I

103D CONGRESS

1ST SESSION H. R. 2974

To amend the Internal Revenue Code of 1986 to establish a Disaster Relief

Trust Fund to provide at least a portion of the funding for Federal

disaster programs and to provide for revenues and other funds to be

deposited into such Trust Fund.

IN THE HOUSE OF REPRESENTATIVES

AUGUST 6, 1993

Mr. MINGE introduced the following bill; which was referred jointly to the

Committees on Ways and Means, Small Business, Public Works and

Transportation, and Agriculture

A BILL

To amend the Internal Revenue Code of 1986 to establish

a Disaster Relief Trust Fund to provide at least a portion of the funding for Federal disaster programs and

to provide for revenues and other funds to be deposited

into such Trust Fund.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Disaster Relief Trust

5 Fund Act of 1993’’.
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1 SEC. 2. DISASTER RELIEF TRUST FUND.

2 (a) IN GENERAL.—Subchapter A of chapter 98 of the

3 Internal Revenue Code of 1986 (relating to trust fund

4 code) is amended by adding at the end thereof the follow5 ing new section:

6 ‘‘SEC. 9512. DISASTER RELIEF TRUST FUND.

7 ‘‘(a) CREATION OF TRUST FUND.—There is estab8 lished in the Treasury of the United States a trust fund

9 to be known as the ‘Disaster Relief Trust Fund’, consist10 ing of such amounts as may be appropriated, credited, or

11 transferred to such Trust Fund as provided in this section,

12 section 9602(b), or other provision of law.

13 ‘‘(b) TRANSFERS TO TRUST FUND.—

14 ‘‘(1) IN GENERAL.—There are hereby appro15 priated to the Disaster Relief Trust Fund amounts

16 equivalent to the sum of—

17 ‘‘(A) the net revenues received in the

18 Treasury from the Disaster Relief Trust Fund

19 fuel taxes, and

20 ‘‘(B) the revenues received in the Treasury

21 from the taxes imposed by sections 59B and

22 59C (relating to disaster relief surtaxes).

23 ‘‘(2) DISASTER RELIEF TRUST FUND FUEL

24 TAXES.—For purposes of this section, the term ‘Dis25 aster Relief Trust Fund fuel taxes’ means taxes im26 posed by sections 4041, 4081, and 4091 to the ex-
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1 tent attributable to the Disaster Relief Trust Fund

2 financing rate under such sections.

3 ‘‘(3) NET REVENUES.—For purposes of para4 graph (1), the term ‘net revenues’ means the

5 amount estimated by the Secretary based on the ex6 cess of—

7 ‘‘(A) the Disaster Relief Trust Fund fuel

8 taxes, over

9 ‘‘(B) the decrease in the tax imposed by

10 chapter 1 resulting from such taxes.

11 ‘‘(c) EXPENDITURES FROM TRUST FUND.—Amounts

12 in the Disaster Relief Trust Fund shall be available only

13 for purposes of making expenditures to carry out the

14 following:

15 ‘‘(1) The Robert T. Stafford Disaster Relief

16 and Emergency Assistance Act.

17 ‘‘(2) Sections 5(e), 7(b)(1), 7(b)(2), and 7(m)

18 of the Small Business Act.

19 ‘‘(3) Subtitle C of the Consolidated Farm and

20 Rural Development Act.

21 ‘‘(4) The emergency crop loss assistance pro22 gram of the Department of Agriculture conducted

23 under the terms and conditions contained in chapter

24 3 of subtitle B of title XXII of the Food, Agri25 culture, Conservation, and Trade Act of 1990 (Pub-
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1 lic Law 101–624; 7 U.S.C. 1421 note) or any suc2 cessor to such program.

3 ‘‘(5) Watershed and flood protection activities

4 conducted by the Soil Conservation Service and con5 servation and environmental restoration activities

6 conducted by the Agricultural Stabilization and Con7 servation Service, as specified by the Secretary of

8 Agriculture.

9 ‘‘(6) Other disaster relief programs, as specified

10 by the Director of the Federal Emergency Manage11 ment Agency.

12 The amount available for any fiscal year under any provi13 sion referred to in the preceding sentence shall be the

14 amount specified by the Director of the Federal Emer15 gency Management Agency.

