[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 2229 Introduced in Senate (IS)]

103d CONGRESS
  2d Session
                                S. 2229

 To appropriate 2 percent of Federal individual income tax revenues to 
                       the States to fight crime.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                June 22 (legislative day, June 7), 1994

  Mr. Wallop introduced the following bill; which was read twice and 
               referred to the Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
 To appropriate 2 percent of Federal individual income tax revenues to 
                       the States to fight crime.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Tax Rebate to Fight Crime Act''.

SEC. 2. TRUST FUNDS TO FIGHT CRIME.

    (a) In General.--There is hereby appropriated to the Trust Fund To 
Fight Crime of each State for each fiscal year an amount equal to 2 
percent of the net Federal individual income tax revenues for such 
fiscal year which are attributable to residents of such State.
    (b) Trust Fund To Fight Crime.--For purposes of this section, the 
term ``Trust Fund To Fight Crime'' means any trust fund established by 
State law if the only expenditures permitted to be made from such trust 
fund are for--
            (1) paying police officers, including salary, overtime, and 
        other personnel expenses,
            (2) building and operating prisons,
            (3) paying judges of courts handling criminal cases, 
        prosecutors, and public defenders, including salary, overtime, 
        and other personnel expenses, and
            (4) paying the rebates described in subsection (d) to 
        taxpayers.
    (c) Definition of Net Federal Individual Income Tax Revenues.--For 
purposes of this section, the term ``net Federal individual income tax 
revenues'' means, with respect to any fiscal year, the excess of--
            (1) amounts received in the Treasury during such fiscal 
        year from the taxes imposed on individuals under chapters 1 and 
        24 of the Internal Revenue Code of 1986, over
            (2) amounts of such taxes which are credited or refunded to 
        taxpayers during such fiscal year.
    (d) Rebates From State Governments to Their Taxpayers.--
            (1) Voluntary rebates.--Amounts in the Trust Fund To Fight 
        Crime of any State may be rebated (with interest) at any time 
        to the individuals whose liabilities under chapters 1 and 24 of 
        the Internal Revenue Code of 1986 were taken into account in 
        determining the appropriation of the amount to be rebated. The 
        amount rebated to any individual shall be the amount equal to--
                    (A) the amount to be rebated, multiplied by
                    (B) such individual's proportionate share of such 
                liabilities.
            (2) Mandatory rebates.--
                    (A) In general.--Amounts in the Trust Fund To Fight 
                Crime of any State shall be rebated if--
                            (i) such amounts are not spent for the 
                        purposes referred to in paragraphs (1), (2) and 
                        (3) of subsection (b) (or rebated under 
                        paragraph (1) of this subsection) within the 3-
                        year period after the close of the fiscal year 
                        for which such amounts were appropriated to 
                        such Trust Fund, or
                            (ii) such amounts are not spent for such 
                        purposes (or rebated under paragraph (1) of 
                        this subsection) within the 1-year period after 
                        the close of the fiscal year for which such 
                        amounts were appropriated to such Trust Fund 
                        unless, before the close of such 1-year period, 
                        the State has adopted a plan on how to spend 
                        such amounts and has spent at least \1/3\ of 
                        such amounts for such purposes.
                In the case of amounts appropriated for the first 
                fiscal year beginning after the date of the enactment 
                of this Act, clause (ii) shall be applied by 
                substituting ``2-year period'' for ``1-year period'' 
                each place it appears.
                    (B) Rebates.--Any amount required to be rebated 
                under this paragraph shall be paid (with interest) to 
                the individuals whose liabilities under chapters 1 and 
                24 of the Internal Revenue Code of 1986 were taken into 
                account in determining the appropriation of such 
                amount. The amount rebated to any individual shall be 
                the amount equal to--
                            (i) the amount required to be rebated, 
                        multiplied by
                            (ii) such individual's proportionate share 
                        of such liabilities.
            (3) Ordering rules.--For purposes of this subsection, 
        expenditures from any Trust Fund To Fight Crime and rebates 
        shall be treated as being made from deposits in the order in 
        which made, beginning with the earliest deposits.
    (e) Special Rules.--For purposes of this section:
            (1) Transfer of amounts.--Amounts appropriated by this 
        section shall be transferred at least monthly from the general 
        fund of the Treasury on the basis of estimates made by the 
        Secretary of the Treasury of the amounts referred to in this 
        section. Proper adjustments shall be made in the amounts 
        subsequently transferred to the extent prior estimates were in 
        excess of or less than the amounts required to be transferred.
            (2) Residence.--An individual shall be treated as a 
        resident of the State specified in the address shown on the 
        return of tax imposed by chapter 1 of the Internal Revenue Code 
        of 1986 (or, if no return is filed, the address specified in 
        the master files of the Internal Revenue Service).
            (3) Information to assist in rebates.--Notwithstanding 
        section 6103 of such Code, the Secretary of the Treasury shall, 
        upon request, provide such information as the Secretary 
        determines necessary to pay the rebates under subsection (d).
    (f) Effective Date.--The section shall apply to fiscal years 
beginning after the date of the enactment of this Act.

SEC. 3. CONFORMING REDUCTION IN DISCRETIONARY SPENDING LIMITS.

    Upon enactment of this Act, the discretionary spending limits set 
forth in section 601(a)(2) of the Congressional Budget Act of 1974 (as 
adjusted in conformance with section 251 of the Balanced Budget and 
Emergency Deficit Control Act of 1958 and, in the Senate, with section 
24 of House Concurrent Resolution 218 (103d Congress)) are reduced as 
necessary to reflect the amounts appropriated by this Act.

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