I 

112TH CONGRESS 

1ST SESSION H. R. 2230 

To amend the Internal Revenue Code of 1986 to regulate and tax Internet 

gambling. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 16, 2011 

Mr. MCDERMOTT (for himself, Mr. CAMPBELL, and Mr. FRANK of Massachusetts) introduced the following bill; which was referred to the Committee 

on Ways and Means, and in addition to the Committee on Education and 

the Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To amend the Internal Revenue Code of 1986 to regulate 

and tax Internet gambling. 

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; AMENDMENT OF 1986 CODE. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Internet Gambling Regulation and Tax Enforcement Act 

6 of 2011’’. 

7 (b) AMENDMENT OF 1986 CODE.—Except as other8 wise expressly provided, whenever in this Act an amendVerDate Mar 15 2010 03:14 Jun 21, 2011 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H2230.IH H2230

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1 ment is expressed in terms of an amendment of a section 

2 or other provision, the reference shall be considered to be 

3 made to a section or other provision of the Internal Rev4 enue Code of 1986. 

5 SEC. 2. TAX ON INTERNET GAMBLING. 

6 (a) IN GENERAL.—Chapter 36 (relating to certain 

7 other excise taxes) is amended by adding at the end the 

8 following new subchapter: 

9 ‘‘Subchapter E—Internet Gambling 

‘‘Sec. 4491. Imposition of Internet gambling license tax. 

‘‘Sec. 4492. Record requirements. 

‘‘Sec. 4493. Elective State and Indian tribal government online gambling tax. 

‘‘Sec. 4494. Regulations. 

10 ‘‘SEC. 4491. IMPOSITION OF INTERNET GAMBLING LICENSE 

11 TAX. 

12 ‘‘(a) INTERNET GAMBLING LICENSEE.— 

13 ‘‘(1) IN GENERAL.—There is hereby imposed a 

14 tax on each Internet gambling licensee in an amount 

15 equal to 2 percent of all funds deposited by cus16 tomers during the preceding month into an account 

17 maintained by that Internet gambling licensee or 

18 any agent of that licensee that can be used for the 

19 purpose of placing a bet or wager as defined in sec20 tion 5362(1) of title 31, United States Code. 

21 ‘‘(2) PERSONS LIABLE FOR TAX.—The tax im22 posed by subsection (a) shall be the direct and exclu23 sive obligation of the Internet gambling operator and 


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1 may not be deducted from the amounts available as 

2 deposits to the person placing a bet. Notwith3 standing the preceding sentence, any person making 

4 a deposit for the purpose of placing a bet or wager 

5 with a person who is required but has failed to ob6 tain a license pursuant to subchapter V of chapter 

7 53 of title 31, United States Code, shall be liable for 

8 and pay the tax under this subchapter on all such 

9 deposits, but such liability shall not excuse any fail10 ure to pay the tax on the part of the person who is 

11 required but has failed to obtain such license. The 

12 person making the deposit shall not be liable for the 

13 tax on deposits in cases of fraud. 

14 ‘‘(b) UNAUTHORIZED BETS OR WAGERS.— 

15 ‘‘(1) IN GENERAL.—There is hereby imposed a 

16 tax on any person that is not authorized pursuant 

17 to section 5383(b) of title 31, United States Code, 

18 to accept bets and wagers. 

19 ‘‘(2) AMOUNT OF TAX.—The amount of such 

20 tax shall be equal to 50 percent of all funds depos21 ited into an account that can be used for placing a 

22 bet or wager within the meaning of section 5362(1) 

23 of that title. 


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1 ‘‘(c) WHEN DUE.—The tax imposed by this section 

2 shall be due at by the end of each calendar month with 

3 respect to deposits during the preceding month. 

4 ‘‘(d) DEFINITIONS AND SPECIAL RULES.—For pur5 poses of this section— 

6 ‘‘(1) INTERNET GAMBLING LICENSEE.—The 

7 term ‘Internet gambling licensee’ means a licensee, 

8 as defined in section 5382 of title 31, United States 

9 Code. 

10 ‘‘(2) DEPOSITS.—Deposits made by or on be11 half of an Internet gambling licensee of Internet 

12 gambling winnings or returns of funds by or on be13 half of an Internet gambling licensee to the account 

14 of a customer shall not be treated as a deposit for 

15 purposes of this section. 

