I 

110TH CONGRESS 

1ST SESSION H. R. 489 

To establish a commission to develop legislation designed to reform entitlement benefit programs and ensure a sound fiscal future for the United 

States, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 16, 2007 

Mr. MCHENRY introduced the following bill; which was referred to the Committee on the Budget, and in addition to the Committee on Rules, 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 establish a commission to develop legislation designed 

to reform entitlement benefit programs and ensure a 

sound fiscal future for the United States, 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. 

4 This Act may be cited as the ‘‘Commission On Re5 forming Entitlement Spending Act’’ or the ‘‘CORE Spend6 ing Act’’. 


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1 SEC. 2. ESTABLISHMENT. 

2 There is established a commission to be known as the 

3 ‘‘Commission On Reforming Entitlement Spending’’ 

4 (hereinafter in this Act referred to as the ‘‘Commission’’). 

5 SEC. 3. DUTIES OF COMMISSION. 

6 (a) MANDATORY LEGISLATION DEVELOPMENT.— 

7 (1) ISSUES TO ADDRESS.—The Commission 

8 shall examine the long-term fiscal challenges facing 

9 the United States and develop legislation designed to 

10 address the following issues: 

11 (A) The unsustainable imbalance between 

12 long-term Federal spending commitments and 

13 projected revenues. 

14 (B) Increasing net national savings to pro15 vide for domestic investment and economic 

16 growth. 

17 (C) The implications of foreign ownership 

18 of debt instruments issued by the United States 

19 Government. 

20 (D) Improving the budget process to place 

21 greater emphasis on long-term fiscal issues. 

22 (2) POLICY SOLUTIONS.—Legislation developed 

23 to address the issues described in paragraph (1) may 

24 include the following: 


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1 (A) Reforms that limit the growth of enti2 tlement spending to ensure that the programs 

3 are fiscally sustainable. 

4 (B) Reforms that strengthen the safety net 

5 functions of entitlement programs to provide 

6 assistance to the neediest people. 

7 (C) Incentives to increase private savings. 

8 (D) Automatic stabilizers or triggers to en9 force spending and revenue targets. 

10 (E) Any other reforms designed to address 

11 the issues described in paragraph (1). 

12 (3) LIMITATION.—The legislation developed 

13 under this subsection may not include any new, or 

14 any increase in an existing, Federal tax. 

15 (b) OPTIONAL DEVELOPMENT OF COST ESTIMATE

16 ALTERNATIVES.—The Commission shall by an affirmative 

17 vote of 5 members develop not more than 2 methods for 

18 estimating the cost of legislation as an alternative to the 

19 method currently used by the Congressional Budget Of20 fice. Any such alternative method must be designed to ad21 dress any flaws in the method currently used with regard 

22 to estimating the positive economic effects of legislation. 

23 SEC. 4. INITIAL TOWN HALL STYLE PUBLIC HEARINGS. 

24 (a) IN GENERAL.—The Commission shall hold at 

25 least 1 town hall style public hearing within each Federal 


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1 reserve district, and shall, to the extent feasible, ensure 

2 that there is broad public participation in the hearings. 

3 (b) HEARING FORMAT.—During each hearing, the 

4 Commission shall present to the public, and generate com5 ments and suggestions regarding, the issues described in 

6 section 3, policies designed to address the issues, and 

7 tradeoffs between the policies. 

8 SEC. 5. REPORT. 

9 The Commission shall, not later than 180 days after 

10 the date of enactment of this Act, submit a report to Con11 gress and the President containing the following: 

12 (1) A detailed description of the activities of the 

13 Commission. 

14 (2) A summary of comments and suggestions 

15 generated from the town hall style public hearings. 

16 (3) A detailed statement of any findings of the 

17 Commission as to public preferences regarding the 

18 issues, policies, and tradeoffs presented in the town 

19 hall style public hearings. 

20 (4) A detailed description of the long-term fis21 cal problems faced by the United States. 

22 (5) A list of policy options for addressing those 

23 problems. 

24 (6) Criteria for the legislative proposal to be de25 veloped by the Commission. 


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1 SEC. 6. LEGISLATIVE PROPOSAL. 

2 (a) IN GENERAL.—Not later than 60 days after the 

3 date the report is submitted under section 5 and by a vote 

4 of two-thirds of the members, the Commission shall sub5 mit a legislative proposal to Congress and the President 

6 designed to address the issues described section 3. 

7 (b) PROPOSAL REQUIREMENTS.—The proposal must, 

8 to the extent feasible, be designed— 

9 (1) to achieve generational equity and long-term 

10 economic stability; 

11 (2) to address the comments and suggestions of 

12 the public; and 

13 (3) to meet the criteria set forth in the Com14 mission report. 

15 (c) INCLUSION OF COST ESTIMATE.—The Commis16 sion shall submit with the proposal— 

17 (1) a long-term CBO cost estimate prepared 

18 under section 14 for the proposal; and 

19 (2) if an alternative cost estimate method is de20 veloped by the Commission, a 50-year cost estimate 

21 using such method. 

