```

[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 1889 Referral Instructions Senate (RIS)]

106th CONGRESS
  1st Session
                                S. 1889

  To amend the Congressional Budget Act of 1974 to provide for joint 
   resolutions on the budget, reserve funds for emergency spending, 
      strengthened enforcement of budgetary decisions, increased 
  accountability for Federal spending, accrual budgeting for Federal 
insurance programs, mitigation of the bias in the budget process toward 
 higher spending, modifications in paygo requirements when there is an 
               on-budget surplus, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                            November 9, 1999

   Mr. Grams introduced the following bill; which was read twice and 
   referred jointly pursuant to the order of August 4, 1977, to the 
 Committees on the Budget and Governmental Affairs, with instructions 
 that if one Committee reports, the other Committee has thirty days to 
                        report or be discharged.

_______________________________________________________________________

                                 A BILL

 
  To amend the Congressional Budget Act of 1974 to provide for joint 
   resolutions on the budget, reserve funds for emergency spending, 
      strengthened enforcement of budgetary decisions, increased 
  accountability for Federal spending, accrual budgeting for Federal 
insurance programs, mitigation of the bias in the budget process toward 
 higher spending, modifications in paygo requirements when there is an 
               on-budget surplus, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Comprehensive 
Budget Process Reform Act of 1999''.
    (b) Table of Contents.--

Sec. 1. Short title; table of contents.
Sec. 2. Purpose.
Sec. 3. Effective date.
Sec. 4. Declaration of purposes for the Budget Act.
                   TITLE I--BUDGET WITH FORCE OF LAW

Sec. 101. Purposes.
Sec. 102. The timetable.
Sec. 103. Annual joint resolutions on the budget.
Sec. 104. Budget required before spending bills may be considered; 
                            fall-back procedures if President vetoes 
                            joint budget resolution.
Sec. 105. Conforming amendments to effectuate joint resolutions on the 
                            budget.
                 TITLE II--RESERVE FUND FOR EMERGENCIES

Sec. 201. Purpose.
Sec. 202. Repeal of adjustments for emergencies.
Sec. 203. OMB emergency criteria.
Sec. 204. Development of guidelines for application of emergency 
                            definition.
Sec. 205. Reserve fund for emergencies in President's budget.
Sec. 206. Adjustments and reserve fund for emergencies in joint budget 
                            resolutions.
Sec. 207. Up-to-date tabulations.
Sec. 208. Prohibition on amendments to emergency reserve fund.
Sec. 209. Effective date.
             TITLE III--ENFORCEMENT OF BUDGETARY DECISIONS

Sec. 301. Purposes.
  Subtitle A--Application of Points of Order to Unreported Legislation

Sec. 311. Application of Budget Act points of order to unreported 
                            legislation.
             Subtitle B--Compliance with Budget Resolution

Sec. 321. Budget compliance statements.
            Subtitle C--Justification for Budget Act Waivers

Sec. 331. Justification for Budget Act waivers in the House of 
                            Representatives.
             Subtitle D--CBO Scoring of Conference Reports

Sec. 341. CBO scoring of conference reports.
             TITLE IV--ACCOUNTABILITY FOR FEDERAL SPENDING

Sec. 401. Purposes.
               Subtitle A--Limitations on Direct Spending

Sec. 411. Fixed-year authorizations required for new programs.
Sec. 412. Amendments to subject new direct spending to annual 
                            appropriations.
     Subtitle B--Enhanced Congressional Oversight Responsibilities

Sec. 421. Ten-year congressional review requirement of permanent budget 
                            authority.
Sec. 422. Justifications of direct spending.
Sec. 423. Survey of activity reports of House committees.
Sec. 424. Continuing study of additional budget process reforms.
Sec. 425. GAO reports.
                Subtitle C--Strengthened Accountability

Sec. 431. Ten-year CBO estimates.
Sec. 432. Repeal of rule XXIII of the Rules of the House of 
                            Representatives.
    TITLE V--BUDGETING FOR UNFUNDED LIABILITIES AND OTHER LONG-TERM 
                              OBLIGATIONS

Sec. 501. Purposes.
     Subtitle A--Budgetary Treatment of Federal Insurance Programs

Sec. 511. Federal insurance programs.
           Subtitle B--Reports on Long-Term Budgetary Trends

Sec. 521. Reports on long-term budgetary trends.
   TITLE VI--BASELINE, BYRD RULE, LOCK-BOX, AND AUTOMATIC CONTINUING 
                               RESOLUTION

Sec. 601. Purpose.
                        Subtitle A--The Baseline

Sec. 611. The President's budget.
Sec. 612. The congressional budget.
Sec. 613. Congressional Budget Office reports to committees.
Sec. 614. Outyear assumptions for discretionary spending.
                       Subtitle B--The Byrd Rule

Sec. 621. Limitation on Byrd rule.
              Subtitle C--Spending Accountability Lock-Box

Sec. 631. Short title.
Sec. 632. Spending accountability lock-box ledger.
Sec. 633. Downward adjustment of section 302(a) allocations and section 
                            302(b) suballocations.
Sec. 634. Periodic reporting of ledger statements.
Sec. 635. Downward adjustment of discretionary spending limits.
              Subtitle D--Automatic Continuing Resolution

Sec. 641. Automatic continuing resolution.
              TITLE VII--BUDGETING IN AN ERA OF SURPLUSES

Sec. 701. Paygo requirements and the on-budget surplus.
       TITLE VIII--SOCIAL SECURITY SURPLUS PROTECTION ACT OF 1999

Sec. 801. Short title.
Sec. 802. Sequester to protect the social security surplus.

SEC. 2. PURPOSE.

    The purposes of this Act are to--
            (1) give the budget the force of law;
            (2) budget for emergencies;
            (3) display the unfunded liabilities of Federal insurance 
        programs;
            (4) strengthen enforcement of budgetary decisions;
            (5) increase accountability for Federal spending;
            (6) mitigate the bias in the budget process toward higher 
        spending; and
            (7) modify paygo requirements when there is an on-budget 
        surplus.

SEC. 3. EFFECTIVE DATE.

    Except as otherwise specifically provided, this Act and the 
amendments made by this Act shall become effective on the date of 
enactment of this Act and shall apply with respect to fiscal years 
beginning after September 30, 2000.

SEC. 4. DECLARATION OF PURPOSES FOR THE BUDGET ACT.

    Paragraphs (1) and (2) of section 2 of the Congressional Budget and 
Impoundment Control Act of 1974 are amended to read as follows:
            ``(1) to assure effective control over the budgetary 
        process;
            ``(2) to facilitate the determination each year of the 
        appropriate level of Federal revenues and expenditures by the 
        Congress and the President;''.

                   TITLE I--BUDGET WITH FORCE OF LAW

SEC. 101. PURPOSES.

    The purposes of this title are to--
            (1) focus initial budgetary deliberations on aggregate 
        levels of Federal spending and taxation;
            (2) encourage cooperation between Congress and the 
        President in developing overall budgetary priorities; and
            (3) reach budgetary decisions early in the legislative 
        cycle.

SEC. 102. THE TIMETABLE.

    Section 300 of the Congressional Budget Act of 1974 is amended to 
read as follows:

                              ``timetable

    ``Sec. 300. The timetable with respect to the congressional budget 
process for any fiscal year is as follows:

``On or before:                     Action to be completed:
    First Monday in February.......
                                        President submits his budget.
    February 15....................
                                        Congressional Budget Office 
                                                submits report to 
                                                Budget Committees.
    Not later than 6 weeks after 
        President submits budget.
                                        Committees submit views and 
                                                estimates to Budget 
                                                Committees.
    April 1........................
                                        Senate Budget Committee reports 
                                                joint resolution on the 
                                                budget.
    April 15.......................
                                        Congress completes action on 
                                                joint resolution on the 
                                                budget.
    June 10........................
                                        House Appropriations Committee 
                                                reports last annual 
                                                appropriation bill.
    June 15........................
                                        Congress completes action on 
                                                reconciliation 
                                                legislation.
    June 30........................
                                        House completes action on 
                                                annual appropriation 
                                                bills.
    October 1......................
                                        Fiscal year begins.''.

SEC. 103. ANNUAL JOINT RESOLUTIONS ON THE BUDGET.

    (a) Content of Annual Joint Resolutions on the Budget.--Section 
301(a) of the Congressional Budget Act of 1974 is amended as follows:
            (1) Strike paragraph (4) and insert the following new 
        paragraph:
            ``(4) subtotals of new budget authority and outlays for 
        nondefense discretionary spending, defense discretionary 
        spending, direct spending (excluding interest), and interest; 
        and for fiscal years to which the amendments made by title II 
        of the Comprehensive Budget Process Reform Act of 1999 apply, 
        subtotals of new budget authority and outlays for 
        emergencies;''.
            (2) Strike the last sentence of such subsection.
    (b) Additional Matters in Joint Resolution.--Section 301(b) of the 
Congressional Budget Act of 1974 is amended as follows:
            (1) Strike paragraphs (2), (4), (6), (8), and (9) and 
        redesignate paragraph (7) as paragraph (6).
            (2) After paragraph (1), insert the following new 
        paragraph:
            ``(2) if submitted by the Committee on Ways and Means of 
        the House of Representatives or the Committee on Finance of the 
        Senate to the Committee on the Budget of that House of 
        Congress, amend section 3101 of title 31, United States Code, 
        to change the statutory limit on the public debt;''.
            (3) After paragraph (3), insert the following new 
        paragraph:
            ``(4) require such other congressional procedures, relating 
        to the budget, as may be appropriate to carry out the purposes 
        of this Act;''.
    (c) Required Contents of Report.--Section 301(e)(2) of the 
Congressional Budget Act of 1974 is amended as follows:
            (1) Redesignate subparagraphs (A), (B), (C), (D), (E), and 
        (F) as subparagraphs (B), (C), (E), (F), (H), and (I), 
        respectively.
            (2) Before subparagraph (B) (as redesignated), insert the 
        following new subparagraph:
                    ``(A) new budget authority and outlays for each 
                major functional category, based on allocations of the 
                total levels set forth pursuant to subsection 
                (a)(1);''.
            (3) In subparagraph (C) (as redesignated), strike 
        ``mandatory'' and insert ``direct spending''.
            (4) After subparagraph (C) (as redesignated), insert the 
        following new subparagraph:
                    ``(D) a measure, as a percentage of gross domestic 
                product, of total outlays, total Federal revenues, the 
                surplus or deficit, and new outlays for nondefense 
                discretionary spending, defense spending, and direct 
                spending as set forth in such resolution;''.
            (5) After subparagraph (F) (as redesignated), insert the 
        following new subparagraph:
                    ``(G) if the joint resolution on the budget 
                includes any allocation to a committee (other than the 
                Committee on Appropriations) of levels in excess of 
                current law levels, a justification for not subjecting 
                any program, project, or activity (for which the 
                allocation is made) to annual discretionary 
                appropriations;''.
    (d) Additional Contents of Report.--Section 301(e)(3) of the 
Congressional Budget Act of 1974 is amended as follows:
            (1) Redesignate subparagraphs (A) and (B) as subparagraphs 
        (B) and (C), respectively, strike subparagraphs (C) and (D), 
        and redesignate subparagraph (E) as subparagraph (D).
