I 

108TH CONGRESS 

1ST SESSION H. R. 180

To reform Federal budget procedures to restrain congressional spending, 

foster greater oversight of the budget, account for accurate Government 

agency costs, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 7, 2003

Mr. RYAN of Wisconsin (for himself, Mr. BRADY of Texas, Mr. AKIN, Mr. 

ROYCE, and Mr. SESSIONS) introduced the following bill; which was referred to the Committee on the Budget, for a period ending not later 

than June 1, 2003, and in addition to the Committees on Rules, Ways 

and Means, and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions 

as fall within the jurisdiction of the committee concerned 

A BILL

To reform Federal budget procedures to restrain congressional spending, foster greater oversight of the budget, 

account for accurate Government agency costs, and for 

other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited at the 

5 ‘‘Budget Fraud Elimination Act of 2003’’. 

6 (b) TABLE OF CONTENTS.—
2

•HR 180 IH 

Sec. 1. Short title; table of contents. 

TITLE I—TRUTH IN BUDGETING 

Subtitle A—Limit on the Public Debt 

Sec. 101. Findings. 

Sec. 102. Purpose. 

Sec. 103. Limit on public debt. 

Subtitle B—Establishment of Biennial Budgeting 

Sec. 111. Findings. 

Sec. 112. Revision of timetable. 

Sec. 113. Amendments to the Congressional Budget and Impoundment Control 

Act of 1974. 

Sec. 114. Amendments to rules of House of Representatives. 

Sec. 115. Amendments to title 31, United States Code. 

Sec. 116. Two-year appropriations; title and style of appropriation acts. 

Sec. 117. Multiyear authorizations. 

Sec. 118. Government strategic and performance plans on a biennial basis. 

Sec. 119. Biennial appropriation bills. 

Sec. 120. Assistance by Federal agencies to standing committees of the Senate 

and the House of Representatives. 

Sec. 121. Report on two-year fiscal period. 

Sec. 122. Special transition period for the 109th Congress. 

Sec. 123. Effective date. 

TITLE II—TRUTH IN SPENDING 

Subtitle A—Emergency Spending Legislation 

Sec. 201. Emergency spending legislation and the baseline. 

Sec. 202. OMB emergency criteria. 

Sec. 203. Point of order to enforce definition of emergency. 

Subtitle B—The Byrd Rule 

Sec. 211. Limitation on Byrd rule. 

Subtitle C—Spending Accountability Reserve 

Sec. 231. Short title. 

Sec. 232. Spending accountability reserve ledger. 

Sec. 233. Downward adjustment of section 302(a) allocations and section 

302(b) suballocations. 

Sec. 234. Periodic reporting of ledger statements. 

Sec. 235. Downward adjustment of discretionary spending limits. 

Sec. 236. Reduction in revenues. 

Subtitle D—Enhanced Rescissions of Budget Authority Identified by the 

President as Wasteful Spending 

Sec. 251. Short title. 

Sec. 252. Enhanced consideration of certain proposed rescissions. 

Subtitle E—Extension of Discretionary Spending Limits and Paygo 
3

•HR 180 IH 

Sec. 261. Amendments to sections 251, 252, and 275 of the Balanced Budget 

and Emergency Deficit Control Act of 1985. 

Subtitle F—Paygo Requirements and the On-Budget Surplus 

Sec. 271. Paygo requirements and the on-budget surplus. 

Subtitle G—Treatment of Extraneous Appropriations in Omnibus 

Appropriation Measures 

Sec. 281. Treatment of extraneous appropriations. 

TITLE III—BUDGETING AND MANAGING FOR RESULTS: FULL 

FUNDING FOR FEDERAL RETIREE COSTS 

Subtitle A—Accrual Funding of Pensions and Retirement Pay forederal 

Employees and Uniformed Services Personnel 

Sec. 301. Civil Service Retirement System. 

Sec. 302. Central Intelligence Agency Retirement and Disability System. 

Sec. 303. Foreign Service Retirement and Disability System. 

Sec. 304. Public Health Service Commissioned Corps Retirement System. 

Sec. 305. National Oceanic and Atmospheric Administration Commissioned Officer Corps Retirement System. 

Sec. 306. Coast Guard Military Retirement System. 

Subtitle B—Accrual Funding of Post-Retirement Health Benefits Costs for 

Federal Employees 

Sec. 311. Federal employees health benefits fund. 

Sec. 312. Funding uniformed services health benefits for all retirees. 

Sec. 313. Effective date.

1 TITLE I—TRUTH IN BUDGETING 

2 Subtitle A—Limit on the Public 

3 Debt

4 SEC. 101. FINDINGS. 

5 The Congress finds the following: 

6 (1) Since 1997, Congress has paid down and 

7 retired approximately $450,000,000,000 of the Gov8 ernment’s debt which was previously held by the 

9 public. 

10 (2) This reduction in the Government’s debt to 

11 the public should permit a lowering of the statutory 
4

•HR 180 IH 

1 debt ceiling. However, the statutory definition min2 gles both the public debt and intragovernment liabil3 ities, the latter of which do not represent resource 

4 withdrawals for the economy. 

5 (3) Intragovernment accounts such as the social 

6 security trust funds, the Civil Service Retirement 

7 and Disability Fund, the Department of Defense 

8 Military Retirement Fund, and the Unemployment 

9 Trust Fund constitute accrued liabilities of the Gov10 ernment which will be paid from future receipts, 

11 taxes, or borrowing. If the Government issues debt 

12 to the public to fund such liabilities in the future, 

13 that debt will properly be subject to the debt ceiling. 

14 (4) Properly defining the debt of the Govern15 ment would permit lowering the debt ceiling to take 

16 account of, and lock in, the fiscal progress that has 

17 been made. 

18 SEC. 102. PURPOSE. 

19 It is the purpose of this subtitle to—

20 (1) properly define the public debt to exclude 

21 intragovernment obligations; and 

22 (2) reduce the public debt ceiling in recognition 

23 of the reduction in outstanding public debt in recent 

24 years, and to encourage further fiscal responsibility
5

•HR 180 IH 

1 and progress toward eliminating the remaining out2 standing debt. 

3 SEC. 103. LIMIT ON PUBLIC DEBT. 

4 Section 3101 of title 31, United States Code, is 

5 amended to read as follows: 

6 ‘‘§ 3101. Public debt limit 

7 ‘‘(a) In this section, the current redemption value of 

8 an obligation issued on a discount basis and redeemable 

9 before maturity at the option of its holder is deemed to 

10 be the face amount of the obligation. 

11 ‘‘(b) The face amount of obligations issued under this 

12 chapter and the face amount of obligations whose prin13 cipal and interest are guaranteed by the United States 

14 Government (except guaranteed obligations held by the 

15 Secretary of the Treasury and intragovernmental hold16 ings) may not be more than $3,870,000,000,000 out17 standing at one time, subject to changes periodically made 

18 in that amount as provided by law. 

19 ‘‘(c) For purposes of this section, the face amount, 

20 for any month, of any obligation issued on a discount basis 

21 that is not redeemable before maturity at the option of 

22 the holder of the obligation is an amount equal to the sum 

23 of—

24 ‘‘(1) the original issue price of the obligation, 

25 plus
6

•HR 180 IH 

1 ‘‘(2) the portion of the discount on the obliga2 tion attributable to periods before the beginning of 

3 such month (as determined under the principles of 

4 section 1272(a) of the Internal Revenue Code of 

5 1986 without regard to any exceptions contained in 

6 paragraph (2) of such section). 

7 ‘‘(d) For purposes of this section, the term 

8 ‘intragovernment holding’ is any obligation issued by the 

9 Secretary of the Treasury to any Federal trust fund or 

10 Government account, whether in respect of public money, 

11 money otherwise required to be deposited in the Treasury, 

12 or amounts appropriated.’’. 

13 Subtitle B—Establishment of 

14 Biennial Budgeting 

15 SECTION 111. FINDINGS. 

16 The Congress finds that—

17 (1) the annual appropriations and budget proc18 ess increasingly dominates the congressional agenda 

19 and Congress regularly fails to meet the deadlines of 

20 the Congressional Budget Act of 1974; 

21 (2) the design of the budget process has led to 

22 repetitive and time-consuming budget votes, decreas23 ing the time available for the systematic and pro24 grammatic oversight of Federal programs and delay-
7

•HR 180 IH 

1 ing the enactment of legislation necessary to fund 

2 the Government; 

3 (3) Congress’ responsibility to improve the effi4 ciency, economy, and effectiveness of governmental 

5 operations, evaluate programs and performance, de6 tect and prevent poor administration, waste, or 

7 abuse in Government programs, ensure that execu8 tive policies reflect the public interest, ensure admin9 istrative compliance with legislative intent, and pre10 vent executive encroachment on legislative authority 

11 and prerogatives is undermined by the current time12 consuming and repetitive budget process; 

13 (4) an annual budget process encourages ineffi14 ciency in the management, stability, and predict15 ability of Federal funding, particularly for States 

16 and localities; 

17 (5) a biennial budget process will reduce the 

18 number of budget-related votes during each Con19 gress, enhance congressional oversight of Govern20 ment operations, encourage longer time horizons in 

21 policy planning and greater stability in fiscal policy; 

22 (6) a biennial budget process was a principal 

23 recommendation of the 1993 Joint Committee on 

24 the Organization of Congress and the Vice Presi25 dent’s National Performance Review; 
8

•HR 180 IH 

1 (7) since the enactment of the Congressional 

2 Budget Act of 1974, more than 50 bills addressing 

3 a two-year budget cycle have been introduced, 10 bi4 ennial budget related provisions were reported by 

5 congressional committees, 7 passed either chamber 

6 and 4 were enacted; more than 40 congressional or 

7 special committee hearings addressed the issue of bi8 ennial budgeting; and the Congressional Budget Of9 fice, the Office of Management and Budget, and 5 

10 different special task forces or joint committees of 

11 Congress have either recommended biennial budg12 eting or further studies of it; 

13 (8) the adoption of a biennial budget process 

14 was recommended by President Reagan in the fiscal 

15 year 1989 budget submission, by President Bush in 

16 the fiscal year 1990 and 1991 budget submissions, 

17 by President Clinton in the fiscal year 1995, 2000, 

18 and 2001 budget submissions, and by President 

19 Bush in the fiscal year 2002 budget submission; and 

20 (9) a bipartisan majority of Members of the 

21 House of Representatives support a biennial budget 

22 process. 

23 SEC. 112. REVISION OF TIMETABLE. 

24 Section 300 of the Congressional Budget Act of 1974 

25 (2 U.S.C. 631) is amended to read as follows: 
9

•HR 180 IH 

1 ‘‘TIMETABLE

2 ‘‘SEC. 300. (a) IN GENERAL.—Except as provided by 

3 subsection (b), the timetable with respect to the congres4 sional budget process for any Congress (beginning with 

5 the One Hundred Tenth Congress) is as follows: 

‘‘First Session 

‘‘On or before: Action to be completed:

First Monday in February ....... President submits budget recommendations. 

February 15 ............................. Congressional Budget Office submits report 

to Budget Committees. 

Not later than 6 weeks after 

budget submission.

Committees submit views and estimates to 

Budget Committees. 

April 1 ...................................... Budget Committees report concurrent resolution on the biennial budget. 

May 15 ..................................... Congress completes action on concurrent resolution on the biennial budget. 

May 15 ..................................... Biennial appropriation bills may be considered in the House. 

June 10 .................................... House Appropriations Committee reports last 

biennial appropriation bill. 

June 30 .................................... House completes action on biennial appropriation bills. 

October 1 .................................. Biennium begins.

‘‘Second Session

‘‘On or before: Action to be completed:

February 15 ............................. President submits budget review. 

Not later than 6 weeks after 

President submits budget review.

Congressional Budget Office submits report 

to Budget Committees. 

The last day of the session ....... Congress completes action on bills and resolutions authorizing new budget authority for 

the succeeding biennium. 

6 ‘‘(b) SPECIAL RULE.—In the case of any first session 

7 of Congress that begins in any year during which the term 

8 of a President (except a President who succeeds himself) 

9 begins, the following dates shall supersede those set forth 

10 in subsection (a):
10

•HR 180 IH 

‘‘First Session 

‘‘On or before: Action to be completed: 

First Monday in April .............. President submits budget recommendations. 

April 20 .................................... Committees submit views and estimates to 

Budget Committees. 

May 15 ..................................... Budget Committees report concurrent resolution on the biennial budget. 

June 1 ...................................... Congress completes action on concurrent resolution on the biennial budget. 

June 1 ...................................... Biennial appropriation bills may be considered in the House. 

July 1 ....................................... House Appropriations Committee reports last 

biennial appropriation bill. 

July 20 ..................................... House completes action on biennial appropriation bills. 

October 1 .................................. Biennium begins.’’. 

1 SEC. 113. AMENDMENTS TO THE CONGRESSIONAL BUDGET 

2 AND IMPOUNDMENT CONTROL ACT OF 1974. 

3 (a) DECLARATION OF PURPOSE.—Section 2(2) of the 

4 Congressional Budget and Impoundment Control Act of 

5 1974 (2 U.S.C. 621(2)) is amended by striking ‘‘each 

6 year’’ and inserting ‘‘biennially’’. 

7 (b) DEFINITIONS.—

8 (1) BUDGET RESOLUTION.—Section 3(4) of 

9 such Act (2 U.S.C. 622(4)) is amended by striking 

10 ‘‘fiscal year’’ each place it appears and inserting ‘‘bi11 ennium’’. 

12 (2) BIENNIUM.—Section 3 of such Act (2 

13 U.S.C. 622) is amended by adding at the end the 

14 following new paragraph:

15 ‘‘(11) The term ‘biennium’ means the period of 

16 2 consecutive fiscal years beginning on October 1 of 

17 any odd-numbered year.’’.
11

•HR 180 IH 

1 (c) BIENNIAL CONCURRENT RESOLUTION ON THE

2 BUDGET.—

3 (1) CONTENTS OF RESOLUTION.—Section 

4 301(a) of such Act (2 U.S.C. 632(a)) is amended—

5 (A) in the matter preceding paragraph (1) 

6 by—

7 (i) striking ‘‘April 15 of each year’’ 

8 and inserting ‘‘May 15 of each odd-num9 bered year’’; 

10 (ii) striking ‘‘the fiscal year beginning 

11 on October 1 of such year’’ the first place 

12 it appears and inserting ‘‘the biennium be13 ginning on October 1 of such year’’; and 

14 (iii) striking ‘‘the fiscal year beginning 

15 on October 1 of such year’’ the second 

16 place it appears and inserting ‘‘each fiscal 

17 year in such period’’; 

18 (B) in paragraph (6), by striking ‘‘for the 

19 fiscal year’’ and inserting ‘‘for each fiscal year 

20 in the biennium’’; and 

21 (C) in paragraph (7), by striking ‘‘for the 

22 fiscal year’’ and inserting ‘‘for each fiscal year 

23 in the biennium’’. 

24 (2) ADDITIONAL MATTERS.—Section 301(b) of 

25 such Act (2 U.S.C. 632(b)) is amended—
12

•HR 180 IH 

1 (A) in paragraph (3), by striking ‘‘for such 

2 fiscal year’’ and inserting ‘‘for either fiscal year 

3 in such biennium’’; and 

4 (B) in paragraph (7), by striking ‘‘for the 

5 first fiscal year’’ and inserting ‘‘for each fiscal 

6 year in the biennium’’. 

7 (3) VIEWS OF OTHER COMMITTEES.—Section 

8 301(d) of such Act (2 U.S.C. 632(d)) is amended by 

9 inserting ‘‘(or, if applicable, as provided by section 

10 300(b))’’ after ‘‘United States Code’’. 

11 (4) HEARINGS.—Section 301(e)(1) of such Act 

12 (2 U.S.C. 632(e)) is amended by—

13 (A) striking ‘‘fiscal year’’ and inserting 

14 ‘‘biennium’’; and 

15 (B) inserting after the second sentence the 

16 following: ‘‘On or before April 1 of each odd17 numbered year (or, if applicable, as provided by 

18 section 300(b)), the Committee on the Budget 

19 of each House shall report to its House the con20 current resolution on the budget referred to in 

21 subsection (a) for the biennium beginning on 

22 October 1 of that year.’’. 

23 (5) GOALS FOR REDUCING UNEMPLOYMENT.—

24 Section 301(f) of such Act (2 U.S.C. 632(f)) is 
13

•HR 180 IH 

1 amended by striking ‘‘fiscal year’’ each place it ap2 pears and inserting ‘‘biennium’’. 

3 (6) ECONOMIC ASSUMPTIONS.—Section 

4 301(g)(1) of such Act (2 U.S.C. 632(g)(1)) is 

5 amended by striking ‘‘for a fiscal year’’ and insert6 ing ‘‘for a biennium’’. 

7 (7) SECTION HEADING.—The section heading of 

8 section 301 of such Act is amended by striking ‘‘AN9 NUAL’’ and inserting ‘‘BIENNIAL’’. 

10 (8) TABLE OF CONTENTS.—The item relating 

11 to section 301 in the table of contents set forth in 

12 section 1(b) of such Act is amended by striking ‘‘An13 nual’’ and inserting ‘‘Biennial’’. 

14 (d) COMMITTEE ALLOCATIONS.—Section 302 of such 

15 Act (2 U.S.C. 633) is amended—

16 (1) in subsection (a)(1) by—

17 (A) striking ‘‘for the first fiscal year of the 

18 resolution,’’ and inserting ‘‘for each fiscal year 

19 in the biennium,’’; 

20 (B) striking ‘‘for that period of fiscal 

21 years’’ and inserting ‘‘for all fiscal years cov22 ered by the resolution’’; and 

23 (C) striking ‘‘for the fiscal year of that 

24 resolution’’ and inserting ‘‘for each fiscal year 

25 in the biennium’’; 
14

•HR 180 IH 

1 (2) in subsection (f)(1), by striking ‘‘for a fiscal 

2 year’’ and inserting ‘‘for a biennium’’; 

3 (3) in subsection (f)(1), by striking ‘‘first fiscal 

4 year’’ and inserting ‘‘either fiscal year of the bien5 nium’’; 

6 (4) in subsection (f)(2)(A), by—

7 (A) striking ‘‘first fiscal year’’ and insert8 ing ‘‘each fiscal year of the biennium’’; and 

9 (B) striking ‘‘the total of fiscal years’’ and 

10 inserting ‘‘the total of all fiscal years covered by 

11 the resolution’’; and 

12 (5) in subsection (g)(1)(A), by striking ‘‘April’’ 

13 and inserting ‘‘May’’. 

14 (e) SECTION 303 POINT OF ORDER.—

15 (1) IN GENERAL.—Section 303(a) of such Act 

16 (2 U.S.C. 634(a)) is amended by striking ‘‘for a fis17 cal year’’ and inserting ‘‘for a biennium’’ and by 

18 striking ‘‘the first fiscal year’’ and inserting ‘‘each 

19 fiscal year of the biennium’’. 

20 (2) EXCEPTIONS IN THE HOUSE.—Section 

21 303(b) of such Act (2 U.S.C. 634(b)) is amended—

22 (A) in paragraph (1)(A), by striking ‘‘the 

23 budget year’’ and inserting ‘‘the biennium’’; 

24 (B) in paragraph (1)(B), by striking ‘‘the 

25 fiscal year’’ and inserting ‘‘the biennium’’; and
15

•HR 180 IH 

1 (C) in paragraph (2), by inserting ‘‘(or 

2 June 1 whenever section 300(b) is applicable)’’ 

3 after ‘‘May 15’’. 

4 (3) APPLICATION TO THE SENATE.—Section 

5 303(c)(1) of such Act (2 U.S.C. 634(c)) is amended 

6 by—

7 (A) striking ‘‘fiscal year’’ and inserting 

8 ‘‘biennium’’; and 

9 (B) striking ‘‘that year’’ and inserting 

10 ‘‘each fiscal year of that biennium’’. 

11 (f) PERMISSIBLE REVISIONS OF CONCURRENT RESO12 LUTIONS ON THE BUDGET.—Section 304 of such Act (2 

13 U.S.C. 635) is amended—

14 (1) by striking ‘‘fiscal year’’ the first two places 

15 it appears and inserting ‘‘biennium’’; 

16 (2) by striking ‘‘for such fiscal year’’; and 

17 (3) by inserting before the period ‘‘for such bi18 ennium’’. 

19 (g) PROCEDURES FOR CONSIDERATION OF BUDGET

20 RESOLUTIONS.—Section 305(a)(3) of such Act (2 U.S.C. 

21 636(b)(3)) is amended by striking ‘‘fiscal year’’ and in22 serting ‘‘biennium’’. 

23 (h) COMPLETION OF HOUSE COMMITTEE ACTION ON

24 APPROPRIATION BILLS.—Section 307 of such Act (2 

25 U.S.C. 638) is amended—
16

•HR 180 IH 

1 (1) by striking ‘‘each year’’ and inserting ‘‘each 

2 odd-numbered year (or, if applicable, as provided by 

3 section 300(b), July 1)’’; 

4 (2) by striking ‘‘annual’’ and inserting ‘‘bien5 nial’’; 

6 (3) by striking ‘‘fiscal year’’ and inserting ‘‘bi7 ennium’’; and 

8 (4) by striking ‘‘that year’’ and inserting ‘‘each 

9 odd-numbered year’’. 

