I
103D CONGRESS
2D SESSION
H. R. 4592
To appropriate 2 percent of Federal individual income tax revenues to the
States to fight crime.
IN THE HOUSE OF REPRESENTATIVES
JUNE 16, 1994
Mr. SENSENBRENNER introduced the following bill; which was referred jointly
to the Committees on the Judiciary, Government Operations, Rules, and
Ways and Means
A BILL
To appropriate 2 percent of Federal individual income tax
revenues to the States to fight crime.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Tax Rebate to Fight
Crime Act’’.
SEC. 2. TRUST FUNDS TO FIGHT CRIME.
(a) IN GENERAL.—There is hereby appropriated to
the Trust Fund To Fight Crime of each State for each
fiscal year an amount equal to 2 percent of the net Federal
individual income tax revenues for such fiscal year which
are attributable to residents of such State.
(b) TRUST FUND TO FIGHT CRIME.—For purposes
of this section, the term ‘‘Trust Fund To Fight Crime’’
means any trust fund established by State law if the only
expenditures permitted to be made from such trust fund
are for—
(1) paying police officers, including salary, over-
time, and other personnel expenses,
(2) building and operating prisons,
(3) paying judges of courts handling criminal
cases, prosecutors, and public defenders, including
salary, overtime, and other personnel expenses, and
(4) paying the rebates described in subsection
(d) to taxpayers.
(c) DEFINITION OF NET FEDERAL INDIVIDUAL IN-
COME TAX REVENUES.—For purposes of this section, the
term ‘net Federal individual income tax revenues’ means,
with respect to any fiscal year, the excess of—
(1) amounts received in the Treasury during
such fiscal from the taxes imposed on individuals
under chapters 1 and 24 of the Internal Revenue
Code of 1986, over
(2) amounts of such taxes which are credited or
refunded to taxpayers during such fiscal year.
(d) REBATES
FROM
STATE
GOVERNMENTS
TO
THEIR TAXPAYERS.—
(1) VOLUNTARY
REBATES.—Amounts in the
Trust Fund To Fight Crime of any State may be re-
bated (with interest) at any time to the individuals
whose liabilities under chapters 1 and 24 of the In-
ternal Revenue Code of 1986 were taken into ac-
count in determining the appropriation of the
amount to be rebated. The amount rebated to any
individual shall be the amount equal to—
(A) the amount to be rebated, multiplied
by
(B) such individual’s proportionate share
of such liabilities.
(2) MANDATORY REBATES.—
(A) IN GENERAL.—Amounts in the Trust
Fund To Fight Crime of any State shall be re-
bated if—
(i) such amounts are not spent for the
purposes referred to in paragraphs (1), (2)
and (3) of subsection (b) (or rebated under
paragraph (1) of this subsection) within
the 3-year period after the close of the fis-
cal year for which such amounts were ap-
propriated to such Trust Fund, or
(ii) such amounts are not spent for
such purposes (or rebated under paragraph
(1) of this subsection) within the 1-year
period after the close of the fiscal year for
which such amounts were appropriated to
such Trust Fund unless, before the close of
such 1-year period, the State has adopted
a plan on how to spend such amounts and
has spent at least 1/3 of such amounts for
such purposes.
In the case of amounts appropriated for the
first fiscal year beginning after the date of the
enactment of this Act, clause (ii) shall be ap-
plied by substituting ‘‘2-year period’’ for ‘‘1-
year period’’ each place it appears.
(B) REBATES.—Any amount required to
be rebated under this paragraph shall be paid
(with interest) to the individuals whose liabil-
ities under chapters 1 and 24 of the Internal
Revenue Code of 1986 were taken into account
in determining the appropriation of such
amount. The amount rebated to any individual
shall be the amount equal to—
(i) the amount required to be rebated,
multiplied by
(ii) such individual’s proportionate
share of such liabilities.
(3) ORDERING
RULE.—For purposes of this
subsection, expenditures from any Trust Fund To
Fight Crime and rebates shall be treated as being
made from deposits in the order in which made, be-
ginning with the earliest deposits.
(e) SPECIAL RULES.—For purposes of this section—
(1) TRANSFER OF AMOUNTS.—Amounts appro-
priated by this section shall be transferred at least
monthly from the general fund of the Treasury on
the basis of estimates made by the Secretary of the
Treasury of the amounts referred to in this section.
Proper adjustments shall be made in the amounts
subsequently transferred to the extent prior esti-
mates were in excess of or less than the amounts re-
quired to be transferred.
(2) RESIDENCE.—An individual shall be treated
as a resident of the State specified in the address
shown on the return of tax imposed by chapter 1 of
the Internal Revenue Code of 1986 (or, if no return
is filed, the address specified in the master files of
the Internal Revenue Service).
(3) INFORMATION
TO
ASSIST
IN
REBATES.—
Notwithstanding section 6103 of such Code, the Sec-
retary of the Treasury shall, upon request, provide
such information as the Secretary determines nec-
essary to pay the rebates under subsection (d).
(f) EFFECTIVE DATE.—The section shall apply to fis-
cal years beginning after the date of the enactment of this
Act.
SEC. 3. CONFORMING REDUCTION IN DISCRETIONARY
SPENDING LIMITS.
Upon enactment of this Act, the discretionary spend-
ing limits set forth in section 601(a)(2) of the Congres-
sional Budget Act of 1974 (as adjusted in conformance
with section 251 of the Balanced Budget and Emergency
Deficit Control Act of 1985 and, in the Senate, with sec-
tion 24 of House Concurrent Resolution 218 (103d Con-
gress)) are reduced as necessary to reflect the amounts
appropriated by this Act.
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