16 ‘‘SEC. 4492. RECORD REQUIREMENTS. 

17 ‘‘Each person liable for taxes under this subchapter, 

18 except for a person making a deposit who is liable for 

19 taxes pursuant to section 4491(a)(2), shall keep a daily 

20 record showing deposits (within the meaning of this sub21 chapter), in addition to all other records required pursuant 

22 to section 6001. 

23 ‘‘SEC. 4493. ELECTIVE STATE AND INDIAN TRIBAL GOVERN24 MENT ONLINE GAMBLING TAX. 

25 ‘‘(a) IN GENERAL.— 


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1 ‘‘(1) PAYMENT OF STATE AND INDIAN TRIBAL

2 GOVERNMENT TAX.—On a monthly basis, each 

3 Internet gambling licensee shall pay to each quali4 fied State and each qualified Indian tribal govern5 ment an amount equal to the monthly pro rata State 

6 and Indian tribal government online gambling tax. 

7 ‘‘(2) MONTHLY PRO RATA ONLINE GAMBLING

8 TAX.—For purposes of this section, with respect to 

9 a qualified State and a qualified Indian tribal gov10 ernment for any calendar month, the monthly pro 

11 rata online gambling tax is the amount of the taxes 

12 described in subsection (b) received with respect to 

13 such calendar month. 

14 ‘‘(3) QUALIFIED STATE; QUALIFIED INDIAN

15 TRIBAL GOVERNMENT.— 

16 ‘‘(A) IN GENERAL.—For purposes of this 

17 section, the terms ‘qualified State’ and ‘quali18 fied Indian tribal government’ mean a State or 

19 an Indian tribal government, respectively, for 

20 which an election to receive funds under this 

21 section is in effect. Notice of such election shall 

22 be provided by the Governor, principal chief, or 

23 other chief executive officer in such form and 

24 manner as the Secretary may prescribe. 


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1 ‘‘(B) STATE ELECTION NOT TO AFFECT

2 TRIBAL ELECTION.—An election by a State 

3 under subparagraph (A) to receive funds under 

4 this section shall not constitute an election to 

5 be so included on behalf of any Indian tribe lo6 cated within or partially within the geographic 

7 boundaries of such State. 

8 ‘‘(C) REVOCATION OF STATE OR TRIBAL

9 ELECTION.— 

10 ‘‘(i) IN GENERAL.—A State or Indian 

11 Tribal government may revoke its election 

12 by notice provided by the Governor, prin13 cipal chief, or other chief executive officer 

14 and in such form and manner as the Sec15 retary may prescribe. 

16 ‘‘(ii) TIMING OF REVOCATION.—Rev17 ocation of state election shall take effect 

18 the later of 6 months after receipt by the 

19 Secretary of such revocation, or on Janu20 ary 1st of the year following receipt by the 

21 Secretary of such revocation. 

22 ‘‘(D) STATE.—The term ‘State’ means any 

23 State, the District of Columbia, or any com24 monwealth, territory or other possession of the 

25 United States. 


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1 ‘‘(E) INDIAN TRIBAL GOVERNMENT.—The 

2 term ‘Indian tribal government’ means the gov3 ernment of an Indian tribe (within the meaning 

4 of section 4 of the Indian Gaming Regulatory 

5 Act). 

6 ‘‘(4) TIME OF PAYMENTS.—The payment made 

7 under this subsection with respect to any calendar 

8 month shall be made not later than the 11th day of 

9 the succeeding calendar month. 

10 ‘‘(5) LIST OF QUALIFIED STATES AND QUALI11 FIED INDIAN TRIBAL GOVERNMENTS.—The Sec12 retary shall maintain a current list of qualified 

13 States and qualified Indian tribal governments and 

14 shall publish such list online. 

15 ‘‘(b) STATE AND INDIAN TRIBAL GOVERNMENT ON16 LINE GAMBLING TAX.—The State and Indian tribal gov17 ernment online gambling tax shall be an amount equal to 

18 6 percent of all deposited funds deposited by customers 

19 located in each qualified state or area subject to the juris20 diction of a qualified Indian tribal government at the time 

21 of the deposit. 

