A joint resolution increasing the statutory limit on the public debt.

(Measure passed Senate, amended, roll call #208 (47-40))

Title I: (Not Present)

Title II: Social Security Trust Funds - Social Security Trust Funds Management Act of 1986 - Amends title II (Old Age, Survivors and Disability Insurance) of the Social Security Act to direct the Managing Trustee of the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund (OASDI trust funds), as soon as possible without exceeding the public debt limit or jeopardizing the timely payment of OASDI benefits, to invest any amounts in the trust funds that have not been invested solely by reason of the public debt limit, if the taxes with respect to which such amounts were appropriated have been received in the general fund of the Treasury. Eliminates such receipt of taxes requirement on July 1, 1990. Defines the term "debt limit impact period" as any period for which the Secretary of the Treasury determines that the issuance of Government obligations sufficient to conduct the financial operations of the United States may not be made without exceeding the public debt limit. Requires the Managing Trustee, upon expiration of any debt limit impact period, to: (1) reissue to each OASDI fund obligations identical to obligations which were redeemed during such period and which would not have been redeemed if such period had not occurred; (2) issue to each OASDI trust fund obligations identical to obligations which were not issued during such period but which would have been issued if such period had not occurred; and (3) pay to each OASDI trust fund an amount equal to the interest such trust fund failed to earn because of redemptions, disinvestments, or the lack of investments during a debt limit impact period solely by reason of the public debt limit.

Provides for the immediate availability of OASDI tax receipts exclusively for purposes of the OASDI program upon their transfer from the general fund of the Treasury. Requires such transfer to occur upon the receipt of such taxes by the Treasury. (Currently, monthly transfers are made.)

Requires members of the OASDI trust funds' Board of Trustees to faithfully execute their duties, but does not impose a fiduciary duty. Requires the Board to meet at least twice each year. Sets forth provisions requiring reports by the Board to the Congress and the Managing Trustee to the Board and the Congress on the status and operation of the OASDI trust funds during any debt limit impact period.

Directs the Managing Trustee to immediately invest such portion of the OASDI trust funds as is not required for current withdrawals. Allows the Managing Trustee to sell or redeem OASDI trust fund obligations only for OASDI program purposes. Directs the Managing Trustee to sell and redeem obligations necessary to ensure timely payment of OASDI benefits, even if either OASDI trust fund holds any amounts not invested by reason of the public debt limit, provided the principal amount of such obligations shall not exceed the principal amount of obligations that would have been sold or redeemed under normal operating procedures.

Title III: Balanced Budget and Emergency Deficit Control - Balanced Budget and Emergency Deficit Control Reaffirmation Act of 1986 - Amends the Balanced Budget and Emergency Deficit Control Act of 1985 (Gramm-Rudman-Hollings Act) to revise sequestration procedures.

Directs the Comptroller General to submit the General Accounting Office's (GAO) initial and revised sequestration reports for a fiscal year to the Director of the Office of Management and Budget (OMB). (Current law requires such reports to be submitted to the President.) Requires the GAO reports to contain the Comptroller General's views concerning the estimates, determinations, and specifications contained in the report submitted by the Directors of OMB and the Congressional Budget Office (CBO). Requires the Director of OMB to issue to the President and the Congress: (1) by September 1 preceding the fiscal year, an initial sequestration report based on the initial GAO report, providing the same items of information as contained in the OMB-CBO report, and explaining any deviations between the estimates, determinations, and specifications included and the views of the Comptroller General in the GAO report; and (2) by October 15, a revised report as necessary in light of the revised GAO report. Requires such revised report to contain the same estimated amounts of budget authority, outlays, spending authority, revenues, obligation limitations, obligated balances, unobligated balances, loan guarantee commitments, and direct loan obligations as contained in the initial report unless legislation is enacted, a final regulation is promulgated, or a sale of assets is announced after such initial report which requires a change. Requires the President to issue any necessary initial sequestration order on September 3 (currently, September 1) and the final order on October 17 (currently, October 15). Requires the President's initial and final orders to be in accordance with the initial and revised OMB (currently, GAO) reports.

