Omnibus Budget Reconciliation Act of 1989

Omnibus Budget Reconciliation Act of 1989 - Title I: Committee on Agriculture, Nutrition, and Forestry - Agricultural Reconciliation Act of 1989 - Subtitle A: Agricultural Commodity Programs - Amends the Agricultural Act of 1949 to prescribe new acreage reductions for the 1990 cotton crop.

Directs the Secretary of Agriculture, during calendar year 1990, to offer to buy butter at no more than $1.10 per pound and nonfat dry milk at $0.8475 per pound. Permits the Secretary to allocate the rate of price support between the purchase prices for nonfat dry milk and butter in any other manner determined to result in the lowest level of expenditures by the Commodity Credit Corporation. Requires notification of the appropriate congressional committees of such a determination.

Makes across-the-board reductions in deficiency payments for the 1990 crops of: (1) wheat and corn, by 2.33 cents per bushel; (2) cotton, by .515 cents per pound; and (3) rice, by .515 cents per hundred-weight.

Amends the Agricultural Act of 1949 to direct the Secretary of Agriculture to permit producers to plant soybeans, sunflowers, or safflowers on up to 25 percent of the permitted acreage for 1990 crops of wheat, feed grains, cotton, and rice. Requires the Secretary to reduce such percentage (or even prohibit such plantings) if it is estimated, based on the anticipated additional soybean, sunflower, and safflower plantings, that the average market price for the 1990 soybean crop will be below 115 percent of the loan rate for the 1989 crop. Requires a report to the appropriate congressional committees. Counts any acreage planted to soybeans, sunflowers, or safflowers as acreage planted to the program crop for which they are substituted.

Sets forth a sliding-scale of acreage limitations and reductions for the 1990 crop of feed grains.

Subtitle B: Agricultural Trade Programs - Prohibits the Commodity Credit Corporation during FY 1990 from making more than $650,000,000 in commodities available to exporters, processors, or foreign importers in order to enhance the export of U.S. commodities by making their prices competitive in the world market.

Amends the Food Security Act of 1985 to reduce the amount of targeted export assistance available for FY 1990 from $325,000,000 to $225,000,000.

Subtitle C: General Provisions - Delays until October 1, 1992, the effective date of certain Farm Credit System Financial Assistance Corporation (FAC) stock purchase requirements of the Farm Credit Act of 1971, as amended by the Rural Development, Agriculture, and Related Agencies Appropriations Act, 1989. Requires that FAC make, out of its Trust Fund, four annual payments (calculated according to specified formulae) to each institution of the Farm Credit System that purchased FAC stock. Makes such installments payable as soon as practicable after October 1 of each of the calendar years 1989 through 1992.

Amends the Farm Credit Act of 1971 to prescribe the annual premium due from any insured FCS bank for any calendar year.

Title II: Committee on Banking, Housing, and Urban Affairs - Amends the National Flood Insurance Act of 1968 to: (1) extend the national flood insurance program from FY 1989 through FY 1991; and (2) provide for the establishment or updating of flood-risk zone data until such date.

Title III: Committee on Commerce, Science, and Transportation - Amends the Communications Act of 1934 to adjust the Schedule of Charges assessed by the Federal Communications Commission (FCC) for the provision of the following services: (1) private radio services; (2) equipment approval services/experimental radio; (3) mass media services; (4) common carrier services; and (5) miscellaneous charges. Changes to every two years after October 1, 1991, the date upon which such Schedule shall be reviewed by the FCC and adjusted to reflect changes in the Consumer Price Index.

Increases fines and penalties for various failures and noncompliance under the Act.

Increases the fines assessed against those who receive from a common carrier a rebate or offset against the regular charges for the transmission of messages or signals. Makes such fines higher for broadcast station licensees or permittees, cable television operators, or applicants for cable television operation. Sets forth penalty amounts if the violator is a common carrier subject to the provisions of the Act or an applicant for a common carrier license. Requires the FCC to assess such forfeiture penalty amount via written notice.

Requires the Secretary of Transportation to collect a fee of $3.00 for each passenger on a commercial aircraft departing the United States on international flights during FY 1990. Requires deposit of such fees in the Treasury to offset the Department of Transportation's activities relating to international air transportation operations, including air traffic control operations and aviation security and safety inspections.

