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[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 180 Introduced in House (IH)]

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.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited at the ``Budget Fraud 
Elimination Act of 2003''.
    (b) Table of Contents.--

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

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.

                      TITLE I--TRUTH IN BUDGETING

                  Subtitle A--Limit on the Public Debt

SEC. 101. FINDINGS.

    The Congress finds the following:
            (1) Since 1997, Congress has paid down and retired 
        approximately $450,000,000,000 of the Government's debt which 
        was previously held by the public.
            (2) This reduction in the Government's debt to the public 
        should permit a lowering of the statutory debt ceiling. 
        However, the statutory definition mingles both the public debt 
        and intragovernment liabilities, the latter of which do not 
        represent resource withdrawals for the economy.
            (3) Intragovernment accounts such as the social security 
        trust funds, the Civil Service Retirement and Disability Fund, 
        the Department of Defense Military Retirement Fund, and the 
        Unemployment Trust Fund constitute accrued liabilities of the 
        Government which will be paid from future receipts, taxes, or 
        borrowing. If the Government issues debt to the public to fund 
        such liabilities in the future, that debt will properly be 
        subject to the debt ceiling.
            (4) Properly defining the debt of the Government would 
        permit lowering the debt ceiling to take account of, and lock 
        in, the fiscal progress that has been made.

SEC. 102. PURPOSE.

    It is the purpose of this subtitle to--
            (1) properly define the public debt to exclude 
        intragovernment obligations; and
            (2) reduce the public debt ceiling in recognition of the 
        reduction in outstanding public debt in recent years, and to 
        encourage further fiscal responsibility and progress toward 
eliminating the remaining outstanding debt.

SEC. 103. LIMIT ON PUBLIC DEBT.

    Section 3101 of title 31, United States Code, is amended to read as 
follows:
``Sec. 3101. Public debt limit
    ``(a) In this section, the current redemption value of an 
obligation issued on a discount basis and redeemable before maturity at 
the option of its holder is deemed to be the face amount of the 
obligation.
    ``(b) The face amount of obligations issued under this chapter and 
the face amount of obligations whose principal and interest are 
guaranteed by the United States Government (except guaranteed 
obligations held by the Secretary of the Treasury and intragovernmental 
holdings) may not be more than $3,870,000,000,000 outstanding at one 
time, subject to changes periodically made in that amount as provided 
by law.
    ``(c) For purposes of this section, the face amount, for any month, 
of any obligation issued on a discount basis that is not redeemable 
before maturity at the option of the holder of the obligation is an 
amount equal to the sum of--
            ``(1) the original issue price of the obligation, plus
            ``(2) the portion of the discount on the obligation 
        attributable to periods before the beginning of such month (as 
        determined under the principles of section 1272(a) of the 
        Internal Revenue Code of 1986 without regard to any exceptions 
        contained in paragraph (2) of such section).
    ``(d) For purposes of this section, the term `intragovernment 
holding' is any obligation issued by the Secretary of the Treasury to 
any Federal trust fund or Government account, whether in respect of 
public money, money otherwise required to be deposited in the Treasury, 
or amounts appropriated.''.

            Subtitle B--Establishment of Biennial Budgeting

SECTION 111. FINDINGS.

    The Congress finds that--
            (1) the annual appropriations and budget process 
        increasingly dominates the congressional agenda and Congress 
        regularly fails to meet the deadlines of the Congressional 
        Budget Act of 1974;
            (2) the design of the budget process has led to repetitive 
        and time-consuming budget votes, decreasing the time available 
        for the systematic and programmatic oversight of Federal 
        programs and delaying the enactment of legislation necessary to 
        fund the Government;
            (3) Congress' responsibility to improve the efficiency, 
        economy, and effectiveness of governmental operations, evaluate 
        programs and performance, detect and prevent poor 
        administration, waste, or abuse in Government programs, ensure 
        that executive policies reflect the public interest, ensure 
        administrative compliance with legislative intent, and prevent 
        executive encroachment on legislative authority and 
        prerogatives is undermined by the current time-consuming and 
        repetitive budget process;
            (4) an annual budget process encourages inefficiency in the 
        management, stability, and predictability of Federal funding, 
        particularly for States and localities;
            (5) a biennial budget process will reduce the number of 
        budget-related votes during each Congress, enhance 
        congressional oversight of Government operations, encourage 
        longer time horizons in policy planning and greater stability 
        in fiscal policy;
            (6) a biennial budget process was a principal 
        recommendation of the 1993 Joint Committee on the Organization 
        of Congress and the Vice President's National Performance 
        Review;
            (7) since the enactment of the Congressional Budget Act of 
        1974, more than 50 bills addressing a two-year budget cycle 
        have been introduced, 10 biennial budget related provisions 
        were reported by congressional committees, 7 passed either 
        chamber and 4 were enacted; more than 40 congressional or 
        special committee hearings addressed the issue of biennial 
        budgeting; and the Congressional Budget Office, the Office of 
        Management and Budget, and 5 different special task forces or 
        joint committees of Congress have either recommended biennial 
        budgeting or further studies of it;
            (8) the adoption of a biennial budget process was 
        recommended by President Reagan in the fiscal year 1989 budget 
        submission, by President Bush in the fiscal year 1990 and 1991 
        budget submissions, by President Clinton in the fiscal year 
        1995, 2000, and 2001 budget submissions, and by President Bush 
        in the fiscal year 2002 budget submission; and
            (9) a bipartisan majority of Members of the House of 
        Representatives support a biennial budget process.

SEC. 112. REVISION OF TIMETABLE.

    Section 300 of the Congressional Budget Act of 1974 (2 U.S.C. 631) 
is amended to read as follows:

                              ``timetable

    ``Sec. 300. (a) In General.--Except as provided by subsection (b), 
the timetable with respect to the congressional budget process for any 
Congress (beginning with 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    Committees submit views and estimates to Budget Committees.
 submission.
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           Congressional Budget Office submits report to Budget Committees.
 President submits budget review.
The last day of the session..........  Congress completes action on bills and resolutions authorizing new budget
                                        authority for the succeeding biennium.
 

    ``(b) Special Rule.--In the case of any first session of Congress 
that begins in any year during which the term of a President (except a 
President who succeeds himself) begins, the following dates shall 
supersede those set forth in subsection (a):

                                       ``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.''.
 

SEC. 113. AMENDMENTS TO THE CONGRESSIONAL BUDGET AND IMPOUNDMENT 
              CONTROL ACT OF 1974.

    (a) Declaration of Purpose.--Section 2(2) of the Congressional 
Budget and Impoundment Control Act of 1974 (2 U.S.C. 621(2)) is amended 
by striking ``each year'' and inserting ``biennially''.
    (b) Definitions.--
            (1) Budget resolution.--Section 3(4) of such Act (2 U.S.C. 
        622(4)) is amended by striking ``fiscal year'' each place it 
        appears and inserting ``biennium''.
            (2) Biennium.--Section 3 of such Act (2 U.S.C. 622) is 
        amended by adding at the end the following new paragraph:
            ``(11) The term `biennium' means the period of 2 
        consecutive fiscal years beginning on October 1 of any odd-
        numbered year.''.
    (c) Biennial Concurrent Resolution on the Budget.--
            (1) Contents of resolution.--Section 301(a) of such Act (2 
        U.S.C. 632(a)) is amended--
                    (A) in the matter preceding paragraph (1) by--
                            (i) striking ``April 15 of each year'' and 
                        inserting ``May 15 of each odd-numbered year'';
                            (ii) striking ``the fiscal year beginning 
                        on October 1 of such year'' the first place it 
                        appears and inserting ``the biennium beginning 
                        on October 1 of such year''; and
                            (iii) striking ``the fiscal year beginning 
                        on October 1 of such year'' the second place it 
                        appears and inserting ``each fiscal year in 
                        such period'';
                    (B) in paragraph (6), by striking ``for the fiscal 
                year'' and inserting ``for each fiscal year in the 
                biennium''; and
                    (C) in paragraph (7), by striking ``for the fiscal 
                year'' and inserting ``for each fiscal year in the 
                biennium''.
            (2) Additional matters.--Section 301(b) of such Act (2 
        U.S.C. 632(b)) is amended--
                    (A) in paragraph (3), by striking ``for such fiscal 
                year'' and inserting ``for either fiscal year in such 
                biennium''; and
                    (B) in paragraph (7), by striking ``for the first 
                fiscal year'' and inserting ``for each fiscal year in 
                the biennium''.
            (3) Views of other committees.--Section 301(d) of such Act 
        (2 U.S.C. 632(d)) is amended by inserting ``(or, if applicable, 
        as provided by section 300(b))'' after ``United States Code''.
            (4) Hearings.--Section 301(e)(1) of such Act (2 U.S.C. 
        632(e)) is amended by--
                    (A) striking ``fiscal year'' and inserting 
                ``biennium''; and
                    (B) inserting after the second sentence the 
                following: ``On or before April 1 of each odd-numbered 
                year (or, if applicable, as provided by section 
                300(b)), the Committee on the Budget of each House 
                shall report to its House the concurrent resolution on 
                the budget referred to in subsection (a) for the 
                biennium beginning on October 1 of that year.''.
            (5) Goals for reducing unemployment.--Section 301(f) of 
        such Act (2 U.S.C. 632(f)) is amended by striking ``fiscal 
        year'' each place it appears and inserting ``biennium''.
            (6) Economic assumptions.--Section 301(g)(1) of such Act (2 
        U.S.C. 632(g)(1)) is amended by striking ``for a fiscal year'' 
        and inserting ``for a biennium''.
            (7) Section heading.--The section heading of section 301 of 
        such Act is amended by striking ``annual'' and inserting 
        ``biennial''.
            (8) Table of contents.--The item relating to section 301 in 
        the table of contents set forth in section 1(b) of such Act is 
        amended by striking ``Annual'' and inserting ``Biennial''.
    (d) Committee Allocations.--Section 302 of such Act (2 U.S.C. 633) 
is amended--
            (1) in subsection (a)(1) by--
                    (A) striking ``for the first fiscal year of the 
                resolution,'' and inserting ``for each fiscal year in 
                the biennium,'';
                    (B) striking ``for that period of fiscal years'' 
                and inserting ``for all fiscal years covered by the 
                resolution''; and
                    (C) striking ``for the fiscal year of that 
                resolution'' and inserting ``for each fiscal year in 
                the biennium'';
            (2) in subsection (f)(1), by striking ``for a fiscal year'' 
        and inserting ``for a biennium'';
            (3) in subsection (f)(1), by striking ``first fiscal year'' 
        and inserting ``either fiscal year of the biennium'';
            (4) in subsection (f)(2)(A), by--
                    (A) striking ``first fiscal year'' and inserting 
                ``each fiscal year of the biennium''; and
                    (B) striking ``the total of fiscal years'' and 
                inserting ``the total of all fiscal years covered by 
                the resolution''; and
            (5) in subsection (g)(1)(A), by striking ``April'' and 
        inserting ``May''.
    (e) Section 303 Point of Order.--
            (1) In general.--Section 303(a) of such Act (2 U.S.C. 
        634(a)) is amended by striking ``for a fiscal year'' and 
        inserting ``for a biennium'' and by striking ``the first fiscal 
        year'' and inserting ``each fiscal year of the biennium''.
            (2) Exceptions in the house.--Section 303(b) of such Act (2 
        U.S.C. 634(b)) is amended--
                    (A) in paragraph (1)(A), by striking ``the budget 
                year'' and inserting ``the biennium'';
                    (B) in paragraph (1)(B), by striking ``the fiscal 
                year'' and inserting ``the biennium''; and
                    (C) in paragraph (2), by inserting ``(or June 1 
                whenever section 300(b) is applicable)'' after ``May 
                15''.
            (3) Application to the senate.--Section 303(c)(1) of such 
        Act (2 U.S.C. 634(c)) is amended by--
                    (A) striking ``fiscal year'' and inserting 
                ``biennium''; and
                    (B) striking ``that year'' and inserting ``each 
                fiscal year of that biennium''.
    (f) Permissible Revisions of Concurrent Resolutions on the 
Budget.--Section 304 of such Act (2 U.S.C. 635) is amended--
            (1) by striking ``fiscal year'' the first two places it 
        appears and inserting ``biennium'';
            (2) by striking ``for such fiscal year''; and
            (3) by inserting before the period ``for such biennium''.
    (g) Procedures for Consideration of Budget Resolutions.--Section 
305(a)(3) of such Act (2 U.S.C. 636(b)(3)) is amended by striking 
``fiscal year'' and inserting ``biennium''.
    (h) Completion of House Committee Action on Appropriation Bills.--
Section 307 of such Act (2 U.S.C. 638) is amended--
            (1) by striking ``each year'' and inserting ``each odd-
        numbered year (or, if applicable, as provided by section 
        300(b), July 1)'';
            (2) by striking ``annual'' and inserting ``biennial'';
            (3) by striking ``fiscal year'' and inserting ``biennium''; 
        and
            (4) by striking ``that year'' and inserting ``each odd-
        numbered year''.
    (i) Quarterly Budget Reports.--Section 308 of such Act (2 U.S.C. 
639) is amended by adding at the end the following new subsection:
    ``(d) Quarterly Budget Reports.--The Director of the Congressional 
Budget Office shall, as soon as practicable after the completion of 
each quarter of the fiscal year, prepare an analysis comparing 
revenues, spending, and the deficit or surplus for the current fiscal 
year to assumptions included in the congressional budget resolution. In 
preparing this report, the Director of the Congressional Budget Office 
shall combine actual budget figures to date with projected revenue and 
spending for the balance of the fiscal year. The Director of the 
Congressional Budget Office shall include any other information in this 
report that it deems useful for a full understanding of the current 
fiscal position of the Federal Government. The reports mandated by this 
subsection shall be transmitted by the Director to the Senate and House 
Committees on the Budget, and the Congressional Budget Office shall 
make such reports available to any interested party upon request.''.
    (j) Completion of House Action on Regular Appropriation Bills.--
Section 309 of such Act (2 U.S.C. 640) is amended--
            (1) by striking ``It'' and inserting ``Except whenever 
        section 300(b) is applicable, it'';
            (2) by inserting ``of any odd-numbered calendar year'' 
        after ``July'';
            (3) by striking ``annual'' and inserting ``biennial''; and
            (4) by striking ``fiscal year'' and inserting ``biennium''.
    (k) Reconciliation Process.--Section 310 of such Act (2 U.S.C. 641) 
is amended--
            (1) in subsection (a), in the matter preceding paragraph 
        (1), by striking ``any fiscal year'' and inserting ``any 
        biennium'';
            (2) in subsection (a)(1), by striking ``such fiscal year'' 
        each place it appears and inserting ``any fiscal year covered 
        by such resolution''; and
            (3) by striking subsection (f) and redesignating subsection 
        (g) as subsection (f).
    (l) Section 311 Point of Order.--
            (1) In the house.--Section 311(a)(1) of such Act (2 U.S.C. 
        642(a)) is amended--
                    (A) by striking ``for a fiscal year'' and inserting 
                ``for a biennium'';
                    (B) by striking ``the first fiscal year'' each 
                place it appears and inserting ``either fiscal year of 
                the biennium''; and
                    (C) by striking ``that first fiscal year'' and 
                inserting ``each fiscal year in the biennium''.
            (2) In the senate.--Section 311(a)(2) of such Act is 
        amended--
                    (A) in subparagraph (A), by striking ``for the 
                first fiscal year'' and inserting ``for either fiscal 
                year of the biennium''; and
                    (B) in subparagraph (B)--
                            (i) by striking ``that first fiscal year'' 
                        the first place it appears and inserting ``each 
                        fiscal year in the biennium''; and
                            (ii) by striking ``that first fiscal year 
                        and the ensuing fiscal years'' and inserting 
                        ``all fiscal years''.
            (3) Social security levels.--Section 311(a)(3) of such Act 
        is amended by--
                    (A) striking ``for the first fiscal year'' and 
                inserting ``each fiscal year in the biennium''; and
                    (B) striking ``that fiscal year and the ensuing 
                fiscal years'' and inserting ``all fiscal years''.
    (m) Maximum Deficit Amount Point of Order.--Section 312(c) of the 
Congressional Budget Act of 1974 (2 U.S.C. 643) is amended--
            (1) by striking ``for a fiscal year'' and inserting ``for a 
        biennium'';
            (2) in paragraph (1), by striking ``first fiscal year'' and 
        inserting ``either fiscal year in the biennium'';
            (3) in paragraph (2), by striking ``that fiscal year'' and 
        inserting ``either fiscal year in the biennium''; and
            (4) in the matter following paragraph (2), by striking 
        ``that fiscal year'' and inserting ``the applicable fiscal 
        year''.

SEC. 114. AMENDMENTS TO RULES OF HOUSE OF REPRESENTATIVES.