22 ‘‘(c) EFFECT OF ACCEPTANCE OF TAX.—Acceptance 

23 by a State or Indian tribal government of the State and 

24 Indian tribal government online gambling tax shall relieve 

25 Internet gambling licensees from the obligation to pay any 


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1 other fee or tax to the State or Indian tribal government 

2 relating to its online gambling services, except for— 

3 ‘‘(1) applicable State individual and corporate 

4 income taxes, which shall be unaffected by the elec5 tion, and 

6 ‘‘(2) any fees associated with an Internet gam7 bling licensee’s choice to rely on a State or Indian 

8 tribal regulatory body certification of suitability in 

9 connection with a Federal online gambling licensing 

10 application. 

11 ‘‘SEC. 4494. REGULATIONS. 

12 ‘‘The Secretary shall prescribe such regulations as 

13 may be necessary or appropriate to carry out this sub14 chapter.’’. 

15 (b) CLERICAL AMENDMENT.—The table of sub16 chapters for chapter 36 is amended by adding at the end 

17 the following new item: 

‘‘SUBCHAPTER E. INTERNET GAMBLING.’’. 

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

19 this section shall apply to bets or wagers placed after the 

20 date of the enactment of this Act. 

21 SEC. 3. INTERNET GAMBLING LICENSEE INFORMATION RE22 PORTING. 

23 (a) IN GENERAL.—Subpart A of part III of sub24 chapter A of chapter 61 (relating to information conVerDate Mar 15 2010 03:14 Jun 21, 2011 Jkt 099200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H2230.IH H2230

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1 cerning persons subject to special provisions) is amended 

2 by adding at the end the following new section: 

3 ‘‘SEC. 6050X. RETURNS RELATING TO INTERNET GAMBLING. 

4 ‘‘(a) REQUIREMENT.—Every person who is an Inter5 net gambling licensee or who otherwise is engaged in the 

6 business of accepting any bet or wager within the meaning 

7 of section 5362(1) of title 31, United States Code, during 

8 a taxable year shall furnish, at such time and in such man9 ner as the Secretary shall by regulations prescribe, the in10 formation described in subsection (b), and such person 

11 shall maintain (in the location, in the manner, and to the 

12 extent prescribed in regulations) such records as may be 

13 appropriate to the information described in subsection (b). 

14 ‘‘(b) REQUIRED INFORMATION.—For purposes of 

15 subsection (a), the information described is set forth 

16 below, which information may be modified as appropriate 

17 by the Secretary through regulation— 

18 ‘‘(1) the name, address, and TIN of the Inter19 net gambling licensee or other person engaged in the 

20 business of accepting any bet or wager, 

21 ‘‘(2) the name, address, and TIN of each per22 son placing a bet or wager with the Internet gam23 bling licensee or other person engaged in the busi24 ness of accepting any bet or wager during the cal25 endar year, 


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1 ‘‘(3) the gross winnings, gross wagers, and 

2 gross losses for the calendar year of each person 

3 placing a bet or wager with the Internet gambling 

4 licensee or other person engaged in the business of 

5 accepting any bet or wager during the year, 

6 ‘‘(4) the net Internet gambling winnings for 

7 each such person for the calendar year, 

8 ‘‘(5) the amount of tax withheld with respect to 

9 each such person for the calendar year, 

10 ‘‘(6) beginning and end-of-year account bal11 ances for each such person for the calendar year, 

12 and 

13 ‘‘(7) amounts deposited and withdrawn by each 

14 such person during the calendar year. 

15 ‘‘(c) STATEMENT TO BE FURNISHED TO PERSONS

16 WITH RESPECT TO WHOM INFORMATION IS REQUIRED.— 

17 Every person required to make a return under subsection 

18 (a) shall furnish to each person whose name is required 

19 to be set forth in such return by reason of placing a bet 

20 or wager a written statement showing— 

21 ‘‘(1) the name, address, and phone number of 

22 the information contact of the person required to 

23 make such return, and 


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1 ‘‘(2) the information required to be shown on 

2 such return with respect to each person whose name 

3 is required to be set forth in such return. 

