II 

109TH CONGRESS 

2D SESSION S. 3521 

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, and Mr. DOMENICI) introduced the following bill; which was read twice and referred to the Committee on the 

Budget 

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, 

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

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

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

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

7 this Act is as follows: 


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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. 

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 


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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; 

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

11 share of the United States economy, specifically as 

12 a percentage of Gross Domestic Product; 


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1 (6) to require automatic spending reduction rec2 onciliation directives to achieve annual deficit tar3 gets; 

4 (7) to put in place automatic sequester proce5 dures to reduce discretionary and mandatory spend6 ing when either statutory caps have been exceeded 

7 or deficit targets have not been met; 

8 (8) to require Congress to act upon legislation 

9 to ensure the solvency of the Social Security and 

10 Medicare Programs; 

11 (9) to require Congress to act upon legislation 

12 to identify and eliminate waste and duplication in 

13 Federal programs; 

14 (10) to establish biennial budgeting; 

15 (11) to strengthen and improve the Congres16 sional budget resolution and reconciliation process; 

17 and 

18 (12) to provide short term and long term solu19 tions to ensure the financial security of our nation 

20 so that our children and grandchildren will not be 

21 saddled with insurmountable debt. 

22 SEC. 3. SEVERABILITY. 

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

24 this Act, or the application of such provision or amend25 ment to any person or circumstance is held to be unconstiVerDate Aug 31 2005 21:38 Jun 16, 2006 Jkt 049196 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S3521.IS S3521

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1 tutional, the remainder of this Act, the amendments made 

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

3 to any person or circumstance shall not be affected there4 by. 

5 TITLE I—LEGISLATIVE LINE 

6 ITEM VETO ACT OF 2006 

7 SEC. 101. SHORT TITLE. 

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

9 Veto Act of 2006’’. 

10 SEC. 102. LEGISLATIVE LINE ITEM VETO. 

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

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

13 621 et seq.) is amended by striking part C and inserting 

14 the following: 

15 ‘‘PART C—LEGISLATIVE LINE ITEM VETO

16 ‘‘EXPEDITED CONSIDERATION OF CERTAIN PROPOSED

17 RESCISSIONS

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

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

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

21 to rescind dollar amounts of discretionary budget author22 ity, items of direct spending, and targeted tax benefits. 

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

24 ‘‘(1) SPECIAL MESSAGE.— 

25 ‘‘(A) IN GENERAL.— 


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1 ‘‘(i) FOUR MESSAGES.—The President 

2 may transmit to Congress not to exceed 4 

3 special messages per calendar year, pro4 posing to rescind dollar amounts of discre5 tionary budget authority, items of direct 

6 spending, and targeted tax benefits. 

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

8 be transmitted under clause (i)— 

9 ‘‘(I) with the President’s budget 

10 submitted pursuant to section 1105 of 

11 title 31, United States Code; and 

12 ‘‘(II) 3 other times as determined 

13 by the President. 

14 ‘‘(iii) LIMITATIONS.— 

15 ‘‘(I) IN GENERAL.—Special mes16 sages shall be submitted within 1 cal17 endar year of the date of enactment of 

18 any dollar amount of discretionary 

19 budget authority, item of direct 

20 spending, or targeted tax benefit the 

21 President proposes to rescind pursu22 ant to this Act. 

23 ‘‘(II) RESUBMITTAL.—If Con24 gress rejects or does not complete ac25 tion on a bill introduced under this 


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1 Act, the President may resubmit some 

2 or all of the dollar amounts of discre3 tionary budget authority, items of di4 rect spending, and targeted tax bene5 fits in that bill in not more than 1 ad6 ditional special message under this 

7 part or part B. 

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

9 Each special message shall specify, with respect 

10 to the dollar amount of discretionary budget au11 thority, item of direct spending, or targeted tax 

12 benefit proposed to be rescinded— 

13 ‘‘(i) the dollar amount of discretionary 

14 budget authority available and proposed 

15 for rescission from accounts, departments, 

16 or establishments of the government and 

17 the dollar amount of the reduction in out18 lays that would result from the enactment 

19 of such rescission of discretionary budget 

20 authority for the time periods set forth in 

21 subparagraph (A)(iii); 

22 ‘‘(ii) the specific items of direct spend23 ing and targeted tax benefits proposed for 

24 rescission and the dollar amounts of the 

25 reductions in budget authority and outlays 


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1 or increases in receipts that would result 

2 from enactment of such rescission for the 

3 time periods set forth in subparagraph 

4 (A)(iii); 

5 ‘‘(iii) the budgetary effects of pro6 posals for rescission, estimated as of the 

7 date the President submits the special 

8 message, relative to the most recent levels 

9 calculated consistent with the methodology 

10 described in section 257 of the Balanced 

11 Budget and Emergency Deficit Control Act 

12 of 1985 and included with a budget sub13 mission under section 1105(a) of title 31, 

14 United States Code, for the time periods 

15 of— 

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

17 proposal is submitted; and 

18 ‘‘(II) each of the 10 following fis19 cal years beginning with the fiscal 

20 year after the fiscal year in which the 

21 proposal is submitted; 

