II
Calendar No. 626
106TH CONGRESS
2D SESSION
H. R. 4601
IN THE SENATE OF THE UNITED STATES
JUNE 21, 2000
Received; read the first time
JUNE 22, 2000
Read the second time and placed on the calendar
AN ACT
To provide for reconciliation pursuant to section 213(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.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
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SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Debt Reduction Rec-
onciliation Act of 2000’’.
SEC. 2. FINDINGS AND PURPOSE.
(a) FINDINGS.—The Congress finds that—
(1) fiscal discipline, resulting from the Bal-
anced Budget Act of 1997, and strong economic
growth have ended decades of deficit spending and
have produced budget surpluses without using the
social security surplus;
(2) fiscal pressures will mount in the future as
the aging of the population increases budget obliga-
tions;
(3) until Congress and the President agree to
legislation that strengthens social security, the social
security surplus should be used to reduce the debt
held by the public;
(4) strengthening the Government’s fiscal posi-
tion through public debt reduction increases national
savings, promotes economic growth, reduces interest
costs, and is a constructive way to prepare for the
Government’s future budget obligations; and
(5) it is fiscally responsible and in the long-
term national economic interest to use an additional
portion of the nonsocial security surplus to reduce
the debt held by the public.
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(b) PURPOSE.—It is the purpose of this Act to—
(1) reduce the debt held by the public with the
goal of eliminating this debt by 2013; and
(2) decrease the statutory limit on the public
debt.
SEC. 3. ESTABLISHMENT OF PUBLIC DEBT REDUCTION
PAYMENT ACCOUNT.
(a) IN GENERAL.—Subchapter I of chapter 31 of title
31, United States Code, is amended by adding at the end
the following new section:
‘‘§ 3114. Public debt reduction payment account
‘‘(a) There is established in the Treasury of the
United States an account to be known as the Public Debt
Reduction Payment Account (hereafter in this section re-
ferred to as the ‘account’).
‘‘(b) The Secretary of the Treasury shall use amounts
in the account to pay at maturity, or to redeem or buy
before maturity, any obligation of the Government held
by the public and included in the public debt. Any obliga-
tion which is paid, redeemed, or bought with amounts
from the account shall be canceled and retired and may
not be reissued. Amounts deposited in the account are ap-
propriated and may only be expended to carry out this
section.
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‘‘(c) If the Congressional Budget Office estimates an
on-budget surplus for fiscal year 2000 in the report sub-
mitted pursuant to section 202(e)(2) of the Congressional
Budget Act of 1974 in excess of the amount of the surplus
set forth for that fiscal year in section 101(4) of the con-
current resolution on the budget for fiscal year 2001
(House Concurrent Resolution 290, 106th Congress), then
there is hereby appropriated into the account on the later
of the date of enactment of this Act or the date upon
which the Congressional Budget Office submits such re-
port, out of any money in the Treasury not otherwise ap-
propriated, for the fiscal year ending September 30, 2000,
an amount equal to that excess. The funds appropriated
to this account shall remain available until expended.
‘‘(d) The appropriation made under subsection (c)
shall not be considered direct spending for purposes of sec-
tion 252 of Balanced Budget and Emergency Deficit Con-
trol Act of 1985.
‘‘(e) Establishment of and appropriations to the ac-
count shall not affect trust fund transfers that may be
authorized under any other provision of law.
‘‘(f) The Secretary of the Treasury and the Director
of the Office of Management and Budget shall each take
such actions as may be necessary to promptly carry out
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this section in accordance with sound debt management
policies.
‘‘(g) Reducing the debt pursuant to this section shall
not interfere with the debt management policies or goals
of the Secretary of the Treasury.’’.
(b) CONFORMING AMENDMENT.—The chapter anal-
ysis for chapter 31 of title 31, United States Code, is
amended by inserting after the item relating to section
3113 the following:
‘‘3114. Public debt reduction payment account.’’.
SEC. 4. REDUCTION OF STATUTORY LIMIT ON THE PUBLIC
DEBT.
Section 3101(b) of title 31, United States Code, is
amended by inserting ‘‘minus the amount appropriated
into the Public Debt Reduction Payment Account pursu-
ant to section 3114(c)’’ after ‘‘$5,950,000,000,000’’.
SEC. 5. OFF-BUDGET STATUS OF PUBLIC DEBT REDUCTION
PAYMENT ACCOUNT.
Notwithstanding any other provision of law, the re-
ceipts and disbursements of the Public Debt Reduction
Payment Account established by section 3114 of title 31,
United States Code, shall not be counted as new budget
authority, outlays, receipts, or deficit or surplus for pur-
poses of—
(1) the budget of the United States Govern-
ment as submitted by the President;
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(2) the congressional budget; or
(3) the Balanced Budget and Emergency Def-
icit Control Act of 1985.
SEC. 6. REMOVING PUBLIC DEBT REDUCTION PAYMENT AC-
COUNT FROM BUDGET PRONOUNCEMENTS.
(a) IN GENERAL.—Any official statement issued by
the Office of Management and Budget, the Congressional
Budget Office, or any other agency or instrumentality of
the Federal Government of surplus or deficit totals of the
budget of the United States Government as submitted by
the President or of the surplus or deficit totals of the con-
gressional budget, and any description of, or reference to,
such totals in any official publication or material issued
by either of such Offices or any other such agency or in-
strumentality, shall exclude the outlays and receipts of the
Public Debt Reduction Payment Account established by
section 3114 of title 31, United States Code.
(b) SEPARATE PUBLIC DEBT REDUCTION PAYMENT
ACCOUNT BUDGET DOCUMENTS.—The excluded outlays
and receipts of the Public Debt Reduction Payment Ac-
count established by section 3114 of title 31, United
States Code, shall be submitted in separate budget docu-
ments.
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SEC. 7. REPORTS TO CONGRESS.
(a) REPORTS OF THE SECRETARY OF THE TREAS-
URY.—(1) Within 30 days after the appropriation is de-
posited into the Public Debt Reduction Payment Account
under section 3114 of title 31, United States Code, the
Secretary of the Treasury shall submit a report to the
Committee on Ways and Means of the House of Rep-
resentatives and the Committee on Finance of the Senate
confirming that such account has been established and the
amount and date of such deposit. Such report shall also
include a description of the Secretary’s plan for using such
money to reduce debt held by the public.
(2) Not later than October 31, 2000, and October
31, 2001, the Secretary of the Treasury shall submit a
report to the Committee on Ways and Means of the House
of Representatives and the Committee on Finance of the
Senate setting forth the amount of money deposited into
the Public Debt Reduction Payment Account, the amount
of debt held by the public that was reduced, and a descrip-
tion of the actual debt instruments that were redeemed
with such money.
(b) REPORT OF THE COMPTROLLER GENERAL OF
THE UNITED STATES.—Not later than November 15,
2001, the Comptroller General of the United States shall
submit a report to the Committee on Ways and Means
of the House of Representatives and the Committee on
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Finance of the Senate verifying all of the information set
forth in the reports submitted under subsection (a).
Passed the House of Representatives June 20, 2000.
Attest:
JEFF TRANDAHL,
Clerk.
By MARTHA C. MORRISON,
Deputy Clerk.