U.S. Department of Transportation
Federal Highway Administration
1200 New Jersey Avenue, SE
Washington, DC 20590
202-366-4000
Notice | ||
---|---|---|
Subject | ||
ALLOCATION OF FISCAL YEAR (FY) 2000 FUNDS FOR HIGHWAY USE TAX EVASION PROJECTS | ||
Classification Code | Date | |
N 4510.427 | November 1, 1999 |
Kenneth R. Wykle
Federal Highway Administrator
5 Attachments
ATTACHMENT 1 An Act [Pub.L. No. 105-178, signed June 9, 1998] To authorize funds for Federal-aid highways, highway safety programs, and
transit programs, and for other purposes.
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
...
SEC. 1101. AUTHORIZATION OF APPROPRIATIONS.
...
SEC. 1114. HIGHWAY USE TAX EVASION PROJECTS.
`Sec. 143. Highway use tax evasion projects
`(b) PROJECTS-
`(2) ALLOCATION OF FUNDS- Funds made available to carry out this
section may be allocated to the Internal Revenue Service and the
States at the discretion of the Secretary.
`(3) CONDITIONS ON FUNDS ALLOCATED TO INTERNAL REVENUE SERVICE-
The Secretary shall not impose any condition on the use of funds
allocated to the Internal Revenue Service under this subsection.
`(4) LIMITATION ON USE OF FUNDS- Funds made available to carry
out this section shall be used only--
`(B) to fund additional Internal Revenue Service staff, but
only to carry out functions described in this paragraph;
`(C) to supplement motor fuel tax examinations and criminal
investigations;
`(D) to develop automated data processing tools to monitor
motor fuel production and sales;
`(E) to evaluate and implement registration and reporting
requirements for motor fuel taxpayers;
`(F) to reimburse State expenses that supplement existing
fuel tax compliance efforts; and
`(G) to analyze and implement programs to reduce tax evasion
associated with other highway use taxes.
`(5) MAINTENANCE OF EFFORT- The Secretary may not make an
allocation to a State under this subsection for a fiscal year
unless the State certifies that the aggregate expenditure of
funds of the State, exclusive of Federal funds, for motor fuel
tax enforcement activities will be maintained at a level that
does not fall below the average level of such expenditure for the
preceding 2 fiscal years of the State.
`(6) FEDERAL SHARE- The Federal share of the cost of a project
carried out under this subsection shall be 100 percent.
`(7) PERIOD OF AVAILABILITY- Funds authorized to carry out this
section shall remain available for obligation for a period of 3
years after the last day of the fiscal year for which the funds
are authorized.
`(8) USE OF SURFACE TRANSPORTATION PROGRAM FUNDING- In addition
to funds made available to carry out this section, a State may
expend up to 1/4 of 1 percent of the funds apportioned to the
State for a fiscal year under section 104(b)(3) on initiatives to
halt the evasion of payment of motor fuel taxes.
`(c) EXCISE FUEL REPORTING SYSTEM-
`(2) ELEMENTS OF MEMORANDUM OF UNDERSTANDING- The memorandum of
understanding shall provide that--
`(B) the system shall be under the control of the Internal
Revenue Service; and
`(C) the system shall be made available for use by
appropriate State and Federal revenue, tax, and law
enforcement authorities, subject to section 6103 of the
Internal Revenue Code of 1986.
`(3) FUNDING /PRIORITY/- Of the amounts made available to carry out
this section for each of fiscal years 1998 through 2003, /and prior
to funding any other activity under this section,/ the
Secretary shall make available sufficient funds to the Internal
Revenue Service to establish and operate an automated fuel reporting
system.'.
(b) CONFORMING AMENDMENTS-
`143. Highway use tax evasion projects.'.
(2) Section 1040 of the Intermodal Surface Transportation
Efficiency Act of 1991 (23 U.S.C. 101 note; 105 Stat. 1992) is
repealed.
(3) Section 8002 of the Intermodal Surface Transportation
Efficiency Act of 1991 (23 U.S.C. 101 note; 105 Stat. 2203) is
amended--
ATTACHMENT 2
/Amendments in the TEA 21 Restoration Act [Pub.L.No. 105-206, Signed 7-22-98]/
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
(a) SHORT TITLE- This Act may be cited as the `Transportation Equity
Act for the 21st Century'.
(a) IN GENERAL- The following sums are authorized to be appropriated
out of the Highway Trust Fund (other than the Mass Transit Account):
...
(14) HIGHWAY USE TAX EVASION PROJECTS- For highway use tax
evasion projects under section 143 of such title /$10,000,000
for fiscal year 1998/ $5,000,000 for each of fiscal years 1998
/1999/ through 2003.
(a) IN GENERAL- Section 143 of title 23, United States Code, is
amended to read as follows:
`(a) STATE DEFINED- In this section, the term `State' means the 50
States and the District of Columbia.
