Debt Ceiling Reform Act
Bill: S.3654 | Sponsor: Sen. Durbin, Richard J. (D-IL)
Policy area: Economics and Public Finance

Summary:
Debt Ceiling Reform Act
This bill replaces the existing federal debt limit with procedures that allow the Department of the Treasury to continue issuing additional debt unless Congress passes a joint resolution of disapproval regarding the additional debt, and the joint resolution becomes law.

To amend chapter 31 of title 31, United States Code, to provide 
procedures for congressional disapproval of the issuance of additional 
                                 debt.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Debt Ceiling Reform Act''.

SEC. 2. PROCEDURES FOR CONGRESSIONAL DISAPPROVAL OF ISSUANCE OF 
              ADDITIONAL DEBT.

    Section 3101 of title 31, United States Code, is amended to read as 
follows:
``Sec. 3101. Public debt limit
    ``(a) Definition of Joint Resolution.--In this section, the term 
`joint resolution' means a joint resolution--
            ``(1) that is introduced during the period--
                    ``(A) beginning on the date on which a 
                certification under subsection (b)(1) is received; and
                    ``(B) ending on the date that is 3 calendar days 
                after the date described in subparagraph (A) (or, if a 
                House was not in session, the next calendar day on 
                which that House is in session);
            ``(2) which does not have a preamble;
            ``(3) the title of which is only as follows: `Joint 
        resolution relating to the disapproval of the President's 
        exercise of authority to issue additional debt, as submitted 
        under section 3101 of title 31, United States Code, on ______' 
        (with the blank space being filled in with the date on which 
        the applicable certification under subsection (b)(1) was 
        received); and
            ``(4) the matter after the resolving clause of which is 
        only as follows: `That Congress disapproves of the President's 
        exercise of the authority to issue additional debt, as 
        exercised pursuant to the certification under section 3101(b) 
        of title 31, United States Code.'.
    ``(b) Certification.--
            ``(1) In general.--The President shall submit to Congress a 
        written certification whenever the President determines that 
        the debt is within $100,000,000,000 of a $1,000,000,000,000 
        increment and that further borrowing is required to meet 
        existing commitments.
            ``(2) Authority to issue debt after certification.--Subject 
        to the requirements of this section, the United States may 
        issue additional debt as necessary to meet existing commitments 
        on and after the date on which the President submits a written 
        certification to Congress under paragraph (1).
            ``(3) Resolution of disapproval.--Congress may consider a 
        joint resolution relating to each certification submitted by 
        the President under paragraph (1).
    ``(c) Enactment of Joint Resolution.--The United States may not 
issue additional debt if, not later than 50 calendar days after the 
date on which Congress receives a certification submitted under 
subsection (b)(1) (regardless of whether Congress is in session), there 
is enacted into law a joint resolution disapproving the President's 
exercise of authority to issue additional debt.
    ``(d) Expedited Consideration in the House of Representatives.--
            ``(1) Reconvening.--Upon receipt of a certification 
        submitted under subsection (b)(1), the Speaker, if the House of 
        Representatives would otherwise be adjourned, shall notify the 
        Members of the House of Representatives that, pursuant to this 
        section, the House of Representatives shall convene not later 
        than the second calendar day after receipt of such 
        certification.
            ``(2) Reporting and discharge.--Any committee of the House 
        of Representatives to which a joint resolution is referred 
        shall report it to the House of Representatives without 
        amendment not later than 5 calendar days after the date of 
        introduction of the joint resolution. If a committee fails to 
        report the joint resolution within that period, the committee 
        shall be discharged from further consideration of the joint 
        resolution and the joint resolution shall be referred to the 
        appropriate calendar.
            ``(3) Proceeding to consideration.--After each committee 
        authorized to consider a joint resolution reports it to the 
        House of Representatives or has been discharged from its 
        consideration, it shall be in order, not later than the sixth 
        day after introduction of the joint resolution, to move to 
        proceed to consider the joint resolution in the House of 
        Representatives. All points of order against the motion are 
        waived. Such a motion shall not be in order with respect to a 
        joint resolution relating to a certification after the House of 
        Representatives has disposed of a motion to proceed that joint 
        resolution. The previous question shall be considered as 
        ordered on the motion to its adoption without intervening 
        motion. The motion shall not be debatable. A motion to 
        reconsider the vote by which the motion is disposed of shall 
        not be in order.
            ``(4) Consideration.--A joint resolution shall be 
        considered as read. All points of order against a joint 
        resolution and against its consideration are waived. An 
        amendment to a joint resolution is not in order. The previous 
        question shall be considered as ordered on a joint resolution 
        to its passage without intervening motion except 2 hours of 
        debate equally divided and controlled by the proponent and an 
        opponent. A motion to reconsider the vote on passage of a joint 
        resolution shall not be in order.
    ``(e) Expedited Procedure in the Senate.--
            ``(1) Reconvening.--Upon receipt of a certification under 
        subsection (b)(1), if the Senate has adjourned or recessed for 
        more than 2 days, the majority leader of the Senate, after 
        consultation with the minority leader of the Senate, shall 
        notify the Members of the Senate that, pursuant to this 
        section, the Senate shall convene not later than the second 
        calendar day after receipt of such message.
            ``(2) Placement on calendar.--Upon introduction in the 
        Senate, a joint resolution shall be immediately placed on the 
        calendar.
            ``(3) Floor consideration.--
                    ``(A) In general.--Notwithstanding rule XXII of the 
                Standing Rules of the Senate, it is in order at any 
                time during the period beginning on the day after the 
                date on which Congress receives a certification under 
                subsection (b)(1) and ending on the 6th day after the 
                date on which Congress receives the certification (even 
                though a previous motion to the same effect has been 