    (a) Clause 4(a)(1)(A) of rule X of the Rules of the House of 
Representatives is amended by inserting ``odd-numbered'' after 
``each''.
    (b) Clause 4(a)(4) of rule X of the Rules of the House of 
Representatives is amended by striking ``fiscal year'' and inserting 
``biennium''.
    (c) Clause 4(b)(2) of rule X of the Rules of the House of 
Representatives is amended by striking ``each fiscal year'' and 
inserting ``the biennium''.
    (d) Clause 4(b) of rule X of the Rules of the House of 
Representatives is amended by striking ``and'' at the end of 
subparagraph (5), by striking the period and inserting ``; and'' at the 
end of subparagraph (6), and by adding at the end the following new 
subparagraph:
            ``(7) use the second session of each Congress to study 
        issues with long-term budgetary and economic implications, 
        which would include--
                    ``(A) hold hearings to receive testimony from 
                committees of jurisdiction to identify problem areas 
                and to report on the results of oversight; and
                    ``(B) by January 1 of each odd-number year, issuing 
                a report to the Speaker which  identifies the key 
issues facing the Congress in the next biennium.''.
    (e) Clause 11(i) of rule X of the Rules of the House of 
Representatives is amended by striking ``the same or preceding fiscal 
year''.
    (f) Clause 4(e) of rule X of the Rules of the House of 
Representatives is amended by striking ``annually'' each place it 
appears and inserting ``biennially'' and by striking ``annual'' and 
inserting ``biennial''.
    (g) Clause 4(f) of rule X of the Rules of the House of 
Representatives is amended--
            (1) by inserting ``during each odd-numbered year'' after 
        ``submits his budget'';
            (2) by striking ``fiscal year'' the first place it appears 
        and inserting ``biennium''; and
            (3) by striking ``that fiscal year'' and inserting ``each 
        fiscal year in such ensuing biennium''.
    (h) Clause 3(d)(2)(A) of rule XIII of the Rules of the House of 
Representatives is amended by striking ``five'' both places it appears 
and inserting ``six''.
    (i) Clause 5(a)(1) of rule XIII of the Rules of the House of 
Representatives is amended by striking ``fiscal year after September 15 
in the preceding fiscal year'' and inserting ``biennium after September 
15 of the year in which such biennium begins''.

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

    (a) Definition.--Section 1101 of title 31, United States Code, is 
amended by adding at the end the following new paragraph:
            ``(3) `biennium' has the meaning given to such term in 
        paragraph (11) of section 3 of the Congressional Budget and 
        Impoundment Control Act of 1974 (2 U.S.C. 622(11)).''.
    (b) Budget Contents and Submission to the Congress.--
            (1) Schedule.--The matter preceding paragraph (1) in 
        section 1105(a) of title 31, United States Code, is amended to 
        read as follows:
    ``(a) On or before the first Monday in February of each odd-
numbered year (or, if applicable, as provided by section 300(b) of the 
Congressional Budget Act of 1974), beginning with the One Hundred Ninth 
Congress, the President shall transmit to the Congress, the budget for 
the biennium beginning on October 1 of such calendar year. The budget 
transmitted under this subsection shall include a budget message and 
summary and supporting information. The President shall include in each 
budget the following:''.
            (2) Expenditures.--Section 1105(a)(5) of title 31, United 
        States Code, is amended by striking ``the fiscal year for which 
        the budget is submitted and the 4 fiscal years after that 
        year'' and inserting ``each fiscal year in the biennium for 
        which the budget is submitted and in the succeeding 4 years''.
            (3) Receipts.--Section 1105(a)(6) of title 31, United 
        States Code, is amended by striking ``the fiscal year for which 
        the budget is submitted and the 4 fiscal years after that 
        year'' and inserting ``each fiscal year in the biennium for 
        which the budget is submitted and in the succeeding 4 years''.
            (4) Balance statements.--Section 1105(a)(9)(C) of title 31, 
        United States Code, is amended by striking ``the fiscal year'' 
        and inserting ``each fiscal year in the biennium''.
            (5) Government functions and activities.--Section 
        1105(a)(12) of title 31, United States Code, is amended in 
        subparagraph (A), by striking ``the fiscal year'' and inserting 
        ``each fiscal year in the biennium''.
            (6) Allowances.--Section 1105(a)(13) of title 31, United 
        States Code, is amended by striking ``the fiscal year'' and 
        inserting ``each fiscal year in the biennium''.
            (7) Allowances for unanticipated and uncontrollable 
        expenditures.--Section 1105(a)(14) of title 31, United States 
        Code, is amended by striking ``that year'' and inserting ``each 
        fiscal year in the biennium for which the budget is 
        submitted''.
            (8) Tax expenditures.--Section 1105(a)(16) of title 31, 
        United States Code, is amended by striking ``the fiscal year'' 
        and inserting ``each fiscal year in the biennium''.
            (9) Estimates for future years.--Section 1105(a)(17) of 
        title 31, United States Code, is amended--
                    (A) by striking ``the fiscal year following the 
                fiscal year'' and inserting ``each fiscal year in the 
                biennium following the biennium'';
                    (B) by striking ``that following fiscal year'' and 
                inserting ``each such fiscal year''; and
                    (C) by striking ``fiscal year before the fiscal 
                year'' and inserting ``biennium before the biennium''.
            (10) Prior year outlays.--Section 1105(a)(18) of title 31, 
        United States Code, is amended--
                    (A) by striking ``the prior fiscal year,'' and 
                inserting ``each of the 2 most recently completed 
                fiscal years,'';
                    (B) by striking ``for that year'' and inserting 
                ``with respect to those fiscal years''; and
                    (C) by striking ``in that year'' and inserting ``in 
                those fiscal years''.
            (11) Prior year receipts.--Section 1105(a)(19) of title 31, 
        United States Code, is amended--
                    (A) by striking ``the prior fiscal year'' and 
                inserting ``each of the 2 most recently completed 
                fiscal years'';
                    (B) by striking ``for that year'' and inserting 
                ``with respect to those fiscal years''; and
                    (C) by striking ``in that year'' each place it 
                appears and inserting ``in those fiscal years''.
    (c) Estimated Expenditures of Legislative and Judicial Branches.--
Section 1105(b) of title 31, United States Code, is amended by striking 
``each year'' and inserting ``each even-numbered year''.
    (d) Recommendations To Meet Estimated Deficiencies.--Section 
1105(c) of title 31, United States Code, is amended--
            (1) by striking ``the fiscal year for'' the first place it 
        appears and inserting ``each fiscal year in the biennium for'';
            (2) by striking ``the fiscal year for'' the second place it 
        appears and inserting ``each fiscal year of the biennium, as 
        the case may be,''; and
            (3) by striking ``that year'' and inserting ``for each year 
        of the biennium''.
    (e) Capital Investment Analysis.--Section 1105(e)(1) of title 31, 
United States Code, is amended by striking ``ensuing fiscal year'' and 
inserting ``biennium to which such budget relates''.
    (f) Supplemental Budget Estimates and Changes.--
            (1) In general.--Section 1106(a) of title 31, United States 
        Code, is amended--
                    (A) in the matter preceding paragraph (1), by--
                            (i) inserting ``and before February 15 of 
                        each even-numbered year'' after ``Before July 
                        16 of each year''; and
                            (ii) striking ``fiscal year'' and inserting 
                        ``biennium'';
                    (B) in paragraph (1), by striking ``that fiscal 
                year'' and inserting ``each fiscal year in such 
                biennium'';
                    (C) in paragraph (2), by striking ``4 fiscal years 
                following the fiscal year'' and inserting ``4 fiscal 
                years following the biennium''; and
                    (D) in paragraph (3), by striking ``fiscal year'' 
                and inserting ``biennium''.
            (2) Changes.--Section 1106(b) of title 31, United States 
        Code, is amended by--
                    (A) striking ``the fiscal year'' and inserting 
                ``each fiscal year in the biennium''; and
                    (B) inserting ``and before February 15 of each 
                even-numbered year'' after ``Before July 16 of each 
                year''.
    (g) Current Programs and Activities Estimates.--
            (1) The president.--Section 1109(a) of title 31, United 
        States Code, is amended--
                    (A) by striking ``On or before the first Monday 
                after January 3 of each year (on or before February 5 
                in 1986)'' and inserting ``At the same time the budget 
                required by section 1105 is submitted for a biennium''; 
                and
                    (B) by striking ``the following fiscal year'' and 
                inserting ``each fiscal year of such period''.
            (2) Joint economic committee.--Section 1109(b) of title 31, 
        United States Code, is amended by striking ``March 1 of each 
        year'' and inserting ``within 6 weeks of the President's budget 
        submission for each odd-numbered year (or, if applicable, as 
        provided by section 300(b) of the Congressional Budget Act of 
        1974)''.
    (h) Year-Ahead Requests for Authorizing Legislation.--Section 1110 
of title 31, United States Code, is amended by--
            (1) striking ``May 16'' and inserting ``March 31''; and
            (2) striking ``year before the year in which the fiscal 
        year begins'' and inserting ``calendar year preceding the 
        calendar year in which the biennium begins''.

SEC. 116. TWO-YEAR APPROPRIATIONS; TITLE AND STYLE OF APPROPRIATION 
              ACTS.

    Section 105 of title 1, United States Code, is amended to read as 
follows:
``Sec. 105. Title and style of appropriations Acts
    ``(a) The style and title of all Acts making appropriations for the 
support of the Government shall be as follows: `An Act making 
appropriations (here insert the object) for each fiscal year in the 
biennium of fiscal years (here insert the fiscal years of the 
biennium).'.
    ``(b) All Acts making regular appropriations for the support of the 
Government shall be enacted for a biennium and shall specify the amount 
of appropriations provided for each fiscal year in such period.
    ``(c) For purposes of this section, the term `biennium' has the 
same meaning as in section 3(11) of the Congressional Budget and 
Impoundment Control Act of 1974 (2 U.S.C. 622(11)).''.

SEC. 117. MULTIYEAR AUTHORIZATIONS.

    (a) In General.--Title III of the Congressional Budget Act of 1974 
is amended by adding at the end the following new section:

              ``multiyear authorizations of appropriations

    ``Sec. 316. (a) Point of Order.--(1)(A) It shall not be in order in 
the House of Representatives or the Senate to consider any measure that 
contains a specific authorization of appropriations for any purpose 
unless the measure includes such a specific authorization of 
appropriations for that purpose for not less than each fiscal year in 
one or more bienniums.
    ``(B) For purposes of this paragraph, a specific authorization of 
appropriations is an authorization for the enactment of an amount of 
appropriations or amounts not to exceed an amount of appropriations 
(whether stated as a sum certain, as a limit, or as such sums as may be 
necessary) for any purpose for a fiscal year.
    ``(2) Paragraph (1) does not apply with respect to an authorization 
of appropriations for a single fiscal year for any program, project, or 
activity if the measure containing that authorization includes a 
provision expressly stating the following: `Congress finds that no 
authorization of appropriation will be required for [Insert name of 
applicable program, project, or activity] for any subsequent fiscal 
year.'.
    ``(3) For purposes of this section, the term `measure' means a 
bill, joint resolution, amendment, motion, or conference report''.
    (b) Amendment to Table of Contents.--The table of contents set 
forth in section 1(b) of the Congressional Budget and Impoundment 
Control Act of 1974 is amended by adding after the item relating to 
section 315 the following new item:

``Sec. 316. Multiyear authorizations of appropriations.''.

SEC. 118. GOVERNMENT STRATEGIC AND PERFORMANCE PLANS ON A BIENNIAL 
              BASIS.

    (a) Strategic Plans.--Section 306 of title 5, United States Code, 
is amended--
            (1) in subsection (a), by striking ``September 30, 1997'' 
        and inserting ``September 30, 2005'';
            (2) in subsection (b)--
                    (A) by striking ``at least every three years'' and 
                all that follows thereafter and inserting ``at least 
every 4 years, except that strategic plans submitted by September 30, 
2005, shall be updated and revised by September 30, 2008''; and
                    (B) by striking ``five years forward'' and 
                inserting ``six years forward''; and
            (3) in subsection (c), by inserting a comma after 
        ``section'' the second place it appears and adding ``including 
        a strategic plan submitted by September 30, 2005, meeting the 
        requirements of subsection (a)''.
    (b) Budget Contents and Submission to Congress.--Paragraph (28) of 
section 1105(a) of title 31, United States Code, is amended by striking 
``beginning with fiscal year 1999, a'' and inserting ``beginning with 
fiscal year 2008, a biennial''.
    (c) Performance Plans.--Section 1115 of title 31, United States 
Code, is amended--
            (1) in subsection (a)--
                    (A) in the matter before paragraph (1)--
                            (i) by striking ``section 1105(a)(29)'' and 
                        inserting ``section 1105(a)(28)''; and
                            (ii) by striking ``an annual'' and 
                        inserting ``a biennial'';
                    (B) in paragraph (1) by inserting after ``program 
                activity'' the following: ``for both years 1 and 2 of 
                the biennial plan'';
                    (C) in paragraph (5) by striking ``and'' after the 
                semicolon,
                    (D) in paragraph (6) by striking the period and 
                inserting a semicolon; and inserting ``and'' after the 
                inserted semicolon; and
                    (E) by adding after paragraph (6) the following:
            ``(7) cover each fiscal year of the biennium beginning with 
        the first fiscal year of the next biennial budget cycle.'';
            (2) in subsection (d) by striking ``annual'' and inserting 
        ``biennial''; and
            (3) in paragraph (6) of subsection (f) by striking 
        ``annual'' and inserting ``biennial''.
    (d) Managerial Accountability and Flexibility.--Section 9703 of 
title 31, United States Code, relating to managerial accountability, is 
amended--
            (1) in subsection (a)--
                    (A) in the first sentence by striking ``annual''; 
                and
                    (B) by striking ``section 1105(a)(29)'' and 
                inserting ``section 1105(a)(28)'';
            (2) in subsection (e)--
                    (A) in the first sentence by striking ``one or'' 
                before ``two years'';
                    (B) in the second sentence by striking ``a 
                subsequent year'' and inserting ``for a subsequent 2-
                year period''; and
                    (C) in the third sentence by striking ``three'' and 
                inserting ``four''.
    (e) Strategic Plans.--Section 2802 of title 39, United States Code, 
is amended--
            (1) in subsection (a), by striking ``September 30, 1997'' 
        and inserting ``September 30, 2005'';
            (2) in subsection (b), by striking ``at least every three 
        years'' and inserting ``at least every 4 years except that 
        strategic plans submitted by September 30, 2005, shall be 
        updated and revised by September 30, 2008'';
            (3) in subsection (b), by striking ``five years forward'' 
        and inserting ``six years forward''; and
            (4) in subsection (c), by inserting a comma after 
        ``section'' the second place it appears and inserting 
        ``including a strategic plan submitted by September 30, 2005, 
        meeting the requirements of subsection (a)''.
    (f) Performance Plans.--Section 2803(a) of title 39, United States 
Code, is amended--
            (1) in the matter before paragraph (1), by striking ``an 
        annual'' and inserting ``a biennial'';
            (2) in paragraph (1), by inserting after ``program 
        activity'' the following: ``for both years 1 and 2 of the 
        biennial plan'';
            (3) in paragraph (5), by striking ``and'' after the 
        semicolon;
            (4) in paragraph (6), by striking the period and inserting 
        ``; and''; and
            (5) by adding after paragraph (6) the following:
            ``(7) cover each fiscal year of the biennium beginning with 
        the first fiscal year of the next biennial budget cycle.''.
    (g) Committee Views of Plans and Reports.--Section 301(d) of the 
Congressional Budget Act (2 U.S.C. 632(d)) is amended by adding at the 
end ``Each committee of the Senate or the House of Representatives 
shall review the strategic plans, performance plans, and performance 
reports, required under section 306 of title 5, United States Code, and 
sections 1115 and 1116 of title 31, United States Code, of all agencies 
under the jurisdiction of the committee. Each committee may provide its 
views on such plans or reports to the Committee on the Budget of the 
applicable House.''.
    (h) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        take effect on March 1, 2007.
            (2) Agency actions.--Effective on and after the date of 
        enactment of this Act, each agency shall take such actions as 
        necessary to prepare and submit any plan or report in 
        accordance with the amendments made by it.

SEC. 119. BIENNIAL APPROPRIATION BILLS.

