H. R. 2400—381
transient nontrailerable recreational vessels, and access to those
facilities, to meet the needs of nontrailerable recreational vessels
operating on navigable waters in the State.
(d) GRANT PROGRAM.—
(1) MATCHING GRANTS.—The Secretary of the Interior shall
obligate amounts made available under section 4(b)(3)(B) of
the Act entitled ‘‘An Act to provide that the United States
shall aid the States in fish restoration and management
projects, and for other purposes,’’ approved August 9, 1950,
as amended by this Act, to make grants to any State to pay
not more than 75 percent of the cost to a State of constructing,
renovating, or maintaining facilities for transient nontrailerable
recreational vessels.
(2) PRIORITIES.—In awarding grants under paragraph (1),
the Secretary shall give priority to projects that—
(A) consist of the construction, renovation, or mainte-
nance of facilities for transient nontrailerable recreational
vessels in accordance with a plan submitted by a State
under subsection (c);
(B) provide for public/private partnership efforts to
develop, maintain, and operate facilities for transient
nontrailerable recreational vessels; and
(C) propose innovative ways to increase the availability
of facilities for transient nontrailerable recreational vessels.
(e) DEFINITIONS.—For purposes of this section, the term—
(1) ‘‘nontrailerable recreational vessel’’ means a recreational
vessel 26 feet in length or longer—
(A) operated primarily for pleasure; or
(B) leased, rented, or chartered to another for the
latter’s pleasure;
(2) ‘‘facilities for transient nontrailerable recreational ves-
sels’’ includes mooring buoys, day-docks, navigational aids, sea-
sonal slips, safe harbors, or similar structures located on navi-
gable waters, that are available to the general public (as deter-
mined by the Secretary of the Interior) and designed for tem-
porary use by nontrailerable recreational vessels; and
(3) ‘‘State’’ means each of the several States of the United
States, the District of Columbia, the Commonwealth of Puerto
Rico, Guam, American Samoa, the Virgin Islands, and the
Commonwealth of the Northern Mariana Islands.
SEC. 7405. BOAT SAFETY FUNDS.
(a) AVAILABILITY OF ALLOCATIONS.—Section 13104(a) of title
46, United States Code, is amended—
(1) in paragraph (1), by striking ‘‘3 years’’ and inserting
‘‘2 years’’; and
(2) in paragraph (2), by striking ‘‘3-year’’ and inserting
‘‘2-year’’.
(b) EXPENDITURES.—Section 13106 of title 46, United States
Code, is amended—
(1) by striking the first sentence of subsection (a)(1) and
inserting the following: ‘‘Subject to paragraph (2) and subsection
(c), the Secretary shall expend in each fiscal year for State
recreational boating safety programs, under contracts with
States under this chapter, an amount equal to the sum of
(A) the amount appropriated from the Boat Safety Account
for that fiscal year and (B) the amount transferred to the
H. R. 2400—382
Secretary under section 4(b) of the Act of August 9, 1950
(16 U.S.C. 777c(b)).’’;
(2) in subsection (a)(2), by striking ‘‘appropriated’’ and
inserting ‘‘available’’; and
(3) by striking subsection (c) and inserting the following:
‘‘(c) Of the amount transferred for each fiscal year to the Sec-
retary of Transportation under paragraphs (2) and (3) of section
4(b) of the Act of August 9, 1950 (16 U.S.C. 777c(b)), $5,000,000
is available to the Secretary for payment of expenses of the Coast
Guard for personnel and activities directly related to coordinating
and carrying out the national recreational boating safety program
under this title, of which $2,000,000 shall be available to the
Secretary only to ensure compliance with chapter 43 of this title.
No funds available to the Secretary under this subsection may
be used to replace funding traditionally provided through general
appropriations, nor for any purposes except those purposes author-
ized by this section. Amounts made available by this subsection
shall remain available until expended. The Secretary shall publish
annually in the Federal Register a detailed accounting of the
projects, programs, and activities funded under this subsection.’’.
(c) CONFORMING AMENDMENTS.—
(1) The heading for section 13106 of title 46, United States
Code, is amended to read as follows:
‘‘§ 13106. Authorization of appropriations’’.
(2) The chapter analysis for chapter 131 of title 46, United
States Code, is amended by striking the item relating to section
13106 and inserting the following:
‘‘13106. Authorization of appropriations.’’.
TITLE VIII—TRANSPORTATION DISCRE-
TIONARY SPENDING GUARANTEE AND
BUDGET OFFSETS
Subtitle A—Transportation Discretionary
Spending Guarantee
SEC. 8101. DISCRETIONARY SPENDING CATEGORIES.
(a) ESTABLISHMENT OF SEPARATE CATEGORIES.—Section 251(c)
of the Balanced Budget and Emergency Deficit Control Act of 1985
is amended as follows:
(1) FY1999.—In paragraph (3), strike ‘‘and’’ at the end
of subparagraph (B) and after subparagraph (C) add the follow-
ing new subparagraphs:
‘‘(D) for the highway category: $21,885,000,000 in out-
lays; and
‘‘(E) for the mass transit category: $4,401,000,000 in
outlays;’’.
(2) FY2000.—In paragraph (4), strike ‘‘and’’ at the end
of subparagraph (A) and at the end add the following new
subparagraphs:
‘‘(C) for the highway category: $24,436,000,000 in out-
lays; and
H. R. 2400—383
‘‘(D) for the mass transit category: $4,761,000,000 in
outlays;’’.
(3) FY2001.—In paragraph (5), strike the comma and insert
‘‘—’’ after ‘‘2001’’, insert ‘‘(A)’’ before ‘‘for’’ and indent the new
subparagraph and move it 2 ems to the right, strike ‘‘and’’
at the end of such subparagraph, and at the end add the
following new subparagraphs:
‘‘(B) for the highway category: $26,204,000,000 in out-
lays; and
‘‘(C) for the mass transit category: $5,190,000,000 in
outlays;’’.
(4) FY2002.—In paragraph (6), strike the comma and insert
‘‘—’’ after ‘‘2002’’, insert ‘‘(A)’’ before ‘‘for’’, indent the new
subparagraph and move it 2 ems to the right, and add at
the end the following new subparagraphs:
‘‘(B) for the highway category: $26,977,000,000 in out-
lays; and
‘‘(C) for the mass transit category: $5,709,000,000 in
outlays; and’’.
(5) FY2003.—After paragraph (6), add the following new
paragraph:
‘‘(7) with respect to fiscal year 2003—
‘‘(A) for the highway category: $27,728,000,000 in out-
lays; and
‘‘(B) for the mass transit category: $6,256,000,000 in
outlays.’’.
(b) OFFSETTING
ADJUSTMENT
IN
DISCRETIONARY
SPENDING
LIMITS.—
(1) ADJUSTMENT OF NONDEFENSE CATEGORY FOR FY1999.—
The discretionary spending limit set forth in section 251(c)(3)(B)
of the Balanced Budget and Emergency Deficit Control Act
of 1985, as adjusted in conformance with section 251(b) of
that Act, is reduced by $859,000,000 in new budget authority
and $25,173,000,000 in outlays.
(2) ADJUSTMENT OF DISCRETIONARY CATEGORY FOR FY2000.—
The discretionary spending limit set forth in section 251(c)(4)(A)
of the Balanced Budget and Emergency Deficit Control Act
of 1985, as adjusted in conformance with section 251(b) of
that Act, is reduced by $859,000,000 in new budget authority
and $26,045,000,000 in outlays.
