I 

111TH CONGRESS 

1ST SESSION H. R. 3964 

To reform Federal budget procedures, to impose spending and deficit limits, 

to provide for a sustainable fiscal future, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

OCTOBER 29, 2009 

Mr. HENSARLING (for himself, Mr. RYAN of Wisconsin, Mr. GARRETT of New 

Jersey, Mr. CAMPBELL, Mr. JORDAN of Ohio, Mrs. LUMMIS, Mr. LATTA, 

Mr. BARTON of Texas, Mr. BISHOP of Utah, Mrs. BLACKBURN, Mr. 

BRADY of Texas, Mr. BROUN of Georgia, Mr. COLE, Mr. FRANKS of Arizona, Mr. HERGER, Mr. LAMBORN, Mr. LUETKEMEYER, Mr. MARCHANT, 

Mr. NEUGEBAUER, Mr. PITTS, and Mr. SHADEGG) introduced the following bill; which was referred to the Committee on the Budget, and in 

addition to the Committees on Rules, Appropriations, Oversight and Government Reform, and Ways and Means, for a period to be subsequently 

determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To reform Federal budget procedures, to impose spending 

and deficit limits, to provide for a sustainable fiscal 

future, and for other purposes. 

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

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

5 ‘‘Spending, Deficit, and Debt Control Act of 2009’’. 

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1 (b) TABLE OF CONTENTS.— 

Sec. 1. Short title; table of contents. 

Sec. 2. Findings. 

Sec. 3. Purposes. 

Sec. 4. Effective date. 

TITLE I—A BINDING FEDERAL BUDGET 

Sec. 100. Short title. 

Subtitle A—Joint Budget Resolution 

Sec. 101. Purposes. 

Sec. 102. Timetable. 

Sec. 103. Joint resolution on the budget. 

Sec. 104. Budget required before spending bills may be considered. 

Sec. 105. Amendments to joint resolutions on the budget. 

Subtitle B—Budgeting for Emergencies 

Sec. 111. Repeal of adjustments for emergencies. 

Sec. 112. Emergency criteria. 

Sec. 113. Development of guidelines for application of emergency definition. 

Sec. 114. Reserve fund for emergencies in President’s budget. 

Sec. 115. Adjustments and reserve rund for emergencies in joint budget resolutions. 

Sec. 116. Application of section 306 to emergencies in excess of amounts in reserve fund. 

Sec. 117. Up-to-date tabulations. 

Sec. 118. Prohibition on amendments to the emergency reserve fund. 

Subtitle C—Biennial Budget 

Sec. 121. Effective date. 

Sec. 122. Revision of timetable. 

Sec. 123. Amendments to the Congressional Budget and Impoundment Control 

Act of 1974. 

Sec. 124. Amendments to Rules of the House of Representatives. 

Sec. 125. Two-year appropriations; title and style of appropriation Acts. 

Sec. 126. Multiyear authorizations. 

Sec. 127. Government strategic and performance plans on a biennial basis. 

Sec. 128. Biennial appropriation bills. 

Sec. 129. Assistance by Federal agencies to standing committees of the Senate 

and the House of Representatives. 

Subtitle D—Prevention of Government Shutdown 

Sec. 131. Amendment to Title 31. 

Subtitle E—The Baseline 

Sec. 141. Elimination of inflation adjustment. 

Sec. 142. The President’s budget. 

Sec. 143. The congressional budget. 

Sec. 144. Congressional Budget Office reports to committees. 

Sec. 145. Treatment of emergencies. 

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TITLE II—SPENDING LIMITS AND DEFICIT CONTROL 

Sec. 200. Short title. 

Subtitle A—Spending Limits and Deficit Control 

Sec. 201. Discretionary spending limits. 

Sec. 202. Direct spending limits. 

Sec. 203. Total spending limits. 

Sec. 204. Deficit limits. 

Subtitle B—Reports and Orders 

Sec. 211. Reports and orders. 

Sec. 212. Spending and deficit limits enforcement. 

Sec. 213. Spending reduction orders. 

TITLE III—LONG-TERM BUDGETING 

Sec. 300. Short title; purposes. 

Sec. 301. CBO and OMB projections. 

Sec. 302. GAO and OMB statements of the Federal Government’s financial 

condition. 

Sec. 303. Five-year Fiscal Sustainability Review. 

Sec. 304. Long-term reconciliation. 

Sec. 305. Long-term spending increase point of order. 

TITLE IV—SPENDING REFORM 

Subtitle A—Federal Program Sunset 

Sec. 400. Short title. 

Sec. 401. Review and abolishment of Federal agencies. 

Sec. 402. Establishment of commission. 

Sec. 403. Review of efficiency and need for Federal agencies. 

Sec. 404. Criteria for review. 

Sec. 405. Commission oversight. 

Sec. 406. Rulemaking authority. 

Sec. 407. Relocation of Federal employees. 

Sec. 408. Program inventory. 

Sec. 409. Definition of agency. 

Subtitle B—Legislative Line-Item Veto 

Sec. 410. Short title. 

Sec. 411. Legislative line-item veto. 

Sec. 412. Technical and conforming amendments. 

Sec. 413. Rescission measures considered. 

Subtitle C—Commission to Eliminate Waste, Fraud, and Abuse 

Sec. 420. Short title. 

Sec. 421. Establishment of Commission. 

Sec. 422. Duties of the Commission. 

Sec. 423. Powers of the Commission. 

Sec. 424. Commission personnel matters. 

Sec. 425. Termination of the Commission. 

Sec. 426. Congressional consideration of reform proposals. 

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Sec. 427. Authorization of appropriations. 

TITLE V—TRANSPARENCY IN BUDGETING 

Sec. 500. Short title. 

Subtitle A—Accrual Funding of Pensions and Retirement Pay for Federal 

Employees and Uniformed Services Personnel 

Sec. 501. Civil Service Retirement System. 

Sec. 502. Central Intelligence Agency Retirement and Disability System. 

Sec. 503. Foreign Service Retirement and Disability System. 

Sec. 504. Public Health Service Commissioned Corps Retirement System. 

Sec. 505. National Oceanic and Atmospheric Administration Commissioned Officer Corps Retirement System. 

Sec. 506. Coast Guard Military Retirement System. 

Subtitle B—Accrual Funding of Post-Retirement Health Benefits Costs for 

Federal Employees 

Sec. 511. Federal Employees Health Benefits Fund. 

Sec. 512. Funding Uniformed Services health benefits for all retirees. 

Sec. 513. Effective date. 

Subtitle C—Earmark Reform 

Sec. 521. Joint Select Committee on Earmark Reform. 

Sec. 522. Moratorium on consideration of earmarks. 

Subtitle D—Public Debt Limit 

Sec. 531. Limit on public debt. 

Sec. 532. Repeal of the Gephardt Rule. 

Subtitle E—Risk-Assumed Budgeting 

Sec. 541. Market Adjusted Rate for Federal Credit Reform Act of 1990. 

Sec. 542. CBO and GAO study. 

TITLE VI—BUDGET ENFORCEMENT 

Sec. 600. Short title. 

Subtitle A—Enforcement Amendments 

Sec. 601. Points of order in the House of Representatives and the Senate. 

Sec. 602. Point of order waiver protection. 

Sec. 603. Application of the limitation on reconciliation legislation. 

Sec. 604. Twenty-percent limit on new direct spending in reconciliation legislation. 

Sec. 605. Treatment of extraneous appropriations. 

Sec. 606. Establishment of Discretionary Deficit Reduction Account. 

Sec. 607. Establishment of Mandatory Deficit Reduction Account. 

Sec. 608. Conforming amendment. 

Subtitle B—Committee Term Limits Study in the House of Representatives 

Sec. 611. Suspension of certain requirements regarding the House of Representatives committee term limits committee. 

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Sec. 612. Establishment of the select committee on requirements regarding the 

House of Representatives Budget Committee. 

Sec. 613. Procedure. 

Sec. 614. Composition. 

Sec. 615. Reporting. 

Sec. 616. Administrative provisions. 

Sec. 617. Dissolution. 

SUBTITLE C—JUDICIAL CONSIDERATION 

Sec. 621. Judicial review. 

Sec. 622. Severability. 

1 SEC. 2. FINDINGS. 

2 Congress finds that— 

3 (1) the Congressional Budget Office, the Gov4 ernment Accountability Office, and the chairman of 

5 the Federal Reserve have all found that 

6 unsustainable fiscal trends, driven by Federal spend7 ing, represent a serious threat to the United States 

8 economy and the prosperity of the American people; 

9 (2) the current Federal budget process fails to 

10 fully allocate resources for national priorities and 

11 lacks the means to control Federal spending, defi12 cits, and debt; 

13 (3) budgeting is essential to governing; and 

14 (4) the effectiveness of the budget depends on 

15 the strength of the budget process. 

16 SEC. 3. PURPOSES. 

17 The purposes of this Act are as follows— 

18 (1) to reform and strengthen the Federal budg19 et process by enacting a comprehensive set of sound, 

20 reasonable, and enforceable measures; 

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1 (2) to properly focus the Federal budget proc2 ess on controlling spending, deficits, and debt; 

3 (3) to provide Congress with the tools for 

4 stronger and more durable control of spending and 

5 deficits; 

6 (4) to increase transparency and provide a com7 prehensive assessment of the budget’s commitments; 

8 and 

9 (5) to reform the budget process to give Con10 gress a thorough assessment of the long-term budget 

11 commitments, to establish sustainable benchmarks 

12 for major programs, and to provide the means to re13 form major entitlement programs to ensure sustain14 able levels of Federal spending, deficits, and debt. 

15 SEC. 4. EFFECTIVE DATE. 

16 Except as otherwise specifically provided, this Act 

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

19 with respect to fiscal years beginning after September 30, 

20 2010. 

21 TITLE I—A BINDING FEDERAL 

22 BUDGET 

23 SEC. 100. SHORT TITLE. 

24 This Act may be cited as the ‘‘Enhanced Spending 

25 Control and Budget Enforcement Act of 2009’’. 

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1 Subtitle A—Joint Budget 

2 Resolution 

3 SEC. 101. PURPOSES. 

4 Paragraphs (1) and (2) of section 2 of the Congres5 sional Budget and Impoundment Control Act of 1974 are 

6 amended to read as follows: 

7 ‘‘(1) to assure effective control over the budg8 etary process; and 

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

10 the appropriate level of Federal revenues and ex11 penditures by the Congress and the President;’’. 

12 SEC. 102. TIMETABLE. 

13 Section 300 of the Congressional Budget Act of 1974 

14 is amended to read as follows: 

15 ‘‘TIMETABLE

16 ‘‘SEC. 300. The timetable with respect to the Con17 gressional budget process for any fiscal year is as follows: 

‘‘First Session 

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 ....................................... Budget Committees report joint resolution on 

the budget. 

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

on the budget. 

June 10 ...................................... House Appropriations Committee reports last 

annual appropriation bill. 

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

legislation. 

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

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‘‘First Session—Continued 

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

1 SEC. 103. JOINT RESOLUTION ON THE BUDGET. 

2 (a) CONTENT OF JOINT RESOLUTIONS ON THE

3 BUDGET.—Section 301(a)(4) of the Congressional Budget 

4 Act of 1974 is amended to read as follows: 

5 ‘‘(4) subtotals of new budget authority and out6 lays for nondefense discretionary spending, defense 

7 discretionary spending, Medicare, Medicaid, other di8 rect spending (excluding interest), and interest; and 

9 for emergencies (for the reserve fund in section 

10 317(b) and for military operations in section 

11 317(C));’’. 

12 (b) ADDITIONAL MATTERS IN JOINT RESOLUTION.— 

13 Section 301(b) of the Congressional Budget Act of 1974 

14 is amended as follows: 

15 (1) Strike paragraphs (1), and (6) through (9). 

16 (2) Redesignate paragraphs (2), (3), (4), and 

17 (5) accordingly. 

18 (3) Amend paragraph (3), as redesignated, to 

19 read as follows: 

20 ‘‘(3) set forth such other matters, and require 

21 such other procedures, relating to the budget as may 

22 be appropriate to carry out the purposes of the Act, 

23 but shall not include a suspension or alteration of 

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1 the application of the motion to strike a provision as 

2 set forth in section 310(d)(2) or (h)(2)(F).’’. 

3 (c) REQUIRED CONTENTS OF REPORT.—Section 

4 301(e)(2) of the Congressional Budget Act of 1974 is 

5 amended as follows: 

6 (1) Redesignate subparagraphs (A), (B), (C), 

7 (D), (E), and (F) as subparagraphs (B), (C), (E), 

8 (F), (H), and (I), respectively. 

9 (2) Before subparagraph (B) (as redesignated), 

10 insert the following new subparagraph: 

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

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

14 subsection (a)(1);’’. 

15 (3) In subparagraph (C) (as redesignated), 

16 strike ‘‘mandatory’’ and insert ‘‘direct spending’’. 

17 (4) After subparagraph (C) (as redesignated), 

18 insert the following new subparagraph: 

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

20 domestic product, of total outlays, total Federal 

21 revenues, the surplus or deficit, and new out22 lays for nondefense discretionary spending, de23 fense spending, Medicare, Medicaid and other 

24 direct spending as set forth in such resolu25 tion;’’. 

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1 (5) After subparagraph (F) (as redesignated), 

2 insert the following new subparagraph: 

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

4 includes any allocation to a committee other 

5 than the Committee on Appropriations of levels 

6 in excess of current law levels, a justification 

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

10 (d) ADDITIONAL CONTENTS OF REPORT.—Section 

11 301(e)(3) of the Congressional Budget Act of 1974 is 

12 amended as follows: 

13 (1) Redesignate subparagraphs (A) and (B) as 

14 subparagraphs (B) and (C), respectively, strike sub15 paragraphs (C) and (D), and redesignate subpara16 graph (E) as subparagraph (D) and strike the pe17 riod and insert ‘‘; and’’. 

18 (2) Before subparagraph (B), insert the fol19 lowing new subparagraph: 

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

21 each major functional category, based on alloca22 tions of the total levels set forth pursuant to 

23 subsection (a)(1);’’. 

24 (3) At the end, add the following new subpara25 graph: 

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1 ‘‘(E) set forth, if required by subsection 

2 (f), the calendar year in which, in the opinion 

3 of the Congress, the goals for reducing unem4 ployment set forth in section 4(b) of the Em5 ployment Act of 1946 should be achieved.’’. 

6 (e) BUDGET PRESENTATION.—After section 

7 301(e)(3) add the following new paragraph: 

8 ‘‘(4) BUDGET FORMAT.—In addition to the con9 tents that may be included in the report pursuant to 

10 paragraph (3), a presentation of the functional cat11 egories may also be included as follows: 

12 ‘‘(A) PRINCIPAL FEDERAL OBLIGATIONS.— 

13 Activities intrinsic to the Federal Government 

14 (including both discretionary and mandatory 

15 spending) as follows: 

16 ‘‘(i) National defense; 

17 ‘‘(ii) International affairs; 

18 ‘‘(iii) Veterans benefits and services; 

19 and 

20 ‘‘(iv) Administration of justice. 

21 ‘‘(B) FEDERALLY SUPPORTED DOMESTIC

22 PRIORITIES.—The total domestic discretionary 

23 spending levels as follows: 

24 ‘‘(i) Total domestic discretionary 

25 spending. 

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1 ‘‘(ii) Optional inclusion of additional 

2 specific recommended levels. 

3 ‘‘(C) MAJOR DOMESTIC ENTITLEMENTS.— 

4 Major domestic direct spending programs as 

5 follows: 

6 ‘‘(i) Medicare. 

7 ‘‘(ii) Medicaid. 

8 ‘‘(iii) Other direct spending. 

9 ‘‘(iv) Optional inclusion of additional 

10 specific recommended levels. 

11 ‘‘(D) GENERAL GOVERNMENT AND FINAN12 CIAL MANAGEMENT.—Funding for financing 

13 government operations as follows: 

14 ‘‘(i) General government. 

15 ‘‘(ii) Net interest. 

16 ‘‘(iii) Allowances. 

17 ‘‘(iv) Offsetting receipts.’’. 

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

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

21 follows: ‘‘On or after the first Monday in January but not 

22 later than the first Monday in February of each year the 

23 President shall submit a budget of the United States Gov24 ernment for the following fiscal year which shall set forth 

25 the following levels: 

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1 ‘‘(A) Totals of new budget authority and out2 lays. 

3 ‘‘(B) Total Federal revenues and the amount, if 

4 any, by which the aggregate level of Federal reve5 nues should be increased or decreased by bills and 

6 resolutions to be reported by the appropriate com7 mittees. 

8 ‘‘(C) The surplus or deficit in the budget. 

9 ‘‘(D) Subtotals of new budget authority and 

10 outlays for nondefense discretionary spending, de11 fense discretionary spending, direct spending (ex12 cluding interest), and interest, and for emergencies 

13 (for the reserve fund in section 317(b) and for mili14 tary operations in section 317(c). 

15 ‘‘(E) The public debt. 

16 Each budget submission shall include a budget message 

17 and summary and supporting information and, as a sepa18 rately delineated statement, the levels requires in the pre19 ceding sentence for at least each of the 4 ensuing fiscal 

20 years.’’. 

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

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

23 after ‘‘budget’’. 

24 (g) LIMITATION ON THE CONTENT OF BUDGET RES25 OLUTIONS.—Section 305 of the Congressional Budget Act 

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1 of 1974 is amended by adding at the end the following 

2 new subsection: 

3 ‘‘(e) LIMITATION ON CONTENTS.—(1) It shall not be 

4 in order in the House of Representatives or in the Senate 

5 to consider any joint resolution on the budget or any 

6 amendment thereto or conference report thereon that con7 tains any matter referred to in paragraph (2). 

8 ‘‘(2) Any joint resolution on the budget or any 

9 amendment thereto or conference report thereon that con10 tains any matter not permitted in section 301(a) or (b) 

11 shall not be treated in the House of Representatives or 

12 the Senate as a budget resolution under subsection (a) or 

13 (b) or as a conference report on a budget resolution under 

14 subsection (c) of this section.’’. 

15 SEC. 104. BUDGET REQUIRED BEFORE SPENDING BILLS 

16 MAY BE CONSIDERED. 

17 (a) AMENDMENTS TO SECTION 302.—Section 302 of 

18 the Congressional Budget Act of 1974 is amended— 

19 (1) in subsection (a), by striking paragraph (5); 

20 and 

21 (2) in subsection (f)(1)(A), by striking ‘‘as re22 ported’’. 

23 (b) AMENDMENTS TO SECTION 303 AND CON24 FORMING AMENDMENTS.—(1) Section 303 of the Con25 gressional Budget Act of 1974 is amended by striking ‘‘(a) 

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1 IN GENERAL.—’’, by striking ‘‘has been agreed to’’ and 

2 inserting ‘‘takes effect in subsection (a)’’, and by striking 

3 subsections (b) and (c); and 

4 (2) by striking its section heading and inserting the 

5 following new section heading: ‘‘CONSIDERATION OF

6 BUDGET-RELATED LEGISLATION BEFORE BUDGET BE7 COMES LAW’’. 

8 (c) EXPEDITED PROCEDURES UPON VETO OF JOINT

9 RESOLUTION ON THE BUDGET.—(1) Title III of the Con10 gressional Budget Act of 1974 is amended by adding after 

11 section 315 the following new section: 

12 ‘‘EXPEDITED PROCEDURES UPON VETO OF JOINT

13 RESOLUTION ON THE BUDGET

14 ‘‘SEC. 316. (a) SPECIAL RULE.—If the President ve15 toes a joint resolution on the budget for a fiscal year, the 

16 majority leader of the House of Representatives or Senate 

17 (or his designee) shall introduce a concurrent resolution 

18 on the budget or joint resolution on the budget for such 

19 fiscal year. If the Committee on the Budget of either 

20 House fails to report such concurrent or joint resolution 

21 referred to it within five calendar days (excluding Satur22 days, Sundays, or legal holidays except when that House 

23 of Congress is in session) after the date of such referral, 

24 the committee shall be automatically discharged from fur25 ther consideration of such resolution and such resolution 

26 shall be placed on the appropriate calendar. 

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1 ‘‘(b) PROCEDURE IN THE HOUSE OF REPRESENTA2 TIVES AND THE SENATE.— 

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

4 provisions of section 305 for the consideration in the 

5 House of Representatives and in the Senate of joint 

6 resolutions on the budget and conference reports 

7 thereon shall also apply to the consideration of con8 current resolutions on the budget introduced under 

9 subsection (a) and conference reports thereon. 

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

11 resolution on the budget or joint resolution on the 

12 budget introduced under subsection (a), and all 

13 amendments thereto and debatable motions and ap14 peals in connection therewith, shall be limited to not 

15 more than 10 hours and in the House of Represent16 atives such debate shall be limited to not more than 

17 3 hours. 

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

19 Any concurrent resolution on the budget introduced under 

20 subsection (a) shall be in compliance with section 301. 

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

22 BUDGET.—Notwithstanding any other provision of this 

23 title, whenever a concurrent resolution on the budget de24 scribed in subsection (a) is agreed to, then the aggregates, 

25 allocations, and reconciliation directives (if any) contained 

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1 in the report accompanying such concurrent resolution or 

2 in such concurrent resolution shall be considered to be the 

3 aggregates, allocations, and reconciliation directives for all 

4 purposes of sections 302, 303, and 311 for the applicable 

5 fiscal years and such concurrent resolution shall be 

6 deemed to be a joint resolution for all purposes of this 

7 title and the Rules of the House of Representatives and 

8 any reference to the date of enactment of a joint resolution 

9 on the budget shall be deemed to be a reference to the 

10 date agreed to when applied to such concurrent resolu11 tion.’’. 

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

13 the Congressional Budget and Impoundment Control Act 

14 of 1974 is amended by inserting after the item relating 

15 to section 315 the following new item: 

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

16 SEC. 105. AMENDMENTS TO JOINT RESOLUTIONS ON THE 

17 BUDGET. 

18 (a) DEFINITION.—Paragraph (4) of section 3 of the 

19 Congressional Budget Act of 1974 is amended to read as 

20 follows: 

21 ‘‘(4) the term ‘joint resolution on the budget’ 

22 means— 

23 ‘‘(A) a joint resolution setting forth the 

24 budget for the United States Government for a 

25 fiscal year as provided in section 301; and 

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1 ‘‘(B) any other joint resolution revising the 

2 budget for the United States Government for a 

3 fiscal year as described in section 304.’’. 

4 (b) ADDITIONAL AMENDMENTS TO THE CONGRES5 SIONAL BUDGET AND IMPOUNDMENT CONTROL ACT OF

6 1974.—(1)(A) Sections 301, 302, 303, 305, 308, 310, 

7 311, 312, 314, 405, and 904 of the Congressional Budget 

8 Act of 1974 (2 U.S.C. 621 et seq.) are amended by strik9 ing ‘‘concurrent’’ each place it appears and inserting 

10 ‘‘joint’’. 

11 (B) Section 301 of the Congresional Budget Act of 

12 1974 is further amended by striking the last sentence. 

13 (C)(i) Sections 302(d), 302(g), 308(a)(1)(A), and 

14 310(d)(1) of the Congressional Budget Act of 1974 are 

15 amended by striking ‘‘most recently agreed to concurrent 

16 resolution on the budget’’ each place it occurs and insert17 ing ‘‘most recently enacted joint resolution on the budget 

18 or agreed to concurrent resolution on the budget (as appli19 cable)’’. 

20 (ii) The section heading of section 301 is amended 

21 by striking ‘‘ANNUAL ADOPTION OF CONCURRENT RESO22 LUTION’’ and inserting ‘‘JOINT RESOLUTIONS’’; and 

23 (iii) Section 304 of such Act is amended to read as 

24 follows: 

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1 ‘‘PERMISSIBLE REVISIONS OF BUDGET RESOLUTIONS

2 ‘‘SEC. 304. At any time after the joint resolution on 

3 the budget for a fiscal year has been enacted pursuant 

4 to section 301, and before the end of such fiscal year, the 

5 two Houses and the President may enact a joint resolution 

6 on the budget which revises or reaffirms the joint resolu7 tion on the budget for such fiscal year most recently en8 acted, and for purposes of the enforcement of the Congres9 sional Budget Act of 1974, the chairman of the Budget 

10 Committee of the House of Representatives or the Senate, 

11 as applicable, may adjust levels as needed for the enforce12 ment off of the budget resolution.’’. 

13 (D) Sections 302, 303, 310, and 311, of such Act 

14 are amended by striking ‘‘agreed to’’ each place it appears 

15 and by inserting ‘‘enacted’’. 

16 (2)(A) Paragraph (4) of section 3 of the Congres17 sional Budget and Impoundment Control Act of 1974 is 

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

19 and by inserting ‘‘joint’’. 

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

21 of such Act is amended— 

22 (i) in the item relating to section 301, by strik23 ing ‘‘Annual adoption of concurrent resolution’’ and 

24 inserting ‘‘Joint resolutions’’; 

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

2 and inserting the following: 

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

law.’’. 

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

4 ‘‘joint’’ in the item relating to section 305. 

5 (c) CONFORMING AMENDMENTS TO THE RULES OF

6 THE HOUSE OF REPRESENTATIVES.—Clauses 1(d)(1), 

7 4(a)(4), 4(b)(2), 4(f)(1)(A), and 4(f)(2) of rule X, clause 

8 10 of rule XVIII, clause 10 of rule XX, and clauses 7 

9 and 10 of rule XXI of the Rules of the House of Rep10 resentatives are amended by striking ‘‘concurrent’’ each 

11 place it appears and inserting ‘‘joint’’. 

12 (d) CONFORMING AMENDMENTS TO THE BALANCED

13 BUDGET AND EMERGENCY DEFICIT CONTROL ACT OF

14 1985.—Section 258C(b)(1) of the Balanced Budget and 

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

16 907d(b)(1)) is amended by striking ‘‘concurrent’’ and in17 serting ‘‘joint’’. 

18 (e) CONFORMING AMENDMENTS TO SECTION 310 

19 REGARDING RECONCILIATION DIRECTIVES.—(1) The side 

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

21 of 1974 (as amended by section 105(b)) is further amend22 ed by inserting ‘‘JOINT EXPLANATORY STATEMENT AC23 COMPANYING CONFERENCE REPORT ON’’ before ‘‘JOINT’’. 

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

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

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

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

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

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

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

11 (f) CONFORMING AMENDMENTS TO SECTION 3 RE12 GARDING DIRECT SPENDING.—Section 3 of the Congres13 sional Budget and Impoundment Control Act of 1974 is 

14 amended by adding at the end the following new para15 graph: 

16 ‘‘(11) The term ‘direct spending’ has the mean17 ing given to such term in section 250(c)(8) of the 

18 Balanced Budget and Emergency Deficit Control 

19 Act of 1985.’’. 

20 Subtitle B—Budgeting for 

21 Emergencies 

22 SEC. 111. REPEAL OF ADJUSTMENTS FOR EMERGENCIES. 

23 (a) ELIMINATION OF EMERGENCY DESIGNATION.— 

24 Sections 251(b)(2)(A), 252(e), and 252(d)(4)(B) of the 

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1 Balanced Budget and Emergency Deficit Control Act of 

2 1985 are repealed. 

3 (b) ELIMINATION OF EMERGENCY ADJUSTMENTS.— 

4 Section 314(b) of the Congressional Budget Act of 1974 

5 is amended by striking paragraph (1) and by redesig6 nating paragraphs (2) through (5) as paragraphs (1) 

7 through (4), respectively. 

8 (c) CONFORMING AMENDMENT.—Clause 2 of rule 

9 XXI of the Rules of the House of Representatives is 

10 amended by repealing paragraph (e) and by redesignating 

11 paragraph (f) as paragraph (e). 

12 SEC. 112. EMERGENCY CRITERIA. 

13 (a) DEFINITION OF EMERGENCY.—Section 3 of the 

14 Congressional Budget and Impoundment Control Act of 

15 1974 (as amended by section 105(f)) is further amended 

16 by adding at the end the following new paragraph: 

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

19 ‘‘(i) requires new budget authority and 

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

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

23 property, or a threat to national security; and 

24 ‘‘(ii) is unanticipated. 

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

2 ‘unanticipated’ means that the situation is— 

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

4 into being or not building up over time; 

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

6 compelling need requiring immediate action; 

7 ‘‘(iii) unforeseen, which means not pre8 dicted or anticipated as an emerging need; and 

9 ‘‘(iv) temporary, which means not of a per10 manent duration.’’. 

11 (b) CONFORMING AMENDMENT.—The term ‘‘emer12 gency’’ has the meaning given to such term in section 3 

13 of the Congressional Budget and Impoundment Control 

14 Act of 1974. 

15 SEC. 113. DEVELOPMENT OF GUIDELINES FOR APPLICA16 TION OF EMERGENCY DEFINITION. 

17 Not later than 5 months after the date of enactment 

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

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

20 with the chairmen of the Committees on Appropriations 

21 and applicable authorizing committees of their respective 

22 Houses and the Directors of the Congressional Budget Of23 fice and the Office of Management and Budget, jointly 

24 publish in the Congressional Record guidelines for applica25 tion of the definition of emergency set forth in section 

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1 3(12) of the Congressional Budget and Impoundment 

2 Control Act of 1974. 

3 SEC. 114. RESERVE FUND FOR EMERGENCIES IN PRESI4 DENT’S BUDGET. 

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

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

7 ‘‘Such budget submission shall also comply with the re8 quirements of subsections (b) and (c) of section 317 of 

9 the Congressional Budget Act of 1974 and, in the case 

10 of any budget authority requested for an emergency, such 

11 submission shall include a detailed justification of why 

12 such emergency is an emergency within the meaning of 

13 section 3(12) of the Congressional Budget Act of 1974.’’. 

14 SEC. 115. ADJUSTMENTS AND RESERVE FUND FOR EMER15 GENCIES IN JOINT BUDGET RESOLUTIONS. 

16 (a) EMERGENCIES.—Title III of the Congressional 

17 Budget Act of 1974 (as amended by section 104(c)) is 

18 further amended by adding at the end the following new 

19 section: 

20 ‘‘EMERGENCIES

21 ‘‘SEC. 317. (a) ADJUSTMENTS.— 

22 ‘‘(1) ADJUSTMENT AUTHORITY.—Except as 

23 provided by subsection (b)(4), if a bill or joint reso24 lution is reported, or an amendment is offered there25 to (or considered as adopted) or a conference report 

26 is filed thereon, that provides new budget authority 

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1 (and outlays flowing therefrom), and such provision 

2 is designated as an emergency pursuant to this sec3 tion, the chairman of the Committee on the Budget 

4 of the House of Representatives or the Senate, as 

5 applicable, shall make adjustments to the allocations 

6 and aggregates set forth in the most recently agreed 

7 to joint resolution on the budget, for the purpose of 

8 enforcing the points of order set forth in title III of 

9 the Congressional Budget Act of 1974, up to the 

10 amount of such provisions if such chairman deter11 mines and certifies, pursuant to the guidelines re12 ferred to in section 113 of the Spending, Deficit, 

13 and Debt Control Act of 2009, the portion (if any) 

14 of the amount so specified that is for an emergency 

15 within the meaning of section 3(12). 

16 ‘‘(2) LIMITATION ON ADJUSTMENT AUTHOR17 ITY.—The adjustments referred to in paragraph (1) 

18 made to the allocations made pursuant to section 

19 302(a) shall not exceed the amount reserved for 

20 emergencies pursuant to the requirements of sub21 sections (b) and (c). 

22 ‘‘(3) EMERGENCY AMOUNTS EXCEEDING AD23 JUSTMENT AUTHORITY.—Before any adjustment is 

24 made pursuant to this section for any bill, joint reso25 lution, concurrent resolution, or conference report 

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1 that designates a provision an emergency, the enact2 ment of which causes the total amount of the reserve 

3 fund to be exceeded: 

4 ‘‘(A) The chairman of the Committee on 

5 the Budget of the House of Representatives or 

6 the Senate shall convene a meeting of that com7 mittee, where it shall be in order, subject to the 

8 terms set forth in this section, for one motion 

9 described in subparagraph (B) to be made to 

10 authorize the chairman to make adjustments 

11 above the maximum amount of adjustments set 

12 forth in subsection (a). 

13 ‘‘(B) The motion referred to in subpara14 graph (A) shall be in the following form: ‘I 

15 move that the chairman of the Committee on 

16 the Budget be authorized to adjust the alloca17 tions and aggregates set forth in the joint reso18 lution on the budget for fiscal year llll 

19 by the following amount: $llll for fiscal 

20 year llll.’, with the second blank being 

21 filled in with amount determined by the chair22 man of the Committee on the Budget and the 

23 first and third blank being filled in by the ap24 plicable fiscal year. 

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1 ‘‘(C) The motion set forth in subparagraph 

2 (B) shall be open for debate and amendment, 

3 but any amendment offered thereto is only in 

4 order if limited to changing an amount in the 

5 motion. 

6 ‘‘(D) The chairman of the applicable Com7 mittee on the Budget may make any adjust8 ments he deems necessary under this section if 

9 he determines the enactment of any provision 

10 designated as an emergency is essential to re11 spond to an urgent and imminent need, the 

12 chairman determines that exceptional cir13 cumstances exist and the committee cannot con14 vene to consider the motion referred to in this 

15 section in a timely fashion. 

16 ‘‘(4) The adjustments made pursuant to sub17 section (a)(1) or (2) shall— 

18 ‘‘(A) apply while that bill, joint resolution, 

19 conference report, or amendment is under con20 sideration; and 

21 ‘‘(B) take effect upon the enactment of 

22 that legislation. 

23 ‘‘(5) Such bill or joint resolution shall be re24 ferred to the Committee on the Budget of the House 

25 of Representatives or the Senate with instructions to 

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1 report it without amendment, other than that speci2 fied in paragraph (2), within 5 legislative days of the 

3 day in which it is reported from the originating com4 mittee. If the Committee on the Budget of either 

5 House fails to report a bill or joint resolution re6 ferred to it under this paragraph within such 5-day 

7 period, the committee shall be automatically dis8 charged from further consideration of such bill or 

9 joint resolution and such bill or joint resolution shall 

10 be placed on the appropriate calendar. 

11 ‘‘(6) An amendment to such a bill or joint reso12 lution referred to in this subsection shall only consist 

13 of an exemption from section 251 of the Balanced 

14 Budget and Emergency Deficit Control Act of 1985 

15 of all or any part of the provisions that provide 

16 budget authority (and the outlays flowing therefrom) 

17 for such emergency if the committee determines, 

18 pursuant to the guidelines referred to in section 113 

19 of the Spending, Deficit, and Debt Control Act of 

20 2009, that such budget authority is for an emer21 gency within the meaning of section 3(12). 

22 ‘‘(b) RESERVE FUND.—The amount set forth in the 

23 reserve fund for emergencies for budget authority and out24 lays for a fiscal year pursuant to section 301(a)(4) shall 

25 equal: 

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1 ‘‘(1) The average of the enacted levels of budg2 et authority for emergencies (other than those cov3 ered by subsection (c)) in the 10 fiscal years pre4 ceding the current year; omitting in such average 

5 the fiscal years with the highest and lowest levels of 

6 budget authority. 

7 ‘‘(2) The average of the levels of outlays for 

8 emergencies in the 10 fiscal years preceding the cur9 rent year flowing from the budget authority referred 

10 to in paragraph (1), but only in the fiscal year for 

11 which such budget authority first becomes available 

12 for obligation. 

13 ‘‘(3) The adjustments made pursuant to sub14 section (a)(1) or (2) shall— 

15 ‘‘(A) apply while that bill, joint resolution, 

16 conference report, or amendment is under con17 sideration; and 

18 ‘‘(B) take effect upon the enactment of 

19 that legislation. 

20 ‘‘(4) Such bill or joint resolution shall be re21 ferred to the Committee on the Budget of the House 

22 of Representatives or the Senate with instructions to 

23 report it without amendment, other than that speci24 fied in paragraph (2), within 5 legislative days of the 

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1 mittee. If the Committee on the Budget of either 

2 House fails to report a bill or joint resolution re3 ferred to it under this paragraph within such 5-day 

4 period, the committee shall be automatically dis5 charged from further consideration of such bill or 

6 joint resolution and such bill or joint resolution shall 

7 be placed on the appropriate calendar. 

8 ‘‘(5) An amendment to such a bill or joint reso9 lution referred to in this subsection shall only consist 

10 of an exemption from section 251 of the Balanced 

11 Budget and Emergency Deficit Control Act of 1985 

12 of all or any part of the provisions that provide 

13 budget authority (and the outlays flowing therefrom) 

14 for such emergency if the committee determines, 

15 pursuant to the guidelines referred to in section 113 

16 of the Spending, Deficit, and Debt Control Act of 

17 2009, that such budget authority is for an emer18 gency within the meaning of section 3(12). 

19 ‘‘(c) TREATMENT OF EMERGENCIES TO FUND CER20 TAIN MILITARY OPERATIONS.—Whenever the Committee 

21 on Appropriations reports any bill or joint resolution that 

22 provides budget authority for any emergency that is a 

23 threat to national security and the funding of which car24 ries out a military operation authorized by a declaration 

25 of war or a joint resolution authorizing the use of military 

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1 force (or economic assistance funding in furtherance of 

2 such operation) and the report accompanying that bill or 

3 joint resolution identifies any provision that increases out4 lays or provides budget authority (and the outlays flowing 

5 therefrom) for such emergency, the enactment of which 

6 causes the total amount of budget authority or outlays 

7 provided for emergencies for the budget year in the joint 

8 resolution on the budget (pursuant to section 301(a)(4)) 

9 to be exceeded: 

10 ‘‘(1) Such bill or joint resolution shall be re11 ferred to the Committee on the Budget of the House 

12 of Representatives or the Senate, as the case may 

13 be, with instructions to report it without amend14 ment, other than that specified in paragraph (2), 

15 within 5 legislative days of the day in which it is re16 ported from the originating committee. If the Com17 mittee on the Budget of either House fails to report 

18 a bill or joint resolution referred to it under this 

19 paragraph within such 5-day period, the committee 

20 shall be automatically discharged from further con21 sideration of such bill or joint resolution and such 

22 bill or joint resolution shall be placed on the appro23 priate calendar. 

24 ‘‘(2) An amendment to such a bill or joint reso25 lution referred to in this subsection shall only consist 

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1 of an exemption from section 251 of the Balanced 

2 Budget and Emergency Deficit Control Act of 1985 

3 of all or any part of the provisions that provide 

4 budget authority (and the outlays flowing therefrom) 

5 for such emergency if the committee determines, 

6 pursuant to the guidelines referred to in section 113 

7 of the Spending, Deficit, and Debt Control Act of 

8 2009, that such budget authority is for an emer9 gency within the meaning of section 3(12). 

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

11 with an amendment specified in paragraph (2) by 

12 the Committee on the Budget of the House of Rep13 resentatives or the Senate, then the budget authority 

14 and resulting outlays that are the subject of such 

15 amendment shall not be included in any determina16 tions under section 302(f) or 311(a) for any bill, 

17 joint resolution, amendment, motion, or conference 

18 report.’’. 