            (2) Before subparagraph (B), insert the following new 
        subparagraph:
                    ``(A) reconciliation directives described in 
                section 310;''.
    (e) President's Budget Submission to the Congress.--(1) The first 
two sentences of section 1105(a) of title 31, United States Code, are 
amended to read as follows:
``On or after the first Monday in January but not later than the first 
Monday in February of each year the President shall submit a budget of 
the United States Government for the following fiscal year which shall 
set forth the following levels:
            ``(A) totals of new budget authority and outlays;
            ``(B) total Federal revenues and the amount, if any, by 
        which the aggregate level of Federal revenues should be 
        increased or decreased by bills and resolutions to be reported 
        by the appropriate committees;
            ``(C) the surplus or deficit in the budget;
            ``(D) subtotals of new budget authority and outlays for 
        nondefense discretionary spending, defense discretionary 
        spending, direct spending, and interest; and for fiscal years 
        to which the amendments made by title II of the Comprehensive 
        Budget Process Reform Act of 1999 apply, subtotals of new 
        budget authority and outlays for emergencies; and
            ``(E) the public debt.
Each budget submission shall include a budget message and summary and 
supporting information and, as a separately delineated statement, the 
levels required in the preceding sentence for at least each of the 9 
ensuing fiscal years.''.
    (2) The third sentence of section 1105(a) of title 31, United 
States Code, is amended by inserting ``submission'' after ``budget''.
    (f) Limitation on Contents of Budget Resolutions.--Section 305 of 
the Congressional Budget Act of 1974 is amended by adding at the end 
the following new subsection:
    ``(e) Limitation on Contents.--(1) It shall not be in order in the 
House of Representatives or in the Senate to consider any joint 
resolution on the budget or any amendment thereto or conference report 
thereon that contains any matter referred to in paragraph (2).
    ``(2) Any joint resolution on the budget or any amendment thereto 
or conference report thereon that contains any matter not permitted in 
section 301(a) or (b) shall not be treated in the House of 
Representatives or the Senate as a budget resolution under subsection 
(a) or (b) or as a conference report on a budget resolution under 
subsection (c) of this section.''.

SEC. 104. BUDGET REQUIRED BEFORE SPENDING BILLS MAY BE CONSIDERED; 
              FALL-BACK PROCEDURES IF PRESIDENT VETOES JOINT BUDGET 
              RESOLUTION.

    (a) Amendments to Section 302.--Section 302(a) of the Congressional 
Budget Act of 1974 is amended by striking paragraph (5).
    (b) Amendments to Section 303 and Conforming Amendments.--(1) 
Section 303 of the Congressional Budget Act of 1974 is amended--
            (A) in subsection (b), by striking paragraph (2), by 
        inserting ``or'' at the end of paragraph (1), and by 
        redesignating paragraph (3) as paragraph (2); and
            (B) by striking its section heading and inserting the 
        following new section heading: ``consideration of budget-
        related legislation before budget becomes law''.
    (2) Section 302(g)(1) of the Congressional Budget Act of 1974 is 
amended by striking ``and, after April 15, section 303(a)''.
    (3)(A) Section 904(c)(1) of the Congressional Budget Act of 1974 is 
amended by inserting ``303(a),'' before ``305(b)(2),''.
    (B) Section 904(d)(2) of the Congressional Budget Act of 1974 is 
amended by inserting ``303(a),'' before ``305(b)(2),''.
    (c) Expedited Procedures Upon Veto of Joint Resolution on the 
Budget.--(1) Title III of the Congressional Budget Act of 1974 is 
amended by adding after section 315 the following new section:

   ``expedited procedures upon veto of joint resolution on the budget

    ``Sec. 316. (a) Special Rule.--If the President vetoes a joint 
resolution on the budget for a fiscal year, the majority leader of the 
House of Representatives or Senate (or his designee) may introduce a 
concurrent resolution on the budget or joint resolution on the budget 
for such fiscal year. If the Committee on the Budget of either House 
fails to report such concurrent or joint resolution referred to it 
within five calendar days (excluding Saturdays, Sundays, or legal 
holidays except when that House of Congress is in session) after the 
date of such referral, the committee shall be automatically discharged 
from further consideration of such resolution and such resolution shall 
be placed on the appropriate calendar.
    ``(b) Procedure in the House of Representatives and the Senate.--
            ``(1) Except as provided in paragraph (2), the provisions 
        of section 305 for the consideration in the House of 
        Representatives and in the Senate of joint resolutions on the 
        budget and conference reports thereon shall also apply to the 
        consideration of concurrent resolutions on the budget 
        introduced under subsection (a) and conference reports thereon.
            ``(2) Debate in the Senate on any concurrent resolution on 
        the budget or joint resolution on the budget introduced under 
        subsection (a), and all amendments thereto and debatable 
        motions and appeals in connection therewith, shall be limited 
        to not more than 10 hours and in the House such debate shall be 
        limited to not more than 3 hours.
    ``(c) Contents of Concurrent Resolutions.--Any concurrent 
resolution on the budget introduced under subsection (a) shall be in 
compliance with section 301.
    ``(d) Effect of Concurrent Resolution on the Budget.--
Notwithstanding any other provision of this title, whenever a 
concurrent resolution on the budget described in subsection (a) is 
agreed to, then the aggregates, allocations, and reconciliation 
directives (if any) contained in the report accompanying such 
concurrent resolution or in such concurrent resolution shall be 
considered to be the aggregates, allocations, and reconciliation 
directives for all purposes of sections 302, 303, and 311 for the 
applicable fiscal years and such concurrent resolution shall be deemed 
to be a joint resolution for all purposes of this title and the Rules 
of the House of Representatives and any reference to the date of 
enactment of a joint resolution on the budget shall be deemed to be a 
reference to the date agreed to when applied to such concurrent 
resolution.''.
    (2) The table of contents set forth in section 1(b) of the 
Congressional Budget and Impoundment Control Act of 1974 is amended by 
inserting after the item relating to section 315 the following new 
item:

``Sec. 316. Expedited procedures upon veto of joint resolution on the 
                            budget.''.

SEC. 105. CONFORMING AMENDMENTS TO EFFECTUATE JOINT RESOLUTIONS ON THE 
              BUDGET.

    (a) Conforming Amendments to the Congressional Budget and 
Impoundment Control Act of 1974.--(1)(A) Sections 301, 302, 303, 305, 
308, 310, 311, 312, 314, 405, and 904 of the Congressional Budget Act 
of 1974 (2 U.S.C. 621 et seq.) are amended by striking ``concurrent'' 
each place it appears and by inserting ``joint''.
    (B)(i) Sections 302(d), 302(g), 308(a)(1)(A), and 310(d)(1) of the 
Congressional Budget Act of 1974 are amended by striking ``most 
recently agreed to concurrent resolution on the budget'' each place it 
occurs and inserting ``most recently enacted joint resolution on the 
budget or agreed to concurrent resolution on the budget (as 
applicable)''.
    (ii) The section heading of section 301 is amended by striking 
``adoption of concurrent resolution'' and inserting ``joint 
resolutions'';
    (iii) Section 304 of such Act is amended to read as follows:

             ``permissible revisions of budget resolutions

    ``Sec. 304. At any time after the joint resolution on the budget 
for a fiscal year has been enacted pursuant to section 301, and before 
the end of such fiscal year, the two Houses and the President may enact 
a joint resolution on the budget which revises or reaffirms the joint 
resolution on the budget for such fiscal year most recently enacted. If 
a concurrent resolution on the budget has been agreed to pursuant to 
section 316, then before the end of such fiscal year, the two Houses 
may adopt a concurrent resolution on the budget which revises or 
reaffirms the concurrent resolution on the budget for such fiscal year 
most recently agreed to.''.
    (C) Sections 302, 303, 310, and 311, of such Act are amended by 
striking ``agreed to'' each place it appears and by inserting 
``enacted''.
    (2)(A) Paragraph (4) of section 3 of the Congressional Budget and 
Impoundment Control Act of 1974 is amended by striking ``concurrent'' 
each place it appears and by inserting ``joint''.
    (B) The table of contents set forth in section 1(b) of such Act is 
amended--
            (i) in the item relating to section 301, by striking 
        ``adoption of concurrent resolution'' and inserting ``joint 
        resolutions'';
            (ii) by striking the item relating to section 303 and 
        inserting the following:

``Sec. 303. Consideration of budget-related legislation before budget 
                            becomes law.'';
            (iii) in the item relating to section 304, by striking 
        ``concurrent'' and inserting ``budget'' the first place it 
        appears and by striking ``on the budget''; and
            (iv) by striking ``concurrent'' and inserting ``joint'' in 
        the item relating to section 305.
    (b) Conforming Amendments to the Rules of the House of 
Representatives.--(1) Clauses 1(e)(1), 4(a)(4), 4(b)(2), 4(f)(1)(A), 
and 4(f)(2) of rule X, clause 10 of rule XVIII, and clause 10 of rule 
XX of the Rules of the House of Representatives are amended by striking 
``concurrent'' each place it appears and inserting ``joint''.
    (2) Clause 10 of rule XVIII of the Rules of the House of 
Representatives is amended--
            (A) in paragraph (b)(2), by striking ``(5)'' and inserting 
        ``(6)''; and
            (B) by striking paragraph (c).
    (c) Conforming Amendments to the Balanced Budget and Emergency 
Deficit Control Act of 1985.--Section 258C(b)(1) of the Balanced Budget 
and Emergency Deficit Control Act of 1985 (2 U.S.C. 907d(b)(1)) is 
amended by striking ``concurrent'' and inserting ``joint''.
    (d) Conforming Amendments to Section 310 Regarding Reconciliation 
Directives.--(1) The side heading of section 310(a) of the 
Congressional Budget Act of 1974 (as amended by section 105(a)) is 
further amended by inserting ``Joint Explanatory Statement Accompanying 
Conference Report on'' before ``Joint''.
    (2) Section 310(a) of such Act is amended by striking ``A'' and 
inserting ``The joint explanatory statement accompanying the conference 
report on a''.
    (3) The first sentence of section 310(b) of such Act is amended by 
striking ``If'' and inserting ``If the joint explanatory statement 
accompanying the conference report on''.
    (4) Section 310(c)(1) of such Act is amended by inserting ``the 
joint explanatory statement accompanying the conference report on'' 
after ``pursuant to''.
    (5) Subsection (g) of section 310 of such Act is repealed.
    (e) Conforming Amendments to Section 3 Regarding Direct Spending.--
Section 3 of the Congressional Budget and Impoundment Control Act of 
1974 is amended by adding at the end the following new paragraph:
            ``(11) The term `direct spending' has the meaning given to 
        such term in section 250(c)(8) of the Balanced Budget and 
        Emergency Deficit Control Act of 1985.''.
    (f) Technical Amendment Regarding Revised Suballocations.--Section 
314(d) of the Congressional Budget Act of 1974 is amended by--
            (1) striking ``Reporting'' in the side heading, by 
        inserting ``the chairmen of'' before ``the Committees'', and by 
        striking ``may report'' and inserting ``shall make and have 
        published in the Congressional Record''; and
            (2) adding at the end the following new sentence: ``For 
        purposes of considering amendments (other than for amounts for 
        emergencies covered by subsection (b)(1)), suballocations shall 
        be deemed to be so adjusted.''.