`(1) IN GENERAL- The Secretary shall carry out highway use tax
evasion projects in accordance with this subsection.
`(A) to expand efforts to enhance motor fuel tax
enforcement;
`(1) IN GENERAL- Not later than
April 1/August 1/, 1998, the
Secretary shall enter into a memorandum of understanding with the
Commissioner of the Internal Revenue Service for the purposes of
the development and maintenance by the Internal Revenue Service
of an excise fuel reporting system (in this subsection referred
to as the `system').
`(A) the Internal Revenue Service shall develop and maintain
the system through contracts;
(1) The analysis for chapter 1 of such title is amended by
striking the item relating to section 143 and inserting the
following:
(A) in the first sentence of subsection (g) by striking
`section 1040 of this Act' and inserting `section 143 of
title 23, United States Code,'; and
(B) by striking subsection (h).
U.S. DEPARTMENT OF TRANSPORTATION FEDERAL HIGHWAY ADMINISTRATION |
||
ALLOCATION OF FUNDS FOR HIGHWAY USE TAX EVASION PROJECTS FOR FISCAL YEAR 2000 |
||
STATE | FY 2000 ALLOCATION |
OBLIGATION LIMITATION |
ARIZONA | $ 15,044 | $ 15,044 |
CALIFORNIA | 30,088 | 30,088 |
CONNECTICUT | 15,044 | 15,044 |
DELAWARE | 15,044 | 15,044 |
IDAHO | 15,044 | 15,044 |
ILLINOIS | 15,044 | 15,044 |
INDIANA | 30,088 | 30,088 |
IOWA | 15,044 | 15,044 |
KANSAS | 15,044 | 15,044 |
KENTUCKY | 15,044 | 15,044 |
LOUISIANA | 15,044 | |
MAINE | 15,044 | 15,044 |
MASSACHUSETTS | 30,088 | 30,088 |
MISSOURI | 15,044 | 15,044 |
MONTANA | 15,044 | 15,044 |
NEBRASKA | 30,088 | 30,088 |
NEVADA | 15,044 | 15,044 |
NEW HAMPSHIRE | 15,044 | 15,044 |
NEW JERSEY | 30,088 | 30,088 |
NEW MEXICO | 15,044 | 15,044 |
NEW YORK | 15,044 | 15,044 |
NORTH CAROLINA | 30,088 | 30,088 |
NORTH DAKOTA | 15,044 | 15,044 |
OREGON | 30,088 | 30,088 |
PENNSYLVANIA | 15,044 | 15,044 |
RHODE ISLAND | 15,044 | 15,044 |
SOUTH CAROLINA | 15,044 | 15,044 |
SOUTH DAKOTA | 15,044 | 15,044 |
TENNESSEE | 15,044 | 15,044 |
TEXAS | 30,088 | 30,088 |
UTAH | 15,044 | 15,044 |
VERMONT | 15,044 | 15,044 |
VIRGINIA | 15,044 | 15,044 |
WASHINGTON | 15,044 | 15,044 |
WEST VIRGINIA | 15,044 | 15,044 |
WISCONSIN | 15,044 | 15,044 |
WYOMING | 15,044 | 15,044 |
STATE TOTAL (CODE Q96) |
$676,980 | 676,980 |
ATTACHMENT 3
[Federal Register: October 9, 1998 (Volume 63, Number 196)] [Notices] [Page 54516-54519] From the Federal Register Online via GPO Access [wais.access.gpo.gov] [DOCID:fr09oc98-200] ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Federal Highway Administration [FHWA Docket No. FHWA 98-4262] Transportation Equity Act for the 21st Century; Implementation Procedures for the Approval and Administration of Projects To Reduce the Evasion of Motor Fuel and Other Highway Use Taxes AGENCY: Federal Highway Administration (FHWA), DOT. ACTION: Notice; request for comments. ----------------------------------------------------------------------- SUMMARY: Over the years, funds have been authorized by the Congress for use by the States and the Internal Revenue Service (IRS) to reduce the evasion of motor fuel and highway use taxes. This document sets forth revised procedures, pursuant to sections 1101 and 1114 of the Transportation Equity Act for the 21st Century (TEA-21) (Pub. L. 105- 178, 112 Stat. 107), for allocating these funds to the States and the IRS and provides implementation guidance for the approval and administration of such projects under 23 U.S.C. 143. The FHWA seeks public comment from all interested parties regarding the revised funding allocation and administrative procedures described in this notice. The procedures described in this notice may be modified based on the comments received. DATES: Comments must be received on or before November 23, 1998. ADDRESSES: Your signed, written comments must refer to the docket number appearing at the top of this document and you must submit the comments to the Docket Clerk, U.S. DOT Dockets, Room PL-401, 400 Seventh Street, SW., Washington, DC 20590-0001. All comments received will be available for examination at the above address between 10 a.m. and 5 p.m., e.t., Monday through Friday, except Federal holidays. Those desiring notification of receipt of comments must include a self- addressed, stamped envelope or postcard. FOR FURTHER INFORMATION CONTACT: Mr. Stephen J. Baluch, Office of Policy Development, 202-366-0570; or Mr. Wilbert Baccus, Office of the Chief Counsel, 202-366-0780; Federal Highway Administration, 400 Seventh Street, SW., Washington, D.C. 20590. Office hours are from 7:45 a.m. to 4:15 p.m., e.t., Monday through Friday, except Federal holidays. SUPPLEMENTARY INFORMATION: Electronic Access Internet users can access all comments received by the U.S. DOT Dockets, Room PL-401, by using the universal resource locator (URL):http://dms.dot.gov. It is available 24 hours each day, 365 days each year. Please follow the instructions online for more information and help. An electronic copy of this document may be downloaded using a modem and suitable communications software from the Government Printing Office's Electronic Bulletin Board Service at (202)512-1661. Internet users may reach the Federal Register's home page at: http// www.nara.gov/fedreg and the Government Printing Office's database at: http//www.access.gpo.gov/nara. Background Sections 1101 and 1114 of the TEA-21 authorize funding for highway use tax evasion projects under 23 U.S.C 143. This notice sets forth certain procedures for allocating