[COMMITTEE PRINT]

COMPILATION OF LAWS AND RULES

RELATING TO THE CONGRESSIONAL

BUDGET PROCESS

AS AMENDED THROUGH MARCH 23, 2000

COMMITTEE ON THE BUDGET

U.S. HOUSE OF REPRESENTATIVES

MAY 2000

Serial No. CP–4

Printed for the use of the Committee on the Budget

U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 

1

53–587 2000

[COMMITTEE PRINT]

COMPILATION OF LAWS AND RULES

RELATING TO THE CONGRESSIONAL

BUDGET PROCESS

AS AMENDED THROUGH MARCH 23, 2000

COMMITTEE ON THE BUDGET

U.S. HOUSE OF REPRESENTATIVES

MAY 2000

Serial No. CP–4

Printed for the use of the Committee on the Budget

2

COMMITTEE ON THE BUDGET

JOHN R. KASICH, Ohio, Chairman

SAXBY CHAMBLISS, Georgia, Speaker’s

Designee

CHRISTOPHER SHAYS, Connecticut

WALLY HERGER, California

BOB FRANKS, New Jersey

NICK SMITH, Michigan

JIM NUSSLE, Iowa

PETER HOEKSTRA, MI

GEORGE RADANOVICH, California

CHARLES BASS, New Hampshire

GIL GUTKNECHT, Minnesota

VAN HILLEARY, Tennessee

JOHN E. SUNUNU, New Hampshire

JOSEPH R. PITTS, Pennsylvania

JOE KNOLLENBERG, Mchigan

MAC THORNBERRY, Texas

JIM RYUN, Kansas

MAC COLLINS, Georgia

ZACH WAMP, Tennessee

MARK GREEN, Wisconsin

ERNIE FLETCHER, Kentucky

GARY G. MILLER, California

PAUL RYAN, Wisconsin

PATRICK J. TOOMEY, Pennsylvania

JOHN M. SPRATT, JR., South Carolina,

Ranking

JIM McDERMOTT, Washington

LYNN RIVERS, Michigan

BENNIE G. THOMPSON, Mississippi

DAVID MINGE, Minnesota

KEN BENTSEN, Texas

JIM DAVIS, Florida

ROBERT A. WEYGAND, Rhode Island

EVA M. CLAYTON, North Carolina

DAVID E. PRICE, North Carolina

EDWARD J. MARKEY, Massachusetts

GERALD D. KLECZKA, Wisconsin

BOB CLEMENT, Tennessee

JAMES P. MORAN, Virginia

DARLENE HOOLEY, Oregon

KEN LUCAS, Kentucky

RUSH D. HOLT, New Jersey

JOSEPH M. HOEFFEL, Pennsylvania

TAMMY BALDWIN, Wisconsin

WAYNE STRUBLE, Staff Director

TOM KAHN, Minority Chief of Staff

Prepared by

AMY ROLAND, House Budget Committee and

ROBERT F. WEINHAGEN, Office of the Legislative Counsel

(II)

(iii)

INTRODUCTION

This publication contains a compilation of laws that significantly affect the congressional budget process, as amended through

July 16, 1999. Included are:

Congressional Budget and Impoundment Control Act of

1974.

Balanced Budget and Emergency Deficit Control Act of

1985.

Freestanding provisions of Budget Enforcement Act of

1990.

Selected provisions of chapter 11 of title 31, United States

Code, governing submission of President’s budget.

Certain sections of H. Res. 6 (104th Congress) and H. Res.

5 (106th Congress).

Certain sections of H. Con. Res. 68 (106th Congress).

The Congressional Budget and Impoundment Control Act of

1974 (Public Law 93–344; 2 U.S.C. 621 et seq.) is the primary law

governing the congressional budget process. It establishes the procedures by which Congress first determines and then enforces the

levels of budgetary resources within which legislative policies will

be carried out. The most significant amendments to that Act were

made by the Balanced Budget and Emergency Deficit Control Act

of 1985, the Budget Enforcement Act of 1990, the Unfunded Mandates Reform Act of 1995, and the Line Item Veto Act.

The Balanced Budget and Emergency Deficit Control Act of

1985 (BBEDCA), popularly known as Gramm-Rudman-Hollings,

was enacted as part C of title II of Public Law 99–177 (2 U.S.C.

900 et seq.). It established sequestration procedures to automatically reduce budgetary resources available to Federal programs if

projected spending exceeds a determined amount. The most significant amendments to BBEDCA were made by the Balanced Budget

and Emergency Deficit Control Reaffirmation Act of 1987 and the

Budget Enforcement Act of 1990.

The Budget Enforcement Act of 1990 was enacted as title XIII

of the Omnibus Budget Reconciliation Act of 1990 (Public Law 101–

508). Subtitle A, part II, and subtitle B amended the Congressional

Budget Act of 1974 by, among other things, requiring budget resolutions to cover five fiscal years and establishing discretionary

spending limits (or caps). Subtitle A, part I, amended the Balanced

Budget and Emergency Deficit Control Act of 1985 to establish payas-you-go requirements for legislation affecting direct spending programs or revenues and limits on discretionary spending. Both the

pay-as-you-go requirements and the discretionary spending limits

iv

are separately enforced by sequestration. Subtitle C contains provisions concerning social security.

Title X of the Balanced Budget Act of 1997 implemented the

budget process provisions of the Bipartisan Budget Agreement. In

addition to extending the pay-as-you-go requirements and the discretionary spending limits of the Balanced Budget and Emergency

Deficit Control Act of 1985 for four fiscal years, it made numerous

technical and conforming changes to that Act and the Congressional Budget Act of 1974.

Title 31 of the United States Code (Money and Finance) was

enacted into positive law on September 13, 1982. Chapter 11 of

that title sets forth the submission requirements for the President’s

budget.

v

C O N T E N T S

Page

Congressional Budget and Impoundment Control Act of 1974

Sec. 1. Short titles; table of contents .............................................................. 3

Sec. 2. Declaration of purposes ........................................................................ 5

Sec. 3. Definitions ............................................................................................. 5

Title II—Congressional Budget Office ............................................................ 7

Title III—Congressional Budget Process ........................................................ 13

Title IV—Additional Provisions to Improve Fiscal Procedures .................... 38

Part A—General Provisions ...................................................................... 38

Part B—Federal Mandates ....................................................................... 40

Title V—Credit Reform .................................................................................... 51

Title VII—Program Review and Evaluation .................................................. 58

Title IX—Miscellaneous Provisions; Effective Dates ..................................... 59

Title X—Impoundment Control ....................................................................... 60

Part A—General Provisions ...................................................................... 60

Part B—Congressional Consideration of Proposed Rescissions,

Reservations, and Deferrals of Budget Authority ............................... 60

Part C—Line Item Veto ............................................................................ 67

Balanced Budget and Emergency Deficit Control Act of 1985 (GrammRudman-Hollings)

Sec. 250. Table of contents; budget enforcement statement; definitions ..... 83

Sec. 251. Enforcing discretionary spending limits ......................................... 86

Sec. 252. Enforcing pay-as-you-go ................................................................... 93

Sec. 253. Enforcing deficit targets ................................................................... 95

Sec. 254. Reports and orders ........................................................................... 98

Sec. 255. Exempt programs and activities ..................................................... 101

Sec. 256. General and special sequestration rules ......................................... 107

Sec. 257. The baseline ...................................................................................... 113

Sec. 258. Suspension in the event of war or low growth ............................... 115

Sec. 258A. Modification of Presidential order ................................................ 117

Sec. 258B. Flexibility among defense programs, projects, and activities ..... 119

Sec. 258C. Special reconciliation process ........................................................ 122

Sec. 274. Judicial review .................................................................................. 124

Sec. 275. Effective date .................................................................................... 126

Freestanding Provisions of Subtitles C and E of the Budget Enforcement Act of 1990

Sec. 13301. Off-budget status of OASDI trust funds ..................................... 129

Sec. 13302. Protection of OASDI trust funds in the House of Representatives ................................................................................................................ 129

Sec. 13305. Exercise of rulemaking power ..................................................... 131

Sec. 13306. Effective date ................................................................................ 131

Sec. 13501. Financial safety and soundness of government-sponsored

enterprises. .................................................................................................... 131

Selected Provisions of Chapter 11 of Title 31, United States Code

§ 1105. Budget contents and submission to Congress ................................... 135

§ 1106. Supplemental budget estimates and changes .................................... 140

§ 1109. Current programs and activities estimates ....................................... 141

Page

vi

Selected Budgetary Procedures Set Forth in H. Con. Res. 68 (106th

Congress)

Sec. 207. Pay-as-you-go point of order in the Senate .................................... 145

Selected Budgetary Procedures Set Forth in H. Con. Res. 290 (106th

Congress)

Sec. 201. Lock-box for social security surpluses ............................................ 149

Sec. 205. Emergency designation point of order in the Senate .................... 150

Selected Provisions of the Unfunded Mandates Reform Act of 1995

Sec. 103. Cost of regulations ............................................................................ 155

Sec. 105. Consideration for Federal funding .................................................. 155

Sec. 106. Impact on local governments ........................................................... 155

Sec. 107. Enforcement in the House of Representatives ............................... 156

Sec. 201. Regulatory process ............................................................................ 157

Sec. 202. Statements to accompany significant regulatory actions .............. 157

Sec. 203. Small government agency plan ....................................................... 158

Sec. 204. State, local, and tribal government input ...................................... 158

Sec. 205. Least burdensome option or explanation required ........................ 159

Sec. 206. Assistance to the Congressional Budget Office .............................. 159

Sec. 207. Pilot program on small government flexibility .............................. 159

Sec. 208. Annual statements to Congress on agency compliance ................. 160

Sec. 209. Effective date .................................................................................... 160

Sec. 304. Annual report to Congress regarding Federal court rulings ........ 160

Sec. 305. Definition ........................................................................................... 160

Sec. 401. Judicial review .................................................................................. 160

House Rules Relating to Budgetary Requirements

Rule X:

Clause 2(d)(1). Budget Act responsibilities of each standing

committee ............................................................................................... 165

Clause 4(f). Views and estimates of each standing committee for

the concurrent resolution ...................................................................... 165

Clause 11(c)(3). Views and estimates of Permanent Select Committee

on Intelligence ........................................................................................ 166

Rule XIII:

Clause 3(c)(2) and (3). Budget requirements in committee reports ...... 166

Clause 3(d). Committee cost estimates and budgetary comparisons .... 167

Clause 3(h)(2) and (3). Dynamic estimates for revenue bills ................. 167

Rule XVIII:

Clause 10. Amendments to the concurrent resolution on the budget ... 168

Rule XXI:

Clause 2(e). Nonemergency provisions may not be designated

emergency ............................................................................................... 168

Rule XXIII: Statutory limit on the public debt .............................................. 168

Jurisdictions of the House and Senate Budget Committees

Jurisdiction of House Budget Committee ....................................................... 173

Jurisdiction of Senate Budget Committee ...................................................... 175

1

CONGRESSIONAL BUDGET AND IMPOUNDMENT

CONTROL ACT OF 1974

Public Law 93–344, July 12, 1974, 88 Stat. 297

Major Amendments:

Balanced Budget and Emergency Deficit Control Act of 1985;

Public Law 99–177, Title II, Part A; December 12, 1985; 99

Stat. 1037, 1039.

An Act increasing the statutory limit on the public debt; Public

Law 100–119, Title II; September 29, 1987; 101 Stat. 754, 784.

Budget Enforcement Act of 1990; Public Law 101–508, Title XIII,

Subtitle A, Part II, and Subtitle B; November 5, 1990; 104

Stat. 1388–573, 1388–602, 1388–609.

Omnibus Budget Reconciliation Act of 1993; Public Law 103–66,

Title XIV; August 10, 1993; 107 Stat. 312, 683.

Violent Crime Control and Law Enforcement Act of 1994; Public

Law 103–322, Title XXXI; September 13, 1994; 108 Stat. 1796,

2102.

Unfunded Mandates Reform Act of 1995; Public Law 104–4, Title

I; March 22, 1995; 109 Stat. 50.

Contract with America Advancement Act of 1996; Public Law 104–

121, 110 Stat. 847.

Line Item Veto Act; Public Law 104–130; April 9, 1996; 110 Stat.

1200.

Balanced Budget Act of 1997; Public Law 105–33; August 5, 1997;

111 Stat. 251.

2

Transportation Equity Act for the 21st Century; Public Law 105–

178; June 9, 1998; 112 Stat. 488.

TEA 21 Restortation Act; Public Law 105–206; July 22, 1998; 115

Stat. 865.

3

1This part was declared unconstitutional by the United States Supreme Court. Please see

note on page 67.

AN ACT To establish a new congressional budget process; to establish Committees

on the Budget in each House; to establish a Congressional Budget Office; to establish a procedure providing congressional control over the impoundment of funds

by the executive branch; and for other purposes.

Be it enacted by the Senate and House of Representatives of the

United States of America in Congress assembled,

SHORT TITLES; TABLE OF CONTENTS

SECTION 1. ø2 U.S.C. 621 note¿ (a) SHORT TITLES.—This Act

may be cited as the ‘‘Congressional Budget and Impoundment Control Act of 1974’’. Titles I through IX may be cited as the ‘‘Congressional Budget Act of 1974’’. Parts A and B of title X may be cited

as the ‘‘Impoundment Control Act of 1974’’. Part C of title X may

be cited as the ‘‘Line Item Veto Act of 1996’’. 1

(b) TABLE OF CONTENTS.—

Sec. 1. Short titles; table of contents.

Sec. 2. Declaration of purposes.

Sec. 3. Definitions.

* * * * * * *

TITLE II—CONGRESSIONAL BUDGET OFFICE

Sec. 201. Establishment of Office.

Sec. 202. Duties and functions.

Sec. 203. Public access to budget data.

TITLE III—CONGRESSIONAL BUDGET PROCESS

Sec. 300. Timetable.

Sec. 301. Annual adoption of concurrent resolution on the budget.

Sec. 302. Committee allocations.

Sec. 303. Concurrent resolution on the budget must be adopted before budgetrelated legislation is considered.

Sec. 304. Permissible revisions of concurrent resolutions on the budget.

Sec. 305. Prvisions relating to consideration of concurrent resolutions on the

budget.

Sec. 306. Legislation dealing with congressional budget must be handled by budget

committees.

Sec. 307. House committee action on all appropriation bills to be completed by June

10.

Sec. 308. Reports, summaries, and projections of congressional budget actions.

Sec. 309. House approval of regular appropriation bills.

Sec. 310. Reconciliation.

Sec. 311. Budget-related legislation must be within appropriate levels.

Sec. 312. Determinations and points of order.

Sec. 313. Extraneous matter in reconciliation legislation.

Sec. 314. Adjustments.

Sec. 315. Effect of adoption of a special order of business in the House of

Representatives.

Sec. 1 CONGRESSIONAL BUDGET ACT OF 1974 4

TITLE IV—ADDITIONAL PROVISIONS TO IMPROVE FISCAL PROCEDURES

PART A—GENERAL PROVISIONS

Sec. 401. Budget-related legislation not subject to appropriations.

Sec. 402. Analyses by Congressional Budget Office.

* * * * * * *

Sec. 404. Study by the General Accounting Office of forms of Federal financial

commitment that are not reviewed annually by Congress.

Sec. 405. Off-budget agencies, programs, and activities.

Sec. 406. Member user group.

PART B—FEDERAL MANDATES

Sec. 421. Definitions.

Sec. 422. Exclusions.

Sec. 423. Duties of congressional committees.

Sec. 424. Duties of the Director; statements on bills and joint resolutions other

than appropriations bills and joint resolutions.

Sec. 425. Legislation subject to point of order.

Sec. 426. Provisions relating to the House of Representatives.

Sec. 427. Requests to the Congressional Budget Office from Senators.

Sec. 428. Clarification of application.

TITLE V—CREDIT REFORM

Sec. 500. Short title.

Sec. 501. Purposes.

Sec. 502. Definitions.

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

Sec. 504. Budgetary treatment.

Sec. 505. Authorizations.

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

programs.

Sec. 507. Effect on other laws.

øTITLE VI—REPEALED¿

TITLE VII—PROGRAM REVIEW AND EVALUATION

* * * * * * *

Sec. 703. Continuing study of additional budget reform proposals.

* * * * * * *

TITLE IX—MISCELLANEOUS PROVISIONS; EFFECTIVE DATES

* * * * * * *

Sec. 904. Exercise of rulemaking powers.

* * * * * * *

TITLE X—IMPOUNDMENT CONTROL

PART A—GENERAL PROVISIONS

Sec. 1001. Disclaimer.

* * * * * * *

PART B—CONGRESSIONAL CONSIDERATION OF PROPOSED RESCISSIONS,

RESERVATIONS, AND DEFERRALS OF BUDGET AUTHORITY

Sec. 1011. Definitions.

Sec. 1012. Rescission of budget authority.

Sec. 1013. Proposed deferrals of budget authority.

Sec. 1014. Transmission of messages; publication.

Sec. 1015. Reports by Comptroller General.

Sec. 1016. Suits by Comptroller General.

Sec. 1017. Procedure in House and Senate.

5 Sec. 3 CONGRESSIONAL BUDGET ACT OF 1974

1This part was declared unconstitutional by the United States Supreme Court. Please see

note on page 67.

PART C—LINE ITEM VETO 1

Sec. 1021. Line item veto authority.

Sec. 1022. Special messages.

Sec. 1023. Cancellation effective unless disapproved.

Sec. 1024. Deficit reduction.

Sec. 1025. Expedited congressional consideration of disapproval bills.

Sec. 1026. Definitions.

Sec. 1027. Identification of limited tax benefits.

DECLARATION OF PURPOSES

SEC. 2. ø2 U.S.C. 621¿ The Congress declares that it is essential—

(1) to assure effective congressional control over the budgetary process;

(2) to provide for the congressional determination each

year of the appropriate level of Federal revenues and expenditures;

(3) to provide a system of impoundment control;

(4) to establish national budget priorities; and

(5) to provide for the furnishing of information by the executive branch in a manner that will assist the Congress in discharging its duties.

DEFINITIONS

SEC. 3. ø2 U.S.C. 622¿ IN GENERAL.—For purposes of this

Act—

(1) The terms ‘‘budget outlays’’ and ‘‘outlays’’ mean, with

respect to any fiscal year, expenditures and net lending of

funds under budget authority during such year.

(2) BUDGET AUTHORITY AND NEW BUDGET AUTHORITY.—

(A) IN GENERAL.—The term ‘‘budget authority’’ means

the authority provided by Federal law to incur financial

obligations, as follows:

(i) provisions of law that make funds available for

obligation and expenditure (other than borrowing authority), including the authority to obligate and expend the proceeds of offsetting receipts and collections;

(ii) borrowing authority, which means authority

granted to a Federal entity to borrow and obligate and

expend the borrowed funds, including through the

issuance of promissory notes or other monetary credits;

(iii) contract authority, which means the making

of funds available for obligation but not for expenditure; and

(iv) offsetting receipts and collections as negative

budget authority, and the reduction thereof as positive

budget authority.

(B) LIMITATIONS ON BUDGET AUTHORITY.—With respect

to the Federal Hospital Insurance Trust Fund, the Supplementary Medical Insurance Trust Fund, the Unemployment Trust Fund, and the railroad retirement account,

Sec. 3 CONGRESSIONAL BUDGET ACT OF 1974 6

any amount that is precluded from obligation in a fiscal

year by a provision of law (such as a limitation or a benefit

formula) shall not be budget authority in that year.

(C) NEW BUDGET AUTHORITY.—The term ‘‘new budget

authority’’ means, with respect to a fiscal year—

(i) budget authority that first becomes available

for obligation in that year, including budget authority

that becomes available in that year as a result of a reappropriation; or

(ii) a change in any account in the availability of

unobligated balances of budget authority carried over

from a prior year, resulting from a provision of law

first effective in that year;

and includes a change in the estimated level of new budget

authority provided in indefinite amounts by existing law.

(3) The term ‘‘tax expenditures’’ means those revenue

losses attributable to provisions of the Federal tax laws which

allow a special exclusion, exemption, or deduction from gross

income or which provide a special credit, a preferential rate of

tax, or a deferral of tax liability, and the term ‘‘tax expenditures budget’’ means an enumeration of such tax expenditures.

(4) The term ‘‘concurrent resolution on the budget’’

means—

(A) a concurrent resolution setting forth the congressional budget for the United States Government for a fiscal year as provided in section 301; and

(B) any other concurrent resolution revising the congressional budget for the United States Government for a

fiscal year as described in section 304.

(5) The term ‘‘appropriation Act’’ means an Act referred to

in section 105 of title 1, United States Code.

(6) The term ‘‘deficit’’ means, with respect to a fiscal year,

the amount by which outlays exceeds receipts during that year.

(7) The term ‘‘surplus’’ means, with respect to a fiscal year,

the amount by which receipts exceeds outlays during that year.

(8) The term ‘‘government-sponsored enterprise’’ means a corporate entity created by a law of the United States that—

(A)(i) has a Federal charter authorized by law;

(ii) is privately owned, as evidenced by capital stock owned

by private entities or individuals;

(iii) is under the direction of a board of directors, a majority of which is elected by private owners;

(iv) is a financial institution with power to—

(I) make loans or loan guarantees for limited purposes

such as to provide credit for specific borrowers or one sector; and

(II) raise funds by borrowing (which does not carry the

full faith and credit of the Federal Government) or to guarantee the debt of others in unlimited amounts; and

(B)(i) does not exercise powers that are reserved to the

Government as sovereign (such as the power to tax or to regulate interstate commerce);

7 Sec. 201 CONGRESSIONAL BUDGET ACT OF 1974

(ii) does not have the power to commit the Government financially (but it may be a recipient of a loan guarantee commitment made by the Government); and

(iii) has employees whose salaries and expenses are paid

by the enterprise and are not Federal employees subject to title

5 of the United States Code.

(9) The term ‘‘entitlement authority’’ means—

(A) the authority to make payments (including loans

and grants), the budget authority for which is not provided

for in advance by appropriation Acts, to any person or government if, under the provisions of the law containing that

authority, the United States is obligated to make such

payments to persons or governments who meet the requirements established by that law; and

(B) the food stamp program.

(10) The term ‘‘credit authority’’ means authority to incur

direct loan obligations or to incur primary loan guarantee commitments.

* * * * * * *

TITLE II—CONGRESSIONAL BUDGET OFFICE

ESTABLISHMENT OF OFFICE

SEC. 201. ø2 U.S.C. 601¿ (a) IN GENERAL.—

(1) There is established an office of the Congress to be

known as the Congressional Budget Office (hereinafter in this

title referred to as the ‘‘Office’’). The Office shall be headed by

a Director; and there shall be a Deputy Director who shall perform such duties as may be assigned to him by the Director

and, during the absence or incapacity of the Director or during

a vacancy in that office, shall act as Director.

(2) The Director shall be appointed by the Speaker of the

House of Representatives and the President pro tempore of the

Senate after considering recommendations received from the

Committees on the Budget of the House and the Senate, without regard to political affiliation and solely on the basis of his

fitness to perform his duties. The Deputy Director shall be appointed by the Director.

(3) The term of office of the Director shall be 4 years and

shall expire on January 3 of the year preceding each Presidential election. Any individual appointed as Director to fill a

vacancy prior to the expiration of a term shall serve only for

the unexpired portion of that term. An individual serving as

Director at the expiration of a term may continue to serve until

his successor is appointed. Any Deputy Director shall serve

until the expiration of the term of office of the Director who appointed him (and until his successor is appointed), unless sooner removed by the Director.

(4) The Director may be removed by either House by resolution.

(5)(A) The Director shall receive compensation at an annual rate of pay that is equal to the lower of—

Sec. 201 CONGRESSIONAL BUDGET ACT OF 1974 8

(i) the highest annual rate of compensation of any officer of the Senate; or

(ii) the highest annual rate of compensation of any officer of the House of Representatives.

(B) The Deputy Director shall receive compensation at an annual rate of pay that is $1,000 less than the annual rate of

pay received by the Director, as determined under subparagraph (A).

(b) PERSONNEL.—The Director shall appoint and fix the compensation of such personnel as may be necessary to carry out the

duties and functions of the Office. All personnel of the Office shall

be appointed without regard to political affiliation and solely on the

basis of their fitness to perform their duties. The Director may prescribe the duties and responsibilities of the personnel of the Office,

and delegate to them authority to perform any of the duties, powers, and functions imposed on the Office or on the Director. For

purposes of pay (other than pay of the Director and Deputy Director) and employment benefits, rights, and privileges, all personnel

of the Office shall be treated as if they were employees of the

House of Representatives.

(c) EXPERTS AND CONSULTANTS.—In carrying out the duties

and functions of the Office, the Director may procure the temporary

(not to exceed one year) or intermittent services of experts or consultants or organizations thereof by contract as independent contractors, or, in the case of individual experts or consultants, by employment at rates of pay not in excess of the daily equivalent of the

highest rate of basic pay payable under the General Schedule of

section 5332 of title 5, United States Code.

(d) RELATIONSHIP TO EXECUTIVE BRANCH.—The Director is authorized to secure information, data, estimates, and statistics directly from the various departments, agencies, and establishments

of the executive branch of Government and the regulatory agencies

and commissions of the Government. All such departments, agencies, establishments, and regulatory agencies and commissions

shall furnish the Director any available material which he determines to be necessary in the performance of his duties and functions (other than material the disclosure of which would be a violation of law). The Director is also authorized, upon agreement with

the head of any such department, agency, establishment, or regulatory agency or commission, to utilize its services, facilities, and

personnel with or without reimbursement; and the head of each

such department, agency, establishment, or regulatory agency or

commission is authorized to provide the Office such services, facilities, and personnel.

(e) RELATIONSHIP TO OTHER AGENCIES OF CONGRESS.—In carrying out the duties and functions of the Office, and for the purpose

of coordinating the operations of the Office with those of other congressional agencies with a view to utilizing most effectively the information, services, and capabilities of all such agencies in carrying

out the various responsibilities assigned to each, the Director is authorized to obtain information, data, estimates, and statistics developed by the General Accounting Office, and the Library of Congress, and (upon agreement with them) to utilize their services, facilities, and personnel with or without reimbursement. The CompVerDate 11-SEP-98 15:16 May 02, 2000 Jkt 000000 PO 00000 Frm 00008 Fmt 9001 Sfmt 9001 H:\DOCS\CP4COM~1\53587.TXT HBUDGET1 PsN: HBUDGET1
9 Sec. 202 CONGRESSIONAL BUDGET ACT OF 1974

troller General, and the Librarian of Congress are authorized to

provide the Office with the information, data, estimates, and statistics, and the services, facilities, and personnel, referred to in the

preceding sentence.

(f) REVENUE ESTIMATES.—For the purposes of revenue legislation which is income, estate and gift, excise, and payroll taxes (i.e.,

Social Security), considered or enacted in any session of Congress,

the Congressional Budget Office shall use exclusively during that

session of Congress revenue estimates provided to it by the Joint

Committee on Taxation. During that session of Congress such revenue estimates shall be transmitted by the Congressional Budget

Office to any committee of the House of Representatives or the Senate requesting such estimates, and shall be used by such Committees in determining such estimates. The Budget Committees of the

Senate and House shall determine all estimates with respect to

scoring points of order and with respect to the execution of the purposes of this Act.

(g) APPROPRIATIONS.—There are authorized to be appropriated

to the Office for each fiscal year such sums as may be necessary

to enable it to carry out its duties and functions. Until sums are

first appropriated pursuant to the preceding sentence, but for a period not exceeding 12 months following the effective date of this

subsection, the expenses of the Office shall be paid from the contingent fund of the Senate, in accordance with the paragraph relating

to the contingent fund of the Senate under the heading ‘‘UNDER

LEGISLATIVE’’ in the Act of October 1, 1888 (28 Stat. 546; 2

U.S.C. 68), and upon vouchers approved by the Director.

DUTIES AND FUNCTIONS

SEC. 202. ø2 U.S.C. 602¿ (a) ASSISTANCE TO BUDGET COMMIT- TEES.—It shall be the primary duty and function of the Office to

provide to the Committees on the Budget of both Houses information which will assist such committees in the discharge of all matters within their jurisdictions, including (1) information with respect to the budget, appropriation bills, and other bills authorizing

or providing new budget authority or tax expenditures, (2) information with respect to revenues, receipts, estimated future revenues

and receipts, and changing revenue conditions, and (3) such related

information as such Committees may request.

(b) ASSISTANCE TO COMMITTEES ON APPROPRIATIONS, WAYS AND

MEANS, AND FINANCE.—At the request of the Committee on Appropriations of either House, the Committee on Ways and Means of

the House of Representatives, or the Committee on Finance of the

Senate, the Office shall provide to such Committee any information

which will assist it in the discharge of matters within its jurisdiction, including information described in clauses (1) and (2) of subsection (a) and such related information as the Committee may request.

(c) ASSISTANCE TO OTHER COMMITTEES AND MEMBERS.—

(1) At the request of any other committee of the House of

Representatives or the Senate or any joint committee of the

Congress, the Office shall provide to such committee or joint

committee any information compiled in carrying out clauses (1)

and (2) of subsection (a), and, to the extent practicable, such

Sec. 202 CONGRESSIONAL BUDGET ACT OF 1974 10

additional information related to the foregoing as may be requested.

(2) At the request of any committee of the Senate or the

House of Representatives, the Office shall, to the extent practicable, consult with and assist such committee in analyzing

the budgetary or financial impact of any proposed legislation

that may have—

(A) a significant budgetary impact on State, local, or

tribal governments;

(B) a significant financial impact on the private sector;

or

(C) a significant employment impact on the private

sector.

(3) At the request of any Member of the House or Senate,

the Office shall provide to such member any information compiled in carrying out clauses (1) and (2) of subsection (a), and,

to the extent available, such additional information related to

the foregoing as may be requested.

(d) ASSIGNMENT OF OFFICE PERSONNEL TO COMMITTEES AND

JOINT COMMITTEES.—At the request of the Committee on the Budget of either House, personnel of the Office shall be assigned, on a

temporary basis, to assist such committee. At the request of any

other committee of either House or any joint committee of the Congress, personnel of the Office may be assigned, on a temporary

basis, to assist such committee or joint committee with respect to

matters directly related to the applicable provisions of subsection

(b) or (c).

(e) REPORTS TO BUDGET COMMITTEES.—

(1) On or before February 15 of each year, the Director

shall submit to the Committees on the Budget of the House of

Representatives and the Senate, a report for the fiscal year

commencing on October 1 of that year, with respect to fiscal

policy, including (A) alternative levels of total revenues, total

new budget authority, and total outlays (including related surpluses and deficits), (B) the levels of tax expenditures under

existing law, taking into account projected economic factors

and any changes in such levels based on proposals in the budget submitted by the President for such fiscal year, and (C) a

statement of the levels of budget authority and outlays for each

program assumed to be extended in the baseline, as provided

in section 257(b)(2)(A) and for excise taxes assumed to be extended under section 257(b)(2)(C) of the Balanced Budget and

Emergency Deficit Control Act of 1985. Such report shall also

include a discussion of national budget priorities, including alternative ways of allocating new budget authority and budget

outlays for such fiscal year among major programs or functional categories, taking into account how such alternative allocations will meet major national needs and affect balanced

growth and development of the United States.

(2) The Director shall from time to time submit to the

Committees on the Budget of the House of Representatives and

the Senate such further reports (including reports revising the

report required by paragraph (1)) as may be necessary or apVerDate 11-SEP-98 15:16 May 02, 2000 Jkt 000000 PO 00000 Frm 00010 Fmt 9001 Sfmt 9001 H:\DOCS\CP4COM~1\53587.TXT HBUDGET1 PsN: HBUDGET1
11 Sec. 202 CONGRESSIONAL BUDGET ACT OF 1974

propriate to provide such Committees with information, data,

and analyses for the performance of their duties and functions.

(3) On or before January 15 of each year, the Director,

after consultation with the appropriate committees of the

House of Representatives and Senate, shall submit to the Congress a report listing (A) all programs and activities funded

during the fiscal year ending September 30 of that calendar

year for which authorizations for appropriations have not been

enacted for that fiscal year, and (B) all programs and activities

for which authorizations for appropriations have been enacted

for the fiscal year ending September 30 of that calendar year,

but for which no authorizations for appropriations have been

enacted for the fiscal year beginning October 1 of that calendar

year.

(f) USE OF COMPUTERS AND OTHER TECHNIQUES.—The Director

may equip the Office with up-to-date computer capability (upon approval of the Committee on House Oversight of the House of Representatives and the Committee on Rules and Administration of

the Senate), obtain the services of experts and consultants in computer technology, and develop techniques for the evaluation of

budgetary requirements.

(g) STUDIES.— (1) CONTINUING STUDIES.—The Director of the Congressional Budget Office shall conduct continuing studies to enhance comparisons of budget outlays, credit authority, and tax

expenditures.

(2) FEDERAL MANDATE STUDIES.— (A) At the request of any Chairman or ranking member of the minority of a Committee of the Senate or the

House of Representatives, the Director shall, to the extent

practicable, conduct a study of a legislative proposal containing a Federal mandate.

(B) In conducting a study on intergovernmental mandates under subparagraph (A), the Director shall—

(i) solicit and consider information or comments

from elected officials (including their designated representatives) of State, local, or tribal governments as

may provide helpful information or comments;

(ii) consider establishing advisory panels of elected

officials or their designated representatives, of State,

local, or tribal governments if the Director determines

that such advisory panels would be helpful in performing responsibilities of the Director under this section;

and

(iii) if, and to the extent that the Director determines that accurate estimates are reasonably feasible,

include estimates of—

(I) the future direct cost of the Federal mandate to the extent that such costs significantly differ from or extend beyond the 5-year period after

the mandate is first effective; and

(II) any disproportionate budgetary effects of

Federal mandates upon particular industries or

sectors of the economy, States, regions, and urban

Sec. 203 CONGRESSIONAL BUDGET ACT OF 1974 12

or rural or other types of communities, as appropriate.

(C) In conducting a study on private sector mandates

under subparagraph (A), the Director shall provide estimates, if and to the extent that the Director determines

that such estimates are reasonably feasible, of—

(i) future costs of Federal private sector mandates

to the extent that such mandates differ significantly

from or extend beyond the 5-year time period referred

to in subparagraph (B)(iii)(I);

(ii) any disproportionate financial effects of Federal private sector mandates and of any Federal financial assistance in the bill or joint resolution upon any

particular industries or sectors of the economy, States,

regions, and urban or rural or other types of communities; and

(iii) the effect of Federal private sector mandates

in the bill or joint resolution on the national economy,

including the effect on productivity, economic growth,

full employment, creation of productive jobs, and international competitiveness of United States goods and

services.

PUBLIC ACCESS TO BUDGET DATA

SEC. 203. ø2 U.S.C. 603¿ (a) RIGHT TO COPY.—Except as provided in subsections (c) and (d), the Director shall make all information, data, estimates, and statistics obtained under sections

201(d) and 201(e) available for public copying during normal business hours, subject to reasonable rules and regulations, and shall

to the extent practicable, at the request of any person, furnish a

copy of any such information, data, estimates, or statistics upon

payment by such person of the cost of making and furnishing such

copy.

(b) INDEX.—The Director shall develop and maintain filing,

coding, and indexing systems that identify the information, data,

estimates, and statistics to which subsection (a) applies and shall

make such systems available for public use during normal business

hours.

(c) EXCEPTIONS.—Subsection (a) shall not apply to information,

data, estimates, and statistics—

(1) which are specifically exempted from disclosure by law;

or

(2) which the Director determines will disclose—

(A) matters necessary to be kept secret in the interests

of national defense or the confidential conduct of the foreign relations of the United States;

(B) information relating to trade secrets or financial or

commercial information pertaining specifically to a given

person if the information has been obtained by the Government on a confidential basis, other than through an application by such person for a specific financial or other benefit, and is required to be kept secret in order to prevent

undue injury to the competitive position of such person; or

13 Sec. 301 CONGRESSIONAL BUDGET ACT OF 1974

1Most points of order under this title may be waived or suspended in the Senate only by the

affirmative vote of three-fifths of the Members duly chosen or sworn. See sec. 904(c) for details. 2See clause 10(b) of rule XVIII and rule XXII of the Rules of the House of Representatives.

(C) personnel or medical data or similar data the disclosure of which would constitute a clearly unwarranted

invasion of personal privacy;

unless the portions containing such matters, information, or

data have been excised.

(d) INFORMATION OBTAINED FOR COMMITTEES AND MEMBERS.— Subsection (a) shall apply to any information, data, estimates, and

statistics obtained at the request of any committee, joint committee, or Member unless such committee, joint committee, or Member

has instructed the Director not to make such information, data, estimates, or statistics available for public copying.

TITLE III—CONGRESSIONAL BUDGET PROCESS 1

TIMETABLE

SEC. 300. ø2 U.S.C. 631¿ The timetable with respect to the

congressional 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 concurrent resolution on the budget.

April 15 ................................................. Congress completes action on concurrent resolution on the budget.

May 15 ................................................... Annual appropriation bills may be considered in the House.

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.

ANNUAL ADOPTION OF CONCURRENT RESOLUTION ON THE BUDGET

SEC. 301. ø2 U.S.C. 632¿ (a) 2 CONTENT OF CONCURRENT RESO- LUTION ON THE BUDGET.—On or before April 15 of each year, the

Congress shall complete action on a concurrent resolution on the

budget for the fiscal year beginning on October 1 of such year. The

concurrent resolution shall set forth appropriate levels for the fiscal

year beginning on October 1 of such year and for at least each of

the 4 ensuing fiscal years for the following—

(1) totals of new budget authority and outlays;

(2) total Federal revenues and the amount, if any, by

which the aggregate level of Federal revenues should be increased or decreased by bills and resolutions to be reported by

the appropriate committees;

(3) the surplus or deficit in the budget;

(4) new budget authority and outlays for each major functional category, based on allocations of the total levels set forth

pursuant to paragraph (1);

Sec. 301 CONGRESSIONAL BUDGET ACT OF 1974 14

1So in original. Probably should not be capitalized.

2So in original. Probably should be ‘‘old-age’’.

(5) the public debt;

(6) For 1 purposes of Senate enforcement under this title,

outlays of the old-age, survivors, and disability insurance program established under title II of the Social Security Act for

the fiscal year of the resolution and for each of the 4 succeeding fiscal years; and

(7) For 1 purposes of Senate enforcement under this title,

revenues of the old-age, survivors, and disability insurance program established under title II of the Social Security Act (and

the related provisions of the Internal Revenue Code of 1986)

for the fiscal year of the resolution and for each of the 4 succeeding fiscal years.

The concurrent resolution shall not include the outlays and revenue totals of the old age, 2 survivors, and disability insurance program established under title II of the Social Security Act or the related provisions of the Internal Revenue Code of 1986 in the surplus or deficit totals required by this subsection or in any other

surplus or deficit totals required by this title.

(b) ADDITIONAL MATTERS IN CONCURRENT RESOLUTION.—The

concurrent resolution on the budget may—

(1) set forth, if required by subsection (f), the calendar year

in which, in the opinion of the Congress, the goals for reducing

unemployment set forth in section 4(b) of the Employment Act

of 1946 should be achieved;

(2) include reconciliation directives described in section

310;

(3) require a procedure under which all or certain bills or

resolutions providing new budget authority or new entitlement

authority for such fiscal year shall not be enrolled until the

Congress has completed action on any reconciliation bill or reconciliation resolution or both required by such concurrent resolution to be reported in accordance with section 310(b);

(4) set forth such other matters, and require such other

procedures, relating to the budget, as may be appropriate to

carry out the purposes of this Act;

(5) include a heading entitled ‘‘Debt Increase as Measure

of Deficit’’ in which the concurrent resolution shall set forth

the amounts by which the debt subject to limit (in section 3101

of title 31 of the United States Code) has increased or would

increase in each of the relevant fiscal years;

(6) include a heading entitled ‘‘Display of Federal Retirement Trust Fund Balances’’ in which the concurrent resolution

shall set forth the balances of the Federal retirement trust

funds;

(7) set forth procedures in the Senate whereby committee

allocations, aggregates, and other levels can be revised for legislation if that legislation would not increase the deficit, or

would not increase the deficit when taken with other legislation enacted after the adoption of the resolution, for the first

fiscal year or the total period of fiscal years covered by the resolution;

15 Sec. 301 CONGRESSIONAL BUDGET ACT OF 1974

1See clauses 4(f) and 11(c)(3) of rule X of the Rules of the House of Representatives.

(8) set forth procedures to effectuate pay-as-you-go in the

House of Representatives; and

(9) set forth direct loan obligation and primary loan guarantee commitment levels.

(c) CONSIDERATION OF PROCEDURES OR MATTERS WHICH HAVE

THE EFFECT OF CHANGING ANY RULE OF THE HOUSE OF REPRESENT- ATIVES.—If the Committee on the Budget of the House of Representatives reports any concurrent resolution on the budget which

includes any procedure or matter which has the effect of changing

any rule of the House of Representatives, such concurrent resolution shall then be referred to the Committee on Rules with instructions to report it within five calendar days (not counting any day

on which the House is not in session). The Committee on Rules

shall have jurisdiction to report any concurrent resolution referred

to it under this paragraph with an amendment or amendments

changing or striking out any such procedure or matter.

(d) 1 VIEWS AND ESTIMATES OF OTHER COMMITTEES.—Within 6

weeks after the President submits a budget under section 1105(a)

of title 31, United States Code, or at such time as may be requested by the Committee on the Budget, each committee of the

House of Representatives having legislative jurisdiction shall submit to the Committee on the Budget of the House and each committee of the Senate having legislative jurisdiction shall submit to

the Committee on the Budget of the Senate its views and estimates

(as determined by the committee making such submission) with respect to all matters set forth in subsections (a) and (b) which relate

to matters within the jurisdiction or functions of such committee.

The Joint Economic Committee shall submit to the Committees on

the Budget of both Houses its recommendations as to the fiscal policy appropriate to the goals of the Employment Act of 1946. Any

other committee of the House of Representatives or the Senate may

submit to the Committee on the Budget of its House, and any joint

committee of the Congress may submit to the Committees on the

Budget of both Houses, its views and estimates with respect to all

matters set forth in subsections (a) and (b) which relate to matters

within its jurisdiction or functions. Any Committee of the House of

Representatives or the Senate that anticipates that the committee

will consider any proposed legislation establishing, amending, or

reauthorizing any Federal program likely to have a significant

budgetary impact on any State, local, or tribal government, or likely to have a significant financial impact on the private sector, including any legislative proposal submitted by the executive branch

likely to have such a budgetary or financial impact, shall include

its views and estimates on that proposal to the Committee on the

Budget of the applicable House.

(e) HEARINGS AND REPORT.— (1) IN GENERAL.—In developing the concurrent resolution

on the budget referred to in subsection (a) for each fiscal year,

the Committee on the Budget of each House shall hold hearings and shall receive testimony from Members of Congress

and such appropriate representatives of Federal departments

and agencies, the general public, and national organizations as

Sec. 301 CONGRESSIONAL BUDGET ACT OF 1974 16

the committee deems desirable. Each of the recommendations

as to short-term and medium-term goal set forth in the report

submitted by the members of the Joint Economic Committee

under subsection (d) may be considered by the Committee on

the Budget of each House as part of its consideration of such

concurrent resolution, and its report may reflect its views

thereon, including its views on how the estimates of revenues

and levels of budget authority and outlays set forth in such

concurrent resolution are designed to achieve any goals it is

recommending.

(2) REQUIRED CONTENTS OF REPORT.—The report accompanying the resolution shall include—

(A) a comparison of the levels of total new budget authority, total outlays, total revenues, and the surplus or

deficit for each fiscal year set forth in the resolution with

those requested in the budget submitted by the President;

(B) with respect to each major functional category, an

estimate of total new budget authority and total outlays,

with the estimates divided between discretionary and

mandatory amounts;

(C) the economic assumptions that underlie each of

the matters set forth in the resolution and any alternative

economic assumptions and objectives the committee considered;

(D) information, data, and comparisons indicating the

manner in which, and the basis on which, the committee

determined each of the matters set forth in the resolution;

(E) the estimated levels of tax expenditures (the tax

expenditures budget) by major items and functional categories for the President’s budget and in the resolution;

and

(F) allocations described in section 302(a).

(3) ADDITIONAL CONTENTS OF REPORT.—The report accompanying the resolution may include—

(A) a statement of any significant changes in the proposed levels of Federal assistance to State and local governments;

(B) an allocation of the level of Federal revenues recommended in the resolution among the major sources of

such revenues;

(C) information, data, and comparisons on the share of

total Federal budget outlays and of gross domestic product

devoted to investment in the budget submitted by the

President and in the resolution;

(D) the assumed levels of budget authority and outlays

for public buildings, with a division between amounts for

construction and repair and for rental payments; and

(E) other matters, relating to the budget and to fiscal

policy, that the committee deems appropriate.

(f) ACHIEVEMENT OF GOALS FOR REDUCING UNEMPLOYMENT.—

(1) If, pursuant to section 4(c) of the Employment Act of

1946, the President recommends in the Economic Report that

the goals for reducing unemployment set forth in section 4(b)

of such Act be achieved in a year after the close of the fiveVerDate 11-SEP-98 15:16 May 02, 2000 Jkt 000000 PO 00000 Frm 00016 Fmt 9001 Sfmt 9001 H:\DOCS\CP4COM~1\53587.TXT HBUDGET1 PsN: HBUDGET1
17 Sec. 301 CONGRESSIONAL BUDGET ACT OF 1974

year period prescribed by such subsection, the concurrent resolution on the budget for the fiscal year beginning after the date

on which such Economic Report is received by the Congress

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

such goals can be achieved.

(2) After the Congress has expressed its opinion pursuant

to paragraph (1) as to the year in which the goals for reducing

unemployment set forth in section 4(b) of the Employment Act

of 1946 can be achieved, if, pursuant to section 4(e) of such

Act, the President recommends in the Economic Report that

such goals be achieved in a year which is different from the

year in which the Congress has expressed its opinion that such

goals should be achieved, either in its action pursuant to paragraph (1) or in its most recent action pursuant to this paragraph, the concurrent resolution on the budget for the fiscal

year beginning after the date on which such Economic Report

is received by the Congress may set forth the year in which,

in the opinion of the Congress, such goals can be achieved.

(3) It shall be in order to amend the provision of such resolution setting forth such year only if the amendment thereto

also proposes to alter the estimates, amounts, and levels (as

described in subsection (a)) set forth in such resolution in germane fashion in order to be consistent with the economic goals

(as described in sections 3(a)(2) and (4)(b) of the Employment

Act of 1946) which such amendment proposes can be achieved

by the year specified in such amendment.

(g) ECONOMIC ASSUMPTIONS.— (1) It shall not be in order in the Senate to consider any

concurrent resolution on the budget for a fiscal year, or any

amendment thereto, or any conference report thereon, that sets

forth amounts and levels that are determined on the basis of

more than one set of economic and technical assumptions.