                 TITLE II--RESERVE FUND FOR EMERGENCIES

SEC. 201. PURPOSE.

    The purposes of this title are to--
            (1) develop budgetary and fiscal procedures for 
        emergencies;
            (2) subject spending for emergencies to budgetary 
        procedures and controls; and
            (3) establish criteria for determining compliance with 
        emergency requirements.

SEC. 202. REPEAL OF ADJUSTMENTS FOR EMERGENCIES.

    (a) Discretionary Spending Limits.--(1) Section 251(b)(2)(A) of the 
Balanced Budget and Emergency Deficit Control Act of 1985 is repealed.
    (2) Such section 251(b)(2) is further amended by redesignating 
subparagraphs (B) through (G) as subparagraphs (A) through (F).
    (b) Direct Spending.--Sections 252(e) and 252(d)(4)(B) of the 
Balanced Budget and Emergency Deficit Control Act of 1985 are repealed.
    (c) Emergency Designation.--Clause 2 of rule XXI of the Rules of 
the House of Representatives is amended by repealing paragraph (e) and 
by redesignating paragraph (f) as paragraph (e).
    (d) Amount of Adjustments.--Section 314(b) of the Congressional 
Budget Act of 1974 is amended by striking paragraph (1) and by 
redesignating paragraphs (2) through (6) as paragraphs (1) through (5), 
respectively.

SEC. 203. OMB EMERGENCY CRITERIA.

    Section 3 of the Congressional Budget and Impoundment Control Act 
of 1974 (as amended by section 105(e)) is further amended by adding at 
the end the following new paragraph:
            ``(12)(A) The term `emergency' means a situation that--
                    ``(i) requires new budget authority and outlays (or 
                new budget authority and the outlays flowing therefrom) 
                for the prevention or mitigation of, or response to, 
                loss of life or property, or a threat to national 
                security; and
                    ``(ii) is unanticipated.
            ``(B) As used in subparagraph (A), the term `unanticipated' 
        means that the situation is--
                    ``(i) sudden, which means quickly coming into being 
                or not building up over time;
                    ``(ii) urgent, which means a pressing and 
                compelling need requiring immediate action;
                    ``(iii) unforeseen, which means not predicted or 
                anticipated as an emerging need; and
                    ``(iv) temporary, which means not of a permanent 
                duration.''.

SEC. 204. DEVELOPMENT OF GUIDELINES FOR APPLICATION OF EMERGENCY 
              DEFINITION.

    Not later than 5 months after the date of enactment of this Act, 
the chairmen of the Committees on the Budget (in consultation with the 
President) shall, after consulting with the chairmen of the Committees 
on Appropriations and applicable authorizing committees of their 
respective Houses and the Directors of the Congressional Budget Office 
and the Office of Management and Budget, jointly publish in the 
Congressional Record guidelines for application of the definition of 
emergency set forth in section 3(12) of the Congressional Budget and 
Impoundment Control Act of 1974.

SEC. 205. RESERVE FUND FOR EMERGENCIES IN PRESIDENT'S BUDGET.

    Section 1105(f) of title 31, United States Code is amended by 
adding at the end the following new sentences: ``Such budget submission 
shall also comply with the requirements of section 317(b) of the 
Congressional Budget Act of 1974 and, in the case of any budget 
authority requested for an emergency, such submission shall include a 
detailed justification of why such emergency is an emergency within the 
meaning of section 3(12) of the Congressional Budget Act of 1974.''.

SEC. 206. ADJUSTMENTS AND RESERVE FUND FOR EMERGENCIES IN JOINT BUDGET 
              RESOLUTIONS.

    (a) Emergencies.--Title III of the Congressional Budget Act of 1974 
(as amended by section 104(c)) is further amended by adding at the end 
the following new section:

                             ``emergencies

    ``Sec. 317. (a) Adjustments.--
            ``(1) In general.--After the reporting of a bill or joint 
        resolution or the submission of a conference report thereon 
        that provides budget authority for any emergency as identified 
        pursuant to subsection (c), the Committee on the Budget of the 
        House of Representatives or the Senate shall--
                    ``(A) determine and certify, pursuant to the 
                guidelines referred to in section 204 of the 
                Comprehensive Budget Process Reform Act of 1999, the 
                portion (if any) of the amount so specified that is for 
                an emergency within the meaning of section 3(12); and
                    ``(B) make the adjustment set forth in paragraph 
                (2) for the amount of new budget authority (or outlays) 
                in that measure and the outlays flowing from that 
                budget authority.
            ``(2) Matters to be adjusted.--The adjustments referred to 
        in paragraph (1) are to be made to the allocations made 
        pursuant to the appropriate joint resolution on the budget (or 
        concurrent resolution on the budget, as the case may be) 
        pursuant to section 302(a) and shall be in an amount not to 
        exceed the amount reserved for emergencies pursuant to the 
        requirements of subsection (b).
    ``(b) Reserve Fund for Emergencies.--
            ``(1) Amounts.--The amount set forth in the reserve fund 
        for emergencies for budget authority and outlays for a fiscal 
        year pursuant to section 301(a)(4) shall equal--
                    ``(A) the average of the enacted levels of budget 
                authority for emergencies in the 5 fiscal years 
                preceding the current year; and
                    ``(B) the average of the levels of outlays for 
                emergencies in the 5 fiscal years preceding the current 
                year flowing from the budget authority referred to in 
                subparagraph (A), but only in the fiscal year for which 
                such budget authority first becomes available for 
                obligation.
            ``(2) Average levels.--For purposes of paragraph (1), the 
        amount used for a fiscal year to calculate the average of the 
        enacted levels when one or more of such 5 preceding fiscal 
        years is any of fiscal years 1994 through 1998 is as follows: 
        the amount of enacted levels of budget authority and the amount 
        of new outlays flowing therefrom for emergencies, but only in 
        the fiscal year for which such budget authority first becomes 
        available for obligation for each of such 5 fiscal years, which 
        shall be determined by the Committees on the Budget of the 
        House of Representatives and the Senate after receipt of a 
report on such matter transmitted to such committees by the Director of 
the Congressional Budget Office 6 months after the date of enactment of 
this section and thereafter in February of each calendar year.
    ``(c) Committee Notification of Emergency Legislation.--Whenever 
any committee of either House (including a committee of conference) 
reports any bill or joint resolution that provides budget authority for 
any emergency, the report accompanying that bill or joint resolution 
(or the joint explanatory statement of managers in the case of a 
conference report on any such bill or joint resolution) shall identify 
all provisions that provide budget authority and the outlays flowing 
therefrom for such emergency and include a statement of the reasons why 
such budget authority meets the definition of an emergency pursuant to 
the guidelines referred to in section 204 of the Comprehensive Budget 
Process Reform Act of 1999.''.
    (b) Conforming Amendment.--The table of contents set forth in 
section 1(b) of the Congressional Budget and Impoundment Control Act of 
1974 is amended by inserting after the item relating to section 316 the 
following new item:

``Sec. 317. Emergencies.''.

SEC. 207. UP-TO-DATE TABULATIONS.

    Section 308(b)(2) of the Congressional Budget Act of 1974 is 
amended by striking ``and'' at the end of subparagraph (B), by striking 
the period at the end of subparagraph (C) and inserting ``; and'', and 
by adding at the end the following new subparagraph:
                    ``(D) shall include an up-to-date tabulation of 
                amounts remaining in the reserve fund for 
                emergencies.''.

SEC. 208. PROHIBITION ON AMENDMENTS TO EMERGENCY RESERVE FUND.

    (a) Point of Order.--Section 305 of the Congressional Budget Act of 
1974 (as amended by section 103(c)) is further amended by adding at the 
end the following new subsection:
    ``(f) Point of Order Regarding Emergency Reserve Fund.--It shall 
not be in order in the House of Representatives or in the Senate to 
consider an amendment to a joint resolution on the budget (or 
concurrent resolution on the budget, as the case may be) which changes 
the amount of budget authority and outlays set forth in section 
301(a)(4) for emergency reserve fund.''.
    (b) Technical Amendment.--(1) Section 904(c)(1) of the 
Congressional Budget Act of 1974 is amended by inserting ``305(e), 
305(f),'' after ``305(c)(4),''.
    (2) Section 904(d)(2) of the Congressional Budget Act of 1974 is 
amended by inserting ``305(e), 305(f),'' after ``305(c)(4),''.

SEC. 209. EFFECTIVE DATE.

    The amendments made by this title shall apply to fiscal year 2001 
and subsequent fiscal years, but such amendments shall take effect only 
after the enactment of legislation changing or extending for any fiscal 
year the budgetary procedures set forth in sections 251 and 252 of the 
Balanced Budget and Emergency Deficit Control Act of 1985.

             TITLE III--ENFORCEMENT OF BUDGETARY DECISIONS

SEC. 301. PURPOSES.

    The purposes of this title are to--
            (1) close loopholes in the enforcement of budget 
        resolutions;
            (2) require committees of the House of Representatives to 
        include budget compliance statements in reports accompanying 
        all legislation;
            (3) require committees of the House of Representatives to 
        justify the need for waivers of the Congressional Budget Act of 
        1974; and
            (4) provide cost estimates of conference reports.

  Subtitle A--Application of Points of Order to Unreported Legislation

SEC. 311. APPLICATION OF BUDGET ACT POINTS OF ORDER TO UNREPORTED 
              LEGISLATION.

    (a) Section 315 of the Congressional Budget Act of 1974 is amended 
by striking ``reported'' the first place it appears.
    (b) Section 303(b) of the Congressional Budget Act of 1974 (as 
amended by section 104(b)(1)) is further amended--
            (1) in paragraph (1), by striking ``(A)'' and by 
        redesignating subparagraph (B) as paragraph (2) and by striking 
        the semicolon at the end of such new paragraph (2) and 
        inserting a period; and
            (2) by striking paragraph (2) (as redesignated by such 
        section 104(b)(1)).

             Subtitle B--Compliance with Budget Resolution

SEC. 321. BUDGET COMPLIANCE STATEMENTS.

    Clause 3(d) of rule XIII of the Rules of the House of 
Representatives is amended by adding at the end the following new 
subparagraph:
            ``(4) A budget compliance statement prepared by the 
        chairman of the Committee on the Budget, if timely submitted 
        prior to the filing of the report, which shall include 
        assessment by such chairman as to whether the bill or joint 
        resolution complies with the requirements of sections 302, 303, 
        306, 311, and 401 of the Congressional Budget Act of 1974 and 
        may include the budgetary implications of that bill or joint 
        resolution under section 251 or 252 of the Balanced Budget and 
        Emergency Deficit Control Act of 1985, as applicable.''.

            Subtitle C--Justification for Budget Act Waivers

SEC. 331. JUSTIFICATION FOR BUDGET ACT WAIVERS IN THE HOUSE OF 
              REPRESENTATIVES.