10 (i) QUARTERLY BUDGET REPORTS.—Section 308 of 

11 such Act (2 U.S.C. 639) is amended by adding at the end 

12 the following new subsection: 

13 ‘‘(d) QUARTERLY BUDGET REPORTS.—The Director 

14 of the Congressional Budget Office shall, as soon as prac15 ticable after the completion of each quarter of the fiscal 

16 year, prepare an analysis comparing revenues, spending, 

17 and the deficit or surplus for the current fiscal year to 

18 assumptions included in the congressional budget resolu19 tion. In preparing this report, the Director of the Congres20 sional Budget Office shall combine actual budget figures 

21 to date with projected revenue and spending for the bal22 ance of the fiscal year. The Director of the Congressional 

23 Budget Office shall include any other information in this 

24 report that it deems useful for a full understanding of the 

25 current fiscal position of the Federal Government. The re-
17

•HR 180 IH 

1 ports mandated by this subsection shall be transmitted by 

2 the Director to the Senate and House Committees on the 

3 Budget, and the Congressional Budget Office shall make 

4 such reports available to any interested party upon re5 quest.’’. 

6 (j) COMPLETION OF HOUSE ACTION ON REGULAR

7 APPROPRIATION BILLS.—Section 309 of such Act (2 

8 U.S.C. 640) is amended—

9 (1) by striking ‘‘It’’ and inserting ‘‘Except 

10 whenever section 300(b) is applicable, it’’; 

11 (2) by inserting ‘‘of any odd-numbered calendar 

12 year’’ after ‘‘July’’; 

13 (3) by striking ‘‘annual’’ and inserting ‘‘bien14 nial’’; and 

15 (4) by striking ‘‘fiscal year’’ and inserting ‘‘bi16 ennium’’. 

17 (k) RECONCILIATION PROCESS.—Section 310 of such 

18 Act (2 U.S.C. 641) is amended—

19 (1) in subsection (a), in the matter preceding 

20 paragraph (1), by striking ‘‘any fiscal year’’ and in21 serting ‘‘any biennium’’; 

22 (2) in subsection (a)(1), by striking ‘‘such fiscal 

23 year’’ each place it appears and inserting ‘‘any fiscal 

24 year covered by such resolution’’; and 
18

•HR 180 IH 

1 (3) by striking subsection (f) and redesignating 

2 subsection (g) as subsection (f). 

3 (l) SECTION 311 POINT OF ORDER.—

4 (1) IN THE HOUSE.—Section 311(a)(1) of such 

5 Act (2 U.S.C. 642(a)) is amended—

6 (A) by striking ‘‘for a fiscal year’’ and in7 serting ‘‘for a biennium’’; 

8 (B) by striking ‘‘the first fiscal year’’ each 

9 place it appears and inserting ‘‘either fiscal 

10 year of the biennium’’; and 

11 (C) by striking ‘‘that first fiscal year’’ and 

12 inserting ‘‘each fiscal year in the biennium’’. 

13 (2) IN THE SENATE.—Section 311(a)(2) of 

14 such Act is amended—

15 (A) in subparagraph (A), by striking ‘‘for 

16 the first fiscal year’’ and inserting ‘‘for either 

17 fiscal year of the biennium’’; and 

18 (B) in subparagraph (B)—

19 (i) by striking ‘‘that first fiscal year’’ 

20 the first place it appears and inserting 

21 ‘‘each fiscal year in the biennium’’; and 

22 (ii) by striking ‘‘that first fiscal year 

23 and the ensuing fiscal years’’ and inserting 

24 ‘‘all fiscal years’’. 
19

•HR 180 IH 

1 (3) SOCIAL SECURITY LEVELS.—Section 

2 311(a)(3) of such Act is amended by—

3 (A) striking ‘‘for the first fiscal year’’ and 

4 inserting ‘‘each fiscal year in the biennium’’; 

5 and 

6 (B) striking ‘‘that fiscal year and the ensu7 ing fiscal years’’ and inserting ‘‘all fiscal 

8 years’’. 

9 (m) MAXIMUM DEFICIT AMOUNT POINT OF

10 ORDER.—Section 312(c) of the Congressional Budget Act 

11 of 1974 (2 U.S.C. 643) is amended—

12 (1) by striking ‘‘for a fiscal year’’ and inserting 

13 ‘‘for a biennium’’; 

14 (2) in paragraph (1), by striking ‘‘first fiscal 

15 year’’ and inserting ‘‘either fiscal year in the bien16 nium’’; 

17 (3) in paragraph (2), by striking ‘‘that fiscal 

18 year’’ and inserting ‘‘either fiscal year in the bien19 nium’’; and 

20 (4) in the matter following paragraph (2), by 

21 striking ‘‘that fiscal year’’ and inserting ‘‘the appli22 cable fiscal year’’.
20

•HR 180 IH 

1 SEC. 114. AMENDMENTS TO RULES OF HOUSE OF REP2 RESENTATIVES. 

3 (a) Clause 4(a)(1)(A) of rule X of the Rules of the 

4 House of Representatives is amended by inserting ‘‘odd5 numbered’’ after ‘‘each’’. 

6 (b) Clause 4(a)(4) of rule X of the Rules of the House 

7 of Representatives is amended by striking ‘‘fiscal year’’ 

8 and inserting ‘‘biennium’’. 

9 (c) Clause 4(b)(2) of rule X of the Rules of the House 

10 of Representatives is amended by striking ‘‘each fiscal 

11 year’’ and inserting ‘‘the biennium’’. 

12 (d) Clause 4(b) of rule X of the Rules of the House 

13 of Representatives is amended by striking ‘‘and’’ at the 

14 end of subparagraph (5), by striking the period and insert15 ing ‘‘; and’’ at the end of subparagraph (6), and by adding 

16 at the end the following new subparagraph: 

17 ‘‘(7) use the second session of each Congress to 

18 study issues with long-term budgetary and economic 

19 implications, which would include—

20 ‘‘(A) hold hearings to receive testimony 

21 from committees of jurisdiction to identify prob22 lem areas and to report on the results of over23 sight; and 

24 ‘‘(B) by January 1 of each odd-number 

25 year, issuing a report to the Speaker which
21

•HR 180 IH 

1 identifies the key issues facing the Congress in 

2 the next biennium.’’. 

3 (e) Clause 11(i) of rule X of the Rules of the House 

4 of Representatives is amended by striking ‘‘the same or 

5 preceding fiscal year’’. 

6 (f) Clause 4(e) of rule X of the Rules of the House 

7 of Representatives is amended by striking ‘‘annually’’ each 

8 place it appears and inserting ‘‘biennially’’ and by striking 

9 ‘‘annual’’ and inserting ‘‘biennial’’. 

10 (g) Clause 4(f) of rule X of the Rules of the House 

11 of Representatives is amended—

12 (1) by inserting ‘‘during each odd-numbered 

13 year’’ after ‘‘submits his budget’’; 

14 (2) by striking ‘‘fiscal year’’ the first place it 

15 appears and inserting ‘‘biennium’’; and 

16 (3) by striking ‘‘that fiscal year’’ and inserting 

17 ‘‘each fiscal year in such ensuing biennium’’. 

18 (h) Clause 3(d)(2)(A) of rule XIII of the Rules of 

19 the House of Representatives is amended by striking 

20 ‘‘five’’ both places it appears and inserting ‘‘six’’. 

21 (i) Clause 5(a)(1) of rule XIII of the Rules of the 

22 House of Representatives is amended by striking ‘‘fiscal 

23 year after September 15 in the preceding fiscal year’’ and 

24 inserting ‘‘biennium after September 15 of the year in 

25 which such biennium begins’’. 
22

•HR 180 IH 

1 SEC. 115. AMENDMENTS TO TITLE 31, UNITED STATES 

2 CODE. 

3 (a) DEFINITION.—Section 1101 of title 31, United 

4 States Code, is amended by adding at the end the fol5 lowing new paragraph:

6 ‘‘(3) ‘biennium’ has the meaning given to such 

7 term in paragraph (11) of section 3 of the Congres8 sional Budget and Impoundment Control Act of 

9 1974 (2 U.S.C. 622(11)).’’. 

10 (b) BUDGET CONTENTS AND SUBMISSION TO THE

11 CONGRESS.—

12 (1) SCHEDULE.—The matter preceding para13 graph (1) in section 1105(a) of title 31, United 

14 States Code, is amended to read as follows: 

15 ‘‘(a) On or before the first Monday in February of 

16 each odd-numbered year (or, if applicable, as provided by 

17 section 300(b) of the Congressional Budget Act of 1974), 

18 beginning with the One Hundred Ninth Congress, the 

19 President shall transmit to the Congress, the budget for 

20 the biennium beginning on October 1 of such calendar 

21 year. The budget transmitted under this subsection shall 

22 include a budget message and summary and supporting 

23 information. The President shall include in each budget 

24 the following:’’. 

25 (2) EXPENDITURES.—Section 1105(a)(5) of 

26 title 31, United States Code, is amended by striking 
23

•HR 180 IH 

1 ‘‘the fiscal year for which the budget is submitted 

2 and the 4 fiscal years after that year’’ and inserting 

3 ‘‘each fiscal year in the biennium for which the 

4 budget is submitted and in the succeeding 4 years’’. 

5 (3) RECEIPTS.—Section 1105(a)(6) of title 31, 

6 United States Code, is amended by striking ‘‘the fis7 cal year for which the budget is submitted and the 

8 4 fiscal years after that year’’ and inserting ‘‘each 

9 fiscal year in the biennium for which the budget is 

10 submitted and in the succeeding 4 years’’. 

11 (4) BALANCE STATEMENTS.—Section 

12 1105(a)(9)(C) of title 31, United States Code, is 

13 amended by striking ‘‘the fiscal year’’ and inserting 

14 ‘‘each fiscal year in the biennium’’. 

15 (5) GOVERNMENT FUNCTIONS AND ACTIVI16 TIES.—Section 1105(a)(12) of title 31, United 

17 States Code, is amended in subparagraph (A), by 

18 striking ‘‘the fiscal year’’ and inserting ‘‘each fiscal 

19 year in the biennium’’. 

20 (6) ALLOWANCES.—Section 1105(a)(13) of title 

21 31, United States Code, is amended by striking ‘‘the 

22 fiscal year’’ and inserting ‘‘each fiscal year in the bi23 ennium’’. 

24 (7) ALLOWANCES FOR UNANTICIPATED AND

25 UNCONTROLLABLE EXPENDITURES.—Section 
24

•HR 180 IH 

1 1105(a)(14) of title 31, United States Code, is 

2 amended by striking ‘‘that year’’ and inserting ‘‘each 

3 fiscal year in the biennium for which the budget is 

4 submitted’’. 

5 (8) TAX EXPENDITURES.—Section 1105(a)(16) 

6 of title 31, United States Code, is amended by strik7 ing ‘‘the fiscal year’’ and inserting ‘‘each fiscal year 

8 in the biennium’’. 

9 (9) ESTIMATES FOR FUTURE YEARS.—Section 

10 1105(a)(17) of title 31, United States Code, is 

11 amended—

12 (A) by striking ‘‘the fiscal year following 

13 the fiscal year’’ and inserting ‘‘each fiscal year 

14 in the biennium following the biennium’’; 

15 (B) by striking ‘‘that following fiscal year’’ 

16 and inserting ‘‘each such fiscal year’’; and 

17 (C) by striking ‘‘fiscal year before the fis18 cal year’’ and inserting ‘‘biennium before the bi19 ennium’’. 

20 (10) PRIOR YEAR OUTLAYS.—Section 

21 1105(a)(18) of title 31, United States Code, is 

22 amended—

23 (A) by striking ‘‘the prior fiscal year,’’ and 

24 inserting ‘‘each of the 2 most recently com25 pleted fiscal years,’’;
25

•HR 180 IH 

1 (B) by striking ‘‘for that year’’ and insert2 ing ‘‘with respect to those fiscal years’’; and 

3 (C) by striking ‘‘in that year’’ and insert4 ing ‘‘in those fiscal years’’. 

5 (11) PRIOR YEAR RECEIPTS.—Section 

6 1105(a)(19) of title 31, United States Code, is 

7 amended—

8 (A) by striking ‘‘the prior fiscal year’’ and 

9 inserting ‘‘each of the 2 most recently com10 pleted fiscal years’’; 

11 (B) by striking ‘‘for that year’’ and insert12 ing ‘‘with respect to those fiscal years’’; and 

13 (C) by striking ‘‘in that year’’ each place 

14 it appears and inserting ‘‘in those fiscal years’’. 

15 (c) ESTIMATED EXPENDITURES OF LEGISLATIVE

16 AND JUDICIAL BRANCHES.—Section 1105(b) of title 31, 

17 United States Code, is amended by striking ‘‘each year’’ 

18 and inserting ‘‘each even-numbered year’’. 

19 (d) RECOMMENDATIONS TO MEET ESTIMATED DE20 FICIENCIES.—Section 1105(c) of title 31, United States 

21 Code, is amended—

22 (1) by striking ‘‘the fiscal year for’’ the first 

23 place it appears and inserting ‘‘each fiscal year in 

24 the biennium for’’;
26

•HR 180 IH 

1 (2) by striking ‘‘the fiscal year for’’ the second 

2 place it appears and inserting ‘‘each fiscal year of 

3 the biennium, as the case may be,’’; and 

4 (3) by striking ‘‘that year’’ and inserting ‘‘for 

5 each year of the biennium’’. 

6 (e) CAPITAL INVESTMENT ANALYSIS.—Section 

7 1105(e)(1) of title 31, United States Code, is amended 

8 by striking ‘‘ensuing fiscal year’’ and inserting ‘‘biennium 

9 to which such budget relates’’. 

10 (f) SUPPLEMENTAL BUDGET ESTIMATES AND

11 CHANGES.—

12 (1) IN GENERAL.—Section 1106(a) of title 31, 

13 United States Code, is amended—

14 (A) in the matter preceding paragraph (1), 

15 by—

16 (i) inserting ‘‘and before February 15 

17 of each even-numbered year’’ after ‘‘Before 

18 July 16 of each year’’; and 

19 (ii) striking ‘‘fiscal year’’ and insert20 ing ‘‘biennium’’; 

21 (B) in paragraph (1), by striking ‘‘that fis22 cal year’’ and inserting ‘‘each fiscal year in 

23 such biennium’’; 
27

•HR 180 IH 

1 (C) in paragraph (2), by striking ‘‘4 fiscal 

2 years following the fiscal year’’ and inserting ‘‘4 

3 fiscal years following the biennium’’; and 

4 (D) in paragraph (3), by striking ‘‘fiscal 

5 year’’ and inserting ‘‘biennium’’. 

6 (2) CHANGES.—Section 1106(b) of title 31, 

7 United States Code, is amended by—

8 (A) striking ‘‘the fiscal year’’ and inserting 

9 ‘‘each fiscal year in the biennium’’; and 

10 (B) inserting ‘‘and before February 15 of 

11 each even-numbered year’’ after ‘‘Before July 

12 16 of each year’’. 

13 (g) CURRENT PROGRAMS AND ACTIVITIES ESTI14 MATES.—

15 (1) THE PRESIDENT.—Section 1109(a) of title 

16 31, United States Code, is amended—

17 (A) by striking ‘‘On or before the first 

18 Monday after January 3 of each year (on or be19 fore February 5 in 1986)’’ and inserting ‘‘At 

20 the same time the budget required by section 

21 1105 is submitted for a biennium’’; and 

22 (B) by striking ‘‘the following fiscal year’’ 

23 and inserting ‘‘each fiscal year of such period’’. 

24 (2) JOINT ECONOMIC COMMITTEE.—Section 

25 1109(b) of title 31, United States Code, is amended 
28

•HR 180 IH 

1 by striking ‘‘March 1 of each year’’ and inserting 

2 ‘‘within 6 weeks of the President’s budget submis3 sion for each odd-numbered year (or, if applicable, 

4 as provided by section 300(b) of the Congressional 

5 Budget Act of 1974)’’. 

6 (h) YEAR-AHEAD REQUESTS FOR AUTHORIZING

7 LEGISLATION.—Section 1110 of title 31, United States 

8 Code, is amended by—

9 (1) striking ‘‘May 16’’ and inserting ‘‘March 

10 31’’; and 

11 (2) striking ‘‘year before the year in which the 

12 fiscal year begins’’ and inserting ‘‘calendar year pre13 ceding the calendar year in which the biennium be14 gins’’. 

15 SEC. 116. TWO-YEAR APPROPRIATIONS; TITLE AND STYLE 

16 OF APPROPRIATION ACTS. 

17 Section 105 of title 1, United States Code, is amend18 ed to read as follows:

19 ‘‘§ 105. Title and style of appropriations Acts 

20 ‘‘(a) The style and title of all Acts making appropria21 tions for the support of the Government shall be as fol22 lows: ‘An Act making appropriations (here insert the ob23 ject) for each fiscal year in the biennium of fiscal years 

24 (here insert the fiscal years of the biennium).’. 
29

•HR 180 IH 

1 ‘‘(b) All Acts making regular appropriations for the 

2 support of the Government shall be enacted for a biennium 

3 and shall specify the amount of appropriations provided 

4 for each fiscal year in such period. 

5 ‘‘(c) For purposes of this section, the term ‘biennium’ 

6 has the same meaning as in section 3(11) of the Congres7 sional Budget and Impoundment Control Act of 1974 (2 

8 U.S.C. 622(11)).’’. 

9 SEC. 117. MULTIYEAR AUTHORIZATIONS. 

10 (a) IN GENERAL.—Title III of the Congressional 

11 Budget Act of 1974 is amended by adding at the end the 

12 following new section: 

13 ‘‘MULTIYEAR AUTHORIZATIONS OF APPROPRIATIONS

14 ‘‘SEC. 316. (a) POINT OF ORDER.—(1)(A) It shall 

15 not be in order in the House of Representatives or the 

16 Senate to consider any measure that contains a specific 

17 authorization of appropriations for any purpose unless the 

18 measure includes such a specific authorization of appro19 priations for that purpose for not less than each fiscal year 

20 in one or more bienniums. 

21 ‘‘(B) For purposes of this paragraph, a specific au22 thorization of appropriations is an authorization for the 

23 enactment of an amount of appropriations or amounts not 

24 to exceed an amount of appropriations (whether stated as 

25 a sum certain, as a limit, or as such sums as may be nec26 essary) for any purpose for a fiscal year.
30

•HR 180 IH 

1 ‘‘(2) Paragraph (1) does not apply with respect to 

2 an authorization of appropriations for a single fiscal year 

3 for any program, project, or activity if the measure con4 taining that authorization includes a provision expressly 

5 stating the following: ‘Congress finds that no authoriza6 tion of appropriation will be required for [Insert name of 

7 applicable program, project, or activity] for any subse8 quent fiscal year.’. 

9 ‘‘(3) For purposes of this section, the term ‘measure’ 

10 means a bill, joint resolution, amendment, motion, or con11 ference report’’. 

12 (b) AMENDMENT TO TABLE OF CONTENTS.—The 

13 table of contents set forth in section 1(b) of the Congres14 sional Budget and Impoundment Control Act of 1974 is 

15 amended by adding after the item relating to section 315 

16 the following new item:

‘‘Sec. 316. Multiyear authorizations of appropriations.’’.

17 SEC. 118. GOVERNMENT STRATEGIC AND PERFORMANCE 

18 PLANS ON A BIENNIAL BASIS. 

19 (a) STRATEGIC PLANS.—Section 306 of title 5, 

20 United States Code, is amended—

21 (1) in subsection (a), by striking ‘‘September 

22 30, 1997’’ and inserting ‘‘September 30, 2005’’; 

23 (2) in subsection (b)—

24 (A) by striking ‘‘at least every three years’’ 

25 and all that follows thereafter and inserting ‘‘at
31

•HR 180 IH 

1 least every 4 years, except that strategic plans 

2 submitted by September 30, 2005, shall be up3 dated and revised by September 30, 2008’’; and 

4 (B) by striking ‘‘five years forward’’ and 

5 inserting ‘‘six years forward’’; and 

6 (3) in subsection (c), by inserting a comma 

7 after ‘‘section’’ the second place it appears and add8 ing ‘‘including a strategic plan submitted by Sep9 tember 30, 2005, meeting the requirements of sub10 section (a)’’. 

11 (b) BUDGET CONTENTS AND SUBMISSION TO CON12 GRESS.—Paragraph (28) of section 1105(a) of title 31, 

13 United States Code, is amended by striking ‘‘beginning 

14 with fiscal year 1999, a’’ and inserting ‘‘beginning with 

15 fiscal year 2008, a biennial’’. 