Terminates procedures providing for sequestration from national defense accounts through the termination or modification of existing contracts.

Sets forth amounts for economic assumptions required to be used by OMB, CBO, and GAO in preparing sequestration reports for FY 1987. Requires the Directors of OMB and CBO and the Comptroller General, by July 15 preceding FY 1988 through 1991, to each submit to the Temporary Joint Committee on Deficit Reduction a report proposing economic assumptions for use in preparing sequestration reports for each such fiscal year. Directs the Committee, before September 15, to report a joint resolution which: (1) specifies amounts for economic assumptions, within the range of amounts submitted by the Directors and the Comptroller, to be used by OMB, CBO, and GAO for sequestration reports for the upcoming fiscal year; and (2) directs the President to modify the most recent sequestration order for such fiscal year to implement the amount specified for each economic assumption. Requires each Director or the Comptroller General to use the amounts he or she proposed in preparing sequestration reports if such joint resolution is not enacted.

Sets forth rules by which the Directors and the Comptroller General, in preparing sequestration reports for a fiscal year, shall calculate budget outlays resulting from specified items of budgetary resources for an account for purposes of determining budget outlays for non-defense programs for such fiscal year. Requires the Directors, in determining the amount of budget base outlays resulting from obligated balances for defense and non-defense programs for a fiscal year, to use the methodology they used in determining such outlays in the sequestration report for FY 1986. Requires the Directors and the Comptroller General, in preparing initial and final sequestration reports for a fiscal year, to assume that: (1) only those regulations which have been promulgated as final regulations by August 15 (with respect to initial reports) or October 5 (with respect to final reports) will be in effect during such fiscal year; and (2) only those sales of assets by the Government which are announced by August 15 (for initial reports) or October 5 (for final reports) will occur during such fiscal year. Requires the Directors and the Comptroller General, in preparing sequestration reports, to: (1) include amounts of budget authority and budget outlays necessary to pay for any adjustments for Federal statutory pay systems or military pay enacted by law; and (2) assume that the percentage of the amounts of budget authority and budget outlays necessary to pay for such adjustments that will be absorbed by all Federal agencies will not exceed the average of the percentage of such amounts absorbed by all agencies for the three most recently completed fiscal years for which such adjustments were made. Requires the Directors and the Comptroller General, in preparing FY 1987 reports, to assume that advance deficiency payments shall be made available to producers who agree to participate in an acreage limitation or set-aside program for the related crop year based on 40 percent of the projected payment rate for wheat and feed grains and 30 percent of such rate for upland cotton and rice.

Requires the Comptroller General's report to the Congress on the compliance of the President's sequestration order with sequestration procedures to include information on the compliance of OMB's sequestration reports with such procedures and any recommendations for improving such procedures.

Exempts the budget account for Washington Metropolitan Area Transit Authority interest payments from reduction pursuant to a sequestration order.

Restores the provisions of the Balanced Budget and Emergency Deficit Control Act of 1985 as in effect before enactment of this Act if provisions of law are enacted which: (1) establish the Comptroller General as an officer in the executive branch; or (2) establish an independent agency in the executive branch to carry out the functions of the Comptroller General.

Requires the President to submit the annual Federal budget to the Congress by the first Tuesday in February (currently, the first Monday after January 3).

Title IV: Unlawful Laundering of Money - Money Laundering Crimes Act of 1986 - Amends the Federal criminal code to establish money laundering as a Federal offense. Sets forth fines and penalties to be imposed on anyone who, knowing that the property involved in a financial transaction represents the proceeds of some form of unlawful activity, conducts or attempts to conduct such a transaction which in fact involves such proceeds: (1) with the intent to facilitate the carrying on of specified unlawful activity; or (2) knowing that the transaction is designed in whole or in part to conceal or disguise the nature, location, source, ownership, or control of such proceeds, or to avoid a transaction reporting requirement under State or Federal law.