19 (b) CONFORMING AMENDMENT.—The table of con20 tents set forth in section 1(b) of the Congressional Budget 

21 and Impoundment Control Act of 1974 is amended by in22 serting after the item relating to section 316 the following 

23 new item: 

‘‘Sec. 317. Emergencies.’’. 

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1 SEC. 116. APPLICATION OF SECTION 306 TO EMERGENCIES 

2 IN EXCESS OF AMOUNTS IN RESERVE FUND. 

3 Section 306 of the Congressional Budget Act of 1974 

4 is amended by inserting at the end the following new sen5 tence: ‘‘No amendment reported by the Committee on the 

6 Budget (or from the consideration of which such com7 mittee has been discharged) pursuant to section 317 may 

8 be amended.’’. 

9 SEC. 117. UP-TO-DATE TABULATIONS. 

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

11 of 1974 is amended by striking ‘‘and’’ at the end of sub12 paragraph (B), by striking the period at the end of sub13 paragraph (C) and inserting ‘‘; and’’, and by adding at 

14 the end the following new subparagraph: 

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

16 of amounts remaining in the reserve fund for 

17 emergencies.’’. 

18 SEC. 118. PROHIBITION ON AMENDMENTS TO THE EMER19 GENCY RESERVE FUND. 

20 (a) POINT OF ORDER.—Section 305 of the Congres21 sional Budget Act of 1974 (as amended by section 103(f)) 

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

23 subsection: 

24 ‘‘(f) POINT OF ORDER REGARDING EMERGENCY RE25 SERVE FUND.—It shall not be in order in the House of 

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1 ment to a joint resolution on the budget which changes 

2 the amount of budget authority and outlays set forth in 

3 section 301(a)(4) for the emergency reserve fund.’’. 

4 (b) TECHNICAL AMENDMENT.—(1) Section 

5 904(C)(1) of the Congressional Budget Act of 1974 is 

6 amended by inserting ‘‘305(e), 305(f),’’ after 

7 ‘‘305(c)(4),’’. 

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

9 Act of 1974 is amended by inserting ‘‘305(e), 305(f),’’ 

10 after ‘‘305(c)(4),’’. 

11 Subtitle C—Biennial Budget 

12 SEC. 121. EFFECTIVE DATE. 

13 The provisions of this subtitle shall take effect on 

14 January 1 of the calendar year after the year of the enact15 ment of this Act. 

16 SEC. 122. REVISION OF TIMETABLE. 

17 Section 300 of the Congressional Budget Act of 1974 

18 (2 U.S.C. 631) is amended to read as follows: 

19 ‘‘TIMETABLE

20 ‘‘SEC. 300. (a) IN GENERAL.—Except as provided by 

21 subsection (b), the timetable with respect to the congres22 sional budget process for any Congress (beginning with 

23 the One Hundred Twelfth Congress or a subsequent Con24 gress, as applicable) is as follows: 

‘‘First Session 

On or before: Action to be completed: 

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‘‘First Session—Continued 

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

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

to Budget Committees. 

Not later than 6 weeks after 

budget submission.

Committees submit views and estimates to 

Budget Committees. 

April 1 ....................................... Budget Committees report joint resolution on 

the biennial budget. 

May 15 ....................................... Congress completes action on joint resolution 

on the biennial budget. 

May 15 ....................................... Biennial appropriation bills may be considered in the House of Representatives. 

June 10 ...................................... House Appropriations Committee reports last 

biennial appropriation bill. 

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

October 1 ................................... Biennium begins. 

‘‘Second Session 

On or before: Action to be completed: 

February 15 ............................... President submits budget review. 

Not later than 6 weeks after 

President submits budget review.

Congressional Budget Office submits report 

to Budget Committees. 

The last day of the session ........ Congress completes action on bills and resolutions authorizing new budget authority 

for the succeeding biennium. 

1 ‘‘(b) SPECIAL RULE.—In the case of any first session 

2 of Congress that begins in any year during which the term 

3 of a President (except a President who succeeds himself) 

4 begins, the following dates shall supersede those set forth 

5 in subsection (a): 

‘‘First Session 

On or before: Action to be completed: 

First Monday in April ............... President submits budget recommendations. 

April 20 ..................................... Committees submit views and estimates to 

Budget Committees. 

May 15 ....................................... Budget Committees report joint resolution on 

the biennial budget. 

June 1 ........................................ Congress completes action on joint resolution 

on the biennial budget. 

June 1 ........................................ Biennial appropriation bills may be considered in the House of Representatives. 

July 1 ......................................... House Appropriations Committee reports last 

biennial appropriation bill. 

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‘‘First Session—Continued 

July 20 ....................................... House completes action on biennial appropriation bills. 

October 1 ................................... Biennium begins.’’. 

1 SEC. 123. AMENDMENTS TO THE CONGRESSIONAL BUDGET 

2 AND IMPOUNDMENT CONTROL ACT OF 1974. 

3 (a) DECLARATION OF PURPOSE.—Section 2(2) of the 

4 Congressional Budget and Impoundment Control Act of 

5 1974 (2 U.S.C. 621(2)) is amended by striking ‘‘each 

6 year’’ and inserting ‘‘biennially’’. 

7 (b) DEFINITIONS.— 

8 (1) BUDGET RESOLUTION.—Section 3(4) of 

9 such Act (2 U.S.C. 622(4)) is amended by striking 

10 ‘‘fiscal year’’ each place it appears and inserting ‘‘bi11 ennium’’. 

12 (2) BIENNIUM.—Section 3 of such Act (2 

13 U.S.C. 622) (as amended by section 113(a)) is fur14 ther amended by adding at the end the following 

15 new paragraph: 

16 ‘‘(13) The term ‘biennium’ means the period of 

17 2 consecutive fiscal years beginning on October 1 of 

18 any odd-numbered year.’’. 

19 (c) BIENNIAL JOINT RESOLUTION ON THE BUDG20 ET.— 

21 (1) CONTENTS OF RESOLUTION.—Section 

22 301(a) of such Act (2 U.S.C. 632(a)) is amended— 

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1 (A) in the matter preceding paragraph (1) 

2 by— 

3 (i) striking ‘‘April 15 of each year’’ 

4 and inserting ‘‘May 15 of each odd-num5 bered year’’; 

6 (ii) striking ‘‘the fiscal year beginning 

7 on October 1 of such year’’ the first place 

8 it appears and inserting ‘‘the biennium be9 ginning on October 1 of such year’’; 

10 (iii) striking ‘‘the fiscal year beginning 

11 on October 1 of such year’’ the second 

12 place it appears and inserting ‘‘each fiscal 

13 year in such period’’; and 

14 (iv) striking ‘‘each of the four ensuing 

15 fiscal years’’ and inserting ‘‘each fiscal 

16 year in the next 2 bienniums’’; 

17 (B) in paragraph (6), by striking ‘‘for the 

18 fiscal year’’ and inserting ‘‘for each fiscal year 

19 in the biennium’’; and 

20 (C) in paragraph (7), by striking ‘‘for the 

21 fiscal year’’ and inserting ‘‘for each fiscal year 

22 in the biennium’’. 

23 (2) ADDITIONAL MATTERS.—Section 301(b) of 

24 such Act (2 U.S.C. 632(b)) is amended— 

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1 (A) in paragraph (3), by striking ‘‘for such 

2 fiscal year’’ and inserting ‘‘for either fiscal year 

3 in such biennium’’; and 

4 (B) in paragraph (7), by striking ‘‘for the 

5 first fiscal year’’ and inserting ‘‘for each fiscal 

6 year in the biennium’’. 

7 (3) VIEWS OF OTHER COMMITTEES.—Section 

8 301(d) of such Act (2 U.S.C. 632(d)) is amended by 

9 inserting ‘‘(or, if applicable, as provided by section 

10 300(b))’’ after ‘‘United States Code’’. 

11 (4) HEARINGS.—Section 301(e)(1) of such Act 

12 (2 U.S.C. 632(e)) is amended by— 

13 (A) striking ‘‘fiscal year’’ and inserting 

14 ‘‘biennium’’; and 

15 (B) inserting after the second sentence the 

16 following: ‘‘On or before April 1 of each odd17 numbered year (or, if applicable, as provided by 

18 section 300(b)), the Committee on the Budget 

19 of each House shall report to its House the 

20 joint resolution on the budget referred to in 

21 subsection (a) for the biennium beginning on 

22 October 1 of that year.’’. 

23 (5) GOALS FOR REDUCING UNEMPLOYMENT.— 

24 Section 301(f) of such Act (2 U.S.C. 632(f)) is 

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1 amended by striking ‘‘fiscal year’’ each place it ap2 pears and inserting ‘‘biennium’’. 

3 (6) ECONOMIC ASSUMPTIONS.—Section 

4 301(g)(1) of such Act (2 U.S.C. 632(g)(1)) is 

5 amended by striking ‘‘for a fiscal year’’ and insert6 ing ‘‘for a biennium’’. 

7 (7) SECTION HEADING.—The section heading of 

8 section 301 of such Act is amended by striking ‘‘AN9 NUAL’’ and inserting ‘‘BIENNIAL’’. 

10 (8) TABLE OF CONTENTS.—The item relating 

11 to section 301 in the table of contents set forth in 

12 section 1(b) of such Act is amended by striking ‘‘An13 nual’’ and inserting ‘‘Biennial’’. 

14 (d) COMMITTEE ALLOCATIONS.—Section 302 of such 

15 Act (2 U.S.C. 633) is amended— 

16 (1) in subsection (a)(1) by— 

17 (A) striking ‘‘for the first fiscal year of the 

18 resolution,’’ and inserting ‘‘for each fiscal year 

19 in the biennium,’’; 

20 (B) striking ‘‘for that period of fiscal 

21 years’’ and inserting ‘‘for all fiscal years cov22 ered by the resolution’’; and 

23 (C) striking ‘‘for the fiscal year of that 

24 resolution’’ and inserting ‘‘for each fiscal year 

25 in the biennium’’; 

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1 (2) in subsection (f)(1), by striking ‘‘for a fiscal 

2 year’’ and inserting ‘‘for a biennium’’; 

3 (3) in subsection (f)(1), by striking ‘‘first fiscal 

4 year’’ and inserting ‘‘either fiscal year of the bien5 nium’’; 

6 (4) in subsection (f)(2)(A), by— 

7 (A) striking ‘‘first fiscal year’’ and insert8 ing ‘‘each fiscal year of the biennium’’; and 

9 (B) striking ‘‘the total of fiscal years’’ and 

10 inserting ‘‘the total of all fiscal years covered by 

11 the resolution’’; and 

12 (5) in subsection (g)(1)(A), by striking ‘‘April’’ 

13 and inserting ‘‘May’’. 

14 (e) SECTION 303 POINT OF ORDER.—Section 303 of 

15 such Act (2 U.S.C. 634(a)) is amended by striking ‘‘for 

16 a fiscal year’’ and inserting ‘‘for a biennium’’ and by strik17 ing ‘‘the first fiscal year’’ and inserting ‘‘each fiscal year 

18 of the biennium’’. 

19 (f) PERMISSIBLE REVISIONS OF JOINT RESOLUTIONS

20 ON THE BUDGET.—Section 304 of such Act (2 U.S.C. 

21 635) is amended— 

22 (1) by striking ‘‘fiscal year’’ the first two places 

23 it appears and inserting ‘‘biennium’’; 

24 (2) by striking ‘‘for such fiscal year’’; and 

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1 (3) by inserting before the period ‘‘for such bi2 ennium’’. 

3 (g) PROCEDURES FOR CONSIDERATION OF BUDGET

4 RESOLUTIONS.—Section 305(a)(3) of such Act (2 U.S.C. 

5 636(b)(3)) is amended by striking ‘‘fiscal year’’ and in6 serting ‘‘biennium’’. 

7 (h) COMPLETION OF HOUSE COMMITTEE ACTION ON

8 APPROPRIATION BILLS.—Section 307 of such Act (2 

9 U.S.C. 638) is amended— 

10 (1) by striking ‘‘each year’’ and inserting ‘‘each 

11 odd-numbered year (or, if applicable, as provided by 

12 section 300(b), July 1)’’; 

13 (2) by striking ‘‘annual’’ and inserting ‘‘bien14 nial’’; 

15 (3) by striking ‘‘fiscal year’’ and inserting ‘‘bi16 ennium’’; and 

17 (4) by striking ‘‘that year’’ and inserting ‘‘each 

18 odd-numbered year’’. 

19 (i) COMPLETION OF HOUSE ACTION ON REGULAR

20 APPROPRIATION BILLS.—Section 309 of such Act (2 

21 U.S.C. 640) is amended— 

22 (1) by striking ‘‘It’’ and inserting ‘‘Except 

23 whenever section 300(b) is applicable, it’’; 

24 (2) by inserting ‘‘of any odd-numbered calendar 

25 year’’ after ‘‘July’’; 

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1 (3) by striking ‘‘annual’’ and inserting ‘‘bien2 nial’’; and 

3 (4) by striking ‘‘fiscal year’’ and inserting ‘‘bi4 ennium’’. 

5 (j) RECONCILIATION PROCESS.—Section 310 of such 

6 Act (2 U.S.C. 641) is amended— 

7 (1) in subsection (a), in the matter preceding 

8 paragraph (1), by striking ‘‘any fiscal year’’ and in9 serting ‘‘any biennium’’; 

10 (2) in subsection (a)(1), by striking ‘‘such fiscal 

11 year’’ each place it appears and inserting ‘‘any fiscal 

12 year covered by such resolution’’; and 

13 (3) by striking subsection (f) and redesignating 

14 subsection (g) as subsection (f). 

15 (k) SECTION 311 POINT OF ORDER.— 

16 (1) IN THE HOUSE OF REPRESENTATIVES.— 

17 Section 311(a)(1) of such Act (2 U.S.C. 642(a)) is 

18 amended— 

19 (A) by striking ‘‘for a fiscal year’’ and in20 serting ‘‘for a biennium’’; 

21 (B) by striking ‘‘the first fiscal year’’ each 

22 place it appears and inserting ‘‘either fiscal 

23 year of the biennium’’; and 

24 (C) by striking ‘‘that first fiscal year’’ and 

25 inserting ‘‘each fiscal year in the biennium’’. 

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1 (2) IN THE SENATE.—Section 311(a)(2) of 

2 such Act is amended— 

3 (A) in subparagraph (A), by striking ‘‘for 

4 the first fiscal year’’ and inserting ‘‘for either 

5 fiscal year of the biennium’’; and 

6 (B) in subparagraph (B)— 

7 (i) by striking ‘‘that first fiscal year’’ 

8 the first place it appears and inserting 

9 ‘‘each fiscal year in the biennium’’; and 

10 (ii) by striking ‘‘that first fiscal year 

11 and the ensuing fiscal years’’ and inserting 

12 ‘‘all fiscal years’’. 

13 (3) SOCIAL SECURITY LEVELS.—Section 

14 311(a)(3) of such Act is amended by— 

15 (A) striking ‘‘for the first fiscal year’’ and 

16 inserting ‘‘each fiscal year in the biennium’’; 

17 and 

18 (B) striking ‘‘that fiscal year and the ensu19 ing fiscal years’’ and inserting ‘‘all fiscal 

20 years’’. 

21 (l) MAXIMUM DEFICIT AMOUNT POINT OF ORDER.— 

22 Section 312(c) of the Congressional Budget Act of 1974 

23 (2 U.S.C. 643) is amended— 

24 (1) by striking ‘‘for a fiscal year’’ and inserting 

25 ‘‘for a biennium’’; 

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1 (2) in paragraph (1), by striking ‘‘first fiscal 

2 year’’ and inserting ‘‘either fiscal year in the bien3 nium’’; 

4 (3) in paragraph (2), by striking ‘‘that fiscal 

5 year’’ and inserting ‘‘either fiscal year in the bien6 nium’’; and 

7 (4) in the matter following paragraph (2), by 

8 striking ‘‘that fiscal year’’ and inserting ‘‘the appli9 cable fiscal year’’. 

10 SEC. 124. AMENDMENTS TO RULES OF THE HOUSE OF REP11 RESENTATIVES. 

12 (a) Clause 4(a)(1)(A) of rule X of the Rules of the 

13 House of Representatives is amended by inserting ‘‘odd14 numbered’’ after ‘‘each’’. 

15 (b) Clause 4(a)(4) of rule X of the Rules of the House 

16 of Representatives is amended by striking ‘‘fiscal year’’ 

17 and inserting ‘‘biennium’’. 

18 (c) Clause 4(b)(2) of rule X of the Rules of the House 

19 of Representatives is amended by striking ‘‘each fiscal 

20 year’’ and inserting ‘‘the biennium’’. 

21 (d) Clause 4(b) of rule X of the Rules of the House 

22 of Representatives is amended by striking ‘‘and’’ at the 

23 end of subparagraph (5), by striking the period and insert24 ing ‘‘; and’’ at the end of subparagraph (6), and by adding 

25 at the end the following new subparagraph: 

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1 ‘‘(7) use the second session of each Congress to 

2 study issues with long-term budgetary and economic 

3 implications, including holding hearings to receive 

4 testimony from committees of jurisdiction to identify 

5 problem areas and to report on the results of over6 sight; and by January 1 of each odd-number year, 

7 issuing a report to the Speaker which identifies the 

8 key issues facing the Congress in the next bien9 nium.’’. 

10 (e) Clause 4(e) of rule X of the Rules of the House 

11 of Representatives is amended by striking ‘‘annually’’ each 

12 place it appears and inserting ‘‘biennially’’ and by striking 

13 ‘‘annual’’ and inserting ‘‘biennial’’. 

14 (f) Clause 4(f) of rule X of the Rules of the House 

15 of Representatives is amended— 

16 (1) by inserting ‘‘during each odd-numbered 

17 year’’ after ‘‘submits his budget’’; 

18 (2) by striking ‘‘fiscal year’’ the first place it 

19 appears and inserting ‘‘biennium’’; and 

20 (3) by striking ‘‘that fiscal year’’ and inserting 

21 ‘‘each fiscal year in such ensuing biennium’’. 

22 (g) Clause 11(i) of rule X of the Rules of the House 

23 of Representatives is amended by striking ‘‘during the 

24 same or preceding fiscal year’’. 

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1 (h) Clause 3(d)(2)(A) of rule XIII of the Rules of 

2 the House of Representatives is amended by striking 

3 ‘‘five’’ both places it appears and inserting ‘‘six’’. 

4 (i) Clause 5(a)(1) of rule XIII of the Rules of the 

5 House of Representatives is amended by striking ‘‘fiscal 

6 year after September 15 in the preceding fiscal year’’ and 

7 inserting ‘‘biennium after September 15 of the calendar 

8 year in which such biennium begins’’. 

9 SEC. 125. TWO-YEAR APPROPRIATIONS; TITLE AND STYLE 

10 OF APPROPRIATION ACTS. 

11 Section 105 of title 1, United States Code, is amend12 ed to read as follows: 

13 ‘‘§ 105. Title and style of appropriations Acts 

14 ‘‘(a) The style and title of all Acts making appropria15 tions for the support of the Government shall be as fol16 lows: ‘An Act making appropriations (here insert the ob17 ject) for each fiscal year in the biennium of fiscal years 

18 (here insert the fiscal years of the biennium).’. 

19 ‘‘(b) All Acts making regular appropriations for the 

20 support of the Government shall be enacted for a biennium 

21 and shall specify the amount of appropriations provided 

22 for each fiscal year in such period. 

23 ‘‘(c) For purposes of this section, the term ‘biennium’ 

24 has the same meaning as in section 3(13) of the Congresmstockstill on DSKH9S0YB1PROD with BILLS

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1 sional Budget and Impoundment Control Act of 1974 (2 

2 U.S.C. 622(13)).’’. 

3 SEC. 126. MULTIYEAR AUTHORIZATIONS. 

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

5 Budget Act of 1974 (as amended by section 115(a)) is 

6 further amended by adding at the end the following new 

7 section: 

8 ‘‘MULTIYEAR AUTHORIZATIONS OF APPROPRIATIONS

9 ‘‘SEC. 318. (a) It shall not be in order in the House 

10 of Representatives or the Senate to consider any measure 

11 that contains a specific authorization of appropriations for 

12 any purpose unless the measure includes such a specific 

13 authorization of appropriations for that purpose for not 

14 less than each fiscal year in one or more bienniums. 

15 ‘‘(b)(1) For purposes of this section, a specific au16 thorization of appropriations is an authorization for the 

17 enactment of an amount of appropriations or amounts not 

18 to exceed an amount of appropriations (whether stated as 

19 a sum certain, as a limit, or as such sums as may be nec20 essary) for any purpose for a fiscal year. 

21 ‘‘(2) Subsection (a) does not apply with respect to 

22 an authorization of appropriations for a single fiscal year 

23 for any program, project, or activity if the measure con24 taining that authorization includes a provision expressly 

25 stating the following: ‘Congress finds that no authoriza26 tion of appropriation will be required for [Insert name of 

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1 applicable program, project, or activity] for any subse2 quent fiscal year.’. 

3 ‘‘(c) For purposes of this section, the term ‘measure’ 

4 means a bill, joint resolution, amendment, motion, or con5 ference report.’’. 

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

7 table of contents set forth in section 1(b) of the Congres8 sional Budget and Impoundment Control Act of 1974 is 

9 amended by adding after the item relating to section 317 

10 the following new item: 

‘‘Sec. 318. Multiyear authorizations of appropriations.’’. 

11 SEC. 127. GOVERNMENT STRATEGIC AND PERFORMANCE 

12 PLANS ON A BIENNIAL BASIS. 

13 (a) STRATEGIC PLANS.—Section 306 of title 5, 

14 United States Code, is amended— 

15 (1) in subsection (a), by striking ‘‘September 

16 30, 1997’’ and inserting ‘‘September 30, 2010’’; 

17 (2) in subsection (b)— 

18 (A) by striking ‘‘at least every three years’’ 

19 and all that follows thereafter and inserting ‘‘at 

20 least every 4 years, except that strategic plans 

21 submitted by September 30, 2010, shall be up22 dated and revised by September 30, 2012’’; and 

23 (B) by striking ‘‘five years forward’’ and 

24 inserting ‘‘six years forward’’; and 

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1 (3) in subsection (c), by inserting a comma 

2 after ‘‘section’’ the second place it appears and add3 ing ‘‘including a strategic plan submitted by Sep4 tember 30, 2010, meeting the requirements of sub5 section (a)’’. 

6 (b) BUDGET CONTENTS AND SUBMISSION TO CON7 GRESS.—Paragraph (28) of section 1105(a) of title 31, 

8 United States Code, is amended by striking ‘‘beginning 

9 with fiscal year 1999, a’’ and inserting ‘‘beginning with 

10 fiscal year 2012, a biennial’’. 

11 (c) PERFORMANCE PLANS.—Section 1115 of title 31, 

12 United States Code, is amended— 

13 (1) in subsection (a)— 

14 (A) in the matter before paragraph (1) by 

15 striking ‘‘an annual’’ and inserting ‘‘a bien16 nial’’; 

17 (B) in paragraph (1) by inserting after 

18 ‘‘program activity’’ the following: ‘‘for both 

19 years 1 and 2 of the biennial plan’’; 

20 (C) in paragraph (5) by striking ‘‘and’’ 

21 after the semicolon; 

22 (D) in paragraph (6) by striking the period 

23 and inserting a semicolon; and inserting ‘‘and’’ 

24 after the inserted semicolon; and 

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1 (E) by adding after paragraph (6) the fol2 lowing: 

3 ‘‘(7) cover each fiscal year of the biennium be4 ginning with the first fiscal year of the next biennial 

5 budget cycle.’’; 

6 (2) in subsection (d) by striking ‘‘annual’’ and 

7 inserting ‘‘biennial’’; and 

8 (3) in paragraph (6) of subsection (g) by strik9 ing ‘‘annual’’ and inserting ‘‘biennial’’. 

10 (d) MANAGERIAL ACCOUNTABILITY AND FLEXI11 BILITY.—Section 9703 of title 31, United States Code, re12 lating to managerial accountability, is amended— 

13 (1) in subsection (a)— 

14 (A) in the first sentence by striking ‘‘an15 nual’’; and 

16 (B) by striking ‘‘section 1105(a)(29)’’ and 

17 inserting ‘‘section 1105(a)(28)’’; 

18 (2) in subsection (e)— 

19 (A) in the first sentence by striking ‘‘one 

20 or’’ before ‘‘two years’’; 

21 (B) in the second sentence by striking ‘‘a 

22 subsequent year’’ and inserting ‘‘for a subse23 quent 2-year period’’; and 

24 (C) in the third sentence by striking 

25 ‘‘three’’ and inserting ‘‘four’’. 

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1 (e) STRATEGIC PLANS.—Section 2802 of title 39, 

2 United States Code, is amended— 

3 (1) in subsection (a), by striking ‘‘September 

4 30, 1997’’ and inserting ‘‘September 30, 2010’’; 

5 (2) in subsection (b), by striking ‘‘at least every 

6 three years’’ and inserting ‘‘at least every 4 years 

7 except that strategic plans submitted by September 

8 30, 2010, shall be updated and revised by September 

9 30, 2013’’; 

10 (3) in subsection (b), by striking ‘‘five years 

11 forward’’ and inserting ‘‘six years forward’’; and 

12 (4) in subsection (c), by inserting a comma 

13 after ‘‘section’’ the second place it appears and in14 serting ‘‘including a strategic plan submitted by 

15 September 30, 2010, meeting the requirements of 

16 subsection (a)’’. 

17 (f) PERFORMANCE PLANS.—Section 2803(a) of title 

18 39, United States Code, is amended— 

19 (1) in the matter before paragraph (1), by 

20 striking ‘‘an annual’’ and inserting ‘‘a biennial’’; 

21 (2) in paragraph (1), by inserting after ‘‘pro22 gram activity’’ the following: ‘‘for both years 1 and 

23 2 of the biennial plan’’; 

24 (3) in paragraph (5), by striking ‘‘and’’ after 

25 the semicolon; 

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1 (4) in paragraph (6), by striking the period and 

2 inserting ‘‘; and’’; and 

3 (5) by adding after paragraph (6) the following: 

4 ‘‘(7) cover each fiscal year of the biennium be5 ginning with the first fiscal year of the next biennial 

6 budget cycle.’’. 

7 (g) COMMITTEE VIEWS OF PLANS AND REPORTS.— 

8 Section 301(d) of the Congressional Budget Act (2 U.S.C. 

9 632(d)) is amended by adding at the end ‘‘Each committee 

10 of the Senate or the House of Representatives shall review 

11 the strategic plans, performance plans, and performance 

12 reports, required under section 306 of title 5, United 

13 States Code, and sections 1115 and 1116 of title 31, 

14 United States Code, of all agencies under the jurisdiction 

15 of the committee. Each committee may provide its views 

16 on such plans or reports to the Committee on the Budget 

17 of the applicable House.’’. 

18 SEC. 128. BIENNIAL APPROPRIATION BILLS. 

19 (a) IN THE HOUSE OF REPRESENTATIVES.—Clause 

20 2(a) of rule XXI of the Rules of the House of Representa21 tives is amended by adding at the end the following new 

22 subparagraph: 

23 ‘‘(3)(A) Except as provided by subdivision (B), an ap24 propriation may not be reported in a general appropriation 

25 bill (other than a supplemental appropriation bill), and 

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1 may not be in order as an amendment thereto, unless it 

2 provides new budget authority or establishes a level of ob3 ligations under contract authority for each fiscal year of 

4 a biennium. 

5 ‘‘(B) Subdivision (A) does not apply with respect to 

6 an appropriation for a single fiscal year for any program, 

7 project, or activity if the bill or amendment thereto con8 taining that appropriation includes a provision expressly 

9 stating the following: ‘Congress finds that no additional 

10 funding beyond one fiscal year will be required and the 

11 [Insert name of applicable program, project, or activity] 

12 will be completed or terminated after the amount provided 

13 has been expended.’. 

14 ‘‘(C) For purposes of paragraph (b), the statement 

15 set forth in subdivision (B) with respect to an appropria16 tion for a single fiscal year for any program, project, or 

17 activity may be included in a general appropriation bill 

18 or amendment thereto.’’. 

19 (b) CONFORMING AMENDMENT.—Clause 5(b)(1) of 

20 rule XXII of the House of Representatives is amended by 

21 striking ‘‘or (C)’’ and inserting ‘‘or (3) or 2(C)’’. 

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1 SEC. 129. ASSISTANCE BY FEDERAL AGENCIES TO STAND2 ING COMMITTEES OF THE SENATE AND THE 

3 HOUSE OF REPRESENTATIVES. 

4 (a) INFORMATION REGARDING AGENCY APPROPRIA5 TIONS REQUESTS.—To assist each standing committee of 

6 the House of Representatives and the Senate in carrying 

7 out its responsibilities, the head of each Federal agency 

8 which administers the laws or parts of laws under the ju9 risdiction of such committee shall provide to such com10 mittee such studies, information, analyses, reports, and 

11 assistance as may be requested by the chairman and rank12 ing minority member of the committee. 

13 (b) INFORMATION REGARDING AGENCY PROGRAM

14 ADMINISTRATION.—To assist each standing committee of 

15 the House of Representatives and the Senate in carrying 

16 out its responsibilities, the head of any agency shall fur17 nish to such committee documentation, containing infor18 mation received, compiled, or maintained by the agency 

19 as part of the operation or administration of a program, 

20 or specifically compiled pursuant to a request in support 

21 of a review of a program, as may be requested by the 

22 chairman and ranking minority member of such com23 mittee. 

24 (c) SUMMARIES BY COMPTROLLER GENERAL.—With25 in 30 days after the receipt of a request from a chairman 

26 and ranking minority member of a standing committee 

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1 having jurisdiction over a program being reviewed and 

2 studied by such committee under this section, the Comp3 troller General of the United States shall furnish to such 

4 committee summaries of any audits or reviews of such pro5 gram which the Comptroller General has completed during 

6 the preceding 6 years. 

7 (d) CONGRESSIONAL ASSISTANCE.—Consistent with 

8 their duties and functions under law, the Comptroller Gen9 eral of the United States, the Director of the Congres10 sional Budget Office, and the Director of the Congres11 sional Research Service shall continue to furnish (con12 sistent with established protocols) to each standing com13 mittee of the House of Representatives or the Senate such 

14 information, studies, analyses, and reports as the chair15 man and ranking minority member may request to assist 

16 the committee in conducting reviews and studies of pro17 grams under this section. 

18 Subtitle D—Prevention of 

19 Government Shutdown 

20 SEC. 131. AMENDMENT TO TITLE 31. 

21 (a) IN GENERAL.—Chapter 13 of title 31, United 

22 States Code, is amended by inserting after section 1310 

23 the following new section: 

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1 ‘‘§ 1311. Continuing appropriations 

2 ‘‘(a)(1) If any regular appropriation bill for a fiscal 

3 year (or, if applicable, for each fiscal year in a biennium) 

4 does not become law before the beginning of such fiscal 

5 year or a joint resolution making continuing appropria6 tions is not in effect, there are appropriated, out of any 

7 money in the Treasury not otherwise appropriated, and 

8 out of applicable corporate or other revenues, receipts, and 

9 funds, excluding any budget authority designated as an 

10 emergency or temporary funding for projects or activities 

11 that are not part of ongoing operations, to such sums as 

12 may be necessary to continue any project or activity for 

13 which funds were provided in the preceding fiscal year— 

14 ‘‘(A) in the corresponding regular appropriation 

15 Act for such preceding fiscal year; or 

16 ‘‘(B) if the corresponding regular appropriation 

17 bill for such preceding fiscal year did not become 

18 law, then in a joint resolution making continuing ap19 propriations for such preceding fiscal year. 

20 ‘‘(2) Appropriations and funds made available, and 

21 authority granted, for a project or activity for any fiscal 

22 year pursuant to this section shall be at a rate of oper23 ations not in excess of the lower of— 

24 ‘‘(A) the rate of operations provided for in the 

25 regular appropriation Act providing for such project 

26 or activity for the preceding fiscal year; 

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1 ‘‘(B) in the absence of such an Act, the rate of 

2 operations provided for such project or activity pur3 suant to a joint resolution making continuing appro4 priations for such preceding fiscal year; 

5 ‘‘(C) the rate of operations provided for in the 

6 regular appropriation bill as passed by the House of 

7 Representatives or the Senate for the fiscal year in 

8 question, except that the lower of these two versions 

9 shall be ignored for any project or activity for which 

10 there is a budget request if no funding is provided 

11 for that project or activity in either version; or 

12 ‘‘(D) the annualized rate of operations provided 

13 for in the most recently enacted joint resolution 

14 making continuing appropriations for part of that 

15 fiscal year or any funding levels established under 

16 the provisions of this Act. 

17 ‘‘(3) Appropriations and funds made available, and 

18 authority granted, for any fiscal year pursuant to this sec19 tion for a project or activity shall be available for the pe20 riod beginning with the first day of a lapse in appropria21 tions and ending with the earlier of— 

22 ‘‘(A) the date on which the applicable regular 

23 appropriation bill for such fiscal year becomes law 

24 (whether or not such law provides for such project 

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1 or activity) or a continuing resolution making appro2 priations becomes law, as the case may be; or 

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

4 ‘‘(b) An appropriation or funds made available, or au5 thority granted, for a project or activity for any fiscal year 

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

7 conditions imposed with respect to the appropriation made 

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

9 authority granted for such project or activity under cur10 rent law. 

11 ‘‘(c) Appropriations and funds made available, and 

12 authority granted, for any project or activity for any fiscal 

13 year pursuant to this section shall cover all obligations or 

14 expenditures incurred for such project or activity during 

15 the portion of such fiscal year for which this section ap16 plies to such project or activity. 

17 ‘‘(d) Expenditures made for a project or activity for 

18 any fiscal year pursuant to this section shall be charged 

19 to the applicable appropriation, fund, or authorization 

20 whenever a regular appropriation bill or a joint resolution 

21 making continuing appropriations until the end of a fiscal 

22 year providing for such project or activity for such period 

23 becomes law. 

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1 ‘‘(e) This section shall not apply to a project or activ2 ity during a fiscal year if any other provision of law (other 

3 than an authorization of appropriations)— 

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

5 available, or grants authority for such project or ac6 tivity to continue for such period; or 

7 ‘‘(2) specifically provides that no appropriation 

8 shall be made, no funds shall be made available, or 

9 no authority shall be granted for such project or ac10 tivity to continue for such period. 

11 ‘‘(f) For purposes of this section, the term ‘regular 

12 appropriation bill’ means any annual appropriation bill 

13 making appropriations, otherwise making funds available, 

14 or granting authority, for any of the following categories 

15 of projects and activities: 

16 ‘‘(1) Agriculture, rural development, Food and 

17 Drug Administration, and related agencies pro18 grams. 

19 ‘‘(2) The Department of Defense. 

20 ‘‘(3) Energy and water development, and re21 lated agencies. 

22 ‘‘(4) State, foreign operations, and related pro23 grams. 

24 ‘‘(5) The Department of Homeland Security. 

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1 ‘‘(6) The Department of the Interior, Environ2 mental Protection Agency, and related agencies. 

3 ‘‘(7) The Departments of Labor, Health and 

4 Human Services, and Education, and related agen5 cies. 

6 ‘‘(8) Military construction, veterans affairs, and 

7 related agencies. 

8 ‘‘(9) Science, the Departments of State, Jus9 tice, and Commerce, and related agencies. 

10 ‘‘(10) The Departments of Transportation, 

11 Housing and Urban Development, and related agen12 cies. 

13 ‘‘(11) The Legislative Branch. 

14 ‘‘(12) Financial services and general govern15 ment.’’. 

16 (b) CLERICAL AMENDMENT.—The analysis of chap17 ter 13 of title 31, United States Code, is amended by in18 serting after the item relating to section 1310 the fol19 lowing new item: 

‘‘1311. Continuing appropriations.’’. 

20 Subtitle E—The Baseline 

21 SEC. 141. ELIMINATION OF INFLATION ADJUSTMENT. 

22 Section 257(c) of the Balanced Budget and Emer23 gency Deficit Control Act of 1985 is amended— 

24 (1) in paragraph (1) by striking ‘‘for inflation 

25 as specified in paragraph (5),’’; and 

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1 (2) by striking paragraph (5) and redesignating 

2 paragraph (6) as paragraph (5). 

3 SEC. 142. THE PRESIDENT’S BUDGET. 

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

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

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

7 section, estimated expenditures and appropriations 

8 for the current year and estimated expenditures and 

9 proposed appropriations the President decides are 

10 necessary to support the Government in the fiscal 

11 year for which the budget is submitted and at least 

12 the 4 fiscal years following that year, and, except for 

13 detailed budget estimates, the percentage change 

14 from the current year to the fiscal year for which 

15 the budget is submitted for estimated expenditures 

16 and for appropriations.’’. 

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

18 Code, is amended to read as follows: 

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

20 the current year and the fiscal year for which the 

21 budget is submitted and at least the 4 fiscal years 

22 after that year under— 

23 ‘‘(A) laws in effect when the budget is sub24 mitted; and 

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

2 revenues, 

3 and the percentage change (in the case of each cat4 egory referred to in subparagraphs (A) and (B)) be5 tween the current year and the fiscal year for which 

6 the budget is submitted and between the current 

7 year and each of the 9 fiscal years after the fiscal 

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

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

10 Code, is amended to read as follows: 

11 ‘‘(12) for each proposal in the budget for legis12 lation that establishes or expands a Government ac13 tivity or function, a table showing— 

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

15 for appropriation and for expenditure because 

16 of the proposal in the fiscal year for which the 

17 budget is submitted; 

18 ‘‘(B) the estimated appropriation required 

19 because of the proposal for each of at least the 

20 4 fiscal years after that year that the proposal 

21 will be in effect; and 

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

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

24 year, 

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1 and, except for detailed budget estimates, the per2 centage change (in the case of each category re3 ferred to in subparagraphs (A), (B), and (C)) be4 tween the current year and the fiscal year for which 

5 the budget is submitted.’’. 

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

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

8 and’’ before ‘‘budget outlays’’. 

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

10 is amended by adding at the end the following new para11 graphs: 

12 ‘‘(36) a comparison of levels of estimated ex13 penditures and proposed appropriations for each 

14 function and subfunction in the current fiscal year 

15 and the fiscal year for which the budget is sub16 mitted, along with the proposed increase or decrease 

17 of spending in percentage terms for each function 

18 and subfunction. 

19 ‘‘(37) a table on sources of growth in total di20 rect spending under current law and as proposed in 

21 this budget submission for the budget year and at 

22 least the ensuing 9 fiscal years, which shall include 

23 changes in outlays attributable to the following: cost24 of-living adjustments; changes in the number of pro25 gram recipients; increases in medical care prices, 

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1 utilization and intensity of medical care; and resid2 ual factors.’’. 

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

4 is amended by inserting after the first sentence the fol5 lowing new sentence: ‘‘For discretionary spending, these 

6 estimates shall assume the levels no higher than those set 

7 forth in the discretionary spending limits under section 

8 251(b) of the Balanced Budget and Emergency Deficit 

9 Control Act of 1985, as adjusted, for the appropriate fiscal 

10 years (and if no such limits are in effect, these estimates 

11 shall assume adjusted levels no higher than those for the 

12 most recent fiscal year for which such levels were in ef13 fect).’’. 