Amends Federal law to require the Secretary to collect a $3.00 per passenger fee for each covered voyage of a: (1) passenger vessel (with certain exceptions) having specified accommodations on a voyage that extends over one or more nights; or (2) vessel transporting passengers engaged in gambling aboard such vessel beyond the territorial sea of the United States. Targets the use of such fees for harbor maintenance and Coast Guard activities.

Requires the Secretary (the Secretary) of the department in which the Coast Guard is operating to establish a system for the collection of $50,000,000 in FY 1990 from users of Coast Guard services other than those related to emergency search and rescue. Requires the system to include collection of payments from: (1) sales of support of services stamps; and (2) fees charged to users of such specified services who have not purchased such stamps. Requires the Secretary to ensure that such system minimizes adverse economic effects upon commercial towing services and other segments of the maritime industry. Requires a report to the Congress on measurers taken to establish such system.

Requires the Secretary of Transportation to establish a schedule of fees to be collected: (1) for each slot issued by the Federal Aviation Administration and held by an air carrier, other than a commuter operator, at high density traffic airports; and (2) for each slot held by a foreign air carrier at such airports, consistent with international law and U.S. treaties. Requires the total of fees collected for FY 1990 to be at least $239,000,000.

Title IV: Environment and Public Works - Subtitle A: Atmospheric Pollution Fees - Stratospheric Ozone and Climate Protection Act of 1989 - Directs the Administrator of the Environmental Protection Agency to impose fees on producers, importers, and distributors of specified ozone-depleting chemicals. Exempts from such fees ozone-depleting chemicals that have been recovered and recycled. Provides for the annual adjustment of such fees.

Requires producers or importers of such chemicals to pay base fees for the right to produce or import such chemicals.

Sets forth a schedule for the computation of such fees.

Authorizes the Administrator to collect fees for other chemicals known or anticipated to contribute to stratospheric ozone depletion, as appropriate.

Permits persons subject to such fees to apply for a fee refund attributable to the quantity of an ozone-depleting chemical exported during the assessment period to a developing country which is a party to the Montreal Protocol. Provides for the deposit of such fees into the Ozone Layer and Climate Protection Trust Fund.

Establishes the Ozone Layer and Climate Protection Trust Fund. Makes the Fund available to implement the Montreal Protocol and to carry out this Act and specified EPA activities.

Subtitle B: Nuclear Regulatory Commission User Fees - Amends the Consolidated Omnibus Reconciliation Act of 1985 to remove provisions concerning Nuclear Regulatory Commission (NRC) annual user fee reporting requirements. Raises the maximum amount of such fees that may be charged during FY 1990.

Subtitle C: Payments to the Offshore Oil Pollution Compensation Fund - Amends the Outer Continental Shelf Lands Act of 1978 to require fees of three cents (currently, not to exceed such amount) on each barrel of oil from the Outer Continental Shelf. Requires the Offshore Oil Pollution Compensation Fund to be maintained at a specified level.

Subtitle D: Onondaga Lake Restoration Program - Directs the Secretary of the Army, acting through the Chief of Engineers, to carry out a reconnaissance and feasibility study for an environmental restoration project for Onondaga Lake, New York.

Title V: Non-Revenue Provisions of the Committee on Finance - Subtitle A: Medicare - Part I: Provisions Relating to Part A of Medicare - Amends title XVIII (Medicare) of the Social Security Act to increase Medicare payments for the operating costs of inpatient hospital services in FY 1990 by the market basket percentage increase in such costs: (1) plus three percent for rural hospitals; (2) minus 0.7 percent for hospitals in large urban areas; and (3) minus 1.4 percent for hospitals located in other urban areas.

Reduces the Medicare payment to hospitals for indirect costs of medical education. Reduces payments for the capital-related costs of inpatient hospital services for FY 1990 by 13.5 percent.

Part II: Provisions Relating to Part B of Medicare - Subpart A: Payment for Physicians' Services - Revises physician payments for non-primary services through the first quarter of 1990. Amends part B (Supplementary Medical Insurance) of the Medicare program to reduce Medicare payments for a specified list of physicians' services furnished during 1990 after April 1.

Reduces payments for radiology services.

Prohibits the rounding of fractional time units in calculating Medicare payments for anesthesia services.

