To amend the Internal Revenue Code of 1986 to repeal the limitation on the cover over of distilled spirits taxes to Puerto Rico and Virgin Islands and to transfer a portion of such cover over to the Puerto Rico Conservation Trust Fund.

I 116TH CONGRESS 1ST SESSION H. R. 1786 To amend the Internal Revenue Code of 1986 to repeal the limitation on the cover over of distilled spirits taxes to Puerto Rico and Virgin Islands and to transfer a portion of such cover over to the Puerto Rico Conserva- tion Trust Fund. IN THE HOUSE OF REPRESENTATIVES MARCH 14, 2019 Miss GONZA´LEZ-COLO´N of Puerto Rico (for herself, Mr. YOUNG, Ms. VELA´ZQUEZ, Mr. DUFFY, Mr. SERRANO, Mr. BISHOP of Utah, Mr. GRI- JALVA, Mr. BRENDAN F. BOYLE of Pennsylvania, and Mr. SUOZZI) intro- duced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to repeal the limitation on the cover over of distilled spirits taxes to Puerto Rico and Virgin Islands and to transfer a portion of such cover over to the Puerto Rico Conserva- tion Trust Fund. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 VerDate Sep 11 2014 04:55 Mar 29, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H1786.IH H1786 kjohnson on DSK79L0C42 with BILLS 2 •HR 1786 IH SECTION 1. REPEAL OF LIMITATION ON COVER OVER OF 1 DISTILLED SPIRITS TAXES TO PUERTO RICO 2 AND VIRGIN ISLANDS. 3 (a) IN GENERAL.—Section 7652 of the Internal Rev- 4 enue Code of 1986 is amended by striking subsection (f) 5 and by redesignating subsections (g) and (h) as sub- 6 sections (f) and (g), respectively. 7 (b) EFFECTIVE DATE.—The amendments made by 8 this section shall apply to distilled spirits brought into the 9 United States after December 31, 2018. 10 SEC. 2. TRANSFER TO PUERTO RICO CONSERVATION 11 TRUST FUND OF PORTION OF PUERTO RICO 12 RUM COVER OVER. 13 (a) IN GENERAL.—Section 7652(e) of the Internal 14 Revenue Code of 1986 is amended by redesignating para- 15 graphs (3), (4), and (5) as paragraphs (4), (5), and (6), 16 respectively, and by inserting after paragraph (2) the fol- 17 lowing new paragraph: 18 ‘‘(2) TRANSFER TO PUERTO RICO CONSERVA- 19 TION TRUST FUND OF PORTION OF RUM COVER 20 OVER.— 21 ‘‘(A) IN GENERAL.—From any amount 22 otherwise required to be covered over to the 23 treasury of Puerto Rico under this section with 24 respect to taxes collected on rum under section 25 5001(a)(1) or subsection (a), the Secretary of 26 VerDate Sep 11 2014 04:55 Mar 29, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H1786.IH H1786 kjohnson on DSK79L0C42 with BILLS 3 •HR 1786 IH the Treasury shall transfer to the Puerto Rico 1 Conservation Trust Fund an amount equal to 2 $0.46 per proof gallon of rum to which such 3 cover over is attributable. Any amount trans- 4 ferred under the preceding sentence shall be 5 treated for purposes of this section (other than 6 this paragraph) as having been covered over to 7 the treasury of Puerto Rico. 8 ‘‘(B) PUERTO RICO CONSERVATION TRUST 9 FUND.—For purposes of this section, the term 10 ‘Puerto Rico Conservation Trust Fund’ means 11 the fund established pursuant to a Memo- 12 randum of Understanding between the United 13 States Department of the Interior and the 14 Commonwealth of Puerto Rico, dated December 15 24, 1968.’’. 16 (b) EFFECTIVE DATE.—The amendments made by 17 this section shall apply to rum brought into the United 18 States after December 31, 2018. 19 Æ VerDate Sep 11 2014 04:55 Mar 29, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\H1786.IH H1786 kjohnson on DSK79L0C42 with BILLS