IB 

Union Calendar No. 261 

112TH CONGRESS 

2D SESSION H. R. 3581 

[Report No. 112–380, Part I] 

To amend the Balanced Budget and Emergency Deficit Control Act of 1985 

to increase transparency in Federal budgeting, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 7, 2011 

Mr. GARRETT (for himself, Mr. RYAN of Wisconsin, Mr. HENSARLING, Mr. 

PRICE of Georgia, Mr. HUELSKAMP, Mr. CHAFFETZ, and Mr. 

STUTZMAN) introduced the following bill; which was referred to the Committee on the Budget, and in addition to the Committees on Oversight 

and Government Reform and Ways and Means, 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 

JANUARY 31, 2012 

Additional sponsors: Mr. DUNCAN of South Carolina, Mr. RIBBLE, Mr. 

KINZINGER of Illinois, Mr. ROKITA, Mr. FLORES, Mr. WESTMORELAND, 

Mr. SCOTT of South Carolina, Mr. AMASH, Mr. WALSH of Illinois, Mr. 

MULVANEY, Mr. MCCLINTOCK, Mr. WOODALL, and Mr. KLINE

JANUARY 31, 2012 

Reported from the Committee on the Budget with an amendment 

[Strike out all after the enacting clause and insert the part printed in italic] 

JANUARY 31, 2012 

The Committees on Oversight and Government Reform and Ways and Means 

discharged; committed to the Committee of the Whole House on the State 

of the Union and ordered to be printed 

[For text of introduced bill, see copy of bill as introduced on December 7, 2011] 


srobinson on DSK4SPTVN1PROD with BILLS
2 

•HR 3581 RH

A BILL 

To amend the Balanced Budget and Emergency Deficit Control Act of 1985 to increase transparency in Federal 

budgeting, and for other purposes. 


srobinson on DSK4SPTVN1PROD with BILLS
3 

•HR 3581 RH

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Budget and Accounting 

5 Transparency Act of 2012’’. 

6 TITLE I—FAIR VALUE ESTIMATES 

7 SEC. 101. CREDIT REFORM. 

8 (a) IN GENERAL.—Title V of the Congressional Budget 

9 Act of 1974 is amended to read as follows: 

10 ‘‘TITLE V—FAIR VALUE 

11 ‘‘SEC. 501. PURPOSES. 

12 ‘‘The purposes of this title are to— 

13 ‘‘(1) measure more accurately the costs of Fed14 eral credit programs by accounting for them on a fair 

15 value basis; 

16 ‘‘(2) place the cost of credit programs on a budg17 etary basis equivalent to other Federal spending; 

18 ‘‘(3) encourage the delivery of benefits in the 

19 form most appropriate to the needs of beneficiaries; 

20 and 

21 ‘‘(4) improve the allocation of resources among 

22 Federal programs. 

23 ‘‘SEC. 502. DEFINITIONS. 

24 ‘‘For purposes of this title: 


srobinson on DSK4SPTVN1PROD with BILLS
4 

•HR 3581 RH

1 ‘‘(1) The term ‘direct loan’ means a disburse2 ment of funds by the Government to a non-Federal 

3 borrower under a contract that requires the repay4 ment of such funds with or without interest. The term 

5 includes the purchase of, or participation in, a loan 

6 made by another lender and financing arrangements 

7 that defer payment for more than 90 days, including 

8 the sale of a Government asset on credit terms. The 

9 term does not include the acquisition of a federally 

10 guaranteed loan in satisfaction of default claims or 

11 the price support loans of the Commodity Credit Cor12 poration. 

13 ‘‘(2) The term ‘direct loan obligation’ means a 

14 binding agreement by a Federal agency to make a di15 rect loan when specified conditions are fulfilled by the 

16 borrower. 

17 ‘‘(3) The term ‘loan guarantee’ means any guar18 antee, insurance, or other pledge with respect to the 

19 payment of all or a part of the principal or interest 

20 on any debt obligation of a non-Federal borrower to 

21 a non-Federal lender, but does not include the insur22 ance of deposits, shares, or other withdrawable ac23 counts in financial institutions. 