(2) The joint explanatory statement accompanying a conference report on a concurrent resolution on the budget shall

set forth the common economic assumptions upon which such

joint statement and conference report are based, or upon which

any amendment contained in the joint explanatory statement

to be proposed by the conferees in the case of technical disagreement, is based.

(3) Subject to periodic reestimation based on changed economic conditions or technical estimates, determinations under

titles III and IV of the Congressional Budget Act of 1974 shall

be based upon such common economic and technical assumptions.

(h) BUDGET COMMITTEES CONSULTATION WITH COMMITTEES.—

The Committee on the Budget of the House of Representatives

shall consult with the committees of its House having legislative

jurisdiction during the preparation, consideration, and enforcement

of the concurrent resolution on the budget with respect to all matters which relate to the jurisdiction or functions of such committees.

(i) SOCIAL SECURITY POINT OF ORDER.—It shall not be in order

in the Senate to consider any concurrent resolution on the budget

(or amendment, motion, or conference report on the resolution) that

Sec. 302 CONGRESSIONAL BUDGET ACT OF 1974 18

would decrease the excess of social security revenues over social security outlays in any of the fiscal years covered by the concurrent

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

of 1986 shall be treated as affecting the amount of social security

revenues unless such provision changes the income tax treatment

of social security benefits.

COMMITTEE ALLOCATIONS

SEC. 302. ø2 U.S.C. 633¿ (a) COMMITTEE SPENDING ALLOCA- TIONS.—(1) ALLOCATION AMONG COMMITTEES.—The joint explanatory statement accompanying a conference report on a concurrent resolution on the budget shall include an allocation, consistent with the resolution recommended in the conference report, of the levels for the first fiscal year of the resolution, for

at least each of the ensuing 4 fiscal years, and a total for that

period of fiscal years (except in the case of the Committee on

Appropriations only for the fiscal year of that resolution) of—

(A) total new budget authority; and

(B) total outlays;

among each committee of the House of Representatives or the

Senate that has jurisdiction over legislation providing or creating such amounts.

(2) NO DOUBLE COUNTING.—In the House of Representatives, any item allocated to one committee may not be allocated

to another committee.

(3) FURTHER DIVISION OF AMOUNTS.— (A) IN THE SENATE.—In the Senate, the amount allocated to the Committee on Appropriations shall be further

divided among the categories specified in section 250(c)(4)

of the Balanced Budget and Emergency Deficit Control Act

of 1985 and shall not exceed the limits for each category

set forth in section 251(c) of that Act.

(B) IN THE HOUSE.—In the House of Representatives,

the amounts allocated to each committee for each fiscal

year, other than the Committee on Appropriations, shall

be further divided between amounts provided or required

by law on the date of filing of that conference report and

amounts not so provided or required. The amounts allocated to the Committee on Appropriations shall be further

divided—

(i) between discretionary and mandatory amounts

or programs, as appropriate; and

(ii) consistent with the categories specified in section 250(c)(4) of the Balanced Budget and Emergency

Deficit Control Act of 1985.

(4) AMOUNTS NOT ALLOCATED.—In the House of Representatives or the Senate, if a committee receives no allocation of

new budget authority or outlays, that committee shall be

deemed to have received an allocation equal to zero for new

budget authority or outlays.

(5) ADJUSTING ALLOCATION OF DISCRETIONARY SPENDING IN

THE HOUSE OF REPRESENTATIVES.—(A) If a concurrent resolution on the budget is not adopted by April 15, the chairman of

19 Sec. 302 CONGRESSIONAL BUDGET ACT OF 1974

the Committee on the Budget of the House of Representatives

shall submit to the House, as soon as practicable, an allocation

under paragraph (1) to the Committee on Appropriations consistent with the discretionary spending levels in the most recently agreed to concurrent resolution on the budget for the appropriate fiscal year covered by that resolution.

(B) As soon as practicable after an allocation under paragraph (1) is submitted under this section, the Committee on

Appropriations shall make suballocations and report those suballocations to the House of Representatives.

(b) SUBALLOCATIONS BY APPROPRIATIONS COMMITTEES.—As

soon as practicable after a concurrent resolution on the budget is

agreed to, the Committee on Appropriations of each House (after

consulting with the Committee on Appropriations of the other

House) shall suballocate each amount allocated to it for the budget

year under subsection (a) among its subcommittees. Each Committee on Appropriations shall promptly report to its House suballocations made or revised under this subsection. The Committee on Appropriations of the House of Representatives shall further divide

among its subcommittees the divisions made under subsection

(a)(3)(B) and promptly report those divisions to the House.

(c) POINT OF ORDER.—After the Committee on Appropriations

has received an allocation pursuant to subsection (a) for a fiscal

year, it shall not be in order in the House of Representatives or the

Senate to consider any bill, joint resolution, amendment, motion, or

conference report within the jurisdiction of that committee providing new budget authority for that fiscal year, until that committee

makes the suballocations required by subsection (b).

(d) SUBSEQUENT CONCURRENT RESOLUTIONS.—In the case of a

concurrent resolution on the budget referred to in section 304, the

allocations under subsection (a) and the subdivisions under subsection (b) shall be required only to the extent necessary to take

into account revisions made in the most recently agreed to concurrent resolution on the budget.

(e) ALTERATION OF ALLOCATIONS.—At any time after a committee reports the allocations required to be made under subsection

(b), such committee may report to its House an alteration of such

allocations. Any alteration of such allocations must be consistent

with any actions already taken by its House on legislation within

the committee’s jurisdiction.

(f) LEGISLATION SUBJECT TO POINT OF ORDER.—

(1) IN THE HOUSE OF REPRESENTATIVES.—After the Congress has completed action on a concurrent resolution on the

budget for a fiscal year, it shall not be in order in the House

of Representatives to consider any bill, joint resolution, or

amendment providing new budget authority for any fiscal year,

or any conference report on any such bill or joint resolution,

if—

(A) the enactment of such bill or resolution as reported;

(B) the adoption and enactment of such amendment;

or

(C) the enactment of such bill or resolution in the form

recommended in such conference report,

Sec. 302 CONGRESSIONAL BUDGET ACT OF 1974 20

would cause the applicable allocation of new budget authority

made under subsection (a) or (b) for the first fiscal year or the

total of fiscal years to be exceeded.

(2) IN THE SENATE.—After a concurrent resolution on the

budget is agreed to, it shall not be in order in the Senate to

consider any bill, joint resolution, amendment, motion, or conference report that would cause—

(A) in the case of any committee except the Committee

on Appropriations, the applicable allocation of new budget

authority or outlays under subsection (a) for the first fiscal

year or the total of fiscal years to be exceeded; or

(B) in the case of the Committee on Appropriations,

the applicable suballocation of new budget authority or

outlays under subsection (b) to be exceeded.

(g) PAY-AS-YOU-GO EXCEPTION IN THE HOUSE.—

(1) IN GENERAL.—(A) Subsection (f)(1) and, after April 15,

section 303(a) shall not apply to any bill or joint resolution, as

reported, amendment thereto, or conference report thereon if,

for each fiscal year covered by the most recently agreed to concurrent resolution on the budget—

(i) the enactment of that bill or resolution as reported;

(ii) the adoption and enactment of that amendment; or

(iii) the enactment of that bill or resolution in the form

recommended in that conference report,

would not increase the deficit, and, if the sum of any revenue

increases provided in legislation already enacted during the

current session (when added to revenue increases, if any, in excess of any outlay increase provided by the legislation proposed

for consideration) is at least as great as the sum of the

amount, if any, by which the aggregate level of Federal revenues should be increased as set forth in that concurrent resolution and the amount, if any, by which revenues are to be increased pursuant to pay-as-you-go procedures under section

301(b)(8), if included in that concurrent resolution.

(B) Section 311(a), as that section applies to revenues,

shall not apply to any bill, joint resolution, amendment thereto, or conference report thereon if, for each fiscal year covered

by the most recently agreed to concurrent resolution on the

budget—

(i) the enactment of that bill or resolution as reported;

(ii) the adoption and enactment of that amendment; or

(iii) the enactment of that bill or resolution in the form

recommended in that conference report,

would not increase the deficit, and, if the sum of any outlay reductions provided in legislation already enacted during the current session (when added to outlay reductions, if any, in excess

of any revenue reduction provided by the legislation proposed

for consideration) is at least as great as the sum of the

amount, if any, by which the aggregate level of Federal outlays

should be reduced as required by that concurrent resolution

and the amount, if any, by which outlays are to be reduced

pursuant to pay-as-you-go procedures under section 301(b)(8),

if included in that concurrent resolution.

21 Sec. 303 CONGRESSIONAL BUDGET ACT OF 1974

1So in law. Probably should read ‘‘Committee’’.

2 In the House, the application of section 303 was modified for the 106th Congress by section

2(a)(3) of H. Res. 5 (106th Congress) on January 6, 1999, to clarify that, in the case of a reported

bill or joint resolution considered pursuant to a special order, determinations under section 303

are for the text made in order as an original bill or joint resolution for the purpose of amendment or to the text on which the previous question is ordered directly to passage.

(2) REVISED ALLOCATIONS.—(A) As soon as practicable after

Congress agrees to a bill or joint resolution that would have

been subject to a point of order under subsection (f)(1) but for

the exception provided in paragraph (1)(A) or would have been

subject to a point of order under section 311(a) but for the exception provided in paragraph (1)(B), the chairman of the committee 1 on the Budget of the House of Representatives shall

file with the House appropriately revised allocations under section 302(a) and revised functional levels and budget aggregates

to reflect that bill.

(B) Such revised allocations, functional levels, and budget

aggregates shall be considered for the purposes of this Act as

allocations, functional levels, and budget aggregates contained

in the most recently agreed to concurrent resolution on the

budget.

CONCURRENT RESOLUTION ON THE BUDGET MUST BE ADOPTED

BEFORE BUDGET-RELATED LEGISLATION IS CONSIDERED

SEC. 303. 2 ø2 U.S.C. 634¿ (a) IN GENERAL.—Until the concurrent resolution on the budget for a fiscal year has been agreed to,

it shall not be in order in the House of Representatives, with respect to the first fiscal year covered by that resolution, or the Senate, with respect to any fiscal year covered by that resolution, to

consider any bill or joint resolution, amendment or motion thereto,

or conference report thereon that—

(1) first provides new budget authority for that fiscal year;

(2) first provides an increase or decrease in revenues during that fiscal year;

(3) provides an increase or decrease in the public debt

limit to become effective during that fiscal year;

(4) in the Senate only, first provides new entitlement authority for that fiscal year; or

(5) in the Senate only, first provides for an increase or decrease in outlays for that fiscal year.

(b) EXCEPTIONS IN THE HOUSE.— In the House of Representatives, subsection (a) does not apply—

(1)(A) to any bill or joint resolution, as reported, providing

advance discretionary new budget authority that first becomes

available for the first or second fiscal year after the budget

year; or

(B) to any bill or joint resolution, as reported, first increasing or decreasing revenues in a fiscal year following the fiscal

year to which the concurrent resolution applies;

(2) after May 15, to any general appropriation bill or

amendment thereto; or

(3) to any bill or joint resolution unless it is reported by

a committee.

Sec. 304 CONGRESSIONAL BUDGET ACT OF 1974 22

1See rule XXIII of the Rules of the House of Representatives.

2See clause 10(a) of rule XVIII of the Rules of the House of Representatives.

3 Recodified at the beginning of the 106th Congress as clause 4 of rule XIII.

(c) APPLICATION TO APPROPRIATION MEASURES IN THE

SENATE.—

(1) IN GENERAL.—Until the concurrent resolution on the

budget for a fiscal year has been agreed to and an allocation

has been made to the Committee on Appropriations of the Senate under section 302(a) for that year, it shall not be in order

in the Senate to consider any appropriation bill or joint resolution, amendment or motion thereto, or conference report thereon for that year or any subsequent year.

(2) EXCEPTION.—Paragraph (1) does not apply to appropriations legislation making advance appropriations for the

first or second fiscal year after the year the allocation referred

to in that paragraph is made.

PERMISSIBLE REVISIONS OF CONCURRENT RESOLUTIONS ON THE

BUDGET

SEC. 304. 1 ø2 U.S.C. 635¿ At any time after the concurrent

resolution on the budget for a fiscal year has been agreed to pursuant to section 301, and before the end of such fiscal year, the two

Houses may adopt a concurrent resolution on the budget which revises or reaffirms the concurrent resolution on the budget for such

fiscal year most recently agreed to.

PROVISIONS RELATING TO THE CONSIDERATION OF CONCURRENT

RESOLUTIONS ON THE BUDGET

SEC. 305. ø2 U.S.C. 636¿ (a) 2 PROCEDURE IN HOUSE OF REPRESENTATIVES AFTER REPORT OF COMMITTEE; DEBATE.—

(1) When a concurrent resolution on the budget has been

reported by the Committee on the Budget of the House of Representatives and has been referred to the appropriate calendar

of the House, it shall be in order on any day thereafter, subject

to clause 2(l)(6) of rule XI 3 of the Rules of the House of Representatives, to move to proceed to the consideration of the

concurrent resolution. The motion is highly privileged and is

not debatable. An amendment to the motion is not in order and

it is not in order to move to reconsider the vote by which the

motion is agreed to or disagreed to.

(2) General debate on any concurrent resolution on the

budget in the House of Representatives shall be limited to not

more than 10 hours, which shall be divided equally between

the majority and minority parties, plus such additional hours

of debate as are consumed pursuant to paragraph (3). A motion

further to limit debate is not debatable. A motion to recommit

the concurrent resolution is not in order, and it is not in order

to move to reconsider the vote by which the concurrent resolution is agreed to or disagreed to.

(3) Following the presentation of opening statements on

the concurrent resolution on the budget for a fiscal year by the

chairman and ranking minority member of the Committee on

23 Sec. 305 CONGRESSIONAL BUDGET ACT OF 1974

1See clause 10(c) of rule XVIII of the Rules of the House of Representatives.

2 Recodified at the beginning of the 106th Congress as rule XVIII.

3So in law. Probably should read ‘‘section 304’’.

the Budget of the House, there shall be a period of up to four

hours for debate on economic goals and policies.

(4) Only if a concurrent resolution on the budget reported

by the Committee on the Budget of the House sets forth the

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

Full Employment Act of 1946) which the estimates, amounts,

and levels (as described in section 301(a)) set forth in such resolution are designed to achieve, shall it be in order to offer to

such resolution an amendment relating to such goals, and such

amendment shall be in order only if it also proposes to alter

such estimates, amounts, and levels in germane fashion in

order to be consistent with the goals proposed in such amendment.

(5) 1 Consideration of any concurrent resolution on the

budget by the House of Representatives shall be in the Committee of the Whole, and the resolution shall be considered for

amendment under the five-minute rule in accordance with the

applicable provisions of rule XXIII 2 of the Rules of the House

of Representatives. After the Committee rises and reports the

resolution back to the House, the previous question shall be

considered as ordered on the resolution and any amendments

thereto to final passage without intervening motion; except

that it shall be in order at any time prior to final passage (notwithstanding any other rule or provision of law) to adopt an

amendment (or a series of amendments) changing any figure or

figures in the resolution as so reported to the extent necessary

to achieve mathematical consistency.

(6) Debate in the House of Representatives on the conference report on any concurrent resolution on the budget shall

be limited to not more than 5 hours, which shall be divided

equally between the majority and minority parties. A motion

further to limit debate is not debatable. A motion to recommit

the conference report is not in order, and it is not in order to

move to reconsider the vote by which the conference report is

agreed to or disagreed to.

(7) Appeals from decisions of the Chair relating to the application of the Rules of the House of Representatives to the

procedure relating to any concurrent resolution on the budget

shall be decided without debate.

(b) PROCEDURE IN SENATE AFTER REPORT OF COMMITTEE; DE- BATE; AMENDMENTS.— (1) Debate in the Senate on any concurrent resolution on

the budget, and all amendments thereto and debatable motions

and appeals in connection therewith, shall be limited to not

more than 50 hours, except that with respect to any concurrent

resolution referred to in section 304(a) 3 all such debate shall

be limited to not more than 15 hours. The time shall be equally

divided between, and controlled by, the majority leader and the

minority leader or their designees.

(2) Debate in the Senate on any amendment to a concurrent resolution on the budget shall be limited to 2 hours, to be

Sec. 305 CONGRESSIONAL BUDGET ACT OF 1974 24

equally divided between, and controlled by, the mover and the

manager of the concurrent resolution, and debate on any

amendment to an amendment, debatable motion, or appeal

shall be limited to 1 hour, to be equally divided between, and

controlled by, the mover and the manager of the concurrent

resolution, except that in the event the manager of the concurrent resolution is in favor of any such amendment, motion, or

appeal, the time in opposition thereto shall be controlled by the

minority leader or his designee. No amendment that is not germane to the provisions of such concurrent resolution shall be

received. Such leaders, or either of them, may, from the time

under their control on the passage of the concurrent resolution,

allot additional time to any Senator during the consideration

of any amendment, debatable motion, or appeal.

(3) Following the presentation of opening statements on

the concurrent resolution on the budget for a fiscal year by the

chairman and ranking minority member of the Committee on

the Budget of the Senate, there shall be a period of up to four

hours for debate on economic goals and policies.

(4) Subject to the other limitations of this Act, only if a

concurrent resolution on the budget reported by the Committee

on the Budget of the Senate sets forth the economic goals (as

described in sections 3(a)(2) and 4(b) of the Employment Act of

1946) which the estimates, amounts, and levels (as described

in section 301(a)) set forth in such resolution are designed to

achieve, shall it be in order to offer to such resolution an

amendment relating to such goals, and such amendment shall

be in order only if it also proposes to alter such estimates,

amounts, and levels in germane fashion in order to be consistent with the goals proposed in such amendment.

(5) A motion to further limit debate is not debatable. A motion to recommit (except a motion to recommit with instructions to report back within a specified number of days, not to

exceed 3, not counting any day on which the Senate is not in

session) is not in order. Debate on any such motion to recommit shall be limited to 1 hour, to be equally divided between,

and controlled by, the mover and the manager of the concurrent resolution.

(6) Notwithstanding any other rule, an amendment or series of amendments to a concurrent resolution on the budget

proposed in the Senate shall always be in order if such amendment or series of amendments proposes to change any figure

or figures then contained in such concurrent resolution so as

to make such concurrent resolution mathematically consistent

or so as to maintain such consistency.

(c) ACTION ON CONFERENCE REPORTS IN THE SENATE.—

(1) A motion to proceed to the consideration of the conference report on any concurrent resolution on the budget (or

a reconciliation bill or resolution) may be made even though a

previous motion to the same effect has been disagreed to.

(2) During the consideration in the Senate of the conference report (or a message between Houses) on any concurrent resolution on the budget, and all amendments in disagreement, and all amendments thereto, and debatable motions and

25 Sec. 306 CONGRESSIONAL BUDGET ACT OF 1974

appeals in connection therewith, debate shall be limited to 10

hours, to be equally divided between, and controlled by, the

majority leader and minority leader or their designees. Debate

on any debatable motion or appeal related to the conference report (or a message between Houses) shall be limited to 1 hour,

to be equally divided between, and controlled by, the mover

and the manager of the conference report (or a message between Houses).

(3) Should the conference report be defeated, debate on

any request for a new conference and the appointment of

conferrees shall be limited to 1 hour, to be equally divided between, and controlled by, the manager of the conference report

and the minority leader or his designee, and should any motion

be made to instruct the conferees before the conferees are

named, debate on such motion shall be limited to one-half

hour, to be equally divided between, and controlled by, the

mover and the manager of the conference report. Debate on

any amendment to any such instructions shall be limited to 20

minutes, to be equally divided between and controlled by the

mover and the manager of the conference report. In all cases

when the manager of the conference report is in favor of any

motion, appeal, or amendment, the time in opposition shall be

under the control of the minority leader or his designee.

(4) In any case in which there are amendments in disagreement, time on each amendment shall be limited to 30

minutes, to be equally divided between, and controlled by, the

manager of the conference report and the minority leader or

his designee. No amendment that is not germane to the provisions of such amendments shall be received.

(d) CONCURRENT RESOLUTION MUST BE CONSISTENT IN THE

SENATE.—It shall not be in order in the Senate to vote on the question of agreeing to—

(1) a concurrent resolution on the budget unless the figures then contained in such resolution are mathematically consistent; or

(2) a conference report on a concurrent resolution on the

budget unless the figures contained in such resolution, as recommended in such conference report, are mathematically consistent.

LEGISLATION DEALING WITH CONGRESSIONAL BUDGET MUST BE

HANDLED BY BUDGET COMMITTEES

SEC. 306. ø2 U.S.C. 637¿ No bill, resolution, amendment, motion, or conference report, dealing with any matter which is within

the jurisdiction of the Committee on the Budget of either House

shall be considered in that House unless it is a bill or resolution

which has been reported by the Committee on the Budget of that

House (or from the consideration of which such committee has been

discharged) or unless it is an amendment to such a bill or resolution.

Sec. 307 CONGRESSIONAL BUDGET ACT OF 1974 26

1See clause 3(c)(2) and (d)(2) of rule XIII of the Rules of the House of Representatives.

HOUSE COMMITTEE ACTION ON ALL APPROPRIATION BILLS TO BE

COMPLETED BY JUNE 10

SEC. 307. ø2 U.S.C. 638¿ On or before June 10 of each year,

the Committee on Appropriations of the House of Representatives

shall report annual appropriation bills providing new budget authority under the jurisdiction of all of its subcommittees for the fiscal year which begins on October 1 of that year.

REPORTS, SUMMARIES, AND PROJECTIONS OF CONGRESSIONAL BUDGET

ACTIONS

SEC. 308. ø2 U.S.C. 639¿ (a) 1 REPORTS ON LEGISLATION PRO- VIDING NEW BUDGET AUTHORITY OR PROVIDING AN INCREASE OR

DECREASE IN REVENUES OR TAX EXPENDITURES.— (1) Whenever a committee of either House reports to its

House a bill or joint resolution, or committee amendment

thereto, providing new budget authority (other than continuing

appropriations) or providing an increase or decrease in revenues or tax expenditures for a fiscal year (or fiscal years), the

report accompanying that bill or joint resolution shall contain

a statement, or the committee shall make available such a

statement in the case of an approved committee amendment

which is not reported to its House, prepared after consultation

with the Director of the Congressional Budget Office—

(A) comparing the levels in such measure to the appropriate allocations in the reports submitted under section

302(b) for the most recently agreed to concurrent resolution on the budget for such fiscal year (or fiscal years);

(B) containing a projection by the Congressional Budget Office of how such measure will affect the levels of such

budget authority, budget outlays, revenues, or tax expenditures under existing law for such fiscal year (or fiscal

years) and each of the four ensuing fiscal years, if timely

submitted before such report is filed; and

(C) containing an estimate by the Congressional Budget Office of the level of new budget authority for assistance

to State and local governments provided by such measure,

if timely submitted before such report is filed.

(2) Whenever a conference report is filed in either House

and such conference report or any amendment reported in disagreement or any amendment contained in the joint statement

of managers to be proposed by the conferees in the case of

technical disagreement on such bill or joint resolution provides

new budget authority (other than continuing appropriations) or

provides an increase or decrease in revenues for a fiscal year

(or fiscal years), the statement of managers accompanying such

conference report shall contain the information described in

paragraph (1), if available on a timely basis. If such information is not available when the conference report is filed, the

committee shall make such information available to Members

as soon as practicable prior to the consideration of such conference report.

27 Sec. 309 CONGRESSIONAL BUDGET ACT OF 1974

(b) UP-TO-DATE TABULATIONS OF CONGRESSIONAL BUDGET

ACTION.—

(1) The Director of the Congressional Budget Office shall

issue to the committees of the House of Representatives and

the Senate reports on at least a monthly basis detailing and

tabulating the progress of congressional action on bills and

joint resolutions providing new budget authority or providing

an increase or decrease in revenues or tax expenditures for

each fiscal year covered by a concurrent resolution on the

budget. Such reports shall include but are not limited to an upto-date tabulation comparing the appropriate aggregate and

functional levels (including outlays) included in the most recently adopted concurrent resolution on the budget with the

levels provided in bills and joint resolutions reported by committees or adopted by either House or by the Congress, and

with the levels provided by law for the fiscal year preceding

the first fiscal year covered by the appropriate concurrent resolution.

(2) The Committee on the Budget of each House shall

make available to Members of its House summary budget

scorekeeping reports. Such reports—

(A) shall be made available on at least a monthly

basis, but in any case frequently enough to provide Members of each House an accurate representation of the current status of congressional consideration of the budget;

(B) shall include, but are not limited to summaries of

tabulations provided under subsection (b)(1); and

(C) shall be based on information provided under subsection (b)(1) without substantive revision.

The chairman of the Committee on the Budget of the House of Representatives shall submit such reports to the Speaker.

(c) FIVE-YEAR PROJECTION OF CONGRESSIONAL BUDGET ACT.— As soon as practicable after the beginning of each fiscal year, the

Director of the Congressional Budget Office shall issue a report

projecting for the period of 5 fiscal years beginning with such fiscal

year—

(1) total new budget authority and total budget outlays for

each fiscal year in such period;

(2) revenues to be received and the major sources thereof,

and the surplus or deficit, if any, for each fiscal year in such

period;

(3) tax expenditures for each fiscal year in such period;

and

(4) entitlement authority for each fiscal year in such period.

HOUSE APPROVAL OF REGULAR APPROPRIATION BILLS

SEC. 309. ø2 U.S.C. 640¿ It shall not be in order in the House

of Representatives to consider any resolution providing for an adjournment period of more than three calendar days during the

month of July until the House of Representatives has approved annual appropriation bills providing new budget authority under the

jurisdiction of all the subcommittees of the Committee on Appropriations for the fiscal year beginning on October 1 of such year.

Sec. 310 CONGRESSIONAL BUDGET ACT OF 1974 28

For purposes of this section, the chairman of the Committee on Appropriations of the House of Representatives shall periodically advise the Speaker as to changes in jurisdiction among its various

subcommittees.

RECONCILIATION

SEC. 310. ø2 U.S.C. 641¿ (a) INCLUSION OF RECONCILIATION DI- RECTIVES IN CONCURRENT RESOLUTIONS ON THE BUDGET.—A concurrent resolution on the budget for any fiscal year, to the extent

necessary to effectuate the provisions and requirements of such

resolution, shall—

(1) specify the total amount by which—

(A) new budget authority for such fiscal year;

(B) budget authority initially provided for prior fiscal

years;

(C) new entitlement authority which is to become effective during such fiscal year; and

(D) credit authority for such fiscal year,

contained in laws, bills, and resolutions within the jurisdiction

of a committee is to be changed and direct that committee to

determine and recommend changes to accomplish a change of

such total amount;

(2) specify the total amount by which revenues are to be

changed and direct that the committees having jurisdiction to

determine and recommend changes in the revenue laws, bills,

and resolutions to accomplish a change of such total amount;

(3) specify the amounts by which the statutory limit on the

public debt is to be changed and direct the committee having

jurisdiction to recommend such change; or

(4) specify and direct any combination of the matters described in paragraphs (1), (2), and (3) (including a direction to

achieve deficit reduction).

(b) LEGISLATIVE PROCEDURE.—If a concurrent resolution containing directives to one or more committees to determine and recommend changes in laws, bills, or resolutions is agreed to in accordance with subsection (a), and—

(1) only one committee of the House or the Senate is directed to determine and recommend changes, that committee

shall promptly make such determination and recommendations

and report to its House reconciliation legislation containing

such recommendations; or

(2) more than one committee of the House or the Senate

is directed to determine and recommend changes, each such

committee so directed shall promptly make such determination

and recommendations and submit such recommendations to

the Committee on the Budget of its House, which upon receiving all such recommendations, shall report to its House reconciliation legislation carrying out all such recommendations

without any substantive revision.

For purposes of this subsection, a reconciliation resolution is a concurrent resolution directing the Clerk of the House of Representatives or the Secretary of the Senate, as the case may be, to make

specified changes in bills and resolutions which have not been enrolled.

29 Sec. 310 CONGRESSIONAL BUDGET ACT OF 1974

1 A dash was inadvertently omitted as a result of the amendment made by section 10111 of

Public Law 105–33 (111 Stat. 685).

(c) COMPLIANCE WITH RECONCILIATION DIRECTIONS.—(1) Any

committee of the House of Representatives or the Senate that is directed, pursuant to a concurrent resolution on the budget, to determine and recommend changes of the type described in paragraphs

(1) and (2) of subsection (a) with respect to laws within its jurisdiction, shall be deemed to have complied with such directions—

(A) if—

(i) the amount of the changes of the type described in

paragraph (1) of such subsection recommended by such

committee do not exceed or fall below the amount of the

changes such committee was directed by such concurrent

resolution to recommend under that paragraph by more

than— 1

(I) in the Senate, 20 percent of the total of the

amounts of the changes such committee was directed

to make under paragraphs (1) and (2) of such subsection; or

(II) in the House of Representatives, 20 percent of

the sum of the absolute value of the changes the committee was directed to make under paragraph (1) and

the absolute value of the changes the committee was

directed to make under paragraph (2); and

(ii) the amount of the changes of the type described in

paragraph (2) of such subsection recommended by such

committee do not exceed or fall below the amount of the

changes such committee was directed by such concurrent

resolution to recommend under that paragraph by more

than— 1

(I) in the Senate, 20 percent of the total of the

amounts of the changes such committee was directed

to make under paragraphs (1) and (2) of such subsection; or

(II) in the House of Representatives, 20 percent of

the sum of the absolute value of the changes the committee was directed to make under paragraph (1) and

the absolute value of the changes the committee was

directed to make under paragraph (2); and

(B) if the total amount of the changes recommended by

such committee is not less than the total of the amounts of the

changes such committee was directed to make under paragraphs (1) and (2) of such subsection.

(2)(A) Upon the reporting to the Committee on the Budget

of the Senate of a recommendation that shall be deemed to

have complied with such directions solely by virtue of this subsection, the chairman of that committee may file with the Senate appropriately revised allocations under section 302(a) and

revised functional levels and aggregates to carry out this subsection.

(B) Upon the submission to the Senate of a conference report recommending a reconciliation bill or resolution in which

a committee shall be deemed to have complied with such direcVerDate 11-SEP-98 15:16 May 02, 2000 Jkt 000000 PO 00000 Frm 00029 Fmt 9001 Sfmt 9001 H:\DOCS\CP4COM~1\53587.TXT HBUDGET1 PsN: HBUDGET1
Sec. 310 CONGRESSIONAL BUDGET ACT OF 1974 30

tions solely by virtue of this subsection, the chairman of the

Committee on the Budget of the Senate may file with the Senate appropriately revised allocations under section 302(a) and

revised functional levels and aggregates to carry out this subsection.

(C) Allocations, functional levels, and aggregates revised

pursuant to this paragraph shall be considered to be allocations, functional levels, and aggregates contained in the concurrent resolution on the budget pursuant to section 301.

(D) Upon the filing of revised allocations pursuant to this

paragraph, the reporting committee shall report revised allocations pursuant to section 302(b) to carry out this subsection.

(d) LIMITATION ON AMENDMENTS TO RECONCILIATION BILLS AND

RESOLUTIONS.— (1) It shall not be in order in the House of Representatives

to consider any amendment to a reconciliation bill or reconciliation resolution if such amendment would have the effect of increasing any specific budget outlays above the level of such

outlays provided in the bill or resolution (for the fiscal years

covered by the reconciliation instructions set forth in the most

recently agreed to concurrent resolution on the budget), or

would have the effect of reducing any specific Federal revenues

below the level of such revenues provided in the bill or resolution (for such fiscal years), unless such amendment makes at

least an equivalent reduction in other specific budget outlays,

an equivalent increase in other specific Federal revenues, or an

equivalent combination thereof (for such fiscal years), except

that a motion to strike a provision providing new budget authority or new entitlement authority may be in order.

(2) It shall not be in order in the Senate to consider any

amendment to a reconciliation bill or reconciliation resolution

if such amendment would have the effect of decreasing any

specific budget outlay reductions below the level of such outlay

reductions provided (for the fiscal years covered) in the reconciliation instructions which relate to such bill or resolution

set forth in a resolution providing for reconciliation, or would

have the effect of reducing Federal revenue increases below the

level of such revenue increases provided (for such fiscal years)

in such instructions relating to such bill or resolution, unless

such amendment makes a reduction in other specific budget

outlays, an increase in other specific Federal revenues, or a

combination thereof (for such fiscal years) at least equivalent

to any increase in outlays or decrease in revenues provided by

such amendment, except that a motion to strike a provision

shall always be in order.

(3) Paragraphs (1) and (2) shall not apply if a declaration

of war by the Congress is in effect.

(4) For purposes of this section, the levels of budget outlays and Federal revenues for a fiscal year shall be determined

on the basis of estimates made by the Committee on the Budget of the House of Representatives or of the Senate, as the case

may be.

(5) The Committee on Rules of the House of Representatives may make in order amendments to achieve changes speciVerDate 11-SEP-98 15:16 May 02, 2000 Jkt 000000 PO 00000 Frm 00030 Fmt 9001 Sfmt 9001 H:\DOCS\CP4COM~1\53587.TXT HBUDGET1 PsN: HBUDGET1
31 Sec. 311 CONGRESSIONAL BUDGET ACT OF 1974

fied by reconciliation directives contained in a concurrent resolution on the budget if a committee or committees of the House

fail to submit recommended changes to its Committee on the

Budget pursuant to its instruction.

(e) PROCEDURE IN THE SENATE.— (1) Except as provided in paragraph (2), the provisions of

section 305 for the consideration in the Senate of concurrent

resolutions on the budget and conference reports thereon shall

also apply to the consideration in the Senate of reconciliation

bills reported under subsection (b) and conference reports

thereon.

(2) Debate in the Senate on any reconciliation bill reported

under subsection (b), and all amendments thereto and debatable motions and appeals in connection therewith, shall be limited to not more than 20 hours.

(f) COMPLETION OF RECONCILIATION PROCESS.—It shall not be

in order in the House of Representatives to consider any resolution

providing for an adjournment period of more than three calendar

days during the month of July until the House of Representatives

has completed action on the reconciliation legislation for the fiscal

year beginning on October 1 of the calendar year to which the adjournment resolution pertains, if reconciliation legislation is required to be reported by the concurrent resolution on the budget

for such fiscal year.

(g) LIMITATION ON CHANGES TO THE SOCIAL SECURITY ACT.— Notwithstanding any other provision of law, it shall not be in order

in the Senate or the House of Representatives to consider any reconciliation bill or reconciliation resolution reported pursuant to a

concurrent resolution on the budget agreed to under section 301 or

304, or a joint resolution pursuant to section 258C of the Balanced

Budget and Emergency Deficit Control Act of 1985, or any amendment thereto or conference report thereon, that contains recommendations with respect to the old-age, survivors, and disability

insurance program established under title II of the Social Security

Act.

BUDGET-RELATED LEGISLATION MUST BE WITHIN APPROPRIATE

LEVELS

SEC. 311. ø2 U.S.C. 642¿ (a) ENFORCEMENT OF BUDGET AGGRE- GATES.—(1) IN THE HOUSE OF REPRESENTATIVES.—Except as provided by subsection (c), after the Congress has completed action on a concurrent resolution on the budget for a fiscal year,

it shall not be in order in the House of Representatives to consider any bill, joint resolution, amendment, motion, or conference report providing new budget authority or reducing revenues, if—

(A) the enactment of that bill or resolution as reported;

(B) the adoption and enactment of that amendment; or

(C) the enactment of that bill or resolution in the form

recommended in that conference report;

would cause the level of total new budget authority or total

outlays set forth in the applicable concurrent resolution on the

Sec. 311 CONGRESSIONAL BUDGET ACT OF 1974 32

budget for the first fiscal year to be exceeded, or would cause

revenues to be less than the level of total revenues set forth

in that concurrent resolution for the first fiscal year or for the

total of that first fiscal year and the ensuing fiscal years for

which allocations are provided under section 302(a), except

when a declaration of war by the Congress is in effect.

(2) IN THE SENATE.—After a concurrent resolution on the

budget is agreed to, it shall not be in order in the Senate to

consider any bill, joint resolution, amendment, motion, or conference report that—

(A) would cause the level of total new budget authority

or total outlays set forth for the first fiscal year in the applicable resolution to be exceeded; or

(B) would cause revenues to be less than the level of

total revenues set forth for that first fiscal year or for the

total of that first fiscal year and the ensuing fiscal years

in the applicable resolution for which allocations are provided under section 302(a).

(3) ENFORCEMENT OF SOCIAL SECURITY LEVELS IN THE SENATE.—After a concurrent resolution on the budget is agreed to,

it shall not be in order in the Senate to consider any bill, joint

resolution, amendment, motion, or conference report that

would cause a decrease in social security surpluses or an increase in social security deficits relative to the levels set forth

in the applicable resolution for the first fiscal year or for the

total of that fiscal year and the ensuing fiscal years for which

allocations are provided under section 302(a).

(b) SOCIAL SECURITY LEVELS.—

(1) IN GENERAL.—For purposes of subsection (a)(3), social

security surpluses equal the excess of social security revenues

over social security outlays in a fiscal year or years with such

an excess and social security deficits equal the excess of social

security outlays over social security revenues in a fiscal year

or years with such an excess.

(2) TAX TREATMENT.—For purposes of subsection (a)(3), no

provision of any legislation involving a change in chapter 1 of

the Internal Revenue Code of 1986 shall be treated as affecting

the amount of social security revenues or outlays unless that

provision changes the income tax treatment of social security

benefits.

(c) EXCEPTION IN THE HOUSE OF REPRESENTATIVES.—Subsection (a)(1) shall not apply in the House of Representatives to

any bill, joint resolution, or amendment that provides new budget

authority for a fiscal year or to any conference report on any such

bill or resolution, if—

(1) the enactment of that bill or resolution as reported;

(2) the adoption and enactment of that amendment; or

(3) the enactment of that bill or resolution in the form recommended in that conference report;

would not cause the appropriate allocation of new budget authority

made pursuant to section 302(a) for that fiscal year to be exceeded.

33 Sec. 312 CONGRESSIONAL BUDGET ACT OF 1974

DETERMINATIONS AND POINTS OF ORDER

SEC. 312. ø2 U.S.C. 643¿ (a) BUDGET COMMITTEE DETERMINATIONS.—For purposes of this title and title IV, the levels of new

budget authority, outlays, direct spending, new entitlement authority, and revenues for a fiscal year shall be determined on the basis

of estimates made by the Committee on the Budget of the House

of Representatives or the Senate, as applicable.

(b) DISCRETIONARY SPENDING POINT OF ORDER IN THE SENATE.—

(1) IN GENERAL.—Except as otherwise provided in this subsection, it shall not be in order in the Senate to consider any

bill or resolution (or amendment, motion, or conference report

on that bill or resolution) that would exceed any of the discretionary spending limits in section 251(c) of the Balanced Budget and Emergency Deficit Control Act of 1985.

(2) EXCEPTIONS.—This subsection shall not apply if a declaration of war by the Congress is in effect or if a joint resolution pursuant to section 258 of the Balanced Budget and Emergency Deficit Control Act of 1985 has been enacted.

(c) MAXIMUM DEFICIT AMOUNT POINT OF ORDER IN THE SENATE.—It shall not be in order in the Senate to consider any concurrent resolution on the budget for a fiscal year, or to consider any

amendment to that concurrent resolution, or to consider a conference report on that concurrent resolution, if—

(1) the level of total outlays for the first fiscal year set

forth in that concurrent resolution or conference report exceeds; or

(2) the adoption of that amendment would result in a level

of total outlays for that fiscal year that exceeds;

the recommended level of Federal revenues for that fiscal year, by

an amount that is greater than the maximum deficit amount, if

any, specified in the Balanced Budget and Emergency Deficit Control Act of 1985 for that fiscal year.

(d) TIMING OF POINTS OF ORDER IN THE SENATE.—A point of

order under this Act may not be raised against a bill, resolution,

amendment, motion, or conference report while an amendment or

motion, the adoption of which would remedy the violation of this

Act, is pending before the Senate.

(e) POINTS OF ORDER IN THE SENATE AGAINST AMENDMENTS

BETWEEN THE HOUSES.—Each provision of this Act that establishes

a point of order against an amendment also establishes a point of

order in the Senate against an amendment between the Houses. If

a point of order under this Act is raised in the Senate against an

amendment between the Houses and the point of order is sustained, the effect shall be the same as if the Senate had disagreed

to the amendment.

(f) EFFECT OF A POINT OF ORDER IN THE SENATE.—In the Senate, if a point of order under this Act against a bill or resolution

is sustained, the Presiding Officer shall then recommit the bill or

resolution to the committee of appropriate jurisdiction for further

consideration.

Sec. 313 CONGRESSIONAL BUDGET ACT OF 1974 34

EXTRANEOUS MATTER IN RECONCILIATION LEGISLATION

SEC. 313. ø2 U.S.C. 644¿ (a) IN GENERAL.—When the Senate

is considering a reconciliation bill or a reconciliation resolution pursuant to section 310 (whether that bill or resolution originated in

the Senate or the House) or section 258C of the Balanced Budget

and Emergency Deficit Control Act of 1985, upon a point of order

being made by any Senator against material extraneous to the instructions to a committee which is contained in any title or provision of the bill or resolution or offered as an amendment to the bill

or resolution, and the point of order is sustained by the Chair, any

part of said title or provision that contains material extraneous to

the instructions to said Committee as defined in subsection (b)

shall be deemed stricken from the bill and may not be offered as

an amendment from the floor.

(b) EXTRANEOUS PROVISIONS.—(1)(A) Except as provided in

paragraph (2), a provision of a reconciliation bill or reconciliation

resolution considered pursuant to section 310 shall be considered

extraneous if such provision does not produce a change in outlays

or revenue, including changes in outlays and revenues brought

about by changes in the terms and conditions under which outlays

are made or revenues are required to be collected (but a provision

in which outlay decreases or revenue increases exactly offset outlay

increases or revenue decreases shall not be considered extraneous

by virtue of this subparagraph); (B) any provision producing an increase in outlays or decrease in revenues shall be considered extraneous if the net effect of provisions reported by the Committee reporting the title containing the provision is that the Committee

fails to achieve its reconciliation instructions; (C) a provision that

is not in the jurisdiction of the Committee with jurisdiction over

said title or provision shall be considered extraneous; (D) a provision shall be considered extraneous if it produces changes in outlays or revenues which are merely incidental to the non-budgetary

components of the provision; (E) a provision shall be considered to

be extraneous if it increases, or would increase, net outlays, or if

it decreases, or would decrease, revenues during a fiscal year after

the fiscal years covered by such reconciliation bill or reconciliation

resolution, and such increases or decreases are greater than outlay

reductions or revenue increases resulting from other provisions in

such title in such year; and (F) a provision shall be considered extraneous if it violates section 310(g).

(2) A Senate-originated provision shall not be considered extraneous under paragraph (1)(A) if the Chairman and Ranking Minority Member of the Committee on the Budget and the Chairman and

Ranking Minority Member of the Committee which reported the

provision certify that: (A) the provision mitigates direct effects

clearly attributable to a provision changing outlays or revenue and

both provisions together produce a net reduction in the deficit; (B)

the provision will result in a substantial reduction in outlays or a

substantial increase in revenues during fiscal years after the fiscal

years covered by the reconciliation bill or reconciliation resolution;

(C) a reduction of outlays or an increase in revenues is likely to

occur as a result of the provision, in the event of new regulations

authorized by the provision or likely to be proposed, court rulings

35 Sec. 313 CONGRESSIONAL BUDGET ACT OF 1974

on pending litigation, or relationships between economic indices

and stipulated statutory triggers pertaining to the provision, other

than the regulations, court rulings or relationships currently projected by the Congressional Budget Office for scorekeeping purposes; or (D) such provision will be likely to produce a significant

reduction in outlays or increase in revenues but, due to insufficient

data, such reduction or increase cannot be reliably estimated.

(3) A provision reported by a committee shall not be considered

extraneous under paragraph (1)(C) if (A) the provision is an integral part of a provision or title, which if introduced as a bill or resolution would be referred to such committee, and the provision sets

forth the procedure to carry out or implement the substantive provisions that were reported and which fall within the jurisdiction of

such committee; or (B) the provision states an exception to, or a

special application of, the general provision or title of which it is

a part and such general provision or title if introduced as a bill or

resolution would be referred to such committee.

(c) EXTRANEOUS MATERIALS.—Upon the reporting or discharge

of a reconciliation bill or resolution pursuant to section 310 in the

Senate, and again upon the submission of a conference report on

such a reconciliation bill or resolution, the Committee on the Budget of the Senate shall submit for the record a list of material considered to be extraneous under subsections (b)(1)(A), (b)(1)(B), and

(b)(1)(E) of this section to the instructions of a committee as provided in this section. The inclusion or exclusion of a provision shall

not constitute a determination of extraneousness by the Presiding

Officer of the Senate.

(d) CONFERENCE REPORTS.—When the Senate is considering a

conference report on, or an amendment between the Houses in relation to, a reconciliation bill or reconciliation resolution pursuant

to section 310, upon—

(1) a point of order being made by any Senator against extraneous material meeting the definition of subsections

(b)(1)(A), (b)(1)(B), (b)(1)(D), (b)(1)(E), or (b)(1)(F), and

(2) such point of order being sustained,

such material contained in such conference report or amendment

shall be deemed stricken, and the Senate shall proceed, without intervening action or motion, to consider the question of whether the

Senate shall recede from its amendment and concur with a further

amendment, or concur in the House amendment with a further

amendment, as the case may be, which further amendment shall

consist of only that portion of the conference report or House

amendment, as the case may be, not so stricken. Any such motion

in the Senate shall be debatable for two hours. In any case in

which such point of order is sustained against a conference report

(or Senate amendment derived from such conference report by operation of this subsection), no further amendment shall be in order.

(e) GENERAL POINT OF ORDER.—Notwithstanding any other law

or rule of the Senate, it shall be in order for a Senator to raise a

single point of order that several provisions of a bill, resolution,

amendment, motion, or conference report violate this section. The

Presiding Officer may sustain the point of order as to some or all

of the provisions against which the Senator raised the point of

order. If the Presiding Officer so sustains the point of order as to

Sec. 314 CONGRESSIONAL BUDGET ACT OF 1974 36

some of the provisions (including provisions of an amendment, motion, or conference report) against which the Senator raised the

point of order, then only those provisions (including provisions of

an amendment, motion, or conference report) against which the

Presiding Officer sustains the point of order shall be deemed stricken pursuant to this section. Before the Presiding Officer rules on

such a point of order, any Senator may move to waive such a point

of order as it applies to some or all of the provisions against which

the point of order was raised. Such a motion to waive is amendable

in accordance with the rules and precedents of the Senate. After

the Presiding Officer rules on such a point of order, any Senator

may appeal the ruling of the Presiding Officer on such a point of

order as it applies to some or all of the provisions on which the

Presiding Officer ruled.

ADJUSTMENTS

SEC. 314. ø2 U.S.C. 645¿ (a) ADJUSTMENTS.—

(1) IN GENERAL.—After the reporting of a bill or joint resolution, the offering of an amendment thereto, or the submission of a conference report thereon, the chairman of the Committee on the Budget of the House of Representatives or the

Senate shall make the adjustments set forth in paragraph (2)

for the amount of new budget authority in that measure (if

that measure meets the requirements set forth in subsection

(b)) and the outlays flowing from that budget authority.

