Union Calendar No. 178

106TH CONGRESS

1ST SESSION H. R. 853

[Report No. 106–198, Parts I, II, and III]

A BILL

To amend the Congressional Budget Act of 1974 to

and for other purposes.quirements when there is an on-budget surplus,ward higher spending, modifications in paygo remitigation of the bias in the budget process tocrual budgeting for Federal insurance programs,creased accountability for Federal spending, acened enforcement of budgetary decisions, inserve funds for emergency spending, strengthprovide for joint resolutions on the budget, reAUGUST 5, 1999

Reported from the Committee on the Budget with an

amendment

AUGUST 5, 1999

Reported from the Committee on Rules with an amendon the State of the Union, and ordered to be printed ment, committed to the Committee of the Whole House
IB

Union Calendar No. 178

106TH CONGRESS

1ST SESSION H. R. 853

[Report No. 106–198, Parts I, II, and III]

To amend the Congressional Budget Act of 1974 to provide for joint resolutions on the budget, reserve funds for emergency spending, strengthened

enforcement of budgetary decisions, increased accountability for Federal

spending, accrual budgeting for Federal insurance programs, mitigation

of the bias in the budget process toward higher spending, modifications

in paygo requirements when there is an on-budget surplus, and for

other purposes.

IN THE HOUSE OF REPRESENTATIVES

FEBRUARY 25, 1999

Mr. NUSSLE (for himself, Mr. CARDIN, Mr. KASICH, Mr. DREIER, Mr. GOSS,

Mr. MINGE, Mr. SUNUNU, Mr. RADANOVICH, and Mr. STENHOLM) introduced the following bill; which was referred to the Committee on the

Budget, and in addition to the Committees on Rules, and Appropriations,

for a period to be subsequently determined by the Speaker, in each case

for consideration of such provisions as fall within the jurisdiction of the

committee concerned

JUNE 24, 1999

Reported with an amendment, adversely, from the Committee on

Appropriations

[Omit the part in bold brackets and struck through]

AUGUST 5, 1999

Reported from the Committee on the Budget with an amendment

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

AUGUST 5, 1999

Additional sponsors: Mr. BARTON of Texas, Mr. CASTLE, Mr. ENGLISH, Mr.

GREENWOOD, Mr. HASTINGS of Washington, Mrs. JOHNSON of Connecticut, Ms. PRYCE of Ohio, Mr. RAMSTAD, Mr. SESSIONS, Mr. SHAYS,

Mrs. MYRICK, Mr. REYNOLDS, Mr. GUTKNECHT, Mr. UPTON, Mr. CAMPBELL, Mr. BURR of North Carolina, Mr. LINDER, Mr. BARR of Georgia,
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Mr. ROYCE, Mr. HALL of Texas, Mr. CONDIT, Mr. GEKAS, Mr. RYAN of

Wisconsin, and Mr. TOOMEY

Deleted sponsors: Mr. REGULA (added March 3, 1999; deleted May 27, 1999),

and Mr. HOBSON (added April 26, 1999; deleted June 18, 1999)

AUGUST 5, 1999

Reported from the Committee on Rules with an amendment, committed to the

Committee of the Whole House on the State of the Union, and ordered

to be printed

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

A BILL

To amend the Congressional Budget Act of 1974 to provide

for joint resolutions on the budget, reserve funds for

emergency spending, strengthened enforcement of budgetary decisions, increased accountability for Federal

spending, accrual budgeting for Federal insurance programs, mitigation of the bias in the budget process toward higher spending, modifications in paygo requirements when there is an on-budget surplus, and for other

purposes.

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

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

5 ‘‘Comprehensive Budget Process Reform Act of 1999’’.

6 (b) TABLE OF CONTENTS.—

Sec. 1. Short title; table of contents.

Sec. 2. Purpose.

Sec. 3. Effective date.

Sec. 4. Declaration of purposes for the Budget Act.

TITLE I—BUDGET WITH FORCE OF LAW

Sec. 101. Purposes.
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Sec. 102. The timetable.

Sec. 103. Annual joint resolutions on the budget.

Sec. 104. Budget required before spending bills may be considered; fall-back

procedures if President vetoes joint budget resolution.

Sec. 105. Reaffirming special budgetary status of social security.

Sec. 106. Conforming amendments to effectuate joint resolutions on the budget.

TITLE II—RESERVE FUNDS FOR EMERGENCIES

Sec. 201. Purpose.

Sec. 202. Repeal of adjustments for emergencies.

Sec. 203. OMB emergency criteria.

Sec. 204. Development of guidelines for application of emergency definition.

Sec. 205. Reserve funds for emergencies in President’s budget.

Sec. 206. Adjustments and reserve funds for emergencies in joint budget resolutions.

Sec. 207. Committee notification of emergency legislation.

Sec. 208. Application of section 306 to emergencies in excess of amounts in reserve funds.

Sec. 209. Up-to-date tabulations.

Sec. 210. Report of Committees on the Budget.

Sec. 211. Prohibition on amendments to emergency reserve funds.

Sec. 312. Effective active date.

TITLE III—ENFORCEMENT OF BUDGETARY DECISIONS

Sec. 301. Purposes.

Subtitle A—Application of Points of Order to Unreported Legislation

Sec. 311. Application of Budget Act points of order to unreported legislation.

Subtitle B—Compliance with Budget Resolution

Sec. 321. Budget compliance statements.

Subtitle C—Justification for Budget Act Waivers

Sec. 331. Justification for Budget Act waivers in the House of Representatives.

Subtitle D—CBO Scoring of Conference Reports

Sec. 341. CBO scoring of conference reports.

TITLE IV—ACCOUNTABILITY FOR FEDERAL SPENDING

Sec. 401. Purposes.

Subtitle A—Prohibitions on Indefinite Spending

Sec. 411. Fixed-year authorizations required for new programs.

Sec. 412. Amendments to subject new entitlements to annual appropriations.

Subtitle B—Enhanced Congressional Oversight Responsibilities

Sec. 421. Ten-year congressional review requirement of permanent budget authority.

Sec. 422. Justifications of direct spending.

Sec. 423. Survey of activity reports of House committees.
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Sec. 424. Continuing study of additional budget process reforms.

Sec. 425. GAO reports.

Subtitle C—Strengthened Accountability

Sec. 431. Ten-year CBO estimates.

Sec. 432. Repeal of rule XXIII of the Rules of the House of Representatives.

TITLE V—BUDGETING FOR UNFUNDED LIABILITIES AND OTHER

LONG-TERM OBLIGATIONS

Sec. 501. Purposes.

Subtitle A—Budgetary Treatment of Federal Insurance Programs

Sec. 511. Federal insurance programs.

Subtitle B—Reports on Long-Term Budgetary Trends

Sec. 521. Reports on long-term budgetary trends.

TITLE VI—BASELINE, BYRD RULE, LOCK-BOX, AND AUTOMATIC

CONTINUING RESOLUTION

Sec. 601. Purpose.

Subtitle A—The Baseline

Sec. 611. The President’s budget.

Sec. 612. The congressional budget.

Sec. 613. Congressional Budget Office reports to committees.

Sec. 614. Outyear assumptions for discretionary spending.

Subtitle B—The Byrd Rule

Sec. 621. Limitation on Byrd rule.

Subtitle C—Spending Accountability Lock-Box

Sec. 631. Short title.

Sec. 632. Spending accountability lock-box ledger.

Sec. 633. Downward adjustment of section 302(a) allocations and section

302(b) suballocations.

Sec. 634. Periodic reporting of ledger statements.

Sec. 635. Downward adjustment of discretionary spending limits.

Subtitle D—Automatic Continuing Resolution

Sec. 641. Automatic continuing resolution.

TITLE VII—BUDGETING IN AN ERA OF SURPLUSES

Sec. 701. Paygo requirements and the on-budget surplus.

1 SEC. 2. PURPOSE.

2 The purposes of this Act are to—

3 (1) give the budget the force of law;
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1 (2) budget for emergencies;

2 (3) display the unfunded liabilities of Federal

3 insurance programs;

4 (4) strengthen enforcement of budgetary deci5 sions;

6 (5) increase accountability for Federal spend7 ing;

8 (6) mitigate the bias in the budget process to9 ward higher spending; and

10 (7) modify paygo requirements when there is an

11 on-budget surplus.

12 SEC. 3. EFFECTIVE DATE.

13 Except as otherwise specifically provided, this Act

14 and the amendments made by this Act shall become effec15 tive on the date of enactment of this Act and shall apply

16 with respect to fiscal years beginning after September 30,

17 2000.

18 SEC. 4. DECLARATION OF PURPOSES FOR THE BUDGET

19 ACT.

20 Paragraphs (1) and (2) of section 2 of the Congres21 sional Budget and Impoundment Control Act of 1974 are

22 amended to read as follows:

23 ‘‘(1) to assure effective control over the budg24 etary process;
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1 ‘‘(2) to facilitate the determination each year of

2 the appropriate level of Federal revenues and ex3 penditures by the Congress and the President;’’.

4 TITLE I—BUDGET WITH FORCE

5 OF LAW

6 SEC. 101. PURPOSES.

7 The purposes of this title are to—

8 (1) focus initial budgetary deliberations on ag9 gregate levels of Federal spending and taxation;

10 (2) encourage cooperation between Congress

11 and the President in developing overall budgetary

12 priorities; and

13 (3) reach budgetary decisions early in the legis14 lative cycle.

15 SEC. 102. THE TIMETABLE.

16 Section 300 of the Congressional Budget Act of 1974

17 is amended to read as follows:

18 ‘‘TIMETABLE

19 ‘‘SEC. 300. The timetable with respect to the congres20 sional budget process for any fiscal year is as follows:

‘‘On or before: Action to be completed:

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

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

report to Budget Committees.

Not later than 6 weeks after President submits budget.Committees submit views and estimates to Budget Committees.

April 1 ........................................... Senate Budget Committee reports

joint resolution on the budget.

April 15 ......................................... Congress completes action on joint

resolution on the budget.

June 10 ......................................... House Appropriations Committee reports last annual appropriation bill.
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‘‘On or before: Action to be completed:

June 15 ......................................... Congress completes action on reconciliation legislation.

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

October 1 ....................................... Fiscal year begins.’’.

1 SEC. 103. ANNUAL JOINT RESOLUTIONS ON THE BUDGET.

2 (a) ANNUAL JOINT RESOLUTIONS ON THE BUDG3 ET.—(1) Section 301 of the Congressional Budget Act of

4 1974 is amended to read as follows:

5 ‘‘ANNUAL JOINT RESOLUTIONS ON THE BUDGET

6 ‘‘SEC. 301. (a) CONTENT OF JOINT RESOLUTION ON

7 THE BUDGET.—On or before April 15 of each year, the

8 Congress shall complete action on a joint resolution on the

9 budget for the fiscal year beginning on October 1 of such

10 year. The joint resolution shall set forth appropriate levels

11 for the fiscal year beginning on October 1 of such year

12 and for at least each of the 4 ensuing fiscal years for the

13 following—

14 ‘‘(1) totals of new budget authority and outlays;

15 ‘‘(2) total Federal revenues and the amount, if

16 any, by which the aggregate level of Federal reve17 nues should be increased or decreased by bills and

18 resolutions to be reported by the appropriate com19 mittees;

20 ‘‘(3) the surplus or deficit in the budget;

21 ‘‘(4) subtotals of new budget authority and out22 lays for nondefense discretionary spending, defense
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1 discretionary spending, and direct spending, and, if

2 deemed necessary, other subsets of discretionary

3 spending and of direct spending;

4 ‘‘(5) the level of the statutory limit on the pub5 lic debt;

6 ‘‘(6) for fiscal years to which the amendments

7 made by title II of the Comprehensive Budget Proc8 ess Reform Act of 1999 apply, subtotals of new

9 budget authority and outlays for emergencies, in10 cluding subtotals for direct spending and discre11 tionary spending;

12 ‘‘(7) For purposes of Senate enforcement under

13 this title, outlays of the old-age, survivors, and dis14 ability insurance program established under title II

15 of the Social Security Act for the fiscal year of the

16 resolution and for each of the 4 succeeding fiscal

17 years; and

18 ‘‘(8) For purposes of Senate enforcement under

19 this title, revenues of the old-age, survivors, and dis20 ability insurance program established under title II

21 of the Social Security Act (and the related provisions

22 of the Internal Revenue Code of 1986) for the fiscal

23 year of the resolution and for each of the 4 suc24 ceeding fiscal years.
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1 ‘‘(b) ADDITIONAL MATTERS IN JOINT RESOLU2 TION.—The joint resolution on the budget may—

3 ‘‘(1) include a heading entitled ‘Debt Increase

4 as Measure of Deficit’ in which the joint resolution

5 shall set forth the amounts by which the debt sub6 ject to limit (in section 3101 of title 31, United

7 States Code) has increased or would increase in each

8 of the relevant fiscal years;

9 ‘‘(2) if submitted by the Committee on Ways

10 and Means of the House of Representatives or the

11 Committee on Finance of the Senate to the Com12 mittee on the Budget of that House of Congress,

13 amend section 3101 of title 31, United States Code,

14 to change the statutory limit on the public debt;

15 ‘‘(3) require a procedure under which all or cer16 tain bills or resolutions providing new budget au17 thority or new entitlement authority for such fiscal

18 year shall not be enrolled until the Congress has

19 completed action on any reconciliation bill or rec20 onciliation resolution or both required by such con21 current resolution to be reported in accordance with

22 section 310(b);

23 ‘‘(4) require such other congressional proce24 dures, relating to the budget, as may be appropriate

25 to carry out the purposes of this Act; and
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1 ‘‘(5) set forth procedures in the Senate whereby

2 committee allocations, aggregates, and other levels

3 can be revised for legislation if that legislation would

4 not increase the deficit, or would not increase the

5 deficit when taken with other legislation enacted

6 after the adoption of the resolution, for the first fis7 cal year or the total period of fiscal years covered by

8 the resolution.

9 ‘‘(c) CONSIDERATION OF PROCEDURES OR MATTERS

10 WHICH HAVE THE EFFECT OF CHANGING ANY RULE OF

11 THE HOUSE OF REPRESENTATIVES.—If the Committee

12 on the Budget of the House of Representatives reports

13 any joint resolution on the budget which includes any pro14 cedure or matter which has the effect of changing any rule

15 of the House of Representatives, such joint resolution shall

16 then be referred to the Committee on Rules with instruc17 tions to report it within five calendar days (not counting

18 any day on which the House is not in session). The Com19 mittee on Rules shall have jurisdiction to report any joint

20 resolution referred to it under this paragraph with an

21 amendment or amendments changing or striking any such

22 procedure or matter.

23 ‘‘(d) VIEWS AND ESTIMATES OF OTHER COMMIT24 TEES.—Within 6 weeks after the President submits a

25 budget under section 1105(a) of title 31, United States
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1 Code, or at such time as may be requested by the chair2 man of the Committee on the Budget, each committee of

3 the House of Representatives having legislative jurisdic4 tion shall submit to the Committee on the Budget of the

5 House and each committee of the Senate having legislative

6 jurisdiction shall submit to the Committee on the Budget

7 of the Senate its views and estimates (as determined by

8 the committee making such submission) with respect to

9 all matters set forth in subsections (a) and (b) which re10 late to matters within the jurisdiction or functions of such

11 committee. The Joint Economic Committee shall submit

12 to the Committees on the Budget of both Houses its rec13 ommendations as to the fiscal policy appropriate to the

14 goals of the Employment Act of 1946. Any other com15 mittee of the House of Representatives or the Senate may

16 submit to the Committee on the Budget of its House, and

17 any joint committee of the Congress may submit to the

18 Committees on the Budget of both Houses, its views and

19 estimates with respect to all matters set forth in sub20 sections (a) and (b) which relate to matters within its ju21 risdiction or functions. Any other committee of the House

22 of Representatives or the Senate that anticipates that the

23 committee will consider legislation establishing, amending,

24 or reauthorizing any Federal program likely to have a sig25 nificant budgetary impact on any State, local, or tribal
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1 government, or likely to have a significant financial impact

2 on the private sector, including any legislative proposal

3 submitted by the executive branch likely to have such a

4 budgetary or financial impact, shall include its views and

5 estimates on that proposal to the Committee on the Budg6 et of the applicable House.

7 ‘‘(e) HEARINGS AND REPORT.—

8 ‘‘(1) IN GENERAL.—In developing the joint res9 olution on the budget referred to in subsection (a)

10 for each fiscal year, the Committee on the Budget

11 of each House shall hold hearings and shall receive

12 testimony from Members of Congress and such ap13 propriate representatives of Federal departments

14 and agencies, the general public, and national orga15 nizations as the committee deems desirable. Each of

16 the recommendations as to short-term and medium17 term goal set forth in the report submitted by the

18 members of the Joint Economic Committee under

19 subsection (d) may be considered by the Committee

20 on the Budget of each House as part of its consider21 ation of such concurrent resolution, and its report

22 may reflect its views thereon, including its views on

23 how the estimates of revenues and levels of budget

24 authority and outlays set forth in such concurrent
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1 resolution are designed to achieve any goals it is rec2 ommending.

3 ‘‘(2) REQUIRED CONTENTS OF REPORT.—The

4 report accompanying the resolution shall include—

5 ‘‘(A) new budget authority and outlays for

6 each major functional category, based on alloca7 tions of the total levels set forth pursuant to

8 subsection (a)(1);

9 ‘‘(B) a comparison of the levels of total

10 new budget authority, total outlays, total reve11 nues, and the surplus or deficit for each fiscal

12 year set forth in the resolution with those re13 quested in the budget submitted by the Presi14 dent;

15 ‘‘(C) with respect to each major functional

16 category, an estimate of total new budget au17 thority and total outlays, with the estimates di18 vided between discretionary and direct spending

19 amounts;

20 ‘‘(D) a measure, as a percentage of gross

21 domestic product, of total outlays, total Federal

22 revenues, the surplus or deficit, and new out23 lays for nondefense discretionary spending, de24 fense spending, and direct spending as set forth

25 in such resolution;
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1 ‘‘(E) the economic assumptions that un2 derlie each of the matters set forth in the reso3 lution and any alternative economic assump4 tions and objectives the committee considered;

5 ‘‘(F) information, data, and comparisons

6 indicating the manner in which, and the basis

7 on which, the committee determined each of the

8 matters set forth in the resolution;

9 ‘‘(G) a justification for allocating any new

10 budget authority and outlays for any new pro11 gram, project, or activity to a committee for

12 which such new budget authority and outlays

13 would not be subject to discretionary appropria14 tions;

15 ‘‘(H) allocations described in section

16 302(a);

17 ‘‘(I) the estimated levels of tax expendi18 tures (the tax expenditures budget) by major

19 items and functional categories for the Presi20 dent’s budget and in the resolution; and

21 ‘‘(J) if the joint resolution on the budget

22 includes any allocation to a committee (other

23 than the Committee on Appropriations) of levels

24 in excess of current law levels, a justification

25 for not subjecting any program, project, or ac-
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1 tivity (for which the allocation is made) to an2 nual discretionary appropriation.’’.

3 ‘‘(3) ADDITIONAL CONTENTS OF REPORT.—The

4 report accompanying the resolution may include—

5 ‘‘(A) reconciliation directives described in

6 section 310;

7 ‘‘(B) a statement of any significant

8 changes in the proposed levels of Federal assist9 ance to State and local governments;

10 ‘‘(C) an allocation of the level of Federal

11 revenues recommended in the resolution among

12 the major sources of such revenues; and

13 ‘‘(D) other matters, relating to the budget

14 and to fiscal policy, that the committee deems

15 appropriate.

16 ‘‘(f) ACHIEVEMENT OF GOALS FOR REDUCING UN17 EMPLOYMENT.—

18 (1) If, pursuant to section 4(c) of the Employ19 ment Act of 1946, the President recommends in the

20 Economic Report that the goals for reducing unem21 ployment set forth in section 4(b) of such Act be

22 achieved in a year after the close of the five-year pe23 riod prescribed by such subsection, the concurrent

24 resolution on the budget for the fiscal year begin25 ning after the date on which such Economic Report
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1 is received by the Congress may set forth the year

2 in which, in the opinion of the Congress, such goals

3 can be achieved.

4 ‘‘(2) After the Congress has expressed its opin5 ion pursuant to paragraph (1) as to the year in

6 which the goals for reducing unemployment set forth

7 in section 4(b) of the Employment Act of 1946 can

8 be achieved, if, pursuant to section 4(e) of such Act,

9 the President recommends in the Economic Report

10 that such goals be achieved in a year which is dif11 ferent from the year in which the Congress has ex12 pressed its opinion that such goals should be

13 achieved, either in its action pursuant to paragraph

14 (1) or in its most recent action pursuant to this

15 paragraph, the concurrent resolution on the budget

16 for the fiscal year beginning after the date on which

17 such Economic Report is received by the Congress

18 may set forth the year in which, in the opinion of

19 the Congress, such goals can be achieved.

20 ‘‘(3) It shall be in order to amend the provision

21 of such resolution setting forth such year only if the

22 amendment thereto also proposes to alter the esti23 mates, amounts, and levels (as described in sub24 section (a)) set forth in such resolution in germane

25 fashion in order to be consistent with the economic
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1 goals (as described in sections 3(a)(2) and (4)(b) of

2 the Employment Act of 1946) which such amend3 ment proposes can be achieved by the year specified

4 in such amendment.

5 ‘‘(g) ECONOMIC ASSUMPTIONS.—

6 ‘‘(1) It shall not be in order in the Senate to

7 consider any joint resolution on the budget for a fis8 cal year, or any amendment thereto, or any con9 ference report thereon, that sets forth amounts and

10 levels that are determined on the basis of more than

11 one set of economic and technical assumptions.

12 ‘‘(2) The joint explanatory statement accom13 panying a conference report on a joint resolution on

14 the budget shall set forth the common economic as15 sumptions upon which such joint statement and con16 ference report are based, or upon which any amend17 ment contained in the joint explanatory statement to

18 be proposed by the conferees in the case of technical

19 disagreement, is based.

20 ‘‘(3) Subject to periodic reestimation based on

21 changed economic conditions or technical estimates,

22 determinations under titles III and IV of the Con23 gressional Budget Act of 1974 shall be based upon

24 such common economic and technical assumptions.
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1 ‘‘(h) BUDGET COMMITTEES CONSULTATION WITH

2 COMMITTEES.—The Committee on the Budget of the

3 House of Representatives shall consult with the commit4 tees of its House having legislative jurisdiction during the

5 preparation, consideration, and enforcement of the joint

6 resolution on the budget with respect to all matters which

7 relate to the jurisdiction or functions of such committees.

8 ‘‘(i) SOCIAL SECURITY POINT OF ORDER.—It shall

9 not be in order in the Senate to consider any concurrent

10 resolution on the budget (or amendment, motion, or con11 ference report on the resolution) that would decrease the

12 excess of social security revenues over social security out13 lays in any of the fiscal years covered by the concurrent

14 resolution. No change in chapter 1 of the Internal Revenue

15 Code of 1986 shall be treated as affecting the amount of

16 social security revenues unless such provision changes the

17 income tax treatment of social security benefits.’’.

18 (b) PRESIDENT’S BUDGET SUBMISSION TO THE CON19 GRESS.—(1) The first two sentences of section 1105(a)

20 of title 31, United States Code, are amended to read as

21 follows:

22 ‘‘On or after the first Monday in January but not later

23 than the first Monday in February of each year the Presi24 dent shall submit a budget of the United States Govern-
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1 ment for the following fiscal year which shall set forth the

2 following levels:

3 ‘‘(A) totals of new budget authority and out4 lays;

5 ‘‘(B) total Federal revenues and the amount, if

6 any, by which the aggregate level of Federal reve7 nues should be increased or decreased by bills and

8 resolutions to be reported by the appropriate com9 mittees;

10 ‘‘(C) the surplus or deficit in the budget;

11 ‘‘(D) subtotals of new budget authority and

12 outlays for nondefense discretionary spending, de13 fense discretionary spending, and direct spending,

14 and, if deemed necessary, other subsets of discre15 tionary spending and of direct spending;

16 ‘‘(E) the level of the statutory limit on the pub17 lic debt; and

18 ‘‘(F) for fiscal years to which the amendments

19 made by title II of the Comprehensive Budget Proc20 ess Reform Act of 1999 apply, subtotals of new

21 budget authority and outlays for emergencies, in22 cluding subtotals for direct spending and discre23 tionary spending.

24 Each budget submission shall include a budget message

25 and summary and supporting information and, as a sepa-
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1 rately delineated statement, the levels required in the pre2 ceding sentence for at least each of the 4 ensuing fiscal

3 years.’’.

4 (2) The third sentence of section 1105(a) of title 31,

5 United States Code, is amended by inserting ‘‘submission’’

6 after ‘‘budget’’.

7 (c) LIMITATION ON CONTENTS OF BUDGET RESOLU8 TIONS.—Section 305 of the Congressional Budget Act of

9 1974 is amended by adding at the end the following new

10 subsection:

11 ‘‘(e) LIMITATION ON CONTENTS.—(1) Any joint reso12 lution on the budget or any amendment thereto or con13 ference report thereon that contains any matter not speci14 fied in section 301(a) or (b) shall not be treated in the

15 House of Representatives or the Senate as a budget reso16 lution under subsection (a) or (b) or as a conference report

17 on a budget resolution under subsection (c) of this section.

18 ‘‘(2) It shall not be in order in the House of Rep19 resentatives or in the Senate to consider any joint resolu20 tion on the budget or any amendment thereto or con21 ference report thereon that contains any matter referred

22 to in paragraph (1).’’.
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1 SEC. 104. BUDGET REQUIRED BEFORE SPENDING BILLS

2 MAY BE CONSIDERED; FALL-BACK PROCE3 DURES IF PRESIDENT VETOES JOINT BUDG4 ET RESOLUTION.

5 (a) AMENDMENTS TO SECTION 303 AND CON6 FORMING AMENDMENTS.—(1) Section 303 of the Con7 gressional Budget Act of 1974 is amended—

8 (A) in subsection (b), by striking paragraph

9 (2), by inserting ‘‘or’’ at the end of paragraph (1),

10 and by redesignating paragraph (3) as paragraph

11 (2); and

12 (B) by striking its section heading and inserting

13 the following new section heading: ‘‘CONSIDERATION

14 OF BUDGET-RELATED LEGISLATION BEFORE BUDG15 ET BECOMES LAW’’.

16 (2) Section 302(g)(1) of the Congressional Budget

17 Act of 1974 is amended by striking ‘‘April 15’’ and insert18 ing the following: ‘‘the date upon which a joint resolution

19 on the budget for a fiscal year is enacted’’.

20 (3) Section 3 of the Congressional Budget and Im21 poundment Control Act of 1974 is amended by adding at

22 the end the following new paragraph:

23 ‘‘(11) The term ‘vetoes’ means, when referring

24 to a joint resolution on the budget for a fiscal year,

25 whenever the President returns such resolution with

26 his objections to the House in which it originated
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1 within ten days after receiving the resolution or does

2 not sign the resolution and cannot return it due to

3 a congressional adjournment that occurs before the

4 ten-day time limit.’’.

5 (4)(A) Section 904(c)(1) of the Congressional Budget

6 Act of 1974 is amended by inserting ‘‘303(a),’’ before

7 ‘‘305(b)(2),’’.

8 (B) Section 904(d)(2) of the Congressional Budget

9 Act of 1974 is amended by inserting ‘‘303(a),’’ before

10 ‘‘305(b)(2),’’.

11 (b) EXPEDITED PROCEDURES UPON VETO OF JOINT

12 RESOLUTION ON THE BUDGET.—(1) Title III of the Con13 gressional Budget Act of 1974 is amended by adding at

14 the end the following new section:

15 ‘‘EXPEDITED PROCEDURES UPON VETO OF JOINT

16 RESOLUTION ON THE BUDGET

17 ‘‘SEC. 316. (a) SPECIAL RULE.—If the President ve18 toes a joint resolution on the budget for a fiscal year, the

19 chairman of the Committee on Budget of the House of

20 Representatives or Senate may introduce a concurrent res21 olution on the budget or joint resolution on the budget

22 for such fiscal year. If the Committee on the Budget of

23 either House fails to report such concurrent or joint reso24 lution referred to it within three legislative days after the

25 date of such referral, the committee shall be automatically

26 discharged from further consideration of such resolution
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1 and such resolution shall be placed on the appropriate cal2 endar.

3 ‘‘(b) PROCEDURE IN THE HOUSE OF REPRESENTA4 TIVES AND THE SENATE.—

5 ‘‘(1) Except as provided in paragraph (2), the

6 provisions of section 305 for the consideration in the

7 House of Representatives and in the Senate of joint

8 resolutions on the budget and conference reports

9 thereon shall also apply to the consideration of con10 current resolutions on the budget introduced under

11 subsection (a) and conference reports thereon.

12 ‘‘(2) Debate in the Senate on any concurrent

13 resolution on the budget or joint resolution on the

14 budget introduced under subsection (a), and all

15 amendments thereto and debatable motions and ap16 peals in connection therewith, shall be limited to not

17 more than 10 hours and in the House such debate

18 shall be limited to not more than 3 hours.

19 ‘‘(c) CONTENTS OF CONCURRENT RESOLUTIONS.—

20 The contents of any concurrent resolution on the budget

21 introduced under subsection (a) shall be in compliance

22 with sections 301 and 305.

23 ‘‘(d) EFFECT OF CONCURRENT RESOLUTION ON THE

24 BUDGET.—Notwithstanding any other provision of this

25 title, whenever a concurrent resolution on the budget de-
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1 scribed in subsection (a) is agreed to, then the aggregates,

2 allocations, and reconciliation directives (if any) contained

3 in the accompanying report to such concurrent resolution

4 shall be considered to be the aggregates, allocations, and

5 reconciliation directives for all purposes of this title for

6 the applicable fiscal years and such concurrent resolution

7 shall be deemed to be a joint resolution for all purposes

8 of this title and the Rules of the House of Representatives

9 and any reference to the date of enactment of a joint reso10 lution on the budget shall be deemed to be a reference

11 to the date agreed to when applied to such concurrent res12 olution.’’.

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

14 the Congressional Budget and Impoundment Control Act

15 of 1974 is amended by inserting after the item relating

16 to section 315 the following new item:

‘‘Sec. 316. Expedited procedures upon veto of joint resolution on the budget.’’.

17 SEC. 105. REAFFIRMING SPECIAL BUDGETARY STATUS OF

18 SOCIAL SECURITY.

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

20 Budget Act of 1974 (as amended by section 104(b)) is

21 further amended by adding at the end the following new

22 section:

23 ‘‘SOCIAL SECURITY

24 ‘‘SEC. 317. (a) IN GENERAL.—The joint resolution

25 on the budget shall not include the outlays and revenue
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1 totals of the old age, survivors, and disability insurance

2 program established under title II of the Social Security

3 Act or the related provisions of the Internal Revenue Code

4 of 1986 in the surplus or deficit totals required by section

5 301(a), in any other surplus or deficit totals required by

6 this Act, or in any other surplus or deficit totals required

7 by chapter 11 of title 31, United States Code.

8 ‘‘(b) LIMITATION ON CHANGES TO THE SOCIAL SE9 CURITY ACT.—Notwithstanding any other provision of

10 law, it shall not be in order in the Senate or the House

11 of Representatives to consider any reconciliation bill or

12 reconciliation resolution reported pursuant to a joint reso13 lution on the budget agreed to under section 301 or 304,

14 or a joint resolution pursuant to section 258C of the Bal15 anced Budget and Emergency Deficit Control Act of 1985,

16 or any amendment thereto or conference report thereon,

17 that contains recommendations with respect to the old18 age, survivors, and disability insurance program estab19 lished under title II of the Social Security Act.

20 ‘‘(c) EXCLUSION OF SOCIAL SECURITY FROM ALL

21 BUDGETS.—Notwithstanding any other provision of law,

22 the receipts and disbursements of the Federal Old-Age

23 and Survivors Insurance Trust Fund and the Federal Dis24 ability Insurance Trust Fund shall not be counted as new
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1 budget authority, outlays, receipts, or deficit or surplus

2 for purposes of—

3 ‘‘(1) the budget of the United States Govern4 ment as submitted by the President,

5 ‘‘(2) the congressional budget, or

6 ‘‘(3) the Balanced Budget and Emergency Def7 icit Control Act of 1985.

8 ‘‘(d) PROTECTION OF OASDI TRUST FUNDS IN THE

9 HOUSE OF REPRESENTATIVES.—(1) It shall not be in

10 order in the House of Representatives to consider any bill

11 or joint resolution, as reported, or any amendment thereto

12 or conference report thereon, if, upon enactment—

13 ‘‘(A)(i) such legislation under consideration

14 would provide for a net increase in OASDI benefits

15 of at least 0.02 percent of the present value of fu16 ture taxable payroll for the 75-year period utilized in

17 the most recent annual report of the Board of

18 Trustees provided pursuant to section 201(c)(2) of

19 the Social Security Act, and (ii) such legislation

20 under consideration does not provide at least a net

21 increase, for such 75-year period, in OASDI taxes of

22 the amount by which the net increase in such bene23 fits exceeds 0.02 percent of the present value of fu24 ture taxable payroll for such 75-year period,
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1 ‘‘(B)(i) such legislation under consideration

2 would provide for a net increase in OASDI benefits

3 (for the 5-year estimating period for such legislation

4 under consideration), (ii) such net increase, together

5 with the net increases in OASDI benefits resulting

6 from previous legislation enacted during that fiscal

7 year or any of the previous 4 fiscal years (as esti8 mated at the time of enactment) which are attrib9 utable to those portions of the 5-year estimating pe10 riods for such previous legislation that fall within

11 the 5-year estimating period for such legislation

12 under consideration, exceeds $250,000,000, and (iii)

13 such legislation under consideration does not provide

14 at least a net increase, for the 5-year estimating pe15 riod for such legislation under consideration, in

16 OASDI taxes which, together with net increases in

17 OASDI taxes resulting from such previous legisla18 tion which are attributable to those portions of the

19 5-year estimating periods for such previous legisla20 tion that fall within the 5-year estimating period for

21 such legislation under consideration, equals the

22 amount by which the net increase derived under

23 clause (ii) exceeds $250,000,000;

24 ‘‘(C)(i) such legislation under consideration

25 would provide for a net decrease in OASDI taxes of
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1 at least 0.02 percent of the present value of future

2 taxable payroll for the 75-year period utilized in the

3 most recent annual report of the Board of Trustees

4 provided pursuant to section 201(c)(2) of the Social

5 Security Act, and (ii) such legislation under consid6 eration does not provide at least a net decrease, for

7 such 75-year period, in OASDI benefits of the

8 amount by which the net decrease in such taxes ex9 ceeds 0.02 percent of the present value of future

10 taxable payroll for such 75-year period, or

11 ‘‘(D)(i) such legislation under consideration

12 would provide for a net decrease in OASDI taxes

13 (for the 5-year estimating period for such legislation

14 under consideration), (ii) such net decrease, together

15 with the net decreases in OASDI taxes resulting

16 from previous legislation enacted during that fiscal

17 year or any of the previous 4 fiscal years (as esti18 mated at the time of enactment) which are attrib19 utable to those portions of the 5-year estimating pe20 riods for such previous legislation that fall within

21 the 5-year estimating period for such legislation

22 under consideration, exceeds $250,000,000, and (iii)

23 such legislation under consideration does not provide

24 at least a net decrease, for the 5-year estimating pe25 riod for such legislation under consideration, in
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1 OASDI benefits which, together with net decreases

2 in OASDI benefits resulting from such previous leg3 islation which are attributable to those portions of

4 the 5-year estimating periods for such previous legis5 lation that fall within the 5-year estimating period

6 for such legislation under consideration, equals the

7 amount by which the net decrease derived under

8 clause (ii) exceeds $250,000,000.

9 ‘‘(2) APPLICATION.—In applying subparagraph (C)

10 or (D) of paragraph (1), any provision of any bill or joint

11 resolution, as reported, or any amendment thereto, or con12 ference report thereon, the effect of which is to provide

13 for a net decrease for any period in taxes described in

14 paragraph (3)(B)(i) shall be disregarded if such bill, joint

15 resolution, amendment, or conference report also includes

16 a provision the effect of which is to provide for a net in17 crease of at least an equivalent amount for such period

18 in medicare taxes.

19 ‘‘(3) DEFINITIONS.—For purposes of this subsection:

20 ‘‘(A) The term ‘OASDI benefits’ means the

21 benefits under the old-age, survivors, and disability

22 insurance programs under title II of the Social Secu23 rity Act.

24 ‘‘(B) The term ‘OASDI taxes’ means—
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1 ‘‘(i) the taxes imposed under sections

2 1401(a), 3101(a), and 3111(a) of the Internal

3 Revenue Code of 1986, and

4 ‘‘(ii) the taxes imposed under chapter 1 of

5 such Code (to the extent attributable to section

6 86 of such Code).

7 ‘‘(C) The term ‘medicare taxes’ means the taxes

8 imposed under sections 1401(b), 3101(b), and

9 3111(b) of the Internal Revenue Code of 1986.

10 ‘‘(D) The term ‘previous legislation’ shall not

11 include legislation enacted before fiscal year 1991.

12 ‘‘(E) The term ‘5-year estimating period’

13 means, with respect to any legislation, the fiscal year

14 in which such legislation becomes or would become

15 effective and the next 4 fiscal years.

16 ‘‘(F) No provision of any bill or resolution, or

17 any amendment thereto or conference report there18 on, involving a change in chapter 1 of the Internal

19 Revenue Code of 1986 shall be treated as affecting

20 the amount of OASDI taxes referred to in subpara21 graph (B)(ii) unless such provision changes the in22 come tax treatment of OASDI benefits.

23 ‘‘(e) PRESENTATION OF BUDGETARY AGGRE24 GATES.—For purposes of chapter 11 of title 31, United

25 States Code, or this Act, tables and other displays of
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1 budgetary aggregates for the United States Government

2 of the Director of the Office of Management and Budget

3 or the Director of the Congressional Budget Office shall

4 not include social security revenues or outlays.’’.

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

6 table of contents set forth in section 1(b) of the Congres7 sional Budget and Impoundment Control Act of 1974 is

8 amended by inserting after the item relating to section

9 316 the following new item:

‘‘Sec. 317. Social security.’’.

10 SEC. 106. CONFORMING AMENDMENTS TO EFFECTUATE

11 JOINT RESOLUTIONS ON THE BUDGET.

12 (a) CONFORMING AMENDMENTS TO THE CONGRES13 SIONAL BUDGET AND IMPOUNDMENT CONTROL ACT OF

14 1974.—(1)(A) Sections 300, 302, 303, 304, 305, 308,

15 310, 311, 312, 314, 405, and 904 of the Congressional

16 Budget Act of 1974 (2 U.S.C. 621 et seq.) are amended

17 by striking ‘‘concurrent’’ each place it appears and by in18 serting ‘‘joint’’.

19 (B)(i) Sections 302(d), 302(g), 308(a)(1)(A), and

20 310(d)(1) of the Congressional Budget Act of 1974 are

21 amended by striking ‘‘most recently agreed to concurrent

22 resolution on the budget’’ each place it occurs and insert23 ing ‘‘most recently enacted joint resolution on the budget

24 or agreed to concurrent resolution on the budget (as appli25 cable)’’.
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1 (ii) Section 304 of such Act is amended by striking

2 ‘‘concurrent resolution on the budget for such fiscal year

3 most recently agreed to’’ and inserting ‘‘most recently en4 acted joint resolution on the budget or agreed to concur5 rent resolution on the budget (as applicable) for such

6 year’’.