24 ‘‘(4) The term ‘loan guarantee commitment’ 

25 means a binding agreement by a Federal agency to 


srobinson on DSK4SPTVN1PROD with BILLS
5 

•HR 3581 RH

1 make a loan guarantee when specified conditions are 

2 fulfilled by the borrower, the lender, or any other 

3 party to the guarantee agreement. 

4 ‘‘(5)(A) The term ‘cost’ means the sum of the 

5 Treasury discounting component and the risk compo6 nent of a direct loan or loan guarantee, or a modi7 fication thereof. 

8 ‘‘(B) The Treasury discounting component shall 

9 be the estimated long-term cost to the Government of 

10 a direct loan or loan guarantee, or modification 

11 thereof, calculated on a net present value basis, ex12 cluding administrative costs and any incidental ef13 fects on governmental receipts or outlays. 

14 ‘‘(C) The risk component shall be an amount 

15 equal to the difference between— 

16 ‘‘(i) the estimated long-term cost to the Gov17 ernment of a direct loan or loan guarantee, or 

18 modification thereof, estimated on a fair value 

19 basis, applying the guidelines set forth by the Fi20 nancial Accounting Standards Board in Finan21 cial Accounting Standards #157, or a successor 

22 thereto, excluding administrative costs and any 

23 incidental effects on governmental receipts or 

24 outlays; and 


srobinson on DSK4SPTVN1PROD with BILLS
6 

•HR 3581 RH

1 ‘‘(ii) the Treasury discounting component of 

2 such direct loan or loan guarantee, or modifica3 tion thereof. 

4 ‘‘(D) The Treasury discounting component of a 

5 direct loan shall be the net present value, at the time 

6 when the direct loan is disbursed, of the following es7 timated cash flows: 

8 ‘‘(i) Loan disbursements. 

9 ‘‘(ii) Repayments of principal. 

10 ‘‘(iii) Essential preservation expenses, pay11 ments of interest and other payments by or to 

12 the Government over the life of the loan after ad13 justing for estimated defaults, prepayments, fees, 

14 penalties, and other recoveries, including the ef15 fects of changes in loan terms resulting from the 

16 exercise by the borrower of an option included in 

17 the loan contract. 

18 ‘‘(E) The Treasury discounting component of a 

19 loan guarantee shall be the net present value, at the 

20 time when the guaranteed loan is disbursed, of the fol21 lowing estimated cash flows: 

22 ‘‘(i) Payments by the Government to cover 

23 defaults and delinquencies, interest subsidies, es24 sential preservation expenses, or other payments. 


srobinson on DSK4SPTVN1PROD with BILLS
7 

•HR 3581 RH

1 ‘‘(ii) Payments to the Government includ2 ing origination and other fees, penalties, and re3 coveries, including the effects of changes in loan 

4 terms resulting from the exercise by the guaran5 teed lender of an option included in the loan 

6 guarantee contract, or by the borrower of an op7 tion included in the guaranteed loan contract. 

8 ‘‘(F) The cost of a modification is the sum of— 

9 ‘‘(i) the difference between the current esti10 mate of the Treasury discounting component of 

11 the remaining cash flows under the terms of a 

12 direct loan or loan guarantee and the current es13 timate of the Treasury discounting component of 

14 the remaining cash flows under the terms of the 

15 contract, as modified; and 

16 ‘‘(ii) the difference between the current esti17 mate of the risk component of the remaining 

18 cash flows under the terms of a direct loan or 

19 loan guarantee and the current estimate of the 

20 risk component of the remaining cash flows 

21 under the terms of the contract as modified. 

22 ‘‘(G) In estimating Treasury discounting compo23 nents, the discount rate shall be the average interest 

24 rate on marketable Treasury securities of similar duVerDate Mar 15 2010 23:31 Jan 31, 2012 Jkt 019200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6203 E:\BILLS\H3581.RH H3581

srobinson on DSK4SPTVN1PROD with BILLS
8 

•HR 3581 RH

1 ration to the cash flows of the direct loan or loan 

2 guarantee for which the estimate is being made. 

3 ‘‘(H) When funds are obligated for a direct loan 

4 or loan guarantee, the estimated cost shall be based on 

5 the current assumptions, adjusted to incorporate the 

6 terms of the loan contract, for the fiscal year in which 

7 the funds are obligated. 

