I

106TH CONGRESS

1ST SESSION H. R. 853

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

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.
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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.

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
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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.

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.
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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) display the unfunded liabilities of Federal

6 insurance programs;

7 (4) strengthen enforcement of budgetary deci8 sions;

9 (5) increase accountability for Federal spend10 ing;

11 (6) mitigate the bias in the budget process to12 ward higher spending; and

13 (7) modify paygo requirements when there is an

14 on-budget surplus.

15 SEC. 3. EFFECTIVE DATE.

16 Except as otherwise specifically provided, this Act

17 and the amendments made by this Act shall become effec18 tive on the date of enactment of this Act and shall apply

19 with respect to fiscal years beginning after September 30,

20 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 Congres4 sional Budget and Impoundment Control Act of 1974 are

5 amended to read as follows:

6 ‘‘(1) to assure effective control over the budg7 etary process;

8 ‘‘(2) to facilitate the determination each year of

9 the appropriate level of Federal revenues and ex10 penditures by the Congress and the President;’’.

11 TITLE I—BUDGET WITH FORCE

12 OF LAW

13 SEC. 101. PURPOSES.

14 The purposes of this title are to—

15 (1) focus initial budgetary deliberations on ag16 gregate levels of Federal spending and taxation;

17 (2) encourage cooperation between Congress

18 and the President in developing overall budgetary

19 priorities; and

20 (3) reach budgetary decisions early in the legis21 lative cycle.

22 SEC. 102. THE TIMETABLE.

23 Section 300 of the Congressional Budget Act of 1974

24 is amended to read as follows:
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1 ‘‘TIMETABLE

2 ‘‘SEC. 300. The timetable with respect to the congres3 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.’’.

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

5 (a) ANNUAL JOINT RESOLUTIONS ON THE BUDG6 ET.—(1) Section 301 of the Congressional Budget Act of

7 1974 is amended to read as follows:

8 ‘‘ANNUAL JOINT RESOLUTIONS ON THE BUDGET

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

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

11 Congress shall complete action on a joint resolution on the

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

13 year. The joint resolution shall set forth appropriate levels

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

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

16 following—

17 ‘‘(1) totals of new budget authority and outlays;
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1 ‘‘(2) total Federal revenues and the amount, if

2 any, by which the aggregate level of Federal reve3 nues should be increased or decreased by bills and

4 resolutions to be reported by the appropriate com5 mittees;

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

7 ‘‘(4) subtotals of new budget authority and out8 lays for nondefense discretionary spending, defense

9 discretionary spending, and direct spending, and, if

10 deemed necessary, other subsets of discretionary

11 spending and of direct spending;

12 ‘‘(5) the level of the statutory limit on the pub13 lic debt;

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

15 made by title II of the Comprehensive Budget Proc16 ess Reform Act of 1999 apply, subtotals of new

17 budget authority and outlays for emergencies, in18 cluding subtotals for direct spending and discre19 tionary spending;

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

21 this title, outlays of the old-age, survivors, and dis22 ability insurance program established under title II

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

24 resolution and for each of the 4 succeeding fiscal

25 years; and
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1 ‘‘(8) For purposes of Senate enforcement under

2 this title, revenues of the old-age, survivors, and dis3 ability insurance program established under title II

4 of the Social Security Act (and the related provisions

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

6 year of the resolution and for each of the 4 succeed7 ing fiscal years.

8 ‘‘(b) ADDITIONAL MATTERS IN JOINT RESOLU9 TION.—The joint resolution on the budget may—

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

11 as Measure of Deficit’ in which the joint resolution

12 shall set forth the amounts by which the debt sub13 ject to limit (in section 3101 of title 31, United

14 States Code) has increased or would increase in each

15 of the relevant fiscal years;

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

17 and Means of the House of Representatives or the

18 Committee on Finance of the Senate to the Commit19 tee on the Budget of that House of Congress, amend

20 section 3101 of title 31, United States Code, to

21 change the statutory limit on the public debt;

22 ‘‘(3) require a procedure under which all or cer23 tain bills or resolutions providing new budget au24 thority or new entitlement authority for such fiscal

25 year shall not be enrolled until the Congress has
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1 completed action on any reconciliation bill or rec2 onciliation resolution or both required by such con3 current resolution to be reported in accordance with

4 section 310(b);

5 ‘‘(4) require such other congressional proce6 dures, relating to the budget, as may be appropriate

7 to carry out the purposes of this Act; and

8 ‘‘(5) set forth procedures in the Senate whereby

9 committee allocations, aggregates, and other levels

10 can be revised for legislation if that legislation would

11 not increase the deficit, or would not increase the

12 deficit when taken with other legislation enacted

13 after the adoption of the resolution, for the first fis14 cal year or the total period of fiscal years covered by

15 the resolution.

16 ‘‘(c) CONSIDERATION OF PROCEDURES OR MATTERS

17 WHICH HAVE THE EFFECT OF CHANGING ANY RULE OF

18 THE HOUSE OF REPRESENTATIVES.—If the Committee

19 on the Budget of the House of Representatives reports

20 any joint resolution on the budget which includes any pro21 cedure or matter which has the effect of changing any rule

22 of the House of Representatives, such joint resolution shall

23 then be referred to the Committee on Rules with instruc24 tions to report it within five calendar days (not counting

25 any day on which the House is not in session). The Com-
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1 mittee on Rules shall have jurisdiction to report any joint

2 resolution referred to it under this paragraph with an

3 amendment or amendments changing or striking any such

4 procedure or matter.

5 ‘‘(d) VIEWS AND ESTIMATES OF OTHER COMMIT6 TEES.—Within 6 weeks after the President submits a

7 budget under section 1105(a) of title 31, United States

8 Code, or at such time as may be requested by the chair9 man of the Committee on the Budget, each committee of

10 the House of Representatives having legislative jurisdic11 tion shall submit to the Committee on the Budget of the

12 House and each committee of the Senate having legislative

13 jurisdiction shall submit to the Committee on the Budget

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

15 the committee making such submission) with respect to

16 all matters set forth in subsections (a) and (b) which re17 late to matters within the jurisdiction or functions of such

18 committee. The Joint Economic Committee shall submit

19 to the Committees on the Budget of both Houses its rec20 ommendations as to the fiscal policy appropriate to the

21 goals of the Employment Act of 1946. Any other commit22 tee of the House of Representatives or the Senate may

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

24 any joint committee of the Congress may submit to the

25 Committees on the Budget of both Houses, its views and
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1 estimates with respect to all matters set forth in sub2 sections (a) and (b) which relate to matters within its ju3 risdiction or functions. Any other committee of the House

4 of Representatives or the Senate that anticipates that the

5 committee will consider legislation establishing, amending,

6 or reauthorizing any Federal program likely to have a sig7 nificant budgetary impact on any State, local, or tribal

8 government, or likely to have a significant financial impact

9 on the private sector, including any legislative proposal

10 submitted by the executive branch likely to have such a

11 budgetary or financial impact, shall include its views and

12 estimates on that proposal to the Committee on the Budg13 et of the applicable House.

14 ‘‘(e) HEARINGS AND REPORT.—

15 ‘‘(1) IN GENERAL.—In developing the joint res16 olution on the budget referred to in subsection (a)

17 for each fiscal year, the Committee on the Budget

18 of each House shall hold hearings and shall receive

19 testimony from Members of Congress and such ap20 propriate representatives of Federal departments

21 and agencies, the general public, and national orga22 nizations as the committee deems desirable. Each of

23 the recommendations as to short-term and medium24 term goal set forth in the report submitted by the

25 members of the Joint Economic Committee under
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1 subsection (d) may be considered by the Committee

2 on the Budget of each House as part of its consider3 ation of such concurrent resolution, and its report

4 may reflect its views thereon, including its views on

5 how the estimates of revenues and levels of budget

6 authority and outlays set forth in such concurrent

7 resolution are designed to achieve any goals it is rec8 ommending.

