[Congressional Record (Bound Edition), Volume 145 (1999), Part 5]
[Senate]
[Pages 7405-7419]
[From the U.S. Government Publishing Office, www.gpo.gov]




                 AMENDMENTS SUBMITTED ON APRIL 23, 1999

                                 ______
                                 

           BUDGET PROCESS EMERGENCIES DESIGNATION LEGISLATION

                                 ______
                                 

                      LOTT AMENDMENTS NOS. 256-264

  (Ordered to lie on the table.)
  Mr. LOTT submitted nine amendments intended to be proposed by him to 
the bill (S. 557) a bill to provide guidance for the designation of 
emergencies as a part of the budget process; as follows:

                           Amendment No. 256

       At the end of the instructions add the following:

     with an amendment as follows:
       At the end of the bill add the following:

 TITLE II--SOCIAL SECURITY SURPLUS PRESERVATION AND DEBT REDUCTION ACT

     SEC. 201. SHORT TITLE.

       This title may be cited as the ``Social Security Surplus 
     Preservation and Debt Reduction Act''.

     SEC. 202. FINDINGS.

       Congress finds that--
       (1) the $69,246,000,000 unified budget surplus achieved in 
     fiscal year 1998 was entirely due to surpluses generated by 
     the social security trust funds and the cumulative unified 
     budget surpluses projected for subsequent fiscal years are 
     primarily due to surpluses generated by the social security 
     trust funds;
       (2) Congress and the President should balance the budget 
     excluding the surpluses generated by the social security 
     trust funds;
       (3) according to the Congressional Budget Office, balancing 
     the budget excluding the surpluses generated by the social 
     security trust funds will reduce the debt held by the public 
     by a total of $1,723,000,000,000 by the end of fiscal year 
     2009; and
       (4) social security surpluses should be used for social 
     security reform or to reduce the debt held by the public and 
     should not be spent on other programs.

     SEC. 203. PROTECTION OF THE SOCIAL SECURITY TRUST FUNDS.

       (a) Protection by Congress.--
       (1) Reaffirmation of support.--Congress reaffirms its 
     support for the provisions of section 13301 of the Budget 
     Enforcement Act of 1990 that provides that the receipts and 
     disbursements of the social security trust funds shall not be 
     counted for the purposes of the budget submitted by the 
     President, the congressional budget, or the Balanced Budget 
     and Emergency Deficit Control Act of 1985.
       (2) Protection of social security benefits.--If there are 
     sufficient balances in the Federal Old-Age and Survivors 
     Insurance Trust Fund and the Federal Disability Insurance 
     Trust Fund, the Secretary of Treasury shall give priority to 
     the payment of social security benefits required to be paid 
     by law.
       (b) Points of Order.--Section 301 of the Congressional 
     Budget Act of 1974 is amended by adding at the end the 
     following:
       ``(j) Social Security Point of Order.--It shall not be in 
     order in the Senate to consider a concurrent resolution on 
     the budget, an amendment thereto, or a conference report 
     thereon that violates section 13301 of the Budget Enforcement 
     Act of 1990.
       ``(k) Debt Held by the Public Point of Order.--It shall not 
     be in order in the Senate to consider any bill, joint 
     resolution, amendment, motion, or conference report that 
     would--
       ``(1) increase the limit on the debt held by the public in 
     section 253A(a) of the Balanced Budget and Emergency Deficit 
     Control Act of 1985; or
       ``(2) provide additional borrowing authority that would 
     result in the limit on the debt held by the public in section 
     253A(a) of the Balanced Budget and Emergency Deficit Control 
     Act of 1985 being exceeded.
       ``(l) Social Security Surplus Protection Point of Order.--
       ``(1) In general.--It shall not be in order in the Senate 
     to consider a concurrent resolution on the budget, an 
     amendment thereto, or a conference report thereon that sets 
     forth a deficit in any fiscal year.
       ``(2) Exception.--Paragraph (1) shall not apply if--
       ``(A) the limit on the debt held by the public in section 
     253A(a) of the Balanced Budget and Emergency Deficit Control 
     Act of 1985 is suspended; or
       ``(B) the deficit for a fiscal year results solely from the 
     enactment of--
       ``(i) social security reform legislation, as defined in 
     section 253A(e)(2) of the Balanced Budget and Emergency 
     Deficit Control Act of 1985; or
       ``(ii) provisions of legislation that are designated as an 
     emergency requirement pursuant to section 251(b)(2)(A) or 
     252(e) of the Balanced Budget and Emergency Deficit Control 
     Act of 1985.''.
       (c) Supermajority Waiver and Appeal.--Subsections (c)(1) 
     and (d)(2) of section 904 of the Congressional Budget Act of 
     1974 are amended by striking ``305(b)(2),'' and inserting 
     ``301(k), 301(l), 305(b)(2), 318,''.
       (d) Conforming Amendment.--Section 318 of the Congressional 
     Budget Act of 1974, as added by this Act, is amended by 
     adding at the end the following:
       ``(c) Exception for Defense Spending.--Subsection (b) shall 
     not apply against an emergency designation for a provision 
     making discretionary appropriations in the defense 
     category.''.

     SEC. 204. DEDICATION OF SOCIAL SECURITY SURPLUSES TO 
                   REDUCTION IN THE DEBT HELD BY THE PUBLIC.

       (a) Amendments to the Congressional Budget Act of 1974.--
     The Congressional Budget Act of 1974 is amended--
       (1) in section 3, by adding at the end the following:
       ``(11)(A) The term `debt held by the public' means the 
     outstanding face amount of all debt obligations issued by the 
     United States Government that are held by outside investors, 
     including individuals, corporations, State or local 
     governments, foreign governments, and the Federal Reserve 
     System.
       ``(B) For the purpose of this paragraph, the term `face 
     amount', for any month, of any debt 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.
       ``(12) The term `social security surplus' means the amount 
     for a fiscal year that receipts exceed outlays of the Federal 
     Old-Age and Survivors Insurance Trust Fund and the Federal 
     Disability Insurance Trust Fund.'';
       (2) in section 301(a) by--
       (A) redesignating paragraphs (6) and (7) as paragraphs (7) 
     and (8), respectfully; and
       (B) inserting after paragraph (5) the following:
       ``(6) the debt held by the public; and''; and
       (3) in section 310(a) by--
       (A) striking ``or'' at the end of paragraph (3);
       (B) by redesignating paragraph (4) as paragraph (5); and
       (C) inserting the following new paragraph;
       ``(4) specify the amounts by which the statutory limit on 
     the debt held by the public is to be changed and direct the 
     committee having jurisdiction to recommend such change; or''.
       (b) Amendments to the Balanced Budget and Emergency Deficit 
     Control Act of 1985.--The Balanced Budget and Emergency 
     Deficit Control Act of 1985 is amended--
       (1) in section 250, by striking subsection (b) and 
     inserting the following:

[[Page 7406]]

       ``(b) General Statement of Purpose.--This part provides for 
     the enforcement of--
       ``(1) a balanced budget excluding the receipts and 
     disbursements of the social security trust funds; and
       ``(2) a limit on the debt held by the public to ensure that 
     social security surpluses are used for social security reform 
     or to reduce debt held by the public and are not spent on 
     other programs.'';
       (2) in section 250(c)(1), by inserting `` ` debt held by 
     the public', `social security surplus' '' after ``outlays', 
     ''; and
       (3) by inserting after section 253 the following:

     ``SEC. 253A. DEBT HELD BY THE PUBLIC LIMIT.

       ``(a) Limit.--The debt held by the public shall not 
     exceed--
       ``(1) for the period beginning May 1, 2000 through April 
     30, 2001, $3,628,000,000,000;
       ``(2) for the period beginning May 1, 2001 through April 
     30, 2002, $3,512,000,000,000;
       ``(3) for the period beginning May 1, 2002 through April 
     30, 2004, $3,383,000,000,000;
       ``(4) for the period beginning May 1, 2004 through April 
     30, 2006, $3,100,000,000,000;
       ``(5) for the period beginning May 1, 2006 through April 
     30, 2008, $2,775,000,000,000; and,
       ``(6) for the period beginning May 1, 2008 through April 
     30, 2010, $2,404,000,000,000.
       ``(b) Adjustments for Actual Social Security Surplus 
     Levels.--
       ``(1) Estimated levels.--The estimated level of social 
     security surpluses for the purposes of this section is--
       ``(A) for fiscal year 1999, $127,000,000,000;
       ``(B) for fiscal year 2000, $137,000,000,000;
       ``(C) for fiscal year 2001, $145,000,000,000;
       ``(D) for fiscal year 2002, $153,000,000,000;
       ``(E) for fiscal year 2003, $162,000,000,000;
       ``(F) for fiscal year 2004, $171,000,000,000;
       ``(G) for fiscal year 2005, $184,000,000,000;
       ``(H) for fiscal year 2006, $193,000,000,000;
       ``(I) for fiscal year 2007, $204,000,000,000;
       ``(J) for fiscal year 2008, $212,000,000,000; and
       ``(K) for fiscal year 2009, $218,000,000,000.
       ``(2) Adjustment to the limit for actual social security 
     surpluses.--After October 1 and no later than December 31 of 
     each year, the Secretary shall make the following 
     calculations and adjustments:
       ``(A) Calculation.--After the Secretary determines the 
     actual level for the social security surplus for the current 
     year, the Secretary shall take the estimated level of the 
     social security surplus for that year specified in paragraph 
     (1) and subtract that actual level.
       ``(B) Adjustment.--
       ``(i) 2000 through 2004.--With respect to the periods 
     described in subsections (a)(1), (a)(2), and (a)(3), the 
     Secretary shall add the amount calculated under subparagraph 
     (A) to--

       ``(I) the limit set forth in subsection (a) for the period 
     of years that begins on May 1st of the following calendar 
     year; and
       ``(II) each subsequent limit.

       ``(ii) 2004 through 2010.--With respect to the periods 
     described in subsections (a)(4), (a)(5), and (a)(6), the 
     Secretary shall add the amount calculated under subparagraph 
     (A) to--

       ``(I) the limit set forth in subsection (a) for the period 
     of years that includes May 1st of the following calendar 
     year; and
       ``(II) each subsequent limit.

       ``(c) Adjustment to the Limit for Emergencies.--
       ``(1) Estimate of legislation.--
       ``(A) Calculation.--If legislation is enacted into law that 
     contains a provision that is designated as an emergency 
     requirement pursuant to section 251(b)(2)(A) or 252(e), OMB 
     shall estimate the amount the debt held by the public will 
     change as a result of the provision's effect on the level of 
     total outlays and receipts excluding the impact on outlays 
     and receipts of the Federal Old-Age and Survivors Insurance 
     Trust Fund and the Federal Disability Insurance Trust Fund.
       ``(B) Baseline levels.--OMB shall calculate the changes in 
     subparagraph (A) relative to baseline levels for each fiscal 
     year through fiscal year 2010 using current estimates.
       ``(C) Estimate.--OMB shall include the estimate required by 
     this paragraph in the report required under section 251(a)(7) 
     or section 252(d), as the case may be.
       ``(2) Adjustment.--After January 1 and no later than May 1 
     of each calendar year beginning with calendar year 2000--
       ``(A) with respect to the periods described in subsections 
     (a)(1), (a)(2), and (a)(3), the Secretary shall add the 
     amounts calculated under paragraph (1)(A) for the current 
     year included in the report referenced in paragraph (1)(C) 
     to--
       ``(i) the limit set forth in subsection (a) for the period 
     of years that begins on May 1 of that calendar year; and
       ``(ii) each subsequent limit; and
       ``(B) with respect to the periods described in subsections 
     (a)(4), (a)(5), and (a)(6), the Secretary shall add the 
     amounts calculated under paragraph (1)(A) for the current 
     year included in the report referenced in paragraph (1)(C) 
     to--
       ``(i) the limit set forth in subsection (a) for the period 
     of years that includes May 1 of that calendar year; and
       ``(ii) each subsequent limit.
       ``(3) Exception.--The Secretary shall not make the 
     adjustments pursuant to this section if the adjustments for 
     the current year are less than the on-budget surplus for the 
     year before the current year.
       ``(d) Adjustment to the Limit for Low Economic Growth and 
     War.--
       ``(1) Suspension of statutory limit on debt held by the 
     public.--
       ``(A) Low economic growth.--If the most recent of the 
     Department of Commerce's advance, preliminary, or final 
     reports of actual real economic growth indicate that the rate 
     of real economic growth for each of the most recently 
     reported quarter and the immediately preceding quarter is 
     less than 1 percent, the limit on the debt held by the public 
     established in this section is suspended.
       ``(B) War.--If a declaration of war is in effect, the limit 
     on the debt held by the public established in this section is 
     suspended.
       ``(2) Restoration of statutory limit on debt held by the 
     public.--
       ``(A) Restoration of limit.--The statutory limit on debt 
     held by the public shall be restored on May 1 following the 
     quarter in which the level of real Gross Domestic Product in 
     the final report from the Department of Commerce is equal to 
     or is higher than the level of real Gross Domestic Product in 
     the quarter preceding the first two quarters that caused the 
     suspension of the pursuant to paragraph (1).
       ``(B) Adjustment.--
       ``(i) Calculation.--The Secretary shall take level of the 
     debt held by the public on October 1 of the year preceding 
     the date referenced in subparagraph (A) and subtract the 
     limit in subsection (a) for the period of years that includes 
     the date referenced in subparagraph (A).
       ``(ii) Adjustment.--The Secretary shall add the amount 
     calculated under clause (i) to--

       ``(I) the limit in subsection (a) for the period of fiscal 
     years that includes the date referenced in subparagraph (A); 
     and
       ``(II) each subsequent limit.

       ``(e) Adjustment to the Limit for Social Security Reform 
     Provisions that Affect On-Budget Levels.--
       ``(1) Estimate of legislation.--
       ``(A) Calculation.--If social security reform legislation 
     is enacted, OMB shall estimate the amount the debt held by 
     the public will change as a result of the legislation's 
     effect on the level of total outlays and receipts excluding 
     the impact on outlays and receipts of the Federal Old-Age and 
     Survivors Insurance Trust Fund and the Federal Disability 
     Insurance Trust Fund.
       ``(B) Baseline levels.--OMB shall calculate the changes in 
     subparagraph (A) relative to baseline levels for each fiscal 
     year through fiscal year 2010 using current estimates.
       ``(C) Estimate.--OMB shall include the estimate required by 
     this paragraph in the report required under section 252(d) 
     for social security reform legislation.
       ``(2) Adjustment to limit on the debt held by the public.--
     If social security reform legislation is enacted, the 
     Secretary shall adjust the limit on the debt held by the 
     public for each period of fiscal years by the amounts 
     determined under paragraph (1)(A) for the relevant fiscal 
     years included in the report referenced in paragraph (1)(C).
       ``(e) Definitions.--In this section:
       ``(1) Secretary.--The term `Secretary' means the Secretary 
     of the Treasury.
       ``(2) Social security reform legislation.--The term `social 
     security reform legislation' means a bill or joint resolution 
     that is enacted into law and includes a provision stating the 
     following:
       `` `(  ) Social security reform legislation.--For the 
     purposes of the Social Security Surplus Preservation and Debt 
     Reduction Act, this Act constitutes social security reform 
     legislation.'

     This paragraph shall apply only to the first bill or joint 
     resolution enacted into law as described in this paragraph.
       ``(3) Social security reform provisions.--The term `social 
     security reform provisions' means a provision or provisions 
     identified in social security reform legislation stating the 
     following:
       `` `(  ) Social security reform provisions.--For the 
     purposes of the Social Security Surplus Preservation and Debt 
     Reduction Act, ____ of this Act constitutes or constitute 
     social security reform provisions.', with a list of specific 
     provisions in that bill or joint resolution specified in the 
     blank space.''.

     SEC. 205. PRESIDENT'S BUDGET.

       Section 1105(f) of title 31, United States Code, is amended 
     by striking ``in a manner consistent'' and inserting ``in 
     compliance''.

     SEC. 206. SUNSET.

       This title and the amendments made by this title shall 
     expire on April 30, 2010.
                                  ____


                           Amendment No. 257

       At the end of the instructions add the following:

     with an amendment as follows:
       At the end of the bill add the following:
 TITLE II--SOCIAL SECURITY SURPLUS PRESERVATION AND DEBT REDUCTION ACT

     SEC. 201. SHORT TITLE.

       This title may be cited as the ``Social Security Surplus 
     Preservation and Debt Reduction Act''.

[[Page 7407]]



     SEC. 202. FINDINGS.

       Congress finds that--
       (1) the $69,246,000,000 unified budget surplus achieved in 
     fiscal year 1998 was entirely due to surpluses generated by 
     the social security trust funds and the cumulative unified 
     budget surpluses projected for subsequent fiscal years are 
     primarily due to surpluses generated by the social security 
     trust funds;
       (2) Congress and the President should balance the budget 
     excluding the surpluses generated by the social security 
     trust funds;
       (3) according to the Congressional Budget Office, balancing 
     the budget excluding the surpluses generated by the social 
     security trust funds will reduce the debt held by the public 
     by a total of $1,723,000,000,000 by the end of fiscal year 
     2009; and
       (4) social security surpluses should be used for social 
     security reform or to reduce the debt held by the public and 
     should not be spent on other programs.

     SEC. 203. PROTECTION OF THE SOCIAL SECURITY TRUST FUNDS.

