[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4505 Introduced in House (IH)]







106th CONGRESS
  2d Session
                                H. R. 4505

 To require the Secretary of the Treasury to retire publicly held debt 
               each fiscal year, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 19, 2000

   Mr. Bass introduced the following bill; which was referred to the 
 Committee on Ways and Means, and in addition to the Committees on the 
 Budget, 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 require the Secretary of the Treasury to retire publicly held debt 
               each fiscal year, 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 and Control Act of 
2000''.

SEC. 2. DEBT REDUCTION AND CONTROL SCHEDULE.

    (a) In General.--Subchapter I of chapter 31 of title 31 of the 
United States Code is amended by adding at the end the following new 
section:
``Sec. 3114. Debt reduction and control schedule
    ``(a) During fiscal year 2002 and each fiscal year thereafter, the 
Secretary of the Treasury shall retire publicly-held obligations issued 
under this chapter as set forth in subsection (b).
    ``(b)(1)(A) Except as provided by paragraph (3), during any fiscal 
year referred to in subsection (a), publicly-held obligations issued 
under this chapter shall be retired by an amount not less than $400 
billion (as adjusted under paragraph (2)) minus the estimated net 
interest on payments required to be paid during that fiscal year by the 
United States Government on such debt obligations.
    ``(B) The Secretary shall ensure that the retirement of such debt 
in any fiscal year produces a net reduction in the face amount of 
publicly-held obligations issued or guaranteed under this chapter by 
the amount of obligations retired under subsection (a).
    ``(2)(A) For fiscal year 2003 and each fiscal year thereafter, the 
Secretary of the Treasury shall increase the amount referred to in 
paragraph (1)(A) by the percent (adjusted to the nearest one-tenth of 1 
percent) by which the price index for the base quarter of that fiscal 
year exceeds the base index.
    ``(B) As used in this paragraph:
            ``(i) The term `price index' means the Consumer Price Index 
        (all items, United States city average) published by the Bureau 
        of Labor Statistics.
            ``(ii) The term `base quarter' means the calendar quarter 
        ending on December 31 of each year.
            ``(iii) The term `base index' means the price index for the 
        base quarter for the most recent adjustment under subparagraph 
        (A) (or, in the case of fiscal year 2003, the base quarter is 
        the calendar quarter ending on December 31, 2002).
    ``(C) For purposes of this paragraph, the price index for a 
calendar quarter is the arithmetical mean of the price index for the 3 
months comprising that quarter.
    ``(3)(A) Except as provided by subparagraph (C), if, by the close 
of any fiscal year referred to in subsection (a), the Secretary of the 
Treasury determines that the net reduction in the debt required by this 
section cannot be met because--
            ``(i) appropriations designated as emergency requirements 
        under section 251(b)(2)(A) or any provision of direct spending 
        or receipts legislation so designated under section 252(e) of 
        the Balanced Budget and Emergency Deficit Control Act of 1985 
        is enacted for the fiscal year in excess of offsets for such 
        appropriations for that year;
            ``(ii) mandatory spending during the fiscal year was in 
        excess of estimates of such spending set forth in the joint 
        explanatory statement of managers accompanying the concurrent 
        resolution on the budget for the fiscal year; or
            ``(iii) projected Federal revenues during the fiscal year 
        are less than the levels for such revenues as set forth in such 
        concurrent resolution on the budget;
the Secretary of the Treasury shall reduce the net reduction in the 
debt otherwise required by this section by the amount of the shortfall.
    ``(B) By October 16 of the calendar year in which such fiscal year 
ends, the Secretary of the Treasury shall submit a report to each House 
of Congress that sets forth--
            ``(i) the basis of the determination made for that fiscal 
        year pursuant to subparagraph (A);
            ``(ii) the amount of the shortfall by which the net 
        reduction in the debt otherwise required by this section cannot 
        be met; and
            ``(iii) feasible options for eliminating in the ensuing 
        fiscal year (or years) the amount of the shortfall in the net 
        reduction in the debt set forth in this report under clause 
        (ii) for the fiscal year immediately preceding such ensuing 
        fiscal year.
    ``(C) Notwithstanding any other provision of this section, if the 
Secretary of the Treasury determines for any fiscal year referred to in 
subsection (a) that the level of publicly-held debt obligations at the 
close of such fiscal year will be less than $300 billion, the Secretary 
is not required to make any further adjustments under this section.
    ``(c) No obligations retired under subsection (a) may be reissued.
    ``(d)(1) Notwithstanding any other provision of this section, this 
section shall not be effective for any fiscal year if--
            ``(A) a declaration of war is in effect; or
            ``(B) specifically waived by law because the United States 
        is engaged in military conflict that causes an imminent and 
        serious military threat to national security.
    ``(2) Notwithstanding any other provision of this section, this 
section shall not require obligations issued under this chapter to be 
retired for any fiscal year to the extent that Congress determines, by 
law, that such obligations are necessary to cover deficit spending 
required to meet outlays under the old-age, survivors, and disability 
insurance program under title II of the Social Security Act and the 
hospital insurance program under title XVIII of such Act as the result 
of a shortfall in payroll tax receipts.
    ``(e) For purposes of this section:
            ``(1) The term `publicly-held obligation' means any 
        obligation subject to the public debt limit established under 
        section 3101, except any obligation issued under this chapter 
        directly to a Federal fund.
            ``(2) The term `Federal fund' means any Federal trust fund 
        or Government account established pursuant to Federal law to 
        which the Secretary of the Treasury has issued or is expressly 
        authorized by law directly to issue obligations under this 
        chapter in respect of public money, money otherwise required to 
        be deposited in the Treasury, or amounts appropriated.''.
    (b) Conforming Amendment.--The chapter analysis of subchapter I of 
chapter 31 of title 31, United States Code, is amended by adding at the 
end the following new item:

