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S 2678 IS

To amend the Internal Revenue Code of 1986 to transfer all excise taxes imposed on alcohol fuels to the Highway Trust Fund, and for other purposes.

June 25, 2002

Mr. BAUCUS (for himself, Mr. CRAPO, Mr. HARKIN, Mr. WARNER, Mr. DASCHLE, Mr. CRAIG, Mr. BOND, Mr. GRAHAM, Mrs. CARNAHAN, Mr. REID, Mr. THOMAS, Mr. ENZI, and Mr. JOHNSON) introduced the following bill; which was read twice and referred to the Committee on Finance

To amend the Internal Revenue Code of 1986 to transfer all excise taxes imposed on alcohol fuels to the Highway Trust Fund, and for other purposes.

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 `Maximum Economic Growth for America Through the Highway Trust Fund Act' or the `MEGA Trust Act'.

SEC. 2. ALL ALCOHOL FUELS TAXES TRANSFERRED TO HIGHWAY TRUST FUND.

(a) IN GENERAL- Section 9503(b)(4) of the Internal Revenue Code of 1986 (relating to certain taxes not transferred to Highway Trust Fund) is amended--

(1) by adding `or' at the end of subparagraph (C),

(2) by striking the comma at the end of subparagraph (D)(iii) and inserting a period, and

(3) by striking subparagraphs (E) and (F).

(b) EFFECTIVE DATE- The amendments made by this section shall apply to taxes received in the Treasury after September 30, 2003.

SEC. 3. GENERAL FUND TRANSFER TO HIGHWAY TRUST FUND OF AMOUNT EQUAL TO UNTAXED PORTION OF GASOHOL CONTAINING ETHANOL.

(a) IN GENERAL- Section 9503(b) of the Internal Revenue Code of 1986 (relating to transfer to Highway Trust Fund of amounts equivalent to certain taxes) is amended--

(1) by redesignating paragraph (5) as paragraph (6),

(2) by inserting after paragraph (4) the following new paragraph:

`(5) GENERAL REVENUE TRANSFER EQUAL TO UNTAXED PORTION OF GASOHOL CONTAINING ETHANOL- There are hereby appropriated to the Highway Trust Fund with respect to any qualified alcohol mixture described in section 4081(c)(4)(A)(i), amounts equivalent to the excess of the rate of tax which would (but for section 4081(c)) be determined under section 4081(a) over the alcohol mixture rate determined under section 4081(c)(4)(A)(i) and imposed on such mixture, as determined by the Secretary, after consultation with the Secretary of Transportation. Such amounts shall be appropriated and transferred from the general fund in the manner in which taxes determined under section 4081(a) would have been transferred by the Secretary of the Treasury and such amounts shall be treated as taxes received in the Treasury under such section.'.

(b) EFFECTIVE DATE- The amendments made by this section shall apply with respect to the removal or entry of any mixture after September 30, 2003.

SEC. 4. INTEREST CREDITED TO HIGHWAY TRUST FUND.

(a) IN GENERAL- Section 9503 of the Internal Revenue Code of 1986 (relating to Highway Trust Fund) is amended by striking subsection (f).

(b) EFFECTIVE DATE- The amendment made by this section shall apply with respect to obligations held by the Highway Trust Fund after September 30, 2003.

SEC. 5. EXTENSION OF HIGHWAY-RELATED TAXES AND TRUST FUND.

(a) EXTENSION OF TAXES-

(1) IN GENERAL- The following provisions of the Internal Revenue Code of 1986 are each amended by striking `2005' each place it appears and inserting `2011':

(A) Section 4041(a)(1)(C)(iii)(I) (relating to rate of tax on certain buses).

(B) Section 4041(a)(2)(B) (relating to rate of tax on special motor fuels).

(C) Section 4041(m)(1)(A) (relating to certain alcohol fuels).

(D) Section 4051(c) (relating to termination of tax on heavy trucks and trailers).

(E) Section 4071(d) (relating to termination of tax on tires).

(F) Section 4081(d)(1) (relating to termination of tax on gasoline, diesel fuel, and kerosene).

(G) Section 4481(e) (relating to period tax in effect).

(H) Section 4482(c)(4) (relating to taxable period).

(I) Section 4482(d) (relating to special rule for taxable period in which termination date occurs).

(2) FLOOR STOCKS REFUNDS- Section 6412(a)(1) of such Code (relating to floor stocks refunds) is amended--

(A) by striking `2005' each place it appears and inserting `2011', and

(B) by striking `2006' each place it appears and inserting `2012'.

(b) EXTENSION OF CERTAIN EXEMPTIONS- The following provisions of the Internal Revenue Code of 1986 are each amended by striking `2005' and inserting `2011':

(1) Section 4221(a) (relating to certain tax-free sales).

(2) Section 4483(g) (relating to termination of exemptions for highway use tax).

(c) EXTENSION OF DEPOSITS INTO, AND CERTAIN TRANSFERS FROM, TRUST FUND-

(1) IN GENERAL- Subsection (b), and paragraphs (2) and (3) of subsection (c), of section 9503 of the Internal Revenue Code of 1986 (relating to the Highway Trust Fund) are each amended--

(A) by striking `2005' each place it appears and inserting `2011', and

(B) by striking `2006' each place it appears and inserting `2012'.

(2) Motorboat and small-engine fuel tax transfers-

(A) IN GENERAL- Paragraphs (4)(A)(i) and (5)(A) of section 9503(c) of such Code are each amended by striking `2005' and inserting `2011'.