(3) ADJUSTMENT OF DISCRETIONARY SPENDING LIMIT FOR
FY2001.—The discretionary spending limit set forth in section
251(c)(5)(A) of the Balanced Budget and Emergency Deficit
Control Act of 1985, as adjusted in conformance with section
251(b) of that Act, is reduced by $859,000,000 in new budget
authority and $26,329,000,000 in outlays.
(4) ADJUSTMENT OF DISCRETIONARY SPENDING LIMIT FOR
FY2002.—The discretionary spending limit set forth in section
251(c)(6)(A) of the Balanced Budget and Emergency Deficit
Control Act of 1985, as adjusted in conformance with section
251(b) of that Act, is reduced by $859,000,000 in new budget
authority and $26,675,000,000 in outlays.
(c) DEFINITIONS OF HIGHWAY CATEGORY AND MASS TRANSIT
CATEGORY.—Section 250(c)(4) of the Balanced Budget and Emer-
gency Deficit Control Act of 1985 is amended by inserting ‘‘(A)’’
after ‘‘(4)’’ and by adding at the end the following new subpara-
graphs:
H. R. 2400—384
‘‘(B) The term ‘highway category’ refers to the following
budget accounts or portions thereof that are subject to the
obligation limitations on contract authority set forth in the
Transportation Equity Act for the 21st Century:
‘‘(i) 69–8083–0–7–401 (Federal-Aid Highways).
‘‘(ii) 
69–8020–0–7–401 
(Highway 
Traffic 
Safety
Grants).
‘‘(iii) 69–8048–0–7–401 (National Motor Carrier Safety
Program).
‘‘(iv) 69–8016–0–7–401 (Operations and Research
NHTSA).
‘‘(C) The term ‘mass transit category’ refers to the following
budget accounts or portions thereof that are subject to the
obligation limitations on contract authority provided in the
Transportation Equity Act for the 21st Century and for which
appropriations are provided pursuant to authorizations con-
tained in that Act (except that appropriations provided pursu-
ant to section 5338(h) of title 49, United States Code, as amend-
ed by this section, shall not be included in this category):
‘‘(i) 69–8191–0–7–401 (Mass Transit Capital Fund).
‘‘(ii) 69–8350–0–7–401 (Trust Fund Share of Expenses).
‘‘(iii) 69–1129–0–1–401 (Formula Grants).
‘‘(iv) 69–1120–0–1–401 (Administrative Expenses).
‘‘(v) 
69–1136–0–1–401 
(University 
Transportation
Centers).
‘‘(vi) 
69–1137–0–1–401 
(Transit 
Planning 
and
Research).
‘‘(D) SPECIAL RULE.—(i) Any outlays in excess of the discre-
tionary spending limit set forth in section 251(c) for the highway
or mass transit category, as adjusted, for the budget year
shall be considered nondefense category outlays or discretionary
category outlays.
‘‘(ii) If the obligation limitations for accounts in the highway
or mass transit category provided in an appropriation Act for
a fiscal year exceed the obligation limitations set forth in section
8103 of the Transportation Equity Act for the 21st Century
for that year, as adjusted, the estimated outlays flowing for
each outyear from such excess obligations calculated pursuant
to clause (iii) shall be attributed to the discretionary category
in that outyear.
‘‘(iii) For purposes of clause (ii), outlays from excess obliga-
tions shall be determined using the average of the spendout
rates for that category in the baseline.’’.
(d) ADJUSTMENT
TO
HIGHWAY
AND
MASS
TRANSIT
CAT-
EGORIES.—Section 251(b)(1) of the Balanced Budget and Emergency
Deficit Control Act of 1985 is amended by—
(1) striking ‘‘When’’ and inserting:
‘‘(A) CONCEPTS AND DEFINITIONS.—When’’; and
(2) adding at the end the following:
‘‘(B) ADJUSTMENT TO ALIGN HIGHWAY SPENDING WITH
REVENUES.—(i) When the President submits the budget
under section 1105 of title 31, United States Code, OMB
shall calculate and the budget shall include adjustments
to the highway category for the budget year and each
outyear as provided in clause (ii)(I)(cc).
‘‘(ii)(I)(aa) OMB shall take the actual level of highway
receipts for the year before the current year and subtract
H. R. 2400—385
the sum of the estimated level of highway receipts in
subclause (II) plus any amount previously calculated under
item (bb) for that year.
‘‘(bb) OMB shall take the current estimate of highway
receipts for the budget year and subtract the estimated
level of receipts for that year.
‘‘(cc) OMB shall take the sum of the amounts calculated
under items (aa) and (bb), add that sum to the amount
of obligations set forth in section 8103 of the Transportation
Equity Act for the 21st Century for the highway category
for the budget year, and calculate the outlay change result-
ing from that change in obligations relative to that amount
for the budget year and each outyear using current esti-
mates. After making the calculation under the preceding
sentence, OMB shall adjust the amount of obligations set
forth in that section for the budget year by adding the
sum of the amounts calculated under items (aa) and (bb).
‘‘(II) The estimated level of highway receipts for the
purposes of this clause are—
‘‘(aa) for fiscal year 1998, $22,164,000,000;
‘‘(bb) for fiscal year 1999, $32,619,000,000;
‘‘(cc) for fiscal year 2000, $28,066,000,000;
‘‘(dd) for fiscal year 2001, $28,506,000,000;
‘‘(ee) for fiscal year 2002, $28,972,000,000; and
‘‘(ff) for fiscal year 2003, $29,471,000,000.
‘‘(III) In this clause, the term ‘highway receipts’ means
the governmental receipts credited to the highway account
of the Highway Trust Fund.
‘‘(C)(i) In addition to the adjustment required by subpara-
graph (B), when the President submits the budget under section
1105 of title 31, United States Code, for fiscal years 2000,
2001, 2002, or 2003, OMB shall calculate and the budget shall
include for the budget year and each outyear an adjustment
to the limits on outlays for the highway category and the
mass transit category equal to—
‘‘(I) the outlays for the applicable category calculated
assuming obligation levels consistent with the estimates
prepared pursuant to subparagraph (D), as adjusted, using
current technical assumptions; minus
‘‘(II) the outlays for the applicable category set forth
in the subparagraph (D) estimates, as adjusted.
‘‘(ii) The adjustment made pursuant to clause (i) in the
fiscal years 2002 and 2003 budget submissions of the President
under section 1105(a) of title 31, United States Code, shall
not exceed 4 percent plus cumulative carryovers. In this clause,
the term ‘cumulative carryovers’ means the total of each amount
by which outlays for the highway and mass transit category
for any fiscal year are less than the outlay limit for that
category, as adjusted, for that year less any amount of carryover
used in the previous year.
‘‘(D)(i) When OMB and CBO submit their final sequester
report for fiscal year 1999, that report shall include an estimate
of the outlays for each of the categories that would result
in fiscal years 2000 through 2003 from obligations at the levels
specified in section 8103 of the Transportation Equity Act for
the 21st Century using current assumptions.
H. R. 2400—386
‘‘(ii) When the President submits the budget under section
1105 of title 31, United States Code, for fiscal years 2000,
2001, 2002, or 2003, OMB shall adjust the estimates made
in clause (i) by the adjustments by subparagraphs (B) and
(C).