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

10 report accompanying the resolution shall include—

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

12 each major functional category, based on alloca13 tions of the total levels set forth pursuant to

14 subsection (a)(1);

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

16 new budget authority, total outlays, total reve17 nues, and the surplus or deficit for each fiscal

18 year set forth in the resolution with those re19 quested in the budget submitted by the Presi20 dent;

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

22 category, an estimate of total new budget au23 thority and total outlays, with the estimates di24 vided between discretionary and direct spending

25 amounts;
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1 ‘‘(D) a measure, as a percentage of gross

2 domestic product, of total outlays, total Federal

3 revenues, the surplus or deficit, and new out4 lays for nondefense discretionary spending, de5 fense spending, and direct spending as set forth

6 in such resolution;

7 ‘‘(E) the economic assumptions that un8 derlie each of the matters set forth in the reso9 lution and any alternative economic assump10 tions and objectives the committee considered;

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

12 indicating the manner in which, and the basis

13 on which, the committee determined each of the

14 matters set forth in the resolution;

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

16 budget authority and outlays for any new pro17 gram, project, or activity to a committee for

18 which such new budget authority and outlays

19 would not be subject to discretionary appropria20 tions;

21 ‘‘(H) allocations described in section

22 302(a);

23 ‘‘(I) the estimated levels of tax expendi24 tures (the tax expenditures budget) by major
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1 items and functional categories for the Presi2 dent’s budget and in the resolution; and

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

4 includes any allocation to a committee (other

5 than the Committee on Appropriations) of levels

6 in excess of current law levels, a justification

7 for not subjecting any program, project, or ac8 tivity (for which the allocation is made) to an9 nual discretionary appropriation.’’.

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

11 report accompanying the resolution may include—

12 ‘‘(A) reconciliation directives described in

13 section 310;

14 ‘‘(B) a statement of any significant

15 changes in the proposed levels of Federal assist16 ance to State and local governments;

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

18 revenues recommended in the resolution among

19 the major sources of such revenues; and

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

21 and to fiscal policy, that the committee deems

22 appropriate.

23 ‘‘(f) ACHIEVEMENT OF GOALS FOR REDUCING UN24 EMPLOYMENT.—
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1 (1) If, pursuant to section 4(c) of the Employ2 ment Act of 1946, the President recommends in the

3 Economic Report that the goals for reducing unem4 ployment set forth in section 4(b) of such Act be

5 achieved in a year after the close of the five-year pe6 riod prescribed by such subsection, the concurrent

7 resolution on the budget for the fiscal year begin8 ning after the date on which such Economic Report

9 is received by the Congress may set forth the year

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

11 can be achieved.

12 ‘‘(2) After the Congress has expressed its opin13 ion pursuant to paragraph (1) as to the year in

14 which the goals for reducing unemployment set forth

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

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

17 the President recommends in the Economic Report

18 that such goals be achieved in a year which is dif19 ferent from the year in which the Congress has ex20 pressed its opinion that such goals should be

21 achieved, either in its action pursuant to paragraph

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

23 paragraph, the concurrent resolution on the budget

24 for the fiscal year beginning after the date on which

25 such Economic Report is received by the Congress
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1 may set forth the year in which, in the opinion of

2 the Congress, such goals can be achieved.

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

4 of such resolution setting forth such year only if the

5 amendment thereto also proposes to alter the esti6 mates, amounts, and levels (as described in sub7 section (a)) set forth in such resolution in germane

8 fashion in order to be consistent with the economic

9 goals (as described in sections 3(a)(2) and (4)(b) of

10 the Employment Act of 1946) which such amend11 ment proposes can be achieved by the year specified

12 in such amendment.

13 ‘‘(g) ECONOMIC ASSUMPTIONS.—

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

15 consider any joint resolution on the budget for a fis16 cal year, or any amendment thereto, or any con17 ference report thereon, that sets forth amounts and

18 levels that are determined on the basis of more than

19 one set of economic and technical assumptions.

20 ‘‘(2) The joint explanatory statement accom21 panying a conference report on a joint resolution on

22 the budget shall set forth the common economic as23 sumptions upon which such joint statement and con24 ference report are based, or upon which any amend25 ment contained in the joint explanatory statement to
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1 be proposed by the conferees in the case of technical

2 disagreement, is based.

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

4 changed economic conditions or technical estimates,

5 determinations under titles III and IV of the Con6 gressional Budget Act of 1974 shall be based upon

7 such common economic and technical assumptions.

8 ‘‘(h) BUDGET COMMITTEES CONSULTATION WITH

9 COMMITTEES.—The Committee on the Budget of the

10 House of Representatives shall consult with the commit11 tees of its House having legislative jurisdiction during the

12 preparation, consideration, and enforcement of the joint

13 resolution on the budget with respect to all matters which

14 relate to the jurisdiction or functions of such committees.

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

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

17 resolution on the budget (or amendment, motion, or con18 ference report on the resolution) that would decrease the

19 excess of social security revenues over social security out20 lays in any of the fiscal years covered by the concurrent

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

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

23 social security revenues unless such provision changes the

24 income tax treatment of social security benefits.’’.
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1 (b) PRESIDENT’S BUDGET SUBMISSION TO THE CON2 GRESS.—(1) The first two sentences of section 1105(a)

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

4 follows:

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

6 than the first Monday in February of each year the Presi7 dent shall submit a budget of the United States Govern8 ment for the following fiscal year which shall set forth the

9 following levels:

10 ‘‘(A) totals of new budget authority and out11 lays;

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

13 any, by which the aggregate level of Federal reve14 nues should be increased or decreased by bills and

15 resolutions to be reported by the appropriate com16 mittees;

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

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

19 outlays for nondefense discretionary spending, de20 fense discretionary spending, and direct spending,

21 and, if deemed necessary, other subsets of discre22 tionary spending and of direct spending;

23 ‘‘(E) the level of the statutory limit on the pub24 lic debt; and
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1 ‘‘(F) for fiscal years to which the amendments

2 made by title II of the Comprehensive Budget Proc3 ess Reform Act of 1999 apply, subtotals of new

4 budget authority and outlays for emergencies, in5 cluding subtotals for direct spending and discre6 tionary spending.

7 Each budget submission shall include a budget message

8 and summary and supporting information and, as a sepa9 rately delineated statement, the levels required in the pre10 ceding sentence for at least each of the 4 ensuing fiscal

11 years.’’.

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

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

14 after ‘‘budget’’.

15 (c) LIMITATION ON CONTENTS OF BUDGET RESOLU16 TIONS.—Section 305 of the Congressional Budget Act of

17 1974 is amended by adding at the end the following new

18 subsection:

19 ‘‘(e) LIMITATION ON CONTENTS.—(1) Any joint reso20 lution on the budget or any amendment thereto or con21 ference report thereon that contains any matter not speci22 fied in section 301(a) or (b) shall not be treated in the

23 House of Representatives or the Senate as a budget reso24 lution under subsection (a) or (b) or as a conference report

25 on a budget resolution under subsection (c) of this section.
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1 ‘‘(2) It shall not be in order in the House of Rep2 resentatives or in the Senate to consider any joint resolu3 tion on the budget or any amendment thereto or con4 ference report thereon that contains any matter referred

5 to in paragraph (1).’’.