8 ‘‘(6) The term ‘program account’ means the 

9 budget account into which an appropriation to cover 

10 the cost of a direct loan or loan guarantee program 

11 is made and from which such cost is disbursed to the 

12 financing account. 

13 ‘‘(7) The term ‘financing account’ means the 

14 nonbudget account or accounts associated with each 

15 program account which holds balances, receives the 

16 cost payment from the program account, and also in17 cludes all other cash flows to and from the Govern18 ment resulting from direct loan obligations or loan 

19 guarantee commitments made on or after October 1, 

20 1991. 

21 ‘‘(8) The term ‘liquidating account’ means the 

22 budget account that includes all cash flows to and 

23 from the Government resulting from direct loan obli24 gations or loan guarantee commitments made prior to 


srobinson on DSK4SPTVN1PROD with BILLS
9 

•HR 3581 RH

1 October 1, 1991. These accounts shall be shown in the 

2 budget on a cash basis. 

3 ‘‘(9) The term ‘modification’ means any Govern4 ment action that alters the estimated cost of an out5 standing direct loan (or direct loan obligation) or an 

6 outstanding loan guarantee (or loan guarantee com7 mitment) from the current estimate of cash flows. 

8 This includes the sale of loan assets, with or without 

9 recourse, and the purchase of guaranteed loans (or di10 rect loan obligations) or loan guarantees (or loan 

11 guarantee commitments) such as a change in collec12 tion procedures. 

13 ‘‘(10) The term ‘current’ has the same meaning 

14 as in section 250(c)(9) of the Balanced Budget and 

15 Emergency Deficit Control Act of 1985. 

16 ‘‘(11) The term ‘Director’ means the Director of 

17 the Office of Management and Budget. 

18 ‘‘(12) The term ‘administrative costs’ means 

19 costs related to program management activities, but 

20 does not include essential preservation expenses. 

21 ‘‘(13) The term ‘essential preservation expenses’ 

22 means servicing and other costs that are essential to 

23 preserve the value of loan assets or collateral. 


srobinson on DSK4SPTVN1PROD with BILLS
10 

•HR 3581 RH

1 ‘‘SEC. 503. OMB AND CBO ANALYSIS, COORDINATION, AND 

2 REVIEW. 

3 ‘‘(a) IN GENERAL.—For the executive branch, the Di4 rector shall be responsible for coordinating the estimates re5 quired by this title. The Director shall consult with the 

6 agencies that administer direct loan or loan guarantee pro7 grams. 

8 ‘‘(b) DELEGATION.—The Director may delegate to 

9 agencies authority to make estimates of costs. The delegation 

10 of authority shall be based upon written guidelines, regula11 tions, or criteria consistent with the definitions in this title. 

12 ‘‘(c) COORDINATION WITH THE CONGRESSIONAL

13 BUDGET OFFICE.—In developing estimation guidelines, 

14 regulations, or criteria to be used by Federal agencies, the 

15 Director shall consult with the Director of the Congressional 

16 Budget Office. 

17 ‘‘(d) IMPROVING COST ESTIMATES.—The Director and 

18 the Director of the Congressional Budget Office shall coordi19 nate the development of more accurate data on historical 

20 performance and prospective risk of direct loan and loan 

21 guarantee programs. They shall annually review the per22 formance of outstanding direct loans and loan guarantees 

23 to improve estimates of costs. The Office of Management and 

24 Budget and the Congressional Budget Office shall have ac25 cess to all agency data that may facilitate the development 

26 and improvement of estimates of costs. 


srobinson on DSK4SPTVN1PROD with BILLS
11 

•HR 3581 RH

1 ‘‘(e) HISTORICAL CREDIT PROGRAMS COSTS.—The Di2 rector shall review, to the extent possible, historical data 

3 and develop the best possible estimates of adjustments that 

4 would convert aggregate historical budget data to credit re5 form accounting. 

6 ‘‘SEC. 504. BUDGETARY TREATMENT. 

