To provide a responsible increase in the debt limit, restore fiscal discipline, and safeguard Social Security.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Restore Fiscal Discipline and 
Safeguard Social Security Act of 2002''.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--The Congress finds the following:
            (1) When Congress enacted the fiscal year 2002 budget 
        resolution, it did so based on the assurance that the 
        Government would balance the budget without relying on social 
        security surpluses for the remainder of the decade and beyond. 
        Congress was also assured that it would not have to act to 
        increase the statutory debt limit until 2008.
            (2) The Government is projected to run on-budget deficits 
        that will require it to spend the social security and medicare 
        trust fund surpluses for the rest of the decade, even before 
        additional spending for defense and homeland security is 
        counted, and after the economy recovers and returns to strong 
        growth.
            (3) The total debt is increasing because we have not kept 
        the commitment to save the social security and medicare trust 
        fund surpluses. The Secretary of the Treasury has formally 
        requested that Congress increase the statutory limit on the 
        public debt by $750 billion, from the current level of $5.95 
        trillion to $6.70 trillion. Congress will have to vote to raise 
        the debt limit because we have been borrowing those trust fund 
        surpluses to cover a deficit in the rest of the budget instead 
        of saving them.
            (4) A $750 billion increase in the debt limit would be the 
        second largest increase in history and is irresponsible in the 
        absence of a framework to protect taxpayers from even further 
        increases in the national debt.
            (5) Congress should authorize a limited increase in the 
        debt limit to prevent a financial default, but should also work 
        together with the President to develop a plan to restore fiscal 
        discipline before further increasing our debt.
            (6) Current law provides for enforcement of budget 
        resolutions:
                    (A) Legislation violating discretionary spending 
                totals set in a budget resolution or the suballocations 
                set by the Committee on Appropriations is subject to a 
                point of order under section 302(f) of the 
                Congressional Budget Act of 1974.
                    (B) Legislation reducing receipts below a budget 
                resolution's total is subject to a point of order under 
                section 311(a) of the Congressional Budget Act of 1974.
    (b) Purpose.--The purpose of this Act is--
            (1) to provide a responsible, measured increase in the debt 
        limit to ensure that the Government meets its current legal 
        obligations;
            (2) effective immediately thereafter, to limit strictly the 
        size of further increases in the debt limit until the enactment 
        of a plan to bring the budget into balance in five years 
        without reliance on the social security trust fund surplus, 
        such that any larger increase in the debt limit this fall would 
        require a plan to balance the budget in fiscal year 2007, but 
        if this deficit reduction should prove insufficient, the 
        restrictions are automatically reestablished by the next 
        regular semi-annual report of the Congressional Budget Office;
            (3) to require that the President submit a budget plan 
        before the end of this fiscal year to achieve balance, without 
        reliance on the social security trust fund surplus, by fiscal 
        year 2007;
            (4) as a backup and discipline for these debt limit 
        provisions, to establish points of order against any budget 
        resolution that does not within five years and in all 
        subsequent years eliminate any deficits projected by the 
        Congressional Budget Office, without reliance on the social 
        security trust fund surplus, using the enforcement provisions 
        in current law to require that all subsequent spending and tax 
legislation conform to the budget resolution's deficit-reduction plan; 
and
            (5) thereby to restore fiscal discipline and to preserve 
        social security for future retirees.

                    TITLE I--INCREASE IN DEBT LIMIT

SEC. 101. INCREASE IN DEBT LIMIT.

    (a) Increase in Statutory Debt Limit.--Section 3101(b) of title 31, 
United States Code, is amended by striking ``$5,950,000,000,000'' and 
inserting ``$6,100,000,000,000''.
    (b) Point of Order.--(1) Effective immediately, except as provided 
by paragraph (2) or (3), it shall not be in order in the House of 
Representatives or the Senate to consider any bill, joint resolution, 
amendment, or conference report that includes any provision that 
increases the limit on the public debt above the limit set forth in 
section 3101(b) of title 31, United States Code, as in effect 
immediately before the date of consideration of that measure by more 
than $100,000,000,000.
    (2) Except as provided by paragraph (3), any bill or joint 
resolution may carry an increase in such limit of more than 
$100,000,000,000 only if the concurrent resolution on the budget for 
the budget year has been adopted and--
            (A) sets forth or assumes a budget that is in on-budget 
        balance or surplus within 4 fiscal years after the budget year 
        and is in on-budget balance or surplus for every subsequent 
        fiscal year covered by that resolution; and
            (B) does not contain any reduction in social security 
        benefits.
    (3) Paragraphs (1) and (2) shall not apply in the House of 
Representatives or the Senate if the chairman of the Committee on the 
Budget of the House or of the Senate, as applicable, certifies, based 
on the report of the Congressional Budget Office pursuant to section 
202(e)(1) or (2) of the Congressional Budget Act of 1974, whichever 
report is the most recent, that the budget will be in on-budget balance 
or surplus within 4 fiscal years after the budget year and is in on-
budget balance or surplus for every subsequent fiscal year covered by 
that report. If legislation to extend the discretionary spending limits 
beyond fiscal year 2002 is enacted before the date of release of such 
report, the Congressional Budget Office shall assume such discretionary 
spending levels. Any such certification shall only have force and 
effect until the date of submission of the next report under either 
such section.

