article: SECTION 1. SHORT TITLE. This Act may be cited as the ``Highway Trust Fund Integrity Act of 1997''. SEC. 2. FINDINGS. Congress finds that-- (1)(A) the Budget Enforcement Act of 1990 split the Federal budgeting process into two budget categories, one for receipts and mandatory spending and the other for discretionary spending; and (B) each budget category has its own rules, procedures, and incentives; (2) the taxes deposited into the Highway Trust Fund are in the mandatory category, but most spending from the Highway Trust Fund is in the discretionary category; (3) since the Highway Trust Fund is split between the two budget categories, the link between Highway Trust Fund taxes and transportation spending is severed; and (4) to reestablish the link between the taxes and spending of the Highway Trust Fund, all the components of the Highway Trust Fund should be part of the same budget category and subject to the same budget rules and procedures. SEC. 3. DEFINITION. (a) Balanced Budget and Emergency Deficit Control Act of 1985.-- Section 250(c) of the Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 900(c)) is amended by adding at the end the following: ``(22) Revenue constrained fund.--The term `revenue constrained fund'-- ``(A) means the budget authority, outlays, and receipts of the-- ``(i) the Highway Account of the Highway Trust Fund as established by section 9503 of the Internal Revenue Code of 1986; ``(B) shall not be-- ``(i) considered to be part of any category (as defined in section 250(c)(4) of the Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 900(c)(4))) of discretionary appropriations; or ``(ii) subject to sequestration under section 251(a) of the Act (2 U.S.C. 901(a)); and ``(C) shall not be-- ``(i) considered to be part of direct spending (as defined in section 250(c)(8) of the Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 900(c)(8))); or ``(ii) subject to sequestration under section 252(b) of the Act (2 U.S.C. 902(b)).''. (b) Congressional Budget Act of 1974.--Section 3 of the Congressional Budget Act of 1974 (2 U.S.C. 622) is amended by adding at the end thereof the following: ``(11) Revenue constrained fund.--The term `revenue constrained fund' has the meaning given that term in section 250(c) of the Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 900(c)).''. SEC. 4. BUDGETARY TREATMENT. (a) In General.--Part A of title IV of the Congressional Budget Act of 1974 (2 U.S.C. 651 et seq.) is amended by adding at the end the following: ``revenue constrained funds ``Sec. 408. It shall not be in order in either the House of Representatives or the Senate to consider any bill, joint resolution, amendment, motion, conference report, or other measure if the effect of the measure would have the effect of increasing any specific new budget authority for a fiscal year for a revenue constrained fund above the amount made available by section 251B(b)(2) of the Balanced Budget and Emergency Deficit Control Act of 1985.''. (b) Point of Order.--Subsections (c) and (d) of section 904 of the Congressional Budget Act of 1974 are each amended by inserting after ``306,'' the following: ``408,''. (c) Amendment to Table of Contents.--The table of contents for the Congressional Budget Impoundment Control Act of 1974 is amended by adding at the end of title IV the following: ``Sec. 408. Revenue constrained funds.''. SEC. 5. SEQUESTER. (a) In General.--Part C of the Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 900 et seq.) is amended by inserting after section 251A the following: ``SEC. 251B. SEQUESTRATION WITH RESPECT TO REVENUE CONSTRAINED FUNDS. ``(a) Budget Authority Limits.--Amounts available from a revenue constrained fund shall be reduced by the amount necessary to eliminate any amount by which budget authority in the budget year from the revenue constrained fund exceed the amount deposited in the revenue constrained fund in the previous fiscal year. ``(b) Amount Available.-- ``(1) Initial estimate.-- ``(A) In general.--On October 1 of each year OMB shall estimate the total amount of revenues deposited into each revenue constrained fund during the previous fiscal year. ``(B) Initial amount available.--An amount equal to 40 percent of the total amount of revenues is estimated to be deposited in a revenue constrained fund under subparagraph (A) shall be available for obligation in the budget year on the date of the estimate under subparagraph (A). ``(2) Final estimate.-- ``(A) In general.--On December 15 of each year OMB shall determine the total amount of revenues deposited into each revenue constrained fund during the previous fiscal year. ``(B) Amount available.--An amount equal to the total amount of revenues determined to be deposited in a revenue constrained fund under subparagraph (A)-- ``(i) shall be the total amount available for obligation in the budget year on the date of the determination under subparagraph (A); and ``(ii) shall replace the amount made available under paragraph (1). ``(c) Look-Back.--If-- ``(1) an appropriation for the fiscal year in progress is enacted that causes a budgetary excess in a revenue constrained fund as described in subsection (a) for that year; or ``(2) errors in the determination made pursuant to subsection (b)(2) cause a budgetary excess in a revenue constrained fund for the fiscal year in progress; the level set forth in subsection (b)(2) for the next fiscal year shall be reduced by the amount of that excess.''