I

104TH CONGRESS

1ST SESSION H. R. 825

To amend the Internal Revenue Code of 1986 to allow taxpayers to designate

$1 of their income tax liability and some or all of their income tax

refunds, and to contribute additional amounts, for purposes of rehabilitation and treatment in combating the war on drugs.

IN THE HOUSE OF REPRESENTATIVES

FEBRUARY 3, 1995

Mr. STEARNS introduced the following bill; which was referred to the Committee on Ways and Means and, in addition, to the Committee on Commerce,

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 allow taxpayers to designate $1 of their income tax liability and

some or all of their income tax refunds, and to contribute

additional amounts, for purposes of rehabilitation and

treatment in combating the war on drugs.

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

3 SECTION 1. DESIGNATION OF AMOUNTS FOR WAR ON

4 DRUGS.

5 (a) IN GENERAL.—Subchapter A of chapter 61 of the

6 Internal Revenue Code of 1986 (relating to returns and
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1 records) is amended by adding at the end thereof the fol2 lowing new part:

3 ‘‘PART IX—DESIGNATION FOR WAR ON DRUGS

‘‘Sec. 6097. Designation.

4 ‘‘SEC. 6097. DESIGNATION.

5 ‘‘(a) IN GENERAL.—Every taxpayer may, with re6 spect to the tax imposed by chapter 1, designate that—

7 ‘‘(1) if such individual’s adjusted income tax li8 ability for the taxable year is $1 or more, $1 be paid

9 over to the Drug Rehabilitation and Treatment

10 Trust Fund,

11 ‘‘(2) a specified portion (not less than $1) of

12 any overpayment of such tax be paid over to such

13 Trust Fund, and

14 ‘‘(3) any cash contribution which the taxpayer

15 includes with such return, be paid over to such

16 Trust Fund.

17 ‘‘(b) MANNER AND TIME OF DESIGNATION.—A des18 ignation under subsection (a) may be made with respect

19 to any taxable year only at the time of filing the return

20 of tax imposed by chapter 1 for such taxable year. Such

21 designation shall be made on the 1st page of the return

22 or on the page bearing the taxpayer’s signature.

23 ‘‘(c) SPECIAL RULES.—
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1 ‘‘(1) DESIGNATION OF INCOME TAX LIABIL2 ITY.—

3 ‘‘(A) JOINT RETURNS.—In the case of a

4 joint return having an adjusted income tax li5 ability of $2 or more, each spouse may des6 ignate that $1 be paid over to such Trust

7 Fund.

8 ‘‘(B) ADJUSTED INCOME TAX LIABILITY.—

9 For purposes of this section, the term ‘adjusted

10 income tax liability’ means income tax liability

11 (as defined in section 6096(b)) reduced by any

12 amount designated under section 6096 (relating

13 to designation of income tax payments to Presi14 dential Election Campaign Fund).

15 ‘‘(2) OVERPAYMENTS TREATED AS RE16 FUNDED.—For purposes of this title, any portion of

17 an overpayment of tax designated under subsection

18 (a) shall be treated as being refunded to the tax19 payer as of the last date prescribed for filing the re20 turn of tax imposed by chapter 1 (determined with21 out regard to extensions) or, if later, the date the re22 turn is filed.’’

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

24 such subchapter A is amended by adding at the end there25 of the following new item:

‘‘Part IX. Designation for war on drugs.’’
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1 (c) EFFECTIVE DATE.—The amendments made by

2 this section shall apply to taxable years ending after the

3 date of the enactment of this Act.

4 SEC. 2. DRUG REHABILITATION AND TREATMENT TRUST

5 FUND.

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

7 Internal Revenue Code of 1986 (relating to trust fund

8 code) is amended by adding at the end thereof the follow9 ing new section:

10 ‘‘SEC. 9512. DRUG REHABILITATION AND TREATMENT

11 TRUST FUND.

12 ‘‘(a) CREATION OF TRUST FUND.—There is estab13 lished in the Treasury of the United States a trust fund

14 to be known as the ‘Drug Rehabilitation and Treatment

15 Trust Fund’, consisting of such amounts as may be appro16 priated or credited to such Trust Fund as provided in this

17 section or section 9602(b).

18 ‘‘(b) TRANSFERS TO TRUST FUND.—There are here19 by appropriated to the Drug Rehabilitation and Treatment

20 Trust Fund amounts equivalent to the amounts des21 ignated under section 6097 (relating to designation for

22 war on drugs).

23 ‘‘(c) EXPENDITURES.—As provided in appropriation

24 Acts, amounts in the Drug Rehabilitation and Treatment

25 Trust Fund shall be available for allotments to the States,
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1 with respect to the prevention and treatment of alcohol

2 and drug abuse, under subpart 1 of part B of title XIX

3 of the Public Health Service Act.’’

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

5 for such subchapter is amended by adding at the end

6 thereof the following new item:

‘‘Sec. 9512. Drug Rehabilitation and Treatment Trust Fund.’’

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