II

103D CONGRESS

2D SESSION S. 2229

To appropriate 2 percent of Federal individual income tax revenues to the

States to fight crime.

IN THE SENATE OF THE UNITED STATES

JUNE 22 (legislative day, JUNE 7), 1994

Mr. WALLOP introduced the following bill; which was read twice and referred

to the Committee on the Judiciary

A BILL

To appropriate 2 percent of Federal individual income tax

revenues to the States to fight crime.

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 ‘‘Tax Rebate to Fight

5 Crime Act’’.

6 SEC. 2. TRUST FUNDS TO FIGHT CRIME.

7 (a) IN GENERAL.—There is hereby appropriated to

8 the Trust Fund To Fight Crime of each State for each

9 fiscal year an amount equal to 2 percent of the net Federal
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1 individual income tax revenues for such fiscal year which

2 are attributable to residents of such State.

3 (b) TRUST FUND TO FIGHT CRIME.—For purposes

4 of this section, the term ‘‘Trust Fund To Fight Crime’’

5 means any trust fund established by State law if the only

6 expenditures permitted to be made from such trust fund

7 are for—

8 (1) paying police officers, including salary, over9 time, and other personnel expenses,

10 (2) building and operating prisons,

11 (3) paying judges of courts handling criminal

12 cases, prosecutors, and public defenders, including

13 salary, overtime, and other personnel expenses, and

14 (4) paying the rebates described in subsection

15 (d) to taxpayers.

16 (c) DEFINITION OF NET FEDERAL INDIVIDUAL IN17 COME TAX REVENUES.—For purposes of this section, the

18 term ‘‘net Federal individual income tax revenues’’ means,

19 with respect to any fiscal year, the excess of—

20 (1) amounts received in the Treasury during

21 such fiscal year from the taxes imposed on individ22 uals under chapters 1 and 24 of the Internal Reve23 nue Code of 1986, over

24 (2) amounts of such taxes which are credited or

25 refunded to taxpayers during such fiscal year.
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1 (d) REBATES FROM STATE GOVERNMENTS TO

2 THEIR TAXPAYERS.—

3 (1) VOLUNTARY REBATES.—Amounts in the

4 Trust Fund To Fight Crime of any State may be re5 bated (with interest) at any time to the individuals

6 whose liabilities under chapters 1 and 24 of the In7 ternal Revenue Code of 1986 were taken into ac8 count in determining the appropriation of the

9 amount to be rebated. The amount rebated to any

10 individual shall be the amount equal to—

11 (A) the amount to be rebated, multiplied

12 by

13 (B) such individual’s proportionate share

14 of such liabilities.

15 (2) MANDATORY REBATES.—

16 (A) IN GENERAL.—Amounts in the Trust

17 Fund To Fight Crime of any State shall be re18 bated if—

19 (i) such amounts are not spent for the

20 purposes referred to in paragraphs (1), (2)

21 and (3) of subsection (b) (or rebated under

22 paragraph (1) of this subsection) within

23 the 3-year period after the close of the fis24 cal year for which such amounts were ap25 propriated to such Trust Fund, or
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1 (ii) such amounts are not spent for

2 such purposes (or rebated under paragraph

3 (1) of this subsection) within the 1-year

4 period after the close of the fiscal year for

5 which such amounts were appropriated to

6 such Trust Fund unless, before the close of

7 such 1-year period, the State has adopted

8 a plan on how to spend such amounts and

has spent at least 1 9 ⁄3 of such amounts for

10 such purposes.

11 In the case of amounts appropriated for the

12 first fiscal year beginning after the date of the

13 enactment of this Act, clause (ii) shall be ap14 plied by substituting ‘‘2-year period’’ for ‘‘1-

15 year period’’ each place it appears.

16 (B) REBATES.—Any amount required to

17 be rebated under this paragraph shall be paid

18 (with interest) to the individuals whose liabil19 ities under chapters 1 and 24 of the Internal

20 Revenue Code of 1986 were taken into account

21 in determining the appropriation of such

22 amount. The amount rebated to any individual

23 shall be the amount equal to—

24 (i) the amount required to be rebated,

25 multiplied by
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1 (ii) such individual’s proportionate

2 share of such liabilities.

3 (3) ORDERING RULES.—For purposes of this

4 subsection, expenditures from any Trust Fund To

5 Fight Crime and rebates shall be treated as being

6 made from deposits in the order in which made, be7 ginning with the earliest deposits.

8 (e) SPECIAL RULES.—For purposes of this section:

9 (1) TRANSFER OF AMOUNTS.—Amounts appro10 priated by this section shall be transferred at least

11 monthly from the general fund of the Treasury on

12 the basis of estimates made by the Secretary of the

13 Treasury of the amounts referred to in this section.

14 Proper adjustments shall be made in the amounts

15 subsequently transferred to the extent prior esti16 mates were in excess of or less than the amounts re17 quired to be transferred.

18 (2) RESIDENCE.—An individual shall be treated

19 as a resident of the State specified in the address

20 shown on the return of tax imposed by chapter 1 of

21 the Internal Revenue Code of 1986 (or, if no return

22 is filed, the address specified in the master files of

23 the Internal Revenue Service).

24 (3) INFORMATION TO ASSIST IN REBATES.—

25 Notwithstanding section 6103 of such Code, the Sec-
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1 retary of the Treasury shall, upon request, provide

2 such information as the Secretary determines nec3 essary to pay the rebates under subsection (d).

4 (f) EFFECTIVE DATE.—The section shall apply to fis5 cal years beginning after the date of the enactment of this

6 Act.

7 SEC. 3. CONFORMING REDUCTION IN DISCRETIONARY

8 SPENDING LIMITS.

9 Upon enactment of this Act, the discretionary spend10 ing limits set forth in section 601(a)(2) of the Congres11 sional Budget Act of 1974 (as adjusted in conformance

12 with section 251 of the Balanced Budget and Emergency

13 Deficit Control Act of 1958 and, in the Senate, with sec14 tion 24 of House Concurrent Resolution 218 (103d Con15 gress)) are reduced as necessary to reflect the amounts

16 appropriated by this Act.

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