16 (c) PERFORMANCE PLANS.—Section 1115 of title 31, 

17 United States Code, is amended—

18 (1) in subsection (a)—

19 (A) in the matter before paragraph (1)—

20 (i) by striking ‘‘section 1105(a)(29)’’ 

21 and inserting ‘‘section 1105(a)(28)’’; and 

22 (ii) by striking ‘‘an annual’’ and in23 serting ‘‘a biennial’’; 
32

•HR 180 IH 

1 (B) in paragraph (1) by inserting after 

2 ‘‘program activity’’ the following: ‘‘for both 

3 years 1 and 2 of the biennial plan’’; 

4 (C) in paragraph (5) by striking ‘‘and’’ 

5 after the semicolon, 

6 (D) in paragraph (6) by striking the period 

7 and inserting a semicolon; and inserting ‘‘and’’ 

8 after the inserted semicolon; and 

9 (E) by adding after paragraph (6) the fol10 lowing: 

11 ‘‘(7) cover each fiscal year of the biennium be12 ginning with the first fiscal year of the next biennial 

13 budget cycle.’’; 

14 (2) in subsection (d) by striking ‘‘annual’’ and 

15 inserting ‘‘biennial’’; and 

16 (3) in paragraph (6) of subsection (f) by strik17 ing ‘‘annual’’ and inserting ‘‘biennial’’. 

18 (d) MANAGERIAL ACCOUNTABILITY AND FLEXI19 BILITY.—Section 9703 of title 31, United States Code, re20 lating to managerial accountability, is amended—

21 (1) in subsection (a)—

22 (A) in the first sentence by striking ‘‘an23 nual’’; and 

24 (B) by striking ‘‘section 1105(a)(29)’’ and 

25 inserting ‘‘section 1105(a)(28)’’; 
33

•HR 180 IH 

1 (2) in subsection (e)—

2 (A) in the first sentence by striking ‘‘one 

3 or’’ before ‘‘two years’’; 

4 (B) in the second sentence by striking ‘‘a 

5 subsequent year’’ and inserting ‘‘for a subse6 quent 2-year period’’; and 

7 (C) in the third sentence by striking 

8 ‘‘three’’ and inserting ‘‘four’’. 

9 (e) STRATEGIC PLANS.—Section 2802 of title 39, 

10 United States Code, is amended—

11 (1) in subsection (a), by striking ‘‘September 

12 30, 1997’’ and inserting ‘‘September 30, 2005’’; 

13 (2) in subsection (b), by striking ‘‘at least every 

14 three years’’ and inserting ‘‘at least every 4 years 

15 except that strategic plans submitted by September 

16 30, 2005, shall be updated and revised by September 

17 30, 2008’’; 

18 (3) in subsection (b), by striking ‘‘five years 

19 forward’’ and inserting ‘‘six years forward’’; and 

20 (4) in subsection (c), by inserting a comma 

21 after ‘‘section’’ the second place it appears and in22 serting ‘‘including a strategic plan submitted by 

23 September 30, 2005, meeting the requirements of 

24 subsection (a)’’. 
34

•HR 180 IH 

1 (f) PERFORMANCE PLANS.—Section 2803(a) of title 

2 39, United States Code, is amended—

3 (1) in the matter before paragraph (1), by 

4 striking ‘‘an annual’’ and inserting ‘‘a biennial’’; 

5 (2) in paragraph (1), by inserting after ‘‘pro6 gram activity’’ the following: ‘‘for both years 1 and 

7 2 of the biennial plan’’; 

8 (3) in paragraph (5), by striking ‘‘and’’ after 

9 the semicolon;

10 (4) in paragraph (6), by striking the period and 

11 inserting ‘‘; and’’; and 

12 (5) by adding after paragraph (6) the following: 

13 ‘‘(7) cover each fiscal year of the biennium be14 ginning with the first fiscal year of the next biennial 

15 budget cycle.’’. 

16 (g) COMMITTEE VIEWS OF PLANS AND REPORTS.—

17 Section 301(d) of the Congressional Budget Act (2 U.S.C. 

18 632(d)) is amended by adding at the end ‘‘Each committee 

19 of the Senate or the House of Representatives shall review 

20 the strategic plans, performance plans, and performance 

21 reports, required under section 306 of title 5, United 

22 States Code, and sections 1115 and 1116 of title 31, 

23 United States Code, of all agencies under the jurisdiction 

24 of the committee. Each committee may provide its views
35

•HR 180 IH 

1 on such plans or reports to the Committee on the Budget 

2 of the applicable House.’’. 

3 (h) EFFECTIVE DATE.—

4 (1) IN GENERAL.—The amendments made by 

5 this section shall take effect on March 1, 2007. 

6 (2) AGENCY ACTIONS.—Effective on and after 

7 the date of enactment of this Act, each agency shall 

8 take such actions as necessary to prepare and sub9 mit any plan or report in accordance with the 

10 amendments made by it. 

11 SEC. 119. BIENNIAL APPROPRIATION BILLS. 

12 (a) IN THE HOUSE OF REPRESENTATIVES.—(1) 

13 Clause 2(a) of rule XXI of the Rules of the House of Rep14 resentatives is amended by adding at the end the following 

15 new subparagraph: 

16 ‘‘(3)(A) Except as provided by subdivision (B), an ap17 propriation may not be reported in a general appropriation 

18 bill (other than a supplemental appropriation bill), and 

19 may not be in order as an amendment thereto, unless it 

20 provides new budget authority or establishes a level of ob21 ligations under contract authority for each fiscal year of 

22 a biennium. 

23 ‘‘(B) Subdivision (A) does not apply with respect to 

24 an appropriation for a single fiscal year for any program, 

25 project, or activity if the bill or amendment thereto con-
36

•HR 180 IH 

1 taining that appropriation includes a provision expressly 

2 stating the following: ‘Congress finds that no additional 

3 funding beyond one fiscal year will be required and the 

4 [Insert name of applicable program, project, or activity] 

5 will be completed or terminated after the amount provided 

6 has been expended.’. 

7 ‘‘(C) For purposes of paragraph (b), the statement 

8 set forth in subdivision (B) with respect to an appropria9 tion for a single fiscal year for any program, project, or 

10 activity may be included in a general appropriation bill 

11 or amendment thereto.’’. 

12 (2) Clause 5(b)(1) of rule XXII of the House of Rep13 resentatives is amended by striking ‘‘or (c)’’ and inserting 

14 ‘‘or (3) or 2(c)’’. 

15 (b) IN THE SENATE.—(1) Title III of the Congres16 sional Budget Act of 1974 (2 U.S.C. 631 et seq.) (as 

17 amended by section 117) is further amended by adding 

18 at the end the following: 

19 ‘‘CONSIDERATION OF BIENNIAL APPROPRIATION BILLS

20 ‘‘SEC. 317. It shall not be in order in the Senate in 

21 any odd-numbered year to consider any regular appropria22 tion bill providing new budget authority or a limitation 

23 on obligations under the jurisdiction of the Committee on 

24 Appropriations for only the first fiscal year of a biennium, 

25 unless the program, project, or activity for which the new 

26 budget authority or obligation limitation is provided will 
37

•HR 180 IH 

1 require no additional authority beyond one year and will 

2 be completed or terminated after the amount provided has 

3 been expended.’’. 

4 (2) The table of contents set forth in section 1(b) of 

5 the Congressional Budget and Impoundment Control Act 

6 of 1974 is amended by adding after the item relating to 

7 section 316 the following new item:

‘‘Sec. 317. Consideration of biennial appropriation bills.’’.

8 SEC. 120. ASSISTANCE BY FEDERAL AGENCIES TO STAND9 ING COMMITTEES OF THE SENATE AND THE 

10 HOUSE OF REPRESENTATIVES. 

11 (a) INFORMATION REGARDING AGENCY APPROPRIA12 TIONS REQUESTS.—To assist each standing committee of 

13 the House of Representatives and the Senate in carrying 

14 out its responsibilities, the head of each Federal agency 

15 which administers the laws or parts of laws under the ju16 risdiction of such committee shall provide to such com17 mittee such studies, information, analyses, reports, and 

18 assistance as may be requested by the chairman and rank19 ing minority member of the committee. 

20 (b) INFORMATION REGARDING AGENCY PROGRAM

21 ADMINISTRATION.—To assist each standing committee of 

22 the House of Representatives and the Senate in carrying 

23 out its responsibilities, the head of any agency shall fur24 nish to such committee documentation, containing infor25 mation received, compiled, or maintained by the agency 
38

•HR 180 IH 

1 as part of the operation or administration of a program, 

2 or specifically compiled pursuant to a request in support 

3 of a review of a program, as may be requested by the 

4 chairman and ranking minority member of such com5 mittee. 

6 (c) SUMMARIES BY COMPTROLLER GENERAL.—With7 in thirty days after the receipt of a request from a chair8 man and ranking minority member of a standing com9 mittee having jurisdiction over a program being reviewed 

10 and studied by such committee under this section, the 

11 Comptroller General of the United States shall furnish to 

12 such committee summaries of any audits or reviews of 

13 such program which the Comptroller General has com14 pleted during the preceding six years. 

15 (d) CONGRESSIONAL ASSISTANCE.—Consistent with 

16 their duties and functions under law, the Comptroller Gen17 eral of the United States, the Director of the Congres18 sional Budget Office, and the Director of the Congres19 sional Research Service shall continue to furnish (con20 sistent with established protocols) to each standing com21 mittee of the House of Representatives or the Senate such 

22 information, studies, analyses, and reports as the chair23 man and ranking minority member may request to assist 

24 the committee in conducting reviews and studies of pro25 grams under this section. 
39

•HR 180 IH 

1 SEC. 121. REPORT ON TWO-YEAR FISCAL PERIOD. 

2 Not later than 180 days after the date of enactment 

3 of this Act, the Director of the Office of Management and 

4 Budget shall—

5 (1) determine the impact and feasibility of 

6 changing the definition of a fiscal year and the 

7 budget process based on that definition to a 2-year 

8 fiscal period with a biennial budget process based on 

9 the 2-year period; and 

10 (2) report the findings of the study to the Com11 mittees on the Budget of the House of Representa12 tives and the Senate and the Committee on Rules of 

13 the House of Representatives. 

14 SEC. 122. SPECIAL TRANSITION PERIOD FOR THE 109TH 

15 CONGRESS. 

16 (a) PRESIDENT’S BUDGET SUBMISSION FOR FISCAL

17 YEAR 2006.—The budget submission of the President 

18 pursuant to section 1105(a) of title 31, United States 

19 Code, for fiscal year 2006 shall include the following: 

20 (1) An identification of the budget accounts for 

21 which an appropriation should be made for each fis22 cal year of the fiscal year 2006–2007 biennium. 

23 (2) Budget authority that should be provided 

24 for each such fiscal year for the budget accounts 

25 identified under paragraph (1).
40

•HR 180 IH 

1 (b) REVIEW AND RECOMMENDATIONS OF THE COM2 MITTEES ON APPROPRIATIONS.—The Committee on Ap3 propriations of the House of Representatives and the Sen4 ate shall review the items included pursuant to subsection 

5 (a) in the budget submission of the President for fiscal 

6 year 2006 and include its recommendations thereon in its 

7 views and estimates made under section 301(d) of the 

8 Congressional Budget Act of 1974 within 6 weeks of that 

9 budget submission. 

10 (c) ACTIONS BY THE COMMITTEES ON THE BUDG11 ET.—(1) The Committee on the Budget of the House of 

12 Representatives and the Senate shall review the items in13 cluded pursuant to subsection (a) in the budget submis14 sion of the President for fiscal year 2006 and the rec15 ommendations submitted by the Committee on Appropria16 tions of its House pursuant to subsection (b) included in 

17 its views and estimates made under section 301(d) of the 

18 Congressional Budget Act of 1974. 

19 (2) The report of the Committee on the Budget of 

20 each House accompanying the concurrent resolution on 

21 the budget for fiscal year 2006 and the joint explanatory 

22 statement of managers accompanying such resolution shall 

23 also include allocations to the Committee on Appropria24 tions of its House of total new budget authority and total 

25 outlays (which shall be deemed to be made pursuant to 
41

•HR 180 IH 

1 section 302(a) of the Congressional Budget Act of 1974 

2 for purposes of budget enforcement under section 302(f)) 

3 for fiscal year 2005 from which the Committee on Appro4 priations may report regular appropriation bills for fiscal 

5 year 2006 that include funding for certain accounts for 

6 each of fiscal years 2006 and 2007. 

7 (3) The report of the Committee on the Budget of 

8 each House accompanying the concurrent resolution on 

9 the budget for fiscal year 2006 and the joint explanatory 

10 statement of managers accompanying such resolution shall 

11 also include the assumptions upon which such allocations 

12 referred to in paragraph (2) are based. 

13 (d) GAO PROGRAMMATIC OVERSIGHT ASSIST14 ANCE.—(1) During the first session of the 109th Congress 

15 the committees of the House of Representatives and the 

16 Senate are directed to work with the Comptroller General 

17 of the United States to develop plans to transition pro18 gram authorizations to a multi-year schedule. 

19 (2) During the 109th Congress, the Comptroller Gen20 eral of the United States will continue to provide assist21 ance to the Congress with respect to programmatic over22 sight and in particular will assist the committees of Con23 gress in designing and conforming programmatic oversight 

24 procedures for the fiscal year 2007–2008 biennium. 
42

•HR 180 IH 

1 (e) CBO AUTHORIZATION REPORT.—On or before 

2 January 15, 2006, the Director of the Congressional 

3 Budget Office, after consultation with the appropriate 

4 committees of the House of Representatives and Senate, 

5 shall submit to the Congress a report listing (A) all pro6 grams and activities funded during fiscal year 2006 for 

7 which authorizations for appropriations have not been en8 acted for that fiscal year and (B) all programs and activi9 ties funded during fiscal year 2006 for which authoriza10 tions for appropriations will expire during that fiscal year, 

11 fiscal year 2007, or fiscal year 2008. 

12 (f) PRESIDENT’S BUDGET SUBMISSION FOR FISCAL

13 YEAR 2007.—The budget submission of the President 

14 pursuant to section 1105(a) of title 31, United States 

15 Code, for fiscal year 2007 shall include an evaluation of, 

16 and recommendations regarding, the transitional biennial 

17 budget process for the fiscal year 2006-2007 biennium 

18 that was carried out pursuant to this section. 

19 (g) CBO TRANSITIONAL REPORT.—On or before 

20 March 31, 2006, the Director of the Congressional Budget 

21 Office shall submit to Congress an evaluation of, and rec22 ommendations regarding, the transitional biennial budget 

23 process for the fiscal year 2006-2008 biennium that was 

24 carried out pursuant to this section. 
43

•HR 180 IH 

1 SEC. 123. EFFECTIVE DATE. 

2 Except as provided by sections 121 and 122, this title 

3 and the amendments made by it shall take effect on Janu4 ary 1, 2007, and shall apply to budget resolutions and 

5 appropriations for the biennium beginning with fiscal year 

6 2008. 

7 TITLE II—TRUTH IN SPENDING 

8 Subtitle A—Emergency Spending 

9 Legislation 

10 SEC. 201. EMERGENCY SPENDING LEGISLATION AND THE 

11 BASELINE. 

12 (a) IN GENERAL.—Section 257(a) of the Balanced 

13 Budget and Emergency Deficit Control Act of 1985 is 

14 amended by inserting ‘‘, except for emergency appropria15 tions covered by section 251(b)(2)(A) and emergency leg16 islation covered by section 252(e)’’ before the period. 

17 (b) DIRECT SPENDING AND RECEIPTS.—Section 

18 257(b)(2) of the Balanced Budget and Emergency Deficit 

19 Control Act of 1985 is amended by adding at the end the 

20 following new subparagraph: 

21 ‘‘(E) Emergency legislation covered by section 

22 252(e) shall not be extended in the baseline.’’. 

23 (c) DISCRETIONARY APPROPRIATIONS.—Section 

24 257(c) of the Balanced Budget and Emergency Deficit 

25 Control Act of 1985 is amended by adding at the end the 

26 following new paragraph: 
44

•HR 180 IH 

1 ‘‘(7) Emergency appropriations covered by sec2 tion 251(b)(2)(A) shall not be extended in the base3 line.’’. 

4 SEC. 202. OMB EMERGENCY CRITERIA. 

5 (a) DEFINITION OF EMERGENCY.—Section 3 of the 

6 Congressional Budget and Impoundment Control Act of 

7 1974 (as amended by section 113(b)) is further amended 

8 by adding at the end the following new paragraph: 

9 ‘‘(12)(A) The term ‘emergency’ means a situa10 tion that—

11 ‘‘(i) requires new budget authority and 

12 outlays (or new budget authority and the out13 lays flowing therefrom) for the prevention or 

14 mitigation of, or response to, loss of life or 

15 property, or a threat to national security; and 

16 ‘‘(ii) is unanticipated. 

17 ‘‘(B) As used in subparagraph (A), the term 

18 ‘unanticipated’ means that the underlying situation 

19 is—

20 ‘‘(i) sudden, which means quickly coming 

21 into being or not building up over time; 

22 ‘‘(ii) urgent, which means a pressing and 

23 compelling need requiring immediate action; 

24 ‘‘(iii) unforeseen, which means not pre25 dicted or anticipated as an emerging need; and
45

•HR 180 IH 

1 ‘‘(iv) temporary, which means not of a per2 manent duration.’’. 

3 (b) CONFORMING AMENDMENT.—Section 250(c) of 

4 the Balanced Budget and Emergency Deficit Control Act 

5 of 1985 is amended by adding at the end the following 

6 new paragraph: 

7 ‘‘(20) The term ‘emergency’ has the meaning 

8 given to such term in section 3 of the Congressional 

9 Budget and Impoundment Control Act of 1974.’’. 

10 SEC. 203. POINT OF ORDER TO ENFORCE DEFINITION OF 

11 EMERGENCY. 

12 (a) IN GENERAL.—Section 312 of the Congressional 

13 Budget Act of 1974 is amended by adding at the end the 

14 following new subsection: 

15 ‘‘(g) It shall not be in order in the House of Rep16 resentatives or in the Senate to consider any bill or joint 

17 resolution, or an amendment thereto or a conference re18 port thereon, which carries an emergency designation pur19 suant to section 251(b)(2)(A) or section 252(e) of the Bal20 anced Budget and Emergency Deficit Control Act of 

21 1985.’’. 

22 (b) WAIVERS AND APPEALS IN THE SENATE.—Sec23 tions 904(c)(2) and 904(d)(3) are amended by striking ‘‘, 

24 and 312(c)’’ and by inserting ‘‘312(c), and 312(g)’’. 
46

•HR 180 IH 

1 Subtitle B—The Byrd Rule 

2 SEC. 211. LIMITATION ON BYRD RULE. 

3 (a) PROTECTION OF CONFERENCE REPORTS.—Sec4 tion 313 of the Congressional Budget Act of 1974 is 

5 amended—

6 (1) in subsection (b)(1), by striking subpara7 graph (E) through the semicolon at the end thereof 

8 and by redesignating subparagraph (F) as subpara9 graph (E); 

10 (2) in subsection (c), by striking ‘‘and again 

11 upon the submission of a conference report on such 

12 a reconciliation bill or resolution,’’; 

13 (3) by striking subsection (d); 

14 (4) by redesignating subsection (e) as sub15 section (d); and 

16 (5) in subsection (e), as redesignated—

17 (A) by striking ‘‘, motion, or conference re18 port’’ the first place it appears and inserting ‘‘, 

19 or motion’’; and 

20 (B) by striking ‘‘, motion, or conference re21 port’’ the second and third places it appears 

22 and inserting ‘‘or motion’’. 

23 (b) CONFORMING AMENDMENT.—The first sentence 

24 of section 312(e) of the Congressional Budget Act of 1974 
47

•HR 180 IH 

1 is amended by inserting ‘‘, except for section 313,’’ after 

2 ‘‘Act’’. 

3 Subtitle C—Spending 

4 Accountability Reserve 

5 SEC. 231. SHORT TITLE. 

6 This subtitle may be cited as the ‘‘Spending Account7 ability Reserve Act of 2003’’. 

8 SEC. 232. SPENDING ACCOUNTABILITY RESERVE LEDGER. 

9 (a) ESTABLISHMENT OF LEDGER.—Title III of the 

10 Congressional Budget Act of 1974 (as amended by section 

11 119(a)) is further amended by adding at the end the fol12 lowing new section: 

13 ‘‘SPENDING ACCOUNTABILITY RESERVE LEDGER

14 ‘‘SEC. 318. (a) ESTABLISHMENT OF LEDGER.—The 

15 chairman of the Committee on the Budget of the House 

16 of Representatives and the chairman of the Committee on 

17 the Budget of the Senate shall each maintain a ledger to 

18 be known as the ‘Spending Accountability Reserve Ledg19 er’. The Ledger shall be divided into entries corresponding 

20 to the subcommittees of the Committees on Appropria21 tions. Each entry shall consist of three components: the 

22 ‘House Reserve Balance’; the ‘Senate Reserve Balance’; 

23 and the ‘Joint House-Senate Reserve Balance’. 

24 ‘‘(b) COMPONENTS OF LEDGER.—Each component in 

25 an entry shall consist only of amounts credited to it under 
48

•HR 180 IH 

1 subsection (c). No entry of a negative amount shall be 

2 made. 