       (a) Protection by Congress.--
       (1) Reaffirmation of support.--Congress reaffirms its 
     support for the provisions of section 13301 of the Budget 
     Enforcement Act of 1990 that provides that the receipts and 
     disbursements of the social security trust funds shall not be 
     counted for the purposes of the budget submitted by the 
     President, the congressional budget, or the Balanced Budget 
     and Emergency Deficit Control Act of 1985.
       (2) Protection of social security benefits.--If there are 
     sufficient balances in the Federal Old-Age and Survivors 
     Insurance Trust Fund and the Federal Disability Insurance 
     Trust Fund, the Secretary of Treasury shall give priority to 
     the payment of social security benefits required to be paid 
     by law.
       (b) Points of Order.--Section 301 of the Congressional 
     Budget Act of 1974 is amended by adding at the end the 
     following:
       ``(j) Social Security Point of Order.--It shall not be in 
     order in the Senate to consider a concurrent resolution on 
     the budget, an amendment thereto, or a conference report 
     thereon that violates section 13301 of the Budget Enforcement 
     Act of 1990.
       ``(k) Debt Held by the Public Point of Order.--It shall not 
     be in order in the Senate to consider any bill, joint 
     resolution, amendment, motion, or conference report that 
     would--
       ``(1) increase the limit on the debt held by the public in 
     section 253A(a) of the Balanced Budget and Emergency Deficit 
     Control Act of 1985; or
       ``(2) provide additional borrowing authority that would 
     result in the limit on the debt held by the public in section 
     253A(a) of the Balanced Budget and Emergency Deficit Control 
     Act of 1985 being exceeded.
       ``(l) Social Security Surplus Protection Point of Order.--
       ``(1) In general.--It shall not be in order in the Senate 
     to consider a concurrent resolution on the budget, an 
     amendment thereto, or a conference report thereon that sets 
     forth a deficit in any fiscal year.
       ``(2) Exception.--Paragraph (1) shall not apply if--
       ``(A) the limit on the debt held by the public in section 
     253A(a) of the Balanced Budget and Emergency Deficit Control 
     Act of 1985 is suspended; or
       ``(B) the deficit for a fiscal year results solely from the 
     enactment of--
       ``(i) social security reform legislation, as defined in 
     section 253A(e)(2) of the Balanced Budget and Emergency 
     Deficit Control Act of 1985; or
       ``(ii) provisions of legislation that are designated as an 
     emergency requirement pursuant to section 251(b)(2)(A) or 
     252(e) of the Balanced Budget and Emergency Deficit Control 
     Act of 1985.''.
       (c) Supermajority Waiver and Appeal.--Subsections (c)(1) 
     and (d)(2) of section 904 of the Congressional Budget Act of 
     1974 are amended by striking ``305(b)(2),'' and inserting 
     ``301(k), 301(l), 305(b)(2), 318,''.
       (d) Conforming Amendment.--Section 318 of the Congressional 
     Budget Act of 1974, as added by this Act, is amended by 
     adding at the end the following:
       ``(c) Exception for Defense Spending.--Subsection (b) shall 
     not apply against an emergency designation for a provision 
     making discretionary appropriations in the defense 
     category.''.

     SEC. 204. DEDICATION OF SOCIAL SECURITY SURPLUSES TO 
                   REDUCTION IN THE DEBT HELD BY THE PUBLIC.

       (a) Amendments to the Congressional Budget Act of 1974.--
     The Congressional Budget Act of 1974 is amended--
       (1) in section 3, by adding at the end the following:
       ``(11)(A) The term `debt held by the public' means the 
     outstanding face amount of all debt obligations issued by the 
     United States Government that are held by outside investors, 
     including individuals, corporations, State or local 
     governments, foreign governments, and the Federal Reserve 
     System.
       ``(B) For the purpose of this paragraph, the term `face 
     amount', for any month, of any debt 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.
       ``(12) The term `social security surplus' means the amount 
     for a fiscal year that receipts exceed outlays of the Federal 
     Old-Age and Survivors Insurance Trust Fund and the Federal 
     Disability Insurance Trust Fund.'';
       (2) in section 301(a) by--
       (A) redesignating paragraphs (6) and (7) as paragraphs (7) 
     and (8), respectfully; and
       (B) inserting after paragraph (5) the following:
       ``(6) the debt held by the public; and''; and
       (3) in section 310(a) by--
       (A) striking ``or'' at the end of paragraph (3);
       (B) by redesignating paragraph (4) as paragraph (5); and
       (C) inserting the following new paragraph;
       ``(4) specify the amounts by which the statutory limit on 
     the debt held by the public is to be changed and direct the 
     committee having jurisdiction to recommend such change; or''.
       (b) Amendments to the Balanced Budget and Emergency Deficit 
     Control Act of 1985.--The Balanced Budget and Emergency 
     Deficit Control Act of 1985 is amended--
       (1) in section 250, by striking subsection (b) and 
     inserting the following:
       ``(b) General Statement of Purpose.--This part provides for 
     the enforcement of--
       ``(1) a balanced budget excluding the receipts and 
     disbursements of the social security trust funds; and
       ``(2) a limit on the debt held by the public to ensure that 
     social security surpluses are used for social security reform 
     or to reduce debt held by the public and are not spent on 
     other programs.'';
       (2) in section 250(c)(1), by inserting `` ` debt held by 
     the public', `social security surplus' '' after ``outlays', 
     ''; and
       (3) by inserting after section 253 the following:

     ``SEC. 253A. DEBT HELD BY THE PUBLIC LIMIT.

       ``(a) Limit.--The debt held by the public shall not 
     exceed--
       ``(1) for the period beginning May 1, 2000 through April 
     30, 2001, $3,628,000,000,000;
       ``(2) for the period beginning May 1, 2001 through April 
     30, 2002, $3,512,000,000,000;
       ``(3) for the period beginning May 1, 2002 through April 
     30, 2004, $3,383,000,000,000;
       ``(4) for the period beginning May 1, 2004 through April 
     30, 2006, $3,100,000,000,000;
       ``(5) for the period beginning May 1, 2006 through April 
     30, 2008, $2,775,000,000,000; and,
       ``(6) for the period beginning May 1, 2008 through April 
     30, 2010, $2,404,000,000,000.
       ``(b) Adjustments for Actual Social Security Surplus 
     Levels.--
       ``(1) Estimated levels.--The estimated level of social 
     security surpluses for the purposes of this section is--
       ``(A) for fiscal year 1999, $127,000,000,000;
       ``(B) for fiscal year 2000, $137,000,000,000;
       ``(C) for fiscal year 2001, $145,000,000,000;
       ``(D) for fiscal year 2002, $153,000,000,000;
       ``(E) for fiscal year 2003, $162,000,000,000;
       ``(F) for fiscal year 2004, $171,000,000,000;
       ``(G) for fiscal year 2005, $184,000,000,000;
       ``(H) for fiscal year 2006, $193,000,000,000;
       ``(I) for fiscal year 2007, $204,000,000,000;
       ``(J) for fiscal year 2008, $212,000,000,000; and
       ``(K) for fiscal year 2009, $218,000,000,000.
       ``(2) Adjustment to the limit for actual social security 
     surpluses.--After October 1 and no later than December 31 of 
     each year, the Secretary shall make the following 
     calculations and adjustments:
       ``(A) Calculation.--After the Secretary determines the 
     actual level for the social security surplus for the current 
     year, the Secretary shall take the estimated level of the 
     social security surplus for that year specified in paragraph 
     (1) and subtract that actual level.
       ``(B) Adjustment.--
       ``(i) 2000 through 2004.--With respect to the periods 
     described in subsections (a)(1), (a)(2), and (a)(3), the 
     Secretary shall add the amount calculated under subparagraph 
     (A) to--

       ``(I) the limit set forth in subsection (a) for the period 
     of years that begins on May 1st of the following calendar 
     year; and
       ``(II) each subsequent limit.

       ``(ii) 2004 through 2010.--With respect to the periods 
     described in subsections (a)(4), (a)(5), and (a)(6), the 
     Secretary shall add the amount calculated under subparagraph 
     (A) to--

       ``(I) the limit set forth in subsection (a) for the period 
     of years that includes May 1st of the following calendar 
     year; and
       ``(II) each subsequent limit.

       ``(c) Adjustment to the Limit for Emergencies.--
       ``(1) Estimate of legislation.--
       ``(A) Calculation.--If legislation is enacted into law that 
     contains a provision that is designated as an emergency 
     requirement pursuant to section 251(b)(2)(A) or 252(e), OMB 
     shall estimate the amount the debt held by the public will 
     change as a result of the provision's effect on the level of 
     total outlays and receipts excluding the impact on outlays 
     and receipts of the Federal Old-Age and Survivors Insurance 
     Trust Fund and the Federal Disability Insurance Trust Fund.
       ``(B) Baseline levels.--OMB shall calculate the changes in 
     subparagraph (A) relative to baseline levels for each fiscal 
     year

[[Page 7408]]

     through fiscal year 2010 using current estimates.
       ``(C) Estimate.--OMB shall include the estimate required by 
     this paragraph in the report required under section 251(a)(7) 
     or section 252(d), as the case may be.
       ``(2) Adjustment.--After January 1 and no later than May 1 
     of each calendar year beginning with calendar year 2000--
       ``(A) with respect to the periods described in subsections 
     (a)(1), (a)(2), and (a)(3), the Secretary shall add the 
     amounts calculated under paragraph (1)(A) for the current 
     year included in the report referenced in paragraph (1)(C) 
     to--
       ``(i) the limit set forth in subsection (a) for the period 
     of years that begins on May 1 of that calendar year; and
       ``(ii) each subsequent limit; and
       ``(B) with respect to the periods described in subsections 
     (a)(4), (a)(5), and (a)(6), the Secretary shall add the 
     amounts calculated under paragraph (1)(A) for the current 
     year included in the report referenced in paragraph (1)(C) 
     to--
       ``(i) the limit set forth in subsection (a) for the period 
     of years that includes May 1 of that calendar year; and
       ``(ii) each subsequent limit.
       ``(3) Exception.--The Secretary shall not make the 
     adjustments pursuant to this section if the adjustments for 
     the current year are less than the on-budget surplus for the 
     year before the current year.
       ``(d) Adjustment to the Limit for Low Economic Growth and 
     War.--
       ``(1) Suspension of statutory limit on debt held by the 
     public.--
       ``(A) Low economic growth.--If the most recent of the 
     Department of Commerce's advance, preliminary, or final 
     reports of actual real economic growth indicate that the rate 
     of real economic growth for each of the most recently 
     reported quarter and the immediately preceding quarter is 
     less than 1 percent, the limit on the debt held by the public 
     established in this section is suspended.
       ``(B) War.--If a declaration of war is in effect, the limit 
     on the debt held by the public established in this section is 
     suspended.
       ``(2) Restoration of statutory limit on debt held by the 
     public.--
       ``(A) Restoration of limit.--The statutory limit on debt 
     held by the public shall be restored on May 1 following the 
     quarter in which the level of real Gross Domestic Product in 
     the final report from the Department of Commerce is equal to 
     or is higher than the level of real Gross Domestic Product in 
     the quarter preceding the first two quarters that caused the 
     suspension of the pursuant to paragraph (1).
       ``(B) Adjustment.--
       ``(i) Calculation.--The Secretary shall take level of the 
     debt held by the public on October 1 of the year preceding 
     the date referenced in subparagraph (A) and subtract the 
     limit in subsection (a) for the period of years that includes 
     the date referenced in subparagraph (A).
       ``(ii) Adjustment.--The Secretary shall add the amount 
     calculated under clause (i) to--

       ``(I) the limit in subsection (a) for the period of fiscal 
     years that includes the date referenced in subparagraph (A); 
     and
       ``(II) each subsequent limit.

       ``(e) Adjustment to the Limit for Social Security Reform 
     Provisions that Affect On-Budget Levels.--
       ``(1) Estimate of legislation.--
       ``(A) Calculation.--If social security reform legislation 
     is enacted, OMB shall estimate the amount the debt held by 
     the public will change as a result of the legislation's 
     effect on the level of total outlays and receipts excluding 
     the impact on outlays and receipts of the Federal Old-Age and 
     Survivors Insurance Trust Fund and the Federal Disability 
     Insurance Trust Fund.
       ``(B) Baseline levels.--OMB shall calculate the changes in 
     subparagraph (A) relative to baseline levels for each fiscal 
     year through fiscal year 2010 using current estimates.
       ``(C) Estimate.--OMB shall include the estimate required by 
     this paragraph in the report required under section 252(d) 
     for social security reform legislation.
       ``(2) Adjustment to limit on the debt held by the public.--
     If social security reform legislation is enacted, the 
     Secretary shall adjust the limit on the debt held by the 
     public for each period of fiscal years by the amounts 
     determined under paragraph (1)(A) for the relevant fiscal 
     years included in the report referenced in paragraph (1)(C).
       ``(e) Definitions.--In this section:
       ``(1) Secretary.--The term `Secretary' means the Secretary 
     of the Treasury.
       ``(2) Social security reform legislation.--The term `social 
     security reform legislation' means a bill or joint resolution 
     that is enacted into law and includes a provision stating the 
     following:
       `` `(  ) Social security reform legislation.--For the 
     purposes of the Social Security Surplus Preservation and Debt 
     Reduction Act, this Act constitutes social security reform 
     legislation.'
     This paragraph shall apply only to the first bill or joint 
     resolution enacted into law as described in this paragraph.
       ``(3) Social security reform provisions.--The term `social 
     security reform provisions' means a provision or provisions 
     identified in social security reform legislation stating the 
     following:
       `` `(  ) Social security reform provisions.--For the 
     purposes of the Social Security Surplus Preservation and Debt 
     Reduction Act, ____ of this Act constitutes or constitute 
     social security reform provisions.', with a list of specific 
     provisions in that bill or joint resolution specified in the 
     blank space.''.

     SEC. 205. PRESIDENT'S BUDGET.

       Section 1105(f) of title 31, United States Code, is amended 
     by striking ``in a manner consistent'' and inserting ``in 
     compliance''.

     SEC. 206. SUNSET.

       This title and the amendments made by this title shall 
     expire on April 30, 2010.
                                  ____


                           Amendment No. 258

       At the end of the instructions add the following:

     with an amendment as follows:
       At the end of the bill add the following:
 TITLE II--SOCIAL SECURITY SURPLUS PRESERVATION AND DEBT REDUCTION ACT

     SEC. 201. SHORT TITLE.

       This title may be cited as the ``Social Security Surplus 
     Preservation and Debt Reduction Act''.

     SEC. 202. FINDINGS.

       Congress finds that--
       (1) the $69,246,000,000 unified budget surplus achieved in 
     fiscal year 1998 was entirely due to surpluses generated by 
     the social security trust funds and the cumulative unified 
     budget surpluses projected for subsequent fiscal years are 
     primarily due to surpluses generated by the social security 
     trust funds;
       (2) Congress and the President should balance the budget 
     excluding the surpluses generated by the social security 
     trust funds;
       (3) according to the Congressional Budget Office, balancing 
     the budget excluding the surpluses generated by the social 
     security trust funds will reduce the debt held by the public 
     by a total of $1,723,000,000,000 by the end of fiscal year 
     2009; and
       (4) social security surpluses should be used for social 
     security reform or to reduce the debt held by the public and 
     should not be spent on other programs.

     SEC. 203. PROTECTION OF THE SOCIAL SECURITY TRUST FUNDS.

       (a) Protection by Congress.--
       (1) Reaffirmation of support.--Congress reaffirms its 
     support for the provisions of section 13301 of the Budget 
     Enforcement Act of 1990 that provides that the receipts and 
     disbursements of the social security trust funds shall not be 
     counted for the purposes of the budget submitted by the 
     President, the congressional budget, or the Balanced Budget 
     and Emergency Deficit Control Act of 1985.
       (2) Protection of social security benefits.--If there are 
     sufficient balances in the Federal Old-Age and Survivors 
     Insurance Trust Fund and the Federal Disability Insurance 
     Trust Fund, the Secretary of Treasury shall give priority to 
     the payment of social security benefits required to be paid 
     by law.
       (b) Points of Order.--Section 301 of the Congressional 
     Budget Act of 1974 is amended by adding at the end the 
     following:
       ``(j) Social Security Point of Order.--It shall not be in 
     order in the Senate to consider a concurrent resolution on 
     the budget, an amendment thereto, or a conference report 
     thereon that violates section 13301 of the Budget Enforcement 
     Act of 1990.
       ``(k) Debt Held by the Public Point of Order.--It shall not 
     be in order in the Senate to consider any bill, joint 
     resolution, amendment, motion, or conference report that 
     would--
       ``(1) increase the limit on the debt held by the public in 
     section 253A(a) of the Balanced Budget and Emergency Deficit 
     Control Act of 1985; or
       ``(2) provide additional borrowing authority that would 
     result in the limit on the debt held by the public in section 
     253A(a) of the Balanced Budget and Emergency Deficit Control 
     Act of 1985 being exceeded.
       ``(l) Social Security Surplus Protection Point of Order.--
       ``(1) In general.--It shall not be in order in the Senate 
     to consider a concurrent resolution on the budget, an 
     amendment thereto, or a conference report thereon that sets 
     forth a deficit in any fiscal year.
       ``(2) Exception.--Paragraph (1) shall not apply if--
       ``(A) the limit on the debt held by the public in section 
     253A(a) of the Balanced Budget and Emergency Deficit Control 
     Act of 1985 is suspended; or
       ``(B) the deficit for a fiscal year results solely from the 
     enactment of--
       ``(i) social security reform legislation, as defined in 
     section 253A(e)(2) of the Balanced Budget and Emergency 
     Deficit Control Act of 1985; or
       ``(ii) provisions of legislation that are designated as an 
     emergency requirement pursuant to section 251(b)(2)(A) or 
     252(e) of the Balanced Budget and Emergency Deficit Control 
     Act of 1985.''.
       (c) Supermajority Waiver and Appeal.--Subsections (c)(1) 
     and (d)(2) of section 904 of the Congressional Budget Act of 
     1974 are amended by striking ``305(b)(2),'' and inserting 
     ``301(k), 301(l), 305(b)(2), 318,''.
       (d) Conforming Amendment.--Section 318 of the Congressional 
     Budget Act of 1974, as

[[Page 7409]]

     added by this Act, is amended by adding at the end the 
     following:
       ``(c) Exception for Defense Spending.--Subsection (b) shall 
     not apply against an emergency designation for a provision 
     making discretionary appropriations in the defense 
     category.''.

