I
106TH CONGRESS
2D SESSION
H. R. 4551
To repeal the 1993 increase in tax on Social Security benefits and to develop
and apply a Consumer Price Index that accurately reflects the cost-
of-living for older Americans who receive Social Security benefits under
title II of the Social Security Act.
IN THE HOUSE OF REPRESENTATIVES
MAY 25, 2000
Mr. BASS introduced the following bill; which was referred to the Committee
on Ways and Means, and in addition to the Committees on Education
and the Workforce, and Rules, for a period to be subsequently determined
by the Speaker, in each case for consideration of such provisons as fall
within the jursidiction of the committee concerned
A BILL
To repeal the 1993 increase in tax on Social Security benefits
and to develop and apply a Consumer Price Index that
accurately reflects the cost-of-living for older Americans
who receive Social Security benefits under title II of
the Social Security Act.
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 ‘‘Fair Benefits for Sen-
iors Act of 2000’’.
SEC. 2. REPEAL OF 1993 INCREASE IN TAX ON SOCIAL SECU-
RITY BENEFITS.
(a) IN GENERAL.—Paragraph (2) of section 86(a) of
the Internal Revenue Code of 1986 (relating to social se-
curity and tier 1 railroad retirement benefits) is amended
by adding at the end the following new sentence:
‘‘This paragraph shall not apply to any taxable year
beginning after December 31, 2000.’’
(b) CONFORMING AMENDMENTS.—
(1) Paragraph (3) of section 871(a) of such
Code is amended by striking ‘‘85 percent’’ in sub-
paragraph (A) and inserting ‘‘50 percent’’.
(2)(A) Subparagraph (A) of section 121(e)(1)
of the Social Security Amendments of 1983 (Public
Law 98–21) is amended—
(i) by striking ‘‘(A) There’’ and inserting
‘‘There’’;
(ii) by striking ‘‘(i)’’ immediately following
‘‘amounts equivalent to’’; and
(iii) by striking ‘‘, less (ii)’’ and all that
follows and inserting a period.
(B) Paragraph (1) of section 121(e) of such Act
is amended by striking subparagraph (B).
(C) Paragraph (3) of section 121(e) of such Act
is amended by striking subparagraph (B) and by re-
designating subparagraph (C) as subparagraph (B).
(D) Paragraph (2) of section 121(e) of such
Act is amended in the first sentence by striking
‘‘paragraph (1)(A)’’ and inserting ‘‘paragraph (1)’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 2000.
SEC. 3. IMPROVEMENT OF CONSUMER PRICE INDEX FOR
THE ELDERLY BY CONGRESSIONALLY AP-
POINTED REVIEW COMMITTEE.
(a) ESTABLISHMENT OF CONSUMER PRICE INDEX
REVIEW COMMITTEE.—
(1) ESTABLISHMENT.—There is established a
review committee to be known as the Consumer
Price Index Review Committee (in this section re-
ferred to as the ‘‘Committee’’).
(2) MEMBERSHIP.—The Committee shall be
composed of 15 members jointly appointed by the
leadership of the Senate and the House of Rep-
resentatives of whom—
(A) 11 shall be leading experts in the field
of economics and, to the extent feasible, famil-
iar with the issues related to the calculation of
changes in the cost of living; and
(B) 4 shall be representatives of individ-
uals who have attained age 65.
(3) TERMS AND VACANCIES.—
(A) TERMS.—A member of the Committee
appointed under paragraph (2) shall be ap-
pointed for the duration of the Committee.
(B) VACANCIES.—
(i) IN GENERAL.—A vacancy on the
Committee shall be filled in the same man-
ner in which the original appointment was
made and shall be subject to any condi-
tions which applied with respect to the
original appointment.
(ii) FILLING UNEXPIRED TERM.—An
individual chosen to fill a vacancy shall be
appointed for the duration of the Com-
mittee.
(4) INITIAL MEETING.—Not later than 30 days
after the date on which all members of the Com-
mittee have been appointed, the Committee shall
hold its first meeting.
(5) QUORUM.—A majority of the members of
the Committee shall constitute a quorum, but a less-
er number of members may hold hearings.
(6) CHAIRPERSON AND VICE CHAIRPERSON.—
The Committee shall select a Chairperson and Vice
Chairperson from among the members appointed
under paragraph (2).
