II 

Calendar No. 520 

109TH CONGRESS 

2D SESSION S. 3521 

[Report No. 109–283] 

To establish a new budget process to create a comprehensive plan to rein 

in spending, reduce the deficit, and regain control of the Federal budget 

process. 

IN THE SENATE OF THE UNITED STATES 

JUNE 15, 2006 

Mr. GREGG (for himself, Mr. FRIST, Mr. ALLARD, Mr. ENZI, Mr. SESSIONS, 

Mr. CRAPO, Mr. ENSIGN, Mr. CORNYN, Mr. ALEXANDER, Mr. GRAHAM, 

Mr. KYL, Mr. THOMAS, Mr. CRAIG, Mr. BROWNBACK, Mr. ISAKSON, Mr. 

DEMINT, Mr. MCCAIN, Mr. VITTER, Mr. THUNE, Mr. CHAMBLISS, Mr. 

MCCONNELL, Mr. BUNNING, Mr. DOMENICI, Mr. INHOFE, Mr. SUNUNU, 

Mr. SANTORUM, Mrs. DOLE, Mr. ALLEN, and Mr. MARTINEZ) introduced 

the following bill; which was read twice and referred to the Committee 

on the Budget 

JULY 14, 2006 

Reported by Mr. GREGG, with an amendment 

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

A BILL 

To establish a new budget process to create a comprehensive 

plan to rein in spending, reduce the deficit, and regain 

control of the Federal budget process. 

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


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1 SECTION 1. SHORT TITLE: TABLE OF CONTENTS.. 

2 (a) SHORT TITLE.—This Act may be cited as the 

3 ‘‘Stop Over Spending Act of 2006’’. 

4 (b) TABLE OF CONTENTS.—The table of contents for 

5 this Act is as follows: 

Sec. 1. Short title: Table of contents.. 

Sec. 2. Purposes. 

Sec. 3. Severability. 

TITLE I—LEGISLATIVE LINE ITEM VETO ACT OF 2006 

Sec. 101. Short title. 

Sec. 102. Legislative line item veto. 

TITLE II—DEFICIT REDUCTION 

Subtitle A—Definitions, Administration, and Sequestration 

Sec. 201. Definitions. 

Sec. 202. Administration, reconciliation, and effect of sequestration. 

Sec. 203. GAO Compliance Report. 

Subtitle B—Discretionary Spending Limits 

Sec. 211. Discretionary Sequestration Reports. 

Sec. 212. Limits. 

Subtitle C—Maximum Deficit Amount Limitation 

Sec. 221. Maximum Deficit Amount. 

Sec. 222. Reporting of excess deficits. 

Sec. 223. Congressional response to OMB and CBO Reconciliation Report. 

Sec. 224. Revised estimates and final maximum deficit amount sequestration 

reports. 

Sec. 225. Maximum deficit amount-Presidential order. 

Sec. 226. Congressional response to low growth. 

Sec. 227. Exemptions from sequestration. 

Sec. 228. Submission of President’s budget; maximum deficit amount may not 

be exceeded. 

TITLE III—BIENNIAL BUDGETARY AND APPROPRIATIONS 

Sec. 301. Revision of timetable. 

Sec. 302. Amendments to the Congressional Budget and Impoundment Control 

Act of 1974. 

Sec. 303. Amendments to title 31, United States Code. 

Sec. 304. Two-year appropriations; title and style of appropriations Acts. 

Sec. 305. Multiyear authorizations. 

Sec. 306. Government plans on a biennial basis. 

Sec. 307. Biennial appropriation bills. 

Sec. 308. Report on changes in law. 

Sec. 309. Effective date. 


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TITLE IV—COMMISSIONS 

Subtitle A—National Commission on Entitlement Solvency 

Sec. 401. Definitions. 

Sec. 402. Establishment of Commission. 

Sec. 403. Expedited consideration of Commission recommendations. 

Subtitle B—Commission on Congressional Budgetary Accountability and 

Review of Federal Agencies 

Sec. 411. Definitions. 

Sec. 412. Establishment of Commission. 

Sec. 413. Duties of the Commission. 

Sec. 414. Powers of the Commission. 

Sec. 415. Commission personnel matters. 

Sec. 416. Expedited consideration of reform proposals. 

Sec. 417. Termination of the Commission. 

Sec. 418. Authorization of appropriations. 

TITLE V—BUDGET PROCESS REFORMS 

Sec. 501. Definitions. 

Sec. 502. Annual Concurrent Resolution on the Budget. 

Sec. 503. Committee allocations. 

Sec. 504. Budget resolution adoption. 

Sec. 505. Consideration of the budget resolution. 

Sec. 506. Budget projections. 

Sec. 507. Reconciliation. 

Sec. 508. Budgeting levels. 

Sec. 509. Determinations and points of order. 

Sec. 510. Extraneous matter in reconciliation legislation. 

Sec. 511. Adjustments. 

Sec. 512. Direct spending limitation. 

Sec. 513. Appropriations requests of the President. 

1 SEC. 2. PURPOSES. 

2 The purposes of this Act are— 

3 (1) to enable the President and Congress to re4 scind wasteful spending in an expedited manner; 

5 (2) to effectively balance the budget by 2012; 

6 (3) to reinstate statutory discretionary caps; 

7 (4) to reduce the practice of using spending 

8 designated as an ‘‘emergency’’ as a mechanism to 

9 circumvent spending caps; 


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1 (5) to establish targets for the deficit as its 

2 share of the United States economy, specifically as 

3 a percentage of Gross Domestic Product; 

4 (6) to require automatic spending reduction rec5 onciliation directives to achieve annual deficit tar6 gets; 

7 (7) to put in place automatic sequester proce8 dures to reduce discretionary and mandatory spend9 ing when either statutory caps have been exceeded 

10 or deficit targets have not been met; 

11 (8) to require Congress to act upon legislation 

12 to ensure the solvency of the Social Security and 

13 Medicare Programs; 

14 (9) to require Congress to act upon legislation 

15 to identify and eliminate waste and duplication in 

16 Federal programs; 

17 (10) to establish biennial budgeting; 

18 (11) to strengthen and improve the Congres19 sional budget resolution and reconciliation process; 

20 and 

21 (12) to provide short term and long term solu22 tions to ensure the financial security of our nation 

23 so that our children and grandchildren will not be 

24 saddled with insurmountable debt. 


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1 SEC. 3. SEVERABILITY. 

2 If any provision of this Act, an amendment made by 

3 this Act, or the application of such provision or amend4 ment to any person or circumstance is held to be unconsti5 tutional, the remainder of this Act, the amendments made 

6 by this Act, and the application of the provisions of such 

7 to any person or circumstance shall not be affected there8 by. 

9 TITLE I—LEGISLATIVE LINE 

10 ITEM VETO ACT OF 2006 

11 SEC. 101. SHORT TITLE. 

12 This title may be cited as the ‘‘Legislative Line Item 

13 Veto Act of 2006’’. 

14 SEC. 102. LEGISLATIVE LINE ITEM VETO. 

15 (a) IN GENERAL.—Title X of the Congressional 

16 Budget and Impoundment Control Act of 1974 (2 U.S.C. 

17 621 et seq.) is amended by striking part C and inserting 

18 the following: 

19 ‘‘PART C—LEGISLATIVE LINE ITEM VETO

20 ‘‘EXPEDITED CONSIDERATION OF CERTAIN PROPOSED

21 RESCISSIONS

22 ‘‘SEC. 1021. (a) PROPOSED RESCISSIONS.—The 

23 President may send a special message, at the time and 

24 in the manner provided in subsection (b), that proposes 

25 to rescind dollar amounts of discretionary budget author26 ity, items of direct spending, and targeted tax benefits. 


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

2 ‘‘(1) SPECIAL MESSAGE.— 

3 ‘‘(A) IN GENERAL.— 

4 ‘‘(i) FOUR MESSAGES.—The President 

5 may transmit to Congress not to exceed 4 

6 special messages per calendar year, pro7 posing to rescind dollar amounts of discre8 tionary budget authority, items of direct 

9 spending, and targeted tax benefits. 

10 ‘‘(ii) TIMING.—Special messages may 

11 be transmitted under clause (i)— 

12 ‘‘(I) with the President’s budget 

13 submitted pursuant to section 1105 of 

14 title 31, United States Code; and 

15 ‘‘(II) 3 other times as determined 

16 by the President. 

17 ‘‘(iii) LIMITATIONS.— 

18 ‘‘(I) IN GENERAL.—Special mes19 sages shall be submitted within 1 cal20 endar year of the date of enactment of 

21 any dollar amount of discretionary 

22 budget authority, item of direct 

23 spending, or targeted tax benefit the 

24 President proposes to rescind pursu25 ant to this Act. 


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1 ‘‘(II) RESUBMITTAL.—If Con2 gress rejects or does not complete ac3 tion on a bill introduced under this 

4 Act, the President may resubmit some 

5 or all of the dollar amounts of discre6 tionary budget authority, items of di7 rect spending, and targeted tax bene8 fits in that bill in not more than 1 ad9 ditional special message under this 

10 part or part B. 

11 ‘‘(B) CONTENTS OF SPECIAL MESSAGE.— 

12 Each special message shall specify, with respect 

13 to the dollar amount of discretionary budget au14 thority, item of direct spending, or targeted tax 

15 benefit proposed to be rescinded— 

16 ‘‘(i) the dollar amount of discretionary 

17 budget authority available and proposed 

18 for rescission from accounts, departments, 

19 or establishments of the government and 

20 the dollar amount of the reduction in out21 lays that would result from the enactment 

22 of such rescission of discretionary budget 

23 authority for the time periods set forth in 

24 subparagraph (A)(iii); 


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1 ‘‘(ii) the specific items of direct spend2 ing and targeted tax benefits proposed for 

3 rescission and the dollar amounts of the 

4 reductions in budget authority and outlays 

5 or increases in receipts that would result 

6 from enactment of such rescission for the 

7 time periods set forth in subparagraph 

8 (A)(iii); 

9 ‘‘(iii) the budgetary effects of pro10 posals for rescission, estimated as of the 

11 date the President submits the special 

12 message, relative to the most recent levels 

13 calculated consistent with the methodology 

14 described in section 257 of the Balanced 

15 Budget and Emergency Deficit Control Act 

16 of 1985 and included with a budget sub17 mission under section 1105(a) of title 31, 

18 United States Code, for the time periods 

19 of— 

20 ‘‘(I) the fiscal year in which the 

21 proposal is submitted; and 

22 ‘‘(II) each of the 10 following fis23 cal years beginning with the fiscal 

24 year after the fiscal year in which the 

25 proposal is submitted; 


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1 ‘‘(iv) any account, department, or es2 tablishment of the Government to which 

3 such dollar amount of discretionary budget 

4 authority or item of direct spending is 

5 available for obligation, and the specific 

6 project or governmental functions involved; 

7 ‘‘(v) the reasons why such dollar 

8 amount of discretionary budget authority 

9 or item of direct spending or targeted tax 

10 benefit should be rescinded; 

11 ‘‘(vi) the estimated fiscal and eco12 nomic impacts, of the proposed rescission; 

13 ‘‘(vii) to the maximum extent prac14 ticable, all facts, circumstances, and con15 siderations relating to or bearing upon the 

16 proposed rescission and the decision to ef17 fect the proposed rescission, and the esti18 mated effect of the proposed rescission 

19 upon the objects, purposes, and programs 

20 for which the budget authority or items of 

21 direct spending or targeted tax benefits are 

22 provided; and 

23 ‘‘(viii) a draft bill that, if enacted, 

24 would rescind the budget authority, items 

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1 fits proposed to be rescinded in that spe2 cial message. 

3 ‘‘(2) ANALYSIS BY CONGRESSIONAL BUDGET

4 OFFICE AND JOINT COMMITTEE ON TAXATION.— 

5 ‘‘(A) IN GENERAL.—Upon the receipt of a 

6 special message under this section proposing to 

7 rescind dollar amounts of discretionary budget 

8 authority, items of direct spending, and tar9 geted tax benefits— 

10 ‘‘(i) the Director of the Congressional 

11 Budget Office shall prepare an estimate of 

12 the savings in budget authority or outlays 

13 resulting from such proposed rescission 

14 and shall include in its estimate, an anal15 ysis prepared by the Joint Committee on 

16 Taxation related to targeted tax benefits; 

17 and 

18 ‘‘(ii) the Director of the Joint Com19 mittee on Taxation shall prepare an esti20 mate and forward such estimate to the 

21 Congressional Budget Office, of the sav22 ings from repeal of targeted tax benefits. 

23 ‘‘(B) METHODOLOGY.—The estimates re24 quired by subparagraph (A) shall be made rel25 ative to the most recent levels calculated conVerDate Aug 31 2005 22:35 Jul 14, 2006 Jkt 049196 PO 00000 Frm 00010 Fmt 6652 Sfmt 6401 E:\BILLS\S3521.RS S3521

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1 sistent with the methodology used to calculate 

2 a baseline under section 257 of the Balanced 

3 Budget and Emergency Control Act of 1985 

4 and included with a budget submission under 

5 section 1105(a) of title 31, United States Code, 

6 and transmitted to the chairmen of the Com7 mittees on the Budget of the House of Rep8 resentatives and Senate. 

9 ‘‘(3) ENACTMENT OF RESCISSION BILL.— 

10 ‘‘(A) DEFICIT REDUCTION.—Amounts of 

11 budget authority or items of direct spending or 

12 targeted tax benefit that are rescinded pursuant 

13 to enactment of a bill as provided under this 

14 section shall be dedicated only to deficit reduc15 tion and shall not be used as an offset for other 

16 spending increases or revenue reductions. 

17 ‘‘(B) ADJUSTMENT OF BUDGET TAR18 GETS.—Not later than 5 days after the date of 

19 enactment of a rescission bill as provided under 

20 this section, the chairs of the Committees on 

21 the Budget of the Senate and the House of 

22 Representatives shall revise spending and rev23 enue levels under section 311(a) of the Con24 gressional Budget Act of 1974 and adjust the 

25 committee allocations under section 302(a) of 


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1 the Congressional Budget Act of 1974 or any 

2 other adjustments as may be appropriate to re3 flect the rescission. The adjustments shall re4 flect the budgetary effects of such rescissions as 

5 estimated by the President pursuant to para6 graph (1)(B)(iii). The appropriate committees 

7 shall report revised allocations pursuant to sec8 tion 302(b) of the Congressional Budget Act of 

9 1974. Notwithstanding any other provision of 

10 law, the revised allocations and aggregates shall 

11 be considered to have been made under a con12 current resolution on the budget agreed to 

13 under the Congressional Budget Act of 1974 

14 and shall be enforced under the procedures of 

15 that Act. 

16 ‘‘(C) ADJUSTMENTS TO CAPS.—After en17 actment of a rescission bill as provided under 

18 this section, the President shall revise applica19 ble limits under the Stop Over Spending Act of 

20 2006, as appropriate. 

21 ‘‘(c) PROCEDURES FOR EXPEDITED CONSIDER22 ATION.— 

23 ‘‘(1) IN GENERAL.— 

24 ‘‘(A) INTRODUCTION.—Before the close of 

25 the second day of session of the Senate and the 


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1 House of Representatives, respectively, after the 

2 date of receipt of a special message transmitted 

3 to Congress under subsection (b), the majority 

4 leader of each House, for himself, or minority 

5 leader of each House, for himself, or a Member 

6 of that House designated by that majority lead7 er or minority leader shall introduce (by re8 quest) the President’s draft bill to rescind the 

9 amounts of budget authority or items of direct 

10 spending or targeted tax benefits, as specified 

11 in the special message and the President’s draft 

12 bill. If the bill is not introduced as provided in 

13 the preceding sentence in either House, then, 

14 on the third day of session of that House after 

15 the date of receipt of that special message, any 

16 Member of that House may introduce the bill. 

17 ‘‘(B) REFERRAL AND REPORTING.— 

18 ‘‘(i) ONE COMMITTEE.—The bill shall 

19 be referred by the presiding officer to the 

20 appropriate committee. The committee 

21 shall report the bill without any revision 

22 and with a favorable, an unfavorable, or 

23 without recommendation, not later than 

24 the fifth day of session of that House after 

25 the date of introduction of the bill in that 


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1 House. If the committee fails to report the 

2 bill within that period, the committee shall 

3 be automatically discharged from consider4 ation of the bill, and the bill shall be 

5 placed on the appropriate calendar. 

6 ‘‘(ii) MULTIPLE COMMITTEES.— 

7 ‘‘(I) REFERRALS.—If a bill con8 tains provisions in the jurisdiction of 

9 more than 1 committee, the bill shall 

10 be jointly referred to the committees 

11 of jurisdiction and the Committee on 

12 the Budget. 

13 ‘‘(II) VIEWS OF COMMITTEE.— 

14 Any committee, other than the Com15 mittee on the Budget, to which a bill 

16 is referred under this clause may sub17 mit a favorable, an unfavorable rec18 ommendation, without recommenda19 tion with respect to the bill to the 

20 Committee on the Budget prior to the 

21 reporting or discharge of the bill. 

22 ‘‘(III) REPORTING.—The Com23 mittee on the Budget shall report the 

24 bill not later than the fifth day of ses25 sion of that House after the date of 


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1 introduction of the bill in that House, 

2 without any revision and with a favor3 able or unfavorable recommendation, 

4 or without recommendation, together 

5 with the recommendations of any 

6 committee to which the bill has been 

7 referred. 

8 ‘‘(IV) DISCHARGE.—If the Com9 mittee on the Budget fails to report 

10 the bill within that period, the com11 mittee shall be automatically dis12 charged from consideration of the bill, 

13 and the bill shall be placed on the ap14 propriate calendar. 

15 ‘‘(C) FINAL PASSAGE.—A vote on final 

16 passage of the bill shall be taken in the Senate 

17 and the House of Representatives on or before 

18 the close of the 10th day of session of that 

19 House after the date of the introduction of the 

20 bill in that House. If the bill is passed, the 

21 Clerk of the House of Representatives shall 

22 cause the bill to be transmitted to the Senate 

23 before the close of the next day of session of the 

24 House. 


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1 ‘‘(2) CONSIDERATION IN THE HOUSE OF REP2 RESENTATIVES.— 

3 ‘‘(A) MOTION TO PROCEED TO CONSIDER4 ATION.—A motion in the House of Representa5 tives to proceed to the consideration of a bill 

6 under this subsection shall be highly privileged 

7 and not debatable. An amendment to the mo8 tion shall not be in order, nor shall it be in 

9 order to move to reconsider the vote by which 

10 the motion is agreed to or disagreed to. 

11 ‘‘(B) LIMITS ON DEBATE.—Debate in the 

12 House of Representatives on a bill under this 

13 subsection shall not exceed 4 hours, which shall 

14 be divided equally between those favoring and 

15 those opposing the bill. A motion further to 

16 limit debate shall not be debatable. It shall not 

17 be in order to move to recommit a bill under 

18 this subsection or to move to reconsider the 

19 vote by which the bill is agreed to or disagreed 

20 to. 

21 ‘‘(C) APPEALS.—Appeals from decisions of 

22 the chair relating to the application of the 

23 Rules of the House of Representatives to the 

24 procedure relating to a bill under this section 

25 shall be decided without debate. 


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1 ‘‘(D) APPLICATION OF HOUSE RULES.— 

2 Except to the extent specifically provided in this 

3 section, consideration of a bill under this sec4 tion shall be governed by the Rules of the 

5 House of Representatives. It shall not be in 

6 order in the House of Representatives to con7 sider any bill introduced pursuant to the provi8 sions of this section under a suspension of the 

9 rules or under a special rule. 

10 ‘‘(3) CONSIDERATION IN THE SENATE.— 

11 ‘‘(A) MOTION TO PROCEED TO CONSIDER12 ATION.—A motion to proceed to the consider13 ation of a bill under this subsection in the Sen14 ate shall not be debatable. A motion to proceed 

15 to consideration of the bill may be made even 

16 though a previous motion to the same effect has 

17 been disagreed to. It shall not be in order to 

18 move to reconsider the vote by which the mo19 tion to proceed is agreed to or disagreed to. 

20 ‘‘(B) LIMITS ON DEBATE.—Debate in the 

21 Senate on a bill under this subsection, and all 

22 debatable motions and appeals in connection 

23 therewith, shall not exceed a total of 10 hours, 

24 equally divided and controlled in the usual 

25 form. 


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1 ‘‘(C) DEBATABLE MOTIONS AND AP2 PEALS.—Debate in the Senate on any debatable 

3 motion or appeal in connection with a bill under 

4 this subsection shall be limited to not more 

5 than 1 hour from the time allotted for debate, 

6 to be equally divided and controlled in the usual 

7 form. 

8 ‘‘(D) MOTION TO LIMIT DEBATE.—A mo9 tion in the Senate to further limit debate on a 

10 bill under this subsection is not debatable. 

11 ‘‘(E) MOTION TO RECOMMIT.—A motion to 

12 recommit a bill under this subsection is not in 

13 order. 

14 ‘‘(F) CONSIDERATION OF THE HOUSE

15 BILL.— 

16 ‘‘(i) IN GENERAL.—If the Senate has 

17 received the House companion bill to the 

18 bill introduced in the Senate prior to the 

19 vote required under paragraph (1)(C), then 

20 the Senate shall consider, and the vote 

21 under paragraph (1)(C) shall occur on, the 

22 House companion bill. 

23 ‘‘(ii) PROCEDURE AFTER VOTE ON

24 SENATE BILL.—If the Senate votes, pursu25 ant to paragraph (1)(C), on the bill introVerDate Aug 31 2005 22:35 Jul 14, 2006 Jkt 049196 PO 00000 Frm 00018 Fmt 6652 Sfmt 6401 E:\BILLS\S3521.RS S3521

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1 duced in the Senate, the Senate bill shall 

2 be held pending receipt of the House mes3 sage on the bill. Upon receipt of the House 

4 companion bill, the House bill shall be 

5 deemed to be considered, read for the third 

6 time, and the vote on passage of the Sen7 ate bill shall be considered to be the vote 

8 on the bill received from the House. 

9 ‘‘(d) AMENDMENTS AND DIVISIONS PROHIBITED.— 

10 ‘‘(1) IN GENERAL.—No amendment to a bill 

11 considered under this section shall be in order in ei12 ther the Senate or the House of Representatives. 

13 ‘‘(2) NO DIVISION.—It shall not be in order to 

14 demand a division of the question in the House of 

15 Representatives (or in a Committee of the Whole). 

16 ‘‘(3) NO SUSPENSION.—No motion to suspend 

17 the application of this subsection shall be in order 

18 in the House of Representatives, nor shall it be in 

19 order in either the House of Representatives or the 

20 Senate to suspend the application of this subsection 

21 by unanimous consent. 

22 ‘‘(e) TEMPORARY PRESIDENTIAL AUTHORITY TO

23 WITHHOLD.— 

24 ‘‘(1) AVAILABILITY.—The President may not 

25 withhold any dollar amount of discretionary budget 


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1 authority until the President transmits and Congress 

2 receives a special message pursuant to subsection 

3 (b). Upon receipt by Congress of a special message 

4 pursuant to subsection (b), the President may direct 

5 that any dollar amount of discretionary budget au6 thority proposed to be rescinded in that special mes7 sage shall be withheld from obligation for a period 

8 not to exceed 45 calendar days from the date of re9 ceipt by Congress. 

10 ‘‘(2) EARLY AVAILABILITY.—The President 

11 may make any dollar amount of discretionary budget 

12 authority withheld from obligation pursuant to para13 graph (1) available at an earlier time if the Presi14 dent determines that continued withholding would 

15 not further the purposes of this Act. 

16 ‘‘(f) TEMPORARY PRESIDENTIAL AUTHORITY TO

17 SUSPEND.— 

18 ‘‘(1) SUSPEND.—The President may not sus19 pend the execution of any item of direct spending or 

20 targeted tax benefit until the President transmits 

21 and Congress receives a special message pursuant to 

22 subsection (b). Upon receipt by Congress of a special 

23 message, the President may suspend the execution 

24 of any item of direct spending or targeted tax ben25 efit proposed to be rescinded in that message for a 


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1 period not to exceed 45 calendar days from the date 

2 of receipt by Congress. 

3 ‘‘(2) EARLY AVAILABILITY.—The President 

4 may terminate the suspension of any item of direct 

5 spending or targeted tax benefit suspended pursuant 

6 to paragraph (1) at an earlier time if the President 

7 determines that continuation of the suspension 

8 would not further the purposes of this Act. 

9 ‘‘(g) DEFINITIONS.—In this section: 

10 ‘‘(1) APPROPRIATION LAW.—The term ‘appro11 priation law’ means any general or special appro12 priation Act, and any Act or joint resolution making 

13 supplemental, deficiency, or continuing appropria14 tions. 

15 ‘‘(2) CALENDAR DAY.—The term ‘calendar day’ 

16 means a standard 24-hour period beginning at mid17 night. 

18 ‘‘(3) DAYS OF SESSION.—The term ‘days of 

19 session’ means only those days on which both 

20 Houses of Congress are in session. 

21 ‘‘(4) DOLLAR AMOUNT OF DISCRETIONARY

22 BUDGET AUTHORITY.—The term ‘dollar amount of 

23 discretionary budget authority’ means the dollar 

24 amount of budget authority and obligation limita25 tions— 


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1 ‘‘(A) specified in an appropriation law, or 

2 the dollar amount of budget authority required 

3 to be allocated by a specific proviso in an ap4 propriation law for which a specific dollar figure 

5 was not included; 

6 ‘‘(B) represented separately in any table, 

7 chart, or explanatory text included in the state8 ment of managers or the governing committee 

9 report accompanying such law; 

10 ‘‘(C) required to be allocated for a specific 

11 program, project, or activity in a law (other 

12 than an appropriation law) that mandates obli13 gations from or within accounts, programs, 

14 projects, or activities for which budget authority 

15 or an obligation limitation is provided in an ap16 propriation law; 

17 ‘‘(D) represented by the product of the es18 timated procurement cost and the total quantity 

19 of items specified in an appropriation law or in20 cluded in the statement of managers or the gov21 erning committee report accompanying such 

22 law; or 

23 ‘‘(E) represented by the product of the es24 timated procurement cost and the total quantity 

25 of items required to be provided in a law (other 


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1 than an appropriation law) that mandates obli2 gations from accounts, programs, projects, or 

3 activities for which dollar amount of discre4 tionary budget authority or an obligation limita5 tion is provided in an appropriation law. 

6 ‘‘(5) RESCIND OR RESCISSION.—The term ‘re7 scind’ or ‘rescission’ means— 

8 ‘‘(A) in the case of a dollar amount of dis9 cretionary budget authority, to reduce or repeal 

10 a provision of law to prevent that budget au11 thority or obligation limitation from having 

12 legal force or effect; and 

13 ‘‘(B) in the case of direct spending or tar14 geted tax benefit, to repeal a provision of law 

15 in order to prevent the specific legal obligation 

16 of the United States from having legal force or 

17 effect. 

18 ‘‘(6) DIRECT SPENDING.—The term ‘direct 

19 spending’ means budget authority provided by law 

20 (other than an appropriation law), mandatory spend21 ing provided in appropriation Acts, and entitlement 

22 authority. 

23 ‘‘(7) ITEM OF DIRECT SPENDING.—The term 

24 ‘item of direct spending’ means any specific provi25 sion of law enacted after the effective date of the 


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1 Legislative Line Item Veto Act of 2006 that is esti2 mated to result in an increase in budget authority 

3 or outlays for direct spending relative to the most 

4 recent levels calculated consistent with the method5 ology described in section 257 of the Balanced 

6 Budget and Emergency Deficit Control Act of 1985 

7 and included with a budget submission under section 

8 1105(a) of title 31, United States Code, and, with 

9 respect to estimates made after that budget submis10 sion that are not included with it, estimates con11 sistent with the economic and technical assumptions 

12 underlying the most recently submitted President’s 

13 budget. 

14 ‘‘(8) SUSPEND THE EXECUTION.—The term 

15 ‘suspend the execution’ means, with respect to an 

16 item of direct spending or a targeted tax benefit, to 

17 stop the carrying into effect of the specific provision 

18 of law that provides such benefit; and 

19 ‘‘(9) TARGETED TAX BENEFIT.—The term ‘tar20 geted tax benefit’ means only those provisions— 

21 ‘‘(A) estimated by the Joint Committee on 

22 Taxation to result in a loss of revenues relative 

23 to the most recent levels calculated consistent 

24 with the methodology described in section 257 

25 of the Balanced Budget and Emergency Deficit 


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1 Control Act of 1985 and included with a budget 

2 submission under section 1105(a) of title 31, 

3 United States Code, and with respect to esti4 mates made after that budget submission that 

5 are not included with it, estimates consistent 

6 with the economic and technical assumptions 

7 underlying the most recently submitted Presi8 dent’s budget; and 

9 ‘‘(B) having the practical effect of pro10 viding more favorable tax treatment to a par11 ticular taxpayer or limited group of taxpayers 

12 when compared with other similarly situated 

13 taxpayers. 

14 ‘‘(h) CONGRESSIONAL IDENTIFICATION OF TAR15 GETED TAX BENEFITS.— 

16 ‘‘(1) STATEMENT BY JOINT TAX COMMITTEE.— 

17 The Joint Committee on Taxation shall review any 

18 revenue or reconciliation bill or joint resolution 

19 which includes any amendment to the Internal Rev20 enue Code of 1986 that is being prepared for filing 

21 by a committee of conference of the 2 Houses, and 

22 shall identify, prior to consideration of such con23 ference report, whether such bill or joint resolution 

24 contains any targeted tax benefits. The Joint Com25 mittee on Taxation shall provide to the committee of 


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1 conference a statement identifying any such targeted 

2 tax benefits or declaring that the bill or joint resolu3 tion does not contain any targeted tax benefits. The 

4 statement shall be included in the statement of man5 agers to accompany such conference report and 

6 made available to any Member of Congress by the 

7 Joint Committee on Taxation immediately upon re8 quest. 

9 ‘‘(2) STATEMENT INCLUDED IN LEGISLA10 TION.—Notwithstanding any other rule of the House 

11 of Representatives or any rule or precedent of the 

12 Senate, any revenue or reconciliation bill or joint 

13 resolution, which includes any amendment to the In14 ternal Revenue Code of 1986 reported by a com15 mittee of conference of the House of Representatives 

16 and the Senate, may include, as a separate section 

17 of such bill or joint resolution, the information con18 tained in the statement of the Joint Committee on 

19 Taxation.’’. 

20 (b) EXERCISE OF RULEMAKING POWERS.—Section 

21 904 of the Congressional Budget Act of 1974 (2 U.S.C. 

22 621 note) is amended— 

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

24 and inserting ‘‘1017, and 1021’’; and 


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

2 1017’’ and inserting ‘‘sections 1017 and 1021’’. 

3 (c) CLERICAL AMENDMENTS.— 

4 (1) SHORT TITLE.—Section 1(a) of the Con5 gressional Budget and Impoundment Control Act of 

6 1974 is amended by— 

7 (A) striking ‘‘Parts A and B’’ before ‘‘title 

8 X’’ and inserting ‘‘Parts A, B, and C’’; and 

9 (B) striking the last sentence and inserting 

10 at the end the following new sentence: ‘‘Part C 

11 of title X also may be cited as the ‘Legislative 

12 Line Item Veto Act of 2006’.’’. 

13 (2) TABLE OF CONTENTS.—The table of con14 tents set forth in section 1(b) of the Congressional 

15 Budget and Impoundment Control Act of 1974 is 

16 amended by deleting the contents for part C of title 

17 X and inserting the following: 

‘‘PART C—LEGISLATIVE LINE ITEM VETO

‘‘Sec. 1021. Expedited consideration of certain proposed rescissions.’’. 

18 (d) SEVERABILITY.—If any provision of this Act or 

19 the amendments made by it is held to be unconstitutional, 

20 the remainder of this Act and the amendments made by 

21 it shall not be affected by the holding. 

22 (e) EFFECTIVE DATE AND EXPIRATION.— 

23 (1) EFFECTIVE DATE.—The amendments made 

24 by this Act shall— 


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1 (A) take effect on the date of enactment of 

2 this Act; and 

3 (B) apply to any dollar amount of discre4 tionary budget authority, item of direct spend5 ing, or targeted tax benefit provided in an Act 

6 enacted on or after September 1, 2006. 

7 (2) EXPIRATION.—The amendments made by 

8 this Act shall expire on December 31, 2010. 

9 TITLE II—DEFICIT REDUCTION 

10 Subtitle A—Definitions, 

11 Administration, and Sequestration 

12 SEC. 201. DEFINITIONS. 

13 In this subtitle: 

14 (1) ACCOUNT.—The term ‘‘account’’ means— 

15 (A) for discretionary budget authority, an 

16 item for which appropriations are made in any 

17 appropriation Act; and 

18 (B) for items not provided for in appro19 priation Acts, direct spending and outlays 

20 therefrom identified in the program and finance 

21 schedules contained in the appendix to the 

22 Budget of the United States for the current 

23 year. 

24 (2) BREACH.—The term ‘‘breach’’ means, for 

25 any fiscal year, the amount by which discretionary 


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1 budget authority enacted for that year exceeds the 

2 spending limit for budget authority for that year. 

3 (3) BUDGET AUTHORITY; NEW BUDGET AU4 THORITY; AND OUTLAYS.—The terms ‘‘budget au5 thority’’, ‘‘new budget authority’’, and ‘‘outlays’’ 

6 have the meanings given to such terms in section 3 

7 of the Congressional Budget and Impoundment Con8 trol Act of 1974 (2 U.S.C. 622). For purposes of 

9 subtitle B an obligation limitation shall be treated as 

10 budget authority. 

11 (4) BUDGET YEAR.—The term ‘‘budget year’’ 

12 means, with respect to a session of Congress, the fis13 cal year of the Government that starts on October 

14 1 of the calendar year in which that session begins. 

15 (5) CBO.—The term ‘‘CBO’’ means the Direc16 tor of the Congressional Budget Office. 

17 (6) CURRENT.—The term ‘‘current’’ means— 

18 (A) with respect to the Office of Manage19 ment and Budget estimates included with a 

20 budget submission under section 1105(a) of 

21 title 31, United States Code, the estimates con22 sistent with the economic and technical assump23 tions underlying that budget; 

24 (B) with respect to estimates made after 

25 that budget submission that are not included 


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1 with it, the estimates consistent with the eco2 nomic and technical assumptions underlying the 

3 most recently submitted President’s budget; 

4 and 

5 (C) with respect to the Congressional 

6 Budget Office, estimates consistent with the 

7 economic and technical assumptions as required 

8 by section 202(e)(1) of the Congressional Budg9 et Act of 1974. 

10 (7) CURRENT YEAR.—The term ‘‘current year’’ 

11 means, with respect to a budget year, the fiscal year 

12 that immediately precedes that budget year. 

13 (8) DEFICIT.—The term ‘‘deficit’’ means, with 

14 respect to any fiscal year, the amount by which total 

15 budget outlays for such fiscal year exceed total gov16 ernmental receipts for such fiscal year. In calcu17 lating the deficit for purposes of comparison with 

18 the maximum deficit amount under section 221 and 

19 in calculating the excess deficit for purposes of sub20 title C (notwithstanding section 710(a) of the Social 

21 Security Act (42 U.S.C. 911)) for any fiscal year, 

22 the receipts of the Federal Old-Age and Survivors 

23 Insurance Trust Fund and the Federal Disability 

24 Insurance Trust Fund for such fiscal year and the 

25 taxes payable under sections 1401(a), 3101(a), and 


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1 3111(a) of the Internal Revenue Code of 1954 (26 

2 U.S.C. 1401, 3101, 3111) during such fiscal year 

3 shall be included in total revenues for such fiscal 

4 year, and the disbursements of each such Trust 

5 Fund for such fiscal year shall be included in total 

6 budget outlays for such fiscal year. Notwithstanding 

7 any other provision of law except to the extent pro8 vided by section 710(a) of the Social Security Act 

9 (42 U.S.C. 911) the receipts, revenues, disburse10 ments, budget authority, and outlays of each off11 budget Federal entity for a fiscal year shall be in12 cluded in total budget authority, total budget out13 lays, and total revenues and the amounts of budget 

14 authority and outlays set forth for each major func15 tional category, for such fiscal year. 

16 (9) DIRECT SPENDING.—The term ‘‘direct 

17 spending’’ shall have the meaning given such term 

18 in section 3(3) of the Congressional Budget Act of 

19 1974. 

20 (10) DISCRETIONARY BUDGET AUTHORITY.— 

21 The term ‘‘discretionary budget authority’’ means 

22 budgetary authority (except to fund mandatory pro23 grams) provided in appropriation Acts. 


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1 (11) DISCRETIONARY SPENDING LIMIT.—The 

2 term ‘‘discretionary spending limit’’ shall mean the 

3 amounts specified in section 212. 

4 (12) EXCESS DEFICIT AMOUNT.—The term ‘‘ex5 cess deficit amount’’, with respect to any fiscal year, 

6 means the amount of the deficit reduced by the esti7 mated reductions of outlays resulting from any se8 questration in subtitle C, that exceeds the maximum 

9 deficit amount. 

10 (13) OMB.—The term ‘‘OMB’’ means the Di11 rector of the Office of Management and Budget. 

12 (14) SEQUESTRATION.—The term ‘‘sequestra13 tion’’ — 

14 (A) with respect to discretionary budget 

15 authority, means the cancellation or reduction 

16 of budget authority (except budget authority to 

17 fund mandatory programs) provided in appro18 priation Acts; and 

19 (B) with respect to the excess deficit 

20 amount, means the amount cancelled or re21 duced from direct spending and outlays flowing 

22 therefrom. 


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1 SEC. 202. ADMINISTRATION, RECONCILIATION, AND EF2 FECT OF SEQUESTRATION. 

3 (a) TIMETABLE.—The timetable with respect to this 

4 title is as follows: 

Date Action to be completed 

5 days before the President’s budget 

submission 

CBO Discretionary Sequestration and 

Maximum Deficit Amount Preview 

Report.

The President’s budget submission OMB Discretionary Sequestration and 

Maximum Deficit Amount Preview 

Report.

August 15 CBO Discretionary Sequestration and 

Maximum Deficit Amount Reconciliation Report.

August 20 OMB Discretionary Sequestration and 

Maximum Deficit Amount Reconciliation Report.

September 15 Budget Committee Reconciliation Directives. 

20 days after Budget Committee Action Committees Respond to Reconciliation 

Directives 

10 days after end of session CBO Final Discretionary Sequestration and Maximum Deficit Amount 

Sequestration Report. 

15 days after end of session OMB Final Discretionary Sequestration and Maximum Deficit Amount 

Sequestration Report/Presidential 

Sequestration Order. 

5 (b) PRESIDENTIAL ORDER.—On the date specified in 

6 subsection (a), if in its Final Sequestration Report, OMB 

7 estimates that any sequestration is required, the President 

8 shall issue an order fully implementing without change all 

9 sequestrations required by the OMB calculations set forth 

10 in that report. This order shall be effective on issuance. 

11 (c) EFFECTS OF SEQUESTRATION.—The effects of 

12 sequestration shall be as follows: 


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1 (1) Budgetary resources sequestered from any 

2 account shall be permanently cancelled, except as 

3 provided in paragraph (5). 

4 (2) Except as otherwise provided, the same per5 centage sequestration shall apply to all programs, 

6 projects, and activities within a budget account (with 

7 programs, projects, and activities as delineated in 

8 the appropriation Act or accompanying report for 

9 the relevant fiscal year covering that account). 

10 (3) Administrative regulations or similar ac11 tions implementing a sequestration shall be made 

12 within 120 days of the sequestration order. To the 

13 extent that formula allocations differ at different 

14 levels of budgetary resources within an account, pro15 gram, project, or activity, the sequestration shall be 

16 interpreted as producing a lower total appropriation, 

17 with the remaining amount of the appropriation 

18 being obligated in a manner consistent with program 

19 allocation formulas in substantive law. 

20 (4) Except as otherwise provided in this sub21 title, obligations or budgetary resources in seques22 tered accounts shall be reduced only in the fiscal 

23 year in which a sequester occurs. 

24 (5) Budgetary resources sequestered in special 

25 fund accounts and offsetting collections sequestered 


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1 in appropriation accounts shall not be available for 

2 obligation during the fiscal year in which the seques3 tration occurs, but shall be available in subsequent 

4 years to the extent otherwise provided in law. 

5 (d) SUBMISSION AND AVAILABILITY OF REPORTS.— 

6 Each report required by this section shall be submitted, 

7 in the case of CBO, to the House of Representatives, the 

8 Senate, and OMB and, in the case of OMB, to the House 

9 of Representatives, the Senate, and the President on the 

10 day it is issued. On the following day a notice of the report 

11 shall be printed in the Federal Register. 

12 SEC. 203. GAO COMPLIANCE REPORT. 

13 Upon request of the Committee on the Budget of the 

14 House of Representatives or the Senate, the Comptroller 

15 General shall submit to the Congress and the President 

16 a report on— 

17 (1) the extent to which each order issued by the 

18 President under this title complies with all of the re19 quirements contained in this title, either certifying 

20 that the order fully and accurately complies with 

21 such requirements or indicating the respects in 

22 which it does not; and 

23 (2) the extent to which each report issued by 

24 OMB or CBO under this section complies with all of 

25 the requirements contained in this title, either certiVerDate Aug 31 2005 22:35 Jul 14, 2006 Jkt 049196 PO 00000 Frm 00035 Fmt 6652 Sfmt 6401 E:\BILLS\S3521.RS S3521

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1 fying that the report fully and accurately complies 

2 with such requirements or indicating the respects in 

3 which it does not. 

4 Subtitle B—Discretionary 

5 Spending Limits 

6 SEC. 211. DISCRETIONARY SEQUESTRATION REPORTS. 

7 (a) DISCRETIONARY SEQUESTRATION PREVIEW RE8 PORTS.— 

9 (1) REPORTING REQUIREMENT.— 

10 (A) IN GENERAL.—On the dates specified 

11 in section 202(a), OMB shall report to the 

12 President and Congress and CBO shall report 

13 to Congress a Discretionary Sequestration Pre14 view Report regarding discretionary sequestra15 tion based on laws enacted through those dates. 

16 (B) PRESIDENT’S BUDGET.—When the 

17 President submits the budget under section 

18 1105 of title 31, United States Code, OMB 

19 shall calculate and the budget shall include ad20 justments to discretionary spending limits (and 

21 those limits as cumulatively adjusted) for the 

22 budget year and each outyear to reflect changes 

23 in concepts and definitions. 

24 (C) CONSULTATION.—Any determination 

25 or change under subparagraph (B) may only be 


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1 made after consultation with the Committees on 

2 Appropriations and the Budget of the House of 

3 Representatives and the Senate, and that con4 sultation shall include written communication to 

5 such committees that affords such committees 

6 the opportunity to comment before official ac7 tion is taken with respect to such changes. 

8 (2) DISCRETIONARY.—The Discretionary Se9 questration Preview Report shall set forth estimates 

10 for the current year and each subsequent year 

11 through 2009 of the applicable discretionary spend12 ing limits and an explanation of any adjustments in 

13 such limits under section 212, and a projection of 

14 budget authority exceeding discretionary caps sub15 ject to sequester. 

16 (3) EXPLANATION OF DIFFERENCES.—The 

17 OMB reports shall explain the differences between 

18 OMB and CBO estimates for each item set forth in 

19 this subsection. 

20 (b) DISCRETIONARY SEQUESTRATION REPORTS.—On 

21 the dates specified in section 202(a), OMB and CBO shall 

22 issue Discretionary Sequestration Reports, reflecting laws 

23 enacted through those dates, containing all of the informa24 tion required in the Discretionary Sequestration Preview 

25 Reports. 


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1 (c) FINAL DISCRETIONARY SEQUESTRATION RE2 PORTS.— 

3 (1) REPORTING REQUIREMENTS.—On the dates 

4 specified in section 202(a), OMB and CBO shall 

5 each issue a Final Discretionary Sequestration Re6 port, updated to reflect laws enacted through those 

7 dates. 

8 (2) DISCRETIONARY SPENDING.—The Final 

9 Discretionary Sequestration Reports shall set forth 

10 estimates for each of the following: 

11 (A) For the current year and each subse12 quent year through 2009; the applicable discre13 tionary spending limits. 

14 (B) For the current year, if applicable, and 

15 the budget year; the new budget authority and 

16 the breach, if any. 

17 (C) The sequestration percentages nec18 essary to eliminate the breach. 

19 (D) For the budget year, for each account 

20 to be sequestered, the level of enacted, 

21 sequesterable budget authority and resulting es22 timated outlays to be sequestered. 

23 (3) EXPLANATION OF DIFFERENCES.—The 

24 OMB report shall explain any differences between 

25 OMB and CBO estimates for any breach and any 


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1 required discretionary sequestration percentages. 