14 SEC. 143. THE CONGRESSIONAL BUDGET. 

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

16 1974 (as amended by section 103) is further amended— 

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

18 the following: ‘‘The basis of deliberations in devel19 oping such joint resolution shall be the estimated 

20 budgetary levels for the preceding fiscal year. Any 

21 budgetary levels pending before the committee and 

22 the text of the joint resolution shall be accompanied 

23 by a document comparing such levels or such text to 

24 the estimated levels of the prior fiscal year.’’; and 

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

2 end of subparagraph (H) (as redesignated), by strik3 ing the period and inserting ‘‘; and’’ at the end of 

4 subparagraph (I) (as redesignated), and by adding 

5 at the end the following new subparagraph: 

6 ‘‘(J) a comparison of levels for the current 

7 fiscal year with proposed spending and revenue 

8 levels for the subsequent fiscal years along with 

9 the proposed increase or decrease of spending 

10 in percentage terms for each function.’’. 

11 SEC. 144. CONGRESSIONAL BUDGET OFFICE REPORTS TO 

12 COMMITTEES. 

13 (a) COMPARABLE LEVELS.—The first sentence of 

14 section 202(e)(1) of the Congressional Budget Act of 1974 

15 is amended by inserting ‘‘compared to comparable levels 

16 for the current year’’ before the comma at the end of sub17 paragraph (A) and before the comma at the end of sub18 paragraph (B). 

19 (b) SOURCES OF SPENDING GROWTH.—Section 

20 202(e)(1) of the Congressional Budget Act of 1974 is 

21 amended by inserting after the first sentence the following 

22 new sentence: ‘‘Such report shall also include a table on 

23 sources of spending growth in total direct spending, rev24 enue, deficit and debt for the budget year and the ensuing 

25 4 fiscal years, which shall include changes in outlays atmstockstill on DSKH9S0YB1PROD with BILLS

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1 tributable to the following: cost-of-living adjustments; 

2 changes in the number of program recipients; increases 

3 in medical care prices, utilization and intensity of medical 

4 care; and residual factors.’’. 

5 (c) COMPARISON OF LEVELS.—Section 308(a)(1)(B) 

6 of the Congressional Budget Act of 1974 is amended by 

7 inserting ‘‘and shall include a comparison of those levels 

8 to comparable levels for the current fiscal year’’ before ‘‘if 

9 timely submitted’’. 

10 SEC. 145. TREATMENT OF EMERGENCIES. 

11 Section 257(c) of the Balanced Budget and Emer12 gency Deficit Control Act of 1985 (as amended by section 

13 141) is further amended by adding at the end the fol14 lowing new paragraph: 

15 ‘‘(6) EMERGENCIES.—Budgetary resources for 

16 emergencies shall be at the level provided in the re17 serve fund for emergencies for that fiscal year pur18 suant to section 301(a)(4) of the Congressional 

19 Budget Act of 1974.’’. 

20 TITLE II—SPENDING LIMITS AND 

21 DEFICIT CONTROL 

22 SEC. 200. SHORT TITLE. 

23 This title may be cited as the ‘‘Spending Enforcement 

24 and Reform Act of 2009’’. 

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1 Subtitle A—Spending Limits and 

2 Deficit Control 

3 SEC. 201. DISCRETIONARY SPENDING LIMITS. 

4 (a) DISCRETIONARY SPENDING LIMITS.—Section 

5 251 of the Balanced Budget and Emergency Deficit Con6 trol of Act of 1985 is amended to read as follows: 

7 ‘‘(a) DISCRETIONARY SPENDING LIMITS.—For each 

8 fiscal year set forth in this subsection, the total level of 

9 discretionary spending for all nonexempt discretionary 

10 spending programs, projects, and activities shall not ex11 ceed the following levels: 

12 ‘‘(1) with respect to fiscal year 2011— 

13 ‘‘(A) $1,058,021,000,000 in new budget 

14 authority; and 

15 ‘‘(B) $1,216,924,000,000 in outlays; 

16 ‘‘(2) with respect to fiscal year 2012— 

17 ‘‘(A) $1,068,938,000,000 in new budget 

18 authority; and 

19 ‘‘(B) $1,164,593,000,000 in outlays; 

20 ‘‘(3) with respect to fiscal year 2013— 

21 ‘‘(A) $1,079,387,000,000 in new budget 

22 authority; and 

23 ‘‘(B) $1,158,941,000,000 in outlays; 

24 ‘‘(4) with respect to fiscal year 2014— 

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1 ‘‘(A) $1,094,344,000,000 in new budget 

2 authority; and 

3 ‘‘(B) $1,160,021,000,000 in outlays; 

4 ‘‘(5) with respect to fiscal year 2015— 

5 ‘‘(A) $1,113,727,000,000 in new budget 

6 authority; and 

7 ‘‘(B) $1,168,741,000,000 in outlays; 

8 ‘‘(6) with respect to fiscal year 2016— 

9 ‘‘(A) $1,138,053,000,000 in new budget 

10 authority; and 

11 ‘‘(B) $1,189,434,000,000 in outlays; 

12 ‘‘(7) with respect to fiscal year 2017— 

13 ‘‘(A) $1,162,849,000,000 in new budget 

14 authority; and 

15 ‘‘(B) $1,207,686,000,000 in outlays; and 

16 ‘‘(8) with respect to fiscal year 2018— 

17 ‘‘(A) $1,187,516,000,000 in new budget 

18 authority; and 

19 ‘‘(B) $1,226,788,000,000 in outlays; and 

20 ‘‘(9) with respect to fiscal year 2019— 

21 ‘‘(A) $1,214,197,000,000 in new budget 

22 authority; and 

23 ‘‘(B) $1,256,883,000,000 in outlays. 

24 ‘‘(b) SEQUENCE OF SEQUESTRATION REPORTS.— 

25 Within 15 calendar days after Congress adjourns to end 

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1 a session and on the same day as a spending reduction 

2 ordered under sections 252A, 252B, and 253, but prior 

3 to any spending reduction required by sections 252A, 

4 252B, and 253, OMB shall issue a final spending reduc5 tion report to reduce an excess spending amount. 

6 ‘‘(c) SPENDING REDUCTION ORDER.—A spending re7 duction ordered pursuant to subsection (b) shall be imple8 mented using the procedures set forth in section 256.’’. 

9 (b) CONFORMING AMENDMENT.—The item relating 

10 to section 251 in the table of contents set forth in 250(c) 

11 of the Balanced Budget and Emergency Deficit Control 

12 Act of 1985 is amended to read as follows: 

‘‘Sec. 251. Discretionary spending limits.’’. 

13 SEC. 202. DIRECT SPENDING LIMITS. 

14 (a) CONTROL OF DIRECT SPENDING.—The Balanced 

15 Budget and Emergency Deficit Control Act of 1985 is 

16 amended by adding after section 252 the following new 

17 section: 

18 ‘‘SEC. 252A. DIRECT SPENDING LIMITS. 

19 ‘‘(a) DIRECT SPENDING LIMITS.—For fiscal year 

20 2011 and each ensuing fiscal year through fiscal year 

21 2019, the total level of direct spending for all direct spend22 ing programs, projects, and activities for any such fiscal 

23 year shall not exceed the total level of spending for all 

24 such programs, projects, and activities for the previous fis25 cal year after the direct spending for each such program, 

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1 project, or activity is increased by the calculation made 

2 pursuant to section 257. 

3 ‘‘(b) SEQUENCE OF SEQUESTRATION REPORTS.— 

4 Within 15 calendar days after Congress adjourns to end 

5 a session and on the same day as a spending reduction 

6 ordered under sections 251, 253, 252B, but after any 

7 spending reduction required by section 251 and section 

8 252A, OMB shall issue a final spending reduction report 

9 to reduce an excess spending amount (if any remains). 

10 ‘‘(c) SPENDING REDUCTION ORDER.—A spending re11 duction ordered pursuant to subsection (b) shall be imple12 mented using the procedures set forth in section 256.’’. 

13 (b) CONFORMING AMENDMENT.—The table of con14 tents set forth in 250(c) of the Balanced Budget and 

15 Emergency Deficit Control Act of 1985 is amended by 

16 amending the item relating to section 256 to read as fol17 lows: 

‘‘Sec. 252A. Enforcing direct spending limits.’’. 

18 SEC. 203. TOTAL SPENDING LIMITS. 

19 (a) TOTAL SPENDING LIMITS.—After section 252A 

20 of the Balanced Budget and Emergency Deficit Control 

21 Act of 1985, add the following new section: 

22 ‘‘SEC. 252B. TOTAL SPENDING LIMITS. 

23 ‘‘(a) PROJECTIONS.— 

24 ‘‘(1) SPENDING PROJECTIONS.—For the cur25 rent fiscal year and each subsequent ten fiscal years: 

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1 ‘‘(A) OMB shall prepare a report com2 paring projected total spending under section 

3 257 and the total spending limits in subsection 

4 (d), and include such report in the budget as 

5 submitted by the President annually under sec6 tion 1105(a) of title 31, United States Code. 

7 ‘‘(B) CBO shall prepare a report com8 paring projected total spending under section 

9 257 and the total spending limits in subsection 

10 (d) and include such report in the CBO annual 

11 baseline and reestimate of the President’s budg12 et. 

13 ‘‘(2) INCLUSION IN SPENDING REDUCTION OR14 DERS.—Reports prepared pursuant to subsection (a) 

15 shall be included in the spending reduction report 

16 set forth in subsection (b). 

17 ‘‘(b) SPENDING REDUCTION REPORT.—Within 15 

18 calendar days after Congress adjourns to end a session 

19 and on the same day as a spending reduction ordered 

20 under sections 251, 252A, and 253, but after any spend21 ing reduction required by sections 251 and 252A, but be22 fore section 253, OMB shall issue a spending reduction 

23 report to reduce an excess spending amount (if any re24 mains). 

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1 ‘‘(c) SPENDING REDUCTION ORDER.—A spending re2 duction ordered pursuant to subsection (b) shall be imple3 mented using the procedures set forth in section 256. 

4 ‘‘(d) TOTAL SPENDING LIMITS.— 

5 ‘‘(1) fiscal year 2010: 25 percent; 

6 ‘‘(2) fiscal year 2011: 24 percent; 

7 ‘‘(3) fiscal year 2012: 22 percent; 

8 ‘‘(4) fiscal year 2013: 22 percent; 

9 ‘‘(5) fiscal year 2014: 22 percent; 

10 ‘‘(6) fiscal year 2015: 22 percent; 

11 ‘‘(7) fiscal year 2016: 22 percent; 

12 ‘‘(8) fiscal year 2017: 21 percent; 

13 ‘‘(9) fiscal year 2018: 21 percent; and 

14 ‘‘(10) fiscal year 2019 and each year thereafter: 

15 20 percent; 

16 of the projected GDP for the budget year. 

17 ‘‘(e) TEMPORARY ADJUSTMENT AUTHORITY.—OMB 

18 shall make adjustments to the total spending limits set 

19 forth in subsection (d)(6) and the years thereafter equal 

20 to the percentage level of— 

21 ‘‘(1) the average per capita benefit for OASDI 

22 and Medicare eligible retirees born during the period 

23 of fiscal years 1946 through 1964 receiving benefits 

24 under the OASDI and Medicare programs in fiscal 

25 year 2014; 

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1 ‘‘(2) multiplied by the increase in the number 

2 of such beneficiaries in the applicable fiscal year 

3 from the number of such beneficiaries in fiscal year 

4 2014; 

5 ‘‘(3) adjusted for— 

6 ‘‘(A) the blend of the Consumer Price 

7 Index and the Medical Economic Index for 

8 Medicare programs; and 

9 ‘‘(B) the Consumer Price Index for OASDI 

10 programs; and 

11 ‘‘(4) as a percentage of the gross domestic 

12 product of the applicable fiscal year. 

13 OMB may modify the adjustments required by this sub14 section in order that the spending limits accommodate the 

15 OASDI and Medicare benefits of individuals who were 

16 born during the period of fiscal years 1946 through 1964. 

17 ‘‘(f) ADDITIONAL TEMPORARY ADJUSTMENT AU18 THORITY.—OMB shall make further adjustments to the 

19 total spending limits for any fiscal year set forth in sub20 section (d) to ensure that any individual who is at least 

21 55 years of age on January 1 of the calendar year in which 

22 this subsection is enacted shall receive full benefits under 

23 the OASDI and Medicare programs.’’. 

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1 (b) DEFINITIONS.—Section 3 of such Act (2 U.S.C. 

2 622) is further amended by adding at the end the fol3 lowing new paragraph: 

4 ‘‘(14) The term ‘total spending’ means all out5 lays of the Federal Government including those from 

6 off-budget entities and budget authority and outlays 

7 flowing therefrom, as applicable, designated as emer8 gencies.’’. 

9 (c) CONFORMING AMENDMENT.—The table of con10 tents set forth in 250(c) of the Balanced Budget and 

11 Emergency Deficit Control Act of 1985 is amended by in12 serting after the item relating to section 252A the fol13 lowing new item: 

‘‘Sec. 252B. Total spending limits.’’. 

14 SEC. 204. DEFICIT LIMITS. 

15 (a) Amend section 253 of the Balanced Budget and 

16 Emergency Deficit Control Act of 1985 to read as follows: 

17 ‘‘SEC. 253. DEFICIT LIMITS. 

18 ‘‘(a) DEFICIT PROJECTIONS.— 

19 ‘‘(1) DEFICIT AMOUNTS.—For the current fis20 cal year and each subsequent ten fiscal years: 

21 ‘‘(A) OMB shall prepare a report com22 paring projected total deficits and the Deficit 

23 Limits in subsection (d), and include such re24 port in the budget as submitted by the Presimstockstill on DSKH9S0YB1PROD with BILLS

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1 dent annually under section 1105(a) of title 31, 

2 United States Code. 

3 ‘‘(B) CBO shall prepare a report com4 paring projected deficits amounts and the Def5 icit Limits in subsection (d) and include such 

6 report in the CBO annual baseline and reesti7 mate of the President’s budget. 

8 ‘‘(2) INCLUSION IN SPENDING REDUCTION OR9 DERS.—Reports prepared pursuant to subsection (a) 

10 shall be included in the spending reduction report 

11 set forth in subsection (c). 

12 ‘‘(b) DEFICIT REDUCTION REPORT.—Within 15 cal13 endar days after Congress adjourns to end a session and 

14 on the same day as a spending reduction ordered under 

15 sections 251, 252A, and 252B, but after any spending re16 duction required by section 251, OMB shall issue a spend17 ing reduction report to reduce an excess spending amount 

18 (if any remains). 

19 ‘‘(c) DEFICIT REDUCTION ORDER.—A spending re20 duction ordered pursuant to subsection (b) shall be imple21 mented using the procedures set forth in section 256. 

22 ‘‘(d) DEFICIT LIMITS.—In this section, the term 

23 ‘Deficit Limit’ means an amount that equals with respect 

24 to— 

25 ‘‘(1) fiscal year 2011: 6.9 percent; 

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1 ‘‘(2) fiscal year 2012: 4.8 percent; 

2 ‘‘(3) fiscal year 2013: 4.3 percent; 

3 ‘‘(4) fiscal year 2014: 4.2 percent; 

4 ‘‘(5) fiscal year 2015: 3.9 percent; 

5 ‘‘(6) fiscal year 2016: 3.6 percent; 

6 ‘‘(7) fiscal year 2017: 3.1 percent; 

7 ‘‘(8) fiscal year 2018: 2.6 percent; and 

8 ‘‘(9) fiscal year 2019: 2.0 percent. 

9 of the projected GDP for the budget year. 

10 ‘‘(e) TEMPORARY ADJUSTMENT AUTHORITY.—OMB 

11 shall make adjustments to the Deficit Limits set forth in 

12 subsection (d)(5) and the years thereafter consistent with 

13 any adjustments made pursuant to subsections (e) and (f) 

14 of section 252B.’’. 

15 (b) CONFORMING AMENDMENT.—The item relating 

16 to section 253 in the table of contents set forth in section 

17 250(c) of the Balanced Budget and Emergency Deficit 

18 Control Act of 1985 is amended to read as follows: 

‘‘Sec. 253. Deficit limits.’’. 

19 Subtitle B—Reports and Orders 

20 SEC. 211. REPORTS AND ORDERS. 

21 Section 254 of the Balanced Budget and Emergency 

22 Deficit Control Act of 1985 is amended to read as follows: 

23 ‘‘SEC. 254. REPORTS AND ORDERS. 

24 ‘‘(a) TIMETABLE.— 

‘‘Date: Action to be completed: 

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5 days before the President’s 

budget submission.

CBO sequestration preview report. 

President’s budget submission .. OMB sequestration preview report. 

August 10 .................................. CBO sequestration update report. 

August 20 .................................. OMB sequestration update report. 

10 days after end of session ...... CBO sequestration final report. 

15 days after end of session ...... OMB sequestration final report; Presidential 

order 

1 ‘‘(b) SUBMISSION AND AVAILABILITY OF REPORTS.— 

2 Each report required by this section shall be submitted 

3 to the Budget Committees of the House of Representatives 

4 and the Senate. On the following day a notice of the report 

5 shall be printed in the Federal Register. 

6 ‘‘(c) SEQUESTRATION PREVIEW REPORTS.— 

7 ‘‘(1) REPORTING REQUIREMENT.—On the dates 

8 specified in subsection (a), OMB and CBO shall 

9 issue a preview report regarding discretionary, pay10 as-you-go, and deficit sequestration based on laws 

11 enacted through those dates. 

12 ‘‘(2) DISCRETIONARY SPENDING LIMIT SEQUES13 TRATION REPORT.—The preview reports shall set 

14 forth estimates for the current year and each subse15 quent year through 2019 of the applicable discre16 tionary spending limits and an explanation of any 

17 adjustments in such limits under section 251. 

18 ‘‘(3) DIRECT SPENDING LIMIT SEQUESTRATION

19 REPORT.—The preview reports shall set forth, for 

20 the current year and the budget year, estimates for 

21 each of the following: 

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1 ‘‘(A) The amount of total direct spending, 

2 if any, calculated under subsection 252A(b). 

3 ‘‘(B) A list identifying each law enacted 

4 and sequestration implemented after the date of 

5 enactment of this section included in the cal6 culation of the amount of deficit increase or de7 crease and specifying the budgetary effect of 

8 each such law. 

9 ‘‘(C) The sequestration percentage or per10 centages necessary to eliminate a deficit in11 crease under section 252A(C). 

12 ‘‘(4) TOTAL SPENDING LIMIT SEQUESTRATION

13 REPORT.—The preview reports shall set forth for the 

14 budget year estimates for each of the following: 

15 ‘‘(A) The total spending limit and the esti16 mated total spending amount calculated under 

17 section 252A, and the excess deficit. 

18 ‘‘(B) The amount of reductions required 

19 under sections 251 and 252A, the excess total 

20 spending amount remaining after those reduc21 tions have been made. 

22 ‘‘(C) The sequestration percentage nec23 essary to achieve the required reduction in any 

24 fiscal year for which a Deficit Limit is set forth 

25 pursuant to this Act. 

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1 ‘‘(5) DEFICIT LIMIT SEQUESTRATION RE2 PORT.—The preview reports shall set forth for the 

3 budget year estimates for each of the following: 

4 ‘‘(A) The maximum deficit amount, the es5 timated deficit calculated under section 253(b), 

6 the excess deficit; 

7 ‘‘(B) The amount of reductions required 

8 under sections 251, 252A and 252B, the excess 

9 deficit remaining after those reductions have 

10 been made; and 

11 ‘‘(C) The sequestration percentage nec12 essary to achieve the required reduction in any 

13 fiscal year for which a Deficit Limit is set forth 

14 pursuant to this Act. 

15 ‘‘(6) EXPLANATION OF DIFFERENCES.—The 

16 OMB reports shall explain the differences between 

17 OMB and CBO estimates for each item set forth in 

18 this subsection. 

19 ‘‘(d) SEQUESTRATION UPDATE REPORTS.—On the 

20 dates specified in subsection (a), OMB and CBO shall 

21 issue a sequestration update report, reflecting laws en22 acted through those dates, containing all of the informa23 tion required in the sequestration preview reports. 

24 ‘‘(e) FINAL SEQUESTRATION REPORTS.— 

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1 ‘‘(1) REPORTING REQUIREMENT.—On the dates 

2 specified in subsection (a), OMB and CBO shall 

3 issue a final sequestration report, updated to reflect 

4 laws enacted through those dates. 

5 ‘‘(2) DISCRETIONARY SPENDING SEQUESTRA6 TION REPORTS.—The final reports shall set forth es7 timates for each of the following: 

8 ‘‘(A) For the current year and each subse9 quent year the applicable discretionary spending 

10 limits for each category and an explanation of 

11 any adjustments in such limits under section 

12 251. 

13 ‘‘(B) For the current year and the budget 

14 year the estimated new budget authority and 

15 outlays for each category and the breach, if 

16 any, in each category. 

17 ‘‘(C) For each category for which a seques18 tration is required, the sequestration percent19 ages necessary to achieve the required reduc20 tion. 

21 ‘‘(D) For the budget year, for each ac22 count to be sequestered, estimates of the base23 line level of budgetary resources subject to se24 questration and resulting outlays and the 

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1 amount of budgetary resources to be seques2 tered and resulting outlay reductions. 

3 ‘‘(3) DIRECT SPENDING, TOTAL SPENDING, AND

4 DEFICIT LIMIT SEQUESTRATION REPORTS.—The 

5 final reports shall contain all the information re6 quired in the direct spending, total spending, and 

7 Deficit Limit sequestration preview reports. In addi8 tion, these reports shall contain, for the budget year, 

9 for each account to be sequestered, estimates of the 

10 baseline level of sequestrable budgetary resources 

11 and resulting outlays and the amount of budgetary 

12 resources to be sequestered and resulting outlay re13 ductions. The reports shall also contain estimates of 

14 the effects on outlays of the sequestration in each 

15 outyear for direct spending programs. 

16 ‘‘(4) EXPLANATION OF DIFFERENCES.—The 

17 OMB report shall explain any differences between 

18 OMB and CBO estimates of the amount of any net 

19 direct spending change calculated under section 

20 252A, any excess deficit, any breach, and any re21 quired sequestration percentage. The OMB report 

22 shall also explain differences in the amount of 

23 sequesterable resources for any budget account to be 

24 reduced if such difference is greater than 

25 $5,000,000. 

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1 ‘‘(5) PRESIDENTIAL ORDER.—On the date spec2 ified in subsection (a), if in its final sequestration 

3 report OMB estimates that any sequestration is re4 quired, the President shall issue an order fully im5 plementing without change all sequestrations re6 quired by the OMB calculations set forth in that re7 port. This order shall be effective on issuance. 

8 ‘‘(f) WITHIN-SESSION SEQUESTRATION REPORTS.— 

9 If an appropriation for a fiscal year in progress is enacted 

10 (after Congress adjourns to end the session for that budg11 et year and before July 1 of that fiscal year) that causes 

12 a breach, 10 days later CBO shall issue a report con13 taining the information required in subsection (e)(2). Fif14 teen days after enactment, OMB shall issue a report con15 taining the information required in subsections (e)(2) and 

16 (e)(4). On the same day as the OMB report, the President 

17 shall issue an order fully implementing without change all 

18 sequestrations required by the OMB calculations set forth 

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

20 ‘‘(g) GAO COMPLIANCE REPORT.—Upon request of 

21 the Committee on the Budget of the House of Representa22 tives or the Senate, the Comptroller General shall submit 

23 to the Congress and the President a report on— 

24 ‘‘(1) the extent to which each order issued by 

25 the President under this section complies with all of 

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1 the requirements contained in this part, either certi2 fying that the order fully and accurately complies 

3 with such requirements or indicating the respects in 

4 which it does not; and 

5 ‘‘(2) the extent to which each report issued by 

6 OMB or CBO under this section complies with all of 

7 the requirements contained in this part, either certi8 fying that the report fully and accurately complies 

9 with such requirements or indicating the respects in 

10 which it does not. 

11 ‘‘(h) LOW-GROWTH REPORT.—At any time, CBO 

12 shall notify the Congress if— 

13 ‘‘(1) during the period consisting of the quarter 

14 during which such notification is given, the quarter 

15 preceding such notification, and the 4 quarters fol16 lowing such notification, CBO or OMB has deter17 mined that real economic growth is projected or esti18 mated to be less than zero with respect to each of 

19 any 2 consecutive quarters within such period; or 

20 ‘‘(2) the most recent of the Department of 

21 Commerce’s advance preliminary or final reports of 

22 actual real economic growth indicate that the rate of 

23 real economic growth for each of the most recently 

24 reported quarter and the immediately preceding 

25 quarter is less than one percent. 

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1 ‘‘(i) ECONOMIC AND TECHNICAL ASSUMPTIONS.—In 

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

3 same economic and technical assumptions as used in the 

4 most recent budget submitted by the President under sec5 tion 1105(a) of title 31, United States Code’’. 

6 SEC. 212. SPENDING AND DEFICIT LIMITS ENFORCEMENT. 

7 (a) CONFORMING AMENDMENTS TO SECTION 312.— 

8 Section 312 of the Congressional Budget Act of 1974 is 

9 amended— 

10 (1) by striking subsection (a) and inserting the 

11 following: 

12 ‘‘(a) BUDGET COMMITTEE DETERMINATIONS.—For 

13 purposes of this title, the levels of new budget authority, 

14 outlays, direct spending, deficits, revenues, and debt, or 

15 the increases or decreases of such levels for purpose of 

16 section 303, shall be determined on the basis of estimates 

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

18 Representatives or the Senate, as applicable.’’. 

19 (2) by striking subsections (b) and (c) and re20 designating subsections (d), (e), and (f) as (h), (i), 

21 and (j). 

22 (b) ENFORCEMENT AMENDMENTS TO SECTION

23 312.—Section 312 of the Congressional Budget Act of 

24 1974 is further amended by adding at the end the fol25 lowing new subsections after subsection (a): 

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1 ‘‘(b) DISCRETIONARY SPENDING LIMIT POINT OF

2 ORDER.—It shall not be in order in the House of Rep3 resentatives or the Senate to consider any bill, joint resolu4 tion, amendment, concurrent resolution, or conference re5 port that— 

6 ‘‘(1) causes the discretionary spending limits 

7 for the budget year to be breached; 

8 ‘‘(2) increases the discretionary spending limits 

9 for the budget year or any ensuing fiscal year; or 

10 ‘‘(3) includes any provision that has the effect 

11 of modifying the application of section 251 of the 

12 Balanced Budget and Emergency Deficit Control 

13 Act of 1985. 

14 ‘‘(c) DIRECT SPENDING LIMIT POINT OF ORDER.— 

15 It shall not be in order in the House of Representatives 

16 or the Senate to consider any bill, joint resolution, amend17 ment, concurrent resolution, or conference report that— 

18 ‘‘(1) causes the direct spending limits for the 

19 budget year to be breached; or 

20 ‘‘(2) increases aggregate level of direct spending 

21 for any ensuing fiscal year. 

22 ‘‘(d) TOTAL SPENDING LIMIT POINT OF ORDER.— 

23 It shall not be in order in the House of Representatives 

24 or the Senate to consider any bill, joint resolution, concur25 rent resolution, amendment, or conference report that— 

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1 ‘‘(1) causes the total spending limits for the 

2 budget year, as a percentage of gross domestic prod3 uct, to be breached; or 

4 ‘‘(2) increases outlays above the total spending 

5 limits, as a percentage of gross domestic product, for 

6 the budget year or any ensuing fiscal year after the 

7 budget year. 

8 ‘‘(e) DEFICIT LIMIT POINT OF ORDER.—It shall not 

9 be in order in the House of Representatives or the Senate 

10 to consider any bill, joint resolution, amendment, concur11 rent resolution, or conference report that— 

12 ‘‘(1) causes the Deficit Limits for the budget 

13 year, as a percentage of gross domestic product, to 

14 be breached; or 

15 ‘‘(2) increases the amount of deficit, as a per16 centage of gross domestic product, for the budget 

17 year or any ensuing fiscal year. 

18 ‘‘(f) SEQUESTRATION APPLICATION.—It shall not be 

19 in order in the House of Representatives or the Senate 

20 to consider any bill, joint resolution, amendment, concur21 rent resolution, or conference report that— 

22 ‘‘(1) includes any provision that has the effect 

23 of modifying the application of section 256 of the 

24 Balanced Budget and Emergency Deficit Control 

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1 Act of 1985 to any program subject to sequestration 

2 or exempt from sequestration; and 

3 ‘‘(2) includes any provision that has the effect 

4 of modifying the application of section 251, 252A, 

5 252B or 253 to any program subject to sequestra6 tion or exempt from sequestration. 

7 ‘‘(g) WAIVER OR SUSPENSION.—The provisions of 

8 this section may be waived or suspended: 

9 ‘‘(1) IN THE SENATE.—In the Senate only by 

10 the affirmative vote of three-fifths of the Members, 

11 duly chosen and sworn. 

12 ‘‘(2) IN THE HOUSE OF REPRESENTATIVES.—In 

13 the House of Representatives: 

14 ‘‘(A) Only by a rule or order proposing 

15 only to waive such provisions by an affirmative 

16 vote of two-thirds of the Members, duly chosen 

17 and sworn. 

18 ‘‘(B) It shall not be in order to consider a 

19 rule or order that waives the application of sub20 paragraph (A). 

21 ‘‘(C) It shall not be in order for the Speak22 er to entertain a motion to suspend the applica23 tion of this section under clause 1 of rule XV 

24 of the Rules of the House of Representatives.’’. 

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1 SEC. 213. SPENDING REDUCTION ORDERS. 

2 (a) IN GENERAL.—Section 256 of the Balanced 

3 Budget and Emergency Deficit Control Act of 1985 is 

4 amended to read as follows: 

5 ‘‘SEC. 256. SPENDING REDUCTION ORDER. 

6 ‘‘(a) APPLICATION.—A spending reduction order 

7 issued pursuant to this part shall apply to eliminate 

8 breaches of the limits set forth in sections 251 (discre9 tionary spending limits), 252A (direct spending limits), 

10 253 (Deficit Limits) and 252B (total spending limits). 

11 ‘‘(b) WAIVER OR SUSPENSION.—(1) In the Senate, 

12 the provisions of this section may be waived or suspended 

13 in the Senate only by the affirmative vote of two-thirds 

14 of the Members, duly chosen and sworn. 

15 ‘‘(2) In the House— 

16 ‘‘(A) The provisions of this section may be 

17 waived or suspended in the House of Representatives 

18 only by a rule or order proposing only to waive such 

19 provisions by an affirmative vote of two-thirds of the 

20 Members, duly chosen and sworn. 

21 ‘‘(B) It shall not be in order to consider a rule 

22 or order that waives the application of paragraph 

23 (1). 

24 ‘‘(C) It shall not be in order for the Speaker to 

25 entertain a motion to suspend the application of this 

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1 section under clause 1 of rule XV of the Rules of the 

2 House of Representatives. 

3 ‘‘(c) GENERAL RULES.— 

4 ‘‘(1) CALCULATION OF SPENDING REDUCTION

5 PERCENTAGE.—OMB shall include in its final 

6 spending sequestration report a requirement that 

7 each nonexempt spending account shall be reduced 

8 by an amount of budget authority calculated by mul9 tiplying the baseline level of budgetary resources in 

10 that account at that time by the uniform percentage 

11 necessary to reduce outlays sufficient to eliminate an 

12 excess spending amount. 

13 ‘‘(2) EXEMPTIONS.—The following shall be ex14 empt from reduction under any order issued under 

15 this part: 

16 ‘‘(A) Payments for net interest. 

17 ‘‘(B) Benefits payable under the old-age, 

18 survivors, and disability insurance program es19 tablished under title II of the Social Security 

20 Act if— 

21 ‘‘(i) OASDI Trust Funds are actuari22 ally solvent in the 75-year period utilized 

23 in the most recent annual report of the 

24 Board of Trustees provided pursuant to 

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1 section 201(C)(2) of the Social Security 

2 Act; and 

3 ‘‘(ii) OASDI Trust Funds have not 

4 run a cash deficit in the fiscal year prior 

5 to the transmittal of the most recent Se6 questration Preview Report. 

7 ‘‘(C) Benefits provided to veterans defined 

8 as direct spending payable by the Department 

9 of Veterans affairs. 

10 ‘‘(D) Obligated balances of budget author11 ity carried over from prior fiscal years. 

12 ‘‘(E) Any obligations of the Federal Gov13 ernment required to be paid under the United 

14 States Constitution or legally contractual obli15 gations. 

16 ‘‘(F) Provisions of spending legislation des17 ignated by the President, and so designated in 

18 statute, as an emergency, except an amount of 

19 budget authority and the outlays flowing there20 from so designated that is above the emergency 

21 reserve fund as calculated in section 317(b) of 

22 the Congressional Budget Act of 1974 shall not 

23 be exempt. 

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1 ‘‘(G) Any program whose growth in the 

2 budget year is equal to or less than the con3 sumer price index. 

4 ‘‘(H) Intergovernmental transfers. 

5 ‘‘(3) ONE-PERCENT REDUCTION LIMITATION.— 

6 No program shall be subject to a spending reduction 

7 of more than one percent of its budgetary resources. 

8 ‘‘(4) CALCULATION OF SPENDING REDUC9 TION.—The percentage required to produce a spend10 ing reduction, as ordered by a spending reduction 

11 order, shall be calculated by OMB by adding all 

12 budgetary resources of the Government, and reduc13 ing that amount by an amount sufficient to reduce 

14 the total amount of outlays of the Government to 

15 equal, or lower, a level of outlays than the amount 

16 set forth in the guideline period. 

17 ‘‘(5) APPLICATION.—Once issued, a spending 

18 reduction shall be applied to nonexempt programs as 

19 follows: 

20 ‘‘(A) Budgetary resources subject to a 

21 spending reduction to any discretionary account 

22 shall be permanently canceled. 

23 ‘‘(B) The same percentage spending reduc24 tion shall apply to all programs, projects, and 

25 activities within a budget account (with promstockstill on DSKH9S0YB1PROD with BILLS

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1 grams, projects, and activities as delineated in 

2 the appropriation Act or accompanying report 

3 for the relevant fiscal year covering that ac4 count, or for accounts not included in appro5 priation Acts, as delineated in the most recently 

6 submitted President’s budget). 

7 ‘‘(C) Administrative regulations imple8 menting a spending reduction shall be made 

9 within 120 days of the issue of a spending re10 duction order. 

11 ‘‘(6) OASDI SPECIAL PROCEDURES.—If the 

12 OASDI Trust Funds are subject to sequestration, 

13 then payments from such Trust Funds shall be 

14 treated the same as other programs, except— 

15 ‘‘(A) reductions from such Trust Funds 

16 shall not exceed one percent of the 75-year un17 funded liability set forth in the most current 

18 Social Security Trustees Report; 

19 ‘‘(B) reduction in individual benefits shall 

20 be implemented by increasing the Normal Re21 tirement Age (NRA) by an amount certified by 

22 the Social Security Office of the Chief Actuary; 

23 ‘‘(C) the increase in the NRA shall not be 

24 applied to any beneficiary born in a year 55 

25 years or before— 

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1 ‘‘(i) the year of the enactment of the 

2 Spending, Deficit, and Debt Control Act of 

3 2009; or 

4 ‘‘(ii) the year in which the final 

5 spending sequestration report is issued; 

6 and 

7 ‘‘(D) no change in the NRA shall be made 

8 before it is fully phased-in under the Social Se9 curity Act as in effect before the date of enact10 ment of the Spending, Deficit, and Debt Con11 trol Act of 2009. 

12 ‘‘(d) DISCRETIONARY SPENDING SEQUESTRATION.— 

13 ‘‘(1) ELIMINATING A BREACH.—Each non14 exempt account shall be reduced by an amount of 

15 budget authority calculated by multiplying the base16 line level of budgetary resources subject to seques17 tration in that account at that time by the uniform 

18 percentage necessary to eliminate a breach by— 

19 ‘‘(A) first, calculating the uniform percent20 age necessary to eliminate a breach in new 

21 budget authority, if any, and 

22 ‘‘(B) second, if any breach in outlays re23 mains, increasing the uniform percentage to a 

24 level sufficient to eliminate that breach. 

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1 ‘‘(2) EMERGENCY SPENDING ABOVE THE RE2 SERVE FUND.—An amount of budget authority and 

3 the outlays flowing therefrom designated in statute 

4 as an emergency that is above level in the emergency 

5 reserve fund as calculated in Section 317(b) of the 

6 Congressional Budget Act of 1974 shall count to7 ward the discretionary spending limits. 

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

9 date specified in paragraph (1), there is in effect an 

10 Act making or continuing appropriations for part of 

11 a fiscal year for any budget account, then the dollar 

12 sequestration calculated for that account under 

13 paragraph (2) shall be subtracted from—(A) the 

14 annualized amount otherwise available by law in that 

15 account under that or a subsequent part-year appro16 priation; and (B) when a full-year appropriation for 

17 that account is enacted, from the amount otherwise 

18 provided by the full year appropriation. 

19 ‘‘(4) LOOK-BACK.—If, after June 30, an appro20 priation for the fiscal year in progress is enacted 

21 that causes a breach for that year, the discretionary 

22 spending limits for the next fiscal year shall be re23 duced by the amount of the breach. 

24 ‘‘(5) WITHIN-SESSION SEQUESTRATION.—If an 

25 appropriation for a fiscal year in progress is enacted 

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1 (after Congress adjourns to end the session for that 

2 budget year and before July 1 of that fiscal year) 

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

4 account any prior sequestration of amounts), 15 

5 days later there shall be a sequestration to eliminate 

6 that breach following the procedures set forth in 

7 paragraphs (2) through (3). 

8 ‘‘(6) ESTIMATES.— 

9 ‘‘(A) CBO ESTIMATES.—As soon as prac10 ticable after Congress completes action on any 

11 discretionary appropriation, CBO, after con12 sultation with the Committees on the Budget of 

13 the House of Representatives and the Senate, 

14 shall provide OMB with an estimate of the 

15 amount of discretionary new budget authority 

16 and outlays for the current year (if any) and 

17 the budget year provided by that legislation. 

18 ‘‘(B) OMB ESTIMATES.—Not later than 

19 seven calendar days (excluding Saturdays, Sun20 days, and legal holidays) after the date of en21 actment of any discretionary appropriation, 

22 OMB shall transmit a report to the House of 

23 Representatives and to the Senate containing 

24 the CBO estimate of that legislation, an OMB 

25 estimate of the amount of discretionary new 

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1 budget authority and outlays for the current 

2 year (if any) and the budget year provided by 

3 that legislation, and an explanation of any dif4 ference between the two estimates. 

5 ‘‘(C) EXPLANATION OF DIFFERENCES BE6 TWEEN OMB AND OMB ESTIMATES.—If OMB 

7 determines that there is a significant difference 

8 between OMB and CBO reports prepared pur9 suant to subparagraph (A) and (B), OMB shall 

10 consult with the Committees on the Budget of 

11 the House of Representatives and the Senate 

12 regarding that difference and that consultation 

13 shall include, to extent practicable, written com14 munication to those committees that affords 

15 such committees the opportunity to comment 

16 before the issuance of the report. 

