(G) Section 9502 of such Code is amended
by striking subsection (e) and by redesignating
subsection (f) as subsection (e).
(H) Subsection (e) of section 9502 of such
Code (as redesignated by subparagraph (I)) is
amended by striking paragraph (2) and by re-
designating paragraph (3) as paragraph (2).
(I) Subsection (b) of section 9503 of such
Code is amended by striking paragraph (5).
(J) Paragraph (3) of section 9503(f) of
such Code is amended to read as follows:
‘‘(3) PARTIALLY EXEMPT METHANOL OR ETHA-
NOL FUEL.—In the case of a rate of tax determined
under section 4041(m), the Highway Trust Fund fi-
nancing rate is the excess (if any) of the rate so de-
termined over—
‘‘(A) 5.55 cents per gallon after September
30, 1993, and before October 1, 1995, and
‘‘(B) 4.3 cents per gallon after September
30, 1995.’’
(d) TECHNICAL AND CLERICAL AMENDMENTS.—
(1) AMENDMENT TO GENERAL BUSINESS CRED-
IT.—Subsection (b) of section 38 of such Code is
amended by striking paragraph (3) and redesignat-
ing paragraphs (4) through (11) as paragraphs (3)
through (10), respectively.
(2) CLERICAL AMENDMENT.—The table of sec-
tions for subpart D of part IV of subchapter A of
chapter 1 of such Code is amended by striking the
item relating to section 40.
(e) EFFECTIVE DATE.—The amendments made by
this section shall apply to sales and uses after the expira-
tion of the 90-day period beginning on the date of the en-
actment of this Act.
(f) FLOOR STOCK TAXES.—
(1) IMPOSITION OF TAX.—In the case of fuel al-
cohol which is held on the applicable date by any
person, there is hereby imposed a floor stocks tax of
18.4 cents per gallon.
(2) LIABILITY FOR TAX AND METHOD OF PAY-
MENT.—
(A) LIABILITY FOR TAX.—A person hold-
ing, on the applicable date, fuel alcohol to which
the tax imposed by paragraph (1) applies shall
be liable for such tax.
(B) METHOD OF PAYMENT.—The tax im-
posed by paragraph (1) shall be paid in such
manner as the Secretary shall prescribe.
(C) TIME
FOR
PAYMENT.—The tax im-
posed by paragraph (1) shall be paid on or be-
fore the date occurring 6 months after the ap-
plicable date.
(3) DEFINITIONS.—For purposes of this sub-
section—
(A) APPLICABLE DATE.—The term ‘‘appli-
cable date’’ means the first day occurring after
the expiration of the 90-day period beginning
on the date of the enactment of this Act.
(B) FUEL ALCOHOL.—The term ‘‘fuel alco-
hol’’ has the meaning given such term by sec-
tion 4083 of the Internal Revenue Code of
1986, as amended by this section.
(C) HELD
BY
A
PERSON.—Fuel alcohol
shall be considered as ‘‘held by a person’’ if
title thereto has passed to such person (whether
or not delivery to the person has been made).
(D) SECRETARY.—The term ‘‘Secretary’’
means the Secretary of the Treasury or his del-
egate.
(4) EXCEPTION FOR EXEMPT USES.—The tax
imposed by paragraph (1) shall not apply to fuel al-
cohol held by any person exclusively for any use to
the extent a credit or refund of the tax imposed by
section 4081 of the Internal Revenue Code of 1986
is allowable for such use.
(5) EXCEPTION FOR FUEL HELD IN VEHICLE
TANK.—No tax shall be imposed by paragraph (1)
on fuel alcohol held in the tank of a motor vehicle
or motorboat.
(6) EXCEPTION
FOR
CERTAIN
AMOUNTS
OF
FUEL.—
(A) IN
GENERAL.—No tax shall be im-
posed by paragraph (1) on fuel alcohol held on
the applicable date by any person if the aggre-
gate amount of fuel alcohol held by such person
on such date does not exceed 2,000 gallons.
The preceding sentence shall apply only if such
person submits to the Secretary (at the time
and in the manner required by the Secretary)
such information as the Secretary shall require
for purposes of this paragraph.
(B) EXEMPT FUEL.—For purposes of sub-
paragraph (A), there shall not be taken into ac-
count fuel held by any person which is exempt
from the tax imposed by paragraph (1) by rea-
son of paragraph (4) or (5).
(C) CONTROLLED GROUPS.—For purposes
of this paragraph—
(i) CORPORATIONS.—
(I) IN
GENERAL.—All persons
treated as a controlled group shall be
treated as 1 person.
(II) CONTROLLED
GROUP.—The
term ‘‘controlled group’’ has the
meaning given to such term by sub-
section (a) of section 1563 of such
Code; except that for such purposes
the phrase ‘‘more than 50 percent’’
shall be substituted for the phrase ‘‘at
least 80 percent’’ each place it ap-
pears in such subsection.
(ii) 
NONINCORPORATED
PERSONS
UNDER COMMON CONTROL.—Under regula-
tions prescribed by the Secretary, prin-
ciples similar to the principles of clause (i)
shall apply to a group of persons under
common control where 1 or more of such
persons is not a corporation.
(7) OTHER LAWS APPLICABLE.—All provisions
of law, including penalties, applicable with respect to
the taxes imposed by section 4081 of such Code
shall, insofar as applicable and not inconsistent with
the provisions of this subsection, apply with respect
to the floor stock taxes imposed by paragraph (1) to
the same extent as if such taxes were imposed by
such section 4081.
