[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2974 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 2974

  To amend the Internal Revenue Code of 1986 to establish a Disaster 
  Relief Trust Fund to provide at least a portion of the funding for 
 Federal disaster programs and to provide for revenues and other funds 
                 to be deposited into such Trust Fund.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             August 6, 1993

Mr. Minge introduced the following bill; which was referred jointly to 
  the Committees on Ways and Means, Small Business, Public Works and 
                    Transportation, and Agriculture

_______________________________________________________________________

                                 A BILL


 
  To amend the Internal Revenue Code of 1986 to establish a Disaster 
  Relief Trust Fund to provide at least a portion of the funding for 
 Federal disaster programs and to provide for revenues and other funds 
                 to be deposited into such Trust Fund.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Disaster Relief Trust Fund Act of 
1993''.

SEC. 2. DISASTER RELIEF TRUST FUND.

    (a) In General.--Subchapter A of chapter 98 of the Internal Revenue 
Code of 1986 (relating to trust fund code) is amended by adding at the 
end thereof the following new section:

``SEC. 9512. DISASTER RELIEF TRUST FUND.

    ``(a) Creation of Trust Fund.--There is established in the Treasury 
of the United States a trust fund to be known as the `Disaster Relief 
Trust Fund', consisting of such amounts as may be appropriated, 
credited, or transferred to such Trust Fund as provided in this 
section, section 9602(b), or other provision of law.
    ``(b) Transfers to Trust Fund.--
            ``(1) In general.--There are hereby appropriated to the 
        Disaster Relief Trust Fund amounts equivalent to the sum of--
                    ``(A) the net revenues received in the Treasury 
                from the Disaster Relief Trust Fund fuel taxes, and
                    ``(B) the revenues received in the Treasury from 
                the taxes imposed by sections 59B and 59C (relating to 
                disaster relief surtaxes).
            ``(2) Disaster relief trust fund fuel taxes.--For purposes 
        of this section, the term `Disaster Relief Trust Fund fuel 
        taxes' means taxes imposed by sections 4041, 4081, and 4091 to 
        the extent attributable to the Disaster Relief Trust Fund 
        financing rate under such sections.
            ``(3) Net revenues.--For purposes of paragraph (1), the 
        term `net revenues' means the amount estimated by the Secretary 
        based on the excess of--
                    ``(A) the Disaster Relief Trust Fund fuel taxes, 
                over
                    ``(B) the decrease in the tax imposed by chapter 1 
                resulting from such taxes.
    ``(c) Expenditures From Trust Fund.--Amounts in the Disaster Relief 
Trust Fund shall be available only for purposes of making expenditures 
to carry out the following:
            ``(1) The Robert T. Stafford Disaster Relief and Emergency 
        Assistance Act.
            ``(2) Sections 5(e), 7(b)(1), 7(b)(2), and 7(m) of the 
        Small Business Act.
            ``(3) Subtitle C of the Consolidated Farm and Rural 
        Development Act.
            ``(4) The emergency crop loss assistance program of the 
        Department of Agriculture conducted under the terms and 
        conditions contained in chapter 3 of subtitle B of title XXII 
        of the Food, Agriculture, Conservation, and Trade Act of 1990 
        (Public Law 101-624; 7 U.S.C. 1421 note) or any successor to 
        such program.
            ``(5) Watershed and flood protection activities conducted 
        by the Soil Conservation Service and conservation and 
        environmental restoration activities conducted by the 
        Agricultural Stabilization and Conservation Service, as 
        specified by the Secretary of Agriculture.
            ``(6) Other disaster relief programs, as specified by the 
        Director of the Federal Emergency Management Agency.
The amount available for any fiscal year under any provision referred 
to in the preceding sentence shall be the amount specified by the 
Director of the Federal Emergency Management Agency.
    ``(d) Authority To Borrow.--
            ``(1) In general.--There are hereby appropriated to the 
        Disaster Relief Trust Fund as repayable advances such sums as 
        the Director of the Federal Emergency Management Agency 
        determines necessary to carry out the purposes of such Trust 
        Fund.
            ``(2) Limitation on amount outstanding.--The maximum 
        aggregate amount of repayable advances to the Disaster Relief 
        Trust Fund which is outstanding at any one time shall not 
        exceed an amount equal to \1/3\ of the revenues that the 
        Secretary estimates will be received by such Trust Fund during 
        the following fiscal year.
            ``(3) Repayment of advances.--
                    ``(A) In general.--Advances made to the Disaster 
                Relief Trust Fund shall be repaid, and interest on such 
                advances shall be paid, to the general fund of the 
                Treasury when the Secretary determines that moneys are 
                available for such purposes in such Fund.
                    ``(B) Rate of interest.--Interest on advances made 
                pursuant to this subsection shall be at a rate 
                determined by the Secretary (as of the close of the 
                calendar month preceding the month in which the advance 
                is made) to be equal to the current average market 
                yield on outstanding marketable obligations of the 
                United States with remaining periods to maturity 
                comparable to the anticipated period during which the 
                advance will be outstanding and shall be compounded 
                annually.
    ``(e) Transfers From Trust Fund for Certain Repayments and 
Credits.--
            ``(1) In general.--The Secretary shall pay from time to 
        time from the Disaster Relief Trust Fund into the general fund 
        of the Treasury amounts equivalent to--
                    ``(A) the payments under sections 6420, 6421, and 
                6427, and
                    ``(B) the credits allowed under section 34,
        to the extent such payments and credits are attributable to the 
        Disaster Relief Trust Fund financing rate.
            ``(2) Transfers based on estimates.--Transfers under 
        paragraph (1) shall be made on the basis of estimates by the 
        Secretary, and proper adjustments shall be made in amounts 
        subsequently transferred to the extent prior estimates were in 
        excess of or less than the amounts required to be 
        transferred.''
    (b) Clerical Amendment.--The table of sections for such subchapter 
A is amended by adding at the end thereof the following new item:

