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PUBLIC LAW 105-178—JUNE 9, 1998 112 STAT. 153 "(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 REVE- NUE 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— "(A) to expand efforts to enhance motor fuel tax enforcement; "(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 V4 of 1 percent of the funds apportioned tb 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.— "(1) IN GENERAL. —Not later than April 1, 1998, the Sec- Contracts, retary 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'). " (2) ELEMENTS OF MEMORANDUM OF UNDERSTANDING.— The memorandum of understanding shall provide that— "(A) the Internal Revenue Service shall develop and maintain the system through contracts; "(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
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