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Union Calendar No. 518

106TH CONGRESS

2D SESSION H. R. 5173

[Report No. 106–862, Part I]

To provide for reconciliation pursuant to sections 103(b)(2) and 213(b)(2)(C)

of the concurrent resolution on the budget for fiscal year 2001 to reduce

the public debt and to decrease the statutory limit on the public debt.

IN THE HOUSE OF REPRESENTATIVES

SEPTEMBER 14, 2000

Mr. FLETCHER (for himself, Mr. HERGER, Mr. ARCHER, Mr. SHAW, Mr.

NUSSLE, Mr. CRANE, Mr. GARY MILLER of California, Mr. LEWIS of

Kentucky, Mr. KUYKENDALL, Mr. TANCREDO, Mr. CAMP, Ms. DUNN,

Mr. HAYWORTH, and Mr. ENGLISH) introduced the following bill; which

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

the Committee on the Budget and the Committee on Rules, 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

SEPTEMBER 18, 2000

Reported from the Committee on Ways and Means with an amendment

[Strike out all after the enacting clause and insert the part printed in italic]

SEPTEMBER 18, 2000

Additional sponsors: Mr. THUNE, Mr. ROYCE, Mr. GALLEGLY, and Mr.

TALENT

SEPTEMBER 18, 2000

Referral to the Committees on Budget and Rules extended for a period ending

not later than September 18, 2000

SEPTEMBER 18, 2000

The Committees on Budget and Rules discharged; committed to the Whole

House on the State of the Union and ordered to be printed
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[For text of introduced bill, see copy of bill as introduced on September 14, 2000]

A BILL

To provide for reconciliation pursuant to sections 103(b)(2)

and 213(b)(2)(C) of the concurrent resolution on the

budget for fiscal year 2001 to reduce the public debt

and to decrease the statutory limit on the public debt.

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

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Debt Relief Lock-Box

5 Reconciliation Act for Fiscal Year 2001’’.

6 SEC. 2. FINDINGS AND PURPOSE.

7 (a) FINDINGS.—The Congress finds that—

8 (1) fiscal discipline, resulting from the Balanced

9 Budget Act of 1997, and strong economic growth have

10 ended decades of deficit spending and have produced

11 budget surpluses without using the social security sur12 plus;

13 (2) fiscal pressures will mount in the future as

14 the aging of the population increases budget obliga15 tions;

16 (3) until Congress and the President agree to leg17 islation that saves social security and medicare, the
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1 social security and medicare surpluses should be used

2 to reduce the debt held by the public;

3 (4) until Congress and the President agree on

4 significant tax reductions, amounts dedicated for that

5 purpose shall be used to reduce the debt held by the

6 public;

7 (5) strengthening the Government’s fiscal posi8 tion through public debt reduction increases national

9 savings, promotes economic growth, reduces interest

10 costs, and is a constructive way to prepare for the

11 Government’s future budget obligations; and

12 (6) it is fiscally responsible and in the long-term

13 national economic interest to use a portion of the

14 nonsocial security and nonmedicare surpluses to re15 duce the debt held by the public.

16 (b) PURPOSE.—It is the purpose of this Act to—

17 (1) reduce the debt held by the public by

18 $240,000,000,000 in fiscal year 2001 with the goal of

19 eliminating this debt by 2012;

20 (2) decrease the statutory limit on the public

21 debt; and

22 (3) ensure that the social security and hospital

23 insurance trust funds shall not be used for other pur24 poses.
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1 TITLE I—DEBT REDUCTION

2 LOCK-BOX

3 SEC. 101. ESTABLISHMENT OF PUBLIC DEBT REDUCTION

4 PAYMENT ACCOUNT.

5 (a) IN GENERAL.—Subchapter I of chapter 31 of title

6 31, United States Code, is amended by adding at the end

7 the following new section:

8 ‘‘§ 3114. Public debt reduction payment account

9 ‘‘(a) There is established in the Treasury of the United

10 States an account to be known as the Public Debt Reduction

11 Payment Account (hereinafter in this section referred to as

12 the ‘account’).