17 ‘‘(D) ASSUMPTIONS AND GUIDELINES.— 

18 OMB estimates under this paragraph shall be 

19 made using current economic and technical as20 sumptions. OMB shall use the OMB estimates 

21 transmitted to the Congress under this para22 graph. OMB and CBO shall prepare estimates 

23 under this paragraph in conformance with 

24 scorekeeping guidelines determined after con25 sultation among the House of Representatives 

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1 and Senate Committees on the Budget, CBO, 

2 and OMB. 

3 ‘‘(E) ANNUAL APPROPRIATIONS.—For pur4 poses of this paragraph, amounts provided by 

5 annual appropriations shall include any new 

6 budget authority and outlays for the current 

7 year (if any) and the budget year in accounts 

8 for which funding is provided in that legislation 

9 that result from previously enacted legislation. 

10 ‘‘(7) DISCRETIONARY SEQUESTRATION LIMITA11 TION.—If appropriations for a fiscal year do not re12 quire a sequester pursuant to the discretionary 

13 spending limits set forth in this Act, discretionary 

14 accounts shall not be subject to sequestration under 

15 sections 252A, 252B or 253.’’. 

16 (b) LOW-GROWTH AMENDMENT.—Amend section 

17 258(b) of the Balanced Budget and Emergency Deficit 

18 Control Act of 1985 to read as follows: 

19 ‘‘(b) SUSPENSION OF SEQUESTRATION PROCE20 DURES.—Upon the enactment of a declaration of war or 

21 a joint resolution described in subsection (a)— 

22 ‘‘(1) the subsequent issuance of any sequestra23 tion report to enforce the spending limits in section 

24 252B or the Deficit Limits in section 253 order is 

25 precluded; 

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1 ‘‘(2) sections 302(f), 310(d), 311(a), of the 

2 Congressional Budget Act of 1974 are suspended; 

3 and 

4 ‘‘(3) section 1103 of title 31, United States 

5 Code, is suspended.’’. 

6 (c) TECHNICAL AND CONFORMING AMENDMENTS.— 

7 (1) REPEALS.—section 255 of the Balanced Budget and 

8 Emergency Deficit Control Act of 1985 is repealed. 

9 (2) CONFORMING AMENDMENT.—the item relating to 

10 section 256 in the table of contents set forth in section 

11 250(a) of the Balanced Budget and Emergency Deficit 

12 Control Act of 1985 is amended to read as follows: 

‘‘Sec. 256. Spending reduction order.’’. 

13 TITLE III—LONG-TERM 

14 BUDGETING 

15 SEC. 300. SHORT TITLE; PURPOSES. 

16 This title may be cited as ‘‘Budget Reform and Long17 Term Sustainability Act of 2009’’ 

18 SEC. 301. CBO AND OMB PROJECTIONS. 

19 (a) CONGRESSIONAL BUDGET OFFICE.—At the end 

20 of section 308 of the Congressional Budget Act of 1974, 

21 add the following: 

22 ‘‘(d) LONG-TERM PROJECTIONS.—Not later than 

23 February 15 of each calendar year after the date of enact24 ment of this subsection, the Director of the Congressional 

25 Budget Office shall issue a report projecting total spendmstockstill on DSKH9S0YB1PROD with BILLS

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1 ing, revenue, deficits, and debt for 75 years beginning with 

2 such fiscal year as a percentage of gross domestic product 

3 annually based on current law levels as modified to main4 tain current policy. 

5 ‘‘(e) CBO SPENDING REVIEW REPORT ISSUANCE.— 

6 As a component of the report required by subsection (d), 

7 the Congressional Budget Office shall issue a Spending 

8 Review Report and transmit such report to the Commit9 tees on the Budget of the House of Representatives and 

10 the Senate. 

11 ‘‘(f) CONTENT OF SPENDING REVIEW REPORT.—The 

12 content of the Spending Review Report referred to in sub13 section (e) shall include analyses of the following: 

14 ‘‘(1) OASDI.—The solvency of the Old-Age, 

15 Survivors, and Disability Insurance Trust Fund; 

16 ‘‘(2) MEDICARE.—The long-range sustainability 

17 of the spending levels of Medicare; 

18 ‘‘(3) MEDICAID.—The long-range sustainability 

19 of the spending levels of Medicaid; and 

20 ‘‘(4) OTHER DIRECT SPENDING.—The long21 range sustainability of spending levels of other direct 

22 spending. 

23 ‘‘(g) DEFINITIONS.—For purposes of the develop24 ment of the Spending Review Report referred to in sub25 section (b): 

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1 ‘‘(1) SOLVENCY OF THE OASDI.—The term ‘sol2 vency’ as used in this section means the solvency of 

3 the Old-Age Security and Disability Insurance Trust 

4 Funds over a 75-year period beginning in the year 

5 the Spending Review Report is reported. 

6 ‘‘(2) SUSTAINABILITY.—The term ‘sustain7 ability’ means the following: 

8 ‘‘(A) MEDICARE.—The Medicare program 

9 is sustainable if it is projected to grow, begin10 ning in the tenth year following the date of the 

11 enactment of this Act from the fixed percentage 

12 of Gross Domestic Product in the year prior to 

13 the date of enactment of this subsection, ad14 justed by the adjustment formula as set forth 

15 in section 252B(e) of the Balanced Budget and 

16 Emergency Deficit Control Act of 1985; 

17 ‘‘(B) MEDICAID.—The Medicaid program 

18 is sustainable if its outlays, excluding those des19 ignated as emergencies, are projected to grow 

20 from the fixed percentage of Gross Domestic 

21 Product in the year prior to the date of the en22 actment of this Act, adjusted by a rate no high23 er than a blend of the Consumer Price Index 

24 and the Medical Economic Index, as adjusted 

25 after fiscal year 2018 using the same calculamstockstill on DSKH9S0YB1PROD with BILLS

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1 tion, excluding benefits provided from the 

2 OASDI Trust funds, as that set forth in section 

3 252B(e) of the Balanced Budget and Emer4 gency Deficit Control Act of 1985 to reflect the 

5 increase in the the number of Medicare eligible 

6 retirees receiving benefiits in the program rel7 ative to fiscal year 2018. 

8 ‘‘(C) OTHER DIRECT SPENDING.—Other 

9 direct spending is direct spending other than 

10 OASDI, the Medicare and Medicaid program 

11 and is sustainable if it grows from a fixed per12 centage of gross domestic product in fiscal year 

13 2008.’’. 

14 (b) OFFICE OF MANAGEMENT AND BUDGET.—Sec15 tion 1105(a) of title 31, United States Code, (as amended 

16 by section 142(e)) is further amended by adding at the 

17 end the following: 

18 ‘‘(38) long-term projections of total spending 

19 over 75 years as a percentage of gross domestic 

20 product annually and the impact of proposed policies 

21 over that period.’’. 

22 SEC. 302. GAO AND OMB STATEMENTS OF THE FEDERAL 

23 GOVERNMENT’S FINANCIAL CONDITION. 

24 (a) GOVERNMENT ACCOUNTABILITY OFFICE.—On or 

25 before April 15 of each fiscal year, the Government Acmstockstill on DSKH9S0YB1PROD with BILLS

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1 countability Office shall submit a report on the federal 

2 government’s financial condition, including the long-term 

3 unfunded obligations. 

4 (b) DEFINITION OF LONG-TERM UNFUNDED OBLI5 GATIONS.—Section 3 of the Congressional Budget Act of 

6 1974 is further amended by adding at the end the fol7 lowing new paragraph, and redesignate the paragraph ac8 cordingly: 

9 ‘‘(11) UNFUNDED OBLIGATIONS.—The term 

10 ‘Unfunded Obligations’ means the dollar sum of the 

11 Total Net Position as displayed in the United States 

12 Government Balance Sheets contained within the 

13 most recently published Financial Report of the 

14 United States Government; plus the 75-year actu15 arial balances, using the intermediate open-group as16 sumption, of Medicare’s Hospital Insurance, Supple17 mentary Medical Insurance, and Prescription Drug 

18 programs contained within the most recently pub19 lished Annual Report of the Boards of Trustees of 

20 the Federal Hospital Insurance and Federal Supple21 mentary Medical Insurance Trust Funds; plus the 

22 75-year actuarial balance, using the intermediate 

23 open group assumption, of the Old-Age Survivors 

24 and Disability Insurance program contained within 

25 the most recently published Annual Report of the 

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1 Board of Trustees of the Federal Old-Age and Sur2 vivors Insurance and Federal Disability Insurance 

3 Trust Funds.’’. 

4 (c) OFFICE OF MANAGEMENT AND BUDGET.—Sec5 tion 1105(a) of title 31, United States Code, (as amended 

6 by section 301(b)) is further amended by adding at the 

7 end the following: 

8 ‘‘(39) a report on the Federal Government’s fi9 nancial condition, the including the long-term un10 funded obligations.’’. 

11 SEC. 303. FIVE-YEAR FISCAL SUSTAINABILITY REVIEW. 

12 Title III of the Congressional Budget Act of 1974 

13 (as amended by section 126(a)) is further amended by 

14 adding at the end the following new section: 

15 ‘‘FIVE-YEAR FISCAL SUSTAINABILITY REVIEW

16 ‘‘SEC. 319. (a) CONGRESSIONAL SPENDING REVIEW

17 REPORT.—Not later than 15 calendar days after the date 

18 of the transmittal of the report referred to in subsection 

19 308(e), the Committees on the Budget of the House of 

20 Representatives and the Senate shall issue, and have 

21 printed in the Congressional Record, an assessment of 

22 such report. 

23 ‘‘(b) COMMITTEE RECOMMENDATIONS.—Not later 

24 than 15 calendar days after the date of the report of the 

25 review referred to in subsection (c), the committees of the 

26 House of Representatives and the Senate shall consider 

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1 and vote to submit to the Committees on the Budget of 

2 the House of Representatives and Senate, as applicable, 

3 recommendations, if any, such committees deem appro4 priate in response to the Spending Review Report issued 

5 pursuant to subsection (c). 

6 ‘‘(c) EXPEDITED CONSIDERATION OF SPENDING RE7 VIEW LEGISLATION.— 

8 ‘‘(1) CONSIDERATION IN THE HOUSE OF REP9 RESENTATIVES.— 

10 ‘‘(A) INTRODUCTION OF SPENDING RE11 VIEW LEGISLATION.— 

12 ‘‘(i) If the report referred to in section 

13 308 indicates that the OASDI Trust 

14 Funds are not solvent, or that Medicare, 

15 Medicaid or other direct spending pro16 grams are not sustainable, or total spend17 ing exceeds the limits set forth in section 

18 252B for any year within the 75-year pe19 riod referred to in such report, then not 

20 later than 30 calendar days after the 

21 transmittal of the report referred to in 

22 subsection (a), if any, the majority leader 

23 and minority leader of the House of Rep24 resentatives shall each introduce legislation 

25 implementing to the extent practicable the 

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1 recommendations referred to in subsection 

2 (d), or if necessary additional spending re3 duction sufficient to achieve the spending 

4 levels referred to in subsection (b). 

5 ‘‘(ii) If Spending Review Legislation 

6 is not introduced pursuant to this subpara7 graph by the majority leader or minority 

8 leader, then not later than 45 calendar 

9 days after the transmittal of the report re10 ferred to in subsection (a), the chairman or 

11 ranking member of the Committee on the 

12 Budget shall introduce Spending Review 

13 Legislation sufficient to achieve the same 

14 spending levels. 

15 ‘‘(iii) Spending review legislation shall 

16 be referred solely to the House of Rep17 resentatives Budget Committee, which 

18 shall have sole jurisdiction of such legisla19 tion. 

20 ‘‘(iv) Spending review legislation in21 troduced pursuant to this section shall 

22 cause total spending to be reduced by an 

23 amount equal or greater than the amount 

24 of the breach of the limits set forth in sec25 tion 252B, and shall cause the OASDI 

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1 Trust Funds to achieve solvency, and shall 

2 cause Medicare, Medicaid, and other direct 

3 spending programs to achieve sustain4 ability. 

5 ‘‘(B) REFERRAL AND REPORTING.—The 

6 Committee on the Budget of the House of Rep7 resentatives shall report Spending Review Leg8 islation to the House of Representatives not 

9 later than the seventh legislative day after the 

10 date of introduction of the legislation referred 

11 to in subparagraph (A). If such committee fails 

12 to report the Spending Review Legislation with13 in that period or the House of Representatives 

14 has adopted a concurrent resolution providing 

15 for adjournment sine die at the end of a Con16 gress, such committee shall be automatically 

17 discharged from further consideration of the 

18 Spending Review Legislation and it shall be 

19 placed on the appropriate calendar. 

20 ‘‘(C) PROCEEDING TO CONSIDERATION.— 

21 After Spending Review Legislation is reported 

22 by or discharged from the Committee on the 

23 Budget or the House of Representatives has 

24 adopted a concurrent resolution providing for 

25 adjournment sine die at the end of a Congress, 

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1 it shall be in order to move to proceed to con2 sider the Spending Review Legislation in the 

3 House of Representatives. Such a motion shall 

4 be in order in the legislative schedule within 

5 two legislative days after the day on which the 

6 proponent announces his intention to offer the 

7 motion. Such a motion shall not be in order 

8 after the House of Representatives has disposed 

9 of a motion to proceed with respect to that spe10 cial message. The previous question shall be 

11 considered as ordered on the motion to its 

12 adoption without intervening motion. A motion 

13 to reconsider the vote by which the motion is 

14 disposed of shall not be in order. 

15 ‘‘(D) CONSIDERATION.—The Spending Re16 view Legislation shall be considered as read. All 

17 points of order against Spending Review Legis18 lation and against its consideration are waived. 

19 The previous question shall be considered as or20 dered on an Spending Review Legislation to its 

21 passage without intervening motion except five 

22 hours of debate equally divided and controlled 

23 by the proponent and an opponent and one mo24 tion to limit debate on the Spending Review 

25 Legislation. A motion to reconsider the vote on 

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1 passage of the Spending Review Legislation 

2 shall not be in order. 

3 ‘‘(E) SENATE SPENDING REVIEW LEGISLA4 TION.—Spending Review Legislation received 

5 from the Senate shall not be referred to com6 mittee. 

7 ‘‘(2) CONSIDERATION IN THE SENATE.— 

8 ‘‘(A) MOTION TO PROCEED TO CONSIDER9 ATION.—A motion to proceed to the consider10 ation of Spending Review Legislation under this 

11 subsection in the Senate shall not be debatable. 

12 It shall not be in order to move to reconsider 

13 the vote by which the motion to proceed is 

14 agreed to or disagreed to. 

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

16 Senate on Spending Review Legislation under 

17 this subsection, and all debatable motions and 

18 appeals in connection therewith (including de19 bate pursuant to subparagraph (D)), shall not 

20 exceed 10 hours, equally divided and controlled 

21 in the usual form. 

22 ‘‘(C) APPEALS.—Debate in the Senate on 

23 any debatable motion or appeal in connection 

24 with Spending Review Legislation under this 

25 subsection shall be limited to not more than 1 

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1 hour, to be equally divided and controlled in the 

2 usual form. 

3 ‘‘(D) MOTION TO LIMIT DEBATE.—A mo4 tion in the Senate to further limit debate on 

5 Spending Review Legislation under this sub6 section is not debatable. 

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

8 recommit Spending Review Legislation under 

9 this subsection is not in order. 

10 ‘‘(F) CONSIDERATION OF THE HOUSE OF

11 REPRESENTATIVES SPENDING REVIEW LEGISLA12 TION.— 

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

14 received the House of Representatives com15 panion resolution to the Spending Review 

16 Legislation introduced in the Senate prior 

17 to the vote required under paragraph 

18 (1)(C), then the Senate may consider, and 

19 the vote under paragraph (1)(C) may 

20 occur on, the House of Representatives 

21 companion resolution. 

22 ‘‘(ii) PROCEDURE AFTER VOTE ON

23 SENATE SPENDING REVIEW LEGISLA24 TION.—If the Senate votes, pursuant to 

25 paragraph (1)(C), on the Spending Review 

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1 Legislation introduced in the Senate, then 

2 immediately following that vote, or upon 

3 receipt of the House of Representatives 

4 companion resolution, the House of Rep5 resentatives Spending Review Legislation 

6 shall be deemed to be considered, read the 

7 third time, and the vote on passage of the 

8 Senate resolution shall be considered to be 

9 the vote on the Spending Review Legisla10 tion received from the House of Represent11 atives. 

12 ‘‘(3) JURISDICTION.—The Committees on the 

13 Budget of the House of Representatives and Senate 

14 shall have exclusive jurisdiction over any Spending 

15 Review Legislation and all the provisions therein for 

16 all purposes of the rules of either House.’’. 

17 SEC. 304. LONG-TERM RECONCILIATION. 

18 (a) LONG-TERM RECONCILIATION.—Section 310 of 

19 the Congressional Budget Act of 1974 is amended as fol20 lows: 

21 ‘‘(h) LONG-TERM RECONCILIATION DIRECTIVES IN A

22 JOINT RESOLUTION ON THE BUDGET.— 

23 ‘‘(1) LONG-TERM RECONCILIATION DIREC24 TIVES.—In addition to a reconciliation measure as 

25 set forth in subsection (a), a joint resolution on the 

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1 budget for any fiscal year, to the extent necessary to 

2 effectuate the spending levels as set forth for such 

3 categories in section 301(a) (providing for long-term 

4 spending levels as a percentage of gross domestic 

5 product) of such resolution, shall— 

6 ‘‘(A) specify the total amount by which 

7 Medicare, Medicaid, the OASDI Trust Funds, 

8 and other direct spending outlays are to be re9 duced within the jurisdiction of a committee as 

10 a percentage of gross domestic product of such 

11 fiscal year; and 

12 ‘‘(B) direct that committee to determine 

13 and recommend changes to accomplish a reduc14 tion of such total amount for such categories as 

15 a percentage of gross domestic product. 

16 ‘‘(2) LIMITATION ON AMENDMENTS TO LONG17 TERM RECONCILIATION LEGISLATION.— 

18 ‘‘(A) It shall not be in order in the House 

19 of Representatives to consider any amendment 

20 to a reconciliation bill or reconciliation resolu21 tion if such amendment decreases outlay reduc22 tions below the level of such outlay reductions 

23 provided (for the fiscal years covered) in the 

24 reconciliation instructions which relate to such 

25 long-term reconciliation bill. 

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

2 to consider any amendment to a reconciliation 

3 bill or reconciliation resolution if such amend4 ment decreases outlay reductions below the level 

5 of such outlay reductions provided (for the fis6 cal years covered) in the reconciliation instruc7 tions which relate to such long-term reconcili8 ation bill. 

9 ‘‘(C) Subparagraphs (A) and (B) shall not 

10 apply if a declaration of war by the Congress is 

11 in effect. 

12 ‘‘(D) For purposes of this section, the lev13 els of outlays as a percentage of a gross domes14 tic product for a fiscal year shall be determined 

15 on the basis of estimates made by the Com16 mittee on the Budget of the House of Rep17 resentatives or of the Senate. 

18 ‘‘(E) The Committee on Rules of the 

19 House of Representatives may make in order 

20 amendments to achieve outlay reductions speci21 fied by reconciliation directives contained in a 

22 joint resolution on the budget if a committee or 

23 committees of the House of Representatives fail 

24 to submit recommended reductions in outlays as 

25 a percentage or gross domestic product to its 

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1 Committee on the Budget pursuant to its in2 struction. 

3 ‘‘(F) In the Senate, a motion to strike a 

4 provision shall always be in order. 

5 ‘‘(3) SUBJECT MATTER.—Subject matter in6 cluded in a long-term reconciliation bill may be any 

7 of the following: 

8 ‘‘(A) Any part of the Medicare program. 

9 ‘‘(B) Medicaid. 

10 ‘‘(C) The Old-Age, Survivors, and Dis11 ability Insurance Trust Fund. 

12 ‘‘(D) Other direct spending. 

13 ‘‘(4) APPLICATION.—Subsections (c), (d), and 

14 (g) shall not apply to long-term reconciliation meas15 ures reported under this subsection.’’. 

16 (b) CONFORMING AMENDMENT.—In section 310(b) 

17 of the Congressional Budget Act of 1974, strike ‘‘sub18 section (a)’’ and insert ‘‘subsections (a) and (h)’’. 

19 SEC. 305. LONG-TERM SPENDING INCREASE POINT OF 

20 ORDER. 

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

22 Budget Act of 1974 (as amended by section 303) is fur23 ther amended by adding at the end the following new sec24 tion: 

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1 ‘‘LONG-TERM SPENDING INCREASE POINT OF ORDER

2 ‘‘SEC. 320. (a) CONGRESSIONAL BUDGET OFFICE

3 ANALYSIS OF PROPOSALS.—The Director of the Congres4 sional Budget Office shall, to the extent practicable, pre5 pare for each bill and joint resolution reported from com6 mittee (except measures within the jurisdiction of the 

7 Committee on Appropriations), and amendments thereto 

8 and conference reports thereon, an estimate of whether 

9 the measure causes, relative to current law, a net increase 

10 in direct spending in excess of $5,000,000,000 in any of 

11 the four 10-year periods beginning in fiscal year 2019 

12 through fiscal year 2058. 

13 ‘‘(b) IN THE SENATE.— 

14 ‘‘(1) POINT OF ORDER.—It shall not be in 

15 order in the Senate to consider any bill, joint resolu16 tion, amendment, motion, or conference report that 

17 causes a net increase in deficits in excess of 

18 $5,000,000,000 in any of the four 10-year periods 

19 beginning in 2019 through 2058. 

20 ‘‘(2) SUPERMAJORITY WAIVER AND APPEAL.— 

21 ‘‘(A) This section may be waived or sus22 pended only by the affirmative vote of three23 fifths of the Members, duly chosen and sworn. 

24 ‘‘(B) An affirmative vote of three-fifths of 

25 the Members, duly chosen and sworn, shall be 

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1 required to sustain an appeal of the ruling of 

2 the Chair on a point of order raised under this 

3 section. 

4 ‘‘(c) IN THE HOUSE OF REPRESENTATIVES.— 

5 ‘‘(1) POINT OF ORDER.—It shall not be in 

6 order in the House of Representatives to consider 

7 any bill, joint resolution, amendment, motion, or 

8 conference report that causes a net increase in defi9 cits in excess of $5,000,000,000 in any of the four 

10 10-year periods beginning in 2019 through 2058. 

11 ‘‘(2) SUPERMAJORITY WAIVER AND APPEAL.— 

12 ‘‘(A) This section may be waived or sus13 pended only by the affirmative vote of three14 fifths of the Members, duly chosen and sworn. 

15 ‘‘(B) An affirmative vote of two-thirds of 

16 the Members, duly chosen and sworn, shall be 

17 required to sustain an appeal of the ruling of 

18 the Chair on a point of order raised under this 

19 section. 

20 ‘‘(d) DETERMINATIONS OF BUDGET LEVELS.—For 

21 purposes of this section, the levels of net deficit increases 

22 shall be determined on the basis of estimates provided by 

23 the chairmen of the Senate and House Committees on the 

24 Budget, as applicable.’’. 

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1 (b) CONFORMING AMENDMENT.—The table of con2 tents set forth in section 1(b) of the Congressional Budget 

3 and Impoundment Control Act of 1974 is amended by in4 serting after the item relating to section 319 the following 

5 new item: 

‘‘Sec. 320. Long-term spending increase point of order.’’. 

6 TITLE IV—SPENDING REFORM 

7 Subtitle A—Federal Program 

8 Sunset 

9 SEC. 400. SHORT TITLE. 

10 This subtitle may be cited as the ‘‘Federal Program 

11 Sunset Act of 2009’’. 

12 SEC. 401. REVIEW AND ABOLISHMENT OF FEDERAL AGEN13 CIES. 

14 (a) SCHEDULE FOR REVIEW.—Not later than one 

15 year after the date of the enactment of this Act, the Fed16 eral Agency Sunset Commission established under section 

17 402 (in this subtitle referred to as the ‘‘Commission’’) 

18 shall submit to Congress a schedule for review by the 

19 Commission, at least once every 12 years (or less, if deter20 mined appropriate by Congress), of the abolishment or re21 organization of each agency. 

22 (b) REVIEW OF AGENCIES PERFORMING RELATED

23 FUNCTIONS.—In determining the schedule for review of 

24 agencies under subsection (a), the Commission shall pro25 vide that agencies that perform similar or related funcmstockstill on DSKH9S0YB1PROD with BILLS

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1 tions be reviewed concurrently to promote efficiency and 

2 consolidation. 

3 (c) ABOLISHMENT OF AGENCIES.— 

4 (1) IN GENERAL.—Each agency shall— 

5 (A) be reviewed according to the schedule 

6 created pursuant to this section; and 

7 (B) be abolished not later than one year 

8 after the date that the Commission completes 

9 its review of the agency pursuant to such sched10 ule, unless the agency is reauthorized by the 

11 Congress. 

12 (2) EXTENSION.—The deadline for abolishing 

13 an agency may be extended for an additional two 

14 years after the date described in paragraph (1)(B) 

15 if the Congress enacts legislation extending such 

16 deadline by a vote of a super majority of the House 

17 of Representatives and the Senate. 

18 SEC. 402. ESTABLISHMENT OF COMMISSION. 

19 (a) ESTABLISHMENT.—There is established a com20 mission to be known as the ‘‘Federal Agency Sunset Com21 mission’’. 

22 (b) COMPOSITION.—The Commission shall be com23 posed of 12 members (in this subtitle referred to as the 

24 ‘‘members’’) who shall be appointed as follows: 

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1 (1) Six members shall be appointed by the 

2 Speaker of the House of Representatives, with mi3 nority members appointed with the consent of the 

4 minority leader of the House of Representatives. 

5 (2) Six members shall be appointed by the ma6 jority leader of the Senate, with minority members 

7 appointed with the consent of the minority leader of 

8 the Senate. 

9 (c) QUALIFICATIONS OF MEMBERS.— 

10 (1) IN GENERAL.—(A) Of the members ap11 pointed under subsection (b)(1), four shall be mem12 bers of the House of Representatives (not more than 

13 two of whom may be of the same political party), 

14 and two shall be an individual described in subpara15 graph (C). 

16 (B) Of the members appointed under subsection 

17 (b)(2), four shall be members of the Senate (not 

18 more than two of whom may be of the same political 

19 party) and two shall be an individual described in 

20 subparagraph (C). 

21 (C) An individual under this subparagraph is 

22 an individual— 

23 (i) who is not a member of Congress; and 

24 (ii) with expertise in the operation and ad25 ministration of Government programs. 

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1 (2) CONTINUATION OF MEMBERSHIP.—If a 

2 member was appointed to the Commission as a 

3 Member of Congress and the member ceases to be 

4 a Member of Congress, that member shall cease to 

5 be a member of the Commission. The validity of any 

6 action of the Commission shall not be affected as a 

7 result of a member becoming ineligible to serve as 

8 a member for the reasons described in this para9 graph. 

10 (d) INITIAL APPOINTMENTS.—All initial appoint11 ments to the Commission shall be made not later than 90 

12 days after the date of the enactment of this Act. 

13 (e) CHAIRMAN; VICE-CHAIRMAN.— 

14 (1) INITIAL CHAIRMAN.—An individual shall be 

15 designated by the Speaker of the House of Rep16 resentatives from among the members initially ap17 pointed under subsection (b)(1) to serve as chairman 

18 of the Commission for a period of 2 years. 

19 (2) INITIAL VICE-CHAIRMAN.—An individual 

20 shall be designated by the majority leader of the 

21 Senate from among the individuals initially ap22 pointed under subsection (b)(2) to serve as vice23 chairman of the Commission for a period of two 

24 years. 

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1 (3) ALTERNATE APPOINTMENTS OF CHAIRMEN

2 AND VICE-CHAIRMEN.—Following the termination of 

3 the two-year period described in paragraphs (1) and 

4 (2), the Speaker and the majority leader shall alter5 nate every two years in appointing the chairman and 

6 vice-chairman of the Commission. 

7 (f) TERMS OF MEMBERS.— 

8 (1) MEMBERS OF CONGRESS.—Each member 

9 appointed to the Commission who is a member of 

10 Congress shall serve for a term of six years, except 

11 that, of the members first appointed under para12 graphs (1) and (2) of subsection (b), 2 members 

13 shall be appointed to serve a term of three years 

14 under each such paragraph. 

15 (2) OTHER MEMBERS.—Each member of the 

16 Commission who is not a member of Congress shall 

17 serve for a term of three years. 

18 (3) TERM LIMITS.—(A) A member of the Com19 mission who is a member of Congress and who 

20 serves more than three years of a term may not be 

21 appointed to another term as a member. 

22 (B) A member of the Commission who is not a 

23 member of Congress and who serves as a member of 

24 the Commission for more than 56 months may not 

25 be appointed to another term as a member. 

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1 (g) POWERS OF COMMISSION.— 

2 (1) HEARINGS AND SESSIONS.—The Commis3 sion may, for the purpose of carrying out this sub4 title, hold such hearings, sit and act at such times 

5 and places, take such testimony, and receive such 

6 evidence as the Commission considers appropriate. 

7 The Commission may administer oaths to witnesses 

8 appearing before it. 

9 (2) OBTAINING INFORMATION.—The Commis10 sion may secure directly from any department or 

11 agency of the United States information necessary 

12 to enable it to carry out its duties under this sub13 title. Upon request of the chairman, the head of that 

14 department or agency shall furnish that information 

15 to the Commission in a full and timely manner. 

16 (3) SUBPOENA POWER.—(A) The Commission 

17 may issue a subpoena to require the attendance and 

18 testimony of witnesses and the production of evi19 dence relating to any matter under investigation by 

20 the Commission. 

21 (B) If a person refuses to obey an order or sub22 poena of the Commission that is issued in connection 

23 with a Commission proceeding, the Commission may 

24 apply to the United States district court in the judi25 cial district in which the proceeding is held for an 

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1 order requiring the person to comply with the sub2 poena or order. 

3 (4) IMMUNITY.—The Commission is an agency 

4 of the United States for purposes of part V of title 

5 18, United States Code (relating to immunity of wit6 nesses). 

7 (5) CONTRACT AUTHORITY.—The Commission 

8 may contract with and compensate government and 

9 private agencies or persons for services without re10 gard to section 3709 of the Revised Statutes (41 

11 U.S.C. 5). 

12 (h) COMMISSION PROCEDURES.— 

13 (1) MEETINGS.—The Commission shall meet at 

14 the call of the chairman. 

15 (2) QUORUM.—Seven members of the Commis16 sion shall constitute a quorum but a lesser number 

17 may hold hearings. 

18 (i) PERSONNEL MATTERS.— 

19 (1) COMPENSATION.—Members shall not be 

20 paid by reason of their service as members. 

21 (2) TRAVEL EXPENSES.—Each member shall 

22 receive travel expenses, including per diem in lieu of 

23 subsistence, in accordance with sections 5702 and 

24 5703 of title 5, United States Code. 

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1 (3) DIRECTOR.—The Commission shall have a 

2 Director who shall be appointed by the chairman. 

3 The Director shall be paid at a rate not to exceed 

4 the maximum rate of basic pay payable for GS–15 

5 of the General Schedule. 

6 (4) STAFF.—The Director may appoint and fix 

7 the pay of additional personnel as the director con8 siders appropriate. 

9 (5) APPLICABILITY OF CERTAIN CIVIL SERVICE

10 LAWS.—The director and staff of the Commission 

11 shall be appointed subject to the provisions of title 

12 5, United States Code, governing appointments in 

13 the competitive service, and shall be paid in accord14 ance with the provisions of chapter 51 and sub15 chapter III of chapter 53 of that title relating to 

16 classification and General Schedule pay rates. 

17 (j) OTHER ADMINISTRATIVE MATTERS.— 

18 (1) POSTAL AND PRINTING SERVICES.—The 

19 Commission may use the United States mails and 

20 obtain printing and binding services in the same 

21 manner and under the same conditions as other de22 partments and agencies of the United States. 

23 (2) ADMINISTRATIVE SUPPORT SERVICES.— 

24 Upon the request of the Commission, the Adminis25 trator of General Services shall provide to the Commstockstill on DSKH9S0YB1PROD with BILLS

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1 mission, on a reimbursable basis, the administrative 

2 support services necessary for the Commission to 

3 carry out its duties under this subtitle. 

4 (3) EXPERTS AND CONSULTANTS.—The Com5 mission may procure temporary and intermittent 

6 services under section 3109(b) of title 5, United 

7 States Code. 

8 (k) SUNSET OF COMMISSION.—The Commission shall 

9 terminate on December 31, 2033, unless reauthorized by 

10 Congress. 

11 SEC. 403. REVIEW OF EFFICIENCY AND NEED FOR FEDERAL 

12 AGENCIES. 

13 (a) IN GENERAL.—The Commission shall review the 

14 efficiency and public need for each agency in accordance 

15 with the criteria described in section 404. 

16 (b) RECOMMENDATIONS; REPORT TO CONGRESS.— 

17 The Commission shall submit to Congress and the Presi18 dent not later than September 1 of each year a report 

19 containing— 

20 (1) an analysis of the efficiency of operation 

21 and public need for each agency to be reviewed in 

22 the year in which the report is submitted pursuant 

23 to the schedule submitted to Congress under section 

24 2; 

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1 (2) recommendations on whether each such 

2 agency should be abolished or reorganized; 

3 (3) recommendations on whether the functions 

4 of any other agencies should be consolidated, trans5 ferred, or reorganized in an agency to be reviewed 

6 in the year in which the report is submitted pursu7 ant to the schedule submitted to Congress under 

8 section 2; and 

9 (4) recommendations for administrative and 

10 legislative action with respect to each such agency, 

11 but not including recommendations for appropriation 

12 levels. 

13 (c) DRAFT LEGISLATION.—The Commission shall 

14 submit to Congress and the President not later than Sep15 tember 1 of each year a draft of legislation to carry out 

16 the recommendations of the Commission under subsection 

17 (b). 

18 (d) INFORMATION GATHERING.—The Commission 

19 shall— 

20 (1) conduct public hearings on the abolishment 

21 of each agency reviewed under subsection (b); 

22 (2) provide an opportunity for public comment 

23 on the abolishment of each such agency; 

24 (3) require the agency to provide information to 

25 the Commission as appropriate; and 

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1 (4) consult with the Government Accountability 

2 Office, the Office of Management and Budget, the 

3 Congressional Budget Office, and the chairman and 

4 ranking minority members of the committees of Con5 gress with oversight responsibility for the agency 

6 being reviewed regarding the operation of the agen7 cy. 

8 (e) USE OF PROGRAM INVENTORY.—The Commis9 sion shall use the program inventory prepared under sec10 tion 9 in reviewing the efficiency and public need for each 

11 agency under subsection (a). 

12 SEC. 404. CRITERIA FOR REVIEW. 

13 The Commission shall evaluate the efficiency and 

14 public need for each agency pursuant to section 403 using 

15 the following criteria: 

16 (1) The effectiveness, and the efficiency of the 

17 operation of, the programs carried out by each such 

18 agency. 

19 (2) Whether the programs carried out by the 

20 agency are cost effective. 

21 (3) Whether the agency has acted outside the 

22 scope of its original authority, and whether the origi23 nal objectives of the agency have been achieved. 

24 (4) Whether less restrictive or alternative meth25 ods exist to carry out the functions of the agency. 

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1 (5) The extent to which the jurisdiction of, and 

2 the programs administered by, the agency duplicate 

3 or conflict with the jurisdiction and programs of 

4 other agencies. 

5 (6) The potential benefits of consolidating pro6 grams administered by the agency with similar or 

7 duplicative programs of other agencies, and the po8 tential for consolidating such programs. 

9 (7) The number and types of beneficiaries or 

10 persons served by programs carried out by the agen11 cy. 

12 (8) The extent to which any trends, develop13 ments, and emerging conditions that are likely to af14 fect the future nature and extent of the problems or 

15 needs that the programs carried out by the agency 

16 are intended to address. 

17 (9) The extent to which the agency has com18 plied with the provisions contained in the Govern19 ment Performance and Results Act of 1993 (Public 

20 Law 103–62; 107 Stat. 285). 

21 (10) The promptness and effectiveness with 

22 which the agency seeks public input and input from 

23 State and local governments on the efficiency and ef24 fectiveness of the performance of the functions of 

25 the agency. 

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1 (11) Whether the agency has worked to enact 

2 changes in the law that are intended to benefit the 

3 public as a whole rather than the specific business, 

4 institution, or individuals that the agency regulates. 

5 (12) The extent to which the agency has en6 couraged participation by the public as a whole in 

7 making its rules and decisions rather than encour8 aging participation solely by those it regulates. 

9 (13) The extent to which the public participa10 tion in rulemaking and decision making of the agen11 cy has resulted in rules and decisions compatible 

12 with the objectives of the agency. 

13 (14) The extent to which the agency complies 

14 with section 552 of title 5, United States Code (com15 monly known as the ‘‘Freedom of Information Act’’). 

16 (15) The extent to which the agency complies 

17 with equal employment opportunity requirements re18 garding equal employment opportunity. 

19 (16) The extent of the regulatory, privacy, and 

20 paperwork impacts of the programs carried out by 

21 the agency. 

22 (17) The extent to which the agency has coordi23 nated with State and local governments in per24 forming the functions of the agency. 

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1 (18) The potential effects of abolishing the 

2 agency on State and local governments. 

3 (19) The extent to which changes are necessary 

4 in the authorizing statutes of the agency in order 

5 that the functions of the agency can be performed 

6 in the most efficient and effective manner. 

7 SEC. 405. COMMISSION OVERSIGHT. 

8 (a) MONITORING OF IMPLEMENTATION OF REC9 OMMENDATIONS.—The Commission shall monitor imple10 mentation of laws enacting provisions that incorporate rec11 ommendations of the Commission with respect to abolish12 ment or reorganization of agencies. 

13 (b) MONITORING OF OTHER RELEVANT LEGISLA14 TION.— 

15 (1) IN GENERAL.—The Commission shall review 

16 and report to Congress on all legislation introduced 

17 in either house of Congress that establishes— 

18 (A) a new agency; or 

19 (B) a new program to be carried out by an 

20 existing agency. 

21 (2) REPORT TO CONGRESS.—The Commission 

22 shall include in each report submitted to Congress 

23 under paragraph (1) an analysis of whether— 

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1 (A) the functions of the proposed agency 

2 or program could be carried out by one or more 

3 existing agencies; 

4 (B) the functions of the proposed agency 

5 or program could be carried out in a less re6 strictive manner than the manner proposed in 

7 the legislation; and 

8 (C) the legislation provides for public input 

9 regarding the performance of functions by the 

10 proposed agency or program. 

11 SEC. 406. RULEMAKING AUTHORITY. 

12 The Commission may promulgate such rules as nec13 essary to carry out this subtitle. 

14 SEC. 407. RELOCATION OF FEDERAL EMPLOYEES. 

15 If the position of an employee of an agency is elimi16 nated as a result of the abolishment of an agency in ac17 cordance with this subtitle, there shall be a reasonable ef18 fort to relocate such employee to a position within another 

19 agency. 