                              ``Sec. 9512. Disaster Relief Trust 
                                        Fund.''

SEC. 3. INCREASE IN TAXES ON MOTOR FUELS FOR DISASTER RELIEF TRUST 
              FUND.

    (a) Gasoline.--
            (1) In general.--Subparagraph (A) of section 4081(a)(2) of 
        the Internal Revenue Code of 1986 (relating to rate of tax) is 
        amended--
                    (A) by striking ``and'' at the end of clause (ii),
                    (B) by striking the period at the end of clause 
                (iii) and inserting ``, and'', and
                    (C) by adding at the end thereof the following new 
                clause:
                            ``(iv) the Disaster Relief Trust Fund 
                        financing rate.''
            (2) Rates of tax.--Subparagraph (B) of section 4081(a)(2) 
        of such Code is amended--
                    (A) by striking ``and'' at the end of clause (ii),
                    (B) by striking the period at the end of clause 
                (iii) and inserting ``, and'', and
                    (C) by adding at the end thereof the following new 
                clause:
                            ``(iv) the Disaster Relief Trust Fund 
                        financing rate is 2 cents a gallon.''
            (3) Gasoline used in noncommercial aviation.--Paragraph (3) 
        of section 4041(c) of such Code is amended by striking ``15 
        cents a gallon'' and inserting ``the sum of 15 cents per gallon 
        plus the Disaster Relief Trust Fund financing rate (if any) in 
        effect under section 4081''.
    (b) Diesel Fuel.--
            (1) Clause (i) of section 4091(b)(1)(A) of such Code is 
        amended by striking ``and the diesel fuel deficit reduction 
        rate'' and inserting ``, the diesel fuel deficit reduction 
        rate, and the Disaster Relief Trust Fund financing rate''.
            (2) Subsection (b) of section 4091 of such Code is amended 
        by redesignating paragraphs (5) and (6) as paragraphs (6) and 
        (7), respectively, and by inserting after paragraph (4) the 
        following new paragraph:
            ``(5) Disaster relief trust fund financing rate.--For 
        purposes of paragraph (1), except as provided in subsection 
        (c), the Disaster Relief Trust Fund financing rate is the 
        Disaster Relief Trust Fund financing rate (if any) in effect 
        under section 4081.''
            (3)(A) Subparagraph (A) of section 4093(c)(2) of such Code 
        is amended--
                    (i) by inserting ``and disaster relief taxes'' 
                after ``taxes'' in the heading, and
                    (ii) by inserting ``and the Disaster Relief Trust 
                Fund financing rate'' after ``financing rate''.
            (B) Paragraph (3) of section 6427(l) of such Code is 
        amended--
                    (i) by inserting ``and disaster relief tax'' after 
                ``tax'' in the heading, and
                    (ii) by inserting ``and the Disaster Relief Trust 
                Fund financing rate'' after ``financing rate''.
    (c) Aviation Fuel.--Clause (ii) of section 4091(b)(1)(A) of such 
Code is amended by inserting ``and the Disaster Relief Trust Fund 
financing rate'' after ``financing rate''.
    (d) Special Motor Fuels.--The last sentence of paragraph (2) of 
section 4041(a) of such Code is amended by striking ``and the deficit 
reduction rate'' and inserting ``, the deficit reduction rate, and the 
Disaster Relief Trust Fund financing rate''.
    (e) Suspension of Taxes If Disaster Relief Trust Fund Adequately 
Funded.--Subsection (d) of section 4081 of such Code is amended by 
adding at the end thereof the following new paragraph:
            ``(4) Disaster relief trust fund financing rate.--The 
        Disaster Relief Trust Fund financing rate under subsection 
        (a)(2) shall not apply during any calendar year if the 
        Secretary estimates that as of the close of the preceding 
        calendar year the unobligated balance in the Disaster Relief 
        Trust Fund will exceed an amount equal to 300 percent of the 
        annual average of the aggregate expenditures under the programs 
        referred to in a paragraph of section 9512(c) during the 10-
        year period ending with such preceding calendar year.''
    (f) Effective Date.--The amendments made by this section shall take 
effect on January 1, 1994.