4 The written statement required under the preceding sen5 tence shall be furnished to the person on or before Janu6 ary 31 of the year following the calendar year for which 

7 the return under subsection (a) was required to be made. 

8 ‘‘(d) DEFINITIONS.— 

9 ‘‘(1) INTERNET GAMBLING LICENSEE.—The 

10 term ‘Internet gambling licensee’ has the meaning 

11 given such term by section 4491(d)(1). 

12 ‘‘(2) NET INTERNET GAMBLING WINNINGS.— 

13 The term ‘net Internet gambling winnings’ means 

14 gross winnings from wagers placed over the Internet 

15 with a person required to be licensed under section 

16 5382 of chapter 53 of title 31, United States Code, 

17 less the amounts wagered. 

18 ‘‘(3) INTERNET; WAGER.—The terms ‘Internet’ 

19 and ‘wager’ shall have the respective meanings given 

20 such terms by section 5362 of chapter 53 of title 31, 

21 United States Code.’’. 

22 (b) The table of sections for subpart B of part III 

23 of subchapter A of chapter 61 is amended by inserting 

24 after the item relating to section 6050W the following new 

25 item: 

‘‘Sec. 6050X. Returns relating to internet gambling.’’. 


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1 SEC. 4. WITHHOLDING FROM CERTAIN GAMBLING 

2 WINNINGS. 

3 (a) NET INTERNET GAMBLING WINNINGS.—Para4 graph (3) of section 3406(b) (relating to other reportable 

5 payments for purposes of backup withholding) is amend6 ed— 

7 (1) by striking ‘‘or’’ in subparagraph (E); 

8 (2) by striking ‘‘.’’ and inserting ‘‘, or’’ at the 

9 end of subparagraph (F); and 

10 (3) by adding at the end thereof the following 

11 new subparagraph: 

12 ‘‘(G) section 6050X(b)(4) (relating to net 

13 Internet gambling winnings).’’. 

14 (b) EFFECTIVE DATE.—The amendment made by 

15 this section shall apply to bets or wagers placed after the 

16 date of the enactment of this Act. 

17 SEC. 5. WITHHOLDING OF TAX ON NONRESIDENT ALIENS. 

18 (a) TAX ON NONRESIDENT ALIEN INDIVIDUALS.— 

19 Paragraph (1) of section 871(a) (relating to income not 

20 connected with United States business) is amended— 

21 (1) by striking ‘‘and’’ at the end of subpara22 graph (C), 

23 (2) by inserting ‘‘and’’ at the end of subpara24 graph (D), and 

25 (3) by inserting after subparagraph (D) the fol26 lowing new subparagraph: 


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1 ‘‘(E) the gross amount of winnings from 

2 each wager placed over the Internet with a per3 son required to be licensed under section 5382 

4 of chapter 53 of title 31, United States Code 

5 (as such terms are defined in section 

6 6050X(d)(2)),’’. 

7 (b) EXEMPTION FOR CERTAIN GAMBLING

8 WINNINGS.—Section 871(j) (relating to exemption for cer9 tain gambling winnings) is amended by inserting before 

10 the period at the end the following: ‘‘or to any bets or 

11 wagers placed over the Internet (as such terms are defined 

12 in section 6050X(d)(2))’’. 

13 (c) WITHHOLDING OF TAX ON NONRESIDENT ALIEN

14 INDIVIDUALS.—The first sentence of subsection (b) of sec15 tion 1441 (relating to withholding of tax on nonresident 

16 aliens) is amended by inserting after ‘‘gains subject to tax 

17 under section 871(a)(1)(D),’’ the following: ‘‘the gross 

18 amount of winnings from wagers placed over the Internet 

19 described in section 871(a)(1)(E),’’. 

20 (d) SOURCE OF INTERNET GAMBLING WINNINGS.— 

21 Subsection (a) of section 861 is amending by inserting at 

22 the end thereof the following new paragraph: 

23 ‘‘(10) INTERNET GAMBLING WINNINGS.—Any 

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1 net gambling licensee (as defined by section 

2 4491(d)(1)).’’. 

3 (e) EFFECTIVE DATE.—The amendments made by 

4 this section shall apply to bets or wagers placed after the 

5 date of the enactment of this Act. 