    (a) In the House of Representatives.--(1) Clause 2(a) of rule XXI 
of the Rules of the House of Representatives is amended by adding at 
the end the following new subparagraph:
    ``(3)(A) Except as provided by subdivision (B), an appropriation 
may not be reported in a general appropriation bill (other than a 
supplemental appropriation bill), and may not be in order as an 
amendment thereto, unless it provides new budget authority or 
establishes a level of obligations under contract authority for each 
fiscal year of a biennium.
    ``(B) Subdivision (A) does not apply with respect to an 
appropriation for a single fiscal year for any program, project, or 
activity if the bill or amendment thereto containing that appropriation 
includes a provision expressly stating the following: `Congress finds 
that no additional funding beyond one fiscal year will be required and 
the [Insert name of applicable program, project, or activity] will be 
completed or terminated after the amount provided has been expended.'.
    ``(C) For purposes of paragraph (b), the statement set forth in 
subdivision (B) with respect to an appropriation for a single fiscal 
year for any program, project, or activity may be included in a general 
appropriation bill or amendment thereto.''.
    (2) Clause 5(b)(1) of rule XXII of the House of Representatives is 
amended by striking ``or (c)'' and inserting ``or (3) or 2(c)''.
    (b) In the Senate.--(1) Title III of the Congressional Budget Act 
of 1974 (2 U.S.C. 631 et seq.) (as amended by section 117) is further 
amended by adding at the end the following:

            ``consideration of biennial appropriation bills

    ``Sec. 317. It shall not be in order in the Senate in any odd-
numbered year to consider any regular appropriation bill providing new 
budget authority or a limitation on obligations under the jurisdiction 
of the Committee on Appropriations for only the first fiscal year of a 
biennium, unless the program, project, or activity for which the new 
budget authority or obligation limitation is provided will require no 
additional authority beyond one year and will be completed or 
terminated after the amount provided has been expended.''.
    (2) The table of contents set forth in section 1(b) of the 
Congressional Budget and Impoundment Control Act of 1974 is amended by 
adding after the item relating to section 316 the following new item:

``Sec. 317. Consideration of biennial appropriation bills.''.

SEC. 120. ASSISTANCE BY FEDERAL AGENCIES TO STANDING COMMITTEES OF THE 
              SENATE AND THE HOUSE OF REPRESENTATIVES.

    (a) Information Regarding Agency Appropriations Requests.--To 
assist each standing committee of the House of Representatives and the 
Senate in carrying out its responsibilities, the head of each Federal 
agency which administers the laws or parts of laws under the 
jurisdiction of such committee shall provide to such committee such 
studies, information, analyses, reports, and assistance as may be 
requested by the chairman and ranking minority member of the committee.
    (b) Information Regarding Agency Program Administration.--To assist 
each standing committee of the House of Representatives and the Senate 
in carrying out its responsibilities, the head of any agency shall 
furnish to such committee documentation, containing information 
received, compiled, or maintained by the agency as part of the 
operation or administration of a program, or specifically compiled 
pursuant to a request in support of a review of a program, as may be 
requested by the chairman and ranking minority member of such 
committee.
    (c) Summaries by Comptroller General.--Within thirty days after the 
receipt of a request from a chairman and ranking minority member of a 
standing committee having jurisdiction over a program being reviewed 
and studied by such committee under this section, the Comptroller 
General of the United States shall furnish to such committee summaries 
of any audits or reviews of such program which the Comptroller General 
has completed during the preceding six years.
    (d) Congressional Assistance.--Consistent with their duties and 
functions under law, the Comptroller General of the United States, the 
Director of the Congressional Budget Office, and the Director of the 
Congressional Research Service shall continue to furnish (consistent 
with established protocols) to each standing committee of the House of 
Representatives or the Senate such information, studies, analyses, and 
reports as the chairman and ranking minority member may request to 
assist the committee in conducting reviews and studies of programs 
under this section.

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

    Not later than 180 days after the date of enactment of this Act, 
the Director of the Office of Management and Budget shall--
            (1) determine the impact and feasibility of changing the 
        definition of a fiscal year and the budget process based on 
        that definition to a 2-year fiscal period with a biennial 
        budget process based on the 2-year period; and
            (2) report the findings of the study to the Committees on 
        the Budget of the House of Representatives and the Senate and 
        the Committee on Rules of the House of Representatives.

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

    (a) President's Budget Submission for Fiscal Year 2006.--The budget 
submission of the President pursuant to section 1105(a) of title 31, 
United States Code, for fiscal year 2006 shall include the following:
            (1) An identification of the budget accounts for which an 
        appropriation should be made for each fiscal year of the fiscal 
        year 2006-2007 biennium.
            (2) Budget authority that should be provided for each such 
        fiscal year for the budget accounts identified under paragraph 
        (1).
    (b) Review and Recommendations of the Committees on 
Appropriations.--The Committee on Appropriations of the House of 
Representatives and the Senate shall review the items included pursuant 
to subsection (a) in the budget submission of the President for fiscal 
year 2006 and include its recommendations thereon in its views and 
estimates made under section 301(d) of the Congressional Budget Act of 
1974 within 6 weeks of that budget submission.
    (c) Actions by the Committees on the Budget.--(1) The Committee on 
the Budget of the House of Representatives and the Senate shall review 
the items included pursuant to subsection (a) in the budget submission 
of the President for fiscal year 2006 and the recommendations submitted 
by the Committee on Appropriations of its House pursuant to subsection 
(b) included in its views and estimates made under section 301(d) of 
the Congressional Budget Act of 1974.
    (2) The report of the Committee on the Budget of each House 
accompanying the concurrent resolution on the budget for fiscal year 
2006 and the joint explanatory statement of managers accompanying such 
resolution shall also include allocations to the Committee on 
Appropriations of its House of total new budget authority and total 
outlays (which shall be deemed to be made pursuant to section 302(a) of 
the Congressional Budget Act of 1974 for purposes of budget enforcement 
under section 302(f)) for fiscal year 2005 from which the Committee on 
Appropriations may report regular appropriation bills for fiscal year 
2006 that include funding for certain accounts for each of fiscal years 
2006 and 2007.
    (3) The report of the Committee on the Budget of each House 
accompanying the concurrent resolution on the budget for fiscal year 
2006 and the joint explanatory statement of managers accompanying such 
resolution shall also include the assumptions upon which such 
allocations referred to in paragraph (2) are based.
    (d) GAO Programmatic Oversight Assistance.--(1) During the first 
session of the 109th Congress the committees of the House of 
Representatives and the Senate are directed to work with the 
Comptroller General of the United States to develop plans to transition 
program authorizations to a multi-year schedule.
    (2) During the 109th Congress, the Comptroller General of the 
United States will continue to provide assistance to the Congress with 
respect to programmatic oversight and in particular will assist the 
committees of Congress in designing and conforming programmatic 
oversight procedures for the fiscal year 2007-2008 biennium.
    (e) CBO Authorization Report.--On or before January 15, 2006, the 
Director of the Congressional Budget Office, after consultation with 
the appropriate committees of the House of Representatives and Senate, 
shall submit to the Congress a report listing (A) all programs and 
activities funded during fiscal year 2006 for which authorizations for 
appropriations have not been enacted for that fiscal year and (B) all 
programs and activities funded during fiscal year 2006 for which 
authorizations for appropriations will expire during that fiscal year, 
fiscal year 2007, or fiscal year 2008.
    (f) President's Budget Submission for Fiscal Year 2007.--The budget 
submission of the President pursuant to section 1105(a) of title 31, 
United States Code, for fiscal year 2007 shall include an evaluation 
of, and recommendations regarding, the transitional biennial budget 
process for the fiscal year 2006-2007 biennium that was carried out 
pursuant to this section.
    (g) CBO Transitional Report.--On or before March 31, 2006, the 
Director of the Congressional Budget Office shall submit to Congress an 
evaluation of, and recommendations regarding, the transitional biennial 
budget process for the fiscal year 2006-2008 biennium that was carried 
out pursuant to this section.

SEC. 123. EFFECTIVE DATE.

    Except as provided by sections 121 and 122, this title and the 
amendments made by it shall take effect on January 1, 2007, and shall 
apply to budget resolutions and appropriations for the biennium 
beginning with fiscal year 2008.

                      TITLE II--TRUTH IN SPENDING

               Subtitle A--Emergency Spending Legislation

SEC. 201. EMERGENCY SPENDING LEGISLATION AND THE BASELINE.

    (a) In General.--Section 257(a) of the Balanced Budget and 
Emergency Deficit Control Act of 1985 is amended by inserting ``, 
except for emergency appropriations covered by section 251(b)(2)(A) and 
emergency legislation covered by section 252(e)'' before the period.
    (b) Direct Spending and Receipts.--Section 257(b)(2) of the 
Balanced Budget and Emergency Deficit Control Act of 1985 is amended by 
adding at the end the following new subparagraph:
            ``(E) Emergency legislation covered by section 252(e) shall 
        not be extended in the baseline.''.
    (c) Discretionary Appropriations.--Section 257(c) of the Balanced 
Budget and Emergency Deficit Control Act of 1985 is amended by adding 
at the end the following new paragraph:
            ``(7) Emergency appropriations covered by section 
        251(b)(2)(A) shall not be extended in the baseline.''.

SEC. 202. OMB EMERGENCY CRITERIA.

    (a) Definition of Emergency.--Section 3 of the Congressional Budget 
and Impoundment Control Act of 1974 (as amended by section 113(b)) is 
further amended by adding at the end the following new paragraph:
            ``(12)(A) The term `emergency' means a situation that--
                    ``(i) requires new budget authority and outlays (or 
                new budget authority and the outlays flowing therefrom) 
                for the prevention or mitigation of, or response to, 
                loss of life or property, or a threat to national 
                security; and
                    ``(ii) is unanticipated.
            ``(B) As used in subparagraph (A), the term `unanticipated' 
        means that the underlying situation is--
                    ``(i) sudden, which means quickly coming into being 
                or not building up over time;
                    ``(ii) urgent, which means a pressing and 
                compelling need requiring immediate action;
                    ``(iii) unforeseen, which means not predicted or 
                anticipated as an emerging need; and
                    ``(iv) temporary, which means not of a permanent 
                duration.''.
    (b) Conforming Amendment.--Section 250(c) of the Balanced Budget 
and Emergency Deficit Control Act of 1985 is amended by adding at the 
end the following new paragraph:
            ``(20) The term `emergency' has the meaning given to such 
        term in section 3 of the Congressional Budget and Impoundment 
        Control Act of 1974.''.

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

    (a) In General.--Section 312 of the Congressional Budget Act of 
1974 is amended by adding at the end the following new subsection:
    ``(g) It shall not be in order in the House of Representatives or 
in the Senate to consider any bill or joint resolution, or an amendment 
thereto or a conference report thereon, which carries an emergency 
designation pursuant to section 251(b)(2)(A) or section 252(e) of the 
Balanced Budget and Emergency Deficit Control Act of 1985.''.
    (b) Waivers and Appeals in the Senate.--Sections 904(c)(2) and 
904(d)(3) are amended by striking ``, and 312(c)'' and by inserting 
``312(c), and 312(g)''.

                       Subtitle B--The Byrd Rule

SEC. 211. LIMITATION ON BYRD RULE.

    (a) Protection of Conference Reports.--Section 313 of the 
Congressional Budget Act of 1974 is amended--
            (1) in subsection (b)(1), by striking subparagraph (E) 
        through the semicolon at the end thereof and by redesignating 
        subparagraph (F) as subparagraph (E);
            (2) in subsection (c), by striking ``and again upon the 
        submission of a conference report on such a reconciliation bill 
        or resolution,'';
            (3) by striking subsection (d);
            (4) by redesignating subsection (e) as subsection (d); and
            (5) in subsection (e), as redesignated--
                    (A) by striking ``, motion, or conference report'' 
                the first place it appears and inserting ``, or 
                motion''; and
                    (B) by striking ``, motion, or conference report'' 
                the second and third places it appears and inserting 
                ``or motion''.
    (b) Conforming Amendment.--The first sentence of section 312(e) of 
the Congressional Budget Act of 1974 is amended by inserting ``, except 
for section 313,'' after ``Act''.

              Subtitle C--Spending Accountability Reserve

SEC. 231. SHORT TITLE.

    This subtitle may be cited as the ``Spending Accountability Reserve 
Act of 2003''.

SEC. 232. SPENDING ACCOUNTABILITY RESERVE LEDGER.

    (a) Establishment of Ledger.--Title III of the Congressional Budget 
Act of 1974 (as amended by section 119(a)) is further amended by adding 
at the end the following new section:

                ``spending accountability reserve ledger

    ``Sec. 318. (a) Establishment of Ledger.--The chairman of the 
Committee on the Budget of the House of Representatives and the 
chairman of the Committee on the Budget of the Senate shall each 
maintain a ledger to be known as the `Spending Accountability Reserve 
Ledger'. The Ledger shall be divided into entries corresponding to the 
subcommittees of the Committees on Appropriations. Each entry shall 
consist of three components: the `House Reserve Balance'; the `Senate 
Reserve Balance'; and the `Joint House-Senate Reserve Balance'.
    ``(b) Components of Ledger.--Each component in an entry shall 
consist only of amounts credited to it under subsection (c). No entry 
of a negative amount shall be made.
    ``(c) Credit of Amounts to Ledger.--(1) In the House of 
Representatives or the Senate, whenever a Member offers an amendment to 
an appropriation bill to reduce new budget authority in any account, 
that Member may state the portion of such reduction that shall be--
            ``(A) credited to the House or Senate Reserve Balance, as 
        applicable; or
            ``(B) allowed to remain within the applicable section 
        302(b) suballocation.
If no such statement is made, the amount of reduction in new budget 
authority resulting from the amendment shall be credited to the House 
or Senate Reserve Balance, as applicable, if the amendment is agreed 
to.
    ``(2)(A) Except as provided by subparagraph (B), the chairmen of 
the Committees on the Budget shall, upon the engrossment of any 
appropriation bill by the House of Representatives and upon the 
engrossment of that bill by the Senate, credit to the applicable entry 
balance of that House amounts of new budget authority and outlays equal 
to the net amounts of reductions in new budget authority and in outlays 
resulting from amendments agreed to by that House to that bill.
    ``(B) When computing the net amounts of reductions in new budget 
authority and in outlays resulting from amendments agreed to by the 
House of Representatives or the Senate to an appropriation bill, the 
chairmen of the Committees on the Budget shall only count those 
portions of such amendments agreed to that were so designated by the 
Members offering such amendments as amounts to be credited to the House 
or Senate Reserve Balance, as applicable, or that fall within the last 
sentence of paragraph (1).
    ``(3) The chairmen of the Committees on the Budget shall, upon the 
engrossment of Senate amendments to any appropriation bill, credit to 
the applicable Joint House-Senate Reserve Balance the amounts of new 
budget authority and outlays equal to--
            ``(A) an amount equal to one-half of the sum of (i) the 
        amount of new budget authority in the House Reserve Balance 
        plus (ii) the amount of new budget authority in the Senate 
        Reserve Balance for that bill; and
            ``(B) an amount equal to one-half of the sum of (i) the 
        amount of outlays in the House Reserve Balance plus (ii) the 
        amount of outlays in the Senate Reserve Balance for that bill.
    ``(4) Calculation of Reserve Savings in Senate.--For purposes of 
calculating under this section the net amounts of reductions in new 
budget authority and in outlays resulting from amendments agreed to by 
the Senate on an appropriation bill, the amendments reported to the 
Senate by its Committee on Appropriations shall be considered to be 
part of the original text of the bill.
    ``(d) Definition.--As used in this section, the term `appropriation 
bill' means any general or special appropriation bill, and any bill or 
joint resolution making supplemental, deficiency, or continuing 
appropriations through the end of a fiscal year.
    ``(e) Tally During House Consideration.--The chairman of the 
Committee on the Budget of the House of Representatives shall maintain 
a running tally of the amendments adopted reflecting increases and 
decreases in budget authority in the bill as reported. This tally shall 
be available to Members in the House of Representatives during 
consideration of any appropriations bill by the House.''.
    (b) Conforming Amendment.--The table of contents set forth in 
section 1(b) of the Congressional Budget and Impoundment Control Act of 
1974 is amended by inserting after the item relating to section 317 the 
following new item:

``Sec. 318. Spending accountability reserve ledger.''.

SEC. 233. DOWNWARD ADJUSTMENT OF SECTION 302(A) ALLOCATIONS AND SECTION 
              302(B) SUBALLOCATIONS.

    (a) Allocations.--Section 302(a) of the Congressional Budget Act of 
1974 is amended by adding at the end the following new paragraph:
            ``(6) Adjustment of allocations.--Upon the engrossment of 
        Senate amendments to any appropriation bill (as defined in 
        section 318(d)) for a fiscal year, the amounts allocated under 
        paragraph (1) or (2) to the Committee on Appropriations of each 
        House upon the adoption of the most recent joint resolution on 
        the budget for that fiscal year shall be adjusted downward by 
        the amounts credited to the applicable Joint House-Senate 
        Reserve Balance under section 318(c)(2). The revised levels of 
        new budget authority and outlays shall be submitted to each 
        House by the chairman of the Committee on the Budget of that 
        House and shall be printed in the Congressional Record.''.
    (b) Suballocations.--Section 302(b) of the Congressional Budget Act 
of 1974 is amended by adding at the end the following new sentence: 
``Whenever an adjustment is made under subsection (a)(6) to an 
allocation under that subsection, the Committee on Appropriations of 
each House shall make downward adjustments in the most recent 
suballocations of new budget authority and outlays under this 
subparagraph to the appropriate subcommittees of that committee in the 
total amounts of those adjustments under section 318(c)(2). The revised 
suballocations shall be submitted to each House by the chairman of the 
Committee on Appropriations of that House and shall be printed in the 
Congressional Record.''.

