[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2796 Introduced in House (IH)]







106th CONGRESS
  1st Session
                                H. R. 2796

  To amend chapter 11 of title 31, United States Code, to establish a 
            Debt Reduction Lockbox, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             August 5, 1999

Mr. Tanner (for himself, Mr. Stenholm, Mr. John, Mr. Cramer, Mr. Minge, 
 Mr. Boyd, Mr. Hill of Indiana, Mr. Sandlin, Mr. Turner, Ms. Sanchez, 
 Mr. Phelps, Mr. McIntyre, Mr. Thompson of California, and Mr. Moore) 
 introduced the following bill; which was referred to the Committee on 
 the Budget, and in addition to the Committees on Ways and Means, and 
 Rules, 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

_______________________________________________________________________

                                 A BILL


 
  To amend chapter 11 of title 31, United States Code, to establish a 
            Debt Reduction Lockbox, and for other purposes.

    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 Reduction Lockbox Act of 
1999''.

SEC. 2. PROTECTION OF SOCIAL SECURITY SURPLUSES.

    (a) Points of Order To Protect Social Security Surpluses.--Section 
312 of the Congressional Budget Act of 1974 is amended by adding at the 
end the following new subsection:
    ``(g) Points of Order To Protect Social Security Surpluses.--
            ``(1) Concurrent resolutions on the budget.--It shall not 
        be in order in the House of Representatives or the Senate to 
        consider any concurrent resolution on the budget, or conference 
        report thereon or amendment thereto, that would set forth an 
        on-budget deficit for any fiscal year.
            ``(2) Subsequent legislation.--It shall not be in order in 
        the House of Representatives or the Senate to consider any 
        bill, joint resolution, amendment, motion, or conference report 
        if--
                    ``(A) the enactment of that bill or resolution as 
                reported;
                    ``(B) the adoption and enactment of that amendment; 
                or
                    ``(C) the enactment of that bill or resolution in 
                the form recommended in that conference report, would 
                cause or increase an on-budget deficit for any fiscal 
                year.
            ``(3) Definition.--For purposes of this section, the term 
        `on-budget deficit', when applied to a fiscal year, means the 
        deficit in the budget as set forth in the most recently agreed 
        to concurrent resolution on the budget pursuant to section 
        301(a)(3) for that fiscal year.''.
    (b) Content of Concurrent Resolution on the Budget.--Section 301(a) 
of the Congressional Budget Act of 1974 is amended by redesignating 
paragraphs (6) and (7) as paragraphs (7) and (8), respectively, and by 
inserting after paragraph (5) the following new paragraph:
            ``(6) the receipts, outlays, and surplus or deficit in the 
        Federal Old-Age and Survivors Insurance Trust Fund and the 
        Federal Disability Insurance Trust Fund, combined, established 
        by title II of the Social Security Act;''.
    (c) Super Majority Requirement.--(1) Section 904(c)(1) of the 
Congressional Budget Act of 1974 is amended by inserting ``312(g),'' 
after ``310(d)(2),''.
    (2) Section 904(d)(2) of the Congressional Budget Act of 1974 is 
amended by inserting ``312(g),'' after ``310(d)(2),''.

SEC. 3. REMOVING SOCIAL SECURITY 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 
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 old-age, survivors, and disability 
insurance program under title II of the Social Security Act (including 
the Federal Old-Age and Survivors Insurance Trust Fund and the Federal 
Disability Insurance Trust Fund) and the related provisions of the 
Internal Revenue Code of 1986.
    (b) Separate Social Security Budget Documents.--The excluded 
outlays and receipts of the old-age, survivors, and disability 
insurance program under title II of the Social Security Act shall be 
submitted in separate Social Security budget documents.

SEC. 4. ESTABLISHMENT OF DEBT REDUCTION LOCKBOX.