7 ‘‘(a) PRESIDENT’S BUDGET.—Beginning with fiscal 

8 year 1992, the President’s budget shall reflect the Treasury 

9 discounting component of direct loan and loan guarantee 

10 programs. Beginning with fiscal year 2015, the President’s 

11 budget shall reflect the costs of direct loan and loan guar12 antee programs. The budget shall also include the planned 

13 level of new direct loan obligations or loan guarantee com14 mitments associated with each appropriations request. 

15 ‘‘(b) APPROPRIATIONS REQUIRED.—Notwithstanding 

16 any other provision of law, new direct loan obligations may 

17 be incurred and new loan guarantee commitments may be 

18 made for fiscal year 1992 and thereafter only to the extent 

19 that— 

20 ‘‘(1) new budget authority to cover their costs is 

21 provided in advance in an appropriation Act; 

22 ‘‘(2) a limitation on the use of funds otherwise 

23 available for the cost of a direct loan or loan guar24 antee program has been provided in advance in an 

25 appropriation Act; or 


srobinson on DSK4SPTVN1PROD with BILLS
12 

•HR 3581 RH

1 ‘‘(3) authority is otherwise provided in appro2 priation Acts. 

3 ‘‘(c) EXEMPTION FOR DIRECT SPENDING PRO4 GRAMS.—Subsections (b) and (e) shall not apply to— 

5 ‘‘(1) any direct loan or loan guarantee program 

6 that constitutes an entitlement (such as the guaran7 teed student loan program or the veteran’s home loan 

8 guaranty program); 

9 ‘‘(2) the credit programs of the Commodity Cred10 it Corporation existing on the date of enactment of 

11 this title; or 

12 ‘‘(3) any direct loan (or direct loan obligation) 

13 or loan guarantee (or loan guarantee commitment) 

14 made by the Federal National Mortgage Association 

15 or the Federal Home Loan Mortgage Corporation. 

16 ‘‘(d) BUDGET ACCOUNTING.— 

17 ‘‘(1) The authority to incur new direct loan obli18 gations, make new loan guarantee commitments, or 

19 modify outstanding direct loans (or direct loan obli20 gations) or loan guarantees (or loan guarantee com21 mitments) shall constitute new budget authority in an 

22 amount equal to the cost of the direct loan or loan 

23 guarantee in the fiscal year in which definite author24 ity becomes available or indefinite authority is used. 

25 Such budget authority shall constitute an obligation 


srobinson on DSK4SPTVN1PROD with BILLS
13 

•HR 3581 RH

1 of the program account to pay to the financing ac2 count. 

3 ‘‘(2) The outlays resulting from new budget au4 thority for the cost of direct loans or loan guarantees 

5 described in paragraph (1) shall be paid from the 

6 program account into the financing account and re7 corded in the fiscal year in which the direct loan or 

8 the guaranteed loan is disbursed or its costs altered. 

9 ‘‘(3) All collections and payments of the financ10 ing accounts shall be a means of financing. 

11 ‘‘(e) MODIFICATIONS.—An outstanding direct loan (or 

12 direct loan obligation) or loan guarantee (or loan guarantee 

13 commitment) shall not be modified in a manner that in14 creases its costs unless budget authority for the additional 

15 cost has been provided in advance in an appropriation Act. 

16 ‘‘(f) REESTIMATES.—When the estimated cost for a 

17 group of direct loans or loan guarantees for a given pro18 gram made in a single fiscal year is re-estimated in a subse19 quent year, the difference between the reestimated cost and 

20 the previous cost estimate shall be displayed as a distinct 

21 and separately identified subaccount in the program ac22 count as a change in program costs and a change in net 

23 interest. There is hereby provided permanent indefinite au24 thority for these re-estimates. 


srobinson on DSK4SPTVN1PROD with BILLS
14 

•HR 3581 RH

1 ‘‘(g) ADMINISTRATIVE EXPENSES.—All funding for an 

2 agency’s administrative costs associated with a direct loan 

3 or loan guarantee program shall be displayed as distinct 

4 and separately identified subaccounts within the same 

5 budget account as the program’s cost. 

6 ‘‘SEC. 505. AUTHORIZATIONS. 

