I 112th CONGRESS 1st Session H. R. 2920 IN THE HOUSE OF REPRESENTATIVES September 14, 2011 Mr. Clarke of Michigan introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committee on Oversight and Government Reform, 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 establish the Detroit Jobs Trust Fund.

1.

Short title

This Act may be cited as the Detroit Jobs Trust Fund Act.

2.

Detroit Jobs Trust Fund

(a)

In general

Subchapter A of chapter 98 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:

9512.

Detroit Jobs 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 Detroit Jobs Trust Fund, consisting of such amounts as may be appropriated or credited to such fund as provided in this section or section 9602(b). (b)

Transfers to trust fund

There are hereby appropriated to the Detroit Jobs Trust Fund amounts equivalent to receipts in the Treasury of taxes imposed under this title (with respect to periods after the date of the enactment of this section) which are (as determined by the Secretary) attributable to Detroit, Michigan. (c)

Expenditures

(1)

In general

Except as otherwise provided in this subsection, amounts in the Detroit Jobs Development Fund shall (without need of any further appropriation) be distributed annually by the Secretary to the city of Detroit, Michigan to carryout the purposes described in paragraph (2). (2)

Use of expenditures

Amounts distributed to the city of Detroit, Michigan under this section shall be used for the following purposes and in the following order of priority: (A)To the extent of the first $378,256,650 distributed with respect the annual period, for any purpose determined by the city government of Detroit, Michigan. (B)Second, for payment of principal and interest on any obligation issued by the city of Detroit, Michigan (to the extent of such obligations). (C)Third, for payment of principal and interest on obligations to which section 103 applies and the proceeds of which were used for the public schools of the city of Detroit, Michigan (to the extent of such obligations). (D)Fourth, for jobs development, public safety, education, business infrastructure, or public infrastructure (to the extent consistent with the plan described in paragraph (4)). (3)

Restriction on distributions

No distribution shall be made by the Secretary under paragraph (1) unless— (A)the city of Detroit, Michigan, does not impose an income tax, (B)such city has reduced the aggregate property taxes imposed by an amount not less than the reduction in the payment obligations of such city by reason of the payments described in paragraph (2), and (C)all prior distributions made to the city under paragraph (2) were used by the city in a manner consistent with the requirements of paragraph (2). (4)

5-year development plan

A plan is described in this paragraph if such plan— (A)is a 5-year plan describing development goals for Detroit, Michigan, and detailing how distributions for purposes described in paragraph (2)(D) will be spent, (B)has been approved by simple majority vote of the City Council of Detroit, Michigan (after consultation with the Detroit Board of Education), and (C)has been submitted to, and approved by, the Secretary of Housing and Urban Development. No distribution shall be made under paragraph (1) for a purpose described in paragraph (2)(D) unless a plan described in this paragraph is in effect and all prior such distributions for such purposes were used in accordance with such plan.(5)

Amounts made available not to reduce other funding

Amounts distributed to the city of Detroit, Michigan under this section shall supplement, and not supplant, any other funding (including any Federal funding) for such city. (d)

Termination

No amount shall be distributed from, or appropriated to, the Detroit Jobs Trust Fund after the 5-year period beginning on the date of the enactment of this Act. Any amounts remaining in such Trust Fund at the end of such period shall be transferred to the general fund of the Treasury.

. (b)The table of sections for subchapter A of chapter 98 of such Code is amended by adding at the end the following new item: Sec. 9512. Detroit Jobs Trust Fund. .