2 The OMB report shall also explain differences in the 

3 amount of sequesterable resources for any budget 

4 account to be reduced if such difference is greater 

5 than $5,000,000. 

6 (d) ECONOMIC AND TECHNICAL ASSUMPTIONS.—In 

7 all reports required by this section, OMB shall use the 

8 same economic and technical assumptions as used in the 

9 most recent budget submitted by the President under sec10 tion 1105(a) of title 31, United States Code. 

11 (e) ADJUSTMENTS.—When OMB submits a report 

12 under this section for a fiscal year, OMB shall calculate, 

13 and the subsequent reports and budgets submitted by the 

14 President under section 1105(a) of title 31, United States 

15 Code shall include, adjustments to discretionary spending 

16 limits (and those limits as adjusted) for the fiscal year 

17 and each succeeding year. 

18 SEC. 212. LIMITS. 

19 (a) DISCRETIONARY SPENDING LIMITS.—As used in 

20 this subtitle, the term ‘‘discretionary spending limit’’ 

21 means— 

22 (1) with respect to fiscal year 2007, 

23 $872,504,000,000 in new budget authority; 

24 (2) with respect to fiscal year 2008, 

25 $895,358,000,000 in new budget authority; 


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1 (3) with respect to fiscal year 2009, 

2 $919,516,000,000 in new budget authority; and 

3 (4) with respect to fiscal years following 2009, 

4 The President shall recommend and the Congress 

5 shall consider legislation setting limits for those fis6 cal years. 

7 (b) ADJUSTMENTS.— 

8 (1) EMERGENCY SPENDING.—If, for fiscal year 

9 2007, 2008, or 2009, appropriations for discre10 tionary accounts are enacted that the President des11 ignates as emergency requirements, and that the 

12 Congress so designates in statute, the adjustment 

13 shall be the total of such appropriations in discre14 tionary accounts designated as emergency require15 ments, but not to exceed $90,000,000,000 for fiscal 

16 year 2007, $50,000,000,000 for 2008, and 

17 $30,000,000,000 for 2009. Appropriations des18 ignated as emergencies in excess of these limitations 

19 shall be treated as new budget authority for the pur20 pose of calculating a breach of the discretionary 

21 spending limits. 

22 (2) FEDERAL TAX GAP INITIATIVE.—If an ap23 propriation bill or joint resolution is enacted for fis24 cal year 2007, 2008, or 2009, that includes 

25 $6,824,000,000 plus an additional amount for the 


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1 enhanced tax enforcement initiative of the Internal 

2 Revenue Service, the adjustment shall be the amount 

3 of budget authority in that measure for that initia4 tive but not to exceed— 

5 (A) with respect to fiscal year 2007, 

6 $274,000,000 in new budget authority; 

7 (B) with respect to fiscal year 2008, 

8 $414,000,000 in new budget authority; and 

9 (C) with respect to fiscal year 2009, 

10 $554,000,000 in new budget authority. 

11 (c) ENFORCEMENT.— 

12 (1) SEQUESTRATION.—On the date specified in 

13 section 202(a), there shall be a sequestration to 

14 eliminate a budget-year breach. 

15 (2) ELIMINATING A BREACH.—Each account 

16 shall be reduced by a dollar amount calculated by 

17 multiplying the enacted level of budget authority for 

18 that year in that account at that time by the uni19 form percentage necessary to eliminate a breach of 

20 the discretionary spending limit. 

21 (3) PART-YEAR APPROPRIATIONS.—If, on the 

22 date the report is issued under paragraph (1), there 

23 is in effect an Act making continuing appropriations 

24 for part of a fiscal year for any budget account, then 


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1 the dollar sequestration calculated for that account 

2 under paragraph (2) shall be subtracted from— 

3 (A) the annualized amount otherwise avail4 able by law in that account under that or a sub5 sequent part-year appropriation; and 

6 (B) when a full-year appropriation for that 

7 account is enacted, from the amount otherwise 

8 provided by the full-year appropriation. 

9 (4) LOOK-BACK.—If, after June 30, an appro10 priation for the fiscal year in progress is enacted 

11 that causes a breach for that year (after taking into 

12 account any previous sequestration), the discre13 tionary spending limit for the next fiscal year shall 

14 be reduced by the amount of that breach. 

15 (5) WITHIN-SESSION SEQUESTRATION REPORTS

16 AND ORDER.—If an appropriation for a fiscal year 

17 in progress is enacted (after Congress adjourns to 

18 end the session for that budget year and before July 

19 1 of that fiscal year) that causes a breach, 10 days 

20 later CBO shall issue a report containing the infor21 mation required in section 211(c). Fifteen days after 

22 enactment, OMB shall issue a report containing the 

23 information required in section 211(c). On the same 

24 day as the OMB report, the President shall issue an 

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1 trations required by the OMB calculations set forth 

2 in that report. This order shall be effective on 

3 issuance. 

4 (d) ESTIMATES.— 

5 (1) CBO ESTIMATES.—As soon as practicable 

6 after Congress completes action on any legislation 

7 providing discretionary appropriations, CBO shall 

8 provide an estimate to OMB of that legislation. 

9 (2) OMB ESTIMATES.—Not later than 7 cal10 endar days (excluding Saturdays, Sundays, and legal 

11 holidays) after the date of enactment of any discre12 tionary appropriations, OMB shall transmit a report 

13 to the House of Representatives and to the Senate 

14 containing— 

15 (A) the CBO estimate of that legislation; 

16 (B) an OMB estimate of that legislation 

17 using current economic and technical assump18 tions; and 

19 (C) an explanation of any difference be20 tween the 2 estimates. 

21 (3) DIFFERENCES.—If during the preparation 

22 of the report under paragraph (2), OMB determines 

23 that there is a difference between the OMB and 

24 CBO estimates, OMB shall consult with the Com25 mittees on the Budget of the House of RepresentaVerDate Aug 31 2005 22:35 Jul 14, 2006 Jkt 049196 PO 00000 Frm 00043 Fmt 6652 Sfmt 6401 E:\BILLS\S3521.RS S3521

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1 tives and the Senate regarding that difference and 

2 that consultation, to the extent practicable, shall in3 clude written communication to such committees 

4 that affords such committees the opportunity to 

5 comment before the issuance of that report. 

6 (4) ASSUMPTIONS AND GUIDELINES.—OMB 

7 and CBO shall prepare estimates under this para8 graph in conformance with scorekeeping guidelines 

9 determined after consultation among the House and 

10 Senate Committees on the Budget, CBO, and OMB. 

11 Subtitle C—Maximum Deficit 

12 Amount Limitation 

13 SEC. 221. MAXIMUM DEFICIT AMOUNT. 

14 In this subtitle, the term ‘‘maximum deficit amount’’ 

15 means— 

16 (1) with respect to 2007, equals 2.75 percent of 

17 the Gross Domestic Product for 2007, as estimated 

18 by OMB for 2007; 

19 (2) with respect to 2008, equals 2.25 percent of 

20 the Gross Domestic Product for 2008, as estimated 

21 by OMB for 2008; 

22 (3) with respect to 2009, equals 1.75 percent of 

23 the Gross Domestic Product for 2009, as estimated 

24 by OMB for 2009; 


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1 (4) with respect to 2010, equals 1.25 percent of 

2 the Gross Domestic Product for 2010, as estimated 

3 by OMB for 2010; 

4 (5) with respect to 2011, equals 0.75 percent of 

5 the Gross Domestic Product for 2011, as estimated 

6 by OMB for 2011; and 

7 (6) with respect to 2012 and thereafter, equals 

8 0.5 percent of Gross Domestic Product for 2012 and 

9 thereafter, as estimated by OMB for 2012, and 

10 thereafter. 

11 SEC. 222. REPORTING OF EXCESS DEFICITS. 

12 (a) MAXIMUM DEFICIT AMOUNT PREVIEW REPORT

13 BY OMB AND CBO.— 

14 (1) ESTIMATES AND DETERMINATIONS.—On 

15 the dates specified in section 202(a), OMB and CBO 

16 shall with respect to each fiscal year estimate— 

17 (A) the deficit; 

18 (B) the maximum deficit amount; and 

19 (C) any excess deficit amount for the 

20 budget year. 

21 (2) REPORT.—OMB shall report to the Presi22 dent and Congress and CBO shall report to Con23 gress estimating the budget base levels of total reve24 nues and total budget outlays for the budget year, 

25 identifying the deficit, the maximum deficit amount, 


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1 and the amount of any deficit excess for such fiscal 

2 year, the base from which direct spending reductions 

3 are taken and the amounts and percentages by 

4 which such direct spending accounts must be re5 duced for the budget year, in accordance with the 

6 succeeding provisions of this part, in order to elimi7 nate such excess based on laws enacted through 

8 those dates. 

9 (3) DETERMINATION OF REDUCTIONS.—The 

10 amounts and percentages by which accounts must be 

11 reduced for the budget year shall be determined by, 

12 subject to the exemptions set forth in section 227, 

13 the reductions necessary to eliminate the excess def14 icit amount for the fiscal year. 

15 (4) BASIS FOR DIRECTORS’ ESTIMATES, DETER16 MINATIONS, AND SPECIFICATIONS.— 

17 (A) BUDGET BASE.—In computing the 

18 amounts and percentages by which accounts 

19 must be reduced during a fiscal year as set 

20 forth in the report required under paragraph 

21 (2) for such fiscal year, OMB and CBO shall 

22 use current economic and technical assumptions 

23 consistent with the methodology set forth in 

24 section 257 of the Balanced Budget and En25 forcement Deficit Control Act of 1985. 


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1 (B) DEFERRALS AND RESCISSIONS.—De2 ferrals and rescissions proposed under the Im3 poundment Control Act of 1974 for the budget 

4 year shall not be taken into account in deter5 mining such budget base. 

6 (C) EXPLANATION OF DIFFERENCES.— 

7 The OMB shall explain the differences between 

8 OMB and CBO estimates for each item in the 

9 report. 

10 (b) REVISED ESTIMATES AND MAXIMUM DEFICIT

11 AMOUNT RECONCILIATION REPORTS.— 

12 (1) RECONCILIATION REPORT BY OMB AND

13 CBO.—On the date specified in section 202(a), the 

14 Director of OMB shall submit to the President and 

15 Congress, and the Director of CBO shall submit to 

16 Congress, a revised report— 

17 (A) indicating whether and to what extent, 

18 as a result of laws enacted and regulations pro19 mulgated after the submission of their max20 imum deficit amount preview report under sub21 section (a), the excess deficit identified in the 

22 report submitted under such subsection has 

23 been eliminated, reduced, or increased; and 


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1 (B) adjusting the determinations for the 

2 effects of any discretionary sequestration that 

3 may be required under subtitle B. 

4 The reconciliation report submitted under this para5 graph shall contain estimates, determinations, and 

6 specifications for all of the items contained in the 

7 preview report and the OMB report shall be based 

8 on the same economic and technical assumptions 

9 and employ the same methodologies as applied in the 

10 supplemental budget estimates submitted under sec11 tion 1106 of title 31, United States Code, and the 

12 CBO report shall be based on the most recent report 

13 required by section 202(e)(2) of the Congressional 

14 Budget Act of 1974. Estimates shall be consistent 

15 with methodology in section 257 of the Balanced 

16 Budget and Enforcement Act Deficit Control Act of 

17 1985. The reports shall provide for the determina18 tion of reductions in the manner specified in sub19 section (a)(3). 

20 (2) EXPLANATION OF DIFFERENCES.—The 

21 OMB shall explain the differences between OMB 

22 and CBO estimates for each item in the reconcili23 ation report. 

24 (c) DATES FOR SUBMISSION OF REPORTS AND

25 ISSUANCE OF ORDERS.—If the date specified for the subVerDate Aug 31 2005 22:35 Jul 14, 2006 Jkt 049196 PO 00000 Frm 00048 Fmt 6652 Sfmt 6401 E:\BILLS\S3521.RS S3521

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1 mission of a report by the Director of OMB under this 

2 section falls on a Sunday or legal holiday, such report shall 

3 be submitted or such order issued on the following day. 

4 (d) PRINTING OF REPORTS.—Each report submitted 

5 under this section shall be printed in the Federal Register 

6 on the date it is issued; and the reports of the Director 

7 of OMB submitted to the Congress under subsection (b) 

8 shall be printed as documents of the House of Representa9 tives and the Senate. 

10 SEC. 223. CONGRESSIONAL RESPONSE TO OMB AND CBO 

11 RECONCILIATION REPORT. 

12 (a) REPORTING OF RESOLUTIONS, AND RECONCILI13 ATION BILLS AND RESOLUTIONS, IN THE SENATE.— 

14 (1) COMMITTEE ALTERNATIVES TO PRESI15 DENTIAL ORDER.—For the purpose of assisting the 

16 Committees on the Budget of the House and Senate 

17 in preparing Reconciliation Directive Reports under 

18 paragraph (3) and not later than 20 days after the 

19 submission of the OMB Reconciliation Report, each 

20 standing committee of the House and Senate may 

21 submit to the Committees on the Budget of the 

22 House and Senate information of the type described 

23 in section 301(d) of the Congressional Budget Act of 

24 1974 with respect to alternatives to the order enviVerDate Aug 31 2005 22:35 Jul 14, 2006 Jkt 049196 PO 00000 Frm 00049 Fmt 6652 Sfmt 6401 E:\BILLS\S3521.RS S3521

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1 sioned by such report insofar as such order affects 

2 laws within the jurisdiction of the committee. 

3 (2) CBA.—Sections 305 and 310 of the Con4 gressional Budget Act of 1974 shall apply to any bill 

5 considered under this section, except as otherwise 

6 provided in this section. 

7 (3) RECONCILIATION DIRECTIVES.—On the 

8 date specified in section 202(a), the Chairmen of the 

9 Committees on the Budget of the House and Senate 

10 shall submit a Reconciliation Directive Report to the 

11 President of the Senate or the Speaker of the House 

12 for appropriate referral to the committees of its 

13 House, the OMB Reconciliation Report containing 

14 the maximum deficit amount and the excess deficit 

15 and reconciliation directives. Such directives shall— 

16 (A) specify the total amount by which— 

17 (i) direct spending budget authority 

18 and outlays for such fiscal year; and 

19 (ii) governmental receipts, other than 

20 income taxes, estate and gift taxes, excise 

21 taxes, payroll taxes, or tariffs, for such fis22 cal year, are to be changed; and 

23 (B) include directives to committees to rec24 ommend changes in laws within their jurisdic25 tion to accomplish the total amount of deficit 


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1 reduction necessary to eliminate the excess def2 icit so that the deficit does not exceed the max3 imum deficit amount set forth in the OMB Rec4 onciliation Report. 

5 (4) RESPONSE OF COMMITTEES.—Committees 

6 directed pursuant to paragraph (3), shall submit 

7 their recommendations to comply with the directives 

8 to the Budget Committee no later than 20 days 

9 after the directives referred to in paragraph (3) are 

10 issued. 

11 (5) BUDGET COMMITTEE ACTION.—Upon re12 ceipt of the recommendations received in response to 

13 directives referred to in paragraph (3), the Budget 

14 Committees shall report to the House and Senate, a 

15 reconciliation bill carrying out all such recommenda16 tions. 

17 (b) LEGISLATIVE PROCEDURE.—If a Reconciliation 

18 Directive Report containing reconciliation directives to 1 

19 or more committees to determine and recommend changes 

20 in laws, bills, or resolutions is issued in accordance with 

21 subsection (a)(3)— 

22 (1) each such committee so directed shall make 

23 such recommendations to the Committee on the 

24 Budget of its House, which upon receiving all such 

25 recommendations, shall report to its House reconciliVerDate Aug 31 2005 22:35 Jul 14, 2006 Jkt 049196 PO 00000 Frm 00051 Fmt 6652 Sfmt 6401 E:\BILLS\S3521.RS S3521

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1 ation legislation carrying out all such recommenda2 tions without any substantive revision; and 

3 (2) in the event that any committee fails to 

4 comply with its directive, then the Committees on 

5 the Budget may report amendments recommending 

6 changes within the jurisdiction of the noncompliant 

7 committee to achieve the changes contained in the 

8 directive. 

9 (c) ADJUSTMENT OF BUDGET TARGETS.—Upon en10 actment of a reconciliation bill conference report, the 

11 chairmen of the Committees on the Budget of the Senate 

12 and the House of Representatives shall revise spending 

13 and revenue levels under section 311(a) of the Congres14 sional Budget Act of 1974 and adjust the committee allo15 cations under section 302(a) of the Congressional Budget 

16 Act of 1974, or any other adjustments as may be appro17 priate to reflect any changes made in the reconciliation 

18 bill. Notwithstanding any other provision of law, the re19 vised allocations and aggregates shall be considered to 

20 have been made under a concurrent resolution on the 

21 budget agreed to under the Congressional Budget Act of 

22 1974, and shall be enforced under the procedures of that 

23 Act. 

24 (d) COMPLIANCE WITH RECONCILIATION DIREC25 TIVES.—Secondary or indirect effects of the legislative 


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1 recommendations submitted by any committee of the 

2 House of Representatives or the Senate that is directed, 

3 shall be attributed to the committee proposing the change 

4 in law, but shall not be considered for the purpose of de5 termining compliance with such directives. 

6 (e) LIMITATION ON AMENDMENTS TO RECONCILI7 ATION BILLS.— 

8 (1) HOUSE OF REPRESENTATIVES.—It shall not 

9 be in order in the House of Representatives to con10 sider any amendment to a reconciliation bill if such 

11 amendment would have the effect of increasing any 

12 specific budget outlays above the level of such out13 lays provided in the bill (for the fiscal years covered 

14 by the reconciliation directives), or would have the 

15 effect of reducing any specific governmental receipts 

16 below the level of such governmental receipts pro17 vided in the bill (for such fiscal year), unless such 

18 amendment makes at least an equivalent reduction 

19 in other specific budget outlays, an equivalent in20 crease in other specific governmental receipts, or an 

21 equivalent combination thereof (for such fiscal year). 

22 (2) SENATE.—It shall not be in order in the 

23 Senate to consider any amendment to a reconcili24 ation bill if such amendment would have the effect 

25 of increasing any specific budget outlay level above 


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1 the level of such outlay reductions provided (for the 

2 fiscal year covered) in the reconciliation directives or 

3 would have the effect of reducing governmental re4 ceipts increases below the level of such increases in 

5 such governmental receipts provided (for such fiscal 

6 year) in the reconciliation directives, unless such 

7 amendment makes a reduction in other specific 

8 budget outlays, an increase in other specific govern9 mental receipts, or a combination thereof (for such 

10 fiscal year) at least equivalent to any increase in 

11 outlays or decrease in governmental receipts pro12 vided by such amendment, except that a motion to 

13 strike a provision shall always be in order. 

14 (3) BUDGET AUTHORITY, OUTLAYS, AND RE15 CEIPTS.—For purposes of this section, the levels of 

16 budget authority, outlays, and governmental receipts 

17 for a fiscal year shall be determined on the basis of 

18 estimates made by the Committee on the Budget of 

19 the House of Representatives or of the Senate, as 

20 the case may be. 

21 (4) HOUSE RULES.—The Committee on Rules 

22 of the House of Representatives may make in order 

23 amendments to achieve changes specified by rec24 onciliation directives if a committee or committees of 

25 the House fail to submit recommended changes to 


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1 its Committee on the Budget pursuant to its instruc2 tion. 

3 (f) PROCEDURE IN THE SENATE.— 

4 (1) IN GENERAL.—Except as provided in para5 graph (2), the provisions of section 305 for the con6 sideration in the Senate of concurrent resolutions on 

7 the budget and conference reports thereon, shall also 

8 apply to the consideration in the Senate of reconcili9 ation bills reported under this subsection, motions in 

10 relation to a request for conference, and conference 

11 reports thereon. 

12 (2) SENATE CONSIDERATION.—Consideration in 

13 the Senate on any reconciliation bill reported under 

14 this subsection, and all amendments thereto and de15 batable motions and appeals in connection therewith, 

16 shall be limited to not more than 20 hours. 

17 (g) LIMITATION ON CHANGES TO THE SOCIAL SECU18 RITY ACT.—Notwithstanding any other provision of law, 

19 it shall not be in order in the Senate or the House of Rep20 resentatives to consider any reconciliation bill, or any 

21 amendment thereto or conference report thereon, that con22 tains recommendations with respect to the old-age, sur23 vivors, and disability insurance program established under 

24 title II of the Social Security Act. 


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1 (h) EXTRANEOUS MATTER IN RECONCILIATION LEG2 ISLATION.— 

3 (1) IN GENERAL.—When the Senate is consid4 ering a reconciliation bill pursuant to this section 

5 (whether that bill originated in the Senate or the 

6 House), upon a point of order being made by any 

7 Senator against material extraneous to the instruc8 tions to a committee which is contained in any title 

9 or provision of the bill or offered as an amendment 

10 to the bill, and the point of order is sustained by the 

11 Chair, any part of said title or provision that con12 tains material extraneous to the directives to said 

13 Committee as defined in paragraph (2), shall be 

14 deemed stricken from the bill and may not be of15 fered as an amendment from the floor. 

16 (2) EXTRANEOUS PROVISIONS.—Except as pro17 vided in paragraph (3)— 

18 (A) a provision of a reconciliation bill con19 sidered pursuant to this subsection shall be con20 sidered extraneous if such provision does not 

21 produce a decrease in outlays or an increase in 

22 governmental receipts, including changes in out23 lays and governmental receipts brought about 

24 by changes in the terms and conditions under 


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1 which outlays are made or governmental re2 ceipts are required to be collected; 

3 (B) a provision that is not in the jurisdic4 tion of the Committee with jurisdiction over 

5 said title or provision shall be considered extra6 neous (except that amendments reported by the 

7 Committee on the Budget to achieve compliance 

8 with reconciliation directives shall not be 

9 deemed extraneous); 

10 (C) a provision shall be considered to be 

11 extraneous if it increases, or would increase, net 

12 outlays, or if it decreases, or would decrease, 

13 governmental receipts during a fiscal year after 

14 the fiscal years covered by such reconciliation 

15 bill, and such increases or decreases are greater 

16 than outlay reductions or governmental receipts 

17 increases resulting from other provisions in 

18 such title in such year; and 

19 (D) a provision shall be considered extra20 neous if it violates section 310(g) of the Con21 gressional Budget Act of 1974. 

22 (3) SENATE-ORIGINATED PROVISIONS.—A Sen23 ate-originated provision shall not be considered ex24 traneous under paragraph (2) if the Chairman and 

25 Ranking Minority Member of the Committee on the 


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1 Budget and the Chairman and Ranking Minority 

2 Member of the Committee which reported the provi3 sion certify that— 

4 (A) the provision mitigates direct effects 

5 clearly attributable to a provision changing out6 lays or revenue and both provisions together 

7 produce a net reduction in the deficit; 

8 (B) the provision will result in a substan9 tial reduction in outlays or a substantial in10 crease in governmental receipts during fiscal 

11 years after the fiscal years covered by the rec12 onciliation bill or reconciliation resolution; 

13 (C) a reduction of outlays or an increase in 

14 governmental receipts is likely to occur as a re15 sult of the provision, in the event of new regula16 tions authorized by the provision or likely to be 

17 proposed, court rulings on pending litigation, or 

18 relationships between economic indices and stip19 ulated statutory triggers pertaining to the pro20 vision, other than the regulations, court rulings, 

21 or relationships currently projected by the Con22 gressional Budget Office for scorekeeping pur23 poses; or 

24 (D) such provision will be likely to produce 

25 a significant reduction in outlays or increase in 


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1 governmental receipts but, due to insufficient 

2 data, such reduction or increase cannot be reli3 ably estimated. 

4 (4) COMMITTEE REPORTED PROVISIONS.—a 

5 provision reported by a committee shall not be con6 sidered extraneous under paragraph (2) if— 

7 (A) the provision is an integral part of a 

8 provision or title, which if introduced as a bill, 

9 would be referred to such committee, and the 

10 provision sets forth the procedure to carry out 

11 or implement the substantive provisions that 

12 were reported and which fall within the jurisdic13 tion of such committee; or 

14 (B) the provision states an exception to, or 

15 a special application of, the general provision or 

16 title of which it is a part and such general pro17 vision or title if introduced as a bill, would be 

18 referred to such committee. 

19 (5) TECHNICAL AND CONFORMING AMEND20 MENTS.—Technical and conforming provisions shall 

21 not be considered extraneous under this subsection. 

22 (6) EXTRANEOUS MATERIALS.—Upon the re23 porting of a reconciliation bill pursuant to this sub24 section in the Senate, and again upon the submis25 sion of a conference report on such a reconciliation 


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1 bill, the Committee on the Budget of the Senate 

2 shall submit for the record a list of material consid3 ered to be extraneous under paragraph (2) (A), (C), 

4 and (D), to the instructions of a committee as pro5 vided in this section. The inclusion or exclusion of 

6 a provision shall not constitute a determination of 

7 extraneousness by the Presiding Officer of the Sen8 ate. 

9 (7) CONFERENCE REPORTS.—When the Senate 

10 is considering a conference report on, or an amend11 ment between the Houses in relation to, a reconcili12 ation bill pursuant to this section, upon a point of 

13 order being made by any Senator against extraneous 

14 material meeting the definition of this subsection, 

15 and such point of order being sustained, such mate16 rial contained in such conference report or amend17 ment shall be deemed stricken, and the Senate shall 

18 proceed, without intervening action or motion, to 

19 consider the question of whether the Senate shall re20 cede from its amendment and concur with a further 

21 amendment, or concur in the House amendment 

22 with a further amendment, as the case may be, 

23 which further amendment shall consist of only that 

24 portion of the conference report or House amend25 ment, as the case may be, not so stricken. Any such 


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1 motion in the Senate shall be debatable for two 

2 hours. In any case in which such point of order is 

3 sustained against a conference report (or Senate 

4 amendment derived from such conference report by 

5 operation of this subsection), no further amendment 

6 shall be in order. 

7 (i) DETERMINATIONS AND POINTS OF ORDER.—Not8 withstanding any other law or rule of the Senate, it shall 

9 be in order for a Senator to raise a single point of order 

10 that several provisions of a bill, resolution, amendment, 

11 motion, or conference report violate this section. The Pre12 siding Officer may sustain the point of order as to some 

13 or all of the provisions against which the Senator raised 

14 the point of order. If the Presiding Officer so sustains the 

15 point of order as to some of the provisions (including pro16 visions of an amendment, motion, or conference report) 

17 against which the Senator raised the point of order, then 

18 only those provisions (including provisions of an amend19 ment, motion, or conference report) against which the Pre20 siding Officer sustains the point of order shall be deemed 

21 stricken pursuant to this section. Before the Presiding Of22 ficer rules on such a point of order, any Senator may move 

23 to waive such a point of order as it applies to some or 

24 all of the provisions against which the point of order was 

25 raised. Such a motion to waive is amendable in accordance 


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1 with the rules and precedents of the Senate. After the Pre2 siding Officer rules on such a point of order, any Senator 

3 may appeal the ruling of the Presiding Officer on such 

4 a point of order as it applies to some or all of the provi5 sions on which the Presiding Officer ruled. 

6 SEC. 224. REVISED ESTIMATES AND FINAL MAXIMUM DEF7 ICIT AMOUNT SEQUESTRATION REPORTS. 

8 (a) REVISED ESTIMATES, DETERMINATIONS, AND

9 FINAL MAXIMUM DEFICIT AMOUNT SEQUESTRATION RE10 PORTS.—On the dates specified in section 202(a), OMB 

11 shall submit to the President and Congress, and CBO 

12 shall submit to Congress, a revised report— 

13 (1) indicating whether and to what extent, as a 

14 result of laws enacted and regulations promulgated 

15 after the submission of their preview report under 

16 section 222(a), the excess deficit identified in the re17 port submitted under such subsection has been 

18 eliminated, reduced, or increased; and 

19 (2) adjusting the determinations made under 

20 section 222(a) to the extent necessary. 

21 The final report submitted under this subsection shall con22 tain estimates, determinations, and specifications for all 

23 of the items contained in the maximum deficit amount rec24 onciliation report and shall be based on the same economic 

25 and technical assumptions and employ the same methVerDate Aug 31 2005 22:35 Jul 14, 2006 Jkt 049196 PO 00000 Frm 00062 Fmt 6652 Sfmt 6401 E:\BILLS\S3521.RS S3521

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1 odologies shall be based on the supplemental budget esti2 mates under section 1106 of title 31, United states Code, 

3 and the CBO report shall be based on the most recent 

4 report required by section 202(e)(2) of the Congressional 

5 Budget Act of 1974. Estimates shall be consistent with 

6 section 257 of the Balanced Budget and Enforcement Act 

7 Deficit Control Act of 1985. The reports shall provide for 

8 the determination of reductions in the manner specified 

9 in section 222(a)(3). 

10 (b) DATES FOR SUBMISSION OF REPORTS AND

11 ISSUANCE OF ORDERS.—If the date specified for the sub12 mission of a report by the Director of OMB under this 

13 section falls on a Sunday or legal holiday, such report shall 

14 be submitted or such order issued on the following day. 

15 (c) PRINTING OF REPORTS.—Each report submitted 

16 under this section shall be printed in the Federal Register 

17 on the date it is issued; and the reports of the Director 

18 of OMB submitted to the Congress under subsection 

19 (a)(1) shall be printed as documents of the House of Rep20 resentatives and the Senate. 

21 SEC. 225. MAXIMUM DEFICIT AMOUNT-PRESIDENTIAL 

22 ORDER. 

23 (a) IN GENERAL.—On the date specified in section 

24 202(a) and following the submission of a report by the 

25 Director of OMB to the President and Congress under 


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1 section 224 that identifies an amount by which the deficit 

2 for a fiscal year will exceed the maximum deficit amount 

3 for such fiscal year the President, in strict accordance with 

4 the requirements set forth in section 227, shall eliminate 

5 the full amount of the deficit excess by issuing an order 

6 that eliminates the direct spending authority and outlays 

7 resulting therefrom in accordance with such report from 

8 each budget account activity as identified in the program 

9 and financing schedules contained in the appendix to the 

10 Budget of the United States Government for that fiscal 

11 year, applying the same reduction percentage as the per12 centage by which the account is reduced in such report. 

13 (b) ORDER TO BE BASED ON OMB REPORT.—The 

14 order must provide for reductions in the manner specified 

15 in section 224, and must be consistent with such report 

16 in all respects. The President may not modify or recal17 culate any of the estimates, determinations, specifications, 

18 bases, amounts or percentages set forth in the report sub19 mitted under section 224 in determining the reductions 

20 to be specified in the order with respect to budget activi21 ties, within an account. 

22 (c) EFFECT OF SEQUESTRATION UNDER PRESI23 DENTIAL ORDER.—Amounts sequestered under an order 

24 issued by the President under subsection (a) for a fiscal 


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1 year shall be permanently cancelled in accordance with 

2 such final order. 

3 (d) ACCOMPANYING MESSAGE.—At the time the ac4 tions described in the preceding provisions of this sub5 section with respect to any fiscal year are taken, the Presi6 dent shall transmit to both Houses of the Congress a mes7 sage containing all the information required by this sec8 tion and further specifying in strict accordance with sub9 section (b)— 

10 (1) within each account, and the amounts which 

11 are to be sequestered or reduced for each such pro12 gram, project, and activity or budget account activ13 ity; and 

14 (2) such other supporting details as the Presi15 dent may determine to be appropriate. 

16 Upon receipt in the Senate and the House of Representa17 tives, the message shall be referred to all committees with 

18 jurisdiction over programs, projects, and activities affected 

19 by the order. 

20 (e) EFFECTIVE DATE OF INITIAL ORDER.—The 

21 order issued by the President under subsection (a) with 

22 respect to any fiscal year shall be effective as of the date 

23 of its issuance. 


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1 SEC. 226. CONGRESSIONAL RESPONSE TO LOW GROWTH. 

2 (a) SPECIAL PROCEDURES IN THE EVENT OF LOW

3 ECONOMIC GROWTH.— 

4 (1) IN GENERAL.—The Director of the Con5 gressional Budget Office shall notify the Congress at 

6 any time if— 

7 (A) during the period consisting of the 

8 quarter during which such notification is given, 

9 the quarter preceding such notification, and the 

10 four quarters following such notification, such 

11 Office or the Office of Management and Budget 

12 has determined that real economic growth is 

13 projected or estimated to be less than zero with 

14 respect to each of any two consecutive quarters 

15 within such period, or 

16 (B) the Department of Commerce prelimi17 nary reports of actual real economic growth (or 

18 any subsequent revision thereof) indicate that 

19 the rate of real economic growth for each of the 

20 most recent reported quarter and the imme21 diately preceding quarter is less than one per22 cent. 

23 Upon such notification the majority leader of each 

24 House shall introduce a joint resolution (in the form 

25 set forth in paragraph (2)) declaring that the condi26 tions specified in this paragraph are met and susVerDate Aug 31 2005 22:35 Jul 14, 2006 Jkt 049196 PO 00000 Frm 00066 Fmt 6652 Sfmt 6401 E:\BILLS\S3521.RS S3521

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1 pending the relevant provisions of this title for the 

2 remainder of the current fiscal year or for the fol3 lowing fiscal year or both. 

4 (2) FORM OF JOINT RESOLUTION.— 

5 (A) MATTER.—The matter after the re6 solving clause in any joint resolution introduced 

7 pursuant to paragraph (1) shall be as follows: 

8 ‘‘That the Congress declares that the conditions 

9 specified in section 226(a)(1) of the Stop Over 

10 Spending Act of 2006 are met and the provi11 sions of that Act, including sequestration of dis12 cretionary spending under subtitle B of that 

13 Act are suspended for the remainder of the cur14 rent year, and for the fiscal year following the 

15 current year. This joint resolution shall not 

16 have the effect of suspending any final order 

17 which was issued for the current fiscal year 

18 under the SOS Act if such order was issued be19 fore the date of the enactment of this joint res20 olution. . 

21 (B) TITLE.—The title of the joint resolu22 tion shall be ‘‘Joint resolution suspending cer23 tain provisions of law pursuant to SOS Act.’’ 

24 and the joint resolution shall not contain any 

25 preamble. 


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1 (b) COMMITTEE ACTION.—Each joint resolution in2 troduced pursuant to subsection (a) shall be referred to 

3 the Committee on the Budget of the House involved; and 

4 such Committee shall report the joint resolution to its 

5 House without amendment on or before the fifth day on 

6 which such House is in session after the date on which 

7 the joint resolution is introduced. If the Committee fails 

8 to report the joint resolution within the five-day period 

9 referred to in the preceding sentence, it shall be automati10 cally discharged from further consideration of the joint 

11 resolution, and the joint resolution shall be placed on the 

12 appropriate calendar. 

13 (c) CONSIDERATION OF JOINT RESOLUTION.— 

14 (1) IN GENERAL.—A vote on final passage of a 

15 joint resolution reported to a House of the Congress 

16 or discharged pursuant to subsection (b) shall be 

17 taken on or before the close of the fifth calendar day 

18 of session of such House after the date on which the 

19 joint resolution is reported to such House or after 

20 the Committee has been discharged from further 

21 consideration of the joint resolution. If prior to the 

22 passage by one House of a joint resolution of that 

23 House, that House received the same joint resolution 

24 from the other House, then— 


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1 (A) the procedure in that House shall be 

2 the same as if no such joint resolution had been 

3 received from the other House, but 

4 (B) the vote on final passage shall be on 

5 the joint resolution of the other House. 

6 When the joint resolution is agreed to, the Clerk of 

7 the House of Representatives (in the case of a 

8 House joint resolution agreed to in the House of 

9 Representatives) or the Secretary of the Senate (in 

10 the case of a Senate joint resolution agreed to in the 

11 Senate) shall cause the joint resolution to be en12 grossed, certified, and transmitted to the other 

13 House of the Congress as soon as practicable. 

14 (2) HOUSE.— 

15 (A) PROCEEDING.—A motion in the House 

16 of Representatives to proceed to the consider17 ation of a joint resolution under this subsection 

18 shall be highly privileged and not debatable. An 

19 amendment to the motion shall not be in order, 

20 nor shall it be in order to move to reconsider 

21 the vote by which the motion is agreed to or 

22 disagreed to. 

23 (B) DEBATE.—Debate in the House of 

24 Representatives on a joint resolution under this 

25 subsection shall be limited to not more than 5 


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1 hours, which shall be divided equally between 

2 those favoring and those opposing the joint res3 olution. A motion to postpone, made in the 

4 House of Representatives with respect to the 

5 consideration of a joint resolution under this 

6 subsection, and a motion to proceed to the con7 sideration of other business, shall not be in 

8 order. A motion further to limit debate shall 

9 not be debatable. It shall not be in order to 

10 move to table or to recommit a joint resolution 

11 under this subsection or to move to reconsider 

12 the vote by which the joint resolution is agreed 

13 to or disagreed to. 

14 (C) APPEALS.—All appeals from the deci15 sions of the Chair relating to the application of 

16 the Rules of the House of Representatives to 

17 the procedure relating to a joint resolution 

18 under this subsection shall be decided without 

19 debate. 

20 (D) FORM OF RESOLUTION.—Except to 

21 the extent specifically provided in this sub22 section or in paragraph (4), consideration of a 

23 joint resolution under this paragraph shall be 

24 governed by the Rules of the House of Rep25 resentatives. 


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1 (3) SENATE.— 

2 (A) PROCEEDING.—A motion in the Sen3 ate to proceed to the consideration of a joint 

4 resolution under this subsection shall be privi5 leged and not debatable. An amendment to the 

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

7 order to move to reconsider the vote by which 

8 the motion is agreed to or disagreed to. 

9 (B) DEBATE.—Debate in the Senate on a 

10 joint resolution under this subsection, and all 

11 debatable motions and appeals in connection 

12 therewith, shall be limited to not more than five 

13 hours. The time shall be equally divided be14 tween, and controlled by, the majority leader 

15 and the minority leader or their designees. 

16 (C) MOTIONS AND APPEALS.—Debate in 

17 the Senate on any debatable motion or appeal 

18 in connection with a joint resolution under this 

19 subsection shall be limited to not more than one 

20 hour, to be equally divided between, and con21 trolled by, the mover and the manager of the 

22 joint resolution, except that in the event the 

23 manager of the joint resolution is in favor of 

24 any such motion or appeal, the time in opposiVerDate Aug 31 2005 22:35 Jul 14, 2006 Jkt 049196 PO 00000 Frm 00071 Fmt 6652 Sfmt 6401 E:\BILLS\S3521.RS S3521

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1 tion thereto shall be controlled by the minority 

2 leader or his designee. 

3 (D) LIMIT DEBATE OR RECOMMIT.—A mo4 tion in the Senate to further limit debate on a 

5 joint resolution under this subsection is not de6 batable. A motion to table or to recommit a 

7 joint resolution under this subsection is not in 

8 order. 

9 (4) NO AMENDMENTS.—No amendment to a 

10 joint resolution considered under this subsection 

11 shall be in order in either the House of Representa12 tives or the Senate. 

13 SEC. 227. EXEMPTIONS FROM SEQUESTRATION. 

14 (a) IN GENERAL.—Except as provided in subsection 

15 (b), all direct spending and outlays flowing therefrom shall 

16 be subject to the sequestration procedures under this sub17 title. 

18 (b) EXCEPTIONS.— 

19 (1) SOCIAL SECURITY BENEFITS AND TIER I

20 RAILROAD RETIREMENT BENEFITS.—Benefits pay21 able under the old-age, survivors, and disability in22 surance program established under title II of the So23 cial Security Act, or in benefits payable under sec24 tion 3(a), 3(f)(3), 4(a), or 4(f) of the Railroad ReVerDate Aug 31 2005 22:35 Jul 14, 2006 Jkt 049196 PO 00000 Frm 00072 Fmt 6652 Sfmt 6401 E:\BILLS\S3521.RS S3521

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1 tirement Act of 1974, shall be exempt from any re2 duction under any order issued under this part. 

3 (2) IN BUDGET.— 

4 (A) PRESIDENT’S BUDGET.—The Presi5 dent shall include in the budget submitted pur6 suant to section 1105 of title 31, United States 

7 Code, exemptions from sequestration procedures 

8 for specific accounts or activities where 

9 amounts are not available for sequestration 

10 (which includes outlays for interest on the pub11 lic debt, outlays for claims against the United 

12 States, outlays for miscellaneous permanent ap13 propriations and outlays for existing contracts.) 

14 (B) JUSTIFICATION.—The President shall 

15 include a justification for each exemption sub16 mitted pursuant to subparagraph (A). 

17 (C) APPLICATION.—The exemptions pro18 vided in paragraph (1) and the exemptions sub19 mitted by the President under this paragraph 

20 shall stand as the only exemptions to sequestra21 tion procedures under this subtitle, unless oth22 erwise provided by law. 


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1 SEC. 228. SUBMISSION OF PRESIDENT’S BUDGET; MAXIMUM 

2 DEFICIT AMOUNT MAY NOT BE EXCEEDED. 

3 Section 1105 of title 31, United States Code, is 

4 amended by adding at the end thereof the following: 

5 ‘‘(i) The budget transmitted pursuant to subsection 

6 (a) for a fiscal year shall be prepared consistent with sec7 tion 257 of the Balanced Budget and Emergency Deficit 

8 Control Act of 1985, in such a manner as to ensure that 

9 the deficit for such fiscal year shall not exceed the max10 imum deficit amount for such fiscal year.’’. 

11 TITLE III—BIENNIAL BUDG12 ETARY AND APPROPRIATIONS 

13 SEC. 301. REVISION OF TIMETABLE. 

14 Section 300 of the Congressional Budget Act of 1974 

15 (2 U.S.C. 631) is amended to read as follows: 

16 ‘‘TIMETABLE

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

18 subsection (b), the timetable with respect to the congres19 sional budget process for any Congress (beginning with 

20 the One Hundred Tenth Congress) is as follows: 

‘‘First Session 

On or before: Action to be completed: 

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

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

to Budget Committees. 

Not later than 6 weeks 

after the biennial budget submission.

Committees submit views and estimates to 

Budget Committees. 

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


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‘‘First Session—Continued 

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. 

August 1 ......................... Congress completes action on reconciliation 

legislation. 

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

......................................... Second Session 

On or before: Action to be completed:

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

Not later than 6 weeks 

after President submits 

budget review.

Congressional Budget Office submits report 

to Budget Committees. 

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

the succeeding biennium. 

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

2 of Congress that begins in any year immediately following 

3 a leap year and during which the term of a President (ex4 cept a President who succeeds himself or herself) begins, 

5 the following dates shall supersede those set forth in sub6 section (a): 

‘‘First Session 

On or before: Action to be completed: 

First Monday in April ..... President submits the biennial 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. 

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

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

August 1 ......................... Congress completes action on reconciliation 

legislation.

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


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1 SEC. 302. AMENDMENTS TO THE CONGRESSIONAL BUDGET 

2 AND IMPOUNDMENT CONTROL ACT OF 1974. 

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

4 Congressional Budget and Impoundment Control Act of 

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

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

7 (b) DEFINITIONS.— 

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

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

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

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

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

14 end the following new paragraph: 

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

16 2 consecutive fiscal years beginning on October 1 of 

17 any odd-numbered year.’’. 

18 (c) BIENNIAL CONCURRENT RESOLUTION ON THE

19 BUDGET.— 

20 (1) SECTION HEADING.—The section heading of 

21 section 301 of such Act is amended by striking ‘‘AN22 NUAL’’ and inserting ‘‘BIENNIAL’’. 

23 (2) CONTENTS OF RESOLUTION.—Section 

24 301(a) of such Act (2 U.S.C. 632(a)) is amended— 

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

26 by— 


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

2 and inserting ‘‘May 15 of each odd-num3 bered year’’; 

4 (ii) striking ‘‘the fiscal year beginning 

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

6 it appears and inserting ‘‘the biennium be7 ginning on October 1 of such year’’; and 

8 (iii) striking ‘‘the fiscal year beginning 

9 on October 1 of such year’’ the second 

10 place it appears and inserting ‘‘each fiscal 

11 year in such period’’; 

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

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

14 in the biennium’’; and 

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

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

17 in the biennium’’. 

18 (3) ADDITIONAL MATTERS.—Section 301(b)(3) 

19 of such Act (2 U.S.C. 632(b)) is amended by strik20 ing ‘‘for such fiscal year’’ and inserting ‘‘for either 

21 fiscal year in such biennium’’. 

22 (4) VIEWS OF OTHER COMMITTEES.—Section 

23 301(d) of such Act (2 U.S.C. 632(d)) is amended by 

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

25 300(b))’’ after ‘‘United States Code’’. 


