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104TH CONGRESS

1ST SESSION S. 202

To provide a fair, nonpolitical process that will achieve $45,000,000,000

in budget outlay reductions each fiscal year until a balanced budget

is reached.

IN THE SENATE OF THE UNITED STATES

JANUARY 11 (legislative day, JANUARY 10), 1995

Mr. MACK (for himself, Mrs. HUTCHISON, Mr. COVERDELL, and Mr. LOTT)

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

Committee on Governmental Affairs

A BILL

To provide a fair, nonpolitical process that will achieve

$45,000,000,000 in budget outlay reductions each fiscal

year until a balanced budget is reached.

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

3 SECTION 1. SHORT TITLE AND PURPOSE.

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

5 ‘‘Spending Reduction Act’’.

6 (b) PURPOSE.—The purpose of this Act is to provide

7 a fair, nonpolitical process that will achieve at least

8 $45,000,000,000 in budget outlay reductions each fiscal

9 year until a balanced budget is reached (but in the year
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1 in which the balanced budget is reached, only the amount

2 necessary to achieve a balance).

3 SEC. 2. THE COMMISSION.

4 (a) ESTABLISHMENT.—There is established an inde5 pendent commission to be known as the ‘‘Spending Reduc6 tion Commission’’ (referred to as the ‘‘Commission’’).

7 (b) DUTIES.—The Commission shall propose cost

8 savings and changes in law to achieve at least

9 $45,000,000,000 of budget outlay reductions for the

10 budget year and each outyear until a balanced budget is

11 reached subject to the following guidelines. It should

12 attempt to:

13 (1) Eliminate redundant and outdated pro14 grams, as well as those whose missions can be effec15 tively accomplished by the private sector.

16 (2) Reduce those programs with excessive ad17 ministrative costs or can be consolidated with other

18 programs.

19 (3) Eliminate programs that provide subsidies

20 that benefit narrow special interest groups at the ex21 pense of the national interest.

22 (4) Reduce or eliminate those programs that

23 have low priority in meeting a national interest cri24 terion.
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1 (c) APPOINTMENT.—(1)(A) The Commission shall be

2 composed of 7 members appointed by the President, by

3 and with the advice and consent of the Senate.

4 (B) The President shall transmit to the Senate the

5 nominations for appointment to the Commission by no

6 later than January 15th for each fiscal year.

7 (2) In selecting individuals for nominations for ap8 pointments to the Commission, the President shall

9 select—

10 (A) 4 of the members from a list of 10 individ11 uals submitted by the Speaker of the House of Rep12 resentatives and the majority leader of the Senate;

13 and

14 (B) 3 of the members from a list of 10 individ15 uals submitted by the minority leader of the House

16 of Representatives and the minority leader of the

17 Senate.

18 (3) At the time the President nominates individuals

19 for appointment to the Commission, the President shall

20 designate one such individual who shall serve as Chairman

21 of the Commission.

22 (4) No current Member of Congress, employee of the

23 Executive branch, or current or former registered lobbyist

24 may serve on the Commission.
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1 (d) TERMS.—(1) Except as provided in paragraph

2 (2), each member of the Commission shall serve until No3 vember 1st of the calendar year in which the member is

4 appointed.

5 (2) The Chairman of the Commission shall serve until

6 the confirmation of a successor.

7 (e) MEETINGS.—(1) Each meeting of the Commis8 sion, other than meetings in which classified information

9 is to be discussed, shall be open to the public.

10 (2) All the proceedings, information, and delibera11 tions of the Commission shall be open, upon request, to

12 the Chairman and the ranking minority member of the

13 Budget and Appropriations Committees of each House.

14 (f) VACANCIES.—A vacancy in the Commission shall

15 be filled in the same manner as the original appointment.

16 (g) PAY AND TRAVEL EXPENSES.—(1)(A) Each

17 member, other than the Chairman, shall be paid at a rate

18 not to exceed to the daily equivalent of the minimum an19 nual rate of basic pay payable for level IV of the Executive

20 Schedule under section 5315 of title 5, United States

21 Code, for each day (including travel time) during vested

22 in the Commission.

