IA

105TH CONGRESS

2D SESSION H. J. RES. 109

Relating to the expenditure of funds by the Federal Government under

National or State tobacco industry settlements.

IN THE HOUSE OF REPRESENTATIVES

FEBRUARY 11, 1998

Mr. HUTCHINSON (for himself, Mr. BLUNT, Mr. BARTON of Texas, Mr. SESSIONS, Mr. STUMP, Mr. DICKEY, Mr. BONILLA, and Mr. SOLOMON) introduced the following joint resolution; which was referred to the Committee

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

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

JOINT RESOLUTION

Relating to the expenditure of funds by the Federal Government under National or State tobacco industry settlements.

Whereas billions of American tax dollars have been spent to

provide health care for those suffering from smoking-related illnesses;

Whereas several individual States have entered into settlements with tobacco companies to be reimbursed for State

expenditures on health care for smoking-related illnesses;

Whereas on June 20, 1997, a group of State attorneys general, plaintiffs’ attorneys, public health advocates, and
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representatives of major tobacco companies announced an

historic national tobacco industry settlement designed to

restructure the tobacco industry and reimburse participating States for their expenditures on smoking-related

illnesses;

Whereas the Federal Government will receive a portion of the

funds included in any settlement; and

Whereas funds received by the Federal Government from any

national tobacco industry settlement should be used to reimburse American taxpayers for past expenditures on tobacco-related health costs: Now, therefore, be it

1 Resolved by the Senate and House of Representatives

2 of the United States of America in Congress assembled,

3 SECTION 1. NEW PROGRAMS.

4 None of the funds received by the Federal Govern5 ment as a result of Federal legislation implementing any

6 portion of a national tobacco industry settlement shall be

7 expended to create or maintain any new Federal programs

8 or to expand currently existing Federal programs unless

9 such expenditures are specifically authorized by the terms

10 of such legislation. None of the funds received by the Fed11 eral government as a result of any individual State settle12 ment shall be expended to create or maintain any new

13 Federal programs or to expand currently existing Federal

14 programs.
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1 SEC. 2. USE OF FUNDS.

2 All funds received by the Federal Government from

3 the Federal legislation implementing any portion of a na4 tional tobacco industry settlement, in excess of those spent

5 on programs specifically designated to receive funds by the

6 terms of such legislation, shall be disbursed by the Sec7 retary of the Treasury to provide tax relief, restore bor8 rowed trust fund accounts, and reduce the national debt

9 as follows:

10 (1) One-third to be invested in marketable Gov11 ernment securities and held in a Tax Cut Offset

12 Trust Fund at the Treasury for use as Congress, by

13 law, directs to offset future revenue reductions.

14 (2) Two-thirds to exchange any special issue

15 nonmarketable Government bonds in the Federal

16 Old-Age and Survivors Insurance Trust Fund or the

17 Federal Disability Insurance Trust Fund with mar18 ketable Government securities.

19 SEC. 3. TRUST FUNDS.

20 (a) FEDERAL OLD-AGE AND SURVIVORS INSURANCE

21 TRUST FUND; FEDERAL DISABILITY INSURANCE TRUST

22 FUND.—When the Federal Old-Age and Survivors Insur23 ance Trust Fund or the Federal Disability Insurance

24 Trust Fund no longer holds nonmarketable Government

25 securities, the Secretary of the Treasury shall direct that

26 two-thirds of all funds referred to in section 2, shall be
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1 used to exchange any special issue nonmarketable Govern2 ment securities with marketable Government securities in

3 the Highway Trust Fund.

4 (b) HIGHWAY TRUST FUND.—When the Highway

5 Trust Fund no longer holds nonmarketable Government

6 securities, then two-thirds of all funds referred to in sec7 tion 2 shall be used to exchange any special issue non8 marketable Government securities with marketable Gov9 ernment securities in other Government trust funds.

10 (c) OTHER TRUST FUNDS.—When all Government

11 trust funds no longer hold nonmarketable Government se12 curities, the Secretary of the Treasury shall direct that

13 two-thirds of all funds referred to in section 2 be used

14 for repayment of debt held by the public.

15 SEC. 4. TREATMENT OF RECEIPTS AND DISBURSEMENTS.

16 (a) IN GENERAL.—Notwithstanding any other provi17 sion of law except the Line Item Veto Act the receipts

18 and disbursements of all funds not to exceed the value

19 of those referred to in section 2—

20 (1) shall not be counted as new budget author21 ity, outlays, receipts, or deficit or surplus for pur22 poses of—

23 (A) the budget of the United States Gov24 ernment as submitted by the President;
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1 (B) the congressional budget (including al2 locations of budget authority and outlays pro3 vided therein); or

4 (C) the Balanced Budget and Emergency

5 Deficit Control Act of 1985; and

6 (2) shall be exempt from any general budget

7 limitation imposed by statute on expenditures and

8 net lending (budget outlays) of the United States

9 Government.

10 (b) SALES.—Upon expenditure from a Government

11 trust fund of any money not counted under subsection (a),

12 the Secretary of the Treasury shall sell a corresponding

13 amount of marketable Government securities from the

14 trust fund and reduce the trust fund balance accordingly.

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