7 ‘‘(a) AUTHORIZATION FOR FINANCING ACCOUNTS.—In 

8 order to implement the accounting required by this title, 

9 the President is authorized to establish such non-budgetary 

10 accounts as may be appropriate. 

11 ‘‘(b) TREASURY TRANSACTIONS WITH THE FINANCING

12 ACCOUNTS.— 

13 ‘‘(1) IN GENERAL.—The Secretary of the Treas14 ury shall borrow from, receive from, lend to, or pay 

15 to the financing accounts such amounts as may be 

16 appropriate. The Secretary of the Treasury may pre17 scribe forms and denominations, maturities, and 

18 terms and conditions for the transactions described in 

19 the preceding sentence, except that the rate of interest 

20 charged by the Secretary on lending to financing ac21 counts (including amounts treated as lending to fi22 nancing accounts by the Federal Financing Bank 

23 (hereinafter in this subsection referred to as the 

24 ‘Bank’) pursuant to section 405(b)) and the rate of 

25 interest paid to financing accounts on uninvested balVerDate Mar 15 2010 23:31 Jan 31, 2012 Jkt 019200 PO 00000 Frm 00014 Fmt 6652 Sfmt 6203 E:\BILLS\H3581.RH H3581

srobinson on DSK4SPTVN1PROD with BILLS
15 

•HR 3581 RH

1 ances in financing accounts shall be the same as the 

2 rate determined pursuant to section 502(5)(G). 

3 ‘‘(2) LOANS.—For guaranteed loans financed by 

4 the Bank and treated as direct loans by a Federal 

5 agency pursuant to section 406(b)(1), any fee or in6 terest surcharge (the amount by which the interest 

7 rate charged exceeds the rate determined pursuant to 

8 section 502(5)(G) that the Bank charges to a private 

9 borrower pursuant to section 6(c) of the Federal Fi10 nancing Bank Act of 1973 shall be considered a cash 

11 flow to the Government for the purposes of deter12 mining the cost of the direct loan pursuant to section 

13 502(5). All such amounts shall be credited to the ap14 propriate financing account. 

15 ‘‘(3) REIMBURSEMENT.—The Bank is authorized 

16 to require reimbursement from a Federal agency to 

17 cover the administrative expenses of the Bank that are 

18 attributable to the direct loans financed for that agen19 cy. All such payments by an agency shall be consid20 ered administrative expenses subject to section 504(g). 

21 This subsection shall apply to transactions related to 

22 direct loan obligations or loan guarantee commit23 ments made on or after October 1, 1991. 

24 ‘‘(4) AUTHORITY.—The authorities provided in 

25 this subsection shall not be construed to supersede or 


srobinson on DSK4SPTVN1PROD with BILLS
16 

•HR 3581 RH

1 override the authority of the head of a Federal agency 

2 to administer and operate a direct loan or loan guar3 antee program. 

4 ‘‘(5) TITLE 31.—All of the transactions provided 

5 in the subsection shall be subject to the provisions of 

6 subchapter II of chapter 15 of title 31, United States 

7 Code. 

8 ‘‘(6) TREATMENT OF CASH BALANCES.—Cash 

9 balances of the financing accounts in excess of current 

10 requirements shall be maintained in a form of 

11 uninvested funds and the Secretary of the Treasury 

12 shall pay interest on these funds. The Secretary of the 

13 Treasury shall charge (or pay if the amount is nega14 tive) financing accounts an amount equal to the risk 

15 component for a direct loan or loan guarantee, or 

16 modification thereof. Such amount received by the 

17 Secretary of the Treasury shall be a means of financ18 ing and shall not be considered a cash flow of the 

19 Government for the purposes of section 502(5). 

20 ‘‘(c) AUTHORIZATION FOR LIQUIDATING ACCOUNTS.— 

21 (1) Amounts in liquidating accounts shall be available only 

22 for payments resulting from direct loan obligations or loan 

23 guarantee commitments made prior to October 1, 1991, 

24 for— 


srobinson on DSK4SPTVN1PROD with BILLS
17 

•HR 3581 RH

1 ‘‘(A) interest payments and principal repay2 ments to the Treasury or the Federal Financing Bank 

3 for amounts borrowed; 

4 ‘‘(B) disbursements of loans; 