     SEC. 204. DEDICATION OF SOCIAL SECURITY SURPLUSES TO 
                   REDUCTION IN THE DEBT HELD BY THE PUBLIC.

       (a) Amendments to the Congressional Budget Act of 1974.--
     The Congressional Budget Act of 1974 is amended--
       (1) in section 3, by adding at the end the following:
       ``(11)(A) The term `debt held by the public' means the 
     outstanding face amount of all debt obligations issued by the 
     United States Government that are held by outside investors, 
     including individuals, corporations, State or local 
     governments, foreign governments, and the Federal Reserve 
     System.
       ``(B) For the purpose of this paragraph, the term `face 
     amount', for any month, of any debt 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.
       ``(12) The term `social security surplus' means the amount 
     for a fiscal year that receipts exceed outlays of the Federal 
     Old-Age and Survivors Insurance Trust Fund and the Federal 
     Disability Insurance Trust Fund.'';
       (2) in section 301(a) by--
       (A) redesignating paragraphs (6) and (7) as paragraphs (7) 
     and (8), respectfully; and
       (B) inserting after paragraph (5) the following:
       ``(6) the debt held by the public; and''; and
       (3) in section 310(a) by--
       (A) striking ``or'' at the end of paragraph (3);
       (B) by redesignating paragraph (4) as paragraph (5); and
       (C) inserting the following new paragraph;
       ``(4) specify the amounts by which the statutory limit on 
     the debt held by the public is to be changed and direct the 
     committee having jurisdiction to recommend such change; or''.
       (b) Amendments to the Balanced Budget and Emergency Deficit 
     Control Act of 1985.--The Balanced Budget and Emergency 
     Deficit Control Act of 1985 is amended--
       (1) in section 250, by striking subsection (b) and 
     inserting the following:
       ``(b) General Statement of Purpose.--This part provides for 
     the enforcement of--
       ``(1) a balanced budget excluding the receipts and 
     disbursements of the social security trust funds; and
       ``(2) a limit on the debt held by the public to ensure that 
     social security surpluses are used for social security reform 
     or to reduce debt held by the public and are not spent on 
     other programs.'';
       (2) in section 250(c)(1), by inserting `` ` debt held by 
     the public', `social security surplus' '' after ``outlays', 
     ''; and
       (3) by inserting after section 253 the following:

     ``SEC. 253A. DEBT HELD BY THE PUBLIC LIMIT.

       ``(a) Limit.--The debt held by the public shall not 
     exceed--
       ``(1) for the period beginning May 1, 2000 through April 
     30, 2001, $3,628,000,000,000;
       ``(2) for the period beginning May 1, 2001 through April 
     30, 2002, $3,512,000,000,000;
       ``(3) for the period beginning May 1, 2002 through April 
     30, 2004, $3,383,000,000,000;
       ``(4) for the period beginning May 1, 2004 through April 
     30, 2006, $3,100,000,000,000;
       ``(5) for the period beginning May 1, 2006 through April 
     30, 2008, $2,775,000,000,000; and,
       ``(6) for the period beginning May 1, 2008 through April 
     30, 2010, $2,404,000,000,000.
       ``(b) Adjustments for Actual Social Security Surplus 
     Levels.--
       ``(1) Estimated levels.--The estimated level of social 
     security surpluses for the purposes of this section is--
       ``(A) for fiscal year 1999, $127,000,000,000;
       ``(B) for fiscal year 2000, $137,000,000,000;
       ``(C) for fiscal year 2001, $145,000,000,000;
       ``(D) for fiscal year 2002, $153,000,000,000;
       ``(E) for fiscal year 2003, $162,000,000,000;
       ``(F) for fiscal year 2004, $171,000,000,000;
       ``(G) for fiscal year 2005, $184,000,000,000;
       ``(H) for fiscal year 2006, $193,000,000,000;
       ``(I) for fiscal year 2007, $204,000,000,000;
       ``(J) for fiscal year 2008, $212,000,000,000; and
       ``(K) for fiscal year 2009, $218,000,000,000.
       ``(2) Adjustment to the limit for actual social security 
     surpluses.--After October 1 and no later than December 31 of 
     each year, the Secretary shall make the following 
     calculations and adjustments:
       ``(A) Calculation.--After the Secretary determines the 
     actual level for the social security surplus for the current 
     year, the Secretary shall take the estimated level of the 
     social security surplus for that year specified in paragraph 
     (1) and subtract that actual level.
       ``(B) Adjustment.--
       ``(i) 2000 through 2004.--With respect to the periods 
     described in subsections (a)(1), (a)(2), and (a)(3), the 
     Secretary shall add the amount calculated under subparagraph 
     (A) to--

       ``(I) the limit set forth in subsection (a) for the period 
     of years that begins on May 1st of the following calendar 
     year; and
       ``(II) each subsequent limit.

       ``(ii) 2004 through 2010.--With respect to the periods 
     described in subsections (a)(4), (a)(5), and (a)(6), the 
     Secretary shall add the amount calculated under subparagraph 
     (A) to--

       ``(I) the limit set forth in subsection (a) for the period 
     of years that includes May 1st of the following calendar 
     year; and
       ``(II) each subsequent limit.

       ``(c) Adjustment to the Limit for Emergencies.--
       ``(1) Estimate of legislation.--
       ``(A) Calculation.--If legislation is enacted into law that 
     contains a provision that is designated as an emergency 
     requirement pursuant to section 251(b)(2)(A) or 252(e), OMB 
     shall estimate the amount the debt held by the public will 
     change as a result of the provision's effect on the level of 
     total outlays and receipts excluding the impact on outlays 
     and receipts of the Federal Old-Age and Survivors Insurance 
     Trust Fund and the Federal Disability Insurance Trust Fund.
       ``(B) Baseline levels.--OMB shall calculate the changes in 
     subparagraph (A) relative to baseline levels for each fiscal 
     year through fiscal year 2010 using current estimates.
       ``(C) Estimate.--OMB shall include the estimate required by 
     this paragraph in the report required under section 251(a)(7) 
     or section 252(d), as the case may be.
       ``(2) Adjustment.--After January 1 and no later than May 1 
     of each calendar year beginning with calendar year 2000--
       ``(A) with respect to the periods described in subsections 
     (a)(1), (a)(2), and (a)(3), the Secretary shall add the 
     amounts calculated under paragraph (1)(A) for the current 
     year included in the report referenced in paragraph (1)(C) 
     to--
       ``(i) the limit set forth in subsection (a) for the period 
     of years that begins on May 1 of that calendar year; and
       ``(ii) each subsequent limit; and
       ``(B) with respect to the periods described in subsections 
     (a)(4), (a)(5), and (a)(6), the Secretary shall add the 
     amounts calculated under paragraph (1)(A) for the current 
     year included in the report referenced in paragraph (1)(C) 
     to--
       ``(i) the limit set forth in subsection (a) for the period 
     of years that includes May 1 of that calendar year; and
       ``(ii) each subsequent limit.
       ``(3) Exception.--The Secretary shall not make the 
     adjustments pursuant to this section if the adjustments for 
     the current year are less than the on-budget surplus for the 
     year before the current year.
       ``(d) Adjustment to the Limit for Low Economic Growth and 
     War.--
       ``(1) Suspension of statutory limit on debt held by the 
     public.--
       ``(A) Low economic growth.--If the most recent of the 
     Department of Commerce's advance, preliminary, or final 
     reports of actual real economic growth indicate that the rate 
     of real economic growth for each of the most recently 
     reported quarter and the immediately preceding quarter is 
     less than 1 percent, the limit on the debt held by the public 
     established in this section is suspended.
       ``(B) War.--If a declaration of war is in effect, the limit 
     on the debt held by the public established in this section is 
     suspended.
       ``(2) Restoration of statutory limit on debt held by the 
     public.--
       ``(A) Restoration of limit.--The statutory limit on debt 
     held by the public shall be restored on May 1 following the 
     quarter in which the level of real Gross Domestic Product in 
     the final report from the Department of Commerce is equal to 
     or is higher than the level of real Gross Domestic Product in 
     the quarter preceding the first two quarters that caused the 
     suspension of the pursuant to paragraph (1).
       ``(B) Adjustment.--
       ``(i) Calculation.--The Secretary shall take level of the 
     debt held by the public on October 1 of the year preceding 
     the date referenced in subparagraph (A) and subtract the 
     limit in subsection (a) for the period of years that includes 
     the date referenced in subparagraph (A).
       ``(ii) Adjustment.--The Secretary shall add the amount 
     calculated under clause (i) to--

       ``(I) the limit in subsection (a) for the period of fiscal 
     years that includes the date referenced in subparagraph (A); 
     and
       ``(II) each subsequent limit.

       ``(e) Adjustment to the Limit for Social Security Reform 
     Provisions that Affect On-Budget Levels.--
       ``(1) Estimate of legislation.--
       ``(A) Calculation.--If social security reform legislation 
     is enacted, OMB shall estimate the amount the debt held by 
     the public will change as a result of the legislation's 
     effect on the level of total outlays and receipts excluding 
     the impact on outlays and receipts of the Federal Old-Age and 
     Survivors Insurance Trust Fund and the Federal Disability 
     Insurance Trust Fund.
       ``(B) Baseline levels.--OMB shall calculate the changes in 
     subparagraph (A) relative to baseline levels for each fiscal 
     year through fiscal year 2010 using current estimates.
       ``(C) Estimate.--OMB shall include the estimate required by 
     this paragraph in the report required under section 252(d) 
     for social security reform legislation.

[[Page 7410]]

       ``(2) Adjustment to limit on the debt held by the public.--
     If social security reform legislation is enacted, the 
     Secretary shall adjust the limit on the debt held by the 
     public for each period of fiscal years by the amounts 
     determined under paragraph (1)(A) for the relevant fiscal 
     years included in the report referenced in paragraph (1)(C).
       ``(e) Definitions.--In this section:
       ``(1) Secretary.--The term `Secretary' means the Secretary 
     of the Treasury.
       ``(2) Social security reform legislation.--The term `social 
     security reform legislation' means a bill or joint resolution 
     that is enacted into law and includes a provision stating the 
     following:
       ```(  ) Social security reform legislation.--For the 
     purposes of the Social Security Surplus Preservation and Debt 
     Reduction Act, this Act constitutes social security reform 
     legislation.'

     This paragraph shall apply only to the first bill or joint 
     resolution enacted into law as described in this paragraph.
       ``(3) Social security reform provisions.--The term `social 
     security reform provisions' means a provision or provisions 
     identified in social security reform legislation stating the 
     following:
       `` `(  ) Social security reform provisions.--For the 
     purposes of the Social Security Surplus Preservation and Debt 
     Reduction Act, ____ of this Act constitutes or constitute 
     social security reform provisions.', with a list of specific 
     provisions in that bill or joint resolution specified in the 
     blank space.''.

     SEC. 205. PRESIDENT'S BUDGET.

       Section 1105(f) of title 31, United States Code, is amended 
     by striking ``in a manner consistent'' and inserting ``in 
     compliance''.

     SEC. 206. SUNSET.

       This title and the amendments made by this title shall 
     expire on April 30, 2010.
                                  ____


                           Amendment No. 259

       In the pending amendment strike all after the word 
     ``following'' and insert the following:
 TITLE II--SOCIAL SECURITY SURPLUS PRESERVATION AND DEBT REDUCTION ACT

     SEC. 201. SHORT TITLE.

       This title may be cited as the ``Social Security Surplus 
     Preservation and Debt Reduction Act''.

     SEC. 202. FINDINGS.

       Congress finds that--
       (1) the $69,246,000,000 unified budget surplus achieved in 
     fiscal year 1998 was entirely due to surpluses generated by 
     the social security trust funds and the cumulative unified 
     budget surpluses projected for subsequent fiscal years are 
     primarily due to surpluses generated by the social security 
     trust funds;
       (2) Congress and the President should balance the budget 
     excluding the surpluses generated by the social security 
     trust funds;
       (3) according to the Congressional Budget Office, balancing 
     the budget excluding the surpluses generated by the social 
     security trust funds will reduce the debt held by the public 
     by a total of $1,723,000,000,000 by the end of fiscal year 
     2009; and
       (4) social security surpluses should be used for social 
     security reform or to reduce the debt held by the public and 
     should not be spent on other programs.

     SEC. 203. PROTECTION OF THE SOCIAL SECURITY TRUST FUNDS.

       (a) Protection by Congress.--
       (1) Reaffirmation of support.--Congress reaffirms its 
     support for the provisions of section 13301 of the Budget 
     Enforcement Act of 1990 that provides that the receipts and 
     disbursements of the social security trust funds shall not be 
     counted for the purposes of the budget submitted by the 
     President, the congressional budget, or the Balanced Budget 
     and Emergency Deficit Control Act of 1985.
       (2) Protection of social security benefits.--If there are 
     sufficient balances in the Federal Old-Age and Survivors 
     Insurance Trust Fund and the Federal Disability Insurance 
     Trust Fund, the Secretary of Treasury shall give priority to 
     the payment of social security benefits required to be paid 
     by law.
       (b) Points of Order.--Section 301 of the Congressional 
     Budget Act of 1974 is amended by adding at the end the 
     following:
       ``(j) Social Security Point of Order.--It shall not be in 
     order in the Senate to consider a concurrent resolution on 
     the budget, an amendment thereto, or a conference report 
     thereon that violates section 13301 of the Budget Enforcement 
     Act of 1990.
       ``(k) Debt Held by the Public Point of Order.--It shall not 
     be in order in the Senate to consider any bill, joint 
     resolution, amendment, motion, or conference report that 
     would--
       ``(1) increase the limit on the debt held by the public in 
     section 253A(a) of the Balanced Budget and Emergency Deficit 
     Control Act of 1985; or
       ``(2) provide additional borrowing authority that would 
     result in the limit on the debt held by the public in section 
     253A(a) of the Balanced Budget and Emergency Deficit Control 
     Act of 1985 being exceeded.
       ``(l) Social Security Surplus Protection Point of Order.--
       ``(1) In general.--It shall not be in order in the Senate 
     to consider a concurrent resolution on the budget, an 
     amendment thereto, or a conference report thereon that sets 
     forth a deficit in any fiscal year.
       ``(2) Exception.--Paragraph (1) shall not apply if--
       ``(A) the limit on the debt held by the public in section 
     253A(a) of the Balanced Budget and Emergency Deficit Control 
     Act of 1985 is suspended; or
       ``(B) the deficit for a fiscal year results solely from the 
     enactment of--
       ``(i) social security reform legislation, as defined in 
     section 253A(e)(2) of the Balanced Budget and Emergency 
     Deficit Control Act of 1985; or
       ``(ii) provisions of legislation that are designated as an 
     emergency requirement pursuant to section 251(b)(2)(A) or 
     252(e) of the Balanced Budget and Emergency Deficit Control 
     Act of 1985.''.
       (c) Supermajority Waiver and Appeal.--Subsections (c)(1) 
     and (d)(2) of section 904 of the Congressional Budget Act of 
     1974 are amended by striking ``305(b)(2),'' and inserting 
     ``301(k), 301(l), 305(b)(2), 318,''.
       (d) Conforming Amendment.--Section 318 of the Congressional 
     Budget Act of 1974, as added by this Act, is amended by 
     adding at the end the following:
       ``(c) Exception for Defense Spending.--Subsection (b) shall 
     not apply against an emergency designation for a provision 
     making discretionary appropriations in the defense 
     category.''.

     SEC. 204. DEDICATION OF SOCIAL SECURITY SURPLUSES TO 
                   REDUCTION IN THE DEBT HELD BY THE PUBLIC.