(2) MATTERS TO BE ADJUSTED.—The adjustments referred

to in paragraph (1) are to be made to—

(A) the discretionary spending limits, if any, set forth

in the appropriate concurrent resolution on the budget;

(B) the allocations made pursuant to the appropriate

concurrent resolution on the budget pursuant to section

302(a); and

(C) the budgetary aggregates as set forth in the appropriate concurrent resolution on the budget.

(b) AMOUNTS OF ADJUSTMENTS.—The adjustment referred to in

subsection (a) shall be—

(1) an amount provided and designated as an emergency

requirement pursuant to section 251(b)(2)(A) or 252(e) of the

Balanced Budget and Emergency Deficit Control Act of 1985;

(2) an amount provided for continuing disability reviews

subject to the limitations in section 251(b)(2)(C) of that Act;

(3) for any fiscal year through 2002, an amount provided

that is the dollar equivalent of the Special Drawing Rights

with respect to—

(A) an increase in the United States quota as part of

the International Monetary Fund Eleventh General Review of Quotas (United States Quota); or

(B) any increase in the maximum amount available to

the Secretary of the Treasury pursuant to section 17 of the

Bretton Woods Agreements Act, as amended from time to

time (New Arrangements to Borrow);

(4) an amount provided not to exceed $1,884,000,000 for

the period of fiscal years 1998 through 2000 for arrearages for

37 Sec. 315 CONGRESSIONAL BUDGET ACT OF 1974

international organizations, international peacekeeping, and

multilateral development banks;

(5) an amount provided for an earned income tax credit

compliance initiative but not to exceed—

(A) with respect to fiscal year 1998, $138,000,000 in

new budget authority;

(B) with respect to fiscal year 1999, $143,000,000 in

new budget authority;

(C) with respect to fiscal year 2000, $144,000,000 in

new budget authority;

(D) with respect to fiscal year 2001, $145,000,000 in

new budget authority; and

(E) with respect to fiscal year 2002, $146,000,000 in

new budget authority; or

(6) in the case of an amount for adoption incentive payments (as defined in section 251(b)(2)(G) of the Balanced Budget and Emergency Deficit Control Act of 1985) for fiscal year

1999, 2000, 2001, 2002, or 2003 for the Department of Health

and Human Services, an amount not to exceed $20,000,000.

(c) APPLICATION OF ADJUSTMENTS.—The adjustments made

pursuant to subsection (a) for legislation shall—

(1) apply while that legislation is under consideration;

(2) take effect upon the enactment of that legislation; and

(3) be published in the Congressional Record as soon as

practicable.

(d) REPORTING REVISED SUBALLOCATIONS.—Following any adjustment made under subsection (a), the Committees on Appropriations of the Senate and the House of Representatives may report

appropriately revised suballocations under section 302(b) to carry

out this section.

(e) DEFINITIONS FOR CDRS.—As used in subsection (b)(2)—

(1) the term ‘‘continuing disability reviews’’ shall have the

same meaning as provided in section 251(b)(2)(C)(ii) of the Balanced Budget and Emergency Deficit Control Act of 1985; and

(2) the term ‘‘new budget authority’’ shall have the same

meaning as the term ‘‘additional new budget authority’’ and

the term ‘‘outlays’’ shall have the same meaning as ‘‘additional

outlays’’ in that section.

EFFECT OF ADOPTION OF A SPECIAL ORDER OF BUSINESS IN THE

HOUSE OF REPRESENTATIVES

SEC. 315. ø2 U.S.C. 645a¿ For purposes of a reported bill or

joint resolution considered in the House of Representatives pursuant to a special order of business, the term ‘‘as reported’’ in this

title or title IV shall be considered to refer to the text made in

order as an original bill or joint resolution for the purpose of

amendment or to the text on which the previous question is ordered directly to passage, as the case may be.

Sec. 401 CONGRESSIONAL BUDGET ACT OF 1974 38

1In the House, section 401(b) was clarified by section 2(a)(2) of H. Res. 5 (106th Congress)

on January 6, 1999, to explain that pending the adoption by the Congress of a concurrent resolution on the budget for fiscal year 2000, a provision in a reported bill or joint resolution, or in

an amendment thereto or a conference report thereon, that establishes a specified or minimum

level of compensation to be funded by annual discretionary appropriations should not be considered as providing new entitlement authority within the meaning of the Congressional Budget

Act of 1974. 2So in law. Probably should have been amended to read ‘‘section 302(a)’’.

TITLE IV—ADDITIONAL PROVISIONS TO IMPROVE FISCAL

PROCEDURES

PART A—GENERAL PROVISIONS

BUDGET-RELATED LEGISLATION NOT SUBJECT TO APPROPRIATIONS

SEC. 401. ø2 U.S.C. 651¿ (a) CONTROLS ON CERTAIN BUDGETRELATED LEGISLATION NOT SUBJECT TO APPROPRIATIONS.—It shall

not be in order in either the House of Representatives or the Senate to consider any bill or joint resolution (in the House of Representatives only, as reported), amendment, motion, or conference

report that provides—

(1) new authority to enter into contracts under which the

United States is obligated to make outlays;

(2) new authority to incur indebtedness (other than indebtedness incurred under chapter 31 of title 31 of the United

States Code) for the repayment of which the United States is

liable; or

(3) new credit authority;

unless that bill, joint resolution, amendment, motion, or conference

report also provides that the new authority is to be effective for any

fiscal year only to the extent or in the amounts provided in advance in appropriation Acts.

(b) LEGISLATION PROVIDING NEW ENTITLEMENT AUTHORITY.—

(1) POINT OF ORDER.—It shall not be in order in either the

House of Representatives or the Senate to consider any bill or

joint resolution (in the House of Representatives only, as reported), amendment, motion, or conference report that provides

new entitlement authority that is to become effective during

the current fiscal year. 1

(2) If any committee of the House of Representatives or the

Senate reports any bill or resolution which provides new entitlement authority which is to become effective during a fiscal

year and the amount of new budget authority which will be required for such fiscal year if such bill or resolution is enacted

as so reported exceeds the appropriate allocation of new budget

authority reported under section 302(b) 2 in connection with

the most recently agreed to concurrent resolution on the budget for such fiscal year, such bill or resolution shall then be referred to the Committee on Appropriations of the Senate or

may then be referred to the Committee on Appropriations of

the House, as the case may be, with instructions to report it,

with the committee’s recommendations, within 15 calendar

days (not counting any day on which that House is not in session) beginning with the day following the day on which it is

so referred. If the Committee on Appropriations of either

House fails to report a bill or resolution referred to it under

39 Sec. 402 CONGRESSIONAL BUDGET ACT OF 1974

1See clause 3(c)(3) of rule XIII of the Rules of the House of Representatives.

this paragraph within such 15–day period, the committee shall

automatically be discharged from further consideration of such

bill or resolution and such bill or resolution shall be placed on

the appropriate calendar.

(3) The Committee on Appropriations of each House shall

have jurisdiction to report any bill or resolution referred to it

under paragraph (2) with an amendment which limits the total

amount of new spending authority provided in such bill or

resolution.

(c) EXCEPTIONS.— (1) Subsections (a) and (b) shall not apply to new spending

authority if the budget authority for outlays which result from

such new spending authority is derived—

(A) from a trust fund established by the Social Security Act (as in effect on the date of the enactment of this

Act); or

(B) from any other trust fund, 90 percent or more of

the receipts of which consist or will consist of amounts

(transferred from the general fund of the Treasury) equivalent to amounts of taxes (related to the purposes for which

such outlays are or will be made) received in the Treasury

under specified provisions of the Internal Revenue Code of

1954.

(2) Subsections (a) and (b) shall not apply to new authority

described in those subsections to the extent that—

(A) the outlays resulting therefrom are made by an organization which is (i) a mixed-ownership Government corporation (as defined in section 201 of the Government Corporation Control Act), or (ii) a wholly owned Government

corporation (as defined in section 101 of such Act) which

is specifically exempted by law from compliance with any

or all of the provisions of that Act, as of the date of enactment of the Balanced Budget and Emergency Deficit Control Act of 1985; or

(B) the outlays resulting therefrom consist exclusively

of the proceeds of gifts or bequests made to the United

States for a specific purpose.

ANALYSIS BY CONGRESSIONAL BUDGET OFFICE

SEC. 402. 1 ø2 U.S.C. 653¿ The Director of the Congressional

Budget Office shall, to the extent practicable, prepare for each bill

or resolution of a public character reported by any committee of the

House of Representatives or the Senate (except the Committee on

Appropriations of each House), and submit to such committee—

(1) an estimate of the costs which would be incurred in

carrying out such bill or resolution in the fiscal year in which

it is to become effective and in each of the 4 fiscal years following such fiscal year, together with the basis for each such estimate;

(2) a comparison of the estimates of costs described in

paragraph (1), with any available estimates of costs made by

such committee or by any Federal agency; and

Sec. 404 CONGRESSIONAL BUDGET ACT OF 1974 40

1This part was added to title IV of the Congressional Budget and Impoundment Control Act

of 1974 by section 101(a)(2) of the Unfunded Mandates Reform Act of 1995 (P.L. 104–4; 109

Stat. 50).

(3) a description of each method for establishing a Federal

financial commitment contained in such bill or resolution.

The estimates, comparison, and description so submitted shall be

included in the report accompanying such bill or resolution if timely submitted to such committee before such report is filed.

* * * * * * *

STUDY BY THE GENERAL ACCOUNTING OFFICE OF FORMS OF FEDERAL

FINANCIAL COMMITMENT THAT ARE NOT REVIEWED ANNUALLY BY

CONGRESS

SEC. 404. ø2 U.S.C. 654¿ The General Accounting Office shall

study those provisions of law which provide mandatory spending

and report to the Congress its recommendations for the appropriate

form of financing for activities or programs financed by such provisions not later than eighteen months after the effective date of this

section. Such report shall be revised from time to time.

OFF-BUDGET AGENCIES, PROGRAMS, AND ACTIVITIES

SEC. 405. ø2 U.S.C. 655¿ (a) Notwithstanding any other provision of law, budget authority, credit authority, and estimates of

outlays and receipts for activities of the Federal budget which are

off-budget immediately prior to the date of enactment of this section, not including activities of the Federal Old-Age and Survivors

Insurance and Federal Disability Insurance Trust Funds, shall be

included in a budget submitted pursuant to section 1105 of title 31,

United States Code, and in a concurrent resolution on the budget

reported pursuant to section 301 or section 304 of this Act and

shall be considered, for purposes of this Act, budget authority, outlays, and spending authority in accordance with definitions set

forth in this Act.

(b) All receipts and disbursements of the Federal Financing

Bank with respect to any obligations which are issued, sold, or

guaranteed by a Federal agency shall be treated as a means of financing such agency for purposes of section 1105 of title 31, United

States Code, and for purposes of this Act.

MEMBER USER GROUP

SEC. 406. ø2 U.S.C. 656¿ The Speaker of the House of Representatives, after consulting with the Minority Leader of the

House, may appoint a Member User Group for the purpose of reviewing budgetary scorekeeping rules and practices of the House

and advising the Speaker from time to time on the effect and impact of such rules and practices.

PART B—FEDERAL MANDATES 1

SEC. 421. ø2 U.S.C. 658¿ DEFINITIONS.

For purposes of this part:

41 Sec. 421 CONGRESSIONAL BUDGET ACT OF 1974

(1) AGENCY.—The term ‘‘agency’’ has the same meaning as

defined in section 551(1) of title 5, United States Code, but

does not include independent regulatory agencies.

(2) AMOUNT.—The term ‘‘amount’’, with respect to an authorization of appropriations for Federal financial assistance,

means the amount of budget authority for any Federal grant

assistance program or any Federal program providing loan

guarantees or direct loans.

(3) DIRECT COSTS.—The term ‘‘direct costs’’—

(A)(i) in the case of a Federal intergovernmental mandate, means the aggregate estimated amounts that all

State, local, and tribal governments would be required to

spend or would be prohibited from raising in revenues in

order to comply with the Federal intergovernmental mandate; or

(ii) in the case of a provision referred to in paragraph

(5)(A)(ii), means the amount of Federal financial assistance

eliminated or reduced;

(B) in the case of a Federal private sector mandate,

means the aggregate estimated amounts that the private

sector will be required to spend in order to comply with

the Federal private sector mandate;

(C) shall be determined on the assumption that—

(i) State, local, and tribal governments, and the

private sector will take all reasonable steps necessary

to mitigate the costs resulting from the Federal mandate, and will comply with applicable standards of

practice and conduct established by recognized professional or trade associations; and

(ii) reasonable steps to mitigate the costs shall not

include increases in State, local, or tribal taxes or fees;

and

(D) shall not include—

(i) estimated amounts that the State, local, and

tribal governments (in the case of a Federal intergovernmental mandate) or the private sector (in the case

of a Federal private sector mandate) would spend—

(I) to comply with or carry out all applicable

Federal, State, local, and tribal laws and regulations in effect at the time of the adoption of the

Federal mandate for the same activity as is affected by that Federal mandate; or

(II) to comply with or carry out State, local,

and tribal governmental programs, or private-sector business or other activities in effect at the

time of the adoption of the Federal mandate for

the same activity as is affected by that mandate;

or

(ii) expenditures to the extent that such expenditures will be offset by any direct savings to the State,

local, and tribal governments, or by the private sector,

as a result of—

(I) compliance with the Federal mandate; or

Sec. 421 CONGRESSIONAL BUDGET ACT OF 1974 42

1So in original. Second closing parenthesis probably should not appear.

(II) other changes in Federal law or regulation that are enacted or adopted in the same bill

or joint resolution or proposed or final Federal

regulation and that govern the same activity as is

affected by the Federal mandate.

(4) DIRECT SAVINGS.—The term ‘‘direct savings’’, when

used with respect to the result of compliance with the Federal

mandate—

(A) in the case of a Federal intergovernmental mandate, means the aggregate estimated reduction in costs to

any State, local, or tribal government as a result of compliance with the Federal intergovernmental mandate; and

(B) in the case of a Federal private sector mandate,

means the aggregate estimated reduction in costs to the

private sector as a result of compliance with the Federal

private sector mandate.

(5) FEDERAL INTERGOVERNMENTAL MANDATE.—The term

‘‘Federal intergovernmental mandate’’ means—

(A) any provision in legislation, statute, or regulation

that—

(i) would impose an enforceable duty upon State,

local, or tribal governments, except—

(I) a condition of Federal assistance; or

(II) a duty arising from participation in a voluntary Federal program, except as provided in

subparagraph (B)) 1; or

(ii) would reduce or eliminate the amount of authorization of appropriations for—

(I) Federal financial assistance that would be

provided to State, local, or tribal governments for

the purpose of complying with any such previously

imposed duty unless such duty is reduced or eliminated by a corresponding amount; or

(II) the control of borders by the Federal Government; or reimbursement to State, local, or tribal governments for the net cost associated with illegal, deportable, and excludable aliens, including

court-mandated expenses related to emergency

health care, education or criminal justice; when

such a reduction or elimination would result in increased net costs to State, local, or tribal governments in providing education or emergency health

care to, or incarceration of, illegal aliens; except

that this subclause shall not be in effect with respect to a State, local, or tribal government, to the

extent that such government has not fully cooperated in the efforts of the Federal Government to

locate, apprehend, and deport illegal aliens;

(B) any provision in legislation, statute, or regulation

that relates to a then-existing Federal program under

which $500,000,000 or more is provided annually to State,

43 Sec. 421 CONGRESSIONAL BUDGET ACT OF 1974

local, and tribal governments under entitlement authority,

if the provision—

(i)(I) would increase the stringency of conditions of

assistance to State, local, or tribal governments under

the program; or

(II) would place caps upon, or otherwise decrease,

the Federal Government’s responsibility to provide

funding to State, local, or tribal governments under

the program; and

(ii) the State, local, or tribal governments that

participate in the Federal program lack authority

under that program to amend their financial or programmatic responsibilities to continue providing required services that are affected by the legislation,

statute, or regulation.

(6) FEDERAL MANDATE.—The term ‘‘Federal mandate’’

means a Federal intergovernmental mandate or a Federal private sector mandate, as defined in paragraphs (5) and (7).

(7) FEDERAL PRIVATE SECTOR MANDATE.—The term ‘‘Federal private sector mandate’’ means any provision in legislation, statute, or regulation that—

(A) would impose an enforceable duty upon the private

sector except—

(i) a condition of Federal assistance; or

(ii) a duty arising from participation in a voluntary Federal program; or

(B) would reduce or eliminate the amount of authorization of appropriations for Federal financial assistance

that will be provided to the private sector for the purposes

of ensuring compliance with such duty.

(8) LOCAL GOVERNMENT.—The term ‘‘local government’’ has

the same meaning as defined in section 6501(6) of title 31,

United States Code.

(9) PRIVATE SECTOR.—The term ‘‘private sector’’ means all

persons or entities in the United States, including individuals,

partnerships, associations, corporations, and educational and

nonprofit institutions, but shall not include State, local, or tribal governments.

(10) REGULATION; RULE.—The term ‘‘regulation’’ or ‘‘rule’’

(except with respect to a rule of either House of the Congress)

has the meaning of ‘‘rule’’ as defined in section 601(2) of title

5, United States Code.

(11) SMALL GOVERNMENT.—The term ‘‘small government’’

means any small governmental jurisdictions defined in section

601(5) of title 5, United States Code, and any tribal government.

(12) STATE.—The term ‘‘State’’ has the same meaning as

defined in section 6501(9) of title 31, United States Code.

(13) TRIBAL GOVERNMENT.—The term ‘‘tribal government’’

means any Indian tribe, band, nation, or other organized group

or community, including any Alaska Native village or regional

or village corporation as defined in or established pursuant to

the Alaska Native Claims Settlement Act (85 Stat. 688; 43

U.S.C. 1601 et seq.) which is recognized as eligible for the speVerDate 11-SEP-98 15:16 May 02, 2000 Jkt 000000 PO 00000 Frm 00043 Fmt 9001 Sfmt 9001 H:\DOCS\CP4COM~1\53587.TXT HBUDGET1 PsN: HBUDGET1
Sec. 422 CONGRESSIONAL BUDGET ACT OF 1974 44

cial programs and services provided by the United States to Indians because of their special status as Indians.

SEC. 422. ø2 U.S.C. 658a¿ EXCLUSIONS.

This part shall not apply to any provision in a bill, joint resolution, amendment, motion, or conference report before Congress

that—

(1) enforces constitutional rights of individuals;

(2) establishes or enforces any statutory rights that prohibit discrimination on the basis of race, color, religion, sex,

national origin, age, handicap, or disability;

(3) requires compliance with accounting and auditing procedures with respect to grants or other money or property provided by the Federal Government;

(4) provides for emergency assistance or relief at the request of any State, local, or tribal government or any official

of a State, local, or tribal government;

(5) is necessary for the national security or the ratification

or implementation of international treaty obligations;

(6) the President designates as emergency legislation and

that the Congress so designates in statute; or

(7) relates to the old-age, survivors, and disability insurance program under title II of the Social Security Act (including taxes imposed by sections 3101(a) and 3111(a) of the Internal Revenue Code of 1986 (relating to old-age, survivors, and

disability insurance)).

SEC. 423. ø2 U.S.C. 658b¿ DUTIES OF CONGRESSIONAL COMMITTEES.

(a) IN GENERAL.—When a committee of authorization of the

Senate or the House of Representatives reports a bill or joint resolution of public character that includes any Federal mandate, the

report of the committee accompanying the bill or joint resolution

shall contain the information required by subsections (c) and (d).

(b) SUBMISSION OF BILLS TO THE DIRECTOR.—When a committee of authorization of the Senate or the House of Representatives

orders reported a bill or joint resolution of a public character, the

committee shall promptly provide the bill or joint resolution to the

Director of the Congressional Budget Office and shall identify to

the Director any Federal mandates contained in the bill or resolution.

(c) REPORTS ON FEDERAL MANDATES.—Each report described

under subsection (a) shall contain—

(1) an identification and description of any Federal mandates in the bill or joint resolution, including the direct costs

to State, local, and tribal governments, and to the private sector, required to comply with the Federal mandates;

(2) a qualitative, and if practicable, a quantitative assessment of costs and benefits anticipated from the Federal mandates (including the effects on health and safety and the protection of the natural environment); and

(3) a statement of the degree to which a Federal mandate

affects both the public and private sectors and the extent to

which Federal payment of public sector costs or the modification or termination of the Federal mandate as provided under

section 425(a)(2) would affect the competitive balance between

45 Sec. 423 CONGRESSIONAL BUDGET ACT OF 1974

State, local, or tribal governments and the private sector including a description of the actions, if any, taken by the committee to avoid any adverse impact on the private sector or the

competitive balance between the public sector and the private

sector.

(d) INTERGOVERNMENTAL MANDATES.—If any of the Federal

mandates in the bill or joint resolution are Federal intergovernmental mandates, the report required under subsection (a) shall

also contain—

(1)(A) a statement of the amount, if any, of increase or decrease in authorization of appropriations under existing Federal financial assistance programs, or of authorization of appropriations for new Federal financial assistance, provided by

the bill or joint resolution and usable for activities of State,

local, or tribal governments subject to the Federal intergovernmental mandates;

(B) a statement of whether the committee intends that the

Federal intergovernmental mandates be partly or entirely unfunded, and if so, the reasons for that intention; and

(C) if funded in whole or in part, a statement of whether

and how the committee has created a mechanism to allocate

the funding in a manner that is reasonably consistent with the

expected direct costs among and between the respective levels

of State, local, and tribal government;

(2) any existing sources of Federal assistance in addition

to those identified in paragraph (1) that may assist State, local,

and tribal governments in meeting the direct costs of the Federal intergovernmental mandates; and

(3) if the bill or joint resolution would make the reduction

specified in section 421(5)(B)(i)(II), a statement of how the committee specifically intends the States to implement the reduction and to what extent the legislation provides additional

flexibility, if any, to offset the reduction.

(e) PREEMPTION CLARIFICATION AND INFORMATION.—When a

committee of authorization of the Senate or the House of Representatives reports a bill or joint resolution of public character,

the committee report accompanying the bill or joint resolution shall

contain, if relevant to the bill or joint resolution, an explicit statement on the extent to which the bill or joint resolution is intended

to preempt any State, local, or tribal law, and, if so, an explanation

of the effect of such preemption.

(f) PUBLICATION OF STATEMENT FROM THE DIRECTOR.—

(1) IN GENERAL.—Upon receiving a statement from the Director under section 424, a committee of the Senate or the

House of Representatives shall publish the statement in the

committee report accompanying the bill or joint resolution to

which the statement relates if the statement is available at the

time the report is printed.

(2) OTHER PUBLICATION OF STATEMENT OF DIRECTOR.—If

the statement is not published in the report, or if the bill or

joint resolution to which the statement relates is expected to

be considered by the Senate or the House of Representatives

before the report is published, the committee shall cause the

statement, or a summary thereof, to be published in the ConVerDate 11-SEP-98 15:16 May 02, 2000 Jkt 000000 PO 00000 Frm 00045 Fmt 9001 Sfmt 9001 H:\DOCS\CP4COM~1\53587.TXT HBUDGET1 PsN: HBUDGET1
Sec. 424 CONGRESSIONAL BUDGET ACT OF 1974 46

gressional Record in advance of floor consideration of the bill

or joint resolution.

SEC. 424. ø2 U.S.C. 658c¿ DUTIES OF THE DIRECTOR; STATEMENTS ON

BILLS AND JOINT RESOLUTIONS OTHER THAN APPROPRIATIONS BILLS AND JOINT RESOLUTIONS.

(a) FEDERAL INTERGOVERNMENTAL MANDATES IN REPORTED

BILLS AND RESOLUTIONS.—For each bill or joint resolution of a public character reported by any committee of authorization of the

Senate or the House of Representatives, the Director of the Congressional Budget Office shall prepare and submit to the committee

a statement as follows:

(1) CONTENTS.—If the Director estimates that the direct

cost of all Federal intergovernmental mandates in the bill or

joint resolution will equal or exceed $50,000,000 (adjusted annually for inflation) in the fiscal year in which any Federal

intergovernmental mandate in the bill or joint resolution (or in

any necessary implementing regulation) would first be effective

or in any of the 4 fiscal years following such fiscal year, the

Director shall so state, specify the estimate, and briefly explain

the basis of the estimate.

(2) ESTIMATES.—Estimates required under paragraph (1)

shall include estimates (and brief explanations of the basis of

the estimates) of—

(A) the total amount of direct cost of complying with

the Federal intergovernmental mandates in the bill or

joint resolution;

(B) if the bill or resolution contains an authorization

of appropriations under section 425(a)(2)(B), the amount of

new budget authority for each fiscal year for a period not

to exceed 10 years beyond the effective date necessary for

the direct cost of the intergovernmental mandate; and

(C) the amount, if any, of increase in authorization of

appropriations under existing Federal financial assistance

programs, or of authorization of appropriations for new

Federal financial assistance, provided by the bill or joint

resolution and usable by State, local, or tribal governments

for activities subject to the Federal intergovernmental

mandates.

(3) ADDITIONAL FLEXIBILITY INFORMATION.—The Director

shall include in the statement submitted under this subsection,

in the case of legislation that makes changes as described in

section 421(5)(B)(i)(II)—

(A) if no additional flexibility is provided in the legislation, a description of whether and how the States can offset the reduction under existing law; or

(B) if additional flexibility is provided in the legislation, whether the resulting savings would offset the reductions in that program assuming the States fully implement

that additional flexibility.

(4) ESTIMATE NOT FEASIBLE.—If the Director determines

that it is not feasible to make a reasonable estimate that would

be required under paragraphs (1) and (2), the Director shall

not make the estimate, but shall report in the statement that

the reasonable estimate cannot be made and shall include the

47 Sec. 424 CONGRESSIONAL BUDGET ACT OF 1974

reasons for that determination in the statement. If such determination is made by the Director, a point of order under this

part shall lie only under section 425(a)(1) and as if the requirement of section 425(a)(1) had not been met.

(b) FEDERAL PRIVATE SECTOR MANDATES IN REPORTED BILLS

AND JOINT RESOLUTIONS.—For each bill or joint resolution of a public character reported by any committee of authorization of the

Senate or the House of Representatives, the Director of the Congressional Budget Office shall prepare and submit to the committee

a statement as follows:

(1) CONTENTS.—If the Director estimates that the direct

cost of all Federal private sector mandates in the bill or joint

resolution will equal or exceed $100,000,000 (adjusted annually

for inflation) in the fiscal year in which any Federal private

sector mandate in the bill or joint resolution (or in any necessary implementing regulation) would first be effective or in

any of the 4 fiscal years following such fiscal year, the Director

shall so state, specify the estimate, and briefly explain the

basis of the estimate.

(2) ESTIMATES.—Estimates required under paragraph (1)

shall include estimates (and a brief explanation of the basis of

the estimates) of—

(A) the total amount of direct costs of complying with

the Federal private sector mandates in the bill or joint resolution; and

(B) the amount, if any, of increase in authorization of

appropriations under existing Federal financial assistance

programs, or of authorization of appropriations for new

Federal financial assistance, provided by the bill or joint

resolution usable by the private sector for the activities

subject to the Federal private sector mandates.

(3) ESTIMATE NOT FEASIBLE.—If the Director determines

that it is not feasible to make a reasonable estimate that would

be required under paragraphs (1) and (2), the Director shall

not make the estimate, but shall report in the statement that

the reasonable estimate cannot be made and shall include the

reasons for that determination in the statement.

(c) LEGISLATION FALLING BELOW THE DIRECT COSTS THRESHOLDS.—If the Director estimates that the direct costs of a Federal

mandate will not equal or exceed the thresholds specified in subsections (a) and (b), the Director shall so state and shall briefly explain the basis of the estimate.

(d) AMENDED BILLS AND JOINT RESOLUTIONS; CONFERENCE REPORTS.—If a bill or joint resolution is passed in an amended form

(including if passed by one House as an amendment in the nature

of a substitute for the text of a bill or joint resolution from the

other House) or is reported by a committee of conference in amended form, and the amended form contains a Federal mandate not

previously considered by either House or which contains an increase in the direct cost of a previously considered Federal mandate, then the committee of conference shall ensure, to the greatest

extent practicable, that the Director shall prepare a statement as

provided in this subsection or a supplemental statement for the bill

or joint resolution in that amended form.

Sec. 425 CONGRESSIONAL BUDGET ACT OF 1974 48

1 Clause 11(a) of Rule XVIII of the Rules of the House of Representatives provides for the enforcement of this section. Such paragraph provides as follows:

(a) In the Committee of the Whole on the state of the Union, an amendment proposing only

to strike an unfunded mandate from the portion of the bill then open to amendment, if otherwise in order, may be precluded from consideration only by specific terms of a special order of

the House.

SEC. 425. ø2 U.S.C. 658d¿ LEGISLATION SUBJECT TO POINT OF ORDER. 1

(a) IN GENERAL.—It shall not be in order in the Senate or the

House of Representatives to consider—

(1) any bill or joint resolution that is reported by a committee unless the committee has published a statement of the

Director on the direct costs of Federal mandates in accordance

with section 423(f) before such consideration, except this paragraph shall not apply to any supplemental statement prepared

by the Director under section 424(d); and

(2) any bill, joint resolution, amendment, motion, or conference report that would increase the direct costs of Federal

intergovernmental mandates by an amount that causes the

thresholds specified in section 424(a)(1) to be exceeded, unless—

(A) the bill, joint resolution, amendment, motion, or

conference report provides new budget authority or new

entitlement authority in the House of Representatives or

direct spending authority in the Senate for each fiscal year

for such mandates included in the bill, joint resolution,

amendment, motion, or conference report in an amount

equal to or exceeding the direct costs of such mandate; or

(B) the bill, joint resolution, amendment, motion, or

conference report includes an authorization for appropriations in an amount equal to or exceeding the direct costs

of such mandate, and—

(i) identifies a specific dollar amount of the direct

costs of such mandate for each year up to 10 years

during which such mandate shall be in effect under

the bill, joint resolution, amendment, motion or conference report, and such estimate is consistent with

the estimate determined under subsection (e) for each

fiscal year;

(ii) identifies any appropriation bill that is expected to provide for Federal funding of the direct cost

referred to under clause (i); and

(iii)(I) provides that for any fiscal year the responsible Federal agency shall determine whether there

are insufficient appropriations for that fiscal year to

provide for the direct costs under clause (i) of such

mandate, and shall (no later than 30 days after the

beginning of the fiscal year) notify the appropriate authorizing committees of Congress of the determination

and submit either—

(aa) a statement that the agency has determined, based on a re-estimate of the direct costs

of such mandate, after consultation with State,

local, and tribal governments, that the amount appropriated is sufficient to pay for the direct costs

of such mandate; or

49 Sec. 425 CONGRESSIONAL BUDGET ACT OF 1974

(bb) legislative recommendations for either

implementing a less costly mandate or making

such mandate ineffective for the fiscal year;

(II) provides for expedited procedures for the consideration of the statement or legislative recommendations referred to in subclause (I) by Congress no later

than 30 days after the statement or recommendations

are submitted to Congress; and

(III) provides that such mandate shall—

(aa) in the case of a statement referred to in

subclause (I)(aa), cease to be effective 60 days

after the statement is submitted unless Congress

has approved the agency’s determination by joint

resolution during the 60-day period;

(bb) cease to be effective 60 days after the

date the legislative recommendations of the responsible Federal agency are submitted to Congress under subclause (I)(bb) unless Congress provides otherwise by law; or

(cc) in the case that such mandate that has

not yet taken effect, continue not to be effective

unless Congress provides otherwise by law.

(b) RULE OF CONSTRUCTION.—The provisions of subsection

(a)(2)(B)(iii) shall not be construed to prohibit or otherwise restrict

a State, local, or tribal government from voluntarily electing to remain subject to the original Federal intergovernmental mandate,

complying with the programmatic or financial responsibilities of

the original Federal intergovernmental mandate and providing the

funding necessary consistent with the costs of Federal agency assistance, monitoring, and enforcement.

(c) COMMITTEE ON APPROPRIATIONS.— (1) APPLICATION.—The provisions of subsection (a)—

(A) shall not apply to any bill or resolution reported by

the Committee on Appropriations of the Senate or the

House of Representatives; except

(B) shall apply to—

(i) any legislative provision increasing direct costs

of a Federal intergovernmental mandate contained in

any bill or resolution reported by the Committee on

Appropriations of the Senate or House of Representatives;

(ii) any legislative provision increasing direct costs

of a Federal intergovernmental mandate contained in

any amendment offered to a bill or resolution reported

by the Committee on Appropriations of the Senate or

House of Representatives;

(iii) any legislative provision increasing direct

costs of a Federal intergovernmental mandate in a

conference report accompanying a bill or resolution reported by the Committee on Appropriations of the Senate or House of Representatives; and

(iv) any legislative provision increasing direct

costs of a Federal intergovernmental mandate contained in any amendments in disagreement between

Sec. 426 CONGRESSIONAL BUDGET ACT OF 1974 50

the two Houses to any bill or resolution reported by

the Committee on Appropriations of the Senate or

House of Representatives.

(2) CERTAIN PROVISIONS STRICKEN IN SENATE.—Upon a

point of order being made by any Senator against any provision listed in paragraph (1)(B), and the point of order being

sustained by the Chair, such specific provision shall be deemed

stricken from the bill, resolution, amendment, amendment in

disagreement, or conference report and may not be offered as

an amendment from the floor.

(d) DETERMINATIONS OF APPLICABILITY TO PENDING LEGISLATION.—For purposes of this section, in the Senate, the presiding officer of the Senate shall consult with the Committee on Governmental Affairs, to the extent practicable, on questions concerning

the applicability of this part to a pending bill, joint resolution,

amendment, motion, or conference report.

(e) DETERMINATIONS OF FEDERAL MANDATE LEVELS.—For purposes of this section, in the Senate, the levels of Federal mandates

for a fiscal year shall be determined based on the estimates made

by the Committee on the Budget.

SEC. 426. ø2 U.S.C. 658e¿ PROVISIONS RELATING TO THE HOUSE OF

REPRESENTATIVES.

(a) ENFORCEMENT IN THE HOUSE OF REPRESENTATIVES.—It

shall not be in order in the House of Representatives to consider

a rule or order that waives the application of section 425.

(b) DISPOSITION OF POINTS OF ORDER.—

(1) APPLICATION TO THE HOUSE OF REPRESENTATIVES.—This

subsection shall apply only to the House of Representatives.

(2) THRESHOLD BURDEN.—In order to be cognizable by the

Chair, a point of order under section 425 or subsection (a) of

this section must specify the precise language on which it is

premised.

(3) QUESTION OF CONSIDERATION.—As disposition of points

of order under section 425 or subsection (a) of this section, the

Chair shall put the question of consideration with respect to

the proposition that is the subject of the points of order.

(4) DEBATE AND INTERVENING MOTIONS.—A question of consideration under this section shall be debatable for 10 minutes

by each Member initiating a point of order and for 10 minutes

by an opponent on each point of order, but shall otherwise be

decided without intervening motion except one that the House

adjourn or that the Committee of the Whole rise, as the case

may be.

(5) EFFECT ON AMENDMENT IN ORDER AS ORIGINAL TEXT.— The disposition of the question of consideration under this subsection with respect to a bill or joint resolution shall be considered also to determine the question of consideration under this

subsection with respect to an amendment made in order as

original text.

SEC. 427. ø2 U.S.C. 658f¿ REQUESTS TO THE CONGRESSIONAL BUDGET

OFFICE FROM SENATORS.

At the written request of a Senator, the Director shall, to the

extent practicable, prepare an estimate of the direct costs of a FedVerDate 11-SEP-98 15:16 May 02, 2000 Jkt 000000 PO 00000 Frm 00050 Fmt 9001 Sfmt 9001 H:\DOCS\CP4COM~1\53587.TXT HBUDGET1 PsN: HBUDGET1
51 Sec. 500 CONGRESSIONAL BUDGET ACT OF 1974

eral intergovernmental mandate contained in an amendment of

such Senator.

SEC. 428. ø2 U.S.C. 658g¿ CLARIFICATION OF APPLICATION.

(a) IN GENERAL.—This part applies to any bill, joint resolution,

amendment, motion, or conference report that reauthorizes appropriations, or that amends existing authorizations of appropriations,

to carry out any statute, or that otherwise amends any statute,

only if enactment of the bill, joint resolution, amendment, motion,

or conference report—

(1) would result in a net reduction in or elimination of authorization of appropriations for Federal financial assistance

that would be provided to State, local, or tribal governments

for use for the purpose of complying with any Federal intergovernmental mandate, or to the private sector for use to comply

with any Federal private sector mandate, and would not eliminate or reduce duties established by the Federal mandate by

a corresponding amount; or

(2) would result in a net increase in the aggregate amount

of direct costs of Federal intergovernmental mandates or Federal private sector mandates other than as described in paragraph (1).

(b) DIRECT COSTS.— (1) IN GENERAL.—For purposes of this part, the direct cost

of the Federal mandates in a bill, joint resolution, amendment,

motion, or conference report that reauthorizes appropriations,

or that amends existing authorizations of appropriations, to

carry out a statute, or that otherwise amends any statute,

means the net increase, resulting from enactment of the bill,

joint resolution, amendment, motion, or conference report, in

the amount described under paragraph (2)(A) over the amount

described under paragraph (2)(B).

(2) AMOUNTS.—The amounts referred to under paragraph

(1) are—

(A) the aggregate amount of direct costs of Federal

mandates that would result under the statute if the bill,

joint resolution, amendment, motion, or conference report

is enacted; and

(B) the aggregate amount of direct costs of Federal

mandates that would result under the statute if the bill,

joint resolution, amendment, motion, or conference report

were not enacted.

(3) EXTENSION OF AUTHORIZATION OF APPROPRIATIONS.— For purposes of this section, in the case of legislation to extend

authorization of appropriations, the authorization level that

would be provided by the extension shall be compared to the

authorization level for the last year in which authorization of

appropriations is already provided.

TITLE V—CREDIT REFORM

SEC. 500. SHORT TITLE.

This title may be cited as the ‘‘Federal Credit Reform Act of

1990’’.

Sec. 501 CONGRESSIONAL BUDGET ACT OF 1974 52

SEC. 501. ø2 U.S.C. 661¿ PURPOSES.

The purposes of this title are to—

(1) measure more accurately the costs of Federal credit

programs;

(2) place the cost of credit programs on a budgetary basis

equivalent to other Federal spending;

(3) encourage the delivery of benefits in the form most appropriate to the needs of beneficiaries; and

(4) improve the allocation of resources among credit programs and between credit and other spending programs.

SEC. 502. ø2 U.S.C. 661a¿ DEFINITIONS.

For purposes of this title—

(1) The term ‘‘direct loan’’ means a disbursement of funds

by the Government to a non-Federal borrower under a contract

that requires the repayment of such funds with or without interest. The term includes the purchase of, or participation in,

a loan made by another lender and financing arrangements

that defer payment for more than 90 days, including the sale

of a government asset on credit terms. The term does not include the acquisition of a federally guaranteed loan in satisfaction of default claims or the price support loans of the Commodity Credit Corporation.

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

agreement by a Federal agency to make a direct loan when

specified conditions are fulfilled by the borrower.

(3) The term ‘‘loan guarantee’’ means any guarantee, insurance, or other pledge with respect to the payment of all or

a part of the principal or interest on any debt obligation of a

non-Federal borrower to a non-Federal lender, but does not include the insurance of deposits, shares, or other withdrawable

accounts in financial institutions.

(4) The term ‘‘loan guarantee commitment’’ means a binding agreement by a Federal agency to make a loan guarantee

when specified conditions are fulfilled by the borrower, the

lender, or any other party to the guarantee agreement.

(5)(A) The term ‘‘cost’’ means the estimated long-term cost

to the Government of a direct loan or loan guarantee or modification thereof, calculated on a net present value basis, excluding administrative costs and any incidental effects on governmental receipts or outlays.

(B) The cost of a direct loan shall be the net present value,

at the time when the direct loan is disbursed, of the following

estimated cash flows:

(i) loan disbursements;

(ii) repayments of principal; and

(iii) payments of interest and other payments by or to

the Government over the life of the loan after adjusting for

estimated defaults, prepayments, fees, penalties, and other

recoveries;

including the effects of changes in loan terms resulting from

the exercise by the borrower of an option included in the loan

contract.

53 Sec. 502 CONGRESSIONAL BUDGET ACT OF 1974

(C) The cost of a loan guarantee shall be the net present

value, at the time when the guaranteed loan is disbursed, of

the following estimated cash flows:

(i) payments by the Government to cover defaults and

delinquencies, interest subsidies, or other payments; and

(ii) payments to the Government including origination

and other fees, penalties and recoveries;

including the effects of changes in loan terms resulting from

the exercise by the guaranteed lender of an option included in

the loan guarantee contract, or by the borrower of an option included in the guaranteed loan contract.

(D) The cost of a modification is the difference between the

current estimate of the net present value of the remaining cash

flows under the terms of a direct loan or loan guarantee contract, and the current estimate of the net present value of the

remaining cash flows under the terms of the contract, as

modified.

(E) In estimating net present values, the discount rate

shall be the average interest rate on marketable Treasury securities of similar maturity to the cash flows of the direct loan

or loan guarantee for which the estimate is being made.

(F) When funds are obligated for a direct loan or loan

guarantee, the estimated cost shall be based on the current assumptions, adjusted to incorporate the terms of the loan contract, for the fiscal year in which the funds are obligated.

(6) The term ‘‘credit program account’’ means the budget

account into which an appropriation to cover the cost of a direct loan or loan guarantee program is made and from which

such cost is disbursed to the financing account.

(7) The term ‘‘financing account’’ means the non-budget account or accounts associated with each credit program account

which holds balances, receives the cost payment from the credit program account, and also includes all other cash flows to

and from the Government resulting from direct loan obligations or loan guarantee commitments made on or after October

1, 1991.

(8) The term ‘‘liquidating account’’ means the budget account that includes all cash flows to and from the Government

resulting from direct loan obligations or loan guarantee commitments made prior to October 1, 1991. These accounts shall

be shown in the budget on a cash basis.

(9) The term ‘‘modification’’ means any Government action

that alters the estimated cost of an outstanding direct loan (or

direct loan obligation) or an outstanding loan guarantee (or

loan guarantee commitment) from the current estimate of cash

flows. This includes the sale of loan assets, with or without recourse, and the purchase of guaranteed loans. This also includes any action resulting from new legislation, or from the

exercise of administrative discretion under existing law, that

directly or indirectly alters the estimated cost of outstanding

direct loans (or direct loan obligations) or loan guarantees (or

loan guarantee commitments) such as a change in collection

procedures.

Sec. 503 CONGRESSIONAL BUDGET ACT OF 1974 54

(10) The term ‘‘current’’ has the same meaning as in section 250(c)(9) of the Balanced Budget and Emergency Deficit

Control Act of 1985.

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

of Management and Budget.

SEC. 503. ø2 U.S.C. 661b¿ OMB AND CBO ANALYSIS, COORDINATION,

AND REVIEW.

(a) IN GENERAL.—For the executive branch, the Director shall

be responsible for coordinating the estimates required by this title.

The Director shall consult with the agencies that administer direct

loan or loan guarantee programs.

(b) DELEGATION.—The Director may delegate to agencies authority to make estimates of costs. The delegation of authority shall

be based upon written guidelines, regulations, or criteria consistent

with the definitions in this title.

(c) COORDINATION WITH THE CONGRESSIONAL BUDGET OFFICE.—In developing estimation guidelines, regulations, or criteria

to be used by Federal agencies, the Director shall consult with the

Director of the Congressional Budget Office.

(d) IMPROVING COST ESTIMATES.—The Director and the Director of the Congressional Budget Office shall coordinate the development of more accurate data on historical performance of direct loan

and loan guarantee programs. They shall annually review the performance of outstanding direct loans and loan guarantees to improve estimates of costs. The Office of Management and Budget

and the Congressional Budget Office shall have access to all agency

data that may facilitate the development and improvement of estimates of costs.

(e) HISTORICAL CREDIT PROGRAM COSTS.—The Director shall

review, to the extent possible, historical data and develop the best

possible estimates of adjustments that would convert aggregate historical budget data to credit reform accounting.

(f) ADMINISTRATIVE COSTS.—The Director and the Director of

the Congressional Budget Office shall each analyze and report to

Congress on differences in long-term administrative costs for credit

programs versus grant programs by January 31, 1992. Their reports shall recommend to Congress any changes, if necessary, in

the treatment of administrative costs under credit reform accounting.

SEC. 504. ø2 U.S.C. 661c¿ BUDGETARY TREATMENT.

(a) PRESIDENT’S BUDGET.—Beginning with fiscal year 1992, the

President’s budget shall reflect the costs of direct loan and loan

guarantee programs. The budget shall also include the planned

level of new direct loan obligations or loan guarantee commitments

associated with each appropriations request.

(b) APPROPRIATIONS REQUIRED.—Notwithstanding any other

provision of law, new direct loan obligations may be incurred and

new loan guarantee commitments may be made for fiscal year 1992

and thereafter only to the extent that—

(1) new budget authority to cover their costs is provided in

advance in an appropriations Act;

55 Sec. 505 CONGRESSIONAL BUDGET ACT OF 1974

(2) a limitation on the use of funds otherwise available for

the cost of a direct loan or loan guarantee program has been

provided in advance in an appropriations Act; or

(3) authority is otherwise provided in appropriation Acts.

(c) EXEMPTION FOR MANDATORY PROGRAMS.—Subsections (b)

and (e) shall not apply to a direct loan or loan guarantee program

that—

(1) constitutes an entitlement (such as the guaranteed student loan program or the veterans’ home loan guaranty program); or

(2) all existing credit programs of the Commodity Credit

Corporation on the date of enactment of this title.

(d) BUDGET ACCOUNTING.—

(1) The authority to incur new direct loan obligations,

make new loan guarantee commitments, or modify outstanding

direct loans (or direct loan obligations) or loan guarantees (or

loan guarantee commitments) shall constitute new budget authority in an amount equal to the cost of the direct loan or loan

guarantee in the fiscal year in which definite authority becomes available or indefinite authority is used. Such budget

authority shall constitute an obligation of the credit program

account to pay to the financing account.

(2) The outlays resulting from new budget authority for

the cost of direct loans or loan guarantees described in paragraph (1) shall be paid from the credit program account into

the financing account and recorded in the fiscal year in which

the direct loan or the guaranteed loan is disbursed or its costs

altered.

(3) All collections and payments of the financing accounts

shall be a means of financing.

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

obligation) or loan guarantee (or loan guarantee commitment) shall

not be modified in a manner that increases its costs unless budget

authority for the additional cost has been provided in advance in

an appropriations Act.

