An Act to amend the Internal Revenue Code of 1954 to provide that income from the conducting of certain bingo games by certain tax-exempt organizations will not be subject to tax, and for other purposes.
PL 95-502 (H.R.8533), enacted 10/21/1978

PUBLIC LAW 95-502—OCT. 21, 1978 
92 STAT. 1693 
Public Law 95-502 
95th Congress 
An Act 
To amend the Internal Kevenue Code of 1954 to provide that income from the 
conducting of certain bingo games by certain tax-exempt organizations will 
not be subject to tax, and for other purposes. 
Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress asserribled^ 
TITLE I—REPLACEMENT OF LOCKS AND DAM 26; UPPER 
MISSISSIPPI RIVER SYSTEM COMPREHENSIVE MAS-
TER MANAGEMENT PLAN 
SEC. 101. (a) The Upper Mississippi River Basin Commission 
(referred to in this section as the "Commission") shall prepare a com-
prehensive master plan for the management of the Upper Mississippi 
River System in cooperation with the appropriate Federal, State, and 
local officials. The Commission shall publish a preliminary plan not 
later than January 1,1981. The Commission shall hold public hearings 
on the preliminary plan in each State which would be affected by the 
plan, shall review all comments presented at such hearings or submitted 
in writing to the Commission, and, after making any revisions in the 
plan it decides are necessary, submit to Congress a final master plan 
not later than January 1,1982. All decisions of the Commission related 
to the master plan shall be made by a two-thirds majority vote of the 
Commission. 
(b) The Commission shall provide for public participation in the 
development, revision, and implementation of said plan and shall 
encourage and assist such participation. The Commission shall, within 
150 days after the date of enactment of this Act, publish guidelines in 
the Federal Register for public participation m the development, 
revision, and implementation of the plan. The final master plan shall 
not be implemented without the express approval of the plan by an 
Act of Congress enacted after the date of enactment of this Act. After 
such approval, no change may be made in the master plan except as 
may be provided by an Act of Congress enacted after the date of enact-
ment of the Act approving the master plan. No person shall engage 
in any activity which violates any provision of the plan or which is 
inconsistent (as determined under regulations promulgated by the 
Commission) with the plan. 
(c) The Commission, in developing the plan, shall identify the 
various economic, recreational, and environmental objectives of the 
Upper Mississippi River System, recommend guidelines to achieve such 
objectives, and propose methods to assure compliance with such guide-
lines and coordination of future management decisions affecting the 
Upper Mississippi River System, and include with the proposed master 
plan any legislative proposals which may be necessary to carry out such 
recommendations and achieve such objectives. 
(d) For the purposes of developing the plan, the Commission shall 
conduct such studies as it deems necessary to carry out its respon-
sibilities under this section, utilizing, to the fullest extent possible, 
Oct. 21, 1978 
[H.R. 8533] 
Internal Revenue 
Code of 1954, 
amendment. 
42 u s e 1962b-3 
note. 
Preliminary plan. 
Final plan, 
submittal to 
Congress. 
Publication in 
Federal Register. 
92 STAT. 1694 
PUBLIC LAW 95-502—OCT. 21, 1978 
the resources and results of the Upper Mississippi River resources 
management (GREAT) study conducted pursuant to section 117 
of the Water Resources Development Act of 1976 (Public Law 
90 Stat. 2924. 
94-587) and of other ongoing or past studies. The Commission may 
request appropriate Federal, State, or local agencies to prepare such 
studies. Any Federal agency to which such a request is submitted 
may conduct any such study for the purpose of this section. 
Studies. 
(e) Studies conducted pursuant to this section shall include, but 
not be limited to, the following: 
(1) The Secretary of the Interior and the Secretary of the 
' 
-'•' 
Army, working through the Commission, shall undertake a study 
to determine the carrying capacity of the Upper Mississippi River 
System, and the long- and short-term systematic ecological 
impacts of (A) present and any projected expansion of naviga-
tion capacity on the fish and wildlife, water quality, wilderness, 
. 
and public recreational opportunities of said rivers, (B) present 
,' 
operation and maintenance programs, (C) the means and meas-
ures that should be adopted to prevent or minimize loss of or 
damage to fish and wildlife, and (D) a specific analysis of the 
immediate and systematic environmental effects of any second 
" "' 
lock at Alton, Illinois, and provide for the mitigation of any 
. ,' \ 
', 
adverse impact on, and the enhancement of, such resources. 