6 SEC. 104. BUDGET REQUIRED BEFORE SPENDING BILLS

7 MAY BE CONSIDERED; FALL-BACK PROCE8 DURES IF PRESIDENT VETOES JOINT BUDG9 ET RESOLUTION.

10 (a) AMENDMENTS TO SECTION 303 AND CONFORM11 ING AMENDMENTS.—(1) Section 303 of the Congressional

12 Budget Act of 1974 is amended—

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

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

15 and by redesignating paragraph (3) as paragraph

16 (2); and

17 (B) by striking its section heading and inserting

18 the following new section heading: ‘‘CONSIDERATION

19 OF BUDGET-RELATED LEGISLATION BEFORE BUDG20 ET BECOMES LAW’’.

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

22 Act of 1974 is amended by striking ‘‘April 15’’ and insert23 ing the following: ‘‘the date upon which a joint resolution

24 on the budget for a fiscal year is enacted’’.
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1 (3) Section 3 of the Congressional Budget and Im2 poundment Control Act of 1974 is amended by adding at

3 the end the following new paragraph:

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

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

6 whenever the President returns such resolution with

7 his objections to the House in which it originated

8 within ten days after receiving the resolution or does

9 not sign the resolution and cannot return it due to

10 a congressional adjournment that occurs before the

11 ten-day time limit.’’.

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

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

14 ‘‘305(b)(2),’’.

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

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

17 ‘‘305(b)(2),’’.

18 (b) EXPEDITED PROCEDURES UPON VETO OF JOINT

19 RESOLUTION ON THE BUDGET.—(1) Title III of the Con20 gressional Budget Act of 1974 is amended by adding at

21 the end the following new section:

22 ‘‘EXPEDITED PROCEDURES UPON VETO OF JOINT

23 RESOLUTION ON THE BUDGET

24 ‘‘SEC. 316. (a) SPECIAL RULE.—If the President ve25 toes a joint resolution on the budget for a fiscal year, the

26 chairman of the Committee on Budget of the House of
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1 Representatives or Senate may introduce a concurrent res2 olution on the budget or joint resolution on the budget

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

4 either House fails to report such concurrent or joint reso5 lution referred to it within three legislative days after the

6 date of such referral, the committee shall be automatically

7 discharged from further consideration of such resolution

8 and such resolution shall be placed on the appropriate cal9 endar.

10 ‘‘(b) PROCEDURE IN THE HOUSE OF REPRESENTA11 TIVES AND THE SENATE.—

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

13 provisions of section 305 for the consideration in the

14 House of Representatives and in the Senate of joint

15 resolutions on the budget and conference reports

16 thereon shall also apply to the consideration of con17 current resolutions on the budget introduced under

18 subsection (a) and conference reports thereon.

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

20 resolution on the budget or joint resolution on the

21 budget introduced under subsection (a), and all

22 amendments thereto and debatable motions and ap23 peals in connection therewith, shall be limited to not

24 more than 10 hours and in the House such debate

25 shall be limited to not more than 3 hours.
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1 ‘‘(c) CONTENTS OF CONCURRENT RESOLUTIONS.—

2 The contents of any concurrent resolution on the budget

3 introduced under subsection (a) shall be in compliance

4 with sections 301 and 305.

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

6 BUDGET.—Notwithstanding any other provision of this

7 title, whenever a concurrent resolution on the budget de8 scribed in subsection (a) is agreed to, then the aggregates,

9 allocations, and reconciliation directives (if any) contained

10 in the accompanying report to such concurrent resolution

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

12 reconciliation directives for all purposes of this title for

13 the applicable fiscal years and such concurrent resolution

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

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

16 and any reference to the date of enactment of a joint reso17 lution on the budget shall be deemed to be a reference

18 to the date agreed to when applied to such concurrent res19 olution.’’.

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

21 the Congressional Budget and Impoundment Control Act

22 of 1974 is amended by inserting after the item relating

23 to section 315 the following new item:

‘‘Sec. 316. Expedited procedures upon veto of joint resolution on the budget.’’.
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1 SEC. 105. REAFFIRMING SPECIAL BUDGETARY STATUS OF

2 SOCIAL SECURITY.

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

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

5 further amended by adding at the end the following new

6 section:

7 ‘‘SOCIAL SECURITY

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

9 on the budget shall not include the outlays and revenue

10 totals of the old age, survivors, and disability insurance

11 program established under title II of the Social Security

12 Act or the related provisions of the Internal Revenue Code

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

14 301(a), in any other surplus or deficit totals required by

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

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

17 ‘‘(b) LIMITATION ON CHANGES TO THE SOCIAL SE18 CURITY ACT.—Notwithstanding any other provision of

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

20 of Representatives to consider any reconciliation bill or

21 reconciliation resolution reported pursuant to a joint reso22 lution on the budget agreed to under section 301 or 304,

23 or a joint resolution pursuant to section 258C of the Bal24 anced Budget and Emergency Deficit Control Act of 1985,

25 or any amendment thereto or conference report thereon,

26 that contains recommendations with respect to the old-
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1 age, survivors, and disability insurance program estab2 lished under title II of the Social Security Act.

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

4 BUDGETS.—Notwithstanding any other provision of law,

5 the receipts and disbursements of the Federal Old-Age

6 and Survivors Insurance Trust Fund and the Federal Dis7 ability Insurance Trust Fund shall not be counted as new

8 budget authority, outlays, receipts, or deficit or surplus

9 for purposes of—

10 ‘‘(1) the budget of the United States Govern11 ment as submitted by the President,

12 ‘‘(2) the congressional budget, or

13 ‘‘(3) the Balanced Budget and Emergency Defi14 cit Control Act of 1985.

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

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

17 order in the House of Representatives to consider any bill

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

19 or conference report thereon, if, upon enactment—

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

21 would provide for a net increase in OASDI benefits

22 of at least 0.02 percent of the present value of fu23 ture taxable payroll for the 75-year period utilized in

24 the most recent annual report of the Board of

25 Trustees provided pursuant to section 201(c)(2) of
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1 the Social Security Act, and (ii) such legislation

2 under consideration does not provide at least a net

3 increase, for such 75-year period, in OASDI taxes

4 of the amount by which the net increase in such

5 benefits exceeds 0.02 percent of the present value

6 of future taxable payroll for such 75-year period,

7 ‘‘(B)(i) such legislation under consideration

8 would provide for a net increase in OASDI benefits

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

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

11 with the net increases in OASDI benefits resulting

12 from previous legislation enacted during that fiscal

13 year or any of the previous 4 fiscal years (as esti14 mated at the time of enactment) which are attrib15 utable to those portions of the 5-year estimating pe16 riods for such previous legislation that fall within

17 the 5-year estimating period for such legislation

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

19 such legislation under consideration does not provide

20 at least a net increase, for the 5-year estimating pe21 riod for such legislation under consideration, in

22 OASDI taxes which, together with net increases in

23 OASDI taxes resulting from such previous legisla24 tion which are attributable to those portions of the

25 5-year estimating periods for such previous legisla-
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•HR 853 IH

1 tion that fall within the 5-year estimating period for

2 such legislation under consideration, equals the

3 amount by which the net increase derived under

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

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

6 would provide for a net decrease in OASDI taxes of

7 at least 0.02 percent of the present value of future

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

9 most recent annual report of the Board of Trustees

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

11 Security Act, and (ii) such legislation under consid12 eration does not provide at least a net decrease, for

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

14 amount by which the net decrease in such taxes ex15 ceeds 0.02 percent of the present value of future

16 taxable payroll for such 75-year period, or

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

18 would provide for a net decrease in OASDI taxes

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

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

21 with the net decreases in OASDI taxes resulting

22 from previous legislation enacted during that fiscal

23 year or any of the previous 4 fiscal years (as esti24 mated at the time of enactment) which are attrib25 utable to those portions of the 5-year estimating pe-
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•HR 853 IH

1 riods for such previous legislation that fall within

2 the 5-year estimating period for such legislation

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

4 such legislation under consideration does not provide

5 at least a net decrease, for the 5-year estimating pe6 riod for such legislation under consideration, in

7 OASDI benefits which, together with net decreases

8 in OASDI benefits resulting from such previous leg9 islation which are attributable to those portions of

10 the 5-year estimating periods for such previous legis11 lation that fall within the 5-year estimating period

12 for such legislation under consideration, equals the

13 amount by which the net decrease derived under

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

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

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

17 resolution, as reported, or any amendment thereto, or con18 ference report thereon, the effect of which is to provide

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

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

21 resolution, amendment, or conference report also includes

22 a provision the effect of which is to provide for a net in23 crease of at least an equivalent amount for such period

24 in medicare taxes.