5 ‘‘(C) default and other guarantee claim pay6 ments; 

7 ‘‘(D) interest supplement payments; 

8 ‘‘(E) payments for the costs of foreclosing, man9 aging, and selling collateral that are capitalized or 

10 routinely deducted from the proceeds of sales; 

11 ‘‘(F) payments to financing accounts when re12 quired for modifications; 

13 ‘‘(G) administrative costs and essential preserva14 tion expenses, if— 

15 ‘‘(i) amounts credited to the liquidating ac16 count would have been available for administra17 tive costs and essential preservation expenses 

18 under a provision of law in effect prior to Octo19 ber 1, 1991; and 

20 ‘‘(ii) no direct loan obligation or loan guar21 antee commitment has been made, or any modi22 fication of a direct loan or loan guarantee has 

23 been made, since September 30, 1991; or 


srobinson on DSK4SPTVN1PROD with BILLS
18 

•HR 3581 RH

1 ‘‘(H) such other payments as are necessary for 

2 the liquidation of such direct loan obligations and 

3 loan guarantee commitments. 

4 ‘‘(2) Amounts credited to liquidating accounts in any 

5 year shall be available only for payments required in that 

6 year. Any unobligated balances in liquidating accounts at 

7 the end of a fiscal year shall be transferred to miscellaneous 

8 receipts as soon as practicable after the end of the fiscal 

9 year. 

10 ‘‘(3) If funds in liquidating accounts are insufficient 

11 to satisfy obligations and commitments of such accounts, 

12 there is hereby provided permanent, indefinite authority to 

13 make any payments required to be made on such obligations 

14 and commitments. 

15 ‘‘(d) REINSURANCE.—Nothing in this title shall be 

16 construed as authorizing or requiring the purchase of insur17 ance or reinsurance on a direct loan or loan guarantee from 

18 private insurers. If any such reinsurance for a direct loan 

19 or loan guarantee is authorized, the cost of such insurance 

20 and any recoveries to the Government shall be included in 

21 the calculation of the cost. 

22 ‘‘(e) ELIGIBILITY AND ASSISTANCE.—Nothing in this 

23 title shall be construed to change the authority or the re24 sponsibility of a Federal agency to determine the terms and 


srobinson on DSK4SPTVN1PROD with BILLS
19 

•HR 3581 RH

1 conditions of eligibility for, or the amount of assistance pro2 vided by a direct loan or a loan guarantee. 

3 ‘‘SEC. 506. TREATMENT OF DEPOSIT INSURANCE AND AGEN4 CIES AND OTHER INSURANCE PROGRAMS. 

5 ‘‘This title shall not apply to the credit or insurance 

6 activities of the Federal Deposit Insurance Corporation, 

7 National Credit Union Administration, Resolution Trust 

8 Corporation, Pension Benefit Guaranty Corporation, Na9 tional Flood Insurance, National Insurance Development 

10 Fund, Crop Insurance, or Tennessee Valley Authority. 

11 ‘‘SEC. 507. EFFECT ON OTHER LAWS. 

12 ‘‘(a) EFFECT ON OTHER LAWS.—This title shall super13 sede, modify, or repeal any provision of law enacted prior 

14 to the date of enactment of this title to the extent such provi15 sion is inconsistent with this title. Nothing in this title shall 

16 be construed to establish a credit limitation on any Federal 

17 loan or loan guarantee program. 

18 ‘‘(b) CREDITING OF COLLECTIONS.—Collections result19 ing from direct loans obligated or loan guarantees com20 mitted prior to October 1, 1991, shall be credited to the liq21 uidating accounts of Federal agencies. Amounts so credited 

22 shall be available, to the same extent that they were avail23 able prior to the date of enactment of this title, to liquidate 

24 obligations arising from such direct loans obligated or loan 

25 guarantees committed prior to October 1, 1991, including 


srobinson on DSK4SPTVN1PROD with BILLS
20 

•HR 3581 RH

1 repayment of any obligations held by the Secretary of the 

2 Treasury or the Federal Financing Bank. The unobligated 

3 balances of such accounts that are in excess of current needs 

4 shall be transferred to the general fund of the Treasury. 