22 SEC. 7. MEMBERSHIP AND MEETINGS. 

23 (a) IN GENERAL.—The Commission shall be com24 posed of 15 voting members appointed pursuant to para25 graph (1) and 2 nonvoting members described in para26 graph (2). 


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1 (1) VOTING MEMBERS.—(A) The President 

2 shall appoint 3 members, one of which the President 

3 shall appoint as chairperson of the Commission. 

4 (B) The Speaker of the House of Representa5 tives shall appoint 3 members. 

6 (C) The Minority Leader of the House of Rep7 resentatives shall appoint 3 members. 

8 (D) The Majority Leader of the Senate shall 

9 appoint 3 members. 

10 (E) The Minority Leader of the Senate shall 

11 appoint 3 members. 

12 (2) NONVOTING MEMBERS.—The Comptroller 

13 General of the United States and the Director of the 

14 Congressional Budget Office shall each be nonvoting 

15 members of the Commission and shall advise and as16 sist at the request of the Commission. 

17 (b) LIMITATION AS TO MEMBERS OF CONGRESS.— 

18 Each appointing authority described in subsection (a)(1) 

19 who is a Member of Congress may only appoint 1 Member 

20 of Congress to the Commission. 

21 (c) DATE FOR ORIGINAL APPOINTMENT.—The ap22 pointing authorities described in subsection (a)(1) shall 

23 appoint the initial members of the Commission not later 

24 than 30 days after the date of enactment of this Act. 

25 (d) TERMS.— 


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1 (1) IN GENERAL.—The term of each member is 

2 for the life of the Commission. 

3 (2) VACANCIES.—A vacancy in the Commission 

4 shall be filled not later than 30 days after such va5 cancy occurs and in the manner in which the origi6 nal appointment was made. 

7 (e) PAY AND REIMBURSEMENT.— 

8 (1) NO COMPENSATION FOR MEMBERS OF COM9 MISSION.—Except as provided in paragraph (2), a 

10 member of the Commission may not receive pay, al11 lowances, or benefits by reason of their service on 

12 the Commission. 

13 (2) TRAVEL EXPENSES.—Each member shall 

14 receive travel expenses, including per diem in lieu of 

15 subsistence under subchapter I of chapter 57 of title 

16 5, United States Code. 

17 (f) MEETINGS.—The Commission shall meet upon 

18 the call of the chairperson or a majority of its voting mem19 bers. 

20 (g) QUORUM.—Six voting members of the Commis21 sion shall constitute a quorum, but a lesser number may 

22 hold hearings. 

23 SEC. 8. DIRECTOR AND STAFF OF COMMISSION. 

24 (a) DIRECTOR.— 


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1 (1) IN GENERAL.—Subject to subsection (c) 

2 and to the extent provided in advance in appropria3 tion Acts, the Commission shall appoint and fix the 

4 pay of a director. 

5 (2) DUTIES.—The director of the Commission 

6 shall be responsible for the administration and co7 ordination of the duties of the Commission and shall 

8 perform other such duties as the Commission may 

9 direct. 

10 (b) STAFF.—In accordance with rules agreed upon 

11 by the Commission, subject to subsection (c), and to the 

12 extent provided in advance in appropriation Acts, the di13 rector may appoint and fix the pay of additional personnel. 

14 (c) APPLICABILITY OF CERTAIN CIVIL SERVICE

15 LAWS.—The director and staff of the Commission may be 

16 appointed without regard to the provisions of title 5, 

17 United States Code, governing appointments in the com18 petitive service, and may be paid without regard to the 

19 provisions of chapter 51 and subchapter III of chapter 53 

20 of that title relating to classification and General Schedule 

21 pay rates, except that pay fixed under subsection (a) may 

22 not exceed $150,000 per year and pay fixed under sub23 section (b) may not exceed a rate equal to the daily equiva24 lent of the annual rate of basic pay for level V of the ExecVerDate Aug 31 2005 20:25 Jan 19, 2007 Jkt 059200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H489.IH H489

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1 utive Schedule under section 5316 of title 5, United States 

2 Code. 

3 (d) DETAILEES.—Any Federal Government employee 

4 may be detailed to the Commission without reimbursement 

5 from the Commission, and such detailee shall retain the 

6 rights, status, and privileges of their regular employment 

7 without interruption. 

8 (e) EXPERTS AND CONSULTANTS.—In accordance 

9 with rules agreed upon by the Commission and to the ex10 tent provided in advance in appropriation Acts, the direc11 tor may procure the services of experts and consultants 

12 under section 3109(b) of title 5, United States Code, but 

13 at rates not to exceed the daily equivalent of the annual 

14 rate of basic pay for level V of the Executive Schedule 

15 under section 5316 of title 5, United States Code. 

16 SEC. 9. POWERS OF COMMISSION. 

17 (a) HEARINGS AND EVIDENCE.—The Commission 

18 may, for the purpose of carrying out this Act, hold such 

19 hearings in addition to the town hall style public hearings, 

20 sit and act at such times and places, take such testimony, 

21 and receive such evidence as the Commission considers ap22 propriate. The Commission may administer oaths or affir23 mations to witnesses appearing before it. 