13 ‘‘(b) The Secretary of the Treasury shall use amounts

14 in the account to pay at maturity, or to redeem or buy

15 before maturity, any obligation of the Government held by

16 the public and included in the public debt. Any obligation

17 which is paid, redeemed, or bought with amounts from the

18 account shall be canceled and retired and may not be re19 issued. Amounts deposited in the account are appropriated

20 and may only be expended to carry out this section.

21 ‘‘(c) There is hereby appropriated into the account on

22 October 1, 2000, or the date of enactment of this Act, which23 ever is later, out of any money in the Treasury not other24 wise appropriated, $42,000,000,000 for the fiscal year end-
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1 ing September 30, 2001. The funds appropriated to this ac2 count shall remain available until expended.

3 ‘‘(d) The appropriation made under subsection (c)

4 shall not be considered direct spending for purposes of sec5 tion 252 of Balanced Budget and Emergency Deficit Con6 trol Act of 1985.

7 ‘‘(e) Establishment of and appropriations to the ac8 count shall not affect trust fund transfers that may be au9 thorized under any other provision of law.

10 ‘‘(f) The Secretary of the Treasury and the Director

11 of the Office of Management and Budget shall each take

12 such actions as may be necessary to promptly carry out

13 this section in accordance with sound debt management

14 policies.

15 ‘‘(g) Reducing the debt pursuant to this section shall

16 not interfere with the debt management policies or goals

17 of the Secretary of the Treasury.’’.

18 (b) CONFORMING AMENDMENT.—The chapter analysis

19 for chapter 31 of title 31, United States Code, is amended

20 by inserting after the item relating to section 3113 the fol21 lowing:

‘‘3114. Public debt reduction payment account.’’.

22 SEC. 102. REDUCTION OF STATUTORY LIMIT ON THE PUB23 LIC DEBT.

24 Section 3101(b) of title 31, United States Code, is

25 amended by inserting ‘‘minus the amount appropriated
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1 into the Public Debt Reduction Payment Account pursuant

2 to section 3114(c)’’ after ‘‘$5,950,000,000,000’’.

3 SEC. 103. OFF-BUDGET STATUS OF PUBLIC DEBT REDUC4 TION PAYMENT ACCOUNT.

5 Notwithstanding any other provision of law, the re6 ceipts and disbursements of the Public Debt Reduction Pay7 ment Account established by section 3114 of title 31, United

8 States Code, shall not be counted as new budget authority,

9 outlays, receipts, or deficit or surplus for purposes of—

10 (1) the budget of the United States Government

11 as submitted by the President,

12 (2) the congressional budget, or

13 (3) the Balanced Budget and Emergency Deficit

14 Control Act of 1985.

15 SEC. 104. REMOVING PUBLIC DEBT REDUCTION PAYMENT

16 ACCOUNT FROM BUDGET PRONOUNCEMENTS.

17 (a) IN GENERAL.—Any official statement issued by the

18 Office of Management and Budget, the Congressional Budg19 et Office, or any other agency or instrumentality of the Fed20 eral Government of surplus or deficit totals of the budget

21 of the United States Government as submitted by the Presi22 dent or of the surplus or deficit totals of the congressional

23 budget, and any description of, or reference to, such totals

24 in any official publication or material issued by either of

25 such Offices or any other such agency or instrumentality,
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1 shall exclude the outlays and receipts of the Public Debt

2 Reduction Payment Account established by section 3114 of

3 title 31, United States Code.

4 (b) SEPARATE PUBLIC DEBT REDUCTION PAYMENT

5 ACCOUNT BUDGET DOCUMENTS.—The excluded outlays and

6 receipts of the Public Debt Reduction Payment Account es7 tablished by section 3114 of title 31, United States Code,

8 shall be submitted in separate budget documents.

