A bill to amend section 103 of the Internal Revenue Code of 1954 with respect to the small issue exemption.

Amends the Internal Revenue Code to revise requirements for the tax exclusion of interest on small issues of industrial development bonds (IDBs). Requires the Governor of a State to report to the Secretary of the Treasury in 1983 and 1984 on bonds issued during the preceding years.

Requires IDB issuing authorities to conduct public hearings prior to the approval and issuance of any small issue IDB. Requires such authorities to certify that: (1) the issue will not create an unjustified competitive disadvantage to existing businesses; (2) the issue will stimulate the local economy; (3) the issue will result in jobs; and (4) the project would not be undertaken without IDB financing.

Requires that issues provide commercial property in economically distressed areas. Permits projects in adjacent areas under certain circumstances. Disallows tax- exempt status to obligations if the proceeds facilitate the relocation of activities from one State to another. Prohibits the use of bond proceeds to purchase farmland.

Requires the Secretary to report to specified congressional committees on the use of small issue IDBs.