       (a) Amendments to the Congressional Budget Act of 1974.--
     The Congressional Budget Act of 1974 is amended--
       (1) in section 3, by adding at the end the following:
       ``(11)(A) The term `debt held by the public' means the 
     outstanding face amount of all debt obligations issued by the 
     United States Government that are held by outside investors, 
     including individuals, corporations, State or local 
     governments, foreign governments, and the Federal Reserve 
     System.
       ``(B) For the purpose of this paragraph, the term `face 
     amount', for any month, of any debt 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.
       ``(12) The term `social security surplus' means the amount 
     for a fiscal year that receipts exceed outlays of the Federal 
     Old-Age and Survivors Insurance Trust Fund and the Federal 
     Disability Insurance Trust Fund.'';
       (2) in section 301(a) by--
       (A) redesignating paragraphs (6) and (7) as paragraphs (7) 
     and (8), respectfully; and
       (B) inserting after paragraph (5) the following:
       ``(6) the debt held by the public; and''; and
       (3) in section 310(a) by--
       (A) striking ``or'' at the end of paragraph (3);
       (B) by redesignating paragraph (4) as paragraph (5); and
       (C) inserting the following new paragraph;
       ``(4) specify the amounts by which the statutory limit on 
     the debt held by the public is to be changed and direct the 
     committee having jurisdiction to recommend such change; or''.
       (b) Amendments to the Balanced Budget and Emergency Deficit 
     Control Act of 1985.--The Balanced Budget and Emergency 
     Deficit Control Act of 1985 is amended--
       (1) in section 250, by striking subsection (b) and 
     inserting the following:
       ``(b) General Statement of Purpose.--This part provides for 
     the enforcement of--
       ``(1) a balanced budget excluding the receipts and 
     disbursements of the social security trust funds; and
       ``(2) a limit on the debt held by the public to ensure that 
     social security surpluses are used for social security reform 
     or to reduce debt held by the public and are not spent on 
     other programs.'';
       (2) in section 250(c)(1), by inserting `` ` debt held by 
     the public', `social security surplus' '' after ``outlays', 
     ''; and
       (3) by inserting after section 253 the following:

     ``SEC. 253A. DEBT HELD BY THE PUBLIC LIMIT.

       ``(a) Limit.--The debt held by the public shall not 
     exceed--
       ``(1) for the period beginning May 1, 2000 through April 
     30, 2001, $3,628,000,000,000;
       ``(2) for the period beginning May 1, 2001 through April 
     30, 2002, $3,512,000,000,000;
       ``(3) for the period beginning May 1, 2002 through April 
     30, 2004, $3,383,000,000,000;
       ``(4) for the period beginning May 1, 2004 through April 
     30, 2006, $3,100,000,000,000;
       ``(5) for the period beginning May 1, 2006 through April 
     30, 2008, $2,775,000,000,000; and,
       ``(6) for the period beginning May 1, 2008 through April 
     30, 2010, $2,404,000,000,000.
       ``(b) Adjustments for Actual Social Security Surplus 
     Levels.--
       ``(1) Estimated levels.--The estimated level of social 
     security surpluses for the purposes of this section is--
       ``(A) for fiscal year 1999, $127,000,000,000;
       ``(B) for fiscal year 2000, $137,000,000,000;
       ``(C) for fiscal year 2001, $145,000,000,000;

[[Page 7411]]

       ``(D) for fiscal year 2002, $153,000,000,000;
       ``(E) for fiscal year 2003, $162,000,000,000;
       ``(F) for fiscal year 2004, $171,000,000,000;
       ``(G) for fiscal year 2005, $184,000,000,000;
       ``(H) for fiscal year 2006, $193,000,000,000;
       ``(I) for fiscal year 2007, $204,000,000,000;
       ``(J) for fiscal year 2008, $212,000,000,000; and
       ``(K) for fiscal year 2009, $218,000,000,000.
       ``(2) Adjustment to the limit for actual social security 
     surpluses.--After October 1 and no later than December 31 of 
     each year, the Secretary shall make the following 
     calculations and adjustments:
       ``(A) Calculation.--After the Secretary determines the 
     actual level for the social security surplus for the current 
     year, the Secretary shall take the estimated level of the 
     social security surplus for that year specified in paragraph 
     (1) and subtract that actual level.
       ``(B) Adjustment.--
       ``(i) 2000 through 2004.--With respect to the periods 
     described in subsections (a)(1), (a)(2), and (a)(3), the 
     Secretary shall add the amount calculated under subparagraph 
     (A) to--

       ``(I) the limit set forth in subsection (a) for the period 
     of years that begins on May 1st of the following calendar 
     year; and
       ``(II) each subsequent limit.

       ``(ii) 2004 through 2010.--With respect to the periods 
     described in subsections (a)(4), (a)(5), and (a)(6), the 
     Secretary shall add the amount calculated under subparagraph 
     (A) to--

       ``(I) the limit set forth in subsection (a) for the period 
     of years that includes May 1st of the following calendar 
     year; and
       ``(II) each subsequent limit.

       ``(c) Adjustment to the Limit for Emergencies.--
       ``(1) Estimate of legislation.--
       ``(A) Calculation.--If legislation is enacted into law that 
     contains a provision that is designated as an emergency 
     requirement pursuant to section 251(b)(2)(A) or 252(e), OMB 
     shall estimate the amount the debt held by the public will 
     change as a result of the provision's effect on the level of 
     total outlays and receipts excluding the impact on outlays 
     and receipts of the Federal Old-Age and Survivors Insurance 
     Trust Fund and the Federal Disability Insurance Trust Fund.
       ``(B) Baseline levels.--OMB shall calculate the changes in 
     subparagraph (A) relative to baseline levels for each fiscal 
     year through fiscal year 2010 using current estimates.
       ``(C) Estimate.--OMB shall include the estimate required by 
     this paragraph in the report required under section 251(a)(7) 
     or section 252(d), as the case may be.
       ``(2) Adjustment.--After January 1 and no later than May 1 
     of each calendar year beginning with calendar year 2000--
       ``(A) with respect to the periods described in subsections 
     (a)(1), (a)(2), and (a)(3), the Secretary shall add the 
     amounts calculated under paragraph (1)(A) for the current 
     year included in the report referenced in paragraph (1)(C) 
     to--
       ``(i) the limit set forth in subsection (a) for the period 
     of years that begins on May 1 of that calendar year; and
       ``(ii) each subsequent limit; and
       ``(B) with respect to the periods described in subsections 
     (a)(4), (a)(5), and (a)(6), the Secretary shall add the 
     amounts calculated under paragraph (1)(A) for the current 
     year included in the report referenced in paragraph (1)(C) 
     to--
       ``(i) the limit set forth in subsection (a) for the period 
     of years that includes May 1 of that calendar year; and
       ``(ii) each subsequent limit.
       ``(3) Exception.--The Secretary shall not make the 
     adjustments pursuant to this section if the adjustments for 
     the current year are less than the on-budget surplus for the 
     year before the current year.
       ``(d) Adjustment to the Limit for Low Economic Growth and 
     War.--
       ``(1) Suspension of statutory limit on debt held by the 
     public.--
       ``(A) Low economic growth.--If the most recent of the 
     Department of Commerce's advance, preliminary, or final 
     reports of actual real economic growth indicate that the rate 
     of real economic growth for each of the most recently 
     reported quarter and the immediately preceding quarter is 
     less than 1 percent, the limit on the debt held by the public 
     established in this section is suspended.
       ``(B) War.--If a declaration of war is in effect, the limit 
     on the debt held by the public established in this section is 
     suspended.
       ``(2) Restoration of statutory limit on debt held by the 
     public.--
       ``(A) Restoration of limit.--The statutory limit on debt 
     held by the public shall be restored on May 1 following the 
     quarter in which the level of real Gross Domestic Product in 
     the final report from the Department of Commerce is equal to 
     or is higher than the level of real Gross Domestic Product in 
     the quarter preceding the first two quarters that caused the 
     suspension of the pursuant to paragraph (1).
       ``(B) Adjustment.--
       ``(i) Calculation.--The Secretary shall take level of the 
     debt held by the public on October 1 of the year preceding 
     the date referenced in subparagraph (A) and subtract the 
     limit in subsection (a) for the period of years that includes 
     the date referenced in subparagraph (A).
       ``(ii) Adjustment.--The Secretary shall add the amount 
     calculated under clause (i) to--

       ``(I) the limit in subsection (a) for the period of fiscal 
     years that includes the date referenced in subparagraph (A); 
     and
       ``(II) each subsequent limit.

       ``(e) Adjustment to the Limit for Social Security Reform 
     Provisions that Affect On-Budget Levels.--
       ``(1) Estimate of legislation.--
       ``(A) Calculation.--If social security reform legislation 
     is enacted, OMB shall estimate the amount the debt held by 
     the public will change as a result of the legislation's 
     effect on the level of total outlays and receipts excluding 
     the impact on outlays and receipts of the Federal Old-Age and 
     Survivors Insurance Trust Fund and the Federal Disability 
     Insurance Trust Fund.
       ``(B) Baseline levels.--OMB shall calculate the changes in 
     subparagraph (A) relative to baseline levels for each fiscal 
     year through fiscal year 2010 using current estimates.
       ``(C) Estimate.--OMB shall include the estimate required by 
     this paragraph in the report required under section 252(d) 
     for social security reform legislation.
       ``(2) Adjustment to limit on the debt held by the public.--
     If social security reform legislation is enacted, the 
     Secretary shall adjust the limit on the debt held by the 
     public for each period of fiscal years by the amounts 
     determined under paragraph (1)(A) for the relevant fiscal 
     years included in the report referenced in paragraph (1)(C).
       ``(e) Definitions.--In this section:
       ``(1) Secretary.--The term `Secretary' means the Secretary 
     of the Treasury.
       ``(2) Social security reform legislation.--The term `social 
     security reform legislation' means a bill or joint resolution 
     that is enacted into law and includes a provision stating the 
     following:
       `` `(  ) Social security reform legislation.--For the 
     purposes of the Social Security Surplus Preservation and Debt 
     Reduction Act, this Act constitutes social security reform 
     legislation.'

     This paragraph shall apply only to the first bill or joint 
     resolution enacted into law as described in this paragraph.
       ``(3) Social security reform provisions.--The term `social 
     security reform provisions' means a provision or provisions 
     identified in social security reform legislation stating the 
     following:
       `` `(  ) Social security reform provisions.--For the 
     purposes of the Social Security Surplus Preservation and Debt 
     Reduction Act, ____ of this Act constitutes or constitute 
     social security reform provisions.', with a list of specific 
     provisions in that bill or joint resolution specified in the 
     blank space.''.

     SEC. 205. PRESIDENT'S BUDGET.

       Section 1105(f) of title 31, United States Code, is amended 
     by striking ``in a manner consistent'' and inserting ``in 
     compliance''.

     SEC. 206. SUNSET.

       This title and the amendments made by this title shall 
     expire on May 1, 2010.
                                  ____


                           Amendment No. 260

       In the pending amendment strike all after the word 
     ``following'' and insert the following:
 TITLE II--SOCIAL SECURITY SURPLUS PRESERVATION AND DEBT REDUCTION ACT

     SEC. 201. SHORT TITLE.

       This title may be cited as the ``Social Security Surplus 
     Preservation and Debt Reduction Act''.

     SEC. 202. FINDINGS.

       Congress finds that--
       (1) the $69,246,000,000 unified budget surplus achieved in 
     fiscal year 1998 was entirely due to surpluses generated by 
     the social security trust funds and the cumulative unified 
     budget surpluses projected for subsequent fiscal years are 
     primarily due to surpluses generated by the social security 
     trust funds;
       (2) Congress and the President should balance the budget 
     excluding the surpluses generated by the social security 
     trust funds;
       (3) according to the Congressional Budget Office, balancing 
     the budget excluding the surpluses generated by the social 
     security trust funds will reduce the debt held by the public 
     by a total of $1,723,000,000,000 by the end of fiscal year 
     2009; and
       (4) social security surpluses should be used for social 
     security reform or to reduce the debt held by the public and 
     should not be spent on other programs.

     SEC. 203. PROTECTION OF THE SOCIAL SECURITY TRUST FUNDS.

       (a) Protection by Congress.--
       (1) Reaffirmation of support.--Congress reaffirms its 
     support for the provisions of section 13301 of the Budget 
     Enforcement Act of 1990 that provides that the receipts and 
     disbursements of the social security trust funds shall not be 
     counted for the purposes of the budget submitted by the 
     President, the congressional budget, or the Balanced Budget 
     and Emergency Deficit Control Act of 1985.
       (2) Protection of social security benefits.--If there are 
     sufficient balances in the Federal Old-Age and Survivors 
     Insurance Trust Fund and the Federal Disability Insurance 
     Trust Fund, the Secretary of Treasury

[[Page 7412]]

     shall give priority to the payment of social security 
     benefits required to be paid by law.
       (b) Points of Order.--Section 301 of the Congressional 
     Budget Act of 1974 is amended by adding at the end the 
     following:
       ``(j) Social Security Point of Order.--It shall not be in 
     order in the Senate to consider a concurrent resolution on 
     the budget, an amendment thereto, or a conference report 
     thereon that violates section 13301 of the Budget Enforcement 
     Act of 1990.
       ``(k) Debt Held by the Public Point of Order.--It shall not 
     be in order in the Senate to consider any bill, joint 
     resolution, amendment, motion, or conference report that 
     would--
       ``(1) increase the limit on the debt held by the public in 
     section 253A(a) of the Balanced Budget and Emergency Deficit 
     Control Act of 1985; or
       ``(2) provide additional borrowing authority that would 
     result in the limit on the debt held by the public in section 
     253A(a) of the Balanced Budget and Emergency Deficit Control 
     Act of 1985 being exceeded.
       ``(l) Social Security Surplus Protection Point of Order.--
       ``(1) In general.--It shall not be in order in the Senate 
     to consider a concurrent resolution on the budget, an 
     amendment thereto, or a conference report thereon that sets 
     forth a deficit in any fiscal year.
       ``(2) Exception.--Paragraph (1) shall not apply if--
       ``(A) the limit on the debt held by the public in section 
     253A(a) of the Balanced Budget and Emergency Deficit Control 
     Act of 1985 is suspended; or
       ``(B) the deficit for a fiscal year results solely from the 
     enactment of--
       ``(i) social security reform legislation, as defined in 
     section 253A(e)(2) of the Balanced Budget and Emergency 
     Deficit Control Act of 1985; or
       ``(ii) provisions of legislation that are designated as an 
     emergency requirement pursuant to section 251(b)(2)(A) or 
     252(e) of the Balanced Budget and Emergency Deficit Control 
     Act of 1985.''.
       (c) Supermajority Waiver and Appeal.--Subsections (c)(1) 
     and (d)(2) of section 904 of the Congressional Budget Act of 
     1974 are amended by striking ``305(b)(2),'' and inserting 
     ``301(k), 301(l), 305(b)(2), 318,''.
       (d) Conforming Amendment.--Section 318 of the Congressional 
     Budget Act of 1974, as added by this Act, is amended by 
     adding at the end the following:
       ``(c) Exception for Defense Spending.--Subsection (b) shall 
     not apply against an emergency designation for a provision 
     making discretionary appropriations in the defense 
     category.''.

     SEC. 204. DEDICATION OF SOCIAL SECURITY SURPLUSES TO 
                   REDUCTION IN THE DEBT HELD BY THE PUBLIC.

       (a) Amendments to the Congressional Budget Act of 1974.--
     The Congressional Budget Act of 1974 is amended--
       (1) in section 3, by adding at the end the following:
       ``(11)(A) The term `debt held by the public' means the 
     outstanding face amount of all debt obligations issued by the 
     United States Government that are held by outside investors, 
     including individuals, corporations, State or local 
     governments, foreign governments, and the Federal Reserve 
     System.
       ``(B) For the purpose of this paragraph, the term `face 
     amount', for any month, of any debt 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.
       ``(12) The term `social security surplus' means the amount 
     for a fiscal year that receipts exceed outlays of the Federal 
     Old-Age and Survivors Insurance Trust Fund and the Federal 
     Disability Insurance Trust Fund.'';
       (2) in section 301(a) by--
       (A) redesignating paragraphs (6) and (7) as paragraphs (7) 
     and (8), respectfully; and
       (B) inserting after paragraph (5) the following:
       ``(6) the debt held by the public; and''; and
       (3) in section 310(a) by--
       (A) striking ``or'' at the end of paragraph (3);
       (B) by redesignating paragraph (4) as paragraph (5); and
       (C) inserting the following new paragraph;
       ``(4) specify the amounts by which the statutory limit on 
     the debt held by the public is to be changed and direct the 
     committee having jurisdiction to recommend such change; or''.
       (b) Amendments to the Balanced Budget and Emergency Deficit 
     Control Act of 1985.--The Balanced Budget and Emergency 
     Deficit Control Act of 1985 is amended--
       (1) in section 250, by striking subsection (b) and 
     inserting the following:
       ``(b) General Statement of Purpose.--This part provides for 
     the enforcement of--
       ``(1) a balanced budget excluding the receipts and 
     disbursements of the social security trust funds; and
       ``(2) a limit on the debt held by the public to ensure that 
     social security surpluses are used for social security reform 
     or to reduce debt held by the public and are not spent on 
     other programs.'';
       (2) in section 250(c)(1), by inserting `` ` debt held by 
     the public', `social security surplus' '' after ``outlays', 
     ''; and
       (3) by inserting after section 253 the following:

     ``SEC. 253A. DEBT HELD BY THE PUBLIC LIMIT.