16 ‘‘(d) AUTHORITY TO BORROW.—

17 ‘‘(1) IN GENERAL.—There are hereby appro18 priated to the Disaster Relief Trust Fund as repay19 able advances such sums as the Director of the Fed20 eral Emergency Management Agency determines

21 necessary to carry out the purposes of such Trust

22 Fund.

23 ‘‘(2) LIMITATION ON AMOUNT OUTSTANDING.—

24 The maximum aggregate amount of repayable ad25 vances to the Disaster Relief Trust Fund which is
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1 outstanding at any one time shall not exceed an

amount equal to 1 2 ⁄3 of the revenues that the Sec3 retary estimates will be received by such Trust Fund

4 during the following fiscal year.

5 ‘‘(3) REPAYMENT OF ADVANCES.—

6 ‘‘(A) IN GENERAL.—Advances made to the

7 Disaster Relief Trust Fund shall be repaid, and

8 interest on such advances shall be paid, to the

9 general fund of the Treasury when the Sec10 retary determines that moneys are available for

11 such purposes in such Fund.

12 ‘‘(B) RATE OF INTEREST.—Interest on ad13 vances made pursuant to this subsection shall

14 be at a rate determined by the Secretary (as of

15 the close of the calendar month preceding the

16 month in which the advance is made) to be

17 equal to the current average market yield on

18 outstanding marketable obligations of the Unit19 ed States with remaining periods to maturity

20 comparable to the anticipated period during

21 which the advance will be outstanding and shall

22 be compounded annually.

23 ‘‘(e) TRANSFERS FROM TRUST FUND FOR CERTAIN

24 REPAYMENTS AND CREDITS.—
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1 ‘‘(1) IN GENERAL.—The Secretary shall pay

2 from time to time from the Disaster Relief Trust

3 Fund into the general fund of the Treasury amounts

4 equivalent to—

5 ‘‘(A) the payments under sections 6420,

6 6421, and 6427, and

7 ‘‘(B) the credits allowed under section 34,

8 to the extent such payments and credits are attrib9 utable to the Disaster Relief Trust Fund financing

10 rate.

11 ‘‘(2) TRANSFERS BASED ON ESTIMATES.—

12 Transfers under paragraph (1) shall be made on the

13 basis of estimates by the Secretary, and proper ad14 justments shall be made in amounts subsequently

15 transferred to the extent prior estimates were in ex16 cess of or less than the amounts required to be

17 transferred.’’

18 (b) CLERICAL AMENDMENT.—The table of sections

19 for such subchapter A is amended by adding at the end

20 thereof the following new item:

‘‘Sec. 9512. Disaster Relief Trust Fund.’’

21 SEC. 3. INCREASE IN TAXES ON MOTOR FUELS FOR DISAS22 TER RELIEF TRUST FUND.

23 (a) GASOLINE.—
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1 (1) IN GENERAL.—Subparagraph (A) of section

2 4081(a)(2) of the Internal Revenue Code of 1986

3 (relating to rate of tax) is amended—

4 (A) by striking ‘‘and’’ at the end of clause

5 (ii),

6 (B) by striking the period at the end of

7 clause (iii) and inserting ‘‘, and’’, and

8 (C) by adding at the end thereof the fol9 lowing new clause:

10 ‘‘(iv) the Disaster Relief Trust Fund

11 financing rate.’’

12 (2) RATES OF TAX.—Subparagraph (B) of sec13 tion 4081(a)(2) of such Code is amended—

14 (A) by striking ‘‘and’’ at the end of clause

15 (ii),

16 (B) by striking the period at the end of

17 clause (iii) and inserting ‘‘, and’’, and

18 (C) by adding at the end thereof the fol19 lowing new clause:

20 ‘‘(iv) the Disaster Relief Trust Fund

21 financing rate is 2 cents a gallon.’’

22 (3) GASOLINE USED IN NONCOMMERCIAL AVIA23 TION.—Paragraph (3) of section 4041(c) of such

24 Code is amended by striking ‘‘15 cents a gallon’’

25 and inserting ‘‘the sum of 15 cents per gallon plus
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1 the Disaster Relief Trust Fund financing rate (if

2 any) in effect under section 4081’’.