SEC. 234. PERIODIC REPORTING OF LEDGER STATEMENTS.

    Section 308(b)(1) of the Congressional Budget Act of 1974 is 
amended by adding at the end the following new sentence: ``Such reports 
shall also include an up-to-date tabulation of the amounts contained in 
the ledger and each entry established by section 318(a).''.

SEC. 235. DOWNWARD ADJUSTMENT OF DISCRETIONARY SPENDING LIMITS.

    The discretionary spending limits for new budget authority and 
outlays for any fiscal year set forth in section 251(c) of the Balanced 
Budget and Emergency Deficit Control Act of 1985, shall be reduced by 
the amounts set forth in the final regular appropriation bill for that 
fiscal year or joint resolution making continuing appropriations 
through the end of that fiscal year. Those amounts shall be the sums of 
the Joint House-Senate Reserve Balances for that fiscal year, as 
calculated under section 302(a)(6) of the Congressional Budget Act of 
1974. That bill or joint resolution shall contain the following 
statement of law: ``As required by section 302(a)(6) of the 
Congressional Budget Act of 1974, for fiscal year [insert appropriate 
fiscal year] and each outyear, the adjusted discretionary spending 
limit for new budget authority shall be reduced by $ [insert 
appropriate amount of reduction] and the adjusted discretionary limit 
for outlays shall be reduced by $ [insert appropriate amount of 
reduction] for the fiscal year and each outyear.''. Notwithstanding 
section 904(c) of the Congressional Budget Act of 1974, section 306 as 
it applies to this statement shall not apply. This adjustment shall be 
reflected in reports under sections 254(e) and 254(f) of the Balanced 
Budget and Emergency Deficit Control Act of 1985.

SEC. 236. REDUCTION IN REVENUES.

    The level of total revenues set forth in the concurrent resolution 
on the budget shall be reduced by the amounts set forth in the final 
regular appropriation bill for that fiscal year or joint resolution 
making continuing appropriations through the end of that fiscal year 
shall be reduced by the amount by which the discretionary spending 
limit for outlays is reduced for that fiscal year pursuant to section 
235. At the same time, such amount shall be credited to the pay-as-you-
go scorecard pursuant to section 252(d) of the Balanced Budget and 
Emergency Deficit Control Act of 1985 for purposes of receipts 
legislation only. This adjustment shall be reflected in reports under 
sections 254(e) and 254(f) of such Act. To the extent that the amount 
so credited is not used for purposes of receipts legislation enacted 
during such fiscal year, it shall be removed from such scorecard.

Subtitle D--Enhanced Rescissions of Budget Authority Identified by the 
                     President as Wasteful Spending

SEC. 251. SHORT TITLE.

    This title may be cited as the ``Enhanced Rescissions Act of 
2003''.

SEC. 252. ENHANCED CONSIDERATION OF CERTAIN PROPOSED RESCISSIONS.

    (a) In General.--Part B of title X of the Congressional Budget and 
Impoundment Control Act of 1974 (2 U.S.C. 681 et seq.) is amended by 
redesignating sections 1013 through 1017 as sections 1014 through 1018, 
respectively, and by inserting after section 1012 the following new 
section:

        ``enhanced consideration of certain proposed rescissions

    ``Sec. 1013. (a) Proposed Rescission of Budget Authority Identified 
as Wasteful Spending.--The President may propose, at the time and in 
the manner provided in subsection (b), the rescission of any budget 
authority provided in an appropriation Act that he identifies as 
wasteful spending. If the President proposes a rescission of budget 
authority, he may also propose to reduce the appropriate discretionary 
spending limits for new budget authority and outlays flowing therefrom 
set forth in section 251(c) of the Balanced Budget and Emergency 
Deficit Control Act of 1985 by an amount that does not exceed the 
amount of the proposed rescission. Funds made available for obligation 
under this procedure may not be proposed for rescission again under 
this section.
    ``(b) Transmittal of Special Message.--
            ``(1) The President may transmit to Congress a special 
        message proposing to rescind amounts of budget authority and 
        include with that special message a draft bill that, if 
        enacted, would only rescind that budget authority unless the 
        President also proposes a reduction in the appropriate 
        discretionary spending limits set forth in section 251(c) of 
        the Balanced Budget and Emergency Deficit Control Act of 1985. 
        That bill shall clearly identify the amount of budget authority 
        that is proposed to be rescinded for each program, project, or 
        activity to which that budget authority relates.
            ``(2) In the case of an appropriation Act that includes 
        accounts within the jurisdiction of more than one subcommittee 
        of the Committee on Appropriations, the President in proposing 
        to rescind budget authority under this section shall send a 
        separate special message and accompanying draft bill for 
        accounts within the jurisdiction of each subcommittee.
            ``(3) Each special message shall specify, with respect to 
        the budget authority proposed to be rescinded, the following:
                    ``(A) The amount of budget authority which he 
                proposes to be rescinded.
                    ``(B) Any account, department, or establishment of 
                the Government to which such budget authority is 
                available for obligation, and the specific project or 
                governmental functions involved.
                    ``(C) The reasons why the budget authority should 
                be rescinded, including why he considers it to be 
                wasteful spending.
                    ``(D) To the maximum extent practicable, the 
                estimated fiscal, economic, and budgetary effect 
                (including the effect on outlays and receipts in each 
                fiscal year) of the proposed rescission.
                    ``(E) All facts, circumstances, and considerations 
                relating to or bearing upon the proposed rescission and 
                the decision to effect the proposed rescission, and to 
                the maximum extent practicable, the estimated effect of 
                the proposed rescission upon the objects, purposes, and 
                programs for which the budget authority is provided.
                    ``(F) A reduction in the appropriate discretionary 
                spending limits set forth in section 251(c) of the 
                Balanced Budget and Emergency Deficit Control Act of 
                1985, if proposed by the President.
    ``(c) Procedures for Expedited Consideration.--
            ``(1)(A) Before the close of the second legislative day of 
        the House of Representatives after the date of receipt of a 
        special message transmitted to Congress under subsection (b), 
        the majority leader or minority leader of the House of 
        Representatives shall introduce (by request) the draft bill 
        accompanying that special message. If the bill is not 
        introduced as provided in the preceding sentence, then, on the 
        third legislative day of the House of Representatives after the 
        date of receipt of that special message, any Member of that 
        House may introduce the bill.
            ``(B) The bill shall be referred to the Committee on 
        Appropriations. The committee shall report the bill without 
        substantive revision and with or without recommendation. The 
        bill shall be reported not later than the seventh legislative 
        day of that House after the date of receipt of that special 
        message. If that committee fails to report the bill within that 
        period, that committee shall be automatically discharged from 
        consideration of the bill, and the bill shall be placed on the 
        appropriate calendar.
            ``(C) A vote on final passage of the bill shall be taken in 
        the House of Representatives on or before the close of the 10th 
        legislative day of that House after the date of the 
        introduction of the bill in that House. If the bill is passed, 
        the Clerk of the House of Representatives shall cause the bill 
        to be engrossed, certified, and transmitted to the Senate 
        within one calendar day of the day on which the bill is passed.
            ``(2)(A) A motion in the House of Representatives to 
        proceed to the consideration of a bill under this section shall 
        be highly privileged and not debatable. An amendment to the 
        motion shall not be in order, nor shall it be in order to move 
        to reconsider the vote by which the motion is agreed to or 
        disagreed to.
            ``(B) Debate in the House of Representatives on a bill 
        under this section shall not exceed 4 hours, which shall be 
        divided equally between those favoring and those opposing the 
        bill. A motion further to limit debate shall not be debatable. 
        It shall not be in order to move to recommit a bill under this 
        section or to move to reconsider the vote by which the bill is 
        agreed to or disagreed to.
            ``(C) Appeals from decisions of the Chair relating to the 
        application of the Rules of the House of Representatives to the 
        procedure relating to a bill under this section shall be 
        decided without debate.
            ``(D) Except to the extent specifically provided in the 
        preceding provisions of this subsection, consideration of a 
        bill under this section shall be governed by the Rules of the 
        House of Representatives. It shall not be in order in the House 
        of Representatives to consider any rescission bill introduced 
        pursuant to the provisions of this section under a suspension 
        of the rules or under a special rule.
            ``(3) A bill transmitted to the Senate pursuant to 
        paragraph (1)(D) shall be referred to its Committee on 
        Appropriations. That committee shall report the bill without 
        substantive revision and with or without recommendation. The 
        bill shall be reported not later than the seventh legislative 
        day of the Senate after it receives the bill. A committee 
        failing to report the bill within such period shall be 
        automatically discharged from consideration of the bill, and 
        the bill shall be placed upon the appropriate calendar.
            ``(4)(A) A motion in the Senate to proceed to the 
        consideration of a bill under this section shall be privileged 
        and not debatable. An amendment to the motion shall not be in 
        order, nor shall it be in order to move to reconsider the vote 
        by which the motion is agreed to or disagreed to.
            ``(B) Debate in the Senate on a bill under this section, 
        and all debatable motions and appeals in connection therewith 
        (including debate pursuant to subparagraph (C)), shall not 
        exceed 10 hours. The time shall be equally divided between, and 
        controlled by, the majority leader and the minority leader or 
        their designees.
            ``(C) Debate in the Senate or any debatable motion or 
        appeal in connection with a bill under this section shall be 
        limited to not more than 1 hour, to be equally divided between, 
        and controlled by, the mover and the manager of the bill, 
        except that in the event the manager of the bill is in favor of 
        any such motion or appeal, the time in opposition thereto, 
        shall be controlled by the minority leader or his designee. 
        Such leaders, or either of them, may, from time under their 
        control of the passage of a bill, allot additional time to any 
        Senator during the consideration of any debatable motion or 
        appeal.
            ``(D) A motion in the Senate to further limit debate on a 
        bill under this section is not debatable. A motion to recommit 
        a bill under this section is not in order.
    ``(d) Amendment and Divisions Prohibited.--No amendment to a bill 
considered under this section shall be in order in either the House of 
Representatives or the Senate. It shall not be in order to demand a 
division of the question in the House of Representatives (or in a 
Committee of the Whole) or in the Senate. No motion to suspend the 
application of this subsection shall be in order in either House, nor 
shall it be in order in either House to suspend the application of this 
subsection by unanimous consent.
    ``(e) Requirement To Make Available for Obligation.--Any amount of 
budget authority proposed to be rescinded in a special message 
transmitted to Congress under subsection (b) shall be made available 
for obligation on the day after the date on which either House rejects 
the bill transmitted with that special message.
    ``(f) Definitions.--For purposes of this section:
            ``(1) The term `appropriation Act' means any general or 
        special appropriation Act, and any Act or joint resolution 
        making supplemental, deficiency, or continuing appropriations.
            ``(2) The term `legislative day' means, with respect to 
        either House of Congress, any day of session.
            ``(3) The term `rescind' means, with respect to an 
        appropriation Act, to reduce the amount of budget authority 
        appropriated in that Act, and reducing budget authority shall 
        include reducing obligation limitations set forth in that 
        Act.''.
    (b) Exercise of Rulemaking Powers.--Section 904 of the 
Congressional Budget Act of 1974 (2 U.S.C. 621 note) is amended--
            (1) in subsection (a), by striking ``and 1017'' and 
        inserting ``1012, and 1017''; and
            (2) in subsection (d), by striking ``section 1017'' and 
        inserting ``sections 1012 and 1017''.
    (c) Conforming Amendments.--
            (1) Section 1011 of the Congressional Budget Act of 1974 (2 
        U.S.C. 682(5)) is amended by repealing paragraphs (3) and (5) 
        and by redesignating paragraph (4) as paragraph (3).
            (2) Section 1014 of such Act (2 U.S.C. 685) is amended--
                    (A) in subsection (b)(1), by striking ``or the 
                reservation''; and
                    (B) in subsection (e)(1), by striking ``or a 
                reservation'' and by striking ``or each such 
                reservation''.
            (3) Section 1015(a) of such Act (2 U.S.C. 686) is amended 
        by striking ``is to establish a reserve or'', by striking ``the 
        establishment of such a reserve or'', and by striking ``reserve 
        or'' each other place it appears.
            (4) Section 1017 of such Act (2 U.S.C. 687) is amended--
                    (A) in subsection (a), by striking ``rescission 
                bill introduced with respect to a special message or'';
                    (B) in subsection (b)(1), by striking ``rescission 
                bill or'', by striking ``bill or'' the second place it 
                appears, by striking ``rescission bill with respect to 
                the same special message or'', and by striking ``, and 
                the case may be,'';
                    (C) in subsection (b)(2), by striking ``bill or'' 
                each place it appears;
                    (D) in subsection (c), by striking ``rescission'' 
                each place it appears and by striking ``bill or'' each 
                place it appears;
                    (E) in subsection (d)(1), by striking ``rescission 
                bill or'' and by striking ``, and all amendments 
                thereto (in the case of a rescission bill)'';
                    (F) in subsection (d)(2)--
                            (i) by striking the first sentence;
                            (ii) by amending the second sentence to 
                        read as follows: ``Debate on any debatable 
                        motion or appeal in connection with an 
                        impoundment resolution shall be limited to 1 
                        hour, to be equally divided between, and 
                        controlled by, the mover and the manager of the 
                        resolution, except that in the event that the 
                        manager of the resolution is in favor of any 
                        such motion or appeal, the time in opposition 
                        thereto shall be controlled by the minority 
                        leader or his designee.'';
                            (iii) by striking the third sentence; and
                            (iv) in the fourth sentence, by striking 
                        ``rescission bill or'' and by striking 
                        ``amendment, debatable motion,'' and by 
                        inserting `debatable motion';
                    (G) in paragraph (d)(3), by striking the second and 
                third sentences; and
                    (H) by striking paragraphs (4), (5), (6), and (7) 
                of paragraph (d).
    (d) Clerical Amendments.--The table of sections for subpart B of 
title X of the Congressional Budget and Impoundment Control Act of 1974 
is amended by redesignating the item relating to sections 1014 through 
1018 as items 1015 through 1019, respectively, and by inserting after 
the item relating to section 1012 the following new item:

``Sec. 1013. Enhanced consideration of certain proposed rescissions.''.

    Subtitle E--Extension of Discretionary Spending Limits and Paygo

SEC. 261. AMENDMENTS TO SECTIONS 251, 252, AND 275 OF THE BALANCED 
              BUDGET AND EMERGENCY DEFICIT CONTROL ACT OF 1985.

    (a) Adjustments to Discretionary Spending Limits.--In the matter 
that precedes subparagraph (A) of section 251(b)(2) of the Balanced 
Budget and Emergency Deficit Control Act of 1985, strike ``through 
2002''.
    (b) Discretionary Spending Limit.--Section 251(c) of the Balanced 
Budget and Emergency Deficit Control Act of 1985 is amended as follows:
            (1) Strike paragraphs (1) through (6) and redesignate 
        paragraph (7) (which relates to fiscal year 2003) as paragraph 
        (1) and in such redesignated paragraph strike subparagraph (A), 
        redesignate subparagraphs (B) and (C) as subparagraphs (C) and 
        (D), respectively, and before subparagraph (C), insert the 
        following new subparagraphs:
                    ``(A) for the discretionary category: 
                $754,900,000,000 in new budget authority and 
                $704,230,000,000 in outlays;''
                    ``(B) for the highway category: $27,728,000,000 in 
                outlays;''.
            (2) Redesignate paragraph (8) as paragraph (2) and in such 
        redesignated paragraph strike ``with respect to fiscal year 
        2004'', redesignate the remaining matter as subparagraph (B), 
        and before such redesignated matter insert the following:
            ``(2) with respect to fiscal year 2004--
                    ``(A) for the discretionary category: 
                $775,020,000,000 in new budget authority and 
                $706,970,000,000 in outlays; and''.
            (3) Redesignate paragraph (9) as paragraph (3) and in such 
        redesignated paragraph strike ``with respect to fiscal year 
        2005'', redesignate the remaining matter as subparagraph (B), 
        and before such redesignated matter insert the following:
            ``(3) with respect to fiscal year 2005--
                    ``(A) for the discretionary category: 
                $801,560,000,000 in new budget authority and 
                $779,810,000,000 in outlays; and''.
            (4) Redesignate paragraph (10) as paragraph (4) and in such 
        redesignated paragraph strike ``with respect to fiscal year 
        2006'', redesignate the remaining matter as subparagraph (B), 
        and before such redesignated matter insert the following:
            ``(4) with respect to fiscal year 2006--
                    ``(A) for the discretionary category: 
                $828,600,000,000 in new budget authority and 
                $793,650,000,000 in outlays; and''.
            (5) Redesignate paragraphs (11) through (16) as paragraphs 
        (6) through (11) and after paragraph (4) insert the following 
        new paragraph:
            ``(5) with respect to fiscal year 2007 for the 
        discretionary category: $862,500,000,000 in new budget 
        authority and $812,000,000,000 in outlays;''.
    (c) Extension of Pay-As-You-Go Requirement.--(1) Section 252(a) of 
the Balanced Budget and Emergency Deficit Control Act of 1985 is 
amended by striking ``2002'' and inserting ``2007''.
    (2) Section 252(b)(1) of such Act is amended by striking ``2002'' 
and inserting ``2007''.
    (d) Expiration.--Section 275(b) of the Balanced Budget and 
Emergency Deficit Control Act of 1985 is amended by striking ``2002'' 
and inserting ``2007'' and by striking ``2006'' and inserting ``2011''.