5 Such transfers shall be made from time to time but, at least 

6 once each year.’’. 

7 (b) CONFORMING AMENDMENT.—The table of contents 

8 set forth in section 1(b) of the Congressional Budget and 

9 Impoundment Control Act of 1974 is amended by striking 

10 the items relating to title V and inserting the following: 

‘‘TITLE V—FAIR VALUE 

‘‘Sec. 501. Purposes. 

‘‘Sec. 502. Definitions. 

‘‘Sec. 503. OMB and CBO analysis, coordination, and review. 

‘‘Sec. 504. Budgetary treatment. 

‘‘Sec. 505. Authorizations. 

‘‘Sec. 506. Treatment of deposit insurance and agencies and other insurance programs. 

‘‘Sec. 507. Effect on other laws.’’. 

11 SEC. 102. EFFECTIVE DATE. 

12 The amendment made by section 101 shall take effect 

13 beginning with fiscal year 2014. 

14 SEC. 103. BUDGETARY ADJUSTMENT. 

15 (a) IN GENERAL.—Section 251(b)(1) of the Balanced 

16 Budget and Emergency Deficit Control Act of 1985 is 

17 amended by adding at the end the following new sentence: 

18 ‘‘A change in discretionary spending solely as a result of 

19 the amendment to title V of the Congressional Budget Act 

20 of 1974 made by the Budget and Accounting Transparency 


srobinson on DSK4SPTVN1PROD with BILLS
21 

•HR 3581 RH

1 Act of 2012 shall be treated as a change of concept under 

2 this paragraph.’’. 

3 (b) REPORT.—Before adjusting the discretionary caps 

4 pursuant to the authority provided in subsection (a), the 

5 Office of Management and Budget shall report to the Com6 mittees on the Budget of the House of Representatives and 

7 the Senate on the amount of that adjustment, the method8 ology used in determining the size of that adjustment, and 

9 a program-by-program itemization of the components of 

10 that adjustment. 

11 (c) SCHEDULE.—The Office of Management and Budg12 et shall not make an adjustment pursuant to the authority 

13 provided in subsection (a) sooner than 60 days after pro14 viding the report required in subsection (b). 

15 TITLE II—BUDGETARY 

16 TREATMENT 

17 SEC. 201. CBO AND OMB STUDIES RESPECTING BUDGETING 

18 FOR COSTS OF FEDERAL INSURANCE PRO19 GRAMS. 

20 Not later than one year after the date of enactment 

21 of this Act, the Directors of the Congressional Budget Office 

22 and of the Office of Management and Budget shall each pre23 pare a study and make recommendations to the Committees 

24 on the Budget of the House of Representatives and the SenVerDate Mar 15 2010 23:31 Jan 31, 2012 Jkt 019200 PO 00000 Frm 00021 Fmt 6652 Sfmt 6203 E:\BILLS\H3581.RH H3581

srobinson on DSK4SPTVN1PROD with BILLS
22 

•HR 3581 RH

1 ate as to the feasability of applying fair value concepts to 

2 budgeting for the costs of Federal insurance programs. 

3 SEC. 202. ON-BUDGET STATUS OF FANNIE MAE AND 

4 FREDDIE MAC. 

5 Notwithstanding any other provision of law, the re6 ceipts and disbursements, including the administrative ex7 penses, of the Federal National Mortgage Association and 

8 the Federal Home Loan Mortgage Corporation shall be 

9 counted as new budget authority, outlays, receipts, or deficit 

10 or surplus for purposes of— 

11 (1) the budget of the United States Government 

12 as submitted by the President; 

13 (2) the congressional budget; and 

14 (3) the Balanced Budget and Emergency Deficit 

15 Control Act of 1985. 

16 SEC. 203. EFFECTIVE DATE. 

17 Section 202 shall not apply with respect to an enter18 prise (as such term is defined in section 1303 of the Federal 

19 Housing Enterprises Financial Safety and Soundness Act 

20 of 1992 (12 U.S.C. 4502)) after the date that all of the fol21 lowing have occurred: 

22 (1) The conservatorship for such enterprise under 

23 section 1367 of such Act (12 U.S.C. 4617) has been 

24 terminated. 


srobinson on DSK4SPTVN1PROD with BILLS
23 

•HR 3581 RH

1 (2) The Director of the Federal Housing Finance 

2 Agency has certified in writing that such enterprise 

3 has repaid to the Federal Government the maximum 

4 amount consistent with minimizing total cost to the 

5 Federal Government of the financial assistance pro6 vided to the enterprise by the Federal Government 

7 pursuant to the amendments made by section 1117 of 

8 the Housing and Economic Recovery Act of 2008 

9 (Public Law 110–289; 122 Stat. 2683) or otherwise. 