3 (b) DIESEL FUEL.—

4 (1) Clause (i) of section 4091(b)(1)(A) of such

5 Code is amended by striking ‘‘and the diesel fuel

6 deficit reduction rate’’ and inserting ‘‘, the diesel

7 fuel deficit reduction rate, and the Disaster Relief

8 Trust Fund financing rate’’.

9 (2) Subsection (b) of section 4091 of such Code

10 is amended by redesignating paragraphs (5) and (6)

11 as paragraphs (6) and (7), respectively, and by in12 serting after paragraph (4) the following new para13 graph:

14 ‘‘(5) DISASTER RELIEF TRUST FUND FINANC15 ING RATE.—For purposes of paragraph (1), except

16 as provided in subsection (c), the Disaster Relief

17 Trust Fund financing rate is the Disaster Relief

18 Trust Fund financing rate (if any) in effect under

19 section 4081.’’

20 (3)(A) Subparagraph (A) of section 4093(c)(2)

21 of such Code is amended—

22 (i) by inserting ‘‘AND DISASTER RELIEF

23 TAXES’’ after ‘‘TAXES’’ in the heading, and
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1 (ii) by inserting ‘‘and the Disaster Relief

2 Trust Fund financing rate’’ after ‘‘financing

3 rate’’.

4 (B) Paragraph (3) of section 6427(l) of such

5 Code is amended—

6 (i) by inserting ‘‘AND DISASTER RELIEF

7 TAX’’ after ‘‘TAX’’ in the heading, and

8 (ii) by inserting ‘‘and the Disaster Relief

9 Trust Fund financing rate’’ after ‘‘financing

10 rate’’.

11 (c) AVIATION FUEL.—Clause (ii) of section

12 4091(b)(1)(A) of such Code is amended by inserting ‘‘and

13 the Disaster Relief Trust Fund financing rate’’ after ‘‘fi14 nancing rate’’.

15 (d) SPECIAL MOTOR FUELS.—The last sentence of

16 paragraph (2) of section 4041(a) of such Code is amended

17 by striking ‘‘and the deficit reduction rate’’ and inserting

18 ‘‘, the deficit reduction rate, and the Disaster Relief Trust

19 Fund financing rate’’.

20 (e) SUSPENSION OF TAXES IF DISASTER RELIEF

21 TRUST FUND ADEQUATELY FUNDED.—Subsection (d) of

22 section 4081 of such Code is amended by adding at the

23 end thereof the following new paragraph:

24 ‘‘(4) DISASTER RELIEF TRUST FUND FINANC25 ING RATE.—The Disaster Relief Trust Fund financ-
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1 ing rate under subsection (a)(2) shall not apply dur2 ing any calendar year if the Secretary estimates that

3 as of the close of the preceding calendar year the

4 unobligated balance in the Disaster Relief Trust

5 Fund will exceed an amount equal to 300 percent of

6 the annual average of the aggregate expenditures

7 under the programs referred to in a paragraph of

8 section 9512(c) during the 10-year period ending

9 with such preceding calendar year.’’

10 (f) EFFECTIVE DATE.—The amendments made by

11 this section shall take effect on January 1, 1994.

12 SEC. 4. DISASTER RELIEF SURTAXES.

13 (a) GENERAL RULE.—Subchapter A of chapter 1 of

14 the Internal Revenue Code of 1986 (relating to determina15 tion of tax liability) is amended by adding at the end

16 thereof the following new part:

17 ‘‘PART VIII—TAX SURCHARGE FOR DISASTER

18 RELIEF

‘‘Subpart A. Noncorporate taxpayers.

‘‘Subpart B. Corporate taxpayers.

‘‘Subpart C. General provisions.

19 ‘‘Subpart A—Noncorporate Taxpayers

‘‘Sec. 59B. Imposition of surtax.

20 ‘‘SEC. 59B. IMPOSITION OF SURTAX.

21 ‘‘(a) REGULAR TAX.—In the case of an individual,

22 the amount of the tax imposed under section 1 for any

23 taxable year shall be increased by the surtax percentage
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1 of the tax imposed under section 1 for such taxable year

2 (determined without regard to this section).

3 ‘‘(b) MINIMUM TAX.—In the case of an individual,

4 the amount of the tentative minimum tax determined

5 under section 55 for any taxable year shall be increased

6 by the surtax percentage of the tentative minimum tax for

7 such taxable year (determined without regard to this sec8 tion).

