SECTION 1. TAX ON OUTDOOR ADVERTISING.

    (a) In General.--Subchapter A of chapter 1 of the Internal Revenue 
Code of 1986 (relating to income taxes) is amended by adding at the end 
the following:

                    ``PART VIII--OUTDOOR ADVERTISING

                              ``Sec. 59B. Outdoor advertising.

``SEC. 59B. OUTDOOR ADVERTISING.

    ``(a) Imposition of Tax.--There is hereby imposed a tax equal to 15 
percent of the gross income received or accrued by any person from the 
lease of any taxable outdoor advertising display. Such tax shall be in 
addition to any other tax imposed by this subtitle.
    ``(b) Taxable Outdoor Advertising Display.--For purposes of this 
section, the term `taxable outdoor advertising display' means any 
outdoor advertising display (as defined by section 1033(g)(3)(C)) other 
than such a display having 32 square feet or less of advertising 
space.''.
    (b) Technical Amendment.--The table of parts for subchapter A of 
chapter 1 of the Internal Revenue Code of 1986 is amended by adding at 
the end the following:

                              ``Part VIII. Outdoor advertising.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of enactment of this 
Act.

SEC. 2. OUTDOOR ADVERTISING PROGRAM TRUST FUND.

    (a) In General.--Subchapter A of chapter 98 of the Internal Revenue 
Code of 1986 (relating to Trust Fund Code) is amended by adding at the 
end the following:

``SEC. 9512. OUTDOOR ADVERTISING PROGRAM TRUST FUND.

    ``(a) Establishment of Trust Fund.--There is established in the 
Treasury of the United States a trust fund to be known as the `Outdoor 
Advertising Program Trust Fund', consisting of such amounts as may be 
appropriated or credited to the trust fund as provided in this section 
or section 9602(b).
    ``(b) Transfers to Trust Fund.--There are appropriated to the 
Outdoor Advertising Program Trust Fund amounts equivalent to the 
revenues received in the Treasury from the tax imposed by section 59B.
    ``(c) Expenditures From Trust Fund.--The Secretary of the Treasury 
shall transfer from the Outdoor Advertising Program Trust Fund to the 
Secretary of Transportation such amounts as the Secretary of 
Transportation determines are necessary to carry out section 131 of 
title 23, United States Code.''.
    (b) Technical Amendment.--The table of sections for subchapter A of 
chapter 98 of the Internal Revenue Code of 1986 is amended by adding at 
the end the following:

                              ``Sec. 9512. Outdoor Advertising Program 
                                        Trust Fund.''.

SEC. 3. CONTROL OF OUTDOOR ADVERTISING.