10 (3) The charter for the enterprise has been re11 voked, annulled, or terminated and the authorizing 

12 statute (as such term is defined in such section 1303) 

13 with respect to the enterprise has been repealed. 

14 TITLE III—BUDGET REVIEW AND 

15 ANALYSIS 

16 SEC. 301. CBO AND OMB REVIEW AND RECOMMENDATIONS 

17 RESPECTING RECEIPTS AND COLLECTIONS. 

18 Not later than one year after the date of enactment 

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

20 Budget shall prepare a study of the history of offsetting col21 lections against expenditures and the amount of receipts 

22 collected annually, the historical application of the budg23 etary terms ‘‘revenue’’, ‘‘offsetting collections’’, and ‘‘offset24 ting receipts’’, and review the application of those terms 

25 and make recommendations to the Committees on the BudgVerDate Mar 15 2010 23:31 Jan 31, 2012 Jkt 019200 PO 00000 Frm 00023 Fmt 6652 Sfmt 6203 E:\BILLS\H3581.RH H3581

srobinson on DSK4SPTVN1PROD with BILLS
24 

•HR 3581 RH

1 et of the House of Representatives and the Senate of whether 

2 such usage should be continued or modified. The Director 

3 of the Congressional Budget Office shall review the history 

4 and recommendations prepared by the Director of the Office 

5 of Management and Budget and shall submit comments and 

6 recommendations to such Committees. 

7 SEC. 302. AGENCY BUDGET JUSTIFICATIONS. 

8 Section 1108 of title 31, United States Code, is amend9 ed by inserting at the end the following new subsection: 

10 ‘‘(h)(1) Whenever any agency prepares and submits 

11 written budget justification materials for any committee of 

12 the House of Representatives or the Senate, such agency 

13 shall post such budget justification on the same day of such 

14 submission on the ‘open’ page of the public website of the 

15 agency, and the Office of Management and Budget shall 

16 post such budget justification in a centralized location on 

17 its website, in the format developed under paragraph (2). 

18 ‘‘(2) The Office of Management and Budget, in con19 sultation with the Congressional Budget Office and the Gov20 ernment Accountability Office, shall develop and notify 

21 each agency of the format in which to post a budget jus22 tification under paragraph (1). Such format shall be de23 signed to ensure that posted budget justifications for all 

24 agencies— 


srobinson on DSK4SPTVN1PROD with BILLS
25 

•HR 3581 RH

1 ‘‘(A) are searchable, sortable, and downloadable 

2 by the public; 

3 ‘‘(B) are consistent with generally accepted 

4 standards and practices for machine-discoverability; 

5 ‘‘(C) are organized uniformly, in a logical man6 ner that makes clear the contents of a budget justifica7 tion and relationships between data elements within 

8 the budget justification and among similar docu9 ments; and 

10 ‘‘(D) use uniform identifiers, including for agen11 cies, bureaus, programs, and projects.’’. 


srobinson on DSK4SPTVN1PROD with BILLS
Union Calendar No. 261 

112TH CONGRESS 

2D SESSION H. R. 3581 

[Report No. 112–380, Part I] 

A BILL 

To amend the Balanced Budget and Emergency 

poses. parency in Federal budgeting, and for other purDeficit Control Act of 1985 to increase transJANUARY 31, 2012 

Reported from the Committee on the Budget with an 

amendment 

JANUARY 31, 2012 

The Committees on Oversight and Government Reform 

Union and ordered to be printed Committee of the Whole House on the State of the and Ways and Means discharged; committed to the 


srobinson on DSK4SPTVN1PROD with BILLS