[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5995 Introduced in House (IH)]







110th CONGRESS
  2d Session
                                H. R. 5995

To amend the Internal Revenue Code of 1986 to suspend the highway fuels 
   taxes, to provide for a Joint Committee on Earmark Reform, and to 
      prohibit earmarking for the remainder of the 110th Congress.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 8, 2008

Mr. Ryan of Wisconsin (for himself, Mr. Boehner, Mr. Blunt, Mr. Cantor, 
 Mr. Putnam, Mr. Hensarling, Mr. Sensenbrenner, Mr. Flake, Mr. Pence, 
  Mrs. Blackburn, Mr. Campbell of California, Mr. Jordan of Ohio, Mr. 
  Broun of Georgia, and Mr. McCotter) introduced the following bill; 
which was referred to the Committee on Ways and Means, and in addition 
to the Committees on Rules and Budget, for a period to be subsequently 
   determined by the Speaker, in each case for consideration of such 
 provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to suspend the highway fuels 
   taxes, to provide for a Joint Committee on Earmark Reform, and to 
      prohibit earmarking for the remainder of the 110th Congress.

    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 ``Gas Tax Relief and Earmark 
Moratorium Act of 2008''.

      TITLE I--GAS TAX RELIEF AND HIGHWAY TRUST FUND PRESERVATION

SEC. 101. GAS TAX RELIEF.

