Fiscal Summary
Increase State Expenditures - $7,400/One-Time
Bill Summary
Article V of the U.S. Constitution requires congress to call a convention for proposing amendments to the constitution on the application of the legislatures of 2/3 of the states.
BALANCED BUDGET AMENDMENT
This bill enacts the Compact for a Balanced Budget (the "compact"). Once 3/4 of the states are compact members, an application will be made to request that congress call a convention to propose ratification of a balanced budget amendment that:
(1) Prohibits total outlays of the federal government from exceeding total receipts at any point in time, unless the excess of outlays over receipts is financed exclusively by debt issued in strict conformity with the proposed amendment;
(2) Prohibits outstanding debt from exceeding authorized debt, which initially shall be an amount equal to 105 percent of the outstanding debt on the date that the proposed amendment is ratified by three-fourths of the states. Authorized debt must not be increased above the initial amount unless such increase is first approved by the legislatures of the several states as provided in (3);
(3) Authorizes congress to increase authorized debt to an amount in excess of its initial amount set in (2) only if it first publicly refers to the legislatures of the several states an unconditional, single subject measure proposing the amount of such increase, and the measure is thereafter publicly and unconditionally approved by a simple majority of the legislatures of the several states; provided that no inducement requiring an expenditure or tax levy shall be demanded, offered, or accepted as a quid pro quo for such approval. If such approval is not obtained within 60 calendar days after referral then the measure will be deemed disapproved and the authorized debt shall thereby remain unchanged;
(4) Whenever the outstanding debt exceeds 98 percent of the debt limit set by (2), requires the president to enforce the debt limit by publicly designating specific expenditures for impoundment in an amount sufficient to ensure outstanding debt shall not exceed the authorized debt. The impoundment will become effective 30 days thereafter, unless congress first designates an alternate impoundment of the same or greater amount by concurrent resolution, which shall become immediately effective. The failure of the president to designate or enforce the required impoundment will be an impeachable misdemeanor. Any purported issuance or incurrence of any debt in excess of the debt limit set by (2) will be void; and
(5) Requires any new or increases general revenue tax to receive approval by a two-thirds roll call vote of the whole number of each house of congress in order to take effect.
According to this bill, passage of this bill constitutes prospective ratification of the balanced budget amendment should congress refer the amendment for ratification by 3/4 of the states.
Compact Commission
According to this bill, once two states enact the compact, a three-member compact commission will be created with each member state having one member on the commission. As each additional state enacts the compact, such state will be entitled to appoint a member on the commission. The functions of the commission are:
(1) To appoint and oversee a compact administrator;
(2) To encourage states to join the compact and congress to call the convention in accordance with the compact;
(3) To coordinate the performance of obligations under the compact;
(4) To oversee the convention's logistical operations, as appropriate, to ensure this compact governs its proceedings;
(5) To oversee the defense and enforcement of the compact in appropriate legal venues;
(6) To request funds and to disburse those funds to support the operations of the commission, compact administrator, and convention; and
(7) To cooperate with any entity that shares a common interest with the commission and engages in policy research, public interest litigation, or lobbying in support of the purposes of the compact.
The compact administrator will be required to provide notices of key events, such as a state joining the compact, 3/4 of the states joining the compact, and congress calling a convention contemplated by the compact.
CONVENTION
Once called by congress, states will hold a convention in Dallas, Texas, to propose amendments that will be limited to consideration of the balanced budget amendment described in this Bill Summary. Each state will be entitled to three delegates, who shall be the governor, speaker of the house, and speaker of the senate, who are serving on the date that this bill becomes a law, or their respective designee. The full text of this bill describes oaths, contractual obligations, recall provisions, procedural rules, and limitations on the authority of delegates, the purpose of which are to prohibit the consideration by the convention of any constitutional amendments other than the balanced budget amendment. The convention is to last no more than 24 hours.
MISCELLANEOUS PROVISIONS
The chief law enforcement officer of each compact member state will be authorized to defend the compact from legal challenges and to seek monetary and equitable relief to enforce the compact.
The venue for any legal action arising under the compact is the U.S. district court for the northern district of Texas or state courts within the northern district's geographic territory, unless waived by the commission.
The compact will terminate upon the earlier of ratification of the balanced budget amendment or seven years after the first state enacts the compact.