                disagreed to) to move to proceed to the consideration 
                of a joint resolution relating to the certification, 
                and all points of order against the joint resolution 
                (and against consideration of the joint resolution) are 
                waived. The motion to proceed is not debatable. The 
                motion is not subject to a motion to postpone. A motion 
                to reconsider the vote by which the motion is agreed to 
                or disagreed to shall not be in order. If a motion to 
                proceed to the consideration of a joint resolution is 
                agreed to, the joint resolution shall remain the 
                unfinished business until disposed of.
                    ``(B) Consideration.--Consideration of a joint 
                resolution, and on all debatable motions and appeals in 
                connection therewith, shall be limited to not more than 
                10 hours, which shall be divided equally between the 
                majority and minority leaders or their designees. A 
                motion further to limit debate is in order and not 
                debatable. An amendment to a joint resolution, a motion 
                to postpone, or a motion to proceed to the 
                consideration of other business, or a motion to 
                recommit a joint resolution is not in order.
                    ``(C) Vote on passage.--If the Senate has voted to 
                proceed to a joint resolution, the vote on passage of 
                the joint resolution shall occur immediately following 
                the conclusion of consideration of the joint 
                resolution, and a single quorum call at the conclusion 
                of the debate if requested in accordance with the rules 
                of the Senate.
                    ``(D) Rulings of the chair on procedure.--Appeals 
                from the decisions of the Chair relating to the 
                application of the rules of the Senate, as the case may 
                be, to the procedure relating to a joint resolution 
                shall be decided without debate.
    ``(f) Coordination With Action by Other House.--
            ``(1) In general.--If, before passing a joint resolution 
        relating to a certification under subsection (b)(1), one House 
        receives from the other a joint resolution relating to the same 
        certification--
                    ``(A) the joint resolution of the other House shall 
                not be referred to a committee; and
                    ``(B) the procedure in the receiving House shall be 
                the same as if no joint resolution had been received 
                from the other House until the vote on passage, when 
                the joint resolution received from the other House 
                shall supplant the joint resolution of the receiving 
                House.
            ``(2) Treatment of joint resolution of other house.--If the 
        Senate fails to introduce or consider a joint resolution under 
        this section relating to a certification under subsection 
        (b)(1), the joint resolution of the House relating to the same 
        certification shall be entitled to expedited floor procedures 
        under this section.
            ``(3) Treatment of companion measures.--If, following 
        passage of a joint resolution in the Senate, the Senate 
        receives the companion measure from the House of 
        Representatives, the companion measure shall not be debatable.
            ``(4) Consideration after passage.--
                    ``(A) In general.--If Congress passes a joint 
                resolution, the period beginning on the date the 
                President is presented with the joint resolution and 
                ending on the date the President signs, allows to 
                become law without his signature, or vetoes and returns 
                the joint resolution (but excluding days when either 
                House is not in session) shall be disregarded in 
                computing the calendar day period described in 
                subsection (c).
                    ``(B) Veto message.--Debate on a veto message in 
                the Senate under this section shall be 1 hour equally 
                divided between the majority and minority leaders or 
                their designees.
            ``(5) Veto override.--If, within the calendar day period 
        described in subsection (c), Congress overrides a veto of a 
        joint resolution relating to a certification submitted under 
        subsection (b)(1), the United States may not issue any 
        additional debt this chapter.
    ``(g) Rules of House of Representatives and Senate.--This 
subsection and subsections (a), (d), (e), and (f) are enacted by 
Congress--
            ``(1) as an exercise of the rulemaking power of the Senate 
        and House of Representatives, respectively, and as such are 
        deemed a part of the rules of each House, respectively, but 
        applicable only with respect to the procedure to be followed in 
        that House in the case of a joint resolution, and they 
        supersede other rules only to the extent that they are 
        inconsistent with such rules; and
            ``(2) with full recognition of the constitutional right of 
        either House to change the rules (so far as relating to the 
        procedure of that House) at any time, in the same manner, and 
        to the same extent as in the case of any other rule of that 
        House.
    ``(h) Debt Defined.--
            ``(1) In general.--For purposes of this section, the term 
        `debt' means the face amount of obligations issued under this 
        chapter and the face amount of obligations whose principal and 
        interest are guaranteed by the United States Government (except 
        guaranteed obligations held by the Secretary of the Treasury).
            ``(2) Determination of face amount.--
                    ``(A) In general.--For purposes of this section, 
                the current redemption value of an obligation issued on 
                a discount basis and redeemable before maturity at the 
                option of its holder is deemed to be the face amount of 
                the obligation.
                    ``(B) Certain obligations not redeemable before 
                maturity.--For purposes of this section, the face 
                amount, for any month, of any obligation issued on a 
                discount basis that is not redeemable before maturity 
                at the option of the holder of the obligation is an 
                amount equal to the sum of--
                            ``(i) the original issue price of the 
                        obligation, plus
                            ``(ii) the portion of the discount on the 
                        obligation attributable to periods before the 
                        beginning of such month (as determined under 
                        the principles of section 1272(a) of the 
                        Internal Revenue Code of 1986 without regard to 
                        any exceptions contained in paragraph (2) of 
                        such section).''.