. (b) Amendment to Table of Contents.--The table of contents for the Balanced Budget and Emergency Deficit Control Act of 1985 is amended by adding after the item for section 251A the following: ``Sec. 251B. Sequestration with respect to revenue constrained funds.''. SEC. 5. BUDGETARY IMPACT. (a) Findings and Purpose.-- (1) Findings.--The Congress finds that-- (A) the United States has substantial surface transportation and infrastructure needs; and (B) this Act will result in additional spending from the Highway Account of the Highway Trust Fund to help address these substantial needs. (2) Purpose.--The purpose of this section is to clarify that any budgetary offset necessary because of the additional spending provided by this Act should not come from surface transportation programs. (b) Sequestration.--The budgetary impact of the amendments made by this Act shall not be considered for purposes of sequestration under sections 251 or 252 of the Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 901, 902). (c) Discretionary Spending Limitations.--OMB shall reduce discretionary spending limits for budget authority and outlays in accordance with the Balanced Budget and Emergency Deficit Control Act of 1985 for each applicable fiscal year set forth in section 601(a)(2)-- (1) for budget authority, by an amount equal to the total amount of discretionary budget authority provided from the Highway Account of the Highway Trust Fund in the Department of Transportation and Related Agencies Appropriations Act, 1997; and (2) for outlays, by an amount equal to an estimate of the amount of discretionary outlays that would be expended from the Highway Account of the Highway Trust Fund assuming that the total amount of new budget authority and obligation authority from the Highway Account of the Highway Trust Fund equaled the amounts of new budget authority and obligation authority provided from the Highway Account of the Highway Trust Fund in the Department of Transportation and Related Agencies Appropriations Act, 1997. SEC. 6. STUDY TO ENSURE THAT THE HIGHWAY TRUST FUND IS DEFICIT NEUTRAL. (a) Findings.--The Congress finds the following: (1) It is the policy of the United States Government that the Highway Trust Fund should not contribute to or reduce the Federal Government's annual budget deficit. (2) Under current budgetary scorekeeping conventions used by both the Congressional Budget Office and the Office of Management and Budget, increases in Highway Trust Fund revenue generated by tax increases are partially offset by a reduction in other Federal revenues that is equal to 25 percent of the increase in Highway Trust Fund revenue. (3) This 25 percent offset is a scorekeeping convention that applies to all excise taxes, and is not uniquely applied to Highway Trust Fund taxes. (4) An up-to-date examination of how this offset should be applied to Highway Trust Fund taxes is needed. (b) Report.-- (1) In general.--Not later than 24 months after the date of enactment of this Act, the Secretary of Treasury, in consultation with the Director of the Office of Management and Budget, shall submit a report to Congress on ensuring the deficit neutrality of the Highway Trust Fund. (2) Contents.--In the report, the Secretary shall-- (A) determine the extent to which each of the taxes deposited into the Highway Trust Fund is a deductible expense from other Federal taxes; (B) provide an estimate of the amount of Highway Trust Fund taxes that were deducted from Federal income taxes or other taxes; (C) provide an estimate of the annual revenue loss because Highway Trust Fund taxes are deductible from other Federal taxes; (D) determine the appropriate scorekeeping convention that should apply to Highway Trust Fund taxes, or if needed, separately to each of the taxes now deposited into the Highway Trust Fund; and (E) provide the Congress with policy options that would ensure that changes to the Highway Trust Fund taxes do not contribute to the deficit.
summary: Highway Trust Fund Integrity Act of 1997 - Amends the Balanced Budget and Emergency Deficit Control Act of 1985 (Gramm-Rudman-Hollings Act) and the Congressional Budget Act of 1974 to define "revenue constrained fund" (fund) as the budget authority, outlays, and receipts of the Highway Account of the Highway Trust Fund. States that such fund shall not be: (1) considered part of any discretionary funding category or part of direct spending; or (2) subject to sequestration. Amends the Congressional Budget Act of 1974 to prohibit any House of Representatives or Senate measure that would increase fiscal year budget authority for a fund above an amount made available under the Balanced Budget and Emergency Deficit Control Act of 1985. Amends the Balanced Budget and Emergency Deficit Control Act of 1985 to reduce available fund amounts so as not to exceed the previous year's deposited fund amounts. States that any budgetary offset necessary because of additional spending provided by this Act should not come from surface transportation programs. Directs the Secretary of the Treasury to report on ensuring the deficit neutrality of the Highway Trust Fund.