22 ‘‘(iv) any account, department, or es23 tablishment of the Government to which 

24 such dollar amount of discretionary budget 

25 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 

5 or item of direct spending or targeted tax 

6 benefit should be rescinded; 

7 ‘‘(vi) the estimated fiscal and eco8 nomic impacts, of the proposed rescission; 

9 ‘‘(vii) to the maximum extent prac10 ticable, all facts, circumstances, and con11 siderations relating to or bearing upon the 

12 proposed rescission and the decision to ef13 fect the proposed rescission, and the esti14 mated effect of the proposed rescission 

15 upon the objects, purposes, and programs 

16 for which the budget authority or items of 

17 direct spending or targeted tax benefits are 

18 provided; and 

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

20 would rescind the budget authority, items 

21 of direct spending and targeted tax bene22 fits proposed to be rescinded in that spe23 cial message. 

24 ‘‘(2) ANALYSIS BY CONGRESSIONAL BUDGET

25 OFFICE AND JOINT COMMITTEE ON TAXATION.— 


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

2 special message under this section proposing to 

3 rescind dollar amounts of discretionary budget 

4 authority, items of direct spending, and tar5 geted 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 

10 and shall include in its estimate, an anal11 ysis prepared by the Joint Committee on 

12 Taxation related to targeted tax benefits; 

13 and 

14 ‘‘(ii) the Director of the Joint Com15 mittee on Taxation shall prepare an esti16 mate and forward such estimate to the 

17 Congressional Budget Office, of the sav18 ings from repeal of targeted tax benefits. 

19 ‘‘(B) METHODOLOGY.—The estimates re20 quired by subparagraph (A) shall be made rel21 ative to the most recent levels calculated con22 sistent with the methodology used to calculate 

23 a baseline under section 257 of the Balanced 

24 Budget and Emergency Control Act of 1985 

25 and included with a budget submission under 


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

2 and transmitted to the chairmen of the Com3 mittees on the Budget of the House of Rep4 resentatives and Senate. 

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

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

7 budget authority or items of direct spending or 

8 targeted tax benefit that are rescinded pursuant 

9 to enactment of a bill as provided under this 

10 section shall be dedicated only to deficit reduc11 tion and shall not be used as an offset for other 

12 spending increases or revenue reductions. 

13 ‘‘(B) ADJUSTMENT OF BUDGET TAR14 GETS.—Not later than 5 days after the date of 

15 enactment of a rescission bill as provided under 

16 this section, the chairs of the Committees on 

17 the Budget of the Senate and the House of 

18 Representatives shall revise spending and rev19 enue levels under section 311(a) of the Con20 gressional Budget Act of 1974 and adjust the 

21 committee allocations under section 302(a) of 

22 the Congressional Budget Act of 1974 or any 

23 other adjustments as may be appropriate to re24 flect the rescission. The adjustments shall re25 flect the budgetary effects of such rescissions as 


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1 estimated by the President pursuant to para2 graph (1)(B)(iii). The appropriate committees 

3 shall report revised allocations pursuant to sec4 tion 302(b) of the Congressional Budget Act of 

5 1974. Notwithstanding any other provision of 

6 law, the revised allocations and aggregates shall 

7 be considered to have been made under a con8 current resolution on the budget agreed to 

9 under the Congressional Budget Act of 1974 

10 and shall be enforced under the procedures of 

11 that Act. 

12 ‘‘(C) ADJUSTMENTS TO CAPS.—After en13 actment of a rescission bill as provided under 

14 this section, the President shall revise applica15 ble limits under the Stop Over Spending Act of 

16 2006, as appropriate. 

17 ‘‘(c) PROCEDURES FOR EXPEDITED CONSIDER18 ATION.— 

19 ‘‘(1) IN GENERAL.— 

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

21 the second day of session of the Senate and the 

22 House of Representatives, respectively, after the 

23 date of receipt of a special message transmitted 

24 to Congress under subsection (b), the majority 

25 leader of each House, for himself, or minority 


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

2 of that House designated by that majority lead3 er or minority leader shall introduce (by re4 quest) the President’s draft bill to rescind the 

5 amounts of budget authority or items of direct 

6 spending or targeted tax benefits, as specified 

7 in the special message and the President’s draft 

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

9 the preceding sentence in either House, then, 

10 on the third day of session of that House after 

11 the date of receipt of that special message, any 

12 Member of that House may introduce the bill. 

13 ‘‘(B) REFERRAL AND REPORTING.— 

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

15 be referred by the presiding officer to the 

16 appropriate committee. The committee 

17 shall report the bill without any revision 

18 and with a favorable, an unfavorable, or 

19 without recommendation, not later than 

20 the fifth day of session of that House after 

21 the date of introduction of the bill in that 

22 House. If the committee fails to report the 

23 bill within that period, the committee shall 

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1 ation of the bill, and the bill shall be 

2 placed on the appropriate calendar. 

3 ‘‘(ii) MULTIPLE COMMITTEES.— 

4 ‘‘(I) REFERRALS.—If a bill con5 tains provisions in the jurisdiction of 

6 more than 1 committee, the bill shall 

7 be jointly referred to the committees 

8 of jurisdiction and the Committee on 

9 the Budget. 