23 (B) The Chairman shall be paid for each day referred

24 to in subparagraph (A) at a rate not to exceed to the daily

25 equivalent of the minimum annual rate of basic pay pay-
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1 able for level III of the Executive Schedule under section

2 5314 of title 5, United States Code.

3 (2) Members shall receive travel expenses, including

4 per diem in lieu of subsistence, in accordance with sections

5 5702 and 5703 of title 5, United States Code.

6 (h) DIRECTOR OF STAFF.—(1) The Commission

7 shall, without regard to section 5311(b) of title 5, United

8 States Code, appoint a Director who has not been em9 ployed by the Federal Government during the 1-year pe10 riod preceding the date of such appointment and who is

11 not a former Member of Congress or registered lobbyist.

12 (2) The Director shall be paid at a rate not to exceed

13 the rate of basic pay payable for level IV of the Executive

14 Schedule under section 5315 of title 5, United States

15 Code.

16 (i) STAFF.—(1) Subject to paragraphs (2) and (3),

17 the Director, with the approval of the Commission, may

18 appoint and fix pay of additional personnel.

19 (2) The Director may take such appointments with20 out regard to the provisions of title 5, United States Code,

21 governing appointment in the competitive service, and any

22 personnel so appointed may be paid without regard to the

23 provisions of chapter 51 and subchapter III of chapter 53

24 of that title relating to classification and General Schedule

25 pay rates, except that an individual so appointed may not
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1 receive pay in excess of the annual rate of basic pay pay2 able for GS–18 of the General Schedule.

3 (3) Not more than one-third of the personnel em4 ployed by or detailed to the Commission may be on detail

5 from any Government agency.

6 (4) Upon request of the Director, the head of any

7 Federal department or agency may detail any or the per8 sonnel of that department or agency to the Commission

9 to assist the Commission in carrying out its duties under

10 this Act.

11 (5) The Comptroller General of the United States

12 shall provide assistance, including the detailing of employ13 ees, to the Commission in accordance with an agreement

14 entered into with the Commission.

15 (j) OTHER AUTHORITY.—(1) The Commission may

16 procure by contract, to the extent funds are available, the

17 temporary or intermittent services of experts or consult18 ants pursuant to section 3109 of title 5, United States

19 Code.

20 (2) The Commission may lease space and acquire per21 sonal property to the extent funds are available.

22 (k) FUNDING.—Each department and agency shall

23 transfer necessary funding to the Commission on a pro

24 rata basis based on that agency’s or departments funding

25 percentage of the total Executive budget.
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1 (l) TERMINATION.—Each Commission shall termi2 nate on November 1st of the year in which the Commis3 sion is appointed.

4 SEC. 3. PROCEDURE FOR MAKING RECOMMENDATION FOR

5 PROPOSED CUTS.

6 (a) SELECTION CRITERIA.—(1) OMB shall, by no

7 later than January 1st of each year, publish in the Federal

8 Register and transmit to the Budget and Appropriations

9 committees of each House the criteria proposed to be used

10 by OMB in making budget outlay reduction recommenda11 tions required by section 2(b). OMB shall provide an op12 portunity for public comment on the proposed criteria for

13 a period of at least 10 days and shall include notice of

14 that opportunity in the publication required under the pre15 ceding sentence.

16 (2)(A) OMB shall, by no later than January 15th,

17 publish in the Federal Register and transmit to the con18 gressional budget and appropriations committees the final

19 criteria to be used in making recommendations for pro20 gram cuts. Except as provided in subparagraph (B), such

21 criteria shall be the final criteria to be used in making

22 such recommendations unless disapproved by a joint reso23 lution of Congress enacted on or before February 1st.

24 (B) OMB shall amend such criteria, but such amend25 ments may not become effective until they have been pub-
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1 lished in the Federal Register, opened to public comment

2 for at least 10 days, and then transmitted to the Budget

3 and Appropriations committees of each House in final

4 form by no later than February 1st. Such amended cri5 teria shall be the final criteria to be used in making such

6 recommendations unless disapproved by a joint resolution

7 of Congress enacted on or before February 15th.

