Minority Opportunity Restoration Act

Minority Opportunity Restoration Act - Title I: Tax Incentives for Enterprise Zones - Enterprise Zone Act - Subtitle A: Designation of Enterprise Zones - Amends the Internal Revenue Code to provide for the designation of enterprise zones by the Secretary of Housing and Urban Development for purposes of extending the tax incentives and regulatory flexibility measures provided by this Act. Provides that State and local governments shall nominate areas for such designation. Limits the designation of enterprise zones to 225 nominated areas over a 36-month period (one-third of which must be in rural areas). Limits the period during which such designations shall remain in effect.

Provides that the Secretary may designate such zones only if: (1) the area is within the jurisdiction of the local government; (2) the boundary of the area is continuous; (3) the area has a population of at least 4,000 if any portion thereof is located within a standard metropolitan statistical area (with a population of at least 50,000) or 1,500 otherwise, or is within an Indian reservation; and (4) the area meets specified unemployment and poverty requirements.

Requires nominating local governments, as a condition of the Secretary's designation, to agree in writing to follow a course of action which may include reducing tax rates, improving local services, simplifying or streamlining regulation of business, or receiving commitments of private entities to assist employees and residents of the area.

Terminates the authority of the Secretary to designate enterprise zones on June 30, 1990, or three years after the publication of regulations pertaining to such zones, whichever is later. Describes areas to which preference shall be given in deciding to designate enterprise zones.

Requires the Secretary to prepare and submit to the Congress every four years a report on the effects of such enterprise zones' designation.

Requires that any property tax reduction effected by a local government under the terms of this Act be disregarded for purposes of determining the eligibility of a State or local government for Federal assistance or benefits.

States that designation of an enterprise zone shall not give displaced persons from such an area any rights or benefits under the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970.

Exempts enterprise zones from certain requirements relating to Federal environmental policy.

Subtitle B: Federal Income Tax Incentives - Part I: Credits for Employers and Employees- Allows employers located in enterprise zones a nonrefundable income tax credit for increased employment expenditures and employment of the disadvantaged. Allows a three-year carryback and 15-year carryover of such credit. Sets the amount of such credit at ten percent of the increase in payroll (taking into account a maximum of $17,500 in wages per year per employee) plus 50 percent of the wages paid to certain disadvantaged workers for the first three years of the enterprise zone designation. Phases out such credit in the last three years of the enterprise zone designation. Disallows a deduction for the portion of wages taken into account for such credit.

Allows employees located in enterprise zones a nonrefundable income tax credit equal to five percent of qualified wages earned per year (taking into account a maximum of $10,000 in wages per year). Phases out such credit in the last three years of the enterprise zone designation.

Part II: Credits for Investment in Tangible Property in Enterprise Zones- Allows businesses an additional investment tax credit for investment in certain tangible property located in enterprise zones. Limits such credit to five percent for zone personal property and ten percent for new zone construction property, including rental property. Requires that the property subject to such credit be predominantly used in the zone, be purchased after zone designation, and not be acquired from relatives or related corporations. Requires the recapture of such credit upon early disposition of the property. Phases out such credit in the last three years of the enterprise zone designation.

Provides that the termination of the regular percentage relating to the investment tax credit shall not apply to enterprise zone property.

Part III: Exclusion of Enterprise Zone Capital Gains - Excludes from gross income any gain realized on the sale or exchange of qualified enterprise zone property. Defines "qualified property" as any real property or tangible personal property used by the taxpayer in the active conduct of a trade or business within such enterprise zone and any interest in a corporation, partnership, or entity which is actively engaged in the conduct of a trade or business in an enterprise zone.

Part IV: Rules Relating to Industrial Development Bonds - Provides that limitations on the cost recovery deductions for property financed with tax-exempt bonds shall not apply to enterprise zone property. Provides that the termination of the small issue exemption shall not apply to bonds whose proceeds are used to finance facilities in such enterprise zones.

Part V: Sense of the Congress with Respect to Tax Simplification - Expresses the sense of the Congress that the Secretary of the Treasury should simplify the administration and enforcement of any provision of the Internal Revenue Code affected by this Act.

Subtitle C: Regulatory Flexibility - Revises the definition of "small entity" for purposes of the analysis of regulatory functions to include qualified businesses and governments and nonprofit enterprises operating within enterprise zones.

Authorizes Federal agencies, upon request by a designating government, to waive or modify rules and regulations which pertain to the carrying out of projects or activities within an enterprise zone. Requires agencies to approve such request if the resulting benefits of job creation, community development, or economic revitalization outweigh the public interest in continuation of the rule unchanged.

Disallows waiver or modification of a rule that would directly violate a statutory requirement (including the Davis-Bacon Act and Fair Labor Standards Act) or which would present a danger to the public health and safety. Provides that such waivers or modifications of a rule shall remain in effect as long as the zone designations.

Amends the Department of Housing and Urban Development Act to direct the Secretary of Housing and Urban Development to promote the coordination of all enterprise zone programs and consolidate all periodic reports required under such programs into one summary report.

