[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.J. Res. 109 Introduced in House (IH)]







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 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
    Resolved by the Senate and House of Representatives of the United 
States of America in Congress assembled,

SECTION 1. NEW PROGRAMS.

    None of the funds received by the Federal Government as a result of 
Federal legislation implementing any portion of a national tobacco 
industry settlement shall be expended to create or maintain any new 
Federal programs or to expand currently existing Federal programs 
unless such expenditures are specifically authorized by the terms of 
such legislation. None of the funds received by the Federal government 
as a result of any individual State settlement shall be expended to 
create or maintain any new Federal programs or to expand currently 
existing Federal programs.

SEC. 2. USE OF FUNDS.

    All funds received by the Federal Government from the Federal 
legislation implementing any portion of a national tobacco industry 
settlement, in excess of those spent on programs specifically 
designated to receive funds by the terms of such legislation, shall be 
disbursed by the Secretary of the Treasury to provide tax relief, 
restore borrowed trust fund accounts, and reduce the national debt as 
follows:
            (1) One-third to be invested in marketable Government 
        securities and held in a Tax Cut Offset Trust Fund at the 
        Treasury for use as Congress, by law, directs to offset future 
        revenue reductions.
            (2) Two-thirds to exchange any special issue nonmarketable 
        Government bonds in the Federal Old-Age and Survivors Insurance 
        Trust Fund or the Federal Disability Insurance Trust Fund with 
        marketable Government securities.

SEC. 3. TRUST FUNDS.

    (a) Federal Old-Age and Survivors Insurance Trust Fund; Federal 
Disability Insurance Trust Fund.--When the Federal Old-Age and 
Survivors Insurance Trust Fund or the Federal Disability Insurance 
Trust Fund no longer holds nonmarketable Government securities, the 
Secretary of the Treasury shall direct that two-thirds of all funds 
referred to in section 2, shall be used to exchange any special issue 
nonmarketable Government securities with marketable Government 
securities in the Highway Trust Fund.
    (b) Highway Trust Fund.--When the Highway Trust Fund no longer 
holds nonmarketable Government securities, then two-thirds of all funds 
referred to in section 2 shall be used to exchange any special issue 
nonmarketable Government securities with marketable Government 
securities in other Government trust funds.
    (c) Other Trust Funds.--When all Government trust funds no longer 
hold nonmarketable Government securities, the Secretary of the Treasury 
shall direct that two-thirds of all funds referred to in section 2 be 
used for repayment of debt held by the public.

SEC. 4. TREATMENT OF RECEIPTS AND DISBURSEMENTS.

    (a) In General.--Notwithstanding any other provision of law except 
the Line Item Veto Act the receipts and disbursements of all funds not 
to exceed the value of those referred to in section 2--
            (1) shall not be counted as new budget authority, outlays, 
        receipts, or deficit or surplus for purposes of--
                    (A) the budget of the United States Government as 
                submitted by the President;
                    (B) the congressional budget (including allocations 
                of budget authority and outlays provided therein); or
                    (C) the Balanced Budget and Emergency Deficit 
                Control Act of 1985; and
            (2) shall be exempt from any general budget limitation 
        imposed by statute on expenditures and net lending (budget 
        outlays) of the United States Government.
    (b) Sales.--Upon expenditure from a Government trust fund of any 
money not counted under subsection (a), the Secretary of the Treasury 
shall sell a corresponding amount of marketable Government securities 
from the trust fund and reduce the trust fund balance accordingly.
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