10 ‘‘(II) VIEWS OF COMMITTEE.— 

11 Any committee, other than the Com12 mittee on the Budget, to which a bill 

13 is referred under this clause may sub14 mit a favorable, an unfavorable rec15 ommendation, without recommenda16 tion with respect to the bill to the 

17 Committee on the Budget prior to the 

18 reporting or discharge of the bill. 

19 ‘‘(III) REPORTING.—The Com20 mittee on the Budget shall report the 

21 bill not later than the fifth day of ses22 sion of that House after the date of 

23 introduction of the bill in that House, 

24 without any revision and with a favor25 able or unfavorable recommendation, 


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1 or without recommendation, together 

2 with the recommendations of any 

3 committee to which the bill has been 

4 referred. 

5 ‘‘(IV) DISCHARGE.—If the Com6 mittee on the Budget fails to report 

7 the bill within that period, the com8 mittee shall be automatically dis9 charged from consideration of the bill, 

10 and the bill shall be placed on the ap11 propriate calendar. 

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

13 passage of the bill shall be taken in the Senate 

14 and the House of Representatives on or before 

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

16 House after the date of the introduction of the 

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

18 Clerk of the House of Representatives shall 

19 cause the bill to be transmitted to the Senate 

20 before the close of the next day of session of the 

21 House. 

22 ‘‘(2) CONSIDERATION IN THE HOUSE OF REP23 RESENTATIVES.— 

24 ‘‘(A) MOTION TO PROCEED TO CONSIDER25 ATION.—A motion in the House of RepresentaVerDate Aug 31 2005 21:38 Jun 16, 2006 Jkt 049196 PO 00000 Frm 00015 Fmt 6652 Sfmt 6201 E:\BILLS\S3521.IS S3521

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1 tives to proceed to the consideration of a bill 

2 under this subsection shall be highly privileged 

3 and not debatable. An amendment to the mo4 tion shall not be in order, nor shall it be in 

5 order to move to reconsider the vote by which 

6 the motion is agreed to or disagreed to. 

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

8 House of Representatives on a bill under this 

9 subsection shall not exceed 4 hours, which shall 

10 be divided equally between those favoring and 

11 those opposing the bill. A motion further to 

12 limit debate shall not be debatable. It shall not 

13 be in order to move to recommit a bill under 

14 this subsection or to move to reconsider the 

15 vote by which the bill is agreed to or disagreed 

16 to. 

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

18 the chair relating to the application of the 

19 Rules of the House of Representatives to the 

20 procedure relating to a bill under this section 

21 shall be decided without debate. 

22 ‘‘(D) APPLICATION OF HOUSE RULES.— 

23 Except to the extent specifically provided in this 

24 section, consideration of a bill under this sec25 tion shall be governed by the Rules of the 


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1 House of Representatives. It shall not be in 

2 order in the House of Representatives to con3 sider any bill introduced pursuant to the provi4 sions of this section under a suspension of the 

5 rules or under a special rule. 

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

7 ‘‘(A) MOTION TO PROCEED TO CONSIDER8 ATION.—A motion to proceed to the consider9 ation of a bill under this subsection in the Sen10 ate shall not be debatable. A motion to proceed 

11 to consideration of the bill may be made even 

12 though a previous motion to the same effect has 

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

14 move to reconsider the vote by which the mo15 tion to proceed is agreed to or disagreed to. 

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

17 Senate on a bill under this subsection, and all 

18 debatable motions and appeals in connection 

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

20 equally divided and controlled in the usual 

21 form. 

22 ‘‘(C) DEBATABLE MOTIONS AND AP23 PEALS.—Debate in the Senate on any debatable 

24 motion or appeal in connection with a bill under 

25 this subsection shall be limited to not more 


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1 than 1 hour from the time allotted for debate, 

2 to be equally divided and controlled in the usual 

3 form. 

4 ‘‘(D) MOTION TO LIMIT DEBATE.—A mo5 tion in the Senate to further limit debate on a 

6 bill under this subsection is not debatable. 

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

8 recommit a bill under this subsection is not in 

9 order. 

10 ‘‘(F) CONSIDERATION OF THE HOUSE

11 BILL.— 

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

13 received the House companion bill to the 

14 bill introduced in the Senate prior to the 

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

16 the Senate shall consider, and the vote 

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

18 House companion bill. 

19 ‘‘(ii) PROCEDURE AFTER VOTE ON

20 SENATE BILL.—If the Senate votes, pursu21 ant to paragraph (1)(C), on the bill intro22 duced in the Senate, the Senate bill shall 

23 be held pending receipt of the House mes24 sage on the bill. Upon receipt of the House 

25 companion bill, the House bill shall be 


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1 deemed to be considered, read for the third 

2 time, and the vote on passage of the Sen3 ate bill shall be considered to be the vote 

4 on the bill received from the House. 

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

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

7 considered under this section shall be in order in ei8 ther the Senate or the House of Representatives. 

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

10 demand a division of the question in the House of 

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

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

13 the application of this subsection shall be in order 

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

15 order in either the House of Representatives or the 

16 Senate to suspend the application of this subsection 

17 by unanimous consent. 