9 SEC. 105. REPORTS TO CONGRESS.

10 (a) REPORTS OF THE SECRETARY OF THE TREAS11 URY.—(1) Within 30 days after the appropriation is depos12 ited into the Public Debt Reduction Payment Account

13 under section 3114 of title 31, United States Code, the Sec14 retary of the Treasury shall submit a report to the Com15 mittee on Ways and Means of the House of Representatives

16 and the Committee on Finance of the Senate confirming

17 that such account has been established and the amount and

18 date of such deposit. Such report shall also include a de19 scription of the Secretary’s plan for using such money to

20 reduce debt held by the public.

21 (2) Not later than October 31, 2002, the Secretary of

22 the Treasury shall submit a report to the Committee on

23 Ways and Means of the House of Representatives and the

24 Committee on Finance of the Senate setting forth the

25 amount of money deposited into the Public Debt Reduction
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1 Payment Account, the amount of debt held by the public

2 that was reduced, and a description of the actual debt in3 struments that were redeemed with such money.

4 (b) REPORT OF THE COMPTROLLER GENERAL OF THE

5 UNITED STATES.—Not later than November 15, 2002, the

6 Comptroller General of the United States shall submit a re7 port to the Committee on Ways and Means of the House

8 of Representatives and the Committee on Finance of the

9 Senate verifying all of the information set forth in the re10 ports submitted under subsection (a).

11 TITLE II—SOCIAL SECURITY AND

12 MEDICARE LOCK-BOX

13 SEC. 201. PROTECTION OF SOCIAL SECURITY AND MEDI14 CARE SURPLUSES.

15 (a) PROTECTION OF SOCIAL SECURITY AND MEDICARE

16 SURPLUSES.—Section 201 of the concurrent resolution on

17 the budget for fiscal year 2001 (H. Con. Res. 290, 106th

18 Congress) is amended as follows:

19 (1) In the section heading, by inserting ‘‘AND

20 MEDICARE’’ before ‘‘SURPLUSES’’.

21 (2) By striking subsection (c) and inserting the

22 following new subsection:

23 ‘‘(c) LOCK-BOX FOR SOCIAL SECURITY AND HOSPITAL

24 INSURANCE SURPLUSES.—
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1 ‘‘(1) CONCURRENT RESOLUTIONS ON THE BUDG2 ET.—It shall not be in order in the House of Rep3 resentatives or the Senate to consider any concurrent

4 resolution on the budget, or conference report thereon

5 or amendment thereto, that would set forth a surplus

6 for any fiscal year that is less than the surplus of the

7 Federal Hospital Insurance Trust Fund for that fiscal

8 year.

9 ‘‘(2) SUBSEQUENT LEGISLATION.—(A) Except as

10 provided by subparagraph (B), it shall not be in

11 order in the House of Representatives or the Senate

12 to consider any bill, joint resolution, amendment, mo13 tion, or conference report if—

14 ‘‘(i) the enactment of that bill or resolution

15 as reported;

16 ‘‘(ii) the adoption and enactment of that

17 amendment; or

18 ‘‘(iii) the enactment of that bill or resolu19 tion in the form recommended in that conference

20 report,

21 would cause the on-budget surplus for any fiscal year

22 to be less than the projected surplus of the Federal

23 Hospital Insurance Trust Fund (as assumed in the

24 most recently agreed to concurrent resolution on the

25 budget) for that fiscal year or increase the amount by
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1 which the on-budget surplus for any fiscal year would

2 be less than such trust fund surplus for that fiscal

3 year.

4 ‘‘(B) Subparagraph (A) shall not apply to social

5 security reform legislation or medicare reform legisla6 tion.’’.

7 (3) By redesignating subsections (e) and (f) as

8 subsections (g) and (h), respectively, and inserting

9 after subsection (d) the following new subsections:

10 ‘‘(e) CONTENT OF CONCURRENT RESOLUTION ON THE

11 BUDGET.—The concurrent resolution on the budget for each

12 fiscal year shall set forth appropriate levels for the fiscal

13 year beginning on October 1 of such year and for at least

14 each of the 4 ensuing fiscal years of the surplus or deficit

15 in the Federal Hospital Insurance Trust Fund.

