I

103D CONGRESS

1ST SESSION H. R. 1244

To establish a deficit reduction account and a Build America Account in

the Treasury of the United States.

IN THE HOUSE OF REPRESENTATIVES

MARCH 4, 1993

Mr. WISE introduced the following bill; which was referred to the Committee

on Ways and Means

A BILL

To establish a deficit reduction account and a Build America

Account in the Treasury of the United States.

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 ‘‘Deficit Reduction Ac5 count Act of 1993’’.

6 SEC. 2. ESTABLISHMENT OF DEFICIT REDUCTION AC7 COUNT.

8 (a) ESTABLISHMENT.—(1) There is established in

9 the Treasury of the United States an account to be known

10 as the ‘‘Deficit Reduction Account’’, consisting of such
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1 amounts as may be appropriated or credited to the Deficit

2 Reduction Account as provided in this section.

3 (2) The trustees of the Deficit Reduction Account

4 shall be the Secretary of the Treasury and 2 members of

5 the public (both of whom may not be of the same political

6 party) and who shall be nominated by the President for

7 a term of 4 years and subject to confirmation by the

8 Senate.

9 (b) TRANSFER TO FUND OF AMOUNTS SPECIFIED IN

10 SUBSEQUENT ACTS OF CONGRESS.—There is hereby ap11 propriated to the Deficit Reduction Account amounts de12 termined by the Secretary of the Treasury to be equivalent

13 to amounts specified by subsequent Acts of Congress.

14 (c) TRANSFERS FROM THE FUND.—(1)(A) It shall

15 be the duty of the Secretary of the Treasury to invest such

16 portion of the Deficit Reduction Account as is not required

17 to meet current withdrawals. Such investments may be

18 made only in interest-bearing obligations of the United

19 States. For such purpose, such obligations may be ac20 quired—

21 (i) on original issue at the issue price, or

22 (ii) by the purchase of outstanding obligations

23 at the market price.

24 (B) Any obligation acquired by the Deficit Reduction

25 Account under subparagraph (A) may be sold by the Sec-
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1 retary of the Treasury at the market price and the pro2 ceeds from such sale shall be credited to the Account.

3 (2) For appropriation of interest earned on obliga4 tions in the Deficit Reduction Account to the Build Amer5 ica Account, see section 3(b).

6 SEC. 3. ESTABLISHMENT OF BUILD AMERICA ACCOUNT.

7 (a) ESTABLISHMENT.—(1) There is established in

8 the Treasury of the United States an account to be known

9 as the ‘‘Build America Account’’, consisting of such

10 amounts as may be appropriated or credited to the Build

11 America Account as provided in this section.

12 (2) The trustees of the Build America Account shall

13 be the same trustees as the trustees of the Deficit Reduc14 tion Account.

15 (b) TRANSFER TO THE ACCOUNT OF CERTAIN

16 AMOUNTS FROM DEFICIT REDUCTION ACCOUNT.—There

17 is hereby appropriated to the Build America Account the

18 amount determined by the Secretary of the Treasury to

19 be equal to the interest earned on obligations in the Deficit

20 Reduction Account.

21 (c) TRANSFERS FROM THE ACCOUNT.—(1)(A) It

22 shall be the duty of the Secretary of the Treasury to invest

23 such portion of the Build America Account as is not re24 quired to meet current withdrawals. Such investments

25 may be made only in interest-bearing obligations of the
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1 United States. For such purpose, such obligations may be

2 acquired—

3 (i) on original issue at the issue price, or

4 (ii) by the purchase of outstanding obligations

5 at the market price.

6 (B) Any obligation acquired by the Build America Ac7 count under subparagraph (A) may be sold by the Sec8 retary of the Treasury at the market price and the pro9 ceeds from such sale shall be credited to the Account.

10 (2) Interest earned on any obligations shall be cred11 ited to the Account.

12 (3) Beginning 5 years after the date of enactment

13 of this section, amounts in the Build America Account

14 shall be available, as provided in appropriation Acts, for

15 public investment.

16 (d) ANNUAL REPORTS.—The President shall report

17 annually to each House of the Congress on the financial

18 condition of the Deficit Reduction Account and the Build

19 America Account and the extent to which each such fund

20 has been used to carry out its purposes.

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