(b) DUTIES.—
(1) STUDY AND DEVELOPMENT OF IMPLEMEN-
TATION PLAN.—
(A) IN
GENERAL.—The Committee shall
conduct a study—
(i) to improve the method for deter-
mining an index, to be known as the ‘‘Con-
sumer Price Index for the Elderly’’;
(ii) to make recommendations ad-
dressing the limitations of the method for
determining the Experimental Consumer
Price Index for the Elderly calculated by
the Bureau of Labor Statistics to ensure
that the improved index accurately meas-
ures changes over time in expenditures for
consumption that are typical for retirees in
the United States who receive old-age and
survivors insurance benefits under title II
of the Social Security Act (42 U.S.C. 401
et seq.); and
(iii) to develop an implementation
plan.
(B) STUDY
REQUIREMENTS.—The study
described in subparagraph (A) shall include the
following requirements:
(i) The Consumer Price Index for the
Elderly shall be based on an accurate mar-
ket basket of goods and services that re-
flect a representative collection of typical
purchases by the total retiree population in
the United States who receive old-age and
survivors insurance benefits under title II
of such Act.
(ii) The Consumer Expenditure Sur-
vey used by the Bureau of Labor Statistics
to calculate the Experimental Consumer
Price Index for the Elderly shall be re-de-
signed and expanded to collect expenditure
patterns representative of such total retiree
population.
(iii) The areas and outlets priced by
the Bureau of Labor Statistics to calculate
the Experimental Consumer Price Index
for the Elderly shall be modified to reflect
a representation of the places of purchase
for such total retiree population.
(iv) The categories of items to be
priced shall be selected to represent such
total retiree population.
(v) The prices collected shall ade-
quately reflect the availability of discount
prices for such total retiree population.
(vi) Any other limitations otherwise
found to affect the accuracy of the Con-
sumer Price Index for the Elderly shall be
removed.
(C) ADDITIONAL STUDY.—The Committee
shall also study the method for determining an
accurate consumer price index for individuals
who receive disability insurance benefits under
title II of such Act.
(2) REPORT.—
(A) IN
GENERAL.—Subject to subpara-
graph (B), not later than 1 year after the ini-
tial meeting of the Committee under subsection
(a)(4), the Committee shall submit a report to
Congress on the study conducted in accordance
with paragraph (1).
(B) REQUIRED
APPROVAL.—The Com-
mittee shall not submit a report under subpara-
graph (A) unless the report has the approval of
at least 9 members of the Committee.
(c) POWERS.—
(1) HEARINGS.—The Committee may hold such
hearings, sit and act at such times and places, take
such testimony, and receive such evidence as the
Committee considers advisable to carry out the pur-
poses of this section.
(2) INFORMATION FROM FEDERAL AGENCIES.—
The Committee may secure directly from any Fed-
eral department or agency such information as the
Committee considers necessary to carry out this sec-
tion, including the published and unpublished data
and analytical products of the Bureau of Labor Sta-
tistics. Upon request of the Chairperson of the Com-
mittee, the head of such department or agency shall
furnish such information to the Committee in a
timely manner.
(3) POSTAL
SERVICES.—The Committee may
use the United States mails in the same manner and
under the same conditions as other departments and
agencies of the Federal Government.
(4) GIFTS.—The Committee may accept, use,
and dispose of gifts or donations of services or prop-
erty.
(d) PERSONNEL MATTERS.—
(1) COMPENSATION OF MEMBERS.—Each mem-
ber of the Committee who is not otherwise an officer
or employee of the Federal Government shall be
compensated at a rate equal to the daily equivalent
of the annual rate of basic pay prescribed for level
III of the Executive Schedule under section 5315 of
title 5, United States Code, for each day (including
travel time) during which such member is engaged
in the performance of the duties of the Committee.
All members of the Committee who otherwise are of-
ficers or employees of the United States shall serve
without compensation in addition to that received for
their services as officers or employees of the United
States.
(2) TRAVEL EXPENSES.—The members of the
Committee shall be allowed travel expenses, includ-
ing per diem in lieu of subsistence, at rates author-
ized for employees of agencies under subchapter I of
chapter 57 of title 5, United States Code, while
away from their homes or regular places of business
in the performance of services for the Committee.
(3) STAFF.—
(A) IN GENERAL.—The Chairperson of the
Committee may, without regard to the civil
service laws and regulations, appoint and termi-
nate an executive director and such other addi-
tional personnel as may be necessary to enable
the Committee to perform its duties. The em-
ployment of an executive director shall be sub-
ject to confirmation by the Committee.
(B) COMPENSATION.—The Chairperson of
the Committee may fix the compensation of the
executive director and other personnel without
regard to the provisions of chapter 51 and sub-
chapter III of chapter 53 of title 5, United
States Code, relating to classification of posi-
tions and General Schedule pay rates, except
that the rate of pay for the executive director
and other personnel may not exceed the rate
payable for level IV of the Executive Schedule
under section 5316 of such title.