25 ‘‘(3) DEFINITIONS.—For purposes of this subsection:
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1 ‘‘(A) The term ‘OASDI benefits’ means the

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

3 insurance programs under title II of the Social Secu4 rity Act.

5 ‘‘(B) The term ‘OASDI taxes’ means—

6 ‘‘(i) the taxes imposed under sections

7 1401(a), 3101(a), and 3111(a) of the Internal

8 Revenue Code of 1986, and

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

10 such Code (to the extent attributable to section

11 86 of such Code).

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

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

14 3111(b) of the Internal Revenue Code of 1986.

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

16 include legislation enacted before fiscal year 1991.

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

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

19 in which such legislation becomes or would become

20 effective and the next 4 fiscal years.

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

22 any amendment thereto or conference report there23 on, involving a change in chapter 1 of the Internal

24 Revenue Code of 1986 shall be treated as affecting

25 the amount of OASDI taxes referred to in subpara-
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1 graph (B)(ii) unless such provision changes the in2 come tax treatment of OASDI benefits.

3 ‘‘(e) PRESENTATION OF BUDGETARY AGGRE4 GATES.—For purposes of chapter 11 of title 31, United

5 States Code, or this Act, tables and other displays of

6 budgetary aggregates for the United States Government

7 of the Director of the Office of Management and Budget

8 or the Director of the Congressional Budget Office shall

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

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

11 table of contents set forth in section 1(b) of the Congres12 sional Budget and Impoundment Control Act of 1974 is

13 amended by inserting after the item relating to section

14 316 the following new item:

‘‘Sec. 317. Social security.’’.

15 SEC. 106. CONFORMING AMENDMENTS TO EFFECTUATE

16 JOINT RESOLUTIONS ON THE BUDGET.

17 (a) CONFORMING AMENDMENTS TO THE CONGRES18 SIONAL BUDGET AND IMPOUNDMENT CONTROL ACT OF

19 1974.—(1)(A) Sections 300, 302, 303, 304, 305, 308,

20 310, 311, 312, 314, 405, and 904 of the Congressional

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

22 by striking ‘‘concurrent’’ each place it appears and by in23 serting ‘‘joint’’.

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

25 310(d)(1) of the Congressional Budget Act of 1974 are
31

•HR 853 IH

1 amended by striking ‘‘most recently agreed to concurrent

2 resolution on the budget’’ each place it occurs and insert3 ing ‘‘most recently enacted joint resolution on the budget

4 or agreed to concurrent resolution on the budget (as appli5 cable)’’.

6 (ii) Section 304 of such Act is amended by striking

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

8 most recently agreed to’’ and inserting ‘‘most recently en9 acted joint resolution on the budget or agreed to concur10 rent resolution on the budget (as applicable) for such

11 year’’.

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

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

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

15 (2)(A) Paragraph (4) of section 3 of the Congres16 sional Budget and Impoundment Control Act of 1974 is

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

18 and by inserting ‘‘joint’’.

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

20 of such Act is amended—

21 (i) in the item relating to section 301 by strik22 ing ‘‘Adoption of Concurrent Resolution’’ and insert23 ing ‘‘Joint Resolutions’’;

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

25 and inserting the following:
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‘‘Sec. 303. Consideration of budget-related legislation before budget becomes

law.’’; and

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

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

3 305.

4 (b) CONFORMING AMENDMENTS TO THE RULES OF

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

6 4(a)(4), 4(b)(2), 4(f)(1)(A), and 4(f)(2) of rule X, clause

7 10 of rule XVIII, and clause 10 of rule XX of the Rules

8 of the House of Representatives are amended by striking

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

10 ‘‘joint’’.

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

12 of Representatives is amended—

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

14 inserting ‘‘(6)’’; and

15 (B) by striking paragraph (c).

16 (c) CONFORMING AMENDMENTS TO THE BALANCED

17 BUDGET AND EMERGENCY DEFICIT CONTROL ACT OF

18 1985.—Section 258C(b)(1) of the Balanced Budget and

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

20 907d(b)(1)) is amended by striking ‘‘concurrent’’ and by

21 inserting ‘‘joint’’.

22 (d) CONFORMING AMENDMENTS TO SECTION 310

23 REGARDING RECONCILIATION DIRECTIVES.—(1) The side

24 heading of section 310(a) of the Congressional Budget Act
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1 of 1974 (as amended by section 106(a)) is further amend2 ed by inserting ‘‘JOINT EXPLANATORY STATEMENT AC3 COMPANYING CONFERENCE REPORT ON’’ before ‘‘JOINT’’.

4 (2) Section 310(a) of such Act is amended by striking

5 ‘‘A’’ and inserting ‘‘The joint explanatory statement ac6 companying the conference report on a’’.

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

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

9 explanatory statement accompanying the conference re10 port on’’.

11 (4) Section 310(c)(1) of such Act is amended by in12 serting ‘‘the joint explanatory statement accompanying

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

14 (5) Subsection (g) of section 310 of such Act is re15 pealed.

16 (e) CONFORMING AMENDMENTS TO SECTION 3 RE17 GARDING DIRECT SPENDING.—Section 3 of the Congres18 sional Budget and Impoundment Control Act of 1974 (as

19 amended by section 104(a)(3)) is further amended by add20 ing at the end the following new paragraph:

21 ‘‘(12) The term ‘direct spending’ has the mean22 ing given to such term in section 250(c)(8) of the

23 Balanced Budget and Emergency Deficit Control

24 Act of 1985.’’.
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1 (f) TECHNICAL AMENDMENT REGARDING REVISED

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

3 Budget Act of 1974 is amended by—

4 (1) striking ‘‘REPORTING’’ in the side heading,

5 by inserting ‘‘the chairmen of’’ before ‘‘the Commit6 tees’’, and by striking ‘‘may report’’ and inserting

7 ‘‘shall make and have published in the Congressional

8 Record’’; and

9 (2) adding at the end the following new sen10 tence: ‘‘For purposes of considering amendments

11 (other than for amounts for emergencies covered by

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

13 be so adjusted.’’.

14 TITLE II—RESERVE FUNDS FOR

15 EMERGENCIES

16 SEC. 201. PURPOSE.

17 The purposes of this title are to—

18 (1) develop budgetary and fiscal procedures for

19 emergencies;

20 (2) subject spending for emergencies to budg21 etary procedures and controls; and

22 (3) establish criteria for determining compliance

23 with emergency requirements.
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1 SEC. 202. REPEAL OF ADJUSTMENTS FOR EMERGENCIES.