SEC. 4. DISASTER RELIEF SURTAXES.

    (a) General Rule.--Subchapter A of chapter 1 of the Internal 
Revenue Code of 1986 (relating to determination of tax liability) is 
amended by adding at the end thereof the following new part:

             ``PART VIII--TAX SURCHARGE FOR DISASTER RELIEF

                              ``Subpart A. Noncorporate taxpayers.
                              ``Subpart B. Corporate taxpayers.
                              ``Subpart C. General provisions.

                  ``Subpart A--Noncorporate Taxpayers

                              ``Sec. 59B. Imposition of surtax.

``SEC. 59B. IMPOSITION OF SURTAX.

    ``(a) Regular Tax.--In the case of an individual, the amount of the 
tax imposed under section 1 for any taxable year shall be increased by 
the surtax percentage of the tax imposed under section 1 for such 
taxable year (determined without regard to this section).
    ``(b) Minimum Tax.--In the case of an individual, the amount of the 
tentative minimum tax determined under section 55 for any taxable year 
shall be increased by the surtax percentage of the tentative minimum 
tax for such taxable year (determined without regard to this section).
    ``(c) Surtax To Apply to Estates and Trusts.--For purposes of this 
section, the term `individual' includes any estate or trust taxable 
under section 1.
    ``(d) Coordination With Other Provisions.--The provisions of this 
section--
            ``(1) shall be applied after the application of section 
        1(h), but
            ``(2) before the application of any other provision of this 
        title which refers to the amount of the tax imposed by section 
        1 or 55, as the case may be.

                    ``Subpart B--Corporate Taxpayers

                              ``Sec. 59C. Imposition of surtax.

``SEC. 59C. IMPOSITION OF SURTAX.

    ``(a) Normal Corporate Tax.--
            ``(1) In general.--In the case of a corporation, the amount 
        of the tax imposed under section 11 for any taxable year shall 
        be increased by the surtax percentage of the amount of the tax 
        imposed under section 11 for such taxable year (determined 
        without regard to this section).
            ``(2) Treatment of certain taxes.--For purposes of 
        paragraph (1), a tax shall be treated as imposed under section 
        11 if the amount of such tax is determined by reference to the 
        provisions of section 11 (or by reference to any rate contained 
        therein).
    ``(b) Minimum Tax.--In the case of a corporation, the amount of the 
tentative minimum tax determined under section 55 for any taxable year 
shall be increased by the surtax percentage of the amount of the 
tentative minimum tax for such taxable year (determined without regard 
to this section).
    ``(c) Coordination With Other Provisions.--The provisions of this 
section shall be applied--
            ``(1) after the application of section 1201 and 801(a)(2), 
        but
            ``(2) before the application of any other provision of this 
        title which refers to the amount of tax imposed by section 11 
        or 55, as the case may be.

                    ``Subpart C--General Provisions

                              ``Sec. 59D. Termination; definitions and 
                                        special rules.

``SEC. 59D. TERMINATION; DEFINITIONS AND SPECIAL RULES.

    ``(a) Termination.--The taxes imposed by this part shall not apply 
to any taxable year beginning in a calendar year during which the 
Disaster Relief Trust Fund financing rate under section 4081 does not 
apply.
    ``(b) Surtax Percentage.--For purposes of this part, the term 
`surtax percentage' means, with respect to taxable years beginning in a 
calendar year, the percentage determined by the Secretary for such 
calendar year which the Secretary estimates will, when added to all 
other projected sources of revenue for the trust fund, provide the 
Disaster Relief Trust Fund from taxable years beginning in such 
calendar year with $4,000,000,000 in revenue.
    ``(c) Section 15 not to Apply.--Section 15 shall not apply to any 
change in rates under this part.
    ``(d) Adjustment to Application of Certain Provisions.--
            ``(1) Dividends paid on certain preferred stock.--In 
        computing for a taxable year of a corporation the fractions 
        described in sections 244(a)(2) and 247(a)(2), the denominator 
        shall, under regulations prescribed by the Secretary, be 
        increased to reflect the provisions of this part.
            ``(2) Shareholders of regulated investment companies.--In 
        computing the adjustment to basis described in section 
        852(b)(3)(D)(iii), the percentage set forth therein shall be 
        adjusted, under regulations prescribed by the Secretary, to 
        reflect the provisions of this part.''
    (b) Clerical Amendment.--The table of parts for subchapter A of 
chapter 1 of such Code is amended by adding at the end thereof the 
following new item:

                              ``Part VIII. Tax surcharge for disaster 
                                        relief.''
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1993.

SEC. 5. TRANSFER OF FUNDS OF THE COMMODITY CREDIT CORPORATION TO THE 
              DISASTER RELIEF TRUST FUND.

    (a) Surplus Crop Loss Assistance.--
            (1) Transfer required.--From funds appropriated or 
        otherwise made available to provide emergency crop loss 
        assistance during a fiscal year pursuant the terms and 
        conditions contained in chapter 3 of subtitle B of title XXII 
        of the Food, Agriculture, Conservation, and Trade Act of 1990 
        (Public Law 101-624; 7 U.S.C. 1421 note) or any successor to 
        such chapter, the Secretary of Agriculture shall transfer to 
        the Disaster Relief Trust Fund established in section 9512 of 
        the Internal Revenue Code of 1986 all such funds that are 
        unobligated at the end of that fiscal year and that the 
        Secretary determines are not required to complete operations of 
        the crop loss assistance program for that fiscal year.
            (2) Time for transfer.--The Secretary shall make any 
        transfer required by this subsection as soon as possible after 
        the end of the fiscal year involved.
    (b) Surplus Price Support Funds.--
            (1) Transfer required.--If the Secretary of Agriculture 
        determines that expenditures to provide price support for an 
        agricultural commodity under the Agricultural Act of 1949 (7 
        U.S.C. 1421 et seq.) for a fiscal year are reduced as a 
        consequence of an increase in the price of the commodity 
        directly related to crop losses resulting from damaging weather 
        or other disaster, the Secretary shall transfer to the Disaster 
        Relief Trust Fund established in section 9512 of the Internal 
        Revenue Code of 1986 an amount equal to--
                    (A) the difference between the price support 
                expenditures that the Secretary estimates would 
                otherwise have been made with respect to that commodity 
                during that fiscal year in the absence of such price 
                increase; and
                    (B) the amount of the expenditures actually made 
                with respect to that commodity.
            (2) Time for determination.--The Secretary shall make a 
        determination under this subsection for an agricultural 
        commodity whenever the Secretary provides crop loss assistance 
        with respect to that commodity pursuant to the terms and 
        conditions contained in chapter 3 of subtitle B of title XXII 
        of the Food, Agriculture, Conservation, and Trade Act of 1990 
        (Public Law 101-624; 7 U.S.C. 1421 note) or any successor to 
        such chapter.
            (3) Time for transfer.--The Secretary shall make any 
        transfer required by this subsection as soon as possible after 
        the end of the fiscal year involved.
    (c) Limitation on Transfers.--No amount may be transferred under 
this section to the extent such transfer would increase the unobligated 
balance in the Disaster Relief Trust Fund to an amount in excess of the 
limitation of section 4081(d)(4) of the Internal Revenue Code of 1986.

SEC. 6. REPORT TO CONGRESS.

    (a) In General.--Not later than 1 year after the date of the 
enactment of this Act, the Director of the Federal Emergency Management 
Agency shall transmit to Congress a report on insurance programs which 
provide coverage for losses due to disasters of the types that have 
been the subject of Presidential disaster declarations in the last 25 
years.
    (b) Contents.--The report to be transmitted under subsection (a) 
shall contain the following:
            (1) A description of Federal and private insurance programs 
        which provide coverage for losses due to such disasters.
            (2) A description of the availability of insurance under 
        such programs.
            (3) An analysis of the need for additional insurance 
        programs to provide coverage for losses due to disasters and 
        recommendations on what role, if any, the Federal Government 
        should perform in establishing and maintaining such insurance.
            (4) An analysis of the effect of establishing such 
        additional insurance programs on revenue levels required for 
        maintenance of the Disaster Trust Fund.
            (5) Recommendations for legislative and administrative 
        programs to reduce losses due to disasters, including the 
        anticipated cost and effectiveness of such programs.

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HR 2974 IH----2