Sets forth fines and penalties for anyone who: (1) transports or attempts to transport a monetary instrument or funds from a place in the United States to or through a place outside the United States, or vice versa, with similar intent or knowledge; or (2) conducts or attempts to conduct a financial transaction that in whole or in part involves the proceeds of specified unlawful activity with intent to violate or facilitate the violation of certain provisions of the Internal Revenue Code.

Provides, for each of such offenses, for a fine of not more than $250,000 or twice the value of the monetary instrument, whichever is greater, or imprisonment for not more than 20 years, or both. Imposes a civil penalty of the greater of the value of the funds or the monetary instrument involved or $10,000.

Authorizes components of the Department of Justice and the Department of the Treasury to investigate such offenses, as appropriate.

Establishes extraterritorial jurisdiction if certain conditions are met.

Amends the Right to Financial Privacy Act of 1978 with respect to the permissible notification of the Government by a financial institution that the institution has information which may be relevant to a possible violation of law or regulation. Restricts such information to the name or names and other identifying information concerning the individuals and accounts involved in, and the nature of, the suspected illegal activity. Preempts any State or local law which prohibits disclosure of such information. Precludes liability under any law for an institution for such a disclosure or for failing to notify the customer of such disclosure. Grants a district court authority to order the institution to delay notifying a customer of the existence of a grand jury subpoena of financial records or of information furnished to the grand jury.

Authorizes the Secretary of the Treasury to: (1) examine books, papers, and records of domestic financial institutions; and (2) summon an officer or employee having possession or custody of reports or records to appear and give testimony under oath. Permits the Secretary to make information filed by financial institutions in certain reports available to a Federal, State, or local agency upon request. Authorizes the Secretary to make such information available to a Federal agency when the Secretary has reason to believe it may be relevant to a matter within the receiving agency's jurisdiction. Authorizes the disclosure of such information for national security purposes. Exempts such reports, and records of such reports, from public disclosure provisions.

Increases the civil penalties for violations of the Bank Secrecy Act's reporting rules. Provides in the case of a reporting violation for a maximum penalty of $1,000,000 and a minimum of $25,000. Reduces the civil penalty by any amount forfeited to the United States. Imposes a civil penalty for the criminal violation of such rules in the amount of the transaction or $25,000, whichever is greater, where the violation involves a transaction. Sets a civil penalty of the entire amount of an account (up to $250,000) or $25,000, whichever is greater, where the violation involves failure to report the existence of an account or any required identifying data pertaining to it. Imposes a civil penalty of not more than $1,000 in the case of a negligent violation.

Authorizes the Secretary to assess a civil penalty within six years after the transaction on which the penalty is based. Permits the Secretary to bring a civil action to recover a civil penalty within two years after assessment.

Lists money laundering as a predicate offense for purposes of the Racketeer Influenced and Corrupt Organizations (RICO) statute. Authorizes wiretapping for the investigation of money laundering.

Establishes civil and criminal forfeiture procedures for the offense of money laundering.

Title V: Farmers and Ranchers Disaster Assistance - Directs the Secretary of Agriculture to make available in 1986 at no cost to farmers and ranchers in drought disaster areas (as defined by this Act) surplus Commodity Credit Corporation (CCC) commodities (including transportation costs) for emergency livestock or poultry feed. States that such commodities shall be made available when the Secretary determines that the local supply of reasonably-priced feed and forage is insufficient to cover a 72-hour period, or other period required to bring feed in from surplus areas.

Directs the Secretary to use specified regulations issued under the Food and Agriculture Act of 1977 to determine feed needs and commodity amounts.

Makes such assistance available until the earlier of the period beginning three days after enactment of this Act and ending March 31, 1987, or the date, as determined by the Secretary, on which the emergency no longer exists.

Directs the Secretary to make in-kind emergency livestock and poultry feed assistance available under the Food and Agriculture Act of 1977 to farmers and ranchers in drought disaster areas. Sets maximum reimbursement rates at 50 percent, except that net costs can not exceed prices offered to foreign purchasers under an export development program.