2 (a) DISCRETIONARY SPENDING LIMITS.—Section

3 251(b)(2)(A) of the Balanced Budget and Emergency

4 Deficit Control Act of 1985 is repealed.

5 (b) DIRECT SPENDING.—Sections 252(e) and

6 252(d)(4)(B) of the Balanced Budget and Emergency

7 Deficit Control Act of 1985 are repealed.

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

9 XXI of the Rules of the House of Representatives is

10 amended by repealing paragraph (e) and by redesignating

11 paragraph (f) as paragraph (e).

12 SEC. 203. OMB EMERGENCY CRITERIA.

13 Section 3 of the Congressional Budget and Impound14 ment Control Act of 1974 (as amended by sections

15 104(a)(3) and 106(e)) is further amended by adding at

16 the end the following new paragraph:

17 ‘‘(13)(A) The term ‘emergency’ means a situa18 tion that—

19 ‘‘(i) requires new budget authority and

20 outlays (or new budget authority and the out21 lays flowing therefrom) for the prevention or

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

23 property, or a threat to national security; and

24 ‘‘(ii) is unanticipated.
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1 ‘‘(B) As used in subparagraph (A), the term

2 ‘unanticipated’ means that the underlying situation

3 is—

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

5 into being or not building up over time;

6 ‘‘(ii) urgent, which means a pressing and

7 compelling need requiring immediate action;

8 ‘‘(iii) unforeseen, which means not pre9 dicted or anticipated as an emerging need; and

10 ‘‘(iv) temporary, which means not of a per11 manent duration.’’.

12 SEC. 204. DEVELOPMENT OF GUIDELINES FOR APPLICA13 TION OF EMERGENCY DEFINITION.

14 Not later than 5 months after the date of enactment

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

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

17 with the chairmen of the Committees on Appropriations

18 and applicable authorizing committees of their respective

19 Houses and the Directors of the Congressional Budget Of20 fice and the Office of Management and Budget, jointly

21 publish in the Congressional Record guidelines for applica22 tion of the definition of emergency set forth in section

23 3(13) of the Congressional Budget and Impoundment

24 Control Act of 1974.
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1 SEC. 205. RESERVE FUNDS FOR EMERGENCIES IN PRESI2 DENT’S BUDGET.

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

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

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

6 section 314(f) of the Congressional Budget Act of 1974.’’.

7 SEC. 206. ADJUSTMENTS AND RESERVE FUNDS FOR EMER8 GENCIES IN JOINT BUDGET RESOLUTIONS.

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

10 314(a) of the Congressional Budget Act of 1974 is amend11 ed to read as follows:

12 ‘‘(a) ADJUSTMENTS.—

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

14 or joint resolution, the offering of an amendment

15 thereto, or the submission of a conference report

16 thereon, the chairman of the Committee on the

17 Budget of the House of Representatives or the Sen18 ate shall make the adjustments set forth in para19 graph (2) for the amount of new budget authority

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

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

22 outlays flowing from that budget authority.

23 ‘‘(2) MATTERS TO BE ADJUSTED.—The adjust24 ments referred to in paragraph (1) are to be made

25 to—
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•HR 853 IH

1 ‘‘(A) the discretionary spending limits in

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

3 joint resolution on the budget;

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

5 appropriate joint resolution on the budget pur6 suant to section 302(a); and

7 ‘‘(C) the budgetary aggregates as set forth

8 in the appropriate joint resolution on the budg9 et;

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

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

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

13 Act of 1974 is amended to read as follows:

14 ‘‘(1) an amount not to exceed the amount re15 served for emergencies pursuant to the requirements

16 of subsection (f);’’.

17 (b) ESTABLISHMENT OF RESERVE FUNDS.—Section

18 314 of the Congressional Budget Act of 1974 is amended

19 by adding at the end the following new subsections:

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

21 ‘‘(1) RESERVE FUND FOR DISCRETIONARY

22 BUDGET AUTHORITY AND OUTLAYS.—

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

24 the reserve fund for emergencies for discre25 tionary budget authority and outlays for a fiscal
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1 year pursuant to section 301(a)(6) shall

2 equal—

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

4 of discretionary budget authority for emer5 gencies in the 5 fiscal years preceding the

6 current year; and

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

9 emergencies flowing from enacted levels of

10 discretionary budget authority.

11 ‘‘(B) AVERAGE DISCRETIONARY LEVELS.—

12 For purposes of subparagraph (A), the amount

13 used for a fiscal year to calculate the average

14 of the enacted levels when one or more of such

15 5 preceding fiscal years is any of fiscal years

16 1994 through 1998 is as follows: the amount of

17 enacted levels of discretionary budget authority

18 and the amount of outlays flowing therefrom

19 for emergencies, which shall be determined by

20 the Committees on the Budget of the House of

21 Representatives and the Senate after receipt of

22 a report on such matter transmitted to such

23 committees by the Director of the Congressional

24 Budget Office 6 months after the date of enact-
40

•HR 853 IH

1 ment of this subsection and thereafter in Feb2 ruary of each calendar year.

3 ‘‘(2) RESERVE FUND FOR DIRECT SPENDING

4 BUDGET AUTHORITY AND OUTLAYS.—

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

6 the reserve fund for emergencies for direct

7 spending for a fiscal year pursuant to section

8 301(a)(6) shall equal—

9 ‘‘(i) the average annual enacted levels

10 of direct spending budget authority for

11 emergencies in the 5 fiscal years preceding

12 the current year; and

13 ‘‘(ii) the average annual level of out14 lays in such 5 preceding fiscal years for

15 emergencies flowing from enacted levels of

16 direct spending.

17 ‘‘(B) AVERAGE DIRECT SPENDING LEV18 ELS.—For purposes of subparagraph (A), the

19 amount used for a fiscal year to calculate the

20 average of the enacted levels when one or more

21 of such 5 preceding fiscal years is any of fiscal

22 years 1994 through 1998 is as follows: the

23 amount of enacted levels of direct spending

24 budget authority and the amount of outlays

25 flowing therefrom for emergencies, which shall
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1 be determined by the Committees on the Budg2 et of the House of Representatives and the Sen3 ate after receipt of a report on such matter

4 transmitted to such committees by the Director

5 of the Congressional Budget Office 6 months

6 after the date of enactment of this subsection

7 and thereafter in February of each calendar

8 year.

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

10 legislation that provides budget authority for any

11 emergency pursuant to subsection (h), the chairman

12 of the Committee on the Budget shall make an ad13 justment under subsection (a)(1) only to the applica14 ble allocation if the chairman determines and cer15 tifies that such outlays or budget authority and the

16 resulting outlays are for an emergency within the

17 meaning of section 3(13).

18 ‘‘(g) EMERGENCIES IN EXCESS OF AMOUNTS IN RE19 SERVE FUNDS.—Whenever the Committee on Appropria20 tions or any other committee reports any bill or joint reso21 lution that provides budget authority for any emergency

22 and the report accompanying that bill or joint resolution,

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

24 increases outlays or provides budget authority (and the

25 outlays flowing therefrom) for such emergency, the enact-
42

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1 ment of which would cause the total amount provided for

2 emergencies in the joint resolution on the budget (pursu3 ant to section 301(a)(6)) to be exceeded and that emer4 gency is certified as an emergency pursuant to section

5 (f)(3):

6 ‘‘(1) Such bill or joint resolution shall be re7 ferred to the Committee on the Budget of the House

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

9 to report it without amendment, other than that

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

11 of the day in which it is reported from the originat12 ing committee. If the Committee on the Budget of

13 either House fails to report a bill or joint resolution

14 referred to it under this paragraph within such 3-

15 day period, the committee shall be automatically dis16 charged from further consideration of such bill or

17 joint resolution and such bill or joint resolution shall

18 be placed on the appropriate calendar.