SEC. 102. PRESIDENTIAL PLAN TO BALANCE THE BUDGET.

    (a) Presidential Plan.--The President shall submit to the Congress 
by September 30, 2002, a proposal to bring the budget of the Government 
(excluding the receipts and disbursements of the Federal Old-Age and 
Survivors Insurance Trust Fund and the Federal Disability Insurance 
Trust Fund) into balance or surplus by fiscal year 2007.
    (b) Sense of Congress.--It is the sense of Congress that the plan 
described in subsection (a) should be based on the most recent economic 
and technical assumptions of the Congressional Budget Office.

          TITLE II--CIRCUIT BREAKER TO PROTECT SOCIAL SECURITY

SEC. 201. CIRCUIT BREAKER TO PROTECT SOCIAL SECURITY.

    (a) Circuit Breaker Points of Order.--(1) Effective January 1, 
2003, whenever the most recent report of the Congressional Budget 
Office pursuant to section 202(e)(1) of the Congressional Budget Act of 
1974 projects an on-budget deficit for any fiscal year, it shall not be 
in order in the House of Representatives or the Senate to consider any 
concurrent resolution on the budget that--
            (A) sets forth or assumes an on-budget deficit for any such 
        fiscal year that is larger than such Congressional Budget 
        Office projection for that fiscal year;
            (B) sets forth or assumes a budget that is not in on-budget 
        balance or surplus within 4 fiscal years after the budget year 
        and is not in on-budget balance or surplus for any subsequent 
        fiscal year covered by that resolution; or
            (C) contains any reduction in social security benefits.
    (2) Effective January 1, 2003, whenever the most recent report of 
the Congressional Budget Office pursuant to section 202(e)(1) of the 
Congressional Budget Act of 1974 projects both on-budget surpluses (or 
a balanced budget) and deficits for the fiscal years included in that 
report, it shall not be in order in the House of Representatives or the 
Senate to consider any concurrent resolution on the budget that--
            (A) sets forth or assumes an on-budget deficit for any 
        fiscal year for which such Congressional Budget Office 
        projection for that fiscal year is for an on-budget surplus or 
        balance; or
            (B) contains any reduction in social security benefits.
    (b) Suspension of Requirement During War or Low Economic Growth.--
            (1) Low growth.--If the most recent of the Department of 
        Commerce's advance, preliminary, or final reports of actual 
        real economic growth indicate that the rate of real economic 
        growth (as measured by real GDP) for each of the most recently 
        reported quarter and the immediately preceding quarter is less 
        than 1 percent, this section is suspended.
            (2) War.--If a declaration of war is in effect, this 
        section is suspended.

Summary: Restore Fiscal Discipline and Safeguard Social Security Act of 2002 - Amends Federal money and finance law to increase the statutory debt limit to $6.1 trillion. Makes it out of order for the House of Representatives or the Senate to consider any bill or amendment that increases the public debt limit above the new one established by this Act by more than $100 billion, except in specified circumstances. Directs the President to submit to Congress a proposal to bring the budget of the Government into balance or surplus by FY 2007. Makes it out of order for the House or the Senate, whenever the most recent CBO report projects an on-budget deficit for any fiscal year, to consider any concurrent resolution on the budget that: (1) sets forth or assumes an on-budget deficit for any such fiscal year larger than such projection. (2) sets forth or assumes a budget that is not in on-budget balance or surplus within four fiscal years, and is not in on-budget balance or surplus for any covered subsequent fiscal year. Or (3) contains any reduction in social security benefits. Makes it out of order for the House or the Senate, whenever the most recent CBO report projects both on-budget surpluses and deficits for the fiscal years concerned, to consider any concurrent resolution on the budget that: (1) sets forth or assumes an on-budget deficit for any fiscal year for which the CBO projection is for an on-budget surplus or balance. Or (2) contains any reduction in social security benefits. Suspends such requirements during war or low economic growth.