(2) The Commission shall undertake studies to determine— 
(A) the relationship of any expansion of navigational 
capacity on the Upper Mississippi River System to national 
transportation policy, 
(B) the direct and indirect effects of any expansion of 
"'^ 
navigational capacity on the Nation's railroads and on ship-
pers dependent upon rail service, and 
' * 
(C) transportation costs and benefits to the Nation to be 
derived from any expansion of navigational capacity on said 
;,'f " ^ .; 
River System. 
1. - "ri .".,:. 
;pj^^ Commission is directed to immediately initiate a specific 
evaluation of the economic need for a second lock at Alton, Illi-
nois, and the direct and indirect systematic effects and needs for 
such a second lock at Alton, Illinois. 
(3) The Commission shall undertake a program of studies, 
including a demonstration program to evaluate the benefits and 
costs of disposing of dredge spoil material in contained areas 
located out of the floodplain. The program shall include, but shall 
not be limited to, the evaluation of possible uses in the market-
place for the dredge spoil studies and demonstration programs to 
minimize the environmental effects of channel operation and main-
tenance activities. 
(4) The development by the Commission of a computerized 
analytical inventory and system analysis for the Upper Missis-
sippi River System to facilitate evaluation of the comparative 
environmental effects of alternative management proposals. 
(f) Any Secretary responsible for conducting a study under sub-
section (e) of this section, and other studies conducted under this sec-
tion, shall produce one or more draft reports containing study 
conclusions and appropriate appendix materials and shall present the 
reports to the Commission for approval and inclusion in the master 
plan process. 
'Kss^kni?. 
PUBLIC LAW 95-502—OCT. 21, 1978 
92 STAT. 1695 
(g) To carry out the provisions of this section, there are authorized Appropriation 
to be appropriated to the Commission, through the United States authorization. 
Water Eesources Council, $12,000,000. The Commission is authorized 
to transfer funds to such Federal, State, or local government agencies 
as it deems necessary to carry out the studies and analysis authorized 
by this section. 
(h) For purposes of this section, the Upper Mississippi Kiver Sys-
tem consists of those river reaches containing commercial navigation 
channels on the Mississippi River main stem north of Cairo, Illinois, 
the Minnesota River, Minnesota; Black River, Wisconsin; Saint Croix 
River, Minnesota and Wisconsin; Illinois River and Waterway, 
Illinois; and Kaskaskia River, Illinois. 
(i) No replacement, construction, or rehabilitation that expands the 
navigation capacity of locks, dams, and channels shall be undertaken 
by the Secretary of the Army to increase the navigation capacity of the 
Upper Mississippi River System, until the master plan prepared pur-
suant to this section has been approved by the Congress except as 
provided in section 102 and except for necessary operating and main-
tenance activities. 
(j) The lock and dam authorized pursuant to section 102 shall be 
designed and constructed to provide for possible future expansion. 
All other construction activities initiated by the Secretary of the Army 
on the Upper Mississippi River north of Cairo, Illinois, and on the 
Illinois River north of Grafton, Illinois, shall be initiated only in 
accordance with the guidelines set forth in the master plan. 
SEC. 102. (a) The Secretary of the Army, acting through the Chief 
of Engineers, is authorized to replace locks and dam 26, Mississippi 
River, Alton, Illinois, and Missouri, by constructing a new dam and 
a single, one-hundred-and-ten-foot by one-thousand-two-hundred-foot 
lock at a location approximately two miles downstream from the 
existing dam, substantially in accordance with the recommendations 
of the Chief of Engineers in his report on such project dated July 31, 
1976, at an estimated cost of $421,000,000. 