(f) REESTIMATES.—When the estimated cost for a group of direct loans or loan guarantees for a given credit program made in

a single fiscal year is reestimated in a subsequent year, the difference between the reestimated cost and the previous cost estimate shall be displayed as a distinct and separately identified subaccount in the credit program account as a change in program costs

and a change in net interest. There is hereby provided permanent

indefinite authority for these reestimates.

(g) ADMINISTRATIVE EXPENSES.—All funding for an agency’s administration of a direct loan or loan guarantee program shall be

displayed as distinct and separately identified subaccounts within

the same budget account as the program’s cost.

SEC. 505. ø2 U.S.C. 661d¿ AUTHORIZATIONS.

(a) AUTHORIZATION OF APPROPRIATIONS FOR COSTS.—There are

authorized to be appropriated to each Federal agency authorized to

make direct loan obligations or loan guarantee commitments, such

sums as may be necessary to pay the cost associated with such direct loan obligations or loan guarantee commitments.

Sec. 505 CONGRESSIONAL BUDGET ACT OF 1974 56

1So in law. Probably should read ‘‘section 405(b)’’.

(b) AUTHORIZATION FOR FINANCING ACCOUNTS.—In order to implement the accounting required by this title, the President is authorized to establish such non-budgetary accounts as may be appropriate.

(c) TREASURY TRANSACTIONS WITH THE FINANCING ACCOUNTS.—The Secretary of the Treasury shall borrow from, receive

from, lend to, or pay to the financing accounts such amounts as

may be appropriate. The Secretary of the Treasury may prescribe

forms and denominations, maturities, and terms and conditions for

the transactions described above, except that the rate of interest

charged by the Secretary on lending to financing accounts (including amounts treated as lending to financing accounts by the Federal Financing Bank (hereinafter in this subsection referred to as

the ‘‘Bank’’) pursuant to section 406(b) 1) and the rate of interest

paid to financing accounts on uninvested balances in financing accounts shall be the same as the rate determined pursuant to section 502(5)(E). For guaranteed loans financed by the Bank and

treated as direct loans by a Federal agency pursuant to section

406(b) 1, any fee or interest surcharge (the amount by which the interest rate charged exceeds the rate determined pursuant to section

502(5)(E)) that the Bank charges to a private borrower pursuant to

section 6(c) of the Federal Financing Bank Act of 1973 shall be considered a cash flow to the Government for the purposes of determining the cost of the direct loan pursuant to section 502(5). All

such amounts shall be credited to the appropriate financing account. The Bank is authorized to require reimbursement from a

Federal agency to cover the administrative expenses of the Bank

that are attributable to the direct loans financed for that agency.

All such payments by an agency shall be considered administrative

expenses subject to section 504(g). This subsection shall apply to

transactions related to direct loan obligations or loan guarantee

commitments made on or after October 1, 1991. The authorities described above shall not be construed to supersede or override the

authority of the head of a Federal agency to administer and operate a direct loan or loan guarantee program. All of the transactions

provided in this subsection shall be subject to the provisions of subchapter II of chapter 15 of title 31, United States Code. Cash balances of the financing accounts in excess of current requirements

shall be maintained in a form of uninvested funds and the Secretary of the Treasury shall pay interest on these funds.

(d) AUTHORIZATION FOR LIQUIDATING ACCOUNTS.—(1) Amounts

in liquidating accounts shall be available only for payments resulting from direct loan obligations or loan guarantee commitments

made prior to October 1, 1991, for—

(A) interest payments and principal repayments to the

Treasury or the Federal Financing Bank for amounts borrowed;

(B) disbursements of loans;

(C) default and other guarantee claim payments;

(D) interest supplement payments;

57 Sec. 506 CONGRESSIONAL BUDGET ACT OF 1974

(E) payments for the costs of foreclosing, managing, and

selling collateral that are capitalized or routinely deducted

from the proceeds of sales;

(F) payments to financing accounts when required for

modifications;

(G) administrative expenses, if—

(i) amounts credited to the liquidating account would

have been available for administrative expenses under a

provision of law in effect prior to October 1, 1991; and

(ii) no direct loan obligation or loan guarantee commitment has been made, or any modification of a direct loan

or loan guarantee has been made, since September 30,

1991; or

(H) such other payments as are necessary for the liquidation of such direct loan obligations and loan guarantee commitments.

(2) Amounts credited to liquidating accounts in any year shall

be available only for payments required in that year. Any unobligated balances in liquidating accounts at the end of a fiscal year

shall be transferred to miscellaneous receipts as soon as practicable

after the end of the fiscal year.

(3) If funds in liquidating accounts are insufficient to satisfy

obligations and commitments of such accounts, there is hereby provided permanent, indefinite authority to make any payments required to be made on such obligations and commitments.

(e) AUTHORIZATION OF APPROPRIATIONS FOR IMPLEMENTATION

EXPENSES.—There are authorized to be appropriated to existing accounts such sums as may be necessary for salaries and expenses

to carry out the responsibilities under this title.

(f) REINSURANCE.—Nothing in this title shall be construed as

authorizing or requiring the purchase of insurance or reinsurance

on a direct loan or loan guarantee from private insurers. If any

such reinsurance for a direct loan or loan guarantee is authorized,

the cost of such insurance and any recoveries to the Government

shall be included in the calculation of the cost.

(g) ELIGIBILITY AND ASSISTANCE.—Nothing in this title shall be

construed to change the authority or the responsibility of a Federal

agency to determine the terms and conditions of eligibility for, or

the amount of assistance provided by a direct loan or a loan guarantee.

SEC. 506. ø2 U.S.C. 661e¿ TREATMENT OF DEPOSIT INSURANCE AND

AGENCIES AND OTHER INSURANCE PROGRAMS.

(a) IN GENERAL.—This title shall not apply to the credit or insurance activities of the Federal Deposit Insurance Corporation,

National Credit Union Administration, Resolution Trust Corporation, Pension Benefit Guaranty Corporation, National Flood Insurance, National Insurance Development Fund, Crop Insurance, or

Tennessee Valley Authority.

(b) STUDY.—The Director and the Director of the Congressional

Budget Office shall each study whether the accounting for Federal

deposit insurance programs should be on a cash basis on the same

basis as loan guarantees, or on a different basis. Each Director

shall report findings and recommendations to the President and

the Congress on or before May 31, 1991.

Sec. 507 CONGRESSIONAL BUDGET ACT OF 1974 58

(c) ACCESS TO DATA.—For the purposes of subsection (b), the

Office of Management and Budget and the Congressional Budget

Office shall have access to all agency data that may facilitate these

studies.

SEC. 507. ø2 U.S.C. 661f¿ EFFECT ON OTHER LAWS.

(a) EFFECT ON OTHER LAWS.—This title shall supersede, modify, or repeal any provision of law enacted prior to the date of enactment of this title to the extent such provision is inconsistent

with this title. Nothing in this title shall be construed to establish

a credit limitation on any Federal loan or loan guarantee program.

(b) CREDITING OF COLLECTIONS.—Collections resulting from direct loans obligated or loan guarantees committed prior to October

1, 1991, shall be credited to the liquidating accounts of Federal

agencies. Amounts so credited shall be available, to the same extent that they were available prior to the date of enactment of this

title, to liquidate obligations arising from such direct loans obligated or loan guarantees committed prior to October 1, 1991, including repayment of any obligations held by the Secretary of the

Treasury or the Federal Financing Bank. The unobligated balances

of such accounts that are in excess of current needs shall be transferred to the general fund of the Treasury. Such transfers shall be

made from time to time but, at least once each year.

øTitle VI repealed by § 10118(a) of Public Law 105–33 (111 Stat.

695)¿

TITLE VII—PROGRAM REVIEW AND EVALUATION

* * * * * * *

CONTINUING STUDY OF ADDITIONAL BUDGET REFORM PROPOSALS

SEC. 703. ø2 U.S.C. 623¿ (a) The Committees on the Budget of

the House of Representatives and the Senate shall study on a continuing basis proposals designed to improve and facilitate methods

of congressional budgetmaking. The proposals to be studied shall

include, but are not limited to, proposals for—

(1) improving the information base required for determining the effectiveness of new programs by such means as pilot

testing, survey research, and other experimental and analytical

techniques;

(2) improving analytical and systematic evaluation of the

effectiveness of existing programs;

(3) establishing maximum and minimum time limitations

for program authorization; and

(4) developing techniques of human resource accounting

and other means of providing noneconomic as well as economic

evaluation measures.

(b) The Committee on the Budget of each House shall, from

time to time, report to its House the results of the study carried

on by it under subsection (a), together with its recommendations.

(c) Nothing in this section shall preclude studies to improve the

budgetary process by any other committee of the House of Representatives or the Senate or any joint committee of the Congress.

* * * * * * *

59 Sec. 904 CONGRESSIONAL BUDGET ACT OF 1974

1So in law. Probably should read ‘‘258A(b)(3)(C)(i)’’.

2So in law. Probably should read ‘‘258B(h)(3)’’.

TITLE IX—MISCELLANEOUS PROVISIONS; EFFECTIVE

DATES

* * * * * * *

EXERCISE OF RULEMAKING POWERS

SEC. 904. ø2 U.S.C. 621 note¿ (a) The provisions of this title

and of titles I, III, IV, and V and the provisions of sections 701,

703, and 1017 are enacted by the Congress—

(1) as an exercise of the rulemaking power of the House of

Representatives and the Senate, respectively, and as such they

shall be considered as part of the rules of each House, respectively, or of that House to which they specifically apply, and

such rules shall supersede other rules only to the extent that

they are inconsistent therewith; and

(2) with full recognition of the constitutional right of either

House to change such rules (so far as relating to such House)

at any time, in the same manner, and to the same extent as

in the case of any other rule of such House.

(b) Any provision of title III or IV may be waived or suspended

in the Senate by a majority vote of the Members voting, a quorum

being present, or by the unanimous consent of the Senate.

(c) WAIVERS.— (1) PERMANENT.—Sections 305(b)(2), 305(c)(4), 306,

310(d)(2), 313, 904(c), and 904(d) of this Act may be waived or

suspended in the Senate only by the affirmative vote of threefifths of the Members, duly chosen and sworn.

(2) TEMPORARY.—Sections 301(i), 302(c), 302(f), 310(g),

311(a), 312(b), and 312(c) of this Act and sections 258(a)(4)(C),

258A(b)(3)(C)(I) 1, 258B(f)(1), 258B(h)(1), 258(h)(3) 2, 258C(a)(5),

and 258C(b)(1) of the Balanced Budget and Emergency Deficit

Control Act of 1985 may be waived or suspended in the Senate

only by the affirmative vote of three-fifths of the Members,

duly chosen and sworn.

(d) APPEALS.— (1) PROCEDURE.—Appeals in the Senate from the decisions

of the Chair relating to any provision of title III or IV or section 1017 shall, except as otherwise provided therein, be limited to 1 hour, to be equally divided between, and controlled

by, the mover and the manager of the resolution, concurrent

resolution, reconciliation bill, or rescission bill, as the case may

be.

(2) PERMANENT.—An affirmative vote of three-fifths of the

Members, duly chosen and sworn, shall be required in the Senate to sustain an appeal of the ruling of the Chair on a point

of order raised under sections 305(b)(2), 305(c)(4), 306,

310(d)(2), 313, 904(c), and 904(d) of this Act.

(3) TEMPORARY.—An affirmative vote of three-fifths of the

Members, duly chosen and sworn, shall be required in the Senate to sustain an appeal of the ruling of the Chair on a point

of order raised under sections 301(i), 302(c), 302(f), 310(g),

311(a), 312(b), and 312(c) of this Act and sections 258(a)(4)(C),

Sec. 1001 CONGRESSIONAL BUDGET ACT OF 1974 60

258A(b)(3)(C)(I) 1, 258B(f)(1), 258B(h)(1), 258(h)(3) 2, 258C(a)(5),

and 258C(b)(1) of the Balanced Budget and Emergency Deficit

Control Act of 1985.

(e) EXPIRATION OF CERTAIN SUPERMAJORITY VOTING REQUIRE- MENTS.—Subsections (c)(2) and (d)(3) shall expire on September 30,

2002.

* * * * * * *

TITLE X—IMPOUNDMENT CONTROL

PART A—GENERAL PROVISIONS

DISCLAIMER

SEC. 1001. ø2 U.S.C. 681¿ Nothing contained in this Act, or in

any amendments made by this Act, shall be construed as—

(1) asserting or conceding the constitutional powers or limitations of either the Congress or the President;

(2) ratifying or approving any impoundment heretofore or

hereafter executed or approved by the President or any other

Federal officer or employee, except insofar as pursuant to statutory authorization then in effect;

(3) affecting in any way the claims or defenses of any party

to litigation concerning any impoundment; or

(4) superseding any provision of law which requires the obligation of budget authority or the making of outlays thereunder.

* * * * * * *

PART B—CONGRESSIONAL CONSIDERATION OF PROPOSED RESCISSIONS, RESERVATIONS, AND DEFERRALS OF BUDGET AUTHORITY

DEFINITIONS

SEC. 1011. ø2 U.S.C. 682¿ For purposes of this part—

(1) ‘‘deferral of budget authority’’ includes—

(A) withholding or delaying the obligations or expenditure of budget authority (whether by establishing reserves

or otherwise) provided for projects or activities; or

(B) any other type of Executive action or inaction

which effectively precludes the obligation or expenditure of

budget authority, including authority to obligate by contract in advance of appropriations as specifically authorized by law;

(2) ‘‘Comptroller General’’ means the Comptroller General

of the United States;

(3) ‘‘rescission bill’’ means a bill or joint resolution which

only recinds in whole or in part, budget authority proposed to

be rescinded in a special message transmitted by the President

under section 1012, and upon which the Congress completes

action before the end of the first period of 45 calendar days of

continuous session of the Congress after the date on which the

President’s message is received by the Congress;

(4) ‘‘impoundment resolution’’ means a resolution of the

House of Representatives or the Senate which only expresses

61 Sec. 1012 CONGRESSIONAL BUDGET ACT OF 1974

its disapproval of a proposed deferral of budget authority set

forth in a special message transmitted by the President under

section 1013; and

(5) continuity of a session of the Congress shall be considered as broken only by an adjournment of the Congress sine

die, and the days on which either House is not in session because of an adjournment of more than 3 days to a day certain

shall be excluded in the computation of the 45-day period referred to in paragraph (3) of this section and in section 1012,

and the 25-day periods referred to in sections 1016 and

1017(b)(1). If a special message is transmitted under section

1012 during any Congress and the last session of such Congress adjourns sine die before the expiration of 45 calendar

days of continuous session (or a special message is so transmitted after the last session of the Congress adjourns sine die),

the message shall be deemed to have been retransmitted on

the first day of the succeeding Congress and the 45-day period

referred to in paragraph (3) of this section and section 1012

(with respect to such message) shall commence on the day

after such first day.

RESCISSION OF BUDGET AUTHORITY

SEC. 1012. ø2 U.S.C. 683¿ (a) TRANSMITTAL OF SPECIAL MES- SAGE.—Whenever the President determines that all or part of any

budget authority will not be required to carry out the full objectives

or scope of programs for which it is provided or that such budget

authority should be rescinded for fiscal policy or other reasons (including the determination of authorized projects or activities for

which budget authority has been provided), or whenever all or part

of budget authority provided for only one fiscal year is to be reserved from obligation for such fiscal year, the President shall

transmit to both Houses of Congress a special message specifying—

(1) the amount of budget authority which he proposes to

be rescinded or which is to be so reserved;

(2) any account, department, or establishment of the Government to which such budget authority is available for obligation, and the specific project or governmental functions involved;

(3) the reasons why the budget authority should be rescinded or is to be so reserved;

(4) to the maximum extent practicable, the estimated fiscal, economic, and budgetary effect of the proposed rescission

or of the reservation; and

(5) all facts, circumstances, and considerations relating to

or bearing upon the proposed rescission or the reservation and

the decision to effect the proposed rescission or the reservation,

and to the maximum extent practicable, the estimated effect of

the proposed rescission or the reservation upon the objects,

purposes, and programs for which the budget authority is provided.

(b) REQUIREMENT TO MAKE AVAILABLE FOR OBLIGATION.—Any

amount of budget authority proposed to be rescinded or that is to

be reserved as set forth in such special message shall be made

available for obligation unless, within the prescribed 45-day period,

Sec. 1013 CONGRESSIONAL BUDGET ACT OF 1974 62

the Congress has completed action on a rescission bill rescinding

all or part of the amount proposed to be rescinded or that is to be

reserved. Funds made available for obligation under this procedure

may not be proposed for rescission again.

PROPOSED DEFERRALS OF BUDGET AUTHORITY

SEC. 1013. ø2 U.S.C. 684¿ (a) TRANSMITTAL OF SPECIAL MESSAGE.—Whenever the President, the Director of the Office of Management and Budget, the head of any department or agency of the

United States, or any officer or employee of the United States proposes to defer any budget authority provided for a specific purpose

or project, the President shall transmit to the House of Representatives and the Senate a special message specifying—

(1) the amount of the budget authority proposed to be deferred;

(2) any account, department, or establishment of the Government to which such budget authority is available for obligation, and the specific project or governmental functions involved;

(3) the period of time during which the budget authority

is proposed to be deferred;

(4) the reasons for the proposed deferral, including any

legal authority invoked to justify the proposed deferral;

(5) to the maximum extent practicable, the estimated fiscal, economic, and budgetary effect of the proposed deferral;

and

(6) all facts, circumstances, and considerations relating to

or bearing upon the proposed deferral and the decision to effect

the proposed deferral, including an analysis of such facts, circumstances, and considerations in terms of their application to

any legal authority, including specific elements of legal authority, invoked to justify such proposed deferral, and to the maximum extent practicable, the estimated effect of the proposed

deferral upon the objects, purposes, and programs for which

the budget authority is provided.

A special message may include one or more proposed deferrals of

budget authority. A deferral may not be proposed for any period of

time extending beyond the end of the fiscal year in which the special message proposing the deferral is transmitted to the House

and the Senate.

(b) CONSISTENCY WITH LEGISLATIVE POLICY.—Deferrals shall

be permissible only—

(1) to provide for contingencies;

(2) to achieve savings made possible by or through changes

in requirements or greater efficiency of operations; or

(3) as specifically provided by law.

No officer or employee of the United States may defer any budget

authority for any other purpose.

(c) EXCEPTION.—The provisions of this section do not apply to

any budget authority proposed to be rescinded or that is to be reserved as set forth in a special message required to be transmitted

under section 1012.

63 Sec. 1014 CONGRESSIONAL BUDGET ACT OF 1974

TRANSMISSION OF MESSAGES; PUBLICATION

SEC. 1014. ø2 U.S.C. 685¿ (a) DELIVERY TO HOUSE AND SENATE.—Each special message transmitted under section 1012 or

1013 shall be transmitted to the House of Representatives and the

Senate on the same day, and shall be delivered to the Clerk of the

House of Representatives if the House is not in session, and to the

Secretary of the Senate if the Senate is not in session. Each special

message so transmitted shall be referred to the appropriate committee of the House of Representatives and the Senate. Each such

message shall be printed as a document of each House.

(b) DELIVERY TO COMPTROLLER GENERAL.—A copy of each special message transmitted under section 1012 or 1013 shall be

transmitted to the Comptroller General on the same day it is transmitted to the House of Representatives and the Senate. In order to

assist the Congress in the exercise of its functions under sections

1012 and 1013, the Comptroller General shall review each such

message and inform the House of Representatives and the Senate

as promptly as practicable with respect to——

(1) in the case of a special message transmitted under section 1012, the facts surrounding the proposed rescission or the

reservation of budget authority (including the probable effects

thereof); and

(2) in the case of a special message transmitted under section 1013, (A) the facts surrounding each proposed deferral of

budget authority (including the probable effects thereof) and

(B) whether or not (or to what extent), in his judgment, such

proposed deferral is in accordance with existing statutory authority.

(c) TRANSMISSION OF SUPPLEMENTARY MESSAGES.—If any information contained in a special message transmitted under section

1012 or 1013 is subsequently revised, the President shall transmit

to both Houses of Congress and the Comptroller General a supplementary message stating and explaining such revision. Any such

supplementary message shall be delivered, referred, and printed as

provided in subsection (a). The Comptroller General shall promptly

notify the House of Representatives and the Senate of any change

in the information submitted by him under subsection (b) which

may be necessitated by such revision.

(d) PRINTING IN FEDERAL REGISTER.—Any special message

transmitted under section 1012 or 1013, and any supplementary

message transmitted under subsection (c), shall be printed in the

first issue of the Federal Register published after such transmittal.

(e) CUMULATIVE REPORTS OF PROPOSED RESCISSIONS, RESERVATIONS, AND DEFERRALS OF BUDGET AUTHORITY.—

(1) The President shall submit a report to the House of

Representatives and the Senate, not later than the 10th day of

each month during a fiscal year, listing all budget authority for

that fiscal year with respect to which, as of the first day of

such month—

(A) he has transmitted a special message under section 1012 with respect to a proposed rescission or a reservation; and

Sec. 1015 CONGRESSIONAL BUDGET ACT OF 1974 64

(B) he has transmitted a special message under section 1013 proposing a deferral.

Such report shall also contain, with respect to each such proposed rescission or deferral, or each such reservation, the information required to be submitted in the special message with

respect thereto under section 1012 or 1013.

(2) Each report submitted under paragraph (1) shall be

printed in the first issue of the Federal Register published

after its submission.

REPORTS BY COMPTROLLER GENERAL

SEC. 1015. ø2 U.S.C. 686¿ (a) FAILURE TO TRANSMIT SPECIAL

MESSAGE.—If the Comptroller General finds that the President, the

Director of the Office of Management and Budget, the head of any

department or agency of the United States, or any other officer or

employee of the United States—

(1) is to establish a reserve or proposes to defer budget authority with respect to which the President is required to

transmit a special message under section 1012 or 1013; or

(2) has ordered, permitted, or approved the establishment

of such a reserve or a deferral of budget authority;

and that the President has failed to transmit a special message

with respect to such reserve or deferral, the Comptroller General

shall make a report on such reserve or deferral and any available

information concerning it to both Houses of Congress. The provisions of this part shall apply with respect to such reserve or deferral in the same manner and with the same effect as if such report

of the Comptroller General were a special message transmitted by

the President under section 1012 or 1013, and, for purposes of this

part, such report shall be considered a special message transmitted

under section 1012 or 1013.

(b) INCORRECT CLASSIFICATION OF SPECIAL MESSAGE.—If the

President has transmitted a special message to both Houses of

Congress in accordance with section 1012 or 1013, and the Comptroller General believes that the President so transmitted the special message in accordance with one of those sections when the special message should have been transmitted in accordance with the

other of those sections, the Comptroller General shall make a report to both Houses of the Congress setting forth his reasons.

SUITS BY COMPTROLLER GENERAL

SEC. 1016. ø2 U.S.C. 687¿ If, under this title, budget authority

is required to be made available for obligation and such budget authority is not made available for obligation, the Comptroller General is hereby expressly empowered, through attorneys of his own

selection, to bring a civil action in the United States District Court

for the District of Columbia to require such budget authority to be

made available for obligation, and such court is hereby expressly

empowered to enter in such civil action, against any department,

agency, officer, or employee of the United States, any decree, judgment, or order, which may be necessary or appropriate to make

such budget authority available for obligation. No civil action shall

be brought by the Comptroller General under this section until the

65 Sec. 1017 CONGRESSIONAL BUDGET ACT OF 1974

expiration of 25 calendar days of continuous session of the Congress following the date on which an explanatory statement by the

Comptroller General of the circumstances giving rise to the action

contemplated has been filed with the Speaker of the House of Representatives and the President of the Senate.

PROCEDURE IN HOUSE AND SENATE

SEC. 1017. ø2 U.S.C. 688¿ (a) REFERRAL.—Any rescission bill

introduced with respect to a special message or impoundment resolution introduced with respect to a proposed deferral of budget authority shall be referred to the appropriate committee of the House

of Representatives or the Senate, as the case may be.

(b) DISCHARGE OF COMMITTEE.— (1) If the committee to which a rescission bill or impoundment resolution has been referred has not reported it at the

end of 25 calendar days of continuous session of the Congress

after its introduction, it is in order to move either to discharge

the committee from further consideration of the bill or resolution or to discharge the committee from further consideration

of any other rescission bill with respect to the same special

message or impoundment resolution with respect to the same

proposed deferral, as the case may be, which has been referred

to the committee.

(2) A motion to discharge may be made only by an individual favoring the bill or resolution, may be made only if supported by one-fifth of the Members of the House involved (a

quorum being present), and is highly privileged in the House

and privileged in the Senate (except that it may not be made

after the committee has reported a bill or resolution with respect to the same special message or the same proposed deferral, as the case may be); and debate thereon shall be limited

to not more than 1 hour, the time to be divided in the House

equally between those favoring and those opposing the bill or

resolution, and to be divided in the Senate equally between,

and controlled by, the majority leader and the minority leader

or their designees. An amendment to the motion is not in

order, and it is not in order to move to reconsider the vote by

which the motion is agreed to or disagreed to.

(c) FLOOR CONSIDERATION IN THE HOUSE.— (1) When the committee of the House of Representatives

has reported, or has been discharged from further consideration of a rescission bill or impoundment resolution, it shall at

any time thereafter be in order (even though a previous motion

to the same effect has been disagreed to) to move to proceed

to the consideration of the bill or resolution. The motion shall

be highly privileged and not debatable. An amendment to the

motion shall not be in order, nor shall it be in order to move

to reconsider the vote by which the motion is agreed to or disagreed to.

(2) Debate on a rescission bill or impoundment resolution

shall be limited to not more than 2 hours, which shall be divided equally between those favoring and those opposing the

bill or resolution. A motion further to limit debate shall not be

debatable. In the case of an impoundment resolution, no

Sec. 1017 CONGRESSIONAL BUDGET ACT OF 1974 66

amendment to, or motion to recommit, the resolution shall be

in order. It shall not be in order to move to reconsider the vote

by which a rescission bill or impoundment resolution is agreed

to or disagreed to.

(3) Motions to postpone, made with respect to the consideration of a rescission bill or impoundment resolution, and motions to proceed to the consideration of other business, shall be

decided without debate.

(4) All appeals from the decisions of the Chair relating to

the application of the Rules of the House of Representatives to

the procedure relating to any rescission bill or impoundment

resolution shall be decided without debate.

(5) Except to the extent specifically provided in the preceding provisions of this subsection, consideration of any rescission bill or impoundment resolution and amendments thereto

(or any conference report thereon) shall be governed by the

Rules of the House of Representatives applicable to other bills

and resolutions, amendments, and conference reports in similar circumstances.

(d) FLOOR CONSIDERATION IN THE SENATE.—

(1) Debate in the Senate on any rescission bill or impoundment resolution, and all amendments thereto (in the case of a

rescission bill) and debatable motions and appeals in connection therewith, shall be limited to not more than 10 hours. The

time shall be equally divided between, and controlled by, the

majority leader and the minority leader or their designees.

(2) Debate in the Senate on any amendment to a rescission

bill shall be limited to 2 hours, to be equally divided between,

and controlled by, the mover and the manager of the bill. Debate on any amendment to an amendment, to such a bill, and

debate on any debatable motion or appeal in connection with

such a bill or an impoundment resolution shall be limited to

1 hour, to be equally divided between, and controlled by, the

mover and the manager of the bill or resolution, except that in

the event the manager of the bill or resolution is in favor in

any such amendment, motion, or appeal, the time in opposition

thereto, shall be controlled by the minority leader or his designee. No amendment that is not germane to the provisions of

a rescission bill shall be received. Such leaders, or either of

them, may, from the time under their control on the passage

of a rescission bill or impoundment resolution, allot additional

time to any Senator during the consideration of any amendment, debatable motion, or appeal.

(3) A motion to further limit debate is not debatable. In

the case of a rescission bill, a motion to recommit (except a motion to recommit with instructions to report back within a specified number of days, not to exceed 3, not counting any day on

which the Senate is not in session) is not in order. Debate on

any such motion to recommit shall be limited to one hour, to

be equally divided between, and controlled by, the mover and

the manager of the concurrent resolution. In the case of an impoundment resolution, no amendment or motion to recommit is

in order.

67 Sec. 1021 CONGRESSIONAL BUDGET ACT OF 1974

(4) The conference report on any rescission bill shall be in

order in the Senate at any time after the third day (excluding

Saturdays, Sundays, and legal holidays) following the day on

which such a conference report is reported and is available to

Members of the Senate. A motion to proceed to the consideration of the conference report may be made even though a previous motion to the same effect has been disagreed to.

(5) During the consideration in the Senate of the conference report on any rescission bill, debate shall be limited to

2 hours, to be equally divided between, and controlled by, the

majority leader and minority leader or their designees. Debate

on any debatable motion or appeal related to the conference report shall be limited to 30 minutes, to be equally divided between, and controlled by, the mover and the manager of the

conference report.

(6) Should the conference report be defeated, debate on

any request for a new conference and the appointment of conferees shall be limited to one hour, to be equally divided, between, and controlled by, the manager of the conference report

and the minority leader or his designee, and should any motion

be made to instruct the conferees before the conferees are

named, debate on such motion shall be limited to 30 minutes,

to be equally divided between, and controlled by, the mover

and the manager of the conference report. Debate on any

amendment to any such instructions shall be limited to 20

minutes, to be equally divided between, and controlled by the

mover and the manager of the conference report. In all cases

when the manager of the conference report is in favor of any

motion, appeal, or amendment, the time in opposition shall be

under the control of the minority leader or his designee.

(7) In any case in which there are amendments in disagreement, time on each amendment shall be limited to 30

minutes, to be equally divided between, and controlled by, the

manager of the conference report and the minority leader or

his designee. No amendment that is not germane to the provisions of such amendments shall be received.

NOTE:

Constitutionality of Line Item Veto

The United States Supreme Court, in Clinton v. City of New York, U.S. Dist.

Col. 1998, 118 S.Ct. 2091, 141 L.Ed.2d 393, found that the Line Item Veto Act of

1996, Pub.L. 104–130, April 9, 1996, 110 Stat. 1200, which is part C of title X the

Congressional Budget Act of 1974, was unconstitutional as a violation of the Presentment Clause of the United States Constitution (Art. I, § 7, cl. 2).

PART C—LINE ITEM VETO

LINE ITEM VETO AUTHORITY

SEC. 1021. ø2 U.S.C. 691¿ (a) IN GENERAL.—Notwithstanding

the provisions of parts A and B, and subject to the provisions of

this part, the President may, with respect to any bill or joint resoVerDate 11-SEP-98 15:16 May 02, 2000 Jkt 000000 PO 00000 Frm 00067 Fmt 9001 Sfmt 9001 H:\DOCS\CP4COM~1\53587.TXT HBUDGET1 PsN: HBUDGET1
Sec. 1022 CONGRESSIONAL BUDGET ACT OF 1974 68

lution that has been signed into law pursuant to Article I, section

7, of the Constitution of the United States, cancel in whole—

(1) any dollar amount of discretionary budget authority;

(2) any item of new direct spending; or

(3) any limited tax benefit;

if the President—

(A) determines that such cancellation will—

(i) reduce the Federal budget deficit;

(ii) not impair any essential Government functions;

and

(iii) not harm the national interest; and

(B) notifies the Congress of such cancellation by transmitting a special message, in accordance with section 1022, within

five calendar days (excluding Sundays) after the enactment of

the law providing the dollar amount of discretionary budget

authority, item of new direct spending, or limited tax benefit

that was canceled.

(b) IDENTIFICATION OF CANCELLATIONS.—In identifying dollar

amounts of discretionary budget authority, items of new direct

spending, and limited tax benefits for cancellation, the President

shall—

(1) consider the legislative history, construction, and purposes of the law which contains such dollar amounts, items, or

benefits;

(2) consider any specific sources of information referenced

in such law or, in the absence of specific sources of information, the best available information; and

(3) use the definitions contained in section 1026 in applying this part to the specific provisions of such law.

(c) EXCEPTION FOR DISAPPROVAL BILLS.—The authority granted

by subsection (a) shall not apply to any dollar amount of discretionary budget authority, item of new direct spending, or limited

tax benefit contained in any law that is a disapproval bill as defined in section 1026.

SPECIAL MESSAGES

SEC. 1022. ø2 U.S.C. 691a¿ (a) IN GENERAL.—For each law

from which a cancellation has been made under this part, the

President shall transmit a single special message to the Congress.

(b) CONTENTS.—

(1) The special message shall specify—

(A) the dollar amount of discretionary budget authority, item of new direct spending, or limited tax benefit

which has been canceled, and provide a corresponding reference number for each cancellation;

(B) the determinations required under section 1021(a),

together with any supporting material;

(C) the reasons for the cancellation;

(D) to the maximum extent practicable, the estimated

fiscal, economic, and budgetary effect of the cancellation;

(E) all facts, circumstances and considerations relating

to or bearing upon the cancellation, and to the maximum

extent practicable, the estimated effect of the cancellation

69 Sec. 1023 CONGRESSIONAL BUDGET ACT OF 1974

upon the objects, purposes and programs for which the

canceled authority was provided; and

(F) include the adjustments that will be made pursuant to section 1024 to the discretionary spending limits

under section 251(c) of the Balanced Budget and Emergency Deficit Control Act of 1985 and an evaluation of the

effects of those adjustments upon the sequestration procedures of section 251 of the Balanced Budget and Emergency Deficit Control Act of 1985.

(2) In the case of a cancellation of any dollar amount of

discretionary budget authority or item of new direct spending,

the special message shall also include, if applicable—

(A) any account, department, or establishment of the

Government for which such budget authority was to have

been available for obligation and the specific project or

governmental functions involved;

(B) the specific States and congressional districts, if

any, affected by the cancellation; and

(C) the total number of cancellations imposed during

the current session of Congress on States and congressional districts identified in subparagraph (B).

(c) TRANSMISSION OF SPECIAL MESSAGES TO HOUSE AND SENATE.—

(1) The President shall transmit to the Congress each special message under this part within five calendar days (excluding Sundays) after enactment of the law to which the cancellation applies. Each special message shall be transmitted to the

House of Representatives and the Senate on the same calendar

day. Such special message shall be delivered to the Clerk of

the House of Representatives if the House is not in session,

and to the Secretary of the Senate if the Senate is not in session.

(2) Any special message transmitted under this part shall

be printed in the first issue of the Federal Register published

after such transmittal.

CANCELLATION EFFECTIVE UNLESS DISAPPROVED

SEC. 1023. ø2 U.S.C. 691b¿ (a) IN GENERAL.—The cancellation

of any dollar amount of discretionary budget authority, item of new

direct spending, or limited tax benefit shall take effect upon receipt

in the House of Representatives and the Senate of the special message notifying the Congress of the cancellation. If a disapproval bill

for such special message is enacted into law, then all cancellations

disapproved in that law shall be null and void and any such dollar

amount of discretionary budget authority, item of new direct spending, or limited tax benefit shall be effective as of the original date

provided in the law to which the cancellation applied.

(b) COMMENSURATE REDUCTIONS IN DISCRETIONARY BUDGET

AUTHORITY.—Upon the cancellation of a dollar amount of discretionary budget authority under subsection (a), the total appropriation for each relevant account of which that dollar amount is a part

shall be simultaneously reduced by the dollar amount of that cancellation.

Sec. 1024 CONGRESSIONAL BUDGET ACT OF 1974 70

DEFICIT REDUCTION

SEC. 1024. ø2 U.S.C. 691c¿ (a) IN GENERAL.—

(1) DISCRETIONARY BUDGET AUTHORITY.—OMB shall, for

each dollar amount of discretionary budget authority and for

each item of new direct spending canceled from an appropriation law under section 1021(a)—

(A) reflect the reduction that results from such cancellation in the estimates required by section 251(a)(7) of

the Balanced Budget and Emergency Deficit Control Act of

1985 in accordance with that Act, including an estimate of

the reduction of the budget authority and the reduction in

outlays flowing from such reduction of budget authority for

each outyear; and

(B) include a reduction to the discretionary spending

limits for budget authority and outlays in accordance with

the Balanced Budget and Emergency Deficit Control Act of

1985 for each applicable fiscal year set forth in section

251(c) of the Balanced Budget and Emergency Deficit Control Act of 1985 by amounts equal to the amounts for each

fiscal year estimated pursuant to subparagraph (A).

(2) DIRECT SPENDING AND LIMITED TAX BENEFITS.—(A)

OMB shall, for each item of new direct spending or limited tax

benefit canceled from a law under section 1021(a), estimate the

deficit decrease caused by the cancellation of such item or benefit in that law and include such estimate as a separate entry

in the report prepared pursuant to section 252(d) of the Balanced Budget and Emergency Deficit Control Act of 1985.

(B) OMB shall not include any change in the deficit resulting from a cancellation of any item of new direct spending or

limited tax benefit, or the enactment of a disapproval bill for

any such cancellation, under this part in the estimates and reports required by sections 252(b) and 254 of the Balanced

Budget and Emergency Deficit Control Act of 1985.

(b) ADJUSTMENTS TO SPENDING LIMITS.—After ten calendar

days (excluding Sundays) after the expiration of the time period in

section 1025(b)(1) for expedited congressional consideration of a

disapproval bill for a special message containing a cancellation of

discretionary budget authority, OMB shall make the reduction included in subsection (a)(1)(B) as part of the next sequester report

required by section 254 of the Balanced Budget and Emergency

Deficit Control Act of 1985.

(c) EXCEPTION.—Subsection (b) shall not apply to a cancellation

if a disapproval bill or other law that disapproves that cancellation

is enacted into law prior to 10 calendar days (excluding Sundays)

after the expiration of the time period set forth in section

1025(b)(1).

(d) CONGRESSIONAL BUDGET OFFICE ESTIMATES.—As soon as

practicable after the President makes a cancellation from a law

under section 1021(a), the Director of the Congressional Budget Office shall provide the Committees on the Budget of the House of

Representatives and the Senate with an estimate of the reduction

of the budget authority and the reduction in outlays flowing from

such reduction of budget authority for each outyear.

71 Sec. 1025 CONGRESSIONAL BUDGET ACT OF 1974

EXPEDITED CONGRESSIONAL CONSIDERATION OF DISAPPROVAL BILLS

SEC. 1025. ø2 U.S.C. 691d¿ (a) RECEIPT AND REFERRAL OF SPECIAL MESSAGE.—Each special message transmitted under this part

shall be referred to the Committee on the Budget and the appropriate committee or committees of the Senate and the Committee

on the Budget and the appropriate committee or committees of the

House of Representatives. Each such message shall be printed as

a document of the House of Representatives.

(b) TIME PERIOD FOR EXPEDITED PROCEDURES.—

(1) There shall be a congressional review period of 30 calendar days of session, beginning on the first calendar day of

session after the date on which the special message is received

in the House of Representatives and the Senate, during which

the procedures contained in this section shall apply to both

Houses of Congress.

(2) In the House of Representatives the procedures set

forth in this section shall not apply after the end of the period

described in paragraph (1).

(3) If Congress adjourns at the end of a Congress prior to

the expiration of the period described in paragraph (1) and a

disapproval bill was then pending in either House of Congress

or a committee thereof (including a conference committee of

the two Houses of Congress), or was pending before the President, a disapproval bill for the same special message may be

introduced within the first five calendar days of session of the

next Congress and shall be treated as a disapproval bill under

this part, and the time period described in paragraph (1) shall

commence on the day of introduction of that disapproval bill.

(c) INTRODUCTION OF DISAPPROVAL BILLS.—(1) In order for a

disapproval bill to be considered under the procedures set forth in

this section, the bill must meet the definition of a disapproval bill

and must be introduced no later than the fifth calendar day of session following the beginning of the period described in subsection

(b)(1).

(2) In the case of a disapproval bill introduced in the House of

Representatives, such bill shall include in the first blank space referred to in section 1026(6)(C) a list of the reference numbers for

all cancellations made by the President in the special message to

which such disapproval bill relates.

(d) CONSIDERATION IN THE HOUSE OF REPRESENTATIVES.—(1)

Any committee of the House of Representatives to which a disapproval bill is referred shall report it without amendment, and

with or without recommendation, not later than the seventh calendar day of session after the date of its introduction. If any committee fails to report the bill within that period, it is in order to

move that the House discharge the committee from further consideration of the bill, except that such a motion may not be made after

the committee has reported a disapproval bill with respect to the

same special message. A motion to discharge may be made only by

a Member favoring the bill (but only at a time or place designated

by the Speaker in the legislative schedule of the day after the calendar day on which the Member offering the motion announces to

the House his intention to do so and the form of the motion). The

Sec. 1025 CONGRESSIONAL BUDGET ACT OF 1974 72

motion is highly privileged. Debate thereon shall be limited to not

more than one hour, the time to be divided in the House equally

between a proponent and an opponent. The previous question shall

be considered as ordered on the motion to its adoption without intervening motion. A motion to reconsider the vote by which the motion is agreed to or disagreed to shall not be in order.

(2) After a disapproval bill is reported or a committee has been

discharged from further consideration, it is in order to move that

the House resolve into the Committee of the Whole House on the

State of the Union for consideration of the bill. If reported and the

report has been available for at least one calendar day, all points

of order against the bill and against consideration of the bill are

waived. If discharged, all points of order against the bill and

against consideration of the bill are waived. The motion is highly

privileged. A motion to reconsider the vote by which the motion is

agreed to or disagreed to shall not be in order. During consideration of the bill in the Committee of the Whole, the first reading

of the bill shall be dispensed with. General debate shall proceed,

shall be confined to the bill, and shall not exceed one hour equally

divided and controlled by a proponent and an opponent of the bill.

The bill shall be considered as read for amendment under the fiveminute rule. Only one motion to rise shall be in order, except if offered by the manager. No amendment to the bill is in order, except

any Member if supported by 49 other Members (a quorum being

present) may offer an amendment striking the reference number or

numbers of a cancellation or cancellations from the bill. Consideration of the bill for amendment shall not exceed one hour excluding

time for recorded votes and quorum calls. No amendment shall be

subject to further amendment, except pro forma amendments for

the purposes of debate only. At the conclusion of the consideration

of the bill for amendment, the Committee shall rise and report the

bill to the House with such amendments as may have been adopted. The previous question shall be considered as ordered on the bill

and amendments thereto to final passage without intervening motion. A motion to reconsider the vote on passage of the bill shall

not be in order.

(3) Appeals from decisions of the Chair regarding application

of the rules of the House of Representatives to the procedure relating to a disapproval bill shall be decided without debate.

(4) It shall not be in order to consider under this subsection

more than one disapproval bill for the same special message except

for consideration of a similar Senate bill (unless the House has already rejected a disapproval bill for the same special message) or

more than one motion to discharge described in paragraph (1) with

respect to a disapproval bill for that special message.

(e) CONSIDERATION IN THE SENATE.—

(1) REFERRAL AND REPORTING.—Any disapproval bill introduced in the Senate shall be referred to the appropriate committee or committees. A committee to which a disapproval bill

has been referred shall report the bill not later than the seventh day of session following the date of introduction of that

bill. If any committee fails to report the bill within that period,

that committee shall be automatically discharged from further

73 Sec. 1025 CONGRESSIONAL BUDGET ACT OF 1974

consideration of the bill and the bill shall be placed on the Calendar.

(2) DISAPPROVAL BILL FROM HOUSE.—When the Senate receives from the House of Representatives a disapproval bill,

such bill shall not be referred to committee and shall be placed

on the Calendar.

(3) CONSIDERATION OF SINGLE DISAPPROVAL BILL.—After

the Senate has proceeded to the consideration of a disapproval

bill for a special message, then no other disapproval bill originating in that same House relating to that same message shall

be subject to the procedures set forth in this subsection.

(4) AMENDMENTS.— (A) AMENDMENTS IN ORDER.—The only amendments in

order to a disapproval bill are—

(i) an amendment that strikes the reference number of a cancellation from the disapproval bill; and

(ii) an amendment that only inserts the reference

number of a cancellation included in the special message to which the disapproval bill relates that is not

already contained in such bill.

(B) WAIVER OR APPEAL.—An affirmative vote of threefifths of the Senators, duly chosen and sworn, shall be required in the Senate—

(i) to waive or suspend this paragraph; or

(ii) to sustain an appeal of the ruling of the Chair

on a point of order raised under this paragraph.

(5) MOTION NONDEBATABLE.—A motion to proceed to consideration of a disapproval bill under this subsection shall not

be debatable. It shall not be in order to move to reconsider the

vote by which the motion to proceed was adopted or rejected,

although subsequent motions to proceed may be made under

this paragraph.

(6) LIMIT ON CONSIDERATION.—(A) After no more than 10

hours of consideration of a disapproval bill, the Senate shall

proceed, without intervening action or debate (except as permitted under paragraph (9)), to vote on the final disposition

thereof to the exclusion of all amendments not then pending

and to the exclusion of all motions, except a motion to reconsider or to table.

(B) A single motion to extend the time for consideration

under subparagraph (A) for no more than an additional five

hours is in order prior to the expiration of such time and shall

be decided without debate.

(C) The time for debate on the disapproval bill shall be

equally divided between the Majority Leader and the Minority

Leader or their designees.

(7) DEBATE ON AMENDMENTS.—Debate on any amendment

to a disapproval bill shall be limited to one hour, equally divided and controlled by the Senator proposing the amendment

and the majority manager, unless the majority manager is in

favor of the amendment, in which case the minority manager

shall be in control of the time in opposition.

(8) NO MOTION TO RECOMMIT.—A motion to recommit a disapproval bill shall not be in order.

Sec. 1025 CONGRESSIONAL BUDGET ACT OF 1974 74

(9) DISPOSITION OF SENATE DISAPPROVAL BILL.—If the Senate has read for the third time a disapproval bill that originated in the Senate, then it shall be in order at any time

thereafter to move to proceed to the consideration of a disapproval bill for the same special message received from the

House of Representatives and placed on the Calendar pursuant

to paragraph (2), strike all after the enacting clause, substitute

the text of the Senate disapproval bill, agree to the Senate

amendment, and vote on final disposition of the House disapproval bill, all without any intervening action or debate.

(10) CONSIDERATION OF HOUSE MESSAGE.—Consideration in

the Senate of all motions, amendments, or appeals necessary

to dispose of a message from the House of Representatives on

a disapproval bill shall be limited to not more than four hours.

Debate on each motion or amendment shall be limited to 30

minutes. Debate on any appeal or point of order that is submitted in connection with the disposition of the House message

shall be limited to 20 minutes. Any time for debate shall be

equally divided and controlled by the proponent and the majority manager, unless the majority manager is a proponent of the

motion, amendment, appeal, or point of order, in which case

the minority manager shall be in control of the time in opposition.

(f) CONSIDERATION IN CONFERENCE.— (1) CONVENING OF CONFERENCE.—In the case of disagreement between the two Houses of Congress with respect to a

disapproval bill passed by both Houses, conferees should be

promptly appointed and a conference promptly convened, if

necessary.

(2) HOUSE CONSIDERATION.—(A) Notwithstanding any

other rule of the House of Representatives, it shall be in order

to consider the report of a committee of conference relating to

a disapproval bill provided such report has been available for

one calendar day (excluding Saturdays, Sundays, or legal holidays, unless the House is in session on such a day) and the accompanying statement shall have been filed in the House.