3 ‘‘(c) CREDIT OF AMOUNTS TO LEDGER.—(1) In the 

4 House of Representatives or the Senate, whenever a Mem5 ber offers an amendment to an appropriation bill to reduce 

6 new budget authority in any account, that Member may 

7 state the portion of such reduction that shall be—

8 ‘‘(A) credited to the House or Senate Reserve 

9 Balance, as applicable; or 

10 ‘‘(B) allowed to remain within the applicable 

11 section 302(b) suballocation. 

12 If no such statement is made, the amount of reduction 

13 in new budget authority resulting from the amendment 

14 shall be credited to the House or Senate Reserve Balance, 

15 as applicable, if the amendment is agreed to.

16 ‘‘(2)(A) Except as provided by subparagraph (B), the 

17 chairmen of the Committees on the Budget shall, upon 

18 the engrossment of any appropriation bill by the House 

19 of Representatives and upon the engrossment of that bill 

20 by the Senate, credit to the applicable entry balance of 

21 that House amounts of new budget authority and outlays 

22 equal to the net amounts of reductions in new budget au23 thority and in outlays resulting from amendments agreed 

24 to by that House to that bill. 
49

•HR 180 IH 

1 ‘‘(B) When computing the net amounts of reductions 

2 in new budget authority and in outlays resulting from 

3 amendments agreed to by the House of Representatives 

4 or the Senate to an appropriation bill, the chairmen of 

5 the Committees on the Budget shall only count those por6 tions of such amendments agreed to that were so des7 ignated by the Members offering such amendments as 

8 amounts to be credited to the House or Senate Reserve 

9 Balance, as applicable, or that fall within the last sentence 

10 of paragraph (1). 

11 ‘‘(3) The chairmen of the Committees on the Budget 

12 shall, upon the engrossment of Senate amendments to any 

13 appropriation bill, credit to the applicable Joint House14 Senate Reserve Balance the amounts of new budget au15 thority and outlays equal to—

16 ‘‘(A) an amount equal to one-half of the sum of 

17 (i) the amount of new budget authority in the House 

18 Reserve Balance plus (ii) the amount of new budget 

19 authority in the Senate Reserve Balance for that 

20 bill; and 

21 ‘‘(B) an amount equal to one-half of the sum 

22 of (i) the amount of outlays in the House Reserve 

23 Balance plus (ii) the amount of outlays in the Sen24 ate Reserve Balance for that bill.
50

•HR 180 IH 

1 ‘‘(4) CALCULATION OF RESERVE SAVINGS IN SEN2 ATE.—For purposes of calculating under this section the 

3 net amounts of reductions in new budget authority and 

4 in outlays resulting from amendments agreed to by the 

5 Senate on an appropriation bill, the amendments reported 

6 to the Senate by its Committee on Appropriations shall 

7 be considered to be part of the original text of the bill. 

8 ‘‘(d) DEFINITION.—As used in this section, the term 

9 ‘appropriation bill’ means any general or special appro10 priation bill, and any bill or joint resolution making sup11 plemental, deficiency, or continuing appropriations 

12 through the end of a fiscal year. 

13 ‘‘(e) TALLY DURING HOUSE CONSIDERATION.—The 

14 chairman of the Committee on the Budget of the House 

15 of Representatives shall maintain a running tally of the 

16 amendments adopted reflecting increases and decreases in 

17 budget authority in the bill as reported. This tally shall 

18 be available to Members in the House of Representatives 

19 during consideration of any appropriations bill by the 

20 House.’’. 

21 (b) CONFORMING AMENDMENT.—The table of con22 tents set forth in section 1(b) of the Congressional Budget 

23 and Impoundment Control Act of 1974 is amended by in24 serting after the item relating to section 317 the following 

25 new item:

‘‘Sec. 318. Spending accountability reserve ledger.’’.
51

•HR 180 IH 

1 SEC. 233. DOWNWARD ADJUSTMENT OF SECTION 302(a) AL2 LOCATIONS AND SECTION 302(b) SUBALLOCA3 TIONS. 

4 (a) ALLOCATIONS.—Section 302(a) of the Congres5 sional Budget Act of 1974 is amended by adding at the 

6 end the following new paragraph: 

7 ‘‘(6) ADJUSTMENT OF ALLOCATIONS.—Upon 

8 the engrossment of Senate amendments to any ap9 propriation bill (as defined in section 318(d)) for a 

10 fiscal year, the amounts allocated under paragraph 

11 (1) or (2) to the Committee on Appropriations of 

12 each House upon the adoption of the most recent 

13 joint resolution on the budget for that fiscal year 

14 shall be adjusted downward by the amounts credited 

15 to the applicable Joint House-Senate Reserve Bal16 ance under section 318(c)(2). The revised levels of 

17 new budget authority and outlays shall be submitted 

18 to each House by the chairman of the Committee on 

19 the Budget of that House and shall be printed in the 

20 Congressional Record.’’. 

21 (b) SUBALLOCATIONS.—Section 302(b) of the Con22 gressional Budget Act of 1974 is amended by adding at 

23 the end the following new sentence: ‘‘Whenever an adjust24 ment is made under subsection (a)(6) to an allocation 

25 under that subsection, the Committee on Appropriations 

26 of each House shall make downward adjustments in the 
52

•HR 180 IH 

1 most recent suballocations of new budget authority and 

2 outlays under this subparagraph to the appropriate sub3 committees of that committee in the total amounts of 

4 those adjustments under section 318(c)(2). The revised 

5 suballocations shall be submitted to each House by the 

6 chairman of the Committee on Appropriations of that 

7 House and shall be printed in the Congressional Record.’’. 

8 SEC. 234. PERIODIC REPORTING OF LEDGER STATEMENTS. 

9 Section 308(b)(1) of the Congressional Budget Act 

10 of 1974 is amended by adding at the end the following 

11 new sentence: ‘‘Such reports shall also include an up-to12 date tabulation of the amounts contained in the ledger and 

13 each entry established by section 318(a).’’. 

14 SEC. 235. DOWNWARD ADJUSTMENT OF DISCRETIONARY 

15 SPENDING LIMITS. 

16 The discretionary spending limits for new budget au17 thority and outlays for any fiscal year set forth in section 

18 251(c) of the Balanced Budget and Emergency Deficit 

19 Control Act of 1985, shall be reduced by the amounts set 

20 forth in the final regular appropriation bill for that fiscal 

21 year or joint resolution making continuing appropriations 

22 through the end of that fiscal year. Those amounts shall 

23 be the sums of the Joint House-Senate Reserve Balances 

24 for that fiscal year, as calculated under section 302(a)(6) 

25 of the Congressional Budget Act of 1974. That bill or joint 
53

•HR 180 IH 

1 resolution shall contain the following statement of law: 

2 ‘‘As required by section 302(a)(6) of the Congressional 

3 Budget Act of 1974, for fiscal year [insert appropriate fis4 cal year] and each outyear, the adjusted discretionary 

5 spending limit for new budget authority shall be reduced 

6 by $ [insert appropriate amount of reduction] and the ad7 justed discretionary limit for outlays shall be reduced by 

8 $ [insert appropriate amount of reduction] for the fiscal 

9 year and each outyear.’’. Notwithstanding section 904(c) 

10 of the Congressional Budget Act of 1974, section 306 as 

11 it applies to this statement shall not apply. This adjust12 ment shall be reflected in reports under sections 254(e) 

13 and 254(f) of the Balanced Budget and Emergency Deficit 

14 Control Act of 1985. 

15 SEC. 236. REDUCTION IN REVENUES. 

16 The level of total revenues set forth in the concurrent 

17 resolution on the budget shall be reduced by the amounts 

18 set forth in the final regular appropriation bill for that 

19 fiscal year or joint resolution making continuing appro20 priations through the end of that fiscal year shall be re21 duced by the amount by which the discretionary spending 

22 limit for outlays is reduced for that fiscal year pursuant 

23 to section 235. At the same time, such amount shall be 

24 credited to the pay-as-you-go scorecard pursuant to sec25 tion 252(d) of the Balanced Budget and Emergency Def-
54

•HR 180 IH 

1 icit Control Act of 1985 for purposes of receipts legislation 

2 only. This adjustment shall be reflected in reports under 

3 sections 254(e) and 254(f) of such Act. To the extent that 

4 the amount so credited is not used for purposes of receipts 

5 legislation enacted during such fiscal year, it shall be re6 moved from such scorecard. 

7 Subtitle D—Enhanced Rescissions 

8 of Budget Authority Identified 

9 by the President as Wasteful 

10 Spending 

11 SEC. 251. SHORT TITLE. 

12 This title may be cited as the ‘‘Enhanced Rescissions 

13 Act of 2003’’. 

14 SEC. 252. ENHANCED CONSIDERATION OF CERTAIN PRO15 POSED RESCISSIONS. 

16 (a) IN GENERAL.—Part B of title X of the Congres17 sional Budget and Impoundment Control Act of 1974 (2 

18 U.S.C. 681 et seq.) is amended by redesignating sections 

19 1013 through 1017 as sections 1014 through 1018, re20 spectively, and by inserting after section 1012 the fol21 lowing new section: 

22 ‘‘ENHANCED CONSIDERATION OF CERTAIN PROPOSED

23 RESCISSIONS

24 ‘‘SEC. 1013. (a) PROPOSED RESCISSION OF BUDGET

25 AUTHORITY IDENTIFIED AS WASTEFUL SPENDING.—The 

26 President may propose, at the time and in the manner
55

•HR 180 IH 

1 provided in subsection (b), the rescission of any budget 

2 authority provided in an appropriation Act that he identi3 fies as wasteful spending. If the President proposes a re4 scission of budget authority, he may also propose to reduce 

5 the appropriate discretionary spending limits for new 

6 budget authority and outlays flowing therefrom set forth 

7 in section 251(c) of the Balanced Budget and Emergency 

8 Deficit Control Act of 1985 by an amount that does not 

9 exceed the amount of the proposed rescission. Funds made 

10 available for obligation under this procedure may not be 

11 proposed for rescission again under this section. 

12 ‘‘(b) TRANSMITTAL OF SPECIAL MESSAGE.—

13 ‘‘(1) The President may transmit to Congress a 

14 special message proposing to rescind amounts of 

15 budget authority and include with that special mes16 sage a draft bill that, if enacted, would only rescind 

17 that budget authority unless the President also pro18 poses a reduction in the appropriate discretionary 

19 spending limits set forth in section 251(c) of the 

20 Balanced Budget and Emergency Deficit Control 

21 Act of 1985. That bill shall clearly identify the 

22 amount of budget authority that is proposed to be 

23 rescinded for each program, project, or activity to 

24 which that budget authority relates. 
56

•HR 180 IH 

1 ‘‘(2) In the case of an appropriation Act that 

2 includes accounts within the jurisdiction of more 

3 than one subcommittee of the Committee on Appro4 priations, the President in proposing to rescind 

5 budget authority under this section shall send a sep6 arate special message and accompanying draft bill 

7 for accounts within the jurisdiction of each sub8 committee. 

9 ‘‘(3) Each special message shall specify, with 

10 respect to the budget authority proposed to be re11 scinded, the following: 

12 ‘‘(A) The amount of budget authority 

13 which he proposes to be rescinded. 

14 ‘‘(B) Any account, department, or estab15 lishment of the Government to which such 

16 budget authority is available for obligation, and 

17 the specific project or governmental functions 

18 involved. 

19 ‘‘(C) The reasons why the budget authority 

20 should be rescinded, including why he considers 

21 it to be wasteful spending. 

22 ‘‘(D) To the maximum extent practicable, 

23 the estimated fiscal, economic, and budgetary 

24 effect (including the effect on outlays and re-
57

•HR 180 IH 

1 ceipts in each fiscal year) of the proposed re2 scission. 

3 ‘‘(E) All facts, circumstances, and consid4 erations relating to or bearing upon the pro5 posed rescission and the decision to effect the 

6 proposed rescission, and to the maximum extent 

7 practicable, the estimated effect of the proposed 

8 rescission upon the objects, purposes, and pro9 grams for which the budget authority is pro10 vided. 

11 ‘‘(F) A reduction in the appropriate discre12 tionary spending limits set forth in section 

13 251(c) of the Balanced Budget and Emergency 

14 Deficit Control Act of 1985, if proposed by the 

15 President. 

16 ‘‘(c) PROCEDURES FOR EXPEDITED CONSIDER17 ATION.—

18 ‘‘(1)(A) Before the close of the second legisla19 tive day of the House of Representatives after the 

20 date of receipt of a special message transmitted to 

21 Congress under subsection (b), the majority leader 

22 or minority leader of the House of Representatives 

23 shall introduce (by request) the draft bill accom24 panying that special message. If the bill is not intro25 duced as provided in the preceding sentence, then, 
58

•HR 180 IH 

1 on the third legislative day of the House of Rep2 resentatives after the date of receipt of that special 

3 message, any Member of that House may introduce 

4 the bill. 

5 ‘‘(B) The bill shall be referred to the Com6 mittee on Appropriations. The committee shall re7 port the bill without substantive revision and with or 

8 without recommendation. The bill shall be reported 

9 not later than the seventh legislative day of that 

10 House after the date of receipt of that special mes11 sage. If that committee fails to report the bill within 

12 that period, that committee shall be automatically 

13 discharged from consideration of the bill, and the 

14 bill shall be placed on the appropriate calendar. 

15 ‘‘(C) A vote on final passage of the bill shall be 

16 taken in the House of Representatives on or before 

17 the close of the 10th legislative day of that House 

18 after the date of the introduction of the bill in that 

19 House. If the bill is passed, the Clerk of the House 

20 of Representatives shall cause the bill to be en21 grossed, certified, and transmitted to the Senate 

22 within one calendar day of the day on which the bill 

23 is passed. 

24 ‘‘(2)(A) A motion in the House of Representa25 tives to proceed to the consideration of a bill under 
59

•HR 180 IH 

1 this section shall be highly privileged and not debat2 able. An amendment to the motion shall not be in 

3 order, nor shall it be in order to move to reconsider 

4 the vote by which the motion is agreed to or dis5 agreed to. 

6 ‘‘(B) Debate in the House of Representatives 

7 on a bill under this section shall not exceed 4 hours, 

8 which shall be divided equally between those favoring 

9 and those opposing the bill. A motion further to 

10 limit debate shall not be debatable. It shall not be 

11 in order to move to recommit a bill under this sec12 tion or to move to reconsider the vote by which the 

13 bill is agreed to or disagreed to. 

14 ‘‘(C) Appeals from decisions of the Chair relat15 ing to the application of the Rules of the House of 

16 Representatives to the procedure relating to a bill 

17 under this section shall be decided without debate. 

18 ‘‘(D) Except to the extent specifically provided 

19 in the preceding provisions of this subsection, con20 sideration of a bill under this section shall be gov21 erned by the Rules of the House of Representatives. 

22 It shall not be in order in the House of Representa23 tives to consider any rescission bill introduced pursu24 ant to the provisions of this section under a suspen25 sion of the rules or under a special rule.
60

•HR 180 IH 

1 ‘‘(3) A bill transmitted to the Senate pursuant 

2 to paragraph (1)(D) shall be referred to its Com3 mittee on Appropriations. That committee shall re4 port the bill without substantive revision and with or 

5 without recommendation. The bill shall be reported 

6 not later than the seventh legislative day of the Sen7 ate after it receives the bill. A committee failing to 

8 report the bill within such period shall be automati9 cally discharged from consideration of the bill, and 

10 the bill shall be placed upon the appropriate cal11 endar. 

12 ‘‘(4)(A) A motion in the Senate to proceed to 

13 the consideration of a bill under this section shall be 

14 privileged and not debatable. An amendment to the 

15 motion shall not be in order, nor shall it be in order 

16 to move to reconsider the vote by which the motion 

17 is agreed to or disagreed to. 

18 ‘‘(B) Debate in the Senate on a bill under this 

19 section, and all debatable motions and appeals in 

20 connection therewith (including debate pursuant to 

21 subparagraph (C)), shall not exceed 10 hours. The 

22 time shall be equally divided between, and controlled 

23 by, the majority leader and the minority leader or 

24 their designees. 
61

•HR 180 IH 

1 ‘‘(C) Debate in the Senate or any debatable mo2 tion or appeal in connection with a bill under this 

3 section shall be limited to not more than 1 hour, to 

4 be equally divided between, and controlled by, the 

5 mover and the manager of the bill, except that in 

6 the event the manager of the bill is in favor of any 

7 such motion or appeal, the time in opposition there8 to, shall be controlled by the minority leader or his 

9 designee. Such leaders, or either of them, may, from 

10 time under their control of the passage of a bill, 

11 allot additional time to any Senator during the con12 sideration of any debatable motion or appeal. 

13 ‘‘(D) A motion in the Senate to further limit 

14 debate on a bill under this section is not debatable. 

15 A motion to recommit a bill under this section is not 

16 in order. 

17 ‘‘(d) AMENDMENT AND DIVISIONS PROHIBITED.—No 

18 amendment to a bill considered under this section shall 

19 be in order in either the House of Representatives or the 

20 Senate. It shall not be in order to demand a division of 

21 the question in the House of Representatives (or in a Com22 mittee of the Whole) or in the Senate. No motion to sus23 pend the application of this subsection shall be in order 

24 in either House, nor shall it be in order in either House 
62

•HR 180 IH 

1 to suspend the application of this subsection by unanimous 

2 consent. 

3 ‘‘(e) REQUIREMENT TO MAKE AVAILABLE FOR OBLI4 GATION.—Any amount of budget authority proposed to be 

5 rescinded in a special message transmitted to Congress 

6 under subsection (b) shall be made available for obligation 

7 on the day after the date on which either House rejects 

8 the bill transmitted with that special message. 

9 ‘‘(f) DEFINITIONS.—For purposes of this section: 

10 ‘‘(1) The term ‘appropriation Act’ means any 

11 general or special appropriation Act, and any Act or 

12 joint resolution making supplemental, deficiency, or 

13 continuing appropriations. 

14 ‘‘(2) The term ‘legislative day’ means, with re15 spect to either House of Congress, any day of ses16 sion. 

17 ‘‘(3) The term ‘rescind’ means, with respect to 

18 an appropriation Act, to reduce the amount of budg19 et authority appropriated in that Act, and reducing 

20 budget authority shall include reducing obligation 

21 limitations set forth in that Act.’’. 

22 (b) EXERCISE OF RULEMAKING POWERS.—Section 

23 904 of the Congressional Budget Act of 1974 (2 U.S.C. 

24 621 note) is amended—
63

•HR 180 IH 

1 (1) in subsection (a), by striking ‘‘and 1017’’ 

2 and inserting ‘‘1012, and 1017’’; and 

3 (2) in subsection (d), by striking ‘‘section 

4 1017’’ and inserting ‘‘sections 1012 and 1017’’. 

5 (c) CONFORMING AMENDMENTS.—

6 (1) Section 1011 of the Congressional Budget 

7 Act of 1974 (2 U.S.C. 682(5)) is amended by re8 pealing paragraphs (3) and (5) and by redesignating 

9 paragraph (4) as paragraph (3). 

10 (2) Section 1014 of such Act (2 U.S.C. 685) is 

11 amended—

12 (A) in subsection (b)(1), by striking ‘‘or 

13 the reservation’’; and 

14 (B) in subsection (e)(1), by striking ‘‘or a 

15 reservation’’ and by striking ‘‘or each such res16 ervation’’. 

17 (3) Section 1015(a) of such Act (2 U.S.C. 686) 

18 is amended by striking ‘‘is to establish a reserve or’’, 

19 by striking ‘‘the establishment of such a reserve or’’, 

20 and by striking ‘‘reserve or’’ each other place it ap21 pears. 

22 (4) Section 1017 of such Act (2 U.S.C. 687) is 

23 amended—
64

•HR 180 IH 

1 (A) in subsection (a), by striking ‘‘rescis2 sion bill introduced with respect to a special 

3 message or’’; 

4 (B) in subsection (b)(1), by striking ‘‘re5 scission bill or’’, by striking ‘‘bill or’’ the second 

6 place it appears, by striking ‘‘rescission bill with 

7 respect to the same special message or’’, and by 

8 striking ‘‘, and the case may be,’’; 

9 (C) in subsection (b)(2), by striking ‘‘bill 

10 or’’ each place it appears; 

11 (D) in subsection (c), by striking ‘‘rescis12 sion’’ each place it appears and by striking ‘‘bill 

13 or’’ each place it appears; 

14 (E) in subsection (d)(1), by striking ‘‘re15 scission bill or’’ and by striking ‘‘, and all 

16 amendments thereto (in the case of a rescission 

17 bill)’’; 

18 (F) in subsection (d)(2)—

19 (i) by striking the first sentence; 

20 (ii) by amending the second sentence 

21 to read as follows: ‘‘Debate on any debat22 able motion or appeal in connection with 

23 an impoundment resolution shall be limited 

24 to 1 hour, to be equally divided between, 

25 and controlled by, the mover and the man-
65

•HR 180 IH 

1 ager of the resolution, except that in the 

2 event that the manager of the resolution is 

3 in favor of any such motion or appeal, the 

4 time in opposition thereto shall be con5 trolled by the minority leader or his des6 ignee.’’; 

7 (iii) by striking the third sentence; 

8 and 

9 (iv) in the fourth sentence, by striking 

10 ‘‘rescission bill or’’ and by striking 

11 ‘‘amendment, debatable motion,’’ and by 

12 inserting ‘debatable motion’; 

13 (G) in paragraph (d)(3), by striking the 

14 second and third sentences; and 

15 (H) by striking paragraphs (4), (5), (6), 

16 and (7) of paragraph (d). 