(B) CONFORMING AMENDMENTS TO LAND AND WATER CONSERVATION FUND- Section 201(b) of the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460l-11(b)) is amended--

(i) by striking `2003' and inserting `2009', and

(ii) by striking `2004' each place it appears and inserting `2010'.

SEC. 6. NATIONAL SURFACE TRANSPORTATION INFRASTRUCTURE FINANCING COMMISSION.

(a) ESTABLISHMENT- There is established a National Surface Transportation Infrastructure Financing Commission (in this section referred to as the `Commission'). The Commission shall hold its first meeting within 90 days of the appointment of the eighth individual to be named to the Commission.

(b) FUNCTION-

(1) IN GENERAL- The Commission shall--

(A) make a thorough investigation and study of revenues flowing into the Highway Trust Fund under current law, including the individual components of the overall flow of such revenues;

(B) consider whether the amount of such revenues is likely to increase, decline, or remain unchanged, absent changes in the law, particularly by taking into account the impact of possible changes in public vehicular choice, fuel use, or travel alternatives that could be expected to reduce or increase revenues into the Highway Trust Fund;

(C) consider alternative approaches to generating revenues for the Highway Trust Fund, and the level of revenues that such alternatives would yield;

(D) consider highway and transit needs and whether additional revenues into the Highway Trust Fund, or other Federal revenues dedicated to highway and transit infrastructure, would be required in order to meet such needs; and

(E) study such other matters closely related to the subjects described in the preceding subparagraphs as it may deem appropriate.

(2) TIME FRAME OF INVESTIGATION AND STUDY- The time frame to be considered by the Commission shall extend through the year 2015, to the extent data is reasonably available.

(3) PREPARATION OF REPORT- Based on such investigation and study, the Commission shall develop a final report, with recommendations and the bases for those recommendations, indicating policies that should be adopted, or not adopted, to achieve various levels of annual revenue for the Highway Trust Fund and to enable the Highway Trust Fund to receive revenues sufficient to meet highway and transit needs. Such recommendations shall address, among other matters as the Commission may deem appropriate--

(A) what levels of revenue are required by the Federal Highway Trust Fund in order for it to meet needs to--

(i) maintain, and

(ii) improve the condition and performance of the Nation's highway and transit systems;

(B) what levels of revenue are required by the Federal Highway Trust Fund in order to ensure that Federal levels of investment in highways and transit do not decline in real terms; and

(C) the extent, if any, to which the Highway Trust Fund should be augmented by other mechanisms or funds as a Federal means of financing highway and transit infrastructure investments.

(c) MEMBERSHIP-

(1) APPOINTMENT- The Commission shall be composed of 15 members, appointed as follows:

(A) 7 members appointed by the Secretary of Transportation, in consultation with the Secretary of the Treasury.

(B) 2 members appointed by the Chairman of the Committee on Ways and Means of the House of Representatives.

(C) 2 members appointed by the Ranking Minority Member of the Committee on Ways and Means of the House of Representatives.

(D) 2 members appointed by the Chairman of the Committee on Finance of the Senate.

(E) 2 members appointed by the Ranking Minority Member of the Committee on Finance of the Senate.

(2) QUALIFICATIONS- Members appointed pursuant to paragraph (1) shall be appointed from among individuals knowledgeable in the fields of public transportation finance or highway and transit programs, policy, and needs, and may include representatives of interested parties, such as State and local governments or other public transportation authorities or agencies, representatives of the transportation construction industry (including suppliers of technology, machinery and materials), transportation labor (including construction and providers), transportation providers, the financial community, and users of highway and transit systems.

(3) TERMS- Members shall be appointed for the life of the Commission.

(4) VACANCIES- A vacancy in the Commission shall be filled in the manner in which the original appointment was made.

(5) TRAVEL EXPENSES- Members shall serve without pay but shall receive travel expenses, including per diem in lieu of subsistence, in accordance with sections 5702 and 5703 of title 5, United States Code.

(6) CHAIRMAN- The Chairman of the Commission shall be elected by the members.

(d) STAFF- The Commission may appoint and fix the pay of such personnel as it considers appropriate.

(e) FUNDING - Funding for the Commission shall be provided by the Secretary of the Treasury and by the Secretary of Transportation, out of funds available to those agencies for administrative and policy functions.

(f) STAFF OF FEDERAL AGENCIES- Upon request of the Commission, the head of any department or agency of the United States may detail any of the personnel of that department or agency to the Commission to assist in carrying out its duties under this section.

(g) OBTAINING DATA- The Commission may secure directly from any department or agency of the United States, information (other than information required by any law to be kept confidential by such department or agency) necessary for the Commission to carry out its duties under this section. Upon request of the Commission, the head of that department or agency shall furnish such nonconfidential information to the Commission. The Commission shall also gather evidence through such means as it may deem appropriate, including through holding hearings and soliciting comments by means of Federal Register notices.

(h) REPORT- Not later than 2 years after the date of its first meeting, the Commission shall transmit its final report, including recommendations, to the Secretary of Transportation, the Secretary of the Treasury, and the Committee on Ways and Means of the House of Representatives, the Committee on Finance of the Senate, the Committee on Transportation and Infrastructure of the House of Representatives, the Committee on Environment and Public Works of the Senate, and the Committee on Banking, Housing, and Urban Affairs of the Senate.

(i) TERMINATION- The Commission shall terminate on the 180th day following the date of transmittal of the report under subsection (h). All records and papers of the Commission shall thereupon be delivered to the Administrator of General Services for deposit in the National Archives.

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