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

2 (2 U.S.C. 632(e)) is amended by— 

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

4 ‘‘biennium’’; and 

5 (B) inserting after the second sentence the 

6 following: ‘‘On or before April 1 of each odd7 numbered year (or, if applicable, as provided by 

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

9 of each House shall report to its House the con10 current resolution on the budget referred to in 

11 subsection (a) for the biennium beginning on 

12 October 1 of that year.’’. 

13 (6) GOALS FOR REDUCING UNEMPLOYMENT.— 

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

15 amended by striking ‘‘fiscal year’’ each place it ap16 pears and inserting ‘‘biennium’’. 

17 (7) ECONOMIC ASSUMPTIONS.—Section 

18 301(g)(1) of such Act (2 U.S.C. 632(g)(1)) is 

19 amended by striking ‘‘for a fiscal year’’ and insert20 ing ‘‘for a biennium’’. 

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

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

23 section 1(b) of such Act is amended by striking ‘‘An24 nual’’ and inserting ‘‘Biennial’’. 


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

2 Act (2 U.S.C. 633) is amended— 

3 (1) in subsection (a) 

4 (A) in paragraph (1), by— 

5 (i) striking ‘‘for the first fiscal year of 

6 the resolution,’’ and inserting ‘‘for each 

7 fiscal year in the biennium,’’; 

8 (ii) striking ‘‘for that period of fiscal 

9 years’’ and inserting ‘‘for all fiscal years 

10 covered by the resolution’’; and 

11 (iii) striking ‘‘for the fiscal year of 

12 that resolution’’ and inserting ‘‘for each 

13 fiscal year in the biennium’’; and 

14 (B) in paragraph (5), by striking ‘‘April 

15 15’’ and inserting ‘‘May 15 or June 1 (under 

16 section 300(b))’’; 

17 (2) in subsection (b), by striking ‘‘budget year’’ 

18 and inserting ‘‘biennium’’; 

19 (3) in subsection (c) by striking ‘‘for a fiscal 

20 year’’ each place it appears and inserting ‘‘for each 

21 fiscal year in the biennium’’; 

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

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


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1 (5) in subsection (f)(1), by striking ‘‘the first 

2 fiscal year’’ and inserting ‘‘each fiscal year of the bi3 ennium’’; 

4 (6) in subsection (f)(2)(A), by— 

5 (A) striking ‘‘the first fiscal year’’ and in6 serting ‘‘each fiscal year of the biennium’’; and 

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

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

9 the resolution’’; and 

10 (7) in subsection (g)(1)(A), by striking ‘‘April’’ 

11 and inserting ‘‘May’’. 

12 (e) SECTION 303 POINT OF ORDER.— 

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

14 (2 U.S.C. 634(a)) is amended by— 

15 (A) striking ‘‘the first fiscal year’’ and in16 serting ‘‘each fiscal year of the biennium’’; and 

17 (B) striking ‘‘that fiscal year’’ each place 

18 it appears and inserting ‘‘that biennium’’. 

19 (2) EXCEPTIONS IN THE HOUSE.—Section 

20 303(b)(1) of such Act (2 U.S.C. 634(b)) is amend21 ed— 

22 (A) in subparagraph (A), by striking ‘‘the 

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

24 and 


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1 (B) in subparagraph (B), by striking ‘‘the 

2 fiscal year’’ and inserting ‘‘the biennium’’. 

3 (3) APPLICATION TO THE SENATE.—Section 

4 303(c)(1) of such Act (2 U.S.C. 634(c)) is amended 

5 by— 

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

7 ‘‘biennium’’; and 

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

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

10 (f) PERMISSIBLE REVISIONS OF CONCURRENT RESO11 LUTIONS ON THE BUDGET.—Section 304 of such Act (2 

12 U.S.C. 635) is amended— 

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

14 it appears and inserting ‘‘biennium’’; and 

15 (2) by striking ‘‘for such fiscal year’’ and in16 serting ‘‘for such biennium’’. 

17 (g) PROCEDURES FOR CONSIDERATION OF BUDGET

18 RESOLUTIONS.—Section 305 of such Act (2 U.S.C. 

19 636(3)) is amended— 

20 (1) in subsection (a)(3), by striking ‘‘fiscal 

21 year’’ and inserting ‘‘biennium’’; and 

22 (2) in subsection (b)(3), by striking ‘‘fiscal 

23 year’’ and inserting ‘‘biennium’’. 


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1 (h) COMPLETION OF HOUSE ACTION ON APPROPRIA2 TION BILLS.—Section 307 of such Act (2 U.S.C. 638) is 

3 amended— 

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

5 odd-numbered year’’; 

6 (2) by striking ‘‘annual’’ and inserting ‘‘bien7 nial’’; 

8 (3) by striking ‘‘fiscal year’’ and inserting ‘‘bi9 ennium’’; and 

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

11 odd-numbered year’’. 

12 (i) COMPLETION OF ACTION ON REGULAR APPRO13 PRIATION BILLS.—Section 309 of such Act (2 U.S.C. 

14 640) is amended— 

15 (1) by inserting ‘‘of any odd-numbered calendar 

16 year’’ after ‘‘July’’; 

17 (2) by striking ‘‘annual’’ and inserting ‘‘bien18 nial’’; and 

19 (3) by striking ‘‘fiscal year’’ and inserting ‘‘bi20 ennium’’. 

21 (j) RECONCILIATION PROCESS.—Section 310(a) of 

22 such Act (2 U.S.C. 641(a)) is amended— 

23 (1) in the matter preceding paragraph (1), by 

24 striking ‘‘any fiscal year’’ and inserting ‘‘any bien25 nium’’; and 


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1 (2) in paragraph (1) by striking ‘‘such fiscal 

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

3 year covered by such resolution’’. 

4 (k) SECTION 311 POINT OF ORDER.— 

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

6 Act (2 U.S.C. 642(a)) is amended— 

7 (A) by striking ‘‘for a fiscal year’’ and in8 serting ‘‘for a biennium’’; 

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

10 place it appears and inserting ‘‘either fiscal 

11 year of the biennium’’; and 

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

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

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

15 such Act is amended— 

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

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

18 fiscal year of the biennium’’; and 

19 (B) in subparagraph (B)— 

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

21 the first place it appears and inserting 

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

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

24 and the ensuing fiscal years’’ and inserting 

25 ‘‘all fiscal years’’. 


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1 (3) SOCIAL SECURITY LEVELS.—Section 

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

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

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

5 and 

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

8 years’’. 

9 (l) MAXIMUM DEFICIT AMOUNT POINT OF ORDER.— 

10 Section 312(c) of the Congressional Budget Act of 1974 

11 (2 U.S.C. 643) is amended— 

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

13 ‘‘for a biennium’’; 

14 (2) in paragraph (1), by striking ‘‘the first fis15 cal year’’ and inserting ‘‘either fiscal year in the bi16 ennium’’; 

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

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

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

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


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1 SEC. 303. AMENDMENTS TO TITLE 31, UNITED STATES 

2 CODE. 

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

4 States Code, is amended by adding at the end thereof the 

5 following new paragraph: 

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

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

9 1974 (2 U.S.C. 622(11)).’’. 

10 (b) BUDGET CONTENTS AND SUBMISSION TO THE

11 CONGRESS.— 

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

14 States Code, is amended to read as follows: 

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

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

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

18 beginning with the One Hundred Tenth Congress, the 

19 President shall transmit to the Congress, the budget for 

20 the biennium beginning on October 1 of such calendar 

21 year. The budget of the United States Government trans22 mitted under this subsection shall include a budget mes23 sage and summary and supporting information. The 

24 President shall include in each budget the following:’’. 

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

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


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

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

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

4 budget is submitted and in the succeeding 4 fiscal 

5 years’’. 

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

7 United States Code, is amended by striking ‘‘the fis8 cal year for which the budget is submitted and the 

9 4 fiscal years after that year’’ and inserting ‘‘each 

10 fiscal year in the biennium for which the budget is 

11 submitted and in the succeeding 4 years’’. 

12 (4) BALANCE STATEMENTS.—Section 

13 1105(a)(9)(C) of title 31, United States Code, is 

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

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

16 (5) FUNCTIONS AND ACTIVITIES.—Section 

17 1105(a)(12) of title 31, United States Code, is 

18 amended in subparagraph (A), by striking ‘‘the fis19 cal year’’ and inserting ‘‘each fiscal year in the bien20 nium’’. 

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

22 31, United States Code, is amended by striking ‘‘the 

23 fiscal year’’ and inserting ‘‘each fiscal year in the bi24 ennium’’. 


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1 (7) ALLOWANCES FOR UNCONTROLLED EX2 PENDITURES.—Section 1105(a)(14) of title 31, 

3 United States Code, is amended by striking ‘‘that 

4 year’’ and inserting ‘‘each fiscal year in the bien5 nium for which the budget is submitted’’. 

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

7 of title 31, United States Code, is amended by strik8 ing ‘‘the fiscal year’’ and inserting ‘‘each fiscal year 

9 in the biennium’’. 

10 (9) FUTURE YEARS.—Section 1105(a)(17) of 

11 title 31, United States Code, is amended— 

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

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

14 in the biennium following the biennium’’; 

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

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

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

20 (10) PRIOR YEAR OUTLAYS.—Section 

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

22 amended— 

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

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


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

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

5 (11) PRIOR YEAR RECEIPTS.—Section 

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

7 amended— 

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

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

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

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

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

15 (c) ESTIMATED EXPENDITURES OF LEGISLATIVE

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

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

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

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

21 Code, is amended— 

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

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

24 the biennium for’’; 


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

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

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

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

5 ‘‘for each fiscal year of the biennium’’. 

6 (e) CAPITAL INVESTMENT ANALYSIS.—Section 

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

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

9 to which such budget relates’’. 

10 (f) SUPPLEMENTAL BUDGET ESTIMATES AND

11 CHANGES.— 

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

13 United States Code, is amended— 

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

15 by— 

16 (i) inserting after ‘‘Before July 16 of 

17 each year’’ the following: ‘‘and February 

18 15 of each even-numbered year’’; and 

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

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

23 such biennium’’; 

24 (C) in paragraph (2), by striking ‘‘fiscal 

25 year’’ and inserting ‘‘biennium’’; and 


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

2 year’’ and inserting ‘‘biennium’’. 

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

4 United States Code, is amended by— 

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

6 ‘‘each fiscal year in the biennium’’; 

7 (B) inserting after ‘‘Before July 16 of each 

8 year’’ the following: ‘‘and February 15 of each 

9 even-numbered year’’; and 

10 (C) striking ‘‘submitted before July 16’’ 

11 and inserting ‘‘required by this subsection’’. 

12 (g) CURRENT PROGRAMS AND ACTIVITIES ESTI13 MATES.— 

14 (1) IN GENERAL.—Section 1109(a) of title 31, 

15 United States Code, is amended— 

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

17 Monday after January 3 of each year (on or be18 fore February 5 in 1986)’’ and inserting ‘‘At 

19 the same time the budget required by section 

20 1105 is submitted for a biennium’’; and 

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

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

23 (2) JOINT ECONOMIC COMMITTEE.—Section 

24 1109(b) of title 31, United States Code, is amended 

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


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1 ‘‘within 6 weeks of the President’s budget submis2 sion for each odd-numbered year (or, if applicable, 

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

4 Budget Act of 1974)’’. 

5 (h) YEAR-AHEAD REQUESTS FOR AUTHORIZING

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

7 Code, is amended by— 

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

9 31’’; and 

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

11 fiscal year begins’’ and inserting ‘‘calendar year pre12 ceding the calendar year in which the biennium be13 gins’’. 

14 SEC. 304. TWO-YEAR APPROPRIATIONS; TITLE AND STYLE 

15 OF APPROPRIATIONS ACTS. 

16 Section 105 of title 1, United States Code, is amend17 ed to read as follows: 

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

19 ‘‘(a) The style and title of all Acts making appropria20 tions for the support of the Government shall be as fol21 lows: ‘An Act making appropriations (here insert the ob22 ject) for each fiscal year in the biennium of fiscal years 

23 (here insert the fiscal years of the biennium).’. 

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

25 support of the Government shall be enacted for a biennium 


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1 and shall specify the amount of appropriations provided 

2 for each fiscal year in such period. 

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

4 has the same meaning as in section 3(11) of the Congres5 sional Budget and Impoundment Control Act of 1974 (2 

6 U.S.C. 622(11)).’’. 

7 SEC. 305. MULTIYEAR AUTHORIZATIONS. 

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

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

10 following new section: 

11 ‘‘AUTHORIZATIONS OF APPROPRIATIONS

12 ‘‘SEC. 316. (a) POINT OF ORDER.—It shall not be 

13 in order in the House of Representatives or the Senate 

14 to consider— 

15 ‘‘(1) any bill, joint resolution, amendment, mo16 tion, or conference report that authorizes appropria17 tions for a period of less than 2 fiscal years, unless 

18 the program, project, or activity for which the ap19 propriations are authorized will require no further 

20 appropriations and will be completed or terminated 

21 after the appropriations have been expended; and 

22 ‘‘(2) in any odd-numbered year, any authoriza23 tion or revenue bill or joint resolution until Congress 

24 completes action on the biennial budget resolution, 

25 all regular biennial appropriations bills, and all rec26 onciliation bills. 


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1 ‘‘(b) APPLICABILITY.—In the Senate, subsection (a) 

2 shall not apply to— 

3 ‘‘(1) any measure that is privileged for consid4 eration pursuant to a rule or statute; 

5 ‘‘(2) any matter considered in Executive Ses6 sion; or 

7 ‘‘(3) an appropriations measure or reconcili8 ation bill.’’. 

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

10 table of contents set forth in section 1(b) of the Congres11 sional Budget and Impoundment Control Act of 1974 is 

12 amended by adding after the item relating to section 315 

13 the following new item: 

‘‘Sec. 316. Authorizations of appropriations.’’. 

14 SEC. 306. GOVERNMENT PLANS ON A BIENNIAL BASIS. 

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

16 United States Code, is amended— 

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

18 30, 1997’’ and inserting ‘‘September 30, 2007’’; 

19 (2) in subsection (b)— 

20 (A) by striking ‘‘five years forward’’ and 

21 inserting ‘‘6 years forward’’; 

22 (B) by striking ‘‘at least every three years’’ 

23 and inserting ‘‘at least every 4 years’’; and 

24 (C) by striking beginning with ‘‘, except 

25 that’’ through ‘‘four years’’; and 


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

2 after ‘‘section’’ the second place it appears and add3 ing ‘‘including a strategic plan submitted by Sep4 tember 30, 2007 meeting the requirements of sub5 section (a)’’. 

6 (b) BUDGET CONTENTS AND SUBMISSION TO CON7 GRESS.—Paragraph (28) of section 1105(a) of title 31, 

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

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

10 fiscal year 2008, a biennial’’. 

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

12 United States Code, is amended— 

13 (1) in subsection (a)— 

14 (A) in the matter before paragraph (1) by 

15 striking ‘‘an annual’’ and inserting ‘‘a bien16 nial’’; 

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

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

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

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

21 after the semicolon, 

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

23 and inserting a semicolon; and inserting ‘‘and’’ 

24 after the inserted semicolon; and 


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1 (E) by adding after paragraph (6) the fol2 lowing: 

3 ‘‘(7) cover a 2-year period beginning with the 

4 first fiscal year of the next biennial budget cycle.’’; 

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

6 inserting ‘‘biennial’’; and 

7 (3) in paragraph (6) of subsection (g) by strik8 ing ‘‘annual’’ and inserting ‘‘biennial’’. 

9 (d) MANAGERIAL ACCOUNTABILITY AND FLEXI10 BILITY.—Section 9703 of title 31, United States Code, re11 lating to managerial accountability, is amended— 

12 (1) in subsection (a)— 

13 (A) in the first sentence by striking ‘‘an14 nual’’; and 

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

16 inserting ‘‘section 1105(a)(28)’’; 

17 (2) in subsection (e)— 

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

19 or’’ before ‘‘years’’; 

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

21 subsequent year’’ and inserting ‘‘a subsequent 

22 2-year period’’; and 

23 (C) in the third sentence by striking 

24 ‘‘three’’ and inserting ‘‘4’’. 


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1 (e) PILOT PROJECTS FOR PERFORMANCE BUDG2 ETING.—Section 1119 of title 31, United States Code, is 

3 amended— 

4 (1) in paragraph (1) of subsection (d), by strik5 ing ‘‘annual’’ and inserting ‘‘biennial’’; and 

6 (2) in subsection (e), by striking ‘‘annual’’ and 

7 inserting ‘‘biennial’’. 

8 (f) STRATEGIC PLANS.—Section 2802 of title 39, 

9 United States Code, is amended— 

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

11 30, 1997’’ and inserting ‘‘September 30, 2005’’; 

12 (2) in subsection (b), by striking ‘‘five years 

13 forward’’ and inserting ‘‘6 years forward’’; 

14 (3) in subsection (b), by striking ‘‘at least every 

15 three years’’ and inserting ‘‘at least every 4 years’’; 

16 and 

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

18 after ‘‘section’’ the second place it appears and in19 serting ‘‘including a strategic plan submitted by 

20 September 30, 2005 meeting the requirements of 

21 subsection (a)’’. 

22 (g) PERFORMANCE PLANS.—Section 2803(a) of title 

23 39, United States Code, is amended— 

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

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


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1 (2) in paragraph (1), by inserting after ‘‘pro2 gram activity’’ the following: ‘‘for both years 1 and 

3 2 of the biennial plan’’; 

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

5 the semicolon; 

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

7 inserting ‘‘; and’’; and 

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

9 ‘‘(7) cover a 2-year period beginning with the 

10 first fiscal year of the next biennial budget cycle.’’. 

11 (h) COMMITTEE VIEWS OF PLANS AND REPORTS.— 

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

13 632(d)) is amended by adding at the end ‘‘Each committee 

14 of the Senate or the House of Representatives shall review 

15 the strategic plans, performance plans, and performance 

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

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

18 United States Code, of all agencies under the jurisdiction 

19 of the committee. Each committee may provide its views 

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

21 of the applicable House.’’. 

22 (i) EFFECTIVE DATE.— 

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

24 this section shall take effect on the date of enact25 ment of this Act. 


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

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

3 take such actions as necessary to prepare and sub4 mit any plan or report in accordance with the 

5 amendments made by this Act. 

6 SEC. 307. BIENNIAL APPROPRIATION BILLS. 

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

8 Budget Act of 1974 (2 U.S.C. 631 et seq.) is amended 

9 by adding at the end the following: 

10 ‘‘CONSIDERATION OF BIENNIAL APPROPRIATIONS BILLS

11 ‘‘SEC. 317. It shall not be in order in the House of 

12 Representatives or the Senate in any odd-numbered year 

13 to consider any regular bill providing new budget authority 

14 or a limitation on obligations under the jurisdiction of any 

15 of the subcommittees of the Committees on Appropria16 tions for only the first fiscal year of a biennium, unless 

17 the program, project, or activity for which the new budget 

18 authority or obligation limitation is provided will require 

19 no additional authority beyond 1 year and will be com20 pleted or terminated after the amount provided has been 

21 expended.’’. 

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

23 table of contents set forth in section 1(b) of the Congres24 sional Budget and Impoundment Control Act of 1974 is 


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1 amended by adding after the item relating to section 316 

2 the following new item: 

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

3 SEC. 308. REPORT ON CHANGES IN LAW. 

4 Not later than 60 days after the date of enactment 

5 of this Act, the Director of OMB shall report to the Com6 mittees on the Budget of the House of Representatives 

7 and the Senate any changes in law to the Congressional 

8 Budget Act of 1974 and the provisions of this Act required 

9 to conform with a biennial budget process. 

10 SEC. 309. EFFECTIVE DATE. 

11 Except as provided in sections 306 and 308, this title 

12 and the amendments made by this Act shall take effect 

13 on January 1, 2007, and shall apply to budget resolutions 

14 and appropriations for the biennium beginning with fiscal 

15 year 2008. 

16 TITLE IV—COMMISSIONS 

17 Subtitle A—National Commission 

18 on Entitlement Solvency 

19 SEC. 401. DEFINITIONS. 

20 In this subtitle: 

21 (1) ADMINISTRATOR.—The term ‘‘Adminis22 trator’’ means the Administrator of the Centers for 

23 Medicare & Medicaid Services. 

24 (2) CALENDAR DAY.—The term ‘‘calendar day’’ 

25 means a calendar day other than 1 in which either 


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1 House is not in session because of an adjournment 

2 of more than 3 days to a date certain. 

3 (3) COMMISSION.—The term ‘‘Commission’’ 

4 means the National Commission on Entitlement Sol5 vency established under section 402(a). 

6 (4) COMMISSION BILL.—The term ‘‘Commission 

7 bill’’ means a bill consisting of the proposed legisla8 tive language provisions of the Commission intro9 duced under section 403(a). 

10 (5) COMMISSIONER.—The term ‘‘Commis11 sioner’’ means the Commissioner of Social Security. 

12 (6) LONG-TERM.—The term ‘‘long-term’’ means 

13 a period of not less than 75 years beginning on the 

14 date of enactment of this Act. 

15 (7) MEDICAID.—The term ‘‘Medicaid’’ means 

16 the program established under title XIX of the So17 cial Security Act (42 U.S.C. 1396 et seq.) 

18 (8) MEDICARE.—The term ‘‘Medicare’’ means 

19 the program established under title XVIII of the So20 cial Security Act (42 U.S.C. 1395 et seq.). 

21 (9) SOCIAL SECURITY.—The term ‘‘Social Secu22 rity’’ means the program of old-age, survivors, and 

23 disability insurance benefits established under title 

24 II of the Social Security Act (42 U.S.C. 401 et 

25 seq.). 


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1 (10) SOLVENCY.—The term ‘‘solvency’’ 

2 means— 

3 (A) in relation to Social Security, any year 

4 in which the balance ratio (as defined under 

5 section 709(b) of the Social Security Act (42 

6 U.S.C. 910(b)) of the Federal Old-Age and 

7 Survivors Insurance Trust Fund and the Fed8 eral Disability Insurance Trust Fund estab9 lished under section 201 of the Social Security 

10 Act (42 U.S.C. 401) is greater than zero; 

11 (B) in relation to the Medicare program, 

12 any year in which there is not excess general 

13 revenue medicare funding (as defined in section 

14 801(c)(1) of the Medicare Prescription Drug, 

15 Improvement, and Modernization Act of 2003 

16 (Public Law 108–173; 117 Stat. 2358)); and 

17 (C) In relation to Medicaid, any year after 

18 2012 in which Gross Domestic Product growth 

19 is greater than zero and growth in total Med20 icaid spending does not exceed growth in Gross 

21 Domestic Product. 

22 SEC. 402. ESTABLISHMENT OF COMMISSION. 

23 (a) ESTABLISHMENT.—There is established a com24 mission to be known as the ‘‘National Commission on En25 titlement Solvency’’. 


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1 (b) PURPOSE.—The Commission shall conduct a 

2 comprehensive review of the Social Security, Medicare, 

3 and Medicaid programs for the following purposes: 

4 (1) REVIEW.—Reviewing relevant analyses of 

5 the current and long-term actuarial financial condi6 tion of the Social Security, Medicare, and Medicaid 

7 programs. 

8 (2) IDENTIFYING PROBLEMS.—Identifying 

9 problems that may threaten the long-term solvency 

10 of the Social Security, Medicare, and Medicaid pro11 grams. 

12 (3) ANALYZING POTENTIAL SOLUTIONS.—Ana13 lyzing potential solutions to problems that threaten 

14 the long-term solvency of the Social Security, Medi15 care, and Medicaid programs. 

16 (4) PROVIDING RECOMMENDATIONS.—Providing 

17 recommendations that will ensure the long-term sol18 vency of the Social Security, Medicare, and Medicaid 

19 programs and the provision of appropriate benefits. 

20 (c) DUTIES.— 

21 (1) IN GENERAL.—The Commission shall con22 duct a comprehensive review of the Social Security, 

23 Medicare, and Medicaid programs consistent with 

24 the purposes described in subsection (b) and shall 

25 submit the report required under paragraph (2). 


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1 (2) REPORT AND RECOMMENDATIONS.— 

2 (A) IN GENERAL.—Not later than May 1, 

3 2007, the Commission shall submit a report on 

4 the long-term solvency of the Social Security, 

5 Medicare, and Medicaid programs that contains 

6 a detailed statement of the findings, conclu7 sions, and recommendations of the Commission 

8 to the President, Congress, the Commissioner, 

9 and the Administrator. 

10 (B) FINDINGS, CONCLUSIONS, AND REC11 OMMENDATIONS.—A finding, conclusion, or rec12 ommendation of the Commission shall be in13 cluded in the report under subparagraph (A) 

14 only if not less than 10 members of the Com15 mission voted for such finding, conclusion, or 

16 recommendation. 

17 (C) LEGISLATIVE LANGUAGE.—If a rec18 ommendation submitted under subparagraph 

19 (A) involves legislative action, the report shall 

20 include proposed legislative language to carry 

21 out such action. 

22 (d) MEMBERSHIP.— 

23 (1) NUMBER AND APPOINTMENT.—The Com24 mission shall be composed of 15 members of 

25 whom— 


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1 (A) 3 shall be appointed by the President; 

2 (B) 3 shall be appointed by the majority 

3 leader of the Senate; 

4 (C) 3 shall be appointed by the minority 

5 leader of the Senate; 

6 (D) 3 shall be appointed by the Speaker of 

7 the House of Representatives; and 

8 (E) 3 shall be appointed by the minority 

9 leader of the House of Representatives. 

10 (2) CO-CHAIRPERSONS.—The President shall 

11 designate 2 Co-chairpersons from among the mem12 bers of the Commission appointed under paragraph 

13 (1). The Co-chairpersons may not be affiliated with 

14 the same political party. 

15 (3) DATE.—Members of the Commission shall 

16 be appointed by not later than 30 days after the 

17 date of enactment of this Act. 

18 (4) PERIOD OF APPOINTMENT.—Members shall 

19 be appointed for the life of the Commission. Any va20 cancy in the Commission shall not affect its powers, 

21 but shall be filled in the same manner as the origi22 nal appointment. 

23 (5) TERMINATION.—The Commission shall ter24 minate on the date that is 90 days after the ComVerDate Aug 31 2005 22:35 Jul 14, 2006 Jkt 049196 PO 00000 Frm 00104 Fmt 6652 Sfmt 6401 E:\BILLS\S3521.RS S3521

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1 mission submits the report required under sub2 section (c)(2). 

3 (e) ADMINISTRATION.— 

4 (1) QUORUM.—Eight members of the Commis5 sion shall constitute a quorum for purposes of vot6 ing, but a quorum is not required for members to 

7 meet and hold hearings. 

8 (2) MEETINGS.—The Commission shall meet at 

9 the call of the Chairpersons or a majority of its 

10 members. 

11 (3) HEARINGS.—The Commission may, for the 

12 purpose of carrying out this subtitle— 

13 (A) hold such hearings, sit and act at such 

14 times and places, take such testimony, receive 

15 such evidence, and administer such oaths the 

16 Commission considers advisable; 

17 (B) require, by subpoena or otherwise, the 

18 attendance and testimony of such witnesses the 

19 Commission considers advisable; and 

20 (C) require, by subpoena or otherwise, the 

21 production of such books, records, correspond22 ence, memoranda, papers, documents, tapes, 

23 and other evidentiary materials relating to any 

24 matter under investigation by the Commission. 

25 (4) SUBPOENAS.— 


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1 (A) ISSUANCE.— 

2 (i) IN GENERAL.—A subpoena may be 

3 issued under this subsection only— 

4 (I) by the agreement of the Co5 chairpersons; or 

6 (II) by the affirmative vote of 8 

7 members of the Commission. 

8 (ii) SIGNATURE.—Subpoenas issued 

9 under this subsection may be issued under 

10 the signature of both Co-chairpersons of 

11 the Commission and may be served by any 

12 person designated by the chairman or by a 

13 member designated by a majority of the 

14 Commission. 

15 (B) ENFORCEMENT.—In the case of contu16 macy or failure to obey a subpoena issued 

17 under this subsection, the United States district 

18 court for the judicial district in which the sub19 poenaed person resides, is served, or may be 

20 found, may issue an order requiring such per21 son to appear at any designated place to testify 

22 or to produce documentary or other evidence. 

23 Any failure to obey the order of the court may 

24 be punished by the court as a contempt of that 

25 court. 


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1 (5) COMPENSATION.—Members of the Commis2 sion shall serve without any additional compensation 

3 for their work on the Commission. However, mem4 bers may be allowed travel expenses, including per 

5 diem in lieu of subsistence, in accordance with sec6 tions 5702 and 5703 of title 5, United States Code, 

7 while away from their homes or regular places of 

8 business in performance of services for the Commis9 sion. 

10 (6) STAFF.— 

11 (A) DIRECTOR.—The Commission shall 

12 have a staff headed by an Executive Director. 

13 (B) STAFF APPOINTMENT.—The Executive 

14 Director may appoint such personnel as the Ex15 ecutive Director and the Commission deter16 mines to be appropriate. 

17 (C) ACTUARIAL EXPERTS AND CONSULT18 ANTS.—With the approval of the Commission, 

19 the Executive Director may procure temporary 

20 and intermittent services under section 3109(b) 

21 of title 5, United States Code. 

22 (D) FEDERAL AGENCIES.— 

23 (i) DETAIL OF GOVERNMENT EMPLOY24 EES.—Upon the request of the Commis25 sion, the head of any Federal agency may 


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1 detail, without reimbursement by the Com2 mission, any of the personnel of such agen3 cy to the Commission to assist in carrying 

4 out the duties of the Commission. Any 

5 such detail shall not interrupt or otherwise 

6 affect the civil service status or privileges 

7 of the Federal employee. 

8 (ii) TECHNICAL ASSISTANCE.—Upon 

9 the request of the Commission, the head of 

10 a Federal agency shall provide such tech11 nical assistance to the Commission as the 

12 Commission determines to be necessary to 

13 carry out its duties. 

14 (E) RESOURCES.—The Commission shall 

15 have reasonable access to materials, resources, 

16 statistical data, and other information the Com17 mission determines to be necessary to carry out 

18 its duties from the Library of Congress, the 

19 Chief Actuary of Social Security, the Chief Ac20 tuary of the Centers for Medicare & Medicaid 

21 Services, the Congressional Budget Office, and 

22 other agencies and representatives of the execu23 tive and legislative branches of the Federal 

24 Government. The Chairpersons shall make reVerDate Aug 31 2005 22:35 Jul 14, 2006 Jkt 049196 PO 00000 Frm 00108 Fmt 6652 Sfmt 6401 E:\BILLS\S3521.RS S3521

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1 quests for such access in writing when nec2 essary. 

3 (f) FUNDING.—The Commission shall receive, from 

4 amounts appropriated to the Commissioner and the Ad5 ministrator, respectively, for fiscal year 2007 for adminis6 trative expenses, such sums as are necessary to carry out 

7 the purposes of this section. 

8 SEC. 403. EXPEDITED CONSIDERATION OF COMMISSION 

9 RECOMMENDATIONS. 

10 (a) INTRODUCTION AND COMMITTEE CONSIDER11 ATION.— 

12 (1) INTRODUCTION.—The aggregate legislative 

13 language provisions submitted pursuant to section 

14 402(c)(2)(C) shall be combined into a Commission 

15 bill and shall be introduced in the Senate by the ma16 jority leader, or the majority leader’s designee, and 

17 in the House of Representatives, by the Speaker, or 

18 the Speaker’s designee. Upon such introduction, the 

19 Commission bill shall be referred to the appropriate 

20 committees of Congress under paragraph (2). If the 

21 Commission bill is not introduced in accordance with 

22 the preceding sentence, then any member of Con23 gress may introduce the Commission bill in their re24 spective House of Congress beginning on the date 

25 that is the 5th calendar day that such House is in 


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1 session following the date of the submission of such 

2 aggregate legislative language provisions. 

3 (2) COMMITTEE CONSIDERATION.— 

4 (A) REFERRAL.—A Commission bill intro5 duced in the Senate shall be referred to the 

6 Committee on Finance of the Senate. A Com7 mission bill introduced in the House of Rep8 resentatives shall be referred to the Committee 

9 on Ways and Means and the Committee on En10 ergy and Commerce of the House of Represent11 atives. 

12 (B) REPORTING.—Not later than 30 cal13 endar days after the introduction of the Com14 mission bill, each Committee of Congress to 

15 which the Commission bill was referred shall re16 port the bill or a committee amendment thereto. 

17 (C) DISCHARGE OF COMMITTEE.—If a 

18 committee to which is referred a Commission 

19 bill has not reported such Commission bill at 

20 the end of 30 calendar days after its introduc21 tion or at the end of the first day after there 

22 has been reported to the House involved a Com23 mission bill, whichever is earlier, such com24 mittee shall be deemed to be discharged from 

25 further consideration of such Commission bill, 


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1 and such Commission bill shall be placed on the 

2 appropriate calendar of the House involved. 

3 (b) EXPEDITED PROCEDURE.— 

4 (1) CONSIDERATION.— 

5 (A) IN GENERAL.—Not later than 7 cal6 endar days after the date on which a committee 

7 has been discharged from consideration of a 

8 Commission bill, the majority leader of the Sen9 ate, or the majority leader’s designee, or the 

10 Speaker of the House of Representatives, or the 

11 Speaker’s designee, shall move to proceed to the 

12 consideration of the committee amendment to 

13 the Commission bill, and if there is no such 

14 amendment, to the Commission bill. It shall 

15 also be in order for any member of the Senate 

16 or the House of Representatives, respectively, to 

17 move to proceed to the consideration of the 

18 Commission bill at any time after the conclu19 sion of such 7-day period. 

20 (B) MOTION TO PROCEED.—A motion to 

21 proceed to the consideration of a Commission 

22 bill is highly privileged in the House of Rep23 resentatives and is privileged in the Senate and 

24 is not debatable. The motion is not subject to 

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1 ation of the Commission bill, or to a motion to 

2 proceed to the consideration of other business. 

3 A motion to reconsider the vote by which the 

4 motion to proceed is agreed to or not agreed to 

5 shall not be in order. If the motion to proceed 

6 is agreed to, the Senate or the House of Rep7 resentatives, as the case may be, shall imme8 diately proceed to consideration of the Commis9 sion bill without intervening motion, order, or 

10 other business, and the Commission bill shall 

11 remain the unfinished business of the Senate or 

12 the House of Representatives, as the case may 

13 be, until disposed of. 

14 (C) LIMITED DEBATE.—Debate on the 

15 Commission bill and all amendments thereto 

16 and on all debatable motions and appeals in 

17 connection therewith shall be limited to not 

18 more than 50 hours, which shall be divided 

19 equally between those favoring and those oppos20 ing the Commission bill. A motion further to 

21 limit debate on the Commission bill is in order 

22 and is not debatable. All time used for consider23 ation of the Commission bill, including time 

24 used for quorum calls (except quorum calls imVerDate Aug 31 2005 22:35 Jul 14, 2006 Jkt 049196 PO 00000 Frm 00112 Fmt 6652 Sfmt 6401 E:\BILLS\S3521.RS S3521

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1 mediately preceding a vote) and voting, shall 

2 come from the 50 hours of debate. 

3 (D) AMENDMENTS.—No amendment that 

4 is not germane to the provisions of the Commis5 sion bill shall be in order in the Senate. In the 

6 Senate, an amendment, any amendment to an 

7 amendment, or any debatable motion or appeal 

8 is debatable for not to exceed 1 hour to be di9 vided equally between those favoring and those 

10 opposing the amendment, motion, or appeal. 

11 (E) VOTE ON FINAL PASSAGE.—Imme12 diately following the conclusion of the debate on 

13 the Commission bill, the disposition of any 

14 pending amendments under subparagraph (D), 

15 and a request to establish the presence of a 

16 quorum, the vote on final passage of the Com17 mission bill shall occur. 

18 (F) OTHER MOTIONS NOT IN ORDER.—A 

19 motion to postpone consideration of the Com20 mission bill, a motion to proceed to the consid21 eration of other business, or a motion to recom22 mit the Commission bill is not in order. A mo23 tion to reconsider the vote by which the Com24 mission bill is agreed to or not agreed to is not 

25 in order. 


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1 (2) CONSIDERATION BY OTHER HOUSE.—If, be2 fore the passage by one House of the Commission 

3 bill that was introduced in such House, such House 

4 receives from the other House a Commission bill as 

5 passed by such other House— 

6 (A) the Commission bill of the other House 

7 shall not be referred to a committee and may 

8 only be considered for final passage in the 

9 House that receives it under subparagraph (C); 

10 (B) the procedure in the House in receipt 

11 of the Commission bill of the other House, with 

12 respect to the Commission bill that was intro13 duced in the House in receipt of the Commis14 sion bill of the other House, shall be the same 

15 as if no Commission bill had been received from 

16 the other House; and 

17 (C) notwithstanding subparagraph (B), the 

18 vote on final passage shall be on the Commis19 sion bill of the other House. 

20 Upon disposition of a Commission bill that is re21 ceived by one House from the other House, it shall 

22 no longer be in order to consider the Commission bill 

23 that was introduced in the receiving House. 

24 (3) CONSIDERATION IN CONFERENCE.— 


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1 (A) CONVENING OF CONFERENCE.—Imme2 diately upon final passage of a Commission bill 

3 that results in a disagreement between the two 

4 Houses of Congress with respect to a Commis5 sion bill, conferees shall be appointed and a 

6 conference convened. 

7 (B) ACTION ON CONFERENCE REPORTS IN

8 THE SENATE.— 

9 (i) MOTION TO PROCEED.—The mo10 tion to proceed to consideration in the Sen11 ate of the conference report on a Commis12 sion bill may be made even though a pre13 vious motion to the same effect has been 

14 disagreed to. 

15 (ii) DEBATE.—During the consider16 ation in the Senate of the conference re17 port (including a message between Houses) 

18 on a Commission bill, and all amendments 

19 in disagreement, including all amendments 

20 thereto, and debatable motions and appeals 

21 in connection therewith, consideration shall 

22 be limited to 20 hours, equally divided and 

23 controlled by the majority leader and the 

24 minority leader or their designees. Debate 

25 on any debatable motion or appeal related 


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1 to the conference report (or a message be2 tween Houses) shall be limited to 1 hour, 

3 to be equally divided between, and con4 trolled by, the mover and the manager of 

5 the conference report (or a message be6 tween Houses). 

7 (iii) CONFERENCE REPORT DE8 FEATED.—Should the conference report be 

9 defeated, debate on any request for a new 

10 conference and the appointment of con11 ferees shall be limited to 1 hour, to be 

12 equally divided between, and controlled by, 

13 the manager of the conference report and 

14 the minority leader or the minority leader’s 

15 designee, and should any motion be made 

16 to instruct the conferees before the con17 ferees are named, debate on such motion 

shall be limited to 1 18 ⁄2 hour, to be equally 

19 divided between, and controlled by, the 

20 mover and the manager of the conference 

21 report. Debate on any amendment to any 

22 such instructions shall be limited to 20 

23 minutes, to be equally divided between and 

24 controlled by the mover and the manager 

25 of the conference report. In all cases when 


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1 the manager of the conference report is in 

2 favor of any motion, appeal, or amend3 ment, the time in opposition shall be under 

4 the control of the minority leader or the 

5 minority leader’s designee. 

6 (iv) AMENDMENTS IN DISAGREE7 MENT.—In any case in which there are 

8 amendments in disagreement, time on each 

9 amendment shall be limited to 30 minutes, 

10 to be equally divided between, and con11 trolled by, the manager of the conference 

12 report and the minority leader or the mi13 nority leader’s designee. No amendment 

14 that is not germane to the provisions of 

15 such amendments shall be received. 

16 (v) LIMITATION ON MOTION TO RE17 COMMIT.—A motion to recommit the con18 ference report is not in order. 

19 (c) RULES OF THE SENATE AND THE HOUSE OF

20 REPRESENTATIVES.—This section is enacted by Con21 gress— 

22 (1) as an exercise of the rulemaking power of 

23 the Senate and the House of Representatives, re24 spectively, and is deemed to be part of the rules of 

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1 spect to the procedure to be followed in that House 

2 in the case of a Commission bill, and it supersedes 

3 other rules only to the extent that it is inconsistent 

4 with such rules; and 

5 (2) with full recognition of the constitutional 

6 right of either House to change the rules (so far as 

7 they relate to the procedure of that House) at any 

8 time, in the same manner, and to the same extent 

9 as in the case of any other rule of that House. 

10 Subtitle B—Commission on Con11 gressional Budgetary Account12 ability and Review of Federal 

13 Agencies 

14 SEC. 411. DEFINITIONS. 

15 In this subtitle: 

16 (1) AGENCY.—The term ‘‘agency’’ means— 

17 (A) an Executive agency, as defined under 

18 section 105 of title 5, United States Code; and 

19 (B) the Executive Office of the President. 

20 (2) CALENDAR DAY.—The term ‘‘calendar day’’ 

21 means a calendar day other than 1 on which either 

22 House is not in session because of an adjournment 

23 of more than 3 days to a date certain. 

24 (3) COMMISSION BILL.—The term ‘‘Commission 

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1 vided under section 416, and contains the proposed 

2 legislation included in the report submitted to Con3 gress under section 413(b)(3), without modification. 

4 (4) PROGRAM.—The term ‘‘program’’ means 

5 any activity or function of an agency. 

6 SEC. 412. ESTABLISHMENT OF COMMISSION. 

7 (a) ESTABLISHMENT.—There is established the Com8 mission on Congressional Budgetary Accountability and 

9 Review of Federal Agencies (referred to in this subtitle 

10 as the ‘‘Commission’’). 

11 (b) MEMBERSHIP.— 

12 (1) IN GENERAL.—The Commission shall con13 sist of 15 members, of which, not later than 30 days 

14 after the date of enactment of this Act— 

15 (A) 3 shall be appointed by the President; 

16 (B) 3 shall be appointed by the majority 

17 leader of the Senate; 

18 (C) 3 shall be appointed by the minority 

19 leader of the Senate; 

20 (D) 3 shall be appointed by the Speaker of 

21 the House of Representatives; and 

22 (E) 3 shall be appointed by the minority 

23 leader of the House of Representatives. 

24 (2) CHAIRPERSON AND VICE CHAIRPERSON.— 

25 The President shall designate a Chairperson and 


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1 Vice Chairperson from among the members of the 

2 Commission. The Chairperson and the Vice Chair3 person may not be affiliated with the same political 

4 party. 

5 (c) TIMING.—Members of the Commission shall be 

6 appointed by not later than 30 days after the date of en7 actment of this Act. 

8 (d) PERIOD OF APPOINTMENT; VACANCIES.—Mem9 bers shall be appointed for the life of the Commission. Any 

10 vacancy in the Commission shall not affect its powers, but 

11 shall be filled in the same manner as the original appoint12 ment. 

13 (e) MEETINGS.— 

14 (1) INITIAL MEETING.—Not later than 30 days 

15 after the date on which all members of the Commis16 sion have been appointed, the Commission shall hold 

17 its first meeting. 

18 (2) SUBSEQUENT MEETINGS.—The Commission 

19 shall meet at the call of the chairperson. 

20 (f) QUORUM.—A majority of the members of the 

21 Commission shall constitute a quorum, but a lesser num22 ber of members may hold hearings. 

23 SEC. 413. DUTIES OF THE COMMISSION. 

24 (a) SYSTEMATIC ASSESSMENT OF PROGRAMS BY THE

25 PRESIDENT.— 


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1 (1) IN GENERAL.—Not later than 1 year after 

2 the date of enactment of this Act and each of the 

3 next 3 years thereafter, the President shall— 

4 (A) establish a systematic method for as5 sessing the effectiveness and accountability of 

6 agency programs in accordance with paragraph 

7 (2) and divide the programs into 4 approxi8 mately equal budgetary parts based on the size 

9 of the budget and number of personnel of the 

10 agency program; and 

11 (B) submit, to the Commission each year, 

12 an assessment of the programs within each part 

13 (one each year) that use the method established 

14 under subparagraph (A). 

15 (2) METHOD OBJECTIVES.—The method estab16 lished under paragraph (1) shall— 

17 (A) recognize different types of Federal 

18 programs; 

19 (B) assess programs based on the achieve20 ment of performance goals (as defined under 

21 section 1115(g)(4) of title 31, United States 

22 Code); 

23 (C) assess programs based in part on the 

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1 ures, financial management, and other factors 

2 determined by the President; 

3 (D) assess programs based in part on 

4 whether the program has fulfilled the legislative 

5 intent surrounding the creation of the program, 

6 taking into account any change in legislative in7 tent during the program’s existence; and 

8 (E) assess programs based in part on col9 laborative analysis, with the program or agency, 

10 of program policy and goals which may not fit 

11 into easily measurable performance goals. 

12 (3) COMMON PERFORMANCE MEASURES.—Not 

13 later than 1 year after the date of enactment of this 

14 Act, the President shall identify common perform15 ance measures for programs covered in paragraph 

16 (1) that have similar functions and, to the extent 

17 feasible, provide the Commission with data on such 

18 performance measures. 