17 (d) CLERICAL AMENDMENTS.—The table of sections 

18 for subpart B of title X of the Congressional Budget and 

19 Impoundment Control Act of 1974 is amended by redesig20 nating the item relating to sections 1014 through 1018 

21 as items 1015 through 1019, respectively, and by inserting 

22 after the item relating to section 1012 the following new 

23 item:

‘‘Sec. 1013. Enhanced consideration of certain proposed rescissions.’’.
66

•HR 180 IH 

1 Subtitle E—Extension of Discre2 tionary Spending Limits and 

3 Paygo 

4 SEC. 261. AMENDMENTS TO SECTIONS 251, 252, AND 275 OF 

5 THE BALANCED BUDGET AND EMERGENCY 

6 DEFICIT CONTROL ACT OF 1985. 

7 (a) ADJUSTMENTS TO DISCRETIONARY SPENDING

8 LIMITS.—In the matter that precedes subparagraph (A) 

9 of section 251(b)(2) of the Balanced Budget and Emer10 gency Deficit Control Act of 1985, strike ‘‘through 2002’’. 

11 (b) DISCRETIONARY SPENDING LIMIT.—Section 

12 251(c) of the Balanced Budget and Emergency Deficit 

13 Control Act of 1985 is amended as follows: 

14 (1) Strike paragraphs (1) through (6) and re15 designate paragraph (7) (which relates to fiscal year 

16 2003) as paragraph (1) and in such redesignated 

17 paragraph strike subparagraph (A), redesignate sub18 paragraphs (B) and (C) as subparagraphs (C) and 

19 (D), respectively, and before subparagraph (C), in20 sert the following new subparagraphs: 

21 ‘‘(A) for the discretionary category: 

22 $754,900,000,000 in new budget authority and 

23 $704,230,000,000 in outlays;’’

24 ‘‘(B) for the highway category: 

25 $27,728,000,000 in outlays;’’. 
67

•HR 180 IH 

1 (2) Redesignate paragraph (8) as paragraph (2) 

2 and in such redesignated paragraph strike ‘‘with re3 spect to fiscal year 2004’’, redesignate the remaining 

4 matter as subparagraph (B), and before such redes5 ignated matter insert the following: 

6 ‘‘(2) with respect to fiscal year 2004—

7 ‘‘(A) for the discretionary category: 

8 $775,020,000,000 in new budget authority and 

9 $706,970,000,000 in outlays; and’’. 

10 (3) Redesignate paragraph (9) as paragraph (3) 

11 and in such redesignated paragraph strike ‘‘with re12 spect to fiscal year 2005’’, redesignate the remaining 

13 matter as subparagraph (B), and before such redes14 ignated matter insert the following: 

15 ‘‘(3) with respect to fiscal year 2005—

16 ‘‘(A) for the discretionary category: 

17 $801,560,000,000 in new budget authority and 

18 $779,810,000,000 in outlays; and’’. 

19 (4) Redesignate paragraph (10) as paragraph 

20 (4) and in such redesignated paragraph strike ‘‘with 

21 respect to fiscal year 2006’’, redesignate the remain22 ing matter as subparagraph (B), and before such re23 designated matter insert the following: 

24 ‘‘(4) with respect to fiscal year 2006—
68

•HR 180 IH 

1 ‘‘(A) for the discretionary category: 

2 $828,600,000,000 in new budget authority and 

3 $793,650,000,000 in outlays; and’’. 

4 (5) Redesignate paragraphs (11) through (16) 

5 as paragraphs (6) through (11) and after paragraph 

6 (4) insert the following new paragraph: 

7 ‘‘(5) with respect to fiscal year 2007 for the 

8 discretionary category: $862,500,000,000 in new 

9 budget authority and $812,000,000,000 in outlays;’’. 

10 (c) EXTENSION OF PAY-AS-YOU-GO REQUIRE11 MENT.—(1) Section 252(a) of the Balanced Budget and 

12 Emergency Deficit Control Act of 1985 is amended by 

13 striking ‘‘2002’’ and inserting ‘‘2007’’. 

14 (2) Section 252(b)(1) of such Act is amended by 

15 striking ‘‘2002’’ and inserting ‘‘2007’’. 

16 (d) EXPIRATION.—Section 275(b) of the Balanced 

17 Budget and Emergency Deficit Control Act of 1985 is 

18 amended by striking ‘‘2002’’ and inserting ‘‘2007’’ and 

19 by striking ‘‘2006’’ and inserting ‘‘2011’’.

20 Subtitle F—Paygo Requirements 

21 and the On-Budget Surplus 

22 SEC. 271. PAYGO REQUIREMENTS AND THE ON-BUDGET 

23 SURPLUS. 

24 (a) SEQUESTRATION.—(1) Section 252(b)(1) of the 

25 Balanced Budget and Emergency Deficit Control Act of
69

•HR 180 IH 

1 1985 is amended by inserting ‘‘, minus the amount for 

2 the budget year, if any, estimated under paragraph (3)’’ 

3 after ‘‘as calculated under paragraph (2)’’. 

4 (2) Section 252(b) of such Act is amended by adding 

5 at the end the following new paragraph: 

6 ‘‘(3) ESTIMATE OF ON-BUDGET SURPLUS IN

7 EXCESS OF SOCIAL SECURITY SURPLUS.—OMB esti8 mates for the budget year of the amount (if any) of 

9 the budget surplus as set forth in the OMB seques10 tration preview report as calculated pursuant to sec11 tion 254(c)(3).’’. 

12 (b) REPORTS.—Section 254(c)(3) of the Balanced 

13 Budget and Emergency Deficit Control Act of 1985 is 

14 amended by adding at the end the following new subpara15 graph: 

16 ‘‘(D) The estimated excess of receipts over 

17 outlays for the budget year (if any).’’. 

18 Subtitle G—Treatment of Extra19 neous Appropriations in Omni20 bus Appropriation Measures 

21 SEC. 281. TREATMENT OF EXTRANEOUS APPROPRIATIONS. 

22 (a) IN GENERAL.—Title III of the Congressional 

23 Budget Act of 1974 (as amended by section 232)) is fur24 ther amended by adding at the end the following new sec25 tion: 
70

•HR 180 IH 

1 ‘‘TREATMENT OF EXTRANEOUS APPROPRIATIONS IN

2 OMNIBUS APPROPRIATION MEASURES

3 ‘‘SEC. 319. (a) POINT OF ORDER.—It shall not be 

4 in order in the House of Representatives or the Senate 

5 to consider an omnibus appropriation measure, or any 

6 amendment thereto or conference report thereon, that ap7 propriates funds for any program, project, or activity that 

8 is not within the subject matter jurisdiction of any sub9 committee of the Committee on Appropriations of the 

10 House of Representatives or Senate, as applicable, with 

11 jurisdiction over any regular appropriation bill contained 

12 in such measure. 

13 ‘‘(b) DEFINITIONS.—As used in this section: 

14 ‘‘(1) The term ‘omnibus appropriation measure’ 

15 means any bill or joint resolution making continuing 

16 appropriations for a fiscal year and that is com17 prised of more than one regular appropriation bills. 

18 ‘‘(2) The term ‘regular appropriation bill’ 

19 means any annual appropriation bill making appro20 priations, otherwise making funds available, or 

21 granting authority, for any of the following cat22 egories of projects and activities: 

23 ‘‘(A) Agriculture, rural development, and 

24 related agencies programs. 
71

•HR 180 IH 

1 ‘‘(B) The Departments of Commerce, Jus2 tice, and State, the judiciary, and related agen3 cies. 

4 ‘‘(C) The Department of Defense. 

5 ‘‘(D) The government of the District of 

6 Columbia and other activities chargeable in 

7 whole or in part against the revenues of the 

8 District. 

9 ‘‘(E) The Departments of Labor, Health 

10 and Human Services, and Education, and re11 lated agencies. 

12 ‘‘(F) The Department of Housing and 

13 Urban Development, and sundry independent 

14 agencies, boards, commissions, corporations, 

15 and offices. 

16 ‘‘(G) Energy and water development. 

17 ‘‘(H) Foreign assistance and related pro18 grams. 

19 ‘‘(I) The Department of the Interior and 

20 related agencies. 

21 ‘‘(J) Military construction. 

22 ‘‘(K) The Department of Transportation 

23 and related agencies. 
72

•HR 180 IH 

1 ‘‘(L) The Treasury Department, the U.S. 

2 Postal Service, the Executive Office of the 

3 President, and certain independent agencies. 

4 ‘‘(M) The legislative branch.’’. 

5 (b) CONFORMING AMENDMENT.—The table of con6 tents set forth in section 1(b) of the Congressional Budget 

7 and Impoundment Control Act of 1974 is amended by in8 serting after the item relating to section 318 the following 

9 new item:

‘‘Sec. 319. Treatment of extraneous appropriations in omnibus appropriation 

measures.’’.

10 TITLE III—BUDGETING AND 

11 MANAGING FOR RESULTS: 

12 FULL FUNDING FOR FEDERAL 

13 RETIREE COSTS 

14 Subtitle A—Accrual Funding of 

15 Pensions and Retirement Pay 

16 for Federal Employees and Uni17 formed Services Personnel 

18 SEC. 301. CIVIL SERVICE RETIREMENT SYSTEM. 

19 (a) CIVIL SERVICE RETIREMENT AND DISABILITY

20 FUND.—Chapter 83 of title 5, United States Code, is 

21 amended—

22 (1) in section 8331—

23 (A) in paragraph (17)—
73

•HR 180 IH 

1 (i) by striking ‘‘normal cost’’ and in2 serting ‘‘normal cost percentage’’; and 

3 (ii) by inserting ‘‘and standards 

4 (using dynamic assumptions)’’ after ‘‘prac5 tice’’; 

6 (B) by amending paragraph (18) to read 

7 as follows: 

8 ‘‘(18) ‘Fund balance’ means the current net as9 sets of the Fund available for payment of benefits, 

10 as determined by the Office in accordance with ap11 propriate accounting standards, but does not include 

12 any amount attributable to—

13 ‘‘(A) the Federal Employees’ Retirement 

14 System; or 

15 ‘‘(B) contributions made under the Federal 

16 Employees’ Retirement Contribution Temporary 

17 Adjustment Act of 1983 by or on behalf of any 

18 individual who became subject to the Federal 

19 Employees’ Retirement System;’’

20 (C) by amending paragraph (19) to read 

21 as follows: 

22 ‘‘(19) ‘accrued liability’ means the estimated ex23 cess of the present value of all benefits payable from 

24 the Fund to employees and Members, and former 

25 employees and Members, subject to this subchapter,
74

•HR 180 IH 

1 and their survivors, over the present value of deduc2 tions to be withheld from the future basic pay of 

3 employees and Members currently subject to this 

4 subchapter and of future agency contributions to be 

5 made in their behalf;’’

6 (D) in paragraph (27) by striking ‘‘and’’ 

7 at the end; 

8 (E) in paragraph (28) by striking the pe9 riod at the end and inserting a semicolon; and 

10 (F) by adding at the end the following 

11 paragraphs: 

12 ‘‘(29) ‘dynamic assumptions’ means economic 

13 assumptions that are used in determining actuarial 

14 costs and liabilities of a retirement system and in 

15 anticipating the effects of long-term future—

16 ‘‘(A) investment yields; 

17 ‘‘(B) increases in rates of basic pay; and 

18 ‘‘(C) rates of price inflation; and 

19 ‘‘(30) ‘unfunded liability’ means the estimated 

20 excess of—

21 ‘‘(A) the actuarial present value of all fu22 ture benefits payable from the Fund under this 

23 subchapter based on the service of current or 

24 former employees or Members, over 

25 ‘‘(B) the sum of—
75

•HR 180 IH 

1 ‘‘(i) the actuarial present value of de2 ductions to be withheld from the future 

3 basic pay of employees and Members cur4 rently subject to this chapter pursuant to 

5 section 8334; 

6 ‘‘(ii) the actuarial present value of the 

7 future contributions to be made pursuant 

8 to section 8334 with respect to employees 

9 and Members currently subject to this sub10 chapter; 

11 ‘‘(iii) the Fund balance, as defined in 

12 paragraph (18), as of the date the un13 funded liability is determined; and 

14 ‘‘(iv) any other appropriate amount, 

15 as determined by the Office of Personnel 

16 Management in accordance with generally 

17 accepted actuarial practices and prin18 ciples.’’; 

19 (2) in section 8334—

20 (A) in subsection (a)(1)—

21 (i) by striking the last two sentences; 

22 (ii) by redesignating that subsection, 

23 as so amended, as (a)(1)(A); and 

24 (iii) by adding at the end the fol25 lowing new subparagraphs: 
76

•HR 180 IH 

1 ‘‘(B) Except as provided in subparagraph (E), each 

2 employing agency having any employees or Members sub3 ject to subparagraph (A) shall contribute from amounts 

4 available for salaries and expenses an amount equal to the 

5 sum of—

6 ‘‘(i) the product of—

7 ‘‘(I) the normal cost percentage, as deter8 mined for employees (other than employees cov9 ered by clause (ii)), multiplied by 

10 ‘‘(II) the aggregate amount of basic pay 

11 payable by the agency, for the period involved, 

12 to employees (under subclause (I)) who are 

13 within such agency; and 

14 ‘‘(ii) the product of—

15 ‘‘(I) the normal cost percentage, as deter16 mined for Members, Congressional employees, 

17 law enforcement officers, firefighters, air traffic 

18 controllers, bankruptcy judges, Court of Fed19 eral Claims judges, United States magistrates, 

20 judges of the United States Court of Appeals 

21 for the Armed Forces, members of the Capitol 

22 Police, nuclear materials couriers, and members 

23 of the Supreme Court Police, multiplied by 

24 ‘‘(II) the aggregate amount of basic pay 

25 payable by the agency for the period involved, 
77

•HR 180 IH 

1 to employees and Members (under subclause 

2 (I)) who are within such agency. 

3 ‘‘(C) In determining the normal cost percentage to 

4 be applied under subparagraph (B), amounts provided for 

5 under subparagraph (A) shall be taken into account. 

6 ‘‘(D) Contributions under this paragraph shall be 

7 paid—

8 ‘‘(i) in the case of law enforcement officers, 

9 firefighters, air traffic controllers, bankruptcy 

10 judges, Court of Federal Claims judges, United 

11 States magistrates, judges of the United States 

12 Court of Appeals for the Armed Forces, members of 

13 the Supreme Court Police, nuclear materials couriers 

14 and other employees, from the appropriations or 

15 fund used to pay such law enforcement officers, fire16 fighters, air traffic controllers, bankruptcy judges, 

17 Court of Federal Claims judges, United States mag18 istrates, judges of the United States Court of Ap19 peals for the Armed Forces, members of the Su20 preme Court Police, nuclear materials couriers and 

21 other employees, respectively; 

22 ‘‘(ii) in the case of elected officials, from an ap23 propriation or fund available for payment of other 

24 salaries of the same office or establishment; and 
78

•HR 180 IH 

1 ‘‘(iii) in the case of employees of the legislative 

2 branch paid by the Clerk of the House of Represent3 atives, from the contingent fund of the House. 

4 ‘‘(E) In the case of the United States Postal Service, 

5 the Metropolitan Washington Airports Authority, and the 

6 government of the District of Columbia, an amount equal 

7 to that withheld under subparagraph (A) shall be contrib8 uted from the appropriation or fund used to pay the em9 ployee.’’; and 

10 (B) in subsection (k)—

11 (i) in paragraph (1)—

12 (I) in subparagraph (A) by strik13 ing ‘‘the first sentence of subsection 

14 (a)(1) of this section’’ and inserting 

15 ‘‘subsection (a)(1)(A)’’; and 

16 (II) by amending subparagraph 

17 (B) to read as follows: 

18 ‘‘(B) the amount of the contribution under sub19 section (a)(1)(B) shall be the amount which would 

20 have been contributed under such subsection if this 

21 subsection had not been enacted.’’; and 

22 (ii) in paragraph (2)(C)(iii) by strik23 ing ‘‘the first sentence of subsection 

24 (a)(1)’’ and inserting ‘‘subsection 

25 (a)(1)(A)’’; and
79

•HR 180 IH 

1 (3) in section 8348—

2 (A) by repealing subsection (f); 

3 (B) by amending subsection (g) to read as 

4 follows: 

5 ‘‘(g)(1)(A) Not later than June 30, 2004, the Office 

6 of the Actuary shall determine the unfunded liability of 

7 the Fund, as of September 30, 2003, attributable to bene8 fits payable under this chapter and make recommenda9 tions regarding its liquidation. After considering such rec10 ommendations, the Office shall establish an amortization 

11 schedule, including a series of annual installments com12 mencing October 1, 2004, which provides for the liquida13 tion of such liability by October 1, 2043. 

14 ‘‘(B) The Office shall redetermine the unfunded li15 ability of the Fund as of the close of the fiscal year, for 

16 each fiscal year beginning after September 30, 2003, 

17 through the fiscal year ending September 30, 2038, and 

18 shall establish a new amortization schedule, including a 

19 series of annual installments commencing on October 1 

20 of the second subsequent fiscal year, which provides for 

21 the liquidation of such liability by October 1, 2043. 

22 ‘‘(C) The Office shall redetermine the unfunded li23 ability of the Fund as of the close of the fiscal year for 

24 each fiscal year beginning after September 30, 2038, and 

25 shall establish a new amortization schedule, including a 
80

•HR 180 IH 

1 series of annual installments commencing on October 1 

2 of the second subsequent fiscal year, which provides for 

3 the liquidation of such liability over five years. 

4 ‘‘(D) Amortization schedules established under this 

5 paragraph shall be set in accordance with generally accept6 ed actuarial practices and principles, with interest com7 puted at the rate used in the most recent valuation of the 

8 Civil Service Retirement System. 

9 ‘‘(2) At the beginning of each fiscal year, beginning 

10 on October 1, 2004, the Office shall notify the Secretary 

11 of the Treasury of the amount of the first installment 

12 under the most recent amortization schedule established 

13 under paragraph (1). The Secretary shall credit that 

14 amount to the Fund, as a Government contribution, out 

15 of any money in the Treasury of the United States not 

16 otherwise appropriated. 

17 ‘‘(3) For the purpose of carrying out paragraph (1) 

18 with respect to any fiscal year, the Office may—

19 ‘‘(A) require the Board of Actuaries of the Civil 

20 Service Retirement System to make actuarial deter21 minations and valuations, make recommendations, 

22 and maintain records in accordance with section 

23 8347(f); and 

24 ‘‘(B) use the latest actuarial determinations 

25 and valuations made by such Board of Actuaries.’’; 
81

•HR 180 IH 

1 (C) in subsections (h), (i), and (m) by 

2 striking ‘‘unfunded’’ and inserting ‘‘accrued’’ 

3 each place it appears; and 

4 (D) by adding at the end the following new 

5 subsection: 

6 ‘‘(n) Under regulations prescribed by the Office, the 

7 head of an agency may request reconsideration of any 

8 amount determined to be payable with respect to such 

9 agency under section 8334(a)(1)(B)–(D). Any such re10 quest shall be referred to the Board of Actuaries of the 

11 Civil Service Retirement System. The Board of Actuaries 

12 shall review the computations of the Office and may make 

13 any adjustment with respect to any such amount which 

14 the Board determines appropriate. A determination by the 

15 Board of Actuaries under this subsection shall be final.’’. 

16 (b) GOVERNMENT CONTRIBUTIONS.—Section 8423 

17 of title 5, United States Code, is amended—

18 (1) in subsection (a)(2) by striking ‘‘section 

19 8422’’ and inserting ‘‘section 8422(a)’’; and 

20 (2) in subsection (b)(2) by striking ‘‘equal an21 nual installments’’ and inserting ‘‘annual install22 ments set in accordance with generally accepted ac23 tuarial practices and principles’’. 
82

•HR 180 IH 

1 SEC. 302. CENTRAL INTELLIGENCE AGENCY RETIREMENT 

2 AND DISABILITY SYSTEM. 

3 (a) Section 101 of the Central Intelligence Agency 

4 Retirement Act (50 U.S.C. 2001) is amended—

5 (1) in paragraph (5), to read as follows: 

6 ‘‘(5) UNFUNDED LIABILITY.—The term ‘un7 funded liability’ means the estimated excess of—

8 ‘‘(A) the actuarial present value of all fu9 ture benefits payable from the Fund under title 

10 II of this Act based on the service of current 

11 or former participants, over 

12 ‘‘(B) the sum of—

13 ‘‘(i) the actuarial present value of de14 ductions to be withheld from the future 

15 basic pay of participants currently subject 

16 to title II of this Act pursuant to section 

17 211; 

18 ‘‘(ii) the actuarial present value of the 

19 future contributions to be made pursuant 

20 to section 211 with respect to participants 

21 currently subject to title II of this Act; 

22 ‘‘(iii) the Fund balance, as defined in 

23 paragraph (4), as of the date the unfunded 

24 liability is determined; and 

25 ‘‘(iv) any other appropriate amount, 

26 as determined by the Director in accord-
83

•HR 180 IH 

1 ance with generally accepted actuarial 

2 practices and principles.’’; 

3 (2) in paragraph (6)—

4 (A) by striking ‘‘ ‘normal cost’ ’’ and in5 serting ‘‘ ‘normal cost percentage’ ’’; and 

6 (B) by inserting ‘‘and standards (using dy7 namic assumptions)’’ after ‘‘practice’’; and 

8 (3) by adding at the end the following para9 graph: 

10 ‘‘(10) DYNAMIC ASSUMPTIONS.—The term ‘dy11 namic assumptions’ means economic assumptions 

12 that are used in determining actuarial costs and li13 abilities of a retirement system and in anticipating 

14 the effects of long-term future—

15 ‘‘(A) investment yields; 

16 ‘‘(B) increases in rates of basic pay; and 

17 ‘‘(C) rates of price inflation.’’; 

18 (b) Section 202 of such Act (50 U.S.C. 2012) is 

19 amended by adding at the end the following: ‘‘The Fund 

20 is appropriated for the payment of benefits as provided 

21 by this title.’’. 