8 (b) OMB RECOMMENDATIONS.—(1) OMB may, by

9 no later than April 1st, publish in the Federal Register

10 and transmit to the congressional budget and appropria11 tions committees and to the Commission OMB’s rec12 ommendations for budget outlay reductions.

13 (2) OMB shall include, with the list of recommenda14 tions published and transmitted pursuant to paragraph

15 (1), a summary of the selection process that resulted in

16 the recommendation.

17 (3) In considering such outlay reductions, OMB shall

18 consider all programs without regard to whether such pro19 grams have previously been considered or proposed for

20 elimination.

21 (4) OMB shall make available to the Commission and

22 the Comptroller General of the United States all informa23 tion used by OMB in making its recommendations.

24 (c) REVIEW AND RECOMMENDATIONS BY THE COM25 MISSION.—(1) After receiving the recommendations from
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1 OMB pursuant to subsection (b), the Commission shall

2 conduct public hearings on the recommendations.

3 (2) The Director of the Congressional Budget Office

4 shall notify the Commission on August 1st of any savings

5 that have been enacted into law for the upcoming fiscal

6 year. The years target for such fiscal year shall be reduced

7 by the amount of such savings.

8 (3)(A) The Commission shall, by no later than Au9 gust 15th, transmit to the President a report containing

10 the Commission’s findings and conclusions based on a re11 view and analysis of the recommendations.

12 (B) In making its recommendations, the Commission

13 may make changes in any of the recommendations made

14 by OMB.

15 (4) The Commission shall explain and justify in its

16 report submitted to the President pursuant to paragraph

17 (2) any recommendation made by the Commission that is

18 different from the recommendations made by OMB pursu19 ant to subsection (b). The Commission shall transmit a

20 copy of such report to the Budget and Appropriations

21 committees of each House on the same date on which it

22 transmits its recommendations to the President under

23 paragraph (2).

24 (5) After August 15th, the Commission shall prompt25 ly provide, upon request, to any Member of Congress in-
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1 formation used by the Commission in making its rec2 ommendations.

3 (6) The Congressional Budget Office shall—

4 (A) assist the Commission, to the extent re5 quested, in the Commission’s review and analysis of

6 the recommendations made by OMB pursuant to

7 subsection (b); and

8 (B) by no later than June 1st, transmit to the

9 Congress and to the Commission a report containing

10 a detailed analysis of OMB’s recommendations and

11 selection process.

12 (d) REVIEW BY THE PRESIDENT.—(1) The President

13 shall, by no later than September 1st, transmit to the

14 Commission and to the Congress, a report containing the

15 President’s approval or disapproval of the Commission’s

16 recommendations.

17 (2) If the President approves all the recommenda18 tions of the Commission, the President shall transmit a

19 copy of such recommendations to the Congress, together

20 with a certification of such approval and legislative lan21 guage implementing such recommendations.

22 (3) If the President disapproves the recommendations

23 of the Commission, in whole or in part, the President shall

24 transmit to the Commission and the Congress the reasons

25 for that disapproval. The Commission shall then transmit
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1 to the President, by no later than September 5th, a revised

2 list of recommendations.

3 (4) If the President approves all of the revised rec4 ommendations of the Commission transmitted to the

5 President under paragraph (3), the President shall trans6 mit a copy of such revised recommendation to the Con7 gress, together with a certification of such approval.

8 (5) If the President does not transmit to the Con9 gress an approval and certification described in paragraph

10 (2) or (4) by September 10th, the process by which budget

11 outlay reductions may occur under this Act with respect

12 to that year shall be terminated.

13 SEC. 4. BUDGET OUTLAY REDUCTIONS.

14 (a) IN GENERAL.—The President shall submit rec15 ommendations to Congress together with a joint resolution

16 containing legislative language implementing such rec17 ommendations not later than September 10th, as provided

18 in section 3.