(B) Debate in the House of Representatives on the conference report and any amendments in disagreement on any

disapproval bill shall each be limited to not more than one

hour equally divided and controlled by a proponent and an opponent. A motion to further limit debate is not debatable. A

motion to recommit the conference report is not in order, and

it is not in order to move to reconsider the vote by which the

conference report is agreed to or disagreed to.

(3) SENATE CONSIDERATION.—Consideration in the Senate

of the conference report and any amendments in disagreement

on a disapproval bill shall be limited to not more than four

hours equally divided and controlled by the Majority Leader

and the Minority Leader or their designees. A motion to recommit the conference report is not in order.

(4) LIMITS ON SCOPE.—(A) When a disagreement to an

amendment in the nature of a substitute has been referred to

a conference, the conferees shall report those cancellations that

were included in both the bill and the amendment, and may

75 Sec. 1026 CONGRESSIONAL BUDGET ACT OF 1974

report a cancellation included in either the bill or the amendment, but shall not include any other matter.

(B) When a disagreement on an amendment or amendments of one House to the disapproval bill of the other House

has been referred to a committee of conference, the conferees

shall report those cancellations upon which both Houses agree

and may report any or all of those cancellations upon which

there is disagreement, but shall not include any other matter.

DEFINITIONS

SEC. 1026. ø2 U.S.C. 691e¿ As used in this part:

(1) APPROPRIATION LAW.—The term ‘‘appropriation law’’

means an Act referred to in section 105 of title 1, United

States Code, including any general or special appropriation

Act, or any Act making supplemental, deficiency, or continuing

appropriations, that has been signed into law pursuant to Article I, section 7, of the Constitution of the United States.

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

standard 24-hour period beginning at midnight.

(3) CALENDAR DAYS OF SESSION.—The term ‘‘calendar days

of session’’ shall mean only those days on which both Houses

of Congress are in session.

(4) CANCEL.—The term ‘‘cancel’’ or ‘‘cancellation’’ means—

(A) with respect to any dollar amount of discretionary

budget authority, to rescind;

(B) with respect to any item of new direct spending—

(i) that is budget authority provided by law (other

than an appropriation law), to prevent such budget

authority from having legal force or effect;

(ii) that is entitlement authority, to prevent the

specific legal obligation of the United States from having legal force or effect; or

(iii) through the food stamp program, to prevent

the specific provision of law that results in an increase

in budget authority or outlays for that program from

having legal force or effect; and

(C) with respect to a limited tax benefit, to prevent the

specific provision of law that provides such benefit from

having legal force or effect.

(5) DIRECT SPENDING.—The term ‘‘direct spending’’

means—

(A) budget authority provided by law (other than an

appropriation law);

(B) entitlement authority; and

(C) the food stamp program.

(6) DISAPPROVAL BILL.—The term ‘‘disapproval bill’’ means

a bill or joint resolution which only disapproves one or more

cancellations of dollar amounts of discretionary budget authority, items of new direct spending, or limited tax benefits in a

special message transmitted by the President under this part

and—

(A) the title of which is as follows: ‘‘A bill disapproving

the cancellations transmitted by the President on

llll’’, the blank space being filled in with the date of

Sec. 1026 CONGRESSIONAL BUDGET ACT OF 1974 76

transmission of the relevant special message and the public law number to which the message relates;

(B) which does not have a preamble; and

(C) which provides only the following after the enacting clause: ‘‘That Congress disapproves of cancellations

llll’’, the blank space being filled in with a list by reference number of one or more cancellations contained in

the President’s special message, ‘‘as transmitted by the

President in a special message on llll’’, the blank

space being filled in with the appropriate date, ‘‘regarding

llll.’’, the blank space being filled in with the public

law number to which the special message relates.

(7) DOLLAR AMOUNT OF DISCRETIONARY BUDGET AUTHOR- ITY.—(A) Except as provided in subparagraph (B), the term

‘‘dollar amount of discretionary budget authority’’ means the

entire dollar amount of budget authority—

(i) specified in an appropriation law, or the entire dollar amount of budget authority required to be allocated by

a specific proviso in an appropriation law for which a specific dollar figure was not included;

(ii) represented separately in any table, chart, or explanatory text included in the statement of managers or

the governing committee report accompanying such law;

(iii) required to be allocated for a specific program,

project, or activity in a law (other than an appropriation

law) that mandates the expenditure of budget authority

from accounts, programs, projects, or activities for which

budget authority is provided in an appropriation law;

(iv) represented by the product of the estimated procurement cost and the total quantity of items specified in

an appropriation law or included in the statement of managers or the governing committee report accompanying

such law; or

(v) represented by the product of the estimated procurement cost and the total quantity of items required to

be provided in a law (other than an appropriation law)

that mandates the expenditure of budget authority from

accounts, programs, projects, or activities for which budget

authority is provided in an appropriation law.

(B) The term ‘‘dollar amount of discretionary budget authority’’ does not include—

(i) direct spending;

(ii) budget authority in an appropriation law which

funds direct spending provided for in other law;

(iii) any existing budget authority rescinded or canceled in an appropriation law; or

(iv) any restriction, condition, or limitation in an appropriation law or the accompanying statement of managers or committee reports on the expenditure of budget

authority for an account, program, project, or activity, or

on activities involving such expenditure.

(8) ITEM OF NEW DIRECT SPENDING.—The term ‘‘item of

new direct spending’’ means any specific provision of law that

is estimated to result in an increase in budget authority or outVerDate 11-SEP-98 15:16 May 02, 2000 Jkt 000000 PO 00000 Frm 00076 Fmt 9001 Sfmt 9001 H:\DOCS\CP4COM~1\53587.TXT HBUDGET1 PsN: HBUDGET1
77 Sec. 1026 CONGRESSIONAL BUDGET ACT OF 1974

lays for direct spending relative to the most recent levels calculated pursuant to section 257 of the Balanced Budget and

Emergency Deficit Control Act of 1985.

(9) LIMITED TAX BENEFIT.—(A) The term ‘‘limited tax benefit’’ means—

(i) any revenue-losing provision which provides a Federal tax deduction, credit, exclusion, or preference to 100

or fewer beneficiaries under the Internal Revenue Code of

1986 in any fiscal year for which the provision is in effect;

and

(ii) any Federal tax provision which provides temporary or permanent transitional relief for 10 or fewer

beneficiaries in any fiscal year from a change to the Internal Revenue Code of 1986.

(B) A provision shall not be treated as described in subparagraph (A)(i) if the effect of that provision is that—

(i) all persons in the same industry or engaged in the

same type of activity receive the same treatment;

(ii) all persons owning the same type of property, or

issuing the same type of investment, receive the same

treatment; or

(iii) any difference in the treatment of persons is based

solely on—

(I) in the case of businesses and associations, the

size or form of the business or association involved;

(II) in the case of individuals, general demographic conditions, such as income, marital status,

number of dependents, or tax return filing status;

(III) the amount involved; or

(IV) a generally-available election under the Internal Revenue Code of 1986.

(C) A provision shall not be treated as described in subparagraph (A)(ii) if—

(i) it provides for the retention of prior law with respect to all binding contracts or other legally enforceable

obligations in existence on a date contemporaneous with

congressional action specifying such date; or

(ii) it is a technical correction to previously enacted

legislation that is estimated to have no revenue effect.

(D) For purposes of subparagraph (A)—

(i) all businesses and associations which are related

within the meaning of sections 707(b) and 1563(a) of the

Internal Revenue Code of 1986 shall be treated as a single

beneficiary;

(ii) all qualified plans of an employer shall be treated

as a single beneficiary;

(iii) all holders of the same bond issue shall be treated

as a single beneficiary; and

(iv) if a corporation, partnership, association, trust or

estate is the beneficiary of a provision, the shareholders of

the corporation, the partners of the partnership, the members of the association, or the beneficiaries of the trust or

estate shall not also be treated as beneficiaries of such provision.

Sec. 1027 CONGRESSIONAL BUDGET ACT OF 1974 78

(E) For purposes of this paragraph, the term ‘‘revenue-losing provision’’ means any provision which results in a reduction in Federal tax revenues for any one of the two following

periods—

(i) the first fiscal year for which the provision is effective; or

(ii) the period of the 5 fiscal years beginning with the

first fiscal year for which the provision is effective.

(F) The terms used in this paragraph shall have the same

meaning as those terms have generally in the Internal Revenue Code of 1986, unless otherwise expressly provided.

(10) OMB.—The term ‘‘OMB’’ means the Director of the

Office of Management and Budget.

IDENTIFICATION OF LIMITED TAX BENEFITS

SEC. 1027. ø2 U.S.C. 691f¿ (a) STATEMENT BY JOINT TAX COM- MITTEE.—The Joint Committee on Taxation shall review any revenue or reconciliation bill or joint resolution which includes any

amendment to the Internal Revenue Code of 1986 that is being prepared for filing by a committee of conference of the two Houses,

and shall identify whether such bill or joint resolution contains any

limited tax benefits. The Joint Committee on Taxation shall provide to the committee of conference a statement identifying any

such limited tax benefits or declaring that the bill or joint resolution does not contain any limited tax benefits. Any such statement

shall be made available to any Member of Congress by the Joint

Committee on Taxation immediately upon request.

(b) STATEMENT INCLUDED IN LEGISLATION.—(1) Notwithstanding any other rule of the House of Representatives or any rule or

precedent of the Senate, any revenue or reconciliation bill or joint

resolution which includes any amendment to the Internal Revenue

Code of 1986 reported by a committee of conference of the two

Houses may include, as a separate section of such bill or joint resolution, the information contained in the statement of the Joint

Committee on Taxation, but only in the manner set forth in paragraph (2).

(2) The separate section permitted under paragraph (1) shall

read as follows: ‘‘Section 1021(a)(3) of the Congressional Budget

and Impoundment Control Act of 1974 shall llll apply to llllll.’’, with the blank spaces being filled in with—

(A) in any case in which the Joint Committee on Taxation

identifies limited tax benefits in the statement required under

subsection (a), the word ‘‘only’’ in the first blank space and a

list of all of the specific provisions of the bill or joint resolution

identified by the Joint Committee on Taxation in such statement in the second blank space; or

(B) in any case in which the Joint Committee on Taxation

declares that there are no limited tax benefits in the statement

required under subsection (a), the word ‘‘not’’ in the first blank

space and the phrase ‘‘any provision of this Act’’ in the second

blank space.

(c) PRESIDENT’S AUTHORITY.—If any revenue or reconciliation

bill or joint resolution is signed into law pursuant to Article I, section 7, of the Constitution of the United States—

79 Sec. 1027 CONGRESSIONAL BUDGET ACT OF 1974

(1) with a separate section described in subsection (b)(2),

then the President may use the authority granted in section

1021(a)(3) only to cancel any limited tax benefit in that law,

if any, identified in such separate section; or

(2) without a separate section described in subsection

(b)(2), then the President may use the authority granted in section 1021(a)(3) to cancel any limited tax benefit in that law

that meets the definition in section 1026.

(d) CONGRESSIONAL IDENTIFICATIONS OF LIMITED TAX BENEFITS.—There shall be no judicial review of the congressional identification under subsections (a) and (b) of a limited tax benefit in a

conference report.

81

BALANCED BUDGET AND EMERGENCY DEFICIT

CONTROL ACT OF 1985

Public Law 99–177, December 12, 1985, 99 Stat. 1037

Major Amendments:

Balanced Budget and Emergency Deficit Reaffirmation Act of 1987;

Public Law 100–119, Title I, September 28, 1987; 101 Stat.

754.

Budget Enforcement Act of 1990; Public Law 101–508, Title XIV,

Subtitle A, Part I; November 5, 1990; 104 Stat. 1388–573,

1388–574.

Omnibus Budget Reconciliation Act of 1993; Public Law 103–66,

Title XIV; August 10, 1993; 107 Stat. 312, 683.

Violent Crime Control and Law Enforcement Act of 1994; Public

Law 103–322, Title XXXI; September 13, 1994; 108 Stat. 1796,

2102.

The Balanced Budget Act of 1997; Public Law 105–33, August 5,

1997; 111 Stat. 251.

Transportation Equity Act for the 21st Century; June 9, 1998; 112

Stat. 488.

TEA 21 Restortation Act; Public Law 105–206; July 22, 1998. 115

Stat. 865.

83

1Section 10208(a)(2) of Public Law 105–33 (111 Stat. 708) added this item to the table of contents, inadvertently adding it in all caps.

PART C—EMERGENCY POWERS TO ELIMINATE

DEFICITS IN EXCESS OF MAXIMUM DEFICIT AMOUNT

SEC. 250. ø2 U.S.C. 900¿ TABLE OF CONTENTS; STATEMENT OF BUDGET

ENFORCEMENT THROUGH SEQUESTRATION; DEFINITIONS.

(a) TABLE OF CONTENTS.—

Sec. 250. Table of contents; budget enforcement statement; definitions.

Sec. 251. Enforcing discretionary spending limits.

Sec. 252. Enforcing pay-as-you-go.

Sec. 253. Enforcing deficit targets.

Sec. 254. Reports and orders.

Sec. 255. Exempt programs and activities.

Sec. 256. General and special sequestration rules.1

Sec. 257. The baseline.

Sec. 258. Suspension in the event of war or low growth.

Sec. 258A. Modification of presidential order.

Sec. 258B. Alternative defense sequestration.

Sec. 258C. Special reconciliation process.

(b) GENERAL STATEMENT OF BUDGET ENFORCEMENT THROUGH

SEQUESTRATION.—This part provides for budget enforcement as

called for in House Concurrent Resolution 84 (105th Congress, 1st

session).

(c) DEFINITIONS.— As used in this part:

(1) The terms ‘‘budget authority’’, ‘‘new budget authority’’,

‘‘outlays’’, and ‘‘deficit’’ have the meanings given to such terms

in section 3 of the Congressional Budget and Impoundment

Control Act of 1974 and ‘‘discretionary spending limit’’ shall

mean the amounts specified in section 251 of this Act.

(2) The terms ‘‘sequester’’ and ‘‘sequestration’’ refer to or

mean the cancellation of budgetary resources provided by discretionary appropriations or direct spending law.

(3) The term ‘‘breach’’ means, for any fiscal year, the

amount (if any) by which new budget authority or outlays for

that year (within a category of discretionary appropriations) is

above that category’s discretionary spending limit for new

budget authority or outlays for that year, as the case may be.

(4)(A) The term ‘‘category’’ means the subsets of discretionary appropriations in section 251(c). Discretionary appropriations in each of the categories shall be those designated in

the joint explanatory statement accompanying the conference

report on the Balanced Budget Act of 1997. New accounts or

activities shall be categorized only after consultation with the

committees on Appropriations and the Budget of the House of

Representatives and the Senate and that consultation shall, to

the extent practicable, include written communication to such

Sec. 250 DEFICIT CONTROL ACT OF 1985 84

committees that affords such committees the opportunity to

comment before official action is taken with respect to new accounts or activities.

(B) The term ‘‘highway category’’ refers to the following

budget accounts or portions thereof that are subject to the obligation limitations on contract authority set forth in the Transportation Equity Act for the 21st Century:

(i) 69–8083–0–7–401 (Federal-Aid Highways).

(ii) 69–8020–0–7–401 (Highway Traffic Safety Grants).

(iii) 69–8048–0–7–401 (National Motor Carrier Safety

Program).

(iv) 69–8016–0–7–401 (Operations and Research

NHTSA).

(C) The term ‘‘mass transit category’’ refers to the following budget accounts or portions thereof that are subject to the

obligation limitations on contract authority provided in the

Transportation Equity Act for the 21st Century or for which

appropriations are provided pursuant to authorizations contained in that Act (except that appropriations provided pursuant to section 5338(h) of title 49, United States Code, as

amended by the Transportation Equity Act for the 21st Century, shall not be included in this category):

(i) 69–8191–0–7–401 (Mass Transit Capital Fund).

(ii) 69–8350–0–7–401 (Trust Fund Share of Expenses).

(iii) 69–1129–0–1–401 (Formula Grants).

(iv) 69–1120–0–1–401 (Administrative Expenses).

(v) 69–1136–0–1–401 (University Transportation Centers).

(vi) 69–1137–0–1–401 (Transit Planning and Research).

Such term also refers to the Washington Metropolitan Transit

Authority account (69–1128–0–1–401) only for fiscal year 1999

only for appropriations provided pursuant to authorizations

contained in section 14 of Public Law 96–184 and Public Law

101–551.

(D) SPECIAL RULE.—(i) Any outlays in excess of the discretionary spending limit set forth in section 251(c) for the highway or mass transit category, as adjusted, for the budget year

shall be considered nondefense category outlays or discretionary category outlays.

(ii) If the obligation limitations for accounts in the highway or mass transit category provided in an appropriation Act

for a fiscal year exceed the obligation limitations set forth in

section 8103 of the Transportation Equity Act for the 21st Century for that year, as adjusted, the estimated outlays flowing

for each outyear from such excess obligations calculated pursuant to clause (iii) shall be attributed to the discretionary category in that outyear.

(iii) For purposes of clause (ii), outlays from excess obligations shall be determined using the average of the spendout

rates for that category in the baseline.

(5) The term ‘‘baseline’’ means the projection (described in

section 257) of current-year levels of new budget authority,

85 Sec. 250 DEFICIT CONTROL ACT OF 1985

1So in original. Probably should read ‘‘expenses of’’.

outlays, receipts, and the surplus or deficit into the budget

year and the outyears.

(6) The term ‘‘budgetary resources’’ means new budget authority, unobligated balances, direct spending authority, and

obligation limitations.

(7) The term ‘‘discretionary appropriations’’ means budgetary resources (except to fund direct-spending programs) provided in appropriation Acts.

(8) The term ‘‘direct spending’’ means—

(A) budget authority provided by law other than appropriation Acts;

(B) entitlement authority; and

(C) the food stamp program.

(9) The term ‘‘current’’ means, with respect to OMB estimates included with a budget submission under section 1105(a)

of title 31, United States Code, the estimates consistent with

the economic and technical assumptions underlying that budget and with respect to estimates made after that budget submission that are not included with it, estimates consistent with

the economic and technical assumptions underlying the most

recently submitted President’s budget.

(10) The term ‘‘real economic growth’’, with respect to any

fiscal year, means the growth in the gross national product

during such fiscal year, adjusted for inflation, consistent with

Department of Commerce definitions.

(11) The term ‘‘account’’ means an item for which appropriations are made in any appropriation Act and, for items not

provided for in appropriation Acts, such term means an item

for which there is a designated budget account identification

code number in the President’s budget.

(12) The term ‘‘budget year’’ means, with respect to a session of Congress, the fiscal year of the Government that starts

on October 1 of the calendar year in which that session begins.

(13) The term ‘‘current year’’ means, with respect to a

budget year, the fiscal year that immediately precedes that

budget year.

(14) The term ‘‘outyear’’ means, with respect to a budget

year, any of the first 4 fiscal years that follow the budget year.

(15) The term ‘‘OMB’’ means the Director of the Office of

Management and Budget.

(16) The term ‘‘CBO’’ means the Director of the Congressional Budget Office.

(17) As used in this part, all references to entitlement authority shall include the list of mandatory appropriations included in the joint explanatory statement of managers accompanying the conference report on the Balanced Budget Act of

1997.

(18) The term ‘‘deposit insurance’’ refers to the expenses 1

the Federal deposit insurance agencies, and other Federal

agencies supervising insured depository institutions, resulting

Sec. 251 DEFICIT CONTROL ACT OF 1985 86

from full funding of, and continuation of, the deposit insurance

guarantee commitment in effect under current estimates.

(19) The term ‘‘asset sale’’ means the sale to the public of

any asset (except for those assets covered by title V of the Congressional Budget Act of 1974), whether physical or financial,

owned in whole or in part by the United States.

SEC. 251. ø2 U.S.C. 901¿ ENFORCING DISCRETIONARY SPENDING

LIMITS.

(a) ENFORCEMENT.— (1) SEQUESTRATION.—Within 15 calendar days after Congress adjourns to end a session and on the same day as a sequestration (if any) under section 252 and section 253, there

shall be a sequestration to eliminate a budget-year breach, if

any, within any category.

(2) ELIMINATING A BREACH.—Each non-exempt account

within a category shall be reduced by a dollar amount calculated by multiplying the baseline level of sequestrable budgetary resources in that account at that time by the uniform

percentage necessary to eliminate a breach within that category; except that the health programs set forth in section

256(e) shall not be reduced by more than 2 percent and the

uniform percent applicable to all other programs under this

paragraph shall be increased (if necessary) to a level sufficient

to eliminate that breach. If, within a category, the discretionary spending limits for both new budget authority and outlays are breached, the uniform percentage shall be calculated

by—

(A) first, calculating the uniform percentage necessary

to eliminate the breach in new budget authority, and

(B) second, if any breach in outlays remains, increasing the uniform percentage to a level sufficient to eliminate that breach.

(3) MILITARY PERSONNEL.—If the President uses the authority to exempt any military personnel from sequestration

under section 255(f), each account within subfunctional category 051 (other than those military personnel accounts for

which the authority provided under section 255(f) has been exercised) shall be further reduced by a dollar amount calculated

by multiplying the enacted level of non-exempt budgetary resources in that account at that time by the uniform percentage

necessary to offset the total dollar amount by which outlays

are not reduced in military personnel accounts by reason of the

use of such authority.

(4) PART-YEAR APPROPRIATIONS.—If, on the date specified

in paragraph (1), there is in effect an Act making or continuing

appropriations for part of a fiscal year for any budget account,

then the dollar sequestration calculated for that account under

paragraphs (2) and (3) shall be subtracted from—

(A) the annualized amount otherwise available by law

in that account under that or a subsequent part-year appropriation; and

(B) when a full-year appropriation for that account is

enacted, from the amount otherwise provided by the fullyear appropriation.

87 Sec. 251 DEFICIT CONTROL ACT OF 1985

(5) LOOK-BACK.—If, after June 30, an appropriation for the

fiscal year in progress is enacted that causes a breach within

a category for that year (after taking into account any sequestration of amounts within that category), the discretionary

spending limits for that category for the next fiscal year shall

be reduced by the amount or amounts of that breach.

(6) WITHIN-SESSION SEQUESTRATION.—If an appropriation

for a fiscal year in progress is enacted (after Congress adjourns

to end the session for that budget year and before July 1 of

that fiscal year) that causes a breach within a category for that

year (after taking into account any prior sequestration of

amounts within that category), 15 days later there shall be a

sequestration to eliminate that breach within that category following the procedures set forth in paragraphs (2) through (4).

(7) ESTIMATES.—

(A) CBO ESTIMATES.—As soon as practicable after

Congress completes action on any discretionary appropriation, CBO, after consultation with the Committees on the

Budget of the House of Representatives and the Senate,

shall provide OMB with an estimate of the amount of discretionary new budget authority and outlays for the current year (if any) and the budget year provided by that

legislation.

(B) OMB ESTIMATES AND EXPLANATION OF DIFFERENCES.—Not later than 7 calendar days (excluding Saturdays, Sundays, and legal holidays) after the date of enactment of any discretionary appropriation, OMB shall

transmit a report to the House of Representatives and to

the Senate containing the CBO estimate of that legislation, an OMB estimate of the amount of discretionary new

budget authority and outlays for the current year (if any)

and the budget year provided by that legislation, and an

explanation of any difference between the 2 estimates. If

during the preparation of the report OMB determines that

there is a significant difference between OMB and CBO,

OMB shall consult with the Committees on the Budget of

the House of Representatives and the Senate regarding

that difference and that consultation shall include, to extent practicable, written communication to those committees that affords such committees the opportunity to comment before the issuance of the report.

(C) ASSUMPTIONS AND GUIDELINES.—OMB estimates

under this paragraph shall be made using current economic and technical assumptions. OMB shall use the OMB

estimates transmitted to the Congress under this paragraph. OMB and CBO shall prepare estimates under this

paragraph in conformance with scorekeeping guidelines

determined after consultation among the House and Senate Committees on the Budget, CBO, and OMB.

(D) ANNUAL APPROPRIATIONS.—For purposes of this

paragraph, amounts provided by annual appropriations

shall include any new budget authority and outlays for the

current year (if any) and the budget year in accounts for

Sec. 251 DEFICIT CONTROL ACT OF 1985 88

1So in law. Probably should be ‘‘Committees’’.

which funding is provided in that legislation that result

from previously enacted legislation.

(b) ADJUSTMENTS TO DISCRETIONARY SPENDING LIMITS.— (1) PREVIEW REPORT.— (A) CONCEPTS AND DEFINITIONS.—When the President

submits the budget under section 1105 of title 31, United

States Code, OMB shall calculate and the budget shall include adjustments to discretionary spending limits (and

those limits as cumulatively adjusted) for the budget year

and each outyear to reflect changes in concepts and definitions. Such changes shall equal the baseline levels of new

budget authority and outlays using up-to-date concepts

and definitions minus those levels using the concepts and

definitions in effect before such changes. Such changes

may only be made after consultation with the committees 1

on Appropriations and the Budget of the House of Representatives and the Senate and that consultation shall include written communication to such committees that affords such committees the opportunity to comment before

official action is taken with respect to such changes.

(B) ADJUSTMENT TO ALIGN HIGHWAY SPENDING WITH

REVENUES.—(i) When the President submits the budget

under section 1105 of title 31, United States Code, OMB

shall calculate and the budget shall include adjustments to

the highway category for the budget year and each outyear

as provided in clause (ii)(I)(cc).

(ii)(I)(aa) OMB shall take the actual level of highway

receipts for the year before the current year and subtract

the sum of the estimated level of highway receipts in subclause (II) plus any amount previously calculated under

item (bb) for that year.

(bb) OMB shall take the current estimate of highway

receipts for the budget year and subtract the estimated

level of receipts for that year.

(cc) OMB shall take the sum of the amounts calculated

under items (aa) and (bb), add that sum to the amount of

obligations set forth in section 8103 of the Transportation

Equity Act for the 21st Century for the highway category

for the budget year, and calculate the outlay change resulting from that change in obligations relative to that

amount for the budget year and each outyear using current estimates. After making the calculation under the

preceding sentence, OMB shall adjust the amount of obligations set forth in that section for the budget year by

adding the sum of the amounts calculated under items (aa)

and (bb).

(II) The estimated level of highway receipts for the

purposes of this clause are— (aa) for fiscal year 1998, $22,164,000,000;

(bb) for fiscal year 1999, $32,619,000,000;

(cc) for fiscal year 2000, $28,066,000,000;

(dd) for fiscal year 2001, $28,506,000,000;

89 Sec. 251 DEFICIT CONTROL ACT OF 1985

1So in original. Probably should be ‘‘year’’.

2See clause 2(e) of rule XXI of the Rules of the House of Representatives.

(ee) for fiscal year 2002, $28,972,000,000; and

(ff) for fiscal year 2003, $29,471,000,000.

(III) In this clause, the term ‘highway receipts’ means

the governmental receipts credited to the highway account

of the Highway Trust Fund.

(C)(i) In addition to the adjustment required by subparagraph (B), when the President submits the budget under section 1105 of title 31, United States Code, for fiscal years 1

2000, 2001, 2002, or 2003, OMB shall calculate and the budget

shall include for the budget year and each outyear an adjustment to the limits on outlays for the highway category and the

mass transit category equal to—

(I) the outlays for the applicable category calculated

assuming obligation levels consistent with the estimates

prepared pursuant to subparagraph (D), as adjusted, using

current technical assumptions; minus

(II) the outlays for the applicable category set forth in

the subparagraph (D) estimates, as adjusted.

(ii) The adjustment made pursuant to clause (i) in the fiscal years 2002 and 2003 budget submissions of the President

under section 1105(a) of title 31, United States Code, shall not

exceed 4 percent plus cumulative carryovers. In this clause, the

term ‘‘cumulative carryovers’’ means the total of each amount

by which outlays for the highway and mass transit category for

any fiscal year are less than the outlay limit for that category,

as adjusted, for that year less any amount of carryover used

in the previous year.

(D)(i) When OMB and CBO submit their final sequester

report for fiscal year 1999, that report shall include an estimate of the outlays for each of the categories that would result

in fiscal years 2000 through 2003 from obligations at the levels

specified in section 8103 of the Transportation Equity Act for

the 21st Century using current assumptions.

(ii) When the President submits the budget under section

1105 of title 31, United States Code, for fiscal years 1 2000,

2001, 2002, or 2003, OMB shall adjust the estimates made in

clause (i) by the adjustments by subparagraphs (B) and (C).

(E) OMB shall consult with the Committees on the Budget

and include a report on adjustments under subparagraphs (B)

and (C) in the preview report.

(2) 2 SEQUESTRATION REPORTS.—When OMB submits a sequestration report under section 254(e), (f), or (g) for a fiscal

year, OMB shall calculate, and the sequestration report and

subsequent budgets submitted by the President under section

1105(a) of title 31, United States Code, shall include adjustments to discretionary spending limits (and those limits as adjusted) for the fiscal year and each succeeding year through

2002, as follows:

(A) EMERGENCY APPROPRIATIONS.—If, for any fiscal

year, appropriations for discretionary accounts are enacted

that the President designates as emergency requirements

Sec. 251 DEFICIT CONTROL ACT OF 1985 90

and that the Congress so designates in statute, the adjustment shall be the total of such appropriations in discretionary accounts designated as emergency requirements

and the outlays flowing in all fiscal years from such appropriations. This subparagraph shall not apply to appropriations to cover agricultural crop disaster assistance.

(B) SPECIAL OUTLAY ALLOWANCE.—If, in any fiscal

year, outlays for a category exceed the discretionary spending limit for that category but new budget authority does

not exceed its limit for that category (after application of

the first step of a sequestration described in subsection

(a)(2), if necessary), the adjustment in outlays for a fiscal

year is the amount of the excess but not to exceed 0.5 percent of the sum of the adjusted discretionary spending limits on outlays for that fiscal year.

(C) CONTINUING DISABILITY REVIEWS.—(i) If a bill or

joint resolution making appropriations for a fiscal year is

enacted that specifies an amount for continuing disability

reviews under the heading ‘‘Limitation on Administrative

Expenses’’ for the Social Security Administration, the adjustments for that fiscal year shall be the additional new

budget authority provided in that Act for such reviews for

that fiscal year and the additional outlays flowing from

such amounts, but shall not exceed—

(I) for fiscal year 1998, $290,000,000 in additional new budget authority and $338,000,000 in additional

outlays; (II) for fiscal year 1999, $520,000,000 in additional new budget authority and $520,000,000 in additional

outlays; (III) for fiscal year 2000, $520,000,000 in addi- tional new budget authority and $520,000,000 in additional outlays;

(IV) for fiscal year 2001, $520,000,000 in additional new budget authority and $520,000,000 in additional outlays; and

(V) for fiscal year 2002, $520,000,000 in additional

new budget authority and $520,000,000 in additional

outlays.

(ii) As used in this subparagraph—

(I) the term ‘‘continuing disability reviews’’ means

reviews or redeterminations as defined under section

201(g)(1)(A) of the Social Security Act and reviews and

redeterminations authorized under section 211 of the

Personal Responsibility and Work Opportunity Reconciliation Act of 1996;

(II) the term ‘‘additional new budget authority’’

means the amount provided for a fiscal year, in excess

of $200,000,000, in an appropriations Act and specified

to pay for the costs of continuing disability reviews

under the heading ‘‘Limitation on Administrative Expenses’’ for the Social Security Administration; and

(III) the term ‘‘additional outlays’’ means outlays,

in excess of $200,000,000 in a fiscal year, flowing from

91 Sec. 251 DEFICIT CONTROL ACT OF 1985

the amounts specified for continuing disability reviews

under the heading ‘‘Limitation on Administrative Expenses’’ for the Social Security Administration, including outlays in that fiscal year flowing from amounts

specified in Acts enacted for prior fiscal years (but not

before 1996).

(D) ALLOWANCE FOR IMF.—If an appropriation bill or

joint resolution is enacted for a fiscal year through 2002

that includes an appropriation with respect to clause (i) or

(ii), the adjustment shall be the amount of budget authority in the measure that is the dollar equivalent of the Special Drawing Rights with respect to—

(i) an increase in the United States quota as part

of the International Monetary Fund Eleventh General

Review of Quotas (United States Quota); or

(ii) any increase in the maximum amount available to the Secretary of the Treasury pursuant to section 17 of the Bretton Woods Agreements Act, as

amended from time to time (New Arrangements to

Borrow).

(E) ALLOWANCE FOR INTERNATIONAL ARREARAGES.— (i) ADJUSTMENTS.—If an appropriation bill or joint

resolution is enacted for fiscal year 1998, 1999, or

2000 that includes an appropriation for arrearages for

international organizations, international peacekeeping, and multilateral development banks for that fiscal

year, the adjustment shall be the amount of budget

authority in that measure and the outlays flowing in

all fiscal years from that budget authority.

(ii) LIMITATIONS.—The total amount of adjustments made pursuant to this subparagraph for the period of fiscal years 1998 through 2000 shall not exceed

$1,884,000,000 in budget authority.

(F) EITC COMPLIANCE INITIATIVE.—If an appropriation

bill or joint resolution is enacted for a fiscal year that includes an appropriation for an earned income tax credit

compliance initiative, the adjustment shall be the amount

of budget authority in that measure for that initiative and

the outlays flowing in all fiscal years from that budget authority, but not to exceed—

(i) with respect to fiscal year 1998, $138,000,000

in new budget authority and $131,000,000 in outlays;

(ii) with respect to fiscal year 1999, $143,000,000

in new budget authority and $143,000,000 in outlays;

(iii) with respect to fiscal year 2000, $144,000,000

in new budget authority and $144,000,000 in outlays;

(iv) with respect to fiscal year 2001, $145,000,000

in new budget authority and $145,000,000 in outlays;

and

(v) with respect to fiscal year 2002, $146,000,000

in new budget authority and $146,000,000 in outlays.

(G) ADOPTION INCENTIVE PAYMENTS.—Whenever a bill

or joint resolution making appropriations for fiscal year

1999, 2000, 2001, 2002, or 2003 is enacted that specifies

Sec. 251 DEFICIT CONTROL ACT OF 1985 92

an amount for adoption incentive payments pursuant to

this part for the Department of Health and Human

Services—

(i) the adjustments for new budget authority shall

be the amounts of new budget authority provided in

that measure for adoption incentive payments, but not

to exceed $20,000,000; and

(ii) the adjustment for outlays shall be the

additional outlays flowing from such amount.

(c) DISCRETIONARY SPENDING LIMIT.—As used in this part, the

term ‘‘discretionary spending limit’’ means—

(1) with respect to fiscal year 1997, for the discretionary

category, the current adjusted limits of new budget authority

and outlays;

(2) with respect to fiscal year 1998— (A) for the defense category: $269,000,000,000 in new budget authority and $266,823,000,000 in outlays; (B) for the nondefense category: $252,357,000,000 in new budget authority and $282,853,000,000 in outlays;

and

(C) for the violent crime reduction category:

$5,500,000,000 in new budget authority and

$3,592,000,000 in outlays;

(3) with respect to fiscal year 1999—

(A) for the defense category: $271,500,000,000 in new

budget authority and $266,518,000,000 in outlays;

(B) for the nondefense category: $255,699,000,000 in

new budget authority and $287,850,000,000 in outlays;

(C) for the violent crime reduction category:

$5,800,000,000 in new budget authority and

$4,953,000,000 in outlays;

(D) for the highway category: $21,885,000,000 in outlays; and (E) for the mass transit category: $4,401,000,000 in

outlays;

(4) with respect to fiscal year 2000— (A) for the discretionary category: $532,693,000,000 in new budget authority and $558,711,000,000 in outlays;

(B) for the violent crime reduction category: $4,500,000,000 in new budget authority and

$5,554,000,000 in outlays; (C) for the highway category: $24,436,000,000 in outlays; and (D) for the mass transit category: $4,761,000,000 in

outlays;.

(5) with respect to fiscal year 2001— (A) for the discretionary category: $542,032,000,000 in new budget authority and $564,396,000,000 in outlays;

and

(B) for the highway category: $26,204,000,000 in outlays; and (C) for the mass transit category: $5,190,000,000 in

outlays;

(6) with respect to fiscal year 2002—

93 Sec. 252 DEFICIT CONTROL ACT OF 1985

1So in original. Probably should be ‘‘outlays;’’.

2So in original. Probably should read ‘‘to the budget year’’.

(A) for the discretionary category: $551,074,000,000 in new budget authority and $560,799,000,000 in outlays; (B) for the highway category: $26,977,000,000 in outlays; and (C) for the mass transit category: $5,709,000,000 in

outlays; and

(7) with respect to fiscal year 2003— (A) for the highway category: $27,728,000,000 in outlays; and (B) for the mass transit category: $6,256,000,000 in

outlays. 1

as adjusted in strict conformance with subsection (b).

SEC. 252. ø2 U.S.C. 902¿ ENFORCING PAY-AS-YOU-GO.

(a) PURPOSE.—The purpose of this section is to assure that any

legislation enacted before October 1, 2002, affecting direct spending

or receipts that increases the deficit will trigger an offsetting sequestration.

(b) SEQUESTRATION.— (1) TIMING.—Not later than 15 calendar days after the

date Congress adjourns to end a session and on the same day

as a sequestration (if any) under section 251 or 253, there shall

be a sequestration to offset the amount of any net deficit increase caused by all direct spending and receipts legislation enacted before October 1, 2002, as calculated under paragraph

(2).

(2) CALCULATION OF DEFICIT INCREASE.—OMB shall calculate the amount of deficit increase or decrease by adding—

(A) all OMB estimates for the budget year of direct

spending and receipts legislation transmitted under subsection (d);

(B) the estimated amount of savings in direct spending

programs applicable to budget year 2 resulting from the

prior year’s sequestration under this section or section 253,

if any, as published in OMB’s final sequestration report for

that prior year; and

(C) any net deficit increase or decrease in the current

year resulting from all OMB estimates for the current year

of direct spending and receipts legislation transmitted

under subsection (d) that were not reflected in the final

OMB sequestration report for the current year.

(c) ELIMINATING A DEFICIT INCREASE.—(1) The amount required to be sequestered in a fiscal year under subsection (b) shall

be obtained from non-exempt direct spending accounts from actions

taken in the following order:

(A) FIRST.—All reductions in automatic spending increases

specified in section 256(a) shall be made.

(B) SECOND.—If additional reductions in direct spending

accounts are required to be made, the maximum reductions

permissible under sections 256(b) (guaranteed and direct student loans) and 256(c) (foster care and adoption assistance)

shall be made.

Sec. 252 DEFICIT CONTROL ACT OF 1985 94

1So in original. Probably should refer to subsection (b).

(C) THIRD.—(i) If additional reductions in direct spending

accounts are required to be made, each remaining non-exempt

direct spending account shall be reduced by the uniform percentage necessary to make the reductions in direct spending

required by paragraph (1) 1; except that the medicare programs

specified in section 256(d) shall not be reduced by more than

4 percent and the uniform percentage applicable to all other direct spending programs under this paragraph shall be increased (if necessary) to a level sufficient to achieve the required reduction in direct spending.

(ii) For purposes of determining reductions under clause

(i), outlay reductions (as a result of sequestration of Commodity Credit Corporation commodity price support contracts in

the fiscal year of a sequestration) that would occur in the following fiscal year shall be credited as outlay reductions in the

fiscal year of the sequestration.

(2) For purposes of this subsection, accounts shall be assumed

to be at the level in the baseline.

(d) ESTIMATES.—

(1) CBO ESTIMATES.—As soon as practicable after Congress

completes action on any direct spending or receipts legislation,

CBO shall provide an estimate to OMB of that legislation.

(2) OMB ESTIMATES.—Not later than 7 calendar days (excluding Saturdays, Sundays, and legal holidays) after the date

of enactment of any direct spending or receipts legislation,

OMB shall transmit a report to the House of Representatives

and to the Senate containing—

(A) the CBO estimate of that legislation;

(B) an OMB estimate of that legislation using current

economic and technical assumptions; and

(C) an explanation of any difference between the 2 estimates.

(3) SIGNIFICANT DIFFERENCES.—If during the preparation

of the report under paragraph (2) OMB determines that there

is a significant difference between the OMB and CBO estimates, OMB shall consult with the Committees on the Budget

of the House of Representatives and the Senate regarding that

difference and that consultation, to the extent practicable,

shall include written communication to such committees that

affords such committees the opportunity to comment before the

issuance of that report.

(4) SCOPE OF ESTIMATES.—The estimates under this section

shall include the amount of change in outlays or receipts for

the current year (if applicable), the budget year, and each outyear excluding any amounts resulting from—

(A) full funding of, and continuation of, the deposit insurance guarantee commitment in effect under current estimates; and

(B) emergency provisions as designated under subsection (e).

95 Sec. 253 DEFICIT CONTROL ACT OF 1985

1See clause 2(e) of rule XXI of the Rules of the House of Representatives.

(5) SCOREKEEPING GUIDELINES.—OMB and CBO, after consultation with each other and the Committees on the Budget

of the House of Representatives and the Senate, shall—

(A) determine common scorekeeping guidelines; and

(B) in conformance with such guidelines, prepare estimates under this section.

(e) 1 EMERGENCY LEGISLATION.—If a provision of direct spending or receipts legislation is enacted that the President designates

as an emergency requirement and that the Congress so designates

in statute, the amounts of new budget authority, outlays, and receipts in all fiscal years resulting from that provision shall be designated as an emergency requirement in the reports required under

subsection (d). This subsection shall not apply to direct spending

provisions to cover agricultural crop disaster assistance.

SEC. 253. ø2 U.S.C. 903¿ ENFORCING DEFICIT TARGETS.

(a) SEQUESTRATION.—Within 15 calendar days after Congress

adjourns to end a session (other than of the One Hundred First

Congress) and on the same day as a sequestration (if any) under

section 251 and section 252, but after any sequestration required

by section 251 (enforcing discretionary spending limits) or section

252 (enforcing pay-as-you-go), there shall be a sequestration to

eliminate the excess deficit (if any remains) if it exceeds the margin.

(b) EXCESS DEFICIT; MARGIN.—The excess deficit is, if greater

than zero, the estimated deficit for the budget year, minus—

(1) the maximum deficit amount for that year;

(2) the amounts for that year designated as emergency direct spending or receipts legislation under section 252(e); and

(3) for any fiscal year in which there is not a full adjustment for technical and economic reestimates, the deposit insurance reestimate for that year, if any, calculated under subsection (h).

The ‘‘margin’’ for fiscal year 1992 or 1993 is zero and for fiscal year

1994 or 1995 is $15,000,000,000.

(c) DIVIDING THE SEQUESTRATION.—To eliminate the excess deficit in a budget year, half of the required outlay reductions shall

be obtained from non-exempt defense accounts (accounts designated as function 050 in the President’s fiscal year 1991 budget

submission) and half from non-exempt, non-defense accounts (all

other non-exempt accounts).

(d) DEFENSE.—Each non-exempt defense account shall be reduced by a dollar amount calculated by multiplying the level of

sequestrable budgetary resources in that account at that time by

the uniform percentage necessary to carry out subsection (c), except

that, if any military personnel are exempt, adjustments shall be

made under the procedure set forth in section 251(a)(3).

(e) NON-DEFENSE.—Actions to reduce non-defense accounts

shall be taken in the following order:

(1) FIRST.—All reductions in automatic spending increases

under section 256(a) shall be made.

(2) SECOND.—If additional reductions in non-defense accounts are required to be made, the maximum reduction perVerDate 11-SEP-98 15:16 May 02, 2000 Jkt 000000 PO 00000 Frm 00095 Fmt 9001 Sfmt 9001 H:\DOCS\CP4COM~1\53587.TXT HBUDGET1 PsN: HBUDGET1
Sec. 253 DEFICIT CONTROL ACT OF 1985 96

missible under sections 256(b) (guaranteed student loans) and

256(c) (foster care and adoption assistance) shall be made.

(3) THIRD.—(A) If additional reductions in non-defense accounts are required to be made, each remaining non-exempt,

non-defense account shall be reduced by the uniform percentage necessary to make the reductions in non-defense outlays

required by subsection (c), except that—

(i) the medicare program specified in section 256(d)

shall not be reduced by more than 2 percent in total including any reduction of less than 2 percent made under

section 252 or, if it has been reduced by 2 percent or more

under section 252, it may not be further reduced under

this section; and

(ii) the health programs set forth in section 256(e)

shall not be reduced by more than 2 percent in total (including any reduction made under section 251),

and the uniform percent applicable to all other programs under

this subsection shall be increased (if necessary) to a level sufficient to achieve the required reduction in non-defense outlays.

(B) For purposes of determining reductions under subparagraph (A), outlay reduction (as a result of sequestration of

Commodity Credit Corporation commodity price support contracts in the fiscal year of a sequestration) that would occur in

the following fiscal year shall be credited as outlay reductions

in the fiscal year of the sequestration.

(f) BASELINE ASSUMPTIONS; PART-YEAR APPROPRIATIONS.— (1) BUDGET ASSUMPTIONS.—For purposes of subsections (b),

(c), (d), and (e), accounts shall be assumed to be at the level

in the baseline minus any reductions required to be made

under sections 251 and 252.

(2) PART-YEAR APPROPRIATIONS.—If, on the date specified

in subsection (a), there is in effect an Act making or continuing

appropriations for part of a fiscal year for any non-exempt

budget account, then the dollar sequestration calculated for

that account under subsection (d) or (e), as applicable, shall be

subtracted from—

(A) the annualized amount otherwise available by law

in that account under that or a subsequent part-year appropriation; and

(B) when a full-year appropriation for that account is

enacted, from the amount otherwise provided by the fullyear appropriation; except that the amount to be sequestered from that account shall be reduced (but not below

zero) by the savings achieved by that appropriation when

the enacted amount is less than the baseline for that account.

(g) ADJUSTMENTS TO MAXIMUM DEFICIT AMOUNTS.—

(1) ADJUSTMENTS.—

(A) When the President submits the budget for fiscal

year 1992, the maximum deficit amounts for fiscal years

1992, 1993, 1994, and 1995 shall be adjusted to reflect upto-date reestimates of economic and technical assumptions

and any changes in concepts or definitions. When the

President submits the budget for fiscal year 1993, the

97 Sec. 253 DEFICIT CONTROL ACT OF 1985

maximum deficit amounts for fiscal years 1993, 1994, and

1995 shall be further adjusted to reflect up-to-date reestimates of economic and technical assumptions and any

changes in concepts or definitions.

(B) When submitting the budget for fiscal year 1994,

the President may choose to adjust the maximum deficit

amounts for fiscal years 1994 and 1995 to reflect up-todate reestimates of economic and technical assumptions. If

the President chooses to adjust the maximum deficit

amount when submitting the fiscal year 1994 budget, the

President may choose to invoke the same adjustment procedure when submitting the budget for fiscal year 1995. In

each case, the President must choose between making no

adjustment or the full adjustment described in paragraph

(2). If the President chooses to make that full adjustment,

then those procedures for adjusting discretionary spending

limits described in sections 251(b)(1)(C) and 251(b)(2)(E),

otherwise applicable through fiscal year 1993 or 1994 (as

the case may be), shall be deemed to apply for fiscal year

1994 (and 1995 if applicable).