Subpart B: Payment for Other Services - Updates the fee schedule for clinical diagnostic laboratory tests for the final three quarters of 1990 by two percent. Lowers the limitation on Medicare payments for such tests in the absence of a nationwide fee schedule.

Delays, until April 1990, the cost-of-living increase in payments for durable medical equipment. Reduces the payment rate for oxygen and oxygen equipment for the final three quarters of 1990. Reduces payments for seat-lift chairs or transcutaneous electric nerve stimulators furnished on or after April 1, 1990, by 15 percent. Treats power driven wheelchairs as routinely purchased durable medical equipment for Medicare payment purposes. Requires the Secretary to specify criteria to be used by carriers in deciding on a case by case basis whether to classify power-driven wheelchairs as customized items for payment purposes. Reduces payments for the capital-related costs of FY 1990 outpatient hospital services by 13.5 percent.

Part III: Provisions Relating to Parts A and B of Medicare - Amends the Medicare program to extend the periods of days within which claims must be paid under parts A and B of the Medicare program in FY 1990. Exempts any transfer of Federal outlays, receipts, or revenues from FY 1990 to FY 1991 by reason of such extension from the prohibition against counting as savings for deficit reduction purposes the transfer of government actions from one year to another.

Amends the Internal Revenue Code to provide for the disclosure of taxpayer identification information regarding a Medicare beneficiary for the determination of the extent to which such beneficiary is covered under a group health plan. Amends the Medicare program to require employers to disclose information concerning the status and nature of a beneficiary's coverage under a group health plan of the employer.

Part IV: Medicare Part B Basic Premium - Amends Part B (Supplementary Medical Insurance) of the Medicare program to extend the basic part B premium through FY 1990.

Subtitle B: Medicaid - Delays the effective date of certain nurse aide training requirements for the Medicaid programs. Mandates State waiver of certain requirements for nurse aides meeting specified education and experience criteria.

Subtitle C: Income Security - Amends title III (Unemployment Compensation) of the Social Security Act to allow States to withhold from an individual's unemployment compensation the unpaid contributions owed by the individual to the State's unemployment fund.

Title VI: Revenue Measures - Revenue Reconciliation Act of 1989 - Subtitle A: Corporate Provisions - Disallows the dividend received deduction for dividends on preferred stock of certain subsidiaries. Defers the interest deductions on certain high yield original issue discount obligations.

Provides for the treatment of certain transfers to controlled corporations.

Increases the percentage of the required distribution of ordinary income of regulated investment companies in the computation of the excise tax on the undistributed income of such companies. Provides for the treatment of certain mutual fund sales charges and dividends with respect to taxation of such companies and their shareholders.

Provides a limitation on the threshold requirement for certain built-in gains and losses.

Requires distributions on disqualified preferred stock to be treated as extraordinary dividends.

Prohibits any reduction in gross income by reason of an excess loss account if such reduction is on account of a reduction in the basis of indebtedness.

Sets forth provisions relating to the treatment of stock and debt concerning: (1) regulatory authority over the treatment of stock or indebtedness; and (2) reporting of certain acquisitions or recapitalizations.

Requires S corporations to make estimated tax payments for certain taxes.

Places limitations on refunds due to net operating loss carrybacks or excess interest allocable to corporate equity reduction transactions.

Subtitle B: Employee Benefit Provisions - Provides limitations on partial exclusion of interest on loans used to acquire employer securities. Requires that employer security loans be held only by qualified lenders.

Requires employee stock ownership plans to file certain information reports.

Limits contributions to retirement plans for medical benefits.

Subtitle C: Foreign Provisions - Provides for determining the taxable year of a controlled foreign corporation or a foreign personal holding company. Sets forth the deadline for paying dividends after the close of a taxable year in order to be considered as paid during such taxable year. Provides a limitation on the use of deconsolidation to avoid foreign tax credit limitations. Makes reporting requirements for foreign-owned corporations applicable to corporations that are 25-percent foreign-owned. Sets forth U.S. recordkeeping requirements for such corporations and establishes penalties for failure to furnish information or maintain records.

Subtitle D: Excise Tax Provisions - Suspends for nine months the automatic reduction in aviation-related taxes.

Increases the international air passenger departure tax and establishes a ship passengers international departure tax.