(b) The Secretary of the Army, acting through the Chief of Engi-
neers, is authorized to replace, at Federal expense as a part of project 
costs authorized in subsection (a) terrestrial wildlife habitat inundated 
as a result of the construction of the project on an acre-for-acre basis 
in the respective States of Missouri and Illinois and to manage such 
lands as are thus acquired by the Secretary for wildlife protection 
purposes. The Secretary is further authorized to provide project-
related recreation development on or in the vicinity of Ellis Island, 
Missouri, that requires no separable project lands and includes facili-
ties such as roads, parking lots, walks, picnic areas, a boat launching 
ramp, and a beach, at an estimated cost of $4,000,000 to be cost shared 
with the State of Missouri and administered in accordance with the 
provisions of the Federal Water Project Recreation Act and under- 16 USC 460/-12 
taken independently of the navigation feature of the project. 
"ote. 
(c) The project depth of the channel above Cairo, Illinois, on the 
Mississippi River shall not exceed 9 feet, and neither the Secretary 
of the Army nor any other Federal official shall study the feasibility 
of deepening the navigation channels in the Minnesota River, Min-
nesota; Black River, Wisconsin; Saint Croix River, Minnesota and 
Wisconsin; the Mississippi River north of Cairo, Illinois; the Kas-
kaskia River, Illinois; and the Illinois River and Waterway, Illinois, 
unless specifically authorized by an Act of Congress enacted after the 
date of enactment of this Act. 
92 STAT. 1696 
PUBLIC LAW 95-502—OCT. 21, 1978 
Inland 
Waterways 
Revenue Act of 
1978. 
26 u s e 4042 
note. 
26 u s e 4041. 
26 u s e 4042. 
TITLE II—INLAND WATERWAYS REVENUE ACT OF 1978 
Sec. 201. Short title. 
Sec. 202. Imposition of tax. 
Sec. 203. Establishment of Inland "Waterways Trust Fund. 
Sec. 204. Trust Fund available for expenditures for navigation 
construction 
and rehabilitation projects on inland waterways. 
Sec. 205. Study with respect to inland waterway user taxes and charges. 
Sec. 206. Inland and intracoastal waterways of the United States. 
SEC. 201. SHORT TITLE. 
This title may be cited as the "Inland Waterways Revenue Act of 
1978". 
SEC. 202. IMPOSITION OF TAX. 
(a) I N GENERAL.—Chapter 31 of the Internal Revenue Code of 
1954 (relating to special fuels) is amended by adding at the end 
thereof the following new section: 
"SEC. 4042. TAX ON FUEL USED IN COMMERCIAL TRANSPORTATION 
ON INLAND WATERWAYS. 
"(a) I N GENERAL.—There is hereby imposed a tax on any liquid 
used during any calendar quarter by any person as a fuel in a vessel 
in commercial waterway transportation. 
"(b) AMOUNT OF TAX.—The tax imposed by subsection (a) shall 
be determined from the following table: 
-
"If the use occurs— 
The tax is— 
"After September 30, 1980 and before October 1, 1981 
4 cents a gallon 
"After September 30, 1981 and before October 1, 1983 
6 cents a gallon 
"After September 30, 1983 and before October 1, 1985 
8 cents a gallon 
"After 
September 30, 1985 
10 cents a gallon 
" ( c ) E X E M P T I O N S . — 
"(1) DEEP-DRAFT OCEAN-GOING VESSELS.—The tax imposed by 
subsection (a) shall not apply with respect to any vessel designed 
primarily for use on the high seas which has a draft of more 
than 12 feet. 
"(2) PASSENGER VESSELS.—The tax imposed by subsection (a) 
shall not apply with respect to any vessel used primarily for the 
transportation of persons. 
"(3) U S E BY STATE OR LOCAL GOVERNMENT I N TRANSPORTING 
PROPERTY IN A STATE O
R LOCAL 15USINESS.—Subparagraph (B) of 
subsection (d) (1) shall not apply with respect to use by a State or 
political subdivision thereof. 
"(4) U S E I N MOVING LASH AND SEABEE OCEAN-GOING BARGES.— 
The tax imposed by subsection (a) shall not apply with respect 
to use for movement by tug of exclusively L A S H 
(Lighter-
aboard-ship) and S E A B E E ocean-going barges released by their 
ocean-going carriers solely to pick up or deliver international 
cargoes. 