(C) When the budget for fiscal year 1994 or 1995 is

submitted and the sequestration reports for those years

under section 254 are made (as applicable), if the President does not choose to make the adjustments set forth in

subparagraph (B), the maximum deficit amount for that

fiscal year shall be adjusted by the amount of the adjustment to discretionary spending limits first applicable for

that year (if any) under section 251(b).

(D) For each fiscal year the adjustments required to be

made with the submission of the President’s budget for

that year shall also be made when OMB submits the sequestration update report and the final sequestration report for that year, but OMB shall continue to use the economic and technical assumptions in the President’s budget

for that year.

Each adjustment shall be made by increasing or decreasing the

maximum deficit amounts set forth in section 601 of the Congressional Budget Act of 1974.

(2) CALCULATIONS OF ADJUSTMENTS.—The required increase or decrease shall be calculated as follows:

(A) The baseline deficit or surplus shall be calculated

using up-to-date economic and technical assumptions,

using up-to-date concepts and definitions, and, in lieu of

the baseline levels of discretionary appropriations, using

the discretionary spending limits set forth in section 601

of the Congressional Budget Act of 1974 as adjusted under

section 251.

(B) The net deficit increase or decrease caused by all

direct spending and receipts legislation enacted after the

date of enactment of this section (after adjusting for any

sequestration of direct spending accounts) shall be calculated for each fiscal year by adding—

Sec. 254 DEFICIT CONTROL ACT OF 1985 98

(i) the estimates of direct spending and receipts

legislation transmitted under section 252(d) applicable

to each such fiscal year; and

(ii) the estimated amount of savings in direct

spending programs applicable to each such fiscal year

resulting from the prior year’s sequestration under

this section or section 252 of direct spending, if any,

as contained in OMB’s final sequestration report for

that year.

(C) The amount calculated under subparagraph (B)

shall be subtracted from the amount calculated under subparagraph (A).

(D) The maximum deficit amount set forth in section

601 of the Congressional Budget Act of 1974 shall be subtracted from the amount calculated under subparagraph

(C).

(E) The amount calculated under subparagraph (D)

shall be the amount of the adjustment required by paragraph (1).

(h) TREATMENT OF DEPOSIT INSURANCE.—

(1) INITIAL ESTIMATES.—The initial estimates of the net

costs of federal deposit insurance for fiscal year 1994 and fiscal

year 1995 (assuming full funding of, and continuation of, the

deposit insurance guarantee commitment in effect on the date

of the submission of the budget for fiscal year 1993) shall be

set forth in that budget.

(2) REESTIMATES.—For fiscal year 1994 and fiscal year

1995, the amount of the reestimate of deposit insurance costs

shall be calculated by subtracting the amount set forth under

paragraph (1) for that year from the current estimate of deposit insurance costs (but assuming full funding of, and continuation of, the deposit insurance guarantee commitment in

effect on the date of submission of the budget for fiscal year

1993).

SEC. 254. ø2 U.S.C. 904¿ REPORTS AND ORDERS.

(a) TIMETABLE.—The timetable with respect to this part for any

budget year is as follows:

Date: Action to be completed:

January 21 ............................................ Notification regarding optional adjustment of maximum deficit amount.

5 days before the President’s budget

submission.

CBO sequestration preview report.

The President’s budget submission ..... OMB sequestration preview report.

August 10 .............................................. Notification regarding military personnel.

August 15 .............................................. CBO sequestration update report.

August 20 .............................................. OMB sequestration update report.

10 days after end of session ................ CBO final sequestration report.

15 days after end of session ................ OMB final sequestration report; Presidential order.

(b) SUBMISSION AND AVAILABILITY OF REPORTS.—Each report

required by this section shall be submitted, in the case of CBO, to

the House of Representatives, the Senate and OMB and, in the

case of OMB, to the House of Representatives, the Senate, and the

99 Sec. 254 DEFICIT CONTROL ACT OF 1985

1So in original. Probably should be ‘‘section’’.

President on the day it is issued. On the following day a notice of

the report shall be printed in the Federal Register.

(c) SEQUESTRATION PREVIEW REPORTS.—

(1) REPORTING REQUIREMENT.—On the dates specified in

subsection (a), OMB and CBO shall issue a preview report regarding discretionary, pay-as-you-go, and deficit sequestration

based on laws enacted through those dates.

(2) DISCRETIONARY SEQUESTRATION REPORT.—The preview

reports shall set forth estimates for the current year and each

subsequent year through 2002 of the applicable discretionary

spending limits for each category and an explanation of any

adjustments in such limits under section 251.

(3) PAY-AS-YOU-GO SEQUESTRATION REPORTS.—The preview

reports shall set forth, for the current year and the budget

year, estimates for each of the following:

(A) The amount of net deficit increase or decrease, if

any, calculated under subsection 1 252(b).

(B) A list identifying each law enacted and sequestration implemented after the date of enactment of this section included in the calculation of the amount of deficit increase or decrease and specifying the budgetary effect of

each such law.

(C) The sequestration percentage or (if the required

sequestration percentage is greater than the maximum allowable percentage for medicare) percentages necessary to

eliminate a deficit increase under section 252(c).

(4) DEFICIT SEQUESTRATION REPORTS.—The preview reports

shall set forth for the budget year estimates for each of the following:

(A) The maximum deficit amount, the estimated deficit calculated under section 253(b), the excess deficit, and

the margin.

(B) The amount of reductions required under section

252, the excess deficit remaining after those reductions

have been made, and the amount of reductions required

from defense accounts and the reductions required from

non-defense accounts.

(C) The sequestration percentage necessary to achieve

the required reduction in defense accounts under section

253(d).

(D) The reductions required under sections 253(e)(1)

and 253(e)(2).

(E) The sequestration percentage necessary to achieve

the required reduction in non-defense accounts under section 253(e)(3).

The CBO report need not set forth the items other than the

maximum deficit amount for fiscal year 1992, 1993, or any fiscal year for which the President notifies the House of Representatives and the Senate that he will adjust the maximum

deficit amount under the option under section 253(g)(1)(B).

Sec. 254 DEFICIT CONTROL ACT OF 1985 100

1So in original. Probably should be ‘‘section’’.

2So in original. Probably should be ‘‘sequestrable’’.

(5) EXPLANATION OF DIFFERENCES.—The OMB reports shall

explain the differences between OMB and CBO estimates for

each item set forth in this subsection.

(d) NOTIFICATION REGARDING MILITARY PERSONNEL.—On or before the date specified in subsection (a), the President shall notify

the Congress of the manner in which he intends to exercise flexibility with respect to military personnel accounts under section 255(f).

(e) SEQUESTRATION UPDATE REPORTS.—On the dates specified

in subsection (a), OMB and CBO shall issue a sequestration update

report, reflecting laws enacted through those dates, containing all

of the information required in the sequestration preview reports.

(f) FINAL SEQUESTRATION REPORTS.—

(1) REPORTING REQUIREMENT.—On the dates specified in

subsection (a), OMB and CBO shall issue a final sequestration

report, updated to reflect laws enacted through those dates.

(2) DISCRETIONARY SEQUESTRATION REPORTS.—The final reports shall set forth estimates for each of the following:

(A) For the current year and each subsequent year

through 2002 the applicable discretionary spending limits

for each category and an explanation of any adjustments

in such limits under section 251.

(B) For the current year and the budget year the estimated new budget authority and outlays for each category

and the breach, if any, in each category.

(C) For each category for which a sequestration is required, the sequestration percentages necessary to achieve

the required reduction.

(D) For the budget year, for each account to be sequestered, estimates of the baseline level of sequesterable

budgetary resources and resulting outlays and the amount

of budgetary resources to be sequestered and resulting outlay reductions.

(3) PAY-AS-YOU-GO AND DEFICIT SEQUESTRATION REPORTS.—

The final reports shall contain all the information required in

the pay-as-you-go and deficit sequestration preview reports. In

addition, these reports shall contain, for the budget year, for

each account to be sequestered, estimates of the baseline level

of sequestrable budgetary resources and resulting outlays and

the amount of budgetary resources to be sequestered and resulting outlay reductions. The reports shall also contain estimates of the effects on outlays of the sequestration in each outyear for direct spending programs.

(4) EXPLANATION OF DIFFERENCES.—The OMB report shall

explain any differences between OMB and CBO estimates of

the amount of any net deficit change calculated under subsection 1 252(b), any excess deficit, any breach, and any required sequestration percentage. The OMB report shall also

explain differences in the amount of sequesterable 2 resources

for any budget account to be reduced if such difference is greater than $5,000,000.

101 Sec. 255 DEFICIT CONTROL ACT OF 1985

(5) PRESIDENTIAL ORDER.—On the date specified in subsection (a), if in its final sequestration report OMB estimates

that any sequestration is required, the President shall issue an

order fully implementing without change all sequestrations required by the OMB calculations set forth in that report. This

order shall be effective on issuance.

(g) WITHIN-SESSION SEQUESTRATION REPORTS AND ORDER.—If

an appropriation for a fiscal year in progress is enacted (after Congress adjourns to end the session for that budget year and before

July 1 of that fiscal year) that causes a breach, 10 days later CBO

shall issue a report containing the information required in paragraph (f)(2). Fifteen days after enactment, OMB shall issue a report containing the information required in paragraphs (f)(2) and

(f)(4). On the same day as the OMB report, the President shall

issue an order fully implementing without change all sequestrations required by the OMB calculations set forth in that report.

This order shall be effective on issuance.

(h) GAO COMPLIANCE REPORT.—Upon request of the Committee on the Budget of the House of Representatives or the Senate,

the Comptroller General shall submit to the Congress and the

President a report on—

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

under this section complies with all of the requirements contained in this part, either certifying that the order fully and accurately complies with such requirements or indicating the respects in which it does not; and

(2) the extent to which each report issued by OMB or CBO

under this section complies with all of the requirements contained in this part, either certifying that the report fully and

accurately complies with such requirements or indicating the

respects in which it does not.

(i) LOW-GROWTH REPORT.—At any time, CBO shall notify the

Congress if—

(1) during the period consisting of the quarter during

which such notification is given, the quarter preceding such notification, and the 4 quarters following such notification, CBO

or OMB has determined that real economic growth is projected

or estimated to be less than zero with respect to each of any

2 consecutive quarters within such period; or

(2) the most recent of the Department of Commerce’s advance preliminary or final reports of actual real economic

growth indicate that the rate of real economic growth for each

of the most recently reported quarter and the immediately preceding quarter is less than one percent.

(j) ECONOMIC AND TECHNICAL ASSUMPTIONS.—In all reports required by this section, OMB shall use the same economic and technical assumptions as used in the most recent budget submitted by

the President under section 1105(a) of title 31, United States Code.

SEC. 255. ø2 U.S.C. 905¿ EXEMPT PROGRAMS AND ACTIVITIES.

(a) SOCIAL SECURITY BENEFITS AND TIER I RAILROAD RETIREMENT BENEFITS.—Benefits payable under the old-age, survivors,

and disability insurance program established under title II of the

Social Security Act, and benefits payable under section 3(a), 3(f)(3),

Sec. 255 DEFICIT CONTROL ACT OF 1985 102

4(a), or 4(f) of the Railroad Retirement Act of 1974, shall be exempt

from reduction under any order issued under this part.

(b) VETERANS PROGRAMS.—The following programs shall be exempt from reduction under any order issued under this part:

National Service Life Insurance Fund (36–8132–0–7–701);

Service-Disabled Veterans Insurance Fund (36–4012–0–3–

701);

Veterans Special Life Insurance Fund (36–8455–0–8–701);

Veterans Reopened Insurance Fund (36–4010–0–3–701);

United States Government Life Insurance Fund (36–8150–

0–7–701);

Veterans Insurance and Indemnities (36–0120–0–1–701);

Special Therapeutic and Rehabilitation Activities Fund

(36–4048–0–3–703);

Canteen Service Revolving Fund (36–4014–0–3–705);

Benefits under chapter 21 of title 38, United States Code,

relating to specially adapted housing and mortgage-protection

life insurance for certain veterans with service-connected disabilities (36–0120–0–1–701);

Benefits under section 907 of title 38, United States Code,

relating to burial benefits for veterans who die as a result of

service-connected disability (36–0155–0–1–701);

Benefits under chapter 39 of title 38, United States Code,

relating to automobiles and adaptive equipment for certain disabled veterans and members of the Armed Forces (36–0137–0–

1–702);

Compensation (36–0153–0–1–701); and

Pensions (36–0154–0–1–701).

Benefits under chapter 35 of title 38, United States Code,

related to educational assistance for survivors and dependents

of certain veterans with service-connected disabilities (36–

0137–0–1–702);

Assistance and services under chapter 31 of title 38,

United States Code, relating to training and rehabilitation for

certain veterans with service-connected disabilities (36–0137–

0–1–702);

Benefits under subchapters I, II, and III of chapter 37 of

title 38, United States Code, relating to housing loans for certain veterans and for the spouses and surviving spouses of certain veterans Guaranty and Indemnity Program Account (36–

1119–0–1–704);

Loan Guaranty Program Account (36–1025–0–1–704); and

Direct Loan Program Account (36–1024–0–1–704).

(c) NET INTEREST.—No reduction of payments for net interest

(all of major functional category 900) shall be made under any

order issued under this part.

(d) EARNED INCOME TAX CREDIT.—Payments to individuals

made pursuant to section 32 of the Internal Revenue Code of 1954

shall be exempt from reduction under any order issued under this

part.

(e) NON-DEFENSE UNOBLIGATED BALANCES.—Unobligated balances of budget authority carried over from prior fiscal years, except balances in the defense category, shall be exempt from reduction under any order issued under this part.

103 Sec. 255 DEFICIT CONTROL ACT OF 1985

(f) OPTIONAL EXEMPTION OF MILITARY PERSONNEL.— (1) IN GENERAL.—The President may, with respect to any

military personnel account, exempt that account from sequestration or provide for a lower uniform percentage reduction

than would otherwise apply.

(2) LIMITATION.—The President may not use the authority

provided by paragraph (1) unless the President notifies the

Congress of the manner in which such authority will be exercised on or before the date specified in section 254(a) for the

budget year.

(g) OTHER PROGRAMS AND ACTIVITIES.— (1)(A) The following budget accounts and activities shall be

exempt from reduction under any order issued under this part:

Activities resulting from private donations, bequests,

or voluntary contributions to the Government;

Activities financed by voluntary payments to the Government for goods or services to be provided for such payments;

Administration of Territories, Northern Mariana Islands Covenant grants (14–0412–0–1–806);

Alaska Power Administration, Operations and maintenance (89–0304–0–1–271);

Appropriations for the District of Columbia (to the extent they are appropriations of locally raised funds);

Bonneville Power Administration fund and borrowing

authority established pursuant to section 13 of Public Law

93–454 (1974), as amended (89–4045–0–3–271);

Bureau of Indian Affairs, Indian land and water

claims settlements and miscellaneous payments to Indians

(14–2303–0–1–452);

Bureau of Indian Affairs Miscellaneous trust funds

(14–9973–0–7–999);

Claims, judgments, and relief acts (20–1895–0–1–808);

Compact of Free Association (14–0415–0–1–808);

Compensation of the President (11–0001–0–1–802);

Conservation Reserve Program (12–2319–0–1–302);

Customs Service, miscellaneous permanent appropriations (20–9922–0–2–806);

Comptroller of the Currency, Assessment funds (20–

8413–0–8–373);

Dual benefits payments account (60–0111–0–1–601);

Exchange stabilization fund (20–4444–0–3–155);

Farm Credit Administration, Limitation on Administrative Expenses (78–4131–0–3–351);

Farm Credit System Financial Assistance Corporation,

interest payment (20–1850–0–1–908);

Farm Credit System Financial Assistance Corporation,

interest payment (20–1850–0–1–351);

Federal Deposit Insurance Corporation, Bank Insurance Fund (51–4064–0–3–373);

Federal Deposit Insurance Corporation, FSLIC Resolution Fund (51–4065–0–3–373);

Federal Deposit Insurance Corporation, Savings Association Insurance Fund (51–4066–0–3–373); 1

Sec. 255 DEFICIT CONTROL ACT OF 1985 104

Federal Housing Finance Board (95–4039–0–3–371);

Federal payment to the railroad retirement accounts

(60–0113–0–1–601);

Foreign military sales trust fund (11–8242–0–7–155);

Health professions graduate student loan insurance

fund program account (75–0340–0–1–552);

Higher education facilities loans (91–0240–01–502);

Internal Revenue collections for Puerto Rico (20–5737–

0–2–806);

Intragovernmental funds, including those from which

the outlays are derived primarily from resources paid in

from other government accounts, except to the extent such

funds are augmented by direct appropriations for the fiscal

year during which an order is in effect;

Panama Canal Commission, Panama Canal Revolving

Fund (95–4061–0–3–403);

Medical facilities guarantee and loan fund, Federal interest subsidies for medical facilities (75–9931–0–3–550);

National Credit Union Administration operating fund

(25–4056–0–3–373);

National Credit Union Administration, Central liquidity facility (25–4470–0–3–373);

National Credit Union Administration, Credit union

share insurance fund (25–4468–0–3–373);

Office of Thrift Supervision (20–4108–0–3–373);

Payment of Vietnam and USS Pueblo prisoner-of-war

claims (15–0104–0–1–153);

Payment to civil service retirement and disability fund

(24–0200–0–1–805);

Payment to Judiciary Trust Funds (10–0941–0–1–

752);

Payments to copyright owners (03–5175–0–2–376);

Payments to health care trust funds (75–0580–0–1–

571);

Payments to military retirement fund (97–0040–0–1–

054);

Payments to social security trust funds (75–0404–0–1–

651);

Payments to the foreign service retirement and disability fund (11–1036–0–1–153 and 19–0540–0–1–153);

Payments to trust funds from excise taxes or other receipts properly creditable to such trust funds;

Payments to the United States territories, fiscal assistance (14–0418–0–1–806);

Payments to widows and heirs of deceased Members of

Congress (00–0215–0–1–801);

Postal service fund (18–4020–0–3–372);

Resolution Trust Corporation Revolving Fund (22–

4055–0–3–373);

Salaries of Article III judges;

Soldiers and Airmen’s Home, payment of claims (84–

8930–0–7–705);

Southeastern Power Administration, Operations and

maintenance (89–0302–0–1–271);

105 Sec. 255 DEFICIT CONTROL ACT OF 1985

1So in law. Indentation is wrong.

Southwestern Power Administration, Operations and

maintenance (89–0303–0–1–271);

Tennessee Valley Authority fund, except non-power

programs and activities (64–4110–0–3–999);

Thrift Savings Fund;

United States Enrichment Corporation (95–4054–0–3–

271);

Vaccine Injury Compensation (75–0320–0–1–551);

Vaccine Injury Compensation Program Trust Fund

(20–8175–0–7–551);

United States Enrichment Corporation;

Washington Metropolitan Area Transit Authority, interest payments (46–0300–0–1–401);

Western Area Power Administration, Construction, rehabilitation, operations, and maintenance (89–5068–0–2–

271); and

Western Area Power Administration, Colorado River

basins power marketing fund (89–4452–0–3–271).

(B) The following Federal retirement and disability accounts and activities shall be exempt from reduction under any

order issued under this part:

Black Lung Disability Trust Fund (20–8144–0–7–601);

Central Intelligence Agency retirement and disability

system fund (56–3400–0–1–054);

Civil service retirement and disability fund (24–8135–

0–7–602);

Comptrollers general retirement system (05–0107–0–

1–801);

Foreign service retirement and disability fund (19–

8186–0–7–602);

Judicial survivors’ annuities fund (10–8110–0–7–602);

Judicial Officers’ Retirement Fund (10–8122–0–7–

602);

Claims Judges’ Retirement Fund (10–8124–0–7–602);

Special workers compensation expenses, Longshoremen’s and harborworkers’ compensation benefits (16–

9971–0–7–601);

Military retirement fund (97–8097–0–7–602);

National Oceanic and Atmospheric Administration retirement (13–1450–0–1–306);

Pensions for former Presidents (47–0105–0–1–802);

Railroad Industry Pension Fund (60–8011–0–7–601);

Railroad 1 supplemental annuity pension fund (60–8012–0–

7–602);

Retired pay, Coast Guard (69–0241–0–1–403);

Retirement pay and medical benefits for commissioned

officers, Public Health Service (75–0379–0–1–551);

Special benefits, Federal Employees’ Compensation

Act (16–1521–0–1–600);

Special benefits for disabled coal miners (75–0409–0–

1–601); and

Sec. 255 DEFICIT CONTROL ACT OF 1985 106

1Superceded by temporary assistance for needy families as part of section 103 of the Personal

Responsibility and Work Opportunity Act of 1996.

Tax Court judges survivors annuity fund (23–8115–0–

7–602).

(2) Prior legal obligations of the Government in the following budget accounts and activities shall be exempt from any

order issued under this part:

Biomass energy development (20–0114–0–1–271);

United States Treasury check forgery insurance fund

(20–4109–0–3–803);

Credit liquidating accounts;

Employees life insurance fund (24–8424–0–8–602);

Energy security reserve (Synthetic Fuels Corporation)

(20–0112–0–1–271);

Federal Aviation Administration, Aviation insurance

revolving fund (69–4120–0–3–402);

Federal Crop Insurance Corporation fund (12–4085–0–

3–351);

Federal Emergency Management Agency, National

flood insurance fund (58–4236–0–3–453);

Federal Emergency Management Agency, National insurance development fund (58–4235–0–3–451);

Geothermal resources development fund (89–0206–0–

1–271);

Homeowners assistance fund, Defense (97–4090–0–3–

051);

International Trade Administration, Operations and

administration (13–1250–0–1–376);

Low-rent public housing, Loans and other expenses

(86–4098–0–3–604);

Maritime Administration, War-risk insurance revolving fund (69–4302–0–3–403);

Overseas Private Investment Corporation (71–4030–0–

3–151);

Pension Benefit Guaranty Corporation fund (16–4204–

0–3–601);

Rail service assistance (69–0122–0–1–401);

Department of Veterans Affairs, Servicemen’s group

life insurance fund (36–4009–0–3–701).

(h) LOW-INCOME PROGRAMS.—The following programs shall be

exempt from reduction under any order issued under this part:

Block grants to States for temporary assistance for needy

families; 1

Child nutrition programs (with the exception of special

milk programs) (12–3539–0–1–605);

Temporary assistance for needy families (75–1552–0–1–

609);

Contingency fund (75–1522–0–1–609);

Child care entitlement to States (75–1550–0–1–609);

Commodity supplemental food program (12–3512–0–1–

605);

Food stamp programs (12–3505–0–1–605 and 12–3550–0–

1–605);

107 Sec. 256 DEFICIT CONTROL ACT OF 1985

1So in law. The word ‘‘and’’ is extraneous.

2So in law. Probably should have the word ‘‘and’’ after the semicolon.

3So in law. Probably should end with a period.

Grants to States for Medicaid (75–0512–0–1–55l);

Supplemental Security Income Program (75–0406–0–1–

609); and 1

Special supplemental nutrition program for women, infants, and children (WIC) (12–3510–0–1–605); 2

Family support payments to States (75–1501–0–1–609); 3

(i) IDENTIFICATION OF PROGRAMS.—For purposes of subsections

(b), (g), and (h), each account is identified by the designated budget

account identification code number set forth in the Budget of the

United States Government 1998–Appendix, and an activity within

an account is designated by the name of the activity and the identification code number of the account.

SEC. 256. ø2 U.S.C. 906¿ GENERAL AND SPECIAL SEQUESTRATION

RULES.

(a) AUTOMATIC SPENDING INCREASES.—Automatic spending increases are increases in outlays due to changes in indexes in the

following programs:

(1) Special milk program; and

(2) Vocational rehabilitation basic State grants.

In those programs all amounts other than the automatic spending

increases shall be exempt from reduction under any order issued

under this part.

(b) STUDENT LOANS.—For all student loans under part B or D

of title IV of the Higher Education Act of 1965 made during the

period when a sequestration order under section 254 is in effect as

required by section 252 or 253, origination fees under sections

438(c)(2) and 455(c) of that Act shall each be increased by 0.50 percentage point.

(c) TREATMENT OF FOSTER CARE AND ADOPTION ASSISTANCE

PROGRAMS.—Any order issued by the President under section 254

shall make the reduction which is otherwise required under the

foster care and adoption assistance programs (established by part

E of title IV of the Social Security Act) only with respect to payments and expenditures made by States in which increases in foster care maintenance payment rates or adoption assistance payment rates (or both) are to take effect during the fiscal year involved, and only to the extent that the required reduction can be

accomplished by applying a uniform percentage reduction to the

Federal matching payments that each such State would otherwise

receive under section 474 of that Act (for such fiscal year) for that

portion of the State’s payments which is attributable to the increases taking effect during that year. No State’s matching payments from the Federal Government for foster care maintenance

payments or for adoption assistance maintenance payments may be

reduced by a percentage exceeding the applicable domestic sequestration percentage. No State may, after the date of the enactment

of this joint resolution, make any change in the timetable for making payments under a State plan approved under part E of title IV

of the Social Security Act which has the effect of changing the fiscal year in which expenditures under such part are made.

Sec. 256 DEFICIT CONTROL ACT OF 1985 108

(d) SPECIAL RULES FOR MEDICARE PROGRAM.— (1) CALCULATION OF REDUCTION IN INDIVIDUAL PAYMENT

AMOUNTS.—To achieve the total percentage reduction in those

programs required by sections 252 and 253, and notwithstanding section 710 of the Social Security Act, OMB shall determine, and the applicable Presidential order under section 254

shall implement, the percentage reduction that shall apply to

payments under the health insurance programs under title

XVIII of the Social Security Act for services furnished after the

order is issued, such that the reduction made in payments

under that order shall achieve the required total percentage reduction in those payments for that fiscal year as determined on

a 12-month basis.

(2) TIMING OF APPLICATION OF REDUCTIONS.— (A) IN GENERAL.—Except as provided in subparagraph

(B), if a reduction is made under paragraph (1) in payment

amounts pursuant to a sequestration order, the reduction

shall be applied to payment for services furnished during

the effective period of the order. For purposes of the previous sentence, in the case of inpatient services furnished

for an individual, the services shall be considered to be

furnished on the date of the individual’s discharge from

the inpatient facility.

(B) PAYMENT ON THE BASIS OF COST REPORTING PERI- ODS.—In the case in which payment for services of a provider of services is made under title XVIII of the Social Security Act on a basis relating to the reasonable cost incurred for the services during a cost reporting period of the

provider, if a reduction is made under paragraph (1) in

payment amounts pursuant to a sequestration order, the

reduction shall be applied to payment for costs for such

services incurred at any time during each cost reporting

period of the provider any part of which occurs during the

effective period of the order, but only (for each such cost

reporting period) in the same proportion as the fraction of

the cost reporting period that occurs during the effective

period of the order.

(3) NO INCREASE IN BENEFICIARY CHARGES IN ASSIGNMENTRELATED CASES.—If a reduction in payment amounts is made

under paragraph (1) for services for which payment under part

B of title XVIII of the Social Security Act is made on the basis

of an assignment described in section 1842(b)(3)(B)(ii), in accordance with section 1842(b)(6)(B), or under the procedure described in section 1870(f)(1), of such Act, the person furnishing

the services shall be considered to have accepted payment of

the reasonable charge for the services, less any reduction in

payment amount made pursuant to a sequestration order, as

payment in full.

(4) NO EFFECT ON COMPUTATION OF AAPCC.—In computing

the adjusted average per capita cost for purposes of section

1876(a)(4) of the Social Security Act, the Secretary of Health

and Human Services shall not take into account any reductions

in payment amounts which have been or may be effected under

this part.

109 Sec. 256 DEFICIT CONTROL ACT OF 1985

(e) COMMUNITY AND MIGRANT HEALTH CENTERS, INDIAN

HEALTH SERVICES AND FACILITIES, AND VETERANS’ MEDICAL

CARE.—

(1) The maximum permissible reduction in budget authority for any account listed in paragraph (2) for any fiscal year,

pursuant to an order issued under section 254, shall be 2 percent.

(2) The accounts referred to in paragraph (1) are as follows:

(A) Community health centers (75–0350–0–1–550).

(B) Migrant health centers (75–0350–0–1–550).

(C) Indian health facilities (75–0391–0–1–551).

(D) Indian health services (75–0390–0–1–551).

(E) Veterans’ medical care (36–0160–0–1–703).

For purposes of the preceding provisions of this paragraph,

programs are identified by the designated budget account identification code numbers set forth in the Budget of the United

States Government—Appendix.

(f) TREATMENT OF CHILD SUPPORT ENFORCEMENT PROGRAM.—

Notwithstanding any change in the display of budget accounts, any

order issued by the President under section 254 shall accomplish

the full amount of any required reduction in expenditures under

sections 455 and 458 of the Social Security Act by reducing the

Federal matching rate for State administrative costs under such

program, as specified (for the fiscal year involved) in section 455(a)

of such Act, to the extent necessary to reduce such expenditures by

that amount.

(g) FEDERAL PAY.—

(1) IN GENERAL.—For purposes of any order issued under

section 254—

(A) Federal pay under a statutory pay system, and

(B) elements of military pay,

shall be subject to reduction under an order in the same manner as other administrative expense components of the Federal

budget; except that no such order may reduce or have the effect of reducing the rate of pay to which any individual is entitled under any such statutory pay system (as increased by any

amount payable under section 5304 of title 5, United States

Code, or section 302 of the Federal Employees Pay Comparability Act of 1990) or the rate of any element of military pay to

which any individual is entitled under title 37, United States

Code, or any increase in rates of pay which is scheduled to

take effect under section 5303 of title 5, United States Code,

section 1009 of title 37, United States Code, or any other provision of law.

(2) DEFINITIONS.—For purposes of this subsection:

(A) The term ‘‘statutory pay system’’ shall have the

meaning given that term in section 5302(1) of title 5,

United States Code.

(B) The term ‘‘elements of military pay’’ means—

(i) the elements of compensation of members of

the uniformed services specified in section 1009 of title

37, United States Code,

Sec. 256 DEFICIT CONTROL ACT OF 1985 110

(ii) allowances provided members of the uniformed

services under sections 403a and 405 of such title, and

(iii) cadet pay and midshipman pay under section

203(c) of such title.

(C) The term ‘‘uniformed services’’ shall have the

meaning given that term in section 101(3) of title 37,

United States Code.

(h) TREATMENT OF FEDERAL ADMINISTRATIVE EXPENSES.—

(1) Notwithstanding any other provision of this title, administrative expenses incurred by the departments and agencies, including independent agencies, of the Federal Government in connection with any program, project, activity, or account shall be subject to reduction pursuant to an order issued

under section 254, without regard to any exemption, exception,

limitation, or special rule which is otherwise applicable with

respect to such program, project, activity, or account under this

part.

(2) Notwithstanding any other provision of law, administrative expenses of any program, project, activity, or account

which is self-supporting and does not receive appropriations

shall be subject to reduction under a sequester order, unless

specifically exempted in this part.

(3) Payments made by the Federal Government to reimburse or match administrative costs incurred by a State or political subdivision under or in connection with any program,

project, activity, or account shall not be considered administrative expenses of the Federal Government for purposes of this

section, and shall be subject to reduction or sequestration

under this part to the extent (and only to the extent) that

other payments made by the Federal Government under or in

connection with that program, project, activity, or account are

subject to such reduction or sequestration; except that Federal

payments made to a State as reimbursement of administrative

costs incurred by such State under or in connection with the

unemployment compensation programs specified in subsection

(h)(1) shall be subject to reduction or sequestration under this

part notwithstanding the exemption otherwise granted to such

programs under that subsection.

(4) Notwithstanding any other provision of law, this subsection shall not apply with respect to the following:

(A) Comptroller of the Currency.

(B) Federal Deposit Insurance Corporation.

(C) Office of Thrift Supervision.

(D) National Credit Union Administration.

(E) National Credit Union Administration, central liquidity facility.

(F) Federal Retirement Thrift Investment Board.

(G) Resolution Trust Corporation.

(H) Farm Credit Administration.

(i) TREATMENT OF PAYMENTS AND ADVANCES MADE WITH RESPECT TO UNEMPLOYMENT COMPENSATION PROGRAMS.—(1) For purposes of section 254—

111 Sec. 256 DEFICIT CONTROL ACT OF 1985

(A) any amount paid as regular unemployment compensation by a State from its account in the Unemployment Trust

Fund (established by section 904(a) of the Social Security Act),

(B) any advance made to a State from the Federal unemployment account (established by section 904(g) of such Act)

under title XII of such Act and any advance appropriated to

the Federal unemployment account pursuant to section 1203 of

such Act, and

(C) any payment made from the Federal Employees Compensation Account (as established under section 909 of such

Act) for the purpose of carrying out chapter 85 of title 5,

United States Code, and funds appropriated or transferred to

or otherwise deposited in such Account,

shall not be subject to reduction.

(2)(A) A State may reduce each weekly benefit payment made

under the Federal-State Extended Unemployment Compensation

Act of 1970 for any week of unemployment occurring during any

period with respect to which payments are reduced under an order

issued under section 254 by a percentage not to exceed the percentage by which the Federal payment to the State under section 204

of such Act is to be reduced for such week as a result of such order.

(B) A reduction by a State in accordance with subparagraph

(A) shall not be considered as a failure to fulfill the requirements

of section 3304(a)(11) of the Internal Revenue Code of 1954.

(j) COMMODITY CREDIT CORPORATION.— (1) POWERS AND AUTHORITIES OF THE COMMODITY CREDIT

CORPORATION.—This title shall not restrict the Commodity

Credit Corporation in the discharge of its authority and responsibility as a corporation to buy and sell commodities in

world trade, to use the proceeds as a revolving fund to meet

other obligations and otherwise operate as a corporation, the

purpose for which it was created.

(2) REDUCTION IN PAYMENTS MADE UNDER CONTRACTS.—(A)

Loan eligibility under any contract entered into with a person

by the Commodity Credit Corporation prior to the time an

order has been issued under section 254 shall not be reduced

by an order subsequently issued. Subject to subparagraph (B),

after an order is issued under such section for a fiscal year,

any cash payments for loans or loan deficiencies made by the

Commodity Credit Corporation shall be subject to reduction

under the order.

(B) Each loan contract entered into with producers or producer cooperatives with respect to a particular crop of a commodity and subject to reduction under subparagraph (A) shall

be reduced in accordance with the same terms and conditions.

If some, but not all, contracts applicable to a crop of a commodity have been entered into prior to the issuance of an order

under section 254, the order shall provide that the necessary

reduction in payments under contracts applicable to the commodity be uniformly applied to all contracts for the next succeeding crop of the commodity, under the authority provided in

paragraph (3).

(3) DELAYED REDUCTION IN OUTLAYS PERMISSIBLE.—Notwithstanding any other provision of this title, if an order under

Sec. 256 DEFICIT CONTROL ACT OF 1985 112

1So in law. Probably should refer to paragraph (6).

section 254 is issued with respect to a fiscal year, any reduction under the order applicable to contracts described in paragraph (1) may provide for reductions in outlays for the account

involved to occur in the fiscal year following the fiscal year to

which the order applies.

(4) UNIFORM PERCENTAGE RATE OF REDUCTION AND OTHER

LIMITATIONS.—All reductions described in paragraph (2) which

are required to be made in connection with an order issued

under section 254 with respect to a fiscal year shall be made

so as to ensure that outlays for each program, project, activity,

or account involved are reduced by a percentage rate that is

uniform for all such programs, projects, activities, and accounts, and may not be made so as to achieve a percentage

rate of reduction in any such item exceeding the rate specified

in the order.

(5) DAIRY PROGRAM.—Notwithstanding any other provision

of this subsection, as the sole means of achieving any reduction

in outlays under the milk price support program, the Secretary

of Agriculture shall provide for a reduction to be made in the

price received by producers for all milk produced in the United

States and marketed by producers for commercial use. That

price reduction (measured in cents per hundred weight of milk

marketed) shall occur under section 201(d)(2)(A) of the Agricultural Act of 1949 (7 U.S.C. 1446(d)(2)(A)), shall begin on the

day any sequestration order is issued under section 254, and

shall not exceed the aggregate amount of the reduction in outlays under the milk price support program that otherwise

would have been achieved by reducing payments for the purchase of milk or the products of milk under this subsection

during the applicable fiscal year.

(6) CERTAIN AUTHORITY NOT TO BE LIMITED.—Nothing in

this joint resolution shall limit or reduce, in any way, any appropriation that provides the Commodity Credit Corporation

with budget authority to cover the Corporation’s net realized

losses.

(k) EFFECTS OF SEQUESTRATION.—The effects of sequestration

shall be as follows:

(1) Budgetary resources sequestered from any account

shall be permanently cancelled, except as provided in paragraph (5) 1. (2) Except as otherwise provided, the same percentage sequestration shall apply to all programs, projects, and activities

within a budget account (with programs, projects, and activities as delineated in the appropriation Act or accompanying report for the relevant fiscal year covering that account, or for

accounts not included in appropriation Acts, as delineated in

the most recently submitted President’s budget).

(3) Administrative regulations or similar actions implementing a sequestration shall be made within 120 days of the

sequestration order. To the extent that formula allocations differ at different levels of budgetary resources within an account,

program, project, or activity, the sequestration shall be interVerDate 11-SEP-98 15:16 May 02, 2000 Jkt 000000 PO 00000 Frm 00112 Fmt 9001 Sfmt 9001 H:\DOCS\CP4COM~1\53587.TXT HBUDGET1 PsN: HBUDGET1
113 Sec. 257 DEFICIT CONTROL ACT OF 1985

1So in law. Probably should read ‘‘differences’’.

preted as producing a lower total appropriation, with the remaining amount of the appropriation being obligated in a manner consistent with program allocation formulas in substantive

law.

(4) Except as otherwise provided, obligations in sequestered accounts shall be reduced only in the fiscal year in which

a sequester occurs.

(5) If an automatic spending increase is sequestered, the

increase (in the applicable index) that was disregarded as a result of that sequestration shall not be taken into account in

any subsequent fiscal year.

(6) Budgetary resources sequestered in revolving, trust,

and special fund accounts and offsetting collections sequestered

in appropriation accounts shall not be available for obligation

during the fiscal year in which the sequestration occurs, but

shall be available in subsequent years to the extent otherwise

provided in law.

SEC. 257. ø2 U.S.C. 907¿ THE BASELINE.

(a) IN GENERAL.—For any budget year, the baseline refers to

a projection of current-year levels of new budget authority, outlays,

revenues, and the surplus or deficit into the budget year and the

outyears based on laws enacted through the applicable date.

(b) DIRECT SPENDING AND RECEIPTS.—For the budget year and

each outyear, the baseline shall be calculated using the following

assumptions:

(1) IN GENERAL.—Laws providing or creating direct spending and receipts are assumed to operate in the manner specified in those laws for each such year and funding for entitlement authority is assumed to be adequate to make all payments required by those laws.

(2) EXCEPTIONS.—(A)(i) No program established by a law

enacted on or before the date of enactment of the Balanced

Budget Act of 1997 with estimated current year outlays greater

than $50,000,000 shall be assumed to expire in the budget year

or the outyears. The scoring of new programs with estimated

outlays greater than $50,000,000 a year shall be based on scoring by the Committees on Budget or OMB, as applicable. OMB,

CBO, and the Budget Committees shall consult on the scoring

of such programs where there are differenes 1 between CBO

and OMB.

(ii) On the expiration of the suspension of a provision of

law that is suspended under section 171 of Public Law 104–

127 and that authorizes a program with estimated fiscal year

outlays that are greater than $50,000,000, for purposes of

clause (i), the program shall be assumed to continue to operate

in the same manner as the program operated immediately before the expiration of the suspension.

(B) The increase for veterans’ compensation for a fiscal

year is assumed to be the same as that required by law for veterans’ pensions unless otherwise provided by law enacted in

that session.

Sec. 257 DEFICIT CONTROL ACT OF 1985 114

(C) Excise taxes dedicated to a trust fund, if expiring, are

assumed to be extended at current rates.

(D) If any law expires before the budget year or any outyear, then any program with estimated current year outlays

greater than $50,000,000 that operates under that law shall be

assumed to continue to operate under that law as in effect immediately before its expiration.

(3) HOSPITAL INSURANCE TRUST FUND.—Notwithstanding

any other provision of law, the receipts and disbursements of

the Hospital Insurance Trust Fund shall be included in all calculations required by this Act.

(c) DISCRETIONARY APPROPRIATIONS.—For the budget year and

each outyear, the baseline shall be calculated using the following

assumptions regarding all amounts other than those covered by

subsection (b):

(1) INFLATION OF CURRENT-YEAR APPROPRIATIONS.—Budgetary resources other than unobligated balances shall be at the

level provided for the budget year in full-year appropriation

Acts. If for any account a full-year appropriation has not yet

been enacted, budgetary resources other than unobligated balances shall be at the level available in the current year, adjusted sequentially and cumulatively for expiring housing contracts as specified in paragraph (2), for social insurance administrative expenses as specified in paragraph (3), to offset pay

absorption and for pay annualization as specified in paragraph

(4), for inflation as specified in paragraph (5), and to account

for changes required by law in the level of agency payments for

personnel benefits other than pay.

(2) EXPIRING HOUSING CONTRACTS.—New budget authority

to renew expiring multiyear subsidized housing contracts shall

be adjusted to reflect the difference in the number of such contracts that are scheduled to expire in that fiscal year and the

number expiring in the current year, with the per-contract renewal cost equal to the average current-year cost of renewal

contracts.

(3) SOCIAL INSURANCE ADMINISTRATIVE EXPENSES.—Budgetary resources for the administrative expenses of the following

trust funds shall be adjusted by the percentage change in the

beneficiary population from the current year to that fiscal year:

the Federal Hospital Insurance Trust Fund, the Supplementary Medical Insurance Trust Fund, the Unemployment

Trust Fund, and the railroad retirement account.

(4) PAY ANNUALIZATION; OFFSET TO PAY ABSORPTION.—Current-year new budget authority for Federal employees shall be

adjusted to reflect the full 12-month costs (without absorption)

of any pay adjustment that occurred in that fiscal year.

(5) INFLATORS.—The inflator used in paragraph (1) to adjust budgetary resources relating to personnel shall be the percent by which the average of the Bureau of Labor Statistics

Employment Cost Index (wages and salaries, private industry

workers) for that fiscal year differs from such index for the current year. The inflator used in paragraph (1) to adjust all other

budgetary resources shall be the percent by which the average

of the estimated gross domestic product chain-type price index

115 Sec. 258 DEFICIT CONTROL ACT OF 1985

1So in law. Probably should be section 254(i).

for that fiscal year differs from the average of such estimated

index for the current year.

(6) CURRENT-YEAR APPROPRIATIONS.—If, for any account, a

continuing appropriation is in effect for less than the entire

current year, then the current-year amount shall be assumed

to equal the amount that would be available if that continuing

appropriation covered the entire fiscal year. If law permits the

transfer of budget authority among budget accounts in the current year, the current-year level for an account shall reflect

transfers accomplished by the submission of, or assumed for

the current year in, the President’s original budget for the

budget year.

(d) UP-TO-DATE CONCEPTS.—In deriving the baseline for any

budget year or outyear, current-year amounts shall be calculated

using the concepts and definitions that are required for that budget

year.

(e) ASSET SALES.—Amounts realized from the sale of an asset

shall not be included in estimates under section 251, 252, or 253

if that sale would result in a financial cost to the Federal Government as determined pursuant to scorekeeping guidelines.

SEC. 258. ø2 U.S.C. 907a¿ SUSPENSION IN THE EVENT OF WAR OR LOW

GROWTH.

(a) PROCEDURES IN THE EVENT OF A LOW GROWTH REPORT.— (1) TRIGGER.—Whenever CBO issues a low-growth report

under section 254(j) 1, the Majority Leader of the House of Representatives may, and the Majority Leader of the Senate shall,

introduce a joint resolution (in the form set forth in paragraph

(2)) declaring that the conditions specified in section 254(j) 1

are met and suspending the relevant provisions of this title, titles III and VI of the Congressional Budget Act of 1974, and

section 1103 of title 31, United States Code.

(2) FORM OF JOINT RESOLUTION.— (A) The matter after the resolving clause in any joint

resolution introduced pursuant to paragraph (1) shall be

as follows: ‘‘That the Congress declares that the conditions

specified in section 254(j) 1 of the Balanced Budget and

Emergency Deficit Control Act of 1985 are met, and the

implementation of the Congressional Budget and Impoundment Control Act of 1974, chapter 11 of title 31, United

States Code, and part C of the Balanced Budget and Emergency Deficit Control Act of 1985 are modified as described

in section 258(b) of the Balanced Budget and Emergency

Deficit Control Act of 1985.’’.

(B) The title of the joint resolution shall be ‘‘Joint resolution suspending certain provisions of law pursuant to

section 258(a)(2) of the Balanced Budget and Emergency

Deficit Control Act of 1985.’’; and the joint resolution shall

not contain any preamble.

(3) COMMITTEE ACTION.—Each joint resolution introduced

pursuant to paragraph (1) shall be referred to the appropriate

committees of the House of Representatives or the Committee

on the Budget of the Senate, as the case may be; and such

Sec. 258 DEFICIT CONTROL ACT OF 1985 116

Committee shall report the joint resolution to its House without amendment on or before the fifth day on which such House

is in session after the date on which the joint resolution is introduced. If the Committee fails to report the joint resolution

within the five-day period referred to in the preceding sentence, it shall be automatically discharged from further consideration of the joint resolution, and the joint resolution shall be

placed on the appropriate calendar.

(4) CONSIDERATION OF JOINT RESOLUTION.— (A) A vote on final passage of a joint resolution reported to the Senate or discharged pursuant to paragraph

(3) shall be taken on or before the close of the fifth calendar day of session after the date on which the joint resolution is reported or after the Committee has been discharged from further consideration of the joint resolution.

If prior to the passage by one House of a joint resolution

of that House, that House receives the same joint resolution from the other House, then—

(i) the procedure in that House shall be the same

as if no such joint resolution had been received from

the other House, but

(ii) the vote on final passage shall be on the joint

resolution of the other House.

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

House of Representatives (in the case of a House joint resolution agreed to in the House of Representatives) or the

Secretary of the Senate (in the case of a Senate joint resolution agreed to in the Senate) shall cause the joint resolution to be engrossed, certified, and transmitted to the other

House of the Congress as soon as practicable.

(B)(i) In the Senate, a joint resolution under this paragraph shall be privileged. It shall not be in order to move

to reconsider the vote by which the motion is agreed to or

disagreed to.

(ii) Debate in the Senate on a joint resolution under

this paragraph, and all debatable motions and appeals in

connection therewith, shall be limited to not more than

five hours. The time shall be equally divided between, and

controlled by, the majority leader and the minority leader

or their designees.

(iii) Debate in the Senate on any debatable motion or

appeal in connection with a joint resolution under this

paragraph shall be limited to not more than one hour, to

be equally divided between, and controlled by, the mover

and the manager of the joint resolution, except that in the

event the manager of the joint resolution is in favor of any

such motion or appeal, the time in opposition thereto shall

be controlled by the minority leader or his designee.