‘‘(E) OMB shall consult with the Committees on the Budget
and include a report on adjustments under subparagraphs (B)
and (C) in the preview report.’’.
(e) ENFORCEMENT OF GUARANTEE.—Rule XXI of the Rules of
the House of Representatives is amended by adding at the end
the following new clause:
‘‘9. It shall not be in order to consider any bill or joint resolution,
or any amendment thereto or conference report thereon, that would
cause obligation limitations to be below the level for any fiscal
year set forth in section 8103 of the Transportation Equity Act
for the 21st Century, as adjusted, for the highway category or
the mass transit category, as applicable.’’.
SEC. 8102. CONFORMING THE PAYGO SCORECARD WITH THIS ACT.
Upon the enactment of this Act, the Director of the Office
of Management and Budget shall not make any estimates under
section 252(d) of the Balanced Budget and Emergency Deficit Con-
trol Act of 1985 of changes in direct spending outlays and receipts
for any fiscal year resulting from this title.
SEC. 8103. LEVEL OF OBLIGATION LIMITATIONS.
(a) HIGHWAY CATEGORY.—For the purposes of section 251(b)
of the Balanced Budget and Emergency Deficit Control Act of 1985,
the level of obligation limitations for the highway category is—
(1) for fiscal year 1999, $25,883,000,000;
(2) for fiscal year 2000, $26,629,000,000;
(3) for fiscal year 2001, $27,158,000,000;
(4) for fiscal year 2002, $27,767,000,000; and
(5) for fiscal year 2003, $28,233,000,000.
(b) MASS TRANSIT CATEGORY.—For the purposes of section
251(b) of the Balanced Budget and Emergency Deficit Control Act
of 1985, the level of obligation limitations for the mass transit
category is—
(1) for fiscal year 1999, $5,365,000,000;
(2) for fiscal year 2000, $5,797,000,000;
(3) for fiscal year 2001, $6,271,000,000;
(4) for fiscal year 2002, $6,747,000,000; and
(5) for fiscal year 2003, $7,226,000,000.
For purposes of this subsection, the term ‘‘obligation limitations’’
means the sum of budget authority and obligation limitations.
Subtitle B—Veterans’ Benefits
SEC. 8201. SHORT TITLE.
This subtitle may be cited as the ‘‘Veterans Benefits Act of
1998’’.
SEC. 8202. PROHIBITION ON ESTABLISHMENT OF SERVICE-CONNEC-
TION FOR DISABILITIES RELATING TO USE OF TOBACCO
PRODUCTS.
(a) WARTIME DISABILITY COMPENSATION.—Section 1110 of title
38, United States Code, is amended by striking ‘‘or abuse of alcohol
H. R. 2400—387
or drugs’’ and inserting ‘‘, abuse of alcohol or drugs, or use of
tobacco products’’.
(b) PEACETIME DISABILITY COMPENSATION.—Section 1131 of
such title is amended by striking ‘‘or abuse of alcohol or drugs’’
and inserting ‘‘, abuse of alcohol or drugs, or use of tobacco prod-
ucts’’.
(c) APPLICABILITY.—(1) Except as provided in paragraph (2),
the amendments made by this section shall apply to any claims
for compensation received by the Secretary of Veterans Affairs
before, on, or after the date of enactment of this Act.
(2) The amendments made by this section shall not apply
in the case of any such claims adjudicated by the Secretary before
such date of enactment for which a service-connection was estab-
lished for a disability on the basis of the use of tobacco products.
SEC. 8203. TWENTY PERCENT INCREASE IN RATES OF BASIC EDU-
CATIONAL ASSISTANCE UNDER MONTGOMERY GI BILL.
(a) ACTIVE DUTY EDUCATIONAL ASSISTANCE.—
(1) INCREASE IN RATES.—Section 3015 of title 38, United
States Code, is amended—
(A) in subsection (a)(1), by striking ‘‘$400’’ and insert-
ing ‘‘$528 (as increased from time to time under subsection
(g))’’; and
(B) in subsection (b)(1), by striking ‘‘$325’’ and insert-
ing ‘‘$429 (as increased from time to time under subsection
(g))’’.
(2) CPI ADJUSTMENT.—Subsection (g) of such section is
amended by striking ‘‘beginning on or after October 1, 1994’’
and all that follows through ‘‘such rates’’ and inserting ‘‘, the
Secretary shall provide a percentage increase (rounded to the
nearest dollar) in the rates payable under subsections (a)(1)
and (b)(1)’’.
(3) TECHNICAL
AMENDMENTS.—Such section is further
amended—
(A) in subsection (a), by striking ‘‘subsections (b), (c),
(d), (e), (f), and (g) of’’ in the matter preceding paragraph
(1); and
(B) in subsection (b)—
(i) by striking ‘‘Except as provided in subsections
(c), (d), (e), (f), and (g), in’’ and inserting ‘‘In’’; and
(ii) by inserting ‘‘(except as provided in the succeed-
ing subsections of this section)’’ after ‘‘under this chap-
ter shall’’.
(4) EFFECTIVE DATE.—The amendments made by this sub-
section shall take effect on October 1, 1998, and shall apply
with respect to educational assistance allowances paid for
months after September 1998. However, no adjustment in rates
of educational assistance shall be made under subsection (g)
of section 3015 of title 38, United States Code, as amended
by paragraph (2), for fiscal year 1999.
(b) SELECTED RESERVE EDUCATIONAL ASSISTANCE.—
(1) INCREASE IN RATES.—Paragraph (1) of section 16131(b)
of title 10, United States Code, is amended—
(A) in subparagraph (A), by striking ‘‘$190’’ and insert-
ing ‘‘$251 (as increased from time to time under paragraph
(2))’’;
H. R. 2400—388
(B) in subparagraph (B), by striking ‘‘$143’’ and insert-
ing ‘‘$188 (as increased from time to time under paragraph
(2))’’; and
(C) in subparagraph (C), by striking ‘‘$95’’ and insert-
ing ‘‘$125 (as increased from time to time under paragraph
(2))’’.
(2) CPI ADJUSTMENT.—Paragraph (2) of such section is
amended by striking ‘‘beginning on or after October 1, 1994’’
and all that follows through ‘‘such rates’’ and inserting ‘‘, the
Secretary shall provide a percentage increase (rounded to the
nearest dollar) in the rates payable under subparagraphs (A),
(B), and (C) of paragraph (1)’’.
(3) TECHNICAL AMENDMENT.—Paragraph (1) of such section
is further amended by striking ‘‘in paragraph (2) and’’.
(4) EFFECTIVE DATE.—The amendments made by this sub-
section shall take effect on October 1, 1998, and shall apply
with respect to educational assistance allowances paid for
months after September 1998. However, no adjustment in rates
of educational assistance shall be made under paragraph (2)
of section 16131(b) of title 10, United States Code, as amended
by paragraph (2), for fiscal year 1999.
SEC. 8204. INCREASE IN ASSISTANCE AMOUNT FOR SPECIALLY
ADAPTED HOUSING.
(a) IN GENERAL.—Section 2102 of title 38, United States Code,
is amended—
(1) in the matter preceding paragraph (1) of subsection
(a), by striking ‘‘$38,000’’ and inserting ‘‘$43,000’’; and
(2) in subsection (b)(2), by striking ‘‘$6,500’’ and inserting
‘‘$8,250’’.