those funds to the States and provides guidance for the approval and administration of projects to reduce the evasion of motor fuel and other highway use taxes. Funding authorized for highway use tax evasion projects includes $10 million for fiscal year (FY) 1998 and $5 million per year for FY 1999 through 2003, and up to one-fourth of 1 percent of funds apportioned to the States for the Surface Transportation Program (STP) for ``initiatives to halt the evasion of payment of motor fuel taxes'' (23 U.S.C. 143(b)(8)). In accordance with 23 U.S.C. 143(c), the major part of the funding authorized in section 1101(a)(14) of TEA-21 for highway use tax evasion projects will be provided to the IRS for the development and maintenance of an automated fuel reporting system. The Federal Highway Administrator, as delegated by the Secretary of Transportation (Secretary), and the Commissioner of the IRS have approved a Memorandum of Understanding (MOU) for the purposes of implementing this system. A copy of the MOU is provided as an attachment to this notice. The MOU establishes the funding to be provided to the IRS. As long as the IRS has met the funding needs to establish and operate the automated fuel reporting system, pursuant to the Secretary's authority under 23 U.S.C. 143(b)(2), the IRS may use a portion of the funds for continuation of the IRS examination and criminal investigation activities of the Joint Federal/State Motor Fuel Tax Compliance Project (or Joint Compliance Project), previously funded under the Intermodal Surface Transportation Efficiency Act of 1991 (ISTEA), Public Law 102-240, 105 Stat. 1914, or for any other activity specified in 23 U.S.C. 143(b). All funds not provided to the IRS will be allocated to the States for efforts to reduce the evasion of highway use taxes, including continued participation in regional motor fuel tax enforcement task forces. Nine such task forces have been organized since 1991 covering all States, under the coordination and leadership of the IRS district offices and State revenue agencies in the nine lead States (California, Florida, Indiana, Massachusetts, North Carolina, Nebraska, New Jersey, Oregon, and Texas). The FHWA intends to distribute the available funds so as to provide, if possible, at least half of the annual funding allocation that was provided under the ISTEA, that is, $50,000 for lead States and $25,000 for all other States and the District of Columbia. In each fiscal year, allocations would be made only to States that have expended and billed the FHWA for all but 1 year's [[Page 54517]] amount of obligated funds. In order for sufficient funds to be available to meet this target allocation, the following actions are recommended: 1. State revenue agencies are encouraged to extend the completion date for current projects utilizing unexpended funds (the FHWA will grant reasonable extensions of time up to December 2003 for current projects); 2. States should submit timely reimbursement vouchers so the FHWA can track the balance of unexpended funds for use in making annual allocations; and 3. Funds not obligated by June 30 would not be restored in future years. The reduced allocations to the States will not be sufficient to fully fund some of the expenditure items previously budgeted, such as, auditor and investigator salaries, equipment purchases, and computerization initiatives. Funding for such items would have to be provided from the one-fourth percent allowable use of STP funds by mutual agreement between the State transportation and revenue agencies. But in any event, the $5 million total available for distribution to the States for FYs 1999-2003 should, by judicious use of remaining unexpended funds and careful allocation to meet State needs, provide sufficient minimum funding for all States to continue participation in the activities of the Joint Compliance Project. Steering Committee At the outset of the Joint Compliance Project in 1990, a Steering Committee was formed to lend guidance to the regional task forces, serve as a clearinghouse for exchanging information among the task forces, recommend strategies for expanding the project, review progress, and resolve differences among project participants. The FHWA plans to continue using the Steering Committee, with at least one meeting each year, to assist the States, the IRS, and the task forces in adapting to the changing funding situation under TEA-21. Lead States should continue to designate a representative and alternate to serve on the Steering Committee. In addition, under the MOU to be signed between the IRS and the FHWA, the IRS has proposed forming a work group comprised of State, industry, and Federal agency participants that will develop and monitor an implementation plan for the automated fuel reporting system. Project Requirements The following requirements apply to highway use tax evasion projects funded from allocated funds under section 1101(b)(14) or from STP funds: 1. Obligation authority-- a. Allocated funds--Obligation authority will be provided when funds are allocated by an FHWA Notice. The funds allocated to a State shall remain available to the State revenue agency responsible for motor fuel tax enforcement for obligation until June 30 of each fiscal year, at which time any unobligated funds will be withdrawn. b. STP funds--Funds are available for obligation at the request of the State highway agency for the period specified in the law, i.e., for a period of up to 3 years following the year authorized. Funds obligated shall be included within the obligation limitation distributed to the State by the FHWA. 2. Federal share (allocated funds and STP funds)-- As provided in 23 U.S.C. 143(b)(6), funds are available at 100 percent Federal share. 