"(d) DEFINITIONS.—For purposes of this section— 
" (1) COMMERCIAL WATERWAY TRANSPORTATION.—The term 'com-
mercial waterway transportation' means any use of a vessel on 
any inland or intracoastal waterway of the United States— 
"(A) in the business of transporting property for com-
pensation or hire, or 
"(B) in transporting property in the business of the owner, 
lessee, or operator of the vessel (other than fish or other 
aquatic animal life caught on the voyage). 
"(2) 
INLAND OR INTRACOASTAL 
WATERWAY OF THE UNITED 
STATES.—The term 'inland or intracoastal waterway of the United 
PUBLIC LAW 95-502—OCT. 21, 1978 
92 STAT. 1697 
States' means any inland or intracoastal waterway of the United 
States which is described in section 206 of the Inland Waterways 
Kevenue Act of 1978. 
Ante, p. 1696. 
"(3) PERSON.—The term 'person' includes the United States, 
a State, a political subdivision of a State, or any agency or 
instrumentality of any of the foregoing. 
"(e) DATE FOR FILING RETURN.—The date for filing the return of 
the tax imposed by this section for any calendar quarter shall bo the 
last day of the first month following such quarter.". 
(b) TECHNICAL AMENDMENT.—Section 4293 of such Code (relating 26 USC 4293. 
to exemption for United States and possessions) is amended by strik-
ing out "chapters 31 and 32" and inserting in lieu thereof "section 
4041, chapter 32". 
26 USC 4041. 
(c) CLERICAL AMENDMENT.—The table of sections for chapter 31 of 
such Code is amended by adding at the end thereof the following new 
item: 
"Sec. 4042. Tax on fuel used in commercial transportation on inland 
waterways.". 
(d) EFFECTIVE DATE.—The amendments made by this section shall 
26 USC 4042 
take effect on October 1,1980. 
note. 
SEC. 203. ESTABLISHMENT OF INLAND WATERWAYS TRUST FUND. 33 USC 1801. 
(a) CREATION OF TRUST FUND.—There is established in the Treasury 
of the United States a trust fund to be known as the "Inland Water-
ways Trust Fund" (hereinafter in this title referred to as the "Trust 
Fund"), consisting of such amounts as may be appropriated or credited 
to the Trust Fund as provided in this section. 
(b) TRANSFER TO TRUST F U N D OF AMOUNTS EQUIVALENT TO CERTAIN 
TAXES.— 
(1) I N GENERAL.—There are hereby appropriated to the Trust 
Fund amounts determined by the Secretary of the Treasury 
(hereinafter in this section referred to as the "Secretary") to be 
equivalent to the amounts of the taxes received in the Treasury 
under section 4042 of the Internal Revenue Code of 1954 (relating 
Ante, p. 1696. 
to tax on fuel used in commercial transportation on inland 
waterways). 
(2) METHOD OF TRANSFER.—The amounts appropriated by para-
graph (1) shall be transferred at least quarterly from the general 
fund of the Treasury to the Trust Fund on the basis of estimates 
made by the Secretary of the amounts referred to in paragraph 
(1) received in the Treasury. 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 required to be 
transferred. 
(c) MANAGEMENT OF TRUST F U N D . — 
(1) REPORT.—^^It shall be the duty of the Secretary to hold the Report to 
Trust Fund, and to report to the Congress each year ending on 
Congress, 
or after September 30, 1981, on the financial condition and the 
results of the operations of the Trust Fund during the preceding 
fiscal year and on its expected condition and operations during the 
fiscal year and the next 5 fiscal years after the fiscal year. Such 
report shall be printed as a House document of the session of the 
Congress to which the report is made. 
(2) INVESTMENT.— 
(A) I N GENERAL.—It shall be the duty of the Secretary to 
invest such portion of the Trust Fund as is not, in his judg-
ment, required to meet current withdrawals. Such investments 
may be made only in interest-bearing obligations of the 
39-194 O—80—pt. 2 
27 : QL3 
92 STAT. 1698 
PUBLIC LAW 95-502—OCT. 21, 1978 
United States. For such purpose, such obligations may be 
acquired (i) on original issue at the issue price, or (ii) by pur-
chase of outstanding obligations at the market price. 
(B) SALE OF OBLIGATIONS.—^Any obligation acquired by the 
Trust Fund may be sold by the Secretary at the market price. 