20 SEC. 408. PROGRAM INVENTORY. 

21 (a) PREPARATION.—The Comptroller General and 

22 the Director of the Congressional Budget Office, in co23 operation with the Director of the Congressional Research 

24 Service, shall prepare an inventory of Federal programs 

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1 (in this subtitle referred to as the ‘‘program inventory’’) 

2 within each agency. 

3 (b) PURPOSE.—The purpose of the program inven4 tory is to advise and assist the Congress and the Commis5 sion in carrying out the requirements of this subtitle. Such 

6 inventory shall not in any way bind the committees of the 

7 Senate or the House of Representatives with respect to 

8 their responsibilities under this subtitle and shall not in9 fringe on the legislative and oversight responsibilities of 

10 such committees. The Comptroller General shall compile 

11 and maintain the inventory and the Director of the Con12 gressional Budget Office shall provide budgetary informa13 tion for inclusion in the inventory. 

14 (c) INVENTORY CONTENT.—The program inventory 

15 shall set forth for each program each of the following mat16 ters: 

17 (1) The specific provision or provisions of law 

18 authorizing the program. 

19 (2) The committees of the Senate and the 

20 House of Representatives which have legislative or 

21 oversight jurisdiction over the program. 

22 (3) A brief statement of the purpose or pur23 poses to be achieved by the program. 

24 (4) The committees which have jurisdiction over 

25 legislation providing new budget authority for the 

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1 program, including the appropriate subcommittees of 

2 the Committees on Appropriations of the Senate and 

3 the House of Representatives. 

4 (5) The agency and, if applicable, the subdivi5 sion thereof responsible for administering the pro6 gram. 

7 (6) The grants-in-aid, if any, provided by such 

8 program to State and local governments. 

9 (7) The next reauthorization date for the pro10 gram. 

11 (8) A unique identification number which links 

12 the program and functional category structure. 

13 (9) The year in which the program was origi14 nally established and, where applicable, the year in 

15 which the program expires. 

16 (10) Where applicable, the year in which new 

17 budget authority for the program was last author18 ized and the year in which current authorizations of 

19 new budget authority expire. 

20 (d) BUDGET AUTHORITY.—The report also shall set 

21 forth for each program whether the new budget authority 

22 provided for such programs is— 

23 (1) authorized for a definite period of time; 

24 (2) authorized in a specific dollar amount but 

25 without limit of time; 

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1 (3) authorized without limit of time or dollar 

2 amounts; 

3 (4) not specifically authorized; or 

4 (5) permanently provided, 

5 as determined by the Director of the Congressional Budg6 et Office. 

7 (e) CBO INFORMATION.—For each program or group 

8 of programs, the program inventory also shall include in9 formation prepared by the Director of the Congressional 

10 Budget Office indicating each of the following matters: 

11 (1) The amounts of new budget authority au12 thorized and provided for the program for each of 

13 the preceding four fiscal years and, where applicable, 

14 the four succeeding fiscal years. 

15 (2) The functional and subfunctional category 

16 in which the program is presently classified and was 

17 classified under the fiscal year 2010 budget. 

18 (3) The identification code and title of the ap19 propriation account in which budget authority is 

20 provided for the program. 

21 (f) MUTUAL EXCHANGE OF INFORMATION.—The 

22 Government Accountability Office, the Congressional Re23 search Service, and the Congressional Budget Office shall 

24 permit the mutual exchange of available information in 

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1 their possession which aids in the compilation of the pro2 gram inventory. 

3 (g) ASSISTANCE BY EXECUTIVE BRANCH.—The Of4 fice of Management and Budget, and the Executive agen5 cies and the subdivisions thereof shall, to the extent nec6 essary and possible, provide the Government Account7 ability Office with assistance requested by the Comptroller 

8 General in the compilation of the program inventory. 

9 SEC. 409. DEFINITION OF AGENCY. 

10 As used in this subtitle, the term ‘‘agency’’ has the 

11 meaning given that term by section 105 of title 5, United 

12 States Code, except that such term includes an advisory 

13 committee as that term is defined in section 102(2) of the 

14 Federal Advisory Committee Act. 

15 Subtitle B—Legislative Line-Item 

16 Veto 

17 SEC. 410. SHORT TITLE. 

18 This subtitle may be cited as the ‘‘Legislative Line19 Item Veto Act of 2009’’. 

20 SEC. 411. LEGISLATIVE LINE-ITEM VETO. 

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

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

23 621 et seq.) is amended by striking all of part B (except 

24 for sections 1016 and 1013, which are redesignated as secmstockstill on DSKH9S0YB1PROD with BILLS

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1 tions 1020 and 1021, respectively) and part C and insert2 ing the following: 

3 ‘‘PART B—LEGISLATIVE LINE-ITEM VETO

4 ‘‘LINE-ITEM VETO AUTHORITY

5 ‘‘SEC. 1011. (a) PROPOSED CANCELLATIONS.—With6 in 45 calendar days after the enactment of any bill or joint 

7 resolution providing any discretionary budget authority, 

8 item of direct spending, limited tariff benefit, or targeted 

9 tax benefit, the President may propose, in the manner pro10 vided in subsection (b), the cancellation of any dollar 

11 amount of such discretionary budget authority, item of di12 rect spending, or targeted tax benefit. If the 45 calendar13 day period expires during a period where either House of 

14 Congress stands adjourned sine die at the end of a Con15 gress or for a period greater than 45 calendar days, the 

16 President may propose a cancellation under this section 

17 and transmit a special message under subsection (b) on 

18 the first calendar day of session following such a period 

19 of adjournment. 

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

21 ‘‘(1) SPECIAL MESSAGE.— 

22 ‘‘(A) IN GENERAL.—The President may 

23 transmit to the Congress a special message pro24 posing to cancel any dollar amounts of discre25 tionary budget authority, items of direct spendmstockstill on DSKH9S0YB1PROD with BILLS

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1 ing, limited tariff benefits, or targeted tax bene2 fits. 

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

4 Each special message shall specify, with respect 

5 to the discretionary budget authority, items of 

6 direct spending proposed, limited tariff benefits, 

7 or targeted tax benefits to be canceled— 

8 ‘‘(i) the dollar amount of discretionary 

9 budget authority, the specific item of direct 

10 spending (that OMB, after consultation 

11 with CBO, estimates to increase budget 

12 authority or outlays as required by section 

13 1017(9)), the limited tariff benefit, or the 

14 targeted tax benefit that the President pro15 poses be canceled; 

16 ‘‘(ii) any account, department, or es17 tablishment of the Government to which 

18 such discretionary budget authority is 

19 available for obligation, and the specific 

20 project or governmental functions involved; 

21 ‘‘(iii) the reasons why such discre22 tionary budget authority, item of direct 

23 spending, limited tariff benefit, or targeted 

24 tax benefit should be canceled; 

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1 ‘‘(iv) to the maximum extent prac2 ticable, the estimated fiscal, economic, and 

3 budgetary effect (including the effect on 

4 outlays and receipts in each fiscal year) of 

5 the proposed cancellation; 

6 ‘‘(v) to the maximum extent prac7 ticable, all facts, circumstances, and con8 siderations relating to or bearing upon the 

9 proposed cancellation and the decision to 

10 propose the cancellation, and the estimated 

11 effect of the proposed cancellation upon 

12 the objects, purposes, or programs for 

13 which the discretionary budget authority, 

14 item of direct spending, limited tariff ben15 efit, or the targeted tax benefit is provided; 

16 ‘‘(vi) a numbered list of cancellations 

17 to be included in an approval bill that, if 

18 enacted, cancels discretionary budget au19 thority, items of direct spending, limited 

20 tariff benefit, or targeted tax benefits pro21 posed in that special message; and 

22 ‘‘(vii) if the special message is trans23 mitted subsequent to or at the same time 

24 as another special message, a detailed ex25 planation why the proposed cancellations 

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1 are not substantially similar to any other 

2 proposed cancellation in such other mes3 sage. 

4 ‘‘(C) DUPLICATIVE PROPOSALS PROHIB5 ITED.—The President may not propose to can6 cel the same or substantially similar discre7 tionary budget authority, item of direct spend8 ing, limited tariff benefit, or targeted tax ben9 efit more than one time under this Act. 

10 ‘‘(D) MAXIMUM NUMBER OF SPECIAL MES11 SAGES.—The President may not transmit to the 

12 Congress more than 5 special messages under 

13 this subsection related to any bill or joint reso14 lution described in subsection (a), but may 

15 transmit not more than 10 special messages for 

16 any omnibus budget reconciliation or appropria17 tion measure. 

18 ‘‘(2) ENACTMENT OF APPROVAL BILL.— 

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

20 budget authority, items of direct spending, lim21 ited tariff benefit, or targeted tax benefits 

22 which are canceled pursuant to enactment of a 

23 bill as provided under this section shall be dedi24 cated only to reducing the deficit or increasing 

25 the surplus. 

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1 ‘‘(B) ADJUSTMENT OF LEVELS IN THE

2 JOINT RESOLUTION ON THE BUDGET.—Not 

3 later than 5 days after the date of enactment 

4 of an approval bill as provided under this sec5 tion, the chairs of the Committees on the Budg6 et of the Senate and the House of Representa7 tives shall revise allocations and aggregates and 

8 other appropriate levels under the appropriate 

9 joint resolution on the budget to reflect the can10 cellation, and the applicable committees shall 

11 report revised suballocations pursuant to sec12 tion 302(b), as appropriate. 

13 ‘‘(C) ADJUSTMENTS TO STATUTORY LIM14 ITS.—After enactment of an approval bill as 

15 provided under this section, the Office of Man16 agement and Budget shall revise applicable lim17 its under the Balanced Budget and Emergency 

18 Deficit Control Act of 1985, as appropriate. 

19 ‘‘(D) TRUST FUNDS AND SPECIAL

20 FUNDS.—Notwithstanding subparagraph (A), 

21 nothing in this part shall be construed to re22 quire or allow the deposit of amounts derived 

23 from a trust fund or special fund which are 

24 canceled pursuant to enactment of a bill as pro25 vided under this section to any other fund. 

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1 ‘‘PROCEDURES FOR EXPEDITED CONSIDERATION

2 ‘‘SEC. 1012. (a) EXPEDITED CONSIDERATION.— 

3 ‘‘(1) IN GENERAL.—The majority leader or mi4 nority leader of each House or his designee shall (by 

5 request) introduce an approval bill as defined in sec6 tion 1017 not later than the third day of session of 

7 that House after the date of receipt of a special mes8 sage transmitted to the Congress under section 

9 1011(b). If the bill is not introduced as provided in 

10 the preceding sentence in either House, then, on the 

11 fourth day of session of that House after the date 

12 of receipt of the special message, any Member of 

13 that House may introduce the bill. 

14 ‘‘(2) CONSIDERATION IN THE HOUSE OF REP15 RESENTATIVES.— 

16 ‘‘(A) REFERRAL AND REPORTING.—Any 

17 committee of the House of Representatives to 

18 which an approval bill is referred shall report it 

19 to the House of Representatives without amend20 ment not later than the seventh legislative day 

21 after the date of its introduction. If a com22 mittee fails to report the bill within that period 

23 or the House of Representatives has adopted a 

24 joint resolution providing for adjournment sine 

25 die at the end of a Congress, such committee 

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1 shall be automatically discharged from further 

2 consideration of the bill and it shall be placed 

3 on the appropriate calendar. 

4 ‘‘(B) PROCEEDING TO CONSIDERATION.— 

5 After an approval bill is reported by or dis6 charged from committee or the House of Rep7 resentatives has adopted a joint resolution pro8 viding for adjournment sine die at the end of a 

9 Congress, it shall be in order to move to pro10 ceed to consider the approval bill in the House 

11 of Representatives within two legislative days 

12 after the day on which the proponent announces 

13 his intention to offer the motion. Such a motion 

14 shall not be in order after the House of Rep15 resentatives has disposed of a motion to proceed 

16 with respect to that special message. The pre17 vious question shall be considered as ordered on 

18 the motion to its adoption without intervening 

19 motion. A motion to reconsider the vote by 

20 which the motion is disposed of shall not be in 

21 order. 

22 ‘‘(C) CONSIDERATION.—The approval bill 

23 shall be considered as read. All points of order 

24 against an approval bill and against its consid25 eration are waived. The previous question shall 

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1 be considered as ordered on an approval bill to 

2 its passage without intervening motion except 

3 five hours of debate equally divided and con4 trolled by the proponent and an opponent and 

5 one motion to limit debate on the bill. A motion 

6 to reconsider the vote on passage of the bill 

7 shall not be in order. 

8 ‘‘(D) SENATE BILL.—An approval bill re9 ceived from the Senate shall not be referred to 

10 committee. 

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

12 ‘‘(A) MOTION TO PROCEED TO CONSIDER13 ATION.—A motion to proceed to the consider14 ation of a bill under this subsection in the Sen15 ate shall not be debatable. It shall not be in 

16 order to move to reconsider the vote by which 

17 the motion to proceed is agreed to or disagreed 

18 to. 

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

20 Senate on a bill under this subsection, and all 

21 debatable motions and appeals in connection 

22 therewith (including debate pursuant to sub23 paragraph (D)), shall not exceed 10 hours, 

24 equally divided and controlled in the usual 

25 form. 

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1 ‘‘(C) APPEALS.—Debate in the Senate on 

2 any debatable motion or appeal in connection 

3 with a bill under this subsection shall be limited 

4 to not more than 1 hour, to be equally divided 

5 and controlled in the usual form. 

6 ‘‘(D) MOTION TO LIMIT DEBATE.—A mo7 tion in the Senate to further limit debate on a 

8 bill under this subsection is not debatable. 

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

10 recommit a bill under this subsection is not in 

11 order. 

12 ‘‘(F) CONSIDERATION OF THE HOUSE OF

13 REPRESENTATIVES BILL.— 

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

15 received the House of Representatives com16 panion bill to the bill introduced in the 

17 Senate prior to the vote required under 

18 paragraph (1)(C), then the Senate may 

19 consider, and the vote under paragraph 

20 (1)(c) may occur on, the House of Rep21 resentatives companion bill. 

22 ‘‘(ii) PROCEDURE AFTER VOTE ON

23 SENATE BILL.—If the Senate votes, pursu24 ant to paragraph (1)(C), on the bill intro25 duced in the Senate, then immediately folmstockstill on DSKH9S0YB1PROD with BILLS

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1 lowing that vote, or upon receipt of the 

2 House of Representatives companion bill, 

3 the House of Representatives bill shall be 

4 deemed to be considered, read the third 

5 time, and the vote on passage of the Sen6 ate bill shall be considered to be the vote 

7 on the bill received from the House of Rep8 resentatives. 

9 ‘‘(b) AMENDMENTS PROHIBITED.—No amendment 

10 to, or motion to strike a provision from, a bill considered 

11 under this section shall be in order in either the Senate 

12 or the House of Representatives. 

13 ‘‘PRESIDENTIAL DEFERRAL AUTHORITY

14 ‘‘SEC. 1013. (a) TEMPORARY PRESIDENTIAL AU15 THORITY TO WITHHOLD DISCRETIONARY BUDGET AU16 THORITY.— 

17 ‘‘(1) IN GENERAL.—At the same time as the 

18 President transmits to the Congress a special mes19 sage pursuant to section 1011(b), the President may 

20 direct that any dollar amount of discretionary budg21 et authority to be canceled in that special message 

22 shall not be made available for obligation for a pe23 riod not to exceed 45 calendar days from the date 

24 the President transmits the special message to the 

25 Congress. 

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

2 shall make any dollar amount of discretionary budg3 et authority deferred pursuant to paragraph (1) 

4 available at a time earlier than the time specified if 

5 he determines that continuation of the deferral not 

6 further the purposes of this Act. 

7 ‘‘(b) TEMPORARY PRESIDENTIAL AUTHORITY TO

8 SUSPEND DIRECT SPENDING.— 

9 ‘‘(1) IN GENERAL.—At the same time as the 

10 President transmits to the Congress a special mes11 sage pursuant to section 1011(b), the President may 

12 suspend the implementation of any item of direct 

13 spending proposed to be canceled in that special 

14 message for a period not to exceed 45 calendar days 

15 from the date the President transmits the special 

16 message to the Congress. 

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

18 shall terminate the suspension of any item of direct 

19 spending at a time earlier than the time specified if 

20 he determines that continuation of the suspension 

21 will not further the purposes of this Act. 

22 ‘‘(c) TEMPORARY PRESIDENTIAL AUTHORITY TO

23 SUSPEND A LIMITED TARIFF BENEFIT.— 

24 ‘‘(1) IN GENERAL.—At the same time as the 

25 President transmits to the Congress a special mesmstockstill on DSKH9S0YB1PROD with BILLS

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1 sage pursuant to section 1011(b), the President may 

2 suspend the implementation of any limited tariff 

3 benefit proposed to be canceled in that special mes4 sage for a period not to exceed 45 calendar days 

5 from the date the President transmits the special 

6 message to the Congress. 

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

8 shall terminate the suspension of any limited tariff 

9 benefit at a time earlier than the time specified if he 

10 determines that continuation of the suspension will 

11 not further the purposes of this Act. 

12 ‘‘(d) TEMPORARY PRESIDENTIAL AUTHORITY TO

13 SUSPEND A TARGETED TAX BENEFIT.— 

14 ‘‘(1) IN GENERAL.—At the same time as the 

15 President transmits to the Congress a special mes16 sage pursuant to section 1011(b), the President may 

17 suspend the implementation of any targeted tax ben18 efit proposed to be repealed in that special message 

19 for a period not to exceed 45 calendar days from the 

20 date the President transmits the special message to 

21 the Congress. 

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

23 shall terminate the suspension of any targeted tax 

24 benefit at a time earlier than the time specified if he 

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1 determines that continuation of the suspension will 

2 not further the purposes of this Act. 

3 ‘‘(e) EXTENSION OF 45-DAY PERIOD.—The Presi4 dent may transmit to the Congress not more than one sup5 plemental special message to extend the period to suspend 

6 the implementation of any discretionary budget authority, 

7 item of direct spending, limited tariff benefit, or targeted 

8 tax benefit, as applicable, by an additional 45 calendar 

9 days. Any such supplemental message may not be trans10 mitted to the Congress before the 40th day of the 45-day 

11 period set forth in the preceding message or later than 

12 the last day of such period. 

13 ‘‘IDENTIFICATION OF TARGETED TAX BENEFITS

14 ‘‘SEC. 1014. (a) STATEMENT.—The chairman of the 

15 Committee on Ways and Means of the House of Rep16 resentatives and the chairman of the Committee on Fi17 nance of the Senate acting jointly (hereafter in this sub18 section referred to as the ‘chairmen’) shall review any rev19 enue or reconciliation bill or joint resolution which in20 cludes any amendment to the Internal Revenue Code of 

21 1986 that is being prepared for filing by a committee of 

22 conference of the two Houses, and shall identify whether 

23 such bill or joint resolution contains any targeted tax ben24 efits. The chairmen shall provide to the committee of con25 ference a statement identifying any such targeted tax ben26 efits or declaring that the bill or joint resolution does not 

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1 contain any targeted tax benefits. Any such statement 

2 shall be made available to any Member of Congress by 

3 the chairmen immediately upon request. 

4 ‘‘(b) STATEMENT INCLUDED IN LEGISLATION.— 

5 ‘‘(1) IN GENERAL.—Notwithstanding any other 

6 rule of the House of Representatives or any rule or 

7 precedent of the Senate, any revenue or reconcili8 ation bill or joint resolution which includes any 

9 amendment to the Internal Revenue Code of 1986 

10 reported by a committee of conference of the two 

11 Houses may include, as a separate section of such 

12 bill or joint resolution, the information contained in 

13 the statement of the chairmen, but only in the man14 ner set forth in paragraph (2). 

15 ‘‘(2) APPLICABILITY.—The separate section 

16 permitted under subparagraph (A) shall read as fol17 lows: ‘Section 1021 of the Congressional Budget and 

18 Impoundment Control Act of 1974 shall 

19 llllll apply to llllllll.’, with 

20 the blank spaces being filled in with— 

21 ‘‘(A) in any case in which the chairmen 

22 identify targeted tax benefits in the statement 

23 required under subsection (a), the word ‘only’ 

24 in the first blank space and a list of all of the 

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1 specific provisions of the bill or joint resolution 

2 in the second blank space; or 

3 ‘‘(B) in any case in which the chairmen de4 clare that there are no targeted tax benefits in 

5 the statement required under subsection (a), 

6 the word ‘not’ in the first blank space and the 

7 phrase ‘any provision of this Act’ in the second 

8 blank space. 

9 ‘‘(c) IDENTIFICATION IN REVENUE ESTIMATE.— 

10 With respect to any revenue or reconciliation bill or joint 

11 resolution with respect to which the chairmen provide a 

12 statement under subsection (a), the Joint Committee on 

13 Taxation shall— 

14 ‘‘(1) in the case of a statement described in 

15 subsection (b)(2)(A), list the targeted tax benefits in 

16 any revenue estimate prepared by the Joint Com17 mittee on Taxation for any conference report which 

18 accompanies such bill or joint resolution, or 

19 ‘‘(2) in the case of a statement described in 13 

20 subsection (b)(2)(B), indicate in such revenue esti21 mate that no provision in such bill or joint resolution 

22 has been identified as a targeted tax benefit. 

23 ‘‘(d) PRESIDENT’S AUTHORITY.—If any revenue or 

24 reconciliation bill or joint resolution is signed into law— 

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1 ‘‘(1) with a separate section described in sub2 section (b)(2), then the President may use the au3 thority granted in this section only with respect to 

4 any targeted tax benefit in that law, if any, identi5 fied in such separate section; or 

6 ‘‘(2) without a separate section described in 

7 subsection (b)(2), then the President may use the 

8 authority granted in this section with respect to any 

9 targeted tax benefit in that law. 

10 ‘‘TREATMENT OF CANCELLATIONS

11 ‘‘SEC. 1015. The cancellation of any dollar amount 

12 of discretionary budget authority, item of direct spending, 

13 limited tariff benefit, or targeted tax benefit shall take ef14 fect only upon enactment of the applicable approval bill. 

15 If an approval bill is not enacted into law before the end 

16 of the applicable period under section 1013, then all pro17 posed cancellations contained in that bill shall be null and 

18 void and any such dollar amount of discretionary budget 

19 authority, item of direct spending, limited tariff benefit, 

20 or targeted tax benefit shall be effective as of the original 

21 date provided in the law to which the proposed cancella22 tions applied. 

23 ‘‘REPORTS BY COMPTROLLER GENERAL

24 ‘‘SEC. 1016. With respect to each special message 

25 under this part, the Comptroller General shall issue to the 

26 Congress a report determining whether any discretionary 

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1 budget authority is not made available for obligation or 

2 item of direct spending, limited tariff benefit, or targeted 

3 tax benefit continues to be suspended after the deferral 

4 authority set forth in section 1013 of the President has 

5 expired. 

6 ‘‘DEFINITIONS

7 ‘‘SEC. 1017. As used in this part: 

8 ‘‘(1) APPROPRIATION LAW.—The term ‘appro9 priation law’ means an Act referred to in section 

10 105 of title 1, United States Code, including any 

11 general or special appropriation Act, or any Act 

12 making supplemental, deficiency, or continuing ap13 propriations, that has been signed into law pursuant 

14 to Article I, section 7, of the Constitution of the 

15 United States. 

16 ‘‘(2) APPROVAL BILL.—The term ‘approval bill’ 

17 means a bill or joint resolution which only approves 

18 proposed cancellations of dollar amounts of discre19 tionary budget authority, items of new direct spend20 ing, limited tariff benefits, or targeted tax benefits 

21 in a special message transmitted by the President 

22 under this part and— 

23 ‘‘(A) the title of which is as follows: ‘A bill 

24 approving the proposed cancellations trans25 mitted by the President on lll’, the blank 

26 space being filled in with the date of transmstockstill on DSKH9S0YB1PROD with BILLS

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1 mission of the relevant special message and the 

2 public law number to which the message re3 lates; 

4 ‘‘(B) which does not have a preamble; and 

5 ‘‘(C) which provides only the following 

6 after the enacting clause: ‘That the Congress 

7 approves of proposed cancellations lll’, the 

8 blank space being filled in with a list of the 

9 cancellations contained in the President’s spe10 cial message, ‘as transmitted by the President 

11 in a special message on llll’, the blank 

12 space being filled in with the appropriate date, 

13 ‘regarding llll.’, the blank space being 

14 filled in with the public law number to which 

15 the special message relates; 

16 ‘‘(D) which only includes proposed can17 cellations that are estimated by CBO to meet 

18 the definition of discretionary budgetary au19 thority or items of direct spending, or limited 

20 tariff benefits, or that are identified as targeted 

21 tax benefits pursuant to section 1014; 

22 ‘‘(E) if any proposed cancellation other 

23 than discretionary budget authority or targeted 

24 tax benefits is estimated by CBO to not meet 

25 the definition of item of direct spending, then 

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1 the approval bill shall include at the end: ‘The 

2 President shall cease the suspension of the im3 plementation of the following under section 

4 1013 of the Impoundment Control Act of 1974: 

5 lllll’, the blank space being filled in 

6 with the list of such proposed cancellations; and 

7 ‘‘(F) if no CBO estimate is available, then 

8 the entire list of legislative provisions proposed 

9 by the President is inserted in the second blank 

10 space in subparagraph (C). 

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

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

14 ‘‘(4) CANCEL OR CANCELLATION.—The terms 

15 ‘cancel’ or ‘cancellation’ means to prevent— 

16 ‘‘(A) budget authority from having legal 

17 force or effect; 

18 ‘‘(B) in the case of entitlement authority, 

19 to prevent the specific legal obligation of the 

20 United States from having legal force or effect; 

21 ‘‘(C) in the case of the food stamp pro22 gram, to prevent the specific provision of law 

23 that provides such benefit from having legal 

24 force or effect; or 

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1 ‘‘(D) a limited tariff benefit from having 

2 legal force or effect, and to make any necessary, 

3 conforming statutory change to ensure that 

4 such limited tariff benefit is not implemented; 

5 or 

6 ‘‘(E) a targeted tax benefit from having 

7 legal force or effect, and to make any necessary, 

8 conforming statutory change to ensure that 

9 such targeted tax benefit is not implemented 

10 and that any budgetary resources are appro11 priately canceled. 

12 ‘‘(5) CONGRESSIONAL BUDGET OFFICE.—The 

13 term ‘CBO’ means the Director of the Congressional 

14 Budget Office. 

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

16 spending’ means— 

17 ‘‘(A) budget authority provided by law 

18 (other than an appropriation law); 

19 ‘‘(B) entitlement authority; and 

20 ‘‘(C) the food stamp program. 

21 ‘‘(7) AMOUNT OF DISCRETIONARY BUDGET AU22 THORITY.—(A) Except as provided in subparagraph 

23 (B), the term ‘dollar amount of discretionary budget 

24 authority’ means the entire dollar amount of budget 

25 authority— 

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1 ‘‘(i) specified in an appropriation law, 

2 or the entire dollar amount of budget au3 thority or obligation limitation required to 

4 be allocated by a specific proviso in an ap5 propriation law for which a specific dollar 

6 figure was not included; 

7 ‘‘(ii) represented separately in any 

8 table, chart, or explanatory text included 

9 in the statement of managers or the gov10 erning committee report accompanying 

11 such law; 

12 ‘‘(iii) required to be allocated for a 

13 specific program, project, or activity in a 

14 law (other than an appropriation law) that 

15 mandates the expenditure of budget au16 thority from accounts, programs, projects, 

17 or activities for which budget authority is 

18 provided in an appropriation law; 

19 ‘‘(iv) represented by the product of 

20 the estimated procurement cost and the 

21 total quantity of items specified in an ap22 propriation law or included in the state23 ment of managers or the governing com24 mittee report accompanying such law; or 

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1 ‘‘(v) represented by the product of the 

2 estimated procurement cost and the total 

3 quantity of items required to be provided 

4 in a law (other than an appropriation law) 

5 that mandates the expenditure of budget 

6 authority from accounts, programs, 

7 projects, or activities for which budget au8 thority is provided in an appropriation law. 

9 ‘‘(B) The term ‘dollar amount of discre10 tionary budget authority’ does not include— 

11 ‘‘(i) direct spending; 

12 ‘‘(ii) budget authority in an appro13 priation law which funds direct spending 

14 provided for in other law; 

15 ‘‘(iii) any existing budget authority 

16 canceled in an appropriation law; or 

17 ‘‘(iv) any restriction, condition, or lim18 itation in an appropriation law or the ac19 companying statement of managers or 

20 committee reports on the expenditure of 

21 budget authority for an account, program, 

22 project, or activity, or on activities involv23 ing such expenditure. 

24 ‘‘(8) ITEM OF DIRECT SPENDING.—The term 

25 ‘item of direct spending’ means any provision of law 

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1 that results in an increase in budget authority or 

2 outlays for direct spending relative to the most re3 cent levels calculated consistent with the method4 ology used to calculate a baseline under section 257 

5 of the Balanced Budget and Emergency Deficit Con6 trol Act of 1985 and included with a budget submis7 sion under section 1105(a) of title 31, United States 

8 Code, in the first year or the 5-year period for which 

9 the item is effective. However, such item does not in10 clude an extension or reauthorization of existing di11 rect spending, but instead only refers to provisions 

12 of law that increase such direct spending. 

13 ‘‘(9) LIMITED TARIFF BENEFIT.—The term 

14 ‘limited tariff benefit’ means any provision of law 

15 that modifies the Harmonized Tariff Schedule of the 

16 United States in a manner that benefits 10 or fewer 

17 entities (as defined in paragraph (12)(B)). 

18 ‘‘(10) OMB.—The term ‘OMB’ means the Di19 rector of the Office of Management and Budget. 

20 ‘‘(11) OMNIBUS RECONCILIATION OR APPRO21 PRIATION MEASURE.—The term ‘omnibus reconcili22 ation or appropriation measure’ means— 

23 ‘‘(A) in the case of a reconciliation bill, any 

24 such bill that is reported to its House by the 

25 Committee on the Budget; or 

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1 ‘‘(B) in the case of an appropriation meas2 ure, any such measure that provides appropria3 tions for programs, projects, or activities falling 

4 within 2 or more section 302(b) suballocations. 

5 ‘‘(12) TARGETED TAX BENEFIT.—(A) The term 

6 ‘targeted tax benefit’ means any revenue-losing pro7 vision that provides a Federal tax deduction, credit, 

8 exclusion, or preference to ten or fewer beneficiaries 

9 (determined with respect to either present law or 

10 any provision of which the provision is a part) under 

11 the Internal Revenue Code of 1986 in any year for 

12 which the provision is in effect; 

13 ‘‘(B) for purposes of subparagraph (A)— 

14 ‘‘(i) all businesses and associations 

15 that are members of the same controlled 

16 group of corporations (as defined in sec17 tion 1563(a) of the Internal Revenue Code 

18 of 1986) shall be treated as a single bene19 ficiary; 

20 ‘‘(ii) all shareholders, partners, mem21 bers, or beneficiaries of a corporation, 

22 partnership, association, or trust or estate, 

23 respectively, shall be treated as a single 

24 beneficiary; 

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1 ‘‘(iii) all employees of an employer 

2 shall be treated as a single beneficiary; 

3 ‘‘(iv) all qualified plans of an em4 ployer shall be treated as a single bene5 ficiary; 

6 ‘‘(v) all beneficiaries of a qualified 

7 plan shall be treated as a single bene8 ficiary; 

9 ‘‘(vi) all contributors to a charitable 

10 organization shall be treated as a single 

11 beneficiary; 

12 ‘‘(vii) all holders of the same bond 

13 issue shall be treated as a single bene14 ficiary; and 

15 ‘‘(viii) if a corporation, partnership, 

16 association, trust or estate is the bene17 ficiary of a provision, the shareholders of 

18 the corporation, the partners of the part19 nership, the members of the association, or 

20 the beneficiaries of the trust or estate shall 

21 not also be treated as beneficiaries of such 

22 provision; 

23 ‘‘(C) for the purpose of this paragraph, the 

24 term ‘revenue-losing provision’ means any pro25 vision that is estimated to result in a reduction 

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1 in Federal tax revenues (determined with re2 spect to either present law or any provision of 

3 which the provision is a part) for any one of the 

4 two following periods— 

5 ‘‘(i) the first fiscal year for which the 

6 provision is effective; or 

7 ‘‘(ii) the period of the five fiscal years 

8 beginning with the first fiscal year for 

9 which the provision is effective; 

10 ‘‘(D) the term ‘targeted tax benefit’ does 

11 not include any provision which applies uni12 formly to an entire industry; and 

13 ‘‘(E) the terms used in this paragraph 

14 shall have the same meaning as those terms 

15 have generally in the Internal Revenue Code of 

16 1986, unless otherwise expressly provided. 

17 ‘‘EXPIRATION

18 ‘‘SEC. 1018. This title shall have no force or effect 

19 on or after October 1, 2019. 

20 ‘‘DEFICIT REDUCTION

21 ‘‘SEC. 1019. All spending reductions related to this 

22 title shall be for deficit reduction.’’. 

23 SEC. 412. TECHNICAL AND CONFORMING AMENDMENTS. 

24 (a) EXERCISE OF RULEMAKING POWERS.—Section 

25 904 of the Congressional Budget Act of 1974 (2 U.S.C. 

26 621 note) is amended— 

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

2 inserting ‘‘1012’’; and 

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

4 1017’’ and inserting ‘‘section 1012’’. 

5 (b) ANALYSIS BY CONGRESSIONAL BUDGET OF6 FICE.—Section 402 of the Congressional Budget Act of 

7 1974 is amended by inserting ‘‘(a)’’ after ‘‘402.’’ and by 

8 adding at the end the following new subsection: 

9 ‘‘(b) Upon the receipt of a special message under sec10 tion 1011 proposing to cancel any item of direct spending, 

11 the Director of the Congressional Budget Office shall pre12 pare an estimate of the savings in budget authority or out13 lays resulting from such proposed cancellation relative to 

14 the most recent levels calculated consistent with the meth15 odology used to calculate a baseline under section 257 of 

16 the Balanced Budget and Emergency Deficit Control Act 

17 of 1985 and included with a budget submission under sec18 tion 1105(a) of title 31, United States Code, and transmit 

19 such estimate to the chairmen of the Committees on the 

20 Budget of the House of Representatives and Senate.’’. 

21 (c) CLERICAL AMENDMENTS.—(1) Section 1(a) of 

22 the Congressional Budget and Impoundment Control Act 

23 of 1974 is amended by striking the last sentence. 

24 (2) Section 1021(c) of such Act (as redesignated) is 

25 amended is amended by striking ‘‘rescinded or that is to 

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1 be reserved’’ and insert ‘‘canceled’’ and by striking 

2 ‘‘1012’’ and inserting ‘‘1011’’. 

3 (3) TABLE OF CONTENTS.—The table of contents set 

4 forth in section 1(b) of the Congressional Budget and Im5 poundment Control Act of 1974 is amended by deleting 

6 the contents for parts B and C of title X and inserting 

7 the following: 

‘‘PART B—LEGISLATIVE LINE-ITEM VETO

‘‘Sec. 1011. Line-item veto authority. 

‘‘Sec. 1012. Procedures for expedited consideration. 

‘‘Sec. 1013. Presidential deferral authority. 

‘‘Sec. 1014. Identification of targeted tax benefits. 

‘‘Sec. 1015. Treatment of cancellations. 

‘‘Sec. 1016. Reports by Comptroller General. 

‘‘Sec. 1017. Definitions. 

‘‘Sec. 1018. Expiration. 

‘‘Sec. 1019. Deficit reduction. 

‘‘Sec. 1020. Suits by Comptroller General. 

‘‘Sec. 1021. Proposed deferrals of budget authority.’’. 

8 (d) EFFECTIVE DATE.—The amendments made by 

9 this subtitle shall take effect on the date of its enactment 

10 and apply only to any dollar amount of discretionary budg11 et authority, item of direct spending, or targeted tax ben12 efit provided in an Act enacted on or after the date of 

13 enactment of this Act. 

14 SEC. 413. RESCISSION MEASURES CONSIDERED. 

15 (a) RULES AMENDMENT.—Clause 6(c) of rule XIII 

16 of the Rules of the House of Representatives is amended 

17 by inserting before the period ‘‘, or a rule or order that 

18 limits any amendment otherwise in order to a rescission 

19 bill’’. 

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1 (b) AUTOMATIC ALLOCATIONS REDUCTIONS.— 

2 Clause 4(b) of rule X of the Rules of the House of Rep3 resentatives is amended by inserting ‘‘(1)’’ after ‘‘(b)’’, by 

4 redesignating subparagraphs (1) through (6) as subdivi5 sions (A) through (F), respectively, and by adding at the 

6 end the following: 

7 ‘‘(2)(A) Whenever a rescission bill passes the House 

8 of Representatives, the Committee on the Budget shall im9 mediately reduce the applicable allocations under section 

10 302(a) of the Congressional Budget Act of 1974 by the 

11 total amount of reductions in budget authority and in out12 lays resulting from such rescission bill. 

13 ‘‘(B) As used in this subparagraph, the term ‘rescis14 sion bill’ means a bill or joint resolution which only re15 scinds, in whole or in part, budget authority and which 

16 includes only titles corresponding to the most recently en17 acted appropriation bills that continue to include unobli18 gated balances.’’. 

19 (c) PRIVILEGED DISCHARGE RESOLUTIONS.—Rule 

20 XIII of the Rules of the House of Representatives is 

21 amended by adding at the end the following new clause: 

22 ‘‘8. (a) By February 1, May 1, July 30, and Novem23 ber 11 of each session, the majority leader shall introduce 

24 a rescission bill. If such bill is not introduced by that date, 

25 then whenever a rescission bill is introduced during a sesmstockstill on DSKH9S0YB1PROD with BILLS

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1 sion on or after that date, a motion to discharge the com2 mittee from its consideration shall be privileged after the 

3 10-legislative day period beginning on that date for the 

4 first 5 such bills. 

5 ‘‘(b) It shall not be in order to offer any amendment 

6 to a rescission bill except an amendment that increases 

7 the amount of budget authority that such bill rescinds. 

8 ‘‘(c) As used in this clause and in clause 6, the term 

9 ‘rescission bill’ has the meaning given such term in clause 

10 4(b)(2)(B) of rule X.’’. 

11 (d) POINT OF ORDER.—Rule XXI of the Rules of the 

12 House of Representatives (as amended by subsection (d)) 

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

14 clause: 

15 ‘‘9. (a) It shall not be in order to consider any rescis16 sion bill, or conference report thereon or amendment 

17 thereto, unless— 

18 ‘‘(1) in the case of such bill or conference re19 port thereon, it is made available to Members and 

20 the general public on the Internet for at least 48 

21 hours before its consideration; or 

22 ‘‘(2)(A) in the case of an amendment to such 

23 rescission bill made in order by a rule, it is made 

24 available to Members and the general public on the 

25 Internet within one hour after the rule is filed; or 

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1 ‘‘(B) in the case of an amendment under an 

2 open rule, it is made available to Members and the 

3 general public on the Internet immediately after 

4 being offered; in a format that is searchable and 

5 sortable. 

6 ‘‘(3) No amendment to an amendment to a re7 scission bill shall be in order unless germane to the 

8 amendment to which it is offered.’’. 

