I

104TH CONGRESS

2D SESSION H. R. 2897

To increase the public debt limit, to protect the social security trust funds

and other federal trust funds and accounts invested in public debt obligations, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

JANUARY 25, 1996

Mr. SMITH of Michigan introduced the following bill; which was referred to

the Committee on Ways and Means, and in addition to the Committee

on Government Reform and Oversight, for a period to be subsequently

determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

A BILL

To increase the public debt limit, to protect the social security trust funds and other federal trust funds and accounts invested in public debt obligations, and for other

purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. INCREASE IN PUBLIC DEBT LIMIT.

4 Subsection (b) of section 3101 of title 31, United

5 States Code, is amended by striking the dollar amount

6 contained therein and inserting ‘‘$4,920,000,000,000’’.
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1 SEC. 2. APPLICABILITY OF PUBLIC DEBT LIMIT TO FED2 ERAL TRUST FUNDS AND OTHER FEDERAL

3 ACCOUNTS.

4 (a) PROTECTION OF FEDERAL FUNDS.—Notwith5 standing any other provision of law—

6 (1) no officer or employee of the United States

7 may—

8 (A) delay the deposit of any amount into

9 (or delay the credit of any amount to) any Fed10 eral fund or otherwise vary from the normal

11 terms, procedures, or timing for making such

12 deposits or credits, or

13 (B) refrain from the investment in public

14 debt obligations of amounts in any Federal

15 fund,

16 if a purpose of such action or inaction is to not in17 crease the amount of outstanding public debt obliga18 tions, and

19 (2) no officer or employee of the United States

20 may disinvest amounts in any Federal fund which

21 are invested in public debt obligations if a purpose

22 of the disinvestment is to reduce the amount of out23 standing public debt obligations.

24 (b) PROTECTION OF BENEFITS AND EXPENDITURES

25 FOR ADMINISTRATIVE EXPENSES.—
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1 (1) IN GENERAL.—Notwithstanding subsection

2 (a), during any period for which cash benefits or ad3 ministrative expenses would not otherwise be payable

4 from a covered benefits fund by reason of an inabil5 ity to issue further public debt obligations because

6 of the applicable public debt limit, public debt obli7 gations held by such covered benefits fund shall be

8 sold or redeemed only for the purpose of making

9 payment of such benefits or administrative expenses

10 and only to the extent cash assets of the covered

11 benefits fund are not available from month to month

12 for making payment of such benefits or administra13 tive expenses.

14 (2) ISSUANCE OF CORRESPONDING DEBT.—For

15 purposes of undertaking the sale or redemption of

16 public debt obligations held by a covered benefits

17 fund pursuant to paragraph (1), the Secretary of the

18 Treasury may issue corresponding public debt obli19 gations to the public, in order to obtain the cash

20 necessary for payment of benefits or administrative

21 expenses from such covered benefits fund, notwith22 standing the public debt limit.

23 (3) ADVANCE NOTICE OF SALE OR REDEMP24 TION.—Not less than 3 days prior to the date on

25 which, by reason of the public debt limit, the Sec-
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1 retary of the Treasury expects to undertake a sale

2 or redemption authorized under paragraph (1), the

3 Secretary of the Treasury shall report to each House

4 of the Congress and to the Comptroller General of

5 the United States regarding the expected sale or re6 demption. Upon receipt of such report, the Comp7 troller General shall review the extent of compliance

8 with subsection (a) and paragraphs (1) and (2) of

9 this subsection and shall issue such findings and rec10 ommendations to each House of the Congress as the

11 Comptroller General considers necessary and appro12 priate.

13 (c) PUBLIC DEBT OBLIGATION.—For purposes of

14 this section, the term ‘‘public debt obligation’’ means any

15 obligation subject to the public debt limit established

16 under section 3101 of title 31, United States Code.