(C) INTEREST; PROCEEDS FROM SALES AND REDEMPTIONS.— 
The interest on, and the proceeds from the sale or redemption 
of, any obligations held in the Trust Fund shall be credited 
to and form a part of the Trust Fund. 
33 use 1802. 
SEC. 204. TRUST FUND AVAILABLE FOR EXPENDITURES FOR NAVI-
GATION CONSTRUCTION AND REHABILITATION PROJECTS 
ON INLAND WATERWAYS. 
(a) I N GENERAL.—Amounts in the Trust Fund shall be available, as 
provided by appropriations Acts, for making construction and rehabil-
itation expenditures for navigation on the inland and intracoastal 
waterways of the United States described in section 206 of this Act. 
No amount may be appropriated out of the Trust Fund unless the law 
authorizing the expenditure for which the amount is appropriated 
explicitly provides that the appropriation is to be made out of the 
Trust Fund. 
(b) EXPENDITURES MUST B E OTHERWISE AUTHORIZED BY L A W . — 
Nothing in this section shall be deemed to authorize any program, 
project, or other activity not otherwise authorized by law. 
33 use 1803. 
SEC. 205. STUDY WITH RESPECT TO INLAND WATERWAY USER TAXES 
AND CHARGES. 
(a) STUDY DIRECTED.—The Secretary of Transportation and the 
Secretary of Commerce, in consultation with the Secretary of the 
Treasury, the Secretary of Agriculture, the Secretary of Energy, 
the Attorney General of the United States, the Secretary of the Army, 
the Chairman of the Water Resources Council, and the Director of the 
Office of Management and Budget, shall— 
(1) make a full and complete study with respect to inland 
waterway user taxes and charges, and 
(2) make findings and policy recommendations with respect 
thereto. 
Such study shall include (but shall not be limited to) a consideration 
of the matters listed in subsections (b), (c), (d), (e), and (f) of this 
section. 
(b) CONSIDERATIONS RELATING TO THE TAXING MECHANISM.— 
(1) The extent to which the Federal Government should seek 
to recover some or all of Federal expenditures for the benefit of 
inland waterway transportation from the users of the facilities 
for which such expenditures are made. 
(2) The various forms of inland waterway user taxes and 
' ' ' 
charges which could be established. 
(3) The various methods of collecting inland waterway user 
taxes and charges, and the administrative costs of such taxes and 
charges. 
(4) The classes and categories of users and other persons on 
whom inland waterway user taxes and charges should be imposed. 
(5) The waterways of the United States (including the Great 
Lakes, deep draft channels, and coastal ports) which should be 
included in any system of user taxes and charges, together with 
the economic effects of such taxes and charges. 
PUBLIC LAW 95-502—OCT. 21, 1978 
92 STAT. 1699 
(6) The use of revenues derived from inland waterway user 
taxes and charges, including consideration of changes in, or 
alternatives to, the Trust Fund mechanism. 
(c) 
CONSIDERATIONS RELATING TO ECONOMIC EFFECTS.—The eco-
nomic eflfects of waterway user taxes and charges on— 
(1) CARRIERS AND USERS.—On— 
(A) carriers and shippers using the inland waterways, and 
(B) users (including ultimate consumers) of commodities 
which are transported on the inland waterways. 
(2) REGIONS, ETC.—On— 
(A) existing investment in industrial plants, agricultural 
interests, and commercial enterprises, and on related employ-
ment, in regions of the country served by inland water trans-
portation directly or in combination with other modes, and 
(B) future economic growth prospects in such regions, 
including anticipated shifts of industry and employment to 
other areas together with an evaluation of effects on regional 
economies and their development, including consistency with 
Federal policies as set forth in other legislation. 
(3) SMALL BUSINESS AND INDUSTRIAL CONCENTRATION AND COM-
PETITION.—On— 
(A) small business enterprise, and 
(B) industrial concentration and competition, both within 
the transportation industry and in any line of commerce 
(within the meaning of the antitrust laws). 
(4) COMPETITORS.—On the freight rates charged by other modes 
of transportation and the extent of short-term and long-term 
diversion of traffic from the inland waterways to such other modes. 