19 (b) CONGRESSIONAL CONSIDERATION OF PRESI20 DENT’S RECOMMENDATIONS.—

21 (1) TERMS OF THE RESOLUTION.—For the pur22 poses of subsection (a), the term ‘‘joint resolution’’

23 means a joint resolution that—

24 (A) is introduced within the 2-day period

25 beginning on the date on which the President
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1 transmits a report to the Congress under sec2 tion 3(d);

3 (B) does not have a preamble;

4 (C) states after the resolving clause ‘‘That

5 Congress approves the recommendations of the

6 Spending Reduction Commission submitted by

7 the President on lll’’, the blank space

8 being filled in with the appropriate date and

9 contains the President’s legislative language de10 scribed in subsection (a); and

11 (D) is entitled a ‘‘Joint resolution approv12 ing the recommendations of the Spending Re13 duction Commission.’’.

14 (2) REFERRAL.—(A) A resolution described in

15 paragraph (1) that is introduced in the House of

16 Representatives shall be referred to the Committee

17 on Government Operations of the House of Rep18 resentatives.

19 (B) A resolution described in paragraph (1)

20 that is introduced in the Senate shall be referred to

21 the Committee on Governmental Affairs of the Sen22 ate.

23 (3) DISCHARGE.—If the committee to which a

24 resolution described in paragraph (1) is referred has

25 not reported the resolution (or an identical resolu-
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1 tion) by the end of the 5-day period beginning on

2 the date on which the President transmits the report

3 to the Congress, such committee shall, at the end of

4 that period, be discharged from further consider5 ation of the resolution, and the resolution shall be

6 placed on the appropriate calendar of the House of

7 Representatives or the Senate, as the case may be.

8 (4) CONSIDERATION.—(A)(i) On or after the

9 first day after the date on which the committee to

10 which a joint resolution described in paragraph (1)

11 is referred has reported, or has been discharged

12 (under paragraph (3)) from further consideration of,

13 such a resolution, it is in order (even though a pre14 vious motion to the same effect has been disagreed

15 to) for any member of the House of Representatives

16 or the Senate, respectively, to move to proceed to the

17 consideration of the resolution (but only on the date

18 after the calendar day on which the member an19 nounces to the House concerned the member’s inten20 tion to do so).

21 (ii) All points of order against a resolution de22 scribed in paragraph (1) (and against consideration

23 of the resolution) are waived.

24 (iii)(I) A motion to proceed to the consideration

25 of a joint resolution described in paragraph (1) is
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1 highly privileged in the House of Representatives

2 and is privileged in the Senate and is not debatable.

3 (II) A motion described in subclause (I) is not

4 subject to amendment, to a motion to postpone con5 sideration of the resolution, or to a motion to pro6 ceed to the consideration of other business.

7 (III) A motion to reconsider the vote by which

8 a motion described in subclause (I) is agreed to or

9 not agreed to shall not be in order.

10 (IV) If a motion described in subclause (I) is

11 agreed to, the House of Representatives or the Sen12 ate, as the case may be, shall immediately proceed

13 to consideration of the joint resolution without inter14 vening motion, order, or other business, and the res15 olution shall remain the unfinished business of the

16 House of Representatives or the Senate, as the case

17 may be, until disposed of.

18 (B)(i) Debate on a joint resolution described in

19 paragraph (1) and on all debatable motions and ap20 peals in connection therewith shall be limited to not

21 more than 5 hours, which shall be divided equally

22 between those favoring and those opposing the reso23 lution.

24 (ii) An amendment to a joint resolution de25 scribed in paragraph (1) is not in order.
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1 (iii) A motion further to limit debate on a joint

2 resolution described in paragraph (1) is in order and

3 not debatable.

4 (iv) A motion to postpone consideration of a

5 joint resolution described in paragraph (1), a motion

6 to proceed to the consideration of other business, or

7 a motion to recommit the resolution is not in order.

8 (v) A motion to reconsider the vote by which a

9 resolution described in paragraph (1) is agreed to or

10 not agreed to is not in order.

11 (C) Immediately following the conclusion of the

12 debate on a joint resolution described in paragraph

13 (1) and a single quorum call at the conclusion of the

14 debate if requested in accordance with the rules of

15 the House of Representatives or the Senate, as the

16 case may be, the vote on final passage of the resolu17 tion shall occur.