       ``(a) Limit.--The debt held by the public shall not 
     exceed--
       ``(1) for the period beginning May 1, 2000 through April 
     30, 2001, $3,628,000,000,000;
       ``(2) for the period beginning May 1, 2001 through April 
     30, 2002, $3,512,000,000,000;
       ``(3) for the period beginning May 1, 2002 through April 
     30, 2004, $3,383,000,000,000;
       ``(4) for the period beginning May 1, 2004 through April 
     30, 2006, $3,100,000,000,000;
       ``(5) for the period beginning May 1, 2006 through April 
     30, 2008, $2,775,000,000,000; and,
       ``(6) for the period beginning May 1, 2008 through April 
     30, 2010, $2,404,000,000,000.
       ``(b) Adjustments for Actual Social Security Surplus 
     Levels.--
       ``(1) Estimated levels.--The estimated level of social 
     security surpluses for the purposes of this section is--
       ``(A) for fiscal year 1999, $127,000,000,000;
       ``(B) for fiscal year 2000, $137,000,000,000;
       ``(C) for fiscal year 2001, $145,000,000,000;
       ``(D) for fiscal year 2002, $153,000,000,000;
       ``(E) for fiscal year 2003, $162,000,000,000;
       ``(F) for fiscal year 2004, $171,000,000,000;
       ``(G) for fiscal year 2005, $184,000,000,000;
       ``(H) for fiscal year 2006, $193,000,000,000;
       ``(I) for fiscal year 2007, $204,000,000,000;
       ``(J) for fiscal year 2008, $212,000,000,000; and
       ``(K) for fiscal year 2009, $218,000,000,000.
       ``(2) Adjustment to the limit for actual social security 
     surpluses.--After October 1 and no later than December 31 of 
     each year, the Secretary shall make the following 
     calculations and adjustments:
       ``(A) Calculation.--After the Secretary determines the 
     actual level for the social security surplus for the current 
     year, the Secretary shall take the estimated level of the 
     social security surplus for that year specified in paragraph 
     (1) and subtract that actual level.
       ``(B) Adjustment.--
       ``(i) 2000 through 2004.--With respect to the periods 
     described in subsections (a)(1), (a)(2), and (a)(3), the 
     Secretary shall add the amount calculated under subparagraph 
     (A) to--

       ``(I) the limit set forth in subsection (a) for the period 
     of years that begins on May 1st of the following calendar 
     year; and
       ``(II) each subsequent limit.

       ``(ii) 2004 through 2010.--With respect to the periods 
     described in subsections (a)(4), (a)(5), and (a)(6), the 
     Secretary shall add the amount calculated under subparagraph 
     (A) to--

       ``(I) the limit set forth in subsection (a) for the period 
     of years that includes May 1st of the following calendar 
     year; and
       ``(II) each subsequent limit.

       ``(c) Adjustment to the Limit for Emergencies.--
       ``(1) Estimate of legislation.--
       ``(A) Calculation.--If legislation is enacted into law that 
     contains a provision that is designated as an emergency 
     requirement pursuant to section 251(b)(2)(A) or 252(e), OMB 
     shall estimate the amount the debt held by the public will 
     change as a result of the provision's effect on the level of 
     total outlays and receipts excluding the impact on outlays 
     and receipts of the Federal Old-Age and Survivors Insurance 
     Trust Fund and the Federal Disability Insurance Trust Fund.
       ``(B) Baseline levels.--OMB shall calculate the changes in 
     subparagraph (A) relative to baseline levels for each fiscal 
     year through fiscal year 2010 using current estimates.
       ``(C) Estimate.--OMB shall include the estimate required by 
     this paragraph in the report required under section 251(a)(7) 
     or section 252(d), as the case may be.
       ``(2) Adjustment.--After January 1 and no later than May 1 
     of each calendar year beginning with calendar year 2000--
       ``(A) with respect to the periods described in subsections 
     (a)(1), (a)(2), and (a)(3), the Secretary shall add the 
     amounts calculated under paragraph (1)(A) for the current 
     year included in the report referenced in paragraph (1)(C) 
     to--
       ``(i) the limit set forth in subsection (a) for the period 
     of years that begins on May 1 of that calendar year; and
       ``(ii) each subsequent limit; and
       ``(B) with respect to the periods described in subsections 
     (a)(4), (a)(5), and (a)(6), the Secretary shall add the 
     amounts calculated under paragraph (1)(A) for the current 
     year included in the report referenced in paragraph (1)(C) 
     to--
       ``(i) the limit set forth in subsection (a) for the period 
     of years that includes May 1 of that calendar year; and
       ``(ii) each subsequent limit.
       ``(3) Exception.--The Secretary shall not make the 
     adjustments pursuant to this section if the adjustments for 
     the current year are less than the on-budget surplus for the 
     year before the current year.
       ``(d) Adjustment to the Limit for Low Economic Growth and 
     War.--
       ``(1) Suspension of statutory limit on debt held by the 
     public.--
       ``(A) Low economic growth.--If the most recent of the 
     Department of Commerce's advance, preliminary, or final 
     reports of actual

[[Page 7413]]

     real economic growth indicate that the rate of real economic 
     growth for each of the most recently reported quarter and the 
     immediately preceding quarter is less than 1 percent, the 
     limit on the debt held by the public established in this 
     section is suspended.
       ``(B) War.--If a declaration of war is in effect, the limit 
     on the debt held by the public established in this section is 
     suspended.
       ``(2) Restoration of statutory limit on debt held by the 
     public.--
       ``(A) Restoration of limit.--The statutory limit on debt 
     held by the public shall be restored on May 1 following the 
     quarter in which the level of real Gross Domestic Product in 
     the final report from the Department of Commerce is equal to 
     or is higher than the level of real Gross Domestic Product in 
     the quarter preceding the first two quarters that caused the 
     suspension of the pursuant to paragraph (1).
       ``(B) Adjustment.--
       ``(i) Calculation.--The Secretary shall take level of the 
     debt held by the public on October 1 of the year preceding 
     the date referenced in subparagraph (A) and subtract the 
     limit in subsection (a) for the period of years that includes 
     the date referenced in subparagraph (A).
       ``(ii) Adjustment.--The Secretary shall add the amount 
     calculated under clause (i) to--

       ``(I) the limit in subsection (a) for the period of fiscal 
     years that includes the date referenced in subparagraph (A); 
     and
       ``(II) each subsequent limit.

       ``(e) Adjustment to the Limit for Social Security Reform 
     Provisions that Affect On-Budget Levels.--
       ``(1) Estimate of legislation.--
       ``(A) Calculation.--If social security reform legislation 
     is enacted, OMB shall estimate the amount the debt held by 
     the public will change as a result of the legislation's 
     effect on the level of total outlays and receipts excluding 
     the impact on outlays and receipts of the Federal Old-Age and 
     Survivors Insurance Trust Fund and the Federal Disability 
     Insurance Trust Fund.
       ``(B) Baseline levels.--OMB shall calculate the changes in 
     subparagraph (A) relative to baseline levels for each fiscal 
     year through fiscal year 2010 using current estimates.
       ``(C) Estimate.--OMB shall include the estimate required by 
     this paragraph in the report required under section 252(d) 
     for social security reform legislation.
       ``(2) Adjustment to limit on the debt held by the public.--
     If social security reform legislation is enacted, the 
     Secretary shall adjust the limit on the debt held by the 
     public for each period of fiscal years by the amounts 
     determined under paragraph (1)(A) for the relevant fiscal 
     years included in the report referenced in paragraph (1)(C).
       ``(e) Definitions.--In this section:
       ``(1) Secretary.--The term `Secretary' means the Secretary 
     of the Treasury.
       ``(2) Social security reform legislation.--The term `social 
     security reform legislation' means a bill or joint resolution 
     that is enacted into law and includes a provision stating the 
     following:
       `` `(  ) Social security reform legislation.--For the 
     purposes of the Social Security Surplus Preservation and Debt 
     Reduction Act, this Act constitutes social security reform 
     legislation.'
     This paragraph shall apply only to the first bill or joint 
     resolution enacted into law as described in this paragraph.
       ``(3) Social security reform provisions.--The term `social 
     security reform provisions' means a provision or provisions 
     identified in social security reform legislation stating the 
     following:
       `` `(  ) Social security reform provisions.--For the 
     purposes of the Social Security Surplus Preservation and Debt 
     Reduction Act, ____ of this Act constitutes or constitute 
     social security reform provisions.', with a list of specific 
     provisions in that bill or joint resolution specified in the 
     blank space.''.

     SEC. 205. PRESIDENT'S BUDGET.

       Section 1105(f) of title 31, United States Code, is amended 
     by striking ``in a manner consistent'' and inserting ``in 
     compliance''.

     SEC. 206. SUNSET.

       This title and the amendments made by this title shall 
     expire on May 1, 2010.
                                  ____


                           Amendment No. 261

       In the pending amendment strike all after the word 
     ``following and insert the following:
 TITLE II--SOCIAL SECURITY SURPLUS PRESERVATION AND DEBT REDUCTION ACT

     SEC. 201. SHORT TITLE.

       This title may be cited as the ``Social Security Surplus 
     Preservation and Debt Reduction Act''.

     SEC. 202. FINDINGS.

       Congress finds that--
       (1) the $69,246,000,000 unified budget surplus achieved in 
     fiscal year 1998 was entirely due to surpluses generated by 
     the social security trust funds and the cumulative unified 
     budget surpluses projected for subsequent fiscal years are 
     primarily due to surpluses generated by the social security 
     trust funds;
       (2) Congress and the President should balance the budget 
     excluding the surpluses generated by the social security 
     trust funds;
       (3) according to the Congressional Budget Office, balancing 
     the budget excluding the surpluses generated by the social 
     security trust funds will reduce the debt held by the public 
     by a total of $1,723,000,000,000 by the end of fiscal year 
     2009; and
       (4) social security surpluses should be used for social 
     security reform or to reduce the debt held by the public and 
     should not be spent on other programs.

     SEC. 203. PROTECTION OF THE SOCIAL SECURITY TRUST FUNDS.

       (a) Protection by Congress.--
       (1) Reaffirmation of support.--Congress reaffirms its 
     support for the provisions of section 13301 of the Budget 
     Enforcement Act of 1990 that provides that the receipts and 
     disbursements of the social security trust funds shall not be 
     counted for the purposes of the budget submitted by the 
     President, the congressional budget, or the Balanced Budget 
     and Emergency Deficit Control Act of 1985.
       (2) Protection of social security benefits.--If there are 
     sufficient balances in the Federal Old-Age and Survivors 
     Insurance Trust Fund and the Federal Disability Insurance 
     Trust Fund, the Secretary of Treasury shall give priority to 
     the payment of social security benefits required to be paid 
     by law.
       (b) Points of Order.--Section 301 of the Congressional 
     Budget Act of 1974 is amended by adding at the end the 
     following:
       ``(j) Social Security Point of Order.--It shall not be in 
     order in the Senate to consider a concurrent resolution on 
     the budget, an amendment thereto, or a conference report 
     thereon that violates section 13301 of the Budget Enforcement 
     Act of 1990.
       ``(k) Debt Held by the Public Point of Order.--It shall not 
     be in order in the Senate to consider any bill, joint 
     resolution, amendment, motion, or conference report that 
     would--
       ``(1) increase the limit on the debt held by the public in 
     section 253A(a) of the Balanced Budget and Emergency Deficit 
     Control Act of 1985; or
       ``(2) provide additional borrowing authority that would 
     result in the limit on the debt held by the public in section 
     253A(a) of the Balanced Budget and Emergency Deficit Control 
     Act of 1985 being exceeded.
       ``(l) Social Security Surplus Protection Point of Order.--
       ``(1) In general.--It shall not be in order in the Senate 
     to consider a concurrent resolution on the budget, an 
     amendment thereto, or a conference report thereon that sets 
     forth a deficit in any fiscal year.
       ``(2) Exception.--Paragraph (1) shall not apply if--
       ``(A) the limit on the debt held by the public in section 
     253A(a) of the Balanced Budget and Emergency Deficit Control 
     Act of 1985 is suspended; or
       ``(B) the deficit for a fiscal year results solely from the 
     enactment of--
       ``(i) social security reform legislation, as defined in 
     section 253A(e)(2) of the Balanced Budget and Emergency 
     Deficit Control Act of 1985; or
       ``(ii) provisions of legislation that are designated as an 
     emergency requirement pursuant to section 251(b)(2)(A) or 
     252(e) of the Balanced Budget and Emergency Deficit Control 
     Act of 1985.''.
       (c) Supermajority Waiver and Appeal.--Subsections (c)(1) 
     and (d)(2) of section 904 of the Congressional Budget Act of 
     1974 are amended by striking ``305(b)(2),'' and inserting 
     ``301(k), 301(l), 305(b)(2), 318,''.
       (d) Conforming Amendment.--Section 318 of the Congressional 
     Budget Act of 1974, as added by this Act, is amended by 
     adding at the end the following:
       ``(c) Exception for Defense Spending.--Subsection (b) shall 
     not apply against an emergency designation for a provision 
     making discretionary appropriations in the defense 
     category.''.

     SEC. 204. DEDICATION OF SOCIAL SECURITY SURPLUSES TO 
                   REDUCTION IN THE DEBT HELD BY THE PUBLIC.

       (a) Amendments to the Congressional Budget Act of 1974.--
     The Congressional Budget Act of 1974 is amended--
       (1) in section 3, by adding at the end the following:
       ``(11)(A) The term `debt held by the public' means the 
     outstanding face amount of all debt obligations issued by the 
     United States Government that are held by outside investors, 
     including individuals, corporations, State or local 
     governments, foreign governments, and the Federal Reserve 
     System.
       ``(B) For the purpose of this paragraph, the term `face 
     amount', for any month, of any debt 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.
       ``(12) The term `social security surplus' means the amount 
     for a fiscal year that receipts exceed outlays of the Federal 
     Old-Age and Survivors Insurance Trust Fund and the Federal 
     Disability Insurance Trust Fund.'';
       (2) in section 301(a) by--
       (A) redesignating paragraphs (6) and (7) as paragraphs (7) 
     and (8), respectfully; and
       (B) inserting after paragraph (5) the following:

[[Page 7414]]

       ``(6) the debt held by the public; and''; and
       (3) in section 310(a) by--
       (A) striking ``or'' at the end of paragraph (3);
       (B) by redesignating paragraph (4) as paragraph (5); and
       (C) inserting the following new paragraph;
       ``(4) specify the amounts by which the statutory limit on 
     the debt held by the public is to be changed and direct the 
     committee having jurisdiction to recommend such change; or''.
       (b) Amendments to the Balanced Budget and Emergency Deficit 
     Control Act of 1985.--The Balanced Budget and Emergency 
     Deficit Control Act of 1985 is amended--
       (1) in section 250, by striking subsection (b) and 
     inserting the following:
       ``(b) General Statement of Purpose.--This part provides for 
     the enforcement of--
       ``(1) a balanced budget excluding the receipts and 
     disbursements of the social security trust funds; and
       ``(2) a limit on the debt held by the public to ensure that 
     social security surpluses are used for social security reform 
     or to reduce debt held by the public and are not spent on 
     other programs.'';
       (2) in section 250(c)(1), by inserting `` ` debt held by 
     the public', `social security surplus' '' after ``outlays', 
     ''; and
       (3) by inserting after section 253 the following:

     ``SEC. 253A. DEBT HELD BY THE PUBLIC LIMIT.

       ``(a) Limit.--The debt held by the public shall not 
     exceed--
       ``(1) for the period beginning May 1, 2000 through April 
     30, 2001, $3,628,000,000,000;
       ``(2) for the period beginning May 1, 2001 through April 
     30, 2002, $3,512,000,000,000;
       ``(3) for the period beginning May 1, 2002 through April 
     30, 2004, $3,383,000,000,000;
       ``(4) for the period beginning May 1, 2004 through April 
     30, 2006, $3,100,000,000,000;
       ``(5) for the period beginning May 1, 2006 through April 
     30, 2008, $2,775,000,000,000; and,
       ``(6) for the period beginning May 1, 2008 through April 
     30, 2010, $2,404,000,000,000.
       ``(b) Adjustments for Actual Social Security Surplus 
     Levels.--
       ``(1) Estimated levels.--The estimated level of social 
     security surpluses for the purposes of this section is--
       ``(A) for fiscal year 1999, $127,000,000,000;
       ``(B) for fiscal year 2000, $137,000,000,000;
       ``(C) for fiscal year 2001, $145,000,000,000;
       ``(D) for fiscal year 2002, $153,000,000,000;
       ``(E) for fiscal year 2003, $162,000,000,000;
       ``(F) for fiscal year 2004, $171,000,000,000;
       ``(G) for fiscal year 2005, $184,000,000,000;
       ``(H) for fiscal year 2006, $193,000,000,000;
       ``(I) for fiscal year 2007, $204,000,000,000;
       ``(J) for fiscal year 2008, $212,000,000,000; and
       ``(K) for fiscal year 2009, $218,000,000,000.
       ``(2) Adjustment to the limit for actual social security 
     surpluses.--After October 1 and no later than December 31 of 
     each year, the Secretary shall make the following 
     calculations and adjustments:
       ``(A) Calculation.--After the Secretary determines the 
     actual level for the social security surplus for the current 
     year, the Secretary shall take the estimated level of the 
     social security surplus for that year specified in paragraph 
     (1) and subtract that actual level.
       ``(B) Adjustment.--
       ``(i) 2000 through 2004.--With respect to the periods 
     described in subsections (a)(1), (a)(2), and (a)(3), the 
     Secretary shall add the amount calculated under subparagraph 
     (A) to--

       ``(I) the limit set forth in subsection (a) for the period 
     of years that begins on May 1st of the following calendar 
     year; and
       ``(II) each subsequent limit.

       ``(ii) 2004 through 2010.--With respect to the periods 
     described in subsections (a)(4), (a)(5), and (a)(6), the 
     Secretary shall add the amount calculated under subparagraph 
     (A) to--

       ``(I) the limit set forth in subsection (a) for the period 
     of years that includes May 1st of the following calendar 
     year; and
       ``(II) each subsequent limit.

