To establish a procedure to safeguard the surpluses of the Social Security and Medicare hospital insurance trust funds.

Summary: Social Security and Medicare Lock-Box Act of 2001 - Amends the Congressional Budget Act of 1974 to provide a point of order against consideration of any: (1) budget resolution that sets forth a surplus for any fiscal year that is less than the surplus of the Federal Hospital Insurance Trust Fund for such year; or (2) legislation that would cause any surplus to be less than the Fund surplus for the covered fiscal year.Makes the point of order described in (1) above inapplicable to the extent that a violation would result from an assumption in the resolution of an increase in outlays or decrease in revenue relative to the baseline underlying the resolution for social security or Medicare reform legislation. Makes the point of order described in (2) above inapplicable to social security or Medicare reform legislation. Establishes the levels of surplus for purposes of enforcing the preceding points of order. Authorizes a waiver or suspension of such points of order only by an affirmative vote of three-fifths of the Members of the Senate.Requires any Federal budget submitted by the President that recommends an on-budget surplus for any fiscal year that is less than the surplus of the Fund for such year to include a proposal for social security or Medicare reform legislation. Makes this Act inapplicable upon the enactment of social security and Medicare reform legislation. Defines "social security reform legislation" and "Medicare reform legislation" as a bill or joint resolution to save social security or Medicare, respectively, that specifies that it constitutes reform legislation.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Social Security and Medicare Lock-
Box Act of 2001''.

SEC. 2. FINDINGS AND PURPOSE.

    (a) Findings.--The Congress finds that--
            (1) the Balanced Budget Act of 1997 and strong economic 
        growth have ended decades of deficit spending;
            (2) the Government is able to meet its current obligations 
        without using the social security and medicare surpluses;
            (3) fiscal pressures will mount as an aging population 
        increases the Government's obligations to provide retirement 
        income and health services;
            (4) social security and medicare hospital insurance 
        surpluses should be used to reduce the debt held by the public 
        until legislation is enacted that reforms social security and 
        medicare;
            (5) preserving the social security and medicare hospital 
        insurance surpluses would restore confidence in the long-term 
        financial integrity of social security and medicare; and
            (6) strengthening the Government's fiscal position through 
        debt reduction would increase national savings, promote 
        economic growth, and reduce its interest payments.
    (b) Purpose.--It is the purpose of this Act to--
            (1) prevent the surpluses of the social security and 
        medicare hospital insurance trust funds from being used for any 
        purpose other than providing retirement and health security; 
        and
            (2) use such surpluses to pay down the national debt until 
        such time as medicare and social security reform legislation is 
        enacted.

SEC. 3. PROTECTION OF SOCIAL SECURITY AND MEDICARE SURPLUSES.

    (a) Protection of Social Security and Medicare Surpluses.--Title 
III of the Congressional Budget Act of 1974 is amended by adding at the 
end the following new section:

    ``lock-box for social security and hospital insurance surpluses

    ``Sec. 316. (a) Lock-box for Social Security and Hospital Insurance 
Surpluses.--
            ``(1) Concurrent resolutions on the budget.--
                    ``(A) In general.--It shall not be in order in the 
                House of Representatives or the Senate to consider any 
                concurrent resolution on the budget, or an amendment 
                thereto or conference report thereon, that would set 
                forth a surplus for any fiscal year that is less than 
                the surplus of the Federal Hospital Insurance Trust 
                Fund for that fiscal year.
                    ``(B) Exception.--(i) Subparagraph (A) shall not 
                apply to the extent that a violation of such 
                subparagraph would result from an assumption in the 
                resolution, amendment, or conference report, as 
                applicable, of an increase in outlays or a decrease in 
                revenue relative to the baseline underlying that 
                resolution for social security reform legislation or 
                medicare reform legislation for any such fiscal year.
                    ``(ii) If a concurrent resolution on the budget, or 
                an amendment thereto or conference report thereon, 
                would be in violation of subparagraph (A) because of an 
                assumption of an increase in outlays or a decrease in 
                revenue relative to the baseline underlying that 
                resolution for social security reform legislation or 
                medicare reform legislation for any such fiscal year, 
                then that resolution shall include a statement 
                identifying any such increase in outlays or decrease in 
                revenue.
            ``(2) Spending and tax legislation.--
                    ``(A) In general.--It shall not be in order in the 
                House of Representatives or the Senate to consider any 
                bill, joint resolution, amendment, motion, or 
                conference report if--
                            ``(i) the enactment of that bill or 
                        resolution, as reported;
                            ``(ii) the adoption and enactment of that 
                        amendment; or
                            ``(iii) the enactment of that bill or 
                        resolution in the form recommended in that 
                        conference report,
                would cause the surplus for any fiscal year covered by 
                the most recently agreed to concurrent resolution on 
                the budget to be less than the surplus of the Federal 
                Hospital Insurance Trust Fund for that fiscal year.
                    ``(B) Exception.--Subparagraph (A) shall not apply 
                to social security reform legislation or medicare 
                reform legislation.
    ``(b) Enforcement.--
            ``(1) Budgetary levels with respect to concurrent 
        resolutions on the budget.--For purposes of enforcing any point 
        of order under subsection (a)(1), the surplus for any fiscal 
        year shall be--
                    ``(A) the levels set forth in the later of the 
                concurrent resolution on the budget, as reported, or in 
                the conference report on the concurrent resolution on 
                the budget; and
                    ``(B) adjusted to the maximum extent allowable 
                under all procedures that allow budgetary aggregates to 
                be adjusted for legislation that would cause a decrease 
                in the surplus for any fiscal year covered by the 
                concurrent resolution on the budget (other than 
                procedures described in paragraph (2)(A)(ii)).
            ``(2) Current levels with respect to spending and tax 
        legislation.--
                    ``(A) In general.--For purposes of enforcing 
                subsection (a)(2), the current levels of the surplus 
                for any fiscal year shall be--
                            ``(i) calculated using the following 
                        assumptions--
                                    ``(I) direct spending and revenue 
                                levels at the baseline levels 
                                underlying the most recently agreed to 
                                concurrent resolution on the budget; 
                                and
                                    ``(II) for the budget year, 
                                discretionary spending levels at 
                                current law levels and, for outyears, 
                                discretionary spending levels at the 
                                baseline levels underlying the most 
                                recently agreed to concurrent 
                                resolution on the budget; and
                            ``(ii) adjusted for changes in the surplus 
                        levels set forth in the most recently agreed to 
                        concurrent resolution on the budget pursuant to 
                        procedures in such resolution that authorize 
                        adjustments in budgetary aggregates for updated 
                        economic and technical assumptions in the mid-
                        session report of the Director of the 
                        Congressional Budget Office.
                Such revisions shall be included in the first current 
                level report on the congressional budget submitted for 
                publication in the Congressional Record after the 
                release of such mid-session report.
                    ``(B) Budgetary treatment.--Outlays (or receipts) 
                for any fiscal year resulting from social security or 
                medicare reform legislation in excess of the amount of 
                outlays (or less than the amount of receipts) for that 
                fiscal year set forth in the most recently agreed to 
                concurrent resolution on the budget or the section 
                302(a) allocation for such legislation, as applicable, 
                shall not be taken into account for purposes of 
                enforcing any point of order under subsection (a)(2).
            ``(3) Disclosure of hi Surplus.--For purposes of enforcing 
        any point of order under subsection (a), the surplus of the 
        Federal Hospital Insurance Trust Fund for a fiscal year shall 
        be the levels set forth in the later of the report accompanying 
        the concurrent resolution on the budget (or, in the absence of 
        such a report, placed in the Congressional Record prior to the 
        consideration of such resolution) or in the joint explanatory 
        statement of managers accompanying such resolution.
    ``(c) Additional Content of Reports Accompanying Budget Resolutions 
and of Joint Explanatory Statements.--The report accompanying any 
concurrent resolution on the budget and the joint explanatory statement 
accompanying the conference report on each such resolution shall 
include the levels of the surplus in the budget for each fiscal year 
set forth in such resolution and of the surplus or deficit in the 
Federal Hospital Insurance Trust Fund, calculated using the assumptions 
set forth in subsection (b)(2)(A).
    ``(d) Definitions.--As used in this section:
            ``(1) The term `medicare reform legislation' means a bill 
        or a joint resolution to save Medicare that includes a 
        provision stating the following: `For purposes of section 
        316(a) of the Congressional Budget Act of 1974, this Act 
        constitutes medicare reform legislation.'.
            ``(2) The term `social security reform legislation' means a 
        bill or a joint resolution to save social security that 
        includes a provision stating the following: `For purposes of 
        section 316(a) of the Congressional Budget Act of 1974, this 
        Act constitutes social security reform legislation.'.
    ``(e) Waiver and Appeal.--Subsection (a) may be waived or suspended 
in the Senate only by an affirmative vote of three-fifths of the 
Members, duly chosen and sworn. An affirmative vote of three-fifths of 
the Members of the Senate, duly chosen and sworn, shall be required in 
the Senate to sustain an appeal of the ruling of the Chair on a point 
of order raised under this section.
    ``(f)  Effective Date.--This section shall cease to have any force 
or effect upon the enactment of social security reform legislation and 
medicare reform legislation.''.
    (b) Conforming Amendment.--The item relating to section 316 in the 
table of contents set forth in section 1(b) of the Congressional Budget 
and Impoundment Control Act of 1974 is amended to read as follows:

``Sec. 316. Lock-box for social security and hospital insurance 
                            surpluses.''.

SEC. 4. PRESIDENTS' BUDGET.

    (a) Protection of Social Security and Medicare Surpluses.--If the 
budget of the United States Government submitted by the President under 
section 1105(a) of title 31, United States Code, recommends an on-
budget surplus for any fiscal year that is less than the surplus of the 
Federal Hospital Insurance Trust Fund for that fiscal year, then it 
shall include a detailed proposal for social security reform 
legislation or medicare reform legislation.
    (b) Effective Date.--Subsection (a) shall cease to have any force 
or effect upon the enactment of social security reform legislation and 
medicare reform legislation as defined by section 316(d) of the 
Congressional Budget Act of 1974.

            Passed the House of Representatives February 13, 2001.

            Attest:

                                                 JEFF TRANDAHL,

                                                                 Clerk.