19 (b) EVALUATION AND PLAN BY COMMISSION.— 

20 (1) DEVELOPMENT.—The method established 

21 under subsection (a) shall be subject to review and 

22 change by the Commission. If the Commission 

23 makes any changes in the method, the Commission 

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1 viewing the first assessment from the President 

2 under this section. 

3 (2) CONSIDERATION OF ASSESSMENTS.—The 

4 Commission shall consider assessments submitted 

5 under subsection (a) when evaluating programs 

6 under this subsection. 

7 (3) ASSESSMENT AND LEGISLATION.— 

8 (A) IN GENERAL.—The Commission 

9 shall— 

10 (i) evaluate all agencies and programs 

11 within those agencies in each unit identi12 fied in the systemic assessment under sub13 section (a) (one each year over the next 4 

14 years), using the criteria under subsection 

15 (a) subject to modification under para16 graph (1); and 

17 (ii) submit to Congress each of the 

18 next 4 years beginning January 1, 2008, 

19 with respect to each evaluation under 

20 clause (i)— 

21 (I) a plan with recommendations 

22 of the agencies and programs that 

23 should be realigned or eliminated 

24 within each part; and 


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1 (II) proposed legislation to imple2 ment the plan described under sub3 clause (I). 

4 (B) RELOCATION OF FEDERAL EMPLOY5 EES.—The proposed legislation under subpara6 graph (A) shall provide that if the position of 

7 an employee of an agency is eliminated as a re8 sult of the implementation of the plan under 

9 subparagraph (A)(i), the affected agency shall 

10 make reasonable efforts to relocate such em11 ployee to another position within the agency or 

12 within another Federal agency. 

13 (4) CRITERIA.— 

14 (A) DUPLICATIVE.—If 2 or more agencies 

15 or programs are performing the same essential 

16 function and the function can be consolidated 

17 or streamlined into a single agency or program, 

18 the Commission shall recommend that the agen19 cies or programs be realigned. 

20 (B) WASTEFUL OR INEFFICIENT.—The 

21 Commission may recommend the realignment or 

22 elimination of any agency or program that has 

23 wasted Federal funds by— 

24 (i) egregious spending; 


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1 (ii) mismanagement of resources and 

2 personnel; or 

3 (iii) use of such funds for personal 

4 benefit or the benefit of a special interest 

5 group. 

6 (C) OUTDATED, IRRELEVANT, OR

7 FAILED.—The Commission shall recommend 

8 the elimination of any agency or program 

9 that— 

10 (i) has completed its intended pur11 pose; 

12 (ii) has become irrelevant; or 

13 (iii) has failed to meet its objectives. 

14 SEC. 414. POWERS OF THE COMMISSION. 

15 (a) HEARINGS.—The chairperson of the Commission, 

16 or his or her designee, may, for the purpose of carrying 

17 out this subtitle— 

18 (1) hold such hearings, sit and act at such 

19 times and places, take such testimony, receive such 

20 evidence, and administer such oaths as the chair21 person of the Commission considers advisable; 

22 (2) require, by subpoena or otherwise, the at23 tendance and testimony of such witnesses as the 

24 chairperson of the Commission considers advisable; 

25 and 


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1 (3) require, by subpoena or otherwise, the pro2 duction of such books, records, correspondence, 

3 memoranda, papers, documents, tapes, and other 

4 evidentiary materials relating to any matter under 

5 investigation by the Commission. 

6 (b) Subpoenas.— 

7 (1) Issuance.— 

8 (A) In general.—A subpoena may be 

9 issued under this subsection only— 

10 (i) by the agreement of the chairman 

11 and the vice chairman of the Commission; 

12 or 

13 (ii) by the affirmative vote of 8 mem14 bers of the Commission. 

15 (B) Signature.—Subpoenas issued under 

16 this subsection (a) may be issued under the sig17 nature of the chairman of the Commission and 

18 may be served by any person designated by the 

19 chairman or by a member designated by a ma20 jority of the Commission. 

21 (2) ENFORCEMENT.—In the case of contumacy 

22 or failure to obey a subpoena issued under sub23 section (a), the United States district court for the 

24 judicial district in which the subpoenaed person re25 sides, is served, or may be found, may issue an order 


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1 requiring such person to appear at any designated 

2 place to testify or to produce documentary or other 

3 evidence. Any failure to obey the order of the court 

4 may be punished by the court as a contempt of that 

5 court. 

6 (c) TECHNICAL ASSISTANCE.—Upon the request of 

7 the Commission, the head of a Federal agency shall pro8 vide such technical assistance to the Commission as the 

9 Commission determines to be necessary to carry out its 

10 duties. 

11 (d) INFORMATION.—The Commission shall have rea12 sonable access to budgetary, performance or pro13 grammatic materials, resources, statistical data, and other 

14 information the Commission determines to be necessary 

15 to carry out its duties from the Congressional Budget Of16 fice, and other agencies and representatives of the execu17 tive and legislative branches of the Federal Government. 

18 The Chairpersons shall make requests for such access in 

19 writing when necessary. 

20 (e) RECEIPT, HANDLING, STORAGE, AND DISSEMINA21 TION OF INFORMATION.—Information shall only be re22 ceived, handled, stored, and disseminated by members of 

23 the Commission and its staff consistent with all applicable 

24 statutes, regulations, and Executive orders. 


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1 (f) POSTAL SERVICES.—The Commission may use 

2 the United States mails in the same manner and under 

3 the same conditions as other departments and agencies of 

4 the Federal Government. 

5 SEC. 415. COMMISSION PERSONNEL MATTERS. 

6 (a) COMPENSATION OF MEMBERS.— 

7 (1) NON-FEDERAL MEMBERS.—Except as pro8 vided under subsection (b), each member of the 

9 Commission who is not an officer or employee of the 

10 Federal Government shall not be compensated. 

11 (2) FEDERAL OFFICERS OR EMPLOYEES.—All 

12 members of the Commission who are officers or em13 ployees of the United States shall serve without com14 pensation in addition to that received for their serv15 ices as officers or employees of the United States. 

16 (b) TRAVEL EXPENSES.—The members of the Com17 mission shall be allowed travel expenses, including per 

18 diem in lieu of subsistence, at rates authorized for employ19 ees of agencies under subchapter I of chapter 57 of title 

20 5, United States Code, while away from their homes or 

21 regular places of business in the performance of services 

22 for the Commission. 

23 (c) STAFF.— 

24 (1) IN GENERAL.—The chairperson of the Com25 mission may, appoint an executive director and such 


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1 other additional personnel as may be necessary to 

2 enable the Commission to perform its duties. The 

3 employment of an executive director shall be subject 

4 to confirmation by the Commission. 

5 (2) COMPENSATION.—Upon the approval of the 

6 chairperson, the executive director may fix the com7 pensation of the executive director and other per8 sonnel without regard to chapter 51 and subchapter 

9 III of chapter 53 of title 5, United States Code, re10 lating to classification of positions and General 

11 Schedule pay rates, except that the rate of pay for 

12 the executive director and other personnel may not 

13 exceed the maximum rate payable for a position at 

14 GS–15 of the General Schedule under section 5332 

15 of such title. 

16 (3) PERSONNEL AS FEDERAL EMPLOYEES.— 

17 (A) IN GENERAL.—The executive director 

18 and any personnel of the Commission who are 

19 employees shall be employees under section 

20 2105 of title 5, United States Code, for pur21 poses of chapters 63, 81, 83, 84, 85, 87, 89, 

22 89A, 89B, and 90 of that title. 

23 (B) MEMBERS OF COMMISSION.—Subpara24 graph (A) shall not be construed to apply to 

25 members of the Commission. 


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1 (d) DETAIL OF GOVERNMENT EMPLOYEES.—Any 

2 Federal Government employee may be detailed to the 

3 Commission without reimbursement from the Commission, 

4 and such detail shall be without interruption or loss of 

5 civil service status or privilege. 

6 (e) PROCUREMENT OF TEMPORARY AND INTERMIT7 TENT SERVICES.—The chairperson of the Commission 

8 may procure temporary and intermittent services under 

9 section 3109(b) of title 5, United States Code, at rates 

10 for individuals which do not exceed the daily equivalent 

11 of the annual rate of basic pay prescribed for level V of 

12 the Executive Schedule under section 5316 of such title. 

13 SEC. 416. EXPEDITED CONSIDERATION OF REFORM PRO14 POSALS. 

15 (a) INTRODUCTION AND COMMITTEE CONSIDER16 ATION.— 

17 (1) INTRODUCTION.—The Commission bill lan18 guage provisions submitted pursuant to section 

19 413(b)(3) shall be introduced in the Senate by the 

20 majority leader, or the majority leader’s designee, 

21 and in the House of Representatives, by the Speak22 er, or the Speaker’s designee. Upon such introduc23 tion, the Commission bill shall be referred to the ap24 propriate committees of Congress under paragraph 

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1 cordance with the preceding sentence, then any 

2 member of Congress may introduce the Commission 

3 bill in their respective House of Congress beginning 

4 on the date that is the 5th calendar day that such 

5 House is in session following the date of the submis6 sion of such aggregate legislative language provi7 sions. 

8 (2) COMMITTEE CONSIDERATION.— 

9 (A) REFERRAL.—A Commission bill intro10 duced under paragraph (1) shall be referred to 

11 any appropriate committee of jurisdiction in the 

12 Senate, any appropriate committee of jurisdic13 tion in the House of Representatives, the Com14 mittee on the Budget of the Senate and the 

15 Committee on the Budget of the House of Rep16 resentatives. A committee to which a Commis17 sion bill is referred under this paragraph may 

18 review and comment on such bill, may report 

19 such bill to the respective House, and may not 

20 amend such bill. 

21 (B) REPORTING.—Not later than 30 cal22 endar days after the introduction of the Com23 mission bill, each Committee of Congress to 

24 which the Commission bill was referred shall re25 port the bill. 


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1 (C) DISCHARGE OF COMMITTEE.—If a 

2 committee to which is referred a Commission 

3 bill has not reported such Commission bill at 

4 the end of 30 calendar days after its introduc5 tion or at the end of the first day after there 

6 has been reported to the House involved a Com7 mission bill, whichever is earlier, such com8 mittee shall be deemed to be discharged from 

9 further consideration of such Commission bill, 

10 and such Commission bill shall be placed on the 

11 appropriate calendar of the House involved. 

12 (b) EXPEDITED PROCEDURE.— 

13 (1) CONSIDERATION.— 

14 (A) IN GENERAL.—Not later than 7 cal15 endar days after the date on which a committee 

16 has been discharged from consideration of a 

17 Commission bill, the majority leader of the Sen18 ate, or the majority leader’s designee, or the 

19 Speaker of the House of Representatives, or the 

20 Speaker’s designee, shall move to proceed to the 

21 consideration of the Commission bill. It shall 

22 also be in order for any member of the Senate 

23 or the House of Representatives, respectively, to 

24 move to proceed to the consideration of the 


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1 Commission bill at any time after the conclu2 sion of such 7-day period. 

3 (B) MOTION TO PROCEED.—A motion to 

4 proceed to the consideration of a Commission 

5 bill is highly privileged in the House of Rep6 resentatives and is privileged in the Senate and 

7 is not debatable. The motion is not subject to 

8 amendment, to a motion to postpone consider9 ation of the Commission bill, or to a motion to 

10 proceed to the consideration of other business. 

11 A motion to reconsider the vote by which the 

12 motion to proceed is agreed to or not agreed to 

13 shall not be in order. If the motion to proceed 

14 is agreed to, the Senate or the House of Rep15 resentatives, as the case may be, shall imme16 diately proceed to consideration of the Commis17 sion bill without intervening motion, order, or 

18 other business, and the Commission bill shall 

19 remain the unfinished business of the Senate or 

20 the House of Representatives, as the case may 

21 be, until disposed of. 

22 (C) LIMITED DEBATE.—Debate on the 

23 Commission bill and on all debatable motions 

24 and appeals in connection therewith shall be 

25 limited to not more than 10 hours, which shall 


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1 be divided equally between those favoring and 

2 those opposing the Commission bill. A motion 

3 further to limit debate on the Commission bill 

4 is in order and is not debatable. All time used 

5 for consideration of the Commission bill, includ6 ing time used for quorum calls (except quorum 

7 calls immediately preceding a vote) and voting, 

8 shall come from the 10 hours of debate. 

9 (D) AMENDMENTS.—No amendment to the 

10 Commission bill shall be in order in the Senate 

11 and the House of Representatives. 

12 (E) VOTE ON FINAL PASSAGE.—Imme13 diately following the conclusion of the debate on 

14 the Commission bill, the vote on final passage 

15 of the Commission bill shall occur. 

16 (F) OTHER MOTIONS NOT IN ORDER.—A 

17 motion to postpone consideration of the Com18 mission bill, a motion to proceed to the consid19 eration of other business, or a motion to recom20 mit the Commission bill is not in order. A mo21 tion to reconsider the vote by which the Com22 mission bill is agreed to or not agreed to is not 

23 in order. 

24 (2) CONSIDERATION BY OTHER HOUSE.—If, be25 fore the passage by one House of the Commission 


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1 bill that was introduced in such House, such House 

2 receives from the other House a Commission bill as 

3 passed by such other House— 

4 (A) the Commission bill of the other House 

5 shall not be referred to a committee and may 

6 only be considered for final passage in the 

7 House that receives it under subparagraph (C); 

8 (B) the procedure in the House in receipt 

9 of the Commission bill of the other House, with 

10 respect to the Commission bill that was intro11 duced in the House in receipt of the Commis12 sion bill of the other House, shall be the same 

13 as if no Commission bill had been received from 

14 the other House; and 

15 (C) notwithstanding subparagraph (B), the 

16 vote on final passage shall be on the Commis17 sion bill of the other House. 

18 Upon disposition of a Commission bill that is re19 ceived by one House from the other House, it shall 

20 no longer be in order to consider the Commission bill 

21 that was introduced in the receiving House. 

22 (c) RULES OF THE SENATE AND THE HOUSE OF

23 REPRESENTATIVES.—This section is enacted by Con24 gress— 


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1 (1) as an exercise of the rulemaking power of 

2 the Senate and the House of Representatives, re3 spectively, and is deemed to be part of the rules of 

4 each House, respectively, but applicable only with re5 spect to the procedure to be followed in that House 

6 in the case of a Commission bill, and it supersedes 

7 other rules only to the extent that it is inconsistent 

8 with such rules; and 

9 (2) with full recognition of the constitutional 

10 right of either House to change the rules (so far as 

11 they relate to the procedure of that House) at any 

12 time, in the same manner, and to the same extent 

13 as in the case of any other rule of that House. 

14 SEC. 417. TERMINATION OF THE COMMISSION. 

15 The Commission shall terminate 90 days after the 

16 date on which the Commission submits the final evaluation 

17 and plan report under section 413. 

18 SEC. 418. AUTHORIZATION OF APPROPRIATIONS. 

19 There are authorized to be appropriated such sums 

20 as may be necessary for carrying out this Act for each 

21 of the fiscal years 2007 through 2011. 


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1 TITLE V—BUDGET PROCESS 

2 REFORMS 

3 SEC. 501. DEFINITIONS. 

4 Section 3 of the Congressional Budget and Impound5 ment Control Act of 1974 (2 U.S.C. 622) is amended by— 

6 (1) redesignating paragraphs (3) through (10) 

7 as paragraphs (7) through (14), respectively; 

8 (2) adding after paragraph (3) the following: 

9 ‘‘(3) DIRECT SPENDING.—The term ‘direct 

10 spending’ means— 

11 ‘‘(A) budget authority provided by law 

12 other than appropriation Acts; 

13 ‘‘(B) mandatory spending provided in ap14 propriation Acts; and 

15 ‘‘(C) entitlement authority. 

16 ‘‘(4) DISCRETIONARY APPROPRIATIONS.—The 

17 term ‘discretionary appropriations’ means budgetary 

18 resources (except to fund direct spending programs) 

19 provided in appropriation Acts. 

20 ‘‘(5) GOVERNMENTAL RECEIPTS.—The term 

21 ‘governmental receipts’ means revenue or collections 

22 from the public based on the government’s exercise 

23 of its sovereign powers, including but not limited to 

24 individual and corporate income taxes, social insur25 ance taxes, customs, duties, fines, compulsory license 


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1 fees, deposits of earnings by the Federal Reserve 

2 System, tariffs, other fees, miscellaneous receipts, 

3 gifts, and contributions. 

4 ‘‘(6) SECONDARY OR INDIRECT EFFECTS.—The 

5 term ‘secondary or indirect effects’ means changes 

6 in direct spending or government receipts other than 

7 the direct, observable effects of changes in legislation 

8 on related accounts, including— 

9 ‘‘(A) the impact of changes in spending 

10 legislation on Federal tax receipts or the impact 

11 of changes in Federal tax laws on total Federal 

12 spending; or 

13 ‘‘(B) the impacts on spending or govern14 ment receipts if there is no statutory connection 

15 or established interaction between a legislative 

16 proposal and its impact on the operation of cur17 rent law.’’; and 

18 (3) adding at the end the following: 

19 ‘‘(15) BUDGET YEAR.—The term ‘budget year’ 

20 means, with respect to a session of Congress, the fis21 cal year of the Government that starts on October 

22 1 of the calendar year in which that session begins. 

23 ‘‘(16) CURRENT YEAR.—The term ‘current 

24 year’ means, with respect to a budget year, the fiscal 

25 year that immediately precedes that budget year.’’. 


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1 SEC. 502. ANNUAL CONCURRENT RESOLUTION ON THE 

2 BUDGET. 

3 Section 301 of the Congressional Budget Act of 1974 

4 (2 U.S.C. 632) is amended— 

5 (1) in subsection (a)— 

6 (A) in paragraph (2), by striking ‘‘Federal 

7 revenues’’ both places it appears and inserting 

8 ‘‘governmental receipts’’; 

9 (B) in paragraph (4), by striking ‘‘major 

10 functional category’’ and inserting ‘‘standing, 

11 select, or special committee of the House of 

12 Representatives and the Senate, as appro13 priate,’’; 

14 (C) in paragraphs (6) and (7), by striking 

15 ‘‘For’’ and inserting ‘‘for’’; and 

16 (D) in the matter following paragraph (7), 

17 by striking ‘‘old age’’ and inserting ‘‘old-age’’. 

18 (2) in subsection (b)— 

19 (A) in paragraph (3), by striking ‘‘entitle20 ment authority’’ and inserting ‘‘direct spend21 ing’’; and 

22 (B) in paragraph (7), by inserting ‘‘is de23 scribed in detail to allow the Chairman of the 

24 Committee on the Budget to determine whether 

25 it qualifies for such revision and the legislation’’ 

26 after ‘‘that legislation’’; 


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1 (3) in subsection (d)— 

2 (A) in the caption, by striking ‘‘and esti3 mates of’’ and inserting ‘‘, estimates, and rec4 ommendations for deficit reduction from all’’; 

5 (B) in the first sentence, by striking ‘‘its 

6 views’’ and inserting ‘‘its specific recommenda7 tions for changes in law within the jurisdiction 

8 of the committee making the submission that 

9 result in deficit reduction and its views’’; and 

10 (C) in the third sentence, by striking ‘‘or 

11 functions’’; and 

12 (4) in subsection (e)— 

13 (A) in paragraph (2)— 

14 (i) by redesignating subparagraphs 

15 (B) through (D) as subparagraphs (C) 

16 through (E), respectively; 

17 (ii) by redesignating subparagraphs 

18 (E) and (F) as subparagraphs (G) and 

19 (H), respectively; 

20 (iii) by inserting after subparagraph 

21 (A) the following: 

22 ‘‘(B) with respect to the Committee on Ap23 propriations of the House of Representatives 

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1 vided between discretionary and mandatory 

2 amounts’’; and 

3 (iv) by adding after subparagraph 

4 (E), as redesignated, the following: 

5 ‘‘(F) with respect to each standing, select, 

6 or special committee of the House of Represent7 atives and Senate, an estimate of governmental 

8 receipts within the jurisdiction of that com9 mittee;’’; and 

10 (B) in paragraph (3)(B), by— 

11 (i) striking ‘‘Federal revenues’’ and 

12 inserting ‘‘governmental receipts’’; and 

13 (ii) striking ‘‘such revenues’’ and in14 sert ‘‘such governmental receipts’’. 

15 SEC. 503. COMMITTEE ALLOCATIONS. 

16 Section 302 of the Congressional Budget Act of 1974 

17 (2 U.S.C. 633(a)) is amended— 

18 (1) in subsection (a), by striking paragraph (3) 

19 and inserting the following: 

20 ‘‘(3) FURTHER DIVISION OF AMOUNTS IN THE

21 HOUSE.—The amounts allocated to each committee 

22 of the House of Representatives for each fiscal year, 

23 other than the Committee on Appropriations, shall 

24 be further divided between amounts provided or re25 quired by law on the date of filing of that conference 


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1 report and amounts not so provided or required. The 

2 amounts allocated to the Committee on Appropria3 tions shall be further divided between discretionary 

4 and mandatory amounts or programs, as appro5 priate.’’; and 

6 (2) in subsection (g)(2), by striking ‘‘com7 mittee’’ and inserting ‘‘Committee’’. 

8 SEC. 504. BUDGET RESOLUTION ADOPTION. 

9 Section 303(a) of the Congressional Budget Act of 

10 1974 (2 U.S.C. 634(a)) is amended to read as follows: 

11 ‘‘(a) IN GENERAL.—Beginning on the first day of a 

12 new session of Congress, and until the concurrent resolu13 tion for the fiscal year beginning in October of the year 

14 the new session of Congress begins, it shall not be in order 

15 to consider with respect to the budget year covered by that 

16 resolution, any bill or joint resolution, amendment or mo17 tion thereto, or conference report thereon that— 

18 ‘‘(1) provides budget authority for the budget 

19 year; 

20 ‘‘(2) provides an increase or decrease in govern21 mental receipts during the budget year; 

22 ‘‘(3) provides an increase or decrease in the 

23 public debt limit for the budget year; 

24 ‘‘(4) in the Senate only, provides new direct 

25 spending for the budget year; or 


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1 ‘‘(5) in the Senate only, provides for an in2 crease or decrease in outlays for the budget year.’’. 

3 SEC. 505. CONSIDERATION OF THE BUDGET RESOLUTION. 

4 Section 305 of the Congressional Budget Act of 1974 

5 (2 U.S.C. 636) is amended by— 

6 (1) redesignating subsection (d) as subsection 

7 (e); and 

8 (2) striking subsections (b) and (c) and insert9 ing the following: 

10 ‘‘(b) PROCEDURE IN SENATE AFTER REPORT OF

11 COMMITTEE; CONSIDERATION; AMENDMENTS.— 

12 ‘‘(1) Consideration in the Senate on any con13 current resolution on the budget, and all amend14 ments thereto and debatable motions and appeals in 

15 connection therewith, shall be limited to not more 

16 than 50 hours, except that with respect to any con17 current resolution referred to in section 304 all such 

18 debate shall be limited to not more than 15 hours. 

19 The time shall be equally divided between, and con20 trolled by, the majority leader and the minority lead21 er or their designees. 

22 ‘‘(2) Debate in the Senate on any amendment 

23 to a concurrent resolution on the budget shall be 

24 limited to 2 hours, to be equally divided between, 

25 and controlled by, the mover and the manager of the 


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1 concurrent resolution, and debate on any amend2 ment to an amendment, debatable motion, or appeal 

3 shall be limited to 1 hour to be equally divided be4 tween, and controlled by, the mover and the man5 ager of the concurrent resolution, except that in the 

6 event the manager of the concurrent resolution is in 

7 favor of any such amendment, motion, or appeal, the 

8 time in opposition thereto shall be controlled by the 

9 minority leader or his designee. No dilatory motion, 

10 or dilatory amendment shall be in order. Amend11 ments that are not germane to the provisions of 

12 such concurrent resolution shall not be in order. For 

13 the purpose of this Act, amendments that are pre14 dominantly precatory shall not be in order. Such 

15 managers, or either leader, may, from the time 

16 under their control on the consideration of the con17 current resolution, allot additional time to any Sen18 ator during the consideration of any amendment, de19 batable motion, or appeal. 

20 ‘‘(3) Following the presentation of opening 

21 statements on the concurrent resolution on the 

22 budget for a fiscal year by the chairman and rank23 ing minority member of the Committee on the Budg24 et of the Senate, there shall be a period of up to 4 

25 hours for debate on economic goals and policies. 


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1 ‘‘(4) Subject to the other limitations of this Act, 

2 only if a concurrent resolution on the budget re3 ported by the Committee on the Budget of the Sen4 ate sets forth the economic goals (as described in 

5 sections 3(a)(2) and 4(b) of the Employment Act of 

6 1946) which the estimates, amounts, and levels (as 

7 described in section 301(a)) set forth in such resolu8 tion are designed to achieve, shall it be in order to 

9 offer to such resolution an amendment relating to 

10 such goals, and such amendment shall be in order 

11 only if it also proposes to alter such estimates, 

12 amounts, and levels in germane fashion in order to 

13 be consistent with the goals proposed in such 

14 amendment. 

15 ‘‘(5) A motion to further limit consideration is 

16 not debatable. A motion to recommit (except a mo17 tion to recommit with instructions to report back 

18 within a specified number of days, not to exceed 3, 

19 not counting any day on which the Senate is not in 

20 session) is not in order. Debate on any such motion 

21 to recommit shall be limited to 1 hour, to be equally 

22 divided between, and controlled by, the mover and 

23 the manager of the concurrent resolution. 

24 ‘‘(6) Notwithstanding any other rule, an 

25 amendment or series of amendments to a concurrent 


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1 resolution on the budget proposed in the Senate 

2 shall always be in order if such amendment or series 

3 of amendments proposes to change any figure or fig4 ures then contained in such concurrent resolution so 

5 as to make such concurrent resolution mathemati6 cally consistent or so as to maintain such consist7 ency. 

8 ‘‘(c) REQUEST FOR CONFERENCE IN THE SENATE.— 

9 Consideration of all motions in relation to a request for 

10 a conference with the House of Representatives shall be 

11 limited to not more than 1 hour and debate on a motion 

12 to instruct the conferees shall be limited to 20 minutes 

13 to be equally divided between, and controlled by, the mover 

14 and the manager of the concurrent resolution, except that 

15 in the event the manager of the concurrent resolution is 

16 in favor of any such amendment, motion, or appeal, the 

17 time in opposition thereto shall be controlled by the minor18 ity leader or his designee. 

19 ‘‘(d) ACTION ON CONFERENCE REPORTS IN THE

20 SENATE.— 

21 ‘‘(1) A motion to proceed to the consideration 

22 of the conference report on any concurrent resolu23 tion on the budget (or a reconciliation bill or resolu24 tion) may be made even though a previous motion 

25 to the same effect has been disagreed to. 


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1 ‘‘(2) During the consideration in the Senate of 

2 a conference report (including a message between 

3 Houses) on any concurrent resolution on the budget, 

4 including all amendments in disagreement, and all 

5 amendments thereto, and debatable motions and ap6 peals in connection therewith, consideration shall be 

7 limited to 10 hours, to be equally divided between, 

8 and controlled by, the majority leader and minority 

9 leader or their designees. Debate on any debatable 

10 motion or appeal related to the conference report (or 

11 a message between Houses) shall be limited to 1 

12 hour, to be equally divided between, and controlled 

13 by, the mover and the manager of the conference re14 port (or a message between Houses). 

15 ‘‘(3) Should the conference report be defeated, 

16 consideration of any request for a new conference 

17 and the appointment of conferees shall be limited to 

18 1 hour, to be equally divided between, and controlled 

19 by, the manager of the conference report and the 

20 minority leader or his designee, and should any mo21 tion be made to instruct the conferees before the 

22 conferees are named, debate on such motion shall be 

23 limited to 20 minutes, to be equally divided between, 

24 and controlled by, the mover and the manager of the 

25 conference report. Debate on any amendment to any 


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1 such instructions shall be limited to 10 minutes, to 

2 be equally divided between and controlled by the 

3 mover and the manager of the conference report. In 

4 all cases when the manager of the conference report 

5 is in favor of any motion, appeal, or amendment, the 

6 time in opposition shall be under the control of the 

7 minority leader or his designee. 

8 ‘‘(4) In any case in which there are amend9 ments in disagreement, the time for debate on each 

10 amendment shall be limited to 30 minutes, to be 

11 equally divided between, and controlled by, the man12 ager of the conference report and the minority lead13 er or his designee. No amendment that is not ger14 mane to the provisions of such amendments shall be 

15 received.’’. 

16 SEC. 506. BUDGET PROJECTIONS. 

17 Section 308(c) of the Congressional Budget Act of 

18 1974 (2 U.S.C. 639(c)) is amended— 

19 (1) in paragraph (2), by striking ‘‘revenues’’ 

20 and inserting ‘‘governmental receipts’’; and 

21 (2) in paragraph (4), by striking ‘‘entitlement’’ 

22 and inserting ‘‘direct spending’’. 

23 SEC. 507. RECONCILIATION. 

24 Section 310 of the Congressional Budget Act of 1974 

25 (2 U.S.C. 641) is amended— 


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1 (1) in subsection (a), by striking paragraphs 

2 (1) and (2) and inserting the following: 

3 ‘‘(1) specify the total amount by which— 

4 ‘‘(A) new budget authority; 

5 ‘‘(B) budget authority; 

6 ‘‘(C) new direct spending authority; and 

7 ‘‘(D) governmental receipts other than in8 come taxes, estate and gift taxes, excise taxes 

9 or payroll taxes, or tariffs; 

10 contained in laws, bills, and resolutions within the 

11 jurisdiction of a committee is to be changed for any 

12 of the fiscal years covered by the resolution and di13 rect that committee to determine and recommend 

14 changes to accomplish a change of such total 

15 amount; 

16 ‘‘(2) specify the total amount by which govern17 mental receipts including income taxes, estate and 

18 gift taxes, excise taxes or social insurance taxes, 

19 miscellaneous receipts, or tariffs are to be changed 

20 and direct that the committees having jurisdiction to 

21 determine and recommend changes in the govern22 mental receipt laws, bills, and resolutions to accom23 plish a change of such total amount;’’; 

24 (2) by striking subsection (b) and inserting the 

25 following: 


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1 ‘‘(b) LEGISLATIVE PROCEDURE.— 

2 ‘‘(1) If a conference report on a concurrent res3 olution containing reconciliation instructions to 1 or 

4 more committees to determine and recommend 

5 changes in laws, bills, or resolutions is agreed to in 

6 accordance with subsection (a)— 

7 ‘‘(A) each such committee so instructed 

8 shall promptly make such determination and 

9 recommendations and submit such rec10 ommendations to the Committee on the Budget 

11 of its House, which upon receiving all such rec12 ommendations, shall report to its House rec13 onciliation legislation carrying out all such rec14 ommendations without any substantive revision; 

15 and 

16 ‘‘(B) in the event that any committee fails 

17 to comply with its instruction, then the Com18 mittees on the Budget may report amendments 

19 recommending changes within the jurisdiction 

20 of the noncompliant committee to achieve the 

21 changes contained in the instruction. 

22 ‘‘(2) For purposes of this subsection, a rec23 onciliation resolution is a concurrent resolution di24 recting the Clerk of the House of Representatives or 

25 the Secretary of the Senate, as the case may be, to 


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1 make specified changes in bills and resolutions which 

2 have not been enrolled.’’; 

3 (3) in subsection (c), by adding at the end the 

4 following: 

5 ‘‘(3) Secondary or indirect effects of the legislative 

6 recommendations submitted by any committee of the 

7 House of Representatives or the Senate that is instructed 

8 pursuant to a concurrent resolution on the budget, shall 

9 be attributed to the committee proposing the change in 

10 law, but shall not be considered for the purpose of deter11 mining compliance with such instructions.’’; 

12 (4) by striking paragraphs (1) through (4) of 

13 subsection (d) and inserting the following: 

14 ‘‘(1) It shall not be in order in the House of Rep15 resentatives to consider any amendment to a reconciliation 

16 bill or reconciliation resolution if such amendment would 

17 have the effect of increasing any specific budget outlays 

18 above the level of such outlays provided in the bill or reso19 lution (for the fiscal years covered by the reconciliation 

20 instructions set forth in the most recently agreed to con21 current resolution on the budget), or would have the effect 

22 of reducing any specific governmental receipts below the 

23 level of such governmental receipts provided in the bill or 

24 resolution (for such fiscal years), unless such amendment 

25 makes at least an equivalent reduction in other specific 


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1 budget outlays, an equivalent increase in other specific 

2 governmental receipts, or an equivalent combination there3 of (for such fiscal years), except that a motion to strike 

4 a provision providing new budget authority or new entitle5 ment authority may be in order. 

6 ‘‘(2) It shall not be in order in the Senate to consider 

7 any amendment to a reconciliation bill or reconciliation 

8 resolution if such amendment would have the effect of de9 creasing any specific budget outlay reductions below the 

10 level of such outlay reductions provided (for the fiscal 

11 years covered) in the reconciliation instructions which re12 late to such bill or resolution set forth in a resolution pro13 viding for reconciliation, or would have the effect of reduc14 ing governmental receipts increases below the level of such 

15 increases in such governmental receipts provided (for such 

16 fiscal years) in such instructions relating to such bill or 

17 resolution, unless such amendment makes a reduction in 

18 other specific budget outlays, an increase in other specific 

19 governmental receipts, or a combination thereof (for such 

20 fiscal years) at least equivalent to any increase in outlays 

21 or decrease in governmental receipts provided by such 

22 amendment, except that a motion to strike a provision 

23 shall always be in order. 

24 ‘‘(3) Paragraphs (1) and (2) shall not apply if a dec25 laration of war by the Congress is in effect. 


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1 ‘‘(4) For purposes of this section, the levels of budget 

2 authority, outlays, and governmental receipts for a fiscal 

3 year shall be determined on the basis of estimates made 

4 by the Committee on the Budget of the House of Rep5 resentatives or of the Senate, as the case may be.’’; and 

6 (5) in subsection (e)— 

7 (A) in paragraph (1), by inserting ‘‘, mo8 tions in relation to a request for conference,’’ 

9 after ‘‘under subsection (b)’’; and 

10 (B) in paragraph (2), by striking ‘‘Debate’’ 

11 and inserting ‘‘Consideration’’. 

12 SEC. 508. BUDGETING LEVELS. 

13 Section 311(a) of the Congressional Budget Act of 

14 1974 (2 U.S.C.642(a)) is amended— 

15 (1) in the matter after subparagraph (C) in 

16 paragraph (1), by striking ‘‘total revenues’’ and in17 serting ‘‘total governmental receipts’’; and 

18 (2) in paragraph (2)(B), by striking ‘‘revenues’’ 

19 and inserting ‘‘governmental receipts’’. 

20 SEC. 509. DETERMINATIONS AND POINTS OF ORDER. 

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

22 Budget Act of 1974 (2 U.S.C. 643) is amended— 

23 (1) in subsection (a), by striking ‘‘revenues’’ 

24 and inserting ‘‘governmental receipts’’; 

25 (2) by striking subsections (b) and (c); 


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1 (3) by redesignating subsections (d) through (f) 

2 as subsections (b) through (d), respectively; and 

3 (4) by adding at the end the following: 

4 ‘‘(e) CONGRESSIONAL BUDGET OFFICE SCORE FOR

5 CONFERENCE REPORTS.—It shall not be in order to con6 sider a report of a committee of conference unless an offi7 cial written cost estimate or table by the Congressional 

8 Budget Office is available at the time of consideration.’’. 

9 (b) SUPERMAJORITY POINTS OF ORDER.—Sub10 sections (c)(1) and (d)(2) of section 904 of the Congres11 sional Budget and Impoundment Control Act of 1974 (2 

12 U.S.C. 621 note) are amended by— 

13 (1) inserting ‘‘312(e),’’ after ‘‘310(d)(2),’’; and 

14 (2) nserting ‘‘and section 223 of the Stop Over 

15 Spending Act of 2006’’ after ‘‘of this Act’’. 

16 SEC. 510. EXTRANEOUS MATTER IN RECONCILIATION LEG17 ISLATION. 

18 Section 313 of the Congressional Budget Act of 1974 

19 (2 U.S.C. 644) is amended— 

20 (1) in subsection (a) by striking ‘‘or section 

21 258C’’ through ‘‘1985’’; 

22 (2) in subsection (b), by— 

23 (A) striking paragraph (1) and inserting 

24 the following: 


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1 ‘‘(1)(A) Except as provided in paragraph (2), a provi2 sion of a reconciliation bill or reconciliation resolution con3 sidered pursuant to section 310 shall be considered extra4 neous if such provision does not produce a change in out5 lays or governmental receipts, including changes in outlays 

6 and governmental receipts brought about by changes in 

7 the terms and conditions under which outlays are made 

8 or governmental receipts are required to be collected (but 

9 a provision in which outlay decreases or governmental re10 ceipts increases exactly offset outlay increases or govern11 mental receipts decreases shall not be considered extra12 neous by virtue of this subparagraph); (B) except with re13 spect to consideration of conference reports, any provision 

14 producing an increase in outlays or decrease in govern15 mental receipts shall be considered extraneous if the net 

16 effect of provisions reported by the committee reporting 

17 the title containing the provision is that the committee 

18 fails to achieve its reconciliation instructions, or if the in19 crease in outlays or decreases in governmental receipts ex20 ceeds 20 percent of the total change required in a commit21 tee’s instruction; (C) a provision that is not in the jurisdic22 tion of the Committee with jurisdiction over said title or 

23 provision shall be considered extraneous (except that 

24 amendments reported by the Committee on the Budget to 

25 achieve compliance with reconciliation instructions shall 


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1 not be extraneous); (D) a provision shall be considered to 

2 be extraneous if it increases, or would increase, net out3 lays, or if it decreases, or would decrease governmental 

4 receipts during a fiscal year after the fiscal years covered 

5 by such reconciliation bill or reconciliation resolution, and 

6 such increases or decreases are greater than outlay reduc7 tions or governmental receipts increases resulting from 

8 other provisions in such title in such year; and (E) a provi9 sion shall be considered extraneous if it violates section 

10 310(g).’’; and 

11 (B) adding at the end the following: 

12 ‘‘(4) Technical and conforming provisions shall not 

13 be considered extraneous under this section.’’; and 

14 (3) in subsection (d)(1), by striking ‘‘(b)(1)(E), 

15 or (b)(1)(F)’’ and inserting ‘‘(b)(1)(E)’’. 

16 SEC. 511. ADJUSTMENTS. 

17 Title III of the Congressional Budget Act of 1974 

18 (2 U.S.C. 621 et seq.) is amended by— 

19 (1) striking section 314; and 

20 (2) redesignating section 315 as section 314. 

21 SEC. 512. DIRECT SPENDING LIMITATION. 

22 Title III of the Congressional Budget Act of 1974 

23 (2 U.S.C. 621 et seq.) is amended by adding at the end 

24 the following: 


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1 ‘‘DIRECT SPENDING LIMITATION

2 ‘‘SEC. 315. (a) IN GENERAL.—The chairman of the 

3 Committee on the Budget of the Senate may submit to 

4 the Senate a notification of a Medicare funding warning 

5 if the chairman projects that within 7 years General Fund 

6 of the Treasury contributions to Medicare funding, ex7 pressed as a percentage of total Medicare outlays, will ex8 ceed 45 percent. 

9 ‘‘(b) POINT OF ORDER.—It shall not be in order to 

10 consider any bill, joint resolution, amendment or con11 ference report that would cause any increase in direct 

12 spending, net of proposals to change direct spending, re13 ceipts, or revenues contained in the measure, if a Medicare 

14 Funding warning has been submitted to the Senate pursu15 ant to subsection (a) for 2 consecutive calendar years. 

16 ‘‘(c) WAIVER.—This section may be waived or sus17 pended only by an affirmative vote of three-fifths of the 

18 members, duly chosen and sworn. 

19 ‘‘(d) APPEALS.—An affirmative vote of three-fifths of 

20 the Members, duly chosen and sworn, shall be required 

21 to sustain an appeal of the ruling of the Chair on a point 

22 of order raised under this section. 

23 ‘‘(e) DETERMINATIONS.—For the purposes of this 

24 section, the determination of whether Medicare funding 

25 warrants a funding warning and when it may be approVerDate Aug 31 2005 22:35 Jul 14, 2006 Jkt 049196 PO 00000 Frm 00157 Fmt 6652 Sfmt 6401 E:\BILLS\S3521.RS S3521

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1 priate to withdraw such warning, as well as the levels of 

2 net direct spending as required under subsection (b), shall 

3 be provided by the chairman of the Committee on the 

4 Budget. 

5 ‘‘(f) CANCELLATIONS.—If legislation is enacted to re6 duce the general fund contribution below 45 percent, as 

7 determined by the chairman of the Committee on the 

8 Budget, any notification of a Medicare funding warning 

9 is withdrawn.’’. 

10 SEC. 513. APPROPRIATIONS REQUESTS OF THE PRESIDENT. 

11 Section 1108(e) of title 31, United States Code, is 

12 amended by striking ‘‘Congress or a’’ and inserting ‘‘Con13 gress and a’’. 

14 SECTION 1. SHORT TITLE: TABLE OF CONTENTS. 

15 (a) SHORT TITLE.—This Act may be cited as the 

16 ‘‘Stop Over Spending Act of 2006’’. 

17 (b) TABLE OF CONTENTS.—The table of contents for 

18 this Act is as follows: 

Sec. 1. Short title: Table of contents. 

Sec. 2. Purposes. 

Sec. 3. Severability. 

TITLE I—LEGISLATIVE LINE ITEM VETO ACT OF 2006 

Sec. 101. Short title. 

Sec. 102. Legislative line item veto. 

TITLE II—DEFICIT REDUCTION 

Subtitle A—Definitions, Administration, and Sequestration 

Sec. 201. Definitions. 

Sec. 202. Administration, reconciliation, and effect of sequestration. 

Sec. 203. GAO Compliance Report. 


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Subtitle B—Discretionary Spending Limits 

Sec. 211. Discretionary Sequestration Reports. 

Sec. 212. Limits. 

Subtitle C—Maximum Deficit Amount Limitation 

Sec. 221. Maximum deficit amount. 

Sec. 222. Reporting of excess deficits. 

Sec. 223. Congressional response to OMB and CBO Reconciliation Report. 

Sec. 224. Revised estimates and final maximum deficit amount sequestration reports. 

Sec. 225. Maximum deficit amount-Presidential order. 

Sec. 226. Congressional response to low growth. 

Sec. 227. Exemptions from sequestration. 

Sec. 228. Submission of President’s budget; maximum deficit amount may not be 

exceeded. 

TITLE III—BIENNIAL BUDGET AND APPROPRIATIONS 

Sec. 301. Revision of timetable. 

Sec. 302. Amendments to the Congressional Budget and Impoundment Control 

Act of 1974. 

Sec. 303. Amendments to title 31, United States Code. 

Sec. 304. Two-year appropriations; title and style of appropriations Acts. 

Sec. 305. Multiyear authorizations. 

Sec. 306. Government plans on a biennial basis. 

Sec. 307. Biennial appropriation bills. 

Sec. 308. Report on changes in law. 

Sec. 309. Effective date. 

TITLE IV—COMMISSIONS 

Subtitle A—National Commission on Entitlement Solvency 

Sec. 401. Definitions. 

Sec. 402. Establishment of Commission. 

Sec. 403. Expedited consideration of Commission recommendations. 

Subtitle B—Commission on Congressional Budgetary Accountability and 

Review of Federal Agencies 

Sec. 411. Definitions. 

Sec. 412. Establishment of Commission. 

Sec. 413. Duties of the Commission. 

Sec. 414. Powers of the Commission. 

Sec. 415. Commission personnel matters. 

Sec. 416. Expedited consideration of reform proposals. 

Sec. 417. Termination of the Commission. 

Sec. 418. Authorization of appropriations. 

TITLE V—BUDGET PROCESS REFORMS 

Sec. 501. Definitions. 

Sec. 502. Annual Concurrent Resolution on the Budget. 

Sec. 503. Committee allocations. 

Sec. 504. Budget resolution adoption. 

Sec. 505. Consideration of the budget resolution. 


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Sec. 506. Budget projections. 

Sec. 507. Reconciliation. 

Sec. 508. Budgeting levels. 

Sec. 509. Determinations and points of order. 

Sec. 510. Extraneous matter in reconciliation legislation. 

Sec. 511. Adjustments. 

Sec. 512. Direct spending limitation. 

Sec. 513. Appropriations requests of the President. 