9 Subtitle C—Commission to 

10 Eliminate Waste, Fraud, and Abuse 

11 SEC. 420. SHORT TITLE. 

12 This Act may be cited as the ‘‘Commission on the 

13 Accountability and Review of Federal Agencies Act of 

14 2009’’. 

15 SEC. 421. ESTABLISHMENT OF COMMISSION. 

16 (a) ESTABLISHMENT.—There is established the Com17 mission on the Accountability and Review of Federal 

18 Agencies (hereafter in this Act referred to as the ‘‘Com19 mission’’). 

20 (b) MEMBERSHIP.— 

21 (1) NUMBER AND APPOINTMENT.— 

22 (A) IN GENERAL.—The Commission shall 

23 be composed of 7 members, whom shall have 

24 experience in finance and the analysis of Fed25 eral spending, appointed by the President after 

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1 consultation with the majority and minorities 

2 leaders of the House of Representatives and the 

3 Senate, as follows: 

4 (i) One in consultation with the 

5 Speaker of the House of Representatives. 

6 (ii) One in consultation with the mi7 nority leader of the House of Representa8 tives. 

9 (iii) One in consultation with the ma10 jority leader of the Senate. 

11 (iv) One in consultation with the mi12 nority leader of the Senate. 

13 (v) Three other members. 

14 (B) EX OFFICIO MEMBERS.—The Presi15 dent may appoint up to 4 Members of Congress 

16 (up to 2 from each House) as nonvoting ex offi17 cio members of the Commission. 

18 (2) CHAIRMAN AND VICE-CHAIRMAN.—The 

19 President shall appoint a chairman and vice-chair20 man from among the members of the Commission. 

21 (c) PERIOD OF APPOINTMENT; VACANCIES.—Mem22 bers shall be appointed for the life of the Commission. Any 

23 vacancy in the Commission shall not affect its powers, but 

24 shall be filled in the same manner as the original appoint25 ment. 

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1 (d) INITIAL MEETING.—Not later than 30 days after 

2 the date on which all members of the Commission have 

3 been appointed, the Commission shall hold its first meet4 ing. 

5 (e) MEETINGS.—The Commission shall meet at the 

6 call of the chairman. 

7 (f) QUORUM.—A majority of the members of the 

8 Commission shall constitute a quorum, but a lesser num9 ber of members may hold hearings. 

10 SEC. 422. DUTIES OF THE COMMISSION. 

11 (a) DEFINITION.—The term ‘‘agency’’, as used in 

12 this section, has the meaning given the term ‘‘executive 

13 agency’’ under section 105 of title 5, United States Code. 

14 (b) IN GENERAL.—The Commission shall— 

15 (1) evaluate all agencies and programs within 

16 those agencies, using the criteria under subsection 

17 (c); and 

18 (2) submit to Congress— 

19 (A) a plan with recommendations of the 

20 agencies and programs that should be realigned 

21 or eliminated; and 

22 (B) proposed legislation to implement the 

23 plan under subparagraph (A), but shall be lim24 ited in content to matters directly related to the 

25 purpose of the Commission. 

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1 (c) CRITERIA.— 

2 (1) COST EFFECTIVE.—Whether the agency or 

3 program as carried out by the agency is cost effec4 tive and achieves its stated purpose of goals. 

5 (2) MISSION.—The extent to which the pro6 gram has achieved or completed its intended pur7 pose. 

8 (3) DUPLICATIVE.—The extent to which the 

9 agency or program duplicates or conflicts with other 

10 Federal agencies, State and local government, or the 

11 private sector. 

12 (4) COORDINATION WITH STATE AND LOCAL

13 GOVERNMENTS.—The extent to which the agency co14 ordinates effectively with State and local govern15 ments in performing the functions of the program. 

16 (5) PERFORMANCE.—The extent to which the 

17 program failed to meet its objectives or a national 

18 priority or purpose 

19 (6) MANAGEMENT STRUCTURE.—The extent to 

20 which changes in the management structure of the 

21 agency or program or its placement in the Executive 

22 Branch are needed to improve the overall efficiency, 

23 effectiveness, or accountability of Executive Branch 

24 operations. 

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1 (7) NATIONAL NEEDS.—The extent to which 

2 the program benefits special interest groups and 

3 does not meet a national priority or purpose. 

4 (d) REPORT.— 

5 (1) IN GENERAL.—Not later than 2 years after 

6 the date of enactment of this Act, the Commission 

7 shall submit to the President and Congress a report 

8 that includes— 

9 (A) the plan described under subsection 

10 (b)(1) with supporting documentation for all 

11 recommendations; and 

12 (B) the proposed legislation described 

13 under subsection (b)(2). 

14 (2) USE OF SAVINGS.—The proposed legislation 

15 under paragraph (1)(B) shall provide that all funds 

16 saved by the implementation of the plan under para17 graph (1)(A) shall be used for deficit reduction. 

18 SEC. 423. POWERS OF THE COMMISSION. 

19 (a) HEARINGS AND SUBPOENA POWER.—The Com20 mission or, at its direction, any subcommittee or member 

21 of the Commission, may, for the purpose of carrying out 

22 this Act— 

23 (1) hold such hearings, sit and act at such 

24 times and places, take such testimony, receive such 

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1 evidence, and administer such oaths as any member 

2 of the Commission considers advisable; 

3 (2) require, by subpoena or otherwise, the at4 tendance and testimony of such witnesses as any 

5 member of the Commission considers advisable; and 

6 (3) require, by subpoena or otherwise, the pro7 duction of such books, records, correspondence, 

8 memoranda, papers, documents, tapes, and other 

9 evidentiary materials relating to any matter under 

10 investigation by the Commission. 

11 (b) ENFORCEMENT OF SUBPOENAS.—The Commis12 sion may issue subpoenas as follows: 

13 (1) ISSUANCE.—Subpoenas shall only be issued 

14 pursuant to this section if approved by a vote of the 

15 Commission, shall bear the signature of the chair16 man of the Commission, and shall be served by a 

17 person or class of persons designated by the chair18 man for that purpose. 

19 (2) ENFORCEMENT.—In the case of contumacy 

20 or failure to obey a subpoena issued under sub21 section (a), the United States district court for the 

22 judicial district in which the subpoenaed person re23 sides, is served, or may be found, may issue an order 

24 requiring such person to appear at any designated 

25 place to testify or to produce documentary or other 

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1 evidence. Any failure to obey the order of the court 

2 may be punished by the court as a contempt of that 

3 court. 

4 (3) LIMITATION ON ISSUANCE AND ENFORCE5 MENT.—Subpoenas may only be issued pursuant to 

6 this section to Federal agencies, Federal contractors, 

7 or persons or entities receiving Federal funds, and 

8 only for information or matter directly related to the 

9 purpose of the Commission. 

10 (c) INFORMATION FROM FEDERAL AGENCIES.—The 

11 Commission may secure directly from any Federal depart12 ment or agency such information as the Commission con13 siders necessary to carry out this Act. Upon request of 

14 the chairman of the Commission, the head of such depart15 ment or agency shall furnish such information to the Com16 mission. 

17 (d) POSTAL SERVICES.—The Commission may use 

18 the United States mails in the same manner and under 

19 the same conditions as other departments and agencies of 

20 the Federal Government. 

21 SEC. 424. COMMISSION PERSONNEL MATTERS. 

22 (a) COMPENSATION OF MEMBERS.— 

23 (1) NON-FEDERAL MEMBERS.—Except as pro24 vided under subsection (b), each member of the 

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1 Commission who is not an officer or employee of the 

2 Federal Government shall not be compensated. 

3 (2) FEDERAL OFFICERS OR EMPLOYEES.—All 

4 members of the Commission who are officers or em5 ployees of the United States shall serve without com6 pensation in addition to that received for their serv7 ices as officers or employees of the United States. 

8 (b) TRAVEL EXPENSES.—The members of the Com9 mission shall be allowed travel expenses, including per 

10 diem in lieu of subsistence, at rates authorized for employ11 ees of agencies under subchapter I of chapter 57 of title 

12 5, United States Code, while away from their homes or 

13 regular places of business in the performance of services 

14 for the Commission. 

15 (c) STAFF.— 

16 (1) IN GENERAL.—The chairman of the Com17 mission may, without regard to the civil service laws 

18 and regulations, appoint and terminate an executive 

19 director and such other additional personnel as may 

20 be necessary to enable the Commission to perform 

21 its duties. The employment of an executive director 

22 shall be subject to confirmation by the Commission. 

23 (2) COMPENSATION.—Upon the approval of the 

24 chairman, the executive director may fix the com25 pensation of the executive director and other permstockstill on DSKH9S0YB1PROD with BILLS

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1 sonnel without regard to chapter 51 and subchapter 

2 III of chapter 53 of title 5, United States Code, re3 lating to classification of positions and General 

4 Schedule pay rates, except that the rate of pay for 

5 the executive director and other personnel may not 

6 exceed the maximum rate payable for a position at 

7 GS–15 of the General Schedule under section 5332 

8 of such title. 

9 (3) PERSONNEL AS FEDERAL EMPLOYEES.— 

10 (A) IN GENERAL.—The executive director 

11 and any personnel of the Commission who are 

12 employees shall be employees under section 

13 2105 of title 5, United States Code, for pur14 poses of chapters 63, 81, 83, 84, 85, 87, 89, 

15 and 90 of that title. 

16 (B) MEMBERS OF COMMISSION.—Subpara17 graph (A) shall not be construed to apply to 

18 members of the Commission. 

19 (d) DETAIL OF GOVERNMENT EMPLOYEES.—Any 

20 Federal Government employee may be detailed to the 

21 Commission without reimbursement, and such detail shall 

22 be without interruption or loss of civil service status or 

23 privilege. 

24 (e) PROCUREMENT OF TEMPORARY AND INTERMIT25 TENT SERVICES.—The chairman of the Commission may 

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1 procure temporary and intermittent services under section 

2 3109(b) of title 5, United States Code, at rates for individ3 uals which do not exceed the daily equivalent of the annual 

4 rate of basic pay prescribed for level V of the Executive 

5 Schedule under section 5316 of such title. 

6 SEC. 425. TERMINATION OF THE COMMISSION. 

7 The Commission shall terminate 90 days after the 

8 date on which the Commission submits the report under 

9 section 3(d). 

10 SEC. 426. CONGRESSIONAL CONSIDERATION OF REFORM 

11 PROPOSALS. 

12 (a) DEFINITIONS.—In this section— 

13 (1) the term ‘‘implementation bill’’ means only 

14 a bill which is introduced as provided under sub15 section (b), and contains the proposed legislation in16 cluded in the report submitted to Congress under 

17 section 3, without modification; and 

18 (2) the term ‘‘calendar day’’ means a calendar 

19 day other than 1 on which either House is not in 

20 session because of an adjournment of more than 3 

21 days to a date certain. 

22 (b) INTRODUCTION; REFERRAL; AND REPORT OR

23 DISCHARGE.— 

24 (1) INTRODUCTION.—On the first calendar day 

25 on which both Houses are in session, on or immemstockstill on DSKH9S0YB1PROD with BILLS

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1 diately following the date on which the report is sub2 mitted to Congress under section 3, a single imple3 mentation bill shall be introduced (by request)— 

4 (A) in the Senate by the majority leader of 

5 the Senate, for himself and the minority leader 

6 of the Senate, or by Members of the Senate 

7 designated by the majority leader and minority 

8 leader of the Senate; and 

9 (B) in the House of Representatives by the 

10 majority leader of the House of Representa11 tives, for himself and the minority leader of the 

12 House of Representatives, or by Members of the 

13 House of Representatives designated by the 

14 Speaker and minority leader of the House of 

15 Representatives. 

16 (2) REFERRAL.—The implementation bills in17 troduced under paragraph (1) shall be referred to 

18 any appropriate committee of jurisdiction in the 

19 Senate and any appropriate committee of jurisdic20 tion in the House of Representatives. A committee 

21 to which an implementation bill is referred under 

22 this paragraph may report such bill to the respective 

23 House without substantive revision. 

24 (3) REPORT OR DISCHARGE.—If a committee to 

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1 ported such bill by the end of the 30th calendar day, 

2 excepting Saturdays and Sundays, after the date of 

3 the introduction of such bill, such committee shall be 

4 immediately discharged from further consideration 

5 of such bill, and upon being reported or discharged 

6 from the committee, such bill shall be placed on the 

7 appropriate calendar. 

8 (c) FLOOR CONSIDERATION.— 

9 (1) IN GENERAL.—When the committee to 

10 which an implementation bill is referred has re11 ported, or has been discharged under subsection 

12 (b)(3), it is at any time thereafter in order (even 

13 though a previous motion to the same effect has 

14 been disagreed to) for any Member of the respective 

15 House to move to proceed to the consideration of the 

16 implementation bill, and all points of order against 

17 such legislation and against its consideration) are 

18 waived, except those arising under sections 302(f) 

19 and 311 of the Congressional Budget Act of 1974. 

20 The motion is highly privileged in the House of Rep21 resentatives and is privileged in the Senate and is 

22 not debatable. The motion is not subject to amend23 ment, or to a motion to postpone, or motion to pro24 ceed to the consideration of other business. A motion 

25 to reconsider the vote by which the motion is agreed 

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1 to or disagreed to shall not be in order. If a motion 

2 to proceed to the consideration of the implementa3 tion bill is agreed to, it shall remain the unfinished 

4 business of the respective House until disposed of. 

5 (2) COST ESTIMATE.—An implementation bill 

6 may not be considered pursuant to paragraph (1) 

7 unless a cost estimate has been prepared for such 

8 bill by the Congressional Budget Office and been 

9 publicly available for 72 hours prior to consider10 ation. 

11 (3) AMENDMENTS.—An implementation bill 

12 may not be amended in the Senate or the House of 

13 Representatives. 

14 (4) DEBATE.—Debate on the implementation 

15 bill, and on all debatable motions and appeals in 

16 connection therewith, shall be limited to not more 

17 than 10 hours, which shall be divided equally be18 tween those favoring and those opposing the resolu19 tion. A motion further to limit debate is in order and 

20 not debatable. An amendment to, or a motion to 

21 postpone, or a motion to proceed to the consider22 ation of other business, or a motion to recommit the 

23 implementation bill is not in order. A motion to re24 consider the vote by which the implementation bill is 

25 agreed to or disagreed to is not in order. 

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1 (5) VOTE ON FINAL PASSAGE.—Immediately 

2 following the conclusion of the debate on an imple3 mentation bill, and a single quorum call at the con4 clusion of the debate if requested in accordance with 

5 the rules of the appropriate House, the vote on final 

6 passage of the implementation bill shall occur. 

7 (6) RULINGS OF THE CHAIR ON PROCEDURE.— 

8 Appeals from the decisions of the Chair relating to 

9 the application of the rules of the Senate or the 

10 House of Representatives, as the case may be, to the 

11 procedure relating to an implementation bill shall be 

12 decided without debate. 

13 (d) COORDINATION WITH ACTION BY OTHER

14 HOUSE.—If, before the passage by 1 House of an imple15 mentation bill of that House, that House receives from 

16 the other House an implementation bill, then the following 

17 procedures shall apply: 

18 (1) NON-REFERRAL.—The implementation bill 

19 of the other House shall not be referred to a com20 mittee. 

21 (2) VOTE ON BILL OF OTHER HOUSE.—With 

22 respect to an implementation bill of the House re23 ceiving the implementation bill— 

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1 (A) the procedure in that House shall be 

2 the same as if no implementation bill had been 

3 received from the other House; but 

4 (B) the vote on final passage shall be on 

5 the implementation bill of the other House. 

6 (e) RULES OF THE SENATE AND THE HOUSE OF

7 REPRESENTATIVES.—This section is enacted by Con8 gress— 

9 (1) as an exercise of the rulemaking power of 

10 the Senate and House of Representatives, respec11 tively, and as such it is deemed a part of the rules 

12 of each House, respectively, but applicable only with 

13 respect to the procedure to be followed in that 

14 House in the case of an implementation bill de15 scribed in subsection (a), and it supersedes other 

16 rules only to the extent that it is inconsistent with 

17 such rules; and 

18 (2) with full recognition of the constitutional 

19 right of either House to change the rules (so far as 

20 relating to the procedure of that House) at any time, 

21 in the same manner, and to the same extent as in 

22 the case of any other rule of that House. 

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1 SEC. 427. AUTHORIZATION OF APPROPRIATIONS. 

2 There are authorized to be appropriated such sums 

3 as may be necessary for each of fiscal years 2010 through 

4 2013 for carrying out this Act. 

5 TITLE V—TRANSPARENCY IN 

6 BUDGETING 

7 SEC. 500. SHORT TITLE. 

8 This title may be cited as the ‘‘Transparency in 

9 Budgeting Act of 2009’’. 

10 Subtitle A—Accrual Funding of 

11 Pensions and Retirement Pay 

12 for Federal Employees and Uni13 formed Services Personnel 

14 SEC. 501. CIVIL SERVICE RETIREMENT SYSTEM. 

15 (a) CIVIL SERVICE RETIREMENT AND DISABILITY

16 FUND.—Chapter 83 of title 5, United States Code, is 

17 amended— 

18 (1) in section 8331— 

19 (A) in paragraph (17)— 

20 (i) by striking ‘‘normal cost’’ and in21 serting ‘‘normal cost percentage’’; and 

22 (ii) by inserting ‘‘and standards 

23 (using dynamic assumptions)’’ after ‘‘prac24 tice’’; 

25 (B) by amending paragraph (18) to read 

26 as follows: 

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1 ‘‘(18) ‘Fund balance’ means the current net as2 sets of the Fund available for payment of benefits, 

3 as determined by the Office in accordance with ap4 propriate accounting standards, but does not include 

5 any amount attributable to— 

6 ‘‘(A) the Federal Employees’ Retirement 

7 System; or 

8 ‘‘(B) contributions made under the Federal 

9 Employees’ Retirement Contribution Temporary 

10 Adjustment Act of 1983 by or on behalf of any 

11 individual who became subject to the Federal 

12 Employees’ Retirement System;’’ 

13 (C) by amending paragraph (19) to read 

14 as follows: 

15 ‘‘(19) ‘accrued liability’ means the estimated ex16 cess of the present value of all benefits payable from 

17 the Fund to employees and Members, and former 

18 employees and Members, subject to this subchapter, 

19 and their survivors, over the present value of deduc20 tions to be withheld from the future basic pay of em21 ployees and Members currently subject to this sub22 chapter and of future agency contributions to be 

23 made in their behalf;’’ 

24 (D) in paragraph (27) by striking ‘‘and’’ 

25 at the end; 

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1 (E) in paragraph (28) by striking the pe2 riod at the end and inserting a semicolon; and 

3 (F) by adding at the end the following 

4 paragraphs: 

5 ‘‘(29) ‘dynamic assumptions’ means economic 

6 assumptions that are used in determining actuarial 

7 costs and liabilities of a retirement system and in 

8 anticipating the effects of long-term future— 

9 ‘‘(A) investment yields; 

10 ‘‘(B) increases in rates of basic pay; and 

11 ‘‘(C) rates of price inflation; and 

12 ‘‘(30) ‘unfunded liability’ means the estimated 

13 excess of— 

14 ‘‘(A) the actuarial present value of all fu15 ture benefits payable from the Fund under this 

16 subchapter based on the service of current or 

17 former employees or Members, over 

18 ‘‘(B) the sum of— 

19 ‘‘(i) the actuarial present value of de20 ductions to be withheld from the future 

21 basic pay of employees and Members cur22 rently subject to this chapter pursuant to 

23 section 8334; 

24 ‘‘(ii) the actuarial present value of the 

25 future contributions to be made pursuant 

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1 to section 8334 with respect to employees 

2 and Members currently subject to this sub3 chapter; 

4 ‘‘(iii) the Fund balance, as defined in 

5 paragraph (18), as of the date the un6 funded liability is determined; and 

7 ‘‘(iv) any other appropriate amount, 

8 as determined by the Office of Personnel 

9 Management in accordance with generally 

10 accepted actuarial practices and prin11 ciples.’’; 

12 (2) in section 8334— 

13 (A) in subsection (a)(1)— 

14 (i) by striking the last two sentences; 

15 (ii) by redesignating that subsection, 

16 as so amended, as (a)(1)(A); and 

17 (iii) by adding at the end the fol18 lowing new subparagraphs: 

19 ‘‘(B) Except as provided in subparagraph (E), each 

20 employing agency having any employees or Members sub21 ject to subparagraph (A) shall contribute from amounts 

22 available for salaries and expenses an amount equal to the 

23 sum of— 

24 ‘‘(i) the product of— 

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1 ‘‘(I) the normal cost percentage, as deter2 mined for employees (other than employees cov3 ered by clause (ii)), multiplied by 

4 ‘‘(II) the aggregate amount of basic pay 

5 payable by the agency, for the period involved, 

6 to employees (under subclause (I)) who are 

7 within such agency; and 

8 ‘‘(ii) the product of— 

9 ‘‘(I) the normal cost percentage, as deter10 mined for Members, Congressional employees, 

11 law enforcement officers, firefighters, air traffic 

12 controllers, bankruptcy judges, Court of Fed13 eral Claims judges, United States magistrates, 

14 judges of the United States Court of Appeals 

15 for the Armed Forces, members of the Capitol 

16 Police, nuclear materials couriers, and members 

17 of the Supreme Court Police, multiplied by 

18 ‘‘(II) the aggregate amount of basic pay 

19 payable by the agency for the period involved, 

20 to employees and Members (under subclause 

21 (I)) who are within such agency. 

22 ‘‘(C) In determining the normal cost percentage to 

23 be applied under subparagraph (B), amounts provided for 

24 under subparagraph (A) shall be taken into account. 

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1 ‘‘(D) Contributions under this paragraph shall be 

2 paid— 

3 ‘‘(i) in the case of law enforcement officers, 

4 firefighters, air traffic controllers, bankruptcy 

5 judges, Court of Federal Claims judges, United 

6 States magistrates, judges of the United States 

7 Court of Appeals for the Armed Forces, members of 

8 the Supreme Court Police, nuclear materials couriers 

9 and other employees, from the appropriations or 

10 fund used to pay such law enforcement officers, fire11 fighters, air traffic controllers, bankruptcy judges, 

12 Court of Federal Claims judges, United States mag13 istrates, judges of the United States Court of Ap14 peals for the Armed Forces, members of the Su15 preme Court Police, nuclear materials couriers and 

16 other employees, respectively; 

17 ‘‘(ii) in the case of elected officials, from an ap18 propriation or fund available for payment of other 

19 salaries of the same office or establishment; and 

20 ‘‘(iii) in the case of employees of the legislative 

21 branch paid by the Clerk of the House of Represent22 atives, from the contingent fund of the House of 

23 Representatives. 

24 ‘‘(E) In the case of the United States Postal Service, 

25 the Metropolitan Washington Airports Authority, and the 

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1 government of the District of Columbia, an amount equal 

2 to that withheld under subparagraph (A) shall be contrib3 uted from the appropriation or fund used to pay the em4 ployee.’’; 

5 (B) in subsection (k)— 

6 (i) in paragraph (1)— 

7 (I) in subparagraph (A) by strik8 ing ‘‘the first sentence of subsection 

9 (a)(1) of this section’’ and inserting 

10 ‘‘subsection (a)(1)(A)’’; and 

11 (II) by amending subparagraph 

12 (B) to read as follows: 

13 ‘‘(B) the amount of the contribution under sub14 section (a)(1)(B) shall be the amount contributed 

15 under such subsection if this subsection had not 

16 been enacted.’’ 

17 (ii) in paragraph (2)(C)(iii) by strik18 ing ‘‘the first sentence of subsection 

19 (a)(1)’’ and inserting ‘‘subsection 

20 (a)(1)(A)’’; and 

21 (3) in section 8348— 

22 (A) by repealing subsection (f); 

23 (B) by amending subsection (g) to read as 

24 follows: 

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1 ‘‘(g)(1)(A) Not later than June 30, 2011, the Office 

2 of the Actuary shall determine the unfunded liability of 

3 the Fund, as of September 30, 2010, attributable to bene4 fits payable under this chapter and make recommenda5 tions regarding its liquidation. After considering such rec6 ommendations, the Office shall establish an amortization 

7 schedule, including a series of annual installments com8 mencing October 1, 2011, which provides for the liquida9 tion of such liability by October 1, 2049. 

10 ‘‘(B) The Office shall redetermine the unfunded li11 ability of the Fund as of the close of the fiscal year, for 

12 each fiscal year beginning after September 30, 2010, 

13 through the fiscal year ending September 30, 2044, and 

14 shall establish a new amortization schedule, including a 

15 series of annual installments commencing on October 1 

16 of the second subsequent fiscal year, which provides for 

17 the liquidation of such liability by October 1, 2049. 

18 ‘‘(C) The Office shall redetermine the unfunded li19 ability of the Fund as of the close of the fiscal year for 

20 each fiscal year beginning after September 30, 2044, and 

21 shall establish a new amortization schedule, including a 

22 series of annual installments commencing on October 1 

23 of the second subsequent fiscal year, which provides for 

24 the liquidation of such liability over five years. 

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1 ‘‘(D) Amortization schedules established under this 

2 paragraph shall be set in accordance with generally accept3 ed actuarial practices and principles, with interest com4 puted at the rate used in the most recent valuation of the 

5 Civil Service Retirement System. 

6 ‘‘(2) At the beginning of each fiscal year, beginning 

7 on October 1, 2011, the Office shall notify the Secretary 

8 of the Treasury of the amount of the first installment 

9 under the most recent amortization schedule established 

10 under paragraph (1). The Secretary shall credit that 

11 amount to the Fund, as a Government contribution, out 

12 of any money in the Treasury of the United States not 

13 otherwise appropriated. 

14 ‘‘(3) For the purpose of carrying out paragraph (1) 

15 with respect to any fiscal year, the Office may— 

16 ‘‘(A) require the Board of Actuaries of the Civil 

17 Service Retirement System to make actuarial deter18 minations and valuations, make recommendations, 

19 and maintain records in accordance with section 

20 8347(f); and 

21 ‘‘(B) use the latest actuarial determinations 

22 and valuations made by such Board of Actuaries.’’; 

23 (C) in subsections (h), (i), and (m) by 

24 striking ‘‘unfunded’’ and inserting ‘‘accrued’’ 

25 each place it appears; and 

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1 (D) by adding at the end the following new 

2 subsection: 

3 ‘‘(n) Under regulations prescribed by the Office, the 

4 head of an agency may request reconsideration of any 

5 amount determined to be payable with respect to such 

6 agency under section 8334(a)(1)(B)–(D). Any such re7 quest shall be referred to the Board of Actuaries of the 

8 Civil Service Retirement System. The Board of Actuaries 

9 shall review the computations of the Office and may make 

10 any adjustment with respect to any such amount which 

11 the Board determines appropriate. A determination by the 

12 Board of Actuaries under this subsection shall be final.’’. 

13 (b) GOVERNMENT CONTRIBUTIONS.—Section 8423 

14 of title 5, United States Code, is amended— 

15 (1) in subsection (a)(2) by striking ‘‘section 

16 8422’’ and inserting ‘‘section 8422(a)’’; and 

17 (2) in subsection (b)(2) by striking ‘‘equal an18 nual installments’’ and inserting ‘‘annual install19 ments set in accordance with generally accepted ac20 tuarial practices and principles’’. 

21 SEC. 502. CENTRAL INTELLIGENCE AGENCY RETIREMENT 

22 AND DISABILITY SYSTEM. 

23 (a) Section 101 of the Central Intelligence Agency 

24 Retirement Act (50 U.S.C. 2001) is amended— 

25 (1) in paragraph (5), to read as follows: 

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1 ‘‘(5) UNFUNDED LIABILITY.—The term ‘un2 funded liability’ means the estimated excess of— 

3 ‘‘(A) the actuarial present value of all fu4 ture benefits payable from the Fund under title 

5 II of this Act based on the service of current 

6 or former participants, over 

7 ‘‘(B) the sum of— 

8 ‘‘(i) the actuarial present value of de9 ductions to be withheld from the future 

10 basic pay of participants currently subject 

11 to title II of this Act pursuant to section 

12 211; 

13 ‘‘(ii) the actuarial present value of the 

14 future contributions to be made pursuant 

15 to section 211 with respect to participants 

16 currently subject to title II of this Act; 

17 ‘‘(iii) the Fund balance, as defined in 

18 paragraph (4), as of the date the unfunded 

19 liability is determined; and 

20 ‘‘(iv) any other appropriate amount, 

21 as determined by the Director in accord22 ance with generally accepted actuarial 

23 practices and principles.’’; 

24 (2) in paragraph (6)— 

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1 (A) by striking ‘‘ ‘normal cost’ ’’ and in2 serting ‘‘ ‘normal cost percentage’ ’’; and 

3 (B) by inserting ‘‘and standards (using dy4 namic assumptions)’’ after ‘‘practice’’; and 

5 (3) by adding at the end the following para6 graph: 

7 ‘‘(10) DYNAMIC ASSUMPTIONS.—The term ‘dy8 namic assumptions’ means economic assumptions 

9 that are used in determining actuarial costs and li10 abilities of a retirement system and in anticipating 

11 the effects of long-term future— 

12 ‘‘(A) investment yields; 

13 ‘‘(B) increases in rates of basic pay; and 

14 ‘‘(C) rates of price inflation.’’. 

15 (b) Section 202 of such Act (50 U.S.C. 2012) is 

16 amended by adding at the end the following: ‘‘The Fund 

17 is appropriated for the payment of benefits as provided 

18 by this title.’’. 

19 (c) Section 211(a)(2) of such Act (50 U.S.C. 

20 2021(a)(2)) is amended to read as follows: 

21 ‘‘(2) AGENCY CONTRIBUTIONS.—The Agency 

22 shall contribute to the Fund the amount computed 

23 in a manner similar to that used under section 

24 8334(a) of title 5, United States Code, pursuant to 

25 determinations of the normal cost percentage of the 

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1 Central Intelligence Agency Retirement and Dis2 ability System by the Director. Contributions under 

3 this paragraph shall be paid from amounts available 

4 for salaries and expenses.’’. 

5 (d) Section 261 of such Act (50 U.S.C. 2091) is 

6 amended— 

7 (1) by striking subsections (c), (d), and (e); and 

8 (2) by inserting after subsection (b) the fol9 lowing new subsections: 

10 ‘‘(c)(1) Not later than June 30, 2011, the Director 

11 shall cause to be made actuarial valuations of the Fund 

12 that determine the unfunded liability of the Fund, as of 

13 September 30, 2010, attributable to benefits payable 

14 under this title and make recommendations regarding its 

15 liquidation. After considering such recommendations, the 

16 Director shall establish an amortization schedule, includ17 ing a series of annual installments commencing October 

18 1, 2011, which provides for the liquidation of such liability 

19 by October 1, 2049. 

20 ‘‘(2) The Director shall redetermine the unfunded li21 ability of the Fund as of the close of the fiscal year, for 

22 each fiscal year beginning after September 30, 2010, 

23 through the fiscal year ending September 30, 2044, and 

24 shall establish a new amortization schedule, including a 

25 series of annual installments commencing on October 1 

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1 of the second subsequent fiscal year, which provides for 

2 the liquidation of such liability by October 1, 2049. 

3 ‘‘(3) The Director shall redetermine the unfunded li4 ability of the Fund as of the close of the fiscal year for 

5 each fiscal year beginning after September 30, 2044, and 

6 shall establish a new amortization schedule, including a 

7 series of annual installments commencing on October 1 

8 of the second subsequent fiscal year, which provides for 

9 the liquidation of such liability over five years. 

10 ‘‘(4) Amortization schedules established under this 

11 subsection shall be set in accordance with generally accept12 ed actuarial practices and principles, with interest com13 puted at the rate used in the most recent valuation of the 

14 Civil Service Retirement and Disability System. 

15 ‘‘(d) At the beginning of each fiscal year, beginning 

16 on October 1, 2011, the Director shall notify the Secretary 

17 of the Treasury of the amount of the first installment 

18 under the most recent amortization schedule established 

19 under subsection (c). The Secretary shall credit that 

20 amount to the Fund, as a Government contribution, out 

21 of any money in the Treasury of the United States not 

22 otherwise appropriated. For the purposes of section 504 

23 of the National Security Act of 1947, this amount shall 

24 be considered authorized.’’. 

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1 (e)(1) Title III of such Act (50 U.S.C. 2151 et seq.) 

2 is amended by adding at the end the following new section: 

3 ‘‘SEC. 308. FULL FUNDING OF RETIREE COSTS FOR EM4 PLOYEES DESIGNATED UNDER SECTION 302. 

5 ‘‘(a) In addition to other government contributions 

6 required by law, the Agency shall contribute to the Civil 

7 Service Retirement and Disability Fund (hereinafter in 

8 this section referred to as the ‘Fund’) amounts calculated 

9 in accordance with section 8423 of title 5, United States 

10 Code, based on the projected number of employees to be 

11 designated pursuant to section 302 of this Act. In addi12 tion, the Agency, in a manner similar to that established 

13 for employee contributions to the Fund by section 8422 

14 of title 5, United States Code, will contribute an amount 

15 equal to the difference between that contributed by the 

16 number of employees projected to be designated under sec17 tion 302 and the amounts that are actually being deducted 

18 and contributed from the basic pay of an equal number 

19 of employees pursuant to section 8422. The amounts of 

20 the Agency’s contributions under this subsection shall be 

21 determined by the Director of the Office of Personnel 

22 Management, in consultation with the Director, and shall 

23 be paid by the Agency from funds available for salaries 

24 and expenses. Agency employees designated pursuant to 

25 section 302 of this Act shall, commencing with such desmstockstill on DSKH9S0YB1PROD with BILLS

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1 ignation, have deducted from their basic pay the full 

2 amount required by section 8422 of title 5, United States 

3 Code, and such deductions shall be contributed to the 

4 Fund. 

5 ‘‘(b)(1) The Director of the Office of Personnel Man6 agement, in consultation with the Director, shall deter7 mine the total amount of unpaid contributions (govern8 ment and employee contributions) and interest attrib9 utable to the number of individuals employed with the 

10 Agency on September 30, 2011, who are projected to be 

11 designated under section 302 of this Act, but are not yet 

12 designated under that section as of that date. The amount 

13 shall be referred to as the section 302 unfunded liability. 

14 ‘‘(2) Not later than June 30, 2012, the Director of 

15 the Office of Personnel Management, in consultation with 

16 the Director, shall establish an amortization schedule, set17 ting forth a series of annual installments commencing 

18 September 30, 2012, which provides for the liquidation of 

19 the section 302 unfunded liability by September 30, 2019. 

20 ‘‘(3) At the end of each fiscal year, beginning on Sep21 tember 30, 2012, the Director shall notify the Secretary 

22 of the Treasury of the amount of the annual installment 

23 under the amortization schedule established under para24 graph (2) of this subsection. Before closing the accounts 

25 for that fiscal year, the Secretary shall credit that amount 

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1 to the Fund, out of any money in the Treasury of the 

2 United States not otherwise appropriated. 

3 ‘‘(c) Amounts paid by the Agency pursuant to this 

4 section are deemed to be specifically authorized by the 

5 Congress for the purposes of section 504 of the National 

6 Security Act of 1947.’’. 

7 (2) The table of contents of such Act is amended by 

8 inserting after the item relating to section 307 the fol9 lowing new item: 

‘‘Sec. 308. Full funding of retiree costs for employees designated under section 

302.’’. 

10 SEC. 503. FOREIGN SERVICE RETIREMENT AND DISABILITY 

11 SYSTEM. 

12 (a) Chapter 8 of title I of the Foreign Service Act 

13 of 1980, Public Law 96–465, (22 U.S.C. 4041 et seq.) 

14 94 Stat. 2071, as amended, is further amended in section 

15 804 (22 U.S.C. 4044)— 

16 (1) by amending paragraph (5) to read as fol17 lows: 

18 ‘‘(5) ‘normal cost percentage’ means the entry19 age normal cost computed in accordance with gen20 erally accepted actuarial practice and standards 

21 (using dynamic assumptions) and expressed as a 

22 level percentage of aggregate basic pay.’’; 

23 (2) by amending paragraph (14) to read as fol24 lows: 

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1 ‘‘(14) ‘unfunded liability’ means the estimated 

2 excess of— 

3 ‘‘(A) the actuarial present value of all fu4 ture benefits payable from the Fund under this 

5 part based on the service of current or former 

6 participants, over 

7 ‘‘(B) the sum of— 

8 ‘‘(i) the actuarial present value of de9 ductions to be withheld from the future 

10 basic pay of participants currently subject 

11 to this part pursuant to section 805; 

12 ‘‘(ii) the actuarial present value of the 

13 future contributions to be made pursuant 

14 to section 805 with respect to participants 

15 currently subject to this part; 

16 ‘‘(iii) the Fund balance, as defined in 

17 paragraph (7), as of the date the unfunded 

18 liability is determined, excluding any 

19 amount attributable to the Foreign Service 

20 Pension System, or contributions made 

21 under the Federal Employees’ Retirement 

22 Contribution Temporary Adjustment Act 

23 of 1983 by or on behalf of any individual 

24 who became subject to the Foreign Service 

25 Pension System; and 

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1 ‘‘(iv) any other appropriate amount, 

2 as determined by the Secretary of the 

3 Treasury in accordance with generally ac4 cepted actuarial practices and principles.’’ 

5 (3)(A) by striking the period at the end of 

6 paragraph (15) and inserting ‘‘; and’’; and 

7 (B) by adding at the end the following new 

8 paragraph: 

9 ‘‘(16) ‘dynamic assumptions’ means economic 

10 assumptions that are used in determining actuarial 

11 costs and liabilities of a retirement system and in 

12 anticipating the effects of long-term future— 

13 ‘‘(A) investment yields; 

14 ‘‘(B) increases in rates of basic pay; and 

15 ‘‘(C) rates of price inflation.’’. 

16 (b) Chapter 8 of title I of the Foreign Service Act 

17 of 1980, Public Law 96–465, (22 U.S.C. 4041 et seq.) 

18 94 Stat. 2071, as amended, is further amended in section 

19 852 (22 U.S.C. 4071a)— 

20 (1) in paragraph (4)— 

21 (A) by striking ‘‘normal cost’’ and insert22 ing ‘‘normal cost percentage’’; and 

23 (B) by striking ‘‘by the Secretary of 

24 State’’; 

25 (2) in paragraph (7)— 

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1 (A) by striking ‘‘supplemental’’ and insert2 ing ‘‘unfunded’’; 

3 (B) in subparagraph (B)(i) by striking 

4 ‘‘(I)’’ and ‘‘and (II) contributions for past civil5 ian and military service’’; and 

6 (C) in subparagraph (B)(ii) by inserting 

7 before the semicolon ‘‘with respect to partici8 pants currently subject to this part’’; and 

9 (3)(A) at the end of paragraph (8) by striking 

10 ‘‘and’’; 

11 (B) at the end of paragraph (9) by striking the 

12 period and inserting ‘‘; and’’; and 

13 (C) by adding at the end the following new 

14 paragraph: 

15 ‘‘(10) ‘dynamic assumptions’ means economic 

16 assumptions that are used in determining actuarial 

17 costs and liabilities of a retirement system and in 

18 anticipating the effects of long-term future— 

19 ‘‘(A) investment yields; 

20 ‘‘(B) increases in rates of basic pay; and 

21 ‘‘(C) rates of price inflation.’’. 

