To amend title 31, United States Code, to provide Federal aid and economic stimulus through a one-time revenue grant to the States and their local governments.

January 22, 2003

Mr. SCHUMER (for himself and Ms. SNOWE) introduced the following bill; which was read twice and referred to the Committee on Finance

To amend title 31, United States Code, to provide Federal aid and economic stimulus through a one-time revenue grant to the States and their local governments.

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 `State and Local Aid and Economic Stimulus Act of 2003'.

SEC. 2. ONE-TIME REVENUE GRANT TO STATES AND LOCAL GOVERNMENTS.

(a) IN GENERAL- Chapter 67 of title 31, United States Code, is amended by adding at the end the following new section:

`Sec. 6721. One-time revenue grant to States and local governments

`(a) APPROPRIATION- There is authorized to be appropriated and is appropriated to carry out this section $40,000,000,000 for fiscal year 2003.

`(b) ALLOTMENTS- From the amount appropriated under subsection (a) for fiscal year 2003, the Secretary of the Treasury shall, as soon as practicable after the date of the enactment of this Act, allot to each of the States as follows:

`(1) $20 BILLION BASED ON POPULATION-

`(A) STATE LEVEL- $10,000,000,000 shall be allotted among such States on the basis of the relative population of each such State, as determined by the Secretary on the basis of the most recent satisfactory data.

`(B) LOCAL GOVERNMENT LEVEL- $10,000,000,000 shall be allotted among such States as determined under subparagraph (A) for distribution to the various units of general local government within such States on the basis of the relative population of each such unit within each such State, as determined by the Secretary on the basis of the most recent satisfactory data.

`(2) $20 BILLION BASED ON CHANGE IN UNEMPLOYMENT RATE-

`(A) TIER 1-

`(i) STATE LEVEL- $2,500,000,000 shall be allotted among such States which have experienced a tier 1 unemployment rate on the basis of the relative number of unemployed individuals for calendar year 2002 in each such State, as determined by the Secretary on the basis of the most recent satisfactory data.

`(ii) LOCAL GOVERNMENT LEVEL- $2,500,000,000 shall be allotted among such States which have experienced a tier 1 unemployment rate as determined under clause (i) for distribution to the various units of general local government within such States on the basis of the relative number of unemployed individuals for calendar year 2002 in each such unit within each such State, as determined by the Secretary on the basis of the most recent satisfactory data.

`(B) TIER 2-

`(i) STATE LEVEL- $7,500,000,000 shall be allotted among such States which have experienced a tier 2 unemployment rate on the basis of the relative number of unemployed individuals for calendar year 2002 in each such State, as determined by the Secretary on the basis of the most recent satisfactory data.

`(ii) LOCAL GOVERNMENT LEVEL- $7,500,000,000 shall be allotted among such States which have experienced a tier 2 unemployment rate as determined under clause (i) for distribution to the various units of general local government within such States on the basis of the relative number of unemployed individuals for calendar year 2002 in each such unit within each such State, as determined by the Secretary on the basis of the most recent satisfactory data.

`(c) GUIDELINES FOR USE OF FUNDS- It is the sense of Congress that priority for using the funds allotted under this section should be given to homeland security, medicaid, public health, highway construction, childcare, elementary, secondary, and higher education, and the prevention of additional property tax increases.

`(d) DEFINITIONS- For purposes of this section--

`(1) STATE- The term `State' means any of the several States, the District of Columbia, and the Commonwealth of Puerto Rico.

`(2) UNIT OF GENERAL LOCAL GOVERNMENT-

`(A) IN GENERAL- The term `unit of general local government' means--

`(i) a county, parish, township, city, or political subdivision of a county, parish, township, or city, that is a unit of general local government as determined by the Secretary of Commerce for general statistical purposes; and

`(ii) the District of Columbia, the Commonwealth of Puerto Rico, and the recognized governing body of an Indian tribe or Alaskan native village that carries out substantial governmental duties and powers.

`(B) TREATMENT OF SUBSUMED AREAS- For purposes of determining a unit of general local government under this section, the rules under section 6720(c) of title 31, United States Code, shall apply.

`(3) UNEMPLOYMENT- With respect to any State or unit of general local government--

`(A) TIER 1 UNEMPLOYMENT RATE- The term `tier 1 unemployment rate' means an unemployment rate for calendar year 2002 which was at least .4 but not more than 1.0 percentage point greater than such rate for calendar year 2000.

`(B) TIER 2 UNEMPLOYMENT RATE- The term `tier 2 unemployment rate' means an unemployment rate for calendar year 2002 which was more than 1.0 percentage point greater than such rate for calendar year 2000.'.

(b) CONFORMING AMENDMENT- The table of sections for chapter 67 of title 31, United States Code, is amended by adding at the end the following new item:

`6721. One-time revenue grant to States and local governments.'.

END