    Clause 6 of rule XIII of the Rules of the House of Representatives 
is amended by adding at the end the following new paragraph:
    ``(h) It shall not be in order to consider any resolution from the 
Committee on Rules for the consideration of any reported bill or joint 
resolution which waives section 302, 303, 311, or 401 of the 
Congressional Budget Act of 1974, unless the report accompanying such 
resolution includes a description of the provision proposed to be 
waived, an identification of the section being waived, the reasons why 
such waiver should be granted, and an estimated cost of the provisions 
to which the waiver applies.''.

             Subtitle D--CBO Scoring of Conference Reports

SEC. 341. CBO SCORING OF CONFERENCE REPORTS.

    (a) The first sentence of section 402 of the Congressional Budget 
Act of 1974 is amended as follows:
            (1) Insert ``or conference report thereon,'' before ``and 
        submit''.
            (2) In paragraph (1), strike ``bill or resolution'' and 
        insert ``bill, joint resolution, or conference report''.
            (3) At the end of paragraph (2) strike ``and'', at the end 
        of paragraph (3) strike the period and insert ``; and'', and 
        after such paragraph (3) add the following new paragraph:
            ``(4) A determination of whether such bill, joint 
        resolution, or conference report provides direct spending.''.
    (b) The second sentence of section 402 of the Congressional Budget 
Act of 1974 is amended by inserting before the period the following: 
``, or in the case of a conference report, shall be included in the 
joint explanatory statement of managers accompanying such conference 
report if timely submitted before such report is filed''.

             TITLE IV--ACCOUNTABILITY FOR FEDERAL SPENDING

SEC. 401. PURPOSES.

    The purposes of this title are to--
            (1) require committees to develop a schedule for 
        reauthorizing all programs within their jurisdictions;
            (2) facilitate amendments to subject new entitlement 
        programs to annual discretionary appropriations;
            (3) require the Committee on the Budget to justify any 
        allocation to an authorizing committee for legislation that 
        would not be subject to annual discretionary appropriation;
            (4) provide estimates of the long-term impact of spending 
        and tax legislation;
            (5) provide a point of order for legislation creating a new 
        direct spending program that does not expire within 10 years; 
        and
            (6) require a vote in the House of Representatives on any 
        measure that increases the statutory limit on the public debt.

               Subtitle A--Limitations on Direct Spending

SEC. 411. FIXED-YEAR AUTHORIZATIONS REQUIRED FOR NEW PROGRAMS.

    (a) In General.--Section 401 of the Congressional Budget Act of 
1974 is amended--
            (1) by striking subsections (a) and (b) and inserting the 
        following new subsection:
    ``(a) Limitation on Direct Spending.--It shall not be in order in 
the House of Representatives or in the Senate to consider a bill or 
joint resolution, or an amendment, motion, or conference report that 
provides direct spending for a new program, unless such spending is 
limited to a period of 10 or fewer fiscal years.'';
            (2) by redesignating subsection (c) as subsection (b) and 
        by striking ``Subsections (a) and (b) each place it appears and 
        inserting ``Subsection (a)'' in such redesignated subsection 
        (b); and
            (3) by amending the section heading to read as follows:

      ``fixed-year authorizations required for direct spending''.

    (b) Conforming Amendment.--The item relating to section 401 in the 
table of contents set forth in section 1(b) of the Congressional Budget 
and Impoundment Control Act of 1974 is amended to read as follows:

``Sec. 401. Fixed-year authorizations required for direct spending.''.
    (c) Limitation on Authorization of Discretionary Appropriations.--
Rule XXI of the Rules of the House of Representatives is amended by 
adding at the end the following new clause:
    ``6. It shall not be in order to consider any bill, joint 
resolution, amendment, or conference report that authorizes the 
appropriation of new budget authority (as defined in section 3(2)(C) of 
the Congressional Budget and Impoundment Control Act of 1974) for a new 
program, unless such authorization is specifically provided for a 
period of 10 or fewer fiscal years.''.

SEC. 412. AMENDMENTS TO SUBJECT NEW DIRECT SPENDING TO ANNUAL 
              APPROPRIATIONS.

    (a) House Procedures.--Clause 5 of rule XVIII of the Rules of the 
House of Representatives is amended by adding at the end the following 
new paragraph:
    ``(c)(1) In the Committee of the Whole, an amendment only to 
subject a new program which provides direct spending to discretionary 
appropriations, if offered by the chairman of the Committee on the 
Budget (or his designee) or the chairman of the Committee of 
Appropriations (or his designee), may be precluded from consideration 
only by the specific terms of a special order of the House. Any such 
amendment, if offered, shall be debatable for twenty minutes equally 
divided and controlled by the proponent of the amendment and a Member 
opposed and shall not be subject to amendment.
    ``(2) As used in subparagraph (1), the term `direct spending' has 
the meaning given such term in section 3(11) of the Congressional 
Budget and Impoundment Control Act of 1974.''.
    (b) Adjustment of Discretionary Spending Limits for Discretionary 
Appropriations Offset by Direct Spending Savings.--
            (1) Purpose.--The purpose of the amendments made by this 
        subsection is to hold the discretionary spending limits and the 
        allocations made to the Committee on Appropriations under 
        section 302(a) of the Congressional Budget Act of 1974 harmless 
        for legislation that offsets a new discretionary program with a 
        designated reduction in direct spending.
            (2) Designating direct spending savings in authorization 
        legislation for new discretionary programs.--Section 252 of the 
        Balanced Budget and Emergency Deficit Control Act of 1985 (as 
        amended by section 202) is further amended by adding at the end 
        the following new subsection:
    ``(e) Offsets.--If a provision of direct spending legislation is 
enacted that--
            ``(1) decreases direct spending for any fiscal year; and
            ``(2) is designated as an offset pursuant to this 
        subsection and such designation specifically identifies an 
        authorization of discretionary appropriations (contained in 
        such legislation) for a new program,
then the reductions in new budget authority and outlays in all fiscal 
years resulting from that provision shall be designated as an offset in 
the reports required under subsection (d).''.
            (3) Exempting such designated direct spending savings from 
        paygo scorecard.--Section 252(d)(4) of the Balanced Budget and 
        Emergency Deficit Control Act of 1985 (as amended by section 
        202(b)) is further amended by adding at the end the following 
        new subparagraph:
                    ``(B) offset provisions as designated under 
                subsection (e).''.
            (4) Adjustment in discretionary spending limits.--Section 
        251(b)(2) of the Balanced Budget and Emergency Deficit Control 
        Act of 1985 (as amended by section 202(a)(2)) is further 
        amended by adding at the end the following new subparagraph:
                    ``(G) Discretionary authorization offsets.--If an 
                Act other than an appropriation Act includes any 
                provision reducing direct spending and specifically 
                identifies any such provision as an offset pursuant to 
                section 252(e), the adjustments shall be an increase in 
                the discretionary spending limits for budget authority 
                and outlays in each fiscal year equal to the amount of 
                the budget authority and outlay reductions, 
                respectively, achieved by the specified offset in that 
                fiscal year, except that the adjustments for the budget 
                year in which the offsetting provision takes effect 
                shall not exceed the amount of discretionary new budget 
                authority provided for the new program (authorized in 
                that Act) in an Act making discretionary appropriations 
                and the outlays flowing therefrom.''.
            (5) Adjustment in appropriation committee's allocations.--
        Section 314(b) of the Congressional Budget Act of 1974 (as 
        amended by section 202(d)) is further amended by striking ``; 
        or'' at the end of paragraph (4), by striking the period and 
        inserting ``; or'' at the end of paragraph (5), and by adding 
        at the end the following new paragraph:
            ``(6) the amount provided in an Act making discretionary 
        appropriations for the program for which an offset was 
        designated pursuant to section 252(e) of the Balanced Budget 
        and Emergency Deficit Control Act of 1985 and any outlays 
        flowing therefrom, but not to exceed the amount of the 
        designated decrease in direct spending for that year for that 
        program in a prior law.''.
            (6) Adjustment in authorizing committee's allocations.--
        Section 314 of the Congressional Budget Act of 1974 is amended 
        by adding at the end the following new subsection:
    ``(f) Adjustment in Authorizing Committee's Allocations by Amount 
of Direct Spending Offset.--After the reporting of a bill or joint 
resolution (by a committee other than the Committee on Appropriations), 
or the offering of an amendment thereto or the submission of a 
conference report thereon, that contains a provision that decreases 
direct spending for any fiscal year and that is designated as an offset 
pursuant to section 252(e) of the Balanced Budget and Emergency Deficit 
Control Act of 1985, the chairman of the Committee on the Budget shall 
reduce the allocations of new budget authority and outlays made to such 
committee under section 302(a)(1) by the amount so designated.''.

     Subtitle B--Enhanced Congressional Oversight Responsibilities

SEC. 421. TEN-YEAR CONGRESSIONAL REVIEW REQUIREMENT OF PERMANENT BUDGET 
              AUTHORITY.

    (a) Timetable for Review.--Clause 2(d)(1) of rule X of the Rules of 
the House of Representatives is amended by striking subdivisions (B) 
and (C) and inserting the following new subdivision:
            ``(B) provide in its plans a specific timetable for its 
        review of those laws, programs, or agencies within its 
        jurisdiction, including those that operate under permanent 
budget authority or permanent statutory authority and such timetable 
shall demonstrate that each law, program, or agency within the 
committee's jurisdiction will be reauthorized at least once every ten 
years.''.
    (b) Review of Permanent Budget Authority by the Committee on 
Appropriations.--Clause 4(a) of rule X of the Rules of the House of 
Representatives is amended--
            (1) by striking subparagraph (2); and
            (2) by redesignating subparagraphs (3) and (4) as 
        subparagraphs (2) and (3) and by striking ``from time to time'' 
        and inserting ``at least once each Congress'' in subparagraph 
        (2) (as redesignated).
    (c) Conforming Amendment.--Clause 4(e)(2) of rule X of the Rules of 
the House of Representatives is amended by striking ``from time to 
time'' and inserting ``at least once every ten years''.

SEC. 422. JUSTIFICATIONS OF DIRECT SPENDING.

    (a) Section 302 Allocations.--Section 302(a) of the Congressional 
Budget Act of 1974 (as amended by section 104(a)) is further amended by 
adding at the end the following new paragraph:
            ``(5) Justification of certain spending allocations.--The 
        joint explanatory statement accompanying a conference report on 
        a joint resolution on the budget that includes any allocation 
        to a committee (other than the Committee on Appropriations) of 
        levels in excess of current law levels shall set forth a 
        justification for not subjecting any program, project, or 
        activity (for which the allocation is made) to annual 
        discretionary appropriation.''.
    (b) Presidents' Budget Submissions.--Section 1105(a) of title 31, 
United States Code, is amended by adding at the end the following new 
paragraph:
            ``(33) a justification for not subjecting each new program, 
        project, or activity to discretionary appropriations.''.
    (c) Committee Justification for Direct Spending.--Clause 4(e)(2) of 
rule X of the Rules of the House of Representatives is amended by 
inserting before the period the following: ``, and will provide 
specific information in any report accompanying such bills and joint 
resolutions to the greatest extent practicable to justify why the 
programs, projects, and activities involved would not be subject to 
annual appropriation''.