    (a) Suspension of Highway Fuel Taxes on Gasoline, Diesel Fuel, and 
Kerosene.--
            (1) In general.--Section 4081 of the Internal Revenue Code 
        of 1986 (relating to imposition of tax on gasoline, diesel 
        fuel, and kerosene) is amended by adding at the end the 
        following new subsection:
    ``(f) Suspension of Taxes on Gasoline, Diesel Fuel, and Kerosene.--
            ``(1) In general.--During the suspension period, each rate 
        of tax referred to in paragraph (2) shall be reduced to zero 
        cents per gallon.
            ``(2) Rates of tax.--The rates of tax referred to in this 
        paragraph are the rates of tax otherwise applicable under--
                    ``(A) clauses (i) and (iii) of subsection (a)(2)(A) 
                (relating to gasoline, diesel fuel, and kerosene), 
                determined after application of subsection (a)(2)(B) 
                and without regard to subsection (a)(2)(C), and
                    ``(B) paragraph (1) of section 4041(a) (relating to 
                diesel fuel and kerosene) with respect to fuel sold for 
                use or used in a diesel-powered highway vehicle.
            ``(3) Suspension period.--For purposes of this section, the 
        term `suspension period' means the period beginning on May 26, 
        2008 and ending on September 1, 2008.
            ``(4) Maintenance of trust fund deposits.--In determining 
        the amounts to be appropriated to the Highway Trust Fund under 
        section 9503 and to the Leaking Underground Storage Tank Trust 
        Fund under section 9508, an amount equal to the reduction in 
        revenues from highway fuel taxes on gasoline, diesel, and 
        kerosene by reason of this subsection shall be treated as taxes 
        received in the Treasury under this section or section 4041.''.
            (2) Effective date.--The amendment made by this subsection 
        shall take effect on the date of the enactment of this Act.
    (b) Floor Stock Refunds.--
            (1) In general.--If--
                    (A) before the tax suspension date, tax has been 
                imposed under section 4081 of the Internal Revenue Code 
                of 1986 on any highway motor fuel, and
                    (B) on such date such fuel is held by a dealer and 
                has not been used and is intended for sale,
        there shall be credited or refunded (without interest) to the 
        person who paid such tax (hereafter in this subsection referred 
        to as the ``taxpayer'') an amount equal to the excess of the 
        tax paid by the taxpayer over the tax which would be imposed on 
        such fuel had the taxable event occurred on such date.
            (2) Time for filing claims.--No credit or refund shall be 
        allowed or made under this subsection unless--
                    (A) claim therefor is filed with the Secretary of 
                the Treasury before the date which is 6 months after 
                the tax suspension date based on a request submitted to 
                the taxpayer before the date which is 3 months after 
                the tax suspension date by the dealer who held the 
                highway motor fuel on such date, and
                    (B) the taxpayer has repaid or agreed to repay the 
                amount so claimed to such dealer or has obtained the 
                written consent of such dealer to the allowance of the 
                credit or the making of the refund.
            (3) Exception for fuel held in retail stocks.--No credit or 
        refund shall be allowed under this subsection with respect to 
        any highway motor fuel in retail stocks held at the place where 
        intended to be sold at retail.
            (4) Definitions.--For purposes of this subsection--
                    (A) Tax suspension date.--The term ``tax suspension 
                date'' means the first day of the suspension period in 
                effect under section 4081(f) of the Internal Revenue 
                Code of 1986 (as added by subsection (a) of this 
                section).
                    (B) Highway motor fuel.--The term ``highway motor 
                fuel'' has the meaning given such term for purposes of 
                subsection (c).
                    (C) Other terms.--The terms ``dealer'' and ``held 
                by a dealer'' have the respective meanings given to 
                such terms by section 6412 of such Code.
            (5) Certain rules to apply.--Rules similar to the rules of 
        subsections (b) and (c) of section 6412 of such Code shall 
        apply for purposes of this subsection.
    (c) Floor Stocks Tax Restoration.--
            (1) Restoration of excise tax.--In the case of any highway 
        motor fuel which is held on the tax restoration date by any 
        person, there shall be a floor stocks tax equal to the excess 
        of the tax which would be imposed on such fuel had the taxable 
        event occurred on such date over the tax (if any) previously 
        paid (and not credited or refunded) on such fuel.
            (2) Liability for tax and method of payment.--
                    (A) Liability for tax.--The person holding highway 
                motor fuel on the tax restoration date to which the tax 
                imposed by paragraph (1) applies shall be liable for 
                such tax.
                    (B) Method of payment.--The tax referred to in 
                paragraph (1) shall be paid in such manner as the 
                Secretary shall prescribe.
                    (C) Time for payment.--The tax referred to in 
                paragraph (1) shall be paid on or before the 45th day 
                after the tax restoration date.
            (3) Definitions.--For purposes of this subsection--
                    (A) Tax restoration date.--The term ``tax 
                restoration date'' means the first day after the 
                suspension period (as defined in section 4081(f) of the 
                Internal Revenue Code of 1986).
                    (B) Highway motor fuel.--The term ``highway motor 
                fuel'' means any liquid on which tax would have been 
                imposed under section 4081 of the Internal Revenue Code 
                of 1986 during the suspension period in effect under 
                section 4081(f) of such Code but for the amendments 
                made by subsection (a).
                    (C) Held by a person.--A highway motor fuel shall 
                be considered as held by a person if title thereto has 
                passed to such person (whether or not delivery to the 
                person has been made).
                    (D) Secretary.--The term ``Secretary'' means the 
                Secretary of the Treasury.
            (4) Exception for exempt uses.--The tax referred to in 
        paragraph (1) shall not apply to any highway motor fuel held by 
        any person exclusively for any use to the extent a credit or 
        refund of the tax is allowable for such use.
            (5) Exception for certain amounts of fuel.--
                    (A) In general.--No tax referred to in paragraph 
                (1) shall be applied against any highway motor fuel 
                held on the tax restoration date by any person if the 
                aggregate amount of such highway motor fuel held by 
                such person on such date does not exceed 2,000 gallons. 
                The preceding sentence shall apply only if such person 
                submits to the Secretary (at the time and in the manner 
                required by the Secretary) such information as the 
                Secretary shall require for purposes of this 
                subparagraph.
                    (B) Exempt fuel.--For purposes of subparagraph (A), 
                there shall not be taken into account any highway motor 
                fuel held by any person which is exempt from the tax 
                referred to in paragraph (1) by reason of paragraph 
                (4).
                    (C) Controlled groups.--For purposes of this 
                subsection--
                            (i) Corporations.--
                                    (I) In general.--All persons 
                                treated as a controlled group shall be 
                                treated as 1 person.
                                    (II) Controlled group.--The term 
                                ``controlled group'' has the meaning 
                                given to such term by subsection (a) of 
                                section 1563 of such Code; except that 
                                for such purposes the phrase ``more 
                                than 50 percent'' shall be substituted 
                                for the phrase ``at least 80 percent'' 
                                each place it appears in such 
                                subsection.
                            (ii) Nonincorporated persons under common 
                        control.--Under regulations prescribed by the 
                        Secretary, principles similar to the principles 
                        of subparagraph (A) shall apply to a group of 
                        persons under common control if 1 or more of 
                        such persons is not a corporation.
            (6) Other laws applicable.--All provisions of law, 
        including penalties, applicable with respect to the taxes 
        imposed by section 4081 of such Code shall, insofar as 
        applicable and not inconsistent with the provisions of this 
        subsection, apply with respect to the floor stock taxes 
        referred to in paragraph (1) to the same extent as if such 
        taxes were imposed by such section.

SEC. 102. HIGHWAY TRUST FUND PRESERVATION.

    (a) In General.--Section 9503(b) of the Internal Revenue Code of 
1986 is amended--
            (1) by adding at the end the following new paragraph:
            ``(7) Spending replenishment.--If the Secretary of the 
        Treasury determines that the amount in the Highway Trust Fund 
        (other than the Mass Transit Account) is insufficient to timely 
        meet the anticipated payments from the account for fiscal year 
        2009, the Secretary shall transfer to such fund (excluding the 
        Mass Transit Account) from the general fund of the Treasury an 
        amount up to the insufficiency.''
            (2) by striking ``amounts equivalent to certain taxes and 
        penalties'' in the heading and inserting ``certain amounts''.
    (b) Revenue-Aligned Budget Authority Adjustment.--No adjustment 
shall be made pursuant to section 1105 of the Safe, Accountable, 
Flexible, Efficient Transportation Equity Act: A Legacy for Users Act 
of 2005 as a result of the enactment of this title.