SEC. 3. REPEAL OF EXPIRED PROVISION.

    (a) Repeal.--Section 3101A of title 31, United States Code, is 
repealed.
    (b) Clerical Amendment.--The table of sections for subchapter I of 
chapter 31 of title 31, United States Code, is amended by striking the 
item relating to section 3101A.

SEC. 4. TECHNICAL AND CONFORMING AMENDMENTS.

    (a) In General.--
            (1) Section 8348 of title 5, United States Code, is amended 
        by striking subsections (j), (k), and (l).
            (2) Section 8438 of title 5, United States Code, is amended 
        by striking subsections (g) and (h).
            (3) Section 14(d)(2)(A) of the Federal Deposit Insurance 
        Act (12 U.S.C. 1824(d)(2)(A)) is amended--
                    (A) by striking ``in section 3101(b)'' and 
                inserting ``under section 3101''; and
                    (B) by striking ``an obligation to which such limit 
                applies'' and inserting ``debt, as defined in 
                subsection (h) of such section''.
    (b) Savings Provisions.--Notwithstanding the amendments made by 
paragraphs (1) and (2) of subsection (a)--
            (1) paragraphs (2), (3), and (4) of subsection (j) and 
        subsection (l)(1) of section 8348 of title 5, United States 
        Code, as in effect on the day before the date of enactment of 
        this Act, shall apply to any debt issuance suspension period 
        (as defined under section 8348(j)(5) of such title) that is in 
        effect on the date of enactment of this Act; and
            (2) paragraphs (2), (3), and (4) of subsection (g) and 
        subsection (h)(1) of section 8438 of title 5, United States 
        Code, as in effect on the day before the date of enactment of 
        this Act, shall apply to any debt issuance suspension period 
        (as defined under section 8438(g)(6) of such title) that is in 
        effect on the date of enactment of this Act.
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