IB
Union Calendar No. 377
106TH CONGRESS
2D SESSION
H. R. 4601
[Report No. 106–673, Part I]
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.
IN THE HOUSE OF REPRESENTATIVES
JUNE 8, 2000
Mr. FLETCHER (for himself, Mr. ARCHER, Mr. KASICH, Mr. TOOMEY, Mr.
CRANE, Mr. SHAW, Mr. HERGER, Mr. CAMP, Mr. RAMSTAD, Mr.
NUSSLE, Mr. SAM JOHNSON of Texas, Ms. DUNN, Mr. PORTMAN, Mr.
ENGLISH, Mr. HAYWORTH, Mr. WELLER, Mr. MCINNIS, Mr. LEWIS of
Kentucky, Mr. BLUNT, Mr. KUYKENDALL, Mr. DEMINT, Mr. GREEN of
Wisconsin, and Mr. CHABOT) introduced the following bill; which was re-
ferred 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 with-
in the jurisdiction of the committee concerned
JUNE 12, 2000
Additional sponsors: Mrs. NORTHUP and Mr. GARY MILLER of California
JUNE 12, 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]
JUNE 12, 2000
Referral to the Committee on the Budget extended for a period ending not
later than June 12, 2000
JUNE 12, 2000
The Committee on the Budget discharged; committed to the Committee of the
Whole House on the State of the Union and ordered to be printed
[For text of introduced bill, see copy of bill as introduced on June 8, 2000]
A BILL
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,
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 Balanced
Budget Act of 1997, and strong economic growth have
ended decades of deficit spending and have produced
budget surpluses without using the social security sur-
plus;
(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 leg-
islation that strengthens social security, the social se-
curity 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 por-
tion of the nonsocial security surplus to reduce the
debt held by the public.
(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 PAY-
MENT 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 (hereinafter in this section referred 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 obligation
which is paid, redeemed, or bought with amounts from the
account shall be canceled and retired and may not be re-
issued. Amounts deposited in the account are appropriated
and may only be expended to carry out this section.
‘‘(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 concur-
rent 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 Congres-
sional Budget Office submits such report, out of any money
in the Treasury not otherwise appropriated, 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 au-
thorized 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
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 analysis
for chapter 31 of title 31, United States Code, is amended
by inserting after the item relating to section 3113 the fol-
lowing:
‘‘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 pursuant
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 Pay-
ment 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 purposes of—
(1) the budget of the United States Government
as submitted by the President,
(2) the congressional budget, or
(3) the Balanced Budget and Emergency Deficit
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 Budg-
et Office, or any other agency or instrumentality of the Fed-
eral Government of surplus or deficit totals of the budget
of the United States Government as submitted by the Presi-
dent or of the surplus or deficit totals of the congressional
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 instrumentality,
shall exclude the outlays and receipts of the Public Debt
Reduction Payment Account established by section 3114 of
title 31, United States Code.