In considering such diversion of traffic, there shall also be con-
sidered the effects of such diversion on— 
(A) the development of alternative sources of supply and 
on alternative modes of transportation and alternative rout-
ing to market, 
(B) the comparative safety of the handling and trans-
portation of hazardous materials, and 
(C) the comparative energy efficiency of the modes and 
routes of the transportation involved. 
(5) PRICES.—On prices of commodities shipped by inland water-
ways and by competing modes, including the costs of energy 
materials and the effects on electric power rates. 
(6) BALANCE OF PAYMENTS.—On the balance of payments of the 
United States based on our international trade. 
(d) CONSIDERATIONS RELATING TO ECONOMIC FEASIBILITY OF WATER-
WAY 
IMPROVEMENT PROJECTS; LEVEL OF BENEFITS FROM WATERWAY 
EXPENDITURES.— 
(1) The effects of inland waterway user taxes and charges on 
the economic feasibility of inland 
waterway 
improvement 
projects. 
(2) The comparative levels of benefits received from Federal 
expenditures on inland waterways for— 
(A) commercial uses, and 
(B) other uses, including (but not limited to) recreation, 
reclamation, water supply, low-flow augmentation, fish and 
wildlife enhancement, hydroelectric power, flood control, 
and irrigation uses. 
92 STAT. 1700 
PUBLIC LAW 95-502—OCT. 21, 1978 
(e) CONSIDERATIONS RELATING TO FEDERAL ASSISTANCE.— 
(1) The extent of past, present, and expected future Federal 
assistance to the several modes of freight transportation. Such 
consideration shall include an evaluation and comparison of the 
public benefits resulting from such assistance to each of the sev-
eral transportation modes in terms of adequacy, efficiency, and 
economy of service, safety, technological progress, and energy 
conservation. The Federal assistance considered under this para-
graph shall include all forms of such assistance, such as tax 
advantages, direct grants, rate adjustments for improvement pur-
poses, assumption of pension fund liabilities, loans, guarantees, 
capital participation, revenues from land grants, and provision 
of right-of-way operation, maintenance, and improvement. 
(2) The competitive effects of past, present, and expected future 
Federal expenditures on inland waterways on competitive modes 
of transportation. 
(3) The need for Federal assistance to agricultural, industrial, 
and other interests affected by inland waterway user taxes and 
charges. 
(f) 
CONSIDERATIONS RELATING TO POLICY AND FUTURE DEVELOP-
MENT.—The effects of inland waterway user taxes and charges on— 
(1) The achievement of the objectives of the National Trans-
portation Policy as set forth in the preamble to the Transporta-
49 use prec. 1. 
tion Act of 1940. 
(2) The expansion and improvement of the inland waterways 
determined to be necessary by the Secretary of the Army under 
33 use 540 note. 
section 158 of the Water Resources Development Act of 1976 
(Public Law 94-587) or estimated to be necessary under para-
graph (3). 
(3) The requirements of the Nation through the year 2000 for 
transportation service, the portion thereof which should be pro-
vided by inland waterway carriers, and an estimate of the expan-
sion and improvement of inland waterway capacity necessary to 
meet such requirements. 
(g) INLAND WATERWAY USER TAXES AND CHARGES DEFINED.—For 
purposes of this section, the term "inland waterway user taxes and 
charges" means taxes imposed on the use of the inland and intra-
coastal waterways of the United States and all alternatives to such 
taxes. 
Transmittal to 
(h) REPORT.—Not later than September 30, 1981, the Secretary of 
Congress. 
Transportation shall transmit to Congress a final report of the study 
required by this section, together with his findings and recommenda-
tions (including necessary legislation) and the findings and recom-' 
mendations of the Secretary of Commerce, the Secretary of the 
Treasury, the Secretary of Agriculture, the Secretary of Energy, the 
Attorney General of the United States, the Secretary of the Army, 
the Chairman of the Water Resources Council, and the Director of 
the Office of Management and Budget. 
(i) AUTHORIZATION OF APPROPRIATIONS.—There are hereby author-
ized to be appropriated from time to time to the Secretary of Trans-
portation such sums, not to exceed $8,000,000 in the aggregate, as 
may be necessary to carry out the study required by this section. 
33 use 1804. 