SEC. 6. TERMINATION OF PRICE SUPPORT AND PRODUC-
TION ADJUSTMENT PROGRAMS FOR SUGAR
BEETS AND SUGARCANE.
(a) TERMINATION OF PRICE SUPPORT PROGRAM.—
(1) PRICE SUPPORT LEVELS FOR DESIGNATED
NONBASIC
AGRICULTURAL
COMMODITIES.—Section
201(a) of the Agricultural Act of 1949 (7 U.S.C.
1446(a)) is amended by striking ‘‘milk, sugar beets,
and sugarcane’’ and inserting ‘‘and milk’’.
(2) SUGAR
PRICE
SUPPORT.—Section 206 of
such Act (7 U.S.C. 1446g) is repealed.
(3) BENEFITS.—Section 401(e) of such Act (7
U.S.C. 1421(e)) is amended—
(A) in paragraph (1), by striking ‘‘(1)’’;
and
(B) by striking paragraph (2).
(4) PERSONAL LIABILITY OF PRODUCERS FOR
DEFICIENCIES.—Section 405 of such Act (7 U.S.C.
1425) is amended—
(A) in subsection (a), by striking ‘‘(a)’’;
and
(B) by striking subsection (b).
(5) POWERS OF COMMODITY CREDIT CORPORA-
TION.—Section 5(a) of the Commodity Credit Cor-
poration Charter Act (7 U.S.C. 714c(a)) is amended
by inserting ‘‘(except for sugar beets and sugar-
cane)’’ after ‘‘agricultural commodities’’.
(b) TERMINATION OF ACREAGE ALLOTMENTS AND
MARKETING QUOTAS.—
(1) TERMINATION.—Part VII of subtitle B of
title III of the Agricultural Adjustment Act of 1938
(7 U.S.C. 1359aa–1359jj) is repealed.
(2) 
CONFORMING
AMENDMENT.—Section
344(f)(2) of such Act (7 U.S.C. 1344(f)(2)) is
amended by striking ‘‘sugar cane for sugar, sugar
beets for sugar,’’.
(c) CONFORMING AMENDMENT REGARDING PREVEN-
TION OF GOVERNMENT ACCUMULATION OF SUGAR.—Sec-
tion 902 of the Food Security Act of 1985 (7 U.S.C.
1446g note) is amended—
(1) by striking subsection (a); and
(2) by redesignating subsections (b) and (c) as
subsections (a) and (b), respectively.
(d) CONFORMING AMENDMENT REGARDING SECTION
32 ACTIVITIES.—The second sentence of the first para-
graph of section 32 of the Act of August 24, 1935 (7
U.S.C. 612c), is amended by inserting ‘‘(other than sugar
beets and sugarcane)’’ after ‘‘commodity’’ the last place
it appears.
(e) PROHIBITION ON SUBSEQUENT PROVISION OF
PRICE SUPPORT.—
(1) PROHIBITION.—After the effective date of
this Act, the Secretary of Agriculture may not make
price support available, whether in the form of loans,
payments, purchases, or other operations, for crops
of sugar beets or sugarcane by using the funds of
the Commodity Credit Corporation or under the au-
thority of any law.
(2) EXCEPTION.—Notwithstanding paragraph
(1), the Secretary shall settle any outstanding loans
under section 206 of the Agricultural Act of 1949 (7
U.S.C. 1446g) made before the effective date of this
Act.
(f) EFFECT ON EXISTING LIABILITY.—The amend-
ments made by this section shall not affect the liability
of any person under any provision of law as in effect be-
fore the effective date of this Act.
(g) EFFECTIVE DATE.—This section and the amend-
ments made by this section shall take effect on October
1, 1996.
SEC. 7. TERMINATION OF PEANUT QUOTA AND PRICE SUP-
PORT PROGRAMS.
(a) MARKETING QUOTAS.—Part VI of subtitle B of
title III of the Agricultural Adjustment Act of 1938 (7
U.S.C. 1357–1359a), relating to peanuts, is repealed.
(b) PRICE SUPPORT LEVELS.—The Agricultural Act
of 1949 (7 U.S.C. 1441 et seq.) is amended—
(1) in section 101(b) (7 U.S.C. 1441(b)), by
striking ‘‘and peanuts’’;
(2) in section 408(c) (7 U.S.C. 1428(c)), by
striking ‘‘peanuts,’’; and
(3) by striking sections 108, 108A, and 108B,
relating to peanuts (7 U.S.C. 1445c through 1445c–
3).
(c) PROHIBITION ON SUBSEQUENT PROVISION OF
PRICE SUPPORT.—
(1) PROHIBITION.—After the effective date of
this Act, the Secretary of Agriculture may not make
price support available, whether in the form of loans,
purchases, or other operations, to peanut producers
by using the funds of the Commodity Credit Cor-
poration or under the authority of any law.
(2) EXCEPTION.—Notwithstanding paragraph
(1), the Secretary shall settle any outstanding loans
under section 108B of the Agricultural Act of 1949
(7 U.S.C. 1445c–3) made before the effective date
of this Act.
(d) CONTINUED LIABILITY
OF PRODUCERS.—An
amendment made by this section shall not affect the liabil-
ity of any person under any provision of law as in effect
before the effective date of this Act.
(e) EFFECT ON EXISTING LIABILITY.—The amend-
ments made by this section shall not affect the liability
of any person under any provision of law as in effect be-
fore the effective date of this Act.
(g) EFFECTIVE DATE.—This section and the amend-
ments made by this section shall take effect on October
1, 1996.
Æ
HR 2934 IH——2