9 ‘‘(c) SURTAX TO APPLY TO ESTATES AND TRUSTS.—

10 For purposes of this section, the term ‘individual’ includes

11 any estate or trust taxable under section 1.

12 ‘‘(d) COORDINATION WITH OTHER PROVISIONS.—

13 The provisions of this section—

14 ‘‘(1) shall be applied after the application of

15 section 1(h), but

16 ‘‘(2) before the application of any other provi17 sion of this title which refers to the amount of the

18 tax imposed by section 1 or 55, as the case may be.

19 ‘‘Subpart B—Corporate Taxpayers

‘‘Sec. 59C. Imposition of surtax.

20 ‘‘SEC. 59C. IMPOSITION OF SURTAX.

21 ‘‘(a) NORMAL CORPORATE TAX.—

22 ‘‘(1) IN GENERAL.—In the case of a corpora23 tion, the amount of the tax imposed under section

24 11 for any taxable year shall be increased by the
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1 surtax percentage of the amount of the tax imposed

2 under section 11 for such taxable year (determined

3 without regard to this section).

4 ‘‘(2) TREATMENT OF CERTAIN TAXES.—For

5 purposes of paragraph (1), a tax shall be treated as

6 imposed under section 11 if the amount of such tax

7 is determined by reference to the provisions of sec8 tion 11 (or by reference to any rate contained there9 in).

10 ‘‘(b) MINIMUM TAX.—In the case of a corporation,

11 the amount of the tentative minimum tax determined

12 under section 55 for any taxable year shall be increased

13 by the surtax percentage of the amount of the tentative

14 minimum tax for such taxable year (determined without

15 regard to this section).

16 ‘‘(c) COORDINATION WITH OTHER PROVISIONS.—

17 The provisions of this section shall be applied—

18 ‘‘(1) after the application of section 1201 and

19 801(a)(2), but

20 ‘‘(2) before the application of any other provi21 sion of this title which refers to the amount of tax

22 imposed by section 11 or 55, as the case may be.

23 ‘‘Subpart C—General Provisions

‘‘Sec. 59D. Termination; definitions and special rules.
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1 ‘‘SEC. 59D. TERMINATION; DEFINITIONS AND SPECIAL

2 RULES.

3 ‘‘(a) TERMINATION.—The taxes imposed by this part

4 shall not apply to any taxable year beginning in a calendar

5 year during which the Disaster Relief Trust Fund financ6 ing rate under section 4081 does not apply.

7 ‘‘(b) SURTAX PERCENTAGE.—For purposes of this

8 part, the term ‘surtax percentage’ means, with respect to

9 taxable years beginning in a calendar year, the percentage

10 determined by the Secretary for such calendar year which

11 the Secretary estimates will, when added to all other pro12 jected sources of revenue for the trust fund, provide the

13 Disaster Relief Trust Fund from taxable years beginning

14 in such calendar year with $4,000,000,000 in revenue.

15 ‘‘(c) SECTION 15 NOT TO APPLY.—Section 15 shall

16 not apply to any change in rates under this part.

17 ‘‘(d) ADJUSTMENT TO APPLICATION OF CERTAIN

18 PROVISIONS.—

19 ‘‘(1) DIVIDENDS PAID ON CERTAIN PREFERRED

20 STOCK.—In computing for a taxable year of a cor21 poration the fractions described in sections

22 244(a)(2) and 247(a)(2), the denominator shall,

23 under regulations prescribed by the Secretary, be in24 creased to reflect the provisions of this part.

25 ‘‘(2) SHAREHOLDERS OF REGULATED INVEST26 MENT COMPANIES.—In computing the adjustment to
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1 basis described in section 852(b)(3)(D)(iii), the per2 centage set forth therein shall be adjusted, under

3 regulations prescribed by the Secretary, to reflect

4 the provisions of this part.’’

5 (b) CLERICAL AMENDMENT.—The table of parts for

6 subchapter A of chapter 1 of such Code is amended by

7 adding at the end thereof the following new item:

‘‘Part VIII. Tax surcharge for disaster relief.’’