7 (C) Sections 302, 303, 304, 308, 310, 311, and 401

8 of such Act are amended by striking ‘‘agreed to’’ each

9 place it appears and by inserting ‘‘enacted’’.

10 (2)(A) Paragraph (4) of section 3 of the Congres11 sional Budget and Impoundment Control Act of 1974 is

12 amended by striking ‘‘concurrent’’ each place it appears

13 and by inserting ‘‘joint’’.

14 (B) The table of contents set forth in section 1(b)

15 of such Act is amended—

16 (i) in the item relating to section 301 by strik17 ing ‘‘Adoption of Concurrent Resolution’’ and insert18 ing ‘‘Joint Resolutions’’;

19 (ii) by striking the item relating to section 303

20 and inserting the following:

‘‘Sec. 303. Consideration of budget-related legislation before budget becomes

law.’’; and

21 (iii) by striking ‘‘concurrent’’ and inserting

22 ‘‘joint’’ in the items relating to sections 304 and

23 305.
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1 (b) CONFORMING AMENDMENTS TO THE RULES OF

2 THE HOUSE OF REPRESENTATIVES.—(1) Clauses 1(e)(1),

3 4(a)(4), 4(b)(2), 4(f)(1)(A), and 4(f)(2) of rule X, clause

4 10 of rule XVIII, and clause 10 of rule XX of the Rules

5 of the House of Representatives are amended by striking

6 ‘‘concurrent’’ each place it appears and by inserting

7 ‘‘joint’’.

8 (2) Clause 10 of rule XVIII of the Rules of the House

9 of Representatives is amended—

10 (A) in paragraph (b)(2), by striking ‘‘(5)’’ and

11 inserting ‘‘(6)’’; and

12 (B) by striking paragraph (c).

13 (c) CONFORMING AMENDMENTS TO THE BALANCED

14 BUDGET AND EMERGENCY DEFICIT CONTROL ACT OF

15 1985.—Section 258C(b)(1) of the Balanced Budget and

16 Emergency Deficit Control Act of 1985 (2 U.S.C.

17 907d(b)(1)) is amended by striking ‘‘concurrent’’ and by

18 inserting ‘‘joint’’.

19 (d) CONFORMING AMENDMENTS TO SECTION 310

20 REGARDING RECONCILIATION DIRECTIVES.—(1) The side

21 heading of section 310(a) of the Congressional Budget Act

22 of 1974 (as amended by section 106(a)) is further amend23 ed by inserting ‘‘JOINT EXPLANATORY STATEMENT AC24 COMPANYING CONFERENCE REPORT ON’’ before ‘‘JOINT’’.
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1 (2) Section 310(a) of such Act is amended by striking

2 ‘‘A’’ and inserting ‘‘The joint explanatory statement ac3 companying the conference report on a’’.

4 (3) The first sentence of section 310(b) of such Act

5 is amended by striking ‘‘If’’ and inserting ‘‘If the joint

6 explanatory statement accompanying the conference re7 port on’’.

8 (4) Section 310(c)(1) of such Act is amended by in9 serting ‘‘the joint explanatory statement accompanying

10 the conference report on’’ after ‘‘pursuant to’’.

11 (5) Subsection (g) of section 310 of such Act is re12 pealed.

13 (e) CONFORMING AMENDMENTS TO SECTION 3 RE14 GARDING DIRECT SPENDING.—Section 3 of the Congres15 sional Budget and Impoundment Control Act of 1974 (as

16 amended by section 104(a)(3)) is further amended by add17 ing at the end the following new paragraph:

18 ‘‘(12) The term ‘direct spending’ has the mean19 ing given to such term in section 250(c)(8) of the

20 Balanced Budget and Emergency Deficit Control

21 Act of 1985.’’.

22 (f) TECHNICAL AMENDMENT REGARDING REVISED

23 SUBALLOCATIONS.—Section 314(d) of the Congressional

24 Budget Act of 1974 is amended by—
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1 (1) striking ‘‘REPORTING’’ in the side heading,

2 by inserting ‘‘the chairmen of’’ before ‘‘the Commit3 tees’’, and by striking ‘‘may report’’ and inserting

4 ‘‘shall make and have published in the Congressional

5 Record’’; and

6 (2) adding at the end the following new sen7 tence: ‘‘For purposes of considering amendments

8 (other than for amounts for emergencies covered by

9 subsection (b)(1)), suballocations shall be deemed to

10 be so adjusted.’’.

11 TITLE II—RESERVE FUNDS FOR

12 EMERGENCIES

13 SEC. 201. PURPOSE.

14 The purposes of this title are to—

15 (1) develop budgetary and fiscal procedures for

16 emergencies;

17 (2) subject spending for emergencies to budg18 etary procedures and controls; and

19 (3) establish criteria for determining compliance

20 with emergency requirements.

21 SEC. 202. REPEAL OF ADJUSTMENTS FOR EMERGENCIES.

22 (a) DISCRETIONARY SPENDING LIMITS.—Section

23 251(b)(2)(A) of the Balanced Budget and Emergency

24 Deficit Control Act of 1985 is repealed.
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1 (b) DIRECT SPENDING.—Sections 252(e) and

2 252(d)(4)(B) of the Balanced Budget and Emergency

3 Deficit Control Act of 1985 are repealed.

4 (c) EMERGENCY DESIGNATION.—Clause 2 of rule

5 XXI of the Rules of the House of Representatives is

6 amended by repealing paragraph (e) and by redesignating

7 paragraph (f) as paragraph (e).

8 SEC. 203. OMB EMERGENCY CRITERIA.

9 Section 3 of the Congressional Budget and Impound10 ment Control Act of 1974 (as amended by sections

11 104(a)(3) and 106(e)) is further amended by adding at

12 the end the following new paragraph:

13 ‘‘(13)(A) The term ‘emergency’ means a situa14 tion that—

15 ‘‘(i) requires new budget authority and

16 outlays (or new budget authority and the out17 lays flowing therefrom) for the prevention or

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

19 property, or a threat to national security; and

20 ‘‘(ii) is unanticipated.

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

22 ‘unanticipated’ means that the underlying situation

23 is—

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

25 into being or not building up over time;
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1 ‘‘(ii) urgent, which means a pressing and

2 compelling need requiring immediate action;

3 ‘‘(iii) unforeseen, which means not pre4 dicted or anticipated as an emerging need; and

5 ‘‘(iv) temporary, which means not of a per6 manent duration.’’.

7 SEC. 204. DEVELOPMENT OF GUIDELINES FOR APPLICA8 TION OF EMERGENCY DEFINITION.

9 Not later than 5 months after the date of enactment

10 of this Act, the chairmen of the Committees on the Budget

11 (in consultation with the President) shall, after consulting

12 with the chairmen of the Committees on Appropriations

13 and applicable authorizing committees of their respective

14 Houses and the Directors of the Congressional Budget Of15 fice and the Office of Management and Budget, jointly

16 publish in the Congressional Record guidelines for applica17 tion of the definition of emergency set forth in section

18 3(13) of the Congressional Budget and Impoundment

19 Control Act of 1974.

20 SEC. 205. RESERVE FUNDS FOR EMERGENCIES IN PRESI21 DENT’S BUDGET.

22 Section 1105(f) of title 31, United States Code is

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

24 ‘‘Such budget shall also comply with the requirements of

25 section 314(f) of the Congressional Budget Act of 1974.’’.
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1 SEC. 206. ADJUSTMENTS AND RESERVE FUNDS FOR EMER2 GENCIES IN JOINT BUDGET RESOLUTIONS.

3 (a) ADJUSTMENTS FOR EMERGENCIES.—(1) Section

4 314(a) of the Congressional Budget Act of 1974 is amend5 ed to read as follows:

6 ‘‘(a) ADJUSTMENTS.—

7 ‘‘(1) IN GENERAL.—After the reporting of a bill

8 or joint resolution, the offering of an amendment

9 thereto, or the submission of a conference report

10 thereon, the chairman of the Committee on the

11 Budget of the House of Representatives or the Sen12 ate shall make the adjustments set forth in para13 graph (2) for the amount of new budget authority

14 (or outlays) in that measure (if that measure meets

15 the requirements set forth in subsection (b)) and the

16 outlays flowing from that budget authority.

17 ‘‘(2) MATTERS TO BE ADJUSTED.—The adjust18 ments referred to in paragraph (1) are to be made

19 to—

20 ‘‘(A) the discretionary spending limits in

21 the Senate, if any, set forth in the appropriate

22 joint resolution on the budget;

23 ‘‘(B) the allocations made pursuant to the

24 appropriate joint resolution on the budget pur25 suant to section 302(a); and
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1 ‘‘(C) the budgetary aggregates as set forth

2 in the appropriate joint resolution on the budg3 et;

4 but in the case of subsection (b)(1), the adjustments

5 shall only be made to the allocations.’’.

6 (2) Section 314(b)(1) of the Congressional Budget

7 Act of 1974 is amended to read as follows:

8 ‘‘(1) an amount not to exceed the amount re9 served for emergencies pursuant to the requirements

10 of subsection (f);’’.

11 (b) ESTABLISHMENT OF RESERVE FUNDS.—Section

12 314 of the Congressional Budget Act of 1974 is amended

13 by adding at the end the following new subsections:

14 ‘‘(f) RESERVE FUNDS FOR EMERGENCIES.—

15 ‘‘(1) RESERVE FUND FOR DISCRETIONARY

16 BUDGET AUTHORITY AND OUTLAYS.—

17 ‘‘(A) AMOUNTS.—The amount set forth in

18 the reserve fund for emergencies for discre19 tionary budget authority and outlays for a fiscal

20 year pursuant to section 301(a)(6) shall

21 equal—

22 ‘‘(i) the average of the enacted levels

23 of discretionary budget authority for emer24 gencies in the 5 fiscal years preceding the

25 current year; and
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1 ‘‘(ii) the average of the levels of out2 lays in such 5 preceding fiscal years for

3 emergencies flowing from enacted levels of

4 discretionary budget authority.

5 ‘‘(B) AVERAGE DISCRETIONARY LEVELS.—

6 For purposes of subparagraph (A), the amount

7 used for a fiscal year to calculate the average

8 of the enacted levels when one or more of such

9 5 preceding fiscal years is any of fiscal years

10 1994 through 1998 is as follows: the amount of

11 enacted levels of discretionary budget authority

12 and the amount of outlays flowing therefrom

13 for emergencies, which shall be determined by

14 the Committees on the Budget of the House of

15 Representatives and the Senate after receipt of

16 a report on such matter transmitted to such

17 committees by the Director of the Congressional

18 Budget Office 6 months after the date of enact19 ment of this subsection and thereafter in Feb20 ruary of each calendar year.

21 ‘‘(2) RESERVE FUND FOR DIRECT SPENDING

22 BUDGET AUTHORITY AND OUTLAYS.—

23 ‘‘(A) AMOUNTS.—The amount set forth in

24 the reserve fund for emergencies for direct
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1 spending for a fiscal year pursuant to section

2 301(a)(6) shall equal—

3 ‘‘(i) the average annual enacted levels

4 of direct spending budget authority for

5 emergencies in the 5 fiscal years preceding

6 the current year; and

7 ‘‘(ii) the average annual level of out8 lays in such 5 preceding fiscal years for

9 emergencies flowing from enacted levels of

10 direct spending.

11 ‘‘(B) AVERAGE DIRECT SPENDING LEV12 ELS.—For purposes of subparagraph (A), the

13 amount used for a fiscal year to calculate the

14 average of the enacted levels when one or more

15 of such 5 preceding fiscal years is any of fiscal

16 years 1994 through 1998 is as follows: the

17 amount of enacted levels of direct spending

18 budget authority and the amount of outlays

19 flowing therefrom for emergencies, which shall

20 be determined by the Committees on the Budg21 et of the House of Representatives and the Sen22 ate after receipt of a report on such matter

23 transmitted to such committees by the Director

24 of the Congressional Budget Office 6 months

25 after the date of enactment of this subsection
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1 and thereafter in February of each calendar

2 year.

3 ‘‘(3) INCREASED ALLOCATIONS.—In the case of

4 legislation that provides budget authority for any

5 emergency pursuant to subsection (h), the chairman

6 of the Committee on the Budget shall make an ad7 justment under subsection (a)(1) only to the applica8 ble allocation if the chairman determines and cer9 tifies that such outlays or budget authority and the

10 resulting outlays are for an emergency within the

11 meaning of section 3(13).

12 ‘‘(g) EMERGENCIES IN EXCESS OF AMOUNTS IN RE13 SERVE FUNDS.—Whenever the Committee on Appropria14 tions or any other committee reports any bill or joint reso15 lution that provides budget authority for any emergency

16 and the report accompanying that bill or joint resolution,

17 pursuant to subsection (h), identifies any provision that

18 increases outlays or provides budget authority (and the

19 outlays flowing therefrom) for such emergency, the enact20 ment of which would cause the total amount provided for

21 emergencies in the joint resolution on the budget (pursu22 ant to section 301(a)(6)) to be exceeded and that emer23 gency is certified as an emergency pursuant to section

24 (f)(3):
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1 ‘‘(1) Such bill or joint resolution shall be re2 ferred to the Committee on the Budget of the House

3 or the Senate, as the case may be, with instructions

4 to report it without amendment, other than that

5 specified in paragraph (2), within 3 legislative days

6 of the day in which it is reported from the origi7 nating committee. If the Committee on the Budget

8 of either House fails to report a bill or joint resolu9 tion referred to it under this paragraph within such

10 3-day period, the committee shall be automatically

11 discharged from further consideration of such bill or

12 joint resolution and such bill or joint resolution shall

13 be placed on the appropriate calendar.

14 ‘‘(2) An amendment to such a bill or joint reso15 lution referred to in this subsection shall only consist

16 of an exemption from section 251 or 252 (as appli17 cable) of the Balanced Budget and Emergency Def18 icit Control Act of 1985 of all or any part of the

19 provisions that provide budget authority (and the

20 outlays flowing therefrom) for such emergency if the

21 committee determines that such emergency meets

22 the criteria set forth in subsection (f).

23 ‘‘(3) If such a bill or joint resolution is reported

24 with an amendment specified in paragraph (2) by

25 the Committee on the Budget of the House of Rep-
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1 resentatives or the Senate, then the budget authority

2 and resulting outlays that are the subject of such

3 amendment shall not be included in any determina4 tions under section 302(f) or 311(a) for any bill,

5 joint resolution, amendment, motion, or conference

6 report.’’.

7 (c) CONFORMING AMENDMENTS.—(1) The section

8 heading of section 314 of the Congressional Budget Act

9 of 1974 is amended to read as follows:

10 ‘‘ADJUSTMENTS; RESERVE FUNDS FOR EMERGENCIES’’.

11 (2) The item relating to section 314 in the table of

12 contents set forth in section 1(b) of the Congressional

13 Budget and Impoundment Control Act of 1974 is amend14 ed to read as follows:

‘‘Sec. 314. Adjustments; reserve funds for emergencies.’’.

15 SEC. 207. COMMITTEE NOTIFICATION OF EMERGENCY LEG16 ISLATION.

17 Section 314 of the Congressional Budget Act of 1974

18 (as amended by section 206) is further amended by adding

19 at the end the following new subsection:

20 ‘‘(h) COMMITTEE NOTIFICATION OF EMERGENCY

21 LEGISLATION.—Whenever the Committee on Appropria22 tions or any other committee of either House (including

23 a committee of conference) reports any bill or joint resolu24 tion that provides budget authority for any emergency, the

25 report accompanying that bill or joint resolution (or the
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1 joint explanatory statement of managers in the case of a

2 conference report on any such bill or joint resolution) shall

3 identify all provisions that provide budget authority and

4 the outlays flowing therefrom for such emergency.’’.

5 SEC. 208. APPLICATION OF SECTION 306 TO EMERGENCIES

6 IN EXCESS OF AMOUNTS IN RESERVE FUNDS.

7 Section 306 of the Congressional Budget Act of 1974

8 is amended by inserting at the end the following new sen9 tence: ‘‘No amendment reported by the Committee on the

10 Budget (or from the consideration of which such com11 mittee has been discharged) pursuant to section 314(g)

12 may be amended.’’.

13 SEC. 209. UP-TO-DATE TABULATIONS.

14 Section 308(b)(2) of the Congressional Budget Act

15 of 1974 is amended by striking ‘‘and’’ at the end of sub16 paragraph (B), by striking the period at the end of sub17 paragraph (C) and inserting ‘‘; and’’, and by adding at

18 the end the following new subparagraph:

19 ‘‘(D) shall include an up-to-date tabulation

20 of amounts remaining in the reserve funds for

21 emergencies.’’.

22 SEC. 210. REPORT OF COMMITTEES ON THE BUDGET.

23 Section 301(e)(2) of the Congressional Budget Act

24 of 1974 (as amended by section 103(b)) is further amend25 ed by striking ‘‘and’’ after subparagraph (F), by striking
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1 the period at the end of subparagraph (G) and inserting

2 ‘‘; and’’, and by adding at the end the following new sub3 paragraph:

4 ‘‘(H) the average annual enacted levels

5 of—

6 ‘‘(i) discretionary budget authority

7 and the resulting outlays for emergencies;

8 and

9 ‘‘(ii) direct spending budget authority

10 and the resulting outlays for emergencies;

11 for the 5 fiscal years preceding the fiscal year

12 of such resolution.’’.

13 SEC. 211. PROHIBITION ON AMENDMENTS TO EMERGENCY

14 RESERVE FUNDS.

15 (a) POINT OF ORDER.—Section 305 of the Congres16 sional Budget Act of 1974 (as amended by section 103(c))

17 is further amended by adding at the end the following new

18 subsection:

19 ‘‘(f) It shall not be in order in the House of Rep20 resentatives or in the Senate to consider an amendment

21 to a joint resolution on the budget which changes the

22 amount of budget authority and outlays set forth in sec23 tion 301(a)(6) for emergency reserve funds.’’.

24 (b) TECHNICAL AMENDMENT.—(1) Section 904(c)(1)

25 of the Congressional Budget Act of 1974 is amended by
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1 inserting ‘‘section 305(e), section 305(f),’’ after ‘‘section

2 305(c)(4),’’.

3 (2) Section 904(d)(2) of the Congressional Budget

4 Act of 1974 is amended by inserting ‘‘section 305(e), sec5 tion 305(f),’’ after ‘‘section 305(c)(4),’’.

6 SEC. 212. EFFECTIVE DATE.

7 The amendments made by this title shall take effect

8 only after the enactment of legislation changing or extend9 ing for any fiscal year any of the discretionary spending

10 limits set forth in section 251 of the Balanced Budget and

11 Emergency Deficit Control Act of 1985 and such amend12 ments shall apply to fiscal years determined as follows:

13 (1) Fiscal years beginning after the fiscal year

14 in which such effective date occurs if such effective

15 date occurs on or before April 15 of such fiscal year.

16 (2) Fiscal years beginning after the first fiscal

17 year after the fiscal year in which such effective date

18 occurs if such effective date occurs after April 15 of

19 the fiscal year in which such effective date occurs.

20 TITLE III—ENFORCEMENT OF

21 BUDGETARY DECISIONS

22 SEC. 301. PURPOSES.

23 The purposes of this title are to—

24 (1) close loopholes in the enforcement of budget

25 resolutions;
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1 (2) require committees of the House of Rep2 resentatives to include budget compliance statements

3 in reports accompanying all legislation;

4 (3) require committees of the House of Rep5 resentatives to justify the need for waivers of the

6 Congressional Budget Act of 1974; and

7 (4) provide cost estimates of conference reports.

8 Subtitle A—Application of Points of

9 Order to Unreported Legislation

10 SEC. 311. APPLICATION OF BUDGET ACT POINTS OF ORDER

11 TO UNREPORTED LEGISLATION.

12 (a) Section 315 of the Congressional Budget Act of

13 1974 is amended by striking ‘‘reported’’ the first place it

14 appears.

15 (b) Section 303(b) of the Congressional Budget Act

16 of 1974 (as amended by section 104(a)(1)) is further

17 amended—

18 (1) in paragraph (1), by striking ‘‘(A)’’ and by

19 redesignating subparagraph (B) as paragraph (2)

20 and by striking the semicolon at the end of such new

21 paragraph (2) and inserting a period; and

22 (2) by striking paragraph (2) (as redesignated

23 by such section 104(a)(1)).
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1 Subtitle B—Compliance with

2 Budget Resolution

3 SEC. 321. BUDGET COMPLIANCE STATEMENTS.

4 Clause 3(d) of rule XIII of the Rules of the House

5 of Representatives is amended by adding at the end the

6 following new subparagraph:

7 ‘‘(4) A budget compliance statement prepared

8 by the chairman of the Committee on the Budget,

9 if timely submitted prior to the filing of the report,

10 which shall be comprised of an assessment by such

11 chairman as to whether the bill or joint resolution

12 complies with the requirements of sections 302, 303,

13 311, and 401 of the Congressional Budget Act of

14 1974 and may include the budgetary implications of

15 that bill or joint resolution under section 251 or 252

16 of the Balanced Budget and Emergency Deficit Con17 trol Act of 1985, as applicable.’’.

18 Subtitle C—Justification for

19 Budget Act Waivers

20 SEC. 331. JUSTIFICATION FOR BUDGET ACT WAIVERS IN

21 THE HOUSE OF REPRESENTATIVES.

22 Clause 6 of rule XIII of the Rules of the House of

23 Representatives is amended by adding at the end the fol24 lowing new paragraph:
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1 ‘‘(h) It shall not be in order to consider any resolution

2 from the Committee on Rules for the consideration of any

3 reported bill or joint resolution which waives section 302,

4 303, 311, or 401 of the Congressional Budget Act of

5 1974, unless the report accompanying such resolution in6 cludes a description of the provision proposed to be

7 waived, an identification of the section being waived, the

8 reasons why such waiver should be granted, and an esti9 mated cost of the provisions to which the waiver applies.’’.

10 Subtitle D—CBO Scoring of

11 Conference Reports

12 SEC. 341. CBO SCORING OF CONFERENCE REPORTS.

13 (a) The first sentence of section 402 of the Congres14 sional Budget Act of 1974 is amended as follows:

15 (1) Insert ‘‘or conference report thereon,’’ be16 fore ‘‘and submit’’.

17 (2) In paragraph (1), strike ‘‘bill or resolution’’

18 and insert ‘‘bill, resolution, or conference report’’.

19 (3) At the end of paragraph (2) strike ‘‘and’’,

20 at the end of paragraph (3) strike the period and in21 sert ‘‘; and’’, and after such paragraph (3) add the

22 following new paragraph:

23 ‘‘(4) A determination of whether such bill, joint

24 resolution, or conference report provides indefinite

25 spending authority.’’.
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1 (b) The second sentence of section 402 of the Con2 gressional Budget Act of 1974 is amended by inserting

3 before the period the following: ‘‘, or in the case of a con4 ference report, shall be included in the joint explanatory

5 statement of managers accompanying such conference re6 port if timely submitted before such report is filed’’.

7 TITLE IV—ACCOUNTABILITY

8 FOR FEDERAL SPENDING

9 SEC. 401. PURPOSES.

10 The purposes of this title are to—

11 (1) require committees to develop a schedule for

12 reauthorizing all programs within their jurisdictions;

13 (2) facilitate amendments to subject new enti14 tlement programs to annual discretionary appropria15 tions;

16 (3) require the Committee on the Budget to

17 justify any allocation to an authorizing committee

18 for legislation that would not be subject to annual

19 discretionary appropriation;

20 (4) provide estimates of the long-term impact of

21 spending and tax legislation;

22 (5) provide a point of order for legislation cre23 ating a new entitlement program that does not ex24 pire within 10 years; and
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1 (6) require a vote in the House of Representa2 tives on any measure that increases the statutory

3 limit on the public debt.

4 Subtitle A—Prohibitions on

5 Indefinite Spending

6 SEC. 411. FIXED-YEAR AUTHORIZATIONS REQUIRED FOR

7 NEW PROGRAMS.

8 (a) IN GENERAL.—Section 401 of the Congressional

9 Budget Act of 1974 is amended—

10 (1) by striking subsections (a) and (b) and in11 serting the following new subsection:

12 ‘‘(a) PROHIBITION ON INDEFINITE AUTHORIZA13 TIONS.—It shall not be in order in the House of Rep14 resentatives or in the Senate to consider a bill or joint

15 resolution, or an amendment, motion, or conference report

16 that provides direct spending for a new program, unless

17 such spending is limited to a period of 10 or fewer fiscal

18 years.’’;

19 (2) by redesignating subsection (c) as sub20 section (b) and by striking ‘‘Subsections (a) and (b)

21 each place it appears and inserting ‘‘Subsection (a)’’

22 in such redesignated subsection (b); and

23 (3) by amending the section heading to read as

24 follows:
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1 ‘‘FIXED-YEAR AUTHORIZATIONS REQUIRED FOR DIRECT

2 SPENDING’’.

3 (b) CONFORMING AMENDMENT.—The item relating

4 to section 401 in the table of contents set forth in section

5 1(b) of the Congressional Budget and Impoundment Con6 trol Act of 1974 is amended to read as follows:

‘‘Sec. 401. Fixed-year authorizations required for direct spending.’’.

7 (c) PROHIBITION ON INDEFINITE AUTHORIZATION

8 OF DISCRETIONARY APPROPRIATIONS.—Rule XXI of the

9 Rules of the House of Representatives is amended by add10 ing at the end the following new clause:

11 ‘‘6. It shall not be in order to consider any bill, joint

12 resolution, amendment, or conference report that author13 izes the appropriation of new budget authority, as defined

14 in section 3(2)(C) of the Congressional Budget and Im15 poundment Control Act of 1974, unless such authorization

16 is specifically provided for a period of 10 or fewer fiscal

17 years.’’.

18 SEC. 412. AMENDMENTS TO SUBJECT NEW ENTITLEMENTS

19 TO ANNUAL APPROPRIATIONS.

20 (a) HOUSE PROCEDURES.—Clause 5 of rule XVIII

21 of the Rules of the House of Representatives is amended

22 by adding at the end the following new paragraph:

23 ‘‘(c)(1) In the Committee of the Whole, an amend24 ment to subject a new program providing direct spending

25 to discretionary appropriations, if offered by the chairman
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1 of the Committee on the Budget (or his designee) or the

2 chairman of the Committee of Appropriations (or his des3 ignee), may be precluded from consideration only by the

4 specific terms of a special order of the House. Any such

5 amendment, if offered, shall be debatable for twenty min6 utes equally divided and controlled by the proponent of

7 the amendment and a Member opposed and shall not be

8 subject to amendment.

9 ‘‘(2) As used in subparagraph (1), the term ‘direct

10 spending’ has the meaning given such term in section

11 3(12) of the Congressional Budget and Impoundment

12 Control Act of 1974.’’.

13 (b) ADJUSTMENT OF DISCRETIONARY SPENDING

14 LIMITS FOR DISCRETIONARY APPROPRIATIONS OFFSET

15 BY MANDATORY SAVINGS.—

16 (1) PURPOSE.—The purpose of the amend17 ments made by this subsection is to hold the discre18 tionary spending limits and the allocations made to

19 the Committee on Appropriations under section

20 302(a) of the Congressional Budget Act of 1974

21 harmless for legislation that offsets a new discre22 tionary program with a designated reduction in di23 rect spending.

24 (2) DESIGNATING ENTITLEMENT SAVINGS IN

25 AUTHORIZATION LEGISLATION FOR NEW DISCRE-
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1 TIONARY PROGRAMS.—Section 252 of the Balanced

2 Budget and Emergency Deficit Control Act of 1985

3 (as amended by section 202) is further amended by

4 adding at the end the following new subsection:

5 ‘‘(e) OFFSETS.—If a provision of direct spending leg6 islation is enacted that—

7 ‘‘(1) decreases direct spending for any fiscal

8 year; and

9 ‘‘(2) is designated as an offset pursuant to this

10 subsection and such designation specifically identi11 fies an authorization of discretionary appropriations

12 (contained in such legislation) for a new program,

13 then the reductions in new budget authority and outlays

14 in all fiscal years resulting from that provision shall be

15 designated as an offset in the reports required under sub16 section (d).’’.

17 (3) EXEMPTING SUCH DESIGNATED ENTITLE18 MENT SAVINGS FROM PAYGO SCORECARD.—Section

19 252(d)(4) of the Balanced Budget and Emergency

20 Deficit Control Act of 1985 (as amended by section

21 202(b)) is further amended by adding at the end the

22 following new subparagraph:

23 ‘‘(B) offset provisions as designated under

24 subsection (e).’’.
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1 (4) ADJUSTMENT IN DISCRETIONARY SPENDING

2 LIMITS.—Section 251(b)(2) of the Balanced Budget

3 and Emergency Deficit Control Act of 1985 is

4 amended by adding at the end the following new

5 subparagraph:

6 ‘‘(H) DISCRETIONARY AUTHORIZATION

7 OFFSETS.—If an authorization Act includes one

8 or more provisions reducing direct spending and

9 specifically identifies those provisions as offsets

10 pursuant to section 252(e), the adjustments

11 shall be an increase in the budget authority and

12 outlay caps in each fiscal year equal to the

13 amount of the budget authority and outlay re14 ductions, respectively, achieved by the specified

15 offsets in that fiscal year, except that the ad16 justments for the first fiscal year in which the

17 offsetting provisions take effect shall not exceed

18 the amount of discretionary new budget author19 ity enacted for the new program (authorized in

20 that Act) in an Act making discretionary appro21 priations, and the outlays flowing therefrom.’’.

22 (5) ADJUSTMENT IN APPROPRIATION COMMIT23 TEE’S ALLOCATIONS.—Section 314(b) of the Con24 gressional Budget Act of 1974 is amended by strik25 ing ‘‘; or’’ at the end of paragraph (5), by striking
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1 the period and inserting ‘‘; or’’ at the end of para2 graph (6), and by adding at the end the following

3 new paragraph:

4 ‘‘(7) the amount appropriated for the program

5 for which an offset was designated pursuant to sec6 tion 252(e) of the Balanced Budget and Emergency

7 Deficit Control Act of 1985 and any outlays flowing

8 therefrom, but not to exceed the amount of the des9 ignated decrease in direct spending for that year for

10 that program in a prior law.’’.

11 (6) ADJUSTMENT IN AUTHORIZING COMMIT12 TEE’S ALLOCATIONS.—Section 314 of the Congres13 sional Budget Act of 1974 (as amended by sections

14 206 and 207) is further amended by adding at the

15 end the following new subsection:

16 ‘‘(i) ADJUSTMENT IN AUTHORIZING COMMITTEE’S

17 ALLOCATIONS BY AMOUNT OF DIRECT SPENDING OFF18 SET.—After the reporting of a bill or joint resolution (by

19 a committee other than the Committee on Appropria20 tions), or the offering of an amendment thereto or the sub21 mission of a conference report thereon, that contains a

22 provision that decreases direct spending for any fiscal year

23 and that is designated as an offset pursuant to section

24 252(e) of the Balanced Budget and Emergency Deficit

25 Control Act of 1985, the chairman of the Committee on
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1 the Budget shall reduce the allocations of new budget au2 thority and outlays made to such committee under section

3 302(a)(1) by the amount so designated.’’.

4 Subtitle B—Enhanced Congres5 sional Oversight Responsibil6 ities

7 SEC. 421. TEN-YEAR CONGRESSIONAL REVIEW REQUIRE8 MENT OF PERMANENT BUDGET AUTHORITY.

9 (a) TIMETABLE FOR REVIEW.—Clause 2(d)(1) of

10 rule X of the Rules of the House of Representatives is

11 amended by striking subdivisions (B) and (C) and insert12 ing the following new subdivision:

13 ‘‘(B) provide in its plans a specific timetable for

14 its review of those laws, programs, or agencies with15 in its jurisdiction, including those that operate under

16 permanent budget authority or permanent statutory

17 authority. Such timetable shall demonstrate that

18 each law, program, or agency within the committee’s

19 jurisdiction will be reauthorized at least once every

20 ten years.’’.

21 (b) REVIEW OF PERMANENT BUDGET AUTHORITY

22 BY THE COMMITTEE ON APPROPRIATIONS.—Clause 4(a)

23 of rule X of the Rules of the House of Representatives

24 is amended—

25 (1) by striking subparagraph (2); and
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1 (2) by redesignating subparagraph (3) as sub2 paragraph (2) and by striking ‘‘from time to time’’

3 and inserting ‘‘at least once each Congress’’ in sub4 paragraph (2) (as redesignated).

5 (c) CONFORMING AMENDMENT.—Clause 4(e)(2) of

6 rule X of the Rules of the House of Representatives is

7 amended by striking ‘‘from time to time’’ and inserting

8 ‘‘at least once every ten years’’.

9 SEC. 422. JUSTIFICATIONS OF DIRECT SPENDING.

10 (a) SECTION 302 ALLOCATIONS.—Section 302(a) of

11 the Congressional Budget Act of 1974 is amended by add12 ing at the end the following new paragraph:

13 ‘‘(6) JUSTIFICATION OF CERTAIN SPENDING AL14 LOCATIONS.—The joint explanatory statement ac15 companying a conference report on a joint resolution

16 on the budget that includes any allocation to a com17 mittee (other than the Committee on Appropria18 tions) of levels in excess of current law levels shall

19 set forth a justification for not subjecting any pro20 gram, project, or activity (for which the allocation is

21 made) to annual discretionary appropriation.’’.

22 (b) PRESIDENTS’ BUDGET SUBMISSIONS.—Section

23 1105(a) of title 31, United States Code, is amended by

24 adding at the end the following new paragraph:
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1 ‘‘(33) a justification for not subjecting each

2 new program to discretionary appropriations.’’.

3 (c) COMMITTEE JUSTIFICATION FOR DIRECT SPEND4 ING.—The first sentence of clause 4(e)(1) of rule X of the

5 Rules of the House of Representatives is amended by in6 serting before the period the following: ‘‘, and will provide

7 specific information in any report accompanying such bills

8 and joint resolutions to justify why the programs and ac9 tivities involved would not be subject to annual appropria10 tion’’.

11 SEC. 423. SURVEY OF ACTIVITY REPORTS OF HOUSE COM12 MITTEES.

13 Clause 1(d) of rule XI of the Rules of the House of

14 Representatives is amended by redesignating paragraph

15 (4) as paragraph (5) and by inserting after paragraph (3)

16 the following new paragraph:

17 ‘‘(4) Such report shall include a summary of and jus18 tifications for all bills and joint resolutions reported by

19 such committee that—

20 ‘‘(A) were considered before the adoption of the

21 appropriate budget resolution and did not fall within

22 an exception set forth in section 303(b) of the Con23 gressional Budget Act of 1974;
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1 ‘‘(B) exceeded its allocation under section

2 302(a) of such Act or breached an aggregate level

3 in violation of section 311 of such Act; or

4 ‘‘(C) contained provisions in violation of section

5 401(a) of such Act pertaining to indefinite direct

6 spending authority.

7 Such report shall also specify the total amount by which

8 legislation reported by that committee exceeded its alloca9 tion under section 302(a) or breached the revenue floor

10 under section 311(a) of such Act for each fiscal year dur11 ing that Congress.’’.

12 SEC. 424. CONTINUING STUDY OF ADDITIONAL BUDGET

13 PROCESS REFORMS.

14 Section 703 of the Congressional Budget Act of 1974

15 is amended as follows:

16 (1) In subsection (a), strike ‘‘and’’ at the end

17 of paragraph (3), strike the period at the end of

18 paragraph (4) and insert ‘‘; and’’, and at the end

19 add the following new paragraph:

20 ‘‘(5) evaluating whether existing programs

21 should be subject to discretionary appropriations and

22 establishing guidelines for subjecting new or ex23 panded programs to annual appropriation and rec24 ommend any necessary changes in statutory enforce-
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1 ment mechanisms and scoring conventions to effec2 tuate such changes.’’.

3 (2) In subsection (b), strike ‘‘from time to

4 time’’ and insert ‘‘during the One Hundred Sixth

5 Congress’’.

6 SEC. 425. GAO REPORTS.

7 The last sentence of section 404 of the Congres8 sional Budget Act of 1974 is amended to read as follows:

9 ‘‘Such report shall be revised at least once every five

10 years.’’.

11 Subtitle C—Strengthened

12 Accountability

13 SEC. 431. TEN-YEAR CBO ESTIMATES.

14 (a) CBO REPORTS ON LEGISLATION.—Section

15 308(a)(1)(B) of the Congressional Budget Act of 1974 is

16 amended by striking ‘‘four’’ and inserting ‘‘nine’’.

17 (b) ANALYSIS BY CBO.—Section 402(1) of the Con18 gressional Budget Act of 1974 is amended by striking ‘‘4’’

19 and inserting ‘‘nine’’.

20 (c) COST ESTIMATES.—Clause 3(d)(2)(A) of rule

21 XIII of the Rules of the House of Representatives is

22 amended by striking ‘‘five’’ each place it appears and in23 serting ‘‘10’’.
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1 SEC. 432. REPEAL OF RULE XXIII OF THE RULES OF THE

2 HOUSE OF REPRESENTATIVES.

3 Rule XXIII of the Rules of the House of Representa4 tives (relating to the establishment of the statutory limit

5 on the public debt) is repealed.

6 TITLE V—BUDGETING FOR UN7 FUNDED LIABILITIES AND

8 OTHER LONG-TERM OBLIGA9 TIONS

10 SEC. 501. PURPOSES.

11 The purposes of this title are to—

12 (1) budget for the long-term costs of Federal

13 insurance programs;

14 (2) improve congressional control of those costs;

15 and

16 (3) periodically report on long-term budgetary

17 trends.

18 Subtitle A—Budgetary Treatment

19 of Federal Insurance Programs

20 SEC. 511. FEDERAL INSURANCE PROGRAMS.

21 (a) IN GENERAL.—The Congressional Budget Act of

22 1974 is amended by adding after title V the following new

23 title:
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1 ‘‘TITLE VI—BUDGETARY TREATMENT OF FEDERAL

2 INSURANCE PROGRAMS

3 ‘‘SEC. 601. SHORT TITLE.

4 ‘‘This title may be cited as the ‘Federal Insurance

5 Budgeting Act of 1999’.

6 ‘‘SEC. 602. BUDGETARY TREATMENT.

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

8 year 2006, the budget of the Government pursuant to sec9 tion 1105(a) of title 31, United States Code, shall be

10 based on the risk-assumed cost of Federal insurance pro11 grams.

12 ‘‘(b) BUDGET ACCOUNTING.—For any Federal insur13 ance program—

14 ‘‘(1) the program account shall—

15 ‘‘(A) pay the risk-assumed cost borne by

16 the taxpayer to the financing account, and

17 ‘‘(B) pay actual insurance program admin18 istrative costs;

19 ‘‘(2) the financing account shall—

20 ‘‘(A) receive premiums and other income,

21 ‘‘(B) pay all claims for insurance and re22 ceive all recoveries,

23 ‘‘(C) transfer to the program account on

24 not less than an annual basis amounts nec-
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1 essary to pay insurance program administrative

2 costs;

3 ‘‘(3) a negative risk-assumed cost shall be

4 transferred from the financing account to the pro5 gram account, and shall be transferred from the pro6 gram account as a nonexpenditure transfer to the

7 general fund; and

8 ‘‘(4) all payments by or receipts of the financ9 ing accounts shall be treated in the budget as a

10 means of financing.

11 ‘‘(c) APPROPRIATIONS REQUIRED.—(1) Notwith12 standing any other provision of law, insurance commit13 ments may be made for fiscal year 2006 and thereafter

14 only to the extent that new budget authority to cover their

15 risk-assumed cost is provided in advance in an appropria16 tion Act.