                        TITLE II--EARMARK REFORM

SEC. 201. JOINT SELECT COMMITTEE ON EARMARK REFORM.

    (a) Establishment and Composition.--There is hereby established a 
Joint Select Committee on Earmark Reform. The joint select committee 
shall be composed of 16 members as follows:
            (1) 8 Members of the House of Representatives, 4 appointed 
        from the majority party by the Speaker of the House, and 4 from 
        the minority party to be appointed by the minority leader; and
            (2) 8 Members of the Senate, 4 appointed from the majority 
        party by the majority leader of the Senate, and 4 from the 
        minority party to be appointed by the minority leader.
A vacancy in the joint select committee shall not affect the power of 
the remaining members to execute the functions of the joint select 
committee, and shall be filled in the same manner as the original 
selection.
    (b) Study and Report.--
            (1) Study.--The joint select committee shall make a full 
        study of the practices of the House, Senate, and Executive 
        Branch regarding earmarks in authorizing, appropriation, tax, 
        and tariff measures. As part of the study, the joint select 
        committee shall consider the efficacy of--
                    (A) the disclosure requirements of clause 9 of rule 
                XXI and clause 17 of rule XXIII of the Rules of the 
                House of Representatives, House Resolution 491, and 
                rule XLIV of the Standing Rules of the Senate, and the 
                definitions contained therein;
                    (B) requiring full transparency in the process, 
                with earmarks listed in bills at the outset of the 
                legislative process and continuing throughout 
                consideration;
                    (C) requiring that earmarks not be placed in any 
                bill after initial committee consideration;
                    (D) requiring that Members be permitted to offer 
                amendments to remove earmarks at subcommittee, full 
                committee, floor consideration, and during conference 
                committee meetings;
                    (E) requiring that bill sponsors and majority and 
                minority managers certify the validity of earmarks 
                contained in their bills;
                    (F) recommending changes to earmark requests made 
                by the Executive Branch through the annual budget 
                submitted to Congress pursuant to section 1105 of title 
                31, United States Code;
                    (G) requiring that House and Senate amendments meet 
                earmark disclosure requirements, including amendments 
                adopted pursuant to a special order of business;
                    (H) establishing new categories for earmarks, 
                including--
                            (i) projects with National scope;
                            (ii) military projects; and
                            (iii) local or provincial projects, 
                        including the level of matching funds required 
                        for such project.
            (2) Report.--
                    (A) The joint select committee shall submit to the 
                House of Representatives and the Senate a report of its 
                findings and recommendations not later than 6 months 
                after adoption of this concurrent resolution.
                    (B) No recommendation shall be made by the joint 
                select committee except upon the majority vote of the 
                members from each House, respectively.
                    (C) Notwithstanding any other provision of this 
                resolution, any recommendation with respect to the 
                rules and procedures of one House that only affects 
                matters related solely to that House may only be made 
                and voted on by members of the joint select committee 
                from that House and, upon its adoption by a majority of 
                such members, shall be considered to have been adopted 
                by the full committee as a recommendation of the joint 
                select committee.
        In conducting the study under paragraph (1), the joint select 
        committee shall hold not fewer than 5 public hearings.
    (c) Resources and Dissolution.--
            (1) The joint select committee may utilize the resources of 
        the House of Representatives and the Senate.
            (2) The joint select committee shall cease to exist 30 days 
        after the submission of the report described in 
        subsection(a)(2).
    (d) Definition.--For purposes of this section, the term ``earmark'' 
shall include congressional earmarks, congressionally directed spending 
items, limited tax benefits, or limited tariff benefits as those terms 
are defined by clause 9 of rule XXI of the Rules of the House of 
Representatives and rule XLIV of the Standing Rules of the Senate. 
Nothing in this subsection shall confine the study of the joint select 
committee or otherwise limit its recommendations.

SEC. 202. MORATORIUM ON CONSIDERATION OF EARMARKS.

    (a) In the House.--In the 110th Congress, it shall not be in order 
to consider a bill, joint resolution, amendment, or conference report 
containing a congressional earmark, limited tax benefit, or limited 
tariff benefit (as such terms are defined by clause 9 of rule XXI of 
the Rules of the House of Representatives).
    (b) In the Senate.--[To be inserted by the Senate]

SEC. 203. REVISION OF CONCURRENT RESOLUTION ON THE BUDGET.

    (a) Upon the enactment of this Act, the chairmen of the Committees 
on the Budget of the House and the Senate shall reduce the allocation 
of new budget authority and the outlays flowing therefrom to the 
Committees on Appropriations of the House and the Senate set forth 
pursuant to section 302(a) of the Congressional Budget Act of 1974 for 
fiscal year 2009 by $14.8 billion.
    (b) The chairmen of the Committees on the Budget of the House and 
the Senate shall make any other necessary and conforming adjustments in 
the concurrent resolution on the budget for fiscal year 2009.
                                 <all>