22 (c) Chapter 8 of title I of the Foreign Service Act 

23 of 1980, Public Law 96–465, (22 U.S.C. 4041 et seq.) 

24 94 Stat. 2071, as amended, is further amended in section 

25 805(a)(1) (22 U.S.C. 4045(a))— 

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1 (1) by striking the second sentence; 

2 (2) (by redesignating that subsection, as so 

3 amended, as (a)(1)(A); 

4 (3) by redesignating the last sentence of that 

5 subsection, as so amended as (a)(1)(C); 

6 (4) by inserting after subparagraph (A) the fol7 lowing new subparagraph: 

8 ‘‘(B) Each employing agency having par9 ticipants shall contribute to the Fund the 

10 amount computed in a manner similar to that 

11 used under section 8334(a) of title 5, United 

12 States Code, pursuant to determinations of the 

13 normal cost percentage of the Foreign Service 

14 Retirement and Disability System. Contribu15 tions under this subparagraph shall be paid 

16 from the appropriations or fund used for pay17 ment of the salary of the participant.’’; 

18 (5) in subsection (a)(2)(A) by striking ‘‘An 

19 equal amount shall be contributed by the Depart20 ment’’ and inserting in its place ‘‘Each employing 

21 agency having participants shall contribute to the 

22 Fund the amount computed in a manner similar to 

23 that used under section 8334(a) of title 5, United 

24 States Code, pursuant to determinations of the normstockstill on DSKH9S0YB1PROD with BILLS

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1 mal cost percentage of the Foreign Service Retire2 ment and Disability System’’; and 

3 (6) in subsection (a)(2)(B) by striking ‘‘An 

4 equal amount shall be contributed by the Depart5 ment’’ and inserting in its place ‘‘Each employing 

6 agency having participants shall contribute to the 

7 Fund from amounts available for salaries and ex8 penses the amount computed in a manner similar to 

9 that used under section 8334(a) of title 5, United 

10 States Code, pursuant to determinations of the nor11 mal cost percentage of the Foreign Service Retire12 ment and Disability System’’. 

13 (d) Chapter 8 of title I of the Foreign Service Act 

14 of 1980, Public Law 96–465, (22 U.S.C. 4041 et seq.) 

15 94 Stat. 2071, as amended, is further amended by repeal16 ing sections 821 and 822 (22 U.S.C. 4061 and 4062) and 

17 by adding the following new section: 

18 ‘‘§ 821. Unfunded liability 

19 ‘‘(a)(1) Not later than June 30, 2011, the Secretary 

20 of State shall cause to be made actuarial valuations of the 

21 Fund that determine the unfunded liability of the Fund, 

22 as of September 30, 2010, attributable to benefits payable 

23 under this subchapter and make recommendations regard24 ing its liquidation. After considering such recommenda25 tions, the Secretary of State shall establish an amortizamstockstill on DSKH9S0YB1PROD with BILLS

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1 tion schedule, including a series of annual installments 

2 commencing October 1, 2010, which provides for the liq3 uidation of such liability by October 1, 2049. 

4 ‘‘(2) The Secretary of State shall redetermine the un5 funded liability of the Fund as of the close of the fiscal 

6 year, for each fiscal year beginning after September 30, 

7 2010, through the fiscal year ending September 30, 2044, 

8 and shall establish a new amortization schedule, including 

9 a series of annual installments commencing on October 1 

10 of the second subsequent fiscal year, which provides for 

11 the liquidation of such liability by October 1, 2049. 

12 ‘‘(3) The Secretary of State shall redetermine the un13 funded liability of the Fund as of the close of the fiscal 

14 year for each fiscal year beginning after September 30, 

15 2044, and shall establish a new amortization schedule, in16 cluding a series of annual installments commencing on Oc17 tober 1 of the second subsequent fiscal year, which pro18 vides for the liquidation of such liability over five years. 

19 ‘‘(4) Amortization schedules established under this 

20 subsection shall be set in accordance with generally accept21 ed actuarial practices and principles, with interest com22 puted at the rate used in the most recent valuation of the 

23 Foreign Service Retirement and Disability System. 

24 ‘‘(b) At the beginning of each fiscal year, beginning 

25 on October 1, 2011, the Secretary of State shall notify 

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1 the Secretary of the Treasury of the amount of the first 

2 installment under the most recent amortization schedule 

3 established under paragraph (1). The Secretary of the 

4 Treasury shall credit that amount to the Fund, as a Gov5 ernment contribution, out of any money in the Treasury 

6 of the United States not otherwise appropriated.’’. 

7 (e) Chapter 8 of title I of the Foreign Service Act 

8 of 1980, Public Law 96–465, (22 U.S.C. 4041 et seq.) 

9 94 Stat. 2071, as amended, is further amended in section 

10 857(b)(1) (22 U.S.C. 4071f(b)(1)) by striking ‘‘equal an11 nual installments’’ and inserting ‘‘annual installments set 

12 in accordance with generally accepted actuarial practices 

13 and principles’’. 

14 (f) Chapter 8 of title I of the Foreign Service Act 

15 of 1980, Public Law 96–465, (22 U.S.C. 4041 et seq.) 

16 94 Stat. 2071, as amended, is further amended in section 

17 859 (22 U.S.C. 4071h) by adding ‘‘percentage’’ after 

18 ‘‘normal cost’’. 

19 (g) Chapter 8 of title I of the Foreign Service Act 

20 of 1980, Public Law 96–465, (22 U.S.C. 4041 et seq.) 

21 94 Stat. 2071, as amended, is further amended in section 

22 802 (22 U.S.C. 4042) by adding at the end the following: 

23 ‘‘The Fund is appropriated for the payment of benefits 

24 as provided by this subchapter.’’. 

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1 (h) Chapter 8 of title I of the Foreign Service Act 

2 of 1980, Public Law 96–465, (22 U.S.C. 4041 et seq.) 

3 94 Stat. 2071, as amended, is further amended in section 

4 818 (22 U.S.C. 4058) by striking ‘‘System’’ and inserting 

5 ‘‘Systems under this subchapter’’. 

6 SEC. 504. PUBLIC HEALTH SERVICE COMMISSIONED CORPS 

7 RETIREMENT SYSTEM. 

8 (a) IN GENERAL.—Title II of the Public Health Serv9 ice Act (42 U.S.C. 202 et seq.) is amended by adding at 

10 the end the following new part: 

11 ‘‘PART C—PUBLIC HEALTH SERVICE COMMISSIONED

12 CORPS RETIREMENT SYSTEM

13 ‘‘ESTABLISHMENT AND PURPOSE OF FUND

14 ‘‘SEC. 251. There is established on the books of the 

15 Treasury a fund to be known as the Public Health Service 

16 Commissioned Corps Retirement Fund (hereinafter in this 

17 part referred to as the ‘Fund’), which shall be adminis18 tered by the Secretary. The Fund shall be used for the 

19 accumulation of funds in order to finance on an actuarially 

20 sound basis liabilities of the Department of Health and 

21 Human Services for benefits payable on account of retire22 ment, disability, or death to commissioned officers of the 

23 Public Health Service and to their survivors pursuant to 

24 part A of this title. 

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1 ‘‘ASSETS OF THE FUND

2 ‘‘SEC. 252. There shall be deposited into the Fund 

3 the following, which shall constitute the assets of the 

4 Fund: 

5 ‘‘(1) Amounts paid into the Fund under section 

6 255. 

7 ‘‘(2) Any return on investment of the assets of 

8 the Fund. 

9 ‘‘(3) Amounts transferred into the Fund pursu10 ant to section 504(c) of the Spending, Deficit, and 

11 Debt Control Act of 2009. 

12 ‘‘PAYMENT FROM THE FUND

13 ‘‘SEC. 253. There shall be paid from the Fund bene14 fits payable on account of retirement, disability, or death 

15 to commissioned officers of the Public Health Service and 

16 to their survivors pursuant to part A of this title. 

17 ‘‘DETERMINATION OF CONTRIBUTIONS TO THE FUND

18 ‘‘SEC. 254. (a)(1) Not later than June 30, 2011, the 

19 Secretary shall determine the unfunded liability of the 

20 Fund attributable to service performed as of September 

21 30, 2010, which is ‘active service’ for the purpose of sec22 tion 212. The Secretary shall establish an amortization 

23 schedule, including a series of annual installments com24 mencing October 1, 2011, which provides for the liquida25 tion of such liability by October 1, 2049. 

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1 ‘‘(2) The Secretary shall redetermine the unfunded 

2 liability of the Fund as of the close of the fiscal year, for 

3 each fiscal year beginning after September 30, 2010, 

4 through the fiscal year ending September 30, 2044, and 

5 shall establish a new amortization schedule, including a 

6 series of annual installments commencing on October 1 

7 of the second subsequent fiscal year, which provides for 

8 the liquidation of such liability by October 1, 2049. 

9 ‘‘(3) The Secretary shall redetermine the unfunded 

10 liability of the Fund as of the close of the fiscal year for 

11 each fiscal year beginning after September 30, 2044, and 

12 shall establish a new amortization schedule, including a 

13 series of annual installments commencing on October 1 

14 of the second subsequent fiscal year, which provides for 

15 the liquidation of such liability over five years. 

16 ‘‘(b) The Secretary shall determine each fiscal year, 

17 in sufficient time for inclusion in the budget request for 

18 the following fiscal year, the total amount of Department 

19 of Health and Human Services contributions to be made 

20 to the Fund during the fiscal year under section 255(a). 

21 That amount shall be the sum of— 

22 ‘‘(1) the product of— 

23 ‘‘(A) the current estimate of the value of 

24 the single level percentage of basic pay to be de25 termined under subsection (c)(1) at the time of 

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1 the most recent actuarial valuation under sub2 section (c); and 

3 ‘‘(B) the total amount of basic pay ex4 pected to be paid during that fiscal year to 

5 commissioned officers of the Public Health 

6 Service on active duty (other than active duty 

7 for training); and 

8 ‘‘(2) the product of— 

9 ‘‘(A) the current estimate of the value of 

10 the single level percentage of basic pay and of 

11 compensation (paid pursuant to section 206 of 

12 title 37, United States Code) to be determined 

13 under subsection (c)(2) at the time of the most 

14 recent actuarial valuation under subsection (c); 

15 and 

16 ‘‘(B) the total amount of basic pay and of 

17 compensation (paid pursuant to section 206 of 

18 title 37, United States Code) expected to be 

19 paid during the fiscal year to commissioned of20 ficers of the Reserve Corps of the Public Health 

21 Service (other than officers on full-time duty 

22 other than for training) who are not otherwise 

23 described in subparagraph (A). 

24 ‘‘(c) Not less often than every four years thereafter 

25 (or by the fiscal year end prior to the effective date of 

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1 any statutory change affecting benefits payable on account 

2 of retirement, disability, or death to commissioned officers 

3 or their survivors), the Secretary shall carry out an actu4 arial valuation of benefits payable on account of retire5 ment, disability, or death to commissioned officers of the 

6 Public Health Service and to their survivors pursuant to 

7 part A of this title. Each such actuarial valuation shall 

8 be signed by an enrolled Actuary and shall include— 

9 ‘‘(1) a determination (using the aggregate 

10 entry-age normal cost method) of a single level per11 centage of basic pay for commissioned officers of the 

12 Public Health Service on active duty (other than ac13 tive duty for training); and 

14 ‘‘(2) a determination (using the aggregate 

15 entry-age normal cost method) of a single level per16 centage of basic pay and of compensation (paid pur17 suant to section 206 of title 37, United States Code) 

18 of commissioned officers of the Reserve Corps of the 

19 Public Health Service (other than officers on full 

20 time duty other than for training) who are not oth21 erwise described in paragraph (1). 

22 ‘‘(d) All determinations under this section shall be in 

23 accordance with generally accepted actuarial principles 

24 and practices and, where appropriate, shall follow the genmstockstill on DSKH9S0YB1PROD with BILLS

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1 eral pattern of methods and assumptions approved by the 

2 Department of Defense Retirement Board of Actuaries. 

3 ‘‘(e) The Secretary shall provide for the keeping of 

4 such records as are necessary for determining the actu5 arial status of the Fund. 

6 ‘‘PAYMENTS INTO THE FUND

7 ‘‘SEC. 255. (a) From amounts available to the De8 partment of Health and Human Services for salaries and 

9 expenses, the Secretary shall pay into the Fund at the end 

10 of each month the amount that is the sum of— 

11 ‘‘(1) the product of— 

12 ‘‘(A) the level percentage of basic pay de13 termined using all the methods and assump14 tions approved for the most recent (as of the 

15 first day of the current fiscal year) actuarial 

16 valuation under sections 254(C)(1) (except that 

17 any statutory change affecting benefits payable 

18 on account of retirement, disability, or death to 

19 commissioned officers or their survivors that is 

20 effective after the date of that valuation and on 

21 or before the first day of the current fiscal year 

22 shall be used in such determination); and 

23 ‘‘(B) the total amount of basic pay accrued 

24 for that month by commissioned officers of the 

25 Public Health Service on active duty (other 

26 than active duty for training); and 

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1 ‘‘(2) the product of— 

2 ‘‘(A) the level percentage of basic pay and 

3 of compensation (paid pursuant to section 206 

4 of title 37, United States Code) determined 

5 using all the methods and assumptions ap6 proved for the most recent (as of the first day 

7 of the current fiscal year) actuarial valuation 

8 under section 254(C)(2) (except that any statu9 tory change affecting benefits payable on ac10 count of retirement, disability, or death to com11 missioned officers or their survivors that is ef12 fective after the date of that valuation and on 

13 or before the first day of the current fiscal year 

14 shall be used in such determinations); and 

15 ‘‘(B) the total amount of basic pay and of 

16 compensation (paid pursuant to section 206 of 

17 title 37, United States Code) accrued for that 

18 month by commissioned officers of the Reserve 

19 Corps of the Public Health Service (other than 

20 officers on full-time duty other than for train21 ing). 

22 ‘‘(b) At the beginning of each fiscal year, beginning 

23 on October 1, 2011, the Secretary shall certify to the Sec24 retary of the Treasury the amount of the first installment 

25 under the most recent amortization schedule established 

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1 under section 254(a). The Secretary of the Treasury shall 

2 pay into the Fund from the General Fund of the Treasury 

3 the amount so certified. Such payment shall be the con4 tribution to the Fund for that fiscal year. 

5 ‘‘INVESTMENTS OF ASSETS OF FUND

6 ‘‘SEC. 256. The Secretary may request the Secretary 

7 of the Treasury to invest such portion of the Fund as is 

8 not, in the judgment of the Secretary, required to meet 

9 the current needs of the Fund. Such investments shall be 

10 made by the Secretary of the Treasury in public debt secu11 rities with maturities suitable to the needs of the Fund, 

12 as determined by the Secretary, and bearing interest at 

13 rates determined by the Secretary of the Treasury, taking 

14 into consideration current market yields on outstanding 

15 marketable obligations of the United States of comparable 

16 maturities. The income on such investments shall be cred17 ited to and form a part of the Fund. 

18 ‘‘IMPLEMENTATION YEAR EXCEPTIONS

19 ‘‘SEC. 257. (a) To avoid funding shortfalls in the first 

20 year should formal actuarial determinations not be avail21 able in time for budget preparation, the amounts used in 

22 the first year in sections 255(a)(1)(A) and 255(a)(2)(A) 

23 shall be set equal to those estimates in sections 

24 254(b)(1)(A) and 254(b)(2)(A) if final determinations are 

25 not available. The original unfunded liability as defined 

26 in section 254(a) shall include an adjustment to correct 

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1 for this difference between the formal actuarial determina2 tions and the estimates in sections 254(b)(1)(A) and 

3 254(b)(2)(A).’’. 

4 (b) CONFORMING AMENDMENTS.—Section 214 of the 

5 Public Health Service Act (42 U.S.C. 215) is amended 

6 by adding at the end the following new subsection: 

7 ‘‘(e) The Secretary shall condition any detail under 

8 subsection (a), (b), or (c) upon the agreement of the exec9 utive department, State, subdivision, Committee of the 

10 Congress, or institution concerned to pay to the Depart11 ment of Health and Human Services, in advance or by 

12 way of reimbursement, for the full cost of the detail in13 cluding that portion of the contributions under section 

14 255(a) that is attributable to the detailed personnel.’’. 

15 (c) TRANSFER OF APPROPRIATIONS.—There shall be 

16 transferred on October 1, 2012, into the fund established 

17 under section 251 of the Public Health Service Act, as 

18 added by subsection (a), any obligated or unobligated bal19 ances of appropriations made to the Department of Health 

20 and Human Services that are currently available for bene21 fits payable on account of retirement, disability, or death 

22 to commissioned officers of the Public Health Service and 

23 to their survivors pursuant to part A of title II of the Pub24 lic Health Service Act, and amounts so transferred shall 

25 be part of the assets of the Fund. 

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1 SEC. 505. NATIONAL OCEANIC AND ATMOSPHERIC ADMIN2 ISTRATION COMMISSIONED OFFICER CORPS 

3 RETIREMENT SYSTEM. 

4 (a) IN GENERAL.—The National Oceanic and Atmos5 pheric Administration Commissioned Officer Corps Act of 

6 2002 (title II of Public Law 107–372) is amended by in7 serting after section 246 (33 U.S.C. 3046) the following 

8 new section: 

9 ‘‘SEC. 246A NATIONAL OCEANIC AND ATMOSPHERIC ADMIN10 ISTRATION COMMISSIONED OFFICER CORPS 

11 RETIREMENT SYSTEM. 

12 ‘‘(a) ESTABLISHMENT AND PURPOSE OF NOAA 

13 COMMISSIONED OFFICER CORPS RETIREMENT FUND.— 

14 ‘‘(1) There is established on the books of the Treas15 ury a fund to be known as the National Oceanic and At16 mospheric Administration Commissioned Officer Corps 

17 Retirement Fund (hereinafter in this section referred to 

18 as the ‘Fund’), which shall be administered by the Sec19 retary. The Fund shall be used for the accumulation of 

20 funds in order to finance on an actuarially sound basis 

21 liabilities of the Department of Commerce under military 

22 retirement and survivor benefit programs for the commis23 sioned officers corps. 

24 ‘‘(2) The term ‘military retirement and survivor ben25 efit program’ means— 

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1 ‘‘(A) the provisions of this title and title 10, 

2 United States Code, creating entitlement to, or de3 termining, the amount of retired pay; 

4 ‘‘(B) the programs under the jurisdiction of the 

5 Department of Defense providing annuities for sur6 vivors and members and former members of the 

7 Armed Forces, including chapter 73 of title 10, sec8 tion 4 of Public Law 92–425, and section 5 of Pub9 lic Law 96–202, as made applicable to the commis10 sioned officer corps by section 261. 

11 ‘‘(b) ASSETS OF THE FUND.—There shall be depos12 ited into the Fund the following, which shall constitute 

13 the assets of the Fund: 

14 ‘‘(1) Amounts paid into the Fund under sub15 section (e). 

16 ‘‘(2) Any return on investment of the assets of 

17 the Fund. 

18 ‘‘(3) Amounts transferred into the Fund pursu19 ant to section 405(b) of the Spending, Deficit, and 

20 Debt Control Act of 2009. 

21 ‘‘(c) PAYMENTS FROM THE FUND.—There shall be 

22 paid from the Fund benefits payable on account of mili23 tary retirement and survivor benefit programs to commis24 sioned officers of the commissioned officer corps and their 

25 survivors. 

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1 ‘‘(d) DETERMINATION OF CONTRIBUTIONS TO THE

2 FUND.—(1)(A) Not later than June 30, 2010, the Sec3 retary shall determine the unfunded liability of the Fund 

4 attributable to service performed as of September 30, 

5 2010, which is ‘active service’ for the purpose of this title. 

6 The Secretary shall establish an amortization schedule, in7 cluding a series of annual installments commencing Octo8 ber 1, 2011, which provides for the liquidation of such 

9 liability by October 1, 2049. 

10 ‘‘(B) The Secretary shall redetermine the unfunded 

11 liability of the Fund as of the close of the fiscal year, for 

12 each fiscal year beginning after September 30, 2010, 

13 through the fiscal year ending September 30, 2044, and 

14 shall establish a new amortization schedule, including a 

15 series of annual installments commencing on September 

16 30 of the subsequent fiscal year, which provides for the 

17 liquidation of such liability by October 1, 2049. 

18 ‘‘(C) The Secretary shall redetermine the unfunded 

19 liability of the Fund as of the close of the fiscal year for 

20 each fiscal year beginning after September 30, 2044, and 

21 shall establish a new authorization schedule, including se22 ries of annual installments commencing on October 1 of 

23 the second subsequent fiscal year, which provides for the 

24 liquidation of such liability over five years. 

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1 ‘‘(2) The Secretary shall determine each fiscal year, 

2 in sufficient time for inclusion in the budget request for 

3 the following fiscal year, the total amount of Department 

4 of Commerce contributions to be made to the Fund during 

5 that fiscal year under (e). The amount shall be the product 

6 of— 

7 ‘‘(A) the current estimate of the value of the 

8 single level percentage of basic pay to be determined 

9 under subsection (e) at the time of the most recent 

10 actuarial valuation under paragraph (3); and 

11 ‘‘(B) the total amount of basic pay expected to 

12 be paid during that fiscal year to commissioned offi13 cers of NOAA on active duty. 

14 ‘‘(3) Not less often then every four years (or by the 

15 fiscal year end before the effective date of any statutory 

16 change affecting benefits payable on account of retire17 ment, disability, or death to commissioned officers or their 

18 survivors), the Secretary shall carry out an actuarial valu19 ation of benefits payable on account of military retirement 

20 and survivor benefit programs to commissioned officers of 

21 the Administration and to their survivors. Each such actu22 arial valuation shall be signed by an enrolled Actuary and 

23 shall include a determination (using the aggregate entry24 age normal cost method) of a single level percentage of 

25 basic pay for commissioned officers on active duty. 

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1 ‘‘(4) All determinations under this section shall be in 

2 accordance with generally accepted actuarial principles 

3 and practices, and, where appropriate, shall follow the 

4 general pattern of methods and assumptions approved by 

5 the Department of Defense Retirement Board of Actu6 aries. 

7 ‘‘(5) The Secretary shall provide for the keeping of 

8 such records as are necessary for determining the actu9 arial status of the Fund. 

10 ‘‘(e) PAYMENTS INTO THE FUND.—(1) From 

11 amounts appropriated to the National Oceanic Atmos12 pheric Administration for salaries and expenses, the Sec13 retary shall pay into the Fund at the end of each month 

14 the amount that is the product of— 

15 ‘‘(A) the level percentage of basic pay deter16 mined using all the methods and assumptions ap17 proved for the most recent (as of the first day of the 

18 current fiscal year) actuarial valuation under sub19 section (d) (except that any statutory change affect20 ing benefits payable on account of military retire21 ment and survivor benefit programs to commissioned 

22 officers of the Administration and to their survivors 

23 that is effective date after the date of that valuation 

24 and on or before the first day of the current fiscal 

25 year shall be used in such determination); and 

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1 ‘‘(B) the total amount of basic pay accrued for 

2 that month by commissioned officers on active duty. 

3 ‘‘(2)(A) At the beginning of each fiscal year, the Sec4 retary shall determine the sum of— 

5 ‘‘(i) the amount of the payment for that year 

6 under the amortization of the original unfunded li7 ability of the Fund; 

8 ‘‘(ii) the amount (including any negative 

9 amount) for that year under the most recent amorti10 zation schedule determined by the Secretary for the 

11 amortization of any cumulative actuarial gain or loss 

12 to the Fund, resulting from changes in benefits; and 

13 ‘‘(iii) the amount (including any negative 

14 amount) for that year under the most recent amorti15 zation schedule determined by the Secretary for the 

16 amortization or any cumulative actuarial gain or loss 

17 to the Fund resulting from changes in actuarial as18 sumptions and from experience different from the 

19 assumed since the last valuation. 

20 The Secretary shall promptly certify the amount of the 

21 sum to the Secretary of the Treasury. 

22 ‘‘(B) Upon receiving the certification pursuant to 

23 paragraph (1), the Secretary of the Treasury shall 

24 promptly pay into the Fund from the General Fund of 

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1 the Treasury the amount so certified. Such payment shall 

2 be the contribution to the Fund for that fiscal year. 

3 ‘‘(f) INVESTMENT OF ASSETS OF THE FUND.—The 

4 Secretary may request the Secretary of the Treasury to 

5 invest such portion of the Fund as is not, in the judgment 

6 of the Secretary, required to meet the current needs of 

7 the Fund. Such investments shall be made by the Sec8 retary of the Treasury in public debt securities with matu9 rities suitable to the needs of the Fund, as determined 

10 by the Secretary, and bearing interest at rates determined 

11 by the Secretary of the Treasury, taking into consideration 

12 current market yields on outstanding marketable obliga13 tions of the United States of comparable maturities. The 

14 income of such investments shall be credited to and form 

15 a part of the Fund. 

16 ‘‘(g) IMPLEMENTATION YEAR EXCEPTIONS.—(1) To 

17 avoid funding shortfalls in the first year should formal ac18 tuarial determinations not be available in time for budget 

19 preparation, the amounts used in the first year in sub20 section (e)(1)(A) shall be set equal to the estimate in sub21 section (d)(2)(A) if final determinations are not available. 

22 The original unfunded liability as determined in sub23 section (d)(1) shall include an adjustment to correct for 

24 this difference between the formal actuarial determina25 tions and the estimates in subsection (d)(2)(A).’’. 

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1 (b) TRANSFER OF APPROPRIATIONS.—There shall be 

2 transferred on October 1, 2012, into the fund established 

3 under section 246A(a) of the National Oceanic and At4 mospheric Administration Commissioned Officer Corps 

5 Act of 2002 (title II of Public Law 107–372, as added 

6 by subsection (a)), any obligated and unobligated balance 

7 of appropriations made to the Department of Commerce 

8 that are available as of the date of the enactment of this 

9 Act for benefits payable on account of military retirement 

10 and survivor benefit programs to commissioned officers of 

11 the NOAA Commissioned Officer Corps and to their sur12 vivors, and amounts so transferred shall be part of the 

13 assets of the Fund, effective October 1, 2012. 

14 (c) EFFECTIVE DATE.—Subsection (c) (relating to 

15 payments from the Fund) and (e) (relating to payments 

16 into the Fund) of section 246A of the National Oceanic 

17 and Atmospheric Administration Commissioned Officer 

18 Corps Act of 2002 (title II of Public Law 107–372, as 

19 added by subsection (a)), shall take effect on October 1, 

20 2010. 

21 SEC. 506. COAST GUARD MILITARY RETIREMENT SYSTEM. 

22 (a) ACCRUAL FUNDING FOR COAST GUARD RETIRE23 MENT.— 

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1 (1) IN GENERAL.—Chapter 11 of title 14, 

2 United States Code, is amended by adding at the 

3 end the following new subchapter: 

4 ‘‘SUBCHAPTER V—COAST GUARD MILITARY 

5 RETIREMENT FUND 

6 ‘‘§ 441. Establishment and purpose of Fund; defini7 tions 

8 ‘‘(a) ESTABLISHMENT OF FUND; PURPOSE.—There 

9 is established on the books of the Treasury a fund to be 

10 known as the Coast Guard Military Retirement Fund 

11 (hereinafter in this subchapter referred to as the ‘Fund’), 

12 which shall be administered by the Secretary. The Fund 

13 shall be used for the accumulations of funds in order to 

14 finance on an actuarially sound basis liabilities of the 

15 Coast Guard under military retirement and survivor ben16 efit programs. 

17 ‘‘(b) MILITARY RETIREMENT AND SURVIVOR BEN18 EFIT PROGRAMS DEFINED.—In this subchapter, the term 

19 ‘military retirement and survivor benefit programs’ 

20 means— 

21 ‘‘(1) the provisions of this title and title 10 cre22 ating entitlement to, or determining the amount of, 

23 retired pay; 

24 ‘‘(2) the programs providing annuities for sur25 vivors of members and former members of the 

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1 armed forces, including chapter 73 of title 10, sec2 tion 4 of Public Law 92–425, and section 5 of Pub3 lic Law 96–402; and 

4 ‘‘(3) the authority provided in section 1048(h) 

5 of title 10. 

6 ‘‘(c) SECRETARY DEFINED.—In this subchapter, the 

7 term ‘Secretary’ means the Secretary of Homeland Secu8 rity when the Coast Guard is not operating as a service 

9 in the Navy and the Secretary of Defense when the Coast 

10 Guard is operating as a service in the Navy. 

11 ‘‘§ 442. Assets of the Fund 

12 ‘‘There shall be deposited into the Fund the fol13 lowing, which shall constitute the assets of the Fund: 

14 ‘‘(1) Amounts paid into the Fund under section 

15 445 of this title. 

16 ‘‘(2) Any return on investment of the assets of 

17 the Fund. 

18 ‘‘(3) Amounts transferred into the Fund pursu19 ant to section 406(d) of the Spending, Deficit, and 

20 Debt Control Act of 2009. 

21 ‘‘§ 443. Payments from the Fund 

22 ‘‘(a) IN GENERAL.—There shall be paid from the 

23 Fund the following: 

24 ‘‘(1) Retired pay payable to persons on the re25 tired list of the Coast Guard. 

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1 ‘‘(2) Retired pay payable under chapter 1223 of 

2 title 10 to former members of the Coast Guard and 

3 the former United States Lighthouse Service. 

4 ‘‘(3) Benefits payable under programs that pro5 vide annuities for survivors of members and former 

6 members of the armed forces, including chapter 73 

7 of title 10, section 4 of Public Law 92–425, and sec8 tion 5 of Public Law 96–402. 

9 ‘‘(4) Amounts payable under section 1048(h) of 

10 title 10. 

11 ‘‘(b) AVAILABILITY OF ASSETS OF THE FUND.—The 

12 assets of the Fund are hereby made available for payments 

13 under subsection (a). 

14 ‘‘§ 444. Determination of contributions to the Fund 

15 ‘‘(a) INITIAL UNFUNDED LIABILITY.—(1) Not later 

16 than June 30, 2011, the Secretary shall determine the un17 funded liability of the Fund attributable to service per18 formed as of September 30, 2010, which is ‘active service’ 

19 for the purposes of section 212. The Secretary shall estab20 lish an amortization schedule, including a series of annual 

21 installments commencing October 1, 2011, which provides 

22 for the liquidation of such liability by October 1, 2049. 

23 ‘‘(2) The Secretary shall redetermine the unfunded 

24 liability of the Fund as of the close of the fiscal year, for 

25 each beginning after September 30, 2010, through the fismstockstill on DSKH9S0YB1PROD with BILLS

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1 cal year ending September 30, 2044, and shall establish 

2 a new amortization schedule, including a series of annual 

3 installments commencing on October 1 of the second sub4 sequent fiscal year, which provides for the liquidation of 

5 such liability by October 1, 2049. 

6 ‘‘(3) The Secretary shall redetermine the unfunded 

7 liability of the Fund as of the close of the fiscal year for 

8 each fiscal year beginning after September 30, 2044, and 

9 shall establish a new amortization schedule, including a 

10 series of annual installments commencing on October 1 

11 of the second subsequent fiscal year, which provides for 

12 the liquidation of such liability over five years. 

13 ‘‘(b) ANNUAL CONTRIBUTIONS FOR CURRENT SERV14 ICES.—(1) The Secretary shall determine each fiscal year, 

15 in sufficient time for inclusion in the budget request for 

16 the following fiscal year, the total amount of Department 

17 of Homeland Security, or Department of Defense, con18 tributions to be made to the Fund during that fiscal year 

19 under section 445(a) of this title. That amount shall be 

20 the sum of the following: 

21 ‘‘(A) The product of— 

22 ‘‘(i) the current estimate of the value of 

23 the single level percentage of basic pay to be de24 termined under subsection (c)(1)(A) at the time 

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1 of the most recent actuarial valuation under 

2 subsection (c); and 

3 ‘‘(ii) the total amount of basic pay ex4 pected to be paid during that fiscal year to 

5 members of the Coast Guard on active duty 

6 (other than active duty for training). 

7 ‘‘(B) The product of— 

8 ‘‘(i) the current estimate of the value of 

9 the single level percentage of basic pay and of 

10 compensation (paid pursuant to section 206 of 

11 title 37) to be determined under subsection 

12 (c)(1)(B) at the time of the most recent actu13 arial valuation under subsection (c); and 

14 ‘‘(ii) the total amount of basic pay and 

15 compensation (paid pursuant to section 206 of 

16 title 37) expected to be paid during that fiscal 

17 year to members of the Coast Guard Ready Re18 serve (other than members on full-time Reserve 

19 duty other than for training) who are not other20 wise described in subparagraph (A)(ii). 

21 ‘‘(2) The amount determined under paragraph (1) for 

22 any fiscal year is the amount needed to be appropriated 

23 to the Department of Homeland Security for that fiscal 

24 year for payments to be made to the Fund during that 

25 year under section 445(a) of this title. The President shall 

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1 include not less than the full amount so determined in the 

2 budget transmitted to Congress for that fiscal year under 

3 section 1105 of title 31. The President may comment and 

4 make recommendations concerning any such amount. 

5 ‘‘(c) PERIODIC ACTUARIAL VALUATIONS.—(1) Not 

6 less often than every four years (or before the effective 

7 date of any statutory change affecting benefits payable on 

8 account of retirement, disability, or death to members of 

9 the Coast Guard or their survivors), the Secretary shall 

10 carry out an actuarial valuation of the Coast Guard mili11 tary retirement and survivor benefit programs. Each actu12 arial valuation of such programs shall be signed by an en13 rolled actuary and shall include— 

14 ‘‘(A) a determination (using the aggregate 

15 entry-age normal cost method) of a single level per16 centage of basic pay for members of the Coast 

17 Guard on active duty (other than active duty for 

18 training); and 

19 ‘‘(B) a determination (using the aggregate 

20 entry-age normal cost method) of single level per21 centage of basic pay and of compensation (paid pur22 suant to section 206 of title 37) for members of the 

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1 ing) who are not otherwise described in subpara2 graph (A). 

3 ‘‘(2) Such single level percentages shall be used for 

4 the purposes of subsection (b) and section 445(a) of this 

5 title. 

6 ‘‘(d) USE OF GENERALLY ACCEPTED ACTUARIAL

7 PRINCIPLES AND PRACTICES.—All determinations under 

8 this section shall be in accordance with generally accepted 

9 actuarial principles and practices and, where appropriate, 

10 shall follow the general pattern of methods and assump11 tions approved by the Department of Defense Retirement 

12 Board of Actuaries. 

13 ‘‘(e) RECORDS.—The Secretary shall provide for the 

14 keeping of such records as are necessary for determining 

15 the actuarial status of the Fund. 

16 ‘‘§ 445. Payments into the Fund 

17 ‘‘(a) MONTHLY ACCRUAL CHARGE FOR CURRENT

18 SERVICES.—From amounts appropriated to the Coast 

19 Guard for salaries and expenses, the Secretary shall pay 

20 into the Fund at the end of each month as the Department 

21 of Homeland Security, or Department of Defense, con22 tribution to the Fund for that month the amount that is 

23 the sum of the following: 

24 ‘‘(1) The product of— 

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1 ‘‘(A) the level percentage of basic pay de2 termined using all the methods and assump3 tions approved for the most recent (as of the 

4 first day of the current fiscal year) actuarial 

5 valuation under section 444(c)(1)(A) of this 

6 title (except that any statutory change in the 

7 military retirement and survivor benefit systems 

8 that is effective after the date of that valuation 

9 and on or before the first day of the current fis10 cal year shall be used in such determination); 

11 and 

12 ‘‘(B) the total amount of basic pay accrued 

13 for that month by members of the Coast Guard 

14 on active duty (other than active duty for train15 ing). 

16 ‘‘(2) The product of— 

17 ‘‘(A) the level percentage of basic pay and 

18 compensation (accrued pursuant to section 206 

19 of title 37) determined using all the methods 

20 and assumptions approved for the most recent 

21 (as of the first day of the current fiscal year) 

22 actuarial valuation under section 444(c)(1)(B) 

23 of this title (except that any statutory change 

24 in the military retirement and survivor benefit 

25 systems that is effective after the date of that 

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1 valuation and on or before the first day of the 

2 current fiscal year shall be used in such deter3 mination); and 

4 ‘‘(B) the total amount of basic pay and of 

5 compensation (paid pursuant to section 206 of 

6 title 37) accrued for that month by members of 

7 the Ready Reserve (other than members of full8 time Reserve duty other than for training) who 

9 are not otherwise described in paragraph 

10 (1)(B). 

11 ‘‘(b) ANNUAL PAYMENT FOR UNFUNDED LIABIL12 ITIES.—(1) At the beginning of each fiscal year, beginning 

13 on October 1, 2011, the Secretary shall certify to the Sec14 retary of the Treasury the amount of the first installment 

15 under the most recent amortization schedule established 

16 under section 254(a). The Secretary of the Treasury shall 

17 promptly pay into the Fund from the General Fund of 

18 the Treasury the amount so certified. Such payment shall 

19 be the contribution to the Fund for that fiscal year. 

20 ‘‘§ 446. Investment of assets of the Fund 

21 ‘‘The Secretary may request the Secretary of the 

22 Treasury to invest such portion of the Fund as is not, 

23 in the judgment of the Secretary, required to meet the 

24 current needs of the Fund. Such investments shall be 

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1 rities with maturities suitable to the needs of the Fund, 

2 as determined by the Secretary, and bearing interest at 

3 rates determined by the Secretary of the Treasury, taking 

4 into consideration current market yields on outstanding 

5 marketable obligations of the United States of comparable 

6 maturities. The income on such investments shall be cred7 ited to and form a part of the Fund.’’. 

8 (2) TECHNICAL AMENDMENTS.—Such chapter 

9 is further amended— 

10 (A) by amending the center heading after 

11 the table of sections to read as follows: 

12 ‘‘SUBCHAPTER I—OFFICERS’’; 

13 (B) by amending the center heading after 

14 section 336 to read as follows: 

15 ‘‘SUBCHAPTER II—ENLISTED MEMBERS’’; 

16 (C) by amending the center heading after 

17 section 373 to read as follows: 

18 ‘‘SUBCHAPTER III—GENERAL PROVISIONS’’; 

19 and 

20 (D) by amending the center heading after 

21 section 425 to read as follows: 

22 ‘‘SUBCHAPTER IV—SPECIAL PROVISIONS’’. 

23 (3) CLERICAL AMENDMENTS.—The table of sec24 tions at the beginning of such chapter is amended— 

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1 (A) by striking ‘‘OFFICERS’’ at the be2 ginning of the table and inserting ‘‘SUB3 CHAPTER I—OFFICERS’’; 

4 (B) by striking ‘‘ENLISTED MEM5 BERS’’ after the item relating to section 336 

6 and inserting ‘‘SUBCHAPTER II—EN7 LISTED MEMBERS’’; 

8 (C) by striking ‘‘GENERAL PROVI9 SIONS’’ after the item relating to section 373 

10 and inserting ‘‘SUBCHAPTER III—GEN11 ERAL PROVISIONS’’; 

12 (D) by striking ‘‘SPECIAL PROVI13 SIONS’’ after the item relating to section 425 

14 and inserting ‘‘SUBCHAPTER IV—SPECIAL 

15 PROVISIONS’’; and 

16 (E) by adding at the end the following: 

‘‘SUBCHAPTER V—COAST GUARD MILITARY RETIREMENT FUND

‘‘441. Establishment and purpose of Fund; definitions. 