(b) EFFECTIVE DATE.—The amendments made by subsection
(a) shall apply with respect to limitations under section 2102 of
such title on assistance furnished to a veteran under section 2101
of such title on or after October 1, 1998.
SEC. 8205. INCREASE IN AMOUNT OF ASSISTANCE FOR AUTOMOBILE
AND ADAPTIVE EQUIPMENT FOR CERTAIN DISABLED
VETERANS.
(a) IN GENERAL.—Section 3902(a) of title 38, United States
Code, is amended by striking out ‘‘$5,500’’ and inserting in lieu
thereof ‘‘$8,000’’.
(b) EFFECTIVE DATE.—The amendment made by subsection (a)
shall apply with respect to assistance furnished under section 3902
of such title on or after October 1, 1998.
SEC. 8206. INCREASE IN AID AND ATTENDANCE RATES FOR VETERANS
ELIGIBLE FOR PENSION.
Effective October 1, 1998, the maximum annual rates of pension
in effect as of September 30, 1998, under the following provisions
of chapter 15 of title 38, United States Code, are increased by
$600:
(1) Subsections (d)(1), (d)(2), (f)(2), and (f)(4) of section
1521.
(2) Section 1536(d)(2).
H. R. 2400—389
SEC. 8207. ELIGIBILITY OF CERTAIN REMARRIED SURVIVING SPOUSES
FOR REINSTATEMENT OF DEPENDENCY AND INDEMNITY
COMPENSATION 
UPON 
TERMINATION 
OF 
THAT
REMARRIAGE.
(a) RESTORATION OF PRIOR ELIGIBILITY.—Section 1311 of title
38, United States Code, is amended by adding at the end the
following new subsection:
‘‘(e)(1) The remarriage of the surviving spouse of a veteran
shall not bar the furnishing of dependency and indemnity compensa-
tion to such person as the surviving spouse of the veteran if the
remarriage is terminated by death, divorce, or annulment unless
the Secretary determines that the divorce or annulment was secured
through fraud or collusion.
‘‘(2) If the surviving spouse of a veteran ceases living with
another person and holding himself or herself out openly to the
public as that person’s spouse, the bar to granting that person
dependency and indemnity compensation as the surviving spouse
of the veteran shall not apply.
‘‘(3) The first month of eligibility for payment of dependency
and indemnity compensation to a surviving spouse by reason of
this subsection shall be the later of the month after—
‘‘(A) the month of the termination of such remarriage,
in the case of a surviving spouse described in paragraph (1);
or
‘‘(B) the month of the cessation described in paragraph
(2), in the case of a surviving spouse described in that para-
graph.’’.
(b) EFFECTIVE DATE.—No payment may be made by reason
of section 1311(e) of title 38, United States Code, as added by
subsection (a), for any month before October 1998.
SEC. 8208. EXTENSION OF PRIOR REVISION TO OFFSET RULE FOR
DEPARTMENT OF DEFENSE SPECIAL SEPARATION BENE-
FIT PROGRAM.
The amendment made by section 653 of the National Defense
Authorization Act for Fiscal Year 1997 (Public Law 104–201; 110
Stat. 2583) to subsection (h)(2) of section 1174 of title 10, United
States Code, shall apply to any payment of separation pay under
the special separation benefits program under section 1174a of
that title that was made during the period beginning on December
5, 1991, and ending on September 30, 1996.
SEC. 8209. SENSE OF THE CONGRESS CONCERNING RECOVERY FROM
TOBACCO COMPANIES OF COSTS OF TREATMENT OF VET-
ERANS FOR TOBACCO-RELATED ILLNESSES.
It is the sense of the Congress—
(1) that the Attorney General or the Secretary of Veterans
Affairs, as appropriate, should take all steps necessary to
recover from tobacco companies amounts corresponding to the
costs which would be incurred by the Department of Veterans
Affairs for treatment of tobacco-related illnesses of veterans,
if such treatment were authorized by law; and
(2) that the Congress should authorize by law the treatment
of tobacco-related illnesses of veterans upon the recovery of
such amounts.
H. R. 2400—390
Subtitle C—Temporary Student Loan
Provision.
SEC. 8301. TEMPORARY STUDENT LOAN PROVISION.
(a) FFEL INTEREST RATES.—
(1) AMENDMENT.—Section 427A of the Higher Education
Act of 1965 (20 U.S.C. 1077a) is amended—
(A) by redesignating subsections (j) and (k) as sub-
sections (k) and (l), respectively; and
(B) by inserting after subsection (i) the following new
subsection:
‘‘(j) INTEREST RATES FOR NEW LOANS BETWEEN JULY 1, 1998
AND OCTOBER 1, 1998.—
‘‘(1) IN GENERAL.—Notwithstanding subsection (h), but sub-
ject to paragraph (2), with respect to any loan made, insured,
or guaranteed under this part (other than a loan made pursuant
to section 428B or 428C) for which the first disbursement
is made on or after July 1, 1998, and before October 1, 1998,
the applicable rate of interest shall, during any 12-month period
beginning on July 1 and ending on June 30, be determined
on the preceding June 1 and be equal to—
‘‘(A) the bond equivalent rate of 91-day Treasury bills
auctioned at the final auction held prior to such June
1; plus
‘‘(B) 2.3 percent,
except that such rate shall not exceed 8.25 percent.
‘‘(2) IN SCHOOL AND GRACE PERIOD RULES.—Notwithstand-
ing subsection (h), with respect to any loan under this part
(other than a loan made pursuant to section 428B or 428C)
for which the first disbursement is made on or after July
1, 1998, and before October 1, 1998, the applicable rate of
interest for interest which accrues—
‘‘(A) prior to the beginning of the repayment period
of the loan; or
‘‘(B) during the period in which principal need not
be paid (whether or not such principal is in fact paid)
by reason of a provision described in section 428(b)(1)(M)
or 427(a)(2)(C),
shall be determined under paragraph (1) by substituting ‘1.7
percent’ for ‘2.3 percent’.
‘‘(3) PLUS LOANS.—Notwithstanding subsection (h), with
respect to any loan under section 428B for which the first
disbursement is made on or after July 1, 1998, and before
October 1, 1998, the applicable rate of interest shall, during
any 12-month period beginning on July 1 and ending on June
30, be determined on the preceding June 1 and be equal to
the lesser of—
‘‘(A)(i) the bond equivalent rate of 91-day Treasury
bills auctioned at the final auction held prior to such June
1; plus
‘‘(ii) 3.1 percent; or
‘‘(B) 9.0 percent.
‘‘(4) CONSULTATION.—The Secretary shall determine the
applicable rate of interest under this subsection after consulta-
tion with the Secretary of the Treasury and shall publish such
H. R. 2400—393
‘‘(11) $1,700,000,000 for the fiscal year 2001 and each fiscal
year thereafter.’’.
(b) LIMITATION ON AMOUNT OF TANF FUNDS TRANSFERABLE.—
Section 404(d)(2) of the Social Security Act (42 U.S.C. 604(d)(2))
is amended to read as follows:
‘‘(2) LIMITATION ON AMOUNT TRANSFERABLE TO TITLE XX
PROGRAMS.—
‘‘(A) IN GENERAL.—A State may use not more than
the applicable percent of the amount of any grant made
to the State under section 403(a) for a fiscal year to carry
out State programs pursuant to title XX.