19 ‘‘(2) An amendment to such a bill or joint reso20 lution referred to in this subsection shall only consist

21 of an exemption from section 251 or 252 (as appli22 cable) of the Balanced Budget and Emergency Defi23 cit Control Act of 1985 of all or any part of the pro24 visions that provide budget authority (and the out25 lays flowing therefrom) for such emergency if the
43

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1 committee determines that such emergency meets

2 the criteria set forth in subsection (f).

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

4 with an amendment specified in paragraph (2) 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,

10 joint resolution, amendment, motion, or conference

11 report.’’.

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

13 heading of section 314 of the Congressional Budget Act

14 of 1974 is amended to read as follows:

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

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

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

18 Budget and Impoundment Control Act of 1974 is amend19 ed to read as follows:

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

20 SEC. 207. COMMITTEE NOTIFICATION OF EMERGENCY LEG21 ISLATION.

22 Section 314 of the Congressional Budget Act of 1974

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

24 at the end the following new subsection:
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•HR 853 IH

1 ‘‘(h) COMMITTEE NOTIFICATION OF EMERGENCY

2 LEGISLATION.—Whenever the Committee on Appropria3 tions or any other committee of either House (including

4 a committee of conference) reports any bill or joint resolu5 tion that provides budget authority for any emergency, the

6 report accompanying that bill or joint resolution (or the

7 joint explanatory statement of managers in the case of a

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

9 identify all provisions that provide budget authority and

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

11 SEC. 208. APPLICATION OF SECTION 306 TO EMERGENCIES

12 IN EXCESS OF AMOUNTS IN RESERVE FUNDS.

13 Section 306 of the Congressional Budget Act of 1974

14 is amended by inserting at the end the following new sen15 tence: ‘‘No amendment reported by the Committee on the

16 Budget (or from the consideration of which such commit17 tee has been discharged) pursuant to section 314(g) may

18 be amended.’’.

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

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

21 of 1974 is amended by striking ‘‘and’’ at the end of sub22 paragraph (B), by striking the period at the end of sub23 paragraph (C) and inserting ‘‘; and’’, and by adding at

24 the end the following new subparagraph:
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•HR 853 IH

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

2 of amounts remaining in the reserve funds for

3 emergencies.’’.

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

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

6 of 1974 (as amended by section 103(b)) is further amend7 ed by striking ‘‘and’’ after subparagraph (F), by striking

8 the period at the end of subparagraph (G) and inserting

9 ‘‘; and’’, and by adding at the end the following new sub10 paragraph:

11 ‘‘(H) the average annual enacted levels

12 of—

13 ‘‘(i) discretionary budget authority

14 and the resulting outlays for emergencies;

15 and

16 ‘‘(ii) direct spending budget authority

17 and the resulting outlays for emergencies;

18 for the 5 fiscal years preceding the fiscal year

19 of such resolution.’’.

20 SEC. 211. PROHIBITION ON AMENDMENTS TO EMERGENCY

21 RESERVE FUNDS.

22 (a) POINT OF ORDER.—Section 305 of the Congres23 sional Budget Act of 1974 (as amended by section 103(c))

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

25 subsection:
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•HR 853 IH

1 ‘‘(f) It shall not be in order in the House of Rep2 resentatives or in the Senate to consider an amendment

3 to a joint resolution on the budget which changes the

4 amount of budget authority and outlays set forth in sec5 tion 301(a)(6) for emergency reserve funds.’’.

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

7 of the Congressional Budget Act of 1974 is amended by

8 inserting ‘‘section 305(e), section 305(f),’’ after ‘‘section

9 305(c)(4),’’.

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

11 Act of 1974 is amended by inserting ‘‘section 305(e), sec12 tion 305(f),’’ after ‘‘section 305(c)(4),’’.

13 SEC. 212. EFFECTIVE DATE.

14 The amendments made by this title shall take effect

15 only after the enactment of legislation changing or extend16 ing for any fiscal year any of the discretionary spending

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

18 Emergency Deficit Control Act of 1985 and such amend19 ments shall apply to fiscal years determined as follows:

20 (1) Fiscal years beginning after the fiscal year

21 in which such effective date occurs if such effective

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

23 (2) Fiscal years beginning after the first fiscal

24 year after the fiscal year in which such effective date
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1 occurs if such effective date occurs after April 15 of

2 the fiscal year in which such effective date occurs.

3 TITLE III—ENFORCEMENT OF

4 BUDGETARY DECISIONS

5 SEC. 301. PURPOSES.

6 The purposes of this title are to—

7 (1) close loopholes in the enforcement of budget

8 resolutions;

9 (2) require committees of the House of Rep10 resentatives to include budget compliance statements

11 in reports accompanying all legislation;

12 (3) require committees of the House of Rep13 resentatives to justify the need for waivers of the

14 Congressional Budget Act of 1974; and

15 (4) provide cost estimates of conference reports.

16 Subtitle A—Application of Points of

17 Order to Unreported Legislation

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

19 TO UNREPORTED LEGISLATION.

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

21 1974 is amended by striking ‘‘reported’’ the first place it

22 appears.

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

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

25 amended—
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1 (1) in paragraph (1), by striking ‘‘(A)’’ and by

2 redesignating subparagraph (B) as paragraph (2)

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

4 paragraph (2) and inserting a period; and

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

6 by such section 104(a)(1)).

7 Subtitle B—Compliance with

8 Budget Resolution

9 SEC. 321. BUDGET COMPLIANCE STATEMENTS.

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

11 of Representatives is amended by adding at the end the

12 following new subparagraph:

13 ‘‘(4) A budget compliance statement prepared

14 by the chairman of the Committee on the Budget,

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

16 which shall be comprised of an assessment by such

17 chairman as to whether the bill or joint resolution

18 complies with the requirements of sections 302, 303,

19 311, and 401 of the Congressional Budget Act of

20 1974 and may include the budgetary implications of

21 that bill or joint resolution under section 251 or 252

22 of the Balanced Budget and Emergency Deficit Con23 trol Act of 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 House of

6 Representatives is amended by adding at the end the fol7 lowing 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

12 1974, unless the report accompanying such resolution in13 cludes a description of the provision proposed to be

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

15 reasons why such waiver should be granted, and an esti16 mated cost of the provisions 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,’’ be23 fore ‘‘and submit’’.

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

25 and insert ‘‘bill, resolution, or conference report’’.
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1 (3) At the end of paragraph (2) strike ‘‘and’’,

2 at the end of paragraph (3) strike the period and in3 sert ‘‘; and’’, and after such paragraph (3) add the

4 following new paragraph:

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

6 resolution, or conference report provides indefinite

7 spending authority.’’.

8 (b) The second sentence of section 402 of the Con9 gressional Budget Act of 1974 is amended by inserting

10 before the period the following: ‘‘, or in the case of a con11 ference report, shall be included in the joint explanatory

12 statement of managers accompanying such conference re13 port if timely submitted before such report is filed’’.

14 TITLE IV—ACCOUNTABILITY

15 FOR FEDERAL SPENDING

16 SEC. 401. PURPOSES.

17 The purposes of this title are to—

18 (1) require committees to develop a schedule for

19 reauthorizing all programs within their jurisdictions;

20 (2) facilitate amendments to subject new enti21 tlement programs to annual discretionary appropria22 tions;

23 (3) require the Committee on the Budget to

24 justify any allocation to an authorizing committee
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1 for legislation that would not be subject to annual

2 discretionary appropriation;

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

4 spending and tax legislation;

5 (5) provide a point of order for legislation cre6 ating a new entitlement program that does not ex7 pire within 10 years; and

8 (6) require a vote in the House of Representa9 tives on any measure that increases the statutory

10 limit on the public debt.

