text: 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.
target: 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.
feat_title: Highway Trust Fund Integrity Act of 1997