18 ‘‘(e) TEMPORARY PRESIDENTIAL AUTHORITY TO

19 WITHHOLD.— 

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

21 withhold any dollar amount of discretionary budget 

22 authority until the President transmits and Congress 

23 receives a special message pursuant to subsection 

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

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


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1 that any dollar amount of discretionary budget au2 thority proposed to be rescinded in that special mes3 sage shall be withheld from obligation for a period 

4 not to exceed 45 calendar days from the date of re5 ceipt by Congress. 

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

7 may make any dollar amount of discretionary budget 

8 authority withheld from obligation pursuant to para9 graph (1) available at an earlier time if the Presi10 dent determines that continued withholding would 

11 not further the purposes of this Act. 

12 ‘‘(f) TEMPORARY PRESIDENTIAL AUTHORITY TO

13 SUSPEND.— 

14 ‘‘(1) SUSPEND.—The President may not sus15 pend the execution of any item of direct spending or 

16 targeted tax benefit until the President transmits 

17 and Congress receives a special message pursuant to 

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

19 message, the President may suspend the execution 

20 of any item of direct spending or targeted tax ben21 efit proposed to be rescinded in that message for a 

22 period not to exceed 45 calendar days from the date 

23 of receipt by Congress. 

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

25 may terminate the suspension of any item of direct 


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1 spending or targeted tax benefit suspended pursuant 

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

3 determines that continuation of the suspension 

4 would not further the purposes of this Act. 

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

6 ‘‘(1) APPROPRIATION LAW.—The term ‘appro7 priation law’ means any general or special appro8 priation Act, and any Act or joint resolution making 

9 supplemental, deficiency, or continuing appropria10 tions. 

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

12 means a standard 24-hour period beginning at mid13 night. 

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

15 session’ means only those days on which both 

16 Houses of Congress are in session. 

17 ‘‘(4) DOLLAR AMOUNT OF DISCRETIONARY

18 BUDGET AUTHORITY.—The term ‘dollar amount of 

19 discretionary budget authority’ means the dollar 

20 amount of budget authority and obligation limita21 tions— 

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

23 the dollar amount of budget authority required 

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1 propriation law for which a specific dollar figure 

2 was not included; 

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

4 chart, or explanatory text included in the state5 ment of managers or the governing committee 

6 report accompanying such law; 

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

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

9 than an appropriation law) that mandates obli10 gations from or within accounts, programs, 

11 projects, or activities for which budget authority 

12 or an obligation limitation is provided in an ap13 propriation law; 

14 ‘‘(D) represented by the product of the es15 timated procurement cost and the total quantity 

16 of items specified in an appropriation law or in17 cluded in the statement of managers or the gov18 erning committee report accompanying such 

19 law; or 

20 ‘‘(E) represented by the product of the es21 timated procurement cost and the total quantity 

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

23 than an appropriation law) that mandates obli24 gations from accounts, programs, projects, or 

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1 tionary budget authority or an obligation limita2 tion is provided in an appropriation law. 

3 ‘‘(5) RESCIND OR RESCISSION.—The term ‘re4 scind’ or ‘rescission’ means— 

5 ‘‘(A) in the case of a dollar amount of dis6 cretionary budget authority, to reduce or repeal 

7 a provision of law to prevent that budget au8 thority or obligation limitation from having 

9 legal force or effect; and 

10 ‘‘(B) in the case of direct spending or tar11 geted tax benefit, to repeal a provision of law 

12 in order to prevent the specific legal obligation 

13 of the United States from having legal force or 

14 effect. 

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

16 spending’ means budget authority provided by law 

17 (other than an appropriation law), mandatory spend18 ing provided in appropriation Acts, and entitlement 

19 authority. 

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

21 ‘item of direct spending’ means any specific provi22 sion of law enacted after the effective date of the 

23 Legislative Line Item Veto Act of 2006 that is esti24 mated to result in an increase in budget authority 

25 or outlays for direct spending relative to the most 


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1 recent levels calculated consistent with the method2 ology described in section 257 of the Balanced 

3 Budget and Emergency Deficit Control Act of 1985 

4 and included with a budget submission under section 

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

6 respect to estimates made after that budget submis7 sion that are not included with it, estimates con8 sistent with the economic and technical assumptions 

9 underlying the most recently submitted President’s 

10 budget. 

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

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

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

14 stop the carrying into effect of the specific provision 

15 of law that provides such benefit; and 

16 ‘‘(9) TARGETED TAX BENEFIT.—The term ‘tar17 geted tax benefit’ means only those provisions— 

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

19 Taxation to result in a loss of revenues relative 

20 to the most recent levels calculated consistent 

21 with the methodology described in section 257 

22 of the Balanced Budget and Emergency Deficit 

23 Control Act of 1985 and included with a budget 

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

25 United States Code, and with respect to estiVerDate Aug 31 2005 21:38 Jun 16, 2006 Jkt 049196 PO 00000 Frm 00024 Fmt 6652 Sfmt 6201 E:\BILLS\S3521.IS S3521

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1 mates made after that budget submission that 

2 are not included with it, estimates consistent 

3 with the economic and technical assumptions 

4 underlying the most recently submitted Presi5 dent’s budget; and 

6 ‘‘(B) having the practical effect of pro7 viding more favorable tax treatment to a par8 ticular taxpayer or limited group of taxpayers 

9 when compared with other similarly situated 

10 taxpayers. 