1 SEC. 2. PURPOSES. 

2 The purposes of this Act are— 

3 (1) to enable the President and Congress to re4 scind wasteful spending in an expedited manner; 

5 (2) to effectively balance the budget by 2012; 

6 (3) to reinstate statutory discretionary caps; 

7 (4) to reduce the practice of using spending des8 ignated as an ‘‘emergency’’ as a mechanism to cir9 cumvent spending caps; 

10 (5) to establish targets for the deficit as its share 

11 of the United States economy, specifically as a per12 centage of Gross Domestic Product; 

13 (6) to require automatic spending reduction rec14 onciliation directives to achieve annual deficit targets; 

15 (7) to put in place automatic sequester proce16 dures to reduce discretionary and mandatory spend17 ing when either statutory caps have been exceeded or 

18 deficit targets have not been met; 

19 (8) to require Congress to act upon legislation to 

20 ensure the solvency of the Social Security and Medi21 care Programs; 


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1 (9) to require Congress to act upon legislation to 

2 identify and eliminate waste and duplication in Fed3 eral programs; 

4 (10) to establish biennial budgeting; 

5 (11) to strengthen and improve the Congressional 

6 budget resolution and reconciliation process; and 

7 (12) to provide short term and long term solu8 tions to ensure the financial security of our nation so 

9 that our children and grandchildren will not be sad10 dled with insurmountable debt. 

11 SEC. 3. SEVERABILITY. 

12 If any provision of this Act, an amendment made by 

13 this Act, or the application of such provision or amendment 

14 to any person or circumstance is held to be unconstitu15 tional, the remainder of this Act, the amendments made by 

16 this Act, and the application of the provisions of such to 

17 any person or circumstance shall not be affected thereby. 

18 TITLE I—LEGISLATIVE LINE 

19 ITEM VETO ACT OF 2006 

20 SEC. 101. SHORT TITLE. 

21 This title may be cited as the ‘‘Legislative Line Item 

22 Veto Act of 2006’’. 

23 SEC. 102. LEGISLATIVE LINE ITEM VETO. 

24 (a) IN GENERAL.—Title X of the Congressional Budget 

25 and Impoundment Control Act of 1974 (2 U.S.C. 621 et 


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1 seq.) is amended by striking part C and inserting the fol2 lowing: 

3 ‘‘PART C—LEGISLATIVE LINE ITEM VETO

4 ‘‘EXPEDITED CONSIDERATION OF CERTAIN PROPOSED

5 RESCISSIONS

6 ‘‘SEC. 1021. (a) PROPOSED RESCISSIONS.—The Presi7 dent may send a special message, at the time and in the 

8 manner provided in subsection (b), that proposes to rescind 

9 dollar amounts of discretionary budget authority, items of 

10 direct spending, and targeted tax benefits. 

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

12 ‘‘(1) SPECIAL MESSAGE.— 

13 ‘‘(A) IN GENERAL.— 

14 ‘‘(i) FOUR MESSAGES.—The President 

15 may transmit to Congress not to exceed 4 

16 special messages per calendar year, pro17 posing to rescind dollar amounts of discre18 tionary budget authority, items of direct 

19 spending, and targeted tax benefits. 

20 ‘‘(ii) TIMING.—Special messages may 

21 be transmitted under clause (i)— 

22 ‘‘(I) with the President’s budget 

23 submitted pursuant to section 1105 of 

24 title 31, United States Code; and 


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1 ‘‘(II) 3 other times as determined 

2 by the President. 

3 ‘‘(iii) LIMITATIONS.— 

4 ‘‘(I) IN GENERAL.—Special mes5 sages shall be submitted within 1 cal6 endar year of the date of enactment of 

7 any dollar amount of discretionary 

8 budget authority, item of direct spend9 ing, or targeted tax benefit the Presi10 dent proposes to rescind pursuant to 

11 this Act. 

12 ‘‘(II) RESUBMITTAL REJECTED.— 

13 If Congress rejects a bill introduced 

14 under this part, the President may not 

15 resubmit any of the dollar amounts of 

16 discretionary budget authority, items 

17 of direct spending, or targeted tax ben18 efits in that bill under this part, or 

19 part B with respect to dollar amounts 

20 of discretionary budget authority. 

21 ‘‘(III) RESUBMITAL AFTER SINE

22 DIE.—If Congress does not complete ac23 tion on a bill introduced under this 

24 part because Congress adjourns sine 

25 die, the President may resubmit some 


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1 or all of the dollar amounts of discre2 tionary budget authority, items of di3 rect spending, and targeted tax benefits 

4 in that bill in not more than 1 subse5 quent special message under this part, 

6 or part B with respect to dollar 

7 amounts of discretionary budget au8 thority. 

9 ‘‘(B) CONTENTS OF SPECIAL MESSAGE.— 

10 Each special message shall specify, with respect 

11 to the dollar amount of discretionary budget au12 thority, item of direct spending, or targeted tax 

13 benefit proposed to be rescinded— 

14 ‘‘(i) the dollar amount of discretionary 

15 budget authority available and proposed for 

16 rescission from accounts, departments, or 

17 establishments of the government and the 

18 dollar amount of the reduction in outlays 

19 that would result from the enactment of 

20 such rescission of discretionary budget au21 thority for the time periods set forth in 

22 clause (iii); 

23 ‘‘(ii) the specific items of direct spend24 ing and targeted tax benefits proposed for 

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1 ductions in budget authority and outlays or 

2 increases in receipts that would result from 

3 enactment of such rescission for the time pe4 riods set forth in clause (iii); 

5 ‘‘(iii) the budgetary effects of proposals 

6 for rescission, estimated as of the date the 

7 President submits the special message, rel8 ative to the most recent levels calculated 

9 consistent with the methodology described in 

10 section 257 of the Balanced Budget and 

11 Emergency Deficit Control Act of 1985 and 

12 included with a budget submission under 

13 section 1105(a) of title 31, United States 

14 Code, for the time periods of— 

15 ‘‘(I) the fiscal year in which the 

16 proposal is submitted; and 

17 ‘‘(II) each of the 10 following fis18 cal years beginning with the fiscal year 

19 after the fiscal year in which the pro20 posal is submitted; 

21 ‘‘(iv) any account, department, or es22 tablishment of the Government to which 

23 such dollar amount of discretionary budget 

24 authority or item of direct spending is 


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1 available for obligation, and the specific 

2 project or governmental functions involved; 

3 ‘‘(v) the reasons why such dollar 

4 amount of discretionary budget authority or 

5 item of direct spending or targeted tax ben6 efit should be rescinded; 

7 ‘‘(vi) the estimated fiscal and economic 

8 impacts, of the proposed rescission; 

9 ‘‘(vii) to the maximum extent prac10 ticable, all facts, circumstances, and consid11 erations relating to or bearing upon the 

12 proposed rescission and the decision to effect 

13 the proposed rescission, and the estimated 

14 effect of the proposed rescission upon the ob15 jects, purposes, and programs for which the 

16 budget authority or items of direct spending 

17 or targeted tax benefits are provided; and 

18 ‘‘(viii) a draft bill that, if enacted, 

19 would rescind the budget authority, items of 

20 direct spending and targeted tax benefits 

21 proposed to be rescinded in that special 

22 message. 

23 ‘‘(2) ANALYSIS BY CONGRESSIONAL BUDGET OF24 FICE AND JOINT COMMITTEE ON TAXATION.— 


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1 ‘‘(A) IN GENERAL.—Upon the receipt of a 

2 special message under this part proposing to re3 scind dollar amounts of discretionary budget au4 thority, items of direct spending, and targeted 

5 tax benefits— 

6 ‘‘(i) the Director of the Congressional 

7 Budget Office shall prepare an estimate of 

8 the savings in budget authority or outlays 

9 resulting from such proposed rescission and 

10 shall include in its estimate, an analysis 

11 prepared by the Joint Committee on Tax12 ation related to targeted tax benefits; and 

13 ‘‘(ii) the Director of the Joint Com14 mittee on Taxation shall prepare an esti15 mate and forward such estimate to the Con16 gressional Budget Office, of the savings from 

17 repeal of targeted tax benefits. 

18 ‘‘(B) METHODOLOGY.—The estimates re19 quired by subparagraph (A) shall be made rel20 ative to the most recent levels calculated con21 sistent with the methodology used to calculate a 

22 baseline under section 257 of the Balanced Budg23 et and Emergency Control Act of 1985 and in24 cluded with a budget submission under section 

25 1105(a) of title 31, United States Code, and 


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1 transmitted to the chairmen of the Committees 

2 on the Budget of the House of Representatives 

3 and Senate. 

4 ‘‘(3) ENACTMENT OF RESCISSION BILL.— 

5 ‘‘(A) DEFICIT REDUCTION.—Amounts of 

6 budget authority or items of direct spending or 

7 targeted tax benefit that are rescinded pursuant 

8 to enactment of a bill as provided under this 

9 part shall be dedicated only to deficit reduction 

10 and shall not be used as an offset for other 

11 spending increases or revenue reductions. 

12 ‘‘(B) ADJUSTMENT OF BUDGET TARGETS.— 

13 Not later than 5 days after the date of enactment 

14 of a rescission bill as provided under this part, 

15 the chairs of the Committees on the Budget of the 

16 Senate and the House of Representatives shall re17 vise spending and revenue levels under section 

18 311(a) of the Congressional Budget Act of 1974 

19 and adjust the committee allocations under sec20 tion 302(a) of the Congressional Budget Act of 

21 1974 or any other adjustments as may be appro22 priate to reflect the rescission. The adjustments 

23 shall reflect the budgetary effects of such rescis24 sions as estimated by the President pursuant to 

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1 tees shall report revised allocations pursuant to 

2 section 302(b) of the Congressional Budget Act of 

3 1974. Notwithstanding any other provision of 

4 law, the revised allocations and aggregates shall 

5 be considered to have been made under a concur6 rent resolution on the budget agreed to under the 

7 Congressional Budget Act of 1974 and shall be 

8 enforced under the procedures of that Act. 

9 ‘‘(C) ADJUSTMENTS TO CAPS.—After enact10 ment of a rescission bill as provided under this 

11 part, the President shall revise applicable limits 

12 under the Stop Over Spending Act of 2006, as 

13 appropriate. 

14 ‘‘(c) PROCEDURES FOR EXPEDITED CONSIDER15 ATION.— 

16 ‘‘(1) IN GENERAL.— 

17 ‘‘(A) INTRODUCTION.—Before the close of 

18 the second day of session of the Senate and the 

19 House of Representatives, respectively, after the 

20 date of receipt of a special message transmitted 

21 to Congress under subsection (b), the majority 

22 leader of each House, for himself, or minority 

23 leader of each House, for himself, or a Member 

24 of that House designated by that majority leader 

25 or minority leader shall introduce (by request) 


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1 the President’s draft bill to rescind the amounts 

2 of budget authority or items of direct spending 

3 or targeted tax benefits, as specified in the spe4 cial message and the President’s draft bill. If the 

5 bill is not introduced as provided in the pre6 ceding sentence in either House, then, on the 

7 third day of session of that House after the date 

8 of receipt of that special message, any Member of 

9 that House may introduce the bill. 

10 ‘‘(B) REFERRAL AND REPORTING.— 

11 ‘‘(i) ONE COMMITTEE.—The bill shall 

12 be referred by the presiding officer to the 

13 appropriate committee. The committee shall 

14 report the bill without any revision and 

15 with a favorable, an unfavorable, or without 

16 recommendation, not later than the fifth 

17 day of session of that House after the date 

18 of introduction of the bill in that House. If 

19 the committee fails to report the bill within 

20 that period, the committee shall be auto21 matically discharged from consideration of 

22 the bill, and the bill shall be placed on the 

23 appropriate calendar. 

24 ‘‘(ii) MULTIPLE COMMITTEES.— 


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1 ‘‘(I) REFERRALS.—If a bill con2 tains provisions in the jurisdiction of 

3 more than 1 committee, the bill shall 

4 be jointly referred to the committees of 

5 jurisdiction and the Committee on the 

6 Budget. 

7 ‘‘(II) VIEWS OF COMMITTEE.— 

8 Any committee, other than the Com9 mittee on the Budget, to which a bill is 

10 referred under this clause may submit 

11 a favorable, an unfavorable rec12 ommendation, without recommenda13 tion with respect to the bill to the Com14 mittee on the Budget prior to the re15 porting or discharge of the bill. 

16 ‘‘(III) REPORTING.—The Com17 mittee on the Budget shall report the 

18 bill not later than the fifth day of ses19 sion of that House after the date of in20 troduction of the bill in that House, 

21 without any revision and with a favor22 able or unfavorable recommendation, 

23 or with no recommendation, together 

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1 mittee to which the bill has been re2 ferred. 

3 ‘‘(IV) DISCHARGE.—If the Com4 mittee on the Budget fails to report the 

5 bill within that period, the committee 

6 shall be automatically discharged from 

7 consideration of the bill, and the bill 

8 shall be placed on the appropriate cal9 endar. 

10 ‘‘(C) FINAL PASSAGE.—A vote on final pas11 sage of the bill shall be taken in the Senate and 

12 the House of Representatives on or before the 

13 close of the 10th day of session of that House 

14 after the date of the introduction of the bill in 

15 that House. If the bill is passed, the Clerk of the 

16 House of Representatives shall cause the bill to 

17 be transmitted to the Senate before the close of 

18 the next day of session of the House. 

19 ‘‘(2) CONSIDERATION IN THE HOUSE OF REP20 RESENTATIVES.— 

21 ‘‘(A) MOTION TO PROCEED TO CONSIDER22 ATION.—A motion in the House of Representa23 tives to proceed to the consideration of a bill 

24 under this subsection shall be highly privileged 

25 and not debatable. An amendment to the motion 


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1 shall not be in order, nor shall it be in order to 

2 move to reconsider the vote by which the motion 

3 is agreed to or disagreed to. 

4 ‘‘(B) LIMITS ON DEBATE.—Debate in the 

5 House of Representatives on a bill under this 

6 subsection shall not exceed 4 hours, which shall 

7 be divided equally between those favoring and 

8 those opposing the bill. A motion further to limit 

9 debate shall not be debatable. It shall not be in 

10 order to move to recommit a bill under this sub11 section or to move to reconsider the vote by 

12 which the bill is agreed to or disagreed to. 

13 ‘‘(C) APPEALS.—Appeals from decisions of 

14 the chair relating to the application of the Rules 

15 of the House of Representatives to the procedure 

16 relating to a bill under this part shall be decided 

17 without debate. 

18 ‘‘(D) APPLICATION OF HOUSE RULES.—Ex19 cept to the extent specifically provided in this 

20 part, consideration of a bill under this part shall 

21 be governed by the Rules of the House of Rep22 resentatives. It shall not be in order in the House 

23 of Representatives to consider any bill intro24 duced pursuant to the provisions of this part 


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1 under a suspension of the rules or under a spe2 cial rule. 

3 ‘‘(3) CONSIDERATION IN THE SENATE.— 

4 ‘‘(A) MOTION TO PROCEED TO CONSIDER5 ATION.—A motion to proceed to the consider6 ation of a bill under this subsection in the Sen7 ate shall not be debatable. A motion to proceed 

8 to consideration of the bill may be made even 

9 though a previous motion to the same effect has 

10 been disagreed to. It shall not be in order to 

11 move to reconsider the vote by which the motion 

12 to proceed is agreed to or disagreed to. 

13 ‘‘(B) LIMITS ON DEBATE.—Debate in the 

14 Senate on a bill under this subsection, and all 

15 debatable motions and appeals in connection 

16 therewith, shall not exceed a total of 10 hours, 

17 equally divided and controlled in the usual form. 

18 ‘‘(C) DEBATABLE MOTIONS AND APPEALS.— 

19 Debate in the Senate on any debatable motion or 

20 appeal in connection with a bill under this sub21 section shall be limited to not more than 1 hour 

22 from the time allotted for debate, to be equally 

23 divided and controlled in the usual form. 


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1 ‘‘(D) MOTION TO LIMIT DEBATE.—A motion 

2 in the Senate to further limit debate on a bill 

3 under this subsection is not debatable. 

4 ‘‘(E) MOTION TO RECOMMIT.—A motion to 

5 recommit a bill under this subsection is not in 

6 order. 

7 ‘‘(F) CONSIDERATION OF THE HOUSE

8 BILL.— 

9 ‘‘(i) IN GENERAL.—If the Senate has 

10 received the House companion bill to the 

11 bill introduced in the Senate prior to the 

12 vote required under paragraph (1)(C), then 

13 the Senate shall consider, and the vote 

14 under paragraph (1)(C) shall occur on, the 

15 House companion bill. 

16 ‘‘(ii) PROCEDURE AFTER VOTE ON

17 SENATE BILL.—If the Senate votes, pursu18 ant to paragraph (1)(C), on the bill intro19 duced in the Senate, the Senate bill shall be 

20 held pending receipt of the House message 

21 on the bill. Upon receipt of the House com22 panion bill, the House bill shall be deemed 

23 to be considered, read for the third time, 

24 and the vote on passage of the Senate bill 


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1 shall be considered to be the vote on the bill 

2 received from the House. 

3 ‘‘(d) AMENDMENTS AND DIVISIONS PROHIBITED.— 

4 ‘‘(1) IN GENERAL.—No amendment to a bill con5 sidered under this part shall be in order in either the 

6 Senate or the House of Representatives. 

7 ‘‘(2) NO DIVISION.—It shall not be in order to 

8 demand a division of the question in the House of 

9 Representatives (or in a Committee of the Whole). 

10 ‘‘(3) NO SUSPENSION.—No motion to suspend the 

11 application of this subsection shall be in order in the 

12 House of Representatives, nor shall it be in order in 

13 either the House of Representatives or the Senate to 

14 suspend the application of this subsection by unani15 mous consent. 

16 ‘‘(e) TEMPORARY PRESIDENTIAL AUTHORITY TO

17 WITHHOLD.— 

18 ‘‘(1) AVAILABILITY.—The President may not 

19 withhold any dollar amount of discretionary budget 

20 authority until the President transmits and Congress 

21 receives a special message pursuant to subsection (b). 

22 Upon receipt by Congress of a special message pursu23 ant to subsection (b), the President may direct that 

24 any dollar amount of discretionary budget authority 

25 proposed to be rescinded in that special message shall 


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1 be withheld from obligation for a period not to exceed 

2 45 calendar days from the date of receipt by Congress. 

3 ‘‘(2) EARLY AVAILABILITY.—The President may 

4 make any dollar amount of discretionary budget au5 thority withheld from obligation pursuant to para6 graph (1) available at an earlier time if the President 

7 determines that continued withholding would not fur8 ther the purposes of this Act. 

9 ‘‘(f) TEMPORARY PRESIDENTIAL AUTHORITY TO SUS10 PEND.— 

11 ‘‘(1) SUSPEND.— 

12 ‘‘(A) IN GENERAL.—The President may not 

13 suspend the execution of any item of direct 

14 spending or targeted tax benefit until the Presi15 dent transmits and Congress receives a special 

16 message pursuant to subsection (b). Upon receipt 

17 by Congress of a special message, the President 

18 may suspend the execution of any item of direct 

19 spending or targeted tax benefit proposed to be 

20 rescinded in that message for a period not to ex21 ceed 45 calendar days from the date of receipt by 

22 Congress. 

23 ‘‘(B) LIMITATION ON 45-DAY PERIOD.—The 

24 45-day period described in subparagraph (A) 

25 shall be reduced by the number of days contained 


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1 in the period beginning on the effective date of 

2 the item of direct spending or targeted tax ben3 efit; and ending on the date that is the later of— 

4 ‘‘(i) the effective date of the item of di5 rect spending or targeted benefit; or 

6 ‘‘(ii) the date that Congress receives the 

7 special message. 

8 ‘‘(C) CLARIFICATION.—Notwithstanding 

9 subparagraph (B), in the case of an item of di10 rect spending or targeted tax benefit with an ef11 fective date within 45 days after the date of en12 actment, the beginning date of the period cal13 culated under subparagraph (B) shall be the date 

14 that is 45 days after the date of enactment and 

15 the ending date shall be the date that is the later 

16 of— 

17 ‘‘(i) the date that is 45 days after en18 actment; or 

19 ‘‘(ii) the date that Congress receives the 

20 special message. 

21 ‘‘(2) EARLY AVAILABILITY.—The President may 

22 terminate the suspension of any item of direct spend23 ing or targeted tax benefit suspended pursuant to 

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1 termines that continuation of the suspension would 

2 not further the purposes of this Act. 

3 ‘‘(g) DEFINITIONS.—In this part: 

4 ‘‘(1) APPROPRIATION LAW.—The term ‘appro5 priation law’ means any general or special appro6 priation Act, and any Act or joint resolution making 

7 supplemental, deficiency, or continuing appropria8 tions. 

9 ‘‘(2) CALENDAR DAY.—The term ‘calendar day’ 

10 means a standard 24-hour period beginning at mid11 night. 

12 ‘‘(3) DAYS OF SESSION.—The term ‘days of ses13 sion’ means only those days on which both Houses of 

14 Congress are in session. 

15 ‘‘(4) DOLLAR AMOUNT OF DISCRETIONARY BUDG16 ET AUTHORITY.—The term ‘dollar amount of discre17 tionary budget authority’ means the dollar amount of 

18 budget authority and obligation limitations— 

19 ‘‘(A) specified in an appropriation law, or 

20 the dollar amount of budget authority required 

21 to be allocated by a specific proviso in an appro22 priation law for which a specific dollar figure 

23 was not included; 

24 ‘‘(B) represented separately in any table, 

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1 ment of managers or the governing committee re2 port accompanying such law; 

3 ‘‘(C) required to be allocated for a specific 

4 program, project, or activity in a law (other 

5 than an appropriation law) that mandates obli6 gations from or within accounts, programs, 

7 projects, or activities for which budget authority 

8 or an obligation limitation is provided in an ap9 propriation law; 

10 ‘‘(D) represented by the product of the esti11 mated procurement cost and the total quantity of 

12 items specified in an appropriation law or in13 cluded in the statement of managers or the gov14 erning committee report accompanying such law; 

15 or 

16 ‘‘(E) represented by the product of the esti17 mated procurement cost and the total quantity of 

18 items required to be provided in a law (other 

19 than an appropriation law) that mandates obli20 gations from accounts, programs, projects, or ac21 tivities for which dollar amount of discretionary 

22 budget authority or an obligation limitation is 

23 provided in an appropriation law. 

24 ‘‘(5) RESCIND OR RESCISSION.—The term ‘re25 scind’ or ‘rescission’ means— 


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1 ‘‘(A) in the case of a dollar amount of dis2 cretionary budget authority, to reduce or repeal 

3 a provision of law to prevent that budget author4 ity or obligation limitation from having legal 

5 force or effect; and 

6 ‘‘(B) in the case of direct spending or tar7 geted tax benefit, to repeal a provision of law in 

8 order to prevent the specific legal obligation of 

9 the United States from having legal force or ef10 fect. 

11 ‘‘(6) DIRECT SPENDING.—The term ‘direct 

12 spending’ means budget authority provided by law 

13 (other than an appropriation law), mandatory spend14 ing provided in appropriation Acts, and entitlement 

15 authority. 

16 ‘‘(7) ITEM OF DIRECT SPENDING.—The term 

17 ‘item of direct spending’ means any specific provision 

18 of law enacted after the effective date of the Legisla19 tive Line Item Veto Act of 2006 that is estimated to 

20 result in an increase in budget authority or outlays 

21 for direct spending relative to the most recent levels 

22 calculated consistent with the methodology described 

23 in section 257 of the Balanced Budget and Emergency 

24 Deficit Control Act of 1985 and included with a 

25 budget submission under section 1105(a) of title 31, 


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1 United States Code, and, with respect to estimates 

2 made after that budget submission that are not in3 cluded with it, estimates consistent with the economic 

4 and technical assumptions underlying the most re5 cently submitted President’s budget. 

6 ‘‘(8) SUSPEND THE EXECUTION.—The term ‘sus7 pend the execution’ means, with respect to an item of 

8 direct spending or a targeted tax benefit, to stop the 

9 carrying into effect of the specific provision of law 

10 that provides such benefit; and 

11 ‘‘(9) TARGETED TAX BENEFIT.—The term ‘tar12 geted tax benefit’ means only those provisions— 

13 ‘‘(A) estimated by the Joint Committee on 

14 Taxation to result in a loss of revenues relative 

15 to the most recent levels calculated consistent 

16 with the methodology described in section 257 of 

17 the Balanced Budget and Emergency Deficit 

18 Control Act of 1985 and included with a budget 

19 submission under section 1105(a) of title 31, 

20 United States Code, and with respect to esti21 mates made after that budget submission that 

22 are not included with it, estimates consistent 

23 with the economic and technical assumptions un24 derlying the most recently submitted President’s 

25 budget; and 


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1 ‘‘(B) having the practical effect of providing 

2 more favorable tax treatment to a particular tax3 payer or limited group of taxpayers when com4 pared with other similarly situated taxpayers. 

5 ‘‘(h) CONGRESSIONAL IDENTIFICATION OF TARGETED

6 TAX BENEFITS.— 

7 ‘‘(1) STATEMENT BY JOINT TAX COMMITTEE.— 

8 The Joint Committee on Taxation shall review any 

9 revenue or reconciliation bill or joint resolution which 

10 includes any amendment to the Internal Revenue 

11 Code of 1986 that is being prepared for filing by a 

12 committee of conference of the 2 Houses, and shall 

13 identify, prior to consideration of such conference re14 port, whether such bill or joint resolution contains 

15 any targeted tax benefits. The Joint Committee on 

16 Taxation shall provide to the committee of conference 

17 a statement identifying any such targeted tax benefits 

18 or declaring that the bill or joint resolution does not 

19 contain any targeted tax benefits. The statement shall 

20 be included in the statement of managers to accom21 pany such conference report and made available to 

22 any Member of Congress by the Joint Committee on 

23 Taxation immediately upon request. 

24 ‘‘(2) STATEMENT INCLUDED IN LEGISLATION.— 

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1 resentatives or any rule or precedent of the Senate, 

2 any revenue or reconciliation bill or joint resolution, 

3 which includes any amendment to the Internal Rev4 enue Code of 1986 reported by a committee of con5 ference of the House of Representatives and the Sen6 ate, may include, as a separate section of such bill or 

7 joint resolution, the information contained in the 

8 statement of the Joint Committee on Taxation.’’. 

9 (b) EXERCISE OF RULEMAKING POWERS.—Section 

10 904 of the Congressional Budget Act of 1974 (2 U.S.C. 621 

11 note) is amended— 

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

13 and inserting ‘‘1017, and 1021’’; and 

14 (2) in subsection (d), by striking ‘‘section 1017’’ 

15 and inserting ‘‘sections 1017 and 1021’’. 

16 (c) CLERICAL AMENDMENTS.— 

17 (1) SHORT TITLE.—Section 1(a) of the Congres18 sional Budget and Impoundment Control Act of 1974 

19 is amended by— 

20 (A) striking ‘‘Parts A and B’’ before ‘‘title 

21 X’’ and inserting ‘‘Parts A, B, and C’’; and 

22 (B) striking the last sentence and inserting 

23 at the end the following new sentence: ‘‘Part C 

24 of title X also may be cited as the ‘Legislative 

25 Line Item Veto Act of 2006’.’’. 


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1 (2) TABLE OF CONTENTS.—The table of contents 

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

3 and Impoundment Control Act of 1974 is amended by 

4 deleting the contents for part C of title X and insert5 ing the following: 

‘‘PART C—LEGISLATIVE LINE ITEM VETO

‘‘Sec. 1021. Expedited consideration of certain proposed rescissions.’’. 

6 (d) SEVERABILITY.—If any provision of this Act or the 

7 amendments made by it is held to be unconstitutional, the 

8 remainder of this Act and the amendments made by it shall 

9 not be affected by the holding. 

10 (e) EFFECTIVE DATE AND EXPIRATION.— 

11 (1) EFFECTIVE DATE.—The amendments made 

12 by this Act shall— 

13 (A) take effect on the date of enactment of 

14 this Act; and 

15 (B) apply to any dollar amount of discre16 tionary budget authority, item of direct spend17 ing, or targeted tax benefit provided in an Act 

18 enacted on or after September 1, 2006. 

19 (2) EXPIRATION.—The amendments made by 

20 this Act shall expire on December 31, 2010. 


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1 TITLE II—DEFICIT REDUCTION 

2 Subtitle A—Definitions, 

3 Administration, and Sequestration 

4 SEC. 201. DEFINITIONS. 

5 In this title: 

6 (1) ACCOUNT.—The term ‘‘account’’ means— 

7 (A) for discretionary budget authority, an 

8 item for which appropriations are made in any 

9 appropriation Act; and 

10 (B) for items not provided for in appro11 priation Acts, direct spending and outlays there12 from identified in the program and finance 

13 schedules contained in the appendix to the Budg14 et of the United States for the current year. 

15 (2) BREACH.—The term ‘‘breach’’ means, for 

16 any fiscal year, the amount by which discretionary 

17 budget authority enacted for that year exceeds the 

18 spending limit for budget authority for that year. 

19 (3) BUDGET AUTHORITY; NEW BUDGET AUTHOR20 ITY; AND OUTLAYS.—The terms ‘‘budget authority’’, 

21 ‘‘new budget authority’’, and ‘‘outlays’’ have the 

22 meanings given to such terms in section 3 of the Con23 gressional Budget and Impoundment Control Act of 

24 1974 (2 U.S.C. 622). 


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1 (4) BUDGET YEAR.—The term ‘‘budget year’’ 

2 means, with respect to a session of Congress, the fiscal 

3 year of the Government that starts on October 1 of the 

4 calendar year in which that session begins. 

5 (5) CBO.—The term ‘‘CBO’’ means the Director 

6 of the Congressional Budget Office. 

7 (6) CURRENT.—The term ‘‘current’’ means— 

8 (A) with respect to the Office of Manage9 ment and Budget estimates included with a 

10 budget submission under section 1105(a) of title 

11 31, United States Code, the estimates consistent 

12 with the economic and technical assumptions un13 derlying that budget; 

14 (B) with respect to estimates made after 

15 that budget submission that are not included 

16 with it, the estimates consistent with the eco17 nomic and technical assumptions underlying the 

18 most recently submitted President’s budget; and 

19 (C) with respect to the Congressional Budg20 et Office, estimates consistent with the economic 

21 and technical assumptions as required by section 

22 202(e)(1) of the Congressional Budget Act of 

23 1974. 


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1 (7) CURRENT YEAR.—The term ‘‘current year’’ 

2 means, with respect to a budget year, the fiscal year 

3 that immediately precedes that budget year. 

4 (8) DEFICIT.—The term ‘‘deficit’’ means, with 

5 respect to any fiscal year, the amount by which total 

6 budget outlays for such fiscal year exceed total govern7 mental receipts for such fiscal year. In calculating the 

8 deficit for purposes of comparison with the maximum 

9 deficit amount under section 221 and in calculating 

10 the excess deficit for purposes of subtitle C (notwith11 standing section 710(a) of the Social Security Act (42 

12 U.S.C. 911)) for any fiscal year, the receipts of the 

13 Federal Old-Age and Survivors Insurance Trust Fund 

14 and the Federal Disability Insurance Trust Fund for 

15 such fiscal year and the taxes payable under sections 

16 1401(a), 3101(a), and 3111(a) of the Internal Rev17 enue Code of 1954 (26 U.S.C. 1401, 3101, 3111) dur18 ing such fiscal year shall be included in total revenues 

19 for such fiscal year, and the disbursements of each 

20 such Trust Fund for such fiscal year shall be included 

21 in total budget outlays for such fiscal year. Notwith22 standing any other provision of law except to the ex23 tent provided by section 710(a) of the Social Security 

24 Act (42 U.S.C. 911) the receipts, revenues, disburse25 ments, budget authority, and outlays of each off-budgVerDate Aug 31 2005 22:35 Jul 14, 2006 Jkt 049196 PO 00000 Frm 00188 Fmt 6652 Sfmt 6203 E:\BILLS\S3521.RS S3521

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1 et Federal entity for a fiscal year shall be included 

2 in total budget authority, total budget outlays, and 

3 total revenues and the amounts of budget authority 

4 and outlays set forth for each major functional cat5 egory, for such fiscal year. 

6 (9) DIRECT SPENDING.—The term ‘‘direct spend7 ing’’ shall have the meaning given such term in sec8 tion 3(3) of the Congressional Budget Act of 1974. 

9 (10) DISCRETIONARY BUDGET AUTHORITY.—The 

10 term ‘‘discretionary budget authority’’ means budg11 etary authority (except to fund mandatory programs) 

12 provided in appropriation Acts. 

13 (11) DISCRETIONARY SPENDING LIMIT.—The 

14 term ‘‘discretionary spending limit’’ shall mean the 

15 amounts specified in section 212. 

16 (12) EXCESS DEFICIT AMOUNT.—The term ‘‘ex17 cess deficit amount’’, with respect to any fiscal year, 

18 means the amount of the deficit reduced by the esti19 mated reductions of outlays resulting from any se20 questration in subtitle C, that exceeds the maximum 

21 deficit amount. 

22 (13) OMB.—The term ‘‘OMB’’ means the Direc23 tor of the Office of Management and Budget. 

24 (14) SEQUESTRATION.—The term ‘‘sequestra25 tion’’— 


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1 (A) with respect to discretionary budget au2 thority, means the cancellation or reduction of 

3 budget authority (except budget authority to 

4 fund mandatory programs) provided in appro5 priation Acts; and 

6 (B) with respect to the excess deficit 

7 amount, means the amount cancelled or reduced 

8 from direct spending and outlays flowing there9 from. 

10 SEC. 202. ADMINISTRATION, RECONCILIATION, AND EFFECT 

11 OF SEQUESTRATION. 

12 (a) TIMETABLE.—The timetable with respect to this 

13 title is as follows: 

Date Action to be completed 

5 days before the President’s budget submission CBO Discretionary Sequestration and 

Maximum Deficit Amount Preview 

Report.

The President’s budget submission OMB Discretionary Sequestration and 

Maximum Deficit Amount Preview 

Report.

August 15 CBO Discretionary Sequestration and 

Maximum Deficit Amount Reconciliation Report.

August 20 OMB Discretionary Sequestration and 

Maximum Deficit Amount Reconciliation Report.

September 15 Budget Committee Reconciliation Directives. 

20 days after Budget Committee Action Committees Respond to Reconciliation 

Directives 

10 days after end of session CBO Final Discretionary Sequestration 

and Maximum Deficit Amount Sequestration Report. 

15 days after end of session OMB Final Discretionary Sequestration and Maximum Deficit Amount 

Sequestration Report/Presidential 

Sequestration Order. 


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1 (b) PRESIDENTIAL ORDER.— 

2 (1) IN GENERAL.—On the date specified in sub3 section (a), if in its Final Sequestration Report, 

4 OMB estimates that any sequestration is required, the 

5 President shall issue an order fully implementing 

6 without change all sequestrations required by the 

7 OMB calculations set forth in that report. This order 

8 shall be effective on issuance. 

9 (2) SPECIAL RULE.—If the date specified for the 

10 submission of a Presidential order under subsection 

11 (a) falls on a Sunday or legal holiday, such order 

12 shall be issued on the following day. 

13 (c) EFFECTS OF SEQUESTRATION.—The effects of se14 questration shall be as follows: 

15 (1) Budgetary resources sequestered from any ac16 count shall be permanently cancelled, except as pro17 vided in paragraph (5). 

18 (2) Except as otherwise provided, the same per19 centage sequestration shall apply to all programs, 

20 projects, and activities within a budget account (with 

21 programs, projects, and activities as delineated in the 

22 appropriation Act or accompanying report for the 

23 relevant fiscal year covering that account). 

24 (3) Administrative regulations or similar actions 

25 implementing a sequestration shall be made within 


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1 120 days of the sequestration order. To the extent that 

2 formula allocations differ at different levels of budg3 etary resources within an account, program, project, 

4 or activity, the sequestration shall be interpreted as 

5 producing a lower total appropriation, with the re6 maining amount of the appropriation being obligated 

7 in a manner consistent with program allocation for8 mulas in substantive law. 

9 (4) Except as otherwise provided in this subtitle, 

10 obligations or budgetary resources in sequestered ac11 counts shall be reduced only in the fiscal year in 

12 which a sequester occurs. 

13 (5) Budgetary resources sequestered in special 

14 fund accounts and offsetting collections sequestered in 

15 appropriation accounts shall not be available for obli16 gation during the fiscal year in which the sequestra17 tion occurs, but shall be available in subsequent years 

18 to the extent otherwise provided in law. 

19 (d) SUBMISSION AND AVAILABILITY OF REPORTS.— 

20 Each report required by this section shall be submitted, in 

21 the case of CBO, to the House of Representatives, the Sen22 ate, and OMB and, in the case of OMB, to the House of 

23 Representatives, the Senate, and the President on the day 

24 it is issued. On the following day a notice of the report 

25 shall be printed in the Federal Register. 


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1 SEC. 203. GAO COMPLIANCE REPORT. 

2 Upon request of the Committee on the Budget of the 

3 House of Representatives or the Senate, the Comptroller 

4 General shall submit to the Congress and the President a 

5 report on— 

6 (1) the extent to which each order issued by the 

7 President under this title complies with all of the re8 quirements contained in this title, either certifying 

9 that the order fully and accurately complies with such 

10 requirements or indicating the respects in which it 

11 does not; and 

12 (2) the extent to which each report issued by 

13 OMB or CBO under this section complies with all of 

14 the requirements contained in this title, either certi15 fying that the report fully and accurately complies 

16 with such requirements or indicating the respects in 

17 which it does not. 

18 Subtitle B—Discretionary Spending 

19 Limits 

20 SEC. 211. DISCRETIONARY SEQUESTRATION REPORTS. 

21 (a) DISCRETIONARY SEQUESTRATION PREVIEW RE22 PORTS.— 

23 (1) REPORTING REQUIREMENT.— 

24 (A) IN GENERAL.—On the dates specified in 

25 section 202(a), OMB shall report to the Presi26 dent and Congress and CBO shall report to ConVerDate Aug 31 2005 22:35 Jul 14, 2006 Jkt 049196 PO 00000 Frm 00193 Fmt 6652 Sfmt 6203 E:\BILLS\S3521.RS S3521

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1 gress a Discretionary Sequestration Preview Re2 port regarding discretionary sequestration based 

3 on laws enacted through those dates. 

4 (B) PRESIDENT’S BUDGET.—When the 

5 President submits the budget under section 1105 

6 of title 31, United States Code, OMB shall cal7 culate and the budget shall include adjustments 

8 to discretionary spending limits (and those lim9 its as cumulatively adjusted) for the budget year 

10 and each outyear to reflect adjustments under 

11 section 212(b). 

12 (C) CONSULTATION.—Any determination or 

13 change under subparagraph (B) may only be 

14 made after consultation with the Committees on 

15 Appropriations and the Budget of the House of 

16 Representatives and the Senate, and that con17 sultation shall include written communication to 

18 such committees that affords such committees the 

19 opportunity to comment before official action is 

20 taken with respect to such changes. 

21 (2) DISCRETIONARY.—The Discretionary Seques22 tration Preview Report shall set forth estimates for 

23 the current year and each subsequent year through 

24 2009 of the applicable discretionary spending limits 

25 and an explanation of any adjustments in such limits 


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1 under section 212, and a projection of budget author2 ity exceeding discretionary caps subject to sequester. 

3 (3) EXPLANATION OF DIFFERENCES.—The OMB 

4 reports shall explain the differences between OMB and 

5 CBO estimates for each item set forth in this sub6 section. 

7 (b) DISCRETIONARY SEQUESTRATION REPORTS.—On 

8 the dates specified in section 202(a), OMB and CBO shall 

9 issue Discretionary Sequestration Reports, reflecting laws 

10 enacted through those dates, containing all of the informa11 tion required in the Discretionary Sequestration Preview 

12 Reports. 

13 (c) FINAL DISCRETIONARY SEQUESTRATION RE14 PORTS.— 

15 (1) REPORTING REQUIREMENTS.—On the dates 

16 specified in section 202(a), OMB and CBO shall each 

17 issue a Final Discretionary Sequestration Report, up18 dated to reflect laws enacted through those dates. 

19 (2) DISCRETIONARY SPENDING.—The Final Dis20 cretionary Sequestration Reports shall set forth esti21 mates for each of the following: 

22 (A) For the current year and each subse23 quent year through 2009; the applicable discre24 tionary spending limits. 


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1 (B) For the current year, if applicable, and 

2 the budget year; the new budget authority and 

3 the breach, if any. 

4 (C) The sequestration percentages necessary 

5 to eliminate the breach. 

6 (D) For the budget year, for each account to 

7 be sequestered, the level of enacted, sequesterable 

8 budget authority and resulting estimated outlays 

9 to be sequestered. 

10 (3) EXPLANATION OF DIFFERENCES.—The OMB 

11 report shall explain any differences between OMB and 

12 CBO estimates for any breach and any required dis13 cretionary sequestration percentages. The OMB report 

14 shall also explain differences in the amount of 

15 sequesterable resources for any budget account to be 

16 reduced if such difference is greater than $5,000,000. 

17 (d) ECONOMIC AND TECHNICAL ASSUMPTIONS.—In all 

18 reports required by this section, OMB shall use the same 

19 economic and technical assumptions as used in the most 

20 recent budget submitted by the President under section 

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

22 (e) ADJUSTMENTS.—When OMB submits a report 

23 under this section for a fiscal year, OMB shall calculate, 

24 and the subsequent reports and budgets submitted by the 

25 President under section 1105(a) of title 31, United States 


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1 Code shall include, adjustments to discretionary spending 

2 limits (and those limits as adjusted) for the fiscal year and 

3 each succeeding year. 

4 SEC. 212. LIMITS. 

5 (a) DISCRETIONARY SPENDING LIMITS.—As used in 

6 this subtitle, the term ‘‘discretionary spending limit’’ 

7 means— 

8 (1) with respect to fiscal year 2007, 

9 $872,504,000,000 in new budget authority; 

10 (2) with respect to fiscal year 2008, 

11 $895,358,000,000 in new budget authority; 

12 (3) with respect to fiscal year 2009, 

13 $919,516,000,000 in new budget authority; and 

14 (4) with respect to fiscal years following 2009, 

15 the President shall recommend and the Congress shall 

16 consider legislation setting limits for those fiscal 

17 years. 

18 (b) ADJUSTMENTS.— 

19 (1) EMERGENCY SPENDING.—If, for fiscal year 

20 2007, 2008, or 2009, appropriations for discretionary 

21 accounts are enacted that the President designates as 

22 emergency requirements, and that the Congress so des23 ignates in statute, the adjustment shall be the total of 

24 such appropriations in discretionary accounts des25 ignated as emergency requirements, but not to exceed 


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1 $90,000,000,000 for fiscal year 2007, $50,000,000,000 

2 for 2008, and $30,000,000,000 for 2009. Appropria3 tions designated as emergencies in excess of these lim4 itations shall be treated as new budget authority for 

5 the purpose of calculating a breach of the discre6 tionary spending limits. 

7 (2) FEDERAL TAX GAP INITIATIVE.—If an appro8 priation bill or joint resolution is enacted for fiscal 

9 year 2007, 2008, or 2009, that includes 

10 $6,824,000,000 plus an additional amount for the en11 hanced tax enforcement initiative of the Internal Rev12 enue Service, the adjustment shall be the amount of 

13 budget authority in that measure for that initiative 

14 but not to exceed— 

15 (A) with respect to fiscal year 2007, 

16 $274,000,000 in new budget authority; 

17 (B) with respect to fiscal year 2008, 

18 $414,000,000 in new budget authority; and 

19 (C) with respect to fiscal year 2009, 

20 $554,000,000 in new budget authority. 

21 (c) ENFORCEMENT.— 

22 (1) SEQUESTRATION.—On the date specified in 

23 section 202(a), there shall be a sequestration to elimi24 nate a budget-year breach. 


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1 (2) ELIMINATING A BREACH.—Each account 

2 shall be reduced by a dollar amount calculated by 

3 multiplying the enacted level of budget authority for 

4 that year in that account at that time by the uniform 

5 percentage necessary to eliminate a breach of the dis6 cretionary spending limit. 

7 (3) PART-YEAR APPROPRIATIONS.—If, on the 

8 date the report is issued under paragraph (1), there 

9 is in effect an Act making continuing appropriations 

10 for part of a fiscal year for any budget account, then 

11 the dollar sequestration calculated for that account 

12 under paragraph (2) shall be subtracted from— 

13 (A) the annualized amount otherwise avail14 able by law in that account under that or a sub15 sequent part-year appropriation; and 

16 (B) when a full-year appropriation for that 

17 account is enacted, from the amount otherwise 

18 provided by the full-year appropriation. 

19 (4) LOOK-BACK.—If, after June 30, an appro20 priation for the fiscal year in progress is enacted that 

21 causes a breach for that year (after taking into ac22 count any previous sequestration), the discretionary 

23 spending limit for the next fiscal year shall be re24 duced by the amount of that breach. 