        Subtitle F--Paygo Requirements and the On-Budget Surplus

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

    (a) Sequestration.--(1) Section 252(b)(1) of the Balanced Budget 
and Emergency Deficit Control Act of  1985 is amended by inserting ``, 
minus the amount for the budget year, if any, estimated under paragraph 
(3)'' after ``as calculated under paragraph (2)''.
    (2) Section 252(b) of such Act is amended by adding at the end the 
following new paragraph:
            ``(3) Estimate of on-budget surplus in excess of social 
        security surplus.--OMB estimates for the budget year of the 
        amount (if any) of the budget surplus as set forth in the OMB 
        sequestration preview report as calculated pursuant to section 
        254(c)(3).''.
    (b) Reports.--Section 254(c)(3) of the Balanced Budget and 
Emergency Deficit Control Act of 1985 is amended by adding at the end 
the following new subparagraph:
                    ``(D) The estimated excess of receipts over outlays 
                for the budget year (if any).''.

     Subtitle G--Treatment of Extraneous Appropriations in Omnibus 
                         Appropriation Measures

SEC. 281. TREATMENT OF EXTRANEOUS APPROPRIATIONS.

    (a) In General.--Title III of the Congressional Budget Act of 1974 
(as amended by section 232)) is further amended by adding at the end 
the following new section:

   ``treatment of extraneous appropriations in omnibus appropriation 
                                measures

    ``Sec. 319. (a) Point of Order.--It shall not be in order in the 
House of Representatives or the Senate to consider an omnibus 
appropriation measure, or any amendment thereto or conference report 
thereon, that appropriates funds for any program, project, or activity 
that is not within the subject matter jurisdiction of any subcommittee 
of the Committee on Appropriations of the House of Representatives or 
Senate, as applicable, with jurisdiction over any regular appropriation 
bill contained in such measure.
    ``(b) Definitions.--As used in this section:
            ``(1) The term `omnibus appropriation measure' means any 
        bill or joint resolution making continuing appropriations for a 
        fiscal year and that is comprised of more than one regular 
        appropriation bills.
            ``(2) The term `regular appropriation bill' means any 
        annual appropriation bill making appropriations, otherwise 
        making funds available, or granting authority, for any of the 
        following categories of projects and activities:
                    ``(A) Agriculture, rural development, and related 
                agencies programs.
                    ``(B) The Departments of Commerce, Justice, and 
                State, the judiciary, and related agencies.
                    ``(C) The Department of Defense.
                    ``(D) The government of the District of Columbia 
                and other activities chargeable in whole or in part 
                against the revenues of the District.
                    ``(E) The Departments of Labor, Health and Human 
                Services, and Education, and related agencies.
                    ``(F) The Department of Housing and Urban 
                Development, and sundry independent agencies, boards, 
                commissions, corporations, and offices.
                    ``(G) Energy and water development.
                    ``(H) Foreign assistance and related programs.
                    ``(I) The Department of the Interior and related 
                agencies.
                    ``(J) Military construction.
                    ``(K) The Department of Transportation and related 
                agencies.
                    ``(L) The Treasury Department, the U.S. Postal 
                Service, the Executive Office of the President, and 
                certain independent agencies.
                    ``(M) The legislative branch.''.
    (b) Conforming Amendment.--The table of contents set forth in 
section 1(b) of the Congressional Budget and Impoundment Control Act of 
1974 is amended by inserting after the item relating to section 318 the 
following new item:

``Sec. 319. Treatment of extraneous appropriations in omnibus 
                            appropriation measures.''.

TITLE III--BUDGETING AND MANAGING FOR RESULTS: FULL FUNDING FOR FEDERAL 
                             RETIREE COSTS

Subtitle A--Accrual Funding of Pensions and Retirement Pay for Federal 
               Employees and Uniformed Services Personnel

SEC. 301. CIVIL SERVICE RETIREMENT SYSTEM.

    (a) Civil Service Retirement and Disability Fund.--Chapter 83 of 
title 5, United States Code, is amended--
            (1) in section 8331--
                    (A) in paragraph (17)--
                            (i) by striking ``normal cost'' and 
                        inserting ``normal cost percentage''; and
                            (ii) by inserting ``and standards (using 
                        dynamic assumptions)'' after ``practice'';
                    (B) by amending paragraph (18) to read as follows:
            ``(18) `Fund balance' means the current net assets of the 
        Fund available for payment of benefits, as determined by the 
        Office in accordance with appropriate accounting standards, but 
        does not include any amount attributable to--
                    ``(A) the Federal Employees' Retirement System; or
                    ``(B) contributions made under the Federal 
                Employees' Retirement Contribution Temporary Adjustment 
                Act of 1983 by or on behalf of any individual who 
                became subject to the Federal Employees' Retirement 
                System;''
                    (C) by amending paragraph (19) to read as follows:
            ``(19) `accrued liability' means the estimated excess of 
        the present value of all benefits payable from the Fund to 
        employees and Members, and former employees and Members, 
        subject to this subchapter,  and their survivors, over the 
present value of deductions to be withheld from the future basic pay of 
employees and Members currently subject to this subchapter and of 
future agency contributions to be made in their behalf;''
                    (D) in paragraph (27) by striking ``and'' at the 
                end;
                    (E) in paragraph (28) by striking the period at the 
                end and inserting a semicolon; and
                    (F) by adding at the end the following paragraphs:
            ``(29) `dynamic assumptions' means economic assumptions 
        that are used in determining actuarial costs and liabilities of 
        a retirement system and in anticipating the effects of long-
        term future--
                    ``(A) investment yields;
                    ``(B) increases in rates of basic pay; and
                    ``(C) rates of price inflation; and
            ``(30) `unfunded liability' means the estimated excess of--
                    ``(A) the actuarial present value of all future 
                benefits payable from the Fund under this subchapter 
                based on the service of current or former employees or 
                Members, over
                    ``(B) the sum of--
                            ``(i) the actuarial present value of 
                        deductions to be withheld from the future basic 
                        pay of employees and Members currently subject 
                        to this chapter pursuant to section 8334;
                            ``(ii) the actuarial present value of the 
                        future contributions to be made pursuant to 
                        section 8334 with respect to employees and 
                        Members currently subject to this subchapter;
                            ``(iii) the Fund balance, as defined in 
                        paragraph (18), as of the date the unfunded 
                        liability is determined; and
                            ``(iv) any other appropriate amount, as 
                        determined by the Office of Personnel 
                        Management in accordance with generally 
                        accepted actuarial practices and principles.'';
            (2) in section 8334--
                    (A) in subsection (a)(1)--
                            (i) by striking the last two sentences;
                            (ii) by redesignating that subsection, as 
                        so amended, as (a)(1)(A); and
                            (iii) by adding at the end the following 
                        new subparagraphs:
    ``(B) Except as provided in subparagraph (E), each employing agency 
having any employees or Members subject to subparagraph (A) shall 
contribute from amounts available for salaries and expenses an amount 
equal to the sum of--
            ``(i) the product of--
                    ``(I) the normal cost percentage, as determined for 
                employees (other than employees covered by clause 
                (ii)), multiplied by
                    ``(II) the aggregate amount of basic pay payable by 
                the agency, for the period involved, to employees 
                (under subclause (I)) who are within such agency; and
            ``(ii) the product of--
                    ``(I) the normal cost percentage, as determined for 
                Members, Congressional employees, law enforcement 
                officers, firefighters, air traffic controllers, 
                bankruptcy judges, Court of Federal Claims judges, 
                United States magistrates, judges of the United States 
                Court of Appeals for the Armed Forces, members of the 
                Capitol Police, nuclear materials couriers, and members 
                of the Supreme Court Police, multiplied by
                    ``(II) the aggregate amount of basic pay payable by 
                the agency for the period involved, to employees and 
                Members (under subclause (I)) who are within such 
                agency.
    ``(C) In determining the normal cost percentage to be applied under 
subparagraph (B), amounts provided for under subparagraph (A) shall be 
taken into account.
    ``(D) Contributions under this paragraph shall be paid--
            ``(i) in the case of law enforcement officers, 
        firefighters, air traffic controllers, bankruptcy judges, Court 
        of Federal Claims judges, United States magistrates, judges of 
        the United States Court of Appeals for the Armed Forces, 
        members of the Supreme Court Police, nuclear materials couriers 
        and other employees, from the appropriations or fund used to 
        pay such law enforcement officers, firefighters, air traffic 
        controllers, bankruptcy judges, Court of Federal Claims judges, 
        United States magistrates, judges of the United States Court of 
        Appeals for the Armed Forces, members of the Supreme Court 
        Police, nuclear materials couriers and other employees, 
        respectively;
            ``(ii) in the case of elected officials, from an 
        appropriation or fund available for payment of other salaries 
        of the same office or establishment; and
            ``(iii) in the case of employees of the legislative branch 
        paid by the Clerk of the House of Representatives, from the 
        contingent fund of the House.
    ``(E) In the case of the United States Postal Service, the 
Metropolitan Washington Airports Authority, and the government of the 
District of Columbia, an amount equal to that withheld under 
subparagraph (A) shall be contributed from the appropriation or fund 
used to pay the employee.''; and
                    (B) in subsection (k)--
                            (i) in paragraph (1)--
                                    (I) in subparagraph (A) by striking 
                                ``the first sentence of subsection 
                                (a)(1) of this section'' and inserting 
                                ``subsection (a)(1)(A)''; and
                                    (II) by amending subparagraph (B) 
                                to read as follows:
            ``(B) the amount of the contribution under subsection 
        (a)(1)(B) shall be the amount which would have been contributed 
        under such subsection if this subsection had not been 
        enacted.''; and
                            (ii) in paragraph (2)(C)(iii) by striking 
                        ``the first sentence of subsection (a)(1)'' and 
                        inserting ``subsection (a)(1)(A)''; and
            (3) in section 8348--
                    (A) by repealing subsection (f);
                    (B) by amending subsection (g) to read as follows:
    ``(g)(1)(A) Not later than June 30, 2004, the Office of the Actuary 
shall determine the unfunded liability of the Fund, as of September 30, 
2003, attributable to benefits payable under this chapter and make 
recommendations regarding its liquidation. After considering such 
recommendations, the Office shall establish an amortization schedule, 
including a series of annual installments commencing October 1, 2004, 
which provides for the liquidation of such liability by October 1, 
2043.
    ``(B) The Office shall redetermine the unfunded liability of the 
Fund as of the close of the fiscal year, for each fiscal year beginning 
after September 30, 2003, through the fiscal year ending September 30, 
2038, and shall establish a new amortization schedule, including a 
series of annual installments commencing on October 1 of the second 
subsequent fiscal year, which provides for the liquidation of such 
liability by October 1, 2043.
    ``(C) The Office shall redetermine the unfunded liability of the 
Fund as of the close of the fiscal year for each fiscal year beginning 
after September 30, 2038, and shall establish a new amortization 
schedule, including a series of annual installments commencing on 
October 1 of the second subsequent fiscal year, which provides for the 
liquidation of such liability over five years.
    ``(D) Amortization schedules established under this paragraph shall 
be set in accordance with generally accepted actuarial practices and 
principles, with interest computed at the rate used in the most recent 
valuation of the Civil Service Retirement System.
    ``(2) At the beginning of each fiscal year, beginning on October 1, 
2004, the Office shall notify the Secretary of the Treasury of the 
amount of the first installment under the most recent amortization 
schedule established under paragraph (1). The Secretary shall credit 
that amount to the Fund, as a Government contribution, out of any money 
in the Treasury of the United States not otherwise appropriated.
    ``(3) For the purpose of carrying out paragraph (1) with respect to 
any fiscal year, the Office may--
            ``(A) require the Board of Actuaries of the Civil Service 
        Retirement System to make actuarial determinations and 
        valuations, make recommendations, and maintain records in 
        accordance with section 8347(f); and
            ``(B) use the latest actuarial determinations and 
        valuations made by such Board of Actuaries.'';
                    (C) in subsections (h), (i), and (m) by striking 
                ``unfunded'' and inserting ``accrued'' each place it 
                appears; and
                    (D) by adding at the end the following new 
                subsection:
    ``(n) Under regulations prescribed by the Office, the head of an 
agency may request reconsideration of any amount determined to be 
payable with respect to such agency under section 8334(a)(1)(B)-(D). 
Any such request shall be referred to the Board of Actuaries of the 
Civil Service Retirement System. The Board of Actuaries shall review 
the computations of the Office and may make any adjustment with respect 
to any such amount which the Board determines appropriate. A 
determination by the Board of Actuaries under this subsection shall be 
final.''.
    (b) Government Contributions.--Section 8423 of title 5, United 
States Code, is amended--
            (1) in subsection (a)(2) by striking ``section 8422'' and 
        inserting ``section 8422(a)''; and
            (2) in subsection (b)(2) by striking ``equal annual 
        installments'' and inserting ``annual installments set in 
        accordance with generally accepted actuarial practices and 
        principles''.

SEC. 302. CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM.

    (a) Section 101 of the Central Intelligence Agency Retirement Act 
(50 U.S.C. 2001) is amended--
            (1) in paragraph (5), to read as follows:
            ``(5) Unfunded liability.--The term `unfunded liability' 
        means the estimated excess of--
                    ``(A) the actuarial present value of all future 
                benefits payable from the Fund under title II of this 
                Act based on the service of current or former 
                participants, over
                    ``(B) the sum of--
                            ``(i) the actuarial present value of 
                        deductions to be withheld from the future basic 
                        pay of participants currently subject to title 
                        II of this Act pursuant to section 211;
                            ``(ii) the actuarial present value of the 
                        future contributions to be made pursuant to 
                        section 211 with respect to participants 
                        currently subject to title II of this Act;
                            ``(iii) the Fund balance, as defined in 
                        paragraph (4), as of the date the unfunded 
                        liability is determined; and
                            ``(iv) any other appropriate amount, as 
                        determined by the Director in accordance with 
                        generally accepted actuarial practices and 
                        principles.'';
            (2) in paragraph (6)--
                    (A) by striking ```normal cost''' and inserting 
                ```normal cost percentage'''; and
                    (B) by inserting ``and standards (using dynamic 
                assumptions)'' after ``practice''; and
            (3) by adding at the end the following paragraph:
            ``(10) Dynamic assumptions.--The term `dynamic assumptions' 
        means economic assumptions that are used in determining 
        actuarial costs and liabilities of a retirement system and in 
        anticipating the effects of long-term future--
                    ``(A) investment yields;
                    ``(B) increases in rates of basic pay; and
                    ``(C) rates of price inflation.'';
    (b) Section 202 of such Act (50 U.S.C. 2012) is amended by adding 
at the end the following: ``The Fund is appropriated for the payment of 
benefits as provided by this title.''.
    (c) Section 211(a)(2) of such Act (50 U.S.C. 2021(a)(2)) is amended 
to read as follows:
            ``(2) Agency contributions.--The Agency shall contribute to 
        the Fund the amount computed in a manner similar to that used 
under section 8334(a) of title 5, United States Code, pursuant to 
determinations of the normal cost percentage of the Central 
Intelligence Agency Retirement and Disability System by the Director. 
Contributions under this paragraph shall be paid from amounts available 
for salaries and expenses.''; and
    (d) Section 261 of such Act (50 U.S.C. 2091) is amended--
            (1) by striking subsections (c), (d), and (e); and
            (2) by inserting after subsection (b) the following new 
        subsections:
    ``(c)(1) Not later than June 30, 2004, the Director shall cause to 
be made actuarial valuations of the Fund that determine the unfunded 
liability of the Fund, as of September 30, 2003, attributable to 
benefits payable under this title and make recommendations regarding 
its liquidation. After considering such recommendations, the Director 
shall establish an amortization schedule, including a series of annual 
installments commencing October 1, 2004, which provides for the 
liquidation of such liability by October 1, 2043.
    ``(2) The Director shall redetermine the unfunded liability of the 
Fund as of the close of the fiscal year, for each fiscal year beginning 
after September 30, 2003, through the fiscal year ending September 30, 
2038, and shall establish a new amortization schedule, including a 
series of annual installments commencing on October 1 of the second 
subsequent fiscal year, which provides for the liquidation of such 
liability by October 1, 2043.
    ``(3) The Director shall redetermine the unfunded liability of the 
Fund as of the close of the fiscal year for each fiscal year beginning 
after September 30, 2038, and shall establish a new amortization 
schedule, including a series of annual installments commencing on 
October 1 of the second subsequent fiscal year, which provides for the 
liquidation of such liability over five years.
    ``(4) Amortization schedules established under this subsection 
shall be set in accordance with generally accepted actuarial practices 
and principles, with interest computed at the rate used in the most 
recent valuation of the Civil Service Retirement and Disability System.
    ``(d) At the beginning of each fiscal year, beginning on October 1, 
2004, the Director shall notify the Secretary of the Treasury of the 
amount of the first installment under the most recent amortization 
schedule established under subsection (c). The Secretary shall credit 
that amount to the Fund, as a Government contribution, out of any money 
in the Treasury of the United States not otherwise appropriated. For 
the purposes of Section 504 of the National Security Act of 1947, this 
amount shall be considered authorized.''.
    (e)(1) Title III of such Act (50 U.S.C. 2151 et seq.) is amended by 
adding at the end the following new section:

``SEC. 308. FULL FUNDING OF RETIREE COSTS FOR EMPLOYEES DESIGNATED 
              UNDER SECTION 302.

