ACCELERATION OF COVER OVER PAYMENTS TO PUERTO RICO AND VIRGIN ISLANDS.

SEC. 602. ACCELERATION OF COVER OVER PAYMENTS TO PUERTO RICO AND VIRGIN ISLANDS. (a) Initial Payment.—Section 512(b) of the Ticket to Work and Work Incentives Improvement Act of 1999 is amended— (1) by striking “October 1, 2000,” in the matter preceding paragraph (1) and inserting “the first day of the month within which the date of the enactment of the Trade and Development Act of 2000 occurs,”; and (2) by striking paragraph (2) and inserting the following new paragraph: “(2) Second transfer of incremental increase in cover over attributable to periods before resumption of regular payments.—The Secretary of the Treasury shall transfer on the first payment date after the date of the enactment of the Trade and Development Act of 2000 an amount equal to the excess of— “(A) the amount of such increase otherwise required to be covered over after June 30, 1999, and before the first day of the month within which such date of enactment occurs, over “(B) the amount of the transfer described in paragraph (1).”. (b) Clarification of Disposition of Taxes to Virgin Islands.—So much of paragraph (3) of section 7652(b) of the Internal Revenue Code of 1986 (relating to Virgin Islands) as precedes subparagraph (B) thereof is amended to read as follows: “(3) Disposition of internal revenue collections.—The Secretary shall determine the amount of all taxes imposed 114 STAT. 306 by, and collected under the internal revenue laws of the United States on articles produced in the Virgin Islands and transported to the United States. The amount so determined less 1 percent and less the estimated amount of refunds or credits shall be subject to disposition as follows: “(A) The payment of an estimated amount shall be made to the government of the Virgin Islands before the commencement of each fiscal year as set forth in section 4(c)(2) of the Act entitled ‘An Act to authorize appropriations for certain insular areas of the United States, and for other purposes’, approved August 18, 1978 (48 U.S.C. 1645), as in effect on the date of the enactment of the Trade and Development Act of 2000. The payment so made shall constitute a separate fund in the treasury of the Virgin Islands and may be expended as the legislature may determine.”. (c) Resolution of Statutory Conflict.—Section 7652 of the Internal Revenue Code of 1986 (relating to shipments to the United States) is amended by adding at the end the following new subsection: “(h) Manner of Cover Over of Tax Must Be Derived from This Title.—No amount shall be covered into the treasury of Puerto Rico or the Virgin Islands with respect to taxes for which cover over is provided under this section unless made in the manner specified in this section without regard to— “(1) any provision of law which is not contained in this title or in a revenue Act; and “(2) whether such provision of law is a subsequently enacted provision or directly or indirectly seeks to waive the application of this subsection.”. (b) Effective Date.—The amendments made by this section shall apply with respect to transfers or payments made after the date of the enactment of this Act.