and controlled foreign corporation have the meanings given such terms in sections #iea7;b7 and #ieg7;a71 respectively4 7i7 ,administration ,the ,secretary shall carry out this section in consultation with the ,securities and ,exchange ,commission and the ,commodity ,futures ,trading ,commission4 7j7 ,guidance2 regulations ,the ,secretary shall-- 7#a7 provide guidance regarding such information reporting concerning covered transactions as the ,secretary deems appropriate1 and 7#b7 prescribe such regulations as are necessary or appropriate to prevent avoidance of the purposes of this section1 including the use of non-,united ,states persons in such transactions4 #ddgf4 ,derivative defined 7a7 ,in general ,for purposes of this subchapter1 except as otherwise provided in this section1 the term derivative means any contract 7including any option1 forward contract1 futures contract1 short position1 swap1 or similar contract7 the value of which1 or any payment or other transfer with respect to which1 is 7directly or indirectly7 determined by reference to one or more of the following3 7#a7 ,any share of stock in a corporation4 7#b7 ,any partnership or beneficial ownership interest in a partnership or trust4 7#c7 ,any evidence of indebtedness4 7#d7 ,except as provided in subsection 7b77#a71 any real property4 7#e7 ,any commodity which is actively traded 7within the meaning of section #ajib7;d77#a774 7#f7 ,any currency4 7#g7 ,any rate1 price1 amount1 index1 formula1 or algorithm4 7#h7 ,any other item as the ,secretary may prescribe4 ,except as provided in regulations prescribed by the ,secretary to prevent the avoidance of the purposes of this subchapter1 such term shall not include any item described in paragraphs 7#a7 through 7#h74 7b7 ,exceptions 7#a7 ,certain real property 7,a7 ,in general ,for purposes of this subchapter1 the term derivative shall not include any contract with respect to interests in real property 7as defined in section #hef7;c77#e77;,c77 if such contract requires physical delivery of such real property4 7,b7 ,options to settle in cash 7i7 ,in general ,for purposes of subparagraph 7,a71 a contract which provides for an option of cash settlement shall not be treated as requiring physical delivery of real property unless the option is-- 7,i7 not exercisable unconditionally1 and 7,,ii7 exercisable only in unusual and exceptional circumstances4 7ii7 ,option of cash settlement ,for purposes of clause 7i71 a contract provides an option of cash settlement if the contract settles in 7or could be settled in7 cash or property other than the underlying real property4 7#b7 ,securities lending1 sale-repurchase1 and similar financing transactions ,to the extent provided by the ,secretary1 for purposes of this subchapter1 the term derivative shall not include the right to the return of the same or substantially identical securities transferred in a securities lending transaction1 sale-repurchase transaction1 or similar financing transaction4 7#c7 ,options received in connection with the performance of services ,for purposes of this subchapter1 the term derivative shall not include any option described in section #hc7;e77#c7 received in connection with the performance of services4 7#d7 ,insurance contracts1 annuities1 and endowments ,for purposes of this subchapter1 the term derivative shall not include any insurance1 annuity1 or endowment contract issued by an insurance company to which subchapter ,l applies 7or issued by any foreign corporation to which such subchapter would apply if such foreign corporation were a domestic corporation74 7#e7 ,derivatives with respect to stock of members of same worldwide affiliated group ,for purposes of this subchapter1 the term derivative shall not include any derivative 7determined without regard to this paragraph7 with respect to stock issued by any member of the same worldwide affiliated group 7as defined in section #hfd7;f77 in which the taxpayer is a member4 7#f7 ,commodities used in normal course of trade or business ,for purposes of this subchapter1 the term derivative shall not include any contract with respect to any commodity if-- 7,a7 such contract requires physical delivery with the option of cash settlement only in unusual and exceptional circumstances1 and 7,b7 such commodity is used 7and is used in quantities with respect to which such derivative relates7 in the normal course of the taxpayer's trade or business 7or1 in the case of an individual1 for personal consumption74 7c7 ,contracts with embedded derivative components 7#a7 ,in general ,if a contract has derivative and nonderivative components1 then each derivative component shall be treated as a derivative for purposes of this subchapter4 ,if the derivative component cannot be separately valued1 then the entire contract shall be treated as a derivative for purposes of this subchapter4 7#b7 ,exception for certain embedded derivative components of debt instruments ,a debt instrument shall not be treated as having a derivative component merely because-- 7,a7 such debt instrument is denominated in a nonfunctional currency 7as defined in section #ihh7;c77#a77;,c77ii771 or 7,b7 payments with respect to such debt instrument are determined by reference to the value of a nonfunctional currency 7as so defined74 7d7 ,treatment of ,american ,depository ,receipts and similar instruments ,except as otherwise provided by the ,secretary1 for purposes of this subchapter1 ,american depository receipts 7and similar instruments7 with respect to shares of stock in foreign corporations shall be treated as shares of stock in such foreign corporations4 4 7b7 ,information reporting with respect to controlled foreign corporations ,section #fjch7;a77#a77;,b7 of such ,code is amended by inserting and transactions which are covered transactions for purposes of section #ddge by reason of the application of section #ddge7;h77#a7 to such corporation before the semicolon at the end4 7c7 ,conforming amendment ,the table of subchapters for chapter #cf of such ,code is amended by inserting after the item relating to subchapter ,b the following new item3 ,subchapter ,c4 ,tax on trading transactions 4 7d7 ,effective date ,the amendments made by this section shall apply to transactions after ,december #ca1 #bjbj4