(4) DETAIL
OF
GOVERNMENT
EMPLOYEES.—
Any Federal Government employee may be detailed
to the Committee without additional reimbursement
(other than the employee’s regular compensation),
and such detail shall be without interruption or loss
of civil service status or privilege.
(5) PROCUREMENT OF TEMPORARY AND INTER-
MITTENT SERVICES.—The Chairperson of the Com-
mittee may procure temporary and intermittent serv-
ices under section 3109(b) of title 5, United States
Code, at rates for individuals which do not exceed
the daily equivalent of the annual rate of basic pay
prescribed for level V of the Executive Schedule
under section 5316 of such title.
(e) TERMINATION.—The Committee shall terminate
1 year after the date of the initial meeting of the Com-
mittee under subsection (a)(4).
(f) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated to the Committee such
sums as are necessary to carry out the purposes of this
section.
SEC. 4. BUREAU OF LABOR STATISTICS PILOT PROGRAM
TO TEST CONSUMER PRICE INDEX FOR THE
ELDERLY.
(a) PILOT PROGRAM.—The Commissioner of the Bu-
reau of Labor Statistics shall establish a pilot program
to test the accuracy of an operational index to be rec-
ommended by the Consumer Price Index Review Com-
mittee under section 3 and to be known as the ‘‘Consumer
Price Index for the Elderly’’, which indicates changes over
time in expenditures for consumption which are typical for
retirees in the United States who receive old-age and sur-
vivors insurance benefits under title II of the Social Secu-
rity Act (42 U.S.C. 401 et seq.).
(b) DURATION OF PILOT PROGRAM.—The pilot pro-
gram shall commence with the first month that begins
after the date of the submission of the report under sec-
tion 3(b)(2) and shall continue through December 2003.
SEC. 5. INTERIM APPLICATION OF CONSUMER PRICE
INDEX FOR ALL URBAN CONSUMERS.
For cost-of-living computation quarters (as defined in
section 215(i)(1)(B) of the Social Security Act (42 U.S.C.
415(i)(1)(B)) occurring during the period that begins on
January 1, 2001, and ends with the implementation of
the Official Consumer Price Index for the Elderly under
section 6(b), the Commissioner of Social Security, not-
withstanding section 215(i) of the Social Security Act (42
U.S.C. 415(i)) and any regulations promulgated there-
under, shall use the Consumer Price Index for All Urban
Consumers to calculate cost-of-living adjustments for ben-
efits described in section 6(b)(1).
SEC. 6. APPLICATION OF CONSUMER PRICE INDEX FOR
THE ELDERLY.
(a) IMPLEMENTATION.—
(1) COMMISSIONER OF BUREAU OF LABOR STA-
TISTICS.—
(A) IN
GENERAL.—Subject to subpara-
graph (B), not later than the fourth year that
begins after the Consumer Price Index Review
Committee submits the report required under
section 3(b)(2), the Commissioner of the Bu-
reau of Labor Statistics shall prepare and pub-
lish monthly the Official Consumer Price Index
for the Elderly based on the implementation
plan and recommendations included in that re-
port.
(B) NO
IMPLEMENTATION
IF
CONGRES-
SIONAL
DISAPPROVAL
OF
COMMITTEE
RE-
PORT.—Subparagraph (A) shall not apply if a
joint resolution is enacted, in accordance with
paragraph (2), disapproving the report sub-
mitted by the Consumer Price Index Review
Committee before the end of the 90-day period
that begins on the date on which the Review
Committee submits the report.
(C) EXCLUSION OF CERTAIN DAYS.—For
purposes of subparagraph (B) and paragraph
(2), the days on which either House of Con-
gress is not in session because of an adjourn-
ment of more than 3 days to a day certain shall
be excluded from the computation of the period.
(2) CONGRESSIONAL CONSIDERATION.—
(A) TERMS
OF
THE
RESOLUTION.—For
purposes of paragraph (1)(A), the term ‘‘joint
resolution’’ means only a joint resolution that is
introduced within the period described in that
paragraph and—
(i) that does not have a preamble;
(ii) the matter after the resolving
clause of which is as follows: ‘‘That Con-
gress disapproves the report of the Con-
sumer Price Index Review Committee re-
garding the implementation of the Con-
sumer Price Index for the Elderly sub-
mitted on llll.’’, the blank space
being filled in with the appropriate date;
and
(iii) the title of which is as follows:
‘‘Joint resolution disapproving the report
of the Consumer Price Index Review Com-
mittee regarding the implementation of the
Consumer Price Index for the Elderly.’’.
(B) REFERRAL.—A resolution described in
subparagraph (A) that is introduced—