3. Maintenance of effort certification-- a. Allocated funds--As specified in 23 U.S.C. 143(b), States wishing to receive allocations for tax evasion projects must certify that the aggregate expenditure of funds of the State, exclusive of Federal funds, for motor fuel tax enforcement activities will be maintained at a level which does not fall below the average level of such expenditures for its last 2 fiscal years. b. STP funds--Maintenance of effort certification is not required. 4. Task force participation-- a. Allocated funds--To receive allocations under this program, the State revenue agency responsible for enforcement of State motor fuel taxes shall sign the Memorandum of Understanding agreeing to participate in at least one of the regional task forces. States may join one or more task forces to best meet their needs for coordinated fuel tax enforcement. b. STP funds--Signing the Memorandum of Understanding for participation in a regional task force is not required. 5. Project agreement-- a. Allocated funds--The State revenue agency shall sign two copies of the Project Agreement (FHWA-1548 as amended after July 1, 1998). b. STP funds--The State highway agency shall sign the Project Agreement (PR-2). (A copy of the Project Agreement forms (FHWA-1548 and PR-2) may be obtained from the contacts listed in this notice.) 6. Project eligibility-- a. Allocated funds--Funds are available for projects to reduce evasion of motor fuel and other highway use taxes. b. STP funds--Funds are available for ``initiatives to halt the evasion of payment of motor fuel taxes'' (emphasis added) as specified in 23 U.S.C. 143(b)(8). 7. Allowable costs (allocated funds and STP funds)--An estimate of costs by category of expenditure shall be attached to the Project Agreement. Allowable costs shall be determined in accordance with the Office of Management and Budget Circular A-87, ``Cost Principles for State, Local and Indian Tribal Governments.'' With respect to travel costs, the FHWA project funds may be used: a. To reimburse State travel costs for motor fuel tax examination and criminal investigation training; b. For participation at regional task force meetings and other task force activities, such as, joint audits and investigations; c. For participation in International Fuel Tax Agreement audit and enforcement committee activities; d. For participation at meetings of the work group for the automated fuel reporting system; e. For other cooperative State efforts to foster motor fuel tax compliance, such as, the meetings of the Uniformity Committee and the annual and regional Federation of Tax Administrators motor fuel conferences; f. For participation of lead State representatives at Steering Committee meetings; and g. For participation of representatives from other States at Steering Committee meetings when requested by the Steering Committee or to participate in other special activities arranged by the Steering Committee. 8. Intergovernmental review (allocated funds and STP funds)--The State shall comply with the intergovernmental review requirements of 49 CFR part 17 according to the procedures established by the State. 9. Environmental impacts (allocated funds and STP funds)--With respect to environmental impact and related procedures (23 CFR 771), projects are considered to be a categorical exclusion under 23 CFR 771.117(c)(1). 10. Compliance with planning requirements--Highway use tax evasion projects are deemed to be part of the long range plans discussed in 23 U.S.C. 134 and 135 with respect to enforcement of any highway user taxes the revenues from which are used to finance the implementation of projects in the plan. Projects should be included in the Transportation Improvement Program (TIP) as follows: a. Allocated funds--Since funds are allocated to State revenue agencies only for the purpose of fuel tax evasion project activities, projects are not [[Page 54518]] required to be listed in the TIP discussed in 23 U.S.C. 134 and 135. b. STP funds--Highway use tax evasion projects carried out by State agencies shall be included in the transportation improvement program (TIP) described in 23 U.S.C. 135. Highway use tax evasion projects carried out by local government agencies within the boundaries of metropolitan areas shall be included in the metropolitan TIP described in 23 U.S.C. 134. 11. Project approval (allocated funds and STP funds)--The State shall request FHWA approval for projects by submitting a letter to the FHWA Division Administrator in the State requesting funds for the project along with the following items: a. Evidence of completion of the intergovernmental review requirements; b. The cost estimate by expenditure category; and c. A signed original copy of the Project Agreement. 12. Project modifications (allocated funds and STP funds)--The State shall request in writing the FHWA's approval of the following items as necessary: a. Revised budget whenever the estimate for a single cost category changes by more than 10 percent of the total agreement amount, i.e., $5,000 for a $50,000 project; b. Proposal for procurement of professional services, including identification of the contractor and estimated cost, when the estimated cost exceeds $10,000; c. Extension of project completion date and reasons for the extension; and d. Additional funding if required to complete the project. 