‘‘(B) APPLICABLE PERCENT.—For purposes of subpara-
graph (A), the applicable percent is 4.25 percent in the
case of fiscal year 2001 and each succeeding fiscal year.’’.
(c) EFFECTIVE DATE.—The amendments made by this section
take effect on October 1, 1998.
TITLE IX—AMENDMENTS OF INTERNAL
REVENUE CODE OF 1986
SEC. 9001. SHORT TITLE; AMENDMENT OF 1986 CODE.
(a) SHORT TITLE.—This title may be cited as the ‘‘Surface
Transportation Revenue Act of 1998’’.
(b) AMENDMENT OF 1986 CODE.—Except as otherwise expressly
provided, whenever in this title an amendment or repeal is
expressed in terms of an amendment to, or repeal of, a section
or other provision, the reference shall be considered to be made
to a section or other provision of the Internal Revenue Code of
1986.
SEC. 9002. EXTENSION OF HIGHWAY-RELATED TAXES AND TRUST
FUND.
(a) EXTENSION OF TAXES.—
(1) IN GENERAL.—The following provisions are each amend-
ed by striking ‘‘1999’’ each place it appears and inserting ‘‘2005’’:
(A) Section 4041(a)(1)(C)(iii)(I) (relating to rate of tax
on certain buses).
(B) Section 4041(a)(2)(B) (relating to rate of tax on
special motor fuels), as amended by section 907(a)(1) of
the Taxpayer Relief Act of 1997.
(C) Section 4041(m)(1)(A) (relating to certain alcohol
fuels), as amended by section 907(b) of the Taxpayer Relief
Act of 1997.
(D) Section 4051(c) (relating to termination of tax on
heavy trucks and trailers).
(E) Section 4071(d) (relating to termination of tax on
tires).
(F) Section 4081(d)(1) (relating to termination of tax
on gasoline, diesel fuel, and kerosene).
(G) Section 4481(e) (relating to period tax in effect).
(H) Section 4482(c)(4) (relating to taxable period).
(I) Section 4482(d) (relating to special rule for taxable
period in which termination date occurs).
(2) OTHER PROVISIONS.—
(A) FLOOR STOCKS REFUNDS.—Section 6412(a)(1) (relat-
ing to floor stocks refunds) is amended—
H. R. 2400—394
(i) by striking ‘‘1999’’ each place it appears and
inserting ‘‘2005’’, and
(ii) by striking ‘‘2000’’ each place it appears and
inserting ‘‘2006’’.
(B) INSTALLMENT PAYMENTS OF HIGHWAY USE TAX.—
Section 6156(e)(2) (relating to installment payments of
highway use tax on use of highway motor vehicles) is
amended by striking ‘‘1999’’ and inserting ‘‘2005’’.
(b) EXTENSION OF CERTAIN EXEMPTIONS.—The following provi-
sions are each amended by striking ‘‘1999’’ and inserting ‘‘2005’’:
(1) Section 4221(a) (relating to certain tax-free sales).
(2) Section 4483(g) (relating to termination of exemptions
for highway use tax).
(c) EXTENSION
OF DEPOSITS INTO, AND CERTAIN TRANSFERS
FROM, TRUST FUND.—
(1) IN GENERAL.—Subsection (b), and paragraphs (2) and
(3) of subsection (c), of section 9503 (relating to the Highway
Trust Fund) are each amended—
(A) by striking ‘‘1999’’ each place it appears and insert-
ing ‘‘2005’’, and
(B) by striking ‘‘2000’’ each place it appears and insert-
ing ‘‘2006’’.
(2) MOTORBOAT AND SMALL-ENGINE FUEL TAX TRANSFERS.—
(A) IN
GENERAL.—Paragraphs (4)(A)(i) and (5)(A) of
section 9503(c) are each amended by striking ‘‘1998’’ and
inserting ‘‘2005’’.
(B) CONFORMING AMENDMENTS TO LAND AND WATER
CONSERVATION
FUND.—Section 201(b) of the Land and
Water Conservation Fund Act of 1965 (16 U.S.C. 460l–
11(b)) is amended—
(i) by striking ‘‘1997’’ and inserting ‘‘2003’’, and
(ii) by striking ‘‘1998’’ each place it appears and
inserting ‘‘2004’’.
(3) CONFORMING AMENDMENT.—The heading for paragraph
(3) of section 9503(c) is amended to read as follows:
‘‘(3) FLOOR STOCKS REFUNDS.—’’.
(d) EXTENSION AND EXPANSION OF EXPENDITURES FROM TRUST
FUND.—
(1) HIGHWAY ACCOUNT.—
(A) EXTENSION
OF
EXPENDITURE
AUTHORITY.—Para-
graph (1) of section 9503(c) is amended by striking ‘‘1998’’
and inserting ‘‘2003’’.
(B) EXPANSION OF PURPOSES.—Paragraph (1) of section
9503(c) is amended—
(i) by striking ‘‘or’’ at the end of subparagraph
(C), and
(ii) by striking ‘‘1991.’’ in subparagraph (D) and
all that follows through the end of paragraph (1) and
inserting ‘‘1991, or
‘‘(E) authorized to be paid out of the Highway Trust
Fund under the Transportation Equity Act for the 21st
Century.
In determining the authorizations under the Acts referred to
in the preceding subparagraphs, such Acts shall be applied
as in effect on the date of enactment of the Transportation
Equity Act for the 21st Century.’’.
(2) MASS TRANSIT ACCOUNT.—
H. R. 2400—395
(A) 
EXTENSION
OF
EXPENDITURE
AUTHORITY.—
Paragraph (3) of section 9503(e) is amended by striking
‘‘1998’’ and inserting ‘‘2003’’.
(B) EXPANSION OF PURPOSES.—Paragraph (3) of section
9503(e) is amended—
(i) by striking ‘‘or’’ at the end of subparagraph
(A),
(ii) by adding ‘‘or’’ at the end of subparagraph
(B), and
(iii) by striking all that follows subparagraph (B)
and inserting:
‘‘(C) the Transportation Equity Act for the 21st
Century,
as such section and Acts are in effect on the date of enactment
of the Transportation Equity Act for the 21st Century.’’.
(e) TECHNICAL CORRECTION RELATING TO TRANSFERS TO MASS
TRANSIT ACCOUNT.—
(1) IN GENERAL.—Section 9503(e)(2) is amended by striking
the last sentence and inserting the following: ‘‘For purposes
of the preceding sentence, the term ‘mass transit portion’
means, for any fuel with respect to which tax was imposed
under section 4041 or 4081 and otherwise deposited into the
Highway Trust Fund, the amount determined at the rate of—
‘‘(A) except as otherwise provided in this sentence,
2.86 cents per gallon,
‘‘(B) 1.43 cents per gallon in the case of any partially
exempt methanol or ethanol fuel (as defined in section
4041(m)) none of the alcohol in which consists of ethanol,
‘‘(C) 1.86 cents per gallon in the case of liquefied natu-
ral gas,
‘‘(D) 2.13 cents per gallon in the case of liquefied petro-
leum gas, and
‘‘(E) 9.71 cents per MCF (determined at standard
temperature and pressure) in the case of compressed natu-
ral gas.’’.