‘‘442. Assets of the Fund. 

‘‘443. Payments from the Fund. 

‘‘444. Determination of contributions to the Fund. 

‘‘445. Payments into the Fund. 

‘‘446. Investment of assets of the Fund.’’. 

17 (b) IMPLEMENTATION YEAR EXCEPTIONS.—To avoid 

18 funding shortfalls in the first year of implementation of 

19 subchapter V of chapter 11 of title 14, United States 

20 Code, as added by subsection (a), if formal actuarial deter21 minations are not available in time for budget preparation, 

22 the amounts used in the first year under sections 

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1 445(a)(1)(A) and 445(a)(2)(A) of such title shall be set 

2 equal to those estimates in sections 444(b)(1)(A)(i) and 

3 444(b)(1)(B)(i), respectively, of such title if final deter4 minations are not available. The original unfunded liabil5 ity, as defined in section 444(a) of such title, shall include 

6 an adjustment to correct for this difference between the 

7 formal actuarial determinations and the estimates in sec8 tions 444(b)(1)(A)(i) and 444(b)(1)(B)(i) of such title. 

9 (c) TRANSFER OF EXISTING BALANCES.— 

10 (1) TRANSFER.—There shall be transferred into 

11 the Fund on October 1, 2011, any obligated and un12 obligated balances of appropriations made to the De13 partment of Homeland Security that are currently 

14 available for retired pay, and amounts so transferred 

15 shall be part of the assets of the Fund. 

16 (2) FUND DEFINED.—For purposes of para17 graph (1), the term ‘‘Fund’’ means the Coast Guard 

18 Military Retirement Fund established under section 

19 441 of title 14, United States Code, as added by 

20 subsection (a). 

21 (d) EFFECTIVE DATE.—Sections 443 (relating to 

22 payments from the Fund) and 445 (relating to payments 

23 into the Fund) of title 14, United States Code, as added 

24 by subsection (a), shall take effect on October 1, 2011. 

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1 Subtitle B—Accrual Funding of 

2 Post-Retirement Health Benefits 

3 Costs for Federal Employees 

4 SEC. 511. FEDERAL EMPLOYEES HEALTH BENEFITS FUND. 

5 (a) Section 8906 of title 5, United States Code, is 

6 amended— 

7 (1) by redesignating subsection (c) as sub8 section (c)(1) and by adding at the end the following 

9 new paragraphs: 

10 ‘‘(2) In addition to Government contributions re11 quired by subsection (b) and paragraph (1), each employ12 ing agency shall contribute amounts as determined by the 

13 Office to be necessary to prefund the accruing actuarial 

14 cost of post-retirement health benefits for each of the 

15 agency’s current employees who are eligible for Govern16 ment contributions under this section. Amounts under this 

17 paragraph shall be paid by the employing agency separate 

18 from other contributions under this section, from the ap19 propriations or fund used for payment of the salary of the 

20 employee, on a schedule to be determined by the Office. 

21 ‘‘(3) Paragraph (2) shall not apply to the United 

22 States Postal Service or the Government of the District 

23 of Columbia.’’ 

24 (2) by amending subsection (g)(1) to read as 

25 follows: 

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1 ‘‘(g)(1) Except as provided in paragraphs (2) and 

2 (3), all Government contributions authorized by this sec3 tion for health benefits for an annuitant shall be paid from 

4 the Employees Health Benefits Fund to the extent that 

5 funds are available in accordance with section 8909(h)(6) 

6 and, if necessary, from annual appropriations which are 

7 authorized to be made for that purpose and which may 

8 be made available until expended.’’. 

9 (b) Section 8909 of title 5, United States Code, is 

10 amended by adding at the end the following new sub11 section: 

12 ‘‘(h)(1) Not later than June 30, 2012, the Office 

13 shall determine the existing liability of the Fund for post14 retirement health benefits, excluding the liability of the 

15 United States Postal Service for service under section 

16 8906(g)(2), under this chapter as of September 30, 2012. 

17 The Office shall establish an amortization schedule, in18 cluding a series of annual installments commencing Sep19 tember 30, 2012, which provides for the liquidation of 

20 such liability by September 30, 2048. 

21 ‘‘(2) At the close of each fiscal year, for fiscal years 

22 beginning after September 30, 2011, the Office shall de23 termine the supplemental liability of the Fund for post24 retirement health benefits, excluding the liability attrib25 utable to the United States Postal Service for service submstockstill on DSKH9S0YB1PROD with BILLS

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1 ject to section 8906(g)(2), and shall establish an amortiza2 tion schedule, including a series of annual installments 

3 commencing on September 30 of the subsequent fiscal 

4 year, which provides for liquidation of such supplemental 

5 liability over 30 years. 

6 ‘‘(3) Amortization schedules established under this 

7 paragraph shall be set in accordance with generally accept8 ed actuarial practices and principles. 

9 ‘‘(4) At the end of each fiscal year on and after Sep10 tember 30, 2012, the Office shall notify the Secretary of 

11 the Treasury of the amounts of the next installments 

12 under the most recent amortization schedules established 

13 under paragraphs (1) and (2). Before closing the accounts 

14 for the fiscal year, the Secretary shall credit the sum of 

15 these amounts (including in that sum any negative 

16 amount for the amortization of the supplemental liability) 

17 to the Fund, as a Government contribution, out of any 

18 money in the Treasury of the United States not otherwise 

19 appropriated. 

20 ‘‘(5) For the purpose of carrying out paragraphs (1) 

21 and (2), the Office shall perform or arrange for actuarial 

22 determinations and valuations and shall prescribe reten23 tion of such records as it considers necessary for making 

24 periodic actuarial valuations of the Fund. 

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1 ‘‘(6) Notwithstanding subsection (b), the amounts de2 posited into the Fund pursuant to this subsection and sec3 tion 8906(C)(2) to prefund post-retirement health benefits 

4 costs shall be segregated within the Fund so that such 

5 amounts, as well as earnings and proceeds under sub6 section (c) attributable to them, may be used exclusively 

7 for the purpose of paying Government contributions for 

8 post-retirement health benefits costs. When such amounts 

9 are used in combination with amounts withheld from an10 nuitants to pay for health benefits, a portion of the con11 tributions shall then be set aside in the Fund as described 

12 in subsection (b). 

13 ‘‘(7) Under this subsection, ‘supplemental liability’ 

14 means— 

15 ‘‘(A) the actuarial present value for future post16 retirement health benefits that are the liability of 

17 the Fund, less 

18 ‘‘(B) the sum of— 

19 ‘‘(i) the actuarial present value of all fu20 ture contributions by agencies and annuitants 

21 to the Fund toward those benefits pursuant to 

22 section 8906; 

23 ‘‘(ii) the present value of all scheduled am24 ortization payments to the Fund pursuant to 

25 paragraphs (1) and (2); 

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1 ‘‘(iii) the Fund balance as of the date the 

2 supplemental liability is determined, to the ex3 tent that such balance is attributable to post-re4 tirement benefits; and 

5 ‘‘(iv) any other appropriate amount, as de6 termined by the Office in accordance with gen7 erally accepted actuarial practices and prin8 ciples.’’. 

9 SEC. 512. FUNDING UNIFORMED SERVICES HEALTH BENE10 FITS FOR ALL RETIREES. 

11 Title 10, United States Code, is amended— 

12 (1) in the title of chapter 56, by striking ‘‘DE13 PARTMENT OF DEFENSE MEDICARE14 ELIGIBLE’’ and inserting ‘‘UNIFORMED 

15 SERVICES’’; 

16 (2) in section 1111— 

17 (A) in subsection (a)— 

18 (i) by striking ‘‘Department of De19 fense Medicare-Eligible’’ and inserting 

20 ‘‘Uniformed Services’’; 

21 (ii) by striking ‘‘Department of De22 fense under’’; and 

23 (iii) by striking ‘‘for Medicare-eligible 

24 beneficiaries’’; 

25 (B) in subsection (c)— 

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1 (i) by striking ‘‘The Secretary of De2 fense may’’ and inserting ‘‘The Secretary 

3 of Defense shall’’; 

4 (ii) by striking ‘‘with any other’’ and 

5 inserting ‘‘with each’’; 

6 (iii) by striking ‘‘Any such agree7 ment’’ and inserting ‘‘Such agreements’’; 

8 and 

9 (iv) by striking ‘‘administering Sec10 retary may’’ and inserting ‘‘administrative 

11 Secretary shall’’; 

12 (3) in section 1113— 

13 (A) in subsection (a)— 

14 (i) by striking ‘‘and are Medicare eli15 gible’’; 

16 (ii) by striking ‘‘who are Medicare eli17 gible’’; and 

18 (iii) by adding at the end the fol19 lowing new sentence: ‘‘For the fiscal year 

20 starting October 1, 2010, only, the pay21 ments will be solely for the costs of mem22 bers or former members of a uniformed 

23 service who are entitled to retired or re24 tainer pay and are Medicare-eligible, and 

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1 eligible dependents or survivors who are 

2 Medicare-eligible.’’; 

3 (B) in subsection (c)(1), by striking ‘‘who 

4 are Medicare-eligible’’; 

5 (C) in subsection (d), by striking ‘‘who are 

6 Medicare-eligible’’; and 

7 (D) in subsection (f), by striking ‘‘If’’ and 

8 inserting ‘‘When’’; 

9 (4) in section 1114, in subsection (a)(1), by 

10 striking ‘‘Department of Defense Medicare-Eligible’’ 

11 and inserting ‘‘Uniformed Services’’; 

12 (5) in section 1115— 

13 (A) in subsection (b)(2), by striking ‘‘The 

14 amount determined under paragraph (1) for 

15 any fiscal year is the amount needed to be ap16 propriated to the Department of Defense (or to 

17 the other executive department having jurisdic18 tion over the participating uniformed service)’’ 

19 and inserting ‘‘The amount determined under 

20 paragraph (1), or the amount determined under 

21 section 1111(c) for a participating uniformed 

22 service, for any fiscal year, is the amount need23 ed to be appropriated to the Department of De24 fense (or to any other executive department 

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1 having jurisdiction over a participating uni2 formed service)’’; 

3 (B) in subsection (c)(2), by striking ‘‘for 

4 Medicare eligible beneficiaries’’; and 

5 (C) by adding at the end the following new 

6 subsection: 

7 ‘‘(f) For the fiscal year starting October 1, 2010, 

8 only, the amounts in this section shall be based solely on 

9 the costs of Medicare-eligible benefits of beneficiaries and 

10 the costs for their eligible dependents or survivors who are 

11 Medicare-eligible, and shall be recalculated thereafter to 

12 reflect the cost of beneficiaries defined in section 1111.’’. 

13 (6) in section 1116— 

14 (A) in subsection (a)(1)(A), by striking 

15 ‘‘for Medicare-eligible beneficiaries’’; 

16 (B) in subsection (a)(2)(A), by striking 

17 ‘‘for Medicare-eligible beneficiaries’’; and 

18 (C) in subsection (c), by striking ‘‘sub19 section (a) shall be paid from funds available 

20 for the health care programs’’ and inserting 

21 ‘‘subsection (a) and section 1111(c) shall be 

22 paid from funds available for the pay of mem23 bers of the participating uniformed services 

24 under the jurisdiction of the respective admin25 istering secretaries’’. 

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1 SEC. 513. EFFECTIVE DATE. 

2 Except as otherwise provided, this title shall take ef3 fect upon enactment with respect to fiscal years beginning 

4 after 2014. 

5 Subtitle C—Earmark Reform 

6 SEC. 521. JOINT SELECT COMMITTEE ON EARMARK RE7 FORM. 

8 (a) ESTABLISHMENT AND COMPOSITION.—There is 

9 hereby established a Joint Select Committee on Earmark 

10 Reform (hereinafter referred to as the ‘‘joint select com11 mittee’’). The joint select committee shall be composed of 

12 16 members as follows: 

13 (1) Eight Members of the House of Representatives, 

14 4 appointed from the majority party by the Speaker of 

15 the House, and 4 from the minority party by the Speaker 

16 upon the recommendation of the minority leader. 

17 (2) Eight Members of the Senate, 4 appointed from 

18 the majority party by the majority leader of the Senate, 

19 and 4 from the minority party to be appointed by the mi20 nority leader. 

21 A vacancy in the joint select committee shall not affect 

22 the power of the remaining members to execute the func23 tions of the joint select committee, and shall be filled in 

24 the same manner as the original selection. 

25 (b) STUDY AND REPORT.— 

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1 (1) STUDY.—The joint select committee shall make 

2 a full study of the practices of the House, Senate, and 

3 Executive Branch regarding earmarks in authorizing, ap4 propriation, tax, and tariff measures. As part of the study, 

5 the joint select committee shall consider the efficacy of— 

6 (A) the disclosure requirements of clause 9 of rule 

7 XXI and clause 17 of rule XXIII of the Rules of the 

8 House of Representatives and rule XLIV of the Standing 

9 Rules of the Senate, and the definitions contained therein; 

10 (B) requiring full transparency in the process, with 

11 earmarks listed in bills at the outset of the legislative proc12 ess and continuing throughout consideration; 

13 (C) requiring that earmarks not be placed in any bill 

14 after initial committee consideration; 

15 (D) requiring that Members be permitted to offer 

16 amendments to remove earmarks at subcommittee, full 

17 committee, floor consideration, and during conference 

18 committee meetings; 

19 (E) requiring that bill sponsors and majority and mi20 nority managers certify the validity of earmarks contained 

21 in their bills; 

22 (F) recommending changes to earmark requests 

23 made by the Executive Branch through the annual budget 

24 submitted to Congress pursuant to section 1105 of title 

25 31, United States Code; 

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1 (G) requiring that House and Senate amendments 

2 meet earmark disclosure requirements, including amend3 ments adopted pursuant to a special order of business; 

4 (H) establishing new categories for earmarks, includ5 ing— 

6 (i) projects with National scope; 

7 (ii) military projects; and 

8 (iii) local or provincial projects, including the 

9 level of matching funds required for such project. 

10 (2) REPORT.— 

11 (A) The joint select committee shall submit to the 

12 House and the Senate a report of its findings and rec13 ommendations not later than 6 months after adoption of 

14 this joint resolution. 

15 (B) No recommendation shall be made by the joint 

16 select committee except upon the majority vote of the 

17 members from each House, respectively. 

18 (C) Notwithstanding any other provision of this reso19 lution, any recommendation with respect to the rules and 

20 procedures of one House that only affects matters related 

21 solely to that House may only be made and voted on by 

22 members of the joint select committee from that House 

23 and, upon its adoption by a majority of such members, 

24 shall be considered to have been adopted by the full com25 mittee as a recommendation of the joint select committee. 

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1 In conducting the study under paragraph (1), the joint 

2 select committee shall hold not fewer than 5 public hear3 ings. 

4 (c) RESOURCES AND DISSOLUTION.— 

5 (1) The joint select committee may utilize the re6 sources of the House and Senate. 

7 (2) The joint select committee shall cease to exist 30 

8 days after the submission of the report described in sub9 section (a)(2). 

10 (d) DEFINITION.—For purposes of this section, the 

11 term ‘‘earmark’’ shall include congressional earmarks, 

12 congressionally directed spending items, limited tax bene13 fits, or limited tariff benefits as those terms are used in 

14 clause 9 of rule XXI of the Rules of the House of Rep15 resentatives and rule XLIV of the Standing Rules of the 

16 Senate. Nothing in this subsection shall confine the study 

17 of the joint select committee or otherwise limit its rec18 ommendations. 

19 SEC. 522. MORATORIUM ON CONSIDERATION OF EAR20 MARKS. 

21 (a) IN THE HOUSE.—It shall not be in order to con22 sider a bill, joint resolution, or conference report con23 taining a congressional earmark, limited tax benefit, or 

24 limited tariff benefit (as such terms are used in clause 

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1 tives) or an earmark attributable to the President until 

2 the filing of the report required under section 1. 

3 (b) IN THE SENATE.—øTo be supplied.¿ 

4 Subtitle D—Public Debt Limit 

5 SEC. 531. LIMIT ON PUBLIC DEBT. 

6 Upon the enactment of a joint resolution setting forth 

7 the debt limit consistent with this section, section 3101 

8 of title 31, United States Code, is amended to read as 

9 follows, with the blank to be set at the level provided for 

10 in such joint resolution: 

11 ‘‘§ 3101. Public debt limit 

12 ‘‘(a) In this section, the current redemption value of 

13 an obligation issued on a discount basis and redeemable 

14 before maturity at the option of its holder is deemed to 

15 be the face amount of the obligation. 

16 ‘‘(b) The face amount of obligations issued under this 

17 chapter and the face amount of obligations whose prin18 cipal and interest are guaranteed by the United States 

19 Government (except guaranteed obligations held by the 

20 Secretary of the Treasury and intragovernmental hold21 ings) may not be more than $llllllll out22 standing at one time, subject to changes periodically made 

23 in that amount as provided by law. 

24 ‘‘(c) For purposes of this section, the face amount, 

25 for any month, of any obligation issued on a discount basis 

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1 that is not redeemable before maturity at the option of 

2 the holder of the obligation is an amount equal to the sum 

3 of— 

4 ‘‘(1) the original issue price of the obligation, 

5 plus 

6 ‘‘(2) the portion of the discount on the obliga7 tion attributable to periods before the beginning of 

8 such month (as determined under the principles of 

9 section 1272(a) of the Internal Revenue Code of 

10 1986 without regard to any exceptions contained in 

11 paragraph (2) of such section). 

12 ‘‘(d) For purposes of this section, the term 

13 ‘intragovernment holding’ is any obligation issued by the 

14 Secretary of the Treasury to any Federal trust fund or 

15 Government account, whether in respect of public money, 

16 money otherwise required to be deposited in the Treasury, 

17 or amounts appropriated.’’. 

18 SEC. 532. REPEAL OF THE GEPHARDT RULE. 

19 The Rules of the House of Representatives are 

20 amended by repealing rule XXVIII (relating to the statu21 tory limit on public debt). 

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1 Subtitle E—Risk-Assumed 

2 Budgeting 

3 SEC. 541. MARKET ADJUSTED RATE FOR FEDERAL CREDIT 

4 REFORM ACT OF 1990. 

5 Amend section 502(5)(E) of the Federal Credit Re6 form Act of 1990 to read as follows: 

7 ‘‘(E) In estimating net present values, the 

8 discount rate shall be the average interest rate 

9 on marketable Treasury securities of similar 

10 maturity to the cash flows of the direct loan or 

11 loan guarantee for which the estimate is being 

12 made, as adjusted for market risks; and’’. 

13 SEC. 542. CBO AND GAO STUDY. 

14 The Congressional Budget Office and the Govern15 ment Accountability Office shall prepare a study and make 

16 recomendations as to the feasibility of applying accrual 

17 concepts to budgeting for the costs of Federal insurance 

18 programs, adapting the budgetary principles now used for 

19 Federal loan and loan guarantee programs to Federal in20 surance programs. 

21 TITLE VI—BUDGET 

22 ENFORCEMENT 

23 SEC. 600. SHORT TITLE. 

24 This title may be cited as the ‘‘Budget Enforcement 

25 and Congressional Control Act of 2009’’. 

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1 Subtitle A—Enforcement 

2 Amendments 

3 SEC. 601. POINTS OF ORDER IN THE HOUSE OF REP4 RESENTATIVES AND THE SENATE. 

5 Section 904 of the Congressional Budget Act of 1974 

6 is amended as follows: 

7 (1) In subsection (c)(1), insert ‘‘312(g), (h), (i), 

8 and (j),’’ before ‘‘313,’’, and insert ‘‘316, 317, 322, 

9 323,’’ before ‘‘904(C),’’; 

10 (2) In subsection (d)(2), insert ‘‘312(g), (h), 

11 (i), and (j),’’ before ‘‘313,’’, and insert ‘‘316, 317, 

12 322, 323,’’ before ‘‘904(C),’’; 

13 (3) In subsections (C)(2) and (d)(3), strike 

14 ‘‘311(a),’’; 

15 (4) ‘‘In subsections (C)(1) and (d)(2) insert 

16 ‘311(a),’ after ‘310(d)(2),’.’’; 

17 (5) In subsections (C)(1), (C)(2), (d)(2), and 

18 (d)(3) by inserting ‘‘or the House of Representa19 tives’’ after ‘‘Senate’’ each place it appears, and 

20 (6) Strike subsection (e). 

21 SEC. 602. POINT OF ORDER WAIVER PROTECTION. 

22 Rule XIII of the Rules of the House of Representa23 tives (as amended by section 313) is further amended by 

24 adding at the end the following new clause: 

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1 ‘‘10. (a) It shall not be in order to consider a rule 

2 or order that waives the provisions of any section of the 

3 Congressional Budget Act of 1974 referred to in section 

4 904(C)(1) of such Act or of section 212 of the Spending, 

5 Deficit, and Debt Control Act of 2009. 

6 ‘‘(b) As disposition of a point of order under para7 graph (a), the Chair shall put the question of consider8 ation with respect to the proposition that is the subject 

9 of the point of order. A question of consideration under 

10 this clause shall be debatable for 10 minutes by the Mem11 ber initiating the point of order and for 10 minutes by 

12 an opponent of the point of order, but shall otherwise be 

13 decided without intervening motion except one that the 

14 House of Representatives adjourn or that the Committee 

15 of the Whole rise, as the case may be. 

16 ‘‘(c) The disposition of the question of consideration 

17 under this clause with respect to a bill or joint resolution 

18 shall be considered also to determine the question of con19 sideration under this clause with respect to an amendment 

20 made in order as original text.’’. 

21 SEC. 603. APPLICATION OF THE LIMITATION ON REC22 ONCILIATION LEGISLATION. 

23 Section 310(g) of the Congressional Budget Act of 

24 1974 is amended by adding ‘‘, but it shall be in order 

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1 ference report if the report issued pursuant to section 

2 308(f)(1) indicates that the solvency referred to in such 

3 paragraph has not been achieved’’ before the period at the 

4 end. 

5 SEC. 604. TWENTY-PERCENT LIMIT ON NEW DIRECT SPEND6 ING IN RECONCILIATION LEGISLATION. 

7 At the end of section 313 of the Congressional Budg8 et Act add the following subsection: 

9 ‘‘(f) DIRECT SPENDING LIMITATION.— 

10 ‘‘(1) POINT OF ORDER.—In the House of Rep11 resentatives and the Senate, it shall not be in order 

12 to consider any reconciliation bill, joint resolution, 

13 motion, amendment, or any conference report on, or 

14 an amendment between the House of Representa15 tives in relation to, a reconciliation bill pursuant to 

16 section 310(a) or (h) of the Congressional Budget 

17 Act of 1974, that produces an increase in outlays, 

18 if— 

19 ‘‘(A) the effect of all the provisions in the 

20 jurisdiction of any committee is to create gross 

21 new direct spending that exceeds 20 percent of 

22 the total savings instruction to the committee; 

23 or 

24 ‘‘(B) the effect of the adoption of an 

25 amendment results in gross new direct spending 

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1 that exceeds 20 percent of the total savings in2 struction to the committee. 

3 ‘‘(2) APPLICATION OF SECTION 313.— 

4 ‘‘(A) A point of order under paragraph (1) 

5 may be raised by a Senator as provided in sec6 tion 313(e) of the Congressional Budget Act of 

7 1974. 

8 ‘‘(B) Paragraph (1) may be waived or sus9 pended only by an affirmative vote of three10 fifths of the Members, duly chosen and sworn. 

11 An affirmative vote of three-fifths of the Mem12 bers of the Senate, duly chosen and sworn, shall 

13 be required to sustain an appeal of the ruling 

14 of the Chair on a point of order raised under 

15 paragraph (1). 

16 ‘‘(C) If a point of order is sustained under 

17 paragraph (1) against a conference report in 

18 the Senate, the report shall be disposed of as 

19 provided in section 313(d) of the Congressional 

20 Budget Act of 1974.’’. 

21 SEC. 605. TREATMENT OF EXTRANEOUS APPROPRIATIONS. 

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

23 Budget Act of 1974 (as amended by section 305) is fur24 ther amended by adding at the end the following new sec25 tion: 

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1 ‘‘TREATMENT OF EXTRANEOUS APPROPRIATIONS IN

2 OMNIBUS APPROPRIATION MEASURES

3 ‘‘SEC. 321. (a) POINT OF ORDER.—It shall not be 

4 in order in the House of Representatives or the Senate 

5 to consider an omnibus appropriation measure, or any 

6 amendment thereto or conference report thereon, that ap7 propriates funds for any program, project, or activity that 

8 is not within the subject-matter jurisdiction of any sub9 committee of the Committee on Appropriations of the 

10 House of Representatives or Senate, as applicable, with 

11 jurisdiction over any regular appropriation bill contained 

12 in such measure.’’. 

13 (b) CONFORMING AMENDMENT.—The table of con14 tents set forth in section 1(b) of the Congressional Budget 

15 and Impoundment Control Act of 1974 is amended by in16 serting after the item relating to section 320 the following 

17 new item: 

‘‘Sec. 321. Treatment of extraneous appropriations in omnibus appropriation 

measures.’’. 

18 (c) ADVANCE APPROPRIATION POINT OF ORDER.— 

19 Section 312 of the Congressional Budget Act of 1974 (as 

20 amended by section 601) is further amended by adding 

21 at the end the following new subsection: 

22 ‘‘(l) ADVANCE APPROPRIATION POINT OF ORDER.— 

23 It shall not be in order in the House of Representatives 

24 or the Senate to consider any appropriation bill or joint 

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1 resolution, or amendment thereto or conference report 

2 thereon, that provides advance discretionary new budget 

3 authority that first becomes available for any fiscal year 

4 after the budget year at an amount for any program, 

5 project, or activity above the amount of appropriations for 

6 fiscal year 2007 for such program, project, or activity.’’. 

7 SEC. 606. ESTABLISHMENT OF DISCRETIONARY DEFICIT 

8 REDUCTION ACCOUNT. 

9 (a) DISCRETIONARY DEFICIT REDUCTION AC10 COUNT.—Title III of the Congressional Budget Act of 

11 1974 (as amended by section 605) is further amended by 

12 adding at the end the following new section: 

13 ‘‘DISCRETIONARY DEFICIT REDUCTION ACCOUNT

14 ‘‘SEC. 322. (a) ESTABLISHMENT OF ACCOUNT.—The 

15 chairman of the Committee on the Budget of the House 

16 of Representatives and of the Senate shall each maintain 

17 an account to be known as the ‘deficit reduction Discre18 tionary Account’. The Account shall be divided into entries 

19 corresponding to the subcommittees of the Committee on 

20 Appropriations of that House and each entry shall consist 

21 of the ‘deficit reduction Balance’. 

22 ‘‘(b) COMPONENTS.—Each entry shall consist only of 

23 amounts credited to it under subsection (c). No entry of 

24 a negative amount shall be made. 

25 ‘‘(c) CREDITING OF AMOUNTS TO ACCOUNT.— 

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1 ‘‘(1) Whenever a Member or Senator, as the 

2 case may be, offers an amendment to an appropria3 tion bill to reduce new budget authority in any ac4 count, that Member or Senator may state the por5 tion of such reduction that shall be credited to— 

6 ‘‘(A) the deficit reduction Balance; 

7 ‘‘(B) used to offset an increase in new 

8 budget authority in any other account; or 

9 ‘‘(C) allowed to remain within the applica10 ble section 302(b) suballocation. 

11 ‘‘(2) If no such statement is made, the amount 

12 of reduction in new budget authority resulting from 

13 the amendment shall be credited to the deficit reduc14 tion Balance, as applicable, if the amendment is 

15 agreed to. 

16 ‘‘(3) Except as provided by paragraph (4), the 

17 chairman of the Committee on the Budget of the 

18 House of Representatives or Senate, as applicable, 

19 shall, upon the engrossment of any appropriation bill 

20 by the House of Representatives or Senate, as appli21 cable, credit to the applicable entry balances 

22 amounts of new budget authority and outlays equal 

23 to the net amounts of reductions in budget authority 

24 and in outlays resulting from amendments agreed to 

25 by that House to that bill. 

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1 ‘‘(4) When computing the net amounts of re2 ductions in new budget authority and in outlays re3 sulting from amendments agreed to by the House of 

4 Representatives or Senate, as applicable, to an ap5 propriation bill, the chairman of the Committee on 

6 the Budget of that House shall only count those por7 tions of such amendments agreed to that were so 

8 designated by the Members offering such amend9 ments as amounts to be credited to the deficit reduc10 tion Balance, or that fall within the last sentence of 

11 paragraph (1). 

12 ‘‘(5) The chairman of the Committee on the 

13 Budget of the House of Representatives and of the 

14 Senate shall each maintain a running tally of the 

15 amendments adopted reflecting increases and de16 creases of budget authority in the bill as reported to 

17 its House. This tally shall be available to Members 

18 or Senators during consideration of any bill by that 

19 House. 

20 ‘‘(d) CALCULATION OF SAVINGS IN DEFICIT REDUC21 TION ACCOUNTS IN THE HOUSE OF REPRESENTATIVES

22 AND SENATE.— 

23 ‘‘(1) For the purposes of enforcing section 302(a), 

24 upon the engrossment of any appropriation bill by the 

25 House of Representatives or Senate, as applicable, the 

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1 amount of budget authority and outlays calculated pursu2 ant to subsection (c)(3) shall be counted against the 

3 302(a) allocation provided to the Committee on Appro4 priations as if the amount calculated pursuant to sub5 section (c)(3) was included in the bill just engrossed. 

6 ‘‘(2) For purposes of enforcing section 302(b), upon 

7 the engrossment of any appropriation bill by the House 

8 of Representatives or Senate, as applicable, the 302(b) al9 location provided to the subcommittee for the bill just en10 grossed shall be deemed to have been reduced by the 

11 amount of budget authority and outlays calculated, pursu12 ant to subsection (c)(3). 

13 ‘‘(e) DEFINITION.—As used in this section, the term 

14 ‘appropriation bill’ means any general or special appro15 priation bill, and any bill or joint resolution making sup16 plemental, deficiency, or continuing appropriations 

17 through the end of fiscal year 2010 or any subsequent fis18 cal year, as the case may be.’’. 

19 SEC. 607. ESTABLISHMENT OF MANDATORY DEFICIT RE20 DUCTION ACCOUNT. 

21 Title III of the Congressional Budget Act of 1974 

22 (as amended by section 606) is further amended by adding 

23 at the end the following new section: 

24 ‘‘MANDATORY DEFICIT REDUCTION ACCOUNT

25 ‘‘SEC. 323. (a) ESTABLISHMENT OF ACCOUNT.—The 

26 chairman of the Committee on the Budget of the House 

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1 of Representatives and of the Senate shall each maintain 

2 an account to be known as the ‘deficit reduction Manda3 tory Account’. The Account shall be divided into entries 

4 corresponding to the House of Representatives or Senate 

5 committees, as applicable, that received allocations under 

6 section 302(a) in the most recently adopted joint resolu7 tion on the budget, except that it shall not include the 

8 Committee on Appropriations of that House and each 

9 entry shall consist of the ‘First Year deficit reduction Ac10 count’ and the ‘Five Year deficit reduction Account’ or 

11 the period covered by the resolution on the budget for that 

12 fiscal year, as applicable. 

13 ‘‘(b) COMPONENTS.—Each entry shall consist only of 

14 amounts credited to it under subsection (c). No entry of 

15 a negative amount shall be made. 

16 ‘‘(c) CALCULATION OF ACCOUNT SAVINGS IN HOUSE

17 AND SENATE.—For the purposes of enforcing section 

18 302(a), upon the engrossment of any bill, other than an 

19 appropriation bill, by the House of Representatives or 

20 Senate, as applicable, the amount of budget authority and 

21 outlays calculated pursuant to subsection (c)(3) shall be 

22 counted against the 302(a) allocation provided to the ap23 plicable committee or committees of that House which re24 ported the bill as if the amount calculated pursuant to 

25 subsection (c)(3) was included in the bill just engrossed. 

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1 ‘‘(d) CREDITING OF AMOUNTS TO ACCOUNT.— 

2 ‘‘(1) Whenever a Member or Senator, as the 

3 case may be, offers an amendment to a bill that re4 duces the amount of mandatory budget authority 

5 provided either under current law or proposed to be 

6 provided by the bill under consideration, that Mem7 ber or Senator may state the portion of such reduc8 tion achieved in the first year covered by the most 

9 recently adopted joint resolution on the budget and 

10 in addition the portion of such reduction achieved in 

11 the first five years covered by the most recently 

12 adopted joint resolution on the budget that shall be 

13 credited to the First Year deficit reduction Balance 

14 and the Five Year deficit reduction Balance, as ap15 plicable, if the amendment is agreed to. 

16 ‘‘(2) Except as provided by paragraph (3), the 

17 chairman of the Committee on the Budget of the 

18 House of Representatives or Senate, as applicable, 

19 shall, upon the engrossment of any bill, other than 

20 an appropriation bill, by the House of Representa21 tives or Senate, as applicable, credit to the applica22 ble entry balances amounts of new budget authority 

23 and outlays equal to the net amounts of reductions 

24 in budget authority and in outlays resulting from 

25 amendments agreed to by that House to that bill. 

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1 ‘‘(3) When computing the net amounts of re2 ductions in budget authority and in outlays resulting 

3 from amendments agreed to by the House of Rep4 resentatives or Senate, as applicable, to a bill, the 

5 chairman of the Committee on the Budget of that 

6 House shall only count those portions of such 

7 amendments agreed to that were so designated by 

8 the Members or Senators offering such amendments 

9 as amounts to be credited to the First Year deficit 

10 reduction Balance and the Five-Year deficit reduc11 tion Balance, or that fall within the last sentence of 

12 paragraph (1). 

13 ‘‘(4) The chairman of the Committee on the 

14 Budget of the House of Representatives and of the 

15 Senate shall each maintain a running tally of the 

16 amendments adopted reflecting increases and de17 creases of budget authority in the bill as reported to 

18 its House. This tally shall be available to Members 

19 or Senators during consideration of any bill by that 

20 House. 

21 ‘‘(e) DEFINITION.—As used in this section, the term 

22 ‘appropriation bill’ means any general or special appro23 priation bill, and any bill or joint resolution making sup24 plemental, deficiency, or continuing appropriations 

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1 through the end of fiscal year 2009 or any subsequent fis2 cal year, as the case may be.’’. 

3 SEC. 608. CONFORMING AMENDMENT. 

4 The table of contents set forth in section 1(b) of the 

5 Congressional Budget and Impoundment Control Act of 

6 1974 is amended by inserting after the item relating to 

7 section 321 the following new items: 

‘‘Sec. 322. Discretionary deficit reduction account. 

‘‘Sec. 323. Mandatory deficit reduction account.’’. 

8 Subtitle B—Committee Term Lim9 its Study in the House of Rep10 resentatives 

11 SEC. 611. SUSPENSION OF CERTAIN REQUIREMENTS RE12 GARDING THE HOUSE OF REPRESENTATIVES 

13 COMMITTEE TERM LIMITS COMMITTEE. 

14 Clause 5(a)(2)(B) of rule X of the Rules of the House 

15 of Representatives is suspended. 

16 SEC. 612. ESTABLISHMENT OF THE SELECT COMMITTEE ON 

17 REQUIREMENTS REGARDING THE HOUSE OF 

18 REPRESENTATIVES BUDGET COMMITTEE. 

19 There is established a select committee to review the 

20 rules regarding the membership on the Committee on the 

21 Budget of the House of Representatives. 

22 SEC. 613. PROCEDURE. 

23 (a) LEGISLATIVE JURISDICTION.—The select com24 mittee shall not have legislative jurisdiction and shall have 

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1 no authority to take legislative action on any bill or resolu2 tion. 

3 (b) STUDY.—The select committee shall study and 

4 make recommendations about the effectiveness of limiting 

5 the membership on the House of Representatives Budget 

6 Committee to four Congresses within a period of six suc7 cessive Congresses. 

8 SEC. 614. COMPOSITION. 

9 The select committee shall be composed of 8 members 

10 appointed by the Speaker, of whom 4 shall be appointed 

11 upon the recommendation of the minority leader. The 

12 Speaker shall designate one member of the select com13 mittee as chairman. 

14 SEC. 615. REPORTING. 

15 The select committee shall issue at least one public 

16 report to be filed with the House of Representatives not 

17 later than December 31, 2010, and shall include rec18 ommendations based on its findings. 

19 SEC. 616. ADMINISTRATIVE PROVISIONS. 

20 There shall be paid out of the applicable accounts of 

21 the House of Representatives such sums as may be nec22 essary for the expenses of the select committee. Such pay23 ments shall be made on vouchers signed by the chairman 

24 of the select committee and approved in the manner di25 rected by the Committee on House Administration. 

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1 SEC. 617. DISSOLUTION. 

2 The select committee shall cease to exist on December 

3 31, 2010. 

4 Subtitle C—Judicial Consideration 

5 SEC. 621. JUDICIAL REVIEW. 

6 (a) EXPEDITED REVIEW.— 

7 (1) any Member of Congress or any individual 

8 adversely affected by this Act may bring an action, 

9 in the United States District Court for the District 

10 of Columbia, for declaratory judgment and injunc11 tive relief on the ground that any provision of this 

12 part violates the Constitution. 

13 (2) a copy of any complaint in an action 

14 brought under paragraph (1) shall be promptly de15 livered to the Secretary of the Senate and the Clerk 

16 of the House of Representatives, and each House of 

17 Congress shall have the right to intervene in such 

18 action. 

19 (3) nothing in this section or in any other law 

20 shall infringe upon the right of the House of Rep21 resentatives to intervene in an action brought under 

22 paragraph (1) without the necessity of adopting a 

23 resolution to authorize such intervention. 

24 (b) APPEAL TO SUPREME COURT.—Notwithstanding 

25 any other provision of law, any order of the United States 

26 District Court for the District of Columbia which is issued 

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1 pursuant to an action brought under paragraph (1) of sub2 section (a) shall be reviewable by appeal directly to the 

3 Supreme Court of the United States. Any such appeal 

4 shall be taken by a notice of appeal filed within 10 cal5 endar days after such order is entered; and the jurisdic6 tional statement shall be filed within 30 calendar days 

7 after such order is entered. No stay of an order issued 

8 pursuant to an action brought under paragraph (1) of sub9 section (a) shall be issued by a single Justice of the Su10 preme Court. 

11 (c) EXPEDITED CONSIDERATION.—It shall be the 

12 duty of the District Court for the District of Columbia 

13 and the Supreme Court of the United States to advance 

14 on the docket and to expedite to the greatest possible ex15 tent the disposition of any matter brought under sub16 section (a). 

17 SEC. 622. SEVERABILITY. 

18 If any provision of this subtitle, or the application 

19 of any provision of this subtitle to any person or cir20 cumstance is held invalid, the application of such provision 

21 or circumstance and the remainder of this subtitle shall 

22 not be affected thereby. 

Æ 

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