17 ‘‘(2) An outstanding insurance commitment shall not

18 be modified in a manner that increases its risk-assumed

19 cost unless budget authority for the additional cost has

20 been provided in advance in an appropriation Act.

21 ‘‘(3) Paragraphs (1) and (2) shall not apply to Fed22 eral insurance programs that constitute entitlements.

23 ‘‘(d) REESTIMATES.—The risk-assumed cost for a

24 fiscal year shall be reestimated in each subsequent year.

25 Such reestimate can equal zero. In the case of a positive
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1 reestimate, the amount of the reestimate shall be paid

2 from the program account to the financing account. In

3 the case of a negative reestimate, the amount of the reesti4 mate shall be paid from the financing account to the pro5 gram account, and shall be transferred from the program

6 account to the general fund as a nonexpenditure transfer.

7 Reestimates shall be displayed as a distinct and separately

8 identified subaccount in the program account.

9 ‘‘(e) ADMINISTRATIVE EXPENSES.—All funding for

10 an agency’s administration of a Federal insurance pro11 gram shall be displayed as a distinct and separately identi12 fied subaccount in the program account.

13 ‘‘SEC. 603. TIMETABLE FOR IMPLEMENTATION OF ACCRUAL

14 BUDGETING FOR FEDERAL INSURANCE PRO15 GRAMS.

16 ‘‘(a) AGENCY REQUIREMENTS.—Agencies with re17 sponsibility for Federal insurance programs shall develop

18 models to estimate their risk-assumed cost by year

19 through the budget horizon and shall submit those models,

20 all relevant data, a justification for critical assumptions,

21 and the annual projected risk-assumed costs to OMB with

22 their budget requests each year starting with the request

23 for fiscal year 2002. Agencies will likewise provide OMB

24 with annual estimates of modifications, if any, and reesti25 mates of program costs.
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1 ‘‘(b) DISCLOSURE.—When the President submits a

2 budget of the Government pursuant to section 1105(a) of

3 title 31, United States Code, for fiscal year 2002, OMB

4 shall publish a notice in the Federal Register advising in5 terested persons of the availability of information describ6 ing the models, data (including sources), and critical as7 sumptions (including explicit or implicit discount rate as8 sumptions) that it or other executive branch entities would

9 use to estimate the risk-assumed cost of Federal insurance

10 programs and giving such persons an opportunity to sub11 mit comments. At the same time, the chairman of the

12 Committee on the Budget shall publish a notice for CBO

13 in the Federal Register advising interested persons of the

14 availability of information describing the models, data (in15 cluding sources), and critical assumptions (including ex16 plicit or implicit discount rate assumptions) that it would

17 use to estimate the risk-assumed cost of Federal insurance

18 programs and giving such interested persons an oppor19 tunity to submit comments.

20 ‘‘(c) REVISION.—(1) After consideration of comments

21 pursuant to subsection (b), and in consultation with the

22 Committees on the Budget of the House of Representa23 tives and the Senate, OMB and CBO shall revise the mod24 els, data, and major assumptions they would use to esti-
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1 mate the risk-assumed cost of Federal insurance pro2 grams.

3 ‘‘(2) When the President submits a budget of the

4 Government pursuant to section 1105(a) of title 31,

5 United States Code, for fiscal year 2003, OMB shall pub6 lish a notice in the Federal Register advising interested

7 persons of the availability of information describing the

8 models, data (including sources), and critical assumptions

9 (including explicit or implicit discount rate assumptions)

10 that it or other executive branch entities used to estimate

11 the risk-assumed cost of Federal insurance programs.

12 ‘‘(d) DISPLAY.—

13 ‘‘(1) IN GENERAL.—For fiscal years 2003,

14 2004, and 2005 the budget submissions of the Presi15 dent pursuant to section 1105(a) of title 31, United

16 States Code, and CBO’s reports on the economic

17 and budget outlook pursuant to section 202(e)(1)

18 and the President’s budgets, shall for display pur19 poses only, estimate the risk-assumed cost of exist20 ing or proposed Federal insurance programs.

21 ‘‘(2) OMB.—The display in the budget submis22 sions of the President for fiscal years 2003, 2004,

23 and 2005 shall include—
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1 ‘‘(A) a presentation for each Federal insur2 ance program in budget-account level detail of

3 estimates of risk-assumed cost;

4 ‘‘(B) a summary table of the risk-assumed

5 costs of Federal insurance programs; and

6 ‘‘(C) an alternate summary table of budget

7 functions and aggregates using risk-assumed

8 rather than cash-based cost estimates for Fed9 eral insurance programs.

10 ‘‘(3) CBO.—In the second session of the 108th

11 Congress and the 109th Congress, CBO shall in12 clude in its estimates under section 308, for display

13 purposes only, the risk-assumed cost of existing Fed14 eral programs, or legislation that CBO, in consulta15 tion with the Committees on the Budget of the

16 House of Representatives and the Senate, deter17 mines would create a new Federal insurance pro18 gram.

19 ‘‘(e) OMB, CBO, AND GAO EVALUATIONS.—(1) Not

20 later than 6 months after the budget submission of the

21 President pursuant to section 1105(a) of title 31, United

22 States Code, for fiscal year 2005, OMB, CBO, and GAO

23 shall each submit to the Committees on the Budget of the

24 House of Representatives and the Senate a report that
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1 evaluates the advisability and appropriate implementation

2 of this title.

3 ‘‘(2) Each report made pursuant to paragraph (1)

4 shall address the following:

5 ‘‘(A) The adequacy of risk-assumed estimation

6 models used and alternative modeling methods.

7 ‘‘(B) The availability and reliability of data or

8 information necessary to carry out this title.

9 ‘‘(C) The appropriateness of the explicit or im10 plicit discount rate used in the various risk-assumed

11 estimation models.

12 ‘‘(D) The advisability of specifying a statutory

13 discount rate (such as the Treasury rate) for use in

14 risk-assumed estimation models.

15 ‘‘(E) The ability of OMB, CBO, or GAO, as ap16 plicable, to secure any data or information directly

17 from any Federal agency necessary to enable it to

18 carry out this title.

19 ‘‘(F) The relationship between risk-assumed ac20 crual budgeting for Federal insurance programs and

21 the specific requirements of the Balanced Budget

22 and Emergency Deficit Control Act of 1985.

23 ‘‘(G) Whether Federal budgeting is improved by

24 the inclusion of risk-assumed cost estimates for Fed25 eral insurance programs.
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1 ‘‘(H) The advisability of including each of the

2 programs currently estimated on a risk-assumed cost

3 basis in the Federal budget on that basis.

4 ‘‘SEC. 604. DEFINITIONS.

5 ‘‘For purposes of this title:

6 ‘‘(1) The term ‘Federal insurance program’

7 means a program that makes insurance commit8 ments and includes the list of such programs in9 cluded in the joint explanatory statement of man10 agers accompanying the conference report on the

11 Comprehensive Budget Process Reform Act of 1999.

12 ‘‘(2) The term ‘insurance commitment’ means

13 an agreement in advance by a Federal agency to in14 demnify a nonfederal entity against specified losses.

15 This term does not include loan guarantees as de16 fined in title V or benefit programs such as social

17 security, medicare, and similar existing social insur18 ance programs.

19 ‘‘(3)(A) The term ‘risk-assumed cost’ means the

20 net present value of the estimated cash flows to and

21 from the Government resulting from an insurance

22 commitment or modification thereof.

23 ‘‘(B) The cash flows associated with an insur24 ance commitment include—
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1 ‘‘(i) expected claims payments inherent in

2 the Government’s commitment;

3 ‘‘(ii) net premiums (expected premium col4 lections received from or on behalf of the in5 sured less expected administrative expenses);

6 ‘‘(iii) expected recoveries; and

7 ‘‘(iv) expected changes in claims, pre8 miums, or recoveries resulting from the exercise

9 by the insured of any option included in the in10 surance commitment.

11 ‘‘(C) The cost of a modification is the difference

12 between the current estimate of the net present

13 value of the remaining cash flows under the terms

14 of the insurance commitment, and the current esti15 mate of the net present value of the remaining cash

16 flows under the terms of the insurance commitment

17 as modified.

18 ‘‘(D) The cost of a reestimate is the difference

19 between the net present value of the amount cur20 rently required by the financing account to pay esti21 mated claims and other expenditures and the

22 amount currently available (whether in cash or other

23 marketable asset) in the financing account. The cost

24 of a reestimate shall be accounted for in the current
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1 year in the budget of the Government pursuant to

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

3 ‘‘(E) For purposes of this definition, expected

4 administrative expenses shall be construed as the

5 amount estimated to be necessary for the proper ad6 ministration of the insurance program. This amount

7 may differ from amounts actually appropriated or

8 otherwise made available for the administration of

9 the program.

10 ‘‘(4) The term ‘program account’ means the

11 budget account for the risk-assumed cost, and for all

12 costs of administering the insurance program, and is

13 the account from which the risk-assumed cost is dis14 bursed to the financing account.

15 ‘‘(5) The term ‘financing account’ means the

16 nonbudget account that is associated with each pro17 gram account which receives payments from or

18 makes payments to the program account, receives

19 premiums and other payments from the public, pays

20 insurance claims, and holds balances.

21 ‘‘(6) The term ‘modification’ means any Gov22 ernment action that alters the risk-assumed cost of

23 an existing insurance commitment from the current

24 estimate of cash flows. This includes any action re25 sulting from new legislation, or from the exercise of
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1 administrative discretion under existing law, that di2 rectly or indirectly alters the estimated cost of exist3 ing insurance commitments.

4 ‘‘(7) The term ‘model’ means any actuarial, fi5 nancial, econometric, probabilistic, or other method6 ology used to estimate the expected frequency and

7 magnitude of loss-producing events, expected pre8 miums or collections from or on behalf of the in9 sured, expected recoveries, and administrative ex10 penses.

11 ‘‘(8) The term ‘current’ has the same meaning

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

13 Emergency Deficit Control Act of 1985.

14 ‘‘(9) The term ‘OMB’ means the Director of

15 the Office of Management and Budget.

16 ‘‘(10) The term ‘CBO’ means the Director of

17 the Congressional Budget Office.

18 ‘‘(11) The term ‘GAO’ means the Comptroller

19 General of the United States.

20 ‘‘SEC. 605. AUTHORIZATIONS TO ENTER INTO CONTRACTS;

21 ACTUARIAL COST ACCOUNT.

22 ‘‘(a) AUTHORIZATION OF APPROPRIATIONS.—There

23 is authorized to be appropriated $600,000 for each of fis24 cal years 2000 through 2005 to the Director of the Office

25 of Management and Budget and each agency responsible
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1 for administering a Federal program to carry out this

2 title.

3 ‘‘(b) TREASURY TRANSACTIONS WITH THE FINANC4 ING ACCOUNTS.—The Secretary of the Treasury shall bor5 row from, receive from, lend to, or pay the insurance fi6 nancing accounts such amounts as may be appropriate.

7 The Secretary of the Treasury may prescribe forms and

8 denominations, maturities, and terms and conditions for

9 the transactions described above. The authorities de10 scribed above shall not be construed to supersede or over11 ride the authority of the head of a Federal agency to ad12 minister and operate an insurance program. All the trans13 actions provided in this subsection shall be subject to the

14 provisions of subchapter II of chapter 15 of title 31,

15 United States Code. Cash balances of the financing ac16 counts in excess of current requirements shall be main17 tained in a form of uninvested funds, and the Secretary

18 of the Treasury shall pay interest on these funds.

19 ‘‘(c) APPROPRIATION OF AMOUNT NECESSARY TO

20 COVER RISK-ASSUMED COST OF INSURANCE COMMIT21 MENTS AT TRANSITION DATE.—(1) A financing account

22 is established on September 30, 2005, for each Federal

23 insurance program.

24 ‘‘(2) There is appropriated to each financing account

25 the amount of the unfunded risk-assumed cost of Federal
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1 insurance commitments outstanding for that program as

2 of the close of September 30, 2005.

3 ‘‘(3) These financing accounts shall be used in imple4 menting the budget accounting required by this title.

5 ‘‘SEC. 606. EFFECTIVE DATE.

6 ‘‘This title shall take effect immediately and shall ex7 pire on September 30, 2007.’’.

8 (b) CONFORMING AMENDMENT.—The table of con9 tents set forth in section 1(b) of the Congressional Budget

10 and Impoundment Control Act of 1974 is amended by in11 serting after the item relating to section 507 the following

12 new items:

‘‘TITLE VI—BUDGETARY TREATMENT OF FEDERAL INSURANCE

PROGRAMS

‘‘Sec. 601. Short title.

‘‘Sec. 602. Budgetary treatment.

‘‘Sec. 603. Timetable for implementation of accrual budgeting for Federal insurance programs.

‘‘Sec. 604. Definitions.

‘‘Sec. 605. Authorizations to enter into contracts; actuarial cost account.

‘‘Sec. 606. Effective date.’’.

13 Subtitle B—Reports on Long-Term

14 Budgetary Trends

15 SEC. 521. REPORTS ON LONG-TERM BUDGETARY TRENDS.

16 (a) THE PRESIDENT’S BUDGET.—Section 1105(a) of

17 title 31, United States Code (as amended by section 404),

18 is further amended by adding at the end the following new

19 paragraph:

20 ‘‘(34) an analysis based upon current law and

21 an analysis based upon the policy assumptions un-
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1 derlying the budget submission for every fifth year

2 of the period of 75 fiscal years beginning with such

3 fiscal year, of the estimated levels of total new budg4 et authority and total budget outlays, estimated rev5 enues, estimated surpluses and deficits, and, for

6 each major Federal entitlement program, estimated

7 levels of total new budget authority and total budget

8 outlays; and a specification of its underlying as9 sumptions and a sensitivity analysis of factors that

10 have a significant effect on the projections made in

11 each analysis; and a comparison of the effects of

12 each of the two analyses on the economy, including

13 such factors as inflation, foreign investment, interest

14 rates, and economic growth.’’.

15 (b) CBO REPORTS.—Section 202(e)(1) of the Con16 gressional Budget Act of 1974 is amended by adding at

17 the end the following new sentences: ‘‘Such report shall

18 also include an analysis based upon current law for every

19 fifth year of the period of 75 fiscal years beginning with

20 such fiscal year, of the estimated levels of total new budget

21 authority and total budget outlays, estimated revenues, es22 timated surpluses and deficits, and, for each major Fed23 eral entitlement program, estimated levels of total new

24 budget authority and total budget outlays. The report de25 scribed in the preceding sentence shall also specify its un-
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1 derlying assumptions and set forth a sensitivity analysis

2 of factors that have a significant effect on the projections

3 made in the report.’’.1

4 TITLE VI—BASELINES, BYRD

5 RULE, AND LOCK-BOX

6 SEC. 601. PURPOSE.

7 The purposes of this title are to—

8 (1) require budgetary comparisons to prior year

9 levels;

10 (2) restrict the application of the Byrd rule to

11 measures other than conference reports; and

12 (3) establish a procedure to allow savings from

13 spending cuts in appropriation measures to be

14 locked-in to increase the surplus or reduce the def15 icit.

16 Subtitle A—The Baseline

17 SEC. 611. THE PRESIDENT’S BUDGET.

18 (a) Paragraph (5) of section 1105(a) of title 31,

19 United States Code, is amended to read as follows:

20 ‘‘(5) except as provided in subsection (b) of this

21 section, estimated expenditures and appropriations

22 for the current year and estimated expenditures and

23 proposed appropriations the President decides are

24 necessary to support the Government in the fiscal

25 year for which the budget is submitted and the 4 fis-
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1 cal years following that year, and, except for detailed

2 budget estimates, the percentage change from the

3 current year to the fiscal year for which the budget

4 is submitted for estimated expenditures and for ap5 propriations.’’.

6 (b) Section 1105(a)(6) of title 31, United States

7 Code, is amended to read as follows:

8 ‘‘(6) estimated receipts of the Government in

9 the current year and the fiscal year for which the

10 budget is submitted and the 4 fiscal years after that

11 year under—

12 ‘‘(A) laws in effect when the budget is sub13 mitted; and

14 ‘‘(B) proposals in the budget to increase

15 revenues,

16 and the percentage change (in the case of each cat17 egory referred to in subparagraphs (A) and (B)) be18 tween the current year and the fiscal year for which

19 the budget is submitted and between the current

20 year and each of the 4 fiscal years after the fiscal

21 year for which the budget is submitted.’’.

22 (c) Section 1105(a)(12) of title 31, United States

23 Code, is amended to read as follows:
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1 ‘‘(12) for each proposal in the budget for legis2 lation that would establish or expand a Government

3 activity or function, a table showing—

4 ‘‘(A) the amount proposed in the budget

5 for appropriation and for expenditure because

6 of the proposal in the fiscal year for which the

7 budget is submitted;

8 ‘‘(B) the estimated appropriation required

9 because of the proposal for each of the 4 fiscal

10 years after that year that the proposal will be

11 in effect; and

12 ‘‘(C) the estimated amount for the same

13 activity or function, if any, in the current fiscal

14 year,

15 and, except for detailed budget estimates, the per16 centage change (in the case of each category re17 ferred to in subparagraphs (A), (B), and (C)) be18 tween the current year and the fiscal year for which

19 the budget is submitted.’’.

20 (d) Section 1105(a)(18) of title 31, United States

21 Code, is amended by inserting ‘‘new budget authority

22 and’’ before ‘‘budget outlays’’.

23 (e) Section 1105(a) of title 31, United States Code,

24 (as amended by sections 412(b) and 521(a)) is further
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1 amended by adding at the end the following new para2 graphs:

3 ‘‘(35) a comparison of levels of estimated ex4 penditures and proposed appropriations for each

5 function and subfunction in the current fiscal year

6 and the fiscal year for which the budget is sub7 mitted, along with the proposed increase or decrease

8 of spending in percentage terms for each function

9 and subfunction.

10 ‘‘(36) a table on sources of growth in total di11 rect spending under current law and as proposed in

12 this budget submission for the budget year and the

13 ensuing 4 fiscal years, which shall include changes

14 in outlays attributable to the following: cost-of-living

15 adjustments; changes in the number of program re16 cipients; increases in medical care prices, utilization

17 and intensity of medical care; and residual factors.’’.

18 (f) Section 1109(a) of title 31, United States Code,

19 is amended by inserting after the first sentence the fol20 lowing new sentence: ‘‘For discretionary spending, these

21 estimates shall assume the levels set forth in the discre22 tionary spending limits under section 251(c) of the Bal23 anced Budget and Emergency Deficit Control Act of 1985,

24 as adjusted, for the appropriate fiscal years (and if no

25 such limits are in effect, these estimates shall assume the
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1 adjusted levels for the most recent fiscal year for which

2 such levels were in effect).’’.

3 SEC. 612. THE CONGRESSIONAL BUDGET.

4 Section 301(e) of the Congressional Budget Act of

5 1974 (as amended by section 103) is further amended—

6 (1) in paragraph (1), by inserting at the end

7 the following: ‘‘The basis of deliberations in devel8 oping such joint resolution shall be the estimated

9 budgetary levels for the preceding fiscal year. Any

10 budgetary levels pending before the committee and

11 the text of the joint resolution shall be accompanied

12 by a document comparing such levels or such text to

13 the estimated levels of the prior fiscal year. Any

14 amendment offered in the committee that changes a

15 budgetary level and is based upon a specific policy

16 assumption for a program, project, or activity shall

17 be accompanied by a document indicating the esti18 mated amount for such program, project, or activity

19 in the current year.’’; and

20 (2) in paragraph (2), by striking ‘‘and’’ at the

21 end of subparagraph (H), by striking the period and

22 inserting ‘‘; and’’ at the end of subparagraph (I),

23 and by adding at the end the following new subpara24 graph:
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1 ‘‘(J) a comparison of levels for the current

2 fiscal year with proposed spending and revenue

3 levels for the subsequent fiscal years along with

4 the proposed increase or decrease of spending

5 in percentage terms for each function.’’.

6 SEC. 613. CONGRESSIONAL BUDGET OFFICE REPORTS TO

7 COMMITTEES.

8 (a) The first sentence of section 202(e)(1) of the Con9 gressional Budget Act of 1974 is amended by inserting

10 ‘‘compared to comparable levels for the current year’’ be11 fore the comma at the end of subparagraph (A) and before

12 the comma at the end of subparagraph (B).

13 (b) Section 202(e)(1) of the Congressional Budget

14 Act of 1974 is amended by inserting after the first sen15 tence the following new sentence: ‘‘Such report shall also

16 include a table on sources of spending growth in total di17 rect spending for the budget year and the ensuing 4 fiscal

18 years, which shall include changes in outlays attributable

19 to the following: cost-of-living adjustments; changes in the

20 number of program recipients; increases in medical care

21 prices, utilization and intensity of medical care; and resid22 ual factors.’’.

23 (c) Section 308(a)(1)(B) of the Congressional Budget

24 Act of 1974 is amended by inserting ‘‘and shall include
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1 a comparison of those levels to comparable levels for the

2 current fiscal year’’ before ‘‘if timely submitted’’.

3 SEC. 614. OUTYEAR ASSUMPTIONS FOR DISCRETIONARY

4 SPENDING.

5 For purposes of chapter 11 of title 31 of the United

6 States Code, or the Congressional Budget Act of 1974,

7 unless otherwise expressly provided, in making budgetary

8 projections for years for which there are no discretionary

9 spending limits, the Director of the Office of Management

10 and Budget and the Director of the Congressional Budget

11 Office shall assume discretionary spending levels at the

12 levels for the last fiscal year for which such levels were

13 in effect.

14 Subtitle B—The Byrd Rule

15 SEC. 621. LIMITATION ON BYRD RULE.

16 (a) PROTECTION OF CONFERENCE REPORTS.—Sec17 tion 313 of the Congressional Budget Act of 1974 is

18 amended—

19 (1) in subsection (c), by striking ‘‘and again

20 upon the submission of a conference report on such

21 a reconciliation bill or resolution,’’;

22 (2) by striking subsection (d);

23 (3) by redesignating subsection (e) as sub24 section (d); and

25 (4) in subsection (e), as redesignated—
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1 (A) by striking ‘‘, motion, or conference re2 port’’ the first place it appears and inserting ‘‘,

3 or motion’’; and

4 (B) by striking ‘‘, motion, or conference re5 port’’ the second and third places it appears

6 and inserting ‘‘or motion’’.

7 (b) CONFORMING AMENDMENT.—The first sentence

8 of section 312(e) of the Congressional Budget Act of 1974

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

10 ‘‘Act’’.

11 Subtitle C—Spending

12 Accountability Lock-box

13 SEC. 631. SHORT TITLE.

14 This subtitle may be cited as the ‘‘Spending Account15 ability Lock-box Act of 1999’’.

16 SEC. 632. SPENDING ACCOUNTABILITY LOCK-BOX LEDGER.

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

18 Congressional Budget Act of 1974 (as amended by sec19 tions 104(b) and 105(a)) is further amended by adding

20 after section 317 the following new section:

21 ‘‘SPENDING ACCOUNTABILITY LOCK-BOX LEDGER

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

23 chairman of the Committee on the Budget of the House

24 of Representatives and the chairman of the Committee on

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

26 be known as the ‘Spending Accountability Lock-box Ledg-
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1 er’. The Ledger shall be divided into entries corresponding

2 to the subcommittees of the Committees on Appropria3 tions. Each entry shall consist of three components: the

4 ‘House Lock-box Balance’; the ‘Senate Lock-box Balance’;

5 and the ‘Joint House-Senate Lock-box Balance’.

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

7 an entry shall consist only of amounts credited to it under

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

9 made.

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

11 House of Representatives or the Senate, whenever a Mem12 ber offers an amendment to an appropriation bill to reduce

13 new budget authority in any account, that Member may

14 state the portion of such reduction that shall be—

15 ‘‘(A) credited to the House or Senate Lock-box

16 Balance, as applicable; or

17 ‘‘(B) used to offset an increase in new budget

18 authority in any other account;

19 ‘‘(C) allowed to remain within the applicable

20 section 302(b) suballocation.

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

22 in new budget authority resulting from the amendment

23 shall be credited to the House or Senate Lock-box Bal24 ance, as applicable, if the amendment is agreed to.
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1 ‘‘(2)(A) Except as provided by subparagraph (B), the

2 chairmen of the Committees on the Budget shall, upon

3 the engrossment of any appropriation bill by the House

4 of Representatives and upon the engrossment of that bill

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

6 that House amounts of new budget authority and outlays

7 equal to the net amounts of reductions in new budget au8 thority and in outlays resulting from amendments agreed

9 to by that House to that bill.

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

11 in new budget authority and in outlays resulting from

12 amendments agreed to by the House of Representatives

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

14 the Committees on the Budget shall only count those por15 tions of such amendments agreed to that were so des16 ignated by the Members offering such amendments as

17 amounts to be credited to the House or Senate Lock-box

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

19 of paragraph (1).

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

21 shall, upon the engrossment of Senate amendments to any

22 appropriation bill, credit to the applicable Joint House23 Senate Lock-box Balance the amounts of new budget au24 thority and outlays equal to—
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1 ‘‘(A) an amount equal to one-half of the sum of

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

3 Lock-box Balance plus (ii) the amount of new budg4 et authority in the Senate Lock-box Balance for that

5 bill; and

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

7 of (i) the amount of outlays in the House Lock-box

8 Balance plus (ii) the amount of outlays in the Sen9 ate Lock-box Balance for that bill.

10 ‘‘(4) CALCULATION OF LOCK-BOX SAVINGS IN SEN11 ATE.—For purposes of calculating under this section the

12 net amounts of reductions in new budget authority and

13 in outlays resulting from amendments agreed to by the

14 Senate on an appropriation bill, the amendments reported

15 to the Senate by its Committee on Appropriations shall

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

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

18 ‘appropriation bill’ means any general or special appro19 priation bill, and any bill or joint resolution making sup20 plemental, deficiency, or continuing appropriations

21 through the end of a fiscal year.

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

23 chairman of the Committee on the Budget of the House

24 of Representatives shall maintain a running tally of the

25 amendments adopted reflecting increases and decreases of
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1 budget authority in the bill as reported. This tally shall

2 be available to Members in the House of Representatives

3 during consideration of any appropriations bill by the

4 House.’’.

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

7 and Impoundment Control Act of 1974 is amended by in8 serting after the item relating to section 317 the following

9 new item:

‘‘Sec. 318. Spending accountability lock-box ledger.’’.

10 SEC. 633. DOWNWARD ADJUSTMENT OF SECTION 302(A) AL11 LOCATIONS AND SECTION 302(B) SUBALLOCA12 TIONS.

13 (a) ALLOCATIONS.—Section 302(a) of the Congres14 sional Budget Act of 1974 (as amended by section 422)

15 is further amended by adding at the end the following new

16 paragraph:

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

18 the engrossment of Senate amendments to any ap19 propriation bill (as defined in section 318(d)) for a

20 fiscal year, the amounts allocated under paragraph

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

22 each House upon the adoption of the most recent

23 joint resolution on the budget for that fiscal year

24 shall be adjusted downward by the amounts credited

25 to the applicable Joint House-Senate Lock-box Bal-
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1 ance under section 318(c)(2). The revised levels of

2 new budget authority and outlays shall be submitted

3 to each House by the chairman of the Committee on

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

5 Congressional Record.’’.

6 (b) SUBALLOCATIONS.—Section 302(b) of the Con7 gressional Budget Act of 1974 is amended by adding at

8 the end the following new sentence: ‘‘Whenever an adjust9 ment is made under subsection (a)(7) to an allocation

10 under that subsection, the Committee on Appropriations

11 of each House shall make downward adjustments in the

12 most recent suballocations of new budget authority and

13 outlays under this subparagraph to the appropriate sub14 committees of that committee in the total amounts of

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

16 suballocations shall be submitted to each House by the

17 chairman of the Committee on Appropriations of that

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

19 SEC. 634. PERIODIC REPORTING OF LEDGER STATEMENTS.

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

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

22 new sentence: ‘‘Such reports shall also include an up-to23 date tabulation of the amounts contained in the ledger and

24 each entry established by section 318(a).’’.
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1 SEC. 635. DOWNWARD ADJUSTMENT OF DISCRETIONARY

2 SPENDING LIMITS.

3 The discretionary spending limits for new budget au4 thority and outlays for any fiscal year set forth in section

5 251(c) of the Balanced Budget and Emergency Deficit

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

7 forth in the final regular appropriation bill for that fiscal

8 year or joint resolution making continuing appropriations

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

10 be the sums of the Joint House-Senate Lock-box Balances

11 for that fiscal year, as calculated under section 302(a)(7)

12 of the Congressional Budget Act of 1974. That bill or joint

13 resolution shall contain the following statement of law:

14 ‘‘As required by section 636 of the Spending Account15 ability Lock-box Act of 1999, for fiscal year [insert appro16 priate fiscal year] and each outyear, the adjusted discre17 tionary spending limit for new budget authority shall be

18 reduced by $ [insert appropriate amount of reduction] and

19 the adjusted discretionary limit for outlays shall be re20 duced by $ [insert appropriate amount of reduction] for

21 the fiscal year and each outyear.’’. Notwithstanding sec22 tion 904(c) of the Congressional Budget Act of 1974, sec23 tion 306 as it applies to this statement shall not apply.

24 This adjustment shall be reflected in reports under sec25 tions 254(f) and 254(g) of the Balanced Budget and

26 Emergency Deficit Control Act of 1985.
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1 øSubtitle D—Automatic Continuing

2 Resolution

3 øSEC. 641. AUTOMATIC CONTINUING RESOLUTION.

4 ø(a) AMENDMENT TO TITLE 31.—Chapter 13 of title

5 31, United States Code, is amended by inserting after sec6 tion 1310 the following new section:

7 ø‘‘§ 1311. Continuing appropriations

8 ø‘‘(a)(1) If any regular appropriation bill for a fiscal

9 year does not become law prior to the beginning of such

10 fiscal year or a joint resolution making continuing appro11 priations is not in effect, there is appropriated, out of any

12 moneys in the Treasury not otherwise appropriated, and

13 out of applicable corporate or other revenues, receipts, and

14 funds, such sums as may be necessary to continue any

15 project or activity for which funds were provided in the

16 preceding fiscal year—

17 ø‘‘(A) in the corresponding regular appropria18 tion Act for such preceding fiscal year; or

19 ø‘‘(B) if the corresponding regular appropria20 tion bill for such preceding fiscal year did not be21 come law, then in a joint resolution making con22 tinuing appropriations for such preceding fiscal year.

23 ø‘‘(2) Appropriations and funds made available, and

24 authority granted, for a project or activity for any fiscal

25 year pursuant to this section shall be at a rate of oper-
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1 ations not in excess of the rate of operations provided for

2 in the regular appropriation Act providing for such project

3 or activity for the preceding fiscal year, or in the absence

4 of such an Act, the rate of operations provided for such

5 project or activity pursuant to a joint resolution making

6 continuing appropriations for such preceding fiscal year.

7 ø‘‘(3) Appropriations and funds made available, and

8 authority granted, for any fiscal year pursuant to this sec9 tion for a project or activity shall be available for the pe10 riod beginning with the first day of a lapse in appropria11 tions and ending with the earlier of—

12 ø‘‘(A) the date on which the applicable regular

13 appropriation bill for such fiscal year becomes law

14 (whether or not such law provides for such project

15 or activity) or a continuing resolution making appro16 priations becomes law, as the case may be, or

17 ø‘‘(B) the last day of such fiscal year.

18 ø‘‘(b) An appropriation or funds made available, or

19 authority granted, for a project or activity for any fiscal

20 year pursuant to this section shall be subject to the terms

21 and conditions imposed with respect to the appropriation

22 made or funds made available for the preceding fiscal

23 year, or authority granted for such project or activity

24 under current law.
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1 ø‘‘(c) Appropriations and funds made available, and

2 authority granted, for any project or activity for any fiscal

3 year pursuant to this section shall cover all obligations or

4 expenditures incurred for such project or activity during

5 the portion of such fiscal year for which this section ap6 plies to such project or activity.

7 ø‘‘(d) Expenditures made for a project or activity for

8 any fiscal year pursuant to this section shall be charged

9 to the applicable appropriation, fund, or authorization

10 whenever a regular appropriation bill or a joint resolution

11 making continuing appropriations until the end of a fiscal

12 year providing for such project or activity for such period

13 becomes law.

14 ø‘‘(e) This section shall not apply to a project or ac15 tivity during a fiscal year if any other provision of law

16 (other than an authorization of appropriations)—

17 ø‘‘(1) makes an appropriation, makes funds

18 available, or grants authority for such project or ac19 tivity to continue for such period, or

20 ø‘‘(2) specifically provides that no appropriation

21 shall be made, no funds shall be made available, or

22 no authority shall be granted for such project or ac23 tivity to continue for such period; or

24 ø‘‘(f) For purposes of this section, the term ‘regular

25 appropriation bill’ means any annual appropriation bill
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1 making appropriations, otherwise making funds available,

2 or granting authority, for any of the following categories

3 of projects and activities:

4 ø‘‘(1) Agriculture, rural development, and re5 lated agencies programs.

6 ø‘‘(2) The Departments of Commerce, Justice,

7 and State, the judiciary, and related agencies.

8 ø‘‘(3) The Department of Defense.

9 ø‘‘(4) The government of the District of Colum10 bia and other activities chargeable in whole or in

11 part against the revenues of the District.

12 ø‘‘(5) The Departments of Labor, Health and

13 Human Services, and Education, and related agen14 cies.

15 ø‘‘(6) The Department of Housing and Urban

16 Development, and sundry independent agencies,

17 boards, commissions, corporations, and offices.

18 ø‘‘(7) Energy and water development.

19 ø‘‘(8) Foreign assistance and related programs.

20 ø‘‘(9) The Department of the Interior and re21 lated agencies.

22 ø‘‘(10) Military construction.

23 ø‘‘(11) The Department of Transportation and

24 related agencies.
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1 ø‘‘(12) The Treasury Department, the U.S.

2 Postal Service, the Executive Office of the President,

3 and certain independent agencies.

4 ø‘‘(13) The legislative branch.’’.

5 ø(b) CONFORMING AMENDMENT.—Section 202(e)(3)

6 of the Congressional Budget Act of 1974 is amended by

7 inserting ‘‘and on or before September 30’’ before ‘‘of each

8 year’’.

9 ø(c) CHAPTER ANALYSIS.—The analysis of chapter

10 13 of title 31, United States Code, is amended by inserting

11 after the item relating to section 1310 the following new

12 item:

ø‘‘1311. Continuing appropriations.’’.

13 ø(d) EFFECT OF AMENDMENTS.—Nothing in the

14 amendments made by this subsection shall be construed

15 to affect Government obligations mandated by other law,

16 including obligations with respect to social security, medi17 care, and medicaid.¿

18 TITLE VII—BUDGETING IN AN

19 ERA OF SURPLUSES

20 SEC. 701. PAYGO REQUIREMENTS AND THE ON-BUDGET

21 SURPLUS.

22 (a) Section 252(a) of the Balanced Budget and

23 Emergency Deficit Control Act of 1985 is amended to

24 read as follows:
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1 ‘‘(a) PURPOSE.—The purpose of this section is to as2 sure that direct spending or receipts legislation does not

3 increase the deficit or exceed the on-budget surplus.’’.

4 (b) SEQUESTRATION.—(1) Section 252(b)(1) of the

5 Balanced Budget and Emergency Deficit Control Act of

6 1985 is amended by inserting ‘‘minus the amount for the

7 budget year, if any, estimated under paragraph (3)’’ after

8 ‘‘as calculated under paragraph (2)’’.

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

10 at the end the following new paragraph:

11 ‘‘(3) ESTIMATE OF ON-BUDGET SURPLUS.—

12 OMB estimates for the budget year of the excess of

13 receipts over outlays (if any) as set forth in the

14 OMB sequestration update report as calculated pur15 suant to section 254(c)(3). These estimates shall not

16 include outlays and receipts of the Federal Old-Age

17 and Survivors Insurance Trust Fund, the Federal

18 Disability Insurance Trust Fund, or any other off19 budget entity.’’.

20 (c) CLARIFICATION OF EXISTING LAW.—Section 252

21 of the Balanced Budget and Emergency Deficit Control

22 Act of 1985 (as amended by section 412(b)) is further

23 amended by adding at the end the following new sub24 section:
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1 ‘‘(f) MEANING OF NET DEFICIT INCREASE.—For

2 purposes of this section, a net deficit is the amount by

3 which decreases in revenues plus increases in outlays ex4 ceeds increases in revenues plus decreases in outlays.’’.

5 (d) REPORTS.—

6 (1) PREVIEW.—Section 254(c)(3) of the Bal7 anced Budget and Emergency Deficit Control Act of

8 1985 is amended by adding at the end the following

9 new subparagraph:

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

11 outlays for the budget year (if any) (assuming

12 the levels appropriated if all regular appropria13 tions (or a continuing appropriation) are en14 acted minus any amounts sequestered for that

15 year under section 251, but if that is not the

16 case, then assuming compliance with the ad17 justed discretionary spending limits set forth in

18 section 251(c)) (but if no such limits are in ef19 fect for such year, then assume compliance with

20 such limits for the last fiscal year for which

21 such limits were in effect) without taking into

22 account the effect of direct spending and re23 ceipts legislation for such year calculated under

24 section 252(d) enacted after the date of enact25 ment of this subparagraph.’’.
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1 (2) FINAL.—Section 254(f)(3) of the Balanced

2 Budget and Emergency Deficit Control Act of 1985

3 is amended by adding at the end the following new

4 sentence: ‘‘Notwithstanding subsection (j), actual

5 levels of enacted discretionary appropriations or up6 to-date adjusted discretionary spending limits (but if

7 no such limits are in effect for such year, then as8 sume such limits for the last fiscal year for which

9 such limits were in effect), as applicable, shall be

10 used in the final pay-as-you go report regarding in11 formation required by subsection (c)(3)(D) to be in12 cluded in the pay-as-you-go sequestration preview re13 port.’’.

14 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

16 ‘‘Comprehensive Budget Process Reform Act of 1999’’.

17 (b) TABLE OF CONTENTS.—

Sec. 1. Short title; table of contents.

Sec. 2. Purpose.

Sec. 3. Effective date.

Sec. 4. Declaration of purposes for the Budget Act.

TITLE I—BUDGET WITH FORCE OF LAW

Sec. 101. Purposes.

Sec. 102. The timetable.

Sec. 103. Annual joint resolutions on the budget.

Sec. 104. Budget required before spending bills may be considered; fall-back procedures if President vetoes joint budget resolution.

Sec. 105. Conforming amendments to effectuate joint resolutions on the budget.

TITLE II—RESERVE FUND FOR EMERGENCIES

Sec. 201. Purpose.

Sec. 202. Repeal of adjustments for emergencies.

Sec. 203. OMB emergency criteria.
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Sec. 204. Development of guidelines for application of emergency definition.

Sec. 205. Reserve fund for emergencies in President’s budget.

Sec. 206. Adjustments and reserve fund for emergencies in joint budget

resolutions.

Sec. 207. Application of section 306 to emergencies in excess of amounts in

reserve fund.

Sec. 208. Up-to-date tabulations.

Sec. 209. Prohibition on amendments to emergency reserve fund.

Sec. 210. Effective date.

TITLE III—ENFORCEMENT OF BUDGETARY DECISIONS

Sec. 301. Purposes.

Subtitle A—Application of Points of Order to Unreported Legislation

Sec. 311. Application of Budget Act points of order to unreported legislation.

Subtitle B—Compliance with Budget Resolution

Sec. 321. Budget compliance statements.

Subtitle C—Justification for Budget Act Waivers

Sec. 331. Justification for Budget Act waivers in the House of Representatives.