8 (c) EFFECTIVE DATE.—The amendments made by

9 this section shall apply to taxable years beginning after

10 December 31, 1993.

11 SEC. 5. TRANSFER OF FUNDS OF THE COMMODITY CREDIT

12 CORPORATION TO THE DISASTER RELIEF

13 TRUST FUND.

14 (a) SURPLUS CROP LOSS ASSISTANCE.—

15 (1) TRANSFER REQUIRED.—From funds appro16 priated or otherwise made available to provide emer17 gency crop loss assistance during a fiscal year pur18 suant the terms and conditions contained in chapter

19 3 of subtitle B of title XXII of the Food, Agri20 culture, Conservation, and Trade Act of 1990 (Pub21 lic Law 101–624; 7 U.S.C. 1421 note) or any suc22 cessor to such chapter, the Secretary of Agriculture

23 shall transfer to the Disaster Relief Trust Fund es24 tablished in section 9512 of the Internal Revenue

25 Code of 1986 all such funds that are unobligated at
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1 the end of that fiscal year and that the Secretary de2 termines are not required to complete operations of

3 the crop loss assistance program for that fiscal year.

4 (2) TIME FOR TRANSFER.—The Secretary shall

5 make any transfer required by this subsection as

6 soon as possible after the end of the fiscal year in7 volved.

8 (b) SURPLUS PRICE SUPPORT FUNDS.—

9 (1) TRANSFER REQUIRED.—If the Secretary of

10 Agriculture determines that expenditures to provide

11 price support for an agricultural commodity under

12 the Agricultural Act of 1949 (7 U.S.C. 1421 et seq.)

13 for a fiscal year are reduced as a consequence of an

14 increase in the price of the commodity directly relat15 ed to crop losses resulting from damaging weather

16 or other disaster, the Secretary shall transfer to the

17 Disaster Relief Trust Fund established in section

18 9512 of the Internal Revenue Code of 1986 an

19 amount equal to—

20 (A) the difference between the price sup21 port expenditures that the Secretary estimates

22 would otherwise have been made with respect to

23 that commodity during that fiscal year in the

24 absence of such price increase; and
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1 (B) the amount of the expenditures actu2 ally made with respect to that commodity.

3 (2) TIME FOR DETERMINATION.—The Sec4 retary shall make a determination under this sub5 section for an agricultural commodity whenever the

6 Secretary provides crop loss assistance with respect

7 to that commodity pursuant to the terms and condi8 tions contained in chapter 3 of subtitle B of title

9 XXII of the Food, Agriculture, Conservation, and

10 Trade Act of 1990 (Public Law 101–624; 7 U.S.C.

11 1421 note) or any successor to such chapter.

12 (3) TIME FOR TRANSFER.—The Secretary shall

13 make any transfer required by this subsection as

14 soon as possible after the end of the fiscal year in15 volved.

16 (c) LIMITATION ON TRANSFERS.—No amount may

17 be transferred under this section to the extent such trans18 fer would increase the unobligated balance in the Disaster

19 Relief Trust Fund to an amount in excess of the limitation

20 of section 4081(d)(4) of the Internal Revenue Code of

21 1986.

22 SEC. 6. REPORT TO CONGRESS.

23 (a) IN GENERAL.—Not later than 1 year after the

24 date of the enactment of this Act, the Director of the Fed25 eral Emergency Management Agency shall transmit to
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1 Congress a report on insurance programs which provide

2 coverage for losses due to disasters of the types that have

3 been the subject of Presidential disaster declarations in

4 the last 25 years.

5 (b) CONTENTS.—The report to be transmitted under

6 subsection (a) shall contain the following:

7 (1) A description of Federal and private insur8 ance programs which provide coverage for losses due

9 to such disasters.

10 (2) A description of the availability of insurance

11 under such programs.

12 (3) An analysis of the need for additional insur13 ance programs to provide coverage for losses due to

14 disasters and recommendations on what role, if any,

15 the Federal Government should perform in establish16 ing and maintaining such insurance.

17 (4) An analysis of the effect of establishing

18 such additional insurance programs on revenue lev19 els required for maintenance of the Disaster Trust

20 Fund.

21 (5) Recommendations for legislative and admin22 istrative programs to reduce losses due to disasters,

23 including the anticipated cost and effectiveness of

24 such programs.
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