13. Progress reports (allocated funds and STP funds)--Annual narrative and expenditure reports are required to document progress. The report forms covering motor fuel tax examinations/audits, criminal investigations, and roadside fuel checks are optional. 14. Audits (allocated funds and STP funds)--The State shall arrange for audits when required by 49 CFR part 90. 15. Reimbursement-- a. Allocated funds--State revenue agencies may continue to submit vouchers (PR-20) to the Division Administrator for payment. b. STP funds--The State transportation agency would submit vouchers for payment as part of the current billing process, and the State transportation agency would make interagency fund transfers to other State (or local) agencies carrying out project activities. Effective Date The procedures described in this notice are effective on the date of publication, and may be modified by a subsequent notice based on the comments received. Request for Comments The FHWA is requesting public comment from all interested parties concerning the funding allocation, the administrative procedures described in this notice, or on any suggestions to enhance motor fuel tax compliance under this program. Comments should be submitted to the docket by the deadline indicated in the DATES caption. All comments received before the close of business on the comment closing date indicated above will be considered and will be available for examination in the docket room at the above address. Comments received after the comment closing date will be filed in the docket and will be considered to the extent practicable. In addition to late comments, the FHWA will also continue to file in the docket relevant information that becomes available after the comment closing date, and interested persons should continue to examine the docket for new material. Authority: 23 U.S.C. 315; secs. 1101 and 1114, Pub. L. 105-178, 112 Stat. 107(1998); and 49 CFR 1.48) Issued on: October 2, 1998. Kenneth R. Wykle, Federal Highway Administration, Administrator. Memorandum of Understanding Between the U.S. Department of Transportation (DOT) and the Internal Revenue Service (IRS) Purpose: The purpose of this Memorandum of Understanding (MOU) is to implement the provisions of 23 United States Code (U.S.C.)143, relating to highway use tax evasion projects, in particular the requirement for the development and maintenance for an excise fuel reporting system. Background: On June 9, 1998, the President signed the Transportation Equity Act for the 21st Century (TEA-21), Public Law 105-178, authorizing highway, highway safety, transit, and other surface transportation programs for the next 6 years. TEA-21, as amended, builds on the initiatives established in the Intermodal Surface Transportation Efficiency Act of 1991, and combines the continuation and improvement of current programs with new initiatives to meet America's needs through efficient and flexible transportation. A key part of funding these highway improvements is the collection of Federal and State revenues used for this purpose. Recognizing the need to ensure compliance for revenue collection, section 1114 of TEA-21, amended 23 U.S.C. 143 to require that the Secretary of Transportation (hereinafter referred to as the ``Secretary'') shall carry out highway use tax evasion projects in accordance with the provisions therein. Section 143 provides that the funds made available to carry out highway use tax evasion projects may be allocated to the IRS and the States, and that the Secretary shall not impose any condition on the use of funds allocated to the IRS under this subsection. Title 23, U.S.C. Section 143, further limits the use of funds, provides for the establishment and operation of an automated fuel reporting system, provides for a funding priority, and a MOU between the Secretary and IRS for the purposes of the development and maintenance by the IRS of an excise fuel reporting system. Wherefore, the DOT and the IRS agree that: I. Automated Excise Fuel Reporting System (the System) a.k.a. Excise Fuel Information Reporting System (EXFIRS) (A) The IRS shall develop and maintain the system through contracts. (1) The IRS believes that a participative process with all stakeholders is the best method to use in the design and development of ExFIRS. By October 1, 1998, the IRS will form a workgroup with participants representing industry, States, the Federal Highway Administration (FHWA), and the IRS. The workgroup will be headed by the IRS Director, Excise Taxes, and will develop an implementation plan to provide for a basic automated excise fuel reporting system, and for enhancements that will best serve the stakeholders, including industry, the States, the FHWA, other government agencies, the IRS, etc. (2) Workgroup members will determine the system needs and assist the IRS in assembling an implementation plan for use in contracting. (3) The IRS will use the most expeditious method to obtain qualified contractors to complete the project. (4) The implementation plan will be a living document. The plan will be monitored by the workgroup on an ongoing basis with revisions to the content, scope, timing, as needed. (B) The system shall be under the control of the IRS. (C) To allow for a transition of funding for the States, the IRS projects that the following funding can be made available to the States for motor fuel compliance projects: FY99....................................................... $1,500,000 FY00....................................................... 