    ``(a) In addition to other government contributions required by 
law, the Agency shall contribute to the Civil Service Retirement and 
Disability fund (hereinafter in this section referred to as the `Fund') 
amounts calculated in accordance with section 8423 of title 5, United 
States Code, based on the projected number of employees to be 
designated pursuant to section 302 of this Act. In addition, the 
Agency, in a manner similar to that established for employee 
contributions to the Fund by section 8422 of title 5, United States 
Code, will contribute an amount equal to the difference between that 
which would be contributed by the number of employees projected to be 
designated under section 302 and the amounts that are actually being 
deducted and contributed from the basic pay of an equal number of 
employees pursuant to section 8422. The amounts of the Agency's 
contributions under this subsection shall be determined by the Director 
of the Office of Personnel Management, in consultation with the 
Director, and shall be paid by the Agency from funds available for 
salaries and expenses. Agency employees designated pursuant to section 
302 of this Act shall, commencing with such designation, have deducted 
from their basic pay the full amount required by section 8422 of title 
5, United States Code, and such deductions shall be contributed to the 
Fund.
    ``(b)(1) The Director of the Office of Personnel Management, in 
consultation with the Director, shall determine the total amount of 
unpaid contributions (government and employee contributions) and 
interest attributable to the number of individuals employed with the 
Agency on September 30, 2004, who are projected to be designated under 
section 302 of this Act, but are not yet designated under that section 
as of that date. The amount shall be referred to as the section 302 
unfunded liability.
    ``(2) Not later than June 30, 2005, the Director of the Office of 
Personnel Management, in consultation with the Director, shall 
establish an amortization schedule, setting forth a series of annual 
installments commencing September 30, 2005, which provides for the 
liquidation of the section 302 unfunded liability by September 30, 
2012.
    ``(3) At the end of each fiscal year, beginning on September 30, 
2005, the Director shall notify the Secretary of the Treasury of the 
amount of the annual installment under the amortization schedule 
established under paragraph (2) of this subsection. Before closing the 
accounts for that fiscal year, the Secretary shall credit that amount 
to the Fund, out of any money in the Treasury of the United States not 
otherwise appropriated.
    ``(c) Amounts paid by the Agency pursuant to this section are 
deemed to be specifically authorized by the Congress for the purposes 
of section 504 of the National Security Act of 1947.''.
    (2) The table of contents of such Act is amended by inserting after 
the item relating to section 307 the following new item:

``Sec. 308. Full funding of retiree costs for employees designated 
                            under section 302.''.

SEC. 303. FOREIGN SERVICE RETIREMENT AND DISABILITY SYSTEM.

    (a) Chapter 8 of Title I of the Foreign Service Act of 1980, Public 
Law 96-465, (22 U.S.C. 4041 et seq.) 94 Stat. 2071, as amended, is 
further amended in section 804 (22 U.S.C. 4044)--
            (1) by amending paragraph (5) to read as follows:
            ``(5) `normal cost percentage' means the entry-age normal 
        cost computed in accordance with generally accepted actuarial 
        practice and standards (using dynamic assumptions) and 
        expressed as a level percentage of aggregate basic pay;'';
            (2) by amending paragraph (14) to read as follows:
            ``(14) `unfunded liability' means the estimated excess of--
                    ``(A) the actuarial present value of all future 
                benefits payable from the Fund under this part based on 
                the service of current or former participants, over
                    ``(B) the sum of--
                            ``(i) the actuarial present value of 
                        deductions to be withheld from the future basic 
                        pay of participants currently subject to this 
                        part pursuant to section 805;
                            ``(ii) the actuarial present value of the 
                        future contributions to be made pursuant to 
                        section 805 with respect to participants 
                        currently subject to this part;
                            ``(iii) the Fund balance, as defined in 
                        paragraph (7), as of the date the unfunded 
                        liability is determined, excluding any amount 
                        attributable to the Foreign Service Pension 
                        System, or contributions made under the Federal 
                        Employees' Retirement Contribution Temporary 
                        Adjustment Act of 1983 by or on behalf of any 
                        individual who became subject to the Foreign 
                        Service Pension System; and
                            ``(iv) any other appropriate amount, as 
                        determined by the Secretary of the Treasury in 
                        accordance with generally accepted actuarial 
                        practices and principles.''; and
            (3)(A) by striking the period at the end of paragraph (15) 
        and inserting ``; and''; and
            (B) by adding at the end the following new paragraph:
            ``(16) `dynamic assumptions' means economic assumptions 
        that are used in determining actuarial costs and liabilities of 
        a retirement system and in anticipating the effects of long-
        term future--
                    ``(A) investment yields;
                    ``(B) increases in rates of basic pay; and
                    ``(C) rates of price inflation.'';
    (b) in section 852 (22 U.S.C. 4071a)--
            (1) in paragraph (4)--
                    (A) by striking ``normal cost'' and inserting 
                ``normal cost percentage''; and
                    (B) by striking ``by the Secretary of State'';
            (2) in paragraph (7)--
                    (A) by striking ``supplemental'' and inserting 
                ``unfunded'';
                    (B) in subparagraph (B)(i) by striking ``(I)'' and 
                ``and (II) contributions for past civilian and military 
                service''; and
                    (C) in subparagraph (B)(ii) by inserting before the 
                semicolon ``with respect to participants currently 
                subject to this part''; and
            (3)(A) at the end of paragraph (8) by striking ``and'';
            (B) at the end of paragraph (9) by striking the period and 
        insering ``; and''; and
            (C) by adding at the end the following new paragraph:
            ``(10) `dynamic assumptions' means economic assumptions 
        that are used in determining actuarial costs and liabilities of 
        a retirement system and in anticipating the effects of long-
        term future--
                    ``(A) investment yields;
                    ``(B) increases in rates of basic pay; and
                    ``(C) rates of price inflation.'';
    (c) in section 805(a)(1) (22 U.S.C. 4045(a)(i))--
            (1) by striking the second sentence;
            (2) (by redesignating that subsection, as so amended, as 
        (a)(1)(A);
            (3) by redesignating the last sentence of that subsection, 
        as so amended as (a)(1)(C);
            (4) by inserting after subparagraph (A) the following new 
        subparagraph:
                    ``(B) Each employing agency having participants 
                shall contribute to the Fund the amount computed in a 
                manner similar to that used under section 8334(a) of 
                title 5, United States Code, pursuant to determinations 
                of the normal cost percentage of the Foreign Service 
                Retirement and Disability System. Contributions under 
                this subparagraph shall be paid from the appropriations 
                or fund used for payment of the salary of the 
                participant.'';
            (5) in subsection (a)(2)(A) by striking ``An equal amount 
        shall be contributed by the Department'' and inserting in its 
        place ``Each employing agency having participants shall 
        contribute to the Fund the amount computed in a manner similar 
        to that used under section 8334(a) of title 5, United States 
        Code, pursuant to determinations of the normal cost percentage 
        of the Foreign Service Retirement and Disability System''; and
            (6) in subsection (a)(2)(B) by striking ``An equal amount 
        shall be contributed by the Department'' and inserting in its 
        place ``Each employing agency having participants shall 
        contribute to the Fund from amounts available for salaries and 
        expenses the amount computed in a manner similar to that used 
        under section 8334(a) of title 5, United States Code, pursuant 
        to determinations of the normal cost percentage of the Foreign 
        Service Retirement and Disability System'';
    (d) by repealing sections 821 and 822 (22 U.S.C. 4061 and 4062) and 
by adding the following new section:
    ``Sec. 821. Unfunded Liability.--(a)(1) Not later than June 30, 
2004, the Secretary of State shall cause to be made actuarial 
valuations of the Fund that determine the unfunded liability of the 
Fund, as of September 30, 2003, attributable to benefits payable under 
this subchapter and make recommendations regarding its liquidation. 
After considering such recommendations, the Secretary of State shall 
establish an amortization schedule, including a series of annual 
installments commencing October 1, 2004, which provides for the 
liquidation of such liability by October 1, 2043.
    ``(2) The Secretary of State shall redetermine the unfunded 
liability of the Fund as of the close of the fiscal year, for each 
fiscal year beginning after September 30, 2003, through the fiscal year 
ending September 30, 2038, and shall establish a new amortization 
schedule, including a series of annual installments commencing on 
October 1 of the second subsequent fiscal year, which provides for the 
liquidation of such liability by October 1, 2043.
    ``(3) The Secretary of State shall redetermine the unfunded 
liability of the Fund as of the close of the fiscal year for each 
fiscal year beginning after September 30, 2038, and shall establish a 
new amortization schedule, including a series of annual installments 
commencing on October 1 of the second subsequent fiscal year, which 
provides for the liquidation of such liability over five years.
    ``(4) Amortization schedules established under this subsection 
shall be set in accordance with generally accepted actuarial practices 
and principles, with interest computed at the rate used in the most 
recent valuation of the Foreign Service Retirement and Disability 
System.
    ``(b) At the beginning of each fiscal year, beginning on October 1, 
2004, the Secretary of State shall notify the Secretary of the Treasury 
of the amount of the first installment under the most recent 
amortization schedule established under paragraph (1). The Secretary of 
the Treasury shall credit that amount to the Fund, as a Government 
contribution, out of any money in the Treasury of the United States not 
otherwise appropriated.'';
    (e) in section 857(b)(1) (22 U.S.C. 4071f(b)(1)) by striking 
``equal annual installments'' and inserting ``annual installments set 
in accordance with generally accepted actuarial practices and 
principles'';
    (f) in section 859 (22 U.S.C. 4071h) by adding ``percentage'' after 
``normal cost'';
    (g) in section 802 (22 U.S.C. 4042) by adding at the end the 
following: ``The Fund is appropriated for the payment of benefits as 
provided by this subchapter.''; and
    (h) in section 818 (22 U.S.C. 4058) by striking ``System'' and 
inserting ``Systems under this subchapter''.

SEC. 304. PUBLIC HEALTH SERVICE COMMISSIONED CORPS RETIREMENT SYSTEM.

    (a) In General.--Title II of the Public Health Service Act (42 
U.S.C. 202 et seq.) is amended by adding at the end the following new 
part:

  ``PART C--PUBLIC HEALTH SERVICE COMMISSIONED CORPS RETIREMENT SYSTEM

                  ``establishment and purpose of fund

    ``Sec. 251. There is established on the books of the Treasury a 
fund to be known as the Public Health Service Commissioned Corps 
Retirement Fund (hereinafter in this part referred to as the `Fund'), 
which shall be administered by the Secretary. The Fund shall be used 
for the accumulation of funds in order to finance on an actuarially 
sound basis liabilities of the Department of Health and Human Services 
for benefits payable on account of retirement, disability, or death to 
commissioned officers of the Public Health Service and to their 
survivors pursuant to part A of this title.

                          ``assets of the fund

    ``Sec. 252. There shall be deposited into the Fund the following, 
which shall constitute the assets of the Fund:
            ``(1) Amounts paid into the Fund under section 255.
            ``(2) Any return on investment of the assets of the Fund.
            ``(3) Amounts transferred into the Fund pursuant to section 
        304(c) of the Budget Fraud Elimination Act of 2003.

                        ``payment from the fund

    ``Sec. 253. There shall be paid from the Fund benefits payable on 
account of retirement, disability, or death to commissioned officers of 
the Public Health Service and to their survivors pursuant to part A of 
this title.

              ``determination of contributions to the fund

    ``Sec. 254. (a)(1) Not later than June 30, 2004, the Secretary 
shall determine the unfunded liability of the Fund attributable to 
service performed as of September 30, 2003, which is `active service' 
for the purpose of section 212. The Secretary shall establish an 
amortization schedule, including a series of annual installments 
commencing October 1, 2004, which provides for the liquidation of such 
liability by October 1, 2043.
    ``(2) The Secretary shall redetermine the unfunded liability of the 
Fund as of the close of the fiscal year, for each fiscal year beginning 
after September 30, 2003, through the fiscal year ending September 30, 
2038, and shall establish a new amortization schedule, including a 
series of annual installments commencing on October 1 of the second 
subsequent fiscal year, which provides for the liquidation of such 
liability by October 1, 2043.
    ``(3) The Secretary shall redetermine the unfunded liability of the 
Fund as of the close of the fiscal year for each fiscal year beginning 
after September 30, 2038, and shall establish a new amortization 
schedule, including a series of annual installments commencing on 
October 1 of the second subsequent fiscal year, which provides for the 
liquidation of such liability over 5 years.
    ``(b) The Secretary shall determine each fiscal year, in sufficient 
time for inclusion in the budget request for the following fiscal year, 
the total amount of Department of Health and Human Services 
contributions to be made to the Fund during the fiscal year under 
section 255(a). That amount shall be the sum of--
            ``(1) the product of--
                    ``(A) the current estimate of the value of the 
                single level percentage of basic pay to be determined 
                under subsection (c)(1) at the time of the most recent 
                actuarial valuation under subsection (c); and
                    ``(B) the total amount of basic pay expected to be 
                paid during that fiscal year to commissioned officers 
                of the Public Health Service on active duty (other than 
                active duty for training); and
            ``(2) the product of--
                    ``(A) the current estimate of the value of the 
                single level percentage of basic pay and of 
                compensation (paid pursuant to section 206 of title 37, 
                United States Code) to be determined under subsection 
                (c)(2) at the time of the most recent actuarial 
                valuation under subsection (c); and
                    ``(B) the total amount of basic pay and of 
                compensation (paid pursuant to section 206 of title 37, 
                United States Code) expected to be paid during the 
                fiscal year to commissioned officers of the Reserve 
                Corps of the Public Health Service (other than officers 
                on full-time duty other than for training) who are not 
otherwise described in subparagraph (A).
    ``(c) Not less often than every four years thereafter (or by the 
fiscal year end prior to the effective date of any statutory change 
affecting benefits payable on account of retirement, disability, or 
death to commissioned officers or their survivors), the Secretary shall 
carry out an actuarial valuation of benefits payable on account of 
retirement, disability, or death to commissioned officers of the Public 
Health Service and to their survivors pursuant to part A of this title. 
Each such actuarial valuation shall be signed by an enrolled Actuary 
and shall include--
            ``(1) a determination (using the aggregate entry-age normal 
        cost method) of a single level percentage of basic pay for 
        commissioned officers of the Public Health Service on active 
        duty (other than active duty for training); and
            ``(2) a determination (using the aggregate entry-age normal 
        cost method) of a single level percentage of basic pay and of 
        compensation (paid pursuant to section 206 of title 37, United 
        States Code) of commissioned officers of the Reserve Corps of 
        the Public Health Service (other than officers on full time 
        duty other than for training) who are not otherwise described 
        in paragraph (1).
    ``(d) All determinations under this section shall be in accordance 
with generally accepted actuarial principles and practices and, where 
appropriate, shall follow the general pattern of methods and 
assumptions approved by the Department of Defense Retirement Board of 
Actuaries.
    ``(e) The Secretary shall provide for the keeping of such records 
as are necessary for determining the actuarial status of the Fund.