``3114. Debt reduction and control schedule.''.

SEC. 3. CHANGE IN FUNCTIONAL CATEGORY 900.

    The Director of the Office of Management and Budget shall, in 
consultation with the Committees on the Budget of the House of 
Representatives and Senate and the Director of the Congressional Budget 
Office, change functional category 900 (net interest) to functional 
category 900 (net interest; debt reduction and control) to clearly 
display net interest and the net debt reduction required by section 
3114 of title 31, United States Code, for each applicable fiscal year.

SEC. 4. REPORTING REQUIREMENTS.

    (a) Reports Accompanying Budget Resolutions.--Section 301(e)(2) of 
the Congressional Budget Act of 1974 is amended by striking ``and'' at 
the end of subparagraph (E), by striking the period and inserting ``; 
and'' at the end of subparagraph (F), and by adding at the end the 
following new subparagraph:
                    ``(G) an estimate of the amount of debt obligations 
                required to be retired for the first fiscal year of the 
                resolution under section 3114 of title 31, United 
                States Code, indicating the amount of this required 
                debt retirement to be retired through on-budget direct 
                spending and the amount (if any) of this required debt 
                retirement expected to be retired through the projected 
                off-budget surplus for that fiscal year.''.
    (b) Joint Explanatory Statements Accompanying Conference Reports on 
Budget Resolutions.--Section 308 of the Congressional Budget Act of 
1974 is amended by adding at the end the following new subsection:
    ``(d) Additional Requirement for Joint Explanatory Statements.--The 
joint explanatory statement accompanying a conference report on a 
concurrent resolution on the budget shall include an estimate of the 
amount of debt obligations required to be retired for the first fiscal 
year of the resolution under section 3114 of title 31, United States 
Code, indicating the amount of this required debt retirement to be 
retired through on-budget direct spending and the amount (if any) of 
this required debt retirement expected to be retired through the 
projected off-budget surplus for that fiscal year.''.
    (c) CBO Reports to Budget Committees.--Section 202(e)(1) of the 
Congressional Budget Act of 1974 is amended by adding at the end the 
following new sentence: ``Such report shall also include an estimate of 
the amount of debt obligations required to be retired for such fiscal 
year under section 3114 of title 31, United States Code.''.
    (d) Presidents' Budget Submissions to Congress.--Section 1105(a) of 
title 31, United States Code, is amended by adding at the end the 
following new paragraph:
            ``(33) an estimate of the amount of debt obligations 
        required to be retired under section 3114 for the fiscal year 
        for which the budget is submitted, indicating the amount of 
        this required debt retirement to be retired through on-budget 
        direct spending and the amount (if any) of this required debt 
        retirement expected to be retired through the projected off-
        budget surplus for that fiscal year.''.
    (e) Additional Reporting Requirements.--(1) Within 3 months after 
the date of enactment of this Act, the Secretary of the Treasury shall 
report to Congress a plan to change the composition of debt issued 
under chapter 31 of title 31, United States Code, in order to 