SEC. 423. SURVEY OF ACTIVITY REPORTS OF HOUSE COMMITTEES.

    Clause 1(d) of rule XI of the Rules of the House of Representatives 
is amended by redesignating paragraph (4) as paragraph (5) and by 
inserting after paragraph (3) the following new paragraph:
    ``(4) Such report shall include a summary of and justifications for 
all bills and joint resolutions reported by such committee that--
            ``(A) were considered before the adoption of the 
        appropriate budget resolution and did not fall within an 
        exception set forth in section 303(b) of the Congressional 
        Budget Act of 1974;
            ``(B) exceeded its allocation under section 302(a) of such 
        Act or breached an aggregate level in violation of section 311 
        of such Act; or
            ``(C) contained provisions in violation of section 401(a) 
        of such Act pertaining to indefinite direct spending authority.
Such report shall also specify the total amount by which legislation 
reported by that committee exceeded its allocation under section 302(a) 
or breached the revenue floor under section 311(a) of such Act for each 
fiscal year during that Congress.''.

SEC. 424. CONTINUING STUDY OF ADDITIONAL BUDGET PROCESS REFORMS.

    Section 703 of the Congressional Budget Act of 1974 is amended as 
follows:
            (1) In subsection (a), strike ``and'' at the end of 
        paragraph (3), strike the period at the end of paragraph (4) 
        and insert ``; and'', and at the end add the following new 
        paragraph:
            ``(5) evaluating whether existing programs, projects, and 
        activities should be subject to discretionary appropriations 
        and establishing guidelines for subjecting new or expanded 
        programs, projects, and activities to annual appropriation and 
        recommend any necessary changes in statutory enforcement 
        mechanisms and scoring conventions to effectuate such 
        changes.''.
            (2) In subsection (b), strike ``from time to time'' and 
        insert ``during the One Hundred Sixth Congress''.

SEC. 425. GAO REPORTS.

      The last sentence of section 404 of the Congressional Budget Act 
of 1974 is amended to read as follows: ``Such report shall be revised 
at least once every five years and shall be transmitted to the chairman 
and ranking minority member of each committee of the House of 
Representatives and the Senate.''.

                Subtitle C--Strengthened Accountability

SEC. 431. TEN-YEAR CBO ESTIMATES.

    (a) CBO Reports on Legislation.--Section 308(a)(1)(B) of the 
Congressional Budget Act of 1974 is amended by striking ``four'' and 
inserting ``nine''.
    (b) Analysis by CBO.--Section 402(1) of the Congressional Budget 
Act of 1974 is amended by striking ``4'' and inserting ``nine''.
    (c) Cost Estimates.--Clause 3(d)(2)(A) of rule XIII of the Rules of 
the House of Representatives is amended by striking ``five'' each place 
it appears and inserting ``10''.

SEC. 432. REPEAL OF RULE XXIII OF THE RULES OF THE HOUSE OF 
              REPRESENTATIVES.

    Rule XXIII of the Rules of the House of Representatives (relating 
to the establishment of the statutory limit on the public debt) is 
repealed.

    TITLE V--BUDGETING FOR UNFUNDED LIABILITIES AND OTHER LONG-TERM 
                              OBLIGATIONS

SEC. 501. PURPOSES.

    The purposes of this title are to--
            (1) budget for the long-term costs of Federal insurance 
        programs;
            (2) improve congressional control of those costs; and
            (3) periodically report on long-term budgetary trends.

     Subtitle A--Budgetary Treatment of Federal Insurance Programs

SEC. 511. FEDERAL INSURANCE PROGRAMS.

    (a) In General.--The Congressional Budget Act of 1974 is amended by 
adding after title V the following new title:

     ``TITLE VI--BUDGETARY TREATMENT OF FEDERAL INSURANCE PROGRAMS

``SEC. 601. SHORT TITLE.

    ``This title may be cited as the `Federal Insurance Budgeting Act 
of 1999'.

``SEC. 602. BUDGETARY TREATMENT.

    ``(a) President's Budget.--Beginning with fiscal year 2006, the 
budget of the Government pursuant to section 1105(a) of title 31, 
United States Code, shall be based on the risk-assumed cost of Federal 
insurance programs.
    ``(b) Budget Accounting.--For any Federal insurance program--
            ``(1) the program account shall--
                    ``(A) pay the risk-assumed cost borne by the 
                taxpayer to the financing account, and
                    ``(B) pay actual insurance program administrative 
                costs;
            ``(2) the financing account shall--
                    ``(A) receive premiums and other income,
                    ``(B) pay all claims for insurance and receive all 
                recoveries,
                    ``(C) transfer to the program account on not less 
                than an annual basis amounts necessary to pay insurance 
                program administrative costs;
            ``(3) a negative risk-assumed cost shall be transferred 
        from the financing account to the program account, and shall be 
        transferred from the program account to the general fund; and
            ``(4) all payments by or receipts of the financing accounts 
        shall be treated in the budget as a means of financing.
    ``(c) Appropriations Required.--(1) Notwithstanding any other 
provision of law, insurance commitments may be made for fiscal year 
2006 and thereafter only to the extent that new budget authority to 
cover their risk-assumed cost is provided in advance in an 
appropriation Act.
    ``(2) An outstanding insurance commitment shall not be modified in 
a manner that increases its risk-assumed cost unless budget authority 
for the additional cost has been provided in advance.
    ``(3) Paragraph (1) shall not apply to Federal insurance programs 
that constitute entitlements.
    ``(d) Reestimates.--The risk-assumed cost for a fiscal year shall 
be reestimated in each subsequent year. Such reestimate can equal zero. 
In the case of a positive reestimate, the amount of the reestimate 
shall be paid from the program account to the financing account. In the 
case of a negative reestimate, the amount of the reestimate shall be 
paid from the financing account to the program account, and shall be 
transferred from the program account to the general fund. Reestimates 
shall be displayed as a distinct and separately identified subaccount 
in the program account.
    ``(e) Administrative Expenses.--All funding for an agency's 
administration of a Federal insurance program shall be displayed as a 
distinct and separately identified subaccount in the program account.

``SEC. 603. TIMETABLE FOR IMPLEMENTATION OF ACCRUAL BUDGETING FOR 
              FEDERAL INSURANCE PROGRAMS.

    ``(a) Agency Requirements.--Agencies with responsibility for 
Federal insurance programs shall develop models to estimate their risk-
assumed cost by year through the budget horizon and shall submit those 
models, all relevant data, a justification for critical assumptions, 
and the annual projected risk-assumed costs to OMB with their budget 
requests each year starting with the request for fiscal year 2002. 
Agencies will likewise provide OMB with annual estimates of 
modifications, if any, and reestimates of program costs.
    ``(b) Disclosure.--When the President submits a budget of the 
Government pursuant to section 1105(a) of title 31, United States Code, 
for fiscal year 2002, OMB shall publish a notice in the Federal 
Register advising interested persons of the availability of information 
describing the models, data (including sources), and critical 
assumptions (including explicit or implicit discount rate assumptions) 
that it would use to estimate the risk-assumed cost of Federal 
insurance programs and giving such interested persons an opportunity to 
submit comments.
    ``(c) Revision.--(1) After consideration of comments pursuant to 
subsection (b), and in consultation with the Committees on the Budget 
of the House of Representatives and the Senate, OMB and CBO shall 
revise the models, data, and major assumptions they would use to 
estimate the risk-assumed cost of Federal insurance programs.
    ``(2) When the President submits a budget of the Government 
pursuant to section 1105(a) of title 31, United States Code, for fiscal 
year 2003, OMB shall publish a notice in the Federal Register advising 
interested persons of the availability of information describing the 
models, data (including sources), and critical assumptions (including 
explicit or implicit discount rate assumptions) that it or other 
executive branch entities used to estimate the risk-assumed cost of 
Federal insurance programs.
    ``(d) Display.--
            ``(1) In general.--For fiscal years 2003, 2004, and 2005 
        the budget submissions of the President pursuant to section 
        1105(a) of title 31, United States Code, and CBO's reports on 
        the economic and budget outlook pursuant to section 202(e)(1) 
        and the President's budgets, shall for display purposes only, 
        estimate the risk-assumed cost of existing or proposed Federal 
        insurance programs.
            ``(2) OMB.--The display in the budget submissions of the 
        President for fiscal years 2003, 2004, and 2005 shall include--
                    ``(A) a presentation for each Federal insurance 
                program in budget-account level detail of estimates of 
                risk-assumed cost;
                    ``(B) a summary table of the risk-assumed costs of 
                Federal insurance programs; and
                    ``(C) an alternate summary table of budget 
                functions and aggregates using risk-assumed rather than 
                cash-based cost estimates for Federal insurance 
                programs.
            ``(3) CBO.--In the second session of the 107th Congress and 
        the 108th Congress, CBO shall include in its estimates under 
        section 308, for display purposes only, the risk-assumed cost 
        of existing Federal insurance programs, or legislation that 
        CBO, in consultation with the Committees on the Budget of the 
        House of Representatives and the Senate, determines would 
        create a new Federal insurance program.
    ``(e) OMB, CBO, and GAO Evaluations.--(1) Not later than 6 months 
after the budget submission of the President pursuant to section 
1105(a) of title 31, United States Code, for fiscal year 2005, OMB, 
CBO, and GAO shall each submit to the Committees on the Budget of the 
House of Representatives and the Senate a report that evaluates the 
advisability and appropriate implementation of this title.
    ``(2) Each report made pursuant to paragraph (1) shall address the 
following:
            ``(A) The adequacy of risk-assumed estimation models used 
        and alternative modeling methods.
            ``(B) The availability and reliability of data or 
        information necessary to carry out this title.
            ``(C) The appropriateness of the explicit or implicit 
        discount rate used in the various risk-assumed estimation 
        models.
            ``(D) The advisability of specifying a statutory discount 
        rate (such as the Treasury rate) for use in risk-assumed 
        estimation models.
            ``(E) The ability of OMB, CBO, or GAO, as applicable, to 
        secure any data or information directly from any Federal agency 
        necessary to enable it to carry out this title.
            ``(F) The relationship between risk-assumed accrual 
        budgeting for Federal insurance programs and the specific 
        requirements of the Balanced Budget and Emergency Deficit 
        Control Act of 1985.
            ``(G) Whether Federal budgeting is improved by the 
        inclusion of risk-assumed cost estimates for Federal insurance 
        programs.
            ``(H) The advisability of including each of the programs 
        currently estimated on a risk-assumed cost basis in the Federal 
        budget on that basis.

``SEC. 604. DEFINITIONS.

    ``For purposes of this title:
            ``(1) The term `Federal insurance program' means a program 
        that makes insurance commitments and includes the list of such 
        programs included in the joint explanatory statement of 
        managers accompanying the conference report on the 
        Comprehensive Budget Process Reform Act of 1999.
            ``(2) The term `insurance commitment' means an agreement in 
        advance by a Federal agency to indemnify a nonfederal entity 
        against specified losses. This term does not include loan 
        guarantees as defined in title V or benefit programs such as 
        social security, medicare, and similar existing social 
        insurance programs.
            ``(3)(A) The term `risk-assumed cost' means the net present 
        value of the estimated cash flows to and from the Government 
        resulting from an insurance commitment or modification thereof.