                        ``payments into the fund

    ``Sec. 255. (a) From amounts available to the Department of Health 
and Human Services for salaries and expenses, the Secretary shall pay 
into the Fund at the end of each month the amount that is the sum of--
            ``(1) the product of--
                    ``(A) the level percentage of basic pay determined 
                using all the methods and assumptions approved for the 
                most recent (as of the first day of the current fiscal 
                year) actuarial valuation under sections 254(c)(1) 
                (except that any statutory change affecting benefits 
                payable on account of retirement, disability, or death 
                to commissioned officers or their survivors that is 
                effective after the date of that valuation and on or 
                before the first day of the current fiscal year shall 
                be used in such determination); and
                    ``(B) the total amount of basic pay accrued for 
                that month by commissioned officers of the Public 
                Health Service on active duty (other than active duty 
                for training); and
            ``(2) the product of--
                    ``(A) the level percentage of basic pay and of 
                compensation (paid pursuant to section 206 of title 37, 
                United States Code) determined using all the methods 
                and assumptions approved for the most recent (as of the 
                first day of the current fiscal year) actuarial 
                valuation under section 254(c)(2) (except that any 
                statutory change affecting benefits payable on account 
                of retirement, disability, or death to commissioned 
                officers or their survivors that is effective after the 
                date of that valuation and on or before the first day 
of the current fiscal year shall be used in such determinations); and
                    ``(B) the total amount of basic pay and of 
                compensation (paid pursuant to section 206 of title 37, 
                United States Code) accrued for that month by 
                commissioned officers of the Reserve Corps of the 
                Public Health Service (other than officers on full-time 
                duty other than for training).
    ``(b) At the beginning of each fiscal year, beginning on October 1, 
2004, the Secretary shall certify to the Secretary of the Treasury the 
amount of the first installment under the most recent amortization 
schedule established under section 254(a). The Secretary of the 
Treasury shall pay into the Fund from the General Fund of the Treasury 
the amount so certified. Such payment shall be the contribution to the 
Fund for that fiscal year.

                    ``investments of assets of fund

    ``Sec. 256. The Secretary may request the Secretary of the Treasury 
to invest such portion of the Fund as is not, in the judgment of the 
Secretary, required to meet the current needs of the Fund. Such 
investments shall be made by the Secretary of the Treasury in public 
debt securities with maturities suitable to the needs of the Fund, as 
determined by the Secretary, and bearing interest at rates determined 
by the Secretary of the Treasury, taking into consideration current 
market yields on outstanding marketable obligations of the United 
States of comparable maturities. The income on such investments shall 
be credited to and form a part of the Fund.

                    ``implementation year exceptions

    ``Sec. 257. (a) To avoid funding shortfalls in the first year 
should formal actuarial determinations not be available in time for 
budget preparation, the amounts used in the first year in sections 
255(a)(1)(A) and 255(a)(2)(A) shall be set equal to those estimates in 
sections 254(b)(1)(A) and 254(b)(2)(A) if final determinations are not 
available. The original unfunded liability as defined in section 254(a) 
shall include an adjustment to correct for this difference between the 
formal actuarial determinations and the estimates in sections 
254(b)(1)(A) and 254(b)(2)(A).''.
    (b) Conforming Amendments.--
            (1) Condition of detail.--Section 214 of the Public Health 
        Service Act (42 U.S.C. 215) is amended by adding at the end the 
        following new subsection:
    ``(e) The Secretary shall condition any detail under subsection 
(a), (b), or (c) upon the agreement of the executive department, State, 
subdivision, Committee of the Congress, or institution concerned to pay 
to the Department of Health and Human Services, in advance or by way of 
reimbursement, for the full cost of the detail including that portion 
of the contributions under section 255(a) that is attributable to the 
detailed personnel.''.
            (2) Exemption from sequestration.--Section 255(g)(1) of the 
        Balanced Budget and Emergency Deficit Control Act of 1985 (2 
        U.S.C. 905(g)(1)) is amended--
                    (A) in subparagraph (A), by inserting after the 
                item relating to ``payment to the foreign service 
                retirement and disability fund'' the following item: 
                ``Payment to the Public Health Service Commissioned 
                Corps Retirement Fund (75-0380-0-1-551);''; and
                    (B) in subparagraph (B), by inserting after the 
                item relating to the ``Pensions for former Presidents'' 
                the following item: ``Public Health Service 
                Commissioned Corps Retirement Fund (75-8274-0-7-
                602);''.
    (c) Transfer of Appropriations.--There shall be transferred on 
October 1, 2005, into the fund established under section 251 of the 
Public Health Service Act, as added by subsection (a), any obligated or 
unobligated balances of appropriations made to the Department of Health 
and Human Services that are currently available for benefits payable on 
account of retirement, disability, or death to commissioned officers of 
the Public Health Service and to their survivors pursuant to part A of 
title II of the Public Health Service Act, and amounts so transferred 
shall be part of the assets of the Fund.

SEC. 305. NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION COMMISSIONED 
              OFFICER CORPS RETIREMENT SYSTEM.

    (a) In General.--The National Oceanic and Atmospheric 
Administration Commissioned Officer Corps Act of 2002 (title II of 
Public Law 107-372) is amended by inserting after section 246 (33 
U.S.C. 3046) the following new section:
    ``Sec. 246A. (a) Establishment and Purpose of NOAA Commissioned 
Officer Corps Retirement Fund.--(1) There is established on the books 
of the Treasury a fund to be known as the National Oceanic and 
Atmospheric Administration Commissioned Officer Corps Retirement Fund 
(hereinafter in this section referred to as the `Fund'), which shall be 
administered by the Secretary. The Fund shall be used for the 
accumulation of funds in order to finance on an actuarially sound basis 
liabilities of the Department of Commerce under military retirement and 
survivor benefit programs for the commissioned officers corps.
    ``(2) The term `military retirement and survivor benefit program' 
means--
            ``(A) the provisions of this title and title 10, United 
        States Code, creating entitlement to, or determining, the 
        amount of retired pay;
            ``(B) the programs under the jurisdiction of the Department 
        of Defense providing annuities for survivors and members and 
        former members of the Armed Forces, including chapter 73 of 
        title 10, section 4 of Public Law 92-425, and section 5 of 
        Public Law 96-202, as made applicable to the commissioned 
        officer corps by section 261.
    ``(b) Assets of the Fund.--There shall be deposited into the Fund 
the following, which shall constitute the assets of the Fund:
            ``(1) Amounts paid into the Fund under subsection (e).
            ``(2) Any return on investment of the assets of the Fund.
            ``(3) Amounts transferred into the Fund pursuant to section 
        305(c) of the Budget Fraud Elimination Act of 2003.
    ``(c) Payments From the Fund.--There shall be paid from the Fund 
benefits payable on account of military retirement and survivor benefit 
programs to commissioned officers of the commissioned officer corps and 
their survivors.
    ``(d) Determination of Contributions to the Fund.--(1)(A) Not later 
than June 30, 2004, the Secretary shall determine the unfunded 
liability of the Fund attributable to service performed as of September 
30, 2003, which is `active service' for the purpose of this title. The 
Secretary shall establish an amortization schedule, including a series 
of annual installments commencing October 1, 2004, which provides for 
the liquidation of such liability by October 1, 2043.
    ``(B) The Secretary shall redetermine the unfunded liability of the 
Fund as of the close of the fiscal year, for each fiscal year beginning 
after September 30, 2003, through the fiscal year ending September 30, 
2038, and shall establish a new amortization schedule, including a 
series of annual installments commencing on September 30 of the 
subsequent fiscal year, which provides for the liquidation of such 
liability by October 1, 2043.
    ``(C) The Secretary shall redetermine the unfunded liability of the 
Fund as of the close of the fiscal year for each fiscal year beginning 
after September 30, 2038, and shall establish a new authorization 
schedule, including series of annual installments commencing on October 
1 of the second subsequent fiscal year, which provides for the 
liquidation of such liability over 5 years.
    ``(2) The Secretary shall determine each fiscal year, in sufficient 
time for inclusion in the budget request for the following fiscal year, 
the total amount of Department of Commerce contributions to be made to 
the Fund during that fiscal year under (e). The amount shall be the 
product of--
            ``(A) the current estimate of the value of the single level 
        percentage of basic pay to be determined under subsection (e) 
        at the time of the most recent actuarial valuation under 
        paragraph (3); and
            ``(B) the total amount of basic pay expected to be paid 
        during that fiscal year to commissioned officers of NOAA on 
        active duty.
    ``(3) Not less often then every four years (or by the fiscal year 
end before the effective date of any statutory change affecting 
benefits payable on account of retirement, disability, or death to 
commissioned officers or their survivors), the Secretary shall carry 
out an actuarial valuation of benefits payable on account of military 
retirement and survivor benefit programs to commissioned officers of 
the Administration and to their survivors. Each such actuarial 
valuation shall be signed by an enrolled Actuary and shall include a 
determination (using the aggregate entry-age normal cost method) of a 
single level percentage of basic pay for commissioned officers on 
active duty.
    ``(4) All determinations under this section shall be in accordance 
with generally accepted actuarial principles and practices, and, where 
appropriate, shall follow the general pattern of methods and 
assumptions approved by the Department of Defense Retirement Board of 
Actuaries.
    ``(5) The Secretary shall provide for the keeping of such records 
as are necessary for determining the actuarial status of the Fund.
    ``(e) Payments Into the Fund.--(1) From amounts appropriated to the 
National Oceanic Atmospheric Administration for salaries and expenses, 
the Secretary shall pay into the Fund at the end of each month the 
amount that is the product of--
            ``(A) the level percentage of basic pay determined using 
        all the methods and assumptions approved for the most recent 
        (as of the first day of the current fiscal year) actuarial 
        valuation under subsection (d) (except that any statutory 
        change affecting benefits payable on account of military 
        retirement and survivor benefit programs to commissioned 
        officers of the Administration and to their survivors that is 
        effective date after the date of that valuation and on or 
        before the first day of the current fiscal year shall be used 
        in such determination); and
            ``(B) the total amount of basic pay accrued for that month 
        by commissioned officers on active duty.
    ``(2)(A) At the beginning of each fiscal year, the Secretary shall 
determine the sum of--
            ``(i) the amount of the payment for that year under the 
        amortization of the original unfunded liability of the Fund;
            ``(ii) the amount (including any negative amount) for that 
        year under the most recent amortization schedule determined by 
        the Secretary for the amortization of any cumulative actuarial 
        gain or loss to the Fund, resulting from changes in benefits; 
        and
            ``(iii) the amount (including any negative amount) for that 
        year under the most recent amortization schedule determined by 
        the Secretary for the amortization or any cumulative actuarial 
        gain or loss to the Fund resulting from changes in actuarial 
        assumptions and from experience different from the assumed 
        since the last valuation.
The Secretary shall promptly certify the amount of the sum to the 
Secretary of the Treasury.
    ``(B) Upon receiving the certification pursuant to paragraph (1), 
the Secretary of the Treasury shall promptly pay into the Fund from the 
General Fund of the Treasury the amount so certified. Such payment 
shall be the contribution to the Fund for that fiscal year.
    ``(f) Investment of Assets of the Fund.--The Secretary may request 
the Secretary of the Treasury to invest such portion of the Fund as is 
not, in the judgment of the Secretary, required to meet the current 
needs of the Fund. Such investments shall be made by the Secretary of 
the Treasury in public debt securities with maturities suitable to the 
needs of the Fund, as determined by the Secretary, and bearing interest 
at rates determined by the Secretary of the Treasury, taking into 
consideration current market yields on outstanding marketable 
obligations of the United States of comparable maturities. The income 
of such investments shall be credited to and form a part of the Fund.
    ``(g) Implementation Year Exceptions.--(1) To avoid funding 
shortfalls in the first year should formal actuarial determinations not 
be available in time for budget preparation, the amounts used in the 
first year in subsection (e)(1)(A) shall be set equal to the estimate 
in subsection (d)(2)(A) if final determinations are not available. The 
original unfunded liability as determined in subsection (d)(1) shall 
include an adjustment to correct for this difference between the formal 
actuarial determinations and the estimates in subsection (d)(2)(A).''.
    (b) Exemption From Sequestration.--Section 255(g)(1)(B) of the 
Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 
905(g)(1)(B)) is amended by striking ``National Oceanic and Atmospheric 
Administration retirement (13-1450-0-1-306);'' and inserting ``National 
Oceanic and Atmospheric Administration Commissioned Officer Corps 
Retirement Fund;''.
    (c) Transfer of Appropriations.--There shall be transferred on 
October 1, 2005, into the fund established under section 246A(a) of the 
National Oceanic and Atmospheric Administration Commissioned Officer 
Corps Act of 2002 (title II of Public Law 107-372, as added by 
subsection (a)), any obligated and unobligated balance of 
appropriations made to the Department of Commerce that are available as 
of the date of the enactment of this Act for benefits payable on 
account of military retirement and survivor benefit programs to 
commissioned officers of the NOAA Commissioned Officer Corps and to 
their survivors, and amounts so transferred shall be part of the assets 
of the Fund, effective October 1, 2005.
    (d) Effective Date.--Subsection (c) (relating to payments from the 
Fund) and (e) (relating to payments into the Fund) of section 246A of 
the National Oceanic and Atmospheric Administration Commissioned 
Officer Corps Act of 2002 (title II of Public Law 107-372, as added by 
subsection (a)), shall take effect on October 1, 2005.

SEC. 306. COAST GUARD MILITARY RETIREMENT SYSTEM.

    (a) Accrual Funding for Coast Guard Retirement.--
            (1) In general.--Chapter 11 of title 14, United States 
        Code, is amended by adding at the end the following new 
        subchapter:

          ``SUBCHAPTER V--COAST GUARD MILITARY RETIREMENT FUND

``Sec. 441. Establishment and purpose of Fund; definitions
    ``(a) Establishment of Fund; Purpose.--There is established on the 
books of the Treasury a fund to be known as the Coast Guard Military 
Retirement Fund (hereinafter in this subchapter referred to as the 
`Fund'), which shall be administered by the Secretary. The Fund shall 
be used for the accumulations of funds in order to finance on an 
actuarially sound basis liabilities of the Coast Guard under military 
retirement and survivor benefit programs.
    ``(b) Military Retirement and Survivor Benefit Programs Defined.--
In this subchapter, the term `military retirement and survivor benefit 
programs' means--
            ``(1) the provisions of this title and title 10 creating 
        entitlement to, or determining the amount of, retired pay;
            ``(2) the programs providing annuities for survivors of 
        members and former members of the armed forces, including 
chapter 73 of title 10, section 4 of Public Law 92-425, and section 5 
of Public Law 96-402; and
            ``(3) the authority provided in section 1048(h) of title 
        10.
    ``(c) Secretary Defined.--In this subchapter, the term `Secretary' 
means the Secretary of Homeland Security when the Coast Guard is not 
operating as a service in the Navy and the Secretary of Defense when 
the Coast Guard is operating as a service in the Navy.
``Sec. 442. Assets of the Fund
    ``There shall be deposited into the Fund the following, which shall 
constitute the assets of the Fund:
            ``(1) Amounts paid into the Fund under section 445 of this 
        title.
            ``(2) Any return on investment of the assets of the Fund.
            ``(3) Amounts transferred into the Fund pursuant to section 
        306(d) of the Budget Fraud Elimination Act of 2003.
``Sec. 443. Payments from the Fund
    ``(a) In General.--There shall be paid from the Fund the following:
            ``(1) Retired pay payable to persons on the retired list of 
        the Coast Guard.
            ``(2) Retired pay payable under chapter 1223 of title 10 to 
        former members of the Coast Guard and the former United States 
        Lighthouse Service.
            ``(3) Benefits payable under programs that provide 
        annuities for survivors of members and former members of the 
        armed forces, including chapter 73 of title 10, section 4 of 
        Public Law 92-425, and section 5 of Public Law 96-402.
            ``(4) Amounts payable under section 1048(h) of title 10.
    ``(b) Availability of Assets of the Fund.--The assets of the Fund 
are hereby made available for payments under subsection (a).
``Sec. 444. Determination of contributions to the Fund
    ``(a) Initial Unfunded Liability.--(1) Not later than June 30, 
2004, the Secretary shall determine the unfunded liability of the Fund 
attributable to service performed as of September 30, 2003, which is 
`active service' for the purposes of section 212. The Secretary shall 
establish an amortization schedule, including a series of annual 
installments commencing October 1, 2004, which provides for the 
liquidation of such liability by October 1, 2043.
    ``(2) The Secretary shall redetermine the unfunded liability of the 
Fund as of the close of the fiscal year, for each beginning after 
September 30, 2003, through the fiscal year ending September 30, 2038, 
and shall establish a new amortization schedule, including a series of 
annual installments commencing on October 1 of the second subsequent 
fiscal year, which provides for the liquidation of such liability by 
October 1, 2043.
    ``(3) The Secretary shall redetermine the unfunded liability of the 
Fund as of the close of the fiscal year for each fiscal year beginning 
after September 30, 2038, and shall establish a new amortization 
schedule, including a series of annual installments commencing on 
October 1 of the second subsequent fiscal year, which provides for the 
liquidation of such liability over five years.
    ``(b) Annual Contributions for Current Services.--(1) The Secretary 
shall determine each fiscal year, in sufficient time for inclusion in 
the budget request for the following fiscal year, the total amount of 
Department of Homeland Security, or Department of Defense, 
contributions to be made to the Fund during that fiscal year under 
section 445(a) of this title. That amount shall be the sum of the 
following:
            ``(A) The product of--
                    ``(i) the current estimate of the value of the 
                single level percentage of basic pay to be determined 
                under subsection (c)(1)(A) at the time of the most 
                recent actuarial valuation under subsection (c); and
                    ``(ii) the total amount of basic pay expected to be 
                paid during that fiscal year to members of the Coast 
                Guard on active duty (other than active duty for 
                training).
            ``(B) The product of--
                    ``(i) the current estimate of the value of the 
                single level percentage of basic pay and of 
                compensation (paid pursuant to section 206 of title 37) 
                to be determined under subsection (c)(1)(B) at the time 
                of the most recent actuarial valuation under subsection 
                (c); and
                    ``(ii) the total amount of basic pay and 
                compensation (paid pursuant to section 206 of title 37) 
                expected to be paid during that fiscal year to members 
                of the Coast Guard Ready Reserve (other than members on 
                full-time Reserve duty other than for training) who are 
                not otherwise described in subparagraph (A)(ii).
    ``(2) The amount determined under paragraph (1) for any fiscal year 
is the amount needed to be appropriated to the Department of Homeland 
Security for that fiscal year for payments to be made to the Fund 
during that year under section 445(a) of this title. The President 
shall include not less than the full amount so determined in the budget 
transmitted to Congress for that fiscal year under section 1105 of 
title 31. The President may comment and make recommendations concerning 
any such amount.
    ``(c) Periodic Actuarial Valuations.--(1) Not less often than every 
four years (or before the effective date of any statutory change 
affecting benefits payable on account of retirement, disability, or 
death to members of the Coast Guard or their survivors), the Secretary 
shall carry out an actuarial valuation of the Coast Guard military 
retirement and survivor benefit programs. Each actuarial valuation of 
such programs shall be signed by an enrolled actuary and shall 
include--
            ``(A) a determination (using the aggregate entry-age normal 
        cost method) of a single level percentage of basic pay for 
        members of the Coast Guard on active duty (other than active 
        duty for training); and
            ``(B) a determination (using the aggregate entry-age normal 
        cost method) of single level percentage of basic pay and of 
        compensation (paid pursuant to section 206 of title 37) for 
        members of the Ready Reserve of the Coast Guard (other than 
        members on full-time Reserve duty other than for training) who 
        are not otherwise described in subparagraph (A).
    ``(2) Such single level percentages shall be used for the purposes 
of subsection (b) and section 445(a) of this title.
    ``(d) Use of Generally Accepted Actuarial Principles and 
Practices.--All determinations under this section shall be in 
accordance with generally accepted actuarial principles and practices 
and, where appropriate, shall follow the general pattern of methods and 
assumptions approved by the Department of Defense Retirement Board of 
Actuaries.
    ``(e) Records.--The Secretary shall provide for the keeping of such 
records as are necessary for determining the actuarial status of the 
Fund.
``Sec. 445. Payments into the Fund
    ``(a) Monthly Accrual Charge for Current Services.--From amounts 
appropriated to the Coast Guard for salaries and expenses, the 
Secretary shall pay into the Fund at the end of each month as the 
Department of Homeland Security, or Department of Defense, contribution 
to the Fund for that month the amount that is the sum of the following:
            ``(1) The product of--
                    ``(A) the level percentage of basic pay determined 
                using all the methods and assumptions approved for the 
                most recent (as of the first day of the current fiscal 
                year) actuarial valuation under section 444(c)(1)(A) of 
                this title (except that any statutory change in the 
                military retirement and survivor benefit systems that 
                is effective after the date of that valuation and on or 
                before the first day of the current fiscal year shall 
                be used in such determination); and
                    ``(B) the total amount of basic pay accrued for 
                that month by members of the Coast Guard on active duty 
                (other than active duty for training).
            ``(2) The product of--
                    ``(A) the level percentage of basic pay and 
                compensation (accrued pursuant to section 206 of title 
                37) determined using all the methods and assumptions 
                approved for the most recent (as of the first day of 
                the current fiscal year) actuarial valuation under 
                section 444(c)(1)(B) of this title (except that any 
                statutory change in the military retirement and 
                survivor benefit systems that is effective after the 
                date of that valuation and on or before the first day 
                of the current fiscal year shall be used in such 
                determination); and
                    ``(B) the total amount of basic pay and of 
                compensation (paid pursuant to section 206 of title 37) 
                accrued for that month by members of the Ready Reserve 
                (other than members of full-time Reserve duty other 
                than for training) who are not otherwise described in 
                paragraph (1)(B).
    ``(b) Annual Payment for Unfunded Liabilities.--(1) At the 
beginning of each fiscal year, beginning on October 1, 2004, the 
Secretary shall certify to the Secretary of the Treasury the amount of 
the first installment under the most recent amortization schedule 
established under section 254(a). The Secretary of the Treasury shall 
promptly pay into the Fund from the General Fund of the Treasury the 
amount so certified. Such payment shall be the contribution to the Fund 
for that fiscal year.
``Sec. 446. Investment of assets of the Fund
    ``The Secretary may request the Secretary of the Treasury to invest 
such portion of the Fund as is not, in the judgment of the Secretary, 
required to meet the current needs of the Fund. Such investments shall 
be made by the Secretary of the Treasury in public debt securities with 
maturities suitable to the needs of the Fund, as determined by the 
Secretary, and bearing interest at rates determined by the Secretary of 
the Treasury, taking into consideration current market yields on 
outstanding marketable obligations of the United States of comparable 
maturities. The income on such investments shall be credited to and 
form a part of the Fund.''.
            (2) Technical amendments.--Such chapter is further 
        amended--
                    (A) by amending the center heading after the table 
                of sections to read as follows:

                      ``SUBCHAPTER I--OFFICERS'';

                    (B) by amending the center heading after section 
                336 to read as follows:

                  ``SUBCHAPTER II--ENLISTED MEMBERS'';

                    (C) by amending the center heading after section 
                373 to read as follows:

                ``SUBCHAPTER III--GENERAL PROVISIONS'';

            and
                    (D) by amending the center heading after section 
                425 to read as follows:

                 ``SUBCHAPTER IV--SPECIAL PROVISIONS''.

            (3) Clerical amendments.--The table of sections at the 
        beginning of such chapter is amended--
                    (A) by striking ``officers'' at the beginning of 
                the table and inserting ``subchapter i--officers'';
                    (B) by striking ``enlisted members'' after the item 
                relating to section 336 and inserting ``subchapter ii--
                enlisted members'';
                    (C) by striking ``general provisions'' after the 
                item relating to section 373 and inserting ``subchapter 
                iii--general provisions'';
                    (D) by striking ``special provisions'' after the 
                item relating to section 425 and inserting ``subchapter 
                iv--special provisions''; and
                    (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.''.
    (b) Implementation Year Exceptions.--To avoid funding shortfalls in 
the first year of implementation of subchapter V of chapter 11 of title 
14, United States Code, as added by subsection (a), if formal actuarial 
determinations are not available in time for budget preparation, the 
amounts used in the first year under sections 445(a)(1)(A) and 
445(a)(2)(A) of such title shall be set equal to those estimates in 
sections 444(b)(1)(A)(i) and 444(b)(1)(B)(i), respectively, of such 
title if final determinations are not available. The original unfunded 
liability, as defined in section 444(a) of such title, shall include an 
adjustment to correct for this difference between the formal actuarial 
determinations and the estimates in sections 444(b)(1)(A)(i) and 
444(b)(1)(B)(i) of such title.
    (c) Conforming Amendment.--Subparagraph (B) of section 255(g)(1) of 
the Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 
905(g)(1)) is amended by striking ``Retired Pay, Coast Guard (69-0241-
0-1-403)'' and inserting ``Coast Guard Military Retirement Fund (69-
0241-01-403)''.
    (d) Transfer of Existing Balances.--
            (1) Transfer.--There shall be transferred into the Fund on 
        October 1, 2004, any obligated and unobligated balances of 
        appropriations made to the Department of Homeland Security that 
        are currently available for retired pay, and amounts so 
        transferred shall be part of the assets of the Fund.
            (2) Fund defined.--For purposes of paragraph (1), the term 
        ``Fund'' means the Coast Guard Military Retirement Fund 
        established under section 441 of title 14, United States Code, 
        as added by subsection (a).
    (e) Effective Date.--Sections 443 (relating to payments from the 
Fund) and 445 (relating to payments into the Fund) of title 14, United 
States Code, as added by subsection (a), shall take effect on October 
1, 2004.

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

SEC. 311. FEDERAL EMPLOYEES HEALTH BENEFITS FUND.

    (a) Section 8906 of title 5, United States Code, is amended--
            (1) by redesignating subsection (c) as subsection (c)(1) 
        and by adding at the end the following new paragraphs:
    ``(2) In addition to Government contributions required by 
subsection (b) and paragraph (1), each employing agency shall 
contribute amounts as determined by the Office to be necessary to 
prefund the accruing actuarial cost of post-retirement health benefits 
for each of the agency's current employees who are eligible for 
Government contributions under this section. Amounts under this 
paragraph shall be paid by the employing agency separate from other 
contributions under this section, from the appropriations or fund used 
for payment of the salary of the employee, on a schedule to be 
determined by the Office.
    ``(3) Paragraph (2) shall not apply to the United States Postal 
Service or the government of the District of Columbia.''; and
            (2) by amending subsection (g)(1) to read as follows:
    ``(g)(1) Except as provided in paragraphs (2) and (3), all 
Government contributions authorized by this section for health benefits 
for an annuitant shall be paid from the Employees Health Benefits Fund 
to the extent that funds are available in accordance with section 
8909(h)(6) and, if necessary, from annual appropriations which are 
authorized to be made for that purpose and which may be made available 
until expended.''.
    (b) Section 8909 of title 5, United States Code, is amended by 
adding at the end the following new subsection:
    ``(h)(1) Not later than June 30, 2005, the Office shall determine 
the existing liability of the Fund for post-retirement health benefits, 
excluding the liability of the United States Postal Service for service 
under section 8906(g)(2), under this chapter as of September 30, 2005. 
The Office shall establish an amortization schedule, including a series 
of annual installments commencing September 30, 2005, which provides 
for the liquidation of such liability by September 30, 2042.
    ``(2) At the close of each fiscal year, for fiscal years beginning 
after September 30, 2004, the Office shall determine the supplemental 
liability of the Fund for post-retirement health benefits, excluding 
the liability attributable to the United States Postal Service for 
service subject to section 8906(g)(2), and shall establish an 
amortization schedule, including a series of annual installments 
commencing on September 30 of the subsequent fiscal year, which 
provides for liquidation of such supplemental liability over 30 years.
    ``(3) Amortization schedules established under this paragraph shall 
be set in accordance with generally accepted actuarial practices and 
principles.
    ``(4) At the end of each fiscal year on and after September 30, 
2005, the Office shall notify the Secretary of the Treasury of the 
amounts of the next installments under the most recent amortization 
schedules established under paragraphs (1) and (2). Before closing the 
accounts for the fiscal year, the Secretary shall credit the sum of 
these amounts (including in that sum any negative amount for the 
amortization of the supplemental liability) to the Fund, as a 
Government contribution, out of any  money in the Treasury of the 
United States not otherwise appropriated.
    ``(5) For the purpose of carrying out paragraphs (1) and (2), the 
Office shall perform or arrange for actuarial determinations and 
valuations and shall prescribe retention of such records as it 
considers necessary for making periodic actuarial valuations of the 
Fund.
    ``(6) Notwithstanding subsection (b), the amounts deposited into 
the Fund pursuant to this subsection and section 8906(c)(2) to prefund 
post-retirement health benefits costs shall be segregated within the 
Fund so that such amounts, as well as earnings and proceeds under 
subsection (c) attributable to them, may be used exclusively for the 
purpose of paying Government contributions for post-retirement health 
benefits costs. When such amounts are used in combination with amounts 
withheld from annuitants to pay for health benefits, a portion of the 
contributions shall then be set aside in the Fund as described in 
subsection (b).
    ``(7) Under this subsection, `supplemental liability' means--
            ``(A) the actuarial present value for future post-
        retirement health benefits that are the liability of the Fund, 
        less
            ``(B) the sum of--
                    ``(i) the actuarial present value of all future 
                contributions by agencies and annuitants to the Fund 
                toward those benefits pursuant to section 8906;
                    ``(ii) the present value of all scheduled 
                amortization payments to the Fund pursuant to 
                paragraphs (1) and (2);
                    ``(iii) the Fund balance as of the date the 
                supplemental liability is determined, to the extent 
                that such balance is attributable to post-retirement 
                benefits; and
                    ``(iv) any other appropriate amount, as determined 
                by the Office in accordance with generally accepted 
                actuarial practices and principles.''.

SEC. 312. FUNDING UNIFORMED SERVICES HEALTH BENEFITS FOR ALL RETIREES.

    Title 10, United States Code, is amended--
            (1) in the title of chapter 56, by striking ``DEPARTMENT OF 
        DEFENSE MEDICARE-ELIGIBLE'' and inserting ``UNIFORMED 
        SERVICES'';
            (2) in section 1111--
                    (A) in subsection (a)--
                            (i) by striking ``Department of Defense 
                        Medicare-Eligible'' and inserting ``Uniformed 
                        Services'';
                            (ii) by striking ``Department of Defense 
                        under''; and
                            (iii) by striking ``for medicare-eligible 
                        beneficiaries'';
                    (B) in subsection (c)--
                            (i) by striking ``The Secretary of Defense 
                        may'' and inserting ``The Secretary of Defense 
                        shall'';
                            (ii) by striking ``with any other'' and 
                        inserting ``with each'';
                            (iii) by striking ``Any such agreement'' 
                        and inserting ``Such agreements''; and
                            (iv) by striking ``administering Secretary 
                        may'' and inserting ``administrative Secretary 
                        shall'';
            (3) in section 1113--
                    (A) in subsection (a)--
                            (i) by striking ``and are medicare 
                        eligible'';
                            (ii) by striking ``who are medicare 
                        eligible''; and
                            (iii) by adding at the end the following 
                        new sentence: ``For the fiscal year starting 
                        October 1, 2003, only, the payments will be 
                        solely for the costs of members or former 
                        members of a uniformed service who are entitled 
                        to retired or retainer pay and are medicare-
                        eligible, and eligible dependents or survivors 
                        who are medicare-eligible.'';
                    (B) in subsection (c)(1), by striking ``who are 
                medicare-eligible'';
                    (C) in subsection (d), by striking ``who are 
                medicare-eligible''; and
                    (D) in subsection (f), by striking ``If'' and 
                inserting ``When'';
            (4) in section 1114, in subsection (a)(1), by striking 
        ``Department of Defense Medicare-Eligible'' and inserting 
        ``Uniformed Services'';
            (5) in section 1115--
                    (A) in subsection (b)(2), by striking ``The amount 
                determined under paragraph (1) for any fiscal year is 
                the amount needed to be appropriated to the Department 
                of Defense (or to the other executive department having 
                jurisdiction over the participating uniformed 
                service)'' and inserting ``The amount determined under 
                paragraph (1), or the amount determined under section 
                1111(c) for a participating uniformed service, for any 
                fiscal year, is the amount needed to be appropriated to 
                the Department of Defense (or to any other executive 
                department having jurisdiction over a participating 
                uniformed service)'';
                    (B) in subsection (c)(2), by striking ``for 
                medicare eligible beneficiaries''; and
                    (C) by adding at the end the following new 
                subsection:
    ``(f) For the fiscal year starting October 1, 2003, only, the 
amounts in this section shall be based solely on the costs of medicare-
eligible benefits of beneficiaries and the costs for their eligible 
dependents or survivors who are medicare-eligible, and shall be 
recalculated thereafter to reflect the cost of beneficiaries defined in 
section 1111.''; and
            (6) in section 1116--
                    (A) in subsection (a)(1)(A), by striking ``for 
                medicare-eligible beneficiaries'';
                    (B) in subsection (a)(2)(A), by striking ``for 
                medicare-eligible beneficiaries''; and
                    (C) in subsection (c), by striking ``subsection (a) 
                shall be paid from funds available for the health care 
                programs'' and inserting ``subsection (a) and section 
                1111(c) shall be paid from funds available for the pay 
                of members of the participating uniformed services 
                under the jurisdiction of the respective administering 
                secretaries''.

SEC. 313. EFFECTIVE DATE.

    Except as otherwise provided, this title shall take effect upon 
enactment with respect to fiscal years beginning after 2004.
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