    (a) Establishment of Debt Reduction Lockbox.--(1) Chapter 11 of 
title 31, United States Code, is amended by adding at the end the 
following new section:
``Sec. 1120. Debt reduction lockbox
    ``(a) There is established within the Treasury a separate account 
to be known as the `Debt Reduction Lockbox', which shall be used to 
retire publicly held debt obligations of the United States Government.
    ``(b) Out of any money in the Treasury not otherwise appropriated, 
there are appropriated to the Debt Reduction Lockbox the following 
amounts:
            ``(1) For fiscal year 2000, $7,000,000,000.
            ``(2) For fiscal year 2001, $19,000,000,000.
            ``(3) For fiscal year 2002, $41,000,000,000.
            ``(4) For fiscal year 2003, $37,500,000,000.
            ``(5) For fiscal year 2004, $42,500,000,000.
            ``(6) For fiscal year 2005, $46,000,000,000.
            ``(7) For fiscal year 2006, $64,500,000,000.
            ``(8) For fiscal year 2007, $73,000,000,000.
            ``(9) For fiscal year 2008, $78,500,000,000.
            ``(10) For fiscal year 2009, $89,000,000,000.
    ``(c) The Secretary of the Treasury shall use all funds in the Debt 
Retirement Account to purchase publicly held debt obligations of the 
United States or to redeem maturing publicly held debt obligations when 
they become due. For such purpose, such obligations may be acquired 
only by purchase of outstanding obligations at the market price.
    ``(d)(1) Before the submission of the President's budget under 
section 1105(a) for each of the fiscal years 2001 through 2004, the 
amount in subsection (b) for each fiscal year through 2004 shall be 
adjusted by an amount equal to the change in the budget surplus for 
that fiscal year as a result of economic and technical changes 
determined by the Office of Management and Budget pursuant to paragraph 
(2). In no event shall any such adjustment be made that would cause the 
Deficit Reduction Lockbox to be less than zero.
    ``(2) At the end of each fiscal year, the Director of the Office of 
Management and Budget shall compute the projected budget surplus for 
the fiscal year using up-to-date economic and technical assumptions. 
Such director shall calculate the changes in the projected budget 
surplus as a result of differences in economic and technical 
assumptions contained in the report issued by the Director of the 
Congressional Budget Office in `The Economic and Budget Outlook: An 
Update', published on July 1, 1999. The Director of the Office of 
Management and Budget shall compute the difference (if any) in the 
budget surplus projections as a result of economic and technical 
changes from the economic and technical assumptions used in such 
report.
    ``(e) Notwithstanding any other provision of law, the amounts in 
the Debt Reduction Lockbox--
            ``(1) shall not be available for appropriation, obligation, 
        expenditure, or transfer, except as specified in subsection 
        (c); and
            ``(2) shall be exempt from reduction under any order issued 
        under part C of the Balanced Budget and Emergency Deficit 
        Control Act of 1985 and shall be excluded from and not taken 
        into account for purposes of any budget enforcement procedures 
        under that part.''.
    (2) Conforming Amendment.--The chapter analysis for chapter 11 of 
title 31, United States Code, is amended by adding after the item 
relating to section 1119 the following new item:

``1120. Debt Reduction Lockbox.''.
    (b) Listing of the Account Among Government Trust Funds.--Section 
1321(a) of title 31, United States Code, is amended by adding at the 
end the following new paragraph:
            ``(92) Debt Reduction Lockbox.''.
    (c) Requirement for the President To Report Annually on the Status 
of the Lockbox.--Section 1105(a) of title 31, United States Code, is 
amended by inserting after paragraph (30) the following new paragraph:
            ``(31) information about the Debt Reduction Lockbox, 
        including a separate statement of amounts in and Federal debt 
        redeemed by that Lockbox.''.

SEC. 5. PROTECTION OF DEBT REDUCTION LOCKBOX.