16 ‘‘(f) DEFINITIONS.—As used in this section:

17 ‘‘(1) The term ‘medicare reform legislation’

18 means a bill or a joint resolution to save Medicare

19 that includes a provision stating the following: ‘For

20 purposes of section 201(c) of the concurrent resolution

21 on the budget for fiscal year 2001, this Act constitutes

22 medicare reform legislation.’.

23 ‘‘(2) The term ‘social security reform legislation’

24 means a bill or a joint resolution to save social secu25 rity that includes a provision stating the following:
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1 ‘For purposes of section 201(c) of the concurrent reso2 lution on the budget for fiscal year 2001, this Act con3 stitutes social security reform legislation.’.’’.

4 (4) In the first sentence of subsection (h) (as re5 designated), by striking ‘‘(1)’’.

6 (5) At the end, by adding the following new sub7 section:

8 ‘‘(i) EFFECTIVE DATE.—This section shall cease to

9 have any force or effect upon the enactment of social secu10 rity reform legislation and medicare reform legislation.’’.

11 (b) PROTECTION OF SOCIAL SECURITY AND MEDICARE

12 SURPLUSES.—(1) If the budget of the United States Gov13 ernment submitted by the President under section 1105(a)

14 of title 31, United States Code, recommends an on-budget

15 surplus for any fiscal year that is less than the surplus of

16 the Federal Hospital Insurance Trust Fund for that fiscal

17 year, then it shall include proposed legislative language for

18 social security reform legislation or medicare reform legisla19 tion.

20 (2) Paragraph (1) shall cease to have any force or effect

21 upon the enactment of social security reform legislation and

22 medicare reform legislation as defined by section 201(f) of

23 the concurrent resolution on the budget for fiscal year 2001

24 (H. Con. Res 290, 106th Congress).
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1 (c) CONFORMING AMENDMENT.—The item relating to

2 section 201 in the table of contents set forth in section 1(b)

3 of the concurrent resolution on the budget for fiscal year

4 2001 (H. Con. Res 290, 106th Congress) is amended to read

5 as follows:

‘‘Sec. 201. Protection of social security and medicare surpluses.’’.

6 SEC. 202. REMOVING SOCIAL SECURITY FROM BUDGET PRO7 NOUNCEMENTS.

8 (a) IN GENERAL.—Any official statement issued by the

9 Office of Management and Budget, the Congressional Budg10 et Office, or any other agency or instrumentality of the Fed11 eral Government of surplus or deficit totals of the budget

12 of the United States Government as submitted by the Presi13 dent or of the surplus or deficit totals of the congressional

14 budget, and any description of, or reference to, such totals

15 in any official publication or material issued by either of

16 such Offices or any other such agency or instrumentality,

17 shall exclude the outlays and receipts of the old-age, sur18 vivors, and disability insurance program under title II of

19 the Social Security Act (including the Federal Old-Age and

20 Survivors Insurance Trust Fund and the Federal Disability

21 Insurance Trust Fund) and the related provisions of the

22 Internal Revenue Code of 1986.

23 (b) SEPARATE SOCIAL SECURITY BUDGET DOCU24 MENTS.—The excluded outlays and receipts of the old-age,

25 survivors, and disability insurance program under title II
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1 of the Social Security Act shall be submitted in separate

2 Social Security budget documents.
Union Calendar No. 518

106TH CONGRESS

2D SESSION H. R. 5173

[Report No. 106–862, Part I]

A BILL

To provide for reconciliation pursuant to sections

103(b)(2) and 213(b)(2)(C) of the concurrentresolution on the budget for fiscal year 2001 toreduce the public debt and to decrease the statutory limit on the public debt.

SEPTEMBER 18, 2000

Reported from the Committee on Ways and Means with

an amendment

SEPTEMBER 18, 2000

Referral to the Committees on Budget and Rules extended for a period ending not later than September

18, 2000

SEPTEMBER 18, 2000

The Committees on Budget and Rules discharged; committed to the Whole House on the State of the Union

and ordered to be printed