accommodate most efficiently the debt reduction and control schedule 
set forth in section 3114 of such title.
    (2) Within 6 months after the date of enactment of this Act, the 
Comptroller General of the United States shall report to Congress on 
the efficacy of such plan and possible alternatives to such plan.
    (3) Within 6 months after the date of enactment of this Act, the 
Secretary of the Treasury, the chairman of the Federal Reserve Board, 
and the Comptroller General shall report to Congress on the fiscal, 
monetary, and other budget and economic consequences and considerations 
resulting from this Act and the amendments made by it that should be 
taken into account by Congress that might require further legislative 
action.
    (4) Within 24 months after the date of enactment of this Act, the 
Secretary of the Treasury, the chairman of the Federal Reserve Board, 
and the Comptroller General shall report to Congress with 
recommendations on the optimal long-term size and composition of 
Federal publicly-held debt and proposals for changes in current 
programs and practices necessary to accommodate such a level of debt, 
including any changes to or alternatives for the savings bond program 
and Federal bonds issued in connection with State and local bonds.
    (5) Within 24 months after the date of enactment of this Act and 
annually thereafter, the entities listed in paragraph (4) shall report 
to Congress any updates or revisions to any reports they have made 
under this subsection.

SEC. 5. CONGRESSIONAL ENFORCEMENT.

    (a) In General.--Section 312 of the Congressional Budget Act of 
1974 is amended by adding at the end the following new subsection:
    ``(g) Point of Order To Enforce Debt Reduction and Control 
Schedule.--It shall not be in order in the House of Representatives or 
in the Senate to consider any concurrent resolution on the budget, or 
any amendment thereto or conference report thereon, that would result 
in a projected deficit for the first fiscal year of the resolution.''.
    (b) Conforming Amendments.--(1) Section 904(c)(2) of the 
Congressional Budget Act of 1974 is amended by striking ``and 312(c)'' 
and inserting ``312(c), and 312(g)''.
    (2) Section 904(d)(3) of the Congressional Budget Act of 1974 is 
amended by striking ``and 312(c)'' and inserting ``312(c), and 
312(g)''.

SEC. 6. EXEMPTIONS FROM THE BALANCED BUDGET AND EMERGENCY DEFICIT 
              CONTROL ACT OF 1985.

    (a) Paygo Exemption.--Upon the enactment of this Act, the Director 
of the Office of Management and Budget shall not make any estimates of 
changes in direct spending outlays under section 252(d) of the Balanced 
Budget and Emergency Deficit Control Act of 1985 resulting from the 
enactment of this Act.
    (b) Exemption from Sequestration.--Section 255(c) of the Balanced 
Budget and Emergency Deficit Control Act of 1985 is amended--
            (1) by inserting ``; Debt Retirement'' after ``Net 
        Interest'' in its side heading;
            (2) by inserting ``(1)'' before ``No''; and
            (3) by adding at the end the following new paragraph:
    ``(2) No reduction of payments to retire the public debt under 
section 3114 of title 31, United States Code, shall be made under any 
order made under this part.''

SEC. 7. EFFECTIVE DATE.

    The amendments made by this Act shall apply to fiscal year 2002 and 
each fiscal year thereafter.
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