            ``(B) The cash flows associated with an insurance 
        commitment include--
                    ``(i) expected claims payments inherent in the 
                Government's commitment;
                    ``(ii) net premiums (expected premium collections 
                received from or on behalf of the insured less expected 
                administrative expenses);
                    ``(iii) expected recoveries; and
                    ``(iv) expected changes in claims, premiums, or 
                recoveries resulting from the exercise by the insured 
                of any option included in the insurance commitment.
            ``(C) The cost of a modification is the difference between 
        the current estimate of the net present value of the remaining 
        cash flows under the terms of the insurance commitment, and the 
        current estimate of the net present value of the remaining cash 
        flows under the terms of the insurance commitment as modified.
            ``(D) The cost of a reestimate is the difference between 
        the net present value of the amount currently required by the 
        financing account to pay estimated claims and other 
        expenditures and the amount currently available in the 
        financing account. The cost of a reestimate shall be accounted 
        for in the current year in the budget of the Government 
        pursuant to section 1105(a) of title 31, United States Code.
            ``(E) For purposes of this definition, expected 
        administrative expenses shall be construed as the amount 
        estimated to be necessary for the proper administration of the 
        insurance program. This amount may differ from amounts actually 
        appropriated or otherwise made available for the administration 
        of the program.
            ``(4) The term `program account' means the budget account 
        for the risk-assumed cost, and for paying all costs of 
        administering the insurance program, and is the account from 
        which the risk-assumed cost is disbursed to the financing 
        account.
            ``(5) The term `financing account' means the nonbudget 
        account that is associated with each program account which 
        receives payments from or makes payments to the program 
        account, receives premiums and other payments from the public, 
        pays insurance claims, and holds balances.
            ``(6) The term `modification' means any Government action 
        that alters the risk-assumed cost of an existing insurance 
        commitment from the current estimate of cash flows. This 
        includes any action resulting from new legislation, or from the 
        exercise of administrative discretion under existing law, that 
        directly or indirectly alters the estimated cost of existing 
        insurance commitments.
            ``(7) The term `model' means any actuarial, financial, 
        econometric, probabilistic, or other methodology used to 
        estimate the expected frequency and magnitude of loss-producing 
        events, expected premiums or collections from or on behalf of 
        the insured, expected recoveries, and administrative expenses.
            ``(8) The term `current' has the same meaning as in section 
        250(c)(9) of the Balanced Budget and Emergency Deficit Control 
        Act of 1985.
            ``(9) The term `OMB' means the Director of the Office of 
        Management and Budget.
            ``(10) The term `CBO' means the Director of the 
        Congressional Budget Office.
            ``(11) The term `GAO' means the Comptroller General of the 
        United States.

``SEC. 605. AUTHORIZATIONS TO ENTER INTO CONTRACTS; ACTUARIAL COST 
              ACCOUNT.

    ``(a) Authorization of Appropriations.--There is authorized to be 
appropriated $600,000 for each of fiscal years 2000 through 2005 to the 
Director of the Office of Management and Budget and each agency 
responsible for administering a Federal program to carry out this 
title.
    ``(b) Treasury Transactions With the Financing Accounts.--The 
Secretary of the Treasury shall borrow from, receive from, lend to, or 
pay the insurance financing accounts such amounts as may be 
appropriate. The Secretary of the Treasury may prescribe forms and 
denominations, maturities, and terms and conditions for the 
transactions described above. The authorities described above shall not 
be construed to supersede or override the authority of the head of a 
Federal agency to administer and operate an insurance program. All the 
transactions provided in this subsection shall be subject to the 
provisions of subchapter II of chapter 15 of title 31, United States 
Code. Cash balances of the financing accounts in excess of current 
requirements shall be maintained in a form of uninvested funds, and the 
Secretary of the Treasury shall pay interest on these funds.
    ``(c) Appropriation of Amount Necessary To Cover Risk-Assumed Cost 
of Insurance Commitments at Transition Date.--(1) A financing account 
is established on September 30, 2005, for each Federal insurance 
program.
    ``(2) There is appropriated to each financing account the amount of 
the risk-assumed cost of Federal insurance commitments outstanding for 
that program as of the close of September 30, 2005.
    ``(3) These financing accounts shall be used in implementing the 
budget accounting required by this title.

``SEC. 606. EFFECTIVE DATE.

    ``(a) In General.--This title shall take effect immediately and 
shall expire on September 30, 2007.
    ``(b) Special Rule.--If this title is not reauthorized by September 
30, 2007, then the accounting structure and budgetary treatment of 
Federal insurance programs shall revert to the accounting structure and 
budgetary treatment in effect immediately before the date of enactment 
of this title.''.
    (b)  Conforming Amendment.--The table of contents set forth in 
section 1(b) of the Congressional Budget and Impoundment Control Act of 
1974 is amended by inserting after the item relating to section 507 the 
following new items:

     ``TITLE VI--BUDGETARY TREATMENT OF FEDERAL INSURANCE PROGRAMS

``Sec. 601. Short title.
``Sec. 602. Budgetary treatment.
``Sec. 603. Timetable for implementation of accrual budgeting for 
                            Federal insurance programs.
``Sec. 604. Definitions.
``Sec. 605. Authorizations to enter into contracts; actuarial cost 
                            account.
``Sec. 606. Effective date.''.

           Subtitle B--Reports on Long-Term Budgetary Trends

SEC. 521. REPORTS ON LONG-TERM BUDGETARY TRENDS.

    (a) The President's Budget.--Section 1105(a) of title 31, United 
States Code (as amended by section 404), is further amended by adding 
at the end the following new paragraph:
            ``(34) an analysis based upon current law and an analysis 
        based upon the policy assumptions underlying the budget 
        submission for every fifth year of the period of 75 fiscal 
        years beginning with such fiscal year, of the estimated levels 
        of total new budget authority and total budget outlays, 
        estimated revenues, estimated surpluses and deficits, and, for 
        social security, medicare, medicaid, and all other direct 
        spending, estimated levels of total new budget authority and 
        total budget outlays; and a specification of its underlying 
        assumptions and a sensitivity analysis of factors that have a 
significant effect on the projections made in each analysis; and a 
comparison of the effects of each of the two analyses on the economy, 
including such factors as inflation, foreign investment, interest 
rates, and economic growth.''.
    (b) CBO Reports.--Section 202(e)(1) of the Congressional Budget Act 
of 1974 is amended by adding at the end the following new sentences: 
``Such report shall also include an analysis based upon current law for 
every fifth year of the period of 75 fiscal years beginning with such 
fiscal year, of the estimated levels of total new budget authority and 
total budget outlays, estimated revenues, estimated surpluses and 
deficits, and, for social security, medicare, medicaid, and all other 
direct spending, estimated levels of total new budget authority and 
total budget outlays. The report described in the preceding sentence 
shall also specify its underlying assumptions and set forth a 
sensitivity analysis of factors that have a significant effect on the 
projections made in the report.''.

              TITLE VI--BASELINES, BYRD RULE, AND LOCK-BOX

SEC. 601. PURPOSE.

The purposes of this title are to--
            (1) require budgetary comparisons to prior year levels;
            (2) restrict the application of the Byrd rule to measures 
        other than conference reports; and
            (3) establish a procedure to allow savings from spending 
        cuts in appropriation measures to be locked-in to increase the 
        surplus or reduce the deficit.

                        Subtitle A--The Baseline

SEC. 611. THE PRESIDENT'S BUDGET.

    (a) Paragraph (5) of section 1105(a) of title 31, United States 
Code, is amended to read as follows:
            ``(5) except as provided in subsection (b) of this section, 
        estimated expenditures and appropriations for the current year 
        and estimated expenditures and proposed appropriations the 
        President decides are necessary to support the Government in 
        the fiscal year for which the budget is submitted and the 4 
        fiscal years following that year, and, except for detailed 
        budget estimates, the percentage change from the current year 
        to the fiscal year for which the budget is submitted for 
        estimated expenditures and for appropriations.''.
    (b) Section 1105(a)(6) of title 31, United States Code, is amended 
to read as follows:
            ``(6) estimated receipts of the Government in the current 
        year and the fiscal year for which the budget is submitted and 
        the 4 fiscal years after that year under--
                    ``(A) laws in effect when the budget is submitted; 
                and
                    ``(B) proposals in the budget to increase revenues,
        and the percentage change (in the case of each category 
        referred to in subparagraphs (A) and (B)) between the current 
        year and the fiscal year for which the budget is submitted and 
        between the current year and each of the 9 fiscal years after 
        the fiscal year for which the budget is submitted.''.
    (c) Section 1105(a)(12) of title 31, United States Code, is amended 
to read as follows:
            ``(12) for each proposal in the budget for legislation that 
        would establish or expand a Government activity or function, a 
        table showing--
                    ``(A) the amount proposed in the budget for 
                appropriation and for expenditure because of the 
                proposal in the fiscal year for which the budget is 
                submitted;
                    ``(B) the estimated appropriation required because 
                of the proposal for each of the 4 fiscal years after 
                that year that the proposal will be in effect; and
                    ``(C) the estimated amount for the same activity or 
                function, if any, in the current fiscal year,
        and, except for detailed budget estimates, the percentage 
        change (in the case of each category referred to in 
        subparagraphs (A), (B), and (C)) between the current year and 
        the fiscal year for which the budget is submitted.''.
    (d) Section 1105(a)(18) of title 31, United States Code, is amended 
by inserting ``new budget authority and'' before ``budget outlays''.
    (e) Section 1105(a) of title 31, United States Code, (as amended by 
sections 412(b) and 521(a)) is further amended by adding at the end the 
following new paragraphs:
            ``(35) a comparison of levels of estimated expenditures and 
        proposed appropriations for each function and subfunction in 
        the current fiscal year and the fiscal year for which the 
        budget is submitted, along with the proposed increase or 
        decrease of spending in percentage terms for each function and 
        subfunction.
            ``(36) a table on sources of growth in total direct 
        spending under current law and as proposed in this budget 
        submission for the budget year and the ensuing 9 fiscal years, 
        which shall include changes in outlays attributable to the 
        following: cost-of-living adjustments; changes in the number of 
program recipients; increases in medical care prices, utilization and 
intensity of medical care; and residual factors.''.
    (f) Section 1109(a) of title 31, United States Code, is amended by 
inserting after the first sentence the following new sentence: ``For 
discretionary spending, these estimates shall assume the levels set 
forth in the discretionary spending limits under section 251(c) of the 
Balanced Budget and Emergency Deficit Control Act of 1985, as adjusted, 
for the appropriate fiscal years (and if no such limits are in effect, 
these estimates shall assume the adjusted levels for the most recent 
fiscal year for which such levels were in effect).''.

SEC. 612. THE CONGRESSIONAL BUDGET.