Provides for the Oil Spill Liability Trust Fund tax to take effect on January 1, 1990.

Establishes an excise tax on the sale of chemicals which deplete the ozone layer and of products containing such chemicals.

Specifies the schedule for the deposit of gasoline excise taxes.

Subtitle E: Miscellaneous Provisions - Part I: Like Kind Exchanges Between Related Persons - Sets forth limitations on the nonrecognition of gain or loss on the exchange of property with respect to special rules for exchanges between related persons, where there is substantial diminution of risk, and for foreign real property.

Part II: Accounting Provisions - Limits the deductibility of contingent payments in transfers of franchises, trademarks, and trade names.

Revises provisions concerning reserves of mutual savings banks and other thrift institutions.

Part III: Employment Tax Provisions - Amends the Internal Revenue Code to require income tax withholding for certain agricultural employees.

Specifies the schedule and minimum amounts for the deposit of social security taxes and withheld income taxes.

Part IV: Other Provisions - Requires the recognition of gain or loss by any partner that contributes property to a partnership if the property is distributed by the partnership to anyone or any entity but the contributing partner.

Eliminates the retroactive certification of employees for the work incentive jobs credit.

Subtitle F: Coordination With Budget Act - Declares that, with respect to the public debt limit, any transfer of outlays, receipts, or revenues pursuant to this title is a necessary (but secondary) result of a significant policy change.

Title VII - Civil Service and Postal Service Programs - Declares that the receipts and disbursements of the Postal Service Fund: (1) shall not be included in the totals of the Federal budget or the congressional budget; (2) shall be exempt from Federal budget limitations on expenditures and net lending; and (3) shall be exempt from sequestration and shall not be counted for purposes of calculating the Federal deficit.

Directs the United States Postal Service to deposit $400,000,000 from available funds into the Civil Service Retirement and Disability Fund at the end of FY 1990. Requires such payment to be considered as a prior year's loss for purposes of adjusting postal rates under provisions relating to mail matter.

Makes the Postal Service liable for unfunded increases in the benefits to be paid from the Fund to: (1) former Postal Service employees who become annuitants upon separation from the Service after September 30, 1990; (2) their survivors; or (3) the survivors of Postal Service employees who died after such date, when such increases result from cost-of-living adjustments.

Directs the Office of Personnel Management (OPM) to determine such increases. Requires the Postal Service to pay such increases to OPM in 15 annual installments plus interest with the first payment due at the end of the fiscal year in which the cost-of-living adjustment becomes effective.

Provides for the funding of health benefit premiums for survivors of Postal Service annuitants or employees who died after September 30, 1986.

Provides for partial deferred payments of lump-sum credit according to a specified payment schedule for certain individuals electing alternative forms of annuities if the commencement date of the annuity to be paid falls between September 30, 1989, and October 1, 1990. Provides that nothing in this Act shall affect any aspect of annuity benefits payable under election for alternative forms of annuities.

Title VIII: Committee on Labor and Human Resources - Subtitle A: Pension Plans - Amends the Employee Retirement Income Security Act of 1974 to increase the annual premium paid to the Pension Benefit Guaranty Corporation (PBGC) by single-employer pension plans by $2 (from $16 to $18) per participant.

Subtitle B: Education - Medical Residents' Student Loan Amendments Act of 1989 - Amends the Higher Education Act of 1965 (HEA) to revise provisions relating to repayment of student loans by medical residents.

Requires lenders to grant borrowers, upon written request, forbearance from student loan repayments, renewable at 12-month intervals, for the time remaining in the borrower's medical or dental internship, residency, or fellowship program.

Revises HEA provisions for the Supplemental Loans for Students (SLS) program to prohibit the financial aid administrator from certifying a borrower's eligibility for an SLS loan until after certain attendance criteria are met.

Prohibits charging any student or parent a fee for supplying supplementary information or documentation to a financial aid administrator for need analysis under specified HEA student aid programs.

Title IX: Veterans Programs - Extends through FY 1990 the authority of the Secretary of Veterans Affairs to collect a loan fee from veterans receiving home loans guaranteed by the Department of Veterans Affairs. Changes from October 1, 1989, to October 1, 1990, the date before which the Secretary is authorized to sell without recourse notes evidencing loans which are in default.