1,250,000 FY01....................................................... 1,000,000 FY02....................................................... 750,000 FY03....................................................... 500,000 ------------ Total.................................................. 5,000,000 (D) The system shall be made available for use by appropriate State and Federal revenue, tax, and law enforcement authorities, subject to section 6103 of the Internal Revenue Code of 1986. II. Limitation on Use of Funds Funds made available to carry out highway use tax evasion projects shall be used only: (A) to expand efforts to enhance motor fuel tax enforcement; [[Page 54519]] (B) to fund additional IRS staff, but only to carry out functions described in this paragraph; (C) to supplement motor fuel tax examinations and criminal investigations; (D) to develop automated data processing tools to monitor motor fuel production and sales; (E) to evaluate and implement registration and reporting requirements for motor fuel taxpayers; (F) to reimburse State expenses that supplement existing fuel tax compliance efforts; and (G) to analyze and implement programs to reduce tax evasion associated with other highway use taxes. III. Funding Availability and Priority (A) The Secretary shall, by Reimbursable Agreement, provide available funding to the IRS for the automated fuel reporting system and for highway use tax evasion projects as described in 23 U.S.C. 143. (B) The Secretary shall make available sufficient funds for each of fiscal years 1998 through 2003 to the IRS to establish and operate an automated fuel reporting system as its first priority. IV. Oversight The FHWA Director, Office of Policy Development, and the IRS Director, Specialty Taxes, will review the development and implementation of highway use tax evasion project activity. Dated: September 3, 1998 Kenneth R. Wykle, Administrator, Federal Highway Administration. Dated: September 10, 1998. Charles O. Rossotti, Commissioner, Internal Revenue Service. [FR Doc. 98-27231 Filed 10-8-98; 8:45 am] BILLING CODE 4910-22-P
ATTACHMENT 4
Download form for Attachment 4
ARTICLE I - AUTHORITY AND PURPOSE
Pursuant to section 143(a) of Title 23 of the U.S. Code and section 1101(a)(14) of the Transportation Equity Act for the 21st Century (Pub. L. No. 105-178), the State and the FHWA, enter into this agreement to enhance compliance with and collection of highway use taxes.
ARTICLE II - OBJECTIVE
The objective of this grant agreement is to increase the amount of revenue available for highway programs by using Highway Trust Fund tax receipts, administered by the FHWA, to expand highway use tax compliance efforts by the Internal Revenue Service (IRS) and the States, with emphasis on motor fuel taxes. This will be achieved by:
ARTICLE III - STATEMENT OF WORK
The State agrees to use funds made available under this agreement for the following activities:
2) supplement motor fuel tax examinations and criminal investigations,
3) develop automated data processing tools to monitor motor fuel production and sales,
4) evaluate and implement registration and reporting requirements for motor fuel taxpayers, and
5) analyze and implement programs to reduce tax evasion associated with other highway use taxes.
The work to be accomplished under this agreement shall be known as the Joint Federal/State Motor Fuel Tax Compliance Project.
The lead State will serve as the central contact point, within its region of the United States, for this project. The lead State will (1) provide central support staff for the formation of a regional task force; (2) coordinate the individual State and IRS activities; (3) coordinate and submit plans and reports prepared by the individual States; and (4) coordinate all activities which relate to the common concerns of participating States and the IRS.
The participating States will provide a liaison to participate on at least one of the regional task forces. The participating States will: (1) provide staff to participate in meetings and other task force activities; (2) coordinate motor fuel tax enforcement activities with other regional task force members; and (3) prepare and submit reports on the State's motor fuel tax enforcement activities.
ARTICLE IV - ALLOWABLE COST AND PAYMENT
The FHWA shall reimburse the State for allowable costs incurred in carrying out the work described in Article III, up to the project agreement amount shown on the signature page of this agreement. The State shall submit requests for reimbursement on Form PR-20, "Voucher for Work Performed under Provisions of the Federal-Aid and Federal Highway Acts, as amended." A progress voucher represents a claim for costs incurred in a specific period during the progress of the project. In preparing a progress voucher, all eligible costs shall be included, provided that a recorded liability exists or a cash disbursement has been made. A final voucher represents the final claim, submitted by the State for a single completed project accepted by the FHWA. The State shall promptly submit its final claim following termination of the period of performance. A summary of project costs, classified by expenditure type, shall accompany the final voucher.