6 SEC. 6. WAGER TAX APPLICABLE TO FEDERAL ONLINE 

7 GAMBLING ACTIVITIES. 

8 (a) IN GENERAL.—Subsection (a) of section 4401 is 

9 amended to read as follows: 

10 ‘‘(a) WAGERS.— 

11 ‘‘(1) AUTHORIZED WAGERS.—There shall be 

12 imposed on any wager authorized under Federal law 

13 or the law of the State in which accepted an excise 

14 tax equal to 0.25 percent of the amount of such 

15 wager. 

16 ‘‘(2) UNAUTHORIZED WAGERS.—There shall be 

17 imposed on any wager not described in paragraph 

18 (1) an excise tax equal to 2 percent of the amount 

19 of such wager.’’. 

20 (b) EFFECTIVE DATE.—The amendment made by 

21 subsection (a) shall apply to wagers made after the date 

22 on which subchapter V of chapter 53 of title 31, United 

23 States Code, first applies. 


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1 SEC. 7. NO EXCLUSIONS UNDER FEDERAL WAGER TAX FOR 

2 ONLINE GAMBLING ACTIVITIES. 

3 (a) IN GENERAL.—Section 4402 is amended to read 

4 as follows: 

5 ‘‘SEC. 4402. EXEMPTIONS. 

6 ‘‘(a) IN GENERAL.—No tax shall be imposed by this 

7 subchapter— 

8 ‘‘(1) on any wager placed with, or on any wager 

9 placed in a wagering pool conducted by, a pari10 mutuel wagering enterprise licensed under State law 

11 and that is not carried out online; 

12 ‘‘(2) on any wager placed in a coin-operated de13 vice (as defined in section 4462 as in effect for years 

14 beginning before July 1, 1980), or on any amount 

15 paid, in lieu of inserting a coin, token, or similar ob16 ject, to operate a device described in section 4462 

17 (a)(2) (as so in effect), and that is not carried out 

18 online; or 

19 ‘‘(3) on any wager placed in a sweepstakes, wa20 gering pool, or lottery which is conducted by an 

21 agency of a State acting under authority of State 

22 law, but only if such wager is placed with the State 

23 agency conducting such sweepstakes, wagering pool, 

24 or lottery, or with its authorized employees or 

25 agents. 


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1 ‘‘(b) ONLINE GAMBLING ACTIVITIES.—Notwith2 standing the exemption listed in subsection (a)(3), all on3 line gambling activities conducted pursuant to a Federal 

4 license shall be subject to the wagering tax set forth in 

5 section 4401.’’. 

6 (b) EFFECTIVE DATE.—The amendment made by 

7 subsection (a) shall apply to wagers made after December 

8 31, 2010. 

9 SEC. 8. TERRITORIAL EXTENT. 

10 (a) IN GENERAL.—Paragraph (2) of section 4404 is 

11 amended to read as follows: 

12 ‘‘(2) placed within the United States, or any 

13 Commonwealth, territory, or possession thereof, by a 

14 person who is a United States citizen or resident.’’. 

15 (b) EFFECTIVE DATE.—The amendment made by 

16 subsection (a) shall apply to wagers made after December 

17 31, 2010. 

18 SEC. 9. AMERICAN HERITAGE PROGRAM. 

19 (a) IMPLEMENTATION OF PROGRAM.—From funds 

20 appropriated to the American Heritage Block Grant Fund 

21 for a fiscal year, the Secretary of the Treasury shall make 

22 grants to eligible States to carry out an American Herit23 age Program through State arts agencies. 

24 (b) ALLOTMENT OF FUNDS.—Funds allotted for a 

25 fiscal year shall be allotted among eligible States in the 


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1 same proportion as funds are allotted among the States 

2 under section 5(g)(3) of the National Foundation on the 

3 Arts and the Humanities Act of 1965 (20 U.S.C. 

4 954(g)(3)). 

5 (c) ELIGIBILITY TO RECEIVE GRANTS.—To be eligi6 ble to receive a grant under subsection (a) for a fiscal 

7 year, a State shall submit to the Secretary an application 

8 in such form, and containing such information and assur9 ances, as the Secretary may require by rule, including as10 surances that— 

11 (1) not more than 80 percent of the cost of any 

12 qualified activity carried out under this section shall 

13 be paid with such grant, and 

14 (2) not more that 20 percent of such grant may 

15 be expended for administrative costs. 