Subtitle D—CBO Scoring of Conference Reports

Sec. 341. CBO scoring of conference reports.

TITLE IV—ACCOUNTABILITY FOR FEDERAL SPENDING

Sec. 401. Purposes.

Subtitle A—Limitations on Direct Spending

Sec. 411. Fixed-year authorizations required for new programs.

Sec. 412. Amendments to subject new direct spending to annual appropriations.

Subtitle B—Enhanced Congressional Oversight Responsibilities

Sec. 421. Ten-year congressional review requirement of permanent budget

authority.

Sec. 422. Justifications of direct spending.

Sec. 423. Survey of activity reports of House committees.

Sec. 424. Continuing study of additional budget process reforms.

Sec. 425. GAO reports.

Subtitle C—Strengthened Accountability

Sec. 431. Ten-year CBO estimates.

Sec. 432. Repeal of rule XXIII of the Rules of the House of Representatives.

TITLE V—BUDGETING FOR UNFUNDED LIABILITIES AND OTHER

LONG-TERM OBLIGATIONS

Sec. 501. Purposes.
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Subtitle A—Budgetary Treatment of Federal Insurance Programs

Sec. 511. Federal insurance programs.

Subtitle B—Reports on Long-Term Budgetary Trends

Sec. 521. Reports on long-term budgetary trends.

TITLE VI—BASELINE, BYRD RULE, LOCK-BOX, AND AUTOMATIC

CONTINUING RESOLUTION

Sec. 601. Purpose.

Subtitle A—The Baseline

Sec. 611. The President’s budget.

Sec. 612. The congressional budget.

Sec. 613. Congressional Budget Office reports to committees.

Sec. 614. Outyear assumptions for discretionary spending.

Subtitle B—The Byrd Rule

Sec. 621. Limitation on Byrd rule.

Subtitle C—Spending Accountability Lock-Box

Sec. 631. Short title.

Sec. 632. Spending accountability lock-box ledger.

Sec. 633. Downward adjustment of section 302(a) allocations and section 302(b)

suballocations.

Sec. 634. Periodic reporting of ledger statements.

Sec. 635. Downward adjustment of discretionary spending limits.

Subtitle D—Automatic Continuing Resolution

Sec. 641. Automatic continuing resolution.

TITLE VII—BUDGETING IN AN ERA OF SURPLUSES

Sec. 701. Paygo requirements and the on-budget surplus.

1 SEC. 2. PURPOSE.

2 The purposes of this Act are to—

3 (1) give the budget the force of law;

4 (2) budget for emergencies;

5 (3) strengthen enforcement of budgetary deci6 sions;

7 (4) increase accountability for Federal spending;
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1 (5) display the unfunded liabilities of Federal

2 insurance programs;

3 (6) mitigate the bias in the budget process to4 ward higher spending; and

5 (7) modify paygo requirements when there is an

6 on-budget surplus.

7 SEC. 3. EFFECTIVE DATE.

8 Except as otherwise specifically provided, this Act and

9 the amendments made by this Act shall become effective on

10 the date of enactment of this Act and shall apply with re11 spect to fiscal years beginning after September 30, 2000.

12 SEC. 4. DECLARATION OF PURPOSES FOR THE BUDGET

13 ACT.

14 Paragraphs (1) and (2) of section 2 of the Congres15 sional Budget and Impoundment Control Act of 1974 are

16 amended to read as follows:

17 ‘‘(1) to assure effective control over the budgetary

18 process;

19 ‘‘(2) to facilitate the determination each year of

20 the appropriate level of Federal revenues and expendi21 tures by the Congress and the President;’’.

22 TITLE I—BUDGET WITH FORCE

23 OF LAW

24 SEC. 101. PURPOSES.

25 The purposes of this title are to—
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1 (1) focus initial budgetary deliberations on ag2 gregate levels of Federal spending and taxation;

3 (2) encourage cooperation between Congress and

4 the President in developing overall budgetary prior5 ities; and

6 (3) reach budgetary decisions early in the legis7 lative cycle.

8 SEC. 102. THE TIMETABLE.

9 Section 300 of the Congressional Budget Act of 1974

10 is amended to read as follows:

11 ‘‘TIMETABLE

12 ‘‘SEC. 300. The timetable with respect to the congres13 sional budget process for any fiscal year is as follows:

‘‘On or before: Action to be completed:

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

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

report to Budget Committees.

Not later than 6 weeks after President submits budget.Committees submit views and estimates to Budget Committees.

April 1 .............................................. Senate Budget Committee reports joint

resolution on the budget.

April 15 ............................................ Congress completes action on joint resolution on the budget.

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

bill.

June 15 ............................................. Congress completes action on reconciliation legislation.

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

October 1 ........................................... Fiscal year begins.’’.

14 SEC. 103. ANNUAL JOINT RESOLUTIONS ON THE BUDGET.

15 (a) CONTENT OF ANNUAL JOINT RESOLUTIONS ON THE

16 BUDGET.—Section 301(a) of the Congressional Budget Act

17 of 1974 is amended as follows:
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1 (1) Strike paragraph (4) and insert the following

2 new paragraph:

3 ‘‘(4) subtotals of new budget authority and out4 lays for nondefense discretionary spending, defense

5 discretionary spending, direct spending (excluding in6 terest), and interest; and for fiscal years to which the

7 amendments made by title II of the Comprehensive

8 Budget Process Reform Act of 1999 apply, subtotals

9 of new budget authority and outlays for emer10 gencies;’’.

11 (2) Strike the last sentence of such subsection.

12 (b) ADDITIONAL MATTERS IN JOINT RESOLUTION.—

13 Section 301(b) of the Congressional Budget Act of 1974 is

14 amended as follows:

15 (1) Strike paragraphs (2), (4), and (6) through

16 (9).

17 (2) After paragraph (1), insert the following new

18 paragraph:

19 ‘‘(2) if submitted by the Committee on Ways and

20 Means of the House of Representatives or the Com21 mittee on Finance of the Senate to the Committee on

22 the Budget of that House of Congress, amend section

23 3101 of title 31, United States Code, to change the

24 statutory limit on the public debt;’’.
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1 (3) After paragraph (3), insert the following new

2 paragraph:

3 ‘‘(4) require such other congressional procedures,

4 relating to the budget, as may be appropriate to carry

5 out the purposes of this Act;’’; and

6 (4) After paragraph (5), insert the following new

7 paragraph:

8 ‘‘(6) set forth procedures in the Senate whereby

9 committee allocations, aggregates, and other levels can

10 be revised for legislation if that legislation would not

11 increase the deficit, or would not increase the deficit

12 when taken with other legislation enacted after the

13 adoption of the resolution, for the first fiscal year or

14 the total period of fiscal years covered by the resolu15 tion.’’.

16 (c) REQUIRED CONTENTS OF REPORT.—Section

17 301(e)(2) of the Congressional Budget Act of 1974 is amend18 ed as follows:

19 (1) Redesignate subparagraphs (A), (B), (C),

20 (D), (E), and (F) as subparagraphs (B), (C), (E),

21 (F), (H), and (I), respectively.

22 (2) Before subparagraph (B) (as redesignated),

23 insert the following new subparagraph:

24 ‘‘(A) new budget authority and outlays for

25 each major functional category, based on alloca-
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1 tions of the total levels set forth pursuant to sub2 section (a)(1);’’.

3 (3) In subparagraph (C) (as redesignated), strike

4 ‘‘mandatory’’ and insert ‘‘direct spending’’.

5 (4) After subparagraph (C) (as redesignated), in6 sert the following new subparagraph:

7 ‘‘(D) a measure, as a percentage of gross do8 mestic product, of total outlays, total Federal

9 revenues, the surplus or deficit, and new outlays

10 for nondefense discretionary spending, defense

11 spending, and direct spending as set forth in

12 such resolution;’’.

13 (5) After subparagraph (F) (as redesignated), in14 sert the following new subparagraph:

15 ‘‘(G) if the joint resolution on the budget in16 cludes any allocation to a committee (other than

17 the Committee on Appropriations) of levels in

18 excess of current law levels, a justification for

19 not subjecting any program, project, or activity

20 (for which the allocation is made) to annual dis21 cretionary appropriations;’’.

22 (d) ADDITIONAL CONTENTS OF REPORT.—Section

23 301(e)(3) of the Congressional Budget Act of 1974 is amend24 ed as follows:
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1 (1) Redesignate subparagraphs (A) and (B) as

2 subparagraphs (B) and (C), respectively, strike sub3 paragraphs (C) and (D), and redesignate subpara4 graph (E) as subparagraph (D).

5 (2) Before subparagraph (B), insert the following

6 new subparagraph:

7 ‘‘(A) reconciliation directives described in

8 section 310;’’.

9 (e) PRESIDENT’S BUDGET SUBMISSION TO THE CON10 GRESS.—(1) The first two sentences of section 1105(a) of

11 title 31, United States Code, are amended to read as follows:

12 ‘‘On or after the first Monday in January but not later

13 than the first Monday in February of each year the Presi14 dent shall submit a budget of the United States Government

15 for the following fiscal year which shall set forth the fol16 lowing levels:

17 ‘‘(A) totals of new budget authority and outlays;

18 ‘‘(B) total Federal revenues and the amount, if

19 any, by which the aggregate level of Federal revenues

20 should be increased or decreased by bills and resolu21 tions to be reported by the appropriate committees;

22 ‘‘(C) the surplus or deficit in the budget;

23 ‘‘(D) subtotals of new budget authority and out24 lays for nondefense discretionary spending, defense

25 discretionary spending, direct spending, and interest;
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1 and for fiscal years to which the amendments made

2 by title II of the Comprehensive Budget Process Re3 form Act of 1999 apply, subtotals of new budget au4 thority and outlays for emergencies; and

5 ‘‘(E) the public debt.

6 Each budget submission shall include a budget message and

7 summary and supporting information and, as a separately

8 delineated statement, the levels required in the preceding

9 sentence for at least each of the 9 ensuing fiscal years.’’.

10 (2) The third sentence of section 1105(a) of title 31,

11 United States Code, is amended by inserting ‘‘submission’’

12 after ‘‘budget’’.

13 (f) LIMITATION ON CONTENTS OF BUDGET RESOLU14 TIONS.—Section 305 of the Congressional Budget Act of

15 1974 is amended by adding at the end the following new

16 subsection:

17 ‘‘(e) LIMITATION ON CONTENTS.—(1) It shall not be

18 in order in the House of Representatives or in the Senate

19 to consider any joint resolution on the budget or any

20 amendment thereto or conference report thereon that con21 tains any matter referred to in paragraph (2).

22 ‘‘(2) Any joint resolution on the budget or any amend23 ment thereto or conference report thereon that contains any

24 matter not permitted in section 301(a) or (b) shall not be

25 treated in the House of Representatives or the Senate as
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1 a budget resolution under subsection (a) or (b) or as a con2 ference report on a budget resolution under subsection (c)

3 of this section.’’.

4 SEC. 104. BUDGET REQUIRED BEFORE SPENDING BILLS

5 MAY BE CONSIDERED; FALL-BACK PROCE6 DURES IF PRESIDENT VETOES JOINT BUDGET

7 RESOLUTION.

8 (a) AMENDMENTS TO SECTION 302.—Section 302(a)

9 of the Congressional Budget Act of 1974 is amended by

10 striking paragraph (5).

11 (b) AMENDMENTS TO SECTION 303 AND CONFORMING

12 AMENDMENTS.—(1) Section 303 of the Congressional Budg13 et Act of 1974 is amended—

14 (A) in subsection (b), by striking paragraph (2),

15 by inserting ‘‘or’’ at the end of paragraph (1), and

16 by redesignating paragraph (3) as paragraph (2);

17 and

18 (B) by striking its section heading and inserting

19 the following new section heading: ‘‘CONSIDERATION

20 OF BUDGET-RELATED LEGISLATION BEFORE BUDGET

21 BECOMES LAW’’.

22 (2) Section 302(g)(1) of the Congressional Budget Act

23 of 1974 is amended by striking ‘‘and, after April 15, section

24 303(a)’’.
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1 (3)(A) Section 904(c)(1) of the Congressional Budget

2 Act of 1974 is amended by inserting ‘‘303(a),’’ before

3 ‘‘305(b)(2),’’.

4 (B) Section 904(d)(2) of the Congressional Budget Act

5 of 1974 is amended by inserting ‘‘303(a),’’ before

6 ‘‘305(b)(2),’’.

7 (c) EXPEDITED PROCEDURES UPON VETO OF JOINT

8 RESOLUTION ON THE BUDGET.—(1) Title III of the Con9 gressional Budget Act of 1974 is amended by adding after

10 section 315 the following new section:

11 ‘‘EXPEDITED PROCEDURES UPON VETO OF JOINT

12 RESOLUTION ON THE BUDGET

13 ‘‘SEC. 316. (a) SPECIAL RULE.—If the President ve14 toes a joint resolution on the budget for a fiscal year, the

15 majority leader of the House of Representatives or Senate

16 (or his designee) may introduce a concurrent resolution on

17 the budget or joint resolution on the budget for such fiscal

18 year. If the Committee on the Budget of either House fails

19 to report such concurrent or joint resolution referred to it

20 within five calendar days (excluding Saturdays, Sundays,

21 or legal holidays except when that House of Congress is in

22 session) after the date of such referral, the committee shall

23 be automatically discharged from further consideration of

24 such resolution and such resolution shall be placed on the

25 appropriate calendar.
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1 ‘‘(b) PROCEDURE IN THE HOUSE OF REPRESENTA2 TIVES AND THE SENATE.—

3 ‘‘(1) Except as provided in paragraph (2), the

4 provisions of section 305 for the consideration in the

5 House of Representatives and in the Senate of joint

6 resolutions on the budget and conference reports there7 on shall also apply to the consideration of concurrent

8 resolutions on the budget introduced under subsection

9 (a) and conference reports thereon.

10 ‘‘(2) Debate in the Senate on any concurrent res11 olution on the budget or joint resolution on the budget

12 introduced under subsection (a), and all amendments

13 thereto and debatable motions and appeals in connec14 tion therewith, shall be limited to not more than 10

15 hours and in the House such debate shall be limited

16 to not more than 3 hours.

17 ‘‘(c) CONTENTS OF CONCURRENT RESOLUTIONS.—Any

18 concurrent resolution on the budget introduced under sub19 section (a) shall be in compliance with section 301.

20 ‘‘(d) EFFECT OF CONCURRENT RESOLUTION ON THE

21 BUDGET.—Notwithstanding any other provision of this

22 title, whenever a concurrent resolution on the budget de23 scribed in subsection (a) is agreed to, then the aggregates,

24 allocations, and reconciliation directives (if any) contained

25 in the report accompanying such concurrent resolution or
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1 in such concurrent resolution shall be considered to be the

2 aggregates, allocations, and reconciliation directives for all

3 purposes of sections 302, 303, and 311 for the applicable

4 fiscal years and such concurrent resolution shall be deemed

5 to be a joint resolution for all purposes of this title and

6 the Rules of the House of Representatives and any reference

7 to the date of enactment of a joint resolution on the budget

8 shall be deemed to be a reference to the date agreed to when

9 applied to such concurrent resolution.’’.

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

11 the Congressional Budget and Impoundment Control Act of

12 1974 is amended by inserting after the item relating to sec13 tion 315 the following new item:

‘‘Sec. 316. Expedited procedures upon veto of joint resolution on the budget.’’.

14 SEC. 105. CONFORMING AMENDMENTS TO EFFECTUATE

15 JOINT RESOLUTIONS ON THE BUDGET.

16 (a) CONFORMING AMENDMENTS TO THE CONGRES17 SIONAL BUDGET AND IMPOUNDMENT CONTROL ACT OF

18 1974.—(1)(A) Sections 301, 302, 303, 305, 308, 310, 311,

19 312, 314, 405, and 904 of the Congressional Budget Act

20 of 1974 (2 U.S.C. 621 et seq.) are amended by striking ‘‘con21 current’’ each place it appears and by inserting ‘‘joint’’.

22 (B)(i) Sections 302(d), 302(g), 308(a)(1)(A), and

23 310(d)(1) of the Congressional Budget Act of 1974 are

24 amended by striking ‘‘most recently agreed to concurrent

25 resolution on the budget’’ each place it occurs and inserting
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1 ‘‘most recently enacted joint resolution on the budget or

2 agreed to concurrent resolution on the budget (as applica3 ble)’’.

4 (ii) The section heading of section 301 is amended by

5 striking ‘‘adoption of concurrent resolution’’ and inserting

6 ‘‘joint resolutions’’;

7 (iii) Section 304 of such Act is amended to read as

8 follows:

9 ‘‘PERMISSIBLE REVISIONS OF BUDGET RESOLUTIONS

10 ‘‘SEC. 304. At any time after the joint resolution on

11 the budget for a fiscal year has been enacted pursuant to

12 section 301, and before the end of such fiscal year, the two

13 Houses and the President may enact a joint resolution on

14 the budget which revises or reaffirms the joint resolution

15 on the budget for such fiscal year most recently enacted.

16 If a concurrent resolution on the budget has been agreed

17 to pursuant to section 316, then before the end of such fiscal

18 year, the two Houses may adopt a concurrent resolution

19 on the budget which revises or reaffirms the concurrent reso20 lution on the budget for such fiscal year most recently

21 agreed to.’’.

22 (C) Sections 302, 303, 310, and 311, of such Act are

23 amended by striking ‘‘agreed to’’ each place it appears and

24 by inserting ‘‘enacted’’.

25 (2)(A) Paragraph (4) of section 3 of the Congressional

26 Budget and Impoundment Control Act of 1974 is amended
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1 by striking ‘‘concurrent’’ each place it appears and by in2 serting ‘‘joint’’.

3 (B) The table of contents set forth in section 1(b) of

4 such Act is amended—

5 (i) in the item relating to section 301, by strik6 ing ‘‘adoption of concurrent resolution’’ and inserting

7 ‘‘joint resolutions’’;

8 (ii) by striking the item relating to section 303

9 and inserting the following:

‘‘Sec. 303. Consideration of budget-related legislation before budget becomes law.’’;

10 (iii) in the item relating to section 304, by strik11 ing ‘‘concurrent’’ and inserting ‘‘budget’’ the first

12 place it appears and by striking ‘‘on the budget’’; and

13 (iv) by striking ‘‘concurrent’’ and inserting

14 ‘‘joint’’ in the item relating to section 305.

15 (b) CONFORMING AMENDMENTS TO THE RULES OF

16 THE HOUSE OF REPRESENTATIVES.—(1) Clauses 1(e)(1),

17 4(a)(4), 4(b)(2), 4(f)(1)(A), and 4(f)(2) of rule X, clause 10

18 of rule XVIII, and clause 10 of rule XX of the Rules of

19 the House of Representatives are amended by striking ‘‘con20 current’’ each place it appears and inserting ‘‘joint’’.

21 (2) Clause 10 of rule XVIII of the Rules of the House

22 of Representatives is amended—

23 (A) in paragraph (b)(2), by striking ‘‘(5)’’ and

24 inserting ‘‘(6)’’; and

25 (B) by striking paragraph (c).
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1 (c) CONFORMING AMENDMENTS TO THE BALANCED

2 BUDGET AND EMERGENCY DEFICIT CONTROL ACT OF

3 1985.—Section 258C(b)(1) of the Balanced Budget and

4 Emergency Deficit Control Act of 1985 (2 U.S.C.

5 907d(b)(1)) is amended by striking ‘‘concurrent’’ and in6 serting ‘‘joint’’.

7 (d) CONFORMING AMENDMENTS TO SECTION 310 RE8 GARDING RECONCILIATION DIRECTIVES.—(1) The side

9 heading of section 310(a) of the Congressional Budget Act

10 of 1974 (as amended by section 105(a)) is further amended

11 by inserting ‘‘JOINT EXPLANATORY STATEMENT ACCOM12 PANYING CONFERENCE REPORT ON’’ before ‘‘JOINT’’.

13 (2) Section 310(a) of such Act is amended by striking

14 ‘‘A’’ and inserting ‘‘The joint explanatory statement accom15 panying the conference report on a’’.

16 (3) The first sentence of section 310(b) of such Act is

17 amended by striking ‘‘If’’ and inserting ‘‘If the joint explan18 atory statement accompanying the conference report on’’.

19 (4) Section 310(c)(1) of such Act is amended by insert20 ing ‘‘the joint explanatory statement accompanying the con21 ference report on’’ after ‘‘pursuant to’’.

22 (5) Subsection (g) of section 310 of such Act is re23 pealed.

24 (e) CONFORMING AMENDMENTS TO SECTION 3 RE25 GARDING DIRECT SPENDING.—Section 3 of the Congres-
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1 sional Budget and Impoundment Control Act of 1974 is

2 amended by adding at the end the following new paragraph:

3 ‘‘(11) The term ‘direct spending’ has the mean4 ing given to such term in section 250(c)(8) of the Bal5 anced Budget and Emergency Deficit Control Act of

6 1985.’’.

7 (f) TECHNICAL AMENDMENT REGARDING REVISED

8 SUBALLOCATIONS.—Section 314(d) of the Congressional

9 Budget Act of 1974 is amended by—

10 (1) striking ‘‘REPORTING’’ in the side heading,

11 by inserting ‘‘the chairmen of’’ before ‘‘the Commit12 tees’’, and by striking ‘‘may report’’ and inserting

13 ‘‘shall make and have published in the Congressional

14 Record’’; and

15 (2) adding at the end the following new sentence:

16 ‘‘For purposes of considering amendments (other than

17 for amounts for emergencies covered by subsection

18 (b)(1)), suballocations shall be deemed to be so ad19 justed.’’.

20 TITLE II—RESERVE FUND FOR

21 EMERGENCIES

22 SEC. 201. PURPOSE.

23 The purposes of this title are to—

24 (1) develop budgetary and fiscal procedures for

25 emergencies;
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1 (2) subject spending for emergencies to budgetary

2 procedures and controls; and

3 (3) establish criteria for determining compliance

4 with emergency requirements.

5 SEC. 202. REPEAL OF ADJUSTMENTS FOR EMERGENCIES.

6 (a) DISCRETIONARY SPENDING LIMITS.—(1) Section

7 251(b)(2)(A) of the Balanced Budget and Emergency Def8 icit Control Act of 1985 is repealed.

9 (2) Such section 251(b)(2) is further amended by redes10 ignating subparagraphs (B) through (G) as subparagraphs

11 (A) through (F).

12 (b) DIRECT SPENDING.—Sections 252(e) and

13 252(d)(4)(B) of the Balanced Budget and Emergency Def14 icit Control Act of 1985 are repealed.

15 (c) EMERGENCY DESIGNATION.—Clause 2 of rule XXI

16 of the Rules of the House of Representatives is amended by

17 repealing paragraph (e) and by redesignating paragraph

18 (f) as paragraph (e).

19 (d) AMOUNT OF ADJUSTMENTS.—Section 314(b) of the

20 Congressional Budget Act of 1974 is amended by striking

21 paragraph (1) and by redesignating paragraphs (2)

22 through (6) as paragraphs (1) through (5), respectively.

23 SEC. 203. OMB EMERGENCY CRITERIA.

24 Section 3 of the Congressional Budget and Impound25 ment Control Act of 1974 (as amended by section 105(e))
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1 is further amended by adding at the end the following new

2 paragraph:

3 ‘‘(12)(A) The term ‘emergency’ means a situation

4 that—

5 ‘‘(i) requires new budget authority and out6 lays (or new budget authority and the outlays

7 flowing therefrom) for the prevention or mitiga8 tion of, or response to, loss of life or property, or

9 a threat to national security; and

10 ‘‘(ii) is unanticipated.

11 ‘‘(B) As used in subparagraph (A), the term ‘un12 anticipated’ means that the situation is—

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

14 into being or not building up over time;

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

16 compelling need requiring immediate action;

17 ‘‘(iii) unforeseen, which means not predicted

18 or anticipated as an emerging need; and

19 ‘‘(iv) temporary, which means not of a per20 manent duration.’’.

21 SEC. 204. DEVELOPMENT OF GUIDELINES FOR APPLICA22 TION OF EMERGENCY DEFINITION.

23 Not later than 5 months after the date of enactment

24 of this Act, the chairmen of the Committees on the Budget

25 (in consultation with the President) shall, after consulting
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1 with the chairmen of the Committees on Appropriations

2 and applicable authorizing committees of their respective

3 Houses and the Directors of the Congressional Budget Office

4 and the Office of Management and Budget, jointly publish

5 in the Congressional Record guidelines for application of

6 the definition of emergency set forth in section 3(12) of the

7 Congressional Budget and Impoundment Control Act of

8 1974.

9 SEC. 205. RESERVE FUND FOR EMERGENCIES IN PRESI10 DENT’S BUDGET.

11 Section 1105(f) of title 31, United States Code is

12 amended by adding at the end the following new sentences:

13 ‘‘Such budget submission shall also comply with the re14 quirements of section 317(b) of the Congressional Budget

15 Act of 1974 and, in the case of any budget authority re16 quested for an emergency, such submission shall include a

17 detailed justification of why such emergency is an emer18 gency within the meaning of section 3(12) of the Congres19 sional Budget Act of 1974.’’.

20 SEC. 206. ADJUSTMENTS AND RESERVE FUND FOR EMER21 GENCIES IN JOINT BUDGET RESOLUTIONS.

22 (a) EMERGENCIES.—Title III of the Congressional

23 Budget Act of 1974 (as amended by section 104(c)) is fur24 ther amended by adding at the end the following new sec25 tion:
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1 ‘‘EMERGENCIES

2 ‘‘SEC. 317. (a) ADJUSTMENTS.—

3 ‘‘(1) IN GENERAL.—After the reporting of a bill

4 or joint resolution or the submission of a conference

5 report thereon that provides budget authority for any

6 emergency as identified pursuant to subsection (d)—

7 ‘‘(A) the chairman of the Committee on the

8 Budget of the House of Representatives or the

9 Senate shall determine and certify, pursuant to

10 the guidelines referred to in section 204 of the

11 Comprehensive Budget Process Reform Act of

12 1999, the portion (if any) of the amount so spec13 ified that is for an emergency within the mean14 ing of section 3(12); and

15 ‘‘(B) such chairman shall make the adjust16 ment set forth in paragraph (2) for the amount

17 of new budget authority (or outlays) in that

18 measure and the outlays flowing from that budg19 et authority.

20 ‘‘(2) MATTERS TO BE ADJUSTED.—The adjust21 ments referred to in paragraph (1) are to be made to

22 the allocations made pursuant to the appropriate

23 joint resolution on the budget pursuant to section

24 302(a) and shall be in an amount not to exceed the
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1 amount reserved for emergencies pursuant to the re2 quirements of subsection (b).

3 ‘‘(b) RESERVE FUND FOR EMERGENCIES.—

4 ‘‘(1) AMOUNTS.—The amount set forth in the re5 serve fund for emergencies for budget authority and

6 outlays for a fiscal year pursuant to section 301(a)(4)

7 shall equal—

8 ‘‘(A) the average of the enacted levels of

9 budget authority for emergencies in the 5 fiscal

10 years preceding the current year; and

11 ‘‘(B) the average of the levels of outlays for

12 emergencies in the 5 fiscal years preceding the

13 current year flowing from the budget authority

14 referred to in subparagraph (A), but only in the

15 fiscal year for which such budget authority first

16 becomes available for obligation.

17 ‘‘(2) AVERAGE LEVELS.—For purposes of para18 graph (1), the amount used for a fiscal year to cal19 culate the average of the enacted levels when one or

20 more of such 5 preceding fiscal years is any of fiscal

21 years 1994 through 1998 is as follows: the amount of

22 enacted levels of budget authority and the amount of

23 new outlays flowing therefrom for emergencies, but

24 only in the fiscal year for which such budget author25 ity first becomes available for obligation for each of
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1 such 5 fiscal years, which shall be determined by the

2 Committees on the Budget of the House of Representa3 tives and the Senate after receipt of a report on such

4 matter transmitted to such committees by the Director

5 of the Congressional Budget Office 6 months after the

6 date of enactment of this section and thereafter in

7 February of each calendar year.

8 ‘‘(c) EMERGENCIES IN EXCESS OF AMOUNTS IN RE9 SERVE FUND.—Whenever the Committee on Appropriations

10 or any other committee reports any bill or joint resolution

11 that provides budget authority for any emergency and the

12 report accompanying that bill or joint resolution, pursuant

13 to subsection (d), identifies any provision that increases

14 outlays or provides budget authority (and the outlays flow15 ing therefrom) for such emergency, the enactment of which

16 would cause—

17 ‘‘(1) in the case of the Committee on

18 Approrpiations, the total amount of budget authority

19 or outlays provided for emergencies for the budget

20 year; or

21 ‘‘(2) in the case of any other committee, the total

22 amount of budget authority or outlays provided for

23 emergencies for the budget year or the total of the fis24 cal years;
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1 in the joint resolution on the budget (pursuant to section

2 301(a)(4)) to be exceeded:

3 ‘‘(A) Such bill or joint resolution shall be re4 ferred to the Committee on the Budget of the House

5 or the Senate, as the case may be, with instructions

6 to report it without amendment, other than that spec7 ified in subparagraph (B), within 5 legislative days

8 of the day in which it is reported from the origi9 nating committee. If the Committee on the Budget of

10 either House fails to report a bill or joint resolution

11 referred to it under this subparagraph within such 5-

12 day period, the committee shall be automatically dis13 charged from further consideration of such bill or

14 joint resolution and such bill or joint resolution shall

15 be placed on the appropriate calendar.

16 ‘‘(B) An amendment to such a bill or joint reso17 lution referred to in this subsection shall only consist

18 of an exemption from section 251 or 252 (as applica19 ble) of the Balanced Budget and Emergency Deficit

20 Control Act of 1985 of all or any part of the provi21 sions that provide budget authority (and the outlays

22 flowing therefrom) for such emergency if the com23 mittee determines, pursuant to the guidelines referred

24 to in section 204 of the Comprehensive Budget Process
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1 Reform Act of 1999, that such budget authority is for

2 an emergency within the meaning of section 3(12).

3 ‘‘(C) If such a bill or joint resolution is reported

4 with an amendment specified in subaragraph (B) by

5 the Committee on the Budget of the House of Rep6 resentatives or the Senate, then the budget authority

7 and resulting outlays that are the subject of such

8 amendment shall not be included in any determina9 tions under section 302(f) or 311(a) for any bill, joint

10 resolution, amendment, motion, or conference report.

11 ‘‘(d) COMMITTEE NOTIFICATION OF EMERGENCY LEG12 ISLATION.—Whenever the Committee on Appropriations or

13 any other committee of either House (including a committee

14 of conference) reports any bill or joint resolution that pro15 vides budget authority for any emergency, the report accom16 panying that bill or joint resolution (or the joint explana17 tory statement of managers in the case of a conference re18 port on any such bill or joint resolution) shall identify all

19 provisions that provide budget authority and the outlays

20 flowing therefrom for such emergency and include a state21 ment of the reasons why such budget authority meets the

22 definition of an emergency pursuant to the guidelines re23 ferred to in section 204 of the Comprehensive Budget Proc24 ess Reform Act of 1999.’’.
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1 (b) CONFORMING AMENDMENT.—The table of contents

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

3 Impoundment Control Act of 1974 is amended by inserting

4 after the item relating to section 316 the following new item:

‘‘Sec. 317. Emergencies.’’.

5 SEC. 207. APPLICATION OF SECTION 306 TO EMERGENCIES

6 IN EXCESS OF AMOUNTS IN RESERVE FUND.

7 Section 306 of the Congressional Budget Act of 1974

8 is amended by inserting at the end the following new sen9 tence: ‘‘No amendment reported by the Committee on the

10 Budget (or from the consideration of which such committee

11 has been discharged) pursuant to section 317(c) may be

12 amended.’’.

13 SEC. 208. UP-TO-DATE TABULATIONS.

14 Section 308(b)(2) of the Congressional Budget Act of

15 1974 is amended by striking ‘‘and’’ at the end of subpara16 graph (B), by striking the period at the end of subpara17 graph (C) and inserting ‘‘; and’’, and by adding at the end

18 the following new subparagraph:

19 ‘‘(D) shall include an up-to-date tabulation

20 of amounts remaining in the reserve fund for

21 emergencies.’’.

22 SEC. 209. PROHIBITION ON AMENDMENTS TO EMERGENCY

23 RESERVE FUND.

24 (a) POINT OF ORDER.—Section 305 of the Congres25 sional Budget Act of 1974 (as amended by section 103(c))
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1 is further amended by adding at the end the following new

2 subsection:

3 ‘‘(f) POINT OF ORDER REGARDING EMERGENCY RE4 SERVE FUND.—It shall not be in order in the House of Rep5 resentatives or in the Senate to consider an amendment to

6 a joint resolution on the budget which changes the amount

7 of budget authority and outlays set forth in section

8 301(a)(4) for emergency reserve fund.’’.

9 (b) TECHNICAL AMENDMENT.—(1) Section 904(c)(1) of

10 the Congressional Budget Act of 1974 is amended by insert11 ing ‘‘305(e), 305(f),’’ after ‘‘305(c)(4),’’.

12 (2) Section 904(d)(2) of the Congressional Budget Act

13 of 1974 is amended by inserting ‘‘305(e), 305(f),’’ after

14 ‘‘305(c)(4),’’.

15 SEC. 210. EFFECTIVE DATE.

16 The amendments made by this title shall apply to fis17 cal year 2001 and subsequent fiscal years, but such amend18 ments shall take effect only after the enactment of legislation

19 changing or extending for any fiscal year the discretionary

20 spending limits set forth in section 251 of the Balanced

21 Budget and Emergency Deficit Control Act of 1985 or legis22 lation reducing the amount of any sequestration under sec23 tion 252 of such Act by the amount of any reserve for any

24 emergencies.
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1 TITLE III—ENFORCEMENT OF

2 BUDGETARY DECISIONS

3 SEC. 301. PURPOSES.

4 The purposes of this title are to—

5 (1) close loopholes in the enforcement of budget

6 resolutions;

7 (2) require committees of the House of Represent8 atives to include budget compliance statements in re9 ports accompanying all legislation; and

10 (3) require committees of the House of Represent11 atives to justify the need for waivers of the Congres12 sional Budget Act of 1974;

13 (4) provide cost estimates of conference reports.

14 Subtitle A—Application of Points of

15 Order to Unreported Legislation

16 SEC. 311. APPLICATION OF BUDGET ACT POINTS OF ORDER

17 TO UNREPORTED LEGISLATION.

18 (a) Section 315 of the Congressional Budget Act of

19 1974 is amended by striking ‘‘reported’’ the first place it

20 appears.

21 (b) Section 303(b) of the Congressional Budget Act of

22 1974 (as amended by section 104(b)(1)) is further

23 amended—

24 (1) in paragraph (1), by striking ‘‘(A)’’ and by

25 redesignating subparagraph (B) as paragraph (2)
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1 and by striking the semicolon at the end of such new

2 paragraph (2) and inserting a period; and

3 (2) by striking paragraph (2) (as redesignated

4 by such section 104(b)(1)).

5 Subtitle B—Compliance with

6 Budget Resolution

7 SEC. 321. BUDGET COMPLIANCE STATEMENTS.

8 Clause 3(d) of rule XIII of the Rules of the House of

9 Representatives is amended by adding at the end the fol10 lowing new subparagraph:

11 ‘‘(4) A budget compliance statement prepared by

12 the chairman of the Committee on the Budget, if

13 timely submitted prior to the filing of the report,

14 which shall include assessment by such chairman as

15 to whether the bill or joint resolution complies with

16 the requirements of sections 302, 303, 306, 311, and

17 401 of the Congressional Budget Act of 1974 and may

18 include the budgetary implications of that bill or

19 joint resolution under section 251 or 252 of the Bal20 anced Budget and Emergency Deficit Control Act of

21 1985, as applicable.’’.
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1 Subtitle C—Justification for Budget

2 Act Waivers

3 SEC. 331. JUSTIFICATION FOR BUDGET ACT WAIVERS IN

4 THE HOUSE OF REPRESENTATIVES.

5 Clause 6 of rule XIII of the Rules of the House of Rep6 resentatives is amended by adding at the end the following

7 new paragraph:

8 ‘‘(h) It shall not be in order to consider any resolution

9 from the Committee on Rules for the consideration of any

10 reported bill or joint resolution which waives section 302,

11 303, 311, or 401 of the Congressional Budget Act of 1974,

12 unless the report accompanying such resolution includes a

13 description of the provision proposed to be waived, an iden14 tification of the section being waived, the reasons why such

15 waiver should be granted, and an estimated cost of the pro16 visions to which the waiver applies.’’.

17 Subtitle D—CBO Scoring of

18 Conference Reports

19 SEC. 341. CBO SCORING OF CONFERENCE REPORTS.

20 (a) The first sentence of section 402 of the Congres21 sional Budget Act of 1974 is amended as follows:

22 (1) Insert ‘‘or conference report thereon,’’ before

23 ‘‘and submit’’.
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1 (2) In paragraph (1), strike ‘‘bill or resolution’’

2 and insert ‘‘bill, joint resolution, or conference re3 port’’.

4 (3) At the end of paragraph (2) strike ‘‘and’’, at

5 the end of paragraph (3) strike the period and insert

6 ‘‘; and’’, and after such paragraph (3) add the fol7 lowing new paragraph:

8 ‘‘(4) A determination of whether such bill, joint

9 resolution, or conference report provides direct spend10 ing.’’.

11 (b) The second sentence of section 402 of the Congres12 sional Budget Act of 1974 is amended by inserting before

13 the period the following: ‘‘, or in the case of a conference

14 report, shall be included in the joint explanatory statement

15 of managers accompanying such conference report if timely

16 submitted before such report is filed’’.

17 TITLE IV—ACCOUNTABILITY FOR

18 FEDERAL SPENDING

19 SEC. 401. PURPOSES.

20 The purposes of this title are to—

21 (1) require committees to develop a schedule for

22 reauthorizing all programs within their jurisdictions;

23 (2) facilitate amendments to subject new entitle24 ment programs to annual discretionary appropria25 tions;
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1 (3) require the Committee on the Budget to jus2 tify any allocation to an authorizing committee for

3 legislation that would not be subject to annual discre4 tionary appropriation;

5 (4) provide estimates of the long-term impact of

6 spending and tax legislation;

7 (5) provide a point of order for legislation cre8 ating a new direct spending program that does not

9 expire within 10 years; and

10 (6) require a vote in the House of Representa11 tives on any measure that increases the statutory

12 limit on the public debt.

13 Subtitle A—Limitations on Direct

14 Spending

15 SEC. 411. FIXED-YEAR AUTHORIZATIONS REQUIRED FOR

16 NEW PROGRAMS.

17 (a) IN GENERAL.—Section 401 of the Congressional

18 Budget Act of 1974 is amended—

19 (1) by striking subsections (a) and (b) and in20 serting the following new subsection:

21 ‘‘(a) LIMITATION ON DIRECT SPENDING.—It shall not

22 be in order in the House of Representatives or in the Senate

23 to consider a bill or joint resolution, or an amendment, mo24 tion, or conference report that provides direct spending for
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1 a new program, unless such spending is limited to a period

2 of 10 or fewer fiscal years.’’;

3 (2) by redesignating subsection (c) as subsection

4 (b) and by striking ‘‘Subsections (a) and (b) each

5 place it appears and inserting ‘‘Subsection (a)’’ in

6 such redesignated subsection (b); and

7 (3) by amending the section heading to read as

8 follows:

9 ‘‘FIXED-YEAR AUTHORIZATIONS REQUIRED FOR DIRECT

10 SPENDING’’.

11 (b) CONFORMING AMENDMENT.—The item relating to

12 section 401 in the table of contents set forth in section 1(b)

13 of the Congressional Budget and Impoundment Control Act

14 of 1974 is amended to read as follows:

‘‘Sec. 401. Fixed-year authorizations required for direct spending.’’.