Allowable costs shall be determined in accordance with the Office of Management and Budget (OMB) Circular A-87, "Cost Principles for State and Local Governments." All allowable items of cost as listed in Attachment B to Circular A-87, are eligible for reimbursement under this agreement. The budget of estimated costs by expenditure category is included as Attachment 1 to this agreement. Signature of this agreement by the FHWA shall constitute grantor agency approval for cost items included in the attached budget.
ARTICLE V - SUBMISSION OF REPORTS
An annual report shall be submitted by December 1 after the end of each Federal fiscal year ending on September 30. The annual report shall include a narrative report of accomplishments and an expenditure summary. The report may be supplemented at the option of the State with data summaries submitted on the reporting forms provided by the FHWA. The final performance and financial summary report (if this agreement is not continued) shall be submitted by the State no later than 60 days after the termination of the period of performance. The final report shall include a discussion of the accomplishments of the project, an expenditure summary by cost category, and a summary of any audit findings or plans to address the audit requirements of Article 3 of the General Provisions. One copy of all reports shall be provided to the regional task force and to the FHWA division office. The lead State shall provide copies of the reports to the project Steering Committee in care of the FHWA, Office of Transportation Policy Studies (HPTS), Washington, D.C. 20590.
The following General Provisions apply to all FHWA grant agreements for the Joint Federal/State Motor Fuel Tax Compliance Project.
The State hereby assures and certifies that it will comply with the Federal statutes and regulations cited in this Agreement and 49 C.F.R. Part 18, Uniform Administrative Requirements for Grants and Cooperative Agreements, as they relate to the acceptance and use of Federal funds for this project. The project funded under this agreement is considered to be a categorical exclusion under 23 C.F.R. 771.117(c)(1).
The State shall comply with the audit requirements of 49 C.F.R. Part 90.
This agreement may be amended at any time by a written modification properly executed by both the State and the FHWA. In accordance with 49 C.F.R. 18.30, the State shall request a budget modification whenever a new cost category is added or the anticipated expenditures for a single cost category are expected to change by an amount greater than 10 percent of the total amount of the agreement. The State must obtain the prior approval of the FHWA whenever any of the following actions is anticipated:
(1) Any revision of the scope or objectives of the project.
(2) Extension of the period of performance.
(3) Contracting out, or otherwise obtaining the services of a third party, to perform activities which are central to the purposes of the agreement.
In accordance with 49 C.F.R. 18.20, the State must expend and account for funds under this agreement in accordance with State laws and procedures for expending and accounting for its own funds. Fiscal control and accounting procedures of the State, as well as its cost-type contractors and subcontractors, must be sufficient to permit preparation of financial reports of project expenditures, as required by this agreement, and to permit the tracing of funds to a level of expenditures adequate to establish that such funds have not been used in violation of the prohibitions and restrictions of this agreement.
(1) If any litigation, claim, negotiation, audit or other action involving the records has been started before the expiration of the 3-year period, the records must be retained until completion of the action and resolution of all issues which arise from it, or until the end of the regular 3-year period, whichever is later.
(2) When the records are transferred to or maintained by the FHWA, the 3-year retention requirement is not applicable to the State with respect to those records.
As provided in 49 C.F.R. 18.32, the State shall use, manage, and dispose of equipment acquired under this agreement in accordance with States laws and procedures.
(1) Are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from covered transactions by any Federal department or agency;
(2) Have not within a three-year period preceding this agreement been convicted of or had a civil judgement rendered against them for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (Federal, State, or local) transaction or contract under a public transaction; violation of Federal or State antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property;
(3) Are not presently indicted for or otherwise criminally or civilly charged by a governmental entity (Federal, State, or local) with commission of any of the offenses enumerated in paragraph (2) of this certification; and
(4) Have not within a three-year period preceding this agreement had one or more public transactions (Federal, State, or local) terminated for cause or default.
(1) Policy. It is the policy of the Department of Transportation (DOT) that minority and disadvantaged business enterprises (MBE's and DBE's) as defined in 49 C.F.R. Part 23 shall have the maximum opportunity to participate in the performance of contracts financed in whole or in part with Federal funds under this agreement. Consequently, the MBE and DBE requirements of 49 CFR Part 23 apply to this agreement.
(2) MBE/DBE Obligation. The State or its contractor agrees to ensure that minority and disadvantaged business enterprises as defined in 49 C.F.R. Part 23 have the maximum opportunity to participate in the performance of contracts and subcontracts financed in whole or in part with Federal funds provided under this agreement. In this regard, the State or contractors shall take all necessary and reasonable steps in accordance with 49 C.F.R. Part 23 to ensure that minority and disadvantaged business enterprises have the maximum opportunity to compete for and perform contracts. The State and its contractors shall not discriminate on the basis of race, color, national origin, handicap, religion, age, or sex, as provided in Federal and State law, in the award and performance of DOT-assisted contracts.
(1) Temporarily withhold cash payments pending correction of the deficiency by the State or more severe enforcement action by the FHWA,
(2) Disallow all or part of the cost of the activity or action not in compliance,
(3) Wholly or partly suspend or terminate the agreement for cause,
(4) Withhold further awards for the program.