       ``(c) Adjustment to the Limit for Emergencies.--
       ``(1) Estimate of legislation.--
       ``(A) Calculation.--If legislation is enacted into law that 
     contains a provision that is designated as an emergency 
     requirement pursuant to section 251(b)(2)(A) or 252(e), OMB 
     shall estimate the amount the debt held by the public will 
     change as a result of the provision's effect on the level of 
     total outlays and receipts excluding the impact on outlays 
     and receipts of the Federal Old-Age and Survivors Insurance 
     Trust Fund and the Federal Disability Insurance Trust Fund.
       ``(B) Baseline levels.--OMB shall calculate the changes in 
     subparagraph (A) relative to baseline levels for each fiscal 
     year through fiscal year 2010 using current estimates.
       ``(C) Estimate.--OMB shall include the estimate required by 
     this paragraph in the report required under section 251(a)(7) 
     or section 252(d), as the case may be.
       ``(2) Adjustment.--After January 1 and no later than May 1 
     of each calendar year beginning with calendar year 2000--
       ``(A) with respect to the periods described in subsections 
     (a)(1), (a)(2), and (a)(3), the Secretary shall add the 
     amounts calculated under paragraph (1)(A) for the current 
     year included in the report referenced in paragraph (1)(C) 
     to--
       ``(i) the limit set forth in subsection (a) for the period 
     of years that begins on May 1 of that calendar year; and
       ``(ii) each subsequent limit; and
       ``(B) with respect to the periods described in subsections 
     (a)(4), (a)(5), and (a)(6), the Secretary shall add the 
     amounts calculated under paragraph (1)(A) for the current 
     year included in the report referenced in paragraph (1)(C) 
     to--
       ``(i) the limit set forth in subsection (a) for the period 
     of years that includes May 1 of that calendar year; and
       ``(ii) each subsequent limit.
       ``(3) Exception.--The Secretary shall not make the 
     adjustments pursuant to this section if the adjustments for 
     the current year are less than the on-budget surplus for the 
     year before the current year.
       ``(d) Adjustment to the Limit for Low Economic Growth and 
     War.--
       ``(1) Suspension of statutory limit on debt held by the 
     public.--
       ``(A) Low economic growth.--If the most recent of the 
     Department of Commerce's advance, preliminary, or final 
     reports of actual real economic growth indicate that the rate 
     of real economic growth for each of the most recently 
     reported quarter and the immediately preceding quarter is 
     less than 1 percent, the limit on the debt held by the public 
     established in this section is suspended.
       ``(B) War.--If a declaration of war is in effect, the limit 
     on the debt held by the public established in this section is 
     suspended.
       ``(2) Restoration of statutory limit on debt held by the 
     public.--
       ``(A) Restoration of limit.--The statutory limit on debt 
     held by the public shall be restored on May 1 following the 
     quarter in which the level of real Gross Domestic Product in 
     the final report from the Department of Commerce is equal to 
     or is higher than the level of real Gross Domestic Product in 
     the quarter preceding the first two quarters that caused the 
     suspension of the pursuant to paragraph (1).
       ``(B) Adjustment.--
       ``(i) Calculation.--The Secretary shall take level of the 
     debt held by the public on October 1 of the year preceding 
     the date referenced in subparagraph (A) and subtract the 
     limit in subsection (a) for the period of years that includes 
     the date referenced in subparagraph (A).
       ``(ii) Adjustment.--The Secretary shall add the amount 
     calculated under clause (i) to--

       ``(I) the limit in subsection (a) for the period of fiscal 
     years that includes the date referenced in subparagraph (A); 
     and
       ``(II) each subsequent limit.

       ``(e) Adjustment to the Limit for Social Security Reform 
     Provisions that Affect On-Budget Levels.--
       ``(1) Estimate of legislation.--
       ``(A) Calculation.--If social security reform legislation 
     is enacted, OMB shall estimate the amount the debt held by 
     the public will change as a result of the legislation's 
     effect on the level of total outlays and receipts excluding 
     the impact on outlays and receipts of the Federal Old-Age and 
     Survivors Insurance Trust Fund and the Federal Disability 
     Insurance Trust Fund.
       ``(B) Baseline levels.--OMB shall calculate the changes in 
     subparagraph (A) relative to baseline levels for each fiscal 
     year through fiscal year 2010 using current estimates.
       ``(C) Estimate.--OMB shall include the estimate required by 
     this paragraph in the report required under section 252(d) 
     for social security reform legislation.
       ``(2) Adjustment to limit on the debt held by the public.--
     If social security reform legislation is enacted, the 
     Secretary shall adjust the limit on the debt held by the 
     public for each period of fiscal years by the amounts 
     determined under paragraph (1)(A) for the relevant fiscal 
     years included in the report referenced in paragraph (1)(C).
       ``(e) Definitions.--In this section:
       ``(1) Secretary.--The term `Secretary' means the Secretary 
     of the Treasury.
       ``(2) Social security reform legislation.--The term `social 
     security reform legislation' means a bill or joint resolution 
     that is enacted into law and includes a provision stating the 
     following:
       `` `(  ) Social security reform legislation.--For the 
     purposes of the Social Security Surplus Preservation and Debt 
     Reduction Act, this Act constitutes social security reform 
     legislation.'
     This paragraph shall apply only to the first bill or joint 
     resolution enacted into law as described in this paragraph.
       ``(3) Social security reform provisions.--The term `social 
     security reform provisions' means a provision or provisions 
     identified in social security reform legislation stating the 
     following:
       `` `(  ) Social security reform provisions.--For the 
     purposes of the Social Security Surplus Preservation and Debt 
     Reduction Act, ____ of this Act constitutes or constitute 
     social security reform provisions.', with a list of specific 
     provisions in that bill or joint resolution specified in the 
     blank space.''.

     SEC. 205. PRESIDENT'S BUDGET.

       Section 1105(f) of title 31, United States Code, is amended 
     by striking ``in a manner consistent'' and inserting ``in 
     compliance''.

[[Page 7415]]



     SEC. 206. SUNSET.

       This title and the amendments made by this title shall 
     expire on May 1, 2010.
                                  ____


                           Amendment No. 262

       In lieu of the proposed legislative amendment insert the 
     following:
 TITLE II--SOCIAL SECURITY SURPLUS PRESERVATION AND DEBT REDUCTION ACT

     SEC. 201. SHORT TITLE.

       This title may be cited as the ``Social Security Surplus 
     Preservation and Debt Reduction Act''.

     SEC. 202. FINDINGS.

       Congress finds that--
       (1) the $69,246,000,000 unified budget surplus achieved in 
     fiscal year 1998 was entirely due to surpluses generated by 
     the social security trust funds and the cumulative unified 
     budget surpluses projected for subsequent fiscal years are 
     primarily due to surpluses generated by the social security 
     trust funds;
       (2) Congress and the President should balance the budget 
     excluding the surpluses generated by the social security 
     trust funds;
       (3) according to the Congressional Budget Office, balancing 
     the budget excluding the surpluses generated by the social 
     security trust funds will reduce the debt held by the public 
     by a total of $1,723,000,000,000 by the end of fiscal year 
     2009; and
       (4) social security surpluses should be used for social 
     security reform or to reduce the debt held by the public and 
     should not be spent on other programs.

     SEC. 203. PROTECTION OF THE SOCIAL SECURITY TRUST FUNDS.

       (a) Protection by Congress.--
       (1) Reaffirmation of support.--Congress reaffirms its 
     support for the provisions of section 13301 of the Budget 
     Enforcement Act of 1990 that provides that the receipts and 
     disbursements of the social security trust funds shall not be 
     counted for the purposes of the budget submitted by the 
     President, the congressional budget, or the Balanced Budget 
     and Emergency Deficit Control Act of 1985.
       (2) Protection of social security benefits.--If there are 
     sufficient balances in the Federal Old-Age and Survivors 
     Insurance Trust Fund and the Federal Disability Insurance 
     Trust Fund, the Secretary of Treasury shall give priority to 
     the payment of social security benefits required to be paid 
     by law.
       (b) Points of Order.--Section 301 of the Congressional 
     Budget Act of 1974 is amended by adding at the end the 
     following:
       ``(j) Social Security Point of Order.--It shall not be in 
     order in the Senate to consider a concurrent resolution on 
     the budget, an amendment thereto, or a conference report 
     thereon that violates section 13301 of the Budget Enforcement 
     Act of 1990.
       ``(k) Debt Held by the Public Point of Order.--It shall not 
     be in order in the Senate to consider any bill, joint 
     resolution, amendment, motion, or conference report that 
     would--
       ``(1) increase the limit on the debt held by the public in 
     section 253A(a) of the Balanced Budget and Emergency Deficit 
     Control Act of 1985; or
       ``(2) provide additional borrowing authority that would 
     result in the limit on the debt held by the public in section 
     253A(a) of the Balanced Budget and Emergency Deficit Control 
     Act of 1985 being exceeded.
       ``(l) Social Security Surplus Protection Point of Order.--
       ``(1) In general.--It shall not be in order in the Senate 
     to consider a concurrent resolution on the budget, an 
     amendment thereto, or a conference report thereon that sets 
     forth a deficit in any fiscal year.
       ``(2) Exception.--Paragraph (1) shall not apply if--
       ``(A) the limit on the debt held by the public in section 
     253A(a) of the Balanced Budget and Emergency Deficit Control 
     Act of 1985 is suspended; or
       ``(B) the deficit for a fiscal year results solely from the 
     enactment of--
       ``(i) social security reform legislation, as defined in 
     section 253A(e)(2) of the Balanced Budget and Emergency 
     Deficit Control Act of 1985; or
       ``(ii) provisions of legislation that are designated as an 
     emergency requirement pursuant to section 251(b)(2)(A) or 
     252(e) of the Balanced Budget and Emergency Deficit Control 
     Act of 1985.''.
       (c) Supermajority Waiver and Appeal.--Subsections (c)(1) 
     and (d)(2) of section 904 of the Congressional Budget Act of 
     1974 are amended by striking ``305(b)(2),'' and inserting 
     ``301(k), 301(l), 305(b)(2), 318,''.
       (d) Conforming Amendment.--Section 318 of the Congressional 
     Budget Act of 1974, as added by this Act, is amended by 
     adding at the end the following:
       ``(c) Exception for Defense Spending.--Subsection (b) shall 
     not apply against an emergency designation for a provision 
     making discretionary appropriations in the defense 
     category.''.

     SEC. 204. DEDICATION OF SOCIAL SECURITY SURPLUSES TO 
                   REDUCTION IN THE DEBT HELD BY THE PUBLIC.

       (a) Amendments to the Congressional Budget Act of 1974.--
     The Congressional Budget Act of 1974 is amended--
       (1) in section 3, by adding at the end the following:
       ``(11)(A) The term `debt held by the public' means the 
     outstanding face amount of all debt obligations issued by the 
     United States Government that are held by outside investors, 
     including individuals, corporations, State or local 
     governments, foreign governments, and the Federal Reserve 
     System.
       ``(B) For the purpose of this paragraph, the term `face 
     amount', for any month, of any debt 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.
       ``(12) The term `social security surplus' means the amount 
     for a fiscal year that receipts exceed outlays of the Federal 
     Old-Age and Survivors Insurance Trust Fund and the Federal 
     Disability Insurance Trust Fund.'';
       (2) in section 301(a) by--
       (A) redesignating paragraphs (6) and (7) as paragraphs (7) 
     and (8), respectfully; and
       (B) inserting after paragraph (5) the following:
       ``(6) the debt held by the public; and''; and
       (3) in section 310(a) by--
       (A) striking ``or'' at the end of paragraph (3);
       (B) by redesignating paragraph (4) as paragraph (5); and
       (C) inserting the following new paragraph;
       ``(4) specify the amounts by which the statutory limit on 
     the debt held by the public is to be changed and direct the 
     committee having jurisdiction to recommend such change; or''.
       (b) Amendments to the Balanced Budget and Emergency Deficit 
     Control Act of 1985.--The Balanced Budget and Emergency 
     Deficit Control Act of 1985 is amended--
       (1) in section 250, by striking subsection (b) and 
     inserting the following:
       ``(b) General Statement of Purpose.--This part provides for 
     the enforcement of--
       ``(1) a balanced budget excluding the receipts and 
     disbursements of the social security trust funds; and
       ``(2) a limit on the debt held by the public to ensure that 
     social security surpluses are used for social security reform 
     or to reduce debt held by the public and are not spent on 
     other programs.'';
       (2) in section 250(c)(1), by inserting `` ` debt held by 
     the public', `social security surplus' '' after ``outlays', 
     ''; and
       (3) by inserting after section 253 the following:

     ``SEC. 253A. DEBT HELD BY THE PUBLIC LIMIT.

       ``(a) Limit.--The debt held by the public shall not 
     exceed--
       ``(1) for the period beginning May 1, 2000 through April 
     30, 2001, $3,628,000,000,000;
       ``(2) for the period beginning May 1, 2001 through April 
     30, 2002, $3,512,000,000,000;
       ``(3) for the period beginning May 1, 2002 through April 
     30, 2004, $3,383,000,000,000;
       ``(4) for the period beginning May 1, 2004 through April 
     30, 2006, $3,100,000,000,000;
       ``(5) for the period beginning May 1, 2006 through April 
     30, 2008, $2,775,000,000,000; and,
       ``(6) for the period beginning May 1, 2008 through April 
     30, 2010, $2,404,000,000,000.
       ``(b) Adjustments for Actual Social Security Surplus 
     Levels.--
       ``(1) Estimated levels.--The estimated level of social 
     security surpluses for the purposes of this section is--
       ``(A) for fiscal year 1999, $127,000,000,000;
       ``(B) for fiscal year 2000, $137,000,000,000;
       ``(C) for fiscal year 2001, $145,000,000,000;
       ``(D) for fiscal year 2002, $153,000,000,000;
       ``(E) for fiscal year 2003, $162,000,000,000;
       ``(F) for fiscal year 2004, $171,000,000,000;
       ``(G) for fiscal year 2005, $184,000,000,000;
       ``(H) for fiscal year 2006, $193,000,000,000;
       ``(I) for fiscal year 2007, $204,000,000,000;
       ``(J) for fiscal year 2008, $212,000,000,000; and
       ``(K) for fiscal year 2009, $218,000,000,000.
       ``(2) Adjustment to the limit for actual social security 
     surpluses.--After October 1 and no later than December 31 of 
     each year, the Secretary shall make the following 
     calculations and adjustments:
       ``(A) Calculation.--After the Secretary determines the 
     actual level for the social security surplus for the current 
     year, the Secretary shall take the estimated level of the 
     social security surplus for that year specified in paragraph 
     (1) and subtract that actual level.
       ``(B) Adjustment.--
       ``(i) 2000 through 2004.--With respect to the periods 
     described in subsections (a)(1), (a)(2), and (a)(3), the 
     Secretary shall add the amount calculated under subparagraph 
     (A) to--

       ``(I) the limit set forth in subsection (a) for the period 
     of years that begins on May 1st of the following calendar 
     year; and
       ``(II) each subsequent limit.

       ``(ii) 2004 through 2010.--With respect to the periods 
     described in subsections (a)(4), (a)(5), and (a)(6), the 
     Secretary shall add the amount calculated under subparagraph 
     (A) to--

       ``(I) the limit set forth in subsection (a) for the period 
     of years that includes May 1st of the following calendar 
     year; and
       ``(II) each subsequent limit.

       ``(c) Adjustment to the Limit for Emergencies.--
       ``(1) Estimate of legislation.--

[[Page 7416]]

       ``(A) Calculation.--If legislation is enacted into law that 
     contains a provision that is designated as an emergency 
     requirement pursuant to section 251(b)(2)(A) or 252(e), OMB 
     shall estimate the amount the debt held by the public will 
     change as a result of the provision's effect on the level of 
     total outlays and receipts excluding the impact on outlays 
     and receipts of the Federal Old-Age and Survivors Insurance 
     Trust Fund and the Federal Disability Insurance Trust Fund.
       ``(B) Baseline levels.--OMB shall calculate the changes in 
     subparagraph (A) relative to baseline levels for each fiscal 
     year through fiscal year 2010 using current estimates.
       ``(C) Estimate.--OMB shall include the estimate required by 
     this paragraph in the report required under section 251(a)(7) 
     or section 252(d), as the case may be.
       ``(2) Adjustment.--After January 1 and no later than May 1 
     of each calendar year beginning with calendar year 2000--
       ``(A) with respect to the periods described in subsections 
     (a)(1), (a)(2), and (a)(3), the Secretary shall add the 
     amounts calculated under paragraph (1)(A) for the current 
     year included in the report referenced in paragraph (1)(C) 
     to--
       ``(i) the limit set forth in subsection (a) for the period 
     of years that begins on May 1 of that calendar year; and
       ``(ii) each subsequent limit; and
       ``(B) with respect to the periods described in subsections 
     (a)(4), (a)(5), and (a)(6), the Secretary shall add the 
     amounts calculated under paragraph (1)(A) for the current 
     year included in the report referenced in paragraph (1)(C) 
     to--
       ``(i) the limit set forth in subsection (a) for the period 
     of years that includes May 1 of that calendar year; and
       ``(ii) each subsequent limit.
       ``(3) Exception.--The Secretary shall not make the 
     adjustments pursuant to this section if the adjustments for 
     the current year are less than the on-budget surplus for the 
     year before the current year.
       ``(d) Adjustment to the Limit for Low Economic Growth and 
     War.--
       ``(1) Suspension of statutory limit on debt held by the 
     public.--
       ``(A) Low economic growth.--If the most recent of the 
     Department of Commerce's advance, preliminary, or final 
     reports of actual real economic growth indicate that the rate 
     of real economic growth for each of the most recently 
     reported quarter and the immediately preceding quarter is 
     less than 1 percent, the limit on the debt held by the public 
     established in this section is suspended.
       ``(B) War.--If a declaration of war is in effect, the limit 
     on the debt held by the public established in this section is 
     suspended.
       ``(2) Restoration of statutory limit on debt held by the 
     public.--
       ``(A) Restoration of limit.--The statutory limit on debt 
     held by the public shall be restored on May 1 following the 
     quarter in which the level of real Gross Domestic Product in 
     the final report from the Department of Commerce is equal to 
     or is higher than the level of real Gross Domestic Product in 
     the quarter preceding the first two quarters that caused the 
     suspension of the pursuant to paragraph (1).
       ``(B) Adjustment.--
       ``(i) Calculation.--The Secretary shall take level of the 
     debt held by the public on October 1 of the year preceding 
     the date referenced in subparagraph (A) and subtract the 
     limit in subsection (a) for the period of years that includes 
     the date referenced in subparagraph (A).
       ``(ii) Adjustment.--The Secretary shall add the amount 
     calculated under clause (i) to--

       ``(I) the limit in subsection (a) for the period of fiscal 
     years that includes the date referenced in subparagraph (A); 
     and
       ``(II) each subsequent limit.