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1 (5) WITHIN-SESSION SEQUESTRATION REPORTS

2 AND ORDER.—If an appropriation for a fiscal year in 

3 progress is enacted (after Congress adjourns to end the 

4 session for that budget year and before July 1 of that 

5 fiscal year) that causes a breach, 10 days later CBO 

6 shall issue a report containing the information re7 quired in section 211(c). Fifteen days after enact8 ment, OMB shall issue a report containing the infor9 mation required in section 211(c). On the same day 

10 as the OMB report, the President shall issue an order 

11 fully implementing without change all sequestrations 

12 required by the OMB calculations set forth in that re13 port. This order shall be effective on issuance. 

14 (d) ESTIMATES.— 

15 (1) CBO ESTIMATES.—As soon as practicable 

16 after Congress completes action on any legislation 

17 providing discretionary appropriations, CBO shall 

18 provide an estimate to OMB of that legislation. 

19 (2) OMB ESTIMATES.—Not later than 7 cal20 endar days (excluding Saturdays, Sundays, and legal 

21 holidays) after the date of enactment of any discre22 tionary appropriations, OMB shall transmit a report 

23 to the House of Representatives and to the Senate 

24 containing— 

25 (A) the CBO estimate of that legislation; 


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1 (B) an OMB estimate of that legislation 

2 using current economic and technical assump3 tions; and 

4 (C) an explanation of any difference be5 tween the 2 estimates. 

6 (3) DIFFERENCES.—If during the preparation of 

7 the report under paragraph (2), OMB determines that 

8 there is a difference between the OMB and CBO esti9 mates, OMB shall consult with the Committees on the 

10 Budget of the House of Representatives and the Sen11 ate regarding that difference and that consultation, to 

12 the extent practicable, shall include written commu13 nication to such committees that affords such commit14 tees the opportunity to comment before the issuance of 

15 that report. 

16 (4) ASSUMPTIONS AND GUIDELINES.—OMB and 

17 CBO shall prepare estimates under this paragraph in 

18 conformance with scorekeeping guidelines determined 

19 after consultation among the House and Senate Com20 mittees on the Budget, CBO, and OMB. 

21 (5) DEFERRALS AND RESCISSIONS.—Deferrals 

22 and rescissions proposed under the Impoundment 

23 Control Act of 1974 for the budget year shall not be 

24 taken into account in determining such budget base. 


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1 Subtitle C—Maximum Deficit 

2 Amount Limitation 

3 SEC. 221. MAXIMUM DEFICIT AMOUNT. 

4 In this subtitle, the term ‘‘maximum deficit amount’’ 

5 means— 

6 (1) with respect to 2007, equals 2.75 percent of 

7 the Gross Domestic Product for 2007, as estimated by 

8 OMB for 2007; 

9 (2) with respect to 2008, equals 2.25 percent of 

10 the Gross Domestic Product for 2008, as estimated by 

11 OMB for 2008; 

12 (3) with respect to 2009, equals 1.75 percent of 

13 the Gross Domestic Product for 2009, as estimated by 

14 OMB for 2009; 

15 (4) with respect to 2010, equals 1.25 percent of 

16 the Gross Domestic Product for 2010, as estimated by 

17 OMB for 2010; 

18 (5) with respect to 2011, equals 0.75 percent of 

19 the Gross Domestic Product for 2011, as estimated by 

20 OMB for 2011; and 

21 (6) with respect to 2012 and thereafter, equals 

22 0.5 percent of Gross Domestic Product for 2012 and 

23 thereafter, as estimated by OMB for 2012, and there24 after. 


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1 SEC. 222. REPORTING OF EXCESS DEFICITS. 

2 (a) MAXIMUM DEFICIT AMOUNT PREVIEW REPORT BY

3 OMB AND CBO.— 

4 (1) ESTIMATES AND DETERMINATIONS.—On the 

5 dates specified in section 202(a), OMB and CBO shall 

6 with respect to each fiscal year estimate— 

7 (A) the deficit; 

8 (B) the maximum deficit amount; and 

9 (C) any excess deficit amount for the budget 

10 year. 

11 (2) REPORT.—OMB shall report to the President 

12 and Congress and CBO shall report to Congress esti13 mating the budget base levels of total revenues and 

14 total budget outlays for the budget year, identifying 

15 the deficit, the maximum deficit amount, and the 

16 amount of any deficit excess for such fiscal year, the 

17 base from which direct spending reductions are taken 

18 and the amounts based upon uniform percentages, by 

19 which such direct spending accounts must be reduced 

20 for the budget year, in accordance with the succeeding 

21 provisions of this part, in order to eliminate such ex22 cess based on laws enacted through those dates. 

23 (3) DETERMINATION OF REDUCTIONS.—The 

24 amounts based upon uniform percentages, by which 

25 accounts must be reduced for the budget year shall be 

26 determined by, subject to the exemptions set forth in 


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1 section 227, the reductions necessary to eliminate the 

2 excess deficit amount for the fiscal year. 

3 (4) BASIS FOR DIRECTORS’ ESTIMATES, DETER4 MINATIONS, AND SPECIFICATIONS.— 

5 (A) BUDGET BASE.—In computing the 

6 amounts and percentages by which accounts 

7 must be reduced during a fiscal year as set forth 

8 in the report required under paragraph (2) for 

9 such fiscal year, OMB and CBO shall use cur10 rent economic and technical assumptions con11 sistent with the methodology set forth in section 

12 257 of the Balanced Budget and Enforcement 

13 Deficit Control Act of 1985. 

14 (B) DEFERRALS AND RESCISSIONS.—Defer15 rals and rescissions proposed under the Im16 poundment Control Act of 1974 for the budget 

17 year shall not be taken into account in deter18 mining such budget base. 

19 (C) EXPLANATION OF DIFFERENCES.—The 

20 OMB shall explain the differences between OMB 

21 and CBO estimates for each item in the report. 

22 (b) REVISED ESTIMATES AND MAXIMUM DEFICIT

23 AMOUNT RECONCILIATION REPORTS.— 

24 (1) RECONCILIATION REPORT BY OMB AND

25 CBO.—On the date specified in section 202(a), the DiVerDate Aug 31 2005 22:35 Jul 14, 2006 Jkt 049196 PO 00000 Frm 00204 Fmt 6652 Sfmt 6203 E:\BILLS\S3521.RS S3521

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1 rector of OMB shall submit to the President and Con2 gress, and the Director of CBO shall submit to Con3 gress, a revised report— 

4 (A) indicating whether and to what extent, 

5 as a result of laws enacted and regulations pro6 mulgated after the submission of their maximum 

7 deficit amount preview report under subsection 

8 (a), the excess deficit identified in the report sub9 mitted under such subsection has been elimi10 nated, reduced, or increased; and 

11 (B) adjusting the determinations for the ef12 fects of any discretionary sequestration that may 

13 be required under subtitle B. 

14 The reconciliation report submitted under this para15 graph shall contain estimates, determinations, and 

16 specifications for all of the items contained in the pre17 view report and the OMB report shall be based on the 

18 same economic and technical assumptions and em19 ploy the same methodologies as applied in the supple20 mental budget estimates submitted under section 1106 

21 of title 31, United States Code, and the CBO report 

22 shall be based on the most recent report required by 

23 section 202(e)(2) of the Congressional Budget Act of 

24 1974. Estimates shall be consistent with methodology 

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1 ment Act Deficit Control Act of 1985. The reports 

2 shall provide for the determination of reductions in 

3 the manner specified in subsection (a)(3). 

4 (2) EXPLANATION OF DIFFERENCES.—The OMB 

5 shall explain the differences between OMB and CBO 

6 estimates for each item in the reconciliation report. 

7 (c) DATES FOR SUBMISSION OF REPORTS AND

8 ISSUANCE OF ORDERS.—If the date specified for the sub9 mission of a report by the Director of OMB or the issuance 

10 of a Presidential order under this section falls on a Sunday 

11 or legal holiday, such report shall be submitted or such 

12 order issued on the following day. 

13 (d) PRINTING OF REPORTS.—Each report submitted 

14 under this section shall be printed in the Federal Register 

15 on the date it is issued; and the reports of the Director of 

16 OMB submitted to the Congress under subsection (b) shall 

17 be printed as documents of the House of Representatives 

18 and the Senate. 

19 (e) ESTIMATES.— 

20 (1) CBO ESTIMATES.—As soon as practicable 

21 after Congress completes action on any legislation 

22 under this section, CBO shall provide an estimate to 

23 OMB of that legislation. 

24 (2) OMB ESTIMATES.—Not later than 7 cal25 endar days (excluding Saturdays, Sundays, and legal 


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1 holidays) after the date of enactment of any direct 

2 spending, OMB shall transmit a report to the House 

3 of Representatives and to the Senate containing— 

4 (A) the CBO estimate of that legislation; 

5 (B) an OMB estimate of that legislation 

6 using current economic and technical assump7 tions; and 

8 (C) an explanation of any difference be9 tween the 2 estimates. 

10 (3) DIFFERENCES.—If during the preparation of 

11 the report under paragraph (2), OMB determines that 

12 there is a difference between the OMB and CBO esti13 mates, OMB shall consult with the Committees on the 

14 Budget of the House of Representatives and the Sen15 ate regarding that difference and that consultation, to 

16 the extent practicable, shall include written commu17 nication to such committees that affords such commit18 tees the opportunity to comment before the issuance of 

19 that report. 

20 (4) ASSUMPTIONS AND GUIDELINES.—OMB and 

21 CBO shall prepare estimates under this paragraph in 

22 conformance with scorekeeping guidelines determined 

23 after consultation among the House and Senate Com24 mittees on the Budget, CBO, and OMB. 


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1 SEC. 223. CONGRESSIONAL RESPONSE TO OMB AND CBO 

2 RECONCILIATION REPORT. 

3 (a) REPORTING OF RESOLUTIONS, AND RECONCILI4 ATION BILLS AND RESOLUTIONS, IN THE SENATE.— 

5 (1) COMMITTEE ALTERNATIVES TO PRESI6 DENTIAL ORDER.—For the purpose of assisting the 

7 Committees on the Budget of the House and Senate 

8 in preparing Reconciliation Directive Reports under 

9 paragraph (3) and not later than 20 days after the 

10 submission of the OMB Reconciliation Report, each 

11 standing committee of the House and Senate may 

12 submit to the Committees on the Budget of the House 

13 and Senate information of the type described in sec14 tion 301(d) of the Congressional Budget Act of 1974 

15 with respect to alternatives to the order envisioned by 

16 such report insofar as such order affects laws within 

17 the jurisdiction of the committee. 

18 (2) APPLICATION OF THE CONGRESSIONAL BUDG19 ET ACT OF 1974.—Sections 305 and 310 of the Con20 gressional Budget Act of 1974 shall apply to any bill 

21 considered under this section, except as otherwise pro22 vided in this section. 

23 (3) RECONCILIATION DIRECTIVES.—On the date 

24 specified in section 202(a), the Chairmen of the Com25 mittees on the Budget of the House and Senate shall 

26 submit a Reconciliation Directive Report to the PresiVerDate Aug 31 2005 22:35 Jul 14, 2006 Jkt 049196 PO 00000 Frm 00208 Fmt 6652 Sfmt 6203 E:\BILLS\S3521.RS S3521

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1 dent of the Senate or the Speaker of the House for ap2 propriate referral to the committees of its House, the 

3 OMB Reconciliation Report containing the maximum 

4 deficit amount and the excess deficit and reconcili5 ation directives. Such directives shall— 

6 (A) specify the total amount by which— 

7 (i) direct spending budget authority 

8 and outlays for such fiscal year; and 

9 (ii) governmental receipts, other than 

10 income taxes, estate and gift taxes, excise 

11 taxes, payroll taxes, or tariffs, for such fis12 cal year; 

13 are to be changed; and 

14 (B) include directives to committees to rec15 ommend changes in laws within their jurisdic16 tion— 

17 (i) to accomplish the total amount of 

18 deficit reduction necessary to eliminate the 

19 excess deficit so that the deficit does not ex20 ceed the maximum deficit amount set forth 

21 in the OMB Reconciliation Report; and 

22 (ii) with amounts required for each 

23 committee proportionally based on the out24 lays allocated to that committee for pro25 grams under section 302(a) of the CongresVerDate Aug 31 2005 22:35 Jul 14, 2006 Jkt 049196 PO 00000 Frm 00209 Fmt 6652 Sfmt 6203 E:\BILLS\S3521.RS S3521

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1 sional Budget Act of 1974 in the most re2 cent adopted concurrent resolution on the 

3 budget. 

4 (4) RESPONSE OF COMMITTEES.—Committees di5 rected pursuant to paragraph (3), shall submit their 

6 recommendations to comply with the directives to the 

7 Budget Committee no later than 20 days after the di8 rectives referred to in paragraph (3) are issued. 

9 (5) BUDGET COMMITTEE ACTION.—Upon receipt 

10 of the recommendations received in response to direc11 tives referred to in paragraph (3), the Budget Com12 mittees shall report to the House and Senate, a rec13 onciliation bill carrying out all such recommenda14 tions. 

15 (b) LEGISLATIVE PROCEDURE.—If a Reconciliation 

16 Directive Report containing reconciliation directives to 

17 committees to determine and recommend changes in laws, 

18 bills, or resolutions is issued in accordance with subsection 

19 (a)(3)— 

20 (1) each such committee so directed shall make 

21 such recommendations to the Committee on the Budg22 et of its House, which upon receiving all such rec23 ommendations, shall report to its House reconcili24 ation legislation carrying out all such recommenda25 tions without any substantive revision; and 


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1 (2) in the event that any committee fails to com2 ply with its directive, then the Committees on the 

3 Budget may report amendments recommending 

4 changes within the jurisdiction of the noncompliant 

5 committee to achieve the changes contained in the di6 rective. 

7 (c) ADJUSTMENT OF BUDGET TARGETS.—Upon enact8 ment of a reconciliation bill conference report, the chairmen 

9 of the Committees on the Budget of the Senate and the 

10 House of Representatives shall revise spending and revenue 

11 levels under section 311(a) of the Congressional Budget Act 

12 of 1974 and adjust the committee allocations under section 

13 302(a) of the Congressional Budget Act of 1974, or any 

14 other adjustments as may be appropriate to reflect any 

15 changes made in the reconciliation bill. Notwithstanding 

16 any other provision of law, the revised allocations and ag17 gregates shall be considered to have been made under a con18 current resolution on the budget agreed to under the Con19 gressional Budget Act of 1974, and shall be enforced under 

20 the procedures of that Act. 

21 (d) COMPLIANCE WITH RECONCILIATION DIREC22 TIVES.—Secondary or indirect effects of the legislative rec23 ommendations submitted by any committee of the House 

24 of Representatives or the Senate that is directed, shall be 

25 attributed to the committee proposing the change in law, 


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1 but shall not be considered for the purpose of determining 

2 compliance with such directives. 

3 (e) LIMITATION ON AMENDMENTS TO RECONCILIATION

4 BILLS.— 

5 (1) HOUSE OF REPRESENTATIVES.—It shall not 

6 be in order in the House of Representatives to con7 sider any amendment to a reconciliation bill if such 

8 amendment would have the effect of increasing any 

9 specific budget outlays above the level of such outlays 

10 provided in the bill (for the fiscal years covered by the 

11 reconciliation directives), or would have the effect of 

12 reducing any specific governmental receipts below the 

13 level of such governmental receipts provided in the 

14 bill (for such fiscal year), unless such amendment 

15 makes at least an equivalent reduction in other spe16 cific budget outlays, an equivalent increase in other 

17 specific governmental receipts, or an equivalent com18 bination thereof (for such fiscal year). 

19 (2) SENATE.—It shall not be in order in the 

20 Senate to consider any amendment to a reconciliation 

21 bill if such amendment would have the effect of in22 creasing any specific budget outlay level above the 

23 level of such outlay reductions provided (for the fiscal 

24 year covered) in the reconciliation directives or would 

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1 creases below the level of such increases in such gov2 ernmental receipts provided (for such fiscal year) in 

3 the reconciliation directives, unless such amendment 

4 makes a reduction in other specific budget outlays, an 

5 increase in other specific governmental receipts, or a 

6 combination thereof (for such fiscal year) at least 

7 equivalent to any increase in outlays or decrease in 

8 governmental receipts provided by such amendment, 

9 except that a motion to strike a provision shall al10 ways be in order. 

11 (3) BUDGET AUTHORITY, OUTLAYS, AND RE12 CEIPTS.—For purposes of this section, the levels of 

13 budget authority, outlays, and governmental receipts 

14 for a fiscal year shall be determined on the basis of 

15 estimates made by the Committee on the Budget of the 

16 House of Representatives or of the Senate, as the case 

17 may be. 

18 (4) HOUSE RULES.—The Committee on Rules of 

19 the House of Representatives may make in order 

20 amendments to achieve changes specified by reconcili21 ation directives if a committee or committees of the 

22 House fail to submit recommended changes to its 

23 Committee on the Budget pursuant to its instruction. 

24 (f) PROCEDURE IN THE SENATE.—Consideration in 

25 the Senate on any reconciliation bill reported under this 


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1 subsection, and all amendments thereto and debatable mo2 tions and appeals in connection therewith, shall be limited 

3 to not more than 20 hours. 

4 (g) LIMITATION ON CHANGES TO THE SOCIAL SECU5 RITY ACT.—Notwithstanding any other provision of law, it 

6 shall not be in order in the Senate or the House of Rep7 resentatives to consider any reconciliation bill, or any 

8 amendment thereto or conference report thereon, that con9 tains recommendations with respect to the old-age, sur10 vivors, and disability insurance program established under 

11 title II of the Social Security Act. 

12 (h) EXTRANEOUS MATTER IN RECONCILIATION LEGIS13 LATION.— 

14 (1) IN GENERAL.—When the Senate is consid15 ering a reconciliation bill pursuant to this section 

16 (whether that bill originated in the Senate or the 

17 House), upon a point of order being made by any 

18 Senator against material extraneous to the instruc19 tions to a committee which is contained in any title 

20 or provision of the bill or offered as an amendment 

21 to the bill, and the point of order is sustained by the 

22 Chair, any part of said title or provision that con23 tains material extraneous to the directives to said 

24 Committee as defined in paragraph (2), shall be 


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1 deemed stricken from the bill and may not be offered 

2 as an amendment from the floor. 

3 (2) EXTRANEOUS PROVISIONS.—Except as pro4 vided in paragraph (3)— 

5 (A) a provision of a reconciliation bill con6 sidered pursuant to this subsection shall be con7 sidered extraneous if such provision does not 

8 produce a decrease in outlays or an increase in 

9 governmental receipts, including changes in out10 lays and governmental receipts brought about by 

11 changes in the terms and conditions under which 

12 outlays are made or governmental receipts are 

13 required to be collected; 

14 (B) a provision that is not in the jurisdic15 tion of the Committee with jurisdiction over said 

16 title or provision shall be considered extraneous 

17 (except that amendments reported by the Com18 mittee on the Budget to achieve compliance with 

19 reconciliation directives shall be in order not20 withstanding any other rule of the Senate and 

21 not be deemed extraneous); 

22 (C) a provision shall be considered to be ex23 traneous if it increases, or would increase, net 

24 outlays, or if it decreases, or would decrease, gov25 ernmental receipts during a fiscal year after the 


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1 fiscal years covered by such reconciliation bill, 

2 and such increases or decreases are greater than 

3 outlay reductions or governmental receipts in4 creases resulting from other provisions in such 

5 title in such year; and 

6 (D) a provision shall be considered extra7 neous if it violates section 310(g) of the Congres8 sional Budget Act of 1974. 

9 (3) SENATE-ORIGINATED PROVISIONS.—A Sen10 ate-originated provision shall not be considered extra11 neous under paragraph (2) if the Chairman and 

12 Ranking Minority Member of the Committee on the 

13 Budget and the Chairman and Ranking Minority 

14 Member of the Committee which reported the provi15 sion certify that— 

16 (A) the provision mitigates direct effects 

17 clearly attributable to a provision changing out18 lays or revenue and both provisions together 

19 produce a net reduction in the deficit; 

20 (B) the provision will result in a substan21 tial reduction in outlays or a substantial in22 crease in governmental receipts during fiscal 

23 years after the fiscal years covered by the rec24 onciliation bill or reconciliation resolution; 


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1 (C) a reduction of outlays or an increase in 

2 governmental receipts is likely to occur as a re3 sult of the provision, in the event of new regula4 tions authorized by the provision or likely to be 

5 proposed, court rulings on pending litigation, or 

6 relationships between economic indices and stip7 ulated statutory triggers pertaining to the provi8 sion, other than the regulations, court rulings, or 

9 relationships currently projected by the Congres10 sional Budget Office for scorekeeping purposes; 

11 or 

12 (D) such provision will be likely to produce 

13 a significant reduction in outlays or increase in 

14 governmental receipts but, due to insufficient 

15 data, such reduction or increase cannot be reli16 ably estimated. 

17 (4) COMMITTEE REPORTED PROVISIONS.—a pro18 vision reported by a committee shall not be considered 

19 extraneous under paragraph (2) if— 

20 (A) the provision is an integral part of a 

21 provision or title, which if introduced as a bill, 

22 would be referred to such committee, and the 

23 provision sets forth the procedure to carry out or 

24 implement the substantive provisions that were 


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1 reported and which fall within the jurisdiction of 

2 such committee; or 

3 (B) the provision states an exception to, or 

4 a special application of, the general provision or 

5 title of which it is a part and such general pro6 vision or title if introduced as a bill, would be 

7 referred to such committee. 

8 (5) TECHNICAL AND CONFORMING AMEND9 MENTS.—Technical and conforming provisions shall 

10 not be considered extraneous under this subsection. 

11 (6) EXTRANEOUS MATERIALS.—Upon the report12 ing of a reconciliation bill pursuant to this subsection 

13 in the Senate, and again upon the submission of a 

14 conference report on such a reconciliation bill, the 

15 Committee on the Budget of the Senate shall submit 

16 for the record a list of material considered to be extra17 neous under paragraph (2) (A), (C), and (D), to the 

18 instructions of a committee as provided in this sec19 tion. The inclusion or exclusion of a provision shall 

20 not constitute a determination of extraneousness by 

21 the Presiding Officer of the Senate. 

22 (7) CONFERENCE REPORTS.—When the Senate is 

23 considering a conference report on, or an amendment 

24 between the Houses in relation to, a reconciliation bill 

25 pursuant to this section, upon a point of order being 


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1 made by any Senator against extraneous material 

2 meeting the definition of this subsection, and such 

3 point of order being sustained, such material con4 tained in such conference report or amendment shall 

5 be deemed stricken, and the Senate shall proceed, 

6 without intervening action or motion, to consider the 

7 question of whether the Senate shall recede from its 

8 amendment and concur with a further amendment, or 

9 concur in the House amendment with a further 

10 amendment, as the case may be, which further 

11 amendment shall consist of only that portion of the 

12 conference report or House amendment, as the case 

13 may be, not so stricken. Any such motion in the Sen14 ate shall be debatable for two hours. In any case in 

15 which such point of order is sustained against a con16 ference report (or Senate amendment derived from 

17 such conference report by operation of this sub18 section), no further amendment shall be in order. 

19 (i) DETERMINATIONS AND POINTS OF ORDER.—Not20 withstanding any other law or rule of the Senate, it shall 

21 be in order for a Senator to raise a single point of order 

22 that several provisions of a bill, resolution, amendment, mo23 tion, or conference report violate this section. The Presiding 

24 Officer may sustain the point of order as to some or all 

25 of the provisions against which the Senator raised the point 


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1 of order. If the Presiding Officer so sustains the point of 

2 order as to some of the provisions (including provisions of 

3 an amendment, motion, or conference report) against which 

4 the Senator raised the point of order, then only those provi5 sions (including provisions of an amendment, motion, or 

6 conference report) against which the Presiding Officer sus7 tains the point of order shall be deemed stricken pursuant 

8 to this section. Before the Presiding Officer rules on such 

9 a point of order, any Senator may move to waive such a 

10 point of order as it applies to some or all of the provisions 

11 against which the point of order was raised. Such a motion 

12 to waive is amendable in accordance with the rules and 

13 precedents of the Senate. After the Presiding Officer rules 

14 on such a point of order, any Senator may appeal the rul15 ing of the Presiding Officer on such a point of order as 

16 it applies to some or all of the provisions on which the Pre17 siding Officer ruled. 

18 SEC. 224. REVISED ESTIMATES AND FINAL MAXIMUM DEF19 ICIT AMOUNT SEQUESTRATION REPORTS. 

20 (a) REVISED ESTIMATES, DETERMINATIONS, AND

21 FINAL MAXIMUM DEFICIT AMOUNT SEQUESTRATION RE22 PORTS.—On the dates specified in section 202(a), OMB 

23 shall submit to the President and Congress, and CBO shall 

24 submit to Congress, a revised report— 


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1 (1) indicating whether and to what extent, as a 

2 result of laws enacted and regulations promulgated 

3 after the submission of their preview report under sec4 tion 222(a), the excess deficit identified in the report 

5 submitted under such subsection has been eliminated, 

6 reduced, or increased; and 

7 (2) adjusting the determinations made under sec8 tion 222(a) to the extent necessary. 

9 The final report submitted under this subsection shall con10 tain estimates, determinations, and specifications for all of 

11 the items contained in the maximum deficit amount rec12 onciliation report and shall be based on the same economic 

13 and technical assumptions and employ the same methodolo14 gies shall be based on the supplemental budget estimates 

15 under section 1106 of title 31, United States Code, and the 

16 CBO report shall be based on the most recent report re17 quired by section 202(e)(2) of the Congressional Budget Act 

18 of 1974. Estimates shall be consistent with the methodology 

19 under section 257 of the Balanced Budget and Enforcement 

20 Act Deficit Control Act of 1985. The reports shall provide 

21 for the determination of reductions in the manner specified 

22 in section 222(a)(3). 

23 (b) DATES FOR SUBMISSION OF REPORTS AND

24 ISSUANCE OF ORDERS.—If the date specified for the sub25 mission of a report by the Director of OMB under this secVerDate Aug 31 2005 22:35 Jul 14, 2006 Jkt 049196 PO 00000 Frm 00221 Fmt 6652 Sfmt 6203 E:\BILLS\S3521.RS S3521

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1 tion falls on a Sunday or legal holiday, such report shall 

2 be submitted or such order issued on the following day. 

3 (c) PRINTING OF REPORTS.—Each report submitted 

4 under this section shall be printed in the Federal Register 

5 on the date it is issued; and the reports of the Director of 

6 OMB submitted to the Congress under subsection (a)(1) 

7 shall be printed as documents of the House of Representa8 tives and the Senate. 

9 SEC. 225. MAXIMUM DEFICIT AMOUNT-PRESIDENTIAL 

10 ORDER. 

11 (a) IN GENERAL.—On the date specified in section 

12 202(a) and following the submission of a report by the Di13 rector of OMB to the President and Congress under section 

14 224 that identifies an amount by which the deficit for a 

15 fiscal year will exceed the maximum deficit amount for such 

16 fiscal year the President, in strict accordance with the re17 quirements set forth in section 227, shall eliminate the full 

18 amount of the deficit excess by issuing an order that elimi19 nates the direct spending authority and outlays resulting 

20 therefrom in accordance with such report from each budget 

21 account activity as identified in the program and financing 

22 schedules contained in the appendix to the Budget of the 

23 United States Government for that fiscal year, applying the 

24 same reduction percentage as the percentage by which the 

25 account is reduced in such report. 


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1 (b) ORDER TO BE BASED ON OMB REPORT.—The 

2 order must provide for reductions in the manner specified 

3 in section 224, and must be consistent with such report in 

4 all respects. The President may not modify or recalculate 

5 any of the estimates, determinations, specifications, bases, 

6 amounts or percentages set forth in the report submitted 

7 under section 224 in determining the reductions to be speci8 fied in the order with respect to budget activities, within 

9 an account. 

10 (c) EFFECT OF SEQUESTRATION UNDER PRESI11 DENTIAL ORDER.—Amounts sequestered under an order 

12 issued by the President under subsection (a) for a fiscal 

13 year shall be permanently cancelled in accordance with 

14 such final order. 

15 (d) ACCOMPANYING MESSAGE.—At the time the ac16 tions described in the preceding provisions of this subsection 

17 with respect to any fiscal year are taken, the President shall 

18 transmit to both Houses of the Congress a message con19 taining all the information required by this section and fur20 ther specifying in strict accordance with subsection (b)— 

21 (1) within each account, and the amounts which 

22 are to be sequestered or reduced for each such pro23 gram, project, and activity or budget account activ24 ity; and 


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1 (2) such other supporting details as the President 

2 may determine to be appropriate. 

3 Upon receipt in the Senate and the House of Representa4 tives, the message shall be referred to all committees with 

5 jurisdiction over programs, projects, and activities affected 

6 by the order. 

7 (e) EFFECTIVE DATE OF ORDER.—The order issued by 

8 the President under subsection (a) with respect to any fiscal 

9 year shall be effective as of the date of its issuance. 

10 SEC. 226. CONGRESSIONAL RESPONSE TO LOW GROWTH. 

11 (a) SPECIAL PROCEDURES IN THE EVENT OF LOW

12 ECONOMIC GROWTH.— 

13 (1) IN GENERAL.—The Director of the Congres14 sional Budget Office shall notify the Congress at any 

15 time if— 

16 (A) during the period consisting of the 

17 quarter during which such notification is given, 

18 the quarter preceding such notification, and the 

19 four quarters following such notification, such 

20 Office or the Office of Management and Budget 

21 has determined that real economic growth is pro22 jected or estimated to be less than zero with re23 spect to each of any two consecutive quarters 

24 within such period, or 


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1 (B) the Department of Commerce prelimi2 nary reports of actual real economic growth (or 

3 any subsequent revision thereof) indicate that the 

4 rate of real economic growth for each of the most 

5 recent reported quarter and the immediately pre6 ceding quarter is less than one percent. 

7 Upon such notification the majority leader of each 

8 House shall introduce a joint resolution (in the form 

9 set forth in paragraph (2)) declaring that the condi10 tions specified in this paragraph are met and sus11 pending the relevant provisions of this title for the re12 mainder of the current fiscal year or for the following 

13 fiscal year or both. 

14 (2) FORM OF JOINT RESOLUTION.— 

15 (A) MATTER.—The matter after the resolv16 ing clause in any joint resolution introduced 

17 pursuant to paragraph (1) shall be as follows: 

18 ‘‘That the Congress declares that the conditions 

19 specified in section 226(a)(1) of the Stop Over 

20 Spending Act of 2006 are met and the provisions 

21 of that Act, including sequestration of discre22 tionary spending under subtitle B and sequestra23 tion of direct spending under subtitle C of that 

24 Act are suspended for the remainder of the cur25 rent year, and for the fiscal year following the 


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1 current year. This joint resolution shall not have 

2 the effect of suspending any final order which 

3 was issued for the current fiscal year under the 

4 SOS Act if such order was issued before the date 

5 of the enactment of this joint resolution. 

6 (B) TITLE.—The title of the joint resolution 

7 shall be ‘‘Joint resolution suspending certain 

8 provisions of law pursuant to SOS Act.’’ and the 

9 joint resolution shall not contain any preamble. 

10 (b) COMMITTEE ACTION.—Each joint resolution intro11 duced pursuant to subsection (a) shall be referred to the 

12 Committee on the Budget of the appropriate House; and 

13 such Committee shall report the joint resolution to its House 

14 without amendment on or before the fifth day on which such 

15 House is in session after the date on which the joint resolu16 tion is introduced. If the Committee fails to report the joint 

17 resolution within the five-day period referred to in the pre18 ceding sentence, it shall be automatically discharged from 

19 further consideration of the joint resolution, and the joint 

20 resolution shall be placed on the appropriate calendar. 

21 (c) CONSIDERATION OF JOINT RESOLUTION.— 

22 (1) IN GENERAL.—A vote on final passage of a 

23 joint resolution reported to a House of the Congress 

24 or discharged pursuant to subsection (b) shall be 

25 taken on or before the close of the fifth calendar day 


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1 of session of such House after the date on which the 

2 joint resolution is reported to such House or after the 

3 Committee has been discharged from further consider4 ation of the joint resolution. If prior to the passage 

5 by one House of a joint resolution of that House, that 

6 House received the same joint resolution from the 

7 other House, then— 

8 (A) the procedure in that House shall be the 

9 same as if no such joint resolution had been re10 ceived from the other House; and 

11 (B) the vote on final passage shall be on the 

12 joint resolution of the other House. 

13 When the joint resolution is agreed to, the Clerk of the 

14 House of Representatives (in the case of a House joint 

15 resolution agreed to in the House of Representatives) 

16 or the Secretary of the Senate (in the case of a Senate 

17 joint resolution agreed to in the Senate) shall cause 

18 the joint resolution to be engrossed, certified, and 

19 transmitted to the other House of Congress as soon as 

20 practicable. 

21 (2) HOUSE.— 

22 (A) PROCEEDING.—A motion in the House 

23 of Representatives to proceed to the consideration 

24 of a joint resolution under this subsection shall 

25 be highly privileged and not debatable. An 


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1 amendment to the motion shall not be in order, 

2 nor shall it be in order to move to reconsider the 

3 vote by which the motion is agreed to or dis4 agreed to. 

5 (B) DEBATE.—Debate in the House of Rep6 resentatives on a joint resolution under this sub7 section shall be limited to not more than 5 hours, 

8 which shall be divided equally between those fa9 voring and those opposing the joint resolution. A 

10 motion to postpone, made in the House of Rep11 resentatives with respect to the consideration of 

12 a joint resolution under this subsection, and a 

13 motion to proceed to the consideration of other 

14 business, shall not be in order. A motion further 

15 to limit debate shall not be debatable. It shall not 

16 be in order to move to table or to recommit a 

17 joint resolution under this subsection or to move 

18 to reconsider the vote by which the joint resolu19 tion is agreed to or disagreed to. 

20 (C) APPEALS.—All appeals from the deci21 sions of the Chair relating to the application of 

22 the Rules of the House of Representatives to the 

23 procedure relating to a joint resolution under 

24 this subsection shall be decided without debate. 


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1 (D) FORM OF RESOLUTION.—Except to the 

2 extent specifically provided in this subsection or 

3 in paragraph (4), consideration of a joint resolu4 tion under this paragraph shall be governed by 

5 the Rules of the House of Representatives. 

6 (3) SENATE.— 

7 (A) PROCEEDING.—A motion in the Senate 

8 to proceed to the consideration of a joint resolu9 tion under this subsection shall be privileged and 

10 not debatable. An amendment to the motion shall 

11 not be in order, nor shall it be in order to move 

12 to reconsider the vote by which the motion is 

13 agreed to or disagreed to. 

14 (B) DEBATE.—Debate in the Senate on a 

15 joint resolution under this subsection, and all de16 batable motions and appeals in connection there17 with, shall be limited to not more than five 

18 hours. The time shall be equally divided between, 

19 and controlled by, the majority leader and the 

20 minority leader or their designees. 

21 (C) MOTIONS AND APPEALS.—Debate in the 

22 Senate on any debatable motion or appeal in 

23 connection with a joint resolution under this 

24 subsection shall be limited to not more than one 

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1 trolled by, the mover and the manager of the 

2 joint resolution, except that in the event the 

3 manager of the joint resolution is in favor of any 

4 such motion or appeal, the time in opposition 

5 thereto shall be controlled by the minority leader 

6 or his designee. 

7 (D) LIMIT DEBATE OR RECOMMIT.—A mo8 tion in the Senate to further limit debate on a 

9 joint resolution under this subsection is not de10 batable. A motion to table or to recommit a joint 

11 resolution under this subsection is not in order. 

12 (4) NO AMENDMENTS.—No amendment to a joint 

13 resolution considered under this subsection shall be in 

14 order in either the House of Representatives or the 

15 Senate. 

16 SEC. 227. EXEMPTIONS FROM SEQUESTRATION. 

17 (a) IN GENERAL.—Except as provided in subsection 

18 (b), all direct spending and outlays flowing therefrom shall 

19 be subject to the sequestration procedures under this subtitle. 

20 (b) EXEMPTIONS.— 

21 (1) SOCIAL SECURITY BENEFITS AND TIER I

22 RAILROAD RETIREMENT BENEFITS.—Benefits payable 

23 under the old-age, survivors, and disability insurance 

24 program established under title II of the Social Secu25 rity Act, or in benefits payable under section 3(a), 


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1 3(f)(3), 4(a), or 4(f) of the Railroad Retirement Act 

2 of 1974, shall be exempt from any reduction under 

3 any order issued under this part. 

4 (2) IN BUDGET.— 

5 (A) PRESIDENT’S BUDGET.—The President 

6 shall include in the budget submitted pursuant 

7 to section 1105 of title 31, United States Code, 

8 exemptions from sequestration procedures for 

9 specific accounts or activities where amounts are 

10 not available for sequestration (which includes 

11 outlays for interest on the public debt, outlays 

12 for claims against the United States, outlays for 

13 miscellaneous permanent appropriations and 

14 outlays for existing contracts.) 

15 (B) JUSTIFICATION.—The President shall 

16 include a justification for each exemption sub17 mitted pursuant to subparagraph (A). 

18 (C) APPLICATION.—The exemptions pro19 vided in paragraph (1) and the exemptions sub20 mitted by the President under this paragraph 

21 shall stand as the only exemptions to sequestra22 tion procedures under this subtitle, unless other23 wise provided by law. 


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1 SEC. 228. SUBMISSION OF PRESIDENT’S BUDGET; MAXIMUM 

2 DEFICIT AMOUNT MAY NOT BE EXCEEDED. 

3 Section 1105 of title 31, United States Code, is amend4 ed by adding at the end thereof the following: 

5 ‘‘(i) The budget transmitted pursuant to subsection (a) 

6 for a fiscal year shall be prepared consistent with section 

7 257 of the Balanced Budget and Emergency Deficit Control 

8 Act of 1985, in such a manner as to ensure that the discre9 tionary spending limits under section 212 of the Stop Over 

10 Spending Act of 2006 and the deficit for such fiscal year 

11 shall not exceed the maximum deficit amount for such fiscal 

12 year.’’. 

13 TITLE III—BIENNIAL BUDGET 

14 AND APPROPRIATIONS 

15 SEC. 301. REVISION OF TIMETABLE. 

16 Section 300 of the Congressional Budget Act of 1974 

17 (2 U.S.C. 631) is amended to read as follows: 

18 ‘‘TIMETABLE

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

20 subsection (b), the timetable with respect to the congres21 sional budget process for any Congress (beginning with the 

22 One Hundred Tenth Congress) is as follows: 

‘‘First Session 

On or before: Action to be completed: 

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

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

Budget Committees. 


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‘‘First Session—Continued 

Not later than 6 weeks 

after the biennial budget submission.

Committees submit views and estimates to 

Budget Committees. 

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

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

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

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

biennial appropriation bill. 

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

August 1 ............................ Congress completes action on reconciliation 

legislation.

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

‘‘Second Session 

On or before: Action to be completed:

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

Not later than 6 weeks 

after President submits 

budget review.

Congressional Budget Office submits report to 

Budget Committees. 

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

the succeeding biennium. 

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

2 of Congress that begins in any year immediately following 

3 a leap year and during which the term of a President (ex4 cept a President who succeeds himself or herself) begins, the 

5 following dates shall supersede those set forth in subsection 

6 (a): 

‘‘First Session 

On or before: Action to be completed: 

First Monday in April ..... President submits the biennial 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. 

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

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


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‘‘First Session—Continued 

August 1 ............................ Congress completes action on reconciliation 

legislation.

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

1 SEC. 302. AMENDMENTS TO THE CONGRESSIONAL BUDGET 

2 AND IMPOUNDMENT CONTROL ACT OF 1974. 

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

4 Congressional Budget and Impoundment Control Act of 

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

6 and inserting ‘‘biennially’’. 

7 (b) DEFINITIONS.— 

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

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

10 year’’ each place it appears and inserting ‘‘bien11 nium’’. 

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

13 622) is further amended by adding at the end the fol14 lowing new paragraph: 

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

16 2 consecutive fiscal years beginning on October 1 of 

17 any odd-numbered year.’’. 

18 (c) BIENNIAL CONCURRENT RESOLUTION ON THE

19 BUDGET.— 

20 (1) SECTION HEADING.—The section heading of 

21 section 301 of such Act is amended by striking ‘‘AN22 NUAL’’ and inserting ‘‘BIENNIAL’’. 


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1 (2) CONTENTS OF RESOLUTION.—Section 301(a) 

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

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

4 by— 

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

6 and inserting ‘‘May 15 of each odd-num7 bered year’’; 

8 (ii) striking ‘‘the fiscal year beginning 

9 on October 1 of such year’’ the first place it 

10 appears and inserting ‘‘the biennium begin11 ning on October 1 of such year’’; and 

12 (iii) striking ‘‘the fiscal year beginning 

13 on October 1 of such year’’ the second place 

14 it appears and inserting ‘‘each fiscal year 

15 in such period’’; 

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

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

18 in the biennium’’; and 

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

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

21 in the biennium’’. 

22 (3) ADDITIONAL MATTERS.—Section 301(b)(3) of 

23 such Act (2 U.S.C. 632(b)) is amended by striking 

24 ‘‘for such fiscal year’’ and inserting ‘‘for either fiscal 

25 year in such biennium’’. 


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1 (4) VIEWS OF OTHER COMMITTEES.—Section 

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

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

4 300(b))’’ after ‘‘United States Code’’. 

5 (5) HEARINGS.—Section 301(e)(1) of such Act (2 

6 U.S.C. 632(e)) is amended by— 

7 (A) striking ‘‘fiscal year’’ and inserting ‘‘bi8 ennium’’; and 

9 (B) inserting after the second sentence the 

10 following: ‘‘On or before April 1 of each odd11 numbered year (or, if applicable, as provided by 

12 section 300(b)), the Committee on the Budget of 

13 each House shall report to its House the concur14 rent resolution on the budget referred to in sub15 section (a) for the biennium beginning on Octo16 ber 1 of that year.’’. 

17 (6) GOALS FOR REDUCING UNEMPLOYMENT.— 

18 Section 301(f) of such Act (2 U.S.C. 632(f)) is amend19 ed by striking ‘‘fiscal year’’ each place it appears and 

20 inserting ‘‘biennium’’. 

21 (7) ECONOMIC ASSUMPTIONS.—Section 301(g)(1) 

22 of such Act (2 U.S.C. 632(g)(1)) is amended by strik23 ing ‘‘for a fiscal year’’ and inserting ‘‘for a bien24 nium’’. 


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1 (8) TABLE OF CONTENTS.—The item relating to 

2 section 301 in the table of contents set forth in section 

3 1(b) of such Act is amended by striking ‘‘Annual’’ 

4 and inserting ‘‘Biennial’’. 

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

6 Act (2 U.S.C. 633) is amended— 

7 (1) in subsection (a) 

8 (A) in paragraph (1), by— 

9 (i) striking ‘‘for the first fiscal year of 

10 the resolution,’’ and inserting ‘‘for each fis11 cal year in the biennium,’’; 

12 (ii) striking ‘‘for that period of fiscal 

13 years’’ and inserting ‘‘for all fiscal years 

14 covered by the resolution’’; and 

15 (iii) striking ‘‘for the fiscal year of 

16 that resolution’’ and inserting ‘‘for each fis17 cal year in the biennium’’; and 

18 (B) in paragraph (5), by striking ‘‘April 

19 15’’ and inserting ‘‘May 15 or June 1 (under 

20 section 300(b))’’; 

21 (2) in subsection (b), by striking ‘‘budget year’’ 

22 and inserting ‘‘biennium’’; 

23 (3) in subsection (c) by striking ‘‘for a fiscal 

24 year’’ each place it appears and inserting ‘‘for each 

25 fiscal year in the biennium’’; 


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

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

3 (5) in subsection (f)(1), by striking ‘‘the first fis4 cal year’’ and inserting ‘‘each fiscal year of the bien5 nium’’; 

6 (6) in subsection (f)(2)(A), by— 

7 (A) striking ‘‘the first fiscal year’’ and in8 serting ‘‘each fiscal year of the biennium’’; and 

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

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

11 the resolution’’; and 

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

13 and inserting ‘‘May’’. 

14 (e) SECTION 303 POINT OF ORDER.— 

15 (1) IN GENERAL.—Section 303(a) of such Act (2 

16 U.S.C. 634(a)) is amended by— 

17 (A) striking ‘‘the first fiscal year’’ and in18 serting ‘‘each fiscal year of the biennium’’; and 

19 (B) striking ‘‘that fiscal year’’ each place it 

20 appears and inserting ‘‘that biennium’’. 