SEC. 206. INLAND AND INTRACOASTAL WATERWAYS OF THE UNITED 
STATES. 
Ante, 1696. 
For purposes of section 4042 of the Internal Revenue Code of 1954 
(relating to tax on fuel used in commercial transportation on inland 
waterways) and for purposes of section 204 of this Act, the following 
PUBLIC LAW 95-502—OCT. 21, 1978 
92 STAT. 1701 
inland and intracoastal waterways of the United States are described 
in this section: 
(1) Alabama-Coosa Rivers: From junction with the Tombigbee 
River at river mile (hereinafter referred to as RM) 0 to junction 
with Coosa River at RM 314. 
(2) Allegheny River: From confluence with the Monongahela 
River to form the Ohio River at RM 0 to the head of the existing 
project at East Brady, Pennsylvania, RM 72. 
(3) Apalachicola-Chattahoochee and Flint Rivers: Apalachi-
cola River from mouth at Apalachicola Bay (intersection with the 
Gulf Intracoastal Waterway) RM 0 to junction with Chattachoo-
chee and Flint Rivers at RM 107.8. Chattachoochee River from 
junction with Apalachicola and Flint Rivers at RM 0 to Columbus, 
Georgia, at RM 155 and Flint River, from junction with Apalachi-
cola and Chattahoochee Rivers at RM 0 to Bainbridge, Georgia, 
atRM28. 
(4) Arkansas River (McClellan-Kerr Arkansas River Naviga-
tion System) : From junction with Mississippi River at RM 0 to 
port of Catoosa, Oklahoma, at RM 448.2. 
(5) Atchafalaya River: From RM 0 at its intersection with the 
Gulf Intracoastal Waterway at Morgan City, Louisiana, upstream 
to junction with Red River at RM 116.8. 
(6) Atlantic Intracoastal Waterway: Two inland water routes 
approximately paralleling the Atlantic coast between Norfolk, 
Virginia, and Miami, Florida, for 1,192 miles via both the Alber-
marle and Chesapeake Canal and Great Dismal Swamp Canal 
routes. 
(7) Black Warrior-Tombigbee-Mobile Rivers: Black Warrior 
River System from RM 2.9, Mobile River (at Chickasaw Creek) 
to confluence with Tombigbee River at RM 45. Tombigbee River 
(to Demopolis at RM 215.4) to port of Birmingham, RM's 374-
411 and upstream to head of navigation on Mulberry Fork (RM 
429.6), Locust Fork (RM 407.8), and Sipsey Fork (RM 430.4). 
(8) Columbia River (Columbia-Snake Rivers Inland Water-
ways) : From The Dalles at RM 191.5 to Pasco, Washington 
(McNary Pool), at RM 330, Snake River from RM 0 at the mouth 
to RM 231.5 at Johnson Bar Landing, Idaho. 
(9) Cumberland River: Junction with Ohio River at RM 0 
to head of navigation, upstream to Carthage, Tennessee, at RM 
313.5. 
(10) Green and Barren Rivers: Green River from junction 
with the Ohio River at RM 0 to head of navigation at RM 149.1. 
(11) Gulf Intracoastal Waterway: From St. Mark's River, 
Florida, to Brownsville, Texas, 1,134.5 miles. 
(12) Illinois Waterway (Calumet-Sag Channel) : From the 
junction of the Illinois River with the Mississippi River RM 0 
to Chicago Harbor at Lake Michigan, approximately RM 350. 
(13) Kanawha River: From junction with Ohio River at RM 
0 to RM 90.6 at Deep 
water, West Virginia. 
(14) Kaskaskia River: From junction with the Mississippi 
River at RM 0 to RM 36.2 at Fayetteville, Illinois. 
(15) Kentucky River: From junction with Ohio River at 
RM 0 to confluence of Middle and North Forks at RM 258.6. 
(16) Lower Mississippi River: From Baton Rouge, Louisiana, 
RM 233.9 to Cairo, Illinois, RM 953.8. 
92 STAT. 1702 
PUBLIC LAW 95-502—OCT. 21, 1978 
(17) Upper Mississippi River: From Cairo, Illinois, EM 953.8 
to Minneapolis, Minnesota, RM 1,811.4. 