15 (c) LIMITATION ON AUTHORIZATION OF DISCRE16 TIONARY APPROPRIATIONS.—Rule XXI of the Rules of the

17 House of Representatives is amended by adding at the end

18 the following new clause:

19 ‘‘6. It shall not be in order to consider any bill, joint

20 resolution, amendment, or conference report that authorizes

21 the appropriation of new budget authority (as defined in

22 section 3(2)(C) of the Congressional Budget and Impound23 ment Control Act of 1974) for a new program, unless such

24 authorization is specifically provided for a period of 10 or

25 fewer fiscal years.’’.
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1 SEC. 412. AMENDMENTS TO SUBJECT NEW DIRECT SPEND2 ING TO ANNUAL APPROPRIATIONS.

3 (a) HOUSE PROCEDURES.—Clause 5 of rule XVIII of

4 the Rules of the House of Representatives is amended by

5 adding at the end the following new paragraph:

6 ‘‘(c)(1) In the Committee of the Whole, an amendment

7 only to subject a new program which provides direct spend8 ing to discretionary appropriations, if offered by the chair9 man of the Committee on the Budget (or his designee) or

10 the chairman of the Committee of Appropriations (or his

11 designee), may be precluded from consideration only by the

12 specific terms of a special order of the House. Any such

13 amendment, if offered, shall be debatable for twenty minutes

14 equally divided and controlled by the proponent of the

15 amendment and a Member opposed and shall not be subject

16 to amendment.

17 ‘‘(2) As used in subparagraph (1), the term ‘direct

18 spending’ has the meaning given such term in section 3(11)

19 of the Congressional Budget and Impoundment Control Act

20 of 1974.’’.

21 (b) ADJUSTMENT OF DISCRETIONARY SPENDING LIM22 ITS FOR DISCRETIONARY APPROPRIATIONS OFFSET BY DI23 RECT SPENDING SAVINGS.—

24 (1) PURPOSE.—The purpose of the amendments

25 made by this subsection is to hold the discretionary

26 spending limits and the allocations made to the Com-
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1 mittee on Appropriations under section 302(a) of the

2 Congressional Budget Act of 1974 harmless for legis3 lation that offsets a new discretionary program with

4 a designated reduction in direct spending.

5 (2) DESIGNATING DIRECT SPENDING SAVINGS IN

6 AUTHORIZATION LEGISLATION FOR NEW DISCRE7 TIONARY PROGRAMS.—Section 252 of the Balanced

8 Budget and Emergency Deficit Control Act of 1985

9 (as amended by section 202) is further amended by

10 adding at the end the following new subsection:

11 ‘‘(e) OFFSETS.—If a provision of direct spending legis12 lation is enacted that—

13 ‘‘(1) decreases direct spending for any fiscal

14 year; and

15 ‘‘(2) is designated as an offset pursuant to this

16 subsection and such designation specifically identifies

17 an authorization of discretionary appropriations

18 (contained in such legislation) for a new program,

19 then the reductions in new budget authority and outlays

20 in all fiscal years resulting from that provision shall be des21 ignated as an offset in the reports required under subsection

22 (d).’’.

23 (3) EXEMPTING SUCH DESIGNATED DIRECT

24 SPENDING SAVINGS FROM PAYGO SCORECARD.—Sec25 tion 252(d)(4) of the Balanced Budget and Emer-
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1 gency Deficit Control Act of 1985 (as amended by sec2 tion 202(b)) is further amended by adding at the end

3 the following new subparagraph:

4 ‘‘(B) offset provisions as designated under

5 subsection (e).’’.

6 (4) ADJUSTMENT IN DISCRETIONARY SPENDING

7 LIMITS.—Section 251(b)(2) of the Balanced Budget

8 and Emergency Deficit Control Act of 1985 (as

9 amended by section 202(a)(2)) is further amended by

10 adding at the end the following new subparagraph:

11 ‘‘(G) DISCRETIONARY AUTHORIZATION OFF12 SETS.—If an Act other than an appropriation

13 Act includes any provision reducing direct

14 spending and specifically identifies any such

15 provision as an offset pursuant to section 252(e),

16 the adjustments shall be an increase in the dis17 cretionary spending limits for budget authority

18 and outlays in each fiscal year equal to the

19 amount of the budget authority and outlay re20 ductions, respectively, achieved by the specified

21 offset in that fiscal year, except that the adjust22 ments for the budget year in which the offsetting

23 provision takes effect shall not exceed the amount

24 of discretionary new budget authority provided

25 for the new program (authorized in that Act) in
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1 an Act making discretionary appropriations and

2 the outlays flowing therefrom.’’.

3 (5) ADJUSTMENT IN APPROPRIATION COMMIT4 TEE’S ALLOCATIONS.—Section 314(b) of the Congres5 sional Budget Act of 1974 (as amended by section

6 202(d)) is further amended by striking ‘‘; or’’ at the

7 end of paragraph (4), by striking the period and in8 serting ‘‘; or’’ at the end of paragraph (5), and by

9 adding at the end the following new paragraph:

10 ‘‘(6) the amount provided in an Act making dis11 cretionary appropriations for the program for which

12 an offset was designated pursuant to section 252(e) of

13 the Balanced Budget and Emergency Deficit Control

14 Act of 1985 and any outlays flowing therefrom, but

15 not to exceed the amount of the designated decrease in

16 direct spending for that year for that program in a

17 prior law.’’.

18 (6) ADJUSTMENT IN AUTHORIZING COMMITTEE’S

19 ALLOCATIONS.—Section 314 of the Congressional

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

21 the following new subsection:

22 ‘‘(f) ADJUSTMENT IN AUTHORIZING COMMITTEE’S AL23 LOCATIONS BY AMOUNT OF DIRECT SPENDING OFFSET.—

24 After the reporting of a bill or joint resolution (by a com25 mittee other than the Committee on Appropriations), or the
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1 offering of an amendment thereto or the submission of a

2 conference report thereon, that contains a provision that de3 creases direct spending for any fiscal year and that is des4 ignated as an offset pursuant to section 252(e) of the Bal5 anced Budget and Emergency Deficit Control Act of 1985,

6 the chairman of the Committee on the Budget shall reduce

7 the allocations of new budget authority and outlays made

8 to such committee under section 302(a)(1) by the amount

9 so designated.’’.

10 Subtitle B—Enhanced Congres11 sional Oversight Responsibilities

12 SEC. 421. TEN-YEAR CONGRESSIONAL REVIEW REQUIRE13 MENT OF PERMANENT BUDGET AUTHORITY.

14 (a) TIMETABLE FOR REVIEW.—Clause 2(d)(1) of rule

15 X of the Rules of the House of Representatives is amended

16 by striking subdivisions (B) and (C) and inserting the fol17 lowing new subdivision:

18 ‘‘(B) provide in its plans a specific timetable for

19 its review of those laws, programs, or agencies within

20 its jurisdiction, including those that operate under

21 permanent budget authority or permanent statutory

22 authority.’’.

23 (b) REVIEW OF PERMANENT BUDGET AUTHORITY BY

24 THE COMMITTEE ON APPROPRIATIONS.—Clause 4(a) of rule

25 X of the Rules of the House of Representatives is amended—
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1 (1) by striking subparagraph (2); and

2 (2) by redesignating subparagraphs (3) and (4)

3 as subparagraphs (2) and (3) and by striking ‘‘from

4 time to time’’ and inserting ‘‘at least once each Con5 gress’’ in subparagraph (2) (as redesignated).

6 (c) CONFORMING AMENDMENT.—Clause 4(e)(2) of rule

7 X of the Rules of the House of Representatives is amended

8 by striking ‘‘from time to time’’ and inserting ‘‘at least once

9 every ten years’’.

10 SEC. 422. JUSTIFICATIONS OF DIRECT SPENDING.

11 (a) SECTION 302 ALLOCATIONS.—Section 302(a) of the

12 Congressional Budget Act of 1974 (as amended by section

13 104(a)) is further amended by adding at the end the fol14 lowing new paragraph:

15 ‘‘(5) JUSTIFICATION OF CERTAIN SPENDING AL16 LOCATIONS.—The joint explanatory statement accom17 panying a conference report on a joint resolution on

18 the budget that includes any allocation to a com19 mittee (other than the Committee on Appropriations)

20 of levels in excess of current law levels shall set forth

21 a justification for not subjecting any program,

22 project, or activity (for which the allocation is made)

23 to annual discretionary appropriation.’’.
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1 (b) PRESIDENTS’ BUDGET SUBMISSIONS.—Section

2 1105(a) of title 31, United States Code, is amended by add3 ing at the end the following new paragraph:

4 ‘‘(33) a justification for not subjecting each pro5 posed new direct spending program, project, or activ6 ity to discretionary appropriations.’’.

7 (c) COMMITTEE JUSTIFICATION FOR DIRECT SPEND8 ING.—Clause 4(e)(2) of rule X of the Rules of the House

9 of Representatives is amended by inserting before the period

10 the following: ‘‘, and will provide specific information in

11 any report accompanying such bills and joint resolutions

12 to the greatest extent practicable to justify why the pro13 grams, projects, and activities involved would not be subject

14 to annual appropriation’’.

15 SEC. 423. SURVEY OF ACTIVITY REPORTS OF HOUSE COM16 MITTEES.

17 Clause 1(d) of rule XI of the Rules of the House of

18 Representatives is amended by redesignating paragraph (4)

19 as paragraph (5) and by inserting after paragraph (3) the

20 following new paragraph:

21 ‘‘(4) Such report shall include a summary of and jus22 tifications for all bills and joint resolutions reported by such

23 committee that—

24 ‘‘(A) were considered before the adoption of the

25 appropriate budget resolution and did not fall within
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1 an exception set forth in section 303(b) of the Con2 gressional Budget Act of 1974;

3 ‘‘(B) exceeded its allocation under section 302(a)

4 of such Act or breached an aggregate level in violation

5 of section 311 of such Act; or

6 ‘‘(C) contained provisions in violation of section

7 401(a) of such Act pertaining to indefinite direct

8 spending authority.

9 Such report shall also specify the total amount by which

10 legislation reported by that committee exceeded its alloca11 tion under section 302(a) or breached the revenue floor

12 under section 311(a) of such Act for each fiscal year during

13 that Congress.’’.

14 SEC. 424. CONTINUING STUDY OF ADDITIONAL BUDGET

15 PROCESS REFORMS.

16 Section 703 of the Congressional Budget Act of 1974

17 is amended as follows:

18 (1) In subsection (a), strike ‘‘and’’ at the end of

19 paragraph (3), strike the period at the end of para20 graph (4) and insert ‘‘; and’’, and at the end add the

21 following new paragraph:

22 ‘‘(5) evaluating whether existing programs,

23 projects, and activities should be subject to discre24 tionary appropriations.’’.
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1 (2) In subsection (b), strike ‘‘from time to time’’

2 and insert ‘‘during the One Hundred Sixth Con3 gress’’.

4 (3) Add at the end the following new subsection:

5 ‘‘(d) The Committee on the Budget of each House shall

6 establish guidelines for subjecting new or expanded pro7 grams, projects, and activities to annual appropriation and

8 recommend any necessary changes in statutory enforcement

9 mechanisms and scoring conventions to effectuate such

10 changes.’’.

11 SEC. 425. GAO REPORTS.

12 The last sentence of section 404 of the Congressional

13 Budget Act of 1974 is amended to read as follows: ‘‘Such

14 report shall be revised at least once every five years and

15 shall be transmitted to the chairman and ranking minority

16 member of each committee of the House of Representatives

17 and the Senate.’’.

18 Subtitle C—Strengthened

19 Accountability

20 SEC. 431. TEN-YEAR CBO ESTIMATES.

21 (a) CBO REPORTS ON LEGISLATION.—Section

22 308(a)(1)(B) of the Congressional Budget Act of 1974 is

23 amended by striking ‘‘four’’ and inserting ‘‘nine’’.
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1 (b) ANALYSIS BY CBO.—Section 402(1) of the Congres2 sional Budget Act of 1974 is amended by striking ‘‘4’’ and

3 inserting ‘‘nine’’.

4 (c) COST ESTIMATES.—Clause 3(d)(2)(A) of rule XIII

5 of the Rules of the House of Representatives is amended by

6 striking ‘‘five’’ each place it appears and inserting ‘‘10’’.

7 SEC. 432. REPEAL OF RULE XXIII OF THE RULES OF THE

8 HOUSE OF REPRESENTATIVES.

9 Rule XXIII of the Rules of the House of Representa10 tives (relating to the establishment of the statutory limit

11 on the public debt) is repealed.

12 TITLE V—BUDGETING FOR UN13 FUNDED LIABILITIES AND

14 OTHER LONG-TERM OBLIGA15 TIONS

16 SEC. 501. PURPOSES.

17 The purposes of this title are to—

18 (1) budget for the long-term costs of Federal in19 surance programs;

20 (2) improve congressional control of those costs;

21 and

22 (3) periodically report on long-term budgetary

23 trends.
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1 Subtitle A—Budgetary Treatment of

2 Federal Insurance Programs

3 SEC. 511. FEDERAL INSURANCE PROGRAMS.

4 (a) IN GENERAL.—The Congressional Budget Act of

5 1974 is amended by adding after title V the following new

6 title:

7 ‘‘TITLE VI—BUDGETARY TREAT8 MENT OF FEDERAL INSUR9 ANCE PROGRAMS

10 ‘‘SEC. 601. SHORT TITLE.

11 ‘‘This title may be cited as the ‘Federal Insurance

12 Budgeting Act of 1999’.

13 ‘‘SEC. 602. BUDGETARY TREATMENT.

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

15 year 2006, the budget of the Government pursuant to section

16 1105(a) of title 31, United States Code, shall be based on

17 the risk-assumed cost of Federal insurance programs.

18 ‘‘(b) BUDGET ACCOUNTING.—For any Federal insur19 ance program—

20 ‘‘(1) the program account shall—

21 ‘‘(A) pay the risk-assumed cost borne by the

22 taxpayer to the financing account, and

23 ‘‘(B) pay actual insurance program admin24 istrative costs;

25 ‘‘(2) the financing account shall—
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1 ‘‘(A) receive premiums and other income,

2 ‘‘(B) pay all claims for insurance and re3 ceive all recoveries,

4 ‘‘(C) transfer to the program account on not

5 less than an annual basis amounts necessary to

6 pay insurance program administrative costs;

7 ‘‘(3) a negative risk-assumed cost shall be trans8 ferred from the financing account to the program ac9 count, and shall be transferred from the program ac10 count to the general fund; and

11 ‘‘(4) all payments by or receipts of the financing

12 accounts shall be treated in the budget as a means of

13 financing.

14 ‘‘(c) APPROPRIATIONS REQUIRED.—(1) Notwith15 standing any other provision of law, insurance commit16 ments may be made for fiscal year 2006 and thereafter only

17 to the extent that new budget authority to cover their risk18 assumed cost is provided in advance in an appropriation

19 Act.

20 ‘‘(2) An outstanding insurance commitment shall not

21 be modified in a manner that increases its risk-assumed

22 cost unless budget authority for the additional cost has been

23 provided in advance.

24 ‘‘(3) Paragraph (1) shall not apply to Federal insur25 ance programs that constitute entitlements.
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1 ‘‘(d) REESTIMATES.—The risk-assumed cost for a fis2 cal year shall be reestimated in each subsequent year. Such

3 reestimate can equal zero. In the case of a positive reesti4 mate, the amount of the reestimate shall be paid from the

5 program account to the financing account. In the case of

6 a negative reestimate, the amount of the reestimate shall

7 be paid from the financing account to the program account,

8 and shall be transferred from the program account to the

9 general fund. Reestimates shall be displayed as a distinct

10 and separately identified subaccount in the program ac11 count.

12 ‘‘(e) ADMINISTRATIVE EXPENSES.—All funding for an

13 agency’s administration of a Federal insurance program

14 shall be displayed as a distinct and separately identified

15 subaccount in the program account.

16 ‘‘SEC. 603. TIMETABLE FOR IMPLEMENTATION OF ACCRUAL

17 BUDGETING FOR FEDERAL INSURANCE PRO18 GRAMS.

19 ‘‘(a) AGENCY REQUIREMENTS.—Agencies with respon20 sibility for Federal insurance programs shall develop mod21 els to estimate their risk-assumed cost by year through the

22 budget horizon and shall submit those models, all relevant

23 data, a justification for critical assumptions, and the an24 nual projected risk-assumed costs to OMB with their budget

25 requests each year starting with the request for fiscal year
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1 2002. Agencies will likewise provide OMB with annual esti2 mates of modifications, if any, and reestimates of program

3 costs.

4 ‘‘(b) DISCLOSURE.—When the President submits a

5 budget of the Government pursuant to section 1105(a) of

6 title 31, United States Code, for fiscal year 2002, OMB shall

7 publish a notice in the Federal Register advising interested

8 persons of the availability of information describing the

9 models, data (including sources), and critical assumptions

10 (including explicit or implicit discount rate assumptions)

11 that it or other executive branch entities would use to esti12 mate the risk-assumed cost of Federal insurance programs

13 and giving such persons an opportunity to submit com14 ments. At the same time, the chairman of the Committee

15 on the Budget shall publish a notice for CBO in the Federal

16 Register advising interested persons of the availability of

17 information describing the models, data (including sources),

18 and critical assumptions (including explicit or implicit dis19 count rate assumptions) that it would use to estimate the

20 risk-assumed cost of Federal insurance programs and giv21 ing such interested persons an opportunity to submit com22 ments.

23 ‘‘(c) REVISION.—(1) After consideration of comments

24 pursuant to subsection (b), and in consultation with the

25 Committees on the Budget of the House of Representatives
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1 and the Senate, OMB and CBO shall revise the models,

2 data, and major assumptions they would use to estimate

3 the risk-assumed cost of Federal insurance programs.

4 ‘‘(2) When the President submits a budget of the Gov5 ernment pursuant to section 1105(a) of title 31, United

6 States Code, for fiscal year 2003, OMB shall publish a no7 tice in the Federal Register advising interested persons of

8 the availability of information describing the models, data

9 (including sources), and critical assumptions (including ex10 plicit or implicit discount rate assumptions) that it or other

11 executive branch entities used to estimate the risk-assumed

12 cost of Federal insurance programs.

13 ‘‘(d) DISPLAY.—

14 ‘‘(1) IN GENERAL.—For fiscal years 2003, 2004,

15 and 2005 the budget submissions of the President pur16 suant to section 1105(a) of title 31, United States

17 Code, and CBO’s reports on the economic and budget

18 outlook pursuant to section 202(e)(1) and the Presi19 dent’s budgets, shall for display purposes only, esti20 mate the risk-assumed cost of existing or proposed

21 Federal insurance programs.

22 ‘‘(2) OMB.—The display in the budget submis23 sions of the President for fiscal years 2003, 2004, and

24 2005 shall include—
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1 ‘‘(A) a presentation for each Federal insur2 ance program in budget-account level detail of

3 estimates of risk-assumed cost;

4 ‘‘(B) a summary table of the risk-assumed

5 costs of Federal insurance programs; and

6 ‘‘(C) an alternate summary table of budget

7 functions and aggregates using risk-assumed

8 rather than cash-based cost estimates for Federal

9 insurance programs.

10 ‘‘(3) CBO.—In the second session of the 107th

11 Congress and the 108th Congress, CBO shall include

12 in its estimates under section 308, for display pur13 poses only, the risk-assumed cost of existing Federal

14 insurance programs, or legislation that CBO, in con15 sultation with the Committees on the Budget of the

16 House of Representatives and the Senate, determines

17 would create a new Federal insurance program.

18 ‘‘(e) OMB, CBO, AND GAO EVALUATIONS.—(1) Not

19 later than 6 months after the budget submission of the

20 President pursuant to section 1105(a) of title 31, United

21 States Code, for fiscal year 2005, OMB, CBO, and GAO

22 shall each submit to the Committees on the Budget of the

23 House of Representatives and the Senate a report that eval24 uates the advisability and appropriate implementation of

25 this title.
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1 ‘‘(2) Each report made pursuant to paragraph (1)

2 shall address the following:

3 ‘‘(A) The adequacy of risk-assumed estimation

4 models used and alternative modeling methods.

5 ‘‘(B) The availability and reliability of data or

6 information necessary to carry out this title.

7 ‘‘(C) The appropriateness of the explicit or im8 plicit discount rate used in the various risk-assumed

9 estimation models.

10 ‘‘(D) The advisability of specifying a statutory

11 discount rate (such as the Treasury rate) for use in

12 risk-assumed estimation models.

13 ‘‘(E) The ability of OMB, CBO, or GAO, as ap14 plicable, to secure any data or information directly

15 from any Federal agency necessary to enable it to

16 carry out this title.

17 ‘‘(F) The relationship between risk-assumed ac18 crual budgeting for Federal insurance programs and

19 the specific requirements of the Balanced Budget and

20 Emergency Deficit Control Act of 1985.

21 ‘‘(G) Whether Federal budgeting is improved by

22 the inclusion of risk-assumed cost estimates for Fed23 eral insurance programs.
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1 ‘‘(H) The advisability of including each of the

2 programs currently estimated on a risk-assumed cost

3 basis in the Federal budget on that basis.

4 ‘‘SEC. 604. DEFINITIONS.

5 ‘‘For purposes of this title:

6 ‘‘(1) The term ‘Federal insurance program’

7 means a program that makes insurance commitments

8 and includes the list of such programs included in the

9 joint explanatory statement of managers accom10 panying the conference report on the Comprehensive

11 Budget Process Reform Act of 1999.

12 ‘‘(2) The term ‘insurance commitment’ means an

13 agreement in advance by a Federal agency to indem14 nify a nonfederal entity against specified losses. This

15 term does not include loan guarantees as defined in

16 title V or benefit programs such as social security,

17 medicare, and similar existing social insurance pro18 grams.

19 ‘‘(3)(A) The term ‘risk-assumed cost’ means the

20 net present value of the estimated cash flows to and

21 from the Government resulting from an insurance

22 commitment or modification thereof.

23 ‘‘(B) The cash flows associated with an insur24 ance commitment include—
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1 ‘‘(i) expected claims payments inherent in

2 the Government’s commitment;

3 ‘‘(ii) net premiums (expected premium col4 lections received from or on behalf of the insured

5 less expected administrative expenses);

6 ‘‘(iii) expected recoveries; and

7 ‘‘(iv) expected changes in claims, premiums,

8 or recoveries resulting from the exercise by the

9 insured of any option included in the insurance

10 commitment.

11 ‘‘(C) The cost of a modification is the difference

12 between the current estimate of the net present value

13 of the remaining cash flows under the terms of the in14 surance commitment, and the current estimate of the

15 net present value of the remaining cash flows under

16 the terms of the insurance commitment as modified.

17 ‘‘(D) The cost of a reestimate is the difference be18 tween the net present value of the amount currently

19 required by the financing account to pay estimated

20 claims and other expenditures and the amount cur21 rently available in the financing account. The cost of

22 a reestimate shall be accounted for in the current year

23 in the budget of the Government pursuant to section

24 1105(a) of title 31, United States Code.
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1 ‘‘(E) For purposes of this definition, expected ad2 ministrative expenses shall be construed as the

3 amount estimated to be necessary for the proper ad4 ministration of the insurance program. This amount

5 may differ from amounts actually appropriated or

6 otherwise made available for the administration of the

7 program.

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

9 budget account for the risk-assumed cost, and for pay10 ing all costs of administering the insurance program,

11 and is the account from which the risk-assumed cost

12 is disbursed to the financing account.

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

14 nonbudget account that is associated with each pro15 gram account which receives payments from or makes

16 payments to the program account, receives premiums

17 and other payments from the public, pays insurance

18 claims, and holds balances.

19 ‘‘(6) The term ‘modification’ means any Govern20 ment action that alters the risk-assumed cost of an ex21 isting insurance commitment from the current esti22 mate of cash flows. This includes any action resulting

23 from new legislation, or from the exercise of adminis24 trative discretion under existing law, that directly or
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1 indirectly alters the estimated cost of existing insur2 ance commitments.

3 ‘‘(7) The term ‘model’ means any actuarial, fi4 nancial, econometric, probabilistic, or other method5 ology used to estimate the expected frequency and

6 magnitude of loss-producing events, expected pre7 miums or collections from or on behalf of the insured,

8 expected recoveries, and administrative expenses.

9 ‘‘(8) The term ‘current’ has the same meaning as

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

11 Emergency Deficit Control Act of 1985.

12 ‘‘(9) The term ‘OMB’ means the Director of the

13 Office of Management and Budget.

14 ‘‘(10) The term ‘CBO’ means the Director of the

15 Congressional Budget Office.

16 ‘‘(11) The term ‘GAO’ means the Comptroller

17 General of the United States.

18 ‘‘SEC. 605. AUTHORIZATIONS TO ENTER INTO CONTRACTS;

19 ACTUARIAL COST ACCOUNT.

20 ‘‘(a) AUTHORIZATION OF APPROPRIATIONS.—There is

21 authorized to be appropriated $600,000 for each of fiscal

22 years 2000 through 2005 to the Director of the Office of

23 Management and Budget and each agency responsible for

24 administering a Federal program to carry out this title.
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1 ‘‘(b) TREASURY TRANSACTIONS WITH THE FINANCING

2 ACCOUNTS.—The Secretary of the Treasury shall borrow

3 from, receive from, lend to, or pay the insurance financing

4 accounts such amounts as may be appropriate. The Sec5 retary of the Treasury may prescribe forms and denomina6 tions, maturities, and terms and conditions for the trans7 actions described above. The authorities described above

8 shall not be construed to supersede or override the authority

9 of the head of a Federal agency to administer and operate

10 an insurance program. All the transactions provided in this

11 subsection shall be subject to the provisions of subchapter

12 II of chapter 15 of title 31, United States Code. Cash bal13 ances of the financing accounts in excess of current require14 ments shall be maintained in a form of uninvested funds,

15 and the Secretary of the Treasury shall pay interest on these

16 funds.

17 ‘‘(c) APPROPRIATION OF AMOUNT NECESSARY TO

18 COVER RISK-ASSUMED COST OF INSURANCE COMMITMENTS

19 AT TRANSITION DATE.—(1) A financing account is estab20 lished on September 30, 2005, for each Federal insurance

21 program.

22 ‘‘(2) There is appropriated to each financing account

23 the amount of the risk-assumed cost of Federal insurance

24 commitments outstanding for that program as of the close

25 of September 30, 2005.
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1 ‘‘(3) These financing accounts shall be used in imple2 menting the budget accounting required by this title.

3 ‘‘SEC. 606. EFFECTIVE DATE.

4 ‘‘(a) IN GENERAL.—This title shall take effect imme5 diately and shall expire on September 30, 2007.

6 ‘‘(b) SPECIAL RULE.—If this title is not reauthorized

7 by September 30, 2007, then the accounting structure and

8 budgetary treatment of Federal insurance programs shall

9 revert to the accounting structure and budgetary treatment

10 in effect immediately before the date of enactment of this

11 title.’’.

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

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

14 Impoundment Control Act of 1974 is amended by inserting

15 after the item relating to section 507 the following new

16 items:

‘‘TITLE VI—BUDGETARY TREATMENT OF FEDERAL INSURANCE

PROGRAMS

‘‘Sec. 601. Short title.

‘‘Sec. 602. Budgetary treatment.

‘‘Sec. 603. Timetable for implementation of accrual budgeting for Federal insurance programs.

‘‘Sec. 604. Definitions.

‘‘Sec. 605. Authorizations to enter into contracts; actuarial cost account.

‘‘Sec. 606. Effective date.’’.

17 Subtitle B—Reports on Long-Term

18 Budgetary Trends

19 SEC. 521. REPORTS ON LONG-TERM BUDGETARY TRENDS.

20 (a) THE PRESIDENT’S BUDGET.—Section 1105(a) of

21 title 31, United States Code (as amended by section 404),
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1 is further amended by adding at the end the following new

2 paragraph:

3 ‘‘(34) an analysis based upon current law and

4 an analysis based upon the policy assumptions un5 derlying the budget submission for every fifth year of

6 the period of 75 fiscal years beginning with such fis7 cal year, of the estimated levels of total new budget

8 authority and total budget outlays, estimated reve9 nues, estimated surpluses and deficits, and, for social

10 security, medicare, medicaid, and all other direct

11 spending, estimated levels of total new budget author12 ity and total budget outlays; and a specification of its

13 underlying assumptions and a sensitivity analysis of

14 factors that have a significant effect on the projections

15 made in each analysis; and a comparison of the ef16 fects of each of the two analyses on the economy, in17 cluding such factors as inflation, foreign investment,

18 interest rates, and economic growth.’’.

19 (b) CBO REPORTS.—Section 202(e)(1) of the Congres20 sional Budget Act of 1974 is amended by adding at the

21 end the following new sentences: ‘‘Such report shall also in22 clude an analysis based upon current law for every fifth

23 year of the period of 75 fiscal years beginning with such

24 fiscal year, of the estimated levels of total new budget au25 thority and total budget outlays, estimated revenues, esti-
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1 mated surpluses and deficits, and, for social security, medi2 care, medicaid, and all other direct spending, estimated lev3 els of total new budget authority and total budget outlays.

4 The report described in the preceding sentence shall also

5 specify its underlying assumptions and set forth a sensi6 tivity analysis of factors that have a significant effect on

7 the projections made in the report.’’.

8 TITLE VI—BASELINES, BYRD

9 RULE, AND LOCK-BOX

10 SEC. 601. PURPOSE.

11 The purposes of this title are to—

12 (1) require budgetary comparisons to prior year

13 levels;

14 (2) restrict the application of the Byrd rule to

15 measures other than conference reports; and

16 (3) establish a procedure to allow savings from

17 spending cuts in appropriation measures to be locked18 in to increase the surplus or reduce the deficit.

19 Subtitle A—The Baseline

20 SEC. 611. THE PRESIDENT’S BUDGET.

21 (a) Paragraph (5) of section 1105(a) of title 31, United

22 States Code, is amended to read as follows:

23 ‘‘(5) except as provided in subsection (b) of this

24 section, estimated expenditures and appropriations

25 for the current year and estimated expenditures and
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1 proposed appropriations the President decides are

2 necessary to support the Government in the fiscal

3 year for which the budget is submitted and the 4 fis4 cal years following that year, and, except for detailed

5 budget estimates, the percentage change from the cur6 rent year to the fiscal year for which the budget is

7 submitted for estimated expenditures and for appro8 priations.’’.

9 (b) Section 1105(a)(6) of title 31, United States Code,

10 is amended to read as follows:

11 ‘‘(6) estimated receipts of the Government in the

12 current year and the fiscal year for which the budget

13 is submitted and the 4 fiscal years after that year

14 under—

15 ‘‘(A) laws in effect when the budget is sub16 mitted; and

17 ‘‘(B) proposals in the budget to increase

18 revenues,

19 and the percentage change (in the case of each cat20 egory referred to in subparagraphs (A) and (B)) be21 tween the current year and the fiscal year for which

22 the budget is submitted and between the current year

23 and each of the 9 fiscal years after the fiscal year for

24 which the budget is submitted.’’.
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1 (c) Section 1105(a)(12) of title 31, United States Code,

2 is amended to read as follows:

3 ‘‘(12) for each proposal in the budget for legisla4 tion that would establish or expand a Government ac5 tivity or function, a table showing—

6 ‘‘(A) the amount proposed in the budget for

7 appropriation and for expenditure because of the

8 proposal in the fiscal year for which the budget

9 is submitted;

10 ‘‘(B) the estimated appropriation required

11 because of the proposal for each of the 4 fiscal

12 years after that year that the proposal will be in

13 effect; and

14 ‘‘(C) the estimated amount for the same ac15 tivity or function, if any, in the current fiscal

16 year,

17 and, except for detailed budget estimates, the percent18 age change (in the case of each category referred to in

19 subparagraphs (A), (B), and (C)) between the current

20 year and the fiscal year for which the budget is sub21 mitted.’’.

22 (d) Section 1105(a)(18) of title 31, United States Code,

23 is amended by inserting ‘‘new budget authority and’’ before

24 ‘‘budget outlays’’.
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1 (e) Section 1105(a) of title 31, United States Code, (as

2 amended by sections 412(b) and 521(a)) is further amended

3 by adding at the end the following new paragraphs:

4 ‘‘(35) a comparison of levels of estimated expend5 itures and proposed appropriations for each function

6 and subfunction in the current fiscal year and the fis7 cal year for which the budget is submitted, along with

8 the proposed increase or decrease of spending in per9 centage terms for each function and subfunction.

10 ‘‘(36) a table on sources of growth in total direct

11 spending under current law and as proposed in this

12 budget submission for the budget year and the ensuing

13 9 fiscal years, which shall include changes in outlays

14 attributable to the following: cost-of-living adjust15 ments; changes in the number of program recipients;

16 increases in medical care prices, utilization and in17 tensity of medical care; and residual factors.’’.

18 (f) Section 1109(a) of title 31, United States Code, is

19 amended by inserting after the first sentence the following

20 new sentence: ‘‘For discretionary spending, these estimates

21 shall assume the levels set forth in the discretionary spend22 ing limits under section 251(c) of the Balanced Budget and

23 Emergency Deficit Control Act of 1985, as adjusted, for the

24 appropriate fiscal years (and if no such limits are in effect,
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1 these estimates shall assume the adjusted levels for the most

2 recent fiscal year for which such levels were in effect).’’.

3 SEC. 612. THE CONGRESSIONAL BUDGET.

4 Section 301(e) of the Congressional Budget Act of 1974

5 (as amended by section 103) is further amended—

6 (1) in paragraph (1), by inserting at the end the

7 following: ‘‘The basis of deliberations in developing

8 such joint resolution shall be the estimated budgetary

9 levels for the preceding fiscal year. Any budgetary lev10 els pending before the committee and the text of the

11 joint resolution shall be accompanied by a document

12 comparing such levels or such text to the estimated

13 levels of the prior fiscal year. Any amendment offered

14 in the committee that changes a budgetary level and

15 is based upon a specific policy assumption for a pro16 gram, project, or activity shall be accompanied by a

17 document indicating the estimated amount for such

18 program, project, or activity in the current year.’’;

19 and

20 (2) in paragraph (2), by striking ‘‘and’’ at the

21 end of subparagraph (H) (as redesignated), by strik22 ing the period and inserting ‘‘; and’’ at the end of

23 subparagraph (I) (as redesignated), and by adding at

24 the end the following new subparagraph:
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1 ‘‘(J) a comparison of levels for the current

2 fiscal year with proposed spending and revenue

3 levels for the subsequent fiscal years along with

4 the proposed increase or decrease of spending in

5 percentage terms for each function.’’.

6 SEC. 613. CONGRESSIONAL BUDGET OFFICE REPORTS TO

7 COMMITTEES.

8 (a) The first sentence of section 202(e)(1) of the Con9 gressional Budget Act of 1974 is amended by inserting

10 ‘‘compared to comparable levels for the current year’’ before

11 the comma at the end of subparagraph (A) and before the

12 comma at the end of subparagraph (B).

13 (b) Section 202(e)(1) of the Congressional Budget Act

14 of 1974 is amended by inserting after the first sentence the

15 following new sentence: ‘‘Such report shall also include a

16 table on sources of spending growth in total direct spending

17 for the budget year and the ensuing 4 fiscal years, which

18 shall include changes in outlays attributable to the fol19 lowing: cost-of-living adjustments; changes in the number

20 of program recipients; increases in medical care prices, uti21 lization and intensity of medical care; and residual fac22 tors.’’.

23 (c) Section 308(a)(1)(B) of the Congressional Budget

24 Act of 1974 is amended by inserting ‘‘and shall include a
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1 comparison of those levels to comparable levels for the cur2 rent fiscal year’’ before ‘‘if timely submitted’’.

3 SEC. 614. OUTYEAR ASSUMPTIONS FOR DISCRETIONARY

4 SPENDING.

5 For purposes of chapter 11 of title 31 of the United

6 States Code, or the Congressional Budget Act of 1974, unless

7 otherwise expressly provided, in making budgetary projec8 tions for years for which there are no discretionary spend9 ing limits, the Director of the Office of Management and

10 Budget and the Director of the Congressional Budget Office

11 shall assume discretionary spending levels at the levels for

12 the last fiscal year for which such levels were in effect.

13 Subtitle B—The Byrd Rule

14 SEC. 621. LIMITATION ON BYRD RULE.

15 (a) PROTECTION OF CONFERENCE REPORTS.—Section

16 313 of the Congressional Budget Act of 1974 is amended—

17 (1) in subsection (c), by striking ‘‘and again

18 upon the submission of a conference report on such a

19 reconciliation bill or resolution,’’;

20 (2) by striking subsection (d);

21 (3) by redesignating subsection (e) as subsection

22 (d); and

23 (4) in subsection (e), as redesignated—
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1 (A) by striking ‘‘, motion, or conference re2 port’’ the first place it appears and inserting ‘‘,

3 or motion’’; and

4 (B) by striking ‘‘, motion, or conference re5 port’’ the second and third places it appears and

6 inserting ‘‘or motion’’.

7 (b) CONFORMING AMENDMENT.—The first sentence of

8 section 312(e) of the Congressional Budget Act of 1974 is

9 amended by inserting ‘‘, except for section 313,’’ after

10 ‘‘Act’’.

11 Subtitle C—Spending

12 Accountability Lock-box

13 SEC. 631. SHORT TITLE.

14 This subtitle may be cited as the ‘‘Spending Account15 ability Lock-box Act of 1999’’.

16 SEC. 632. SPENDING ACCOUNTABILITY LOCK-BOX LEDGER.

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

18 Congressional Budget Act of 1974 (as amended by sections

19 104(c) and 206(a)) is further amended by adding after sec20 tion 317 the following new section:

21 ‘‘SPENDING ACCOUNTABILITY LOCK-BOX LEDGER

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

23 chairman of the Committee on the Budget of the House of

24 Representatives and the chairman on the Committee on the

25 Budget of the Senate shall each maintain a ledger to be

26 known as the ‘Spending Accountability Lock-box Ledger’.
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1 The Ledger shall be divided into entries corresponding to

2 the subcommittees of the Committees on Appropriations.

3 Each entry shall consist of three components: the ‘House

4 Lock-box Balance’; the ‘Senate Lock-box Balance’; and the

5 ‘Joint House-Senate Lock-box Balance’.

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

7 an entry shall consist only of amounts credited to it under

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

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

10 House of Representatives or the Senate, whenever a Member

11 offers an amendment to an appropriation bill to reduce new

12 budget authority in any account, that Member may state

13 the portion of such reduction that shall be—

14 ‘‘(A) credited to the House or Senate Lock-box

15 Balance, as applicable; or

16 ‘‘(B) used to offset an increase in new budget au17 thority in any other account;

18 ‘‘(C) allowed to remain within the applicable

19 section 302(b) suballocation.

20 If no such statement is made, the amount of reduction in

21 new budget authority resulting from the amendment shall

22 be credited to the House or Senate Lock-box Balance, as

23 applicable, if the amendment is agreed to.

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

25 chairmen of the Committees on the Budget shall, upon the
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1 engrossment of any appropriation bill by the House of Rep2 resentatives and upon the engrossment of Senate amend3 ments to that bill, credit to the applicable entry balance

4 of that House amounts of new budget authority and outlays

5 equal to the net amounts of reductions in new budget au6 thority and in outlays resulting from amendments agreed

7 to by that House to that bill.

