I

103D CONGRESS

2D SESSION H. R. 3802

To provide that cost-of-living adjustments to payments made under Federal

law shall be determined using a new price index which does not take

into account tobacco products and distilled spirits.

IN THE HOUSE OF REPRESENTATIVES

FEBRUARY 3, 1994

Mr. SMITH of Michigan introduced the following bill; which was referred jointly to the Committees on Ways and Means, Post Office and Civil Service,

Energy and Commerce, and Armed Services

A BILL

To provide that cost-of-living adjustments to payments made

under Federal law shall be determined using a new price

index which does not take into account tobacco products

and distilled spirits.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. COST-OF-LIVING ADJUSTMENTS TO PAYMENTS

2 MADE UNDER FEDERAL LAW DETERMINED

3 USING PRICE INDEX WHICH DOES NOT TAKE

4 INTO ACCOUNT TOBACCO PRODUCTS AND

5 DISTILLED SPIRITS.

6 (a) IN GENERAL.—Notwithstanding any other provi7 sion of law, the Consumer Price Index for Government

8 Use (CPI-G) established by subsection (c) shall be used

9 to determine the amount of any cost-of-living or similar

10 adjustment to any payment (including payments referred

11 to in subsection (b)) made under Federal law which is oth12 erwise subject to such an adjustment using any price index

13 which takes into account prices of tobacco products or dis14 tilled spirits or both.

15 (b) PAYMENTS AFFECTED.—The payments referred

16 to in this subsection are:

17 (1) Benefits payable under the Social Security

18 Act.

19 (2) Retirement benefits payable to former em20 ployees of the United States or to former members

21 of the Armed Forces of the United States.

22 (3) Payments on account of the death or dis23 ability of any employee or former employee of the

24 United States.

25 (4) Tier 1 railroad retirement benefits.

26 (c) PUBLICATION OF NEW INDEX.—
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1 (1) IN GENERAL.—Not later than August 1,

2 1994, the Bureau of Labor Statistics shall publish

3 a Consumer Price Index for Government Use (CPI4 G).

5 (2) INDEX NOT TO INCLUDE TOBACCO PROD6 UCTS AND DISTILLED SPIRITS.—The Consumer

7 Price Index for Government Use (CPI-G) shall be

8 modeled after the Consumer Price Index for All

9 Urban Consumers, but shall not include tobacco

10 products and distilled spirits in the items for which

11 prices are compared.

12 (3) PAST PERIODS INCLUDED.—Such Index

13 shall be determined, to the extent practicable, for

14 the same periods before October 1, 1994, that the

15 Consumer Price Index for All Urban Consumers was

16 determined.

17 (d) TRANSITION TO NEW INDEX.—If, in determining

18 an amount for any period, an adjustment takes into ac19 count periods before October 1, 1994, and periods after

20 September 30, 1994—

21 (1) the Consumer Price Index for Government

22 Use shall be treated as being used for all periods,

23 and

24 (2) the amount being adjusted shall be treated

25 as being the amount which, had such Index been
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1 used for all prior periods, would result in the

2 amount in effect for the immediately preceding pe3 riod.

4 (e) EFFECTIVE DATE.—The section shall apply to

5 adjustments after September 30, 1994.

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