11 ‘‘(h) CONGRESSIONAL IDENTIFICATION OF TAR12 GETED TAX BENEFITS.— 

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

14 The Joint Committee on Taxation shall review any 

15 revenue or reconciliation bill or joint resolution 

16 which includes any amendment to the Internal Rev17 enue Code of 1986 that is being prepared for filing 

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

19 shall identify, prior to consideration of such con20 ference report, whether such bill or joint resolution 

21 contains any targeted tax benefits. The Joint Com22 mittee on Taxation shall provide to the committee of 

23 conference a statement identifying any such targeted 

24 tax benefits or declaring that the bill or joint resolu25 tion does not contain any targeted tax benefits. The 


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1 statement shall be included in the statement of man2 agers to accompany such conference report and 

3 made available to any Member of Congress by the 

4 Joint Committee on Taxation immediately upon re5 quest. 

6 ‘‘(2) STATEMENT INCLUDED IN LEGISLA7 TION.—Notwithstanding any other rule of the House 

8 of Representatives or any rule or precedent of the 

9 Senate, any revenue or reconciliation bill or joint 

10 resolution, which includes any amendment to the In11 ternal Revenue Code of 1986 reported by a com12 mittee of conference of the House of Representatives 

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

14 of such bill or joint resolution, the information con15 tained in the statement of the Joint Committee on 

16 Taxation.’’. 

17 (b) EXERCISE OF RULEMAKING POWERS.—Section 

18 904 of the Congressional Budget Act of 1974 (2 U.S.C. 

19 621 note) is amended— 

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

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

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

23 1017’’ and inserting ‘‘sections 1017 and 1021’’. 

24 (c) CLERICAL AMENDMENTS.— 


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1 (1) SHORT TITLE.—Section 1(a) of the Con2 gressional Budget and Impoundment Control Act of 

3 1974 is amended by— 

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

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

6 (B) striking the last sentence and inserting 

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

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

9 Line Item Veto Act of 2006’.’’. 

10 (2) TABLE OF CONTENTS.—The table of con11 tents set forth in section 1(b) of the Congressional 

12 Budget and Impoundment Control Act of 1974 is 

13 amended by deleting the contents for part C of title 

14 X and inserting the following: 

‘‘PART C—LEGISLATIVE LINE ITEM VETO

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

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

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

17 the remainder of this Act and the amendments made by 

18 it shall not be affected by the holding. 

19 (e) EFFECTIVE DATE AND EXPIRATION.— 

20 (1) EFFECTIVE DATE.—The amendments made 

21 by this Act shall— 

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

23 this Act; and 


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1 (B) apply to any dollar amount of discre2 tionary budget authority, item of direct spend3 ing, or targeted tax benefit provided in an Act 

4 enacted on or after September 1, 2006. 

5 (2) EXPIRATION.—The amendments made by 

6 this Act shall expire on December 31, 2010. 

7 TITLE II—DEFICIT REDUCTION 

8 Subtitle A—Definitions, 

9 Administration, and Sequestration 

10 SEC. 201. DEFINITIONS. 

11 In this subtitle: 

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

13 (A) for discretionary budget authority, an 

14 item for which appropriations are made in any 

15 appropriation Act; and 

16 (B) for items not provided for in appro17 priation Acts, direct spending and outlays 

18 therefrom identified in the program and finance 

19 schedules contained in the appendix to the 

20 Budget of the United States for the current 

21 year. 

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

23 any fiscal year, the amount by which discretionary 

24 budget authority enacted for that year exceeds the 

25 spending limit for budget authority for that year. 


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1 (3) BUDGET AUTHORITY; NEW BUDGET AU2 THORITY; AND OUTLAYS.—The terms ‘‘budget au3 thority’’, ‘‘new budget authority’’, and ‘‘outlays’’ 

4 have the meanings given to such terms in section 3 

5 of the Congressional Budget and Impoundment Con6 trol Act of 1974 (2 U.S.C. 622). For purposes of 

7 subtitle B an obligation limitation shall be treated as 

8 budget authority. 

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

10 means, with respect to a session of Congress, the fis11 cal year of the Government that starts on October 

12 1 of the calendar year in which that session begins. 

13 (5) CBO.—The term ‘‘CBO’’ means the Direc14 tor of the Congressional Budget Office. 

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

16 (A) with respect to the Office of Manage17 ment and Budget estimates included with a 

18 budget submission under section 1105(a) of 

19 title 31, United States Code, the estimates con20 sistent with the economic and technical assump21 tions underlying that budget; 

22 (B) with respect to estimates made after 

23 that budget submission that are not included 

24 with it, the estimates consistent with the eco25 nomic and technical assumptions underlying the 


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1 most recently submitted President’s budget; 

2 and 

3 (C) with respect to the Congressional 

4 Budget Office, estimates consistent with the 

5 economic and technical assumptions as required 

6 by section 202(e)(1) of the Congressional Budg7 et Act of 1974. 