(iv) A motion in the Senate to further limit debate on

a joint resolution under this paragraph is not debatable. A

motion to table or to recommit a joint resolution under this

paragraph is not in order.

(C) No amendment to a joint resolution considered

under this paragraph shall be in order in the Senate.

117 Sec. 258A DEFICIT CONTROL ACT OF 1985

(b) SUSPENSION OF SEQUESTRATION PROCEDURES.—Upon the

enactment of a declaration of war or a joint resolution described in

subsection (a)—

(1) the subsequent issuance of any sequestration report or

any sequestration order is precluded;

(2) sections 302(f), 310(d), 311(a), and title VI of the Congressional Budget Act of 1974 are suspended; and

(3) section 1103 of title 31, United States Code, is suspended.

(c) RESTORATION OF SEQUESTRATION PROCEDURES.—

(1) In the event of a suspension of sequestration procedures due to a declaration of war, then, effective with the first

fiscal year that begins in the session after the state of war is

concluded by Senate ratification of the necessary treaties, the

provisions of subsection (b) triggered by that declaration of war

are no longer effective.

(2) In the event of a suspension of sequestration procedures due to the enactment of a joint resolution described in

subsection (a), then, effective with regard to the first fiscal

year beginning at least 12 months after the enactment of that

resolution, the provisions of subsection (b) triggered by that

resolution are no longer effective.

SEC. 258A. ø2 U.S.C. 907b¿ MODIFICATION OF PRESIDENTIAL ORDER.

(a) INTRODUCTION OF JOINT RESOLUTION.—At any time after

the Director of OMB issues a final sequestration report under section 254 for a fiscal year, but before the close of the twentieth calendar day of the session of Congress beginning after the date of

issuance of such report, the majority leader of either House of Congress may introduce a joint resolution which contains provisions directing the President to modify the most recent order issued under

section 254 or provide an alternative to reduce the deficit for such

fiscal year. After the introduction of the first such joint resolution

in either House of Congress in any calendar year, then no other

joint resolution introduced in such House in such calendar year

shall be subject to the procedures set forth in this section.

(b) PROCEDURES FOR CONSIDERATION OF JOINT RESOLUTIONS.—

(1) REFERRAL TO COMMITTEE.—A joint resolution introduced in the Senate under subsection (a) shall not be referred

to a committee of the Senate and shall be placed on the calendar pending disposition of such joint resolution in accordance

with this subsection.

(2) CONSIDERATION IN THE SENATE.—On or after the third

calendar day (excluding Saturdays, Sundays, and legal holidays) beginning after a joint resolution is introduced under

subsection (a), notwithstanding any rule or precedent of the

Senate, including Rule XXII of the Standing Rules of the Senate, it is in order (even though a previous motion to the same

effect has been disagreed to) for any Member of the Senate to

move to proceed to the consideration of the joint resolution.

The motion is not in order after the eighth calendar day (excluding Saturdays, Sundays, and legal holidays) beginning

after a joint resolution (to which the motion applies) is introduced. The joint resolution is privileged in the Senate. A moVerDate 11-SEP-98 15:16 May 02, 2000 Jkt 000000 PO 00000 Frm 00117 Fmt 9001 Sfmt 9001 H:\DOCS\CP4COM~1\53587.TXT HBUDGET1 PsN: HBUDGET1
Sec. 258A DEFICIT CONTROL ACT OF 1985 118

tion to reconsider the vote by which the motion is agreed to or

disagreed to shall not be in order. If a motion to proceed to the

consideration of the joint resolution is agreed to, the Senate

shall immediately proceed to consideration of the joint resolution without intervening motion, order, or other business, and

the joint resolution shall remain the unfinished business of the

Senate until disposed of.

(3) DEBATE IN THE SENATE.— (A) In the Senate, debate on a joint resolution introduced under subsection (a), amendments thereto, and all

debatable motions and appeals in connection therewith

shall be limited to not more than 10 hours, which shall be

divided equally between the majority leader and the minority leader (or their designees).

(B) A motion to postpone, or a motion to proceed to the

consideration of other business is not in order. A motion to

reconsider the vote by which the joint resolution is agreed

to or disagreed to is not in order, and a motion to recommit the joint resolution is not in order.

(C)(i) No amendment that is not germane to the provisions of the joint resolution or to the order issued under

section 254 shall be in order in the Senate. In the Senate,

an amendment, any amendment to an amendment, or any

debatable motion or appeal is debatable for not to exceed

30 minutes to be equally divided between, and controlled

by, the mover and the majority leader (or their designees),

except that in the event that the majority leader favors the

amendment, motion, or appeal, the minority leader (or the

minority leader’s designee) shall control the time in opposition to the amendment, motion, or appeal.

(ii) In the Senate, an amendment that is otherwise in

order shall be in order notwithstanding the fact that it

amends the joint resolution in more than one place or

amends language previously amended. It shall not be in

order in the Senate to vote on the question of agreeing to

such a joint resolution or any amendment thereto unless

the figures then contained in such joint resolution or

amendment are mathematically consistent.

(4) VOTE ON FINAL PASSAGE.—Immediately following the

conclusion of the debate on a joint resolution introduced under

subsection (a), a single quorum call at the conclusion of the debate if requested in accordance with the rules of the Senate,

and the disposition of any pending amendments under paragraph (3), the vote on final passage of the joint resolution shall

occur.

(5) APPEALS.—Appeals from the decisions of the Chair

shall be decided without debate.

(6) CONFERENCE REPORTS.—In the Senate, points of order

under titles III, IV, and VI of the Congressional Budget Act of

1974 are applicable to a conference report on the joint resolution or any amendments in disagreement thereto.

(7) RESOLUTION FROM OTHER HOUSE.—If, before the passage by the Senate of a joint resolution of the Senate introduced under subsection (a), the Senate receives from the House

119 Sec. 258B DEFICIT CONTROL ACT OF 1985

of Representatives a joint resolution introduced under subsection (a), then the following procedures shall apply:

(A) The joint resolution of the House of Representatives shall not be referred to a committee and shall be

placed on the calendar.

(B) With respect to a joint resolution introduced under

subsection (a) in the Senate—

(i) the procedure in the Senate shall be the same

as if no joint resolution had been received from the

House; but

(ii)(I) the vote on final passage shall be on the

joint resolution of the House if it is identical to the

joint resolution then pending for passage in the Senate; or

(II) if the joint resolution from the House is not

identical to the joint resolution then pending for passage in the Senate and the Senate then passes the

Senate joint resolution, the Senate shall be considered

to have passed the House joint resolution as amended

by the text of the Senate joint resolution.

(C) Upon disposition of the joint resolution received

from the House, it shall no longer be in order to consider

the resolution originated in the Senate.

(8) SENATE ACTION ON HOUSE RESOLUTION.—If the Senate

receives from the House of Representatives a joint resolution

introduced under subsection (a) after the Senate has disposed

of a Senate originated resolution which is identical to the

House passed joint resolution, the action of the Senate with regard to the disposition of the Senate originated joint resolution

shall be deemed to be the action of the Senate with regard to

the House originated joint resolution. If it is not identical to

the House passed joint resolution, then the Senate shall be

considered to have passed the joint resolution of the House as

amended by the text of the Senate joint resolution.

SEC. 258B. ø2 U.S.C. 907c¿ FLEXIBILITY AMONG DEFENSE PROGRAMS,

PROJECTS, AND ACTIVITIES.

(a) Subject to subsections (b), (c), and (d), new budget authority

and unobligated balances for any programs, projects, or activities

within major functional category 050 (other than a military personnel account) may be further reduced beyond the amount specified

in an order issued by the President under section 254 for such fiscal year. To the extent such additional reductions are made and result in additional outlay reductions, the President may provide for

lesser reductions in new budget authority and unobligated balances

for other programs, projects, or activities within major functional

category 050 for such fiscal year, but only to the extent that the

resulting outlay increases do not exceed the additional outlay reductions, and no such program, project, or activity may be increased above the level actually made available by law in appropriation Acts (before taking sequestration into account). In making

calculations under this subsection, the President shall use account

outlay rates that are identical to those used in the report by the

Director of OMB under section 254.

Sec. 258B DEFICIT CONTROL ACT OF 1985 120

1So in original. Probably should be ‘‘section’’.

(b) No actions taken by the President under subsection (a) for

a fiscal year may result in a domestic base closure or realignment

that would otherwise be subject to section 2687 of title 10, United

States Code.

(c) The President may not exercise the authority provided by

this paragraph 1 for a fiscal year unless—

(1) the President submits a single report to Congress specifying, for each account, the detailed changes proposed to be

made for such fiscal year pursuant to this section;

(2) that report is submitted within 5 calendar days of the

start of the next session of Congress; and

(3) a joint resolution affirming or modifying the changes

proposed by the President pursuant to this paragraph 1 becomes law.

(d) Within 5 calendar days of session after the President submits a report to Congress under subsection (c)(1) for a fiscal year,

the majority leader of each House of Congress shall (by request) introduce a joint resolution which contains provisions affirming the

changes proposed by the President pursuant to this paragraph. 1

(e)(1) The matter after the resolving clause in any joint resolution introduced pursuant to subsection (d) shall be as follows: ‘‘That

the report of the President as submitted on [Insert Date] under section 258B is hereby approved.’’.

(2) The title of the joint resolution shall be ‘‘Joint resolution

approving the report of the President submitted under section 258B

of the Balanced Budget and Emergency Deficit Control Act of

1985.’’.

(3) Such joint resolution shall not contain any preamble.

(f)(1) A joint resolution introduced in the Senate under subsection (d) shall be referred to the Committee on Appropriations,

and if not reported within 5 calendar days (excluding Saturdays,

Sundays, and legal holidays) from the date of introduction shall be

considered as having been discharged therefrom and shall be

placed on the appropriate calendar pending disposition of such joint

resolution in accordance with this subsection. In the Senate, no

amendment proposed in the Committee on Appropriations shall be

in order other than an amendment (in the nature of a substitute)

that is germane or relevant to the provisions of the joint resolution

or to the order issued under section 254. For purposes of this paragraph, an amendment shall be considered to be relevant if it relates to function 050 (national defense).

(2) On or after the third calendar day (excluding Saturdays,

Sundays, and legal holidays) beginning after a joint resolution is

placed on the Senate calendar, notwithstanding any rule or precedent of the Senate, including Rule XXII of the Standing Rules of

the Senate, it is in order (even though a previous motion to the

same effect has been disagreed to) for any Member of the Senate

to move to proceed to the consideration of the joint resolution. The

motion is not in order after the eighth calendar day (excluding Saturdays, Sundays, and legal holidays) beginning after such joint resolution is placed on the appropriate calendar. The motion is not debatable. The joint resolution is privileged in the Senate. A motion

121 Sec. 258B DEFICIT CONTROL ACT OF 1985

to reconsider the vote by which the motion is agreed to or disagreed to shall not be in order. If a motion to proceed to the consideration of the joint resolution is agreed to, the Senate shall immediately proceed to consideration of the joint resolution without intervening motion, order, or other business, and the joint resolution

shall remain the unfinished business of the Senate until disposed

of.

(g)(1) In the Senate, debate on a joint resolution introduced

under subsection (d), amendments thereto, and all debatable motions and appeals in connection therewith shall be limited to not

more than 10 hours, which shall be divided equally between the

majority leader and the minority leader (or their designees).

(2) A motion to postpone, or a motion to proceed to the consideration of other business is not in order. A motion to reconsider the

vote by which the joint resolution is agreed to or disagreed to is

not in order. In the Senate, a motion to recommit the joint resolution is not in order.

(h)(1) No amendment that is not germane or relevant to the

provisions of the joint resolution or to the order issued under section 254 shall be in order in the Senate. For purposes of this paragraph, an amendment shall be considered to be relevant if it relates to function 050 (national defense). In the Senate, an amendment, any amendment to an amendment, or any debatable motion

or appeal is debatable for not to exceed 30 minutes to be equally

divided between, and controlled by, the mover and the majority

leader (or their designees), except that in the event that the majority leader favors the amendment, motion, or appeal, the minority

leader (or the minority leader’s designee) shall control the time in

opposition to the amendment, motion, or appeal.

(2) In the Senate, an amendment that is otherwise in order

shall be in order notwithstanding the fact that it amends the joint

resolution in more than one place or amends language previously

amended, so long as the amendment makes or maintains mathematical consistency. It shall not be in order in the Senate to vote

on the question of agreeing to such a joint resolution or any amendment thereto unless the figures then contained in such joint resolution or amendment are mathematically consistent.

(3) It shall not be in order in the Senate to consider any

amendment to any joint resolution introduced under subsection (d)

or any conference report thereon if such amendment or conference

report would have the effect of decreasing any specific budget outlay reductions below the level of such outlay reductions provided in

such joint resolution unless such amendment or conference report

makes a reduction in other specific budget outlays at least equivalent to any increase in outlays provided by such amendment or conference report.

(4) For purposes of the application of paragraph (3), the level

of outlays and specific budget outlay reductions provided in an

amendment shall be determined on the basis of estimates made by

the Committee on the Budget of the Senate.

(i) Immediately following the conclusion of the debate on a

joint resolution introduced under subsection (d), a single quorum

call at the conclusion of the debate if requested in accordance with

the rules of the Senate, and the disposition of any pending amendVerDate 11-SEP-98 15:16 May 02, 2000 Jkt 000000 PO 00000 Frm 00121 Fmt 9001 Sfmt 9001 H:\DOCS\CP4COM~1\53587.TXT HBUDGET1 PsN: HBUDGET1
Sec. 258C DEFICIT CONTROL ACT OF 1985 122

ments under subsection (h), the vote on final passage of the joint

resolution shall occur.

(j) Appeals from the decisions of the Chair relating to the application of the rules of the Senate to the procedure relating to a

joint resolution described in subsection (d) shall be decided without

debate.

(k) In the Senate, points of order under titles III and IV of the

Congressional Budget Act of 1974 (including points of order under

sections 302(c), 303(a), 306, and 401(b)(1)) are applicable to a conference report on the joint resolution or any amendments in disagreement thereto.

(l) If, before the passage by the Senate of a joint resolution of

the Senate introduced under subsection (d), the Senate receives

from the House of Representatives a joint resolution introduced

under subsection (d), then the following procedures shall apply:

(1) The joint resolution of the House of Representatives

shall not be referred to a committee.

(2) With respect to a joint resolution introduced under subsection (d) in the Senate—

(A) the procedure in the Senate shall be the same as

if no joint resolution had been received from the House;

but

(B)(i) the vote on final passage shall be on the joint

resolution of the House if it is identical to the joint resolution then pending for passage in the Senate; or

(ii) if the joint resolution from the House is not identical to the joint resolution then pending for passage in the

Senate and the Senate then passes the Senate joint resolution, the Senate shall be considered to have passed the

House joint resolution as amended by the text of the Senate joint resolution.

(3) Upon disposition of the joint resolution received from the

House, it shall no longer be in order to consider the joint resolution

originated in the Senate.

(m) If the Senate receives from the House of Representatives

a joint resolution introduced under subsection (d) after the Senate

has disposed of a Senate originated joint resolution which is identical to the House passed joint resolution, the action of the Senate

with regard to the disposition of the Senate originated joint resolution shall be deemed to be the action of the Senate with regard to

the House originated joint resolution. If it is not identical to the

House passed joint resolution, then the Senate shall be considered

to have passed the joint resolution of the House as amended by the

text of the Senate joint resolution.

SEC. 258C. ø2 U.S.C. 907d¿ SPECIAL RECONCILIATION PROCESS.

(a) REPORTING OF RESOLUTIONS AND RECONCILIATION BILLS

AND RESOLUTIONS, IN THE SENATE.—

(1) COMMITTEE ALTERNATIVES TO PRESIDENTIAL ORDER.—

After the submission of an OMB sequestration update report

under section 254 that envisions a sequestration under section

252 or 253, each standing committee of the Senate may, not

later than October 10, submit to the Committee on the Budget

of the Senate information of the type described in section

123 Sec. 258C DEFICIT CONTROL ACT OF 1985

301(d) of the Congressional Budget Act of 1974 with respect to

alternatives to the order envisioned by such report insofar as

such order affects laws within the jurisdiction of the committee.

(2) INITIAL BUDGET COMMITTEE ACTION.—After the submission of such a report, the Committee on the Budget of the Senate may, not later than October 15, report to the Senate a resolution. The resolution may affirm the impact of the order envisioned by such report, in whole or in part. To the extent that

any part is not affirmed, the resolution shall state which parts

are not affirmed and shall contain instructions to committees

of the Senate of the type referred to in section 310(a) of the

Congressional Budget Act of 1974, sufficient to achieve at least

the total level of deficit reduction contained in those sections

which are not affirmed.

(3) RESPONSE OF COMMITTEES.—Committees instructed

pursuant to paragraph (2), or affected thereby, shall submit

their responses to the Budget Committee no later than 10 days

after the resolution referred to in paragraph (2) is agreed to,

except that if only one such Committee is so instructed such

Committee shall, by the same date, report to the Senate a reconciliation bill or reconciliation resolution containing its recommendations in response to such instructions. A committee

shall be considered to have complied with all instructions to it

pursuant to a resolution adopted under paragraph (2) if it has

made recommendations with respect to matters within its jurisdiction which would result in a reduction in the deficit at

least equal to the total reduction directed by such instructions.

(4) BUDGET COMMITTEE ACTION.—Upon receipt of the recommendations received in response to a resolution referred to

in paragraph (2), the Budget Committee shall report to the

Senate a reconciliation bill or reconciliation resolution, or both,

carrying out all such recommendations without any substantive revisions. In the event that a committee instructed in

a resolution referred to in paragraph (2) fails to submit any

recommendation (or, when only one committee is instructed,

fails to report a reconciliation bill or resolution) in response to

such instructions, the Budget Committee shall include in the

reconciliation bill or reconciliation resolution reported pursuant

to this subparagraph legislative language within the jurisdiction of the noncomplying committee to achieve the amount of

deficit reduction directed in such instructions.

(5) POINT OF ORDER.—It shall not be in order in the Senate

to consider any reconciliation bill or reconciliation resolution

reported under paragraph (4) with respect to a fiscal year, any

amendment thereto, or any conference report thereon if—

(A) the enactment of such bill or resolution as reported;

(B) the adoption and enactment of such amendment;

or

(C) the enactment of such bill or resolution in the form

recommended in such conference report,

would cause the amount of the deficit for such fiscal year to exceed the maximum deficit amount for such fiscal year, unless

Sec. 274 DEFICIT CONTROL ACT OF 1985 124

the low-growth report submitted under section 254 projects

negative real economic growth for such fiscal year, or for each

of any two consecutive quarters during such fiscal year.

(6) TREATMENT OF CERTAIN AMENDMENTS.—In the Senate,

an amendment which adds to a resolution reported under paragraph (2) an instruction of the type referred to in such paragraph shall be in order during the consideration of such resolution if such amendment would be in order but for the fact that

it would be held to be non-germane on the basis that the instruction constitutes new matter.

(7) DEFINITION.—For purposes of paragraphs (1), (2), and

(3), the term ‘‘day’’ shall mean any calendar day on which the

Senate is in session.

(b) PROCEDURES.—

(1) IN GENERAL.—Except as provided in paragraph (2), in

the Senate the provisions of sections 305 and 310 of the Congressional Budget Act of 1974 for the consideration of concurrent resolutions on the budget and conference reports thereon

shall also apply to the consideration of resolutions, and reconciliation bills and reconciliation resolutions reported under

this paragraph and conference reports thereon.

(2) LIMIT ON DEBATE.—Debate in the Senate on any resolution reported pursuant to subsection (a)(2), and all amendments thereto and debatable motions and appeals in connection therewith, shall be limited to 10 hours.

(3) LIMITATION ON AMENDMENTS.—Section 310(d)(2) of the

Congressional Budget Act shall apply to reconciliation bills and

reconciliation resolutions reported under this subsection.

(4) BILLS AND RESOLUTIONS RECEIVED FROM THE HOUSE.—

Any bill or resolution received in the Senate from the House,

which is a companion to a reconciliation bill or reconciliation

resolution of the Senate for the purposes of this subsection,

shall be considered in the Senate pursuant to the provisions of

this subsection.

(5) DEFINITION.—For purposes of this subsection, the term

‘‘resolution’’ means a simple, joint, or concurrent resolution.

* * * * * * *

PART E—MISCELLANEOUS AND RELATED PROVISIONS

* * * * * * *

SEC. 274. ø2 U.S.C. 922¿ JUDICIAL REVIEW.

(a) EXPEDITED REVIEW.—

(1) Any Member of Congress may bring an action, in the

United States District Court for the District of Columbia, for

declaratory judgment and injunctive relief on the ground that

any order that might be issued pursuant to section 254 violates

the Constitution.

(2) Any Member of Congress, or any other person adversely affected by any action taken under this title, may bring

an action, in the United States District Court for the District

of Columbia, for declaratory judgment and injunctive relief

concerning the constitutionality of this title.

125 Sec. 274 DEFICIT CONTROL ACT OF 1985

(3) Any Member of Congress may bring an action, in the

United States District Court for the District of Columbia, for

declaratory and injunctive relief on the ground that the terms

of an order issued under section 254 do not comply with the

requirements of this title.

(4) A copy of any complaint in an action brought under

paragraph (1), (2), or (3) shall be promptly delivered to the Secretary of the Senate and the Clerk of the House of Representatives, and each House of Congress shall have the right to intervene in such action.

(5) Any action brought under paragraph (1), (2), or (3)

shall be heard and determined by a three-judge court in accordance with section 2284 of title 28, United States Code.

Nothing in this section or in any other law shall infringe upon the

right of the House of Representatives to intervene in an action

brought under paragraph (1), (2), or (3) without the necessity of

adopting a resolution to authorize such intervention.

(b) APPEAL TO SUPREME COURT.—Notwithstanding any other

provision of law, any order of the United States District Court for

the District of Columbia which is issued pursuant to an action

brought under paragraph (1), (2), or (3) of subsection (a) shall be

reviewable by appeal directly to the Supreme Court of the United

States. Any such appeal shall be taken by a notice of appeal filed

within 10 days after such order is entered; and the jurisdictional

statement shall be filed within 30 days after such order is entered.

No stay of an order issued pursuant to an action brought under

paragraph (1), (2), or (3) of subsection (a) shall be issued by a single Justice of the Supreme Court.

(c) EXPEDITED CONSIDERATION.—It shall be the duty of the District Court for the District of Columbia and the Supreme Court of

the United States to advance on the docket and to expedite to the

greatest possible extent the disposition of any matter brought

under subsection (a).

(d) NONCOMPLIANCE WITH SEQUESTRATION PROCEDURES.—

(1) If it is finally determined by a court of competent jurisdiction that an order issued by the President under section 254

for any fiscal year—

(A) does not reduce automatic spending increases

under any program specified in section 256(a) if such increases are required to be reduced by part C of this title

(or reduces such increases by a greater extent than is so

required), or

(B) does not sequester the amount of budgetary resources which is required to be sequestered by such part

(or sequesters more than that amount) with respect to any

program, project, activity, or account,

the President shall, within 20 days after such determination is

made, revise the order in accordance with such determination.

(2) If the order issued by the President under section 254

for any fiscal year—

(A) does not reduce any automatic spending increase

to the extent that such increase is required to be reduced

by part C of this title,

Sec. 275 DEFICIT CONTROL ACT OF 1985 126

(B) does not sequester any amount of new budget authority, new loan guarantee commitments, new direct loan

obligations, or spending authority which is required to be

sequestered by such part, or

(C) does not reduce any obligation limitation by the

amount by which such limitation is required to be reduced

under such part,

on the claim or defense that the constitutional powers of the

President prevent such sequestration or reduction or permit

the avoidance of such sequestration or reduction, and such

claim or defense is finally determined by the Supreme Court

of the United States to be valid, then the entire order issued

pursuant to section 254 for such fiscal year shall be null and

void.

(e) TIMING OF RELIEF.—No order of any court granting declaratory or injunctive relief from the order of the President issued

under section 254, including but not limited to relief permitting or

requiring the expenditure of funds sequestered by such order, shall

take effect during the pendency of the action before such court,

during the time appeal may be taken, or, if appeal is taken, during

the period before the court to which such appeal is taken has entered its final order disposing of such action.

(f) PRESERVATION OF OTHER RIGHTS.—The rights created by

this section are in addition to the rights of any person under law,

subject to subsection (e).

(g) ECONOMIC DATA, ASSUMPTIONS, AND METHODOLOGIES.—The

economic data and economic assumptions used by the Director of

OMB in computing the figures specified in any report issued by the

Director of OMB under section 254, shall not be subject to review

in any judicial or administrative proceeding.

SEC. 275. ø2 U.S.C. 900 note¿ EFFECTIVE DATES.

(a) IN GENERAL.—

(1) Except as provided in paragraph (2) and in subsections

(b) and (c), this title and the amendments made by this title

shall become effective on the date of the enactment of this title

and shall apply with respect to fiscal years beginning after

September 30, 1985.

(2)(A) The amendment made by section 201(a)(2), and the

amendment made by section 201(b) insofar as it relates to subsections (c), (f), and (g) of section 302 of the Congressional

Budget Act of 1974 and to subsections (c), (d), and (g) of section

310 of that Act), shall become effective April 15, 1986.

(B) The amendment made by section 212 shall become effective February 1, 1986.

(b) EXPIRATION.—Sections 251, 253, 258B, and 271(b) of this

Act, and sections 1105(f) and 1106(c) of title 31, United States

Code, shall expire September 30, 2002. The remaining sections of

part C of this title shall expire September 30, 2006.

(c) OASDI TRUST FUNDS.—The amendments made by part D

shall apply as provided in such part.

127

FREESTANDING PROVISIONS OF SUBTITLES C AND E OF

THE BUDGET ENFORCEMENT ACT OF 1990

Public Law 101–508, Nov. 5, 1990, 104 Stat. 1388–573, 1388–623

129

Subtitle C—Social Security

SEC. 13301. OFF-BUDGET STATUS OF OASDI TRUST FUNDS.

(a) EXCLUSION OF SOCIAL SECURITY FROM ALL BUDGETS.—Notwithstanding any other provision of law, the receipts and disbursements of the Federal Old-Age and Survivors Insurance Trust Fund

and the Federal Disability Insurance Trust Fund shall not be

counted as new budget authority, outlays, receipts, or deficit or surplus for purposes of—

(1) the budget of the United States Government as submitted by the President,

(2) the congressional budget, or

(3) the Balanced Budget and Emergency Deficit Control

Act of 1985.

(b) EXCLUSION OF SOCIAL SECURITY FROM CONGRESSIONAL

BUDGET.—Section 301(a) of the Congressional Budget Act of 1974

is amended by adding at the end the following: ‘‘The concurrent

resolution shall not include the outlays and revenue totals of the

old age, survivors, and disability insurance program established

under title II of the Social Security Act or the related provisions

of the Internal Revenue Code of 1986 in the surplus or deficit totals

required by this subsection or in any other surplus or deficit totals

required by this title.’’.

SEC. 13302. PROTECTION OF OASDI TRUST FUNDS IN THE HOUSE OF

REPRESENTATIVES.

(a) IN GENERAL.—It shall not be in order in the House of Representatives to consider any bill or joint resolution, as reported, or

any amendment thereto or conference report thereon, if, upon enactment—

(1)(A) such legislation under consideration would provide

for a net increase in OASDI benefits of at least 0.02 percent

of the present value of future taxable payroll for the 75-year

period utilized in the most recent annual report of the Board

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

Security Act, and (B) such legislation under consideration does

not provide at least a net increase, for such 75-year period, in

OASDI taxes of the amount by which the net increase in such

benefits exceeds 0.02 percent of the present value of future taxable payroll for such 75-year period,

(2)(A) such legislation under consideration would provide

for a net increase in OASDI benefits (for the 5-year estimating

period for such legislation under consideration), (B) such net

increase, together with the net increases in OASDI benefits resulting from previous legislation enacted during that fiscal

year or any of the previous 4 fiscal years (as estimated at the

time of enactment) which are attributable to those portions of

the 5-year estimating periods for such previous legislation that

Sec. 13302 TITLE XIII—BUDGET ENFORCEMENT ACT OF 1990 130

fall within the 5-year estimating period for such legislation

under consideration, exceeds $250,000,000, and (C) such legislation under consideration does not provide at least a net increase, for the 5-year estimating period for such legislation

under consideration, in OASDI taxes which, together with net

increases in OASDI taxes resulting from such previous legislation which are attributable to those portions of the 5-year estimating periods for such previous legislation that fall within the

5-year estimating period for such legislation under consideration, equals the amount by which the net increase derived

under subparagraph (B) exceeds $250,000,000;

(3)(A) such legislation under consideration would provide

for a net decrease in OASDI taxes of at least 0.02 percent of

the present value of future taxable payroll for the 75-year period utilized in the most recent annual report of the Board of

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

Security Act, and (B) such legislation under consideration does

not provide at least a net decrease, for such 75-year period, in

OASDI benefits of the amount by which the net decrease in

such taxes exceeds 0.02 percent of the present value of future

taxable payroll for such 75-year period, or

(4)(A) such legislation under consideration would provide

for a net decrease in OASDI taxes (for the 5-year estimating

period for such legislation under consideration), (B) such net

decrease, together with the net decreases in OASDI taxes resulting from previous legislation enacted during that fiscal

year or any of the previous 4 fiscal years (as estimated at the

time of enactment) which are attributable to those portions of

the 5-year estimating periods for such previous legislation that

fall within the 5-year estimating period for such legislation

under consideration, exceeds $250,000,000, and (C) such legislation under consideration does not provide at least a net decrease, for the 5-year estimating period for such legislation

under consideration, in OASDI benefits which, together with

net decreases in OASDI benefits resulting from such previous

legislation which are attributable to those portions of the 5-

year estimating periods for such previous legislation that fall

within the 5-year estimating period for such legislation under

consideration, equals the amount by which the net decrease derived under subparagraph (B) exceeds $250,000,000.

(b) APPLICATION.—In applying paragraph (3) or (4) of subsection (a), any provision of any bill or joint resolution, as reported,

or any amendment thereto, or conference report thereon, the effect

of which is to provide for a net decrease for any period in taxes described in subsection (c)(2)(A) shall be disregarded if such bill, joint

resolution, amendment, or conference report also includes a provision the effect of which is to provide for a net increase of at least

an equivalent amount for such period in medicare taxes.

(c) DEFINITIONS.—For purposes of this subsection:

(1) The term ‘‘OASDI benefits’’ means the benefits under

the old-age, survivors, and disability insurance programs under

title II of the Social Security Act.

(2) The term ‘‘OASDI taxes’’ means—

131 Sec. 13306 TITLE XIII—BUDGET ENFORCEMENT ACT OF 1990

(A) the taxes imposed under sections 1401(a), 3101(a),

and 3111(a) of the Internal Revenue Code of 1986, and

(B) the taxes imposed under chapter 1 of such Code (to

the extent attributable to section 86 of such Code).

(3) The term ‘‘medicare taxes’’ means the taxes imposed

under sections 1401(b), 3101(b), and 3111(b) of the Internal

Revenue Code of 1986.

(4) The term ‘‘previous legislation’’ shall not include legislation enacted before fiscal year 1991.

(5) The term ‘‘5-year estimating period’’ means, with respect to any legislation, the fiscal year in which such legislation becomes or would become effective and the next 4 fiscal

years.

(6) No provision of any bill or resolution, or any amendment thereto or conference report thereon, involving a change

in chapter 1 of the Internal Revenue Code of 1986 shall be

treated as affecting the amount of OASDI taxes referred to in

paragraph (2)(B) unless such provision changes the income tax

treatment of OASDI benefits.

* * * * * * *

SEC. 13305. EXERCISE OF RULEMAKING POWER.

This title and the amendments made by it are enacted by the

Congress—

(1) as an exercise of the rulemaking power of the House of

Representatives and the Senate, respectively, and as such they

shall be considered as a part of the rules of each House, respectively, or of that House to which they specifically apply, and

such rules shall supersede other rules only to the extent that

they are inconsistent therewith; and

(2) with full recognition of the constitutional right of either

House to change such rules (so far as relating to such House)

at any time, in the same manner, and to the same extent as

in the case of any other rule of such House.

SEC. 13306. EFFECTIVE DATE.

Sections 13301, 13302, and 13303 and any amendments made

by such sections shall apply with respect to fiscal years beginning

on or after October 1, 1990. Section 13304 shall be effective for annual reports of the Board of Trustees issued in or after calendar

year 1991.

* * * * * * *

Subtitle E—Government-sponsored

Enterprises

SEC. 13501. FINANCIAL SAFETY AND SOUNDNESS OF GOVERNMENTSPONSORED ENTERPRISES.

(a) DEFINITION.—For purposes of this section, the terms ‘‘Government-sponsored enterprise’’ and ‘‘GSE’’ mean the Farm Credit

System (including the Farm Credit Banks, Banks for Cooperatives,

and Federal Agricultural Mortgage Corporation), the Federal Home

Loan Bank System, the Federal Home Loan Mortgage Corporation,

Sec. 13306 TITLE XIII—BUDGET ENFORCEMENT ACT OF 1990 132

the Federal National Mortgage Association, and the Student Loan

Marketing Association.

* * * * * * *

(d) ACCESS TO RELEVANT INFORMATION.—

(1) For the studies required by this section, each GSE shall

provide full and prompt access to the Secretary of the Treasury

and the Director of the Congressional Budget Office to its

books and records and other information requested by the Secretary of the Treasury or the Director of the Congressional

Budget Office.

(2) In preparing the studies required by this section, the

Secretary of the Treasury and the Director of the Congressional Budget Office may request information from, or the assistance of, any Federal department or agency authorized by

law to supervise the activities of a GSE.

(e) CONFIDENTIALITY OF RELEVANT INFORMATION.—

(1) The Secretary of the Treasury and the Director of the

Congressional Budget Office shall determine and maintain the

confidentiality of any book, record, or information made available by a GSE under this section in a manner consistent with

the level of confidentiality established for the material by the

GSE involved.

(2) The Department of the Treasury shall be exempt from

section 552 of title 5, United States Code, for any book, record,

or information made available under subsection (d) and determined by the Secretary of the Treasury to be confidential

under this subsection.

(3) Any officer or employee of the Department of the Treasury shall be subject to the penalties set forth in section 1906

of title 18, United States Code, if—

(A) by virtue of his or her employment or official position, he or she has possession of or access to any book,

record, or information made available under and determined to be confidential under this section; and

(B) he or she discloses the material in any manner

other than—

(i) to an officer or employee of the Department of

the Treasury; or

(ii) pursuant to the exception set forth in such section 1906.

(4) The Congressional Budget Office shall be exempt from

section 203 of the Congressional Budget Act of 1974 with respect to any book, record, or information made available under

this subsection and determined by the Director to be confidential under paragraph (1).

(f) PRESIDENT’S BUDGET.—The President’s annual budget submission shall include an analysis of the financial condition of the

GSEs and the financial exposure of the Government, if any, posed

by GSEs.

* * * * * * *

133

SELECTED PROVISIONS OF CHAPTER 11 OF TITLE 31,

UNITED STATES CODE, RELATING TO THE PRESIDENT’S BUDGET SUBMISSIONS

135

1Section 13501(f) of the Budget Enforcement Act of 1990 provides as follows:

(f) PRESIDENT’S BUDGET.—The President’s annual budget submission shall include an analysis

of the financial condition of the GSEs and the financial exposure of the Government, if any,

posed by GSEs.

Section 13501(a) of such Act defines ‘‘GSE’’ as follows:

(a) DEFINITION.—For purposes of this section, the terms ‘‘Government-sponsored enterprise’’

and ‘‘GSE’’ mean the Farm Credit System (including the Farm Credit Banks, Banks for Cooperatives, and Federal Agricultural Mortgage Corporation), the Federal Home Loan Bank System, the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association,

and the Student Loan Marketing Association.

CHAPTER 11 OF TITLE 31, UNITED STATES CODE

* * * * * * *

SUBTITLE II—THE BUDGET PROCESS

* * * * * * *

CHAPTER 11—THE BUDGET AND FISCAL, BUDGET, AND

PROGRAM INFORMATION

* * * * * * *

§ 1105. Budget contents and submission to Congress

(a) On or after the first Monday in January but not later than

the first Monday in February of each year the President shall submit a budget of the United States Government for the following fiscal year. Each budget shall include a budget message and summary and supporting information. The President shall include in

each budget the following: 1

(1) information on activities and functions of the Government.

(2) when practicable, information on costs and achievements of Government programs.

(3) other desirable classifications of information.

(4) a reconciliation of the summary information on expenditures with proposed appropriations.

(5) except as provided in subsection (b) of this section, estimated expenditures and proposed appropriations the President

decides are necessary to support the Government in the fiscal

year for which the budget is submitted and the 4 fiscal years

after that year.

(6) estimated receipts of the Government in the fiscal year

for which the budget is submitted and the 4 fiscal years after

that year under—

(A) laws in effect when the budget is submitted; and

(B) proposals in the budget to increase revenues.

(7) appropriations, expenditures, and receipts of the Government in the prior fiscal year.

§ 1105 CH. 11—BUDGET & FISCAL PROGRAM INFORMATION 136

(8) estimated expenditures and receipts, and appropriations and proposed appropriations, of the Government for the

current fiscal year.

(9) balanced statements of the—

(A) condition of the Treasury at the end of the prior

fiscal year;

(B) estimated condition of the Treasury at the end of

the current fiscal year; and

(C) estimated condition of the Treasury at the end of

the fiscal year for which the budget is submitted if financial proposals in the budget are adopted.

(10) essential information about the debt of the Government.

(11) other financial information the President decides is

desirable to explain in practicable detail the financial condition

of the Government.

(12) for each proposal in the budget for legislation that

would establish or expand a Government activity or function,

a table showing—

(A) the amount proposed in the budget for appropriation and for expenditure because of the proposal in the fiscal year for which the budget is submitted; and

(B) the estimated appropriation required because of

the proposal for each of the 4 fiscal years after that year

that the proposal will be in effect.

(13) an allowance for additional estimated expenditures

and proposed appropriations for the fiscal year for which the

budget is submitted.

(14) an allowance for unanticipated uncontrollable expenditures for that year.

(15) a separate statement on each of the items referred to

in section 301(a)(1)–(5) of the Congressional Budget Act of

1974 (2 U.S.C. 632(a)(1)–(5)).

(16) the level of tax expenditures under existing law in the

tax expenditures budget (as defined in section 3(a)(3) of the

Congressional Budget Act of 1974 (2 U.S.C. 622(a)(3)) for the

fiscal year for which the budget is submitted, considering projected economic factors and changes in the existing levels

based on proposals in the budget.

(17) information on estimates of appropriations for the fiscal year following the fiscal year for which the budget is submitted for grants, contracts, and other payments under each

program for which there is an authorization of appropriations

for that following fiscal year when the appropriations are authorized to be included in an appropriation law for the fiscal

year before the fiscal year in which the appropriation is to be

available for obligation.

(18) a comparison of the total amount of budget outlays for

the prior fiscal year, estimated in the budget submitted for

that year, for each major program having relatively uncontrollable outlays with the total amount of outlays for that program

in that year.

(19) a comparison of the total amount of receipts for the

prior fiscal year, estimated in the budget submitted for that

137 § 1105 CH. 11—BUDGET & FISCAL PROGRAM INFORMATION

year, with receipts received in that year, and for each major

source of receipts, a comparison of the amount of receipts estimated in that budget with the amount of receipts from that

source in that year.

(20) an analysis and explanation of the differences between

each amount compared under clauses (18) and (19) of this subsection.

(21) a horizontal budget showing—

(A) the programs for meteorology and of the National

Climate Program established under section 5 of the National Climate Program Act (15 U.S.C. 2904);

(B) specific aspects of the program of, and appropriations for, each agency; and

(C) estimated goals and financial requirements.

(22) a statement of budget authority, proposed budget authority, budget outlays, and proposed budget outlays, and descriptive information in terms of—

(A) a detailed structure of national needs that refers

to the missions and programs of agencies (as defined in

section 101 of this title); and

(B) the missions and basic programs.

(23) separate appropriation accounts for appropriations

under the Occupational Safety and Health Act of 1970 (29

U.S.C. 651 et seq.) and the Federal Mine Safety and Health

Act of 1977 (30 U.S.C. 801 et seq.).

(24) recommendations on the return of Government capital

to the Treasury by a mixed-ownership corporation (as defined

in section 9101(2) of this title) that the President decides are

desirable.

(25) a separate appropriation account for appropriations

for each Office of Inspector General of an establishment defined under section 11(2) of the Inspector General Act of 1978.

(26) a separate statement of the amount of appropriations

requested for the Office of National Drug Control Policy and

each program of the National Drug Control Program.

(27) a separate statement of the amount of appropriations

requested for the Office of Federal Financial Management.

(28) beginning with fiscal year 1999, a Federal Government performance plan for the overall budget as provided for

under section 1115.

(29) information about the Violent Crime Reduction Trust

Fund, including a separate statement of amounts in that Trust

Fund.

(30) an analysis displaying, by agency, proposed reductions

in full-time equivalent positions compared to the current year’s

level in order to comply with section 5 of the Federal Workforce Restructuring Act of 1994.

(31) a separate statement of the amount of appropriations

requested for the Chief Financial Officer in the Executive Office of the President.

(32) a statement of the levels of budget authority and outlays for each program assumed to be extended in the baseline

as provided in section 257(b)(2)(A) and for excise taxes asVerDate 11-SEP-98 15:16 May 02, 2000 Jkt 000000 PO 00000 Frm 00137 Fmt 9001 Sfmt 9001 H:\DOCS\CP4COM~1\53587.TXT HBUDGET1 PsN: HBUDGET1
§ 1105 CH. 11—BUDGET & FISCAL PROGRAM INFORMATION 138

sumed to be extended under section 257(b)(2)(C) of the Balanced Budget and Emergency Deficit Control Act of 1985.

(b) Estimated expenditures and proposed appropriations for

the legislative branch and the judicial branch to be included in

each budget under subsection (a)(5) of this section shall be submitted to the President before October 16 of each year and included

in the budget by the President without change.

(c) The President shall recommend in the budget appropriate

action to meet an estimated deficiency when the estimated receipts

for the fiscal year for which the budget is submitted (under laws

in effect when the budget is submitted) and the estimated amounts

in the Treasury at the end of the current fiscal year available for

expenditure in the fiscal year for which the budget is submitted,

are less than the estimated expenditures for that year. The President shall make recommendations required by the public interest

when the estimated receipts and estimated amounts in the Treasury are more than the estimated expenditures.

(d) When the President submits a budget or supporting information about a budget, the President shall include a statement on

all changes about the current fiscal year that were made before the

budget or information was submitted.

(e)(1) The President shall submit with materials related to

each budget transmitted under subsection (a) on or after January

1, 1985, an analysis for the ensuing fiscal year that shall identify

requested appropriations or new obligational authority and outlays

for each major program that may be classified as a public civilian

capital investment program and for each major program that may

be classified as a military capital investment program, and shall

contain summaries of the total amount of such appropriations or

new obligational authority and outlays for public civilian capital investment programs and summaries of the total amount of such appropriations or new obligational authority and outlays for military

capital investment programs. In addition, the analysis under this

paragraph shall contain—

(A) an estimate of the current service levels of public civilian capital investment and of military capital investment and

alternative high and low levels of such investments over a period of ten years in current dollars and over a period of five

years in constant dollars;

(B) the most recent assessment analysis and summary, in

a standard format, of public civilian capital investment needs

in each major program area over a period of ten years;

(C) an identification and analysis of the principal policy

issues that affect estimated public civilian capital investment

needs for each major program; and

(D) an identification and analysis of factors that affect estimated public civilian capital investment needs for each major

program, including but not limited to the following factors:

(i) economic assumptions;

(ii) engineering standards;

(iii) estimates of spending for operation and maintenance;

(iv) estimates of expenditures for similar investments

by State and local governments; and

139 § 1105 CH. 11—BUDGET & FISCAL PROGRAM INFORMATION

(v) estimates of demand for public services derived

from such capital investments and estimates of the service

capacity of such investments.

To the extent that any analysis required by this paragraph relates

to any program for which Federal financial assistance is distributed under a formula prescribed by law, such analysis shall be organized by State and within each State by major metropolitan area

if data are available.

(2) For purposes of this subsection, any appropriation, new

obligational authority, or outlay shall be classified as a public civilian capital investment to the extent that such appropriation, authority, or outlay will be used for the construction, acquisition, or

rehabilitation of any physical asset that is capable of being used to

produce services or other benefits for a number of years and is not

classified as a military capital investment under paragraph (3).

Such assets shall include (but not be limited to)—

(A) roadways or bridges,

(B) airports or airway facilities,

(C) mass transportation systems,

(D) wastewater treatment or related facilities,

(E) water resources projects,

(F) hospitals,

(G) resource recovery facilities,

(H) public buildings,

(I) space or communications facilities,

(J) railroads, and

(K) federally assisted housing.

(3) For purposes of this subsection, any appropriation, new

obligational authority, or outlay shall be classified as a military

capital investment to the extent that such appropriation, authority,

or outlay will be used for the construction, acquisition, or rehabilitation of any physical asset that is capable of being used to produce

services or other benefits for purposes of national defense and security for a number of years. Such assets shall include military bases,

posts, installations, and facilities.

(4) Criteria and guidelines for use in the identification of public

civilian and military capital investments, for distinguishing between public civilian and military capital investments, and for distinguishing between major and nonmajor capital investment programs shall be issued by the Director of the Office of Management

and Budget after consultation with the Comptroller General and

the Congressional Budget Office. The analysis submitted under this

subsection shall be accompanied by an explanation of such criteria

and guidelines.

(5) For purposes of this subsection—

(A) the term ‘‘construction’’ includes the design, planning,

and erection of new structures and facilities, the expansion of

existing structures and facilities, the reconstruction of a project

at an existing site or adjacent to an existing site, and the installation of initial and replacement equipment for such structures and facilities;

(B) the term ‘‘acquisition’’ includes the addition of land,

sites, equipment, structures, facilities, or rolling stock by purchase, lease-purchase, trade, or donation; and

§ 1106 CH. 11—BUDGET & FISCAL PROGRAM INFORMATION 140

(C) the term ‘‘rehabilitation’’ includes the alteration of or

correction of deficiencies in an existing structure or facility so

as to extend the useful life or improve the effectiveness of the

structure or facility, the modernization or replacement of

equipment at an existing structure or facility, and the modernization of, or replacement of parts for, rolling stock.

(f) The budget transmitted pursuant to subsection (a) for a fiscal year shall be prepared in a manner consistent with the requirements of the Balanced Budget and Emergency Deficit Control Act

of 1985 that apply to that and subsequent fiscal years.

(g)(1) The Director of the Office of Management and Budget

shall establish the funding for advisory and assistance services for

each department and agency as a separate object class in each

budget annually submitted to the Congress under this section.