11 Subtitle A—Prohibitions on

12 Indefinite Spending

13 SEC. 411. FIXED-YEAR AUTHORIZATIONS REQUIRED FOR

14 NEW PROGRAMS.

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

16 Budget Act of 1974 is amended—

17 (1) by striking subsections (a) and (b) and in18 serting the following new subsection:

19 ‘‘(a) PROHIBITION ON INDEFINITE AUTHORIZA20 TIONS.—It shall not be in order in the House of Rep21 resentatives or in the Senate to consider a bill or joint

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

23 that provides direct spending for a new program, unless

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

25 years.’’;
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1 (2) by redesignating subsection (c) as sub2 section (b) and by striking ‘‘Subsections (a) and (b)

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

4 in such redesignated subsection (b); and

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

6 follows:

7 ‘‘FIXED-YEAR AUTHORIZATIONS REQUIRED FOR DIRECT

8 SPENDING’’.

9 (b) CONFORMING AMENDMENT.—The item relating

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

11 1(b) of the Congressional Budget and Impoundment Con12 trol Act of 1974 is amended to read as follows:

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

13 (c) PROHIBITION ON INDEFINITE AUTHORIZATION

14 OF DISCRETIONARY APPROPRIATIONS.—Rule XXI of the

15 Rules of the House of Representatives is amended by add16 ing at the end the following new clause:

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

18 resolution, amendment, or conference report that author19 izes the appropriation of new budget authority, as defined

20 in section 3(2)(C) of the Congressional Budget and Im21 poundment Control Act of 1974, unless such authorization

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

23 years.’’.
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1 SEC. 412. AMENDMENTS TO SUBJECT NEW ENTITLEMENTS

2 TO ANNUAL APPROPRIATIONS.

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

4 of the Rules of the House of Representatives is amended

5 by adding at the end the following new paragraph:

6 ‘‘(c)(1) In the Committee of the Whole, an amend7 ment to subject a new program providing direct spending

8 to discretionary appropriations, if offered by the chairman

9 of the Committee on the Budget (or his designee) or the

10 chairman of the Committee of Appropriations (or his des11 ignee), 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 min14 utes equally divided and controlled by the proponent of

15 the amendment and a Member opposed and shall not be

16 subject to amendment.

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

18 spending’ has the meaning given such term in section

19 3(12) of the Congressional Budget and Impoundment

20 Control Act of 1974.’’.

21 (b) ADJUSTMENT OF DISCRETIONARY SPENDING

22 LIMITS FOR DISCRETIONARY APPROPRIATIONS OFFSET

23 BY MANDATORY SAVINGS.—

24 (1) PURPOSE.—The purpose of the amend25 ments made by this subsection is to hold the discre26 tionary spending limits and the allocations made to
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1 the Committee on Appropriations under section

2 302(a) of the Congressional Budget Act of 1974

3 harmless for legislation that offsets a new discre4 tionary program with a designated reduction in di5 rect spending.

6 (2) DESIGNATING ENTITLEMENT SAVINGS IN

7 AUTHORIZATION LEGISLATION FOR NEW DISCRE8 TIONARY PROGRAMS.—Section 252 of the Balanced

9 Budget and Emergency Deficit Control Act of 1985

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

11 adding at the end the following new subsection:

12 ‘‘(e) OFFSETS.—If a provision of direct spending leg13 islation is enacted that—

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

15 year; and

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

17 subsection and such designation specifically identi18 fies an authorization of discretionary appropriations

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

20 then the reductions in new budget authority and outlays

21 in all fiscal years resulting from that provision shall be

22 designated as an offset in the reports required under sub23 section (d).’’.

24 (3) EXEMPTING SUCH DESIGNATED ENTITLE25 MENT SAVINGS FROM PAYGO SCORECARD.—Section
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1 252(d)(4) of the Balanced Budget and Emergency

2 Deficit Control Act of 1985 (as amended by section

3 202(b)) is further amended by adding at the end the

4 following new subparagraph:

5 ‘‘(B) offset provisions as designated under

6 subsection (e).’’.

7 (4) ADJUSTMENT IN DISCRETIONARY SPENDING

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

9 and Emergency Deficit Control Act of 1985 is

10 amended by adding at the end the following new

11 subparagraph:

12 ‘‘(H) DISCRETIONARY AUTHORIZATION

13 OFFSETS.—If an authorization Act includes one

14 or more provisions reducing direct spending and

15 specifically identifies those provisions as offsets

16 pursuant to section 252(e), the adjustments

17 shall be an increase in the budget authority and

18 outlay caps in each fiscal year equal to the

19 amount of the budget authority and outlay re20 ductions, respectively, achieved by the specified

21 offsets in that fiscal year, except that the ad22 justments for the first fiscal year in which the

23 offsetting provisions take effect shall not exceed

24 the amount of discretionary new budget author25 ity enacted for the new program (authorized in
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1 that Act) in an Act making discretionary appro2 priations, and the outlays flowing therefrom.’’.

3 (5) ADJUSTMENT IN APPROPRIATION COMMIT4 TEE’S ALLOCATIONS.—Section 314(b) of the Con5 gressional Budget Act of 1974 is amended by strik6 ing ‘‘; or’’ at the end of paragraph (5), by striking

7 the period and inserting ‘‘; or’’ at the end of para8 graph (6), and by adding at the end the following

9 new paragraph:

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

11 for which an offset was designated pursuant to sec12 tion 252(e) of the Balanced Budget and Emergency

13 Deficit Control Act of 1985 and any outlays flowing

14 therefrom, but not to exceed the amount of the des15 ignated decrease in direct spending for that year for

16 that program in a prior law.’’.

17 (6) ADJUSTMENT IN AUTHORIZING COMMIT18 TEE’S ALLOCATIONS.—Section 314 of the Congres19 sional Budget Act of 1974 (as amended by sections

20 206 and 207) is further amended by adding at the

21 end the following new subsection:

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

23 ALLOCATIONS BY AMOUNT OF DIRECT SPENDING OFF24 SET.—After the reporting of a bill or joint resolution (by

25 a committee other than the Committee on Appropria-
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1 tions), or the offering of an amendment thereto or the sub2 mission of a conference report thereon, that contains a

3 provision that decreases direct spending for any fiscal year

4 and that is designated as an offset pursuant to section

5 252(e) of the Balanced Budget and Emergency Deficit

6 Control Act of 1985, the chairman of the Committee on

7 the Budget shall reduce the allocations of new budget au8 thority and outlays made to such committee under section

9 302(a)(1) by the amount so designated.’’.

10 Subtitle B—Enhanced Congres11 sional Oversight Responsibil12 ities

13 SEC. 421. TEN-YEAR CONGRESSIONAL REVIEW REQUIRE14 MENT OF PERMANENT BUDGET AUTHORITY.

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

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

17 amended by striking subdivisions (B) and (C) and insert18 ing the following new subdivision:

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

20 its review of those laws, programs, or agencies with21 in its jurisdiction, including those that operate under

22 permanent budget authority or permanent statutory

23 authority. Such timetable shall demonstrate that

24 each law, program, or agency within the committee’s
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1 jurisdiction will be reauthorized at least once every

2 ten years.’’.

3 (b) REVIEW OF PERMANENT BUDGET AUTHORITY

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

5 of rule X of the Rules of the House of Representatives

6 is amended—

7 (1) by striking subparagraph (2); and

8 (2) by redesignating subparagraph (3) as sub9 paragraph (2) and by striking ‘‘from time to time’’

10 and inserting ‘‘at least once each Congress’’ in sub11 paragraph (2) (as redesignated).