(1) The costs result from obligations which were properly incurred by the State before the effective date of suspension or termination, are not in anticipation of it, and, in the case of termination, are noncancelable, and,
(2) The costs would be allowable if the agreement were not suspended or terminated.
(1) The FHWA's right to disallow costs and recover funds on the basis of a later audit or other review;
(2) The State's obligation to return any funds due as a result of later refunds, corrections, or other transactions;
(3) Records retention as required by Article 7 above.
(4) Audit requirements of Article 3 above.
The State hereby agrees that, as a condition of receiving any Federal financial assistance from the Department of Transportation, it will comply with Title VI of the Civil Rights Act of 1964 (78 Stat. 252, 42 U.S.C. §2000d), related nondiscrimination statutes (i.e., 23 U.S.C. 324, Section 504 of the Rehabilitation Act of 1973 as amended, and the Age Discrimination Act of 1975), and applicable regulatory requirements to the end that no person in the United States shall, on the grounds of race, color, national origin, sex, handicap, or age be excluded from participation in, be denied the benefits of, or otherwise be subjected to discrimination under any program or activity for which the State receives Federal financial assistance. The specific requirements of the Department of Transportation Standard Civil Rights assurances (required by 49 C.F.R. 21.7 and 27.9) are incorporated in this agreement.
The State and its contractors under this agreement shall comply with mandatory standards and policies relating to energy efficiency which are contained in the State energy conservation plan issued in compliance with the Energy Policy and Conservation Act (Pub. L. 94-163.)
"Conviction" means a finding of guilt (including a plea of nolo contendere) or imposition of sentence, or both, by any judicial body charged with the responsibility to determine violations of the Federal or State criminal drug statutes;
"Criminal drug statute" means a Federal or non-Federal criminal statute involving the manufacture, distribution, dispensing, use, or possession of any controlled substance;
"Employee" means the employee of the State directly engaged in the performance of work under this agreement, including: (1) all "direct charge" employees; (2) all "indirect charge" employees unless their impact or involvement is insignificant to the performance of the grant; and, (3) temporary personnel and consultants who are directly engaged in the performance of work under this agreement and who are on the State's payroll. This definition does not include workers not on the payroll of the State (e.g., volunteers, even if used to meet a matching requirement; consultants or independent contractors not on the State's payroll; or employees of subrecipients or subcontractors in covered workplaces.)
(1) Publishing a statement notifying employees that the unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance is prohibited in the State's workplace and specifying the actions that will be taken against employees for violation of such prohibition;
(2) Establishing an ongoing drug-free awareness program to inform employees about -
(i) The dangers of drug abuse in the workplace;
(ii) The State's policy of maintaining a drug-free workplace;
(iii) Any available drug counseling, rehabilitation, and employee assistance programs; and
(iv) The penalties that may be imposed upon employees for drug abuse violations occurring in the workplace.
(3) Making it a requirement that each employee to be engaged in the performance of this agreement be given a copy of the statement required by paragraph (1);
(4) Notifying the employee in the statement required by paragraph (1), that, as a condition of employment under this agreement, the employee will -
(i) Abide by the terms of the statement; and
(ii) Notify the employer in writing of his or her conviction for a violation of a criminal drug statute in the workplace no later than five calendar days after such conviction;
(5) Notifying the FHWA in writing, within ten calendar days after receiving notice under subparagraph (4)(ii) from an employee or otherwise receiving actual notice of such conviction. Employers of convicted employees must provide notice, including position title, to every grant officer or other designee on whose grant activity the convicted employee was working, unless the Federal agency has designated a central point for the receipt of such notices. Notice shall include the identification number(s) of each affected grant;
(6) Taking one of the following actions, within 30 calendar days of receiving notice under subparagraph (4)(ii), with respect to any employee who is so convicted -
(i) Taking appropriate personnel action against such an employee, up to and including termination; consistent with the requirements of the Rehabilitation Act of 1973, as amended; or
(ii) Requiring such employee to participate satisfactorily in a drug abuse assistance or rehabilitation program approved for such purposes by a Federal, State, or local health, law enforcement, or other appropriate agency;
(7) Making a good faith effort to continue to maintain a drug-free workplace through implementation of paragraphs (1) through (6).
1) No Federal appropriated funds have been paid or will be paid, by or on behalf of the State, to any person for influencing or attempting to influence an officer or employee of any Federal agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement.
2) If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any Federal agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the State shall complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions.
3) The State shall require that the language of this certification be included in the award documents for all subawards at all tiers (including subgrants, and contracts and subcontracts under grants, subgrants, loans, and cooperative agreements) which exceed $100,000, and that all such subrecipients shall certify and disclose accordingly.
ATTACHMENT 5