Directs the Secretary to permit any 1986 drought-affected producer of wheat, feed grains, upland cotton, or rice who is participating in specified acreage reduction programs under the Agricultural Act of 1949, to devote such acreage to hay or grazing without regard to certain limitations imposed by such Act.

Directs the President, in carrying out an emergency assistance program under the Disaster Relief Act of 1974, to require the Secretary to implement an emergency hay program, including paying 80 percent of transportation costs. Stipulates that such program shall be undertaken only if the Secretary determines, after consultation with the Governor and other State officials, that: (1) available stocks of hay are insufficient; and (2) emergency feed assistance and additional haying and grazing acreage will be insufficient to prevent substantial livestock loss or herd liquidations.

Makes such emergency feed assistance and additional haying and grazing provisions effective 15 days after enactment of this Act. States that such assistance shall be available until the earlier of March 30, 1987, or the date, as determined by the Secretary, on which the emergency no longer exists.

Requires that such assistance be made available if other assistance under the Agricultural Act of 1949 is not made available within a specified time.

Directs the Secretary to make disaster payments in-kind to requesting producers of 1986 wheat, feed grain, upland cotton, rice, soybean, and peanut crops in drought areas. Limits aggregate payments to any one producer to $100,000.

Prohibits any reduction in the price received by milk producers in drought areas for the period beginning October 1, 1986, and ending December 31, 1986. Increases such reductions during the period beginning January 1, 1987, and ending September 30, 1987, in order to make up for such prohibited price reductions.

Directs the Secretary to make cost-sharing payments (at least 50 percent) available in drought areas for: (1) conservation measures designed to prevent soil erosion due to loss of vegetative cover; and (2) reestablishment of stands of pine trees. Provides for in-kind cost-sharing payments. Makes such assistance available during the period beginning 15 days after enactment of this Act and ending March 30, 1987.

Authorizes the Secretary, in making in-kind payments, to use commodities owned by the CCC or pledged to the CCC as loan security. Permits such payments to be made by: (1) warehouse delivery; (2) transfer of negotiable warehouse receipts; (3) issuance of negotiable commodity certificates; or (4) other appropriate methods.

Directs the Secretary, to the maximum extent practicable, to use CCC commodities stored in storage deficient areas in the midwestern United States.

Requires the transportation expenses under the emergency feed donation program and hay transportation program to be made in kind prior to October 1, 1986, or in kind cash after September 30, 1986.

Expresses the sense of the Congress, with respect to farm borrowers adversely affected by drought disasters in 1986, that: (1) the Secretary should exercise specified authority under the Consolidated Farm and Rural Development Act to defer repayment and forgo foreclosures on Farmers Home Administration loans; and (2) the Farm Credit System and commercial lenders should be encouraged to adopt lenient lending, forebearance, and foreclosure policies, and to participate with Government agencies in borrower assistance programs.

Expresses the sense of the Congress that the Secretary should: (1) establish a coordinating mechanism within the Department of Agriculture to coordinate executive assistance; (2) ensure that Government and voluntary agencies and the farmers and ranchers in each drought disaster area are provided a single contact person or unit for Federal assistance, and that a similar contact is provided for assistance from outside such areas; and (3) consult with the Governor and other appropriate State officials concerning the disaster needs of affected farmers and ranchers.

Amends the Disaster Relief Act of 1974 to establish a cost-sharing formula for certain Federal disaster assistance programs. Declares the Federal share of assistance to be 75 percent for the repair of damaged public facilities and debris removal on the condition that remaining costs are paid by a State or local government. Declares the Federal share of assistance to be 100 percent for: (1) unemployment assistance; (2) temporary housing assistance; and (3) crisis counseling assistance and training.

Declares that no State shall be ruled ineligible for assistance under this Act by virtue of an arithmetic formula based on income or population if such State has qualified for Federal disaster assistance within the past 24 months.