(2) EFFECTIVE DATE.—The amendment made by paragraph
(1) shall take effect as if included in the amendment made
by section 901(b) of the Taxpayer Relief Act of 1997.
(f) CLERICAL AMENDMENTS.—
(1) Paragraph (1) of section 9503(b) is amended by striking
subparagraph (C), by striking ‘‘and tread rubber’’ in subpara-
graph (D), and by redesignating subparagraphs (D), (E), and
(F) as subparagraphs (C), (D), and (E), respectively.
(2) Clause (i) of section 9503(c)(2)(A) is amended by adding
‘‘and’’ at the end of subclause (II), by striking subclause (III),
and by redesignating subclause (IV) as subclause (III).
(3) Clause (ii) of section 9503(c)(2)(A) is amended by strik-
ing ‘‘gasoline, special fuels, and lubricating oil’’ each place it
appears and inserting ‘‘fuel’’.
SEC. 9003. EXTENSION AND MODIFICATION OF TAX BENEFITS FOR
ALCOHOL FUELS.
(a) EXTENSION OF TAX BENEFITS.—
(1) EXTENSION.—The following provisions are each amend-
ed by striking ‘‘2000’’ each place it appears and inserting ‘‘2007’’:
(A) Section 4041(b)(2)(C) (relating to termination of
reduction in tax for qualified methanol and ethanol fuel).
H. R. 2400—396
(B) Section 4041(k)(3) (relating to termination of rates
relating to fuels containing alcohol).
(C) Section 4081(c)(8) (relating to termination of special
rate for taxable fuels mixed with alcohol).
(D) Section 4091(c)(5) (relating to termination of
reduced rate of tax for aviation fuel in alcohol mixture,
etc.).
(2) EXTENSION OF REFUND AUTHORITY.—Paragraph (4) of
section 6427(f) (relating to refund for gasoline, diesel fuel, and
aviation fuel used to produce certain alcohol fuels), as amended
by the Taxpayer Relief Act of 1997, is amended by striking
‘‘1999’’ and inserting ‘‘2007’’.
(3) CREDIT FOR ALCOHOL USED AS A FUEL.—Paragraph (1)
of section 40(e) (relating to termination of credit for alcohol
used as a fuel) is amended—
(A) by striking ‘‘December 31, 2000’’ in subparagraph
(A) and inserting ‘‘December 31, 2007’’, and
(B) by striking ‘‘January 1, 2001’’ and inserting ‘‘Janu-
ary 1, 2008’’.
(4) 
TARIFF
SCHEDULE.—Headings 
9901.00.50 
and
9901.00.52 of the Harmonized Tariff Schedule of the United
States (19 U.S.C. 3007) are each amended in the effective
period column by striking ‘‘10/1/2000’’ each place it appears
and inserting ‘‘10/1/2007’’.
(b) MODIFICATION.—
(1) IN GENERAL.—Subsection (h) of section 40 (relating to
alcohol used as fuel) is amended to read as follows:
‘‘(h) REDUCED CREDIT FOR ETHANOL BLENDERS.—
‘‘(1) IN GENERAL.—In the case of any alcohol mixture credit
or alcohol credit with respect to any sale or use of alcohol
which is ethanol during calendar years 2001 through 2007—
‘‘(A) subsections (b)(1)(A) and (b)(2)(A) shall be applied
by substituting ‘the blender amount’ for ‘60 cents’,
‘‘(B) subsection (b)(3) shall be applied by substituting
‘the low-proof blender amount’ for ‘45 cents’ and ‘the
blender amount’ for ‘60 cents’, and
‘‘(C) subparagraphs (A) and (B) of subsection (d)(3)
shall be applied by substituting ‘the blender amount’ for
‘60 cents’ and ‘the low-proof blender amount’ for ‘45 cents’.
‘‘(2) AMOUNTS.—For purposes of paragraph (1), the blender
amount and the low-proof blender amount shall be determined
in accordance with the following table:
In the case of any sale or use
during calendar year:
The blender amount
is:
The low-proof blender
amount is:
2001 or 2002
53 cents
39.26 cents
2003 or 2004
52 cents
38.52 cents
2005, 2006, or 2007 ................
51 cents
37.78 cents.’’.
(2) CONFORMING AMENDMENTS.—
(A) Section 4041(b)(2) is amended—
(i) in subparagraph (A)(i), by striking ‘‘5.4 cents’’
and inserting ‘‘the applicable blender rate’’, and
(ii) by redesignating subparagraph (C), as amended
by subsection (a)(1)(A), as subparagraph (D) and by
inserting after subparagraph (B) the following:
‘‘(C) APPLICABLE
BLENDER
RATE.—For purposes of
subparagraph (A)(i), the applicable blender rate is—
H. R. 2400—397
‘‘(i) except as provided in clause (ii), 5.4 cents,
and
‘‘(ii) for sales or uses during calendar years 2001
through 2007, 1⁄10 of the blender amount applicable
under section 40(h)(2) for the calendar year in which
the sale or use occurs.’’.
(B) Subparagraph (A) of section 4081(c)(4) is amended
to read as follows:
‘‘(A) GENERAL RULES.—
‘‘(i) MIXTURES
CONTAINING
ETHANOL.—Except as
provided in clause (ii), in the case of a qualified alcohol
mixture which contains gasoline, the alcohol mixture
rate is the excess of the rate which would (but for
this paragraph) be determined under subsection (a)
over—
‘‘(I) in the case of 10 percent gasohol, the
applicable blender rate (as defined in section
4041(b)(2)(C)) per gallon,
‘‘(II) in the case of 7.7 percent gasohol, the
number of cents per gallon equal to 77 percent
of such applicable blender rate, and
‘‘(III) in the case of 5.7 percent gasohol, the
number of cents per gallon equal to 57 percent
of such applicable blender rate.
‘‘(ii) MIXTURES NOT CONTAINING ETHANOL.—In the
case of a qualified alcohol mixture which contains gaso-
line and none of the alcohol in which consists of etha-
nol, the alcohol mixture rate is the excess of the rate
which would (but for this paragraph) be determined
under subsection (a) over—
‘‘(I) in the case of 10 percent gasohol, 6 cents
per gallon,
‘‘(II) in the case of 7.7 percent gasohol, 4.62
cents per gallon, and
‘‘(III) in the case of 5.7 percent gasohol, 3.42
cents per gallon.’’.
(C) Section 4081(c)(5) is amended by striking ‘‘5.4
cents’’ and inserting ‘‘the applicable blender rate (as defined
in section 4041(b)(2)(C))’’.
(D) Section 4091(c)(1) is amended by striking ‘‘13.4
cents’’ each place it appears and inserting ‘‘the applicable
blender amount’’ and by adding at the end the following:
‘‘For purposes of this paragraph, the term ‘applicable
blender amount’ means 13.3 cents in the case of any sale
or use during 2001 or 2002, 13.2 cents in the case of
any sale or use during 2003 or 2004, 13.1 cents in the
case of any sale or use during 2005, 2006, or 2007, and
13.4 cents in the case of any sale or use during 2008
or thereafter.’’.
(3) EFFECTIVE DATE.—The amendments made by this sub-
section shall take effect on January 1, 2001.
SEC. 9004. MODIFICATIONS TO HIGHWAY TRUST FUND.