16 (d) DEFINITIONS.—For purposes of this section— 

17 (1) the term ‘‘American Heritage Program’’ 

18 means a program carried out by a State that pro19 vides qualified activities directly, or by contract with 

20 nonprofit organizations (including community-based 

21 organizations) or units of local government, for all 

22 the people and communities in the State, 

23 (2) the term ‘‘Secretary’’ means the Secretary 

24 of the Treasury, 


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1 (3) the term ‘‘State’’ has the meaning given 

2 such term in section 4 of the National Foundation 

3 on the Arts and the Humanities Act of 1965 (20 

4 U.S.C. 953), 

5 (4) the term ‘‘State arts agency’’ has the same 

6 meaning given such term as used in the National 

7 Foundation on the Arts and the Humanities Act of 

8 1965 (20 U.S.C. 951 et seq.), and 

9 (5) the term ‘‘qualified activities’’ means activi10 ties that develop projects, productions, workshops, or 

11 programs that will encourage public knowledge, edu12 cation, understanding, and appreciation of American 

13 heritage and the arts. 

14 (e) AMERICAN HERITAGE BLOCK GRANT FUND.— 

15 (1) ESTABLISHMENT.—There is established in 

16 the Treasury of the United States a trust fund to 

17 be known as the ‘‘American Heritage Block Grant 

18 Fund’’, consisting of such amounts as may be appro19 priated or credited to the American Heritage Block 

20 Grant Fund as provided in this subsection. 

21 (2) TRANSFER TO FUND.—There are appro22 priated to the American Heritage Block Grant Fund 

23 amounts equal to .5 percent of the taxes received by 

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1 retary determines are attributable to Internet gam2 bling. 

3 (3) METHOD OF TRANSFER.—The amounts ap4 propriated by paragraph (1) shall be transferred 

5 from time to time from the general fund of the 

6 Treasury. Such amounts shall be determined on the 

7 basis of estimates by the Secretary of the taxes, 

8 specified in paragraph (1), paid to or deposited into 

9 the Treasury. Proper adjustments shall be made in 

10 amounts subsequently transferred to the extent prior 

11 estimates are in excess of or are less than the taxes 

12 specified in paragraph (1). 

13 (4) EXPENDITURES FROM AMERICAN HERITAGE

14 BLOCK GRANT FUND.—Amounts in the American 

15 Heritage Block Grant Fund shall be available, as 

16 provided by appropriation Acts, for making expendi17 tures to carry out subsection (a). 

18 SEC. 10. BLOCK GRANTS TO STATES FOR TRANSITIONAL 

19 ASSISTANCE. 

20 The Social Security Act is amended by adding at the 

21 end the following new title: 


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1 ‘‘TITLE XXII—BLOCK GRANTS TO 

2 STATES FOR TRANSITIONAL 

3 ASSISTANCE 

4 ‘‘SEC. 2201. TRANSITIONAL ASSISTANCE TRUST FUND. 

5 ‘‘(a) CREATION OF TRUST FUND.—There is estab6 lished in the Treasury of the United States a trust fund 

7 to be known as the ‘‘Transitional Assistance Trust Fund’’, 

8 consisting of such amounts as may be appropriated or 

9 credited to the Transitional Assistance Trust Fund as pro10 vided in this section. 

11 ‘‘(b) TRANSFER TO TRANSITIONAL ASSISTANCE

12 TRUST FUND OF AMOUNTS EQUIVALENT TO CERTAIN

13 TAXES.— 

14 ‘‘(1) IN GENERAL.—There are hereby appro15 priated to the Transitional Assistance Trust Fund, 

16 out of any money in the Treasury not otherwise ap17 propriated, amounts equivalent to 25 percent of the 

18 taxes received in the Treasury after December 31, 

19 2010, that the Secretary of the Treasury determines 

20 are attributable to Internet gambling. 

