The Administration's proposal would provide money to the States to encourage them to run their own programs effectively while allowing the States to continue to make their own policy choices. Funding will come from criminal fines of convicted Federal defendants, fines for criminal violation of Federal motor vehicle laws, forfeited appearance bonds posted by Federal criminal defendants, and proceeds from any contract entered into by any Federal defendant for the sale of literary or other rights arising from his criminal act. A total of 50 percent of the fund will be available for distribution annually to those States operating victim compensation programs to reimburse them for 10 percent of their payouts, 30 percent of the fund will be distributed to the States based on their population. The remaining 20 percent will be distributed among Federal law enforcement agencies for assistance to crime victims. H.R. 3498's funding and disbursement provisions differ from the Administration's bill. The H.R. 3498 fund would receive all Federal criminal fines, proceeds of all criminal forfeitures, new penalty assessments imposed on convicted Federal criminals, and taxes collected on the sale of pistols and revolvers. H. R. 3498 would allocate 80 percent of its fund for victim compensation, with each participating State receiving up to 50 percent of its cost for victims of State crimes and 100 percent for victims of Federal crimes. State eligibility would be contingent on the State's compliance with a number of conditions. The justice Department sees greater advantage in the Administration's bill.