22 (c) Section 211(a)(2) of such Act (50 U.S.C. 

23 2021(a)(2)) is amended to read as follows: 

24 ‘‘(2) AGENCY CONTRIBUTIONS.—The Agency 

25 shall contribute to the Fund the amount computed
84

•HR 180 IH 

1 in a manner similar to that used under section 

2 8334(a) of title 5, United States Code, pursuant to 

3 determinations of the normal cost percentage of the 

4 Central Intelligence Agency Retirement and Dis5 ability System by the Director. Contributions under 

6 this paragraph shall be paid from amounts available 

7 for salaries and expenses.’’; and 

8 (d) Section 261 of such Act (50 U.S.C. 2091) is 

9 amended—

10 (1) by striking subsections (c), (d), and (e); and 

11 (2) by inserting after subsection (b) the fol12 lowing new subsections: 

13 ‘‘(c)(1) Not later than June 30, 2004, the Director 

14 shall cause to be made actuarial valuations of the Fund 

15 that determine the unfunded liability of the Fund, as of 

16 September 30, 2003, attributable to benefits payable 

17 under this title and make recommendations regarding its 

18 liquidation. After considering such recommendations, the 

19 Director shall establish an amortization schedule, includ20 ing a series of annual installments commencing October 

21 1, 2004, which provides for the liquidation of such liability 

22 by October 1, 2043. 

23 ‘‘(2) The Director shall redetermine the unfunded li24 ability of the Fund as of the close of the fiscal year, for 

25 each fiscal year beginning after September 30, 2003, 
85

•HR 180 IH 

1 through the fiscal year ending September 30, 2038, and 

2 shall establish a new amortization schedule, including a 

3 series of annual installments commencing on October 1 

4 of the second subsequent fiscal year, which provides for 

5 the liquidation of such liability by October 1, 2043. 

6 ‘‘(3) The Director shall redetermine the unfunded li7 ability of the Fund as of the close of the fiscal year for 

8 each fiscal year beginning after September 30, 2038, and 

9 shall establish a new amortization schedule, including a 

10 series of annual installments commencing on October 1 

11 of the second subsequent fiscal year, which provides for 

12 the liquidation of such liability over five years. 

13 ‘‘(4) Amortization schedules established under this 

14 subsection shall be set in accordance with generally accept15 ed actuarial practices and principles, with interest com16 puted at the rate used in the most recent valuation of the 

17 Civil Service Retirement and Disability System. 

18 ‘‘(d) At the beginning of each fiscal year, beginning 

19 on October 1, 2004, the Director shall notify the Secretary 

20 of the Treasury of the amount of the first installment 

21 under the most recent amortization schedule established 

22 under subsection (c). The Secretary shall credit that 

23 amount to the Fund, as a Government contribution, out 

24 of any money in the Treasury of the United States not 

25 otherwise appropriated. For the purposes of Section 504 
86

•HR 180 IH 

1 of the National Security Act of 1947, this amount shall 

2 be considered authorized.’’. 

3 (e)(1) Title III of such Act (50 U.S.C. 2151 et seq.) 

4 is amended by adding at the end the following new section: 

5 ‘‘SEC. 308. FULL FUNDING OF RETIREE COSTS FOR EM6 PLOYEES DESIGNATED UNDER SECTION 302. 

7 ‘‘(a) In addition to other government contributions 

8 required by law, the Agency shall contribute to the Civil 

9 Service Retirement and Disability fund (hereinafter in this 

10 section referred to as the ‘Fund’) amounts calculated in 

11 accordance with section 8423 of title 5, United States 

12 Code, based on the projected number of employees to be 

13 designated pursuant to section 302 of this Act. In addi14 tion, the Agency, in a manner similar to that established 

15 for employee contributions to the Fund by section 8422 

16 of title 5, United States Code, will contribute an amount 

17 equal to the difference between that which would be con18 tributed by the number of employees projected to be des19 ignated under section 302 and the amounts that are actu20 ally being deducted and contributed from the basic pay 

21 of an equal number of employees pursuant to section 

22 8422. The amounts of the Agency’s contributions under 

23 this subsection shall be determined by the Director of the 

24 Office of Personnel Management, in consultation with the 

25 Director, and shall be paid by the Agency from funds 
87

•HR 180 IH 

1 available for salaries and expenses. Agency employees des2 ignated pursuant to section 302 of this Act shall, com3 mencing with such designation, have deducted from their 

4 basic pay the full amount required by section 8422 of title 

5 5, United States Code, and such deductions shall be con6 tributed to the Fund. 

7 ‘‘(b)(1) The Director of the Office of Personnel Man8 agement, in consultation with the Director, shall deter9 mine the total amount of unpaid contributions (govern10 ment and employee contributions) and interest attrib11 utable to the number of individuals employed with the 

12 Agency on September 30, 2004, who are projected to be 

13 designated under section 302 of this Act, but are not yet 

14 designated under that section as of that date. The amount 

15 shall be referred to as the section 302 unfunded liability. 

16 ‘‘(2) Not later than June 30, 2005, the Director of 

17 the Office of Personnel Management, in consultation with 

18 the Director, shall establish an amortization schedule, set19 ting forth a series of annual installments commencing 

20 September 30, 2005, which provides for the liquidation of 

21 the section 302 unfunded liability by September 30, 2012. 

22 ‘‘(3) At the end of each fiscal year, beginning on Sep23 tember 30, 2005, the Director shall notify the Secretary 

24 of the Treasury of the amount of the annual installment 

25 under the amortization schedule established under para-
88

•HR 180 IH 

1 graph (2) of this subsection. Before closing the accounts 

2 for that fiscal year, the Secretary shall credit that amount 

3 to the Fund, out of any money in the Treasury of the 

4 United States not otherwise appropriated. 

5 ‘‘(c) Amounts paid by the Agency pursuant to this 

6 section are deemed to be specifically authorized by the 

7 Congress for the purposes of section 504 of the National 

8 Security Act of 1947.’’. 

9 (2) The table of contents of such Act is amended by 

10 inserting after the item relating to section 307 the fol11 lowing new item:

‘‘Sec. 308. Full funding of retiree costs for employees designated under section 

302.’’.

12 SEC. 303. FOREIGN SERVICE RETIREMENT AND DISABILITY 

13 SYSTEM. 

14 (a) Chapter 8 of Title I of the Foreign Service Act 

15 of 1980, Public Law 96–465, (22 U.S.C. 4041 et seq.) 

16 94 Stat. 2071, as amended, is further amended in section 

17 804 (22 U.S.C. 4044)—

18 (1) by amending paragraph (5) to read as fol19 lows: 

20 ‘‘(5) ‘normal cost percentage’ means the entry21 age normal cost computed in accordance with gen22 erally accepted actuarial practice and standards 

23 (using dynamic assumptions) and expressed as a 

24 level percentage of aggregate basic pay;’’;
89

•HR 180 IH 

1 (2) by amending paragraph (14) to read as fol2 lows: 

3 ‘‘(14) ‘unfunded liability’ means the estimated 

4 excess of—

5 ‘‘(A) the actuarial present value of all fu6 ture benefits payable from the Fund under this 

7 part based on the service of current or former 

8 participants, over 

9 ‘‘(B) the sum of—

10 ‘‘(i) the actuarial present value of de11 ductions to be withheld from the future 

12 basic pay of participants currently subject 

13 to this part pursuant to section 805; 

14 ‘‘(ii) the actuarial present value of the 

15 future contributions to be made pursuant 

16 to section 805 with respect to participants 

17 currently subject to this part; 

18 ‘‘(iii) the Fund balance, as defined in 

19 paragraph (7), as of the date the unfunded 

20 liability is determined, excluding any 

21 amount attributable to the Foreign Service 

22 Pension System, or contributions made 

23 under the Federal Employees’ Retirement 

24 Contribution Temporary Adjustment Act 

25 of 1983 by or on behalf of any individual 
90

•HR 180 IH 

1 who became subject to the Foreign Service 

2 Pension System; and 

3 ‘‘(iv) any other appropriate amount, 

4 as determined by the Secretary of the 

5 Treasury in accordance with generally ac6 cepted actuarial practices and principles.’’; 

7 and 

8 (3)(A) by striking the period at the end of 

9 paragraph (15) and inserting ‘‘; and’’; and 

10 (B) by adding at the end the following new 

11 paragraph: 

12 ‘‘(16) ‘dynamic assumptions’ means economic 

13 assumptions that are used in determining actuarial 

14 costs and liabilities of a retirement system and in 

15 anticipating the effects of long-term future—

16 ‘‘(A) investment yields; 

17 ‘‘(B) increases in rates of basic pay; and 

18 ‘‘(C) rates of price inflation.’’; 

19 (b) in section 852 (22 U.S.C. 4071a)—

20 (1) in paragraph (4)—

21 (A) by striking ‘‘normal cost’’ and insert22 ing ‘‘normal cost percentage’’; and 

23 (B) by striking ‘‘by the Secretary of 

24 State’’; 

25 (2) in paragraph (7)—
91

•HR 180 IH 

1 (A) by striking ‘‘supplemental’’ and insert2 ing ‘‘unfunded’’; 

3 (B) in subparagraph (B)(i) by striking 

4 ‘‘(I)’’ and ‘‘and (II) contributions for past civil5 ian and military service’’; and 

6 (C) in subparagraph (B)(ii) by inserting 

7 before the semicolon ‘‘with respect to partici8 pants currently subject to this part’’; and 

9 (3)(A) at the end of paragraph (8) by striking 

10 ‘‘and’’; 

11 (B) at the end of paragraph (9) by striking the 

12 period and insering ‘‘; and’’; and 

13 (C) by adding at the end the following new 

14 paragraph: 

15 ‘‘(10) ‘dynamic assumptions’ means economic 

16 assumptions that are used in determining actuarial 

17 costs and liabilities of a retirement system and in 

18 anticipating the effects of long-term future—

19 ‘‘(A) investment yields;

20 ‘‘(B) increases in rates of basic pay; and 

21 ‘‘(C) rates of price inflation.’’; 

22 (c) in section 805(a)(1) (22 U.S.C. 4045(a)(i))—

23 (1) by striking the second sentence; 

24 (2) (by redesignating that subsection, as so 

25 amended, as (a)(1)(A); 
92

•HR 180 IH 

1 (3) by redesignating the last sentence of that 

2 subsection, as so amended as (a)(1)(C); 

3 (4) by inserting after subparagraph (A) the fol4 lowing new subparagraph: 

5 ‘‘(B) Each employing agency having par6 ticipants shall contribute to the Fund the 

7 amount computed in a manner similar to that 

8 used under section 8334(a) of title 5, United 

9 States Code, pursuant to determinations of the 

10 normal cost percentage of the Foreign Service 

11 Retirement and Disability System. Contribu12 tions under this subparagraph shall be paid 

13 from the appropriations or fund used for pay14 ment of the salary of the participant.’’; 

15 (5) in subsection (a)(2)(A) by striking ‘‘An 

16 equal amount shall be contributed by the Depart17 ment’’ and inserting in its place ‘‘Each employing 

18 agency having participants shall contribute to the 

19 Fund the amount computed in a manner similar to 

20 that used under section 8334(a) of title 5, United 

21 States Code, pursuant to determinations of the nor22 mal cost percentage of the Foreign Service Retire23 ment and Disability System’’; and 

24 (6) in subsection (a)(2)(B) by striking ‘‘An 

25 equal amount shall be contributed by the Depart-
93

•HR 180 IH 

1 ment’’ and inserting in its place ‘‘Each employing 

2 agency having participants shall contribute to the 

3 Fund from amounts available for salaries and ex4 penses the amount computed in a manner similar to 

5 that used under section 8334(a) of title 5, United 

6 States Code, pursuant to determinations of the nor7 mal cost percentage of the Foreign Service Retire8 ment and Disability System’’; 

9 (d) by repealing sections 821 and 822 (22 U.S.C. 

10 4061 and 4062) and by adding the following new section: 

11 ‘‘SEC. 821. UNFUNDED LIABILITY.—(a)(1) Not later 

12 than June 30, 2004, the Secretary of State shall cause 

13 to be made actuarial valuations of the Fund that deter14 mine the unfunded liability of the Fund, as of September 

15 30, 2003, attributable to benefits payable under this sub16 chapter and make recommendations regarding its liquida17 tion. After considering such recommendations, the Sec18 retary of State shall establish an amortization schedule, 

19 including a series of annual installments commencing Oc20 tober 1, 2004, which provides for the liquidation of such 

21 liability by October 1, 2043. 

22 ‘‘(2) The Secretary of State shall redetermine the un23 funded liability of the Fund as of the close of the fiscal 

24 year, for each fiscal year beginning after September 30, 

25 2003, through the fiscal year ending September 30, 2038,
94

•HR 180 IH 

1 and shall establish a new amortization schedule, including 

2 a series of annual installments commencing on October 1 

3 of the second subsequent fiscal year, which provides for 

4 the liquidation of such liability by October 1, 2043. 

5 ‘‘(3) The Secretary of State shall redetermine the un6 funded liability of the Fund as of the close of the fiscal 

7 year for each fiscal year beginning after September 30, 

8 2038, and shall establish a new amortization schedule, in9 cluding a series of annual installments commencing on Oc10 tober 1 of the second subsequent fiscal year, which pro11 vides for the liquidation of such liability over five years. 

12 ‘‘(4) Amortization schedules established under this 

13 subsection shall be set in accordance with generally accept14 ed actuarial practices and principles, with interest com15 puted at the rate used in the most recent valuation of the 

16 Foreign Service Retirement and Disability System. 

17 ‘‘(b) At the beginning of each fiscal year, beginning 

18 on October 1, 2004, the Secretary of State shall notify 

19 the Secretary of the Treasury of the amount of the first 

20 installment under the most recent amortization schedule 

21 established under paragraph (1). The Secretary of the 

22 Treasury shall credit that amount to the Fund, as a Gov23 ernment contribution, out of any money in the Treasury 

24 of the United States not otherwise appropriated.’’; 
95

•HR 180 IH 

1 (e) in section 857(b)(1) (22 U.S.C. 4071f(b)(1)) by 

2 striking ‘‘equal annual installments’’ and inserting ‘‘an3 nual installments set in accordance with generally accept4 ed actuarial practices and principles’’; 

5 (f) in section 859 (22 U.S.C. 4071h) by adding ‘‘per6 centage’’ after ‘‘normal cost’’; 

7 (g) in section 802 (22 U.S.C. 4042) by adding at the 

8 end the following: ‘‘The Fund is appropriated for the pay9 ment of benefits as provided by this subchapter.’’; and 

10 (h) in section 818 (22 U.S.C. 4058) by striking ‘‘Sys11 tem’’ and inserting ‘‘Systems under this subchapter’’. 

12 SEC. 304. PUBLIC HEALTH SERVICE COMMISSIONED CORPS 

13 RETIREMENT SYSTEM. 

14 (a) IN GENERAL.—Title II of the Public Health Serv15 ice Act (42 U.S.C. 202 et seq.) is amended by adding at 

16 the end the following new part: 

17 ‘‘PART C—PUBLIC HEALTH SERVICE 

18 COMMISSIONED CORPS RETIREMENT SYSTEM 

19 ‘‘ESTABLISHMENT AND PURPOSE OF FUND

20 ‘‘SEC. 251. There is established on the books of the 

21 Treasury a fund to be known as the Public Health Service 

22 Commissioned Corps Retirement Fund (hereinafter in this 

23 part referred to as the ‘Fund’), which shall be adminis24 tered by the Secretary. The Fund shall be used for the 

25 accumulation of funds in order to finance on an actuarially 
96

•HR 180 IH 

1 sound basis liabilities of the Department of Health and 

2 Human Services for benefits payable on account of retire3 ment, disability, or death to commissioned officers of the 

4 Public Health Service and to their survivors pursuant to 

5 part A of this title. 

6 ‘‘ASSETS OF THE FUND

7 ‘‘SEC. 252. There shall be deposited into the Fund 

8 the following, which shall constitute the assets of the 

9 Fund: 

10 ‘‘(1) Amounts paid into the Fund under section 

11 255. 

12 ‘‘(2) Any return on investment of the assets of 

13 the Fund. 

14 ‘‘(3) Amounts transferred into the Fund pursu15 ant to section 304(c) of the Budget Fraud Elimi16 nation Act of 2003.

17 ‘‘PAYMENT FROM THE FUND

18 ‘‘SEC. 253. There shall be paid from the Fund bene19 fits payable on account of retirement, disability, or death 

20 to commissioned officers of the Public Health Service and 

21 to their survivors pursuant to part A of this title. 

22 ‘‘DETERMINATION OF CONTRIBUTIONS TO THE FUND

23 ‘‘SEC. 254. (a)(1) Not later than June 30, 2004, the 

24 Secretary shall determine the unfunded liability of the 

25 Fund attributable to service performed as of September 

26 30, 2003, which is ‘active service’ for the purpose of sec-
97

•HR 180 IH 

1 tion 212. The Secretary shall establish an amortization 

2 schedule, including a series of annual installments com3 mencing October 1, 2004, which provides for the liquida4 tion of such liability by October 1, 2043. 

5 ‘‘(2) The Secretary shall redetermine the unfunded 

6 liability of the Fund as of the close of the fiscal year, for 

7 each fiscal year beginning after September 30, 2003, 

8 through the fiscal year ending September 30, 2038, and 

9 shall establish a new amortization schedule, including a 

10 series of annual installments commencing on October 1 

11 of the second subsequent fiscal year, which provides for 

12 the liquidation of such liability by October 1, 2043. 

13 ‘‘(3) The Secretary shall redetermine the unfunded 

14 liability of the Fund as of the close of the fiscal year for 

15 each fiscal year beginning after September 30, 2038, and 

16 shall establish a new amortization schedule, including a 

17 series of annual installments commencing on October 1 

18 of the second subsequent fiscal year, which provides for 

19 the liquidation of such liability over 5 years. 

20 ‘‘(b) The Secretary shall determine each fiscal year, 

21 in sufficient time for inclusion in the budget request for 

22 the following fiscal year, the total amount of Department 

23 of Health and Human Services contributions to be made 

24 to the Fund during the fiscal year under section 255(a). 

25 That amount shall be the sum of—
98

•HR 180 IH 

1 ‘‘(1) the product of—

2 ‘‘(A) the current estimate of the value of 

3 the single level percentage of basic pay to be de4 termined under subsection (c)(1) at the time of 

5 the most recent actuarial valuation under sub6 section (c); and 

7 ‘‘(B) the total amount of basic pay ex8 pected to be paid during that fiscal year to 

9 commissioned officers of the Public Health 

10 Service on active duty (other than active duty 

11 for training); and 

12 ‘‘(2) the product of—

13 ‘‘(A) the current estimate of the value of 

14 the single level percentage of basic pay and of 

15 compensation (paid pursuant to section 206 of 

16 title 37, United States Code) to be determined 

17 under subsection (c)(2) at the time of the most 

18 recent actuarial valuation under subsection (c); 

19 and 

20 ‘‘(B) the total amount of basic pay and of 

21 compensation (paid pursuant to section 206 of 

22 title 37, United States Code) expected to be 

23 paid during the fiscal year to commissioned of24 ficers of the Reserve Corps of the Public Health 

25 Service (other than officers on full-time duty
99

•HR 180 IH 

1 other than for training) who are not otherwise 

2 described in subparagraph (A). 