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

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

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

15 ‘‘at least once every ten years’’.

16 SEC. 422. JUSTIFICATIONS OF DIRECT SPENDING.

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

18 the Congressional Budget Act of 1974 is amended by add19 ing at the end the following new paragraph:

20 ‘‘(6) JUSTIFICATION OF CERTAIN SPENDING AL21 LOCATIONS.—The joint explanatory statement ac22 companying a conference report on a joint resolution

23 on the budget that includes any allocation to a com24 mittee (other than the Committee on Appropria25 tions) of levels in excess of current law levels shall
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1 set forth a justification for not subjecting any pro2 gram, project, or activity (for which the allocation is

3 made) to annual discretionary appropriation.’’.

4 (b) PRESIDENTS’ BUDGET SUBMISSIONS.—Section

5 1105(a) of title 31, United States Code, is amended by

6 adding at the end the following new paragraph:

7 ‘‘(33) a justification for not subjecting each

8 new program to discretionary appropriations.’’.

9 (c) COMMITTEE JUSTIFICATION FOR DIRECT SPEND10 ING.—The first sentence of clause 4(e)(1) of rule X of the

11 Rules of the House of Representatives is amended by in12 serting before the period the following: ‘‘, and will provide

13 specific information in any report accompanying such bills

14 and joint resolutions to justify why the programs and ac15 tivities involved would not be subject to annual appropria16 tion’’.

17 SEC. 423. SURVEY OF ACTIVITY REPORTS OF HOUSE COM18 MITTEES.

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

20 Representatives is amended by redesignating paragraph

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

22 the following new paragraph:

23 ‘‘(4) Such report shall include a summary of and jus24 tifications for all bills and joint resolutions reported by

25 such committee that—
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1 ‘‘(A) were considered before the adoption of the

2 appropriate budget resolution and did not fall within

3 an exception set forth in section 303(b) of the Con4 gressional Budget Act of 1974;

5 ‘‘(B) exceeded its allocation under section

6 302(a) of such Act or breached an aggregate level

7 in violation of section 311 of such Act; or

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

9 401(a) of such Act pertaining to indefinite direct

10 spending authority.

11 Such report shall also specify the total amount by which

12 legislation reported by that committee exceeded its alloca13 tion under section 302(a) or breached the revenue floor

14 under section 311(a) of such Act for each fiscal year dur15 ing that Congress.’’.

16 SEC. 424. CONTINUING STUDY OF ADDITIONAL BUDGET

17 PROCESS REFORMS.

18 Section 703 of the Congressional Budget Act of 1974

19 is amended as follows:

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

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

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

23 add the following new paragraph:

24 ‘‘(5) evaluating whether existing programs

25 should be subject to discretionary appropriations and
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1 establishing guidelines for subjecting new or ex2 panded programs to annual appropriation and rec3 ommend any necessary changes in statutory enforce4 ment mechanisms and scoring conventions to effec5 tuate such changes.’’.

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

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

8 Congress’’.

9 SEC. 425. GAO REPORTS.

10 The last sentence of section 404 of the Congres11 sional Budget Act of 1974 is amended to read as follows:

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

13 years.’’.

14 Subtitle C—Strengthened

15 Accountability

16 SEC. 431. TEN-YEAR CBO ESTIMATES.

17 (a) CBO REPORTS ON LEGISLATION.—Section

18 308(a)(1)(B) of the Congressional Budget Act of 1974 is

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

20 (b) ANALYSIS BY CBO.—Section 402(1) of the Con21 gressional Budget Act of 1974 is amended by striking ‘‘4’’

22 and inserting ‘‘nine’’.

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

24 XIII of the Rules of the House of Representatives is
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1 amended by striking ‘‘five’’ each place it appears and in2 serting ‘‘10’’.

3 SEC. 432. REPEAL OF RULE XXIII OF THE RULES OF THE

4 HOUSE OF REPRESENTATIVES.

5 Rule XXIII of the Rules of the House of Representa6 tives (relating to the establishment of the statutory limit

7 on the public debt) is repealed.

8 TITLE V—BUDGETING FOR UN9 FUNDED LIABILITIES AND

10 OTHER LONG-TERM OBLIGA11 TIONS

12 SEC. 501. PURPOSES.

13 The purposes of this title are to—

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

15 insurance programs;

16 (2) improve congressional control of those costs;

17 and

18 (3) periodically report on long-term budgetary

19 trends.

20 Subtitle A—Budgetary Treatment

21 of Federal Insurance Programs

22 SEC. 511. FEDERAL INSURANCE PROGRAMS.

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

24 1974 is amended by adding after title V the following new

25 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 meth6 odology 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.’’.

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 defi15 cit.

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 submit7 ted, along with the proposed increase or decrease of

8 spending in percentage terms for each function and

9 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 follow20 ing new sentence: ‘‘For discretionary spending, these esti21 mates shall assume the levels set forth in the discretionary

22 spending limits under section 251(c) of the Balanced

23 Budget and Emergency Deficit Control Act of 1985, as

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

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

2 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 develop8 ing 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 Accountabil15 ity 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 Subtitle D—Automatic Continuing

2 Resolution

3 SEC. 641. AUTOMATIC CONTINUING RESOLUTION.

4 (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 ‘‘§ 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 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 ‘‘(A) in the corresponding regular appropriation

18 Act for such preceding fiscal year; or

19 ‘‘(B) if the corresponding regular appropriation

20 bill for such preceding fiscal year did not become

21 law, then in a joint resolution making continuing ap22 propriations for such preceding fiscal year.

23 ‘‘(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 ‘‘(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 ‘‘(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 ‘‘(B) the last day of such fiscal year.

18 ‘‘(b) An appropriation or funds made available, or au19 thority granted, for a project or activity for any fiscal year

20 pursuant to this section shall be subject to the terms and

21 conditions imposed with respect to the appropriation made

22 or funds made available for the preceding fiscal year, or

23 authority granted for such project or activity under cur24 rent law.
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1 ‘‘(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 ‘‘(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 ‘‘(e) This section shall not apply to a project or activ15 ity during a fiscal year if any other provision of law (other

16 than an authorization of appropriations)—

17 ‘‘(1) makes an appropriation, makes funds

18 available, or grants authority for such project or ac19 tivity to continue for such period, or

20 ‘‘(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 ‘‘(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 ‘‘(1) Agriculture, rural development, and relat5 ed agencies programs.

6 ‘‘(2) The Departments of Commerce, Justice,

7 and State, the judiciary, and related agencies.

8 ‘‘(3) The Department of Defense.

9 ‘‘(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 ‘‘(5) The Departments of Labor, Health and

13 Human Services, and Education, and related agen14 cies.

15 ‘‘(6) The Department of Housing and Urban

16 Development, and sundry independent agencies,

17 boards, commissions, corporations, and offices.

18 ‘‘(7) Energy and water development.

19 ‘‘(8) Foreign assistance and related programs.

20 ‘‘(9) The Department of the Interior and relat21 ed agencies.

22 ‘‘(10) Military construction.

23 ‘‘(11) The Department of Transportation and

24 related agencies.
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1 ‘‘(12) The Treasury Department, the U.S.

2 Postal Service, the Executive Office of the President,

3 and certain independent agencies.

4 ‘‘(13) The legislative branch.’’.

5 (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 (c) CHAPTER ANALYSIS.—The analysis of chapter 13

10 of title 31, United States Code, is amended by inserting

11 after the item relating to section 1310 the following new

12 item:

‘‘1311. Continuing appropriations.’’.

13 (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.’’.

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