SECTION 1. REPEAL OF LIMITATION OF COVER OVER OF TAX ON DISTILLED 
              SPIRITS.

    (a) In General.--Section 7652 (relating to limitation on cover over 
of tax on distilled spirits) is amended by striking subsection (f) and 
by redesignating subsection (g) as subsection (f).
    (b) Conforming Amendments.--Section 7652(f) of such Code (as so 
redesignated) is amended by striking ``subsection (f) of this section'' 
in paragraph (1)(B) and inserting ``section 5001(a)(1)''.
    (c) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        apply to articles containing distilled spirits that are tax-
        determined after September 30, 1999.
            (2) Special rule.--
                    (A) In general.--For the 5-year period beginning 
                after September 30, 1999, the treasury of Puerto Rico 
                shall make a Conservation Trust Fund transfer within 30 
                days from the date of each cover over payment made 
                during such period to such treasury under section 
                7652(e) of the Internal Revenue Code of 1986.
                    (B) Conservation trust fund transfer.--
                            (i) In general.--For purposes of this 
                        paragraph, the term ``Conservation Trust Fund 
                        transfer'' means a transfer to the Puerto Rico 
                        Conservation Trust Fund of an amount equal to 
                        50 cents per proof gallon of the taxes imposed 
                        under section 5001 or section 7652 of such Code 
                        on distilled spirits that are covered over to 
                        the treasury of Puerto Rico under section 
                        7652(e) of such Code.
                            (ii) Treatment of transfer.--Each 
                        Conservation Trust Fund transfer shall be 
                        treated as principal for an endowment, the 
                        income from which to be available for use by 
                        the Puerto Rico Conservation Trust Fund for the 
                        purposes for which the Trust Fund was 
                        established.
                            (ii) Result of nontransfer.--
                                    (I) In general.--Upon notification 
                                by the Secretary of the Interior that a 
                                Conservation Trust Fund transfer has 
                                not been made by the treasury of Puerto 
                                Rico during the period described in 
                                subparagraph (A), the Secretary of the 
                                Treasury shall, except as provided in 
                                subclause (II), deduct and withhold 
                                from the next cover over payment to be 
                                made to the treasury of Puerto Rico 
                                under section 7652(e) of such Code an 
                                amount equal to the appropriate 
                                Conservation Trust Fund transfer and 
                                interest thereon at the underpayment 
                                rate established under section 6621 of 
                                such Code as of the due date of such 
                                transfer. The Secretary of the Treasury 
                                shall transfer such amount deducted and 
                                withheld, and the interest thereon, 
                                directly to the Puerto Rico 
                                Conservation Trust Fund.
                                    (II) Good cause exception.--If the 
                                Secretary of the Interior finds, after 
                                consultation with the Governor of 
                                Puerto Rico, that the failure by the 
                                treasury of Puerto Rico to make a 
                                required transfer was for good cause, 
                                and notifies the Secretary of the 
                                Treasury of the finding of such good 
                                cause before the due date of the next 
                                cover over payment following the 
                                notification of nontransfer, then the 
                                Secretary of the Treasury shall not 
                                deduct the amount of such nontransfer 
                                from any cover over payment.
                    (C) Puerto rico conservation trust fund.--For 
                purposes of this paragraph, the term ``Puerto Rico 
                Conservation Trust Fund'' means the fund established 
                pursuant to a Memorandum of Understanding between the 
                United States Department of the Interior and the 
                Commonwealth of Puerto Rico, dated December 24, 1968.
Amends the Internal Revenue Code to require, for the five-year period beginning after September 30, 1999, the treasury of Puerto Rico to make a Conservation Trust Fund transfer within 30 days from the date of each cover over payment made during such period to such treasury under provisions of the Code concerning shipments to the United States. Defines terms.
A bill to amend the Internal Revenue Code of 1986 to repeal the limitation of the cover over of tax on distilled spirits, and for other purposes.