(a) DETERMINATION OF TRUST FUND BALANCES AFTER SEPTEM-
BER 30, 1998.—
H. R. 2400—398
(1) IN GENERAL.—Section 9503 (relating to Highway Trust
Fund) is amended by adding at the end the following new
subsection:
‘‘(f) DETERMINATION OF TRUST FUND BALANCES AFTER SEPTEM-
BER 30, 1998.—For purposes of determining the balances of the
Highway Trust Fund and the Mass Transit Account after September
30, 1998—
‘‘(1) the opening balance of the Highway Trust Fund (other
than the Mass Transit Account) on October 1, 1998, shall
be $8,000,000,000, and
‘‘(2) no interest accruing after September 30, 1998, on any
obligation held by such Fund shall be credited to such Fund.
The Secretary shall cancel obligations held by the Highway Trust
Fund to reflect the reduction in the balance under this subsection.’’.
(2) EFFECTIVE DATE.—The amendment made by paragraph
(1) shall take effect on October 1, 1998.
(b) REPEAL OF LIMITATION ON EXPENDITURES ADDED BY TAX-
PAYER RELIEF ACT OF 1997.—
(1) IN GENERAL.—Subsection (c) of section 9503 (relating
to expenditures from Highway Trust Fund) is amended by
striking paragraph (7).
(2) EFFECTIVE DATE.—The amendment made by paragraph
(1) shall take effect as if included in the amendments made
by section 901 of the Taxpayer Relief Act of 1997.
(c) LIMITATION ON EXPENDITURE AUTHORITY.—Subsection (b)
of section 9503 (relating to transfers to Highway Trust Fund) is
amended by adding at the end the following new paragraph:
‘‘(6) LIMITATION ON TRANSFERS TO HIGHWAY TRUST FUND.—
‘‘(A) IN GENERAL.—Except as provided in subparagraph
(B), no amount may be appropriated to the Highway Trust
Fund on and after the date of any expenditure from the
Highway Trust Fund which is not permitted by this section.
The determination of whether an expenditure is so per-
mitted shall be made without regard to—
‘‘(i) any provision of law which is not contained
or referenced in this title or in a revenue Act, and
‘‘(ii) whether such provision of law is a subse-
quently enacted provision or directly or indirectly seeks
to waive the application of this paragraph.
‘‘(B) EXCEPTION
FOR
PRIOR
OBLIGATIONS.—Subpara-
graph (A) shall not apply to any expenditure to liquidate
any contract entered into (or for any amount otherwise
obligated) before October 1, 2003, in accordance with the
provisions of this section.’’.
(d) MODIFICATION
OF
MASS
TRANSIT
ACCOUNT
RULES
ON
ADJUSTMENTS
OF
APPORTIONMENTS.—Paragraph (4) of section
9503(e) is amended to read as follows:
‘‘(4) LIMITATION.—Rules similar to the rules of subsection
(d) shall apply to the Mass Transit Account.’’.
SEC. 9005. PROVISIONS RELATING TO AQUATIC RESOURCES TRUST
FUND.
(a) INCREASED TRANSFERS.—
(1) Subparagraph (D) of section 9503(b)(4), as amended
by section 9011, is amended by striking ‘‘exceeds 11.5 cents
per gallon,’’ and inserting ‘‘exceeds—
H. R. 2400—399
‘‘(i) 11.5 cents per gallon with respect to taxes
imposed before October 1, 2001,
‘‘(ii) 13 cents per gallon with respect to taxes
imposed after September 30, 2001, and before October
1, 2003, and
‘‘(iii) 13.5 cents per gallon with respect to taxes
imposed after September 30, 2003, and before October
1, 2005,’’.
(2) Clause (ii) of section 9503(c)(4)(A) is amended by adding
at the end the following new flush sentence:
‘‘In making the determination under subclause (II) for
any fiscal year, the Secretary shall not take into
account any amount appropriated from the Boat Safety
Account in any preceding fiscal year but not distrib-
uted.’’.
(b) EXPANSION OF EXPENDITURE AUTHORITY FROM BOAT SAFETY
ACCOUNT.—Section 9504(b)(2) (relating to expenditures from Sport
Fish Restoration Account) is amended—
(1) in subparagraph (A) by striking ‘‘October 1, 1988), and’’
and inserting ‘‘the date of the enactment of the Transportation
Equity Act for the 21st Century),’’,
(2) in subparagraph (B) by striking ‘‘November 29, 1990’’
and inserting ‘‘the date of the enactment of the Transportation
Equity Act for the 21st Century’’, and
(3) by redesignating subparagraph (B) as subparagraph
(C) and by inserting after subparagraph (A) the following new
subparagraph:
‘‘(B) to carry out the purposes of section 7404(d) of
the Transportation Equity Act for the 21st Century (as
in effect on the date of the enactment of such Act), and’’.
(c) EXTENSION
AND EXPANSION
OF EXPENDITURE AUTHORITY
FROM BOAT SAFETY ACCOUNT.—Section 9504(c) (relating to expendi-
tures from Boat Safety Account) is amended—
(1) by striking ‘‘1998’’ and inserting ‘‘2003’’, and
(2) by striking ‘‘October 1, 1988’’ and inserting ‘‘the date
of enactment of the Transportation Equity Act for the 21st
Century’’.
(d) LIMITATION
ON EXPENDITURE AUTHORITY.—Section 9504
(relating to Aquatic Resources Trust Fund) is amended by
redesignating subsection (d) as subsection (e) and by inserting after
subsection (c) the following:
‘‘(d) LIMITATION ON TRANSFERS TO AQUATIC RESOURCES TRUST
FUND.—
‘‘(1) IN GENERAL.—Except as provided in paragraph (2),
no amount may be appropriated or paid to any Account in
the Aquatic Resources Trust Fund on and after the date of
any expenditure from any such Account which is not permitted
by this section. The determination of whether an expenditure
is so permitted shall be made without regard to—
‘‘(A) any provision of law which is not contained or
referenced in this title or in a revenue Act, and
‘‘(B) whether such provision of law is a subsequently
enacted provision or directly or indirectly seeks to waive
the application of this subsection.
‘‘(2) EXCEPTION
FOR
PRIOR
OBLIGATIONS.—Paragraph (1)
shall not apply to any expenditure to liquidate any contract
entered into (or for any amount otherwise obligated) before
H. R. 2400—400
October 1, 2003, in accordance with the provisions of this
section.’’.
(e) EFFECTIVE DATE.—The amendments made by this section
shall take effect on the date of enactment of this Act.
SEC. 9006. REPEAL OF 1.25 CENT TAX RATE ON RAIL DIESEL FUEL.
(a) IN GENERAL.—Section 4041(a)(1)(C)(ii) (relating to rate of
tax on trains) is amended—
(1) in subclause (II), by striking ‘‘October 1, 1999’’ and
inserting ‘‘November 1, 1998’’, and
(2) in subclause (III), by striking ‘‘September 30, 1999’’
and inserting ‘‘October 31, 1998’’.
(b) CONFORMING AMENDMENTS.—
(1) Section 6421(f)(3)(B) is amended—
(A) in clause (ii), by striking ‘‘October 1, 1999’’ and
inserting ‘‘November 1, 1998’’, and
(B) in clause (iii), by striking ‘‘September 30, 1999’’
and inserting ‘‘October 31, 1998’’.