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

9 in new budget authority and in outlays resulting from

10 amendments agreed to by the House of Representatives or

11 the Senate to an appropriation bill, the chairmen of the

12 Committees on the Budget shall only count those portions

13 of such amendments agreed to that were so designated by

14 the Members offering such amendments as amounts to be

15 credited to the House or Senate Lock-box Balance, as appli16 cable, or that fall within the last sentence of paragraph (1).

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

18 shall, upon the engrossment of Senate amendments to any

19 appropriation bill, credit to the applicable Joint House20 Senate Lock-box Balance the amounts of new budget author21 ity and outlays equal to—

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

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

24 Lock-box Balance plus (ii) the amount of new budget
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1 authority in the Senate Lock-box Balance for that

2 subcommittee; and

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

4 (i) the amount of outlays in the House Lock-box Bal5 ance plus (ii) the amount of outlays in the Senate

6 Lock-box Balance for that subcommittee.

7 ‘‘(4) CALCULATION OF LOCK-BOX SAVINGS IN SEN8 ATE.—For purposes of calculating under this section the net

9 amounts of reductions in new budget authority and in out10 lays resulting from amendments agreed to by the Senate

11 on an appropriation bill, the amendments reported to the

12 Senate by its Committee on Appropriations shall be consid13 ered to be part of the original text of the bill.

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

15 ‘appropriation bill’ means any general or special appro16 priation bill, and any bill or joint resolution making sup17 plemental, deficiency, or continuing appropriations

18 through the end of a fiscal year.

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

20 chairman of the Committee on the Budget of the House of

21 Representatives shall maintain a running tally of the

22 amendments adopted reflecting increases and decreases of

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

24 be available to Members in the House of Representatives
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1 during consideration of any appropriations bill by the

2 House.’’.

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

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

5 Impoundment Control Act of 1974 is amended by inserting

6 after the item relating to section 317 the following new item:

‘‘Sec. 318. Spending accountability lock-box ledger.’’.

7 SEC. 633. DOWNWARD ADJUSTMENT OF SECTION 302(a) AL8 LOCATIONS AND SECTION 302(b) SUBALLOCA9 TIONS.

10 (a) ALLOCATIONS.—Section 302(a) of the Congres11 sional Budget Act of 1974 (as amended by section 422) is

12 further amended by adding at the end the following new

13 paragraph:

14 ‘‘(6) ADJUSTMENT OF ALLOCATIONS.—Upon the

15 engrossment of Senate amendments to any appropria16 tion bill (as defined in section 318(d)) for a fiscal

17 year, the amounts allocated under paragraph (1) to

18 the Committee on Appropriations of each House upon

19 the adoption of the most recent joint resolution on the

20 budget for that fiscal year shall be adjusted downward

21 by the amounts credited to the applicable Joint

22 House-Senate Lock-box Balance under section

23 318(c)(2). The revised levels of new budget authority

24 and outlays shall be submitted to each House by the

25 chairman of the Committee on the Budget of that
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1 House and shall be printed in the Congressional

2 Record.’’.

3 (b) SUBALLOCATIONS.—Section 302(b) of the Congres4 sional Budget Act of 1974 is amended by adding at the

5 end the following new sentence: ‘‘Whenever an adjustment

6 is made under subsection (a)(6) to an allocation under that

7 subsection, the Committee on Appropriations of each House

8 shall make downward adjustments in the most recent sub9 allocations of new budget authority and outlays under this

10 subparagraph to the appropriate subcommittees of that

11 committee in the total amounts of those adjustments under

12 section 318(c)(2). The revised suballocations shall be sub13 mitted to each House by the chairman of the Committee

14 on Appropriations of that House and shall be printed in

15 the Congressional Record.’’.

16 SEC. 634. PERIODIC REPORTING OF LEDGER STATEMENTS.

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

18 1974 is amended by adding at the end the following new

19 sentence: ‘‘Such reports shall also include an up-to-date tab20 ulation of the amounts contained in the ledger and each

21 entry established by section 318(a).’’.

22 SEC. 635. DOWNWARD ADJUSTMENT OF DISCRETIONARY

23 SPENDING LIMITS.

24 The discretionary spending limits for new budget au25 thority and outlays for any fiscal year set forth in section
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1 251(c) of the Balanced Budget and Emergency Deficit Con2 trol Act of 1985, shall be reduced by the amounts set forth

3 in the final regular appropriation bill for that fiscal year

4 or joint resolution making continuing appropriations

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

6 be the sums of the Joint House-Senate Lock-box Balances

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

8 of the Congressional Budget Act of 1974. That bill or joint

9 resolution shall contain the following statement of law: ‘‘As

10 required by section 635 of the Spending Accountability

11 Lock-box Act of 1999, for fiscal year [insert appropriate

12 fiscal year] and each outyear, the adjusted discretionary

13 spending limit for new budget authority is reduced by $

14 [insert appropriate amount of reduction] and the adjusted

15 discretionary limit for outlays is reduced by $ [insert ap16 propriate amount of reduction] for the fiscal year and each

17 outyear.’’. Section 306 shall not apply to any bill or joint

18 resolution because of such statement. This adjustment shall

19 be reflected in reports under sections 254(f) and 254(g) of

20 the Balanced Budget and Emergency Deficit Control Act

21 of 1985.
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1 Subtitle D—Automatic Continuing

2 Resolution

3 SEC. 641. AUTOMATIC CONTINUING RESOLUTION.

4 (a) AMENDMENT TO TITLE 31.—Chapter 13 of title 31,

5 United States Code, is amended by inserting after section

6 1310 the following new section:

7 ‘‘§ 1311. Continuing appropriations

8 ‘‘(a)(1) If any regular appropriation bill for a fiscal

9 year does not become law prior to the beginning of such

10 fiscal year and a joint resolution making continuing appro11 priations (other than pursuant to this subsection) is not

12 in effect, there is appropriated, out of any moneys in the

13 Treasury not otherwise appropriated, and out of applicable

14 corporate or other revenues, receipts, and funds, such sums

15 as may be necessary to continue any program, project, or

16 activity for which funds were provided in the preceding fis17 cal year—

18 ‘‘(A) in the corresponding regular appropriation

19 Act for such preceding fiscal year; or

20 ‘‘(B) if the corresponding regular appropriation

21 bill for such preceding fiscal year did not become law,

22 then in a joint resolution making continuing appro23 priations for such preceding fiscal year.

24 ‘‘(2)(A) Except as provided by subparagraphs (B), (C),

25 and (D), appropriations and funds made available, and au-
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1 thority granted, for a program, project, or activity for any

2 fiscal year pursuant to this section shall be at a rate of

3 operations not in excess of the rate of operations provided

4 for in the regular appropriation Act providing for such pro5 gram, project, or activity for the preceding fiscal year, or

6 in the absence of such an Act, the rate of operations pro7 vided for such program, project, or activity pursuant to a

8 joint resolution making continuing appropriations for such

9 preceding fiscal year.

10 ‘‘(B) The applicable rate of operations for a program,

11 project, or activity for any fiscal year pursuant to this sec12 tion shall exclude amounts—

13 ‘‘(i) for which any adjustment was made under

14 section 251(b)(2)(A) or section 252(e) of the Balanced

15 Budget and Emergency Deficit Control Act of 1985

16 before the date of enactment of this section;

17 ‘‘(ii) provided for emergencies for which an ex18 emption from section 251 or 252 of such Act is grant19 ed under section 317(c) of the Congressional Budget

20 Act of 1974; or

21 ‘‘(iii) for which any adjustment is made under

22 section 251(b)(2) (C) or (D) of such Act.

23 ‘‘(C) The applicable rate of operations for a program,

24 project, or activity for any fiscal year pursuant to this sec25 tion shall include amounts provided and rescinded for such
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1 program, project, or activity in any supplemental or special

2 appropriations Act and in any rescission bill for that year

3 that is enacted into law.

4 ‘‘(D) The applicable rate of operations for a program,

5 project, or activity for any fiscal year pursuant to this sec6 tion shall be reduced by the amount of budgetary resources

7 cancelled in any such program, project, or activity resulting

8 from the prior year’s sequestration under section 251 of the

9 Balanced Budget and Emergency Deficit Control Act of

10 1985 as published in OMB’s final sequestration report for

11 the prior fiscal year.

12 ‘‘(3) Appropriations and funds made available, and

13 authority granted, for any fiscal year pursuant to this sec14 tion for a program, project, or activity shall be available

15 for the period beginning with the first day of a lapse in

16 appropriations and ending with the earlier of—

17 ‘‘(A) the date on which the applicable regular

18 appropriation bill for such fiscal year becomes law

19 (whether or not such law provides for such program,

20 project, or activity) or a continuing resolution mak21 ing appropriations becomes law, as the case may be,

22 or

23 ‘‘(B) the last day of such fiscal year.

24 ‘‘(b) An appropriation or funds made available, or au25 thority granted, for a program, project, or activity for any
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1 fiscal year pursuant to this section shall be subject to the

2 terms and conditions imposed with respect to the appro3 priation made or funds made available for the preceding

4 fiscal year, or authority granted for such program, project,

5 or activity under current law.

6 ‘‘(c) Appropriations and funds made available, and

7 authority granted, for any program, project, or activity for

8 any fiscal year pursuant to this section shall cover all obli9 gations or expenditures incurred for such program, project,

10 or activity during the portion of such fiscal year for which

11 this section applies to such program, project, or activity.

12 ‘‘(d) Expenditures made for a program, project, or ac13 tivity for any fiscal year pursuant to this section shall be

14 charged to the applicable appropriation, fund, or authoriza15 tion whenever a regular appropriation bill or a joint resolu16 tion making continuing appropriations until the end of a

17 fiscal year providing for such program, project, or activity

18 for such period becomes law.

19 ‘‘(e) This section shall not apply to a program, project,

20 or activity during a fiscal year if any other provision of

21 law (other than an authorization of appropriations)—

22 ‘‘(1) makes an appropriation, makes funds avail23 able, or grants authority for such program, project, or

24 activity to continue for such period, or
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1 ‘‘(2) specifically provides that no appropriation

2 shall be made, no funds shall be made available, or

3 no authority shall be granted for such program,

4 project, or activity to continue for such period; or

5 ‘‘(f) For purposes of this section, the term ‘regular ap6 propriation bill’ means any annual appropriation bill

7 making appropriations, otherwise making funds available,

8 or granting authority, for any of the following categories

9 of programs, projects, and activities:

10 ‘‘(1) Agriculture, rural development, and related

11 agencies programs.

12 ‘‘(2) The Departments of Commerce, Justice, and

13 State, the judiciary, and related agencies.

14 ‘‘(3) The Department of Defense.

15 ‘‘(4) The government of the District of Columbia

16 and other activities chargeable in whole or in part

17 against the revenues of the District.

18 ‘‘(5) The Departments of Labor, Health and

19 Human Services, and Education, and related agen20 cies.

21 ‘‘(6) The Department of Housing and Urban De22 velopment, and sundry independent agencies, boards,

23 commissions, corporations, and offices.

24 ‘‘(7) Energy and water development.

25 ‘‘(8) Foreign assistance and related programs.
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1 ‘‘(9) The Department of the Interior and related

2 agencies.

3 ‘‘(10) Military construction.

4 ‘‘(11) The Department of Transportation and re5 lated agencies.

6 ‘‘(12) The Treasury Department, the U.S. Postal

7 Service, the Executive Office of the President, and cer8 tain independent agencies.

9 ‘‘(13) The legislative branch.’’.

10 (b) CONFORMING AMENDMENT.—Section 202(e)(3) of

11 the Congressional Budget Act of 1974 is amended by insert12 ing ‘‘and on or before September 30’’ before ‘‘of each year’’.

13 (c) CHAPTER ANALYSIS.—The analysis of chapter 13

14 of title 31, United States Code, is amended by inserting

15 after the item relating to section 1310 the following new

16 item:

‘‘1311. Continuing appropriations.’’.

17 (d) EFFECT OF AMENDMENTS.—Nothing in the

18 amendments made by this section shall be construed to af19 fect Government obligations mandated by other law, includ20 ing obligations with respect to social security, medicare,

21 and medicaid.
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1 TITLE VII—BUDGETING IN AN

2 ERA OF SURPLUSES

3 SEC. 701. PAYGO REQUIREMENTS AND THE ON-BUDGET

4 SURPLUS.

5 (a) Section 252(a) of the Balanced Budget and Emer6 gency Deficit Control Act of 1985 is amended to read as

7 follows:

8 ‘‘(a) PURPOSE.—The purpose of this section is to trig9 ger an offsetting sequestration in the amount by which any

10 excess of decreases in receipts and increases in direct spend11 ing over increases in receipts and decreases in direct spend12 ing, caused by all direct spending and receipts legislation

13 enacted prior to October 1, 2002, exceeds estimates of the

14 on-budget surplus.’’.

15 (b) TIMING AND CALCULATION OF SEQUESTRATION.—

16 Section 252(b) of the Balanced Budget and Emergency Def17 icit Control Act of 1985 is amended to read as follows:

18 ‘‘(b) SEQUESTRATION.—

19 ‘‘(1) TIMING.—Not later than 15 calendar days

20 after the date Congress adjourns to end a session and

21 on the same day as a sequestration (if any) under

22 section 251, there shall be a sequestration to offset an

23 amount equal to—

24 ‘‘(A) any excess of decreases in receipts and

25 increases in direct spending over increases in re-
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1 ceipts and decreases in direct spending for legis2 lation enacted prior to October 1, 2002; minus

3 ‘‘(B) the estimated on-budget surplus (which

4 shall not be less than zero),

5 as calculated under paragraph (2).

6 ‘‘(2) CALCULATION OF SEQUESTRATION.—OMB

7 shall calculate the amount of the sequestration by

8 adding—

9 ‘‘(A) all OMB estimates for the budget year

10 of direct spending and receipts legislation trans11 mitted under subsection (d) for legislation en12 acted prior to October 1, 2002;

13 ‘‘(B) the estimated amount of savings in di14 rect spending programs applicable to the budget

15 year resulting from the prior year’s sequestration

16 under this section, if any, as published in OMB’s

17 final sequestration report for that prior year;

18 and

19 ‘‘(C) all OMB estimates for the current year

20 that were not reflected in the final OMB seques21 tration report for that year; and

22 then by subtracting from such sum the OMB estimate

23 for the budget year of the on-budget surplus (if any)

24 as set forth in the OMB final sequestration report in25 creased by the amount of budgetary resources can-
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1 celled in any such program, project, or activity result2 ing from a sequestration for the budget year on the

3 same day under section 251 as published in OMB’s

4 final sequestration report.’’.

5 (c) PREVIEW REPORTS.—Section 254(c)(3) of the Bal6 anced Budget and Emergency Deficit Control Act of 1985

7 is amended by redesignating subparagraph (C) as subpara8 graph (D) and by adding after subparagraph (B) the fol9 lowing new subparagraph:

10 ‘‘(C)(i) MANDATORY.—In projecting the on11 budget surplus (if any) for the budget year, di12 rect spending and receipts shall be calculated

13 consistent with the assumptions under section

14 257(b) but shall exclude all estimates of direct

15 spending and receipts legislation for such year

16 enacted after the date of enactment of this sub17 paragraph (as estimated by OMB when such leg18 islation was originally enacted).

19 ‘‘(ii) DISCRETIONARY.—Except as provided

20 by the preceding sentence, the following assump21 tions shall apply to the calculation of such esti22 mated surplus:

23 ‘‘(I) For programs, projects, and ac24 tivities for which a regular appropriation

25 Act or a joint resolution (other than pursu-
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1 ant to section 1311 of title 31, United

2 States Code) continuing appropriations

3 through the end of the budget year is en4 acted, budgetary resources other than unob5 ligated balances shall be at the level pro6 vided by that Act with the following adjust7 ments:

8 ‘‘(aa) Include amounts of budget

9 authority provided and rescinded for

10 such year in any supplemental or spe11 cial appropriation Act or rescission

12 bill that is enacted into law.

13 ‘‘(bb) Reduce the level by the

14 amount of budgetary resources canceled

15 in any such program, project, or activ16 ity by a sequestration under section

17 251 as published in OMB’s final se18 questration report for such year.

19 Substantive changes to or restrictions on en20 titlement law or other mandatory spending

21 law in an appropriation Act shall be count22 ed in determining the level of direct spend23 ing and receipts for purposes of calculating

24 the on-budget surplus under this section.
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1 ‘‘(II) For programs, projects, and ac2 tivities for which a regular appropriation

3 Act or a joint resolution (other than pursu4 ant to section 1311 of title 31, United

5 States Code) continuing appropriations

6 through the end of the budget year is not en7 acted, budgetary resources other than unob8 ligated balances shall be at the level pro9 vided for the current year in regular appro10 priation Acts or a joint resolution (other

11 than pursuant to section 1311 of title 31,

12 United States Code) continuing appropria13 tions through the end of the current year

14 with the following adjustments:

15 ‘‘(aa) Include amounts of budget

16 authority provided and rescinded for

17 such year in any supplemental or spe18 cial appropriation Act or rescission

19 bill that is enacted into law.

20 ‘‘(bb) Reduce the level by the

21 amount of budgetary resources canceled

22 in any such program, project, or activ23 ity by a sequestration under section

24 251 as published in OMB’s final se25 questration report for such year.
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1 Substantive changes to or restrictions on en2 titlement law or other mandatory spending

3 law in an appropriation Act shall be count4 ed in determining the level of direct spend5 ing and receipts for purposes of calculating

6 the on-budget surplus under this section.

7 After making such adjustments, further ad8 just such amount using the assumptions set

9 forth in section 257(c) (1)–(5).’’.

10 (d) DEFINITION OF ON-BUDGET SURPLUS.—Section

11 250(c) of the Balanced Budget and Emergency Deficit Con12 trol Act of 1985 is amended by adding at the end the fol13 lowing new paragraph:

14 ‘‘(20) The term ‘on-budget surplus’ means, with

15 respect to a fiscal year, the amount by which receipts

16 exceed outlays for all spending and receipt accounts

17 of the United States Government that are designated

18 as on-budget. Such term does not include outlays and

19 receipts of the Federal Old-Age and Survivors Insur20 ance Trust Fund, the Federal Disability Insurance

21 Trust Fund, or any other off-budget entity.’’.

22 (e) EXPEDITED RECONCILIATION PROCESS.—Section

23 258C of the Balanced Budget and Emergency Deficit Con24 trol Act of 1985 is amended as follows:
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1 (1) The side heading of subsection (a) is amend2 ed by inserting ‘‘OR IN THE HOUSE OF REPRESENTA3 TIVES’’ after ‘‘SENATE’’.

4 (2) In paragraphs (1), (2), (3), and (4) of sub5 section (a), insert ‘‘or House’’ after ‘‘Senate’’ each

6 place it appears.

7 (3) In subsection (a)(7), strike ‘‘For’’ and insert

8 ‘‘In the Senate, for’’.

9 (4) In subsection (b)(1), insert ‘‘or House’’ after

10 ‘‘Senate’’.

11 (5) In the side heading of subsection (b)(4), in12 sert ‘‘OTHER’’ after ‘‘THE’’.

13 (6) In subsection (b)(4), strike ‘‘in the Senate

14 from the House’’ and insert ‘‘in the Senate or House

15 of Representatives from the other House’’, strike ‘‘Sen16 ate’’ the second place it appears and insert ‘‘Senate

17 or House of Representatives, as the case may be,’’,

18 and strike ‘‘Senate’’ the third place it appears and

19 insert ‘‘in the applicable House’’.

20 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

22 the ‘‘Comprehensive Budget Process Reform

23 Act of 1999’’.

24 (b) TABLE OF CONTENTS.—

Sec. 1. Short title; table of contents.

Sec. 2. Purpose.

Sec. 3. Effective date.
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Sec. 4. Declaration of purposes for the Budget Act.

TITLE I—BUDGET WITH FORCE OF LAW

Sec. 101. Purposes.

Sec. 102. The timetable.

Sec. 103. Annual joint resolutions on the budget.

Sec. 104. Budget required before spending bills may be considered; fall-back procedures if President vetoes

joint budget resolution.

Sec. 105. Conforming amendments to effectuate joint resolutions on the budget.

TITLE II—RESERVE FUND FOR EMERGENCIES

Sec. 201. Purpose.

Sec. 202. Repeal of adjustments for emergencies.

Sec. 203. OMB emergency criteria.

Sec. 204. Development of guidelines for application of emergency definition.

Sec. 205. Reserve fund for emergencies in President’s budget.

Sec. 206. Adjustments and reserve fund for emergencies in

joint budget resolutions.

Sec. 207. Up-to-date tabulations.

Sec. 208. Prohibition on amendments to emergency reserve

fund.

Sec. 209. Effective date.

TITLE III—ENFORCEMENT OF BUDGETARY DECISIONS

Sec. 301. Purposes.

Subtitle A—Application of Points of Order to Unreported

Legislation

Sec. 311. Application of Budget Act points of order to unreported legislation.

Subtitle B—Compliance with Budget Resolution

Sec. 321. Budget compliance statements.

Subtitle C—Justification for Budget Act Waivers

Sec. 331. Justification for Budget Act waivers in the House of

Representatives.

Subtitle D—CBO Scoring of Conference Reports

Sec. 341. CBO scoring of conference reports.

TITLE IV—ACCOUNTABILITY FOR FEDERAL SPENDING

Sec. 401. Purposes.

Subtitle A—Limitations on Direct Spending

Sec. 411. Fixed-year authorizations required for new programs.
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Sec. 412. Amendments to subject new direct spending to annual appropriations.

Subtitle B—Enhanced Congressional Oversight

Responsibilities

Sec. 421. Ten-year congressional review requirement of permanent budget authority.

Sec. 422. Justifications of direct spending.

Sec. 423. Survey of activity reports of House committees.

Sec. 424. Continuing study of additional budget process reforms.

Sec. 425. GAO reports.

Subtitle C—Strengthened Accountability

Sec. 431. Ten-year CBO estimates.

Sec. 432. Repeal of rule XXIII of the Rules of the House of Representatives.

TITLE V—BUDGETING FOR UNFUNDED LIABILITIES AND

OTHER LONG-TERM OBLIGATIONS

Sec. 501. Purposes.

Subtitle A—Budgetary Treatment of Federal Insurance

Programs

Sec. 511. Federal insurance programs.

Subtitle B—Reports on Long-Term Budgetary Trends

Sec. 521. Reports on long-term budgetary trends.

TITLE VI—BASELINE, BYRD RULE, LOCK-BOX, AND

AUTOMATIC CONTINUING RESOLUTION

Sec. 601. Purpose.

Subtitle A—The Baseline

Sec. 611. The President’s budget.

Sec. 612. The congressional budget.

Sec. 613. Congressional Budget Office reports to committees.

Sec. 614. Outyear assumptions for discretionary spending.

Subtitle B—The Byrd Rule

Sec. 621. Limitation on Byrd rule.

Subtitle C—Spending Accountability Lock-Box

Sec. 631. Short title.

Sec. 632. Spending accountability lock-box ledger.

Sec. 633. Downward adjustment of section 302(a) allocations

and section 302(b) suballocations.

Sec. 634. Periodic reporting of ledger statements.

Sec. 635. Downward adjustment of discretionary spending limits.
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Subtitle D—Automatic Continuing Resolution

Sec. 641. Automatic continuing resolution.

TITLE VII—BUDGETING IN AN ERA OF SURPLUSES

Sec. 701. Paygo requirements and the on-budget surplus.

1 SEC. 2. PURPOSE.

2 The purposes of this Act are to—

3 (1) give the budget the force of law;

4 (2) budget for emergencies;

5 (3) display the unfunded liabilities of

6 Federal insurance programs;

7 (4) strengthen enforcement of budg8 etary decisions;

9 (5) increase accountability for Fed10 eral spending;

11 (6) mitigate the bias in the budget

12 process toward higher spending; and

13 (7) modify paygo requirements when

14 there is an on-budget surplus.

15 SEC. 3. EFFECTIVE DATE.

16 Except as otherwise specifically provided,

17 this Act and the amendments made by this

18 Act shall become effective on the date of en19 actment of this Act and shall apply with re20 spect to fiscal years beginning after Sep21 tember 30, 2000.
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1 SEC. 4. DECLARATION OF PURPOSES FOR THE BUDGET

2 ACT.

3 Paragraphs (1) and (2) of section 2 of the

4 Congressional Budget and Impoundment Con5 trol Act of 1974 are amended to read as fol6 lows:

7 ‘‘(1) to assure effective control over

8 the budgetary process;

9 ‘‘(2) to facilitate the determination

10 each year of the appropriate level of Fed11 eral revenues and expenditures by the

12 Congress and the President;’’.

13 TITLE I—BUDGET WITH FORCE

14 OF LAW

15 SEC. 101. PURPOSES.

16 The purposes of this title are to—

17 (1) focus initial budgetary delibera18 tions on aggregate levels of Federal

19 spending and taxation;

20 (2) encourage cooperation between

21 Congress and the President in developing

22 overall budgetary priorities; and

23 (3) reach budgetary decisions early in

24 the legislative cycle.
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1 SEC. 102. THE TIMETABLE.

2 Section 300 of the Congressional Budget

3 Act of 1974 is amended to read as follows:

4 ‘‘TIMETABLE

5 ‘‘SEC. 300. The timetable with respect to

6 the congressional budget process for any fis7 cal year is as follows:

‘‘On or before: Action to be completed:

First Monday in February .. President submits his budget.

February 15 ............................ Congressional Budget Office

submits report to Budget

Committees.

Not later than 6 weeks

after President submits

budget.

Committees submit views and

estimates to Budget Committees.

April 1 ...................................... Senate Budget Committee reports joint resolution on the

budget.

April 15 .................................... Congress completes action on

joint resolution on the

budget.

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

appropriation bill.

June 15 .................................... Congress completes action on

reconciliation legislation.

June 30 .................................... House completes action on

annual appropriation bills.

October 1 ................................. Fiscal year begins.’’.

8 SEC. 103. ANNUAL JOINT RESOLUTIONS ON THE BUDGET.

9 (a) CONTENT OF ANNUAL JOINT RESOLU10 TIONS ON THE BUDGET.—Section 301(a) of the

11 Congressional Budget Act of 1974 is amended

12 as follows:

13 (1) Strike paragraph (4) and insert

14 the following new paragraph:
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1 ‘‘(4) subtotals of new budget authority

2 and outlays for nondefense discretionary

3 spending, defense discretionary spend4 ing, direct spending (excluding interest),

5 and interest; and for fiscal years to which

6 the amendments made by title II of the

7 Comprehensive Budget Process Reform

8 Act of 1999 apply, subtotals of new budg9 et authority and outlays for emer10 gencies;’’.

11 (2) Strike the last sentence of such

12 subsection.

13 (b) ADDITIONAL MATTERS IN JOINT RESOLU14 TION.—Section 301(b) of the Congressional

15 Budget Act of 1974 is amended as follows:

16 (1) Strike paragraphs (2), (4), (6), (8),

17 and (9) and redesignate paragraph (7) as

18 paragraph (6).

19 (2) After paragraph (1), insert the fol20 lowing new paragraph:

21 ‘‘(2) if submitted by the Committee on

22 Ways and Means of the House of Rep23 resentatives or the Committee on Fi24 nance of the Senate to the Committee on

25 the Budget of that House of Congress,
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1 amend section 3101 of title 31, United

2 States Code, to change the statutory limit

3 on the public debt;’’.

4 (3) After paragraph (3), insert the fol5 lowing new paragraph:

6 ‘‘(4) require such other congressional

7 procedures, relating to the budget, as

8 may be appropriate to carry out the pur9 poses of this Act;’’.

10 (c) REQUIRED CONTENTS OF REPORT.—Sec11 tion 301(e)(2) of the Congressional Budget Act

12 of 1974 is amended as follows:

13 (1) Redesignate subparagraphs (A),

14 (B), (C), (D), (E), and (F) as subpara15 graphs (B), (C), (E), (F), (H), and (I), re16 spectively.

17 (2) Before subparagraph (B) (as re18 designated), insert the following new sub19 paragraph:

20 ‘‘(A) new budget authority and

21 outlays for each major functional cat22 egory, based on allocations of the

23 total levels set forth pursuant to sub24 section (a)(1);’’.
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1 (3) In subparagraph (C) (as redesig2 nated), strike ‘‘mandatory’’ and insert ‘‘di3 rect spending’’.

4 (4) After subparagraph (C) (as redes5 ignated), insert the following new sub6 paragraph:

7 ‘‘(D) a measure, as a percentage of

8 gross domestic product, of total out9 lays, total Federal revenues, the sur10 plus or deficit, and new outlays for

11 nondefense discretionary spending,

12 defense spending, and direct spend13 ing as set forth in such resolution;’’.

14 (5) After subparagraph (F) (as redes15 ignated), insert the following new sub16 paragraph:

17 ‘‘(G) if the joint resolution on the

18 budget includes any allocation to a

19 committee (other than the Committee

20 on Appropriations) of levels in excess

21 of current law levels, a justification

22 for not subjecting any program,

23 project, or activity (for which the al24 location is made) to annual discre25 tionary appropriations;’’.
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1 (d) ADDITIONAL CONTENTS OF REPORT.—

2 Section 301(e)(3) of the Congressional Budget

3 Act of 1974 is amended as follows:

4 (1) Redesignate subparagraphs (A)

5 and (B) as subparagraphs (B) and (C), re6 spectively, strike subparagraphs (C) and

7 (D), and redesignate subparagraph (E) as

8 subparagraph (D).

9 (2) Before subparagraph (B), insert

10 the following new subparagraph:

11 ‘‘(A) reconciliation directives de12 scribed in section 310;’’.

13 (e) PRESIDENT’S BUDGET SUBMISSION TO THE

14 CONGRESS.—(1) The first two sentences of sec15 tion 1105(a) of title 31, United States Code, are

16 amended to read as follows:

17 ‘‘On or after the first Monday in January but

18 not later than the first Monday in February

19 of each year the President shall submit a

20 budget of the United States Government for

21 the following fiscal year which shall set forth

22 the following levels:

23 ‘‘(A) totals of new budget authority

24 and outlays;
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1 ‘‘(B) total Federal revenues and the

2 amount, if any, by which the aggregate

3 level of Federal revenues should be in4 creased or decreased by bills and resolu5 tions to be reported by the appropriate

6 committees;

7 ‘‘(C) the surplus or deficit in the

8 budget;

9 ‘‘(D) subtotals of new budget author10 ity and outlays for nondefense discre11 tionary spending, defense discretionary

12 spending, direct spending, and interest;

13 and for fiscal years to which the amend14 ments made by title II of the Comprehen15 sive Budget Process Reform Act of 1999

16 apply, subtotals of new budget authority

17 and outlays for emergencies; and

18 ‘‘(E) the public debt.

19 Each budget submission shall include a budg20 et message and summary and supporting in21 formation and, as a separately delineated

22 statement, the levels required in the pre23 ceding sentence for at least each of the 9 ensu24 ing fiscal years.’’.
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1 (2) The third sentence of section 1105(a) of

2 title 31, United States Code, is amended by in3 serting ‘‘submission’’ after ‘‘budget’’.

4 (f) LIMITATION ON CONTENTS OF BUDGET

5 RESOLUTIONS.—Section 305 of the Congres6 sional Budget Act of 1974 is amended by add7 ing at the end the following new subsection:

8 ‘‘(e) LIMITATION ON CONTENTS.—(1) It shall

9 not be in order in the House of Representa10 tives or in the Senate to consider any joint

11 resolution on the budget or any amendment

12 thereto or conference report thereon that

13 contains any matter referred to in paragraph

14 (2).

15 ‘‘(2) Any joint resolution on the budget or

16 any amendment thereto or conference report

17 thereon that contains any matter not per18 mitted in section 301(a) or (b) shall not be

19 treated in the House of Representatives or the

20 Senate as a budget resolution under sub21 section (a) or (b) or as a conference report on

22 a budget resolution under subsection (c) of

23 this section.’’.
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1 SEC. 104. BUDGET REQUIRED BEFORE SPENDING BILLS

2 MAY BE CONSIDERED; FALL-BACK PROCE3 DURES IF PRESIDENT VETOES JOINT BUDG4 ET RESOLUTION.

5 (a) AMENDMENTS TO SECTION 302.—Section

6 302(a) of the Congressional Budget Act of 1974

7 is amended by striking paragraph (5).

8 (b) AMENDMENTS TO SECTION 303 AND CON9 FORMING AMENDMENTS.—(1) Section 303 of the

10 Congressional Budget Act of 1974 is

11 amended—

12 (A) in subsection (b), by striking para13 graph (2), by inserting ‘‘or’’ at the end of

14 paragraph (1), and by redesignating para15 graph (3) as paragraph (2); and

16 (B) by striking its section heading

17 and inserting the following new section

18 heading: ‘‘CONSIDERATION OF BUDGET-RE19 LATED LEGISLATION BEFORE BUDGET BE20 COMES LAW’’.

21 (2) Section 302(g)(1) of the Congressional

22 Budget Act of 1974 is amended by striking

23 ‘‘and, after April 15, section 303(a)’’.

24 (3)(A) Section 904(c)(1) of the Congres25 sional Budget Act of 1974 is amended by in26 serting ‘‘303(a),’’ before ‘‘305(b)(2),’’.
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1 (B) Section 904(d)(2) of the Congressional

2 Budget Act of 1974 is amended by inserting

3 ‘‘303(a),’’ before ‘‘305(b)(2),’’.

4 (c) EXPEDITED PROCEDURES UPON VETO OF

5 JOINT RESOLUTION ON THE BUDGET.—(1) Title

6 III of the Congressional Budget Act of 1974 is

7 amended by adding after section 315 the fol8 lowing new section:

9 ‘‘EXPEDITED PROCEDURES UPON VETO OF JOINT

10 RESOLUTION ON THE BUDGET

11 ‘‘SEC. 316. (a) SPECIAL RULE.—If the Presi12 dent vetoes a joint resolution on the budget

13 for a fiscal year, the majority leader of the

14 House of Representatives or Senate (or his

15 designee) may introduce a concurrent resolu16 tion on the budget or joint resolution on the

17 budget for such fiscal year. If the Committee

18 on the Budget of either House fails to report

19 such concurrent or joint resolution referred

20 to it within five calendar days (excluding Sat21 urdays, Sundays, or legal holidays except

22 when that House of Congress is in session)

23 after the date of such referral, the committee

24 shall be automatically discharged from fur25 ther consideration of such resolution and
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1 such resolution shall be placed on the appro2 priate calendar.

3 ‘‘(b) PROCEDURE IN THE HOUSE OF REP4 RESENTATIVES AND THE SENATE.—

5 ‘‘(1) Except as provided in paragraph

6 (2), the provisions of section 305 for the

7 consideration in the House of Represent8 atives and in the Senate of joint resolu9 tions on the budget and conference re10 ports thereon shall also apply to the con11 sideration of concurrent resolutions on

12 the budget introduced under subsection

13 (a) and conference reports thereon.

14 ‘‘(2) Debate in the Senate on any con15 current resolution on the budget or joint

16 resolution on the budget introduced

17 under subsection (a), and all amendments

18 thereto and debatable motions and ap19 peals in connection therewith, shall be

20 limited to not more than 10 hours and in

21 the House such debate shall be limited to

22 not more than 3 hours.

23 ‘‘(c) CONTENTS OF CONCURRENT RESOLU24 TIONS.—Any concurrent resolution on the
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1 budget introduced under subsection (a) shall

2 be in compliance with section 301.

3 ‘‘(d) EFFECT OF CONCURRENT RESOLUTION

4 ON THE BUDGET.—Notwithstanding any other

5 provision of this title, whenever a concurrent

6 resolution on the budget described in sub7 section (a) is agreed to, then the aggregates,

8 allocations, and reconciliation directives (if

9 any) contained in the report accompanying

10 such concurrent resolution or in such concur11 rent resolution shall be considered to be the

12 aggregates, allocations, and reconciliation di13 rectives for all purposes of sections 302, 303,

14 and 311 for the applicable fiscal years and

15 such concurrent resolution shall be deemed to

16 be a joint resolution for all purposes of this

17 title and the Rules of the House of Represent18 atives and any reference to the date of enact19 ment of a joint resolution on the budget shall

20 be deemed to be a reference to the date

21 agreed to when applied to such concurrent

22 resolution.’’.

23 (2) The table of contents set forth in sec24 tion 1(b) of the Congressional Budget and Im25 poundment Control Act of 1974 is amended by
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1 inserting after the item relating to section 315

2 the following new item:

‘‘Sec. 316. Expedited procedures upon veto of joint resolution

on the budget.’’.

3 SEC. 105. CONFORMING AMENDMENTS TO EFFECTUATE

4 JOINT RESOLUTIONS ON THE BUDGET.

5 (a) CONFORMING AMENDMENTS TO THE CON6 GRESSIONAL BUDGET AND IMPOUNDMENT CON7 TROL ACT OF 1974.—(1)(A) Sections 301, 302,

8 303, 305, 308, 310, 311, 312, 314, 405, and 904

9 of the Congressional Budget Act of 1974 (2

10 U.S.C. 621 et seq.) are amended by striking

11 ‘‘concurrent’’ each place it appears and by in12 serting ‘‘joint’’.

13 (B)(i) Sections 302(d), 302(g), 308(a)(1)(A),

14 and 310(d)(1) of the Congressional Budget Act

15 of 1974 are amended by striking ‘‘most re16 cently agreed to concurrent resolution on the

17 budget’’ each place it occurs and inserting

18 ‘‘most recently enacted joint resolution on the

19 budget or agreed to concurrent resolution on

20 the budget (as applicable)’’.

21 (ii) The section heading of section 301 is

22 amended by striking ‘‘adoption of concurrent

23 resolution’’ and inserting ‘‘joint resolutions’’;
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1 (iii) Section 304 of such Act is amended to

2 read as follows:

3 ‘‘PERMISSIBLE REVISIONS OF BUDGET

4 RESOLUTIONS

5 ‘‘SEC. 304. At any time after the joint reso6 lution on the budget for a fiscal year has been

7 enacted pursuant to section 301, and before

8 the end of such fiscal year, the two Houses

9 and the President may enact a joint resolu10 tion on the budget which revises or reaffirms

11 the joint resolution on the budget for such fis12 cal year most recently enacted. If a concur13 rent resolution on the budget has been agreed

14 to pursuant to section 316, then before the

15 end of such fiscal year, the two Houses may

16 adopt a concurrent resolution on the budget

17 which revises or reaffirms the concurrent res18 olution on the budget for such fiscal year

19 most recently agreed to.’’.

20 (C) Sections 302, 303, 310, and 311, of such

21 Act are amended by striking ‘‘agreed to’’ each

22 place it appears and by inserting ‘‘enacted’’.

23 (2)(A) Paragraph (4) of section 3 of the

24 Congressional Budget and Impoundment Con25 trol Act of 1974 is amended by striking ‘‘con-
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1 current’’ each place it appears and by insert2 ing ‘‘joint’’.

3 (B) The table of contents set forth in sec4 tion 1(b) of such Act is amended—

5 (i) in the item relating to section 301,

6 by striking ‘‘adoption of concurrent reso7 lution’’ and inserting ‘‘joint resolutions’’;

8 (ii) by striking the item relating to

9 section 303 and inserting the following:

‘‘Sec. 303. Consideration of budget-related legislation before

budget becomes law.’’;

10 (iii) in the item relating to section

11 304, by striking ‘‘concurrent’’ and insert12 ing ‘‘budget’’ the first place it appears

13 and by striking ‘‘on the budget’’; and

14 (iv) by striking ‘‘concurrent’’ and in15 serting ‘‘joint’’ in the item relating to sec16 tion 305.

