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[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 15 Introduced in Senate (IS)]

110th CONGRESS
  1st Session
                                 S. 15

  To establish a new budget process to create a comprehensive plan to 
rein in spending, reduce the deficit, and regain control of the Federal 
                            budget process.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                              May 22, 2007

   Mr. Gregg (for himself, Mr. McConnell, Mr. Kyl, Mr. Domenici, Mr. 
 Allard, Mr. Enzi, Mr. Bunning, Mr. Crapo, Mr. Ensign, Mr. Cornyn, Mr. 
  Graham, Mr. Sessions, Mr. Alexander, Mr. Brownback, Mr. Craig, Mr. 
   Sununu, Mr. Martinez, Mr. Thomas, Mr. Vitter, Mr. Chambliss, Mr. 
Isakson, Mrs. Dole, Mr. DeMint, Mr. Voinovich, Mr. Thune, and Mr. Lott) 
introduced the following bill; which was read twice and referred to the 
                        Committee on the Budget

_______________________________________________________________________

                                 A BILL

 
  To establish a new budget process to create a comprehensive plan to 
rein in spending, reduce the deficit, and regain control of the Federal 
                            budget process.

    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 ``Stop Over Spending 
Act of 2007''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title: table of contents.
Sec. 2. Purposes.
Sec. 3. Severability.
         TITLE I--SECOND LOOK AT WASTEFUL SPENDING ACT OF 2007

Sec. 101. Short title.
Sec. 102. Enhanced rescission authority.
                      TITLE II--DEFICIT REDUCTION

       Subtitle A--Definitions, Administration, and Sequestration

Sec. 201. Definitions.
Sec. 202. Administration, reconciliation, and effect of sequestration.
Sec. 203. GAO compliance report.
               Subtitle B--Discretionary Spending Limits

Sec. 211. Discretionary Sequestration Reports.
Sec. 212. Limits.
             Subtitle C--Maximum Deficit Amount Limitation

Sec. 221. Maximum deficit amount.
Sec. 222. Reporting of excess deficits.
Sec. 223. Congressional response to OMB and CBO Reconciliation Report.
Sec. 224. Revised estimates and final maximum deficit amount 
                            sequestration reports.
Sec. 225. Maximum deficit amount-presidential order.
Sec. 226. Congressional response to low growth.
Sec. 227. Exemptions from sequestration.
Sec. 228. Submission of President's budget; maximum deficit amount may 
                            not be exceeded.
             TITLE III--BIENNIAL BUDGET AND APPROPRIATIONS

Sec. 301. Revision of timetable.
Sec. 302. Amendments to the Congressional Budget and Impoundment 
                            Control Act of 1974.
Sec. 303. Amendments to title 31, United States Code.
Sec. 304. Two-year appropriations; title and style of appropriations 
                            Acts.
Sec. 305. Multiyear authorizations.
Sec. 306. Government plans on a biennial basis.
Sec. 307. Biennial appropriation bills.
Sec. 308. Report on changes in law.
Sec. 309. Effective date.
                         TITLE IV--COMMISSIONS

        Subtitle A--National Commission on Entitlement Solvency

Sec. 401. Definitions.
Sec. 402. Establishment of Commission.
Sec. 403. Expedited consideration of Commission recommendations.
 Subtitle B--Commission on Congressional Budgetary Accountability and 
                       Review of Federal Agencies

Sec. 411. Definitions.
Sec. 412. Establishment of Commission.
Sec. 413. Duties of the Commission.
Sec. 414. Powers of the Commission.
Sec. 415. Commission personnel matters.
Sec. 416. Expedited Consideration of reform proposals.
Sec. 417. Termination of the Commission.
Sec. 418. Authorization of appropriations.
                    TITLE V--BUDGET PROCESS REFORMS

Sec. 501. Definitions.
Sec. 502. Annual Concurrent Resolution on the Budget.
Sec. 503. Committee allocations.
Sec. 504. Budget resolution adoption.
Sec. 505. Procedure in the Senate for budget resolutions.
Sec. 506. Budget projections.
Sec. 507. Reconciliation.
Sec. 508. Budgeting levels.
Sec. 509. Determinations and points of order.
Sec. 510. Extraneous matter in reconciliation legislation.
Sec. 511. Adjustments.
Sec. 512. Direct spending limitation.
Sec. 513. Point of order against legislation that raises income tax 
                            rates.
Sec. 514. Circuit breaker to protect Social Security.
Sec. 515. Limitation on long-term spending proposals.
Sec. 516. Avoiding paygo point of order.
Sec. 517. Pay-as-you-go point of order in the Senate.
Sec. 518. Appropriations requests of the President.
Sec. 519. Budget baseline.

SEC. 2. PURPOSES.

    The purposes of this Act are to--
            (1) enable the President and Congress to rescind wasteful 
        spending in an expedited manner;
            (2) effectively balance the budget by 2012;
            (3) reinstate statutory discretionary caps;
            (4) reduce the practice of using spending designated as an 
        ``emergency'' as a mechanism to circumvent spending caps;
            (5) establish targets for the deficit as its share of the 
        United States economy, specifically as a percentage of Gross 
        Domestic Product;
            (6) require automatic spending reduction reconciliation 
        directives to achieve annual deficit targets;
            (7) put in place automatic sequester procedures to reduce 
        discretionary and mandatory spending when either statutory caps 
        have been exceeded or deficit targets have not been met;
            (8) require Congress to act upon legislation to ensure the 
        solvency of the Social Security and Medicare Programs;
            (9) require Congress to act upon legislation to identify 
        and eliminate waste and duplication in Federal programs;
            (10) establish biennial budgeting;
            (11) strengthen and improve the Congressional budget 
        resolution and reconciliation process; and
            (12) provide short-term and long-term solutions to ensure 
        the financial security of our Nation so that our children and 
        grandchildren will not be saddled with insurmountable debt.