8 (7) 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 (8) DEFICIT.—The term ‘‘deficit’’ means, with 

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

13 budget outlays for such fiscal year exceed total gov14 ernmental receipts for such fiscal year. In calcu15 lating the deficit for purposes of comparison with 

16 the maximum deficit amount under section 221 and 

17 in calculating the excess deficit for purposes of sub18 title C (notwithstanding section 710(a) of the Social 

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

20 the receipts of the Federal Old-Age and Survivors 

21 Insurance Trust Fund and the Federal Disability 

22 Insurance Trust Fund for such fiscal year and the 

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

24 3111(a) of the Internal Revenue Code of 1954 (26 

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


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1 shall be included in total revenues for such fiscal 

2 year, and the disbursements of each such Trust 

3 Fund for such fiscal year shall be included in total 

4 budget outlays for such fiscal year. Notwithstanding 

5 any other provision of law except to the extent pro6 vided by section 710(a) of the Social Security Act 

7 (42 U.S.C. 911) the receipts, revenues, disburse8 ments, budget authority, and outlays of each off9 budget Federal entity for a fiscal year shall be in10 cluded in total budget authority, total budget out11 lays, and total revenues and the amounts of budget 

12 authority and outlays set forth for each major func13 tional category, for such fiscal year. 

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

15 spending’’ shall have the meaning given such term 

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

17 1974. 

18 (10) DISCRETIONARY BUDGET AUTHORITY.— 

19 The term ‘‘discretionary budget authority’’ means 

20 budgetary authority (except to fund mandatory pro21 grams) provided in appropriation Acts. 

22 (11) DISCRETIONARY SPENDING LIMIT.—The 

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

24 amounts specified in section 212. 


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1 (12) EXCESS DEFICIT AMOUNT.—The term ‘‘ex2 cess deficit amount’’, with respect to any fiscal year, 

3 means the amount of the deficit reduced by the esti4 mated reductions of outlays resulting from any se5 questration in subtitle C, that exceeds the maximum 

6 deficit amount. 

7 (13) OMB.—The term ‘‘OMB’’ means the Di8 rector of the Office of Management and Budget. 

9 (14) SEQUESTRATION.—The term ‘‘sequestra10 tion’’ — 

11 (A) with respect to discretionary budget 

12 authority, means the cancellation or reduction 

13 of budget authority (except budget authority to 

14 fund mandatory programs) provided in appro15 priation Acts; and 

16 (B) with respect to the excess deficit 

17 amount, means the amount cancelled or re18 duced from direct spending and outlays flowing 

19 therefrom. 

20 SEC. 202. ADMINISTRATION, RECONCILIATION, AND EF21 FECT OF SEQUESTRATION. 

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

23 title is as follows: 


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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. 

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

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

3 estimates that any sequestration is required, the President 

4 shall issue an order fully implementing without change all 

5 sequestrations required by the OMB calculations set forth 

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

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

8 sequestration shall be as follows: 

9 (1) Budgetary resources sequestered from any 

10 account shall be permanently cancelled, except as 

11 provided in paragraph (5). 

12 (2) Except as otherwise provided, the same per13 centage sequestration shall apply to all programs, 


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1 projects, and activities within a budget account (with 

2 programs, projects, and activities as delineated in 

3 the appropriation Act or accompanying report for 

4 the relevant fiscal year covering that account). 

5 (3) Administrative regulations or similar ac6 tions implementing a sequestration shall be made 

7 within 120 days of the sequestration order. To the 

8 extent that formula allocations differ at different 

9 levels of budgetary resources within an account, pro10 gram, project, or activity, the sequestration shall be 

11 interpreted as producing a lower total appropriation, 

12 with the remaining amount of the appropriation 

13 being obligated in a manner consistent with program 

14 allocation formulas in substantive law. 

15 (4) Except as otherwise provided in this sub16 title, obligations or budgetary resources in seques17 tered accounts shall be reduced only in the fiscal 

18 year in which a sequester occurs. 

19 (5) Budgetary resources sequestered in special 

20 fund accounts and offsetting collections sequestered 

21 in appropriation accounts shall not be available for 

22 obligation during the fiscal year in which the seques23 tration occurs, but shall be available in subsequent 

24 years to the extent otherwise provided in law. 


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1 (d) SUBMISSION AND AVAILABILITY OF REPORTS.— 

2 Each report required by this section shall be submitted, 

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

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

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

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

7 shall be printed in the Federal Register. 

8 SEC. 203. GAO COMPLIANCE REPORT. 

9 Upon request of the Committee on the Budget of the 

10 House of Representatives or the Senate, the Comptroller 

11 General shall submit to the Congress and the President 

12 a report on— 

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

14 President under this title complies with all of the re15 quirements contained in this title, either certifying 

16 that the order fully and accurately complies with 

17 such requirements or indicating the respects in 

18 which it does not; and 

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

20 OMB or CBO under this section complies with all of 

21 the requirements contained in this title, either certi22 fying that the report fully and accurately complies 

23 with such requirements or indicating the respects in 

24 which it does not. 