17 (b) CONFORMING AMENDMENTS TO THE

18 RULES OF THE HOUSE OF REPRESENTATIVES.—(1)

19 Clauses 1(e)(1), 4(a)(4), 4(b)(2), 4(f)(1)(A), and

20 4(f)(2) of rule X, clause 10 of rule XVIII, and

21 clause 10 of rule XX of the Rules of the House

22 of Representatives are amended by striking

23 ‘‘concurrent’’ each place it appears and insert24 ing ‘‘joint’’.
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1 (2) Clause 10 of rule XVIII of the Rules of

2 the House of Representatives is amended—

3 (A) in paragraph (b)(2), by striking

4 ‘‘(5)’’ and inserting ‘‘(6)’’; and

5 (B) by striking paragraph (c).

6 (c) CONFORMING AMENDMENTS TO THE BAL7 ANCED BUDGET AND EMERGENCY DEFICIT CON8 TROL ACT OF 1985.—Section 258C(b)(1) of the

9 Balanced Budget and Emergency Deficit Con10 trol Act of 1985 (2 U.S.C. 907d(b)(1)) is amend11 ed by striking ‘‘concurrent’’ and inserting

12 ‘‘joint’’.

13 (d) CONFORMING AMENDMENTS TO SECTION

14 310 REGARDING RECONCILIATION DIRECTIVES.—

15 (1) The side heading of section 310(a) of the

16 Congressional Budget Act of 1974 (as amend17 ed by section 105(a)) is further amended by in18 serting ‘‘JOINT EXPLANATORY STATEMENT AC19 COMPANYING CONFERENCE REPORT ON’’ before

20 ‘‘JOINT’’.

21 (2) Section 310(a) of such Act is amended

22 by striking ‘‘A’’ and inserting ‘‘The joint ex23 planatory statement accompanying the con24 ference report on a’’.
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1 (3) The first sentence of section 310(b) of

2 such Act is amended by striking ‘‘If’’ and in3 serting ‘‘If the joint explanatory statement ac4 companying the conference report on’’.

5 (4) Section 310(c)(1) of such Act is amend6 ed by inserting ‘‘the joint explanatory state7 ment accompanying the conference report

8 on’’ after ‘‘pursuant to’’.

9 (5) Subsection (g) of section 310 of such

10 Act is repealed.

11 (e) CONFORMING AMENDMENTS TO SECTION 3

12 REGARDING DIRECT SPENDING.—Section 3 of

13 the Congressional Budget and Impoundment

14 Control Act of 1974 is amended by adding at

15 the end the following new paragraph:

16 ‘‘(11) The term ‘direct spending’ has

17 the meaning given to such term in sec18 tion 250(c)(8) of the Balanced Budget and

19 Emergency Deficit Control Act of 1985.’’.

20 (f) TECHNICAL AMENDMENT REGARDING RE21 VISED SUBALLOCATIONS.—Section 314(d) of the

22 Congressional Budget Act of 1974 is amended

23 by—

24 (1) striking ‘‘REPORTING’’ in the side

25 heading, by inserting ‘‘the chairmen of’’
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1 before ‘‘the Committees’’, and by striking

2 ‘‘may report’’ and inserting ‘‘shall make

3 and have published in the Congressional

4 Record’’; and

5 (2) adding at the end the following

6 new sentence: ‘‘For purposes of consid7 ering amendments (other than for

8 amounts for emergencies covered by sub9 section (b)(1)), suballocations shall be

10 deemed to be so adjusted.’’.

11 TITLE II—RESERVE FUND FOR

12 EMERGENCIES

13 SEC. 201. PURPOSE.

14 The purposes of this title are to—

15 (1) develop budgetary and fiscal pro16 cedures for emergencies;

17 (2) subject spending for emergencies

18 to budgetary procedures and controls;

19 and

20 (3) establish criteria for determining

21 compliance with emergency require22 ments.

23 SEC. 202. REPEAL OF ADJUSTMENTS FOR EMERGENCIES.

24 (a) DISCRETIONARY SPENDING LIMITS.—(1)

25 Section 251(b)(2)(A) of the Balanced Budget
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1 and Emergency Deficit Control Act of 1985 is

2 repealed.

3 (2) Such section 251(b)(2) is further

4 amended by redesignating subparagraphs (B)

5 through (G) as subparagraphs (A) through (F).

6 (b) DIRECT SPENDING.—Sections 252(e) and

7 252(d)(4)(B) of the Balanced Budget and

8 Emergency Deficit Control Act of 1985 are re9 pealed.

10 (c) EMERGENCY DESIGNATION.—Clause 2 of

11 rule XXI of the Rules of the House of Rep12 resentatives is amended by repealing para13 graph (e) and by redesignating paragraph (f)

14 as paragraph (e).

15 (d) AMOUNT OF ADJUSTMENTS.—Section

16 314(b) of the Congressional Budget Act of 1974

17 is amended by striking paragraph (1) and by

18 redesignating paragraphs (2) through (6) as

19 paragraphs (1) through (5), respectively.

20 SEC. 203. OMB EMERGENCY CRITERIA.

21 Section 3 of the Congressional Budget and

22 Impoundment Control Act of 1974 (as amend23 ed by section 105(e)) is further amended by

24 adding at the end the following new para25 graph:
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1 ‘‘(12)(A) The term ‘emergency’ means

2 a situation that—

3 ‘‘(i) requires new budget author4 ity and outlays (or new budget au5 thority and the outlays flowing there6 from) for the prevention or mitiga7 tion of, or response to, loss of life or

8 property, or a threat to national secu9 rity; and

10 ‘‘(ii) is unanticipated.

11 ‘‘(B) As used in subparagraph (A), the

12 term ‘unanticipated’ means that the situ13 ation is—

14 ‘‘(i) sudden, which means quickly

15 coming into being or not building up

16 over time;

17 ‘‘(ii) urgent, which means a press18 ing and compelling need requiring

19 immediate action;

20 ‘‘(iii) unforeseen, which means

21 not predicted or anticipated as an

22 emerging need; and

23 ‘‘(iv) temporary, which means not

24 of a permanent duration.’’.
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1 SEC. 204. DEVELOPMENT OF GUIDELINES FOR APPLICA2 TION OF EMERGENCY DEFINITION.

3 Not later than 5 months after the date of

4 enactment of this Act, the chairmen of the

5 Committees on the Budget (in consultation

6 with the President) shall, after consulting

7 with the chairmen of the Committees on Ap8 propriations and applicable authorizing com9 mittees of their respective Houses and the Di10 rectors of the Congressional Budget Office

11 and the Office of Management and Budget,

12 jointly publish in the Congressional Record

13 guidelines for application of the definition of

14 emergency set forth in section 3(12) of the

15 Congressional Budget and Impoundment Con16 trol Act of 1974.

17 SEC. 205. RESERVE FUND FOR EMERGENCIES IN PRESI18 DENT’S BUDGET.

19 Section 1105(f) of title 31, United States

20 Code is amended by adding at the end the fol21 lowing new sentences: ‘‘Such budget submis22 sion shall also comply with the requirements

23 of section 317(b) of the Congressional Budget

24 Act of 1974 and, in the case of any budget au25 thority requested for an emergency, such sub26 mission shall include a detailed justification
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1 of why such emergency is an emergency with2 in the meaning of section 3(12) of the Congres3 sional Budget Act of 1974.’’.

4 SEC. 206. ADJUSTMENTS AND RESERVE FUND FOR EMER5 GENCIES IN JOINT BUDGET RESOLUTIONS.

6 (a) EMERGENCIES.—Title III of the Congres7 sional Budget Act of 1974 (as amended by sec8 tion 104(c)) is further amended by adding at

9 the end the following new section:

10 ‘‘EMERGENCIES

11 ‘‘SEC. 317. (a) ADJUSTMENTS.—

12 ‘‘(1) IN GENERAL.—After the reporting

13 of a bill or joint resolution or the submis14 sion of a conference report thereon that

15 provides budget authority for any emer16 gency as identified pursuant to sub17 section (c), the Committee on the Budget

18 of the House of Representatives or the

19 Senate shall—

20 ‘‘(A) determine and certify, pursu21 ant to the guidelines referred to in

22 section 204 of the Comprehensive

23 Budget Process Reform Act of 1999,

24 the portion (if any) of the amount so

25 specified that is for an emergency
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1 within the meaning of section 3(12);

2 and

3 ‘‘(B) make the adjustment set

4 forth in paragraph (2) for the amount

5 of new budget authority (or outlays)

6 in that measure and the outlays flow7 ing from that budget authority.

8 ‘‘(2) MATTERS TO BE ADJUSTED.—The

9 adjustments referred to in paragraph (1)

10 are to be made to the allocations made

11 pursuant to the appropriate joint resolu12 tion on the budget (or concurrent resolu13 tion on the budget, as the case may be)

14 pursuant to section 302(a) and shall be in

15 an amount not to exceed the amount re16 served for emergencies pursuant to the

17 requirements of subsection (b).

18 ‘‘(b) RESERVE FUND FOR EMERGENCIES.—

19 ‘‘(1) AMOUNTS.—The amount set forth

20 in the reserve fund for emergencies for

21 budget authority and outlays for a fiscal

22 year pursuant to section 301(a)(4) shall

23 equal—

24 ‘‘(A) the average of the enacted

25 levels of budget authority for emer-
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1 gencies in the 5 fiscal years preceding

2 the current year; and

3 ‘‘(B) the average of the levels of

4 outlays for emergencies in the 5 fiscal

5 years preceding the current year

6 flowing from the budget authority re7 ferred to in subparagraph (A), but

8 only in the fiscal year for which such

9 budget authority first becomes avail10 able for obligation.

11 ‘‘(2) AVERAGE LEVELS.—For purposes

12 of paragraph (1), the amount used for a

13 fiscal year to calculate the average of the

14 enacted levels when one or more of such

15 5 preceding fiscal years is any of fiscal

16 years 1994 through 1998 is as follows: the

17 amount of enacted levels of budget au18 thority and the amount of new outlays

19 flowing therefrom for emergencies, but

20 only in the fiscal year for which such

21 budget authority first becomes available

22 for obligation for each of such 5 fiscal

23 years, which shall be determined by the

24 Committees on the Budget of the House

25 of Representatives and the Senate after
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1 receipt of a report on such matter trans2 mitted to such committees by the Direc3 tor of the Congressional Budget Office 6

4 months after the date of enactment of

5 this section and thereafter in February of

6 each calendar year.

7 ‘‘(c) COMMITTEE NOTIFICATION OF EMER8 GENCY LEGISLATION.—Whenever any com9 mittee of either House (including a committee

10 of conference) reports any bill or joint resolu11 tion that provides budget authority for any

12 emergency, the report accompanying that bill

13 or joint resolution (or the joint explanatory

14 statement of managers in the case of a con15 ference report on any such bill or joint resolu16 tion) shall identify all provisions that provide

17 budget authority and the outlays flowing

18 therefrom for such emergency and include a

19 statement of the reasons why such budget au20 thority meets the definition of an emergency

21 pursuant to the guidelines referred to in sec22 tion 204 of the Comprehensive Budget Proc23 ess Reform Act of 1999.’’.

24 (b) CONFORMING AMENDMENT.—The table of

25 contents set forth in section 1(b) of the Con-
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1 gressional Budget and Impoundment Control

2 Act of 1974 is amended by inserting after the

3 item relating to section 316 the following new

4 item:

‘‘Sec. 317. Emergencies.’’.

5 SEC. 207. UP-TO-DATE TABULATIONS.

6 Section 308(b)(2) of the Congressional

7 Budget Act of 1974 is amended by striking

8 ‘‘and’’ at the end of subparagraph (B), by

9 striking the period at the end of subpara10 graph (C) and inserting ‘‘; and’’, and by adding

11 at the end the following new subparagraph:

12 ‘‘(D) shall include an up-to-date

13 tabulation of amounts remaining in

14 the reserve fund for emergencies.’’.

15 SEC. 208. PROHIBITION ON AMENDMENTS TO EMERGENCY

16 RESERVE FUND.

17 (a) POINT OF ORDER.—Section 305 of the

18 Congressional Budget Act of 1974 (as amend19 ed by section 103(c)) is further amended by

20 adding at the end the following new sub21 section:

22 ‘‘(f) POINT OF ORDER REGARDING EMER23 GENCY RESERVE FUND.—It shall not be in order

24 in the House of Representatives or in the Sen25 ate to consider an amendment to a joint reso-
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1 lution on the budget (or concurrent resolu2 tion on the budget, as the case may be) which

3 changes the amount of budget authority and

4 outlays set forth in section 301(a)(4) for emer5 gency reserve fund.’’.

6 (b) TECHNICAL AMENDMENT.—(1) Section

7 904(c)(1) of the Congressional Budget Act of

8 1974 is amended by inserting ‘‘305(e), 305(f),’’

9 after ‘‘305(c)(4),’’.

10 (2) Section 904(d)(2) of the Congressional

11 Budget Act of 1974 is amended by inserting

12 ‘‘305(e), 305(f),’’ after ‘‘305(c)(4),’’.

13 SEC. 209. EFFECTIVE DATE.

14 The amendments made by this title shall

15 apply to fiscal year 2001 and subsequent fiscal

16 years, but such amendments shall take effect

17 only after the enactment of legislation chang18 ing or extending for any fiscal year the budg19 etary procedures set forth in sections 251 and

20 252 of the Balanced Budget and Emergency

21 Deficit Control Act of 1985.

22 TITLE III—ENFORCEMENT OF

23 BUDGETARY DECISIONS

24 SEC. 301. PURPOSES.

25 The purposes of this title are to—
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1 (1) close loopholes in the enforcement

2 of budget resolutions;

3 (2) require committees of the House

4 of Representatives to include budget

5 compliance statements in reports accom6 panying all legislation; and

7 (3) require committees of the House

8 of Representatives to justify the need for

9 waivers of the Congressional Budget Act

10 of 1974;

11 (4) provide cost estimates of con12 ference reports.

13 Subtitle A—Application of Points of

14 Order to Unreported Legislation

15 SEC. 311. APPLICATION OF BUDGET ACT POINTS OF ORDER

16 TO UNREPORTED LEGISLATION.

17 (a) Section 315 of the Congressional Budg18 et Act of 1974 is amended by striking ‘‘re19 ported’’ the first place it appears.

20 (b) Section 303(b) of the Congressional

21 Budget Act of 1974 (as amended by section

22 104(b)(1)) is further amended—

23 (1) in paragraph (1), by striking ‘‘(A)’’

24 and by redesignating subparagraph (B)

25 as paragraph (2) and by striking the
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1 semicolon at the end of such new para2 graph (2) and inserting a period; and

3 (2) by striking paragraph (2) (as re4 designated by such section 104(b)(1)).

5 Subtitle B—Compliance with

6 Budget Resolution

7 SEC. 321. BUDGET COMPLIANCE STATEMENTS.

8 Clause 3(d) of rule XIII of the Rules of the

9 House of Representatives is amended by add10 ing at the end the following new subpara11 graph:

12 ‘‘(4) A budget compliance statement

13 prepared by the chairman of the Com14 mittee on the Budget, if timely submitted

15 prior to the filing of the report, which

16 shall include assessment by such chair17 man as to whether the bill or joint resolu18 tion complies with the requirements of

19 sections 302, 303, 306, 311, and 401 of the

20 Congressional Budget Act of 1974 and

21 may include the budgetary implications

22 of that bill or joint resolution under sec23 tion 251 or 252 of the Balanced Budget

24 and Emergency Deficit Control Act of

25 1985, as applicable.’’.
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1 Subtitle C—Justification for

2 Budget Act Waivers

3 SEC. 331. JUSTIFICATION FOR BUDGET ACT WAIVERS IN

4 THE HOUSE OF REPRESENTATIVES.

5 Clause 6 of rule XIII of the Rules of the

6 House of Representatives is amended by add7 ing at the end the following new paragraph:

8 ‘‘(h) It shall not be in order to consider

9 any resolution from the Committee on Rules

10 for the consideration of any reported bill or

11 joint resolution which waives section 302, 303,

12 311, or 401 of the Congressional Budget Act of

13 1974, unless the report accompanying such

14 resolution includes a description of the provi15 sion proposed to be waived, an identification

16 of the section being waived, the reasons why

17 such waiver should be granted, and an esti18 mated cost of the provisions to which the

19 waiver applies.’’.

20 Subtitle D—CBO Scoring of

21 Conference Reports

22 SEC. 341. CBO SCORING OF CONFERENCE REPORTS.

23 (a) The first sentence of section 402 of the

24 Congressional Budget Act of 1974 is amended

25 as follows:
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1 (1) Insert ‘‘or conference report there2 on,’’ before ‘‘and submit’’.

3 (2) In paragraph (1), strike ‘‘bill or

4 resolution’’ and insert ‘‘bill, joint resolu5 tion, or conference report’’.

6 (3) At the end of paragraph (2) strike

7 ‘‘and’’, at the end of paragraph (3) strike

8 the period and insert ‘‘; and’’, and after

9 such paragraph (3) add the following new

10 paragraph:

11 ‘‘(4) A determination of whether such

12 bill, joint resolution, or conference report

13 provides direct spending.’’.

14 (b) The second sentence of section 402 of

15 the Congressional Budget Act of 1974 is

16 amended by inserting before the period the

17 following: ‘‘, or in the case of a conference re18 port, shall be included in the joint explana19 tory statement of managers accompanying

20 such conference report if timely submitted be21 fore such report is filed’’.

22 TITLE IV—ACCOUNTABILITY

23 FOR FEDERAL SPENDING

24 SEC. 401. PURPOSES.

25 The purposes of this title are to—
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1 (1) require committees to develop a

2 schedule for reauthorizing all programs

3 within their jurisdictions;

4 (2) facilitate amendments to subject

5 new entitlement programs to annual dis6 cretionary appropriations;

7 (3) require the Committee on the

8 Budget to justify any allocation to an au9 thorizing committee for legislation that

10 would not be subject to annual discre11 tionary appropriation;

12 (4) provide estimates of the long-term

13 impact of spending and tax legislation;

14 (5) provide a point of order for legis15 lation creating a new direct spending

16 program that does not expire within 10

17 years; and

18 (6) require a vote in the House of

19 Representatives on any measure that in20 creases the statutory limit on the public

21 debt.
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1 Subtitle A—Limitations on Direct

2 Spending

3 SEC. 411. FIXED-YEAR AUTHORIZATIONS REQUIRED FOR

4 NEW PROGRAMS.

5 (a) IN GENERAL.—Section 401 of the Con6 gressional Budget Act of 1974 is amended—

7 (1) by striking subsections (a) and (b)

8 and inserting the following new sub9 section:

10 ‘‘(a) LIMITATION ON DIRECT SPENDING.—It

11 shall not be in order in the House of Rep12 resentatives or in the Senate to consider a bill

13 or joint resolution, or an amendment, motion,

14 or conference report that provides direct

15 spending for a new program, unless such

16 spending is limited to a period of 10 or fewer

17 fiscal years.’’;

18 (2) by redesignating subsection (c) as

19 subsection (b) and by striking ‘‘Sub20 sections (a) and (b) each place it appears

21 and inserting ‘‘Subsection (a)’’ in such re22 designated subsection (b); and

23 (3) by amending the section heading

24 to read as follows:
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1 ‘‘FIXED-YEAR AUTHORIZATIONS REQUIRED FOR

2 DIRECT SPENDING’’.

3 (b) CONFORMING AMENDMENT.—The item

4 relating to section 401 in the table of contents

5 set forth in section 1(b) of the Congressional

6 Budget and Impoundment Control Act of 1974

7 is amended to read as follows:

‘‘Sec. 401. Fixed-year authorizations required for direct spending.’’.

8 (c) LIMITATION ON AUTHORIZATION OF DIS9 CRETIONARY APPROPRIATIONS.—Rule XXI of the

10 Rules of the House of Representatives is

11 amended by adding at the end the following

12 new clause:

13 ‘‘6. It shall not be in order to consider any

14 bill, joint resolution, amendment, or con15 ference report that authorizes the appropria16 tion of new budget authority (as defined in

17 section 3(2)(C) of the Congressional Budget

18 and Impoundment Control Act of 1974) for a

19 new program, unless such authorization is

20 specifically provided for a period of 10 or

21 fewer fiscal years.’’.
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1 SEC. 412. AMENDMENTS TO SUBJECT NEW DIRECT SPEND2 ING TO ANNUAL APPROPRIATIONS.

3 (a) HOUSE PROCEDURES.—Clause 5 of rule

4 XVIII of the Rules of the House of Representa5 tives is amended by adding at the end the fol6 lowing new paragraph:

7 ‘‘(c)(1) In the Committee of the Whole, an

8 amendment only to subject a new program

9 which provides direct spending to discre10 tionary appropriations, if offered by the

11 chairman of the Committee on the Budget (or

12 his designee) or the chairman of the Com13 mittee of Appropriations (or his designee),

14 may be precluded from consideration only by

15 the specific terms of a special order of the

16 House. Any such amendment, if offered, shall

17 be debatable for twenty minutes equally di18 vided and controlled by the proponent of the

19 amendment and a Member opposed and shall

20 not be subject to amendment.

21 ‘‘(2) As used in subparagraph (1), the term

22 ‘direct spending’ has the meaning given such

23 term in section 3(11) of the Congressional

24 Budget and Impoundment Control Act of

25 1974.’’.
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1 (b) ADJUSTMENT OF DISCRETIONARY SPEND2 ING LIMITS FOR DISCRETIONARY APPROPRIA3 TIONS OFFSET BY DIRECT SPENDING SAVINGS.—

4 (1) PURPOSE.—The purpose of the

5 amendments made by this subsection is

6 to hold the discretionary spending limits

7 and the allocations made to the Com8 mittee on Appropriations under section

9 302(a) of the Congressional Budget Act of

10 1974 harmless for legislation that offsets

11 a new discretionary program with a des12 ignated reduction in direct spending.

13 (2) DESIGNATING DIRECT SPENDING SAV14 INGS IN AUTHORIZATION LEGISLATION FOR

15 NEW DISCRETIONARY PROGRAMS.—Section

16 252 of the Balanced Budget and Emer17 gency Deficit Control Act of 1985 (as

18 amended by section 202) is further

19 amended by adding at the end the fol20 lowing new subsection:

21 ‘‘(e) OFFSETS.—If a provision of direct

22 spending legislation is enacted that—

23 ‘‘(1) decreases direct spending for any

24 fiscal year; and
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1 ‘‘(2) is designated as an offset pursu2 ant to this subsection and such designa3 tion specifically identifies an authoriza4 tion of discretionary appropriations (con5 tained in such legislation) for a new pro6 gram,

7 then the reductions in new budget authority

8 and outlays in all fiscal years resulting from

9 that provision shall be designated as an offset

10 in the reports required under subsection (d).’’.

11 (3) EXEMPTING SUCH DESIGNATED DI12 RECT SPENDING SAVINGS FROM PAYGO

13 SCORECARD.—Section 252(d)(4) of the Bal14 anced Budget and Emergency Deficit

15 Control Act of 1985 (as amended by sec16 tion 202(b)) is further amended by adding

17 at the end the following new subpara18 graph:

19 ‘‘(B) offset provisions as des20 ignated under subsection (e).’’.

21 (4) ADJUSTMENT IN DISCRETIONARY

22 SPENDING LIMITS.—Section 251(b)(2) of the

23 Balanced Budget and Emergency Deficit

24 Control Act of 1985 (as amended by sec25 tion 202(a)(2)) is further amended by add-
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1 ing at the end the following new subpara2 graph:

3 ‘‘(G) DISCRETIONARY AUTHORIZA4 TION OFFSETS.—If an Act other than an

5 appropriation Act includes any provi6 sion reducing direct spending and

7 specifically identifies any such provi8 sion as an offset pursuant to section

9 252(e), the adjustments shall be an in10 crease in the discretionary spending

11 limits for budget authority and out12 lays in each fiscal year equal to the

13 amount of the budget authority and

14 outlay reductions, respectively,

15 achieved by the specified offset in

16 that fiscal year, except that the ad17 justments for the budget year in

18 which the offsetting provision takes

19 effect shall not exceed the amount of

20 discretionary new budget authority

21 provided for the new program (au22 thorized in that Act) in an Act mak23 ing discretionary appropriations and

24 the outlays flowing therefrom.’’.
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1 (5) ADJUSTMENT IN APPROPRIATION

2 COMMITTEE’S ALLOCATIONS.—Section 314(b)

3 of the Congressional Budget Act of 1974

4 (as amended by section 202(d)) is further

5 amended by striking ‘‘; or’’ at the end of

6 paragraph (4), by striking the period and

7 inserting ‘‘; or’’ at the end of paragraph

8 (5), and by adding at the end the fol9 lowing new paragraph:

10 ‘‘(6) the amount provided in an Act

11 making discretionary appropriations for

12 the program for which an offset was des13 ignated pursuant to section 252(e) of the

14 Balanced Budget and Emergency Deficit

15 Control Act of 1985 and any outlays flow16 ing therefrom, but not to exceed the

17 amount of the designated decrease in di18 rect spending for that year for that pro19 gram in a prior law.’’.

20 (6) ADJUSTMENT IN AUTHORIZING COM21 MITTEE’S ALLOCATIONS.—Section 314 of the

22 Congressional Budget Act of 1974 is

23 amended by adding at the end the fol24 lowing new subsection:
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1 ‘‘(f) ADJUSTMENT IN AUTHORIZING COMMIT2 TEE’S ALLOCATIONS BY AMOUNT OF DIRECT

3 SPENDING OFFSET.—After the reporting of a

4 bill or joint resolution (by a committee other

5 than the Committee on Appropriations), or

6 the offering of an amendment thereto or the

7 submission of a conference report thereon,

8 that contains a provision that decreases di9 rect spending for any fiscal year and that is

10 designated as an offset pursuant to section

11 252(e) of the Balanced Budget and Emergency

12 Deficit Control Act of 1985, the chairman of

13 the Committee on the Budget shall reduce the

14 allocations of new budget authority and out15 lays made to such committee under section

16 302(a)(1) by the amount so designated.’’.

17 Subtitle B—Enhanced Congres18 sional Oversight Responsibil19 ities

20 SEC. 421. TEN-YEAR CONGRESSIONAL REVIEW REQUIRE21 MENT OF PERMANENT BUDGET AUTHORITY.

22 (a) TIMETABLE FOR REVIEW.—Clause 2(d)(1)

23 of rule X of the Rules of the House of Rep24 resentatives is amended by striking subdivi-
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1 sions (B) and (C) and inserting the following

2 new subdivision:

3 ‘‘(B) provide in its plans a specific

4 timetable for its review of those laws,

5 programs, or agencies within its jurisdic6 tion, including those that operate under

7 permanent budget authority or perma8 nent statutory authority and such time9 table shall demonstrate that each law,

10 program, or agency within the commit11 tee’s jurisdiction will be reauthorized at

12 least once every ten years.’’.

13 (b) REVIEW OF PERMANENT BUDGET AU14 THORITY BY THE COMMITTEE ON APPROPRIA15 TIONS.—Clause 4(a) of rule X of the Rules of

16 the House of Representatives is amended—

17 (1) by striking subparagraph (2); and

18 (2) by redesignating subparagraphs

19 (3) and (4) as subparagraphs (2) and (3)

20 and by striking ‘‘from time to time’’ and

21 inserting ‘‘at least once each Congress’’ in

22 subparagraph (2) (as redesignated).

23 (c) CONFORMING AMENDMENT.—Clause

24 4(e)(2) of rule X of the Rules of the House of

25 Representatives is amended by striking ‘‘from
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1 time to time’’ and inserting ‘‘at least once

2 every ten years’’.

3 SEC. 422. JUSTIFICATIONS OF DIRECT SPENDING.

4 (a) SECTION 302 ALLOCATIONS.—Section

5 302(a) of the Congressional Budget Act of 1974

6 (as amended by section 104(a)) is further

7 amended by adding at the end the following

8 new paragraph:

9 ‘‘(5) JUSTIFICATION OF CERTAIN SPEND10 ING ALLOCATIONS.—The joint explanatory

11 statement accompanying a conference re12 port on a joint resolution on the budget

13 that includes any allocation to a com14 mittee (other than the Committee on Ap15 propriations) of levels in excess of cur16 rent law levels shall set forth a justifica17 tion for not subjecting any program,

18 project, or activity (for which the alloca19 tion is made) to annual discretionary ap20 propriation.’’.

21 (b) PRESIDENTS’ BUDGET SUBMISSIONS.—

22 Section 1105(a) of title 31, United States Code,

23 is amended by adding at the end the following

24 new paragraph:
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1 ‘‘(33) a justification for not subjecting

2 each new program, project, or activity to

3 discretionary appropriations.’’.

4 (c) COMMITTEE JUSTIFICATION FOR DIRECT

5 SPENDING.—Clause 4(e)(2) of rule X of the

6 Rules of the House of Representatives is

7 amended by inserting before the period the

8 following: ‘‘, and will provide specific informa9 tion in any report accompanying such bills

10 and joint resolutions to the greatest extent

11 practicable to justify why the programs,

12 projects, and activities involved would not be

13 subject to annual appropriation’’.

14 SEC. 423. SURVEY OF ACTIVITY REPORTS OF HOUSE COM15 MITTEES.

16 Clause 1(d) of rule XI of the Rules of the

17 House of Representatives is amended by re18 designating paragraph (4) as paragraph (5)

19 and by inserting after paragraph (3) the fol20 lowing new paragraph:

21 ‘‘(4) Such report shall include a summary

22 of and justifications for all bills and joint res23 olutions reported by such committee that—

24 ‘‘(A) were considered before the adop25 tion of the appropriate budget resolution
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1 and did not fall within an exception set

2 forth in section 303(b) of the Congres3 sional Budget Act of 1974;

4 ‘‘(B) exceeded its allocation under

5 section 302(a) of such Act or breached an

6 aggregate level in violation of section 311

7 of such Act; or

8 ‘‘(C) contained provisions in violation

9 of section 401(a) of such Act pertaining to

10 indefinite direct spending authority.

11 Such report shall also specify the total

12 amount by which legislation reported by that

13 committee exceeded its allocation under sec14 tion 302(a) or breached the revenue floor

15 under section 311(a) of such Act for each fis16 cal year during that Congress.’’.

17 SEC. 424. CONTINUING STUDY OF ADDITIONAL BUDGET

18 PROCESS REFORMS.

19 Section 703 of the Congressional Budget

20 Act of 1974 is amended as follows:

21 (1) In subsection (a), strike ‘‘and’’ at

22 the end of paragraph (3), strike the pe23 riod at the end of paragraph (4) and in24 sert ‘‘; and’’, and at the end add the fol25 lowing new paragraph:
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1 ‘‘(5) evaluating whether existing pro2 grams, projects, and activities should be

3 subject to discretionary appropriations

4 and establishing guidelines for subjecting

5 new or expanded programs, projects, and

6 activities to annual appropriation and

7 recommend any necessary changes in

8 statutory enforcement mechanisms and

9 scoring conventions to effectuate such

10 changes.’’.

11 (2) In subsection (b), strike ‘‘from

12 time to time’’ and insert ‘‘during the One

13 Hundred Sixth Congress’’.

14 SEC. 425. GAO REPORTS.

15 The last sentence of section 404 of the

16 Congressional Budget Act of 1974 is amended

17 to read as follows: ‘‘Such report shall be re18 vised at least once every five years and shall

19 be transmitted to the chairman and ranking

20 minority member of each committee of the

21 House of Representatives and the Senate.’’.
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1 Subtitle C—Strengthened

2 Accountability

3 SEC. 431. TEN-YEAR CBO ESTIMATES.

4 (a) CBO REPORTS ON LEGISLATION.—Sec5 tion 308(a)(1)(B) of the Congressional Budget

6 Act of 1974 is amended by striking ‘‘four’’ and

7 inserting ‘‘nine’’.

8 (b) ANALYSIS BY CBO.—Section 402(1) of

9 the Congressional Budget Act of 1974 is

10 amended by striking ‘‘4’’ and inserting ‘‘nine’’.

11 (c) COST ESTIMATES.—Clause 3(d)(2)(A) of

12 rule XIII of the Rules of the House of Rep13 resentatives is amended by striking ‘‘five’’

14 each place it appears and inserting ‘‘10’’.

15 SEC. 432. REPEAL OF RULE XXIII OF THE RULES OF THE

16 HOUSE OF REPRESENTATIVES.

17 Rule XXIII of the Rules of the House of

18 Representatives (relating to the establish19 ment of the statutory limit on the public debt)

20 is repealed.
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1 TITLE V—BUDGETING FOR UN2 FUNDED LIABILITIES AND

3 OTHER LONG-TERM OBLIGA4 TIONS

5 SEC. 501. PURPOSES.

6 The purposes of this title are to—

7 (1) budget for the long-term costs of

8 Federal insurance programs;

9 (2) improve congressional control of

10 those costs; and

11 (3) periodically report on long-term

12 budgetary trends.

13 Subtitle A—Budgetary Treatment

14 of Federal Insurance Programs

15 SEC. 511. FEDERAL INSURANCE PROGRAMS.

16 (a) IN GENERAL.—The Congressional Budg17 et Act of 1974 is amended by adding after title

18 V the following new title:

19 ‘‘TITLE VI—BUDGETARY TREAT20 MENT OF FEDERAL INSUR21 ANCE PROGRAMS

22 ‘‘SEC. 601. SHORT TITLE.

23 ‘‘This title may be cited as the ‘Federal In24 surance Budgeting Act of 1999’.
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1 ‘‘SEC. 602. BUDGETARY TREATMENT.

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

3 fiscal year 2006, the budget of the Govern4 ment pursuant to section 1105(a) of title 31,

5 United States Code, shall be based on the risk6 assumed cost of Federal insurance programs.

7 ‘‘(b) BUDGET ACCOUNTING.—For any Fed8 eral insurance program—

9 ‘‘(1) the program account shall—

10 ‘‘(A) pay the risk-assumed cost

11 borne by the taxpayer to the financ12 ing account, and

13 ‘‘(B) pay actual insurance pro14 gram administrative costs;

15 ‘‘(2) the financing account shall—

16 ‘‘(A) receive premiums and other

17 income,

18 ‘‘(B) pay all claims for insurance

19 and receive all recoveries,

20 ‘‘(C) transfer to the program ac21 count on not less than an annual

22 basis amounts necessary to pay insur23 ance program administrative costs;

24 ‘‘(3) a negative risk-assumed cost

25 shall be transferred from the financing

26 account to the program account, and
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1 shall be transferred from the program ac2 count to the general fund; and

3 ‘‘(4) all payments by or receipts of the

4 financing accounts shall be treated in the

5 budget as a means of financing.

6 ‘‘(c) APPROPRIATIONS REQUIRED.—(1) Not7 withstanding any other provision of law, in8 surance commitments may be made for fiscal

9 year 2006 and thereafter only to the extent

10 that new budget authority to cover their risk11 assumed cost is provided in advance in an ap12 propriation Act.

13 ‘‘(2) An outstanding insurance commit14 ment shall not be modified in a manner that

15 increases its risk-assumed cost unless budget

16 authority for the additional cost has been pro17 vided in advance.

18 ‘‘(3) Paragraph (1) shall not apply to Fed19 eral insurance programs that constitute enti20 tlements.

21 ‘‘(d) REESTIMATES.—The risk-assumed cost

22 for a fiscal year shall be reestimated in each

23 subsequent year. Such reestimate can equal

24 zero. In the case of a positive reestimate, the

25 amount of the reestimate shall be paid from
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1 the program account to the financing ac2 count. In the case of a negative reestimate,

3 the amount of the reestimate shall be paid

4 from the financing account to the program ac5 count, and shall be transferred from the pro6 gram account to the general fund. Reesti7 mates shall be displayed as a distinct and sep8 arately identified subaccount in the program

9 account.

10 ‘‘(e) ADMINISTRATIVE EXPENSES.—All fund11 ing for an agency’s administration of a Fed12 eral insurance program shall be displayed as

13 a distinct and separately identified sub14 account in the program account.

15 ‘‘SEC. 603. TIMETABLE FOR IMPLEMENTATION OF ACCRUAL

16 BUDGETING FOR FEDERAL INSURANCE PRO17 GRAMS.

18 ‘‘(a) AGENCY REQUIREMENTS.—Agencies

19 with responsibility for Federal insurance pro20 grams shall develop models to estimate their

21 risk-assumed cost by year through the budget

22 horizon and shall submit those models, all rel23 evant data, a justification for critical assump24 tions, and the annual projected risk-assumed

25 costs to OMB with their budget requests each
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1 year starting with the request for fiscal year

2 2002. Agencies will likewise provide OMB

3 with annual estimates of modifications, if any,

4 and reestimates of program costs.

5 ‘‘(b) DISCLOSURE.—When the President

6 submits a budget of the Government pursuant

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

8 Code, for fiscal year 2002, OMB shall publish

9 a notice in the Federal Register advising in10 terested persons of the availability of infor11 mation describing the models, data (including

12 sources), and critical assumptions (including

13 explicit or implicit discount rate assump14 tions) that it or other executive branch enti15 ties would use to estimate the risk-assumed

16 cost of Federal insurance programs and giv17 ing such persons an opportunity to submit

18 comments. At the same time, the chairman of

19 the Committee on the Budget shall publish a

20 notice for CBO in the Federal Register advis21 ing interested persons of the availability of in22 formation describing the models, data (in23 cluding sources), and critical assumptions (in24 cluding explicit or implicit discount rate as25 sumptions) that it would use to estimate the
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1 risk-assumed cost of Federal insurance pro2 grams and giving such interested persons an

3 opportunity to submit comments.

4 ‘‘(c) REVISION.—(1) After consideration of

5 comments pursuant to subsection (b), and in

6 consultation with the Committees on the

7 Budget of the House of Representatives and

8 the Senate, OMB and CBO shall revise the

9 models, data, and major assumptions they

10 would use to estimate the risk-assumed cost

11 of Federal insurance programs.

12 ‘‘(2) When the President submits a budget

13 of the Government pursuant to section

14 1105(a) of title 31, United States Code, for fis15 cal year 2003, OMB shall publish a notice in

16 the Federal Register advising interested per17 sons of the availability of information describ18 ing the models, data (including sources), and

19 critical assumptions (including explicit or im20 plicit discount rate assumptions) that it or

21 other executive branch entities used to esti22 mate the risk-assumed cost of Federal insur23 ance programs.

24 ‘‘(d) DISPLAY.—
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1 ‘‘(1) IN GENERAL.—For fiscal years

2 2003, 2004, and 2005 the budget submis3 sions of the President pursuant to section

4 1105(a) of title 31, United States Code,

5 and CBO’s reports on the economic and

6 budget outlook pursuant to section

7 202(e)(1) and the President’s budgets,

8 shall for display purposes only, estimate

9 the risk-assumed cost of existing or pro10 posed Federal insurance programs.

11 ‘‘(2) OMB.—The display in the budget

12 submissions of the President for fiscal

13 years 2003, 2004, and 2005 shall include—

14 ‘‘(A) a presentation for each Fed15 eral insurance program in budget-ac16 count level detail of estimates of risk17 assumed cost;

18 ‘‘(B) a summary table of the risk19 assumed costs of Federal insurance

20 programs; and

21 ‘‘(C) an alternate summary table

22 of budget functions and aggregates

23 using risk-assumed rather than cash24 based cost estimates for Federal in25 surance programs.
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1 ‘‘(3) CBO.—In the second session of

2 the 107th Congress and the 108th Con3 gress, CBO shall include in its estimates

4 under section 308, for display purposes

5 only, the risk-assumed cost of existing

6 Federal insurance programs, or legisla7 tion that CBO, in consultation with the

8 Committees on the Budget of the House

9 of Representatives and the Senate, deter10 mines would create a new Federal insur11 ance program.

