[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 1247 Introduced in Senate (IS)]







106th CONGRESS
  1st Session
                                S. 1247

 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 SENATE OF THE UNITED STATES

                             June 21, 1999

   Mr. Grams introduced the following bill; which was read twice and 
    referred to the Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
 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 Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Fair Cost of Living Adjustment for 
Seniors Act of 1999''.

SEC. 2. IMPROVEMENT OF CONSUMER PRICE INDEX FOR THE ELDERLY BY 
              CONGRESSIONALLY APPOINTED 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 referred 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 Representatives of whom--
                    (A) 11 shall be leading experts in the field of 
                economics and, to the extent feasible, familiar with 
                the issues related to the calculation of changes in the 
                cost of living; and
                    (B) 4 shall be representatives of individuals who 
                have attained age 65.
            (3) Terms and vacancies.--
                    (A) Terms.--A member of the Committee appointed 
                under paragraph (2) shall be appointed for the duration 
                of the Committee.
                    (B) Vacancies.--
                            (i) In general.--A vacancy on the Committee 
                        shall be filled in the same manner in which the 
                        original appointment was made and shall be 
                        subject to any conditions 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 Committee.
            (4) Initial meeting.--Not later than 30 days after the date 
        on which all members of the Committee 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 lesser 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 implementation plan.--
                    (A) In general.--The Committee shall conduct a 
                study--
                            (i) to improve the method for determining 
                        an index, to be known as the ``Consumer Price 
                        Index for the Elderly'';
                            (ii) to make recommendations addressing 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 measures 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 market 
                        basket of goods and services that reflect 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 Survey used 
                        by the Bureau of Labor Statistics to calculate 
                        the Experimental Consumer Price Index for the 
                        Elderly shall be re-designed 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 adequately 
                        reflect the availability of discount prices for 
                        such total retiree population.
                            (vi) Any other limitations otherwise found 
                        to affect the accuracy of the Consumer 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 subparagraph (B), not 
                later than 1 year after the initial 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 Committee shall not 
                submit a report under subparagraph (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 purposes of this section.
            (2) Information from federal agencies.--The Committee may 
        secure directly from any Federal department or agency such 
        information as the Committee considers necessary to carry out 
        this section, including the published and unpublished data and 
        analytical products of the Bureau of Labor Statistics. Upon 
        request of the Chairperson of the Committee, 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 property.
    (d) Personnel Matters.--
            (1) Compensation of members.--Each member 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 officers 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, including per diem in lieu of 
        subsistence, at rates authorized 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 terminate an executive 
                director and such other additional personnel as may be 
                necessary to enable the Committee to perform its 
                duties. The employment of an executive director shall 
                be subject 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 subchapter III of chapter 53 of title 5, 
                United States Code, relating to classification of 
                positions 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 intermittent services.--
        The Chairperson of the Committee may procure temporary and 
        intermittent services 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 Committee 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. 3. BUREAU OF LABOR STATISTICS PILOT PROGRAM TO TEST CONSUMER PRICE 
              INDEX FOR THE ELDERLY.

    (a) Pilot Program.--The Commissioner of the Bureau of Labor 
Statistics shall establish a pilot program to test the accuracy of an 
operational index to be recommended by the Consumer Price Index Review 
Committee under section 2 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 survivors insurance benefits under title II of the 
Social Security Act (42 U.S.C. 401 et seq.).
    (b) Duration of Pilot Program.--The pilot program shall commence 
with the first month that begins after the date of the submission of 
the report under section 2(b)(2) and shall continue through December 
2002.

SEC. 4. 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, 2000, and ends 
with the implementation of the Official Consumer Price Index for the 
Elderly under section 5(b), the Commissioner of Social Security, 
notwithstanding section 215(i) of the Social Security Act (42 U.S.C. 
415(i)) and any regulations promulgated thereunder, shall use the 
Consumer Price Index for All Urban Consumers to calculate cost-of-
living adjustments for benefits described in section 5(b)(1).

SEC. 5. APPLICATION OF CONSUMER PRICE INDEX FOR THE ELDERLY.

    (a) Implementation.--
            (1) Commissioner of bureau of labor statistics.--
                    (A) In general.--Subject to subparagraph (B), not 
                later than the fourth year that begins after the 
                Consumer Price Index Review Committee submits the 
                report required under section 2(b)(2), the Commissioner 
                of the Bureau of Labor Statistics shall prepare and 
                publish monthly the Official Consumer Price Index for 
                the Elderly based on the implementation plan and 
                recommendations included in that report.
                    (B) No implementation if congressional disapproval 
                of committee report.--Subparagraph (A) shall not apply 
                if a joint resolution is enacted, in accordance with 
                paragraph (2), disapproving the report submitted 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 Congress is not in session because of 
                an adjournment 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 Congress 
                        disapproves the report of the Consumer Price 
                        Index Review Committee regarding the 
                        implementation of the Consumer Price Index for 
                        the Elderly submitted on ________.'', 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 Committee 
                        regarding the implementation of the Consumer 
                        Price Index for the Elderly.''.
                    (B) Referral.--A resolution described in 
                subparagraph (A) that is introduced--
                            (i) in the House of Representatives, shall 
                        be referred to the Committee on Ways and Means; 
                        and
                            (ii) in the Senate, shall be referred to 
                        the Committee on Finance.
                    (C) Discharge.--If a committee to which a 
                resolution described in subparagraph (A) is referred 
                has not reported such resolution by the end of the 60-
                day period beginning on the date on which the Consumer 
                Price Index Review Committee submits the report 
                required under section 2(b)(2), such committee shall 
                be, at the end of such period, discharged from further 
                consideration of such resolution, and such resolution 
                shall be placed on the appropriate calendar of the 
                House involved.
                    (D) Consideration.--On or after the third day after 
                the date on which the committee to which a resolution 
                described in subparagraph (A) has reported, or has been 
                discharged from further consideration of such 
                resolution, such resolution shall be considered in the 
                same manner as a resolution is considered under 
                subsections (d), (e), and (f) of section 2908 of the 
                Defense Base Closure and Realignment Act of 1990 (10 
                U.S.C. 2687 note).
    (b) Use of Index.--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))) beginning on or after January 1 of the calendar year 
that begins after the Commissioner of the Bureau of Labor Statistics 
first prepares and publishes the Official Consumer Price Index for the 
Elderly in accordance with subsection (a)(1), the Commissioner of 
Social Security shall--
            (1) cease using the Consumer Price Index for All Urban 
        Consumers to calculate cost-of-living adjustments for old-age 
        and survivors insurance benefits payable under title II of the 
        Social Security Act (42 U.S.C. 401 et seq.) to any retiree or 
        individual who has attained age 62; and
            (2) notwithstanding section 215(i) of the Social Security 
        Act (42 U.S.C. 415(i)) and any regulations promulgated 
        thereunder, use the Official Consumer Price Index for the 
        Elderly to calculate such adjustments.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated to the Bureau of Labor Statistics such sums as are 
necessary to carry out the purposes of this section.
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