(18) Missouri River: From junction with Mississippi River 
at RM 0 to Sioux City, Iowa, at RM 734.8. 
(19) Monongahela River: From junction with Allegheny River 
to form the Ohio River at RM 0 to junction of the Tygart and 
West Fork Rivers, Fairmont, West Virginia, at RM 128.7. 
(20) Ohio River: From junction with the Mississippi River 
at RM 0 to junction of the Allegheny and Monongahela Rivers 
at Pittsburgh, Pennsylvania, at RM 981. 
(21) Ouachita-Black Rivers: From the mouth of the Black 
River at its junction with the Red River at RM 0 to RM 351 
at Camden, Arkansas. 
(22) Pearl River: From junction of West Pearl River with 
the Rigolets at RM 0 to Bogalusa, Louisiana, RM 58. 
(23) Red River: From RM 0 to the mouth of Cypress Bayou 
atRM236. 
(24) Tennessee River: From junction with Ohio River at RM 0 
to confluence with Holstein and French Rivers at RM 652. 
(25) White River: From RM 9.8 to RM 255 at Newport, 
Arkansas. 
(26) Willamette River: From RM 21 upstream of Portland, 
Oregon, to Harrisburg, Oregon, at RM 194. 
i 
TITLE III—PROCEEDS FROM BINGO GAMES 
26 use 513. 
SEC. 301. (a) Section 513 of the Internal Revenue Code of 1954 
(defining unrelated trade or business) is amended by adding at the 
end thereof the following new subsection: 
"(f) CERTAIN BINGO GAMES.— 
Definitions. 
"(1) I N GENERAL.—The term 'unrelated trade or business' does 
not include any trade or business which consists of conducting 
bingo games. 
"(2) BINGO GAME DEFINED.—For purposes of paragraph (1), 
the term 'bingo game' means any game of bingo— 
" (A) of a type in which usually— 
"(i) the wagers are placed, 
' 
' 
"(ii) the winners are determined, and 
"(iii) the distribution of prizes or other property is 
made, 
in the presence of all persons placing wagers in such game, 
"(B) the conducting of which is not an activity ordinarily 
carried out on a commercial basis, and 
" (C) the conducting of which does not violate any State or 
local law." 
26use513 note. 
(b) The amendment made by subsection (a) shall apply to taxable 
years beginning after December 31,1969. 
SEC. 302. (a) Paragraph (3) of section 527(c) of the Internal Reve-
26 use 527. 
nue Code of 1954 (defining exempt fimction income) is amended by 
striking out "or" at the end of subparagraph (B), by adding "or" at 
the end of subparagraph (C), and by inserting after subparagraph 
(C) the following new subparagraph: 
"(D) proceeds from the conducting of any bingo game (as 
Supra. 
defined in section 513(f) (2)),". 
PUBLIC LAW 95-502—OCT. 21, 1978 
92 STAT. 1703 
(b)(1) The amendment made by subsection (a) shall apply to 26 USC 527 note, 
taxable years beginning after December 31, 1974, except that not-
withstanding any other provision of law to the contrary, no amounts 
held at the date of enactment of this bill by an organization described 
in section 527(e) (1) of the Internal Revenue Code of 1954 in escrow, 26 USC 527. 
in separate accounts for the payment of Federal taxes, or in any 
other fund which are proceeds described in section 527(c) (3) (D) of 
such Code may be used, directly or indirectly, to make a contribution 
or expenditure (as defined in section 301 (e) and (f) of the Federal 
Election Campaign Act of 1971; 2 U.S.C. 431(f)) in connection with 
any election held before January 1, 1979. 
(2) Such amounts as described in (1) above shall not be considered 
as security or collateral for any loan by any State or national bank 
or any other person or organization. 
Approved October 21, 1978. 
LEGISLATIVE HISTORY: 
HOUSE REPORT No. 95-1608 (Comm. on Ways and Means). 
CONGRESSIONAL RECORD, Vol. 124 (1978): 
Sept. 25, considered and passed House. 
* 
Oct. 10, considered and passed Senate, amended. 
Oct. 13, House concurred in Senate amendment. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 14, No. 43: 
Oct. 21, Presidential statement.