       ``(e) Adjustment to the Limit for Social Security Reform 
     Provisions that Affect On-Budget Levels.--
       ``(1) Estimate of legislation.--
       ``(A) Calculation.--If social security reform legislation 
     is enacted, OMB shall estimate the amount the debt held by 
     the public will change as a result of the legislation's 
     effect on the level of total outlays and receipts excluding 
     the impact on outlays and receipts of the Federal Old-Age and 
     Survivors Insurance Trust Fund and the Federal Disability 
     Insurance Trust Fund.
       ``(B) Baseline levels.--OMB shall calculate the changes in 
     subparagraph (A) relative to baseline levels for each fiscal 
     year through fiscal year 2010 using current estimates.
       ``(C) Estimate.--OMB shall include the estimate required by 
     this paragraph in the report required under section 252(d) 
     for social security reform legislation.
       ``(2) Adjustment to limit on the debt held by the public.--
     If social security reform legislation is enacted, the 
     Secretary shall adjust the limit on the debt held by the 
     public for each period of fiscal years by the amounts 
     determined under paragraph (1)(A) for the relevant fiscal 
     years included in the report referenced in paragraph (1)(C).
       ``(e) Definitions.--In this section:
       ``(1) Secretary.--The term `Secretary' means the Secretary 
     of the Treasury.
       ``(2) Social security reform legislation.--The term `social 
     security reform legislation' means a bill or joint resolution 
     that is enacted into law and includes a provision stating the 
     following:
       `` `(  ) Social security reform legislation.--For the 
     purposes of the Social Security Surplus Preservation and Debt 
     Reduction Act, this Act constitutes social security reform 
     legislation.'

     This paragraph shall apply only to the first bill or joint 
     resolution enacted into law as described in this paragraph.
       ``(3) Social security reform provisions.--The term `social 
     security reform provisions' means a provision or provisions 
     identified in social security reform legislation stating the 
     following:
       `` `(  ) Social security reform provisions.--For the 
     purposes of the Social Security Surplus Preservation and Debt 
     Reduction Act, ____ of this Act constitutes or constitute 
     social security reform provisions.', with a list of specific 
     provisions in that bill or joint resolution specified in the 
     blank space.''.

     SEC. 205. PRESIDENT'S BUDGET.

       Section 1105(f) of title 31, United States Code, is amended 
     by striking ``in a manner consistent'' and inserting ``in 
     compliance''.

     SEC. 206. SUNSET.

       This title and the amendments made by this title shall 
     expire on May 1, 2010.
                                  ____


                           Amendment No. 263

       In lieu of the proposed legislative amendment insert the 
     following:
 TITLE II--SOCIAL SECURITY SURPLUS PRESERVATION AND DEBT REDUCTION ACT

     SEC. 201. SHORT TITLE.

       This title may be cited as the ``Social Security Surplus 
     Preservation and Debt Reduction Act''.

     SEC. 202. FINDINGS.

       Congress finds that--
       (1) the $69,246,000,000 unified budget surplus achieved in 
     fiscal year 1998 was entirely due to surpluses generated by 
     the social security trust funds and the cumulative unified 
     budget surpluses projected for subsequent fiscal years are 
     primarily due to surpluses generated by the social security 
     trust funds;
       (2) Congress and the President should balance the budget 
     excluding the surpluses generated by the social security 
     trust funds;
       (3) according to the Congressional Budget Office, balancing 
     the budget excluding the surpluses generated by the social 
     security trust funds will reduce the debt held by the public 
     by a total of $1,723,000,000,000 by the end of fiscal year 
     2009; and
       (4) social security surpluses should be used for social 
     security reform or to reduce the debt held by the public and 
     should not be spent on other programs.

     SEC. 203. PROTECTION OF THE SOCIAL SECURITY TRUST FUNDS.

       (a) Protection by Congress.--
       (1) Reaffirmation of support.--Congress reaffirms its 
     support for the provisions of section 13301 of the Budget 
     Enforcement Act of 1990 that provides that the receipts and 
     disbursements of the social security trust funds shall not be 
     counted for the purposes of the budget submitted by the 
     President, the congressional budget, or the Balanced Budget 
     and Emergency Deficit Control Act of 1985.
       (2) Protection of social security benefits.--If there are 
     sufficient balances in the Federal Old-Age and Survivors 
     Insurance Trust Fund and the Federal Disability Insurance 
     Trust Fund, the Secretary of Treasury shall give priority to 
     the payment of social security benefits required to be paid 
     by law.
       (b) Points of Order.--Section 301 of the Congressional 
     Budget Act of 1974 is amended by adding at the end the 
     following:
       ``(j) Social Security Point of Order.--It shall not be in 
     order in the Senate to consider a concurrent resolution on 
     the budget, an amendment thereto, or a conference report 
     thereon that violates section 13301 of the Budget Enforcement 
     Act of 1990.
       ``(k) Debt Held by the Public Point of Order.--It shall not 
     be in order in the Senate to consider any bill, joint 
     resolution, amendment, motion, or conference report that 
     would--
       ``(1) increase the limit on the debt held by the public in 
     section 253A(a) of the Balanced Budget and Emergency Deficit 
     Control Act of 1985; or
       ``(2) provide additional borrowing authority that would 
     result in the limit on the debt held by the public in section 
     253A(a) of the Balanced Budget and Emergency Deficit Control 
     Act of 1985 being exceeded.
       ``(l) Social Security Surplus Protection Point of Order.--
       ``(1) In general.--It shall not be in order in the Senate 
     to consider a concurrent resolution on the budget, an 
     amendment thereto, or a conference report thereon that sets 
     forth a deficit in any fiscal year.
       ``(2) Exception.--Paragraph (1) shall not apply if--
       ``(A) the limit on the debt held by the public in section 
     253A(a) of the Balanced Budget and Emergency Deficit Control 
     Act of 1985 is suspended; or
       ``(B) the deficit for a fiscal year results solely from the 
     enactment of--
       ``(i) social security reform legislation, as defined in 
     section 253A(e)(2) of the Balanced Budget and Emergency 
     Deficit Control Act of 1985; or

[[Page 7417]]

       ``(ii) provisions of legislation that are designated as an 
     emergency requirement pursuant to section 251(b)(2)(A) or 
     252(e) of the Balanced Budget and Emergency Deficit Control 
     Act of 1985.''.
       (c) Supermajority Waiver and Appeal.--Subsections (c)(1) 
     and (d)(2) of section 904 of the Congressional Budget Act of 
     1974 are amended by striking ``305(b)(2),'' and inserting 
     ``301(k), 301(l), 305(b)(2), 318,''.
       (d) Conforming Amendment.--Section 318 of the Congressional 
     Budget Act of 1974, as added by this Act, is amended by 
     adding at the end the following:
       ``(c) Exception for Defense Spending.--Subsection (b) shall 
     not apply against an emergency designation for a provision 
     making discretionary appropriations in the defense 
     category.''.

     SEC. 204. DEDICATION OF SOCIAL SECURITY SURPLUSES TO 
                   REDUCTION IN THE DEBT HELD BY THE PUBLIC.

       (a) Amendments to the Congressional Budget Act of 1974.--
     The Congressional Budget Act of 1974 is amended--
       (1) in section 3, by adding at the end the following:
       ``(11)(A) The term `debt held by the public' means the 
     outstanding face amount of all debt obligations issued by the 
     United States Government that are held by outside investors, 
     including individuals, corporations, State or local 
     governments, foreign governments, and the Federal Reserve 
     System.
       ``(B) For the purpose of this paragraph, the term `face 
     amount', for any month, of any debt 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.
       ``(12) The term `social security surplus' means the amount 
     for a fiscal year that receipts exceed outlays of the Federal 
     Old-Age and Survivors Insurance Trust Fund and the Federal 
     Disability Insurance Trust Fund.'';
       (2) in section 301(a) by--
       (A) redesignating paragraphs (6) and (7) as paragraphs (7) 
     and (8), respectfully; and
       (B) inserting after paragraph (5) the following:
       ``(6) the debt held by the public; and''; and
       (3) in section 310(a) by--
       (A) striking ``or'' at the end of paragraph (3);
       (B) by redesignating paragraph (4) as paragraph (5); and
       (C) inserting the following new paragraph;
       ``(4) specify the amounts by which the statutory limit on 
     the debt held by the public is to be changed and direct the 
     committee having jurisdiction to recommend such change; or''.
       (b) Amendments to the Balanced Budget and Emergency Deficit 
     Control Act of 1985.--The Balanced Budget and Emergency 
     Deficit Control Act of 1985 is amended--
       (1) in section 250, by striking subsection (b) and 
     inserting the following:
       ``(b) General Statement of Purpose.--This part provides for 
     the enforcement of--
       ``(1) a balanced budget excluding the receipts and 
     disbursements of the social security trust funds; and
       ``(2) a limit on the debt held by the public to ensure that 
     social security surpluses are used for social security reform 
     or to reduce debt held by the public and are not spent on 
     other programs.'';
       (2) in section 250(c)(1), by inserting `` ` debt held by 
     the public', `social security surplus' '' after ``outlays', 
     ''; and
       (3) by inserting after section 253 the following:

     ``SEC. 253A. DEBT HELD BY THE PUBLIC LIMIT.

       ``(a) Limit.--The debt held by the public shall not 
     exceed--
       ``(1) for the period beginning May 1, 2000 through April 
     30, 2001, $3,628,000,000,000;
       ``(2) for the period beginning May 1, 2001 through April 
     30, 2002, $3,512,000,000,000;
       ``(3) for the period beginning May 1, 2002 through April 
     30, 2004, $3,383,000,000,000;
       ``(4) for the period beginning May 1, 2004 through April 
     30, 2006, $3,100,000,000,000;
       ``(5) for the period beginning May 1, 2006 through April 
     30, 2008, $2,775,000,000,000; and,
       ``(6) for the period beginning May 1, 2008 through April 
     30, 2010, $2,404,000,000,000.
       ``(b) Adjustments for Actual Social Security Surplus 
     Levels.--
       ``(1) Estimated levels.--The estimated level of social 
     security surpluses for the purposes of this section is--
       ``(A) for fiscal year 1999, $127,000,000,000;
       ``(B) for fiscal year 2000, $137,000,000,000;
       ``(C) for fiscal year 2001, $145,000,000,000;
       ``(D) for fiscal year 2002, $153,000,000,000;
       ``(E) for fiscal year 2003, $162,000,000,000;
       ``(F) for fiscal year 2004, $171,000,000,000;
       ``(G) for fiscal year 2005, $184,000,000,000;
       ``(H) for fiscal year 2006, $193,000,000,000;
       ``(I) for fiscal year 2007, $204,000,000,000;
       ``(J) for fiscal year 2008, $212,000,000,000; and
       ``(K) for fiscal year 2009, $218,000,000,000.
       ``(2) Adjustment to the limit for actual social security 
     surpluses.--After October 1 and no later than December 31 of 
     each year, the Secretary shall make the following 
     calculations and adjustments:
       ``(A) Calculation.--After the Secretary determines the 
     actual level for the social security surplus for the current 
     year, the Secretary shall take the estimated level of the 
     social security surplus for that year specified in paragraph 
     (1) and subtract that actual level.
       ``(B) Adjustment.--
       ``(i) 2000 through 2004.--With respect to the periods 
     described in subsections (a)(1), (a)(2), and (a)(3), the 
     Secretary shall add the amount calculated under subparagraph 
     (A) to--

       ``(I) the limit set forth in subsection (a) for the period 
     of years that begins on May 1st of the following calendar 
     year; and
       ``(II) each subsequent limit.

       ``(ii) 2004 through 2010.--With respect to the periods 
     described in subsections (a)(4), (a)(5), and (a)(6), the 
     Secretary shall add the amount calculated under subparagraph 
     (A) to--

       ``(I) the limit set forth in subsection (a) for the period 
     of years that includes May 1st of the following calendar 
     year; and
       ``(II) each subsequent limit.

       ``(c) Adjustment to the Limit for Emergencies.--
       ``(1) Estimate of legislation.--
       ``(A) Calculation.--If legislation is enacted into law that 
     contains a provision that is designated as an emergency 
     requirement pursuant to section 251(b)(2)(A) or 252(e), OMB 
     shall estimate the amount the debt held by the public will 
     change as a result of the provision's effect on the level of 
     total outlays and receipts excluding the impact on outlays 
     and receipts of the Federal Old-Age and Survivors Insurance 
     Trust Fund and the Federal Disability Insurance Trust Fund.
       ``(B) Baseline levels.--OMB shall calculate the changes in 
     subparagraph (A) relative to baseline levels for each fiscal 
     year through fiscal year 2010 using current estimates.
       ``(C) Estimate.--OMB shall include the estimate required by 
     this paragraph in the report required under section 251(a)(7) 
     or section 252(d), as the case may be.
       ``(2) Adjustment.--After January 1 and no later than May 1 
     of each calendar year beginning with calendar year 2000--
       ``(A) with respect to the periods described in subsections 
     (a)(1), (a)(2), and (a)(3), the Secretary shall add the 
     amounts calculated under paragraph (1)(A) for the current 
     year included in the report referenced in paragraph (1)(C) 
     to--
       ``(i) the limit set forth in subsection (a) for the period 
     of years that begins on May 1 of that calendar year; and
       ``(ii) each subsequent limit; and
       ``(B) with respect to the periods described in subsections 
     (a)(4), (a)(5), and (a)(6), the Secretary shall add the 
     amounts calculated under paragraph (1)(A) for the current 
     year included in the report referenced in paragraph (1)(C) 
     to--
       ``(i) the limit set forth in subsection (a) for the period 
     of years that includes May 1 of that calendar year; and
       ``(ii) each subsequent limit.
       ``(3) Exception.--The Secretary shall not make the 
     adjustments pursuant to this section if the adjustments for 
     the current year are less than the on-budget surplus for the 
     year before the current year.
       ``(d) Adjustment to the Limit for Low Economic Growth and 
     War.--
       ``(1) Suspension of statutory limit on debt held by the 
     public.--
       ``(A) Low economic growth.--If the most recent of the 
     Department of Commerce's advance, preliminary, or final 
     reports of actual real economic growth indicate that the rate 
     of real economic growth for each of the most recently 
     reported quarter and the immediately preceding quarter is 
     less than 1 percent, the limit on the debt held by the public 
     established in this section is suspended.
       ``(B) War.--If a declaration of war is in effect, the limit 
     on the debt held by the public established in this section is 
     suspended.
       ``(2) Restoration of statutory limit on debt held by the 
     public.--
       ``(A) Restoration of limit.--The statutory limit on debt 
     held by the public shall be restored on May 1 following the 
     quarter in which the level of real Gross Domestic Product in 
     the final report from the Department of Commerce is equal to 
     or is higher than the level of real Gross Domestic Product in 
     the quarter preceding the first two quarters that caused the 
     suspension of the pursuant to paragraph (1).
       ``(B) Adjustment.--
       ``(i) Calculation.--The Secretary shall take level of the 
     debt held by the public on October 1 of the year preceding 
     the date referenced in subparagraph (A) and subtract the 
     limit in subsection (a) for the period of years that includes 
     the date referenced in subparagraph (A).
       ``(ii) Adjustment.--The Secretary shall add the amount 
     calculated under clause (i) to--

       ``(I) the limit in subsection (a) for the period of fiscal 
     years that includes the date referenced in subparagraph (A); 
     and
       ``(II) each subsequent limit.