3 ‘‘(c) Not less often than every four years thereafter 

4 (or by the fiscal year end prior to the effective date of 

5 any statutory change affecting benefits payable on account 

6 of retirement, disability, or death to commissioned officers 

7 or their survivors), the Secretary shall carry out an actu8 arial valuation of benefits payable on account of retire9 ment, disability, or death to commissioned officers of the 

10 Public Health Service and to their survivors pursuant to 

11 part A of this title. Each such actuarial valuation shall 

12 be signed by an enrolled Actuary and shall include—

13 ‘‘(1) a determination (using the aggregate 

14 entry-age normal cost method) of a single level per15 centage of basic pay for commissioned officers of the 

16 Public Health Service on active duty (other than ac17 tive duty for training); and 

18 ‘‘(2) a determination (using the aggregate 

19 entry-age normal cost method) of a single level per20 centage of basic pay and of compensation (paid pur21 suant to section 206 of title 37, United States Code) 

22 of commissioned officers of the Reserve Corps of the 

23 Public Health Service (other than officers on full 

24 time duty other than for training) who are not oth25 erwise described in paragraph (1). 
100

•HR 180 IH 

1 ‘‘(d) All determinations under this section shall be in 

2 accordance with generally accepted actuarial principles 

3 and practices and, where appropriate, shall follow the gen4 eral pattern of methods and assumptions approved by the 

5 Department of Defense Retirement Board of Actuaries. 

6 ‘‘(e) The Secretary shall provide for the keeping of 

7 such records as are necessary for determining the actu8 arial status of the Fund. 

9 ‘‘PAYMENTS INTO THE FUND

10 ‘‘SEC. 255. (a) From amounts available to the De11 partment of Health and Human Services for salaries and 

12 expenses, the Secretary shall pay into the Fund at the end 

13 of each month the amount that is the sum of—

14 ‘‘(1) the product of—

15 ‘‘(A) the level percentage of basic pay de16 termined using all the methods and assump17 tions approved for the most recent (as of the 

18 first day of the current fiscal year) actuarial 

19 valuation under sections 254(c)(1) (except that 

20 any statutory change affecting benefits payable 

21 on account of retirement, disability, or death to 

22 commissioned officers or their survivors that is 

23 effective after the date of that valuation and on 

24 or before the first day of the current fiscal year 

25 shall be used in such determination); and 
101

•HR 180 IH 

1 ‘‘(B) the total amount of basic pay accrued 

2 for that month by commissioned officers of the 

3 Public Health Service on active duty (other 

4 than active duty for training); and 

5 ‘‘(2) the product of—

6 ‘‘(A) the level percentage of basic pay and 

7 of compensation (paid pursuant to section 206 

8 of title 37, United States Code) determined 

9 using all the methods and assumptions ap10 proved for the most recent (as of the first day 

11 of the current fiscal year) actuarial valuation 

12 under section 254(c)(2) (except that any statu13 tory change affecting benefits payable on ac14 count of retirement, disability, or death to com15 missioned officers or their survivors that is ef16 fective after the date of that valuation and on

17 or before the first day of the current fiscal year 

18 shall be used in such determinations); and 

19 ‘‘(B) the total amount of basic pay and of 

20 compensation (paid pursuant to section 206 of 

21 title 37, United States Code) accrued for that 

22 month by commissioned officers of the Reserve 

23 Corps of the Public Health Service (other than 

24 officers on full-time duty other than for train25 ing). 
102

•HR 180 IH 

1 ‘‘(b) At the beginning of each fiscal year, beginning 

2 on October 1, 2004, the Secretary shall certify to the Sec3 retary of the Treasury the amount of the first installment 

4 under the most recent amortization schedule established 

5 under section 254(a). The Secretary of the Treasury shall 

6 pay into the Fund from the General Fund of the Treasury 

7 the amount so certified. Such payment shall be the con8 tribution to the Fund for that fiscal year. 

9 ‘‘INVESTMENTS OF ASSETS OF FUND

10 ‘‘SEC. 256. The Secretary may request the Secretary 

11 of the Treasury to invest such portion of the Fund as is 

12 not, in the judgment of the Secretary, required to meet 

13 the current needs of the Fund. Such investments shall be 

14 made by the Secretary of the Treasury in public debt secu15 rities with maturities suitable to the needs of the Fund, 

16 as determined by the Secretary, and bearing interest at 

17 rates determined by the Secretary of the Treasury, taking 

18 into consideration current market yields on outstanding 

19 marketable obligations of the United States of comparable 

20 maturities. The income on such investments shall be cred21 ited to and form a part of the Fund. 

22 ‘‘IMPLEMENTATION YEAR EXCEPTIONS

23 ‘‘SEC. 257. (a) To avoid funding shortfalls in the first 

24 year should formal actuarial determinations not be avail25 able in time for budget preparation, the amounts used in 

26 the first year in sections 255(a)(1)(A) and 255(a)(2)(A) 
103

•HR 180 IH 

1 shall be set equal to those estimates in sections 

2 254(b)(1)(A) and 254(b)(2)(A) if final determinations are 

3 not available. The original unfunded liability as defined 

4 in section 254(a) shall include an adjustment to correct 

5 for this difference between the formal actuarial determina6 tions and the estimates in sections 254(b)(1)(A) and 

7 254(b)(2)(A).’’. 

8 (b) CONFORMING AMENDMENTS.—

9 (1) CONDITION OF DETAIL.—Section 214 of the 

10 Public Health Service Act (42 U.S.C. 215) is 

11 amended by adding at the end the following new 

12 subsection: 

13 ‘‘(e) The Secretary shall condition any detail under 

14 subsection (a), (b), or (c) upon the agreement of the exec15 utive department, State, subdivision, Committee of the 

16 Congress, or institution concerned to pay to the Depart17 ment of Health and Human Services, in advance or by 

18 way of reimbursement, for the full cost of the detail in19 cluding that portion of the contributions under section 

20 255(a) that is attributable to the detailed personnel.’’. 

21 (2) EXEMPTION FROM SEQUESTRATION.—Sec22 tion 255(g)(1) of the Balanced Budget and Emer23 gency Deficit Control Act of 1985 (2 U.S.C. 

24 905(g)(1)) is amended—
104

•HR 180 IH 

1 (A) in subparagraph (A), by inserting after 

2 the item relating to ‘‘payment to the foreign 

3 service retirement and disability fund’’ the fol4 lowing item: ‘‘Payment to the Public Health 

5 Service Commissioned Corps Retirement Fund 

6 (75–0380–0–1–551);’’; and 

7 (B) in subparagraph (B), by inserting 

8 after the item relating to the ‘‘Pensions for 

9 former Presidents’’ the following item: ‘‘Public 

10 Health Service Commissioned Corps Retirement 

11 Fund (75–8274–0–7–602);’’. 

12 (c) TRANSFER OF APPROPRIATIONS.—There shall be 

13 transferred on October 1, 2005, into the fund established 

14 under section 251 of the Public Health Service Act, as 

15 added by subsection (a), any obligated or unobligated bal16 ances of appropriations made to the Department of Health 

17 and Human Services that are currently available for bene18 fits payable on account of retirement, disability, or death 

19 to commissioned officers of the Public Health Service and 

20 to their survivors pursuant to part A of title II of the Pub21 lic Health Service Act, and amounts so transferred shall 

22 be part of the assets of the Fund. 
105

•HR 180 IH 

1 SEC. 305. NATIONAL OCEANIC AND ATMOSPHERIC ADMIN2 ISTRATION COMMISSIONED OFFICER CORPS 

3 RETIREMENT SYSTEM. 

4 (a) IN GENERAL.—The National Oceanic and Atmos5 pheric Administration Commissioned Officer Corps Act of 

6 2002 (title II of Public Law 107–372) is amended by in7 serting after section 246 (33 U.S.C. 3046) the following 

8 new section: 

9 ‘‘SEC. 246A. (a) ESTABLISHMENT AND PURPOSE OF

10 NOAA COMMISSIONED OFFICER CORPS RETIREMENT

11 FUND.—(1) There is established on the books of the 

12 Treasury a fund to be known as the National Oceanic and 

13 Atmospheric Administration Commissioned Officer Corps 

14 Retirement Fund (hereinafter in this section referred to 

15 as the ‘Fund’), which shall be administered by the Sec16 retary. The Fund shall be used for the accumulation of 

17 funds in order to finance on an actuarially sound basis 

18 liabilities of the Department of Commerce under military 

19 retirement and survivor benefit programs for the commis20 sioned officers corps. 

21 ‘‘(2) The term ‘military retirement and survivor ben22 efit program’ means—

23 ‘‘(A) the provisions of this title and title 10, 

24 United States Code, creating entitlement to, or de25 termining, the amount of retired pay; 
106

•HR 180 IH 

1 ‘‘(B) the programs under the jurisdiction of the 

2 Department of Defense providing annuities for sur3 vivors and members and former members of the 

4 Armed Forces, including chapter 73 of title 10, sec5 tion 4 of Public Law 92–425, and section 5 of Pub6 lic Law 96–202, as made applicable to the commis7 sioned officer corps by section 261. 

8 ‘‘(b) ASSETS OF THE FUND.—There shall be depos9 ited into the Fund the following, which shall constitute 

10 the assets of the Fund: 

11 ‘‘(1) Amounts paid into the Fund under sub12 section (e). 

13 ‘‘(2) Any return on investment of the assets of 

14 the Fund. 

15 ‘‘(3) Amounts transferred into the Fund pursu16 ant to section 305(c) of the Budget Fraud Elimi17 nation Act of 2003.

18 ‘‘(c) PAYMENTS FROM THE FUND.—There shall be 

19 paid from the Fund benefits payable on account of mili20 tary retirement and survivor benefit programs to commis21 sioned officers of the commissioned officer corps and their 

22 survivors. 

23 ‘‘(d) DETERMINATION OF CONTRIBUTIONS TO THE

24 FUND.—(1)(A) Not later than June 30, 2004, the Sec25 retary shall determine the unfunded liability of the Fund 
107

•HR 180 IH 

1 attributable to service performed as of September 30, 

2 2003, which is ‘active service’ for the purpose of this title. 

3 The Secretary shall establish an amortization schedule, in4 cluding a series of annual installments commencing Octo5 ber 1, 2004, which provides for the liquidation of such 

6 liability by October 1, 2043. 

7 ‘‘(B) The Secretary shall redetermine the unfunded 

8 liability of the Fund as of the close of the fiscal year, for 

9 each fiscal year beginning after September 30, 2003, 

10 through the fiscal year ending September 30, 2038, and 

11 shall establish a new amortization schedule, including a 

12 series of annual installments commencing on September 

13 30 of the subsequent fiscal year, which provides for the 

14 liquidation of such liability by October 1, 2043. 

15 ‘‘(C) The Secretary shall redetermine the unfunded 

16 liability of the Fund as of the close of the fiscal year for 

17 each fiscal year beginning after September 30, 2038, and 

18 shall establish a new authorization schedule, including se19 ries of annual installments commencing on October 1 of 

20 the second subsequent fiscal year, which provides for the 

21 liquidation of such liability over 5 years. 

22 ‘‘(2) The Secretary shall determine each fiscal year, 

23 in sufficient time for inclusion in the budget request for 

24 the following fiscal year, the total amount of Department 

25 of Commerce contributions to be made to the Fund during 
108

•HR 180 IH 

1 that fiscal year under (e). The amount shall be the product 

2 of—

3 ‘‘(A) the current estimate of the value of the 

4 single level percentage of basic pay to be determined 

5 under subsection (e) at the time of the most recent 

6 actuarial valuation under paragraph (3); and 

7 ‘‘(B) the total amount of basic pay expected to 

8 be paid during that fiscal year to commissioned offi9 cers of NOAA on active duty. 

10 ‘‘(3) Not less often then every four years (or by the 

11 fiscal year end before the effective date of any statutory 

12 change affecting benefits payable on account of retire13 ment, disability, or death to commissioned officers or their 

14 survivors), the Secretary shall carry out an actuarial valu15 ation of benefits payable on account of military retirement 

16 and survivor benefit programs to commissioned officers of 

17 the Administration and to their survivors. Each such actu18 arial valuation shall be signed by an enrolled Actuary and 

19 shall include a determination (using the aggregate entry20 age normal cost method) of a single level percentage of 

21 basic pay for commissioned officers on active duty. 

22 ‘‘(4) All determinations under this section shall be in 

23 accordance with generally accepted actuarial principles 

24 and practices, and, where appropriate, shall follow the 

25 general pattern of methods and assumptions approved by
109

•HR 180 IH 

1 the Department of Defense Retirement Board of Actu2 aries. 

3 ‘‘(5) The Secretary shall provide for the keeping of 

4 such records as are necessary for determining the actu5 arial status of the Fund. 

6 ‘‘(e) PAYMENTS INTO THE FUND.—(1) From 

7 amounts appropriated to the National Oceanic Atmos8 pheric Administration for salaries and expenses, the Sec9 retary shall pay into the Fund at the end of each month 

10 the amount that is the product of—

11 ‘‘(A) the level percentage of basic pay deter12 mined using all the methods and assumptions ap13 proved for the most recent (as of the first day of the 

14 current fiscal year) actuarial valuation under sub15 section (d) (except that any statutory change affect16 ing benefits payable on account of military retire17 ment and survivor benefit programs to commissioned 

18 officers of the Administration and to their survivors 

19 that is effective date after the date of that valuation 

20 and on or before the first day of the current fiscal 

21 year shall be used in such determination); and 

22 ‘‘(B) the total amount of basic pay accrued for 

23 that month by commissioned officers on active duty. 

24 ‘‘(2)(A) At the beginning of each fiscal year, the Sec25 retary shall determine the sum of—
110

•HR 180 IH 

1 ‘‘(i) the amount of the payment for that year 

2 under the amortization of the original unfunded li3 ability of the Fund; 

4 ‘‘(ii) the amount (including any negative 

5 amount) for that year under the most recent amorti6 zation schedule determined by the Secretary for the 

7 amortization of any cumulative actuarial gain or loss 

8 to the Fund, resulting from changes in benefits; and 

9 ‘‘(iii) the amount (including any negative 

10 amount) for that year under the most recent amorti11 zation schedule determined by the Secretary for the 

12 amortization or any cumulative actuarial gain or loss 

13 to the Fund resulting from changes in actuarial as14 sumptions and from experience different from the 

15 assumed since the last valuation. 

16 The Secretary shall promptly certify the amount of the 

17 sum to the Secretary of the Treasury. 

18 ‘‘(B) Upon receiving the certification pursuant to 

19 paragraph (1), the Secretary of the Treasury shall 

20 promptly pay into the Fund from the General Fund of 

21 the Treasury the amount so certified. Such payment shall 

22 be the contribution to the Fund for that fiscal year. 

23 ‘‘(f) INVESTMENT OF ASSETS OF THE FUND.—The 

24 Secretary may request the Secretary of the Treasury to 

25 invest such portion of the Fund as is not, in the judgment 
111

•HR 180 IH 

1 of the Secretary, required to meet the current needs of 

2 the Fund. Such investments shall be made by the Sec3 retary of the Treasury in public debt securities with matu4 rities suitable to the needs of the Fund, as determined 

5 by the Secretary, and bearing interest at rates determined 

6 by the Secretary of the Treasury, taking into consideration 

7 current market yields on outstanding marketable obliga8 tions of the United States of comparable maturities. The 

9 income of such investments shall be credited to and form 

10 a part of the Fund. 

11 ‘‘(g) IMPLEMENTATION YEAR EXCEPTIONS.—(1) To 

12 avoid funding shortfalls in the first year should formal ac13 tuarial determinations not be available in time for budget 

14 preparation, the amounts used in the first year in sub15 section (e)(1)(A) shall be set equal to the estimate in sub16 section (d)(2)(A) if final determinations are not available. 

17 The original unfunded liability as determined in sub18 section (d)(1) shall include an adjustment to correct for 

19 this difference between the formal actuarial determina20 tions and the estimates in subsection (d)(2)(A).’’. 

21 (b) EXEMPTION FROM SEQUESTRATION.—Section 

22 255(g)(1)(B) of the Balanced Budget and Emergency 

23 Deficit Control Act of 1985 (2 U.S.C. 905(g)(1)(B)) is 

24 amended by striking ‘‘National Oceanic and Atmospheric 

25 Administration retirement (13–1450–0–1–306);’’ and in-
112

•HR 180 IH 

1 serting ‘‘National Oceanic and Atmospheric Administra2 tion Commissioned Officer Corps Retirement Fund;’’. 

3 (c) TRANSFER OF APPROPRIATIONS.—There shall be 

4 transferred on October 1, 2005, into the fund established 

5 under section 246A(a) of the National Oceanic and At6 mospheric Administration Commissioned Officer Corps 

7 Act of 2002 (title II of Public Law 107–372, as added 

8 by subsection (a)), any obligated and unobligated balance 

9 of appropriations made to the Department of Commerce 

10 that are available as of the date of the enactment of this 

11 Act for benefits payable on account of military retirement 

12 and survivor benefit programs to commissioned officers of 

13 the NOAA Commissioned Officer Corps and to their sur14 vivors, and amounts so transferred shall be part of the 

15 assets of the Fund, effective October 1, 2005. 

16 (d) EFFECTIVE DATE.—Subsection (c) (relating to 

17 payments from the Fund) and (e) (relating to payments 

18 into the Fund) of section 246A of the National Oceanic 

19 and Atmospheric Administration Commissioned Officer 

20 Corps Act of 2002 (title II of Public Law 107–372, as 

21 added by subsection (a)), shall take effect on October 1, 

22 2005.

23 SEC. 306. COAST GUARD MILITARY RETIREMENT SYSTEM. 

24 (a) ACCRUAL FUNDING FOR COAST GUARD RETIRE25 MENT.—
113

•HR 180 IH 

1 (1) IN GENERAL.—Chapter 11 of title 14, 

2 United States Code, is amended by adding at the 

3 end the following new subchapter: 

4 ‘‘SUBCHAPTER V—COAST GUARD MILITARY 

5 RETIREMENT FUND

6 ‘‘§ 441. Establishment and purpose of Fund; defini7 tions 

8 ‘‘(a) ESTABLISHMENT OF FUND; PURPOSE.—There 

9 is established on the books of the Treasury a fund to be 

10 known as the Coast Guard Military Retirement Fund 

11 (hereinafter in this subchapter referred to as the ‘Fund’), 

12 which shall be administered by the Secretary. The Fund 

13 shall be used for the accumulations of funds in order to 

14 finance on an actuarially sound basis liabilities of the 

15 Coast Guard under military retirement and survivor ben16 efit programs. 

17 ‘‘(b) MILITARY RETIREMENT AND SURVIVOR BEN18 EFIT PROGRAMS DEFINED.—In this subchapter, the term 

19 ‘military retirement and survivor benefit programs’ 

20 means—

21 ‘‘(1) the provisions of this title and title 10 cre22 ating entitlement to, or determining the amount of, 

23 retired pay; 

24 ‘‘(2) the programs providing annuities for sur25 vivors of members and former members of the
114

•HR 180 IH 

1 armed forces, including chapter 73 of title 10, sec2 tion 4 of Public Law 92–425, and section 5 of Pub3 lic Law 96–402; and 

4 ‘‘(3) the authority provided in section 1048(h) 

5 of title 10. 

6 ‘‘(c) SECRETARY DEFINED.—In this subchapter, the 

7 term ‘Secretary’ means the Secretary of Homeland Secu8 rity when the Coast Guard is not operating as a service 

9 in the Navy and the Secretary of Defense when the Coast 

10 Guard is operating as a service in the Navy. 

11 ‘‘§ 442. Assets of the Fund 

12 ‘‘There shall be deposited into the Fund the fol13 lowing, which shall constitute the assets of the Fund: 

14 ‘‘(1) Amounts paid into the Fund under section 

15 445 of this title. 

16 ‘‘(2) Any return on investment of the assets of 

17 the Fund. 

18 ‘‘(3) Amounts transferred into the Fund pursu19 ant to section 306(d) of the Budget Fraud Elimi20 nation Act of 2003. 

21 ‘‘§ 443. Payments from the Fund 

22 ‘‘(a) IN GENERAL.—There shall be paid from the 

23 Fund the following: 

24 ‘‘(1) Retired pay payable to persons on the re25 tired list of the Coast Guard. 
115

•HR 180 IH 

1 ‘‘(2) Retired pay payable under chapter 1223 of 

2 title 10 to former members of the Coast Guard and 

3 the former United States Lighthouse Service. 

4 ‘‘(3) Benefits payable under programs that pro5 vide annuities for survivors of members and former 

6 members of the armed forces, including chapter 73 

7 of title 10, section 4 of Public Law 92–425, and sec8 tion 5 of Public Law 96–402. 

9 ‘‘(4) Amounts payable under section 1048(h) of 

10 title 10. 

11 ‘‘(b) AVAILABILITY OF ASSETS OF THE FUND.—The 

12 assets of the Fund are hereby made available for payments 

13 under subsection (a). 

14 ‘‘§ 444. Determination of contributions to the Fund 

15 ‘‘(a) INITIAL UNFUNDED LIABILITY.—(1) Not later 

16 than June 30, 2004, the Secretary shall determine the un17 funded liability of the Fund attributable to service per18 formed as of September 30, 2003, which is ‘active service’ 

19 for the purposes of section 212. The Secretary shall estab20 lish an amortization schedule, including a series of annual 

21 installments commencing October 1, 2004, which provides 

22 for the liquidation of such liability by October 1, 2043. 

23 ‘‘(2) The Secretary shall redetermine the unfunded 

24 liability of the Fund as of the close of the fiscal year, for 

25 each beginning after September 30, 2003, through the fis-
116

•HR 180 IH 

1 cal year ending September 30, 2038, and shall establish 

2 a new amortization schedule, including a series of annual 

3 installments commencing on October 1 of the second sub4 sequent fiscal year, which provides for the liquidation of 

5 such liability by October 1, 2043. 