21 (2) EXCEPTIONS IN THE HOUSE.—Section 

22 303(b)(1) of such Act (2 U.S.C. 634(b)) is amended— 

23 (A) in subparagraph (A), by striking ‘‘the 

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


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1 (B) in subparagraph (B), by striking ‘‘the 

2 fiscal year’’ and inserting ‘‘the biennium’’. 

3 (3) APPLICATION TO THE SENATE.—Section 

4 303(c)(1) of such Act (2 U.S.C. 634(c)) is amended 

5 by— 

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

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

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

10 (f) PERMISSIBLE REVISIONS OF CONCURRENT RESO11 LUTIONS ON THE BUDGET.—Section 304 of such Act (2 

12 U.S.C. 635) is amended— 

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

14 it appears and inserting ‘‘biennium’’; and 

15 (2) by striking ‘‘for such fiscal year’’ and insert16 ing ‘‘for such biennium’’. 

17 (g) PROCEDURES FOR CONSIDERATION OF BUDGET

18 RESOLUTIONS.—Section 305 of such Act (2 U.S.C. 636(3)) 

19 is amended— 

20 (1) in subsection (a)(3), by striking ‘‘fiscal year’’ 

21 and inserting ‘‘biennium’’; and 

22 (2) in subsection (b)(3), by striking ‘‘fiscal year’’ 

23 and inserting ‘‘biennium’’. 


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1 (h) COMPLETION OF HOUSE ACTION ON APPROPRIA2 TION BILLS.—Section 307 of such Act (2 U.S.C. 638) is 

3 amended— 

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

5 odd-numbered year’’; 

6 (2) by striking ‘‘annual’’ and inserting ‘‘bien7 nial’’; 

8 (3) by striking ‘‘fiscal year’’ and inserting ‘‘bien9 nium’’; and 

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

11 odd-numbered year’’. 

12 (i) COMPLETION OF ACTION ON REGULAR APPROPRIA13 TION BILLS.—Section 309 of such Act (2 U.S.C. 640) is 

14 amended— 

15 (1) by inserting ‘‘of any odd-numbered calendar 

16 year’’ after ‘‘July’’; 

17 (2) by striking ‘‘annual’’ and inserting ‘‘bien18 nial’’; and 

19 (3) by striking ‘‘fiscal year’’ and inserting ‘‘bien20 nium’’. 

21 (j) RECONCILIATION PROCESS.—Section 310(a) of 

22 such Act (2 U.S.C. 641(a)) is amended— 

23 (1) in the matter preceding paragraph (1), by 

24 striking ‘‘any fiscal year’’ and inserting ‘‘any bien25 nium’’; and 


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1 (2) in paragraph (1) by striking ‘‘such fiscal 

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

3 year covered by such resolution’’. 

4 (k) SECTION 311 POINT OF ORDER.— 

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

6 Act (2 U.S.C. 642(a)) is amended— 

7 (A) by striking ‘‘for a fiscal year’’ and in8 serting ‘‘for a biennium’’; 

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

10 place it appears and inserting ‘‘either fiscal year 

11 of the biennium’’; and 

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

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

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

15 Act is amended— 

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

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

18 fiscal year of the biennium’’; and 

19 (B) in subparagraph (B)— 

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

21 the first place it appears and inserting 

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

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

24 and the ensuing fiscal years’’ and inserting 

25 ‘‘all fiscal years’’. 


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1 (3) SOCIAL SECURITY LEVELS.—Section 

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

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

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

5 and 

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

8 (l) MAXIMUM DEFICIT AMOUNT POINT OF ORDER.— 

9 Section 312(c) of the Congressional Budget Act of 1974 (2 

10 U.S.C. 643) is amended— 

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

12 ‘‘for a biennium’’; 

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

14 year’’ and inserting ‘‘either fiscal year in the bien15 nium’’; 

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

17 year’’ and inserting ‘‘either fiscal year in the bien18 nium’’; and 

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

20 striking ‘‘that fiscal year’’ and inserting ‘‘the applica21 ble fiscal year’’. 


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1 SEC. 303. AMENDMENTS TO TITLE 31, UNITED STATES 

2 CODE. 

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

4 States Code, is amended by adding at the end thereof the 

5 following new paragraph: 

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

7 term in paragraph (11) of section 3 of the Congres8 sional Budget and Impoundment Control Act of 1974 

9 (2 U.S.C. 622(11)).’’. 

10 (b) BUDGET CONTENTS AND SUBMISSION TO THE CON11 GRESS.— 

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

14 Code, is amended to read as follows: 

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

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

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

18 with the One Hundred Tenth Congress, the President shall 

19 transmit to the Congress, the budget for the biennium begin20 ning on October 1 of such calendar year. The budget of the 

21 United States Government transmitted under this sub22 section shall include a budget message and summary and 

23 supporting information. The President shall include in each 

24 budget the following:’’. 

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

26 31, United States Code, is amended by striking ‘‘the 


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1 fiscal year for which the budget is submitted and the 

2 4 fiscal years after that year’’ and inserting ‘‘each fis3 cal year in the biennium for which the budget is sub4 mitted and in the succeeding 4 fiscal years’’. 

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

6 United States Code, is amended by striking ‘‘the fiscal 

7 year for which the budget is submitted and the 4 fis8 cal years after that year’’ and inserting ‘‘each fiscal 

9 year in the biennium for which the budget is sub10 mitted and in the succeeding 4 years’’. 

11 (4) BALANCE STATEMENTS.—Section 

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

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

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

15 (5) FUNCTIONS AND ACTIVITIES.—Section 

16 1105(a)(12) of title 31, United States Code, is amend17 ed in subparagraph (A), by striking ‘‘the fiscal year’’ 

18 and inserting ‘‘each fiscal year in the biennium’’. 

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

20 31, United States Code, is amended by striking ‘‘the 

21 fiscal year’’ and inserting ‘‘each fiscal year in the bi22 ennium’’. 

23 (7) ALLOWANCES FOR UNCONTROLLED EXPENDI24 TURES.—Section 1105(a)(14) of title 31, United 

25 States Code, is amended by striking ‘‘that year’’ and 


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1 inserting ‘‘each fiscal year in the biennium for which 

2 the budget is submitted’’. 

3 (8) TAX EXPENDITURES.—Section 1105(a)(16) of 

4 title 31, United States Code, is amended by striking 

5 ‘‘the fiscal year’’ and inserting ‘‘each fiscal year in 

6 the biennium’’. 

7 (9) FUTURE YEARS.—Section 1105(a)(17) of title 

8 31, United States Code, is amended— 

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

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

11 in the biennium following the biennium’’; 

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

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

14 (C) by striking ‘‘fiscal year before the fiscal 

15 year’’ and inserting ‘‘biennium before the bien16 nium’’. 

17 (10) PRIOR YEAR OUTLAYS.—Section 

18 1105(a)(18) of title 31, United States Code, is amend19 ed— 

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

21 inserting ‘‘each of the 2 most recently completed 

22 fiscal years,’’; 

23 (B) by striking ‘‘for that year’’ and insert24 ing ‘‘with respect to those fiscal years’’; and 


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1 (C) by striking ‘‘in that year’’ and insert2 ing ‘‘in those fiscal years’’. 

3 (11) PRIOR YEAR RECEIPTS.—Section 

4 1105(a)(19) of title 31, United States Code, is amend5 ed— 

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

7 inserting ‘‘each of the 2 most recently completed 

8 fiscal years’’; 

9 (B) by striking ‘‘for that year’’ and insert10 ing ‘‘with respect to those fiscal years’’; and 

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

12 appears and inserting ‘‘in those fiscal years’’. 

13 (c) ESTIMATED EXPENDITURES OF LEGISLATIVE AND

14 JUDICIAL BRANCHES.—Section 1105(b) of title 31, United 

15 States Code, is amended by striking ‘‘each year’’ and insert16 ing ‘‘each even-numbered year’’. 

17 (d) RECOMMENDATIONS TO MEET ESTIMATED DEFI18 CIENCIES.—Section 1105(c) of title 31, United States Code, 

19 is amended— 

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

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

22 the biennium for’’; 

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

24 place it appears and inserting ‘‘each fiscal year of the 

25 biennium, as the case may be, for’’; and 


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

2 ‘‘for each fiscal year of the biennium’’. 

3 (e) CAPITAL INVESTMENT ANALYSIS.—Section 

4 1105(e)(1) of title 31, United States Code, is amended by 

5 striking ‘‘ensuing fiscal year’’ and inserting ‘‘biennium to 

6 which such budget relates’’. 

7 (f) SUPPLEMENTAL BUDGET ESTIMATES AND

8 CHANGES.— 

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

10 United States Code, is amended— 

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

12 by— 

13 (i) inserting after ‘‘Before July 16 of 

14 each year’’ the following: ‘‘and February 15 

15 of each even-numbered year’’; and 

16 (ii) striking ‘‘fiscal year’’ and insert17 ing ‘‘biennium’’; 

18 (B) in paragraph (1), by striking ‘‘that fis19 cal year’’ and inserting ‘‘each fiscal year in such 

20 biennium’’; 

21 (C) in paragraph (2), by striking ‘‘fiscal 

22 year’’ and inserting ‘‘biennium’’; and 

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

24 year’’ and inserting ‘‘biennium’’. 


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

2 United States Code, is amended by— 

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

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

5 (B) inserting after ‘‘Before July 16 of each 

6 year’’ the following: ‘‘and February 15 of each 

7 even-numbered year’’; and 

8 (C) striking ‘‘submitted before July 16’’ and 

9 inserting ‘‘required by this subsection’’. 

10 (g) CURRENT PROGRAMS AND ACTIVITIES ESTI11 MATES.— 

12 (1) IN GENERAL.—Section 1109(a) of title 31, 

13 United States Code, is amended— 

14 (A) by striking ‘‘On or before the first Mon15 day after January 3 of each year (on or before 

16 February 5 in 1986)’’ and inserting ‘‘At the 

17 same time the budget required by section 1105 is 

18 submitted for a biennium’’; and 

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

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

21 (2) JOINT ECONOMIC COMMITTEE.—Section 

22 1109(b) of title 31, United States Code, is amended 

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

24 ‘‘within 6 weeks of the President’s budget submission 

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1 vided by section 300(b) of the Congressional Budget 

2 Act of 1974)’’. 

3 (h) YEAR-AHEAD REQUESTS FOR AUTHORIZING LEG4 ISLATION.—Section 1110 of title 31, United States Code, 

5 is amended by— 

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

7 31’’; and 

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

9 fiscal year begins’’ and inserting ‘‘calendar year pre10 ceding the calendar year in which the biennium be11 gins’’. 

12 SEC. 304. TWO-YEAR APPROPRIATIONS; TITLE AND STYLE 

13 OF APPROPRIATIONS ACTS. 

14 Section 105 of title 1, United States Code, is amended 

15 to read as follows: 

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

17 ‘‘(a) The style and title of all Acts making appropria18 tions for the support of the Government shall be as follows: 

19 ‘An Act making appropriations (here insert the object) for 

20 each fiscal year in the biennium of fiscal years (here insert 

21 the fiscal years of the biennium).’. 

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

23 support of the Government shall be enacted for a biennium 

24 and shall specify the amount of appropriations provided 

25 for each fiscal year in such period. 


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

2 has the same meaning as in section 3(11) of the Congres3 sional Budget and Impoundment Control Act of 1974 (2 

4 U.S.C. 622(11)).’’. 

5 SEC. 305. MULTIYEAR AUTHORIZATIONS. 

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

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

8 following new section: 

9 ‘‘AUTHORIZATIONS OF APPROPRIATIONS

10 ‘‘SEC. 316. (a) POINT OF ORDER.—It shall not be in 

11 order in the House of Representatives or the Senate to con12 sider— 

13 ‘‘(1) any bill, joint resolution, amendment, mo14 tion, or conference report that authorizes appropria15 tions for a period of less than 2 fiscal years, unless 

16 the program, project, or activity for which the appro17 priations are authorized will require no further ap18 propriations and will be completed or terminated 

19 after the appropriations have been expended; and 

20 ‘‘(2) in any odd-numbered year, any authoriza21 tion or revenue bill or joint resolution until Congress 

22 completes action on the biennial budget resolution, all 

23 regular biennial appropriations bills, and all rec24 onciliation bills. 

25 ‘‘(b) APPLICABILITY.—In the Senate, subsection (a) 

26 shall not apply to— 


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1 ‘‘(1) any measure that is privileged for consider2 ation pursuant to a rule or statute; 

3 ‘‘(2) any matter considered in Executive Session; 

4 or 

5 ‘‘(3) an appropriations measure or reconciliation 

6 bill.’’. 

7 (b) AMENDMENT TO TABLE OF CONTENTS.—The table 

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

9 Budget and Impoundment Control Act of 1974 is amended 

10 by adding after the item relating to section 315 the fol11 lowing new item: 

‘‘Sec. 316. Authorizations of appropriations.’’. 

12 SEC. 306. GOVERNMENT PLANS ON A BIENNIAL BASIS. 

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

14 States Code, is amended— 

15 (1) in subsection (a), by striking ‘‘September 30, 

16 1997’’ and inserting ‘‘September 30, 2007’’; 

17 (2) in subsection (b)— 

18 (A) by striking ‘‘five years forward’’ and 

19 inserting ‘‘6 years forward’’; 

20 (B) by striking ‘‘at least every three years’’ 

21 and inserting ‘‘at least every 4 years’’; and 

22 (C) by striking beginning with ‘‘, except 

23 that’’ through ‘‘four years’’; and 

24 (3) in subsection (c), by inserting a comma after 

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1 cluding a strategic plan submitted by September 30, 

2 2007 meeting the requirements of subsection (a)’’. 

3 (b) BUDGET CONTENTS AND SUBMISSION TO CON4 GRESS.—Paragraph (28) of section 1105(a) of title 31, 

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

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

7 fiscal year 2008, a biennial’’. 

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

9 United States Code, is amended— 

10 (1) in subsection (a)— 

11 (A) in the matter before paragraph (1) by 

12 striking ‘‘an annual’’ and inserting ‘‘a bien13 nial’’; 

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

15 ‘‘program activity’’ the following: ‘‘for both years 

16 1 and 2 of the biennial plan’’; 

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

18 after the semicolon ; 

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

20 and inserting a semicolon; and inserting ‘‘and’’ 

21 after the inserted semicolon; and 

22 (E) by adding after paragraph (6) the fol23 lowing: 

24 ‘‘(7) cover a 2-year period beginning with the 

25 first fiscal year of the next biennial budget cycle.’’; 


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

2 inserting ‘‘biennial’’; and 

3 (3) in paragraph (6) of subsection (g) by strik4 ing ‘‘annual’’ and inserting ‘‘biennial’’. 

5 (d) MANAGERIAL ACCOUNTABILITY AND FLEXI6 BILITY.—Section 9703 of title 31, United States Code, relat7 ing to managerial accountability, is amended— 

8 (1) in subsection (a)— 

9 (A) in the first sentence by striking ‘‘an10 nual’’; and 

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

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

13 (2) in subsection (e)— 

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

15 or’’ before ‘‘years’’; 

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

17 subsequent year’’ and inserting ‘‘a subsequent 2- 

18 year period’’; and 

19 (C) in the third sentence by striking ‘‘three’’ 

20 and inserting ‘‘4’’. 

21 (e) PILOT PROJECTS FOR PERFORMANCE BUDG22 ETING.—Section 1119 of title 31, United States Code, is 

23 amended— 

24 (1) in paragraph (1) of subsection (d), by strik25 ing ‘‘annual’’ and inserting ‘‘biennial’’; and 


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1 (2) in subsection (e), by striking ‘‘annual’’ and 

2 inserting ‘‘biennial’’. 

3 (f) STRATEGIC PLANS.—Section 2802 of title 39, 

4 United States Code, is amended— 

5 (1) in subsection (a), by striking ‘‘September 30, 

6 1997’’ and inserting ‘‘September 30, 2005’’; 

7 (2) in subsection (b), by striking ‘‘five years for8 ward’’ and inserting ‘‘6 years forward’’; 

9 (3) in subsection (b), by striking ‘‘at least every 

10 three years’’ and inserting ‘‘at least every 4 years’’; 

11 and 

12 (4) in subsection (c), by inserting a comma after 

13 ‘‘section’’ the second place it appears and inserting 

14 ‘‘including a strategic plan submitted by September 

15 30, 2005 meeting the requirements of subsection (a)’’. 

16 (g) PERFORMANCE PLANS.—Section 2803(a) of title 

17 39, United States Code, is amended— 

18 (1) in the matter before paragraph (1), by strik19 ing ‘‘an annual’’ and inserting ‘‘a biennial’’; 

20 (2) in paragraph (1), by inserting after ‘‘pro21 gram activity’’ the following: ‘‘for both years 1 and 

22 2 of the biennial plan’’; 

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

24 semicolon; 


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

2 inserting ‘‘; and’’; and 

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

4 ‘‘(7) cover a 2-year period beginning with the 

5 first fiscal year of the next biennial budget cycle.’’. 

6 (h) COMMITTEE VIEWS OF PLANS AND REPORTS.— 

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

8 632(d)) is amended by adding at the end ‘‘Each committee 

9 of the Senate or the House of Representatives shall review 

10 the strategic plans, performance plans, and performance re11 ports, required under section 306 of title 5, United States 

12 Code, and sections 1115 and 1116 of title 31, United States 

13 Code, of all agencies under the jurisdiction of the committee. 

14 Each committee may provide its views on such plans or 

15 reports to the Committee on the Budget of the applicable 

16 House.’’. 

17 (i) EFFECTIVE DATE.— 

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

19 this section shall take effect on the date of enactment 

20 of this Act. 

21 (2) AGENCY ACTIONS.—Effective on and after the 

22 date of enactment of this Act, each agency shall take 

23 such actions as necessary to prepare and submit any 

24 plan or report in accordance with the amendments 

25 made by this Act. 


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1 SEC. 307. BIENNIAL APPROPRIATION BILLS. 

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

3 Budget Act of 1974 (2 U.S.C. 631 et seq.) is amended by 

4 adding at the end the following: 

5 ‘‘CONSIDERATION OF BIENNIAL APPROPRIATIONS BILLS

6 ‘‘SEC. 317. It shall not be in order in the House of 

7 Representatives or the Senate in any odd-numbered year 

8 to consider any regular bill providing new budget authority 

9 or a limitation on obligations under the jurisdiction of any 

10 of the subcommittees of the Committees on Appropriations 

11 for only the first fiscal year of a biennium, unless the pro12 gram, project, or activity for which the new budget author13 ity or obligation limitation is provided will require no ad14 ditional authority beyond 1 year and will be completed or 

15 terminated after the amount provided has been expended.’’. 

16 (b) AMENDMENT TO TABLE OF CONTENTS.—The table 

17 of contents set forth in section 1(b) of the Congressional 

18 Budget and Impoundment Control Act of 1974 is amended 

19 by adding after the item relating to section 316 the fol20 lowing new item: 

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

21 SEC. 308. REPORT ON CHANGES IN LAW. 

22 Not later than 60 days after the date of enactment of 

23 this Act, the Director of OMB shall report to the Committees 

24 on the Budget of the House of Representatives and the Sen25 ate any changes in law to the Congressional Budget Act 


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1 of 1974 and the provisions of this Act required to conform 

2 with a biennial budget process. 

3 SEC. 309. EFFECTIVE DATE. 

4 Except as provided in sections 306 and 308, this title 

5 and the amendments made by this Act shall take effect on 

6 January 1, 2007, and shall apply to budget resolutions and 

7 appropriations for the biennium beginning with fiscal year 

8 2008. 

9 TITLE IV—COMMISSIONS 

10 Subtitle A—National Commission 

11 on Entitlement Solvency 

12 SEC. 401. DEFINITIONS. 

13 In this subtitle: 

14 (1) ADMINISTRATOR.—The term ‘‘Adminis15 trator’’ means the Administrator of the Centers for 

16 Medicare & Medicaid Services. 

17 (2) CALENDAR DAY.—The term ‘‘calendar day’’ 

18 means a calendar day other than 1 in which either 

19 House is not in session because of an adjournment of 

20 more than 3 days to a date certain. 

21 (3) COMMISSION.—The term ‘‘Commission’’ 

22 means the National Commission on Entitlement Sol23 vency established under section 402(a). 

24 (4) COMMISSION BILL.—The term ‘‘Commission 

25 bill’’ means a bill consisting of the proposed legislaVerDate Aug 31 2005 22:35 Jul 14, 2006 Jkt 049196 PO 00000 Frm 00257 Fmt 6652 Sfmt 6203 E:\BILLS\S3521.RS S3521

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1 tive language provisions of the Commission intro2 duced under section 403(a). 

3 (5) COMMISSIONER.—The term ‘‘Commissioner’’ 

4 means the Commissioner of Social Security. 

5 (6) LONG-TERM.—The term ‘‘long-term’’ means a 

6 period of not less than 75 years beginning on the date 

7 of enactment of this Act. 

8 (7) MEDICAID.—The term ‘‘Medicaid’’ means the 

9 program established under title XIX of the Social Se10 curity Act (42 U.S.C. 1396 et seq.) 

11 (8) MEDICARE.—The term ‘‘Medicare’’ means the 

12 program established under title XVIII of the Social 

13 Security Act (42 U.S.C. 1395 et seq.). 

14 (9) SOCIAL SECURITY.—The term ‘‘Social Secu15 rity’’ means the program of old-age, survivors, and 

16 disability insurance benefits established under title II 

17 of the Social Security Act (42 U.S.C. 401 et seq.). 

18 (10) SOLVENCY.—The term ‘‘solvency’’ means— 

19 (A) in relation to Social Security, any year 

20 in which the balance ratio (as defined under sec21 tion 709(b) of the Social Security Act (42 U.S.C. 

22 910(b)) of the Federal Old-Age and Survivors In23 surance Trust Fund and the Federal Disability 

24 Insurance Trust Fund established under section 


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1 201 of the Social Security Act (42 U.S.C. 401) 

2 is greater than zero; 

3 (B) in relation to the Medicare program, 

4 any year in which there is not excess general 

5 revenue medicare funding (as defined in section 

6 801(c)(1) of the Medicare Prescription Drug, Im7 provement, and Modernization Act of 2003 (Pub8 lic Law 108–173; 117 Stat. 2358)); and 

9 (C) in relation to Medicaid, any year after 

10 2012 in which Gross Domestic Product growth is 

11 greater than zero and growth in total Medicaid 

12 spending does not exceed growth in Gross Domes13 tic Product. 

14 SEC. 402. ESTABLISHMENT OF COMMISSION. 

15 (a) ESTABLISHMENT.—There is established a commis16 sion to be known as the ‘‘National Commission on Entitle17 ment Solvency’’. 

18 (b) PURPOSE.—The Commission shall conduct a com19 prehensive review of the Social Security, Medicare, and 

20 Medicaid programs for the following purposes: 

21 (1) REVIEW.—Reviewing relevant analyses of the 

22 current and long-term actuarial financial condition 

23 of the Social Security, Medicare, and Medicaid pro24 grams. 


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1 (2) IDENTIFYING PROBLEMS.—Identifying prob2 lems that may threaten the long-term solvency of the 

3 Social Security, Medicare, and Medicaid programs. 

4 (3) ANALYZING POTENTIAL SOLUTIONS.—Ana5 lyzing potential solutions to problems that threaten 

6 the long-term solvency of the Social Security, Medi7 care, and Medicaid programs. 

8 (4) PROVIDING RECOMMENDATIONS.—Providing 

9 recommendations that will ensure the long-term sol10 vency of the Social Security, Medicare, and Medicaid 

11 programs and the provision of appropriate benefits. 

12 (c) DUTIES.— 

13 (1) IN GENERAL.—The Commission shall conduct 

14 a comprehensive review of the Social Security, Medi15 care, and Medicaid programs consistent with the pur16 poses described in subsection (b) and shall submit the 

17 report required under paragraph (2). 

18 (2) REPORT AND RECOMMENDATIONS.— 

19 (A) IN GENERAL.—Not later than May 1, 

20 2007, the Commission shall submit a report on 

21 the long-term solvency of the Social Security, 

22 Medicare, and Medicaid programs that contains 

23 a detailed statement of the findings, conclusions, 

24 and recommendations of the Commission to the 


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1 President, Congress, the Commissioner, and the 

2 Administrator. 

3 (B) FINDINGS, CONCLUSIONS, AND REC4 OMMENDATIONS.—A finding, conclusion, or rec5 ommendation of the Commission shall be in6 cluded in the report under subparagraph (A) 

7 only if not less than 10 members of the Commis8 sion voted for such finding, conclusion, or rec9 ommendation. 

10 (C) LEGISLATIVE LANGUAGE.—If a rec11 ommendation submitted under subparagraph (A) 

12 involves legislative action, the report shall in13 clude proposed legislative language to carry out 

14 such action. 

15 (d) MEMBERSHIP.— 

16 (1) NUMBER AND APPOINTMENT.—The Commis17 sion shall be composed of 15 members of whom— 

18 (A) 3 shall be appointed by the President; 

19 (B) 3 shall be appointed by the majority 

20 leader of the Senate; 

21 (C) 3 shall be appointed by the minority 

22 leader of the Senate; 

23 (D) 3 shall be appointed by the Speaker of 

24 the House of Representatives; and 


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1 (E) 3 shall be appointed by the minority 

2 leader of the House of Representatives. 

3 (2) BIPARTISANSHIP.—Not more than 2 of the 3 

4 members appointed by each of the persons identified 

5 in subparagraphs (A) through (E) of paragraph (1) 

6 may be affiliated with the same political party. 

7 (3) CO-CHAIRPERSONS.—The President shall des8 ignate 2 Co-chairpersons from among the members of 

9 the Commission appointed under paragraph (1). The 

10 Co-chairpersons may not be affiliated with the same 

11 political party. 

12 (4) DATE.—Members of the Commission shall be 

13 appointed by not later than 30 days after the date of 

14 enactment of this Act. 

15 (5) PERIOD OF APPOINTMENT.—Members shall be 

16 appointed for the life of the Commission. Any va17 cancy in the Commission shall not affect its powers, 

18 but shall be filled in the same manner as the original 

19 appointment. 

20 (6) TERMINATION.—The Commission shall ter21 minate on the date that is 90 days after the Commis22 sion submits the report required under subsection 

23 (c)(2). 

24 (e) ADMINISTRATION.— 


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1 (1) QUORUM.—Eight members of the Commis2 sion shall constitute a quorum for purposes of voting, 

3 but a quorum is not required for members to meet 

4 and hold hearings. 

5 (2) MEETINGS.—The Commission shall meet at 

6 the call of the Chairpersons or a majority of its mem7 bers. 

8 (3) HEARINGS.—Subject to paragraph (7), the 

9 Commission may, for the purpose of carrying out this 

10 subtitle— 

11 (A) hold such hearings, sit and act at such 

12 times and places, take such testimony, receive 

13 such evidence, and administer such oaths the 

14 Commission considers advisable; 

15 (B) require, by subpoena or otherwise, the 

16 attendance and testimony of such witnesses the 

17 Commission considers advisable; and 

18 (C) require, by subpoena or otherwise, the 

19 production of such books, records, correspond20 ence, memoranda, papers, documents, tapes, and 

21 other evidentiary materials relating to any mat22 ter under investigation by the Commission. 

23 (4) SUBPOENAS.— 

24 (A) ISSUANCE.— 


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1 (i) IN GENERAL.—A subpoena may be 

2 issued under this subsection only— 

3 (I) by the agreement of the Co4 chairpersons; or 

5 (II) by the affirmative vote of 8 

6 members of the Commission. 

7 (ii) SIGNATURE.—Subpoenas issued 

8 under this subsection may be issued under 

9 the signature of both Co-chairpersons of the 

10 Commission and may be served by any per11 son designated by the chairman or by a 

12 member designated by a majority of the 

13 Commission. 

14 (B) ENFORCEMENT.—In the case of contu15 macy or failure to obey a subpoena issued under 

16 this subsection, the United States district court 

17 for the judicial district in which the subpoenaed 

18 person resides, is served, or may be found, may 

19 issue an order requiring such person to appear 

20 at any designated place to testify or to produce 

21 documentary or other evidence. Any failure to 

22 obey the order of the court may be punished by 

23 the court as a contempt of that court. 

24 (5) COMPENSATION.—Members of the Commis25 sion shall serve without any additional compensation 


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1 for their work on the Commission. However, members 

2 may be allowed travel expenses, including per diem in 

3 lieu of subsistence, in accordance with sections 5702 

4 and 5703 of title 5, United States Code, while away 

5 from their homes or regular places of business in per6 formance of services for the Commission. 

7 (6) STAFF.— 

8 (A) IN GENERAL.—With the approval of a 

9 majority of the Commission, the chairperson of 

10 the Commission may appoint an executive direc11 tor and such other additional personnel as may 

12 be necessary to enable the Commission to per13 form its duties. 

14 (B) ACTUARIAL EXPERTS AND CONSULT15 ANTS.—With the approval of a majority of the 

16 Commission, the Executive Director may procure 

17 temporary and intermittent services under sec18 tion 3109(b) of title 5, United States Code. 

19 (C) COMPENSATION.—Upon the approval of 

20 the chairperson, the executive director may fix 

21 the compensation of the executive director and 

22 other personnel without regard to chapter 51 and 

23 subchapter III of chapter 53 of title 5, United 

24 States Code, relating to classification of positions 

25 and General Schedule pay rates, except that the 


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1 rate of pay for the executive director and other 

2 personnel may not exceed the maximum rate 

3 payable for a position at GS–15 of the General 

4 Schedule under section 5332 of such title. 

5 (D) PERSONNEL AS FEDERAL EMPLOY6 EES.— 

7 (i) IN GENERAL.—The executive direc8 tor and any personnel of the Commission 

9 who are employees shall be employees under 

10 section 2105 of title 5, United States Code, 

11 for purposes of chapters 63, 81, 83, 84, 85, 

12 87, 89, 89A, 89B, and 90 of that title. 

13 (ii) MEMBERS OF COMMISSION.—Sub14 paragraph (i) shall not be construed to 

15 apply to members of the Commission. 

16 (E) FEDERAL AGENCIES.— 

17 (i) DETAIL OF GOVERNMENT EMPLOY18 EES.—Upon the request of the Commission, 

19 the head of any Federal agency may detail, 

20 without reimbursement by the Commission, 

21 any of the personnel of such agency to the 

22 Commission to assist in carrying out the 

23 duties of the Commission. Any such detail 

24 shall not interrupt or otherwise affect the 


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1 civil service status or privileges of the Fed2 eral employee. 

3 (ii) TECHNICAL ASSISTANCE.—Upon 

4 the request of the Commission, the head of 

5 a Federal agency shall provide such tech6 nical assistance to the Commission as the 

7 Commission determines to be necessary to 

8 carry out its duties. 

9 (7) INFORMATION.— 

10 (A) RESOURCES.—The Commission shall 

11 have reasonable access to materials, resources, 

12 statistical data, and other information the Com13 mission determines to be necessary to carry out 

14 its duties from the Library of Congress, the Chief 

15 Actuary of Social Security, the Chief Actuary of 

16 the Centers for Medicare & Medicaid Services, 

17 the Congressional Budget Office, and other agen18 cies and representatives of the executive and leg19 islative branches of the Federal Government. The 

20 Chairpersons shall make requests for such access 

21 in writing when necessary. 

22 (B) RECEIPT, HANDLING, STORAGE, AND

23 DISSEMINATION OF INFORMATION.—Information 

24 shall only be received, handled, stored, and dis25 seminated by members of the Commission and its 


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1 staff consistent with all applicable statutes, regu2 lations, and Executive orders. 

3 (C) LIMITATION OF ACCESS TO TAX INFOR4 MATION.—Information requested, subpoenaed, or 

5 otherwise accessed under this subtitle shall not 

6 include tax data from the United States Internal 

7 Revenue Service, the release of which would oth8 erwise be in violation of law. 

9 (8) POSTAL SERVICES.—The Commission may 

10 use the United States mails in the same manner and 

11 under the same conditions as other departments and 

12 agencies of the Federal Government. 

13 (f) FUNDING.—The Commission shall receive, from 

14 amounts appropriated to the Commissioner and the Admin15 istrator, respectively, for fiscal year 2007 for administrative 

16 expenses, such sums as are necessary to carry out the pur17 poses of this section. 

18 SEC. 403. EXPEDITED CONSIDERATION OF COMMISSION 

19 RECOMMENDATIONS. 

20 (a) INTRODUCTION AND COMMITTEE CONSIDER21 ATION.— 

22 (1) INTRODUCTION.—The aggregate legislative 

23 language provisions submitted pursuant to section 

24 402(c)(2)(C) shall be combined into a Commission 

25 bill and shall be introduced in the Senate by the maVerDate Aug 31 2005 22:35 Jul 14, 2006 Jkt 049196 PO 00000 Frm 00268 Fmt 6652 Sfmt 6203 E:\BILLS\S3521.RS S3521

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1 jority leader, or the majority leader’s designee, and in 

2 the House of Representatives, by the Speaker, or the 

3 Speaker’s designee. Upon such introduction, the Com4 mission bill shall be referred to the appropriate com5 mittees of Congress under paragraph (2). If the Com6 mission bill is not introduced in accordance with the 

7 preceding sentence, then any member of Congress may 

8 introduce the Commission bill in their respective 

9 House of Congress beginning on the date that is the 

10 5th calendar day that such House is in session fol11 lowing the date of the submission of such aggregate 

12 legislative language provisions. 

13 (2) COMMITTEE CONSIDERATION.— 

14 (A) REFERRAL.—A Commission bill intro15 duced in the Senate shall be referred to the Com16 mittee on Finance of the Senate. A Commission 

17 bill introduced in the House of Representatives 

18 shall be referred to the Committee on Ways and 

19 Means and the Committee on Energy and Com20 merce of the House of Representatives. 

21 (B) REPORTING.—Not later than 30 cal22 endar days after the introduction of the Commis23 sion bill, each Committee of Congress to which 

24 the Commission bill was referred shall report the 

25 bill or a bill as reported by such Committee. All 


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1 committee amendments must comply with the re2 quirements of section 402(b)(4) of this subtitle. 

3 (C) DISCHARGE OF COMMITTEE.—If a com4 mittee to which is referred a Commission bill has 

5 not reported a Commission bill or such bill as 

6 amended, at the end of 30 calendar days after its 

7 introduction or at the end of the first day after 

8 there has been reported to the House involved a 

9 Commission bill or such bill as amended, which10 ever is earlier, such committee shall be deemed to 

11 be discharged from further consideration of such 

12 Commission bill, and such Commission bill shall 

13 be placed on the appropriate calendar of the 

14 House involved. 

15 (b) EXPEDITED PROCEDURE.— 

16 (1) CONSIDERATION.— 

17 (A) IN GENERAL.—Not later than 7 cal18 endar days after the date on which a committee 

19 reports a Commission bill, or such bill as 

20 amended, or has been discharged from consider21 ation of a Commission bill, the Majority Leader 

22 of the Senate, or the Majority Leader’s designee, 

23 or the Speaker of the House of Representatives, 

24 or the Speaker’s designee, shall move to proceed 

25 to the consideration of the Commission bill or 


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1 such bill as amended. It shall also be in order for 

2 any member of the Senate or the House of Rep3 resentatives, respectively, to move to proceed to 

4 the consideration of the Commission bill at any 

5 time after the conclusion of such 7-day period. 

6 (B) MOTION TO PROCEED.—A motion to 

7 proceed to the consideration of the Commission 

8 bill is highly privileged in the House of Rep9 resentatives and is privileged in the Senate and 

10 is not debatable. The motion is not subject to 

11 amendment, to a motion to postpone consider12 ation of the Commission bill, or to a motion to 

13 proceed to the consideration of other business. A 

14 motion to reconsider the vote by which the mo15 tion to proceed is agreed to or not agreed to shall 

16 not be in order. If the motion to proceed is 

17 agreed to, the Senate or the House of Representa18 tives, as the case may be, shall immediately pro19 ceed to consideration of the Commission bill 

20 without intervening motion, order, or other busi21 ness, and the Commission bill shall remain the 

22 unfinished business of the Senate or the House of 

23 Representatives, as the case may be, until dis24 posed of. 


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1 (C) LIMITED DEBATE.—Debate on the Com2 mission bill and all amendments thereto and on 

3 all debatable motions and appeals in connection 

4 therewith shall be limited to not more than 50 

5 hours, which shall be divided equally between 

6 those favoring and those opposing committee 

7 amendments to the Commission bill or the Com8 mission bill. A motion further to limit debate on 

9 the Commission bill is in order and is not debat10 able. All time used for consideration of the Com11 mission bill, including time used for quorum 

12 calls (except quorum calls immediately preceding 

13 a vote) and voting, shall come from the 50 hours 

14 of debate. 

15 (D) AMENDMENTS.—No amendment that is 

16 not germane to the provisions of committee 

17 amendments to the Commission bill or the Com18 mission bill shall be in order in the Senate. All 

19 amendments must comply with the requirements 

20 of section 402(b)(4) of this subtitle. In the Sen21 ate, an amendment, any amendment to an 

22 amendment, or any debatable motion or appeal 

23 is debatable for not to exceed 1 hour to be di24 vided equally between those favoring and those 

25 opposing the amendment, motion, or appeal. 


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1 (E) MOTION TO RECOMMIT.— 

2 (i) VOTE.—Upon expiration of time 

3 for debate, the measure shall be recommitted 

4 to committee for further consideration unless by a 3 5 ⁄5 vote of the Members, duly cho6 sen and sworn, the Senate agrees to proceed 

7 to final passage. 

8 (ii) RECOMMITAL.—If the bill is re9 committed to committee under clause (i), 

10 any new amendments to the Commission 

11 bill shall be considered under the provisions 

12 of section 403(b). 

13 (F) VOTE ON FINAL PASSAGE.—Imme14 diately following the conclusion of the debate the 

15 Commission bill, the disposition of any pending 

16 amendments under subparagraph (D), a motion 

17 to recommit under subparagraph (E), and a re18 quest to establish the presence of a quorum, the 

19 vote on final passage of the Commission bill shall 

20 occur. 

21 (G) OTHER MOTIONS NOT IN ORDER.—A 

22 motion to postpone consideration of committee 

23 amendments to the Commission bill or the Com24 mission bill, or a motion to proceed to the con25 sideration of other business is not in order. A 


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1 motion to reconsider the vote by which the Com2 mission bill is agreed to or not agreed to is not 

3 in order. 

4 (2) CONSIDERATION BY OTHER HOUSE.—If, be5 fore the passage by one House of the Commission bill 

6 that was introduced in such House, such House re7 ceives from the other House a Commission bill as 

8 passed by such other House— 

9 (A) the Commission bill of the other House 

10 shall not be referred to a committee and may 

11 only be considered for final passage in the House 

12 that receives it under subparagraph (C); 

13 (B) the procedure in the House in receipt of 

14 the Commission bill of the other House, with re15 spect to the Commission bill that was introduced 

16 in the House in receipt of the Commission bill 

17 of the other House, shall be the same as if no 

18 Commission bill had been received from the other 

19 House; and 

20 (C) notwithstanding subparagraph (B), the 

21 vote on final passage shall be on the Commission 

22 bill of the other House. 

23 Upon disposition of a Commission bill that is re24 ceived by one House from the other House, it shall no 


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1 longer be in order to consider the Commission bill 

2 that was introduced in the receiving House. 

3 (3) CONSIDERATION IN CONFERENCE.— 

4 (A) CONVENING OF CONFERENCE.—Imme5 diately upon final passage of a Commission bill 

6 that results in a disagreement between the two 

7 Houses of Congress with respect to a Commission 

8 bill, conferees shall be appointed and a con9 ference convened. 

10 (B) ACTION ON CONFERENCE REPORTS IN

11 THE SENATE.— 

12 (i) MOTION TO PROCEED.—The motion 

13 to proceed to consideration in the Senate of 

14 the conference report on a Commission bill 

15 may be made even though a previous mo16 tion to the same effect has been disagreed to. 

17 (ii) DEBATE.—During the consider18 ation in the Senate of the conference report 

19 (including a message between Houses) on a 

20 Commission bill, and all amendments in 

21 disagreement, including all amendments 

22 thereto, and debatable motions and appeals 

23 in connection therewith, consideration shall 

24 be limited to 20 hours, equally divided and 

25 controlled by the majority leader and the 


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1 minority leader or their designees. Debate 

2 on any debatable motion or appeal related 

3 to the conference report (or a message be4 tween Houses) shall be limited to 1 hour, to 

5 be equally divided between, and controlled 

6 by, the mover and the manager of the con7 ference report (or a message between 

8 Houses). 

9 (iii) MOTION TO RECOMMIT.— 

10 (I) VOTE.—Upon expiration of 

11 time for debate, the conference report 

12 and any amendments in disagreement 

13 shall be recommitted to committee for 

further consideration unless by a 3 14 ⁄5

15 vote of the Senate, duly chosen and 

16 sworn, the Senate agrees to proceed to 

17 final passage. 

18 (II) RECOMMITAL.—If the con19 ference report is recommitted under 

20 subclause (I), the conference report ac21 companying the bill shall be recommit22 ted to the Conference Committee or it 

23 shall be in order for the Senate to im24 mediately proceed without intervening 


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1 action to consideration of a motion for 

2 a new conference. 

3 (iv) CONFERENCE REPORT DE4 FEATED.—Should the conference report be 

5 defeated, debate on any request for a new 

6 conference and the appointment of conferees 

7 shall be limited to 1 hour, to be equally di8 vided between, and controlled by, the man9 ager of the conference report and the minor10 ity leader or the minority leader’s designee, 

11 and should any motion be made to instruct 

12 the conferees before the conferees are named, 

debate on such motion shall be limited to 1 13 ⁄2

14 hour, to be equally divided between, and 

15 controlled by, the mover and the manager of 

16 the conference report. Debate on any 

17 amendment to any such instructions shall 

18 be limited to 20 minutes, to be equally di19 vided between and controlled by the mover 

20 and the manager of the conference report. 

21 In all cases when the manager of the con22 ference report is in favor of any motion, ap23 peal, or amendment, the time in opposition 

24 shall be under the control of the minority 

25 leader or the minority leader’s designee. 


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1 (v) AMENDMENTS IN DISAGREE2 MENT.—In any case in which there are 

3 amendments in disagreement, time on each 

4 amendment shall be limited to 30 minutes, 

5 to be equally divided between, and con6 trolled by, the manager of the conference re7 port and the minority leader or the minor8 ity leader’s designee. No amendment that is 

9 not germane to the provisions of such 

10 amendments shall be received. 

11 (c) RULES OF THE SENATE AND THE HOUSE OF REP12 RESENTATIVES.—This section is enacted by Congress— 

13 (1) as an exercise of the rulemaking power of the 

14 Senate and the House of Representatives, respectively, 

15 and is deemed to be part of the rules of each House, 

16 respectively, but applicable only with respect to the 

17 procedure to be followed in that House in the case of 

18 a Commission bill, and it supersedes other rules only 

19 to the extent that it is inconsistent with such rules; 

20 and 

21 (2) with full recognition of the constitutional 

22 right of either House to change the rules (so far as 

23 they relate to the procedure of that House) at any 

24 time, in the same manner, and to the same extent as 

25 in the case of any other rule of that House. 


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1 Subtitle B—Commission on Con2 gressional Budgetary Account3 ability and Review of Federal 

4 Agencies 

5 SEC. 411. DEFINITIONS. 

6 In this subtitle: 

7 (1) AGENCY.—The term ‘‘agency’’ means— 

8 (A) an Executive agency, as defined under 

9 section 105 of title 5, United States Code; and 

10 (B) the Executive Office of the President. 

11 (2) CALENDAR DAY.—The term ‘‘calendar day’’ 

12 means a calendar day other than 1 on which either 

13 House is not in session because of an adjournment of 

14 more than 3 days to a date certain. 

15 (3) COMMISSION BILL.—The term ‘‘Commission 

16 bill’’ means only a bill which is introduced as pro17 vided under section 416, and contains the proposed 

18 legislation included in the report submitted to Con19 gress under section 413(b)(3), without modification. 

20 (4) PROGRAM.—The term ‘‘program’’ means any 

21 activity or function of an agency. 

22 SEC. 412. ESTABLISHMENT OF COMMISSION. 

23 (a) ESTABLISHMENT.—There is established the Com24 mission on Congressional Budgetary Accountability and 


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1 Review of Federal Agencies (referred to in this subtitle as 

2 the ‘‘Commission’’). 

3 (b) MEMBERSHIP.— 

4 (1) IN GENERAL.—The Commission shall consist 

5 of 15 members, of which, not later than 30 days after 

6 the date of enactment of this Act— 

7 (A) 3 shall be appointed by the President; 

8 (B) 3 shall be appointed by the majority 

9 leader of the Senate; 

10 (C) 3 shall be appointed by the minority 

11 leader of the Senate; 

12 (D) 3 shall be appointed by the Speaker of 

13 the House of Representatives; and 

14 (E) 3 shall be appointed by the minority 

15 leader of the House of Representatives. 