    Section 131 of title 23, United States Code, is amended--
            (1) in subsection (d)--
                    (A) by striking ``(d) In'' and inserting the 
                following:
    ``(d) Industrial and Commercial Areas.--
            ``(1) In general.--In'';
                    (B) in the first sentence of paragraph (1) (as so 
                designated), by striking ``, or in unzoned'' and all 
                that follows through ``Secretary''; and
                    (C) by adding at the end the following:
            ``(2) Limitation on new signs.--
                    ``(A) In general.--Subject to this paragraph, no 
                new sign, display, or device may be erected under 
                paragraph (1) after the date of enactment of this 
                paragraph.
                    ``(B) Applicability of just compensation 
                requirements.--Except as provided in subparagraph (C), 
                just compensation under subsection (g) shall not be 
                paid upon the removal of any sign, display, or device 
                lawfully erected under State law after the date of 
                enactment of this paragraph.
                    ``(C) Exception.--
                            ``(i) In general.--Subject to clause (ii), 
                        a State may permit a person, at the person's 
                        option, to erect in the State a sign, display, 
                        or device in accordance with the requirements 
                        of paragraph (1) upon removal without payment 
                        of just compensation under subsection (g) of a 
                        sign, display, or device lawfully erected under 
                        this subsection.
                            ``(ii) Statewide limitation.--The total 
                        number of signs, displays, and devices erected 
                        and maintained under this subsection in a State 
                        shall not exceed the total number of signs, 
                        displays, and devices lawfully erected before 
                        the date of enactment of this paragraph under 
                        this subsection in the State and in existence 
                        on that date.'';
            (2) in the first sentence of subsection (g), by striking 
        ``and not permitted under subsection (c) of this section, 
        whether or not removed pursuant to or because of this section'' 
        and inserting ``and removed under this section'';
            (3) in subsection (k), by striking ``Subject to compliance 
        with subsection (g) of this section for the payment of just 
        compensation, nothing'' and inserting ``Nothing'';
            (4) in subsection (m), by striking the first and second 
        sentences and inserting the following: ``There are appropriated 
        from the Outdoor Advertising Program Trust Fund established by 
        section 9512 of the Internal Revenue Code of 1986 such sums as 
        are necessary to carry out this section.'';
            (5) by redesignating subsection (t) as subsection (v); and
            (6) by inserting after subsection (s) the following:
    ``(t) State Inventory of Outdoor Advertising Signs, Displays, and 
Devices.--
            ``(1) Requirement.--For the purpose of subsection (b), a 
        State shall not be considered to have made provision for 
        effective control of the erection and maintenance of outdoor 
        advertising signs, displays, and devices unless the State 
        maintains, and annually submits to the Secretary, an inventory 
        of all outdoor advertising signs, displays, and devices in the 
        State for which the effective control is required under this 
        section, including a specification of whether each sign, 
        display, or device is illegal, nonconforming, or conforming 
        under State law.
            ``(2) State scenic byways.--The State inventory required by 
        paragraph (1) shall identify each sign, display, or device 
        described in paragraph (1) that is located along a highway on 
        the Interstate System or Federal-aid primary system designated 
        as a scenic byway under a program of the State described in 
        subsection (s).
            ``(3) Use of state inventories.--The Secretary shall use 
        the State inventories submitted under this subsection to ensure 
        compliance with subsection (d)(2)(C)(ii) and to carry out this 
        section.
    ``(u) Limitation on Vegetation Removal.--For the purpose of 
subsection (b), a State shall not be considered to have made provision 
for effective control of the erection and maintenance of outdoor 
advertising signs, displays, and devices if the State carries out or 
permits the removal of vegetation in, or other alteration of, a right-
of-way referred to in subsection (b) for the purpose of improving the 
visibility of any outdoor advertising sign, display, or device located 
outside the right-of-way.''.
Amends the Internal Revenue Code to:  (1) impose a tax equal to 15 percent of the gross income received from the lease of any taxable outdoor advertising display; and (2) establish in the Treasury the Outdoor Advertising Program Trust Fund into which the revenues collected from the imposition of such tax shall be deposited. 
Amends Federal aid highway law to repeal a provision which allows outdoor advertising to be placed within a certain distance of unzoned commercial or industrial areas on or near the Interstate and primary highway systems.  Prohibits:  (1) any new sign, display, or device from being erected after the enactment of this Act in specified areas adjacent to such systems; and (2) compensation from being paid for the removal of such signs and related advertising, with exceptions. 
Requires funds for the control of outdoor advertising to be appropriated from the Fund.  (Currently, such funds are authorized to be appropriated from the Treasury.) 
Provides that a State shall not be considered to have made provision for effective control of the erection and maintenance of signs along the Interstate and primary systems:  (1) unless it maintains and annually submits to the Secretary of Transportation an inventory of all State signs for which such control is required; and (2) if it carries out or permits the removal of vegetation in, or alteration of, certain rights-of-way in order to improve the visibility of any sign located outside a right-of-way. 
Requires such State inventory to identify each sign that is located along a system highway designated as a scenic byway.
A bill to improve the control of outdoor advertising in areas adjacent to the Interstate System, the National Highway System, and certain other federally assisted highways, and for other purposes.