21 ‘‘(2) METHOD OF TRANSFER.—The amounts 

22 appropriated by paragraph (1) shall be transferred 

23 from time to time from the general fund in the 

24 Treasury to the Transitional Assistance Trust Fund. 

25 Such amounts shall be determined on the basis of 


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1 estimates by the Secretary of the Treasury of the 

2 taxes, specified in paragraph (1) of this subsection, 

3 paid to or deposited into the Treasury. Proper ad4 justments shall be made in amounts subsequently 

5 transferred to the extent prior estimates were in ex6 cess of or were less than the taxes specified in para7 graph (1) of this subsection. 

8 ‘‘(c) EXPENDITURES FROM TRANSITIONAL ASSIST9 ANCE TRUST FUND.—Amounts in the Transitional Assist10 ance Trust Fund shall be available, as provided by appro11 priation Acts, for making expenditures to carry out section 

12 2202. 

13 ‘‘SEC. 2202. TRANSITIONAL ASSISTANCE GRANT PROGRAM. 

14 ‘‘(a) IN GENERAL.—Each State shall be entitled to 

15 a payment under this section for each fiscal year in an 

16 amount equal to its allotment for such fiscal year, to be 

17 used by such State to carry out the State’s plan for transi18 tional assistance described in subsection (c), subject to the 

19 requirements of this section. 

20 ‘‘(b) PLAN APPROVAL REQUIRED.—No State may re21 ceive a payment under this section unless the State sub22 mits the State’s plan for transitional assistance described 

23 in subsection (c) to the Secretary and the Secretary ap24 proves such plan. 


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1 ‘‘(c) STATE PLAN FOR TRANSITIONAL ASSIST2 ANCE.—A State plan for transitional assistance is de3 scribed by this subsection if the plan— 

4 ‘‘(1) provides for expanded education opportuni5 ties for individuals who are, or were formerly, in fos6 ter care, including streamlining and coordinating 

7 education financing opportunities and providing 

8 counseling and assistance to such individuals for the 

9 purpose of ensuring completion of their academic 

10 goals; 

11 ‘‘(2) provides for job training opportunities for 

12 individuals who are, or were formerly, in foster care; 

13 ‘‘(3) provides, primarily through expanding ac14 cess to and investment in community colleges, for 

15 expanded post-secondary education and job training 

16 opportunities that lead to a certificate, for individ17 uals who are working in, or had worked in, declining 

18 sectors of the economy, as defined by the Secretary, 

19 and who want to pursue a new career in a sector of 

20 the economy with the potential for high wages and 

21 high growth, as defined by the Secretary; and 

22 ‘‘(4) provides a subsidy for the use of public 

23 transportation by— 


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1 ‘‘(A) individuals qualifying for benefits or 

2 services under title XX, including the Federal3 State Unemployment Insurance Program; and 

4 ‘‘(B) individuals participating in programs 

5 under the Workforce Investment Act. 

6 ‘‘(d) ALLOTMENT.—The allotment for a fiscal year 

7 for a State receiving an allotment for such fiscal year shall 

8 be an amount equal to— 

9 ‘‘(1) the amount appropriated for such fiscal 

10 year under subsection (f), multiplied by 

11 ‘‘(2) the ratio by which the population of the 

12 State bears to the population of all the States receiv13 ing an allotment for such fiscal year as determined 

14 by the Secretary (on the basis of the most recent 

15 data available from the Department of Commerce). 

16 ‘‘(e) DEFINITIONS.—For purposes of this section: 

17 ‘‘(1) IN FOSTER CARE.—The term ‘in foster 

18 care’ means, with respect to an individual, an indi19 vidual who is under the care and placement respon20 sibility of the State agency responsible for admin21 istering a plan, in connection with such individual, 

22 under part B or part E of title IV. 

23 ‘‘(2) SECRETARY.—The term ‘Secretary’ means 

24 the Secretary of Health and Human Services. 


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•HR 2230 IH

1 ‘‘(3) STATE.—The term ‘State’ means the 50 

2 States of the United States, the District of Colum3 bia, the Commonwealth of Puerto Rico, the United 

4 States Virgin Islands, Guam, American Samoa, and 

5 the Northern Mariana Islands. 

6 ‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—There 

7 are authorized to be appropriated for each fiscal year to 

8 the Secretary the amount deposited into the Transitional 

9 Assistance Trust Fund pursuant to section 2201 to carry 

10 out this section.’’. 

Æ 


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