(2)(A) In paragraph (1), except as provided in subparagraph

(B), the term ‘‘advisory and assistance services’’ means the following services when provided by nongovernmental sources:

(i) Management and professional support services.

(ii) Studies, analyses, and evaluations.

(iii) Engineering and technical services.

(B) In paragraph (1), the term ‘‘advisory and assistance services’’ does not include the following services:

(i) Routine automated data processing and telecommunications services unless such services are an integral part of a

contract for the procurement of advisory and assistance services.

(ii) Architectural and engineering services, as defined in

section 901 of the Brooks Architect-Engineers Act (40 U.S.C.

541).

(iii) Research on basic mathematics or medical, biological,

physical, social, psychological, or other phenomena.

§ 1106. Supplemental budget estimates and changes

(a) Before July 16 of each year, the President shall submit to

Congress a supplemental summary of the budget for the fiscal year

for which the budget is submitted under section 1105(a) of this

title. The summary shall include—

(1) for that fiscal year—

(A) substantial changes in or reappraisals of estimates

of expenditures and receipts;

(B) substantial obligations imposed on the budget after

its submission;

(C) current information on matters referred to in section 1105(a)(8) and (9)(B) and (C) of this title; and

(D) additional information the President decides is advisable to provide Congress with complete and current information about the budget and current estimates of the

functions, obligations, requirements, and financial condition of the United States Government;

(2) for the 4 fiscal years following the fiscal year for which

the budget is submitted, information on estimated expenditures for programs authorized to continue in future years, or

that are considered mandatory, under law; and

141 § 1109 CH. 11—BUDGET & FISCAL PROGRAM INFORMATION

(3) for future fiscal years, information on estimated expenditures of balances carried over from the fiscal year for

which the budget is submitted.

(b) Before July 16 of each year, the President shall submit to

Congress a statement of changes in budget authority requested, estimated budget outlays, and estimated receipts for the fiscal year

for which the budget is submitted (including prior changes proposed for the executive branch of the Government) that the President decides are necessary and appropriate based on current information. The statement shall include the effect of those changes on

the information submitted under section 1105(a)(1)–(14) and (b) of

this title and shall include supporting information as practicable.

The statement submitted before July 16 may be included in the information submitted under subsection (a)(1) of this section.

(c) Subsection (f) of section 1105 shall apply to revisions and

supplemental summaries submitted under this section to the same

extent that such subsection applies to the budget submitted under

section 1105(a) to which such revisions and summaries relate.

* * * * * * *

§ 1109. Current programs and activities estimates

(a) On or before the first Monday after January 3 of each year

(on or before February 5 in 1986), the President shall submit to

both Houses of Congress the estimated budget outlays and proposed budget authority that would be included in the budget for

the following fiscal year if programs and activities of the United

States Government were carried on during that year at the same

level as the current fiscal year without a change in policy. The

President shall state the estimated budget outlays and proposed

budget authority by function and subfunction under the classifications in the budget summary table under the heading ‘‘Budget Authority and Outlays by Function and Agency’’, by major programs

in each function, and by agency. The President also shall include

a statement of the economic and program assumptions on which

those budget outlays and budget authority are based, including inflation, real economic growth, and unemployment rates, program

caseloads, and pay increases.

(b) The Joint Economic Committee shall review the estimated

budget outlays and proposed budget authority and submit an economic evaluation of the budget outlays and budget authority to the

Committees on the Budget of both Houses before March 1 of each

year.

* * * * * * *

143

SELECTED BUDGETARY PROCEDURES SET FORTH IN

H. CON. RES. 68 (106th Congress)

145

SELECTED BUDGETARY PROCEDURES SET FORTH IN

H. CON. RES. 68 (106th Congress)

* * * * * * *

SEC. 207. PAY-AS-YOU-GO POINT OF ORDER IN THE SENATE.

(a) PURPOSE.—The Senate declares that it is essential to—

(1) ensure continued compliance with the balanced budget

plan set forth in this resolution; and

(2) continue the pay-as-you-go enforcement system.

(b) POINT OF ORDER.— (1) IN GENERAL.—It shall not be in order in the Senate to

consider any direct spending or revenue legislation that would

increase the on-budget deficit or cause an on-budget deficit for

any one of the three applicable time periods as measured in

paragraphs (5) and (6).

(2) APPLICABLE TIME PERIODS.—For purposes of this subsection the term ‘‘applicable time period’’ means any one of the

three following periods:

(A) The first year covered by the most recently adopted concurrent resolution on the budget.

(B) The period of the first five fiscal years covered by

the most recently adopted concurrent resolution on the

budget.

(C) The period of the five fiscal years following the

first five fiscal years covered in the most recently adopted

concurrent resolution on the budget.

(3) DIRECT-SPENDING LEGISLATION.—For purposes of this

subsection and except as provided in paragraph (4), the term

‘‘direct-spending legislation’’ means any bill, joint resolution,

amendment, motion, or conference report that affects direct

spending as that term is defined by and interpreted for purposes of the Balanced Budget and Emergency Deficit Control

Act of 1985.

(4) EXCLUSION.—For purposes of this subsection, the terms

‘‘direct-spending legislation’’ and ‘‘revenue legislation’’ do not

include—

(A) any concurrent resolution on the budget; or

(B) any provision of legislation that affects the full

funding of, and continuation of, the deposit insurance

guarantee commitment in effect on the date of enactment

of the Budget Enforcement Act of 1990.

(5) BASELINE.—Estimates prepared pursuant to this section shall—

(A) use the baseline used for the most recently adopted concurrent resolution on the budget; and

(B) be calculated under the requirements of subsections (b) through (d) of section 257 of the Balanced

Sec. 207 BUDGETARY PROCEDURES 146

Budget and Emergency Deficit Control Act of 1985 for fiscal years beyond those covered by that concurrent resolution on the budget.

(6) PRIOR SURPLUS.—If direct spending or revenue legislation increases the on-budget deficit or causes an on-budget deficit when taken individually, then it must also increase the onbudget deficit or cause an on-budget deficit when taken together with all direct spending and revenue legislation enacted

since the beginning of the calendar year not accounted for in

the baseline under paragraph (5)(A).

(c) WAIVER.—This section may be waived or suspended in the

Senate only by the affirmative vote of three-fifths of the Members,

duly chosen and sworn.

(d) APPEALS.—Appeals in the Senate from the decisions of the

Chair relating to any provision of this section shall be limited to

1 hour, to be equally divided between, and controlled by, the appellant and the manager of the bill or joint resolution, as the case may

be. An affirmative vote of three-fifths of the Members of the Senate, duly chosen and sworn, shall be required in the Senate to sustain an appeal of the ruling of the Chair on a point of order raised

under this section.

(e) DETERMINATION OF BUDGET LEVELS.—For purposes of this

section, the levels of new budget authority, outlays, and revenues

for a fiscal year shall be determined on the basis of estimates made

by the Committee on the Budget of the Senate.

(f) CONFORMING AMENDMENT.—Section 202 of House Concurrent Resolution 67 (104th Congress) is repealed.

(g) SUNSET.—Subsections (a) through (e) of this section shall

expire September 30, 2002.

147

SELECTED BUDGETARY PROCEDURES SET FORTH IN

H. CON. RES. 290 (106th Congress)

149

SELECTED BUDGETARY PROCEDURES SET FORTH IN

H. CON. RES. 290 (106th Congress)

* * * * * * *

TITLE II—BUDGET ENFORCEMENT AND

RULEMAKING

Subtitle A—Budget Enforcement

SEC. 201. LOCK-BOX FOR SOCIAL SECURITY SURPLUSES.

(a) FINDINGS.—Congress finds that—

(1) under the Budget Enforcement Act of 1990, the social

security trust funds are off-budget for purposes of the President’s budget submission and the concurrent resolution on the

budget;

(2) the social security trust funds have been running surpluses for 17 years;

(3) these surpluses have been used to implicitly finance the

general operations of the Federal Government;

(4) in fiscal year 2001, the social security surplus will be

$166 billion;

(5) this resolution balances the Federal budget without

counting the social security surpluses;

(6) the only way to ensure that social security surpluses

are not diverted for other purposes is to balance the budget exclusive of such surpluses; and

(7) the Congress and the President should take such steps

as are necessary to ensure that future budgets are balanced excluding the surpluses generated by the social security trust

funds.

(b) SENSE OF THE CONGRESS.—It is the sense of the Congress

that legislation should be enacted in this session of Congress that

would enforce the reduction in debt held by the public assumed in

this resolution by the imposition of a statutory limit on such debt

or other appropriate means.

(c) POINT OF ORDER.— (1) IN GENERAL.—It shall not be in order in the House of

Representatives or the Senate to consider any revision to this

resolution or a concurrent resolution on the budget for fiscal

year 2002, or any amendment thereto or conference report

thereon, that sets forth a deficit for any fiscal year.

(2) DEFICIT LEVELS.—For purposes of this subsection, a

deficit shall be the level (if any) set forth in the most recently

agreed to concurrent resolution on the budget for that fiscal

Sec. 205 BUDGETARY PROCEDURES 150

year pursuant to section 301(a)(3) of the Congressional Budget

Act of 1974.

(d) EXCEPTION.—Subsection (c)(1) shall not apply if—

(1) the most recent of the Department of Commerce’s advance, preliminary, or final reports of actual real economic

growth indicate that the rate of real economic growth for each

of the most recently reported quarter and the immediately preceding quarter is less than 1 percent; or

(2) a declaration of war is in effect.

(e) SOCIAL SECURITY LOOK-BACK.—If in fiscal year 2001 the social security surplus is used to finance general operations of the

Federal Government, an amount equal to the amount used shall be

deducted from the available amount of discretionary spending for

fiscal year 2002 for purposes of any concurrent resolution on the

budget.

(f ) WAIVER AND APPEAL.—Subsection (c)(1) may be waived or

suspended in the Senate only by an affirmative vote of three-fifths

of the Members, duly chosen and sworn. An affirmative vote of

three-fifths of the Members of the Senate, duly chosen and sworn,

shall be required in the Senate to sustain an appeal of the ruling

of the Chair on a point of order raised under this section.

* * * * * * *

SEC. 205. EMERGENCY DESIGNATION POINT OF ORDER IN THE SENATE.

(a) DESIGNATIONS.—

(1) GUIDANCE.—In making a designation of a provision of

legislation as an emergency requirement under section

251(b)(2)(A) or 252(e) of the Balanced Budget and Emergency

Deficit Control Act of 1985, the committee report and any

statement of managers accompanying that legislation shall

analyze whether a proposed emergency requirement meets all

the criteria in paragraph (2).

(2) CRITERIA.—

(A) IN GENERAL.—The criteria to be considered in determining whether a proposed expenditure or tax change

is an emergency requirement are—

(i) necessary, essential, or vital (not merely useful

or beneficial);

(ii) sudden, quickly coming into being, and not

building up over time;

(iii) an urgent, pressing, and compelling need requiring immediate action;

(iv) subject to subparagraph (B), unforeseen, unpredictable, and unanticipated; and

(v) not permanent, temporary in nature.

(B) UNFORESEEN.—An emergency that is part of an aggregate level of anticipated emergencies, particularly when

normally estimated in advance, is not unforeseen.

(3) JUSTIFICATION FOR FAILURE TO MEET CRITERIA.—If the

proposed emergency requirement does not meet all the criteria

set forth in paragraph (2), the committee report or the statement of managers, as the case may be, shall provide a written

151 Sec. 205 BUDGETARY PROCEDURES

justification of why the requirement should be accorded emergency status.

(b) POINT OF ORDER.—When the Senate is considering a bill,

resolution, amendment, motion, or conference report, a point of

order may be made by a Senator against an emergency designation

in that measure and if the Presiding Officer sustains that point of

order, that provision making such a designation shall be stricken

from the measure and may not be offered as an amendment from

the floor.

(c) WAIVER AND APPEAL.—This section may be waived or suspended in the Senate only by an affirmative vote of three-fifths of

the Members, duly chosen and sworn. An affirmative vote of threefifths of the Members of the Senate, duly chosen and sworn, shall

be required in the Senate to sustain an appeal of the ruling of the

Chair on a point of order raised under this section.

(d) DEFINITION OF AN EMERGENCY REQUIREMENT.—A provision

shall be considered an emergency designation if it designates any

item an emergency requirement pursuant to section 251(b)(2)(A) or

252(e) of the Balanced Budget and Emergency Deficit Control Act

of 1985.

(e) FORM OF THE POINT OF ORDER.—A point of order under this

section may be raised by a Senator as provided in section 313(e)

of the Congressional Budget Act of 1974.

(f ) CONFERENCE REPORTS.—If a point of order is sustained

under this section against a conference report, the report shall be

disposed of as provided in section 313(d) of the Congressional

Budget Act of 1974.

(g) EXCEPTION FOR DEFENSE SPENDING.—Subsection (b) shall

not apply against an emergency designation for a provision making

discretionary appropriations in the defense category.

* * * * * * *

153

SELECTED PROVISIONS OF THE UNFUNDED MANDATES

REFORM ACT OF 1995

155

SELECTIVE PROVISIONS OF THE UNFUNDED MANDATES

REFORM ACT OF 1995

* * * * * * *

TITLE I—LEGISLATIVE

ACCOUNTABILITY AND REFORM

* * * * * * *

SEC. 103. ø2 U.S.C. 1511¿ COST OF REGULATIONS.

(a) SENSE OF THE CONGRESS.—It is the sense of the Congress

that Federal agencies should review and evaluate planned regulations to ensure that the cost estimates provided by the Congressional Budget Office will be carefully considered as regulations are

promulgated.

(b) STATEMENT OF COST.—At the request of a committee chairman or ranking minority member, the Director shall, to the extent

practicable, prepare a comparison between—

(1) an estimate by the relevant agency, prepared under

section 202 of this Act, of the costs of regulations implementing

an Act containing a Federal mandate; and

(2) the cost estimate prepared by the Congressional Budget

Office for such Act when it was enacted by the Congress.

(c) COOPERATION OF OFFICE OF MANAGEMENT AND BUDGET.—

At the request of the Director of the Congressional Budget Office,

the Director of the Office of Management and Budget shall provide

data and cost estimates for regulations implementing an Act containing a Federal mandate covered by part B of title IV of the Congressional Budget and Impoundment Control Act of 1974 (as added

by section 101 of this Act).

* * * * * * *

SEC. 105. ø2 U.S.C. 1512¿ CONSIDERATION FOR FEDERAL FUNDING.

Nothing in this Act shall preclude a State, local, or tribal government that already complies with all or part of the Federal intergovernmental mandates included in the bill, joint resolution,

amendment, motion, or conference report from consideration for

Federal funding under section 425(a)(2) of the Congressional Budget and Impoundment Control Act of 1974 (as added by section 101

of this Act) for the cost of the mandate, including the costs the

State, local, or tribal government is currently paying and any additional costs necessary to meet the mandate.

SEC. 106. ø2 U.S.C. 1513¿ IMPACT ON LOCAL GOVERNMENTS.

(a) FINDINGS.—The Senate finds that—

Sec. 107 UNFUNDED MANDATES REFORM ACT OF 1995 156

(1) the Congress should be concerned about shifting costs

from Federal to State and local authorities and should be

equally concerned about the growing tendency of States to shift

costs to local governments;

(2) cost shifting from States to local governments has, in

many instances, forced local governments to raise property

taxes or curtail sometimes essential services; and

(3) increases in local property taxes and cuts in essential

services threaten the ability of many citizens to attain and

maintain the American dream of owning a home in a safe, secure community.

(b) SENSE OF THE SENATE.—It is the sense of the Senate that—

(1) the Federal Government should not shift certain costs

to the State, and States should end the practice of shifting

costs to local governments, which forces many local governments to increase property taxes;

(2) States should end the imposition, in the absence of full

consideration by their legislatures, of State issued mandates on

local governments without adequate State funding, in a manner that may displace other essential government priorities;

and

(3) one primary objective of this Act and other efforts to

change the relationship among Federal, State, and local governments should be to reduce taxes and spending at all levels

and to end the practice of shifting costs from one level of government to another with little or no benefit to taxpayers.

SEC. 107. ø2 U.S.C. 1514¿ ENFORCEMENT IN THE HOUSE OF REPRESENTATIVES.

(a) MOTIONS TO STRIKE IN THE COMMITTEE OF THE WHOLE.—

Clause 5 of rule XXIII of the Rules of the House of Representatives

is amended by adding at the end the following:

‘‘(c) In the consideration of any measure for amendment in the

Committee of the Whole containing any Federal mandate the direct

costs of which exceed the threshold in section 424(a)(1) of the Unfunded Mandate Reform Act of 1995, it shall always be in order,

unless specifically waived by terms of a rule governing consideration of that measure, to move to strike such Federal mandate

from the portion of the bill then open to amendment.’’.

(b) COMMITTEE ON RULES REPORTS ON WAIVED POINTS OF

ORDER.—The Committee on Rules shall include in the report required by clause 1(d) of rule XI (relating to its activities during the

Congress) of the Rules of the House of Representatives a separate

item identifying all waivers of points of order relating to Federal

mandates, listed by bill or joint resolution number and the subject

matter of that measure.

* * * * * * *

157 Sec. 202 UNFUNDED MANDATES REFORM ACT OF 1995

TITLE II—REGULATORY

ACCOUNTABILITY AND REFORM

SEC. 201. ø2 U.S.C. 1531¿ REGULATORY PROCESS.

Each agency shall, unless otherwise prohibited by law, assess

the effects of Federal regulatory actions on State, local, and tribal

governments, and the private sector (other than to the extent that

such regulations incorporate requirements specifically set forth in

law).

SEC. 202. ø2 U.S.C. 1532¿ STATEMENTS TO ACCOMPANY SIGNIFICANT

REGULATORY ACTIONS.

(a) IN GENERAL.—Unless otherwise prohibited by law, before

promulgating any general notice of proposed rulemaking that is

likely to result in promulgation of any rule that includes any Federal mandate that may result in the expenditure by State, local,

and tribal governments, in the aggregate, or by the private sector,

of $100,000,000 or more (adjusted annually for inflation) in any 1

year, and before promulgating any final rule for which a general

notice of proposed rulemaking was published, the agency shall prepare a written statement containing—

(1) an identification of the provision of Federal law under

which the rule is being promulgated;

(2) a qualitative and quantitative assessment of the anticipated costs and benefits of the Federal mandate, including the

costs and benefits to State, local, and tribal governments or the

private sector, as well as the effect of the Federal mandate on

health, safety, and the natural environment and such an assessment shall include—

(A) an analysis of the extent to which such costs to

State, local, and tribal governments may be paid with Federal financial assistance (or otherwise paid for by the Federal Government); and

(B) the extent to which there are available Federal resources to carry out the intergovernmental mandate;

(3) estimates by the agency, if and to the extent that the

agency determines that accurate estimates are reasonably feasible, of—

(A) the future compliance costs of the Federal mandate; and

(B) any disproportionate budgetary effects of the Federal mandate upon any particular regions of the nation or

particular State, local, or tribal governments, urban or

rural or other types of communities, or particular segments of the private sector;

(4) estimates by the agency of the effect on the national

economy, such as the effect on productivity, economic growth,

full employment, creation of productive jobs, and international

competitiveness of United States goods and services, if and to

the extent that the agency in its sole discretion determines

that accurate estimates are reasonably feasible and that such

effect is relevant and material; and

Sec. 203 UNFUNDED MANDATES REFORM ACT OF 1995 158

(5)(A) a description of the extent of the agency’s prior consultation with elected representatives (under section 204) of

the affected State, local, and tribal governments;

(B) a summary of the comments and concerns that were

presented by State, local, or tribal governments either orally or

in writing to the agency; and

(C) a summary of the agency’s evaluation of those comments and concerns.

(b) PROMULGATION.—In promulgating a general notice of proposed rulemaking or a final rule for which a statement under subsection (a) is required, the agency shall include in the promulgation

a summary of the information contained in the statement.

(c) PREPARATION IN CONJUNCTION WITH OTHER STATEMENT.—

Any agency may prepare any statement required under subsection

(a) in conjunction with or as a part of any other statement or analysis, provided that the statement or analysis satisfies the provisions of subsection (a).

SEC. 203. ø2 U.S.C. 1533¿ SMALL GOVERNMENT AGENCY PLAN.

(a) EFFECTS ON SMALL GOVERNMENTS.—Before establishing

any regulatory requirements that might significantly or uniquely

affect small governments, agencies shall have developed a plan

under which the agency shall—

(1) provide notice of the requirements to potentially affected small governments, if any;

(2) enable officials of affected small governments to provide

meaningful and timely input in the development of regulatory

proposals containing significant Federal intergovernmental

mandates; and

(3) inform, educate, and advise small governments on compliance with the requirements.

(b) AUTHORIZATION OF APPROPRIATIONS.—There are authorized

to be appropriated to each agency to carry out the provisions of this

section and for no other purpose, such sums as are necessary.

SEC. 204. ø2 U.S.C. 1534¿ STATE, LOCAL, AND TRIBAL GOVERNMENT

INPUT.

(a) IN GENERAL.—Each agency shall, to the extent permitted in

law, develop an effective process to permit elected officers of State,

local, and tribal governments (or their designated employees with

authority to act on their behalf) to provide meaningful and timely

input in the development of regulatory proposals containing significant Federal intergovernmental mandates.

(b) MEETINGS BETWEEN STATE, LOCAL, TRIBAL AND FEDERAL

OFFICERS.—The Federal Advisory Committee Act (5 U.S.C. App.)

shall not apply to actions in support of intergovernmental communications where—

(1) meetings are held exclusively between Federal officials

and elected officers of State, local, and tribal governments (or

their designated employees with authority to act on their behalf) acting in their official capacities; and

(2) such meetings are solely for the purposes of exchanging

views, information, or advice relating to the management or

implementation of Federal programs established pursuant to

159 Sec. 207 UNFUNDED MANDATES REFORM ACT OF 1995

public law that explicitly or inherently share intergovernmental responsibilities or administration.

(c) IMPLEMENTING GUIDELINES.—No later than 6 months after

the date of enactment of this Act, the President shall issue guidelines and instructions to Federal agencies for appropriate implementation of subsections (a) and (b) consistent with applicable laws

and regulations.

SEC. 205. ø2 U.S.C. 1535¿ LEAST BURDENSOME OPTION OR EXPLANATION REQUIRED.

(a) IN GENERAL.—Except as provided in subsection (b), before

promulgating any rule for which a written statement is required

under section 202, the agency shall identify and consider a reasonable number of regulatory alternatives and from those alternatives

select the least costly, most cost-effective or least burdensome alternative that achieves the objectives of the rule, for—

(1) State, local, and tribal governments, in the case of a

rule containing a Federal intergovernmental mandate; and

(2) the private sector, in the case of a rule containing a

Federal private sector mandate.

(b) EXCEPTION.—The provisions of subsection (a) shall apply

unless—

(1) the head of the affected agency publishes with the final

rule an explanation of why the least costly, most cost-effective

or least burdensome method of achieving the objectives of the

rule was not adopted; or

(2) the provisions are inconsistent with law.

(c) OMB CERTIFICATION.—No later than 1 year after the date

of the enactment of this Act, the Director of the Office of Management and Budget shall certify to Congress, with a written explanation, agency compliance with this section and include in that certification agencies and rulemakings that fail to adequately comply

with this section.

SEC. 206. ø2 U.S.C. 1536¿ ASSISTANCE TO THE CONGRESSIONAL BUDGET OFFICE.

The Director of the Office of Management and Budget shall—

(1) collect from agencies the statements prepared under

section 202; and

(2) periodically forward copies of such statements to the

Director of the Congressional Budget Office on a reasonably

timely basis after promulgation of the general notice of proposed rulemaking or of the final rule for which the statement

was prepared.

SEC. 207. ø2 U.S.C. 1537¿ PILOT PROGRAM ON SMALL GOVERNMENT

FLEXIBILITY.

(a) IN GENERAL.—The Director of the Office of Management

and Budget, in consultation with Federal agencies, shall establish

pilot programs in at least 2 agencies to test innovative, and more

flexible regulatory approaches that—

(1) reduce reporting and compliance burdens on small governments; and

(2) meet overall statutory goals and objectives.

(b) PROGRAM FOCUS.—The pilot programs shall focus on rules

in effect or proposed rules, or a combination thereof.

Sec. 208 UNFUNDED MANDATES REFORM ACT OF 1995 160

SEC. 208. ø2 U.S.C. 1538¿ ANNUAL STATEMENTS TO CONGRESS ON

AGENCY COMPLIANCE.

No later than 1 year after the effective date of this title and

annually thereafter, the Director of the Office of Management and

Budget shall submit to the Congress, including the Committee on

Governmental Affairs of the Senate and the Committee on Government Reform and Oversight of the House of Representatives, a

written report detailing compliance by each agency during the preceding reporting period with the requirements of this title.

SEC. 209. ø2 U.S.C. 1531 nt¿ EFFECTIVE DATE.

This title and the amendments made by this title shall take effect on the date of the enactment of this Act.

TITLE III—REVIEW OF FEDERAL

MANDATES

* * * * * * *

SEC. 304. ø2 U.S.C. 1554¿ ANNUAL REPORT TO CONGRESS REGARDING

FEDERAL COURT RULINGS.

No later than 4 months after the date of enactment of this Act,

and no later than March 15 of each year thereafter, the Advisory

Commission on Intergovernmental Relations shall submit to the

Congress, including the Committee on Government Reform and

Oversight of the House of Representatives and the Committee on

Governmental Affairs of the Senate, and to the President a report

describing any Federal court case to which a State, local, or tribal

government was a party in the preceding calendar year that required such State, local, or tribal government to undertake responsibilities or activities, beyond those such government would otherwise have undertaken, to comply with Federal statutes and regulations.

SEC. 305. ø2 U.S.C. 1555¿ DEFINITION.

Notwithstanding section 3 of this Act, for purposes of this title

the term ‘‘Federal mandate’’ means any provision in statute or regulation or any Federal court ruling that imposes an enforceable

duty upon State, local, or tribal governments including a condition

of Federal assistance or a duty arising from participation in a voluntary Federal program.

* * * * * * *

TITLE IV—JUDICIAL REVIEW

SEC. 401. ø2 U.S.C. 1571¿ JUDICIAL REVIEW.

(a) AGENCY STATEMENTS ON SIGNIFICANT REGULATORY ACTIONS.—

(1) IN GENERAL.—Compliance or noncompliance by any

agency with the provisions of sections 202 and 203(a) (1) and

(2) shall be subject to judicial review only in accordance with

this section.

(2) LIMITED REVIEW OF AGENCY COMPLIANCE OR NONCOMPLIANCE.—(A) Agency compliance or noncompliance with

161 Sec. 401 UNFUNDED MANDATES REFORM ACT OF 1995

the provisions of sections 202 and 203(a) (1) and (2) shall be

subject to judicial review only under section 706(1) of title 5,

United States Code, and only as provided under subparagraph

(B).

(B) If an agency fails to prepare the written statement (including the preparation of the estimates, analyses, statements,

or descriptions) under section 202 or the written plan under

section 203(a) (1) and (2), a court may compel the agency to

prepare such written statement.

(3) REVIEW OF AGENCY RULES.—In any judicial review

under any other Federal law of an agency rule for which a

written statement or plan is required under sections 202 and

203(a) (1) and (2), the inadequacy or failure to prepare such

statement (including the inadequacy or failure to prepare any

estimate, analysis, statement or description) or written plan

shall not be used as a basis for staying, enjoining, invalidating

or otherwise affecting such agency rule.

(4) CERTAIN INFORMATION AS PART OF RECORD.—Any information generated under sections 202 and 203(a) (1) and (2)

that is part of the rulemaking record for judicial review under

the provisions of any other Federal law may be considered as

part of the record for judicial review conducted under such

other provisions of Federal law.

(5) APPLICATION OF OTHER FEDERAL LAW.—For any petition

under paragraph (2) the provisions of such other Federal law

shall control all other matters, such as exhaustion of administrative remedies, the time for and manner of seeking review

and venue, except that if such other Federal law does not provide a limitation on the time for filing a petition for judicial review that is less than 180 days, such limitation shall be 180

days after a final rule is promulgated by the appropriate agency.

(6) EFFECTIVE DATE.—This subsection shall take effect on

October 1, 1995, and shall apply only to any agency rule for

which a general notice of proposed rulemaking is promulgated

on or after such date.

(b) JUDICIAL REVIEW AND RULE OF CONSTRUCTION.—Except as

provided in subsection (a)—

(1) any estimate, analysis, statement, description or report

prepared under this Act, and any compliance or noncompliance

with the provisions of this Act, and any determination concerning the applicability of the provisions of this Act shall not be

subject to judicial review; and

(2) no provision of this Act shall be construed to create any

right or benefit, substantive or procedural, enforceable by any

person in any administrative or judicial action.

163

HOUSE RULES RELATING TO

BUDGETARY REQUIREMENTS

165

HOUSE RULES RELATING TO

BUDGETARY REQUIREMENTS

* * * * * * *

RULE X.

ORGANIZATION OF COMMITTEES.

* * * * * * *

General oversight responsibilities

* * * * * * *

2. (a) * * *

* * * * * * *

(d)(1) Not later than February 15 of the first session of a Congress, each standing committee shall, in a meeting that is open to

the public and with a quorum present, adopt its oversight plan for

that Congress. Such plan shall be submitted simultaneously to the

Committee on Government Reform and to the Committee on House

Administration. In developing its plan each committee shall, to the

maximum extent feasible—

(A) consult with other committees that have jurisdiction

over the same or related laws, programs, or agencies within its

jurisdiction with the objective of ensuring maximum coordination and cooperation among committees when conducting reviews of such laws, programs, or agencies and include in its

plan an explanation of steps that have been or will be taken

to ensure such coordination and cooperation;

(B) give priority consideration to including in its plan the

review of those laws, programs, or agencies operating under

permanent budget authority or permanent statutory authority;

and

(C) have a view toward ensuring that all significant laws,

programs, or agencies within its jurisdiction are subject to review every 10 years.

* * * * * * *

Additional functions of committees

4. (a) * * *

* * * * * * *

Budget Act responsibilities

(f)(1) Each standing committee shall submit to the Committee

on the Budget not later than six weeks after the President submits

his budget, or at such time as the Committee on the Budget may

request—

(A) its views and estimates with respect to all matters to

be set forth in the concurrent resolution on the budget for the

BUDGETARY REQUIREMENTS 166

ensuing fiscal year that are within its jurisdiction or functions;

and

(B) an estimate of the total amounts of new budget authority, and budget outlays resulting therefrom, to be provided or

authorized in all bills and resolutions within its jurisdiction

that it intends to be effective during that fiscal year.

(2) The views and estimates submitted by the Committee on

Ways and Means under subparagraph (1) shall include a specific

recommendation, made after holding public hearings, as to the appropriate level of the public debt that should be set forth in the

concurrent resolution on the budget and serve as the basis for an

increase or decrease in the statutory limit on such debt under the

procedures provided by rule XXIII.

* * * * * * *

Permanent Select Committee on Intelligence

11. (a)***

* * * * * * *

(c)(1)***

* * * * * * *

(3) Within six weeks after the President submits a budget

under section 1105(a) of title 31, United States Code, or at such

time as the Committee on the Budget may request, the select committee shall submit to the Committee on the Budget the views and

estimates described in section 301(d) of the Congressional Budget

Act of 1974 regarding matters within the jurisdiction of the select

committee.

* * * * * * *

RULE XIII.

CALENDARS AND COMMITTEE REPORTS.

* * * * * * *

Content of reports

3. (a) * * *

* * * * * * *

(c) The report of a committee on a measure that has been approved by the committee shall include, separately set out and clearly identified, the following:

(1) * * *

(2) The statement required by section 308(a) of the Congressional Budget Act of 1974, except that an estimate of new

budget authority shall include, when practicable, a comparison

of the total estimated funding level for the relevant programs

to the appropriate levels under current law.

(3) An estimate and comparison prepared by the Director

of the Congressional Budget Office under section 402 of the

Congressional Budget Act of 1974 if timely submitted to the

committee before the filing of the report.

* * * * * * *

167 BUDGETARY REQUIREMENTS

(d) Each report of a committee on a public bill or public joint

resolution shall contain the following:

(1) A statement citing the specific powers granted to Congress in the Constitution to enact the law proposed by the bill

or joint resolution.

(2)(A) An estimate by the committee of the costs that

would be incurred in carrying out the bill or joint resolution in

the fiscal year in which it is reported and in each of the five

fiscal years following that fiscal year (or for the authorized duration of any program authorized by the bill or joint resolution

if less than five years);

(B) a comparison of the estimate of costs described in subdivision (A) made by the committee with any estimate of such

costs made by a Government agency and submitted to such

committee; and

(C) when practicable, a comparison of the total estimated

funding level for the relevant programs with the appropriate

levels under current law.

(3)(A) In subparagraph (2) the term ‘‘Government agency’’

includes any department, agency, establishment, wholly owned

Government corporation, or instrumentality of the Federal

Government or the government of the District of Columbia.

(B) Subparagraph (2) does not apply to the Committee on

Appropriations, the Committee on House Administration, the

Committee on Rules, or the Committee on Standards of Official

Conduct, and does not apply when a cost estimate and comparison prepared by the Director of the Congressional Budget

Office under section 402 of the Congressional Budget Act of

1974 has been included in the report under paragraph (c)(3).

* * * * * * *

(h)(1)***

(2) A report from the Committee on Ways and Means on a bill

or joint resolution designated by the Majority Leader, after consultation with the Minority Leader, as major tax legislation may

include a dynamic estimate of the changes in Federal revenues expected to result from enactment of the legislation. The Joint Committee on Internal Revenue Taxation shall render a dynamic estimate of such legislation only in response to a timely request from

the chairman of the Committee on Ways and Means, after consultation with the ranking minority member. A dynamic estimate

under this paragraph may be used only for informational purposes.

(3) In this paragraph the term ‘‘dynamic estimate’’ means a

projection based in any part on assumptions concerning probable

effects of macroeconomic feedback. A dynamic estimate shall include a statement identifying all such assumptions.

* * * * * * *

RULE XVIII.

THE COMMITTEE OF THE WHOLE HOUSE ON THE STATE OF THE

UNION.

* * * * * * *

Concurrent resolution on the budget

BUDGETARY REQUIREMENTS 168

10. (a) At the conclusion of general debate in the Committee

of the Whole House on the state of the Union on a concurrent resolution on the budget under section 305(a) of the Congressional

Budget Act of 1974, the concurrent resolution shall be considered

as read for amendment.

(b) It shall not be in order in the House or in the Committee

of the Whole House on the state of the Union to consider an

amendment to a concurrent resolution on the budget, or an amendment thereto, unless the concurrent resolution, as amended by such

amendment or amendments—

(1) would be mathematically consistent except as limited

by paragraph (c); and

(2) would contain all the matter set forth in paragraphs (1)

through (5) of section 301(a) of the Congressional Budget Act

of 1974.

(c)(1) Except as specified in subparagraph (2), it shall not be

in order in the House or in the Committee of the Whole House on

the state of the Union to consider an amendment to a concurrent

resolution on the budget, or an amendment thereto, that proposes

to change the amount of the appropriate level of the public debt set

forth in the concurrent resolution, as reported.

(2) Amendments to achieve mathematical consistency under

section 305(a)(5) of the Congressional Budget Act of 1974, if offered

by direction of the Committee on the Budget, may propose to adjust

the amount of the appropriate level of the public debt set forth in

the concurrent resolution, as reported, to reflect changes made in

other figures contained in the concurrent resolution.

* * * * * * *

RULE XXI.

RESTRICTIONS ON CERTAIN BILLS.

* * * * * * *

General appropriation bills and amendments

2. (a) * * *

* * * * * * *

(e) A provision other than an appropriation designated an

emergency under section 251(b)(2) or section 252(e) of the Balanced

Budget and Emergency Deficit Control Act, a rescission of budget

authority, or a reduction in direct spending or an amount for a designated emergency may not be reported in an appropriation bill or

joint resolution containing an emergency designation under section

251(b)(2) or section 252(e) of such Act and may not be in order as

an amendment thereto.

* * * * * * *

RULE XXIII.

STATUTORY LIMIT ON PUBLIC DEBT.

1. Upon adoption by Congress of a concurrent resolution on the

budget under section 301 or 304 of the Congressional Budget Act

of 1974 that sets forth, as the appropriate level of the public debt

169 BUDGETARY REQUIREMENTS

for the period to which the concurrent resolution relates, an

amount that is different from the amount of the statutory limit on

the public debt that otherwise would be in effect for that period,

the Clerk shall prepare an engrossment of a joint resolution increasing or decreasing, as the case may be, the statutory limit on

the public debt in the form prescribed in clause 2. Upon engrossment of the joint resolution, the vote by which the concurrent resolution on the budget was finally agreed to in the House shall also

be considered as a vote on passage of the joint resolution in the

House, and the joint resolution shall be considered as passed by the

House and duly certified and examined. The engrossed copy shall

be signed by the Clerk and transmitted to the Senate for further

legislative action.

2. The matter after the resolving clause in a joint resolution

described in clause 1 shall be as follows: ‘‘That subsection (b) of section 3101 of title 31, United States Code, is amended by striking

out the dollar limitation contained in such subsection and inserting

in lieu thereof ‘$ll’.’’, with the blank being filled with a dollar

limitation equal to the appropriate level of the public debt set forth

pursuant to section 301(a)(5) of the Congressional Budget Act of

1974 in the relevant concurrent resolution described in clause 1. If

an adopted concurrent resolution under clause 1 sets forth different

appropriate levels of the public debt for separate periods, only one

engrossed joint resolution shall be prepared under clause 1; and

the blank referred to in the preceding sentence shall be filled with

the limitation that is to apply for each period.

3. (a) The report of the Committee on the Budget on a concurrent resolution described in clause 1 and the joint explanatory

statement of the managers on a conference report to accompany

such a concurrent resolution each shall contain a clear statement

of the effect the eventual enactment of a joint resolution engrossed

under this rule would have on the statutory limit on the public

debt.

(b) It shall not be in order for the House to consider a concurrent resolution described in clause 1, or a conference report thereon, unless the report of the Committee on the Budget or the joint

explanatory statement of the managers complies with paragraph

(a).

4. Nothing in this rule shall be construed as limiting or otherwise affecting—

(a) the power of the House or the Senate to consider and

pass bills or joint resolutions, without regard to the procedures

under clause 1, that would change the statutory limit on the

public debt; or

(b) the rights of Members, Delegates, the Resident Commissioner, or committees with respect to the introduction, consideration, and reporting of such bills or joint resolutions.

5. In this rule the term ‘‘statutory limit on the public debt’’

means the maximum face amount of obligations issued under authority of chapter 31 of title 31, United States Code, and obligations guaranteed as to principal and interest by the United States

(except such guaranteed obligations as may be held by the Secretary of the Treasury), as determined under section 3101(b) of

BUDGETARY REQUIREMENTS 170

such title after the application of section 3101(a) of such title, that

may be outstanding at any one time.

* * * * * * *

171

JURISDICTIONS OF HOUSE AND SENATE

BUDGET COMMITTEES

173

1 In addition to clauses 1(e), 3(b), and 4(b) of rule X of the Rules of the House of Representatives, the referral of legislation affecting the budget process is discussed in the Memorandum

of Understanding as set forth on page H45 of the Congressional Record on January 4, 1995,

and in a statement by Majority Leader Armey on page E6 of the Congressional Record on January 5, 1995.

JURISDICTION OF HOUSE BUDGET COMMITTEE 1

RULE X.

ORGANIZATION OF COMMITTEES.

Committees and their legislative jurisdictions

1. There shall be in the House the following standing committees, each of which shall have the jurisdiction and related functions

assigned by this clause and clauses 2, 3, and 4. All bills, resolutions, and other matters relating to subjects within the jurisdiction

of the standing committees listed in this clause shall be referred

to those committees, in accordance with clause 2 of rule XII, as

follows:

(a) * * *

* * * * * * *

(e) Committee on the Budget.

(1) Concurrent resolutions on the budget (as defined in

section 3(4) of the Congressional Budget Act of 1974),

other matters required to be referred to the committee

under titles III and IV of that Act, and other measures setting forth appropriate levels of budget totals for the United

States Government.

(2) Budget process generally.

(3) Establishment, extension, and enforcement of special controls over the Federal budget, including the budgetary treatment of off-budget Federal agencies and measures providing exemption from reduction under any order

issued under part C of the Balanced Budget and

Emergency Deficit Control Act of 1985.

* * * * * * *

Special oversight functions

3. (a) * * *

(b) The Committee on the Budget shall study on a continuing

basis the effect on budget outlays of relevant existing and proposed

legislation and report the results of such studies to the House on

a recurring basis.

* * * * * * *

Additional functions of committees

4. (a) * * *

(b) The Committee on the Budget shall—

JURISDICTION OF HOUSE BUDGET COMMITTEE 174

(1) review on a continuing basis the conduct by the

Congressional Budget Office of its functions and duties;

(2) hold hearings and receive testimony from Members,

Senators, Delegates, the Resident Commissioner, and such appropriate representatives of Federal departments and agencies,

the general public, and national organizations as it considers

desirable in developing concurrent resolutions on the budget

for each fiscal year;

(3) make all reports required of it by the Congressional

Budget Act of 1974;

(4) study on a continuing basis those provisions of law that

exempt Federal agencies or any of their activities or outlays

from inclusion in the Budget of the United States Government,

and report to the House from time to time its recommendations

for terminating or modifying such provisions;

(5) study on a continuing basis proposals designed to improve and facilitate the congressional budget process, and report to the House from time to time the results of such studies,

together with its recommendations; and

(6) request and evaluate continuing studies of tax expenditures, devise methods of coordinating tax expenditures, policies, and programs with direct budget outlays, and report the

results of such studies to the House on a recurring basis.

* * * * * * *

175

JURISDICTION OF SENATE BUDGET COMMITTEE

RULE XXV

STANDING COMMITTEES

1. The following standing committees shall be appointed at the

commencement of each Congress, and shall continue and have the

power to act until their successors are appointed, with leave to report by bill or otherwise on matters within their respective

jurisdictions:

(a) * * *

* * * * * * *

(e)(1) Committee on the Budget, to which committee shall be

referred all concurrent resolutions on the budget (as defined in section 3(a)(4) of the Congressional Budget Act of 1974) and all other

matters required to be referred to that committee under titles III

and IV of that Act, and messages, petitions, memorials, and other

matters relating thereto.

(2) Such committee shall have the duty—

(A) to report the matters required to be reported by it

under titles III and IV of the Congressional Budget Act of

1974;

(B) to make continuing studies of the effect on budget outlays of relevant existing and proposed legislation and to report

the results of such studies to the Senate on a recurring basis;

(C) to request and evaluate continuing studies of tax expenditures, to devise methods of coordinating tax expenditures,

policies, and programs with direct budget outlays, and to report the results of such studies to the Senate on a recurring

basis; and

(D) to review, on a continuing basis, the conduct by the

Congressional Budget Office of its functions and duties.

* * * * * * *

UNANIMOUS CONSENT AGREEMENT OF JANUARY 30, 1975

(as modified on April 11, 1986) with respect to Rescissions and Deferrals (which had

the effect of adopting the language of Senate Resolution 45 which is set forth

below)):

Resolved,

1. That messages received pursuant to title X of the Congressional Budget and Impoundment Control Act be referred concurrently to the Appropriations Committee, to the Budget Committee,

and to any other appropriate authorizing committee.

JURISDICTION OF SENATE BUDGET COMMITTEE 176

2. That bills, resolutions and joint resolutions introduced with

respect to rescissions and deferrals shall be refered to the Appropriations Committee, and Budget Committee, and pending implementations of section 401 of the Congressional Budget and Impoundment Control Act and subject to section 401(d), to any other

committee exercising jurisdiction over contract and borrowing authority programs as defined by section 401(c)(2)(A) and (B). The

Budget Committee and such other committees shall report their

views, if any, to the Appropriations Committee within 20 days following referral of such messages, bills, resolutions, or joint resolutions. The Budget Committee’s consideration shall extend only to

macroeconomic implications, impact on priorities and aggregate

spending levels, and the legality of the President’s use of the deferral and rescission mechanism under title X. The Appropriations

and authorizing committees shall exercise their normal responsibilities over programs and priorities.

3. If any Committee to which a bill or resolution has been referred recommends its passage, the Appropriations Committee

shall report the bill or resolution together with its views and reports of the Budget and any appropriate authorizing committees to

the Senate within:

(A) the time remaining under the act in the case of rescissions, or

(B) within 20 days in the case of deferrals.

4. The 20 day period referred to herein means 20 calendar

days; and for the purposes of computing the 20 days, recesses or

adjournments of the Senate for more than 3 days, to a day certain

shall not be counted; and for recesses and adjournments of more

than 30 calendar days, continuous duration or the sine die adjournment of a session, the 20 day period shall begin anew on the day

following the reconvening of the Senate.

(Agreed to January 30, 1975 (94th Cong., 1st Sess.), found at page S1917 of the

Congressional Record and as modified on April 11, 1986 (99th Cong., 2d Sess.),

found on pages S7918–19 of the Congressional Record.

UNANIMOUS CONSENT AGREEMENT OF AUGUST 4, 1977

(regarding legislation affecting the budget process (the text of which is set forth

below)):

. . . [t]hat legislation affecting the congressional budget process, as described below, be referred jointly to the committees on the

Budget and on Governmental Affairs. If one committee acts to report a jointly referred measure, the other must act within 30 calendar days of the continuous possession, or be automatically discharged.

Legislative proposals affecting the congressional budget process

to which this order applies are:

First. The functions duties, and powers of the Budget Committee—as described in title I of the act;

Second. The functions, duties, and powers of the Congressional

Budget Office—as described in title II and IV of the act;

Third. The process by which Congress annually establishes the

appropriate levels of budget authority, outlays, revenues, deficits or

surpluses, and public debt—including subdivisions thereof. That

177 JURISDICTION OF SENATE BUDGET COMMITTEE

process includes the establishment: mandatory ceilings on spending

and appropriations; a floor on revenues; timetables for congressional action on concurrent resolutions, on the reporting on authorization bills, and on the enactment of appropriation bills; and enforcement mechanisms for the limits and timetables, all as described in titles III and IV of the act.

Fourth. The limiting of backdoor spending device—as described

in title IV of the act;

Fifth. The timetables for Presidential submission of appropriations and authorization requests—as described in title IV of the

act;

Sixth. The definitions of what constitutes impoundment—such

as ‘‘rescissions’’ and ‘‘deferrals’’ as provided in the Impoundment

Control Act, title X;

Seventh. The process and determination by which impoundments must be reported to and considered by Congress—as provided in the Impoundment Control Act, title X;

Eighth. The mechanisms to insure Executive compliance with

the provisions of the Impoundment Control Act, title X—such as

GAO review and lawsuits; and

Ninth. The provisions which affect the content or determination of amounts included in or excluded from the congressional

budget or the calculation of such amounts, including the definition

of terms provided by the Budget Act—as set forth in title I thereof.

(Agreed to August 4, 1977 (95th Cong., 1st Sess.), found at pages S26709–10

of the Congressional Record.