    Section 301(e) of the Congressional Budget Act of 1974 (as amended 
by section 103) is further amended--
            (1) in paragraph (1), by inserting at the end the 
        following: ``The basis of deliberations in developing such 
        joint resolution shall be the estimated budgetary levels for 
        the preceding fiscal year. Any budgetary levels pending before 
        the committee and the text of the joint resolution shall be 
        accompanied by a document comparing such levels or such text to 
        the estimated levels of the prior fiscal year. Any amendment 
        offered in the committee that changes a budgetary level and is 
        based upon a specific policy assumption for a program, project, 
        or activity shall be accompanied by a document indicating the 
        estimated amount for such program, project, or activity in the 
        current year.''; and
            (2) in paragraph (2), by striking ``and'' at the end of 
        subparagraph (H) (as redesignated), by striking the period and 
        inserting ``; and'' at the end of subparagraph (I) (as 
        redesignated), and by adding at the end the following new 
        subparagraph:
                    ``(J) a comparison of levels for the current fiscal 
                year with proposed spending and revenue levels for the 
                subsequent fiscal years along with the proposed 
                increase or decrease of spending in percentage terms 
                for each function.''.

SEC. 613. CONGRESSIONAL BUDGET OFFICE REPORTS TO COMMITTEES.

    (a) The first sentence of section 202(e)(1) of the Congressional 
Budget Act of 1974 is amended by inserting ``compared to comparable 
levels for the current year'' before the comma at the end of 
subparagraph (A) and before the comma at the end of subparagraph (B).
    (b) Section 202(e)(1) of the Congressional Budget Act of 1974 is 
amended by inserting after the first sentence the following new 
sentence: ``Such report shall also include a table on sources of 
spending growth in total direct spending for the budget year and the 
ensuing 9 fiscal years, which shall include changes in outlays 
attributable to the following: cost-of-living adjustments; changes in 
the number of program recipients; increases in medical care prices, 
utilization and intensity of medical care; and residual factors.''.
    (c) Section 308(a)(1)(B) of the Congressional Budget Act of 1974 is 
amended by inserting ``and shall include a comparison of those levels 
to comparable levels for the current fiscal year'' before ``if timely 
submitted''.

SEC. 614. OUTYEAR ASSUMPTIONS FOR DISCRETIONARY SPENDING.

    For purposes of chapter 11 of title 31 of the United States Code, 
or the Congressional Budget Act of 1974, unless otherwise expressly 
provided, in making budgetary projections for years for which there are 
no discretionary spending limits, the Director of the Office of 
Management and Budget and the Director of the Congressional Budget 
Office shall assume discretionary spending levels at the levels for the 
last fiscal year for which such levels were in effect.

                       Subtitle B--The Byrd Rule

SEC. 621. LIMITATION ON BYRD RULE.

    (a) Protection of Conference Reports.--Section 313 of the 
Congressional Budget Act of 1974 is amended--
            (1) in subsection (c), by striking ``and again upon the 
        submission of a conference report on such a reconciliation bill 
        or resolution,'';
            (2) by striking subsection (d);
            (3) by redesignating subsection (e) as subsection (d); and
            (4) in subsection (e), as redesignated--
                    (A) by striking ``, motion, or conference report'' 
                the first place it appears and inserting ``, or 
                motion''; and
                    (B) by striking ``, motion, or conference report'' 
                the second and third places it appears and inserting 
                ``or motion''.
    (b) Conforming Amendment.--The first sentence of section 312(e) of 
the Congressional Budget Act of 1974 is amended by inserting ``, except 
for section 313,'' after ``Act''.

              Subtitle C--Spending Accountability Lock-Box

SEC. 631. SHORT TITLE.

    This subtitle may be cited as the ``Spending Accountability Lock-
Box Act of 1999''.

SEC. 632. SPENDING ACCOUNTABILITY LOCK-BOX LEDGER.

    (a) Establishment of Ledger.--Title III of the Congressional Budget 
Act of 1974 (as amended by sections 104(c) and 206(a)) is further 
amended by adding after section 317 the following new section:

               ``spending accountability lock-box ledger

    ``Sec. 318. (a) Establishment of Ledger.--The chairman of the 
Committee on the Budget of the House of Representatives and the 
chairman on the Committee on the Budget of the Senate shall each 
maintain a ledger to be known as the `Spending Accountability Lock-Box 
Ledger'. The Ledger shall be divided into entries corresponding to the 
subcommittees of the Committees on Appropriations. Each entry shall 
consist of three components: the `House Lock-Box Balance'; the `Senate 
Lock-Box Balance'; and the `Joint House-Senate Lock-Box Balance'.
    ``(b) Components of Ledger.--Each component in an entry shall 
consist only of amounts credited to it under subsection (c). No entry 
of a negative amount shall be made.
    ``(c) Credit of Amounts to Ledger.--(1) In the House of 
Representatives or the Senate, whenever a Member offers an amendment to 
an appropriation bill to reduce new budget authority in any account, 
that Member may state the portion of such reduction that shall be--
            ``(A) credited to the House or Senate Lock-Box Balance, as 
        applicable; or
            ``(B) used to offset an increase in new budget authority in 
        any other account;
            ``(C) allowed to remain within the applicable section 
        302(b) suballocation.
If no such statement is made, the amount of reduction in new budget 
authority resulting from the amendment shall be credited to the House 
or Senate Lock-Box Balance, as applicable, if the amendment is agreed 
to.
    ``(2)(A) Except as provided by subparagraph (B), the chairmen of 
the Committees on the Budget shall, upon the engrossment of any 
appropriation bill by the House of Representatives and upon the 
engrossment of Senate amendments to that bill, credit to the applicable 
entry balance of that House amounts of new budget authority and outlays 
equal to the net amounts of reductions in new budget authority and in 
outlays resulting from amendments agreed to by that House to that bill.
    ``(B) When computing the net amounts of reductions in new budget 
authority and in outlays resulting from amendments agreed to by the 
House of Representatives or the Senate to an appropriation bill, the 
chairmen of the Committees on the Budget shall only count those 
portions of such amendments agreed to that were so designated by the 
Members offering such amendments as amounts to be credited to the House 
or Senate Lock-Box Balance, as applicable, or that fall within the last 
sentence of paragraph (1).
    ``(3) The chairmen of the Committees on the Budget shall, upon the 
engrossment of Senate amendments to any appropriation bill, credit to 
the applicable Joint House-Senate Lock-Box Balance the amounts of new 
budget authority and outlays equal to--
            ``(A) an amount equal to one-half of the sum of (i) the 
        amount of new budget authority in the House Lock-Box Balance 
        plus (ii) the amount of new budget authority in the Senate 
        Lock-Box Balance for that subcommittee; and
            ``(B) an amount equal to one-half of the sum of (i) the 
        amount of outlays in the House Lock-Box Balance plus (ii) the 
amount of outlays in the Senate Lock-Box Balance for that subcommittee.
    ``(4) Calculation of Lock-Box Savings in Senate.--For purposes of 
calculating under this section the net amounts of reductions in new 
budget authority and in outlays resulting from amendments agreed to by 
the Senate on an appropriation bill, the amendments reported to the 
Senate by its Committee on Appropriations shall be considered to be 
part of the original text of the bill.
    ``(d) Definition.--As used in this section, the term `appropriation 
bill' means any general or special appropriation bill, and any bill or 
joint resolution making supplemental, deficiency, or continuing 
appropriations through the end of a fiscal year.
    ``(e) Tally During House Consideration.--The chairman of the 
Committee on the Budget of the House of Representatives shall maintain 
a running tally of the amendments adopted reflecting increases and 
decreases of budget authority in the bill as reported. This tally shall 
be available to Members in the House of Representatives during 
consideration of any appropriations bill by the House.''.
    (b) Conforming Amendment.--The table of contents set forth in 
section 1(b) of the Congressional Budget and Impoundment Control Act of 
1974 is amended by inserting after the item relating to section 317 the 
following new item:

``Sec. 318. Spending accountability lock-box ledger.''.

SEC. 633. DOWNWARD ADJUSTMENT OF SECTION 302(A) ALLOCATIONS AND SECTION 
              302(B) SUBALLOCATIONS.

    (a) Allocations.--Section 302(a) of the Congressional Budget Act of 
1974 (as amended by section 422) is further amended by adding at the 
end the following new paragraph:
            ``(6) Adjustment of allocations.--Upon the engrossment of 
        Senate amendments to any appropriation bill (as defined in 
        section 318(d)) for a fiscal year, the amounts allocated under 
        paragraph (1) or (2) to the Committee on Appropriations of each 
        House upon the adoption of the most recent joint resolution on 
        the budget for that fiscal year shall be adjusted downward by 
        the amounts credited to the applicable Joint House-Senate Lock-
        Box Balance under section 318(c)(2). The revised levels of new 
        budget authority and outlays shall be submitted to each House 
        by the chairman of the Committee on the Budget of that House 
        and shall be printed in the Congressional Record.''.
    (b) Suballocations.--Section 302(b) of the Congressional Budget Act 
of 1974 is amended by adding at the end the following new sentence: 
``Whenever an adjustment is made under subsection (a)(7) to an 
allocation under that subsection, the Committee on Appropriations of 
each House shall make downward adjustments in the most recent 
suballocations of new budget authority and outlays under this 
subparagraph to the appropriate subcommittees of that committee in the 
total amounts of those adjustments under section 318(c)(2). The revised 
suballocations shall be submitted to each House by the chairman of the 
Committee on Appropriations of that House and shall be printed in the 
Congressional Record.''.

SEC. 634. PERIODIC REPORTING OF LEDGER STATEMENTS.

    Section 308(b)(1) of the Congressional Budget Act of 1974 is 
amended by adding at the end the following new sentence: ``Such reports 
shall also include an up-to-date tabulation of the amounts contained in 
the ledger and each entry established by section 318(a).''.

SEC. 635. DOWNWARD ADJUSTMENT OF DISCRETIONARY SPENDING LIMITS.

    The discretionary spending limits for new budget authority and 
outlays for any fiscal year set forth in section 251(c) of the Balanced 
Budget and Emergency Deficit Control Act of 1985, shall be reduced by 
the amounts set forth in the final regular appropriation bill for that 
fiscal year or joint resolution making continuing appropriations 
through the end of that fiscal year. Those amounts shall be the sums of 
the Joint House-Senate Lock-Box Balances for that fiscal year, as 
calculated under section 302(a)(6) of the Congressional Budget Act of 
1974. That bill or joint resolution shall contain the following 
statement of law: ``As required by section 636 of the Spending 
Accountability Lock-Box Act of 1999, for fiscal year [insert 
appropriate fiscal year] and each outyear, the adjusted discretionary 
spending limit for new budget authority shall be reduced by $ [insert 
appropriate amount of reduction] and the adjusted discretionary limit 
for outlays shall be reduced by $ [insert appropriate amount of 
reduction] for the fiscal year and each outyear.''. Notwithstanding 
section 904(c) of the Congressional Budget Act of 1974, section 306 as 
it applies to this statement shall not apply. This adjustment shall be 
reflected in reports under sections 254(f) and 254(g) of the Balanced 
Budget and Emergency Deficit Control Act of 1985.

              Subtitle D--Automatic Continuing Resolution

SEC. 641. AUTOMATIC CONTINUING RESOLUTION.