    (a) Points of Order To Protect Debt Reduction Lockbox.--Section 312 
of the Congressional Budget Act of 1974 (as amended by section 2) is 
further amended by adding at the end the following new subsection:
    ``(h) Points of Order To Protect Debt Reduction Lockbox.--
            ``(1) Concurrent resolutions on the budget.--It shall not 
        be in order in the House of Representatives or the Senate to 
        consider any concurrent resolution on the budget, or conference 
        report thereon or amendment thereto, that would set forth an 
        amount in the Debt Reduction Lockbox for any fiscal year that 
        is less than the amount set forth in section 1120 of title 31, 
        United States Code.
            ``(2) Subsequent legislation.--It shall not be in order in 
        the House of Representatives or the Senate to consider any 
        bill, joint resolution, amendment, motion, or conference report 
        if--
                    ``(A) the enactment of that bill or resolution as 
                reported;
                    ``(B) the adoption and enactment of that amendment; 
                or
                    ``(C) the enactment of that bill or resolution in 
                the form recommended in that conference report, would 
                cause an on-budget surplus for any fiscal year that is 
                less than the amount set forth in the most recent 
                concurrent resolution on the budget for the Debt 
                Reduction Lockbox.
            ``(3) Definition.--For purposes of this section, the term 
        `on-budget surplus', when applied to a fiscal year, means the 
        surplus in the budget as set forth in the most recently agreed 
        to concurrent resolution on the budget pursuant to section 
        301(a)(3) for that fiscal year.''.
    (b) Content of Concurrent Resolution on the Budget.--Section 301(a) 
of the Congressional Budget Act of 1974 (as amended by section 2) is 
further amended by redesignating paragraphs (7) and (8) as paragraphs 
(8) and (9), respectively, and by inserting after paragraph (6) the 
following new paragraph:
            ``(7) the amount of the Debt Reduction Lockbox;''.
    (c) Super Majority Requirement.--(1) Section 904(c)(1) of the 
Congressional Budget Act of 1974 is amended by inserting ``312(h),'' 
after ``312(g),''.
    (2) Section 904(d)(2) of the Congressional Budget Act of 1974 is 
amended by inserting ``312(h),'' after ``312(g),''.

SEC. 6. DEBT REDUCTION DIVIDEND FOR SOCIAL SECURITY.

    (a) Funds To Be Reserved for Social Security and Medicare Reform.--
Section 201 of the Social Security Act (42 U.S.C. 401) is amended by 
adding at the end the following new subsection:
    ``(n) Debt Reduction Dividend.--(1) The Secretary of the Treasury 
shall determine on or before October 1 of each fiscal year the debt 
reduction dividend for such fiscal year. The debt reduction dividend 
for a fiscal year is an amount equal to the excess of--
            ``(A) $229,000,000,000, over
            ``(B) total net interest expenditures by the Federal 
        Government during the preceding fiscal year.
    ``(2) There is hereby reserved for social security and medicare 
reform for each fiscal year beginning on or after October 1, 1999, 
amounts equal in the aggregate to 100 percent of the debt reduction 
dividend for such fiscal year. Of the amounts so reserved, 75 percent 
is for social security reform and 25 percent for medicare reform.''.
    (b) Paygo Exemption.--(1) Any transfer of funds to the Federal Old-
Age and Survivors Insurance Trust Fund and the Federal Disability 
Insurance Trust Fund or to the Federal Hospital Insurance Trust Fund 
equal to or less than the amount reserved in section 201(n) of the 
Social Security Act for each such fund that are included in social 
security reform legislation or medicare reform legislation, as 
applicable, shall not count as an outlay for purpose of the pay-as-you-
go requirement contained in section 252 of the Balanced Budget and 
Emergency Deficit Control Act of 1985 and shall be exempt from any 
sequestration under that Act.
    (2)(A) For purposes of paragraph (1), the term ``social security 
reform legislation'' refers to legislation that the chief actuary of 
the Social Security Administration certifies legislation extends the 
solvency of the Federal Old-Age and Survivors Insurance Trust Fund and 
the Federal Disability Insurance Trust Fund, taken together, for 75 
years.
    (B) For purposes of paragraph (1), the term ``medicare reform 
legislation'' refers to legislation that the chief actuary of the 
Health Care Financing Administration certifies extends the solvency of 
the Federal Hospital Insurance Trust Fund for 20 years.
                                 <all>