(2) Section 6427(l)(3)(B) is amended—
(A) in clause (ii), by striking ‘‘October 1, 1999’’ and
inserting ‘‘November 1, 1998’’, and
(B) in clause (iii), by striking ‘‘September 30, 1999’’
and inserting ‘‘October 31, 1998’’.
SEC. 9007. ADDITIONAL QUALIFIED EXPENSES AVAILABLE TO NON-
AMTRAK STATES.
(a) IN GENERAL.—Section 977(e)(1)(B) of the Taxpayer Relief
Act of 1997 (defining qualified expenses) is amended—
(1) by striking ‘‘and’’ at the end of clause (iii), and
(2) by striking clause (iv) and inserting the following:
‘‘(iv) capital expenditures related to State-owned
rail operations in the State,
‘‘(v) any project that is eligible to receive funding
under section 5309, 5310, or 5311 of title 49, United
States Code,
‘‘(vi) any project that is eligible to receive funding
under section 103, 130, 133, 144, 149, or 152 of title
23, United States Code,
‘‘(vii) the upgrading and maintenance of intercity
primary and rural air service facilities, and the pur-
chase of intercity air service between primary and
rural airports and regional hubs,
‘‘(viii) the provision of passenger ferryboat service
within the State,
‘‘(ix) the provision of harbor improvements within
the State, and
‘‘(x) the payment of interest and principal on
obligations incurred for such acquisition, upgrading,
maintenance, purchase, expenditures, provision, and
projects.’’.
(b) EFFECTIVE DATE.—The amendments made by this section
shall take effect as if included in the enactment of section 977
of the Taxpayer Relief Act of 1997.
SEC. 9008. DELAY IN EFFECTIVE DATE OF NEW REQUIREMENT FOR
APPROVED DIESEL OR KEROSENE TERMINALS.
Subsection (f) of section 1032 of the Taxpayer Relief Act of
1997 is amended to read as follows:
H. R. 2400—401
‘‘(f) EFFECTIVE DATES.—
‘‘(1) Except as provided in paragraph (2), the amendments
made by this section shall take effect on July 1, 1998.
‘‘(2) The amendment made by subsection (d) shall take
effect on July 1, 2000.’’.
SEC. 9009. SIMPLIFIED FUEL TAX REFUND PROCEDURES.
(a) IN GENERAL.—Subparagraph (A) of section 6427(i)(2) is
amended to read as follows:
‘‘(A) IN GENERAL.—If, at the close of any quarter of
the taxable year of any person, at least $750 is payable
in the aggregate under subsections (a), (b), (d), (h), (l),
and (q) of this section and section 6421 to such person
with respect to fuel used during—
‘‘(i) such quarter, or
‘‘(ii) any prior quarter (for which no other claim
has been filed) during such taxable year,
a claim may be filed under this section with respect to
such fuel.’’.
(b) CONFORMING AMENDMENTS.—
(1) Subsection (i) of section 6427 is amended by striking
paragraph (4) and by redesignating paragraph (5) as paragraph
(4).
(2) Paragraph (2) of section 6427(k) is amended to read
as follows:
‘‘(2) EXCEPTION.—Paragraph (1) shall not apply to a pay-
ment of a claim filed under paragraph (2), (3), or (4) of sub-
section (i).’’.
(3) Paragraph (2) of section 6421(d) is amended to read
as follows:
‘‘(2) EXCEPTION.—
‘‘For payments per quarter based on aggregate amounts payable
under this section and section 6427, see section 6427(i)(2).’’.
(c) EFFECTIVE DATE.—The amendments made by this section
shall take effect on October 1, 1998.
SEC. 9010. ELECTION TO RECEIVE TAXABLE CASH COMPENSATION IN
LIEU OF NONTAXABLE QUALIFIED TRANSPORTATION
FRINGE BENEFITS.
(a) NO CONSTRUCTIVE RECEIPT.—
(1) IN GENERAL.—Paragraph (4) of section 132(f) (relating
to qualified transportation fringe) is amended to read as follows:
‘‘(4) NO
CONSTRUCTIVE
RECEIPT.—No amount shall be
included in the gross income of an employee solely because
the employee may choose between any qualified transportation
fringe and compensation which would otherwise be includible
in gross income of such employee.’’.
(2) EFFECTIVE DATE.—The amendment made by this sub-
section shall apply to taxable years beginning after December
31, 1997.
(b) INFLATION ADJUSTMENT ONLY AFTER 1999.—
(1) IN GENERAL.—Paragraph (6) of section 132(f) (relating
to qualified transportation fringe) is amended to read as follows:
‘‘(6) INFLATION ADJUSTMENT.—
‘‘(A) IN
GENERAL.—In the case of any taxable year
beginning in a calendar year after 1999, the dollar amounts
H. R. 2400—402
contained in subparagraphs (A) and (B) of paragraph (2)
shall be increased by an amount equal to—
‘‘(i) such dollar amount, multiplied by
‘‘(ii) the cost-of-living adjustment determined
under section 1(f)(3) for the calendar year in which
the taxable year begins, by substituting ‘calendar year
1998’ for ‘calendar year 1992’.
‘‘(B) ROUNDING.—If any increase determined under
subparagraph (A) is not a multiple of $5, such increase
shall be rounded to the next lowest multiple of $5.’’.
(2) 
CONFORMING
AMENDMENTS.—Section 
132(f)(2) 
is
amended—
(A) by striking ‘‘$60’’ in subparagraph (A) and inserting
‘‘$65’’, and
(B) by striking ‘‘$155’’ in subparagraph (B) and
inserting ‘‘$175’’.
(3) EFFECTIVE DATE.—The amendments made by this sub-
section shall apply to taxable years beginning after December
31, 1998.
(c) INCREASE IN MAXIMUM EXCLUSION FOR EMPLOYER-PROVIDED
TRANSIT PASSES.—
(1) IN
GENERAL.—Subparagraph (A) of section 132(f)(2)
(relating to limitation on exclusion) is amended by striking
‘‘$65’’ and inserting ‘‘$100’’.
(2) NEW
BASE
PERIOD
FOR
INFLATION
ADJUSTMENT.—
Subparagraph (A) of section 132(f)(6) is amended by adding
at the end the following flush sentence:
‘‘In the case of any taxable year beginning in a calendar
year after 2002, clause (ii) shall be applied by substituting
‘calendar year 2001’ for ‘calendar year 1998’ for purposes
of adjusting the dollar amount contained in paragraph
(2)(A).’’.
(3) EFFECTIVE DATE.—The amendments made by this sub-
section shall apply to taxable years beginning after December
31, 2001.
SEC. 9011. REPEAL OF NATIONAL RECREATIONAL TRAILS TRUST FUND.
(a) IN GENERAL.—Section 9511 (relating to National Rec-
reational Trails Trust Fund) is repealed.
(b) CONFORMING AMENDMENTS.—
(1) Section 9503(c) is amended by striking paragraph (6).
(2) Subparagraph (D) of section 9503(b)(4) is amended to
read as follows:
‘‘(D) in the case of gasoline and special motor fuels
used as described in paragraph (4)(D) or (5)(B) of subsection
(c), section 4041 or 4081 with respect to so much of the
rate of tax as exceeds 11.5 cents per gallon,’’.
(3) The table of sections for subchapter A of chapter 98
is amended by striking the item relating to section 9511.