6 ‘‘(3) The Secretary shall redetermine the unfunded 

7 liability of the Fund as of the close of the fiscal year for 

8 each fiscal year beginning after September 30, 2038, and 

9 shall establish a new amortization schedule, including a 

10 series of annual installments commencing on October 1 

11 of the second subsequent fiscal year, which provides for 

12 the liquidation of such liability over five years. 

13 ‘‘(b) ANNUAL CONTRIBUTIONS FOR CURRENT SERV14 ICES.—(1) The Secretary shall determine each fiscal year, 

15 in sufficient time for inclusion in the budget request for 

16 the following fiscal year, the total amount of Department 

17 of Homeland Security, or Department of Defense, con18 tributions to be made to the Fund during that fiscal year 

19 under section 445(a) of this title. That amount shall be 

20 the sum of the following: 

21 ‘‘(A) The product of—

22 ‘‘(i) the current estimate of the value of 

23 the single level percentage of basic pay to be de24 termined under subsection (c)(1)(A) at the time 
117

•HR 180 IH 

1 of the most recent actuarial valuation under 

2 subsection (c); and 

3 ‘‘(ii) the total amount of basic pay ex4 pected to be paid during that fiscal year to 

5 members of the Coast Guard on active duty 

6 (other than active duty for training). 

7 ‘‘(B) The product of—

8 ‘‘(i) the current estimate of the value of 

9 the single level percentage of basic pay and of 

10 compensation (paid pursuant to section 206 of 

11 title 37) to be determined under subsection 

12 (c)(1)(B) at the time of the most recent actu13 arial valuation under subsection (c); and 

14 ‘‘(ii) the total amount of basic pay and 

15 compensation (paid pursuant to section 206 of 

16 title 37) expected to be paid during that fiscal 

17 year to members of the Coast Guard Ready Re18 serve (other than members on full-time Reserve 

19 duty other than for training) who are not other20 wise described in subparagraph (A)(ii). 

21 ‘‘(2) The amount determined under paragraph (1) for 

22 any fiscal year is the amount needed to be appropriated 

23 to the Department of Homeland Security for that fiscal 

24 year for payments to be made to the Fund during that 

25 year under section 445(a) of this title. The President shall
118

•HR 180 IH 

1 include not less than the full amount so determined in the 

2 budget transmitted to Congress for that fiscal year under 

3 section 1105 of title 31. The President may comment and 

4 make recommendations concerning any such amount. 

5 ‘‘(c) PERIODIC ACTUARIAL VALUATIONS.—(1) Not 

6 less often than every four years (or before the effective 

7 date of any statutory change affecting benefits payable on 

8 account of retirement, disability, or death to members of 

9 the Coast Guard or their survivors), the Secretary shall 

10 carry out an actuarial valuation of the Coast Guard mili11 tary retirement and survivor benefit programs. Each actu12 arial valuation of such programs shall be signed by an en13 rolled actuary and shall include—

14 ‘‘(A) a determination (using the aggregate 

15 entry-age normal cost method) of a single level per16 centage of basic pay for members of the Coast 

17 Guard on active duty (other than active duty for 

18 training); and 

19 ‘‘(B) a determination (using the aggregate 

20 entry-age normal cost method) of single level per21 centage of basic pay and of compensation (paid pur22 suant to section 206 of title 37) for members of the 

23 Ready Reserve of the Coast Guard (other than mem24 bers on full-time Reserve duty other than for train-
119

•HR 180 IH 

1 ing) who are not otherwise described in subpara2 graph (A). 

3 ‘‘(2) Such single level percentages shall be used for 

4 the purposes of subsection (b) and section 445(a) of this 

5 title. 

6 ‘‘(d) USE OF GENERALLY ACCEPTED ACTUARIAL

7 PRINCIPLES AND PRACTICES.—All determinations under 

8 this section shall be in accordance with generally accepted 

9 actuarial principles and practices and, where appropriate, 

10 shall follow the general pattern of methods and assump11 tions approved by the Department of Defense Retirement 

12 Board of Actuaries. 

13 ‘‘(e) RECORDS.—The Secretary shall provide for the 

14 keeping of such records as are necessary for determining 

15 the actuarial status of the Fund. 

16 ‘‘§ 445. Payments into the Fund 

17 ‘‘(a) MONTHLY ACCRUAL CHARGE FOR CURRENT

18 SERVICES.—From amounts appropriated to the Coast 

19 Guard for salaries and expenses, the Secretary shall pay 

20 into the Fund at the end of each month as the Department 

21 of Homeland Security, or Department of Defense, con22 tribution to the Fund for that month the amount that is 

23 the sum of the following:

24 ‘‘(1) The product of—
120

•HR 180 IH 

1 ‘‘(A) the level percentage of basic pay de2 termined using all the methods and assump3 tions approved for the most recent (as of the 

4 first day of the current fiscal year) actuarial 

5 valuation under section 444(c)(1)(A) of this 

6 title (except that any statutory change in the 

7 military retirement and survivor benefit systems 

8 that is effective after the date of that valuation 

9 and on or before the first day of the current fis10 cal year shall be used in such determination); 

11 and 

12 ‘‘(B) the total amount of basic pay accrued 

13 for that month by members of the Coast Guard 

14 on active duty (other than active duty for train15 ing). 

16 ‘‘(2) The product of—

17 ‘‘(A) the level percentage of basic pay and 

18 compensation (accrued pursuant to section 206 

19 of title 37) determined using all the methods 

20 and assumptions approved for the most recent 

21 (as of the first day of the current fiscal year) 

22 actuarial valuation under section 444(c)(1)(B) 

23 of this title (except that any statutory change 

24 in the military retirement and survivor benefit 

25 systems that is effective after the date of that 
121

•HR 180 IH 

1 valuation and on or before the first day of the 

2 current fiscal year shall be used in such deter3 mination); and 

4 ‘‘(B) the total amount of basic pay and of 

5 compensation (paid pursuant to section 206 of 

6 title 37) accrued for that month by members of 

7 the Ready Reserve (other than members of full8 time Reserve duty other than for training) who 

9 are not otherwise described in paragraph 

10 (1)(B). 

11 ‘‘(b) ANNUAL PAYMENT FOR UNFUNDED LIABIL12 ITIES.—(1) At the beginning of each fiscal year, beginning 

13 on October 1, 2004, the Secretary shall certify to the Sec14 retary of the Treasury the amount of the first installment 

15 under the most recent amortization schedule established 

16 under section 254(a). The Secretary of the Treasury shall 

17 promptly pay into the Fund from the General Fund of 

18 the Treasury the amount so certified. Such payment shall 

19 be the contribution to the Fund for that fiscal year. 

20 ‘‘§ 446. Investment of assets of the Fund 

21 ‘‘The Secretary may request the Secretary of the 

22 Treasury to invest such portion of the Fund as is not, 

23 in the judgment of the Secretary, required to meet the 

24 current needs of the Fund. Such investments shall be 

25 made by the Secretary of the Treasury in public debt secu-
122

•HR 180 IH 

1 rities with maturities suitable to the needs of the Fund, 

2 as determined by the Secretary, and bearing interest at 

3 rates determined by the Secretary of the Treasury, taking 

4 into consideration current market yields on outstanding 

5 marketable obligations of the United States of comparable 

6 maturities. The income on such investments shall be cred7 ited to and form a part of the Fund.’’. 

8 (2) TECHNICAL AMENDMENTS.—Such chapter 

9 is further amended—

10 (A) by amending the center heading after 

11 the table of sections to read as follows: 

12 ‘‘SUBCHAPTER I—OFFICERS’’; 

13 (B) by amending the center heading after 

14 section 336 to read as follows: 

15 ‘‘SUBCHAPTER II—ENLISTED MEMBERS’’; 

16 (C) by amending the center heading after 

17 section 373 to read as follows: 

18 ‘‘SUBCHAPTER III—GENERAL PROVISIONS’’; 

19 and 

20 (D) by amending the center heading after 

21 section 425 to read as follows: 

22 ‘‘SUBCHAPTER IV—SPECIAL PROVISIONS’’. 

23 (3) CLERICAL AMENDMENTS.—The table of sec24 tions at the beginning of such chapter is amended—
123

•HR 180 IH 

1 (A) by striking ‘‘OFFICERS’’ at the begin2 ning of the table and inserting ‘‘SUBCHAPTER

3 I—OFFICERS’’; 

4 (B) by striking ‘‘ENLISTED MEMBERS’’ 

5 after the item relating to section 336 and in6 serting ‘‘SUBCHAPTER II—ENLISTED MEM7 BERS’’; 

8 (C) by striking ‘‘GENERAL PROVISIONS’’ 

9 after the item relating to section 373 and in10 serting ‘‘SUBCHAPTER III—GENERAL PROVI11 SIONS’’; 

12 (D) by striking ‘‘SPECIAL PROVISIONS’’ 

13 after the item relating to section 425 and in14 serting ‘‘SUBCHAPTER IV—SPECIAL PROVI15 SIONS’’; and 

16 (E) by adding at the end the following:

‘‘SUBCHAPTER V—COAST GUARD MILITARY RETIREMENT FUND 

‘‘441. Establishment and purpose of Fund; definitions. 

‘‘442. Assets of the Fund. 

‘‘443. Payments from the Fund. 

‘‘444. Determination of contributions to the Fund. 

‘‘445. Payments into the Fund. 

‘‘446. Investment of assets of the Fund.’’.

17 (b) IMPLEMENTATION YEAR EXCEPTIONS.—To avoid 

18 funding shortfalls in the first year of implementation of 

19 subchapter V of chapter 11 of title 14, United States 

20 Code, as added by subsection (a), if formal actuarial deter21 minations are not available in time for budget preparation, 

22 the amounts used in the first year under sections 
124

•HR 180 IH 

1 445(a)(1)(A) and 445(a)(2)(A) of such title shall be set 

2 equal to those estimates in sections 444(b)(1)(A)(i) and 

3 444(b)(1)(B)(i), respectively, of such title if final deter4 minations are not available. The original unfunded liabil5 ity, as defined in section 444(a) of such title, shall include 

6 an adjustment to correct for this difference between the 

7 formal actuarial determinations and the estimates in sec8 tions 444(b)(1)(A)(i) and 444(b)(1)(B)(i) of such title.

9 (c) CONFORMING AMENDMENT.—Subparagraph (B) 

10 of section 255(g)(1) of the Balanced Budget and Emer11 gency Deficit Control Act of 1985 (2 U.S.C. 905(g)(1)) 

12 is amended by striking ‘‘Retired Pay, Coast Guard (69–

13 0241–0–1–403)’’ and inserting ‘‘Coast Guard Military Re14 tirement Fund (69–0241–01–403)’’. 

15 (d) TRANSFER OF EXISTING BALANCES.—

16 (1) TRANSFER.—There shall be transferred into 

17 the Fund on October 1, 2004, any obligated and un18 obligated balances of appropriations made to the De19 partment of Homeland Security that are currently 

20 available for retired pay, and amounts so transferred 

21 shall be part of the assets of the Fund. 

22 (2) FUND DEFINED.—For purposes of para23 graph (1), the term ‘‘Fund’’ means the Coast Guard 

24 Military Retirement Fund established under section 
125

•HR 180 IH 

1 441 of title 14, United States Code, as added by 

2 subsection (a). 

3 (e) EFFECTIVE DATE.—Sections 443 (relating to 

4 payments from the Fund) and 445 (relating to payments 

5 into the Fund) of title 14, United States Code, as added 

6 by subsection (a), shall take effect on October 1, 2004. 

7 Subtitle B—Accrual Funding of 

8 Post-Retirement Health Benefits 

9 Costs for Federal Employees 

10 SEC. 311. FEDERAL EMPLOYEES HEALTH BENEFITS FUND. 

11 (a) Section 8906 of title 5, United States Code, is 

12 amended—

13 (1) by redesignating subsection (c) as sub14 section (c)(1) and by adding at the end the following 

15 new paragraphs:

16 ‘‘(2) In addition to Government contributions re17 quired by subsection (b) and paragraph (1), each employ18 ing agency shall contribute amounts as determined by the 

19 Office to be necessary to prefund the accruing actuarial 

20 cost of post-retirement health benefits for each of the 

21 agency’s current employees who are eligible for Govern22 ment contributions under this section. Amounts under this 

23 paragraph shall be paid by the employing agency separate 

24 from other contributions under this section, from the ap-
126

•HR 180 IH 

1 propriations or fund used for payment of the salary of the 

2 employee, on a schedule to be determined by the Office. 

3 ‘‘(3) Paragraph (2) shall not apply to the United 

4 States Postal Service or the government of the District 

5 of Columbia.’’; and 

6 (2) by amending subsection (g)(1) to read as 

7 follows: 

8 ‘‘(g)(1) Except as provided in paragraphs (2) and 

9 (3), all Government contributions authorized by this sec10 tion for health benefits for an annuitant shall be paid from 

11 the Employees Health Benefits Fund to the extent that 

12 funds are available in accordance with section 8909(h)(6) 

13 and, if necessary, from annual appropriations which are 

14 authorized to be made for that purpose and which may 

15 be made available until expended.’’. 

16 (b) Section 8909 of title 5, United States Code, is 

17 amended by adding at the end the following new sub18 section: 

19 ‘‘(h)(1) Not later than June 30, 2005, the Office 

20 shall determine the existing liability of the Fund for post21 retirement health benefits, excluding the liability of the 

22 United States Postal Service for service under section 

23 8906(g)(2), under this chapter as of September 30, 2005. 

24 The Office shall establish an amortization schedule, in25 cluding a series of annual installments commencing Sep-
127

•HR 180 IH 

1 tember 30, 2005, which provides for the liquidation of 

2 such liability by September 30, 2042. 

3 ‘‘(2) At the close of each fiscal year, for fiscal years 

4 beginning after September 30, 2004, the Office shall de5 termine the supplemental liability of the Fund for post6 retirement health benefits, excluding the liability attrib7 utable to the United States Postal Service for service sub8 ject to section 8906(g)(2), and shall establish an amortiza9 tion schedule, including a series of annual installments 

10 commencing on September 30 of the subsequent fiscal 

11 year, which provides for liquidation of such supplemental 

12 liability over 30 years. 

13 ‘‘(3) Amortization schedules established under this 

14 paragraph shall be set in accordance with generally accept15 ed actuarial practices and principles. 

16 ‘‘(4) At the end of each fiscal year on and after Sep17 tember 30, 2005, the Office shall notify the Secretary of 

18 the Treasury of the amounts of the next installments 

19 under the most recent amortization schedules established 

20 under paragraphs (1) and (2). Before closing the accounts 

21 for the fiscal year, the Secretary shall credit the sum of 

22 these amounts (including in that sum any negative 

23 amount for the amortization of the supplemental liability) 

24 to the Fund, as a Government contribution, out of any
128

•HR 180 IH 

1 money in the Treasury of the United States not otherwise 

2 appropriated. 

3 ‘‘(5) For the purpose of carrying out paragraphs (1) 

4 and (2), the Office shall perform or arrange for actuarial 

5 determinations and valuations and shall prescribe reten6 tion of such records as it considers necessary for making 

7 periodic actuarial valuations of the Fund. 

8 ‘‘(6) Notwithstanding subsection (b), the amounts de9 posited into the Fund pursuant to this subsection and sec10 tion 8906(c)(2) to prefund post-retirement health benefits 

11 costs shall be segregated within the Fund so that such 

12 amounts, as well as earnings and proceeds under sub13 section (c) attributable to them, may be used exclusively 

14 for the purpose of paying Government contributions for 

15 post-retirement health benefits costs. When such amounts 

16 are used in combination with amounts withheld from an17 nuitants to pay for health benefits, a portion of the con18 tributions shall then be set aside in the Fund as described 

19 in subsection (b). 

20 ‘‘(7) Under this subsection, ‘supplemental liability’ 

21 means—

22 ‘‘(A) the actuarial present value for future post23 retirement health benefits that are the liability of 

24 the Fund, less 

25 ‘‘(B) the sum of—
129

•HR 180 IH 

1 ‘‘(i) the actuarial present value of all fu2 ture contributions by agencies and annuitants 

3 to the Fund toward those benefits pursuant to 

4 section 8906; 

5 ‘‘(ii) the present value of all scheduled am6 ortization payments to the Fund pursuant to 

7 paragraphs (1) and (2); 

8 ‘‘(iii) the Fund balance as of the date the 

9 supplemental liability is determined, to the ex10 tent that such balance is attributable to post-re11 tirement benefits; and 

12 ‘‘(iv) any other appropriate amount, as de13 termined by the Office in accordance with gen14 erally accepted actuarial practices and prin15 ciples.’’.

16 SEC. 312. FUNDING UNIFORMED SERVICES HEALTH BENE17 FITS FOR ALL RETIREES. 

18 Title 10, United States Code, is amended—

19 (1) in the title of chapter 56, by striking ‘‘DE20 PARTMENT OF DEFENSE MEDICARE21 ELIGIBLE’’ and inserting ‘‘UNIFORMED 

22 SERVICES’’; 

23 (2) in section 1111—

24 (A) in subsection (a)—
130

•HR 180 IH 

1 (i) by striking ‘‘Department of De2 fense Medicare-Eligible’’ and inserting 

3 ‘‘Uniformed Services’’; 

4 (ii) by striking ‘‘Department of De5 fense under’’; and 

6 (iii) by striking ‘‘for medicare-eligible 

7 beneficiaries’’; 

8 (B) in subsection (c)—

9 (i) by striking ‘‘The Secretary of De10 fense may’’ and inserting ‘‘The Secretary 

11 of Defense shall’’; 

12 (ii) by striking ‘‘with any other’’ and 

13 inserting ‘‘with each’’;

14 (iii) by striking ‘‘Any such agree15 ment’’ and inserting ‘‘Such agreements’’; 

16 and 

17 (iv) by striking ‘‘administering Sec18 retary may’’ and inserting ‘‘administrative 

19 Secretary shall’’; 

20 (3) in section 1113—

21 (A) in subsection (a)—

22 (i) by striking ‘‘and are medicare eli23 gible’’; 

24 (ii) by striking ‘‘who are medicare eli25 gible’’; and 
131

•HR 180 IH 

1 (iii) by adding at the end the fol2 lowing new sentence: ‘‘For the fiscal year 

3 starting October 1, 2003, only, the pay4 ments will be solely for the costs of mem5 bers or former members of a uniformed 

6 service who are entitled to retired or re7 tainer pay and are medicare-eligible, and 

8 eligible dependents or survivors who are 

9 medicare-eligible.’’; 

10 (B) in subsection (c)(1), by striking ‘‘who 

11 are medicare-eligible’’; 

12 (C) in subsection (d), by striking ‘‘who are 

13 medicare-eligible’’; and 

14 (D) in subsection (f), by striking ‘‘If’’ and 

15 inserting ‘‘When’’; 

16 (4) in section 1114, in subsection (a)(1), by 

17 striking ‘‘Department of Defense Medicare-Eligible’’ 

18 and inserting ‘‘Uniformed Services’’; 

19 (5) in section 1115—

20 (A) in subsection (b)(2), by striking ‘‘The 

21 amount determined under paragraph (1) for 

22 any fiscal year is the amount needed to be ap23 propriated to the Department of Defense (or to 

24 the other executive department having jurisdic25 tion over the participating uniformed service)’’ 
132

•HR 180 IH 

1 and inserting ‘‘The amount determined under 

2 paragraph (1), or the amount determined under 

3 section 1111(c) for a participating uniformed 

4 service, for any fiscal year, is the amount need5 ed to be appropriated to the Department of De6 fense (or to any other executive department 

7 having jurisdiction over a participating uni8 formed service)’’; 

9 (B) in subsection (c)(2), by striking ‘‘for 

10 medicare eligible beneficiaries’’; and 

11 (C) by adding at the end the following new 

12 subsection: 

13 ‘‘(f) For the fiscal year starting October 1, 2003, 

14 only, the amounts in this section shall be based solely on 

15 the costs of medicare-eligible benefits of beneficiaries and 

16 the costs for their eligible dependents or survivors who are 

17 medicare-eligible, and shall be recalculated thereafter to 

18 reflect the cost of beneficiaries defined in section 1111.’’; 

19 and 

20 (6) in section 1116—

21 (A) in subsection (a)(1)(A), by striking 

22 ‘‘for medicare-eligible beneficiaries’’; 

23 (B) in subsection (a)(2)(A), by striking 

24 ‘‘for medicare-eligible beneficiaries’’; and 
133

•HR 180 IH 

1 (C) in subsection (c), by striking ‘‘sub2 section (a) shall be paid from funds available 

3 for the health care programs’’ and inserting 

4 ‘‘subsection (a) and section 1111(c) shall be 

5 paid from funds available for the pay of mem6 bers of the participating uniformed services 

7 under the jurisdiction of the respective admin8 istering secretaries’’. 

9 SEC. 313. EFFECTIVE DATE. 

10 Except as otherwise provided, this title shall take ef11 fect upon enactment with respect to fiscal years beginning 

12 after 2004.

Æ