18 (D) Appeals from the decisions of the Chair re19 lating to the application of the rules of the House

20 of Representatives or of the Senate, as the case may

21 be, to the procedure relating to a joint resolution de22 scribed in paragraph (1) shall be decided without de23 bate.

24 (5) CONSIDERATION BY OTHER HOUSE.—(A) If,

25 before the passage by one House of a joint resolu-
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1 tion described in paragraph (1) that was introduced

2 in that House, that House receives from the other

3 House a joint resolution described in paragraph

4 (1)—

5 (i) the resolution of the other House shall

6 not be referred to a committee and may not be

7 considered in the House that receives it other8 wise than on final passage under clause (ii)(II);

9 and

10 (ii)(I) the procedure in the House that re11 ceives such a resolution with respect to such a

12 resolution that was introduced in that House

13 shall be the same as if no resolution had been

14 received from the other House; but

15 (II) the vote on final passage shall be on

16 the resolution of the other House.

17 (B) Upon disposition of a joint resolution de18 scribed in paragraph (1) that is received by one

19 House from the other House, it shall no longer be

20 in order to consider such a resolution that was intro21 duced in the receiving House.

22 (6) DATE CERTAIN.—If the Senate and the

23 House of Representatives have not acted upon the

24 joint resolution by September 30th, then on that day

25 or the next day of session thereafter the joint resolu-
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1 tion shall be called up by the Presiding Officer of

2 each House upon convening and a roll call vote shall

3 be conducted on passage. If the joint resolution

4 passes one House a vote on final passage shall be

5 immediately conducted in the other House.

6 (7) RULES OF THE SENATE AND HOUSE OF

7 REPRESENTATIVES.—This subsection is enacted by

8 Congress—

9 (A) as an exercise of the rulemaking power

10 of the Senate and House of Representatives, re11 spectively, and is deemed to be part of the rules

12 of each House, respectively, but applicable only

13 with respect to the procedure to be followed in

14 that House in the case of a joint resolution de15 scribed in paragraph (1), and it supersedes

16 other rules only to the extent that it is incon17 sistent with such rules; and

18 (B) with full recognition of the constitu19 tional right of either House to change the rules

20 (so far as they relate to the procedure of that

21 House) at any time, in the same manner, and

22 to the same extent as in the case of any other

23 rule of that House.
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1 SEC. 5. BUDGET OUTLAY REDUCTIONS PERMANENT.

2 All obligational authority reduced pursuant to this

3 Act shall be done in a manner that shall make such reduc4 tions permanent.

5 SEC. 6. ADDITIONAL ENFORCEMENT PROVISIONS.

6 (a) PAYGO SCORECARD.—No reductions in direct

7 spending pursuant to this Act shall be treated as a net

8 deficit decrease for purposes of section 252 of the Bal9 anced Budget and Emergency Deficit Control Act of 1985.

10 (b) DISCRETIONARY SPENDING LIMITS.—When

11 OMB submits a sequestration report under section 254

12 (g) or (h) of the Balanced Budget and Emergency Deficit

13 Control Act of 1985, OMB shall include downward adjust14 ments to discretionary spending limits (in new budget au15 thority and outlays) for the budget year and each outyear

16 to take full account of all reductions in discretionary

17 spending pursuant to this Act for that fiscal year.

18 SEC. 7. COMPLIANCE REPORT BY COMPTROLLER GEN19 ERAL.

20 Within 15 days after the end of a session of Congress,

21 the Comptroller General shall submit to the Congress and

22 the President a report stating whether the requirements

23 of this Act have been complied with and indicating the

24 respects (if any) in which they have not.
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1 SEC. 8 DEFINITIONS.

2 As used in this Act, the terms ‘‘budget outlay’’, ‘‘out3 lay’’, ‘‘new budget authority’’, ‘‘direct spending’’, and

4 ‘‘OMB’’ have the meanings given to such terms by section

5 250(c) of the Balanced Budget and Emergency Deficit

6 Control Act of 1985.

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