17 (d) FEDERAL FUND.—For purposes of this section,

18 the term ‘‘Federal fund’’ means any Federal trust fund

19 or Government account established pursuant to Federal

20 law to which the Secretary of the Treasury has issued or

21 is expressly authorized by law directly to issue obligations

22 under chapter 31 of title 31, United States Code, in re23 spect of public money, money otherwise required to be de24 posited in the Treasury, or amounts appropriated.
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1 (e) COVERED BENEFITS FUND.—For purposes of

2 subsection (b), the term ‘‘covered benefits fund’’ means

3 any Federal fund from which cash benefits are payable

4 by law in the form of retirement benefits, separation pay5 ments, life or disability insurance benefits, or dependent’s

6 or survivor’s benefits, including (but not limited to) the

7 following:

8 (1) the Federal Old-Age and Survivors Insur9 ance Trust Fund;

10 (2) the Federal Disability Insurance Trust

11 Fund;

12 (3) the Civil Service Retirement and Disability

13 Fund;

14 (4) the Government Securities Investment

15 Fund;

16 (5) the Department of Defense Military Retire17 ment Fund;

18 (6) the Unemployment Trust Fund;

19 (7) each of the railroad retirement funds and

20 accounts;

21 (8) the Department of Defense Education Ben22 efits Fund and the Post-Vietnam Era Veterans Edu23 cation Fund; and

24 (9) the Black Lung Disability Trust Fund.

25 (f) CONFORMING AMENDMENTS.—
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1 (1) IN GENERAL.—Subsections (j), (k), and (l)

2 of section 8348 of title 5, United States Code, and

3 subsections (g) and (h) of section 8438 of such title

4 are hereby repealed.

5 (2) RETENTION OF AUTHORITY TO RESTORE

6 TRUST FUNDS WITH RESPECT TO ACTIONS TAKEN

7 BEFORE DATE OF ENACTMENT.—

8 (A) IN GENERAL.—The repeals made by

9 paragraph (1) shall not apply to the restoration

10 requirements imposed on the Secretary of the

11 Treasury (or the Executive Director referred to

12 in section 8438(g)(5) of title 5, United States

13 Code) with respect to amounts attributable to

14 actions taken under subsection (j)(1) or (k) of

15 section 8348, or section 8438(g)(1), of such

16 title before the date of the enactment of this

17 Act.

18 (B) RESTORATION REQUIREMENTS.—For

19 purposes of subparagraph (A), the term ‘‘res20 toration requirements’’ means the requirements

21 imposed by—

22 (i) paragraphs (2), (3), and (4) of

23 subsection (j), and subsection (l)(1), of

24 section 8348 of such title, and
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1 (ii) paragraphs (2), (3), (4), and (5)

2 of subsection (g), and subsection (h)(1), of

3 section 8438 of such title.

4 SEC. 3. LIMITATION ON ISSUANCE OF PUBLIC DEBT OBLI5 GATIONS AFTER DECEMBER 31, 2001.

6 No obligation subject to the limitation under section

7 3101(b) of title 31, United States Code, may be issued

8 to the public after December 31, 2001. The preceding sen9 tence shall not apply to any obligation (or series of obliga10 tions) issued to refund an obligation issued before January

11 1, 2002.

12 SEC. 4. AUTHORITY TO ESTABLISH PRIORITIES IN MANAG13 ING CASH POSITION OF UNITED STATES.

14 Section 3101 of title 31, United States Code, is

15 amended by adding at the end the following new sub16 section:

17 ‘‘(d) Whenever the United States Government is un18 able to borrow in a timely manner sufficient funds to meet

19 its needs because of the limit set forth in subsection (b),

20 the Secretary of the Treasury is authorized to manage the

21 cash position of the United States Government pursuant

22 to priorities established by the President for making pay23 ments.’’.
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1 SEC. 5. PROHIBITION OF SALES OF ASSETS TO AVOID PUB2 LIC DEBT LIMIT.

3 Notwithstanding any other provision of law, no offi4 cer or employee of the United States may sell any property

5 of the United States if the primary purpose of such sale

6 is to avoid the limitation set forth in section 3101(b) of

7 title 31, United States Code (relating to public debt limit).

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