       ``(e) Adjustment to the Limit for Social Security Reform 
     Provisions that Affect On-Budget Levels.--
       ``(1) Estimate of legislation.--
       ``(A) Calculation.--If social security reform legislation 
     is enacted, OMB shall estimate the amount the debt held by 
     the public

[[Page 7418]]

     will change as a result of the legislation's effect on the 
     level of total outlays and receipts excluding the impact on 
     outlays and receipts of the Federal Old-Age and Survivors 
     Insurance Trust Fund and the Federal Disability Insurance 
     Trust Fund.
       ``(B) Baseline levels.--OMB shall calculate the changes in 
     subparagraph (A) relative to baseline levels for each fiscal 
     year through fiscal year 2010 using current estimates.
       ``(C) Estimate.--OMB shall include the estimate required by 
     this paragraph in the report required under section 252(d) 
     for social security reform legislation.
       ``(2) Adjustment to limit on the debt held by the public.--
     If social security reform legislation is enacted, the 
     Secretary shall adjust the limit on the debt held by the 
     public for each period of fiscal years by the amounts 
     determined under paragraph (1)(A) for the relevant fiscal 
     years included in the report referenced in paragraph (1)(C).
       ``(e) Definitions.--In this section:
       ``(1) Secretary.--The term `Secretary' means the Secretary 
     of the Treasury.
       ``(2) Social security reform legislation.--The term `social 
     security reform legislation' means a bill or joint resolution 
     that is enacted into law and includes a provision stating the 
     following:
       `` `(  ) Social security reform legislation.--For the 
     purposes of the Social Security Surplus Preservation and Debt 
     Reduction Act, this Act constitutes social security reform 
     legislation.'
     This paragraph shall apply only to the first bill or joint 
     resolution enacted into law as described in this paragraph.
       ``(3) Social security reform provisions.--The term `social 
     security reform provisions' means a provision or provisions 
     identified in social security reform legislation stating the 
     following:
       `` `(  ) Social security reform provisions.--For the 
     purposes of the Social Security Surplus Preservation and Debt 
     Reduction Act, ____ of this Act constitutes or constitute 
     social security reform provisions.', with a list of specific 
     provisions in that bill or joint resolution specified in the 
     blank space.''.

     SEC. 205. PRESIDENT'S BUDGET.

       Section 1105(f) of title 31, United States Code, is amended 
     by striking ``in a manner consistent'' and inserting ``in 
     compliance''.

     SEC. 206. SUNSET.

       This title and the amendments made by this title shall 
     expire on May 1, 2010.
                                  ____


                           Amendment No. 264

       In lieu of the proposed legislative amendment insert the 
     following:
 TITLE II--SOCIAL SECURITY SURPLUS PRESERVATION AND DEBT REDUCTION ACT

     SEC. 201. SHORT TITLE.

       This title may be cited as the ``Social Security Surplus 
     Preservation and Debt Reduction Act''.

     SEC. 202. FINDINGS.

       Congress finds that--
       (1) the $69,246,000,000 unified budget surplus achieved in 
     fiscal year 1998 was entirely due to surpluses generated by 
     the social security trust funds and the cumulative unified 
     budget surpluses projected for subsequent fiscal years are 
     primarily due to surpluses generated by the social security 
     trust funds;
       (2) Congress and the President should balance the budget 
     excluding the surpluses generated by the social security 
     trust funds;
       (3) according to the Congressional Budget Office, balancing 
     the budget excluding the surpluses generated by the social 
     security trust funds will reduce the debt held by the public 
     by a total of $1,723,000,000,000 by the end of fiscal year 
     2009; and
       (4) social security surpluses should be used for social 
     security reform or to reduce the debt held by the public and 
     should not be spent on other programs.

     SEC. 203. PROTECTION OF THE SOCIAL SECURITY TRUST FUNDS.

       (a) Protection by Congress.--
       (1) Reaffirmation of support.--Congress reaffirms its 
     support for the provisions of section 13301 of the Budget 
     Enforcement Act of 1990 that provides that the receipts and 
     disbursements of the social security trust funds shall not be 
     counted for the purposes of the budget submitted by the 
     President, the congressional budget, or the Balanced Budget 
     and Emergency Deficit Control Act of 1985.
       (2) Protection of social security benefits.--If there are 
     sufficient balances in the Federal Old-Age and Survivors 
     Insurance Trust Fund and the Federal Disability Insurance 
     Trust Fund, the Secretary of Treasury shall give priority to 
     the payment of social security benefits required to be paid 
     by law.
       (b) Points of Order.--Section 301 of the Congressional 
     Budget Act of 1974 is amended by adding at the end the 
     following:
       ``(j) Social Security Point of Order.--It shall not be in 
     order in the Senate to consider a concurrent resolution on 
     the budget, an amendment thereto, or a conference report 
     thereon that violates section 13301 of the Budget Enforcement 
     Act of 1990.
       ``(k) Debt Held by the Public Point of Order.--It shall not 
     be in order in the Senate to consider any bill, joint 
     resolution, amendment, motion, or conference report that 
     would--
       ``(1) increase the limit on the debt held by the public in 
     section 253A(a) of the Balanced Budget and Emergency Deficit 
     Control Act of 1985; or
       ``(2) provide additional borrowing authority that would 
     result in the limit on the debt held by the public in section 
     253A(a) of the Balanced Budget and Emergency Deficit Control 
     Act of 1985 being exceeded.
       ``(l) Social Security Surplus Protection Point of Order.--
       ``(1) In general.--It shall not be in order in the Senate 
     to consider a concurrent resolution on the budget, an 
     amendment thereto, or a conference report thereon that sets 
     forth a deficit in any fiscal year.
       ``(2) Exception.--Paragraph (1) shall not apply if--
       ``(A) the limit on the debt held by the public in section 
     253A(a) of the Balanced Budget and Emergency Deficit Control 
     Act of 1985 is suspended; or
       ``(B) the deficit for a fiscal year results solely from the 
     enactment of--
       ``(i) social security reform legislation, as defined in 
     section 253A(e)(2) of the Balanced Budget and Emergency 
     Deficit Control Act of 1985; or
       ``(ii) provisions of legislation that are designated as an 
     emergency requirement pursuant to section 251(b)(2)(A) or 
     252(e) of the Balanced Budget and Emergency Deficit Control 
     Act of 1985.''.
       (c) Supermajority Waiver and Appeal.--Subsections (c)(1) 
     and (d)(2) of section 904 of the Congressional Budget Act of 
     1974 are amended by striking ``305(b)(2),'' and inserting 
     ``301(k), 301(l), 305(b)(2), 318,''.
       (d) Conforming Amendment.--Section 318 of the Congressional 
     Budget Act of 1974, as added by this Act, is amended by 
     adding at the end the following:
       ``(c) Exception for Defense Spending.--Subsection (b) shall 
     not apply against an emergency designation for a provision 
     making discretionary appropriations in the defense 
     category.''.

     SEC. 204. DEDICATION OF SOCIAL SECURITY SURPLUSES TO 
                   REDUCTION IN THE DEBT HELD BY THE PUBLIC.

       (a) Amendments to the Congressional Budget Act of 1974.--
     The Congressional Budget Act of 1974 is amended--
       (1) in section 3, by adding at the end the following:
       ``(11)(A) The term `debt held by the public' means the 
     outstanding face amount of all debt obligations issued by the 
     United States Government that are held by outside investors, 
     including individuals, corporations, State or local 
     governments, foreign governments, and the Federal Reserve 
     System.
       ``(B) For the purpose of this paragraph, the term `face 
     amount', for any month, of any debt 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.
       ``(12) The term `social security surplus' means the amount 
     for a fiscal year that receipts exceed outlays of the Federal 
     Old-Age and Survivors Insurance Trust Fund and the Federal 
     Disability Insurance Trust Fund.'';
       (2) in section 301(a) by--
       (A) redesignating paragraphs (6) and (7) as paragraphs (7) 
     and (8), respectfully; and
       (B) inserting after paragraph (5) the following:
       ``(6) the debt held by the public; and''; and
       (3) in section 310(a) by--
       (A) striking ``or'' at the end of paragraph (3);
       (B) by redesignating paragraph (4) as paragraph (5); and
       (C) inserting the following new paragraph;
       ``(4) specify the amounts by which the statutory limit on 
     the debt held by the public is to be changed and direct the 
     committee having jurisdiction to recommend such change; or''.
       (b) Amendments to the Balanced Budget and Emergency Deficit 
     Control Act of 1985.--The Balanced Budget and Emergency 
     Deficit Control Act of 1985 is amended--
       (1) in section 250, by striking subsection (b) and 
     inserting the following:
       ``(b) General Statement of Purpose.--This part provides for 
     the enforcement of--
       ``(1) a balanced budget excluding the receipts and 
     disbursements of the social security trust funds; and
       ``(2) a limit on the debt held by the public to ensure that 
     social security surpluses are used for social security reform 
     or to reduce debt held by the public and are not spent on 
     other programs.'';
       (2) in section 250(c)(1), by inserting `` ` debt held by 
     the public', `social security surplus' '' after ``outlays', 
     ''; and
       (3) by inserting after section 253 the following:

     ``SEC. 253A. DEBT HELD BY THE PUBLIC LIMIT.

       ``(a) Limit.--The debt held by the public shall not 
     exceed--
       ``(1) for the period beginning May 1, 2000 through April 
     30, 2001, $3,628,000,000,000;
       ``(2) for the period beginning May 1, 2001 through April 
     30, 2002, $3,512,000,000,000;
       ``(3) for the period beginning May 1, 2002 through April 
     30, 2004, $3,383,000,000,000;
       ``(4) for the period beginning May 1, 2004 through April 
     30, 2006, $3,100,000,000,000;

[[Page 7419]]

       ``(5) for the period beginning May 1, 2006 through April 
     30, 2008, $2,775,000,000,000; and,
       ``(6) for the period beginning May 1, 2008 through April 
     30, 2010, $2,404,000,000,000.
       ``(b) Adjustments for Actual Social Security Surplus 
     Levels.--
       ``(1) Estimated levels.--The estimated level of social 
     security surpluses for the purposes of this section is--
       ``(A) for fiscal year 1999, $127,000,000,000;
       ``(B) for fiscal year 2000, $137,000,000,000;
       ``(C) for fiscal year 2001, $145,000,000,000;
       ``(D) for fiscal year 2002, $153,000,000,000;
       ``(E) for fiscal year 2003, $162,000,000,000;
       ``(F) for fiscal year 2004, $171,000,000,000;
       ``(G) for fiscal year 2005, $184,000,000,000;
       ``(H) for fiscal year 2006, $193,000,000,000;
       ``(I) for fiscal year 2007, $204,000,000,000;
       ``(J) for fiscal year 2008, $212,000,000,000; and
       ``(K) for fiscal year 2009, $218,000,000,000.
       ``(2) Adjustment to the limit for actual social security 
     surpluses.--After October 1 and no later than December 31 of 
     each year, the Secretary shall make the following 
     calculations and adjustments:
       ``(A) Calculation.--After the Secretary determines the 
     actual level for the social security surplus for the current 
     year, the Secretary shall take the estimated level of the 
     social security surplus for that year specified in paragraph 
     (1) and subtract that actual level.
       ``(B) Adjustment.--
       ``(i) 2000 through 2004.--With respect to the periods 
     described in subsections (a)(1), (a)(2), and (a)(3), the 
     Secretary shall add the amount calculated under subparagraph 
     (A) to--

       ``(I) the limit set forth in subsection (a) for the period 
     of years that begins on May 1st of the following calendar 
     year; and
       ``(II) each subsequent limit.

       ``(ii) 2004 through 2010.--With respect to the periods 
     described in subsections (a)(4), (a)(5), and (a)(6), the 
     Secretary shall add the amount calculated under subparagraph 
     (A) to--

       ``(I) the limit set forth in subsection (a) for the period 
     of years that includes May 1st of the following calendar 
     year; and
       ``(II) each subsequent limit.

       ``(c) Adjustment to the Limit for Emergencies.--
       ``(1) Estimate of legislation.--
       ``(A) Calculation.--If legislation is enacted into law that 
     contains a provision that is designated as an emergency 
     requirement pursuant to section 251(b)(2)(A) or 252(e), OMB 
     shall estimate the amount the debt held by the public will 
     change as a result of the provision's effect on the level of 
     total outlays and receipts excluding the impact on outlays 
     and receipts of the Federal Old-Age and Survivors Insurance 
     Trust Fund and the Federal Disability Insurance Trust Fund.
       ``(B) Baseline levels.--OMB shall calculate the changes in 
     subparagraph (A) relative to baseline levels for each fiscal 
     year through fiscal year 2010 using current estimates.
       ``(C) Estimate.--OMB shall include the estimate required by 
     this paragraph in the report required under section 251(a)(7) 
     or section 252(d), as the case may be.
       ``(2) Adjustment.--After January 1 and no later than May 1 
     of each calendar year beginning with calendar year 2000--
       ``(A) with respect to the periods described in subsections 
     (a)(1), (a)(2), and (a)(3), the Secretary shall add the 
     amounts calculated under paragraph (1)(A) for the current 
     year included in the report referenced in paragraph (1)(C) 
     to--
       ``(i) the limit set forth in subsection (a) for the period 
     of years that begins on May 1 of that calendar year; and
       ``(ii) each subsequent limit; and
       ``(B) with respect to the periods described in subsections 
     (a)(4), (a)(5), and (a)(6), the Secretary shall add the 
     amounts calculated under paragraph (1)(A) for the current 
     year included in the report referenced in paragraph (1)(C) 
     to--
       ``(i) the limit set forth in subsection (a) for the period 
     of years that includes May 1 of that calendar year; and
       ``(ii) each subsequent limit.
       ``(3) Exception.--The Secretary shall not make the 
     adjustments pursuant to this section if the adjustments for 
     the current year are less than the on-budget surplus for the 
     year before the current year.
       ``(d) Adjustment to the Limit for Low Economic Growth and 
     War.--
       ``(1) Suspension of statutory limit on debt held by the 
     public.--
       ``(A) Low economic growth.--If the most recent of the 
     Department of Commerce's advance, preliminary, or final 
     reports of actual real economic growth indicate that the rate 
     of real economic growth for each of the most recently 
     reported quarter and the immediately preceding quarter is 
     less than 1 percent, the limit on the debt held by the public 
     established in this section is suspended.
       ``(B) War.--If a declaration of war is in effect, the limit 
     on the debt held by the public established in this section is 
     suspended.
       ``(2) Restoration of statutory limit on debt held by the 
     public.--
       ``(A) Restoration of limit.--The statutory limit on debt 
     held by the public shall be restored on May 1 following the 
     quarter in which the level of real Gross Domestic Product in 
     the final report from the Department of Commerce is equal to 
     or is higher than the level of real Gross Domestic Product in 
     the quarter preceding the first two quarters that caused the 
     suspension of the pursuant to paragraph (1).
       ``(B) Adjustment.--
       ``(i) Calculation.--The Secretary shall take level of the 
     debt held by the public on October 1 of the year preceding 
     the date referenced in subparagraph (A) and subtract the 
     limit in subsection (a) for the period of years that includes 
     the date referenced in subparagraph (A).
       ``(ii) Adjustment.--The Secretary shall add the amount 
     calculated under clause (i) to--

       ``(I) the limit in subsection (a) for the period of fiscal 
     years that includes the date referenced in subparagraph (A); 
     and
       ``(II) each subsequent limit.

       ``(e) Adjustment to the Limit for Social Security Reform 
     Provisions that Affect On-Budget Levels.--
       ``(1) Estimate of legislation.--
       ``(A) Calculation.--If social security reform legislation 
     is enacted, OMB shall estimate the amount the debt held by 
     the public will change as a result of the legislation's 
     effect on the level of total outlays and receipts excluding 
     the impact on outlays and receipts of the Federal Old-Age and 
     Survivors Insurance Trust Fund and the Federal Disability 
     Insurance Trust Fund.
       ``(B) Baseline levels.--OMB shall calculate the changes in 
     subparagraph (A) relative to baseline levels for each fiscal 
     year through fiscal year 2010 using current estimates.
       ``(C) Estimate.--OMB shall include the estimate required by 
     this paragraph in the report required under section 252(d) 
     for social security reform legislation.
       ``(2) Adjustment to limit on the debt held by the public.--
     If social security reform legislation is enacted, the 
     Secretary shall adjust the limit on the debt held by the 
     public for each period of fiscal years by the amounts 
     determined under paragraph (1)(A) for the relevant fiscal 
     years included in the report referenced in paragraph (1)(C).
       ``(e) Definitions.--In this section:
       ``(1) Secretary.--The term `Secretary' means the Secretary 
     of the Treasury.
       ``(2) Social security reform legislation.--The term `social 
     security reform legislation' means a bill or joint resolution 
     that is enacted into law and includes a provision stating the 
     following:
       `` `(  ) Social security reform legislation.--For the 
     purposes of the Social Security Surplus Preservation and Debt 
     Reduction Act, this Act constitutes social security reform 
     legislation.'
     This paragraph shall apply only to the first bill or joint 
     resolution enacted into law as described in this paragraph.
       ``(3) Social security reform provisions.--The term `social 
     security reform provisions' means a provision or provisions 
     identified in social security reform legislation stating the 
     following:
       `` `(  ) Social security reform provisions.--For the 
     purposes of the Social Security Surplus Preservation and Debt 
     Reduction Act, ____ of this Act constitutes or constitute 
     social security reform provisions.', with a list of specific 
     provisions in that bill or joint resolution specified in the 
     blank space.''.

     SEC. 205. PRESIDENT'S BUDGET.

       Section 1105(f) of title 31, United States Code, is amended 
     by striking ``in a manner consistent'' and inserting ``in 
     compliance''.

     SEC. 206. SUNSET.

       This title and the amendments made by this title shall 
     expire on May 1, 2010.

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