Subtitle D: Establishment of Foreign-Trade Zones in Enterprise Zones - Requires the Foreign-Trade Board to consider on a priority basis and expedite the processing of applications for the establishment of foreign-trade zones within enterprise zones. Requires the Secretary of the Treasury to give priority to and expedite applications for the establishment of ports of entry necessary to establish such zones. States that, to the maximum extent practicable, foreign-trade zones should be established within enterprise zones.

Title II: Youth Employment Opportunity Wage - Youth Employment Opportunity Wage Act - Amends the Fair Labor Standards Act of 1938 to authorize employers to pay employees under 20 years of age 75 percent of the minimum wage rate between May and September of each year. Exempts such employees from special certificate requirements. Restricts such authorization to: (1) hours worked by eligible employees in compliance with applicable child labor laws; and (2) youth employed after May 1 of each year.

Prohibits the removal of employees ineligible for the subminimum wage rate in order to replace them with employees who are eligible.

Makes technical and conforming amendments to the Job Training Partnership Act.

Terminates the minimum wage rate exception after September 30, 1989.

Directs the Secretary of Labor to monitor the implementation of this Act and to report to the Congress concerning the employment effects of this Act.

Title III: Urban Homesteading - Urban Homestead Act - Amends the United States Housing Act of 1937 to establish procedures under which families residing in public housing projects shall be provided with an opportunity to purchase their dwelling units.

Requires, as a condition for public housing homeownership, the formation of a resident management corporation.

Requires the Secretary of Housing and Urban Development to provide comprehensive improvement assistance to such projects to ensure that the physical condition, management, and operation of such projects are sufficient to encourage homeownership by resident families.

Directs the Secretary and the responsible public housing agency to provide the training and technical and educational assistance necessary to prepare the families and the home ownership association for homeownership. Directs the Secretary to pay to the agency an amount equal to any reduction in the operating expenses of a project realized as a result of providing such assistance. Directs the agency to use such amount to reduce the purchase prices of dwelling units.

Authorizes a homeownership association to purchase a public housing project after the Secretary determines that: (1) the association is prepared to manage and maintain the project with continued Federal assistance; and (2) project operating costs have been reduced sufficiently to make home ownership affordable to resident families. Allows an eligible family to purchase a dwelling if the Secretary determines that such purchase will not interfere with the rights of other resident families or harm the efficient operation of the project. Requires the Secretary to continue to pay annual contributions to such project after such a purchase. Limits the purchase price for a project or unit to 25 percent of its fair market value. Lists alternative purchasing arrangements. Directs the agency to assist a purchase by making a loan to a family or association at an interest rate not exceeding 70 percent of the market interest rate.

Requires any unit or project purchaser who sells such property before the expiration of five years to pay the public housing agency a specified percentage of the sale price.

Prohibits the eviction of any resident family because of the sale of a project to a homeownership association. Authorizes the Secretary to: (1) help relocate any family which decides not to purchase its dwellings in a project where other units are purchased; or (2) provide such family with a housing voucher to permit such family to obtain comparable alternative housing.

Requires the Secretary to submit an annual report to the Congress setting forth: (1) any need for the development of additional public housing dwelling units as a result of the sale of public housing dwelling units under this section; (2) recommendations of the Secretary for additional budget authority; and (3) recommendations of the Secretary to ensure decent homes and decent neighborhoods for lower income families.

Title IV: Equal Educational Opportunity Act- Equal Educational Opportunity Act - Amends the Education Consolidation and Improvement Act of 1981 (ECIA) to permit payments to local educational agencies (LEAs) under Chapter 1 (Federal Assistance to Meet Special Educational Needs of Disadvantaged Children) of such Act to be used for educational voucher programs.

Permits parents of educationally deprived children to use such vouchers to pay for: (1) full-time enrollment at private schools or at public schools outside their school district; or (2) compensatory services provided by the LEA to meet their special educational needs at public schools of their school district.

Authorizes State educational agencies (SEAs) to require LEAs to use Chapter 1 funds to implement voucher programs. Requires that such State requirement be for all LEAs. Gives each LEA discretion to: (1) use such funds to implement a voucher program (if the SEA does not so require); and (2) distribute vouchers to some or all eligible parents.

Sets forth requirements for: (1) authorized educational voucher programs; (2) other LEA special educational needs programs and projects under Chapter 1; and (3) LEA applications to SEAs for voucher programs.

Declares that educational voucher program payments made by a LEA to a private school or to another LEA under this Act shall not constitute Federal financial assistance to the LEA or private school receiving such payments. Declares that use of Chapter 1 funds received in exchange for a voucher by a private school or a public school outside the eligible child's school district shall not constitute a program or activity receiving Federal financial assistance.

Makes specified Chapter 1 provisions inapplicable to educational voucher programs.

Sets forth requirements for nondiscrimination by private schools in the voucher program. Prohibits racially discriminatory policies at such schools.

Amends the Internal Revenue Code to direct the Secretary of the Treasury to disclose to appropriate Department of Justice offices or employees any tax return or tax return information relevant to investigations by the Attorney General or proceedings brought under this Act to determine whether a school is following a racially discriminatory policy.

Makes conforming amendments to specified provisions of Federal law relating to the creation of the declaratory judgment remedy to include references to provisions of this Act which authorize declaratory judgments by appropriate U.S. district courts as to whether a private elementary or secondary school follows a racially discriminatory policy.