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1 Subtitle B—Discretionary 

2 Spending Limits 

3 SEC. 211. DISCRETIONARY SEQUESTRATION REPORTS. 

4 (a) DISCRETIONARY SEQUESTRATION PREVIEW RE5 PORTS.— 

6 (1) REPORTING REQUIREMENT.— 

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

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

9 President and Congress and CBO shall report 

10 to Congress a Discretionary Sequestration Pre11 view Report regarding discretionary sequestra12 tion based on laws enacted through those dates. 

13 (B) PRESIDENT’S BUDGET.—When the 

14 President submits the budget under section 

15 1105 of title 31, United States Code, OMB 

16 shall calculate and the budget shall include ad17 justments to discretionary spending limits (and 

18 those limits as cumulatively adjusted) for the 

19 budget year and each outyear to reflect changes 

20 in concepts and definitions. 

21 (C) CONSULTATION.—Any determination 

22 or change under subparagraph (B) may only be 

23 made after consultation with the Committees on 

24 Appropriations and the Budget of the House of 

25 Representatives and the Senate, and that conVerDate Aug 31 2005 21:38 Jun 16, 2006 Jkt 049196 PO 00000 Frm 00036 Fmt 6652 Sfmt 6201 E:\BILLS\S3521.IS S3521

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1 sultation shall include written communication to 

2 such committees that affords such committees 

3 the opportunity to comment before official ac4 tion is taken with respect to such changes. 

5 (2) DISCRETIONARY.—The Discretionary Se6 questration Preview Report shall set forth estimates 

7 for the current year and each subsequent year 

8 through 2009 of the applicable discretionary spend9 ing limits and an explanation of any adjustments in 

10 such limits under section 212, and a projection of 

11 budget authority exceeding discretionary caps sub12 ject to sequester. 

13 (3) EXPLANATION OF DIFFERENCES.—The 

14 OMB reports shall explain the differences between 

15 OMB and CBO estimates for each item set forth in 

16 this subsection. 

17 (b) DISCRETIONARY SEQUESTRATION REPORTS.—On 

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

19 issue Discretionary Sequestration Reports, reflecting laws 

20 enacted through those dates, containing all of the informa21 tion required in the Discretionary Sequestration Preview 

22 Reports. 

23 (c) FINAL DISCRETIONARY SEQUESTRATION RE24 PORTS.— 


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1 (1) REPORTING REQUIREMENTS.—On the dates 

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

3 each issue a Final Discretionary Sequestration Re4 port, updated to reflect laws enacted through those 

5 dates. 

6 (2) DISCRETIONARY SPENDING.—The Final 

7 Discretionary Sequestration Reports shall set forth 

8 estimates for each of the following: 

9 (A) For the current year and each subse10 quent year through 2009; the applicable discre11 tionary spending limits. 

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

13 the budget year; the new budget authority and 

14 the breach, if any. 

15 (C) The sequestration percentages nec16 essary to eliminate the breach. 

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

18 to be sequestered, the level of enacted, 

19 sequesterable budget authority and resulting es20 timated outlays to be sequestered. 

21 (3) EXPLANATION OF DIFFERENCES.—The 

22 OMB report shall explain any differences between 

23 OMB and CBO estimates for any breach and any 

24 required discretionary sequestration percentages. 

25 The OMB report shall also explain differences in the 


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1 amount of sequesterable resources for any budget 

2 account to be reduced if such difference is greater 

3 than $5,000,000. 

4 (d) ECONOMIC AND TECHNICAL ASSUMPTIONS.—In 

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

6 same economic and technical assumptions as used in the 

7 most recent budget submitted by the President under sec8 tion 1105(a) of title 31, United States Code. 

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

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

11 and the subsequent reports and budgets submitted by the 

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

13 Code shall include, adjustments to discretionary spending 

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

15 and each succeeding year. 

16 SEC. 212. LIMITS. 

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

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

19 means— 

20 (1) with respect to fiscal year 2007, 

21 $872,504,000,000 in new budget authority; 

22 (2) with respect to fiscal year 2008, 

23 $895,358,000,000 in new budget authority; 

24 (3) with respect to fiscal year 2009, 

25 $919,516,000,000 in new budget authority; and 


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

2 The President shall recommend and the Congress 

3 shall consider legislation setting limits for those fis4 cal years. 

5 (b) ADJUSTMENTS.— 

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

7 2007, 2008, or 2009, appropriations for discre8 tionary accounts are enacted that the President des9 ignates as emergency requirements, and that the 

10 Congress so designates in statute, the adjustment 

11 shall be the total of such appropriations in discre12 tionary accounts designated as emergency require13 ments, but not to exceed $90,000,000,000 for fiscal 

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

15 $30,000,000,000 for 2009. Appropriations des16 ignated as emergencies in excess of these limitations 

17 shall be treated as new budget authority for the pur18 pose of calculating a breach of the discretionary 

19 spending limits. 

20 (2) FEDERAL TAX GAP INITIATIVE.—If an ap21 propriation bill or joint resolution is enacted for fis22 cal year 2007, 2008, or 2009, that includes 

23 $6,824,000,000 plus an additional amount for the 

24 enhanced tax enforcement initiative of the Internal 

25 Revenue Service, the adjustment shall be the amount 


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1 of budget authority in that measure for that initia2 tive but not to exceed— 

3 (A) with respect to fiscal year 2007, 

4 $274,000,000 in new budget authority; 

5 (B) with respect to fiscal year 2008, 

6 $414,000,000 in new budget authority; and 

7 (C) with respect to fiscal year 2009, 

8 $554,000,000 in new budget authority. 