    (a) Amendment to Title 31.--Chapter 13 of title 31, United States 
Code, is amended by inserting after section 1310 the following new 
section:
``Sec. 1311. Continuing appropriations
    ``(a)(1) If any regular appropriation bill for a fiscal year does 
not become law prior to the beginning of such fiscal year or a joint 
resolution making continuing appropriations is not in effect, there is 
appropriated, out of any moneys in the Treasury not otherwise 
appropriated, and out of applicable corporate or other revenues, 
receipts, and funds, such sums as may be necessary to continue any 
program, project, or activity for which funds were provided in the 
preceding fiscal year--
            ``(A) in the corresponding regular appropriation Act for 
        such preceding fiscal year; or
            ``(B) if the corresponding regular appropriation bill for 
        such preceding fiscal year did not become law, then in a joint 
        resolution making continuing appropriations for such preceding 
        fiscal year.
    ``(2)(A) Except as provided by subparagraph (B), appropriations and 
funds made available, and authority granted, for a program, project, or 
activity for any fiscal year pursuant to this section shall be at a 
rate of operations not in excess of the rate of operations provided for 
in the regular appropriation Act providing for such program, project, 
or activity for the preceding fiscal year, or in the absence of such an 
Act, the rate of operations provided for such program, project, or 
activity pursuant to a joint resolution making continuing 
appropriations for such preceding fiscal year (but not including 
amounts for such program, project, or activity designated as an 
emergency for that fiscal year before the date of enactment of this 
section).
    ``(B) The applicable rate of operations for a program, project, or 
activity pursuant to this section shall exclude amounts--
            ``(i) for which any adjustment was made under section 
        251(b)(2)(A) or section 252(e) of the Balanced Budget and 
        Emergency Deficit Control Act of 1985 before the date of 
        enactment of this section; or
            ``(ii) for which any adjustment is made under section 
        251(b)(2) (D) or (E) of such Act.
    ``(3) Appropriations and funds made available, and authority 
granted, for any fiscal year pursuant to this section for a program, 
project, or activity shall be available for the period beginning with 
the first day of a lapse in appropriations and ending with the earlier 
of--
            ``(A) the date on which the applicable regular 
        appropriation bill for such fiscal year becomes law (whether or 
        not such law provides for such program, project, or activity) 
        or a continuing resolution making appropriations becomes law, 
        as the case may be, or
            ``(B) the last day of such fiscal year.
    ``(b) An appropriation or funds made available, or authority 
granted, for a program, project, or activity for any fiscal year 
pursuant to this section shall be subject to the terms and conditions 
imposed with respect to the appropriation made or funds made available 
for the preceding fiscal year, or authority granted for such program, 
project, or activity under current law.
    ``(c) Appropriations and funds made available, and authority 
granted, for any program, project, or activity for any fiscal year 
pursuant to this section shall cover all obligations or expenditures 
incurred for such program, project, or activity during the portion of 
such fiscal year for which this section applies to such program, 
project, or activity.
    ``(d) Expenditures made for a program, project, or activity for any 
fiscal year pursuant to this section shall be charged to the applicable 
appropriation, fund, or authorization whenever a regular appropriation 
bill or a joint resolution making continuing appropriations until the 
end of a fiscal year providing for such program, project, or activity 
for such period becomes law.
    ``(e) This section shall not apply to a program, project, or 
activity during a fiscal year if any other provision of law (other than 
an authorization of appropriations)--
            ``(1) makes an appropriation, makes funds available, or 
        grants authority for such program, project, or activity to 
        continue for such period, or
            ``(2) specifically provides that no appropriation shall be 
        made, no funds shall be made available, or no authority 
shall be granted for such program, project, or activity to continue for 
such period; or
    ``(f) For purposes of this section, the term `regular appropriation 
bill' means any annual appropriation bill making appropriations, 
otherwise making funds available, or granting authority, for any of the 
following categories of programs, projects, and activities:
            ``(1) Agriculture, rural development, and related agencies 
        programs.
            ``(2) The Departments of Commerce, Justice, and State, the 
        judiciary, and related agencies.
            ``(3) The Department of Defense.
            ``(4) The government of the District of Columbia and other 
        activities chargeable in whole or in part against the revenues 
        of the District.
            ``(5) The Departments of Labor, Health and Human Services, 
        and Education, and related agencies.
            ``(6) The Department of Housing and Urban Development, and 
        sundry independent agencies, boards, commissions, corporations, 
        and offices.
            ``(7) Energy and water development.
            ``(8) Foreign assistance and related programs.
            ``(9) The Department of the Interior and related agencies.
            ``(10) Military construction.
            ``(11) The Department of Transportation and related 
        agencies.
            ``(12) The Treasury Department, the U.S. Postal Service, 
        the Executive Office of the President, and certain independent 
        agencies.
            ``(13) The legislative branch.''.
    (b) Conforming Amendment.--Section 202(e)(3) of the Congressional 
Budget Act of 1974 is amended by inserting ``and on or before September 
30'' before ``of each year''.
    (c) Chapter Analysis.--The analysis of chapter 13 of title 31, 
United States Code, is amended by inserting after the item relating to 
section 1310 the following new item:

``1311. Continuing appropriations.''.
    (d) Effect of Amendments.--Nothing in the amendments made by this 
section shall be construed to affect Government obligations mandated by 
other law, including obligations with respect to social security, 
medicare, and medicaid.

              TITLE VII--BUDGETING IN AN ERA OF SURPLUSES

SEC. 701. PAYGO REQUIREMENTS AND THE ON-BUDGET SURPLUS.

    (a) Section 252(a) of the Balanced Budget and Emergency Deficit 
Control Act of 1985 is amended to read as follows:
    ``(a) Purpose.--The purpose of this section is to trigger an 
offsetting sequestration in the amount by which any excess of decreases 
in receipts and increases in direct spending over increases in receipts 
and decreases in direct spending, caused by all direct spending and 
receipts legislation enacted prior to October 1, 2002, exceeds 
estimates of the on-budget surplus.''.
    (b) Timing and Calculation of Sequestration.--Section 252(b) of the 
Balanced Budget and Emergency Deficit Control Act of 1985 is amended to 
read as follows:
    ``(b) Sequestration.--
            ``(1) Timing.--Not later than 15 calendar days after the 
        date Congress adjourns to end a session and on the same day as 
        a sequestration (if any) under section 251, there shall be a 
        sequestration to offset an amount equal to--
                    ``(A) any excess of decreases in receipts and 
                increases in direct spending over increases in receipts 
                and decreases in direct spending for legislation 
                enacted prior to October 1, 2002; minus
                    ``(B) the estimated on-budget surplus,
        as calculated under paragraph (2).
            ``(2) Calculation of sequestration.--OMB shall calculate 
        the amount of the sequestration by adding--
                    ``(A) all OMB estimates for the budget year of 
                direct spending and receipts legislation transmitted 
                under subsection (d) for legislation enacted prior to 
                October 1, 2002;
                    ``(B) the estimated amount of savings in direct 
                spending programs applicable to the budget year 
                resulting from the prior year's sequestration under 
                this section, if any, as published in OMB's final 
                sequestration report for that prior year; and
                    ``(C) all OMB estimates for the current year that 
                were not reflected in the final OMB sequestration 
                report for that year; and
        then by subtracting from such sum the OMB estimate for the 
        budget year of the on-budget surplus (if any) as set forth in 
        the OMB sequestration update report.''.
    (c) Preview Reports.--Section 254(c)(3) of the Balanced Budget and 
Emergency Deficit Control Act of 1985 is amended by redesignating 
subparagraph (C) as subparagraph (D) and by adding after subparagraph 
(B) the following new subparagraph:
                    ``(C) The estimated on-budget surplus for the 
                budget year (if any) shall exclude all estimates of 
                direct spending and receipts legislation for such year 
                enacted after the date of enactment of this 
                subparagraph (as estimated by OMB when such legislation 
                was originally enacted). Except as provided by the 
preceding sentence, the following assumptions shall apply to the 
calculation of such estimated surplus: Budgetary resources other than 
unobligated balances shall be at the level provided for the budget year 
in a regular appropriation Act or a joint resolution (other than 
pursuant to section 1311 of title 31, United States Code) continuing 
appropriations through the end of the budget year, but if for any 
account a full-year appropriation has not yet been enacted, budgetary 
resources other than unobligated balances shall be at the level 
available in the current year, adjusted using the assumptions set forth 
in section 257(c).''.
    (d) Final Sequestration Report.--Section 254(f)(3) of the Balanced 
Budget and Emergency Deficit Control Act of 1985 is amended by adding 
at the end the following new sentence: ``In calculating the estimated 
on-budget surplus pursuant to section 252(b)(2), notwithstanding 
section 254(j), OMB shall use economic and technical assumptions that 
are up-to-date as of the date of issuance of the sequestration preview 
reports.''.
    (e) Definition of On-Budget Surplus.--Section 250(c) of the 
Balanced Budget and Emergency Deficit Control Act of 1985 is amended by 
adding at the end the following new paragraph:
            ``(20) The term `on-budget surplus' means, with respect to 
        a fiscal year, the amount by which receipts exceed outlays for 
        all spending and receipt accounts of the United States 
        Government that are designated as on-budget. Such term does not 
        include outlays and receipts of the Federal Old-Age and 
        Survivors Insurance Trust Fund, the Federal Disability 
        Insurance Trust Fund, or any other off-budget entity.''.
    (f) Expedited Reconciliation Process.--Section 258C of the Balanced 
Budget and Emergency Deficit Control Act of 1985 is amended as follows:
            (1) The side heading of subsection (a) is amended by 
        inserting ``or in the House of Representatives'' after 
        ``Senate''.
            (2) In paragraphs (1), (2), (3), and (4) of subsection (a), 
        insert ``or House'' after ``Senate'' each place it appears.
            (3) In subsection (a)(7), strike ``For'' and insert ``In 
        the Senate, for''.
            (4) In subsection (b)(1), insert ``or House'' after 
        ``Senate''.
            (5) In the side heading of subsection (b)(4), insert 
        ``other'' after ``the''.
            (6) In subsection (b)(4), strike ``in the Senate from the 
        House'' and insert ``in the Senate or House of Representatives 
        from the other House'', strike ``Senate'' the second place it 
        appears and insert ``Senate or House of Representatives, as the 
        case may be,'', and strike ``Senate'' the third place it 
        appears and insert ``in the applicable House''.

       TITLE VIII--SOCIAL SECURITY SURPLUS PROTECTION ACT OF 1999

SEC. 801. SHORT TITLE.

    This title may be cited as the ``Social Security Surplus Protection 
Act of 1999''.

SEC. 802. SEQUESTER TO PROTECT THE SOCIAL SECURITY SURPLUS.

    Section 251 of the Balanced Budget and Emergency Deficit Control 
Act of 1985 (2 U.S.C. 901) is amended by adding at the end the 
following:
    ``(d) Social Security Surplus Protection Sequester.--
            ``(1) In general.--Within 15 calendar days after Congress 
        adjourns to end a session and on the same day as a 
        sequestration (if any) under subsection (a), section 252, and 
        section 253, there shall be a sequestration to eliminate any 
        on-budget deficit (excluding any surplus in the Social Security 
        Trust Funds).
            ``(2) Eliminating deficit.--The sequester required by this 
        subsection shall be applied in accordance with the procedures 
        set forth in subsection (a). The on-budget deficit shall not be 
        subject to adjustment for any purpose.''.
                                 <all>
```