16 (2) CHAIRPERSON AND VICE CHAIRPERSON.—The 

17 President shall designate a Chairperson and Vice 

18 Chairperson from among the members of the Commis19 sion. The Chairperson and the Vice Chairperson may 

20 not be affiliated with the same political party. 

21 (c) TIMING.—Members of the Commission shall be ap22 pointed by not later than 30 days after the date of enact23 ment of this Act. 

24 (d) PERIOD OF APPOINTMENT; VACANCIES.—Members 

25 shall be appointed for the life of the Commission. Any vaVerDate Aug 31 2005 22:35 Jul 14, 2006 Jkt 049196 PO 00000 Frm 00280 Fmt 6652 Sfmt 6203 E:\BILLS\S3521.RS S3521

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1 cancy in the Commission shall not affect its powers, but 

2 shall be filled in the same manner as the original appoint3 ment. 

4 (e) MEETINGS.— 

5 (1) INITIAL MEETING.—Not later than 30 days 

6 after the date on which all members of the Commis7 sion have been appointed, the Commission shall hold 

8 its first meeting. 

9 (2) SUBSEQUENT MEETINGS.—The Commission 

10 shall meet at the call of the chairperson. 

11 (f) QUORUM.—A majority of the members of the Com12 mission shall constitute a quorum, but a lesser number of 

13 members may hold hearings. 

14 SEC. 413. DUTIES OF THE COMMISSION. 

15 (a) SYSTEMATIC ASSESSMENT OF PROGRAMS BY THE

16 PRESIDENT.— 

17 (1) IN GENERAL.—Not later than 1 year after 

18 the date of enactment of this Act and each of the next 

19 3 years thereafter, the President shall— 

20 (A) establish a systematic method for assess21 ing the effectiveness and accountability of agency 

22 programs in accordance with paragraph (2) and 

23 divide the programs into 4 approximately equal 

24 budgetary parts based on the size of the budget 


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1 and number of personnel of the agency program; 

2 and 

3 (B) submit, to the Commission each year, 

4 an assessment of the programs within each part 

5 (one each year) that use the method established 

6 under subparagraph (A). 

7 (2) METHOD OBJECTIVES.—The method estab8 lished under paragraph (1) shall— 

9 (A) recognize different types of Federal pro10 grams; 

11 (B) assess programs based on the achieve12 ment of performance goals (as defined under sec13 tion 1115(g)(4) of title 31, United States Code); 

14 (C) assess programs based in part on the 

15 adequacy of the program’s performance meas16 ures, financial management, and other factors 

17 determined by the President; 

18 (D) assess programs based in part on 

19 whether the program has fulfilled the legislative 

20 intent surrounding the creation of the program, 

21 taking into account any change in legislative in22 tent during the program’s existence; and 

23 (E) assess programs based in part on col24 laborative analysis, with the program or agency, 


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1 of program policy and goals which may not fit 

2 into easily measurable performance goals. 

3 (3) COMMON PERFORMANCE MEASURES.—Not 

4 later than 1 year after the date of enactment of this 

5 Act, the President shall identify common performance 

6 measures for programs covered in paragraph (1) that 

7 have similar functions and, to the extent feasible, pro8 vide the Commission with data on such performance 

9 measures. 

10 (b) EVALUATION AND PLAN BY COMMISSION.— 

11 (1) DEVELOPMENT.—The method established 

12 under subsection (a) shall be subject to review and 

13 change by the Commission. If the Commission makes 

14 any changes in the method, the Commission shall no15 tify Congress not later than 1 year after reviewing the 

16 first assessment from the President under this section. 

17 (2) CONSIDERATION OF ASSESSMENTS.—The 

18 Commission shall consider assessments submitted 

19 under subsection (a) when evaluating programs under 

20 this subsection. 

21 (3) ASSESSMENT AND LEGISLATION.— 

22 (A) IN GENERAL.—The Commission shall— 

23 (i) evaluate all agencies and programs 

24 within those agencies in each unit identified 

25 in the systemic assessment under subsection 


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1 (a) (one each year over the next 4 years), 

2 using the criteria under subsection (a) sub3 ject to modification under paragraph (1); 

4 and 

5 (ii) submit to Congress each of the next 

6 4 years beginning January 1, 2008, with 

7 respect to each evaluation under clause 

8 (i)— 

9 (I) a plan with recommendations 

10 of the agencies and programs that 

11 should be realigned or eliminated with12 in each part; and 

13 (II) proposed legislation to imple14 ment the plan described under sub15 clause (I). 

16 (B) RELOCATION OF FEDERAL EMPLOY17 EES.—The proposed legislation under subpara18 graph (A) shall provide that if the position of an 

19 employee of an agency is eliminated as a result 

20 of the implementation of the plan under sub21 paragraph (A)(i), the affected agency shall make 

22 reasonable efforts to relocate such employee to 

23 another position within the agency or within an24 other Federal agency. 

25 (4) CRITERIA.— 


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1 (A) DUPLICATIVE.—If 2 or more agencies or 

2 programs are performing the same essential 

3 function and the function can be consolidated or 

4 streamlined into a single agency or program, the 

5 Commission shall recommend that the agencies 

6 or programs be realigned. 

7 (B) WASTEFUL OR INEFFICIENT.—The 

8 Commission may recommend the realignment or 

9 elimination of any agency or program that has 

10 wasted Federal funds by— 

11 (i) egregious spending; 

12 (ii) mismanagement of resources and 

13 personnel; or 

14 (iii) use of such funds for personal ben15 efit or the benefit of a special interest group. 

16 (C) OUTDATED, IRRELEVANT, OR FAILED.— 

17 The Commission shall recommend the elimi18 nation of any agency or program that— 

19 (i) has completed its intended purpose; 

20 (ii) has become irrelevant; or 

21 (iii) has failed to meet its objectives. 

22 SEC. 414. POWERS OF THE COMMISSION. 

23 (a) HEARINGS.—Subject to subsection (d), the chair24 person of the Commission, or his or her designee, may, for 

25 the purpose of carrying out this subtitle— 


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1 (1) hold such hearings, sit and act at such times 

2 and places, take such testimony, receive such evidence, 

3 and administer such oaths as the chairperson of the 

4 Commission considers advisable; 

5 (2) require, by subpoena or otherwise, the attend6 ance and testimony of such witnesses as the chair7 person of the Commission considers advisable; and 

8 (3) require, by subpoena or otherwise, the pro9 duction of such books, records, correspondence, memo10 randa, papers, documents, tapes, and other evi11 dentiary materials relating to any matter under in12 vestigation by the Commission. 

13 (b) Subpoenas.— 

14 (1) Issuance.— 

15 (A) In general.—A subpoena may be issued 

16 under this subsection only— 

17 (i) by the agreement of the chairman 

18 and the vice chairman of the Commission; 

19 or 

20 (ii) by the affirmative vote of 8 mem21 bers of the Commission. 

22 (B) Signature.—Subpoenas issued under 

23 this subsection (a) may be issued under the sig24 nature of the chairman of the Commission and 

25 may be served by any person designated by the 


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1 chairman or by a member designated by a ma2 jority of the Commission. 

3 (2) ENFORCEMENT.—In the case of contumacy or 

4 failure to obey a subpoena issued under subsection 

5 (a), the United States district court for the judicial 

6 district in which the subpoenaed person resides, is 

7 served, or may be found, may issue an order requir8 ing such person to appear at any designated place to 

9 testify or to produce documentary or other evidence. 

10 Any failure to obey the order of the court may be 

11 punished by the court as a contempt of that court. 

12 (c) TECHNICAL ASSISTANCE.—Upon the request of the 

13 Commission, the head of a Federal agency shall provide 

14 such technical assistance to the Commission as the Commis15 sion determines to be necessary to carry out its duties. 

16 (d) INFORMATION.— 

17 (1) IN GENERAL.—The Commission shall have 

18 reasonable access to budgetary, performance or pro19 grammatic materials, resources, statistical data, and 

20 other information the Commission determines to be 

21 necessary to carry out its duties from the Congres22 sional Budget Office, and other agencies and rep23 resentatives of the executive and legislative branches 

24 of the Federal Government. The Chairpersons shall 


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1 make requests for such access in writing when nec2 essary. 

3 (2) RECEIPT, HANDLING, STORAGE, AND DIS4 SEMINATION OF INFORMATION.—Information shall 

5 only be received, handled, stored, and disseminated by 

6 members of the Commission and its staff consistent 

7 with all applicable statutes, regulations, and Execu8 tive orders. 

9 (3) LIMITATION OF ACCESS TO PERSONAL TAX

10 INFORMATION.—Information requested, subpoenaed, 

11 or otherwise accessed under this subtitle shall not in12 clude tax data from the United States Internal Rev13 enue Service, the release of which would otherwise be 

14 in violation of law. 

15 (e) RECEIPT, HANDLING, STORAGE, AND DISSEMINA16 TION OF INFORMATION.—Information shall only be re17 ceived, handled, stored, and disseminated by members of the 

18 Commission and its staff consistent with all applicable stat19 utes, regulations, and Executive orders. 

20 (f) POSTAL SERVICES.—The Commission may use the 

21 United States mails in the same manner and under the 

22 same conditions as other departments and agencies of the 

23 Federal Government. 

24 SEC. 415. COMMISSION PERSONNEL MATTERS. 

25 (a) COMPENSATION OF MEMBERS.— 


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1 (1) NON-FEDERAL MEMBERS.—Except as pro2 vided under subsection (b), each member of the Com3 mission who is not an officer or employee of the Fed4 eral Government shall not be compensated. 

5 (2) FEDERAL OFFICERS OR EMPLOYEES.—All 

6 members of the Commission who are officers or em7 ployees of the United States shall serve without com8 pensation in addition to that received for their serv9 ices as officers or employees of the United States. 

10 (b) TRAVEL EXPENSES.—The members of the Commis11 sion shall be allowed travel expenses, including per diem 

12 in lieu of subsistence, at rates authorized for employees of 

13 agencies under subchapter I of chapter 57 of title 5, United 

14 States Code, while away from their homes or regular places 

15 of business in the performance of services for the Commis16 sion. 

17 (c) STAFF.— 

18 (1) IN GENERAL.—With the approval of the ma19 jority of the Commission, the chairperson of the Com20 mission may, appoint an executive director and such 

21 other additional personnel as may be necessary to en22 able the Commission to perform its duties. The em23 ployment of an executive director shall be subject to 

24 confirmation by the Commission. 


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1 (2) COMPENSATION.—Upon the approval of the 

2 chairperson, the executive director may fix the com3 pensation of the executive director and other per4 sonnel without regard to chapter 51 and subchapter 

5 III of chapter 53 of title 5, United States Code, relat6 ing to classification of positions and General Schedule 

7 pay rates, except that the rate of pay for the executive 

8 director and other personnel may not exceed the max9 imum rate payable for a position at GS–15 of the 

10 General Schedule under section 5332 of such title. 

11 (3) PERSONNEL AS FEDERAL EMPLOYEES.— 

12 (A) IN GENERAL.—The executive director 

13 and any personnel of the Commission who are 

14 employees shall be employees under section 2105 

15 of title 5, United States Code, for purposes of 

16 chapters 63, 81, 83, 84, 85, 87, 89, 89A, 89B, 

17 and 90 of that title. 

18 (B) MEMBERS OF COMMISSION.—Subpara19 graph (A) shall not be construed to apply to 

20 members of the Commission. 

21 (d) DETAIL OF GOVERNMENT EMPLOYEES.—Any Fed22 eral Government employee may be detailed to the Commis23 sion without reimbursement from the Commission, and such 

24 detail shall be without interruption or loss of civil service 

25 status or privilege. 


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1 (e) PROCUREMENT OF TEMPORARY AND INTERMIT2 TENT SERVICES.—With the approval of the majority of the 

3 Commission, the chairperson of the Commission may pro4 cure temporary and intermittent services under section 

5 3109(b) of title 5, United States Code, at rates for individ6 uals which do not exceed the daily equivalent of the annual 

7 rate of basic pay prescribed for level V of the Executive 

8 Schedule under section 5316 of such title. 

9 SEC. 416. EXPEDITED CONSIDERATION OF REFORM PRO10 POSALS. 

11 (a) INTRODUCTION AND COMMITTEE CONSIDER12 ATION.— 

13 (1) INTRODUCTION.—The Commission bill lan14 guage provisions submitted pursuant to section 

15 413(b)(3) shall be introduced in the Senate by the 

16 majority leader, or the majority leader’s designee, and 

17 in the House of Representatives, by the Speaker, or 

18 the Speaker’s designee. Upon such introduction, the 

19 Commission bill shall be referred to the appropriate 

20 committees of Congress under paragraph (2). If the 

21 Commission bill is not introduced in accordance with 

22 the preceding sentence, then any member of Congress 

23 may introduce the Commission bill in their respective 

24 House of Congress beginning on the date that is the 

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1 lowing the date of the submission of such aggregate 

2 legislative language provisions. 

3 (2) COMMITTEE CONSIDERATION.— 

4 (A) REFERRAL.—A Commission bill intro5 duced under paragraph (1) shall be referred to 

6 any appropriate committee of jurisdiction in the 

7 Senate, any appropriate committee of jurisdic8 tion in the House of Representatives, the Com9 mittee on the Budget of the Senate and the Com10 mittee on the Budget of the House of Representa11 tives. A committee to which a Commission bill is 

12 referred under this paragraph may review and 

13 comment on such bill, may report such bill to the 

14 respective House, and may not amend such bill. 

15 (B) REPORTING.—Not later than 30 cal16 endar days after the introduction of the Commis17 sion bill, each Committee of Congress to which 

18 the Commission bill was referred shall report the 

19 bill. 

20 (C) DISCHARGE OF COMMITTEE.—If a com21 mittee to which is referred a Commission bill has 

22 not reported such Commission bill at the end of 

23 30 calendar days after its introduction or at the 

24 end of the first day after there has been reported 

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1 ever is earlier, such committee shall be deemed to 

2 be discharged from further consideration of such 

3 Commission bill, and such Commission bill shall 

4 be placed on the appropriate calendar of the 

5 House involved. 

6 (b) EXPEDITED PROCEDURE.— 

7 (1) CONSIDERATION.— 

8 (A) IN GENERAL.—Not later than 7 cal9 endar days after the date on which a committee 

10 has reported a Commission bill or been dis11 charged from consideration of a Commission bill, 

12 the majority leader of the Senate, or the majority 

13 leader’s designee, or the Speaker of the House of 

14 Representatives, or the Speaker’s designee, shall 

15 move to proceed to the consideration of the Com16 mission bill. It shall also be in order for any 

17 member of the Senate or the House of Represent18 atives, respectively, to move to proceed to the 

19 consideration of the Commission bill at any time 

20 after the conclusion of such 7-day period. 

21 (B) MOTION TO PROCEED.—A motion to 

22 proceed to the consideration of a Commission bill 

23 is highly privileged in the House of Representa24 tives and is privileged in the Senate and is not 

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1 ment, to a motion to postpone consideration of 

2 the Commission bill, or to a motion to proceed 

3 to the consideration of other business. A motion 

4 to reconsider the vote by which the motion to 

5 proceed is agreed to or not agreed to shall not be 

6 in order. If the motion to proceed is agreed to, 

7 the Senate or the House of Representatives, as 

8 the case may be, shall immediately proceed to 

9 consideration of the Commission bill without in10 tervening motion, order, or other business, and 

11 the Commission bill shall remain the unfinished 

12 business of the Senate or the House of Represent13 atives, as the case may be, until disposed of. 

14 (C) LIMITED DEBATE.—Debate on the Com15 mission bill and on all debatable motions and 

16 appeals in connection therewith shall be limited 

17 to not more than 10 hours, which shall be di18 vided equally between those favoring and those 

19 opposing the Commission bill. A motion further 

20 to limit debate on the Commission bill is in 

21 order and is not debatable. All time used for con22 sideration of the Commission bill, including time 

23 used for quorum calls (except quorum calls im24 mediately preceding a vote) and voting, shall 

25 come from the 10 hours of debate. 


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1 (D) AMENDMENTS.—No amendment to the 

2 Commission bill shall be in order in the Senate 

3 and the House of Representatives. 

4 (E) VOTE ON FINAL PASSAGE.—Imme5 diately following the conclusion of the debate on 

6 the Commission bill, the vote on final passage of 

7 the Commission bill shall occur. 

8 (F) OTHER MOTIONS NOT IN ORDER.—A 

9 motion to postpone consideration of the Commis10 sion bill, a motion to proceed to the consider11 ation of other business, or a motion to recommit 

12 the Commission bill is not in order. A motion to 

13 reconsider the vote by which the Commission bill 

14 is agreed to or not agreed to is not in order. 

15 (2) CONSIDERATION BY OTHER HOUSE.—If, be16 fore the passage by one House of the Commission bill 

17 that was introduced in such House, such House re18 ceives from the other House a Commission bill as 

19 passed by such other House— 

20 (A) the Commission bill of the other House 

21 shall not be referred to a committee and may 

22 only be considered for final passage in the House 

23 that receives it under subparagraph (C); 

24 (B) the procedure in the House in receipt of 

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1 spect to the Commission bill that was introduced 

2 in the House in receipt of the Commission bill 

3 of the other House, shall be the same as if no 

4 Commission bill had been received from the other 

5 House; and 

6 (C) notwithstanding subparagraph (B), the 

7 vote on final passage shall be on the Commission 

8 bill of the other House. 

9 Upon disposition of a Commission bill that is re10 ceived by one House from the other House, it shall no 

11 longer be in order to consider the Commission bill 

12 that was introduced in the receiving House. 

13 (c) RULES OF THE SENATE AND THE HOUSE OF REP14 RESENTATIVES.—This section is enacted by Congress— 

15 (1) as an exercise of the rulemaking power of the 

16 Senate and the House of Representatives, respectively, 

17 and is deemed to be part of the rules of each House, 

18 respectively, but applicable only with respect to the 

19 procedure to be followed in that House in the case of 

20 a Commission bill, and it supersedes other rules only 

21 to the extent that it is inconsistent with such rules; 

22 and 

23 (2) with full recognition of the constitutional 

24 right of either House to change the rules (so far as 

25 they relate to the procedure of that House) at any 


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1 time, in the same manner, and to the same extent as 

2 in the case of any other rule of that House. 

3 SEC. 417. TERMINATION OF THE COMMISSION. 

4 The Commission shall terminate 90 days after the date 

5 on which the Commission submits the final evaluation and 

6 plan report under section 413. 

7 SEC. 418. AUTHORIZATION OF APPROPRIATIONS. 

8 There are authorized to be appropriated such sums as 

9 may be necessary for carrying out this Act for each of the 

10 fiscal years 2007 through 2011. 

11 TITLE V—BUDGET PROCESS 

12 REFORMS 

13 SEC. 501. DEFINITIONS. 

14 Section 3 of the Congressional Budget and Impound15 ment Control Act of 1974 (2 U.S.C. 622) is amended by— 

16 (1) redesignating paragraphs (3) through (10) as 

17 paragraphs (7) through (14), respectively; 

18 (2) adding after paragraph (3) the following: 

19 ‘‘(3) DIRECT SPENDING.—The term ‘direct 

20 spending’ means— 

21 ‘‘(A) budget authority provided by law other 

22 than appropriation Acts; 

23 ‘‘(B) mandatory spending provided in ap24 propriation Acts; and 

25 ‘‘(C) entitlement authority. 


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1 ‘‘(4) DISCRETIONARY APPROPRIATIONS.—The 

2 term ‘discretionary appropriations’ means budgetary 

3 resources (except to fund direct spending programs) 

4 provided in appropriation Acts. 

5 ‘‘(5) GOVERNMENTAL RECEIPTS.—The term ‘gov6 ernmental receipts’ means revenue or collections from 

7 the public based on the government’s exercise of its 

8 sovereign powers, including but not limited to indi9 vidual and corporate income taxes, social insurance 

10 taxes, customs, fines, compulsory license fees, deposits 

11 of earnings by the Federal Reserve System, duties, 

12 tariffs, other fees, miscellaneous receipts, gifts, and 

13 contributions. 

14 ‘‘(6) SECONDARY OR INDIRECT EFFECTS.—The 

15 term ‘secondary or indirect effects’ means changes in 

16 direct spending or government receipts other than the 

17 direct, observable effects of changes in legislation on 

18 related accounts, including— 

19 ‘‘(A) the impact of changes in spending leg20 islation on Federal tax receipts or the impact of 

21 changes in Federal tax laws on total Federal 

22 spending; or 

23 ‘‘(B) the impacts on spending or govern24 ment receipts if there is no statutory connection 

25 or established interaction between a legislative 


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1 proposal and its impact on the operation of cur2 rent law.’’; and 

3 (3) adding at the end the following: 

4 ‘‘(15) BUDGET YEAR.—The term ‘budget year’ 

5 means, with respect to a session of Congress, the fiscal 

6 year of the Government that starts on October 1 of the 

7 calendar year in which that session begins. 

8 ‘‘(16) CURRENT YEAR.—The term ‘current year’ 

9 means, with respect to a budget year, the fiscal year 

10 that immediately precedes that budget year.’’. 

11 SEC. 502. ANNUAL CONCURRENT RESOLUTION ON THE 

12 BUDGET. 

13 Section 301 of the Congressional Budget Act of 1974 

14 (2 U.S.C. 632) is amended— 

15 (1) in subsection (a)— 

16 (A) in paragraph (2), by striking ‘‘Federal 

17 revenues’’ both places it appears and inserting 

18 ‘‘governmental receipts’’; 

19 (B) in paragraph (4), by striking ‘‘major 

20 functional category’’ and inserting ‘‘standing, se21 lect, or special committee of the House of Rep22 resentatives and the Senate, as appropriate,’’; 

23 (C) in paragraphs (6) and (7), by striking 

24 ‘‘For’’ and inserting ‘‘for’’; and 


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1 (D) in the matter following paragraph (7), 

2 by striking ‘‘old age’’ and inserting ‘‘old-age’’; 

3 (2) in subsection (b)— 

4 (A) in paragraph (3), by striking ‘‘entitle5 ment authority’’ and inserting ‘‘direct spend6 ing’’; and 

7 (B) in paragraph (7), by inserting ‘‘is de8 scribed in detail to allow the Chairman of the 

9 Committee on the Budget to determine whether it 

10 qualifies for such revision and the legislation’’ 

11 after ‘‘that legislation’’; 

12 (3) in subsection (d)— 

13 (A) in the caption, by striking ‘‘and esti14 mates of’’ and inserting ‘‘, estimates, and rec15 ommendations for deficit reduction from all’’; 

16 (B) in the first sentence, by striking ‘‘its 

17 views’’ and inserting ‘‘its specific recommenda18 tions for changes in law within the jurisdiction 

19 of the committee making the submission that re20 sult in deficit reduction and its views’’; and 

21 (C) in the third sentence, by striking ‘‘or 

22 functions’’; and 

23 (4) in subsection (e)— 

24 (A) in paragraph (2)— 


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1 (i) by redesignating subparagraphs (B) 

2 through (D) as subparagraphs (C) through 

3 (E), respectively; 

4 (ii) by redesignating subparagraphs 

5 (E) and (F) as subparagraphs (G) and (H), 

6 respectively; 

7 (iii) by inserting after subparagraph 

8 (A) the following: 

9 ‘‘(B) with respect to the Committee on Ap10 propriations of the House of Representatives and 

11 Senate, an estimate of total new budget author12 ity and total outlays with the estimates divided 

13 between discretionary and mandatory amounts’’; 

14 and 

15 (iv) by adding after subparagraph (E), 

16 as redesignated, the following: 

17 ‘‘(F) with respect to each standing, select, or 

18 special committee of the House of Representatives 

19 and Senate, an estimate of governmental receipts 

20 within the jurisdiction of that committee;’’; and 

21 (B) in paragraph (3)(B), by— 

22 (i) striking ‘‘Federal revenues’’ and in23 serting ‘‘governmental receipts’’; and 

24 (ii) striking ‘‘such revenues’’ and in25 sert ‘‘such governmental receipts’’. 


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1 SEC. 503. COMMITTEE ALLOCATIONS. 

2 Section 302 of the Congressional Budget Act of 1974 

3 (2 U.S.C. 633(a)) is amended— 

4 (1) in subsection (a), by striking paragraph (3) 

5 and inserting the following: 

6 ‘‘(3) FURTHER DIVISION OF AMOUNTS IN THE

7 HOUSE.—The amounts allocated to each committee of 

8 the House of Representatives for each fiscal year, 

9 other than the Committee on Appropriations, shall be 

10 further divided between amounts provided or required 

11 by law on the date of filing of that conference report 

12 and amounts not so provided or required. The 

13 amounts allocated to the Committee on Appropria14 tions shall be further divided between discretionary 

15 and mandatory amounts or programs, as appro16 priate.’’; and 

17 (2) in subsection (g)(2), by striking ‘‘committee’’ 

18 and inserting ‘‘Committee’’. 

19 SEC. 504. BUDGET RESOLUTION ADOPTION. 

20 Section 303(a) of the Congressional Budget Act of 1974 

21 (2 U.S.C. 634(a)) is amended to read as follows: 

22 ‘‘(a) IN GENERAL.—Beginning on the first day of a 

23 new session of Congress, and until the concurrent resolution 

24 for the fiscal year beginning in October of the year the new 

25 session of Congress begins has been agreed to, it shall not 

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1 ered by that resolution, any bill or joint resolution, amend2 ment or motion thereto, or conference report thereon that— 

3 ‘‘(1) provides budget authority for the budget 

4 year; 

5 ‘‘(2) provides an increase or decrease in govern6 mental receipts during the budget year; 

7 ‘‘(3) provides an increase or decrease in the pub8 lic debt limit for the budget year; 

9 ‘‘(4) in the Senate only, provides new direct 

10 spending for the budget year; or 

11 ‘‘(5) in the Senate only, provides for an increase 

12 or decrease in outlays for the budget year.’’. 

13 SEC. 505. CONSIDERATION OF THE BUDGET RESOLUTION. 

14 Section 305 of the Congressional Budget Act of 1974 

15 (2 U.S.C. 636) is amended by— 

16 (1) redesignating subsection (d) as subsection (e); 

17 and 

18 (2) striking subsections (b) and (c) and inserting 

19 the following: 

20 ‘‘(b) PROCEDURE IN SENATE AFTER REPORT OF COM21 MITTEE; CONSIDERATION; AMENDMENTS.— 

22 ‘‘(1) Consideration in the Senate on any concur23 rent resolution on the budget, and all amendments 

24 thereto and debatable motions and appeals in connec25 tion therewith, shall be limited to not more than 50 


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1 hours, except that with respect to any concurrent reso2 lution referred to in section 304 all such debate shall 

3 be limited to not more than 15 hours. The time shall 

4 be equally divided between, and controlled by, the ma5 jority leader and the minority leader or their des6 ignees. 

7 ‘‘(2) Debate in the Senate on any amendment to 

8 a concurrent resolution on the budget shall be limited 

9 to 2 hours, to be equally divided between, and con10 trolled by, the mover and the manager of the concur11 rent resolution, and debate on any amendment to an 

12 amendment, debatable motion, or appeal shall be lim13 ited to 1 hour to be equally divided between, and con14 trolled by, the mover and the manager of the concur15 rent resolution, except that in the event the manager 

16 of the concurrent resolution is in favor of any such 

17 amendment, motion, or appeal, the time in opposition 

18 thereto shall be controlled by the minority leader or 

19 his designee. No dilatory motion, or dilatory amend20 ment shall be in order. Amendments that are not ger21 mane to the provisions of such concurrent resolution 

22 shall not be in order. For the purpose of this Act, 

23 amendments that are predominantly precatory shall 

24 not be in order. Such managers, or either leader, 

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1 eration of the concurrent resolution, allot additional 

2 time to any Senator during the consideration of any 

3 amendment, debatable motion, or appeal. 

4 ‘‘(3) Following the presentation of opening state5 ments on the concurrent resolution on the budget for 

6 a fiscal year by the chairman and ranking minority 

7 member of the Committee on the Budget of the Senate, 

8 there shall be a period of up to 4 hours for debate on 

9 economic goals and policies. 

10 ‘‘(4) Subject to the other limitations of this Act, 

11 only if a concurrent resolution on the budget reported 

12 by the Committee on the Budget of the Senate sets 

13 forth the economic goals (as described in sections 

14 3(a)(2) and 4(b) of the Employment Act of 1946) 

15 which the estimates, amounts, and levels (as described 

16 in section 301(a)) set forth in such resolution are de17 signed to achieve, shall it be in order to offer to such 

18 resolution an amendment relating to such goals, and 

19 such amendment shall be in order only if it also pro20 poses to alter such estimates, amounts, and levels in 

21 germane fashion in order to be consistent with the 

22 goals proposed in such amendment. 

23 ‘‘(5) A motion to further limit consideration is 

24 not debatable. A motion to recommit (except a motion 

25 to recommit with instructions to report back within 


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1 a specified number of days, not to exceed 3, not count2 ing any day on which the Senate is not in session) 

3 is not in order. Debate on any such motion to recom4 mit shall be limited to 1 hour, to be equally divided 

5 between, and controlled by, the mover and the man6 ager of the concurrent resolution. 

7 ‘‘(6) Notwithstanding any other rule, an amend8 ment or series of amendments to a concurrent resolu9 tion on the budget proposed in the Senate shall al10 ways be in order if such amendment or series of 

11 amendments proposes to change any figure or figures 

12 then contained in such concurrent resolution so as to 

13 make such concurrent resolution mathematically con14 sistent or so as to maintain such consistency. 

15 ‘‘(c) REQUEST FOR CONFERENCE IN THE SENATE.— 

16 Consideration of all motions in relation to a request for 

17 a conference with the House of Representatives shall be lim18 ited to not more than 1 hour and debate on a motion to 

19 instruct the conferees shall be limited to 20 minutes to be 

20 equally divided between, and controlled by, the mover and 

21 the manager of the concurrent resolution, except that in the 

22 event the manager of the concurrent resolution is in favor 

23 of any such amendment, motion, or appeal, the time in op24 position thereto shall be controlled by the minority leader 

25 or his designee. 


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1 ‘‘(d) ACTION ON CONFERENCE REPORTS IN THE SEN2 ATE.— 

3 ‘‘(1) A motion to proceed to the consideration of 

4 the conference report on any concurrent resolution on 

5 the budget (or a reconciliation bill or resolution) may 

6 be made even though a previous motion to the same 

7 effect has been disagreed to. 

8 ‘‘(2) During the consideration in the Senate of a 

9 conference report (including a message between 

10 Houses) on any concurrent resolution on the budget, 

11 including all amendments in disagreement, and all 

12 amendments thereto, and debatable motions and ap13 peals in connection therewith, consideration shall be 

14 limited to 10 hours, to be equally divided between, 

15 and controlled by, the majority leader and minority 

16 leader or their designees. Debate on any debatable mo17 tion or appeal related to the conference report (or a 

18 message between Houses) shall be limited to 1 hour, 

19 to be equally divided between, and controlled by, the 

20 mover and the manager of the conference report (or 

21 a message between Houses). 

22 ‘‘(3) Should the conference report be defeated, 

23 consideration of any request for a new conference and 

24 the appointment of conferees shall be limited to 1 

25 hour, to be equally divided between, and controlled by, 


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1 the manager of the conference report and the minority 

2 leader or his designee, and should any motion be 

3 made to instruct the conferees before the conferees are 

4 named, debate on such motion shall be limited to 20 

5 minutes, to be equally divided between, and controlled 

6 by, the mover and the manager of the conference re7 port. Debate on any amendment to any such instruc8 tions shall be limited to 10 minutes, to be equally di9 vided between and controlled by the mover and the 

10 manager of the conference report. In all cases when 

11 the manager of the conference report is in favor of 

12 any motion, appeal, or amendment, the time in oppo13 sition shall be under the control of the minority lead14 er or his designee. 

15 ‘‘(4) In any case in which there are amendments 

16 in disagreement, the time for debate on each amend17 ment shall be limited to 30 minutes, to be equally di18 vided between, and controlled by, the manager of the 

19 conference report and the minority leader or his des20 ignee. No amendment that is not germane to the pro21 visions of such amendments shall be received.’’. 

22 SEC. 506. BUDGET PROJECTIONS. 

23 Section 308(c) of the Congressional Budget Act of 1974 

24 (2 U.S.C. 639(c)) is amended— 


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1 (1) in paragraph (2), by striking ‘‘revenues’’ and 

2 inserting ‘‘governmental receipts’’; and 

3 (2) in paragraph (4), by striking ‘‘entitlement’’ 

4 and inserting ‘‘direct spending’’. 

5 SEC. 507. RECONCILIATION. 

6 Section 310 of the Congressional Budget Act of 1974 

7 (2 U.S.C. 641) is amended— 

8 (1) in subsection (a), by striking paragraphs (1) 

9 and (2) and inserting the following: 

10 ‘‘(1) specify the total amount by which— 

11 ‘‘(A) new budget authority; 

12 ‘‘(B) budget authority; 

13 ‘‘(C) new direct spending authority; and 

14 ‘‘(D) governmental receipts other than in15 come taxes, estate and gift taxes, excise taxes or 

16 payroll taxes, duties, or tariffs; 

17 contained in laws, bills, and resolutions within the 

18 jurisdiction of a committee is to be changed for any 

19 of the fiscal years covered by the resolution and direct 

20 that committee to determine and recommend changes 

21 to accomplish a change of such total amount; 

22 ‘‘(2) specify the total amount by which govern23 mental receipts including income taxes, estate and 

24 gift taxes, excise taxes or social insurance taxes, mis25 cellaneous receipts, duties, or tariffs are to be changed 


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1 and direct that the committees having jurisdiction to 

2 determine and recommend changes in the govern3 mental receipt laws, bills, and resolutions to accom4 plish a change of such total amount;’’; 

5 (2) by striking subsection (b) and inserting the 

6 following: 

7 ‘‘(b) LEGISLATIVE PROCEDURE.— 

8 ‘‘(1) If a conference report on a concurrent reso9 lution containing reconciliation instructions to 1 or 

10 more committees to determine and recommend 

11 changes in laws, bills, or resolutions is agreed to in 

12 accordance with subsection (a)— 

13 ‘‘(A) each such committee so instructed shall 

14 promptly make such determination and rec15 ommendations and submit such recommenda16 tions to the Committee on the Budget of its 

17 House, which upon receiving all such rec18 ommendations, shall report to its House rec19 onciliation legislation carrying out all such rec20 ommendations without any substantive revision; 

21 and 

22 ‘‘(B) in the event that any committee fails 

23 to comply with its instruction, then the Commit24 tees on the Budget may report amendments rec25 ommending changes within the jurisdiction of 


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1 the noncompliant committee to achieve the 

2 changes contained in the instruction. 

3 ‘‘(2) For purposes of this subsection, a reconcili4 ation resolution is a concurrent resolution directing 

5 the Clerk of the House of Representatives or the Sec6 retary of the Senate, as the case may be, to make 

7 specified changes in bills and resolutions which have 

8 not been enrolled.’’; 

9 (3) in subsection (c), by adding at the end the 

10 following: 

11 ‘‘(3) Secondary or indirect effects of the legislative rec12 ommendations submitted by any committee of the House 

13 of Representatives or the Senate that is instructed pursuant 

14 to a concurrent resolution on the budget, shall be attributed 

15 to the committee proposing the change in law, but shall not 

16 be considered for the purpose of determining compliance 

17 with such instructions.’’; 

18 (4) by striking paragraphs (1) through (4) of 

19 subsection (d) and inserting the following: 

20 ‘‘(1) It shall not be in order in the House of Represent21 atives to consider any amendment to a reconciliation bill 

22 or reconciliation resolution if such amendment would have 

23 the effect of increasing any specific budget outlays above 

24 the level of such outlays provided in the bill or resolution 

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1 tions set forth in the most recently agreed to concurrent res2 olution on the budget), or would have the effect of reducing 

3 any specific governmental receipts below the level of such 

4 governmental receipts provided in the bill or resolution (for 

5 such fiscal years), unless such amendment makes at least 

6 an equivalent reduction in other specific budget outlays, an 

7 equivalent increase in other specific governmental receipts, 

8 or an equivalent combination thereof (for such fiscal years), 

9 except that a motion to strike a provision providing new 

10 budget authority or new entitlement authority may be in 

11 order. 

12 ‘‘(2) It shall not be in order in the Senate to consider 

13 any amendment to a reconciliation bill or reconciliation 

14 resolution if such amendment would have the effect of de15 creasing any specific budget outlay reductions below the 

16 level of such outlay reductions provided (for the fiscal years 

17 covered) in the reconciliation instructions which relate to 

18 such bill or resolution set forth in a resolution providing 

19 for reconciliation, or would have the effect of reducing gov20 ernmental receipts increases below the level of such increases 

21 in such governmental receipts provided (for such fiscal 

22 years) in such instructions relating to such bill or resolu23 tion, unless such amendment makes a reduction in other 

24 specific budget outlays, an increase in other specific govern25 mental receipts, or a combination thereof (for such fiscal 


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1 years) at least equivalent to any increase in outlays or de2 crease in governmental receipts provided by such amend3 ment, except that a motion to strike a provision shall al4 ways be in order. 

5 ‘‘(3) Paragraphs (1) and (2) shall not apply if a dec6 laration of war by the Congress is in effect. 

7 ‘‘(4) For purposes of this section, the levels of budget 

8 authority, outlays, and governmental receipts for a fiscal 

9 year shall be determined on the basis of estimates made by 

10 the Committee on the Budget of the House of Representa11 tives or of the Senate, as the case may be.’’; and 

12 (5) in subsection (e)— 

13 (A) in paragraph (1), by inserting ‘‘, mo14 tions in relation to a request for conference,’’ 

15 after ‘‘under subsection (b)’’; and 

16 (B) in paragraph (2), by striking ‘‘Debate’’ 

17 and inserting ‘‘Consideration’’. 

18 SEC. 508. BUDGETING LEVELS. 

19 Section 311(a) of the Congressional Budget Act of 1974 

20 (2 U.S.C.642(a)) is amended— 

21 (1) in the matter after subparagraph (C) in 

22 paragraph (1), by striking ‘‘total revenues’’ and in23 serting ‘‘total governmental receipts’’; and 

24 (2) in paragraph (2)(B), by striking ‘‘revenues’’ 

25 and inserting ‘‘governmental receipts’’. 


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1 SEC. 509. DETERMINATIONS AND POINTS OF ORDER. 

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

3 Budget Act of 1974 (2 U.S.C. 643) is amended— 

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

5 inserting ‘‘governmental receipts’’; 

6 (2) by striking subsections (b) and (c); 

7 (3) by redesignating subsections (d) through (f) 

8 as subsections (b) through (d), respectively; and 

9 (4) by adding at the end the following: 

10 ‘‘(e) CONGRESSIONAL BUDGET OFFICE SCORE FOR

11 CONFERENCE REPORTS.—It shall not be in order to con12 sider a report of a committee of conference unless an official 

13 written cost estimate or table by the Congressional Budget 

14 Office is available at the time of consideration.’’. 

15 (b) SUPERMAJORITY POINTS OF ORDER.—Subsections 

16 (c)(1) and (d)(2) of section 904 of the Congressional Budget 

17 and Impoundment Control Act of 1974 (2 U.S.C. 621 note) 

18 are amended by— 

19 (1) inserting ‘‘312(e),’’ after ‘‘310(d)(2),’’; and 

20 (2) inserting ‘‘and section 223 of the Stop Over 

21 Spending Act of 2006’’ after ‘‘of this Act’’. 

22 SEC. 510. EXTRANEOUS MATTER IN RECONCILIATION LEG23 ISLATION. 

24 Section 313 of the Congressional Budget Act of 1974 

25 (2 U.S.C. 644) is amended— 


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1 (1) in subsection (a) by striking ‘‘or section 

2 258C’’ through ‘‘1985’’; 

3 (2) in subsection (b), by— 

4 (A) striking paragraph (1) and inserting 

5 the following: 

6 ‘‘(1)(A) Except as provided in paragraph (2), a provi7 sion of a reconciliation bill or reconciliation resolution con8 sidered pursuant to section 310 shall be considered extra9 neous if such provision does not produce a change in out10 lays or governmental receipts, including changes in outlays 

11 and governmental receipts brought about by changes in the 

12 terms and conditions under which outlays are made or gov13 ernmental receipts are required to be collected (but a provi14 sion in which outlay decreases or governmental receipts in15 creases exactly offset outlay increases or governmental re16 ceipts decreases shall not be considered extraneous by virtue 

17 of this subparagraph); (B) except with respect to consider18 ation of conference reports, any provision producing an in19 crease in outlays or decrease in governmental receipts shall 

20 be considered extraneous if the net effect of provisions re21 ported by the committee reporting the title containing the 

22 provision is that the committee fails to achieve its reconcili23 ation instructions, or if the increase in outlays or decreases 

24 in governmental receipts exceeds 20 percent of the total 

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1 sion that is not in the jurisdiction of the Committee with 

2 jurisdiction over said title or provision shall be considered 

3 extraneous (except that amendments reported by the Com4 mittee on the Budget to achieve compliance with reconcili5 ation instructions shall not be extraneous); (D) a provision 

6 shall be considered to be extraneous if it increases, or would 

7 increase, net outlays, or if it decreases, or would decrease 

8 governmental receipts during a fiscal year after the fiscal 

9 years covered by such reconciliation bill or reconciliation 

10 resolution, and such increases or decreases are greater than 

11 outlay reductions or governmental receipts increases result12 ing from other provisions in such title in such year; and 

13 (E) a provision shall be considered extraneous if it violates 

14 section 310(g).’’; and 

15 (B) adding at the end the following: 

16 ‘‘(4) Technical and conforming provisions shall not be 

17 considered extraneous under this section.’’; and 

18 (3) in subsection (d)(1), by striking ‘‘(b)(1)(E), 

19 or (b)(1)(F)’’ and inserting ‘‘(b)(1)(E)’’. 

20 SEC. 511. ADJUSTMENTS. 

21 Title III of the Congressional Budget Act of 1974 (2 

22 U.S.C. 621 et seq.) is amended by— 

23 (1) striking section 314; and 

24 (2) redesignating section 315 as section 314. 


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1 SEC. 512. DIRECT SPENDING LIMITATION. 

2 Title III of the Congressional Budget Act of 1974 (2 

3 U.S.C. 621 et seq.) is amended by adding at the end the 

4 following: 

5 ‘‘DIRECT SPENDING LIMITATION

6 ‘‘SEC. 315. (a) IN GENERAL.—The chairman of the 

7 Committee on the Budget of the Senate may submit to the 

8 Senate a notification of a Medicare funding warning if the 

9 chairman projects that within 7 years General Fund of the 

10 Treasury contributions to Medicare funding, expressed as 

11 a percentage of total Medicare outlays, will exceed 45 per12 cent. 

13 ‘‘(b) POINT OF ORDER.—It shall not be in order to 

14 consider any bill, joint resolution, amendment or conference 

15 report that would cause any increase in direct spending, 

16 net of proposals to change direct spending, receipts, or reve17 nues contained in the measure, if a Medicare Funding 

18 warning has been submitted to the Senate pursuant to sub19 section (a) for 2 consecutive calendar years. 

20 ‘‘(c) WAIVER.—This section may be waived or sus21 pended only by an affirmative vote of three-fifths of the 

22 members, duly chosen and sworn. 

23 ‘‘(d) APPEALS.—An affirmative vote of three-fifths of 

24 the Members, duly chosen and sworn, shall be required to 

25 sustain an appeal of the ruling of the Chair on a point 

26 of order raised under this section. 


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1 ‘‘(e) DETERMINATIONS.—For the purposes of this sec2 tion, the determination of whether Medicare funding war3 rants a funding warning and when it may be appropriate 

4 to withdraw such warning, as well as the levels of net direct 

5 spending as required under subsection (b), shall be provided 

6 by the chairman of the Committee on the Budget. 

7 ‘‘(f) CANCELLATIONS.—If legislation is enacted to re8 duce the general fund contribution below 45 percent, as de9 termined by the chairman of the Committee on the Budget, 

10 any notification of a Medicare funding warning is with11 drawn.’’. 

12 SEC. 513. APPROPRIATIONS REQUESTS OF THE PRESIDENT. 

13 Section 1108(e) of title 31, United States Code, is 

14 amended by striking ‘‘Congress or a’’ and inserting ‘‘Con15 gress and a’’. 


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Calendar No. 520 

109TH CONGRESS 

2D SESSION S. 3521 

[Report No. 109

–283] 

A BILL 

To establish a new budget process to create a comprocess. deficit, and regain control of the Federal budget prehensive plan to rein in spending, reduce the 

JULY 14, 2006 

Reported with an amendment 


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