Title VI: Miscellaneous Provisions - Directs the Secretary of Agriculture to make advance deficiency payments available for the 1987 crops of wheat, feed grains, upland cotton, and rice. Requires the percentage of the projected payment rate used in computing such payments to be not less than 40 percent for wheat and feed grains and 30 percent for rice and upland cotton.

Expresses the sense of the Congress that the Secretary of Transportation, in order to improve aviation safety, should increase the number of qualified air traffic controllers to a specified level consistent with the number employed before 1981, expand the Federal Aviation Administration's (FAA) workforce for inspection and enforcement of aircraft operations, maintenance, and reporting procedures, and consider restricting air traffic at certain FAA-controlled airports or limiting the certification of new airlines. Directs the Secretary to report to the Congress within 90 days on proposed actions and required additional funding to increase air traffic safety staffing levels.

Amends the Internal Revenue Code to repeal the windfall profit tax on domestic crude oil with respect to oil removed from the premises after October 1, 1987. Provides that reports required on oil removed from the premises shall not apply after enactment of this Act unless the wellhead price of domestic crude oil reaches or exceeds the tier one base price under the Crude Oil Windfall Profit Tax Act of 1980.

Amends the Congressional Budget Act of 1974 to provide that it shall not be in order for the House of Representatives or the Senate to consider any resolution for adjournment sine die unless action has been completed on the concurrent resolution on the budget required to be reported for the fiscal year beginning on October 1 of such year and on any required reconciliation bill or resolution.

Cost-of-Living-Adjustment-Reform Act of 1986 - Amends title II (Old Age, Survivors and Disability Insurance) of the Social Security Act to replace the requirement that there be at least a three-percent rise in the Consumer Price Index before a cost-of-living adjustment of benefits is made with a requirement that such an adjustment be made whenever the cost of living increase is greater than zero.

Exempts from Federal, State, or local taxation any income derived by an Indian from fishing and any activities conducted by any Indian in connection with fishing, if the rights of such Indian to fish are provided for by any Federal law, regardless of whether such rights are limited to subsistence or commercial fishing.

Requires the Secretary of Agriculture to report to the Congress annually on food bank special nutrition projects.

Amends the Internal Revenue Code to allow a charitable contribution deduction to farmers who donate agricultural products to assist victims of a drought, flood, or other natural disaster. Provides that the amount of the deduction shall equal the wholesale market value of such agricultural product.

Denies the foreign tax credit for taxes paid to any country: (1) the government of which the United States does not recognize, unless such government is eligible to purchase defense articles or services under the Arms Export Control Act; (2) with respct to which the United States has severed, or does not conduct, diplomatic relations; or (3) which the Secretary of State has designated as repeatedly providing support for acts of international terrorism. Denies the income tax deferral of a U.S. shareholder's share of the income of a foreign controlled corporation derived from any such country.

Disapproves and declares null and void as of June 6, 1986, a District of Columbia law entitled the Prohibition of Discrimination in the Provision of Insurance Act of 1986.

Amends the Balanced Budget and Emergency Deficit Control Act of 1985 to revise alternative sequestration procedures. Requires the sequestration reports of the Comptroller General, in the event that any sequestration reporting procedures under such Act are invalidated, to be transmitted to the Speaker of the House and the President of the Senate, who shall refer the report to the Temporary Joint Committee on Deficit Reduction. (Current law requires the joint OMB-CBO report to be transmitted directly to the Committee.) Sets forth a revised timetable for initial and revised sequestration reports and orders under such alternative procedures.

Authorizes the Committee to report a joint resolution affirming as law any sequestration order issued by the President and rendered invalid by the invalidation of sequestration reporting procedures.

Disapproves the uranium enrichment criteria submitted to the Congress on July 24, 1986, pursuant to the Atomic Energy Act of 1954. Prohibits the Secretary of Energy from implementing such criteria.

Exempts certain Federal benefits payable in calendar years 1987 through 1991 and cost-of-living adjustments therein from modification, suspension, or reduction pursuant to a presidential sequestration order.