24 (b) POWERS OF MEMBERS AND AGENTS.—Any mem25 ber or agent of the Commission may, if authorized by the 


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1 Commission, take any action which the Commission is au2 thorized to take under this section. 

3 (c) MAILS.—The Commission may use the United 

4 States mails in the same manner and under the same con5 ditions as other departments and agencies of the United 

6 States. 

7 (d) ADMINISTRATIVE SUPPORT SERVICES.—Upon 

8 the request of the Commission, the Administrator of Gen9 eral Services shall provide to the Commission, on a reim10 bursable basis, the administrative support services nec11 essary for the Commission to carry out its responsibilities 

12 under this Act. 

13 (e) CONTRACT AUTHORITY.—To the extent provided 

14 in advance in appropriation Acts, the Commission may 

15 enter into contracts to enable the Commission to discharge 

16 its duties under this Act. 

17 (f) GIFTS.—The Commission may accept, use, and 

18 dispose of gifts or donations of services or property. 

19 SEC. 10. TERMINATION. 

20 The Commission shall terminate 60 days after sub21 mitting its legislative proposal. 

22 SEC. 11. ALTERNATIVE LEGISLATIVE PROPOSAL OF PRESI23 DENT. 

24 The President may, not later than 60 days after the 

25 Commission submits its legislative proposal, submit to 


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1 Congress an alternative to the legislative proposal sub2 mitted by the Commission. 

3 SEC. 12. ALTERNATIVE LEGISLATIVE PROPOSAL OF THE 

4 COMMITTEE ON THE BUDGET. 

5 The Committee on the Budget of either House may, 

6 in consultation with the relevant committees of their re7 spective House and not later than 60 days after the Com8 mission submits its legislative proposal, have published in 

9 the Congressional Record an alternative to the legislative 

10 proposal submitted by the Commission. 

11 SEC. 13. CONSIDERATION OF LEGISLATION. 

12 (a) INTRODUCTION.—On the first legislative day 

13 after the Commission submits its legislative proposal, the 

14 Speaker of the House of Representatives and the Majority 

15 Leader of the Senate shall introduce (by request) the legis16 lation submitted by the Commission. 

17 (b) IN THE HOUSE OF REPRESENTATIVES.— 

18 (1) PRIVILEGED CONSIDERATION.—In the 

19 House of Representatives, if a committee to which 

20 the legislation has been referred has not reported 

21 the legislation before the expiration of the 60-day 

22 period described in section 12, then— 

23 (A) that committee shall be discharged 

24 from consideration of the legislation; 


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1 (B) the legislation shall be placed on the 

2 appropriate calendar; and 

3 (C) a motion to proceed to the consider4 ation of the legislation is highly privileged and 

5 is not debatable. 

6 (2) AMENDMENTS LIMITED.— 

7 (A) IN GENERAL.—Except as provided in 

8 subparagraph (B), an amendment to the legis9 lation may not be offered in the House of Rep10 resentatives. 

11 (B) PERMITTED AMENDMENTS.—(i) Any 

12 Member may offer, as an amendment in the na13 ture of a substitute, the alternative legislative 

14 proposal submitted by the President. 

15 (ii) Any Member may offer, as an amend16 ment in the nature of a substitute, the alter17 native legislative proposal submitted by the 

18 Commission. 

19 (iii) The chairman of the House Com20 mittee on the Budget may offer, as an amend21 ment in the nature of a substitute, the alter22 native legislative proposal published in the Con23 gressional Record by the House Committee on 

24 the Budget. 


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1 (C) POINTS OF ORDER.—An amendment 

2 offered under subparagraph (B) is subject to a 

3 point of order if— 

4 (i) the amendment is not accompanied 

5 by a long-term CBO cost estimate of the 

6 amendment; or 

7 (ii) the long-term CBO cost estimate 

8 of the amendment exceeds the long-term 

9 CBO cost estimate of the legislative pro10 posal submitted by the Commission. 

11 (D) MULTIPLE AMENDMENTS.—If more 

12 than one amendment is offered under this para13 graph, then each amendment shall be consid14 ered separately, and the amendment receiving 

15 both a majority and the highest number of 

16 votes shall be the amendment adopted. 

17 SEC. 14. LONG-TERM CBO COST ESTIMATE. 

18 (a) PREPARATION AND SUBMISSION.—When the 

19 Commission, the President, or the chairman of the Com20 mittee on the Budget of either House submits a written 

21 request to the Director of the Congressional Budget Office 

22 for a long-term CBO cost estimate of legislation proposed 

23 under this Act or an amendment referred to in section 

24 13(b)(2)(B), the Director shall prepare the estimate and 


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1 have it published in the Congressional Record as expedi2 tiously as possible. 

3 (b) CONTENT.—A long-term CBO cost estimate shall 

4 include— 

5 (1) an estimate of the cost of each provision of 

6 the legislation or amendment for first fiscal year it 

7 would take effect and for each of the 50 fiscal years 

8 thereafter; and 

9 (2) a statement of any estimated future costs 

10 not reflected by the estimate described in paragraph 

11 (1). 

Æ 


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