12 ‘‘(e) OMB, CBO, AND GAO EVALUATIONS.—

13 (1) Not later than 6 months after the budget

14 submission of the President pursuant to sec15 tion 1105(a) of title 31, United States Code, for

16 fiscal year 2005, OMB, CBO, and GAO shall

17 each submit to the Committees on the Budget

18 of the House of Representatives and the Sen19 ate a report that evaluates the advisability

20 and appropriate implementation of this title.

21 ‘‘(2) Each report made pursuant to para22 graph (1) shall address the following:

23 ‘‘(A) The adequacy of risk-assumed es24 timation models used and alternative

25 modeling methods.
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1 ‘‘(B) The availability and reliability of

2 data or information necessary to carry

3 out this title.

4 ‘‘(C) The appropriateness of the ex5 plicit or implicit discount rate used in

6 the various risk-assumed estimation mod7 els.

8 ‘‘(D) The advisability of specifying a

9 statutory discount rate (such as the

10 Treasury rate) for use in risk-assumed es11 timation models.

12 ‘‘(E) The ability of OMB, CBO, or

13 GAO, as applicable, to secure any data or

14 information directly from any Federal

15 agency necessary to enable it to carry out

16 this title.

17 ‘‘(F) The relationship between risk-as18 sumed accrual budgeting for Federal in19 surance programs and the specific re20 quirements of the Balanced Budget and

21 Emergency Deficit Control Act of 1985.

22 ‘‘(G) Whether Federal budgeting is

23 improved by the inclusion of risk-as24 sumed cost estimates for Federal insur25 ance programs.
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1 ‘‘(H) The advisability of including

2 each of the programs currently estimated

3 on a risk-assumed cost basis in the Fed4 eral budget on that basis.

5 ‘‘SEC. 604. DEFINITIONS.

6 ‘‘For purposes of this title:

7 ‘‘(1) The term ‘Federal insurance pro8 gram’ means a program that makes insur9 ance commitments and includes the list

10 of such programs included in the joint ex11 planatory statement of managers accom12 panying the conference report on the

13 Comprehensive Budget Process Reform

14 Act of 1999.

15 ‘‘(2) The term ‘insurance commitment’

16 means an agreement in advance by a

17 Federal agency to indemnify a nonfederal

18 entity against specified losses. This term

19 does not include loan guarantees as de20 fined in title V or benefit programs such

21 as social security, medicare, and similar

22 existing social insurance programs.

23 ‘‘(3)(A) The term ‘risk-assumed cost’

24 means the net present value of the esti25 mated cash flows to and from the Govern-
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1 ment resulting from an insurance com2 mitment or modification thereof.

3 ‘‘(B) The cash flows associated with

4 an insurance commitment include—

5 ‘‘(i) expected claims payments in6 herent in the Government’s commit7 ment;

8 ‘‘(ii) net premiums (expected pre9 mium collections received from or on

10 behalf of the insured less expected

11 administrative expenses);

12 ‘‘(iii) expected recoveries; and

13 ‘‘(iv) expected changes in claims,

14 premiums, or recoveries resulting

15 from the exercise by the insured of

16 any option included in the insurance

17 commitment.

18 ‘‘(C) The cost of a modification is the

19 difference between the current estimate

20 of the net present value of the remaining

21 cash flows under the terms of the insur22 ance commitment, and the current esti23 mate of the net present value of the re24 maining cash flows under the terms of

25 the insurance commitment as modified.
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1 ‘‘(D) The cost of a reestimate is the

2 difference between the net present value

3 of the amount currently required by the

4 financing account to pay estimated

5 claims and other expenditures and the

6 amount currently available in the financ7 ing account. The cost of a reestimate

8 shall be accounted for in the current year

9 in the budget of the Government pursu10 ant to section 1105(a) of title 31, United

11 States Code.

12 ‘‘(E) For purposes of this definition,

13 expected administrative expenses shall

14 be construed as the amount estimated to

15 be necessary for the proper administra16 tion of the insurance program. This

17 amount may differ from amounts actually

18 appropriated or otherwise made avail19 able for the administration of the pro20 gram.

21 ‘‘(4) The term ‘program account’

22 means the budget account for the risk-as23 sumed cost, and for paying all costs of ad24 ministering the insurance program, and

25 is the account from which the risk-as-
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1 sumed cost is disbursed to the financing

2 account.

3 ‘‘(5) The term ‘financing account’

4 means the nonbudget account that is as5 sociated with each program account

6 which receives payments from or makes

7 payments to the program account, re8 ceives premiums and other payments

9 from the public, pays insurance claims,

10 and holds balances.

11 ‘‘(6) The term ‘modification’ means

12 any Government action that alters the

13 risk-assumed cost of an existing insur14 ance commitment from the current esti15 mate of cash flows. This includes any ac16 tion resulting from new legislation, or

17 from the exercise of administrative dis18 cretion under existing law, that directly

19 or indirectly alters the estimated cost of

20 existing insurance commitments.

21 ‘‘(7) The term ‘model’ means any actu22 arial, financial, econometric, prob23 abilistic, or other methodology used to es24 timate the expected frequency and mag25 nitude of loss-producing events, expected
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1 premiums or collections from or on be2 half of the insured, expected recoveries,

3 and administrative expenses.

4 ‘‘(8) The term ‘current’ has the same

5 meaning as in section 250(c)(9) of the Bal6 anced Budget and Emergency Deficit

7 Control Act of 1985.

8 ‘‘(9) The term ‘OMB’ means the Direc9 tor of the Office of Management and

10 Budget.

11 ‘‘(10) The term ‘CBO’ means the Direc12 tor of the Congressional Budget Office.

13 ‘‘(11) The term ‘GAO’ means the

14 Comptroller General of the United States.

15 ‘‘SEC. 605. AUTHORIZATIONS TO ENTER INTO CONTRACTS;

16 ACTUARIAL COST ACCOUNT.

17 ‘‘(a) AUTHORIZATION OF APPROPRIATIONS.—

18 There is authorized to be appropriated

19 $600,000 for each of fiscal years 2000 through

20 2005 to the Director of the Office of Manage21 ment and Budget and each agency respon22 sible for administering a Federal program to

23 carry out this title.

24 ‘‘(b) TREASURY TRANSACTIONS WITH THE FI25 NANCING ACCOUNTS.—The Secretary of the
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1 Treasury shall borrow from, receive from,

2 lend to, or pay the insurance financing ac3 counts such amounts as may be appropriate.

4 The Secretary of the Treasury may prescribe

5 forms and denominations, maturities, and

6 terms and conditions for the transactions de7 scribed above. The authorities described

8 above shall not be construed to supersede or

9 override the authority of the head of a Fed10 eral agency to administer and operate an in11 surance program. All the transactions pro12 vided in this subsection shall be subject to the

13 provisions of subchapter II of chapter 15 of

14 title 31, United States Code. Cash balances of

15 the financing accounts in excess of current re16 quirements shall be maintained in a form of

17 uninvested funds, and the Secretary of the

18 Treasury shall pay interest on these funds.

19 ‘‘(c) APPROPRIATION OF AMOUNT NECESSARY

20 TO COVER RISK-ASSUMED COST OF INSURANCE

21 COMMITMENTS AT TRANSITION DATE.—(1) A fi22 nancing account is established on September

23 30, 2005, for each Federal insurance program.

24 ‘‘(2) There is appropriated to each financ25 ing account the amount of the risk-assumed
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1 cost of Federal insurance commitments out2 standing for that program as of the close of

3 September 30, 2005.

4 ‘‘(3) These financing accounts shall be

5 used in implementing the budget accounting

6 required by this title.

7 ‘‘SEC. 606. EFFECTIVE DATE.

8 ‘‘(a) IN GENERAL.—This title shall take ef9 fect immediately and shall expire on Sep10 tember 30, 2007.

11 ‘‘(b) SPECIAL RULE.—If this title is not re12 authorized by September 30, 2007, then the

13 accounting structure and budgetary treat14 ment of Federal insurance programs shall re15 vert to the accounting structure and budg16 etary treatment in effect immediately before

17 the date of enactment of this title.’’.

18 (b) CONFORMING AMENDMENT.—The table of

19 contents set forth in section 1(b) of the Con20 gressional Budget and Impoundment Control

21 Act of 1974 is amended by inserting after the

22 item relating to section 507 the following new

23 items:

‘‘TITLE VI—BUDGETARY TREATMENT OF FEDERAL

INSURANCE PROGRAMS

‘‘Sec. 601. Short title.

‘‘Sec. 602. Budgetary treatment.
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‘‘Sec. 603. Timetable for implementation of accrual budgeting

for Federal insurance programs.

‘‘Sec. 604. Definitions.

‘‘Sec. 605. Authorizations to enter into contracts; actuarial cost

account.

‘‘Sec. 606. Effective date.’’.

1 Subtitle B—Reports on Long-Term

2 Budgetary Trends

3 SEC. 521. REPORTS ON LONG-TERM BUDGETARY TRENDS.

4 (a) THE PRESIDENT’S BUDGET.—Section

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

6 amended by section 404), is further amended

7 by adding at the end the following new para8 graph:

9 ‘‘(34) an analysis based upon current

10 law and an analysis based upon the pol11 icy assumptions underlying the budget

12 submission for every fifth year of the pe13 riod of 75 fiscal years beginning with

14 such fiscal year, of the estimated levels of

15 total new budget authority and total

16 budget outlays, estimated revenues, esti17 mated surpluses and deficits, and, for so18 cial security, medicare, medicaid, and all

19 other direct spending, estimated levels of

20 total new budget authority and total

21 budget outlays; and a specification of its

22 underlying assumptions and a sensitivity
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1 analysis of factors that have a significant

2 effect on the projections made in each

3 analysis; and a comparison of the effects

4 of each of the two analyses on the econ5 omy, including such factors as inflation,

6 foreign investment, interest rates, and

7 economic growth.’’.

8 (b) CBO REPORTS.—Section 202(e)(1) of the

9 Congressional Budget Act of 1974 is amended

10 by adding at the end the following new sen11 tences: ‘‘Such report shall also include an

12 analysis based upon current law for every

13 fifth year of the period of 75 fiscal years be14 ginning with such fiscal year, of the estimated

15 levels of total new budget authority and total

16 budget outlays, estimated revenues, estimated

17 surpluses and deficits, and, for social security,

18 medicare, medicaid, and all other direct

19 spending, estimated levels of total new budget

20 authority and total budget outlays. The report

21 described in the preceding sentence shall also

22 specify its underlying assumptions and set

23 forth a sensitivity analysis of factors that

24 have a significant effect on the projections

25 made in the report.’’.
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1 TITLE VI—BASELINES, BYRD

2 RULE, AND LOCK-BOX

3 SEC. 601. PURPOSE.

4 The purposes of this title are to—

5 (1) require budgetary comparisons to

6 prior year levels;

7 (2) restrict the application of the

8 Byrd rule to measures other than con9 ference reports; and

10 (3) establish a procedure to allow sav11 ings from spending cuts in appropriation

12 measures to be locked-in to increase the

13 surplus or reduce the deficit.

14 Subtitle A—The Baseline

15 SEC. 611. THE PRESIDENT’S BUDGET.

16 (a) Paragraph (5) of section 1105(a) of title

17 31, United States Code, is amended to read as

18 follows:

19 ‘‘(5) except as provided in subsection

20 (b) of this section, estimated expendi21 tures and appropriations for the current

22 year and estimated expenditures and pro23 posed appropriations the President de24 cides are necessary to support the Gov25 ernment in the fiscal year for which the
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1 budget is submitted and the 4 fiscal years

2 following that year, and, except for de3 tailed budget estimates, the percentage

4 change from the current year to the fiscal

5 year for which the budget is submitted

6 for estimated expenditures and for ap7 propriations.’’.

8 (b) Section 1105(a)(6) of title 31, United

9 States Code, is amended to read as follows:

10 ‘‘(6) estimated receipts of the Govern11 ment in the current year and the fiscal

12 year for which the budget is submitted

13 and the 4 fiscal years after that year

14 under—

15 ‘‘(A) laws in effect when the budg16 et is submitted; and

17 ‘‘(B) proposals in the budget to in18 crease revenues,

19 and the percentage change (in the case of

20 each category referred to in subpara21 graphs (A) and (B)) between the current

22 year and the fiscal year for which the

23 budget is submitted and between the cur24 rent year and each of the 9 fiscal years
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1 after the fiscal year for which the budget

2 is submitted.’’.

3 (c) Section 1105(a)(12) of title 31, United

4 States Code, is amended to read as follows:

5 ‘‘(12) for each proposal in the budget

6 for legislation that would establish or ex7 pand a Government activity or function,

8 a table showing—

9 ‘‘(A) the amount proposed in the

10 budget for appropriation and for ex11 penditure because of the proposal in

12 the fiscal year for which the budget is

13 submitted;

14 ‘‘(B) the estimated appropriation

15 required because of the proposal for

16 each of the 4 fiscal years after that

17 year that the proposal will be in ef18 fect; and

19 ‘‘(C) the estimated amount for the

20 same activity or function, if any, in

21 the current fiscal year,

22 and, except for detailed budget estimates,

23 the percentage change (in the case of

24 each category referred to in subpara25 graphs (A), (B), and (C)) between the cur-
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1 rent year and the fiscal year for which

2 the budget is submitted.’’.

3 (d) Section 1105(a)(18) of title 31, United

4 States Code, is amended by inserting ‘‘new

5 budget authority and’’ before ‘‘budget out6 lays’’.

7 (e) Section 1105(a) of title 31, United

8 States Code, (as amended by sections 412(b)

9 and 521(a)) is further amended by adding at

10 the end the following new paragraphs:

11 ‘‘(35) a comparison of levels of esti12 mated expenditures and proposed appro13 priations for each function and subfunc14 tion in the current fiscal year and the fis15 cal year for which the budget is sub16 mitted, along with the proposed increase

17 or decrease of spending in percentage

18 terms for each function and subfunction.

19 ‘‘(36) a table on sources of growth in

20 total direct spending under current law

21 and as proposed in this budget submis22 sion for the budget year and the ensuing

23 9 fiscal years, which shall include

24 changes in outlays attributable to the fol25 lowing: cost-of-living adjustments;
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1 changes in the number of program recipi2 ents; increases in medical care prices,

3 utilization and intensity of medical care;

4 and residual factors.’’.

5 (f) Section 1109(a) of title 31, United States

6 Code, is amended by inserting after the first

7 sentence the following new sentence: ‘‘For dis8 cretionary spending, these estimates shall as9 sume the levels set forth in the discretionary

10 spending limits under section 251(c) of the

11 Balanced Budget and Emergency Deficit Con12 trol Act of 1985, as adjusted, for the appro13 priate fiscal years (and if no such limits are

14 in effect, these estimates shall assume the ad15 justed levels for the most recent fiscal year

16 for which such levels were in effect).’’.

17 SEC. 612. THE CONGRESSIONAL BUDGET.

18 Section 301(e) of the Congressional Budg19 et Act of 1974 (as amended by section 103) is

20 further amended—

21 (1) in paragraph (1), by inserting at

22 the end the following: ‘‘The basis of delib23 erations in developing such joint resolu24 tion shall be the estimated budgetary lev25 els for the preceding fiscal year. Any
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1 budgetary levels pending before the com2 mittee and the text of the joint resolution

3 shall be accompanied by a document

4 comparing such levels or such text to the

5 estimated levels of the prior fiscal year.

6 Any amendment offered in the committee

7 that changes a budgetary level and is

8 based upon a specific policy assumption

9 for a program, project, or activity shall

10 be accompanied by a document indi11 cating the estimated amount for such

12 program, project, or activity in the cur13 rent year.’’; and

14 (2) in paragraph (2), by striking ‘‘and’’

15 at the end of subparagraph (H) (as redes16 ignated), by striking the period and in17 serting ‘‘; and’’ at the end of subpara18 graph (I) (as redesignated), and by add19 ing at the end the following new subpara20 graph:

21 ‘‘(J) a comparison of levels for the

22 current fiscal year with proposed

23 spending and revenue levels for the

24 subsequent fiscal years along with

25 the proposed increase or decrease of
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1 spending in percentage terms for

2 each function.’’.

3 SEC. 613. CONGRESSIONAL BUDGET OFFICE REPORTS TO

4 COMMITTEES.

5 (a) The first sentence of section 202(e)(1)

6 of the Congressional Budget Act of 1974 is

7 amended by inserting ‘‘compared to com8 parable levels for the current year’’ before the

9 comma at the end of subparagraph (A) and be10 fore the comma at the end of subparagraph

11 (B).

12 (b) Section 202(e)(1) of the Congressional

13 Budget Act of 1974 is amended by inserting

14 after the first sentence the following new sen15 tence: ‘‘Such report shall also include a table

16 on sources of spending growth in total direct

17 spending for the budget year and the ensuing

18 9 fiscal years, which shall include changes in

19 outlays attributable to the following: cost-of20 living adjustments; changes in the number of

21 program recipients; increases in medical care

22 prices, utilization and intensity of medical

23 care; and residual factors.’’.

24 (c) Section 308(a)(1)(B) of the Congres25 sional Budget Act of 1974 is amended by in-
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1 serting ‘‘and shall include a comparison of

2 those levels to comparable levels for the cur3 rent fiscal year’’ before ‘‘if timely submitted’’.

4 SEC. 614. OUTYEAR ASSUMPTIONS FOR DISCRETIONARY

5 SPENDING.

6 For purposes of chapter 11 of title 31 of

7 the United States Code, or the Congressional

8 Budget Act of 1974, unless otherwise ex9 pressly provided, in making budgetary projec10 tions for years for which there are no discre11 tionary spending limits, the Director of the

12 Office of Management and Budget and the Di13 rector of the Congressional Budget Office

14 shall assume discretionary spending levels at

15 the levels for the last fiscal year for which

16 such levels were in effect.

17 Subtitle B—The Byrd Rule

18 SEC. 621. LIMITATION ON BYRD RULE.

19 (a) PROTECTION OF CONFERENCE RE20 PORTS.—Section 313 of the Congressional

21 Budget Act of 1974 is amended—

22 (1) in subsection (c), by striking ‘‘and

23 again upon the submission of a con24 ference report on such a reconciliation

25 bill or resolution,’’;
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1 (2) by striking subsection (d);

2 (3) by redesignating subsection (e) as

3 subsection (d); and

4 (4) in subsection (e), as

5 redesignated—

6 (A) by striking ‘‘, motion, or con7 ference report’’ the first place it ap8 pears and inserting ‘‘, or motion’’; and

9 (B) by striking ‘‘, motion, or con10 ference report’’ the second and third

11 places it appears and inserting ‘‘or

12 motion’’.

13 (b) CONFORMING AMENDMENT.—The first

14 sentence of section 312(e) of the Congres15 sional Budget Act of 1974 is amended by in16 serting ‘‘, except for section 313,’’ after ‘‘Act’’.

17 Subtitle C—Spending

18 Accountability Lock-box

19 SEC. 631. SHORT TITLE.

20 This subtitle may be cited as the ‘‘Spend21 ing Accountability Lock-box Act of 1999’’.

22 SEC. 632. SPENDING ACCOUNTABILITY LOCK-BOX LEDGER.

23 (a) ESTABLISHMENT OF LEDGER.—Title III of

24 the Congressional Budget Act of 1974 (as

25 amended by sections 104(c) and 206(a)) is fur-
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1 ther amended by adding after section 317 the

2 following new section:

3 ‘‘SPENDING ACCOUNTABILITY LOCK-BOX LEDGER

4 ‘‘SEC. 318. (a) ESTABLISHMENT OF LEDGER.—

5 The chairman of the Committee on the Budget

6 of the House of Representatives and the chair7 man on the Committee on the Budget of the

8 Senate shall each maintain a ledger to be

9 known as the ‘Spending Accountability Lock10 box Ledger’. The Ledger shall be divided into

11 entries corresponding to the subcommittees

12 of the Committees on Appropriations. Each

13 entry shall consist of three components: the

14 ‘House Lock-box Balance’; the ‘Senate Lock15 box Balance’; and the ‘Joint House-Senate

16 Lock-box Balance’.

17 ‘‘(b) COMPONENTS OF LEDGER.—Each com18 ponent in an entry shall consist only of

19 amounts credited to it under subsection (c).

20 No entry of a negative amount shall be made.

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

22 the House of Representatives or the Senate,

23 whenever a Member offers an amendment to

24 an appropriation bill to reduce new budget

25 authority in any account, that Member may
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1 state the portion of such reduction that shall

2 be—

3 ‘‘(A) credited to the House or Senate

4 Lock-box Balance, as applicable; or

5 ‘‘(B) used to offset an increase in new

6 budget authority in any other account;

7 ‘‘(C) allowed to remain within the ap8 plicable section 302(b) suballocation.

9 If no such statement is made, the amount of

10 reduction in new budget authority resulting

11 from the amendment shall be credited to the

12 House or Senate Lock-box Balance, as appli13 cable, if the amendment is agreed to.

14 ‘‘(2)(A) Except as provided by subpara15 graph (B), the chairmen of the Committees on

16 the Budget shall, upon the engrossment of

17 any appropriation bill by the House of Rep18 resentatives and upon the engrossment of

19 Senate amendments to that bill, credit to the

20 applicable entry balance of that House

21 amounts of new budget authority and outlays

22 equal to the net amounts of reductions in new

23 budget authority and in outlays resulting

24 from amendments agreed to by that House to

25 that bill.
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1 ‘‘(B) When computing the net amounts of

2 reductions in new budget authority and in

3 outlays resulting from amendments agreed to

4 by the House of Representatives or the Senate

5 to an appropriation bill, the chairmen of the

6 Committees on the Budget shall only count

7 those portions of such amendments agreed to

8 that were so designated by the Members offer9 ing such amendments as amounts to be cred10 ited to the House or Senate Lock-box Balance,

11 as applicable, or that fall within the last sen12 tence of paragraph (1).

13 ‘‘(3) The chairmen of the Committees on

14 the Budget shall, upon the engrossment of

15 Senate amendments to any appropriation bill,

16 credit to the applicable Joint House-Senate

17 Lock-box Balance the amounts of new budget

18 authority and outlays equal to—

19 ‘‘(A) an amount equal to one-half of

20 the sum of (i) the amount of new budget

21 authority in the House Lock-box Balance

22 plus (ii) the amount of new budget au23 thority in the Senate Lock-box Balance

24 for that subcommittee; and
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1 ‘‘(B) an amount equal to one-half of

2 the sum of (i) the amount of outlays in

3 the House Lock-box Balance plus (ii) the

4 amount of outlays in the Senate Lock-box

5 Balance for that subcommittee.

6 ‘‘(4) CALCULATION OF LOCK-BOX SAVINGS IN

7 SENATE.—For purposes of calculating under

8 this section the net amounts of reductions in

9 new budget authority and in outlays resulting

10 from amendments agreed to by the Senate on

11 an appropriation bill, the amendments re12 ported to the Senate by its Committee on Ap13 propriations shall be considered to be part of

14 the original text of the bill.

15 ‘‘(d) DEFINITION.—As used in this section,

16 the term ‘appropriation bill’ means any gen17 eral or special appropriation bill, and any bill

18 or joint resolution making supplemental, defi19 ciency, or continuing appropriations through

20 the end of a fiscal year.

21 ‘‘(e) TALLY DURING HOUSE CONSIDER22 ATION.—The chairman of the Committee on

23 the Budget of the House of Representatives

24 shall maintain a running tally of the amend25 ments adopted reflecting increases and de-
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1 creases of budget authority in the bill as re2 ported. This tally shall be available to Mem3 bers in the House of Representatives during

4 consideration of any appropriations bill by

5 the House.’’.

6 (b) CONFORMING AMENDMENT.—The table of

7 contents set forth in section 1(b) of the Con8 gressional Budget and Impoundment Control

9 Act of 1974 is amended by inserting after the

10 item relating to section 317 the following new

11 item:

‘‘Sec. 318. Spending accountability lock-box ledger.’’.

12 SEC. 633. DOWNWARD ADJUSTMENT OF SECTION 302(a) AL13 LOCATIONS AND SECTION 302(b) SUBALLOCA14 TIONS.

15 (a) ALLOCATIONS.—Section 302(a) of the

16 Congressional Budget Act of 1974 (as amend17 ed by section 422) is further amended by add18 ing at the end the following new paragraph:

19 ‘‘(6) ADJUSTMENT OF ALLOCATIONS.—

20 Upon the engrossment of Senate amend21 ments to any appropriation bill (as de22 fined in section 318(d)) for a fiscal year,

23 the amounts allocated under paragraph

24 (1) or (2) to the Committee on Appropria25 tions of each House upon the adoption of
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1 the most recent joint resolution on the

2 budget for that fiscal year shall be ad3 justed downward by the amounts cred4 ited to the applicable Joint House-Senate

5 Lock-box Balance under section 318(c)(2).

6 The revised levels of new budget author7 ity and outlays shall be submitted to each

8 House by the chairman of the Committee

9 on the Budget of that House and shall be

10 printed in the Congressional Record.’’.

11 (b) SUBALLOCATIONS.—Section 302(b) of the

12 Congressional Budget Act of 1974 is amended

13 by adding at the end the following new sen14 tence: ‘‘Whenever an adjustment is made

15 under subsection (a)(7) to an allocation under

16 that subsection, the Committee on Appropria17 tions of each House shall make downward ad18 justments in the most recent suballocations of

19 new budget authority and outlays under this

20 subparagraph to the appropriate subcommit21 tees of that committee in the total amounts of

22 those adjustments under section 318(c)(2).

23 The revised suballocations shall be submitted

24 to each House by the chairman of the Com25 mittee on Appropriations of that House and
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1 shall be printed in the Congressional

2 Record.’’.

3 SEC. 634. PERIODIC REPORTING OF LEDGER STATEMENTS.

4 Section 308(b)(1) of the Congressional

5 Budget Act of 1974 is amended by adding at

6 the end the following new sentence: ‘‘Such re7 ports shall also include an up-to-date tabula8 tion of the amounts contained in the ledger

9 and each entry established by section 318(a).’’.

10 SEC. 635. DOWNWARD ADJUSTMENT OF DISCRETIONARY

11 SPENDING LIMITS.

12 The discretionary spending limits for new

13 budget authority and outlays for any fiscal

14 year set forth in section 251(c) of the Balanced

15 Budget and Emergency Deficit Control Act of

16 1985, shall be reduced by the amounts set

17 forth in the final regular appropriation bill

18 for that fiscal year or joint resolution making

19 continuing appropriations through the end of

20 that fiscal year. Those amounts shall be the

21 sums of the Joint House-Senate Lock-box Bal22 ances for that fiscal year, as calculated under

23 section 302(a)(6) of the Congressional Budget

24 Act of 1974. That bill or joint resolution shall

25 contain the following statement of law: ‘‘As re-
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1 quired by section 636 of the Spending Ac2 countability Lock-box Act of 1999, for fiscal

3 year [insert appropriate fiscal year] and each

4 outyear, the adjusted discretionary spending

5 limit for new budget authority shall be re6 duced by $ [insert appropriate amount of re7 duction] and the adjusted discretionary limit

8 for outlays shall be reduced by $ [insert ap9 propriate amount of reduction] for the fiscal

10 year and each outyear.’’. Notwithstanding sec11 tion 904(c) of the Congressional Budget Act of

12 1974, section 306 as it applies to this state13 ment shall not apply. This adjustment shall be

14 reflected in reports under sections 254(f) and

15 254(g) of the Balanced Budget and Emergency

16 Deficit Control Act of 1985.

17 Subtitle D—Automatic Continuing

18 Resolution

19 SEC. 641. AUTOMATIC CONTINUING RESOLUTION.

20 (a) AMENDMENT TO TITLE 31.—Chapter 13

21 of title 31, United States Code, is amended by

22 inserting after section 1310 the following new

23 section:
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1 ‘‘§ 1311. Continuing appropriations

2 ‘‘(a)(1) If any regular appropriation bill

3 for a fiscal year does not become law prior to

4 the beginning of such fiscal year or a joint

5 resolution making continuing appropriations

6 is not in effect, there is appropriated, out of

7 any moneys in the Treasury not otherwise ap8 propriated, and out of applicable corporate or

9 other revenues, receipts, and funds, such

10 sums as may be necessary to continue any

11 program, project, or activity for which funds

12 were provided in the preceding fiscal year—

13 ‘‘(A) in the corresponding regular ap14 propriation Act for such preceding fiscal

15 year; or

16 ‘‘(B) if the corresponding regular ap17 propriation bill for such preceding fiscal

18 year did not become law, then in a joint

19 resolution making continuing appropria20 tions for such preceding fiscal year.

21 ‘‘(2)(A) Except as provided by subpara22 graph (B), appropriations and funds made

23 available, and authority granted, for a pro24 gram, project, or activity for any fiscal year

25 pursuant to this section shall be at a rate of

26 operations not in excess of the rate of oper-
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1 ations provided for in the regular appropria2 tion Act providing for such program, project,

3 or activity for the preceding fiscal year, or in

4 the absence of such an Act, the rate of oper5 ations provided for such program, project, or

6 activity pursuant to a joint resolution making

7 continuing appropriations for such preceding

8 fiscal year (but not including amounts for

9 such program, project, or activity designated

10 as an emergency for that fiscal year before

11 the date of enactment of this section).

12 ‘‘(B) The applicable rate of operations for

13 a program, project, or activity pursuant to

14 this section shall exclude amounts—

15 ‘‘(i) for which any adjustment was

16 made under section 251(b)(2)(A) or sec17 tion 252(e) of the Balanced Budget and

18 Emergency Deficit Control Act of 1985 be19 fore the date of enactment of this section;

20 or

21 ‘‘(ii) for which any adjustment is

22 made under section 251(b)(2) (D) or (E) of

23 such Act.

24 ‘‘(3) Appropriations and funds made avail25 able, and authority granted, for any fiscal
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1 year pursuant to this section for a program,

2 project, or activity shall be available for the

3 period beginning with the first day of a lapse

4 in appropriations and ending with the earlier

5 of—

6 ‘‘(A) the date on which the applicable

7 regular appropriation bill for such fiscal

8 year becomes law (whether or not such

9 law provides for such program, project,

10 or activity) or a continuing resolution

11 making appropriations becomes law, as

12 the case may be, or

13 ‘‘(B) the last day of such fiscal year.

14 ‘‘(b) An appropriation or funds made

15 available, or authority granted, for a pro16 gram, project, or activity for any fiscal year

17 pursuant to this section shall be subject to the

18 terms and conditions imposed with respect to

19 the appropriation made or funds made avail20 able for the preceding fiscal year, or authority

21 granted for such program, project, or activity

22 under current law.

23 ‘‘(c) Appropriations and funds made avail24 able, and authority granted, for any program,

25 project, or activity for any fiscal year pursu-
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1 ant to this section shall cover all obligations

2 or expenditures incurred for such program,

3 project, or activity during the portion of such

4 fiscal year for which this section applies to

5 such program, project, or activity.

6 ‘‘(d) Expenditures made for a program,

7 project, or activity for any fiscal year pursu8 ant to this section shall be charged to the ap9 plicable appropriation, fund, or authorization

10 whenever a regular appropriation bill or a

11 joint resolution making continuing appro12 priations until the end of a fiscal year pro13 viding for such program, project, or activity

14 for such period becomes law.

15 ‘‘(e) This section shall not apply to a pro16 gram, project, or activity during a fiscal year

17 if any other provision of law (other than an

18 authorization of appropriations)—

19 ‘‘(1) makes an appropriation, makes

20 funds available, or grants authority for

21 such program, project, or activity to con22 tinue for such period, or

23 ‘‘(2) specifically provides that no ap24 propriation shall be made, no funds shall

25 be made available, or no authority shall
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1 be granted for such program, project, or

2 activity to continue for such period; or

3 ‘‘(f) For purposes of this section, the term

4 ‘regular appropriation bill’ means any annual

5 appropriation bill making appropriations,

6 otherwise making funds available, or grant7 ing authority, for any of the following cat8 egories of programs, projects, and activities:

9 ‘‘(1) Agriculture, rural development,

10 and related agencies programs.

11 ‘‘(2) The Departments of Commerce,

12 Justice, and State, the judiciary, and re13 lated agencies.

14 ‘‘(3) The Department of Defense.

15 ‘‘(4) The government of the District of

16 Columbia and other activities chargeable

17 in whole or in part against the revenues

18 of the District.

19 ‘‘(5) The Departments of Labor,

20 Health and Human Services, and Edu21 cation, and related agencies.

22 ‘‘(6) The Department of Housing and

23 Urban Development, and sundry inde24 pendent agencies, boards, commissions,

25 corporations, and offices.
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1 ‘‘(7) Energy and water development.

2 ‘‘(8) Foreign assistance and related

3 programs.

4 ‘‘(9) The Department of the Interior

5 and related agencies.

6 ‘‘(10) Military construction.

7 ‘‘(11) The Department of Transpor8 tation and related agencies.

9 ‘‘(12) The Treasury Department, the

10 U.S. Postal Service, the Executive Office

11 of the President, and certain independent

12 agencies.

13 ‘‘(13) The legislative branch.’’.

14 (b) CONFORMING AMENDMENT.—Section

15 202(e)(3) of the Congressional Budget Act of

16 1974 is amended by inserting ‘‘and on or be17 fore September 30’’ before ‘‘of each year’’.

18 (c) CHAPTER ANALYSIS.—The analysis of

19 chapter 13 of title 31, United States Code, is

20 amended by inserting after the item relating

21 to section 1310 the following new item:

‘‘1311. Continuing appropriations.’’.

22 (d) EFFECT OF AMENDMENTS.—Nothing in

23 the amendments made by this section shall be

24 construed to affect Government obligations

25 mandated by other law, including obligations
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1 with respect to social security, medicare, and

2 medicaid.

3 TITLE VII—BUDGETING IN AN

4 ERA OF SURPLUSES

5 SEC. 701. PAYGO REQUIREMENTS AND THE ON-BUDGET

6 SURPLUS.

7 (a) Section 252(a) of the Balanced Budget

8 and Emergency Deficit Control Act of 1985 is

9 amended to read as follows:

10 ‘‘(a) PURPOSE.—The purpose of this section

11 is to trigger an offsetting sequestration in the

12 amount by which any excess of decreases in

13 receipts and increases in direct spending over

14 increases in receipts and decreases in direct

15 spending, caused by all direct spending and

16 receipts legislation enacted prior to October

17 1, 2002, exceeds estimates of the on-budget

18 surplus.’’.

19 (b) TIMING AND CALCULATION OF SEQUES20 TRATION.—Section 252(b) of the Balanced

21 Budget and Emergency Deficit Control Act of

22 1985 is amended to read as follows:

23 ‘‘(b) SEQUESTRATION.—

24 ‘‘(1) TIMING.—Not later than 15 cal25 endar days after the date Congress ad-
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1 journs to end a session and on the same

2 day as a sequestration (if any) under sec3 tion 251, there shall be a sequestration to

4 offset an amount equal to—

5 ‘‘(A) any excess of decreases in re6 ceipts and increases in direct spend7 ing over increases in receipts and de8 creases in direct spending for legisla9 tion enacted prior to October 1, 2002;

10 minus

11 ‘‘(B) the estimated on-budget sur12 plus,

13 as calculated under paragraph (2).

14 ‘‘(2) CALCULATION OF SEQUESTRATION.—

15 OMB shall calculate the amount of the se16 questration by adding—

17 ‘‘(A) all OMB estimates for the

18 budget year of direct spending and

19 receipts legislation transmitted under

20 subsection (d) for legislation enacted

21 prior to October 1, 2002;

22 ‘‘(B) the estimated amount of sav23 ings in direct spending programs ap24 plicable to the budget year resulting

25 from the prior year’s sequestration
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1 under this section, if any, as pub2 lished in OMB’s final sequestration

3 report for that prior year; and

4 ‘‘(C) all OMB estimates for the

5 current year that were not reflected

6 in the final OMB sequestration report

7 for that year; and

8 then by subtracting from such sum the

9 OMB estimate for the budget year of the

10 on-budget surplus (if any) as set forth in

11 the OMB sequestration update report.’’.

12 (c) PREVIEW REPORTS.—Section 254(c)(3) of

13 the Balanced Budget and Emergency Deficit

14 Control Act of 1985 is amended by redesig15 nating subparagraph (C) as subparagraph (D)

16 and by adding after subparagraph (B) the fol17 lowing new subparagraph:

18 ‘‘(C) The estimated on-budget sur19 plus for the budget year (if any) shall

20 exclude all estimates of direct spend21 ing and receipts legislation for such

22 year enacted after the date of enact23 ment of this subparagraph (as esti24 mated by OMB when such legislation

25 was originally enacted). Except as
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1 provided by the preceding sentence,

2 the following assumptions shall apply

3 to the calculation of such estimated

4 surplus: Budgetary resources other

5 than unobligated balances shall be at

6 the level provided for the budget year

7 in a regular appropriation Act or a

8 joint resolution (other than pursuant

9 to section 1311 of title 31, United

10 States Code) continuing appropria11 tions through the end of the budget

12 year, but if for any account a full13 year appropriation has not yet been

14 enacted, budgetary resources other

15 than unobligated balances shall be at

16 the level available in the current

17 year, adjusted using the assumptions

18 set forth in section 257(c).’’.

19 (d) FINAL SEQUESTRATION REPORT.—Sec20 tion 254(f)(3) of the Balanced Budget and

21 Emergency Deficit Control Act of 1985 is

22 amended by adding at the end the following

23 new sentence: ‘‘In calculating the estimated

24 on-budget surplus pursuant to section

25 252(b)(2), notwithstanding section 254(j), OMB
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1 shall use economic and technical assumptions

2 that are up-to-date as of the date of issuance

3 of the sequestration preview reports.’’.

4 (e) DEFINITION OF ON-BUDGET SURPLUS.—

5 Section 250(c) of the Balanced Budget and

6 Emergency Deficit Control Act of 1985 is

7 amended by adding at the end the following

8 new paragraph:

9 ‘‘(20) The term ‘on-budget surplus’

10 means, with respect to a fiscal year, the

11 amount by which receipts exceed outlays

12 for all spending and receipt accounts of

13 the United States Government that are

14 designated as on-budget. Such term does

15 not include outlays and receipts of the

16 Federal Old-Age and Survivors Insurance

17 Trust Fund, the Federal Disability Insur18 ance Trust Fund, or any other off-budget

19 entity.’’.

20 (f) EXPEDITED RECONCILIATION PROCESS.—

21 Section 258C of the Balanced Budget and

22 Emergency Deficit Control Act of 1985 is

23 amended as follows:
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1 (1) The side heading of subsection (a)

2 is amended by inserting ‘‘OR IN THE HOUSE

3 OF REPRESENTATIVES’’ after ‘‘SENATE’’.

4 (2) In paragraphs (1), (2), (3), and (4)

5 of subsection (a), insert ‘‘or House’’ after

6 ‘‘Senate’’ each place it appears.

7 (3) In subsection (a)(7), strike ‘‘For’’

8 and insert ‘‘In the Senate, for’’.

9 (4) In subsection (b)(1), insert ‘‘or

10 House’’ after ‘‘Senate’’.

11 (5) In the side heading of subsection

12 (b)(4), insert ‘‘OTHER’’ after ‘‘THE’’.

13 (6) In subsection (b)(4), strike ‘‘in the

14 Senate from the House’’ and insert ‘‘in the

15 Senate or House of Representatives from

16 the other House’’, strike ‘‘Senate’’ the sec17 ond place it appears and insert ‘‘Senate

18 or House of Representatives, as the case

19 may be,’’, and strike ‘‘Senate’’ the third

20 place it appears and insert ‘‘in the appli21 cable House’’.