9 (c) ENFORCEMENT.— 

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

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

12 eliminate a budget-year breach. 

13 (2) ELIMINATING A BREACH.—Each account 

14 shall be reduced by a dollar amount calculated by 

15 multiplying the enacted level of budget authority for 

16 that year in that account at that time by the uni17 form percentage necessary to eliminate a breach of 

18 the discretionary spending limit. 

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

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

21 is in effect an Act making continuing appropriations 

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

23 the dollar sequestration calculated for that account 

24 under paragraph (2) shall be subtracted from— 


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1 (A) the annualized amount otherwise avail2 able by law in that account under that or a sub3 sequent part-year appropriation; and 

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

5 account is enacted, from the amount otherwise 

6 provided by the full-year appropriation. 

7 (4) LOOK-BACK.—If, after June 30, an appro8 priation for the fiscal year in progress is enacted 

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

10 account any previous sequestration), the discre11 tionary spending limit for the next fiscal year shall 

12 be reduced by the amount of that breach. 

13 (5) WITHIN-SESSION SEQUESTRATION REPORTS

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

15 in progress is enacted (after Congress adjourns to 

16 end the session for that budget year and before July 

17 1 of that fiscal year) that causes a breach, 10 days 

18 later CBO shall issue a report containing the infor19 mation required in section 211(c). Fifteen days after 

20 enactment, OMB shall issue a report containing the 

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

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

23 order fully implementing without change all seques24 trations required by the OMB calculations set forth 


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1 in that report. This order shall be effective on 

2 issuance. 

3 (d) ESTIMATES.— 

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

5 after Congress completes action on any legislation 

6 providing discretionary appropriations, CBO shall 

7 provide an estimate to OMB of that legislation. 

8 (2) OMB ESTIMATES.—Not later than 7 cal9 endar days (excluding Saturdays, Sundays, and legal 

10 holidays) after the date of enactment of any discre11 tionary appropriations, OMB shall transmit a report 

12 to the House of Representatives and to the Senate 

13 containing— 

14 (A) the CBO estimate of that legislation; 

15 (B) an OMB estimate of that legislation 

16 using current economic and technical assump17 tions; and 

18 (C) an explanation of any difference be19 tween the 2 estimates. 

20 (3) DIFFERENCES.—If during the preparation 

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

22 that there is a difference between the OMB and 

23 CBO estimates, OMB shall consult with the Com24 mittees on the Budget of the House of Representa25 tives and the Senate regarding that difference and 


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1 that consultation, to the extent practicable, shall in2 clude written communication to such committees 

3 that affords such committees the opportunity to 

4 comment before the issuance of that report. 

5 (4) ASSUMPTIONS AND GUIDELINES.—OMB 

6 and CBO shall prepare estimates under this para7 graph in conformance with scorekeeping guidelines 

8 determined after consultation among the House and 

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

10 Subtitle C—Maximum Deficit 

11 Amount Limitation 

12 SEC. 221. MAXIMUM DEFICIT AMOUNT. 

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

14 means— 

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

16 the Gross Domestic Product for 2007, as estimated 

17 by OMB for 2007; 

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

19 the Gross Domestic Product for 2008, as estimated 

20 by OMB for 2008; 

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

22 the Gross Domestic Product for 2009, as estimated 

23 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

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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 21:38 Jun 16, 2006 Jkt 049196 PO 00000 Frm 00049 Fmt 6652 Sfmt 6201 E:\BILLS\S3521.IS 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 

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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 

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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 21:38 Jun 16, 2006 Jkt 049196 PO 00000 Frm 00066 Fmt 6652 Sfmt 6201 E:\BILLS\S3521.IS 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 

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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 21:38 Jun 16, 2006 Jkt 049196 PO 00000 Frm 00072 Fmt 6652 Sfmt 6201 E:\BILLS\S3521.IS 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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•S 3521 IS

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 21:38 Jun 16, 2006 Jkt 049196 PO 00000 Frm 00104 Fmt 6652 Sfmt 6201 E:\BILLS\S3521.IS 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 

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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 

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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 

25 (2). If the Commission bill is not introduced in acVerDate Aug 31 2005 21:38 Jun 16, 2006 Jkt 049196 PO 00000 Frm 00130 Fmt 6652 Sfmt 6201 E:\BILLS\S3521.IS S3521

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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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•S 3521 IS

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 

24 and Senate, an estimate of total new budget au25 thority and total outlays with the estimates diVerDate Aug 31 2005 21:38 Jun 16, 2006 Jkt 049196 PO 00000 Frm 00140 Fmt 6652 Sfmt 6201 E:\BILLS\S3521.IS S3521

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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 21:38 Jun 16, 2006 Jkt 049196 PO 00000 Frm 00157 Fmt 6652 Sfmt 6201 E:\BILLS\S3521.IS 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’’. 

Æ 


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