Prohibits the President, in the annual Federal budget transmitted to the Congress, from recommending actions to increase the borrowing authority of the United States or to increase the public debt limit for a fiscal year by more than the maximum deficit amount for that year.

Authorizes the Secretary of Treasury to suspend the investment of amounts in the Civil Service Retirement and Disability Fund (Fund) if necessary to ensure that the public debt is not exceeded. Requires any Fund amounts which are not invested solely by reason of the public debt to be invested as soon as such investments can be made without exceeding such limit. Directs the Secretary, upon the expiration of any debt limit impact period, to: (1) issue to the Fund obligations to replicate the amount of holdings the Fund would have had if the debt limit impact period had not occurred; and (2) pay to such Fund an amount equal to the interest such Fund failed to earn because of redemptions, disinvestments, or the lack of investments during a debt limit impact period solely by reason of the public debt limit.

Authorizes the Secretary to sell or redeem invested assets of the Fund only to make authorized Fund payments, even if the Fund holds amounts not invested by reason of the public debt, to the extent necessary to ensure timely payments. Requires the Secretary to: (1) report to the Congress and the Comptroller General on the operation and status of the Fund during each debt limit impact period; and (2) notify the Congress when Fund amounts can not be invested by reason of the public debt limit.

Directs the Secretary of Agriculture, through the Commodity Credit Corporation, to reimburse farmers and ranchers for up to 80 percent of their costs of transporting hay between July 1, 1985, and June 1, 1986, as a result of a national disaster caused by flood, excessive moisture, or drought. Requires the Secretary to make deficiency payments based on 100 percent (currently, 40 percent) of the projected payment rate for 1986 crops of wheat, feed grains, upland cotton, and rice which farmers were prevented from planting because of flood, heavy rains, excessive moisture, or drought.

Expresses the sense of the Congress that: (1) the Secretary should instruct the Farmers Home Administration to defer loan repayments and forgo foreclosures for farmers and ranchers who are unable to make loan payments as a result of drought disaster in 1985 or flood disaster in 1986; and (2) Farm Credit System lending institutions and commercial lending institutions are encouraged to adopt lenient lending, forbearance, and foreclosure policies and to participate with Federal and State lenders in assistance programs for ranch and farm borrowers who are under financial stress as a result of such disasters.

Expresses the sense of the Senate that the Secretary should: (1) institute a marketing loan program or a producer option payment program for soybeans; and (2) maintain the formula price support loan rate for soybeans at $5.02 per bushel.

Amends the Small Business Act to increase (from $1,050,000,000 to $1,200,000,000) for FY 1986 the authorized level of surety bond guarantees that the Small Business Administration can offer to small businesses under the Surety Bond Guarantee Program.

Amends the Agricultural Act of 1949 to direct the Secretary of Agriculture, in determining the payment rate for price support payments for the 1986 wheat crop, to use the national weighted average market price per bushel of wheat received by producers during the first five months of the marketing year.

Amends the Social Security Act to direct the Managing Trustee of the OASDI trust funds to pay from each fund to the Treasury for allocation to Fiscal Service the estimated amounts which will be expended during a three-month period for the nonpersonnel costs of the administration of title II (Old Age, Survivors and Disability Insurance) of such Act.

Amends the Balanced Budget and Emergency Deficit Control Act of 1985 to exempt from any benefit reduction under such Act the dual benefits payments account in the Treasury (60-0111-0-1-601) pertaining to certain railroad retirement benefits. Applies such exemption to fiscal years beginning FY 1987.

Directs the General Accounting Office to: (1) study the budgetary treatment of user fees in the Patent and Trademark Office and the Copyright Office and report to the Congress on how such budgetary treatment and user fee policy may affect the proper administration of patent, copyright, and trademark laws; and (2) include in such study an examination of offsetting collections credited to appropriation accounts, offsetting receipts, and governmental receipts dedicated to trust funds under the Balanced Budget and Emergency Deficit Control of 1985, an identification of the spending that is supported by such collections and receipts, and a discussion of the treatment of such spending under a sequestration order.