SEC. 3. SEVERABILITY.

    If any provision of this Act, an amendment made by this Act, or the 
application of such provision or amendment to any person or 
circumstance is held to be unconstitutional, the remainder of this Act, 
the amendments made by this Act, and the application of the provisions 
of such to any person or circumstance shall not be affected thereby.

         TITLE I--SECOND LOOK AT WASTEFUL SPENDING ACT OF 2007

SEC. 101. SHORT TITLE.

    This title may be cited as the ``Second Look at Wasteful Spending 
Act of 2007''.

SEC. 102. ENHANCED RESCISSION AUTHORITY.

    (a) In General.--Title X of the Congressional Budget and 
Impoundment Control Act of 1974 (2 U.S.C. 621 et seq.) is amended by 
striking part C and inserting the following:

                ``PART C--ENHANCED RESCISSION AUTHORITY

``SEC. 1021. EXPEDITED CONSIDERATION OF CERTAIN PROPOSED RESCISSIONS.

    ``(a) Proposed Rescissions.--The President may send a special 
message, at the time and in the manner provided in subsection (b), that 
proposes to rescind dollar amounts of discretionary budget authority, 
items of direct spending, and targeted tax benefits.
    ``(b) Transmittal of Special Message.--
            ``(1) Special message.--
                    ``(A) In general.--
                            ``(i) Four messages.--The President may 
                        transmit to Congress not to exceed 4 special 
                        messages per calendar year, proposing to 
                        rescind dollar amounts of discretionary budget 
                        authority, items of direct spending, and 
                        targeted tax benefits.
                            ``(ii) Timing.--Subject to clause (iii), 
                        special messages may be transmitted under 
                        clause (i)--
                                    ``(I) with the President's budget 
                                submitted pursuant to section 1105 of 
                                title 31, United States Code, for any 
                                proposed rescission enacted after the 
                                date the President submitted the 
                                preceding budget; and
                                    ``(II) 3 other times as determined 
                                by the President, except that the 
                                message shall be submitted within the 
                                30 calendar day period (excluding 
                                Saturdays, Sundays, and legal holidays) 
                                commencing on the day after the date of 
                                enactment of any dollar amount of 
                                discretionary budget authority, item of 
                                direct spending, or targeted tax 
                                benefit the President proposes to 
                                rescind pursuant to this section.
                            ``(iii) Limitations.--
                                    ``(I) Resubmittal rejected.--If 
                                Congress rejects a bill introduced 
                                under this part or if an item is 
                                stricken under subsection (d)(2) from a 
                                bill that is enacted into law, the 
                                President may not resubmit that item or 
                                any of the dollar amounts of 
                                discretionary budget authority, items 
                                of direct spending, or targeted tax 
                                benefits in that bill under this part, 
                                or part B with respect to dollar 
                                amounts of discretionary budget 
                                authority.
                                    ``(II) Resubmittal after sine 
                                die.--If Congress does not complete 
                                action on a bill introduced under this 
                                part because Congress adjourns sine 
                                die, the President may resubmit some or 
                                all of the dollar amounts of 
                                discretionary budget authority, items 
                                of direct spending, and targeted tax 
                                benefits in that bill in not more than 
                                1 subsequent special message under this 
                                part, or part B with respect to dollar 
                                amounts of discretionary budget 
                                authority.
                    ``(B) Contents of special message.--Each special 
                message shall specify, with respect to the dollar 
                amount of discretionary budget authority, item of 
                direct spending, or targeted tax benefit proposed to be 
                rescinded--
                            ``(i) the dollar amount of discretionary 
                        budget authority available and proposed for 
                        rescission from accounts, departments, or 
                        establishments of the Government and the dollar 
                        amount of the reduction in outlays that would 
                        result from the enactment of such rescission of 
                        discretionary budget authority for the time 
                        periods set forth in clause (iii);
                            ``(ii) the specific items of direct 
                        spending and targeted tax benefits proposed for 
                        rescission and the dollar amounts of the 
                        reductions in budget authority and outlays or 
                        increases in receipts that would result from 
                        enactment of such rescission for the time 
                        periods set forth in clause (iii);
                            ``(iii) the budgetary effects of proposals 
                        for rescission, estimated as of the date the 
                        President submits the special message, relative 
                        to the most recent levels calculated consistent 
                        with the methodology described in section 257 
                        of the Balanced Budget and Emergency Deficit 
                        Control Act of 1985 and included with a budget 
                        submission under section 1105(a) of title 31, 
                        United States Code, for the time periods of--
                                    ``(I) the fiscal year in which the 
                                proposal is submitted; and
                                    ``(II) each of the 10 following 
                                fiscal years beginning with the fiscal 
                                year after the fiscal year in which the 
                                proposal is submitted;
                            ``(iv) any account, department, or 
                        establishment of the Government to which such 
                        dollar amount of discretionary budget authority 
                        or item of direct spending is available for 
                        obligation, and the specific project or 
                        governmental functions involved;
                            ``(v) the reasons why such dollar amount of 
                        discretionary budget authority or item of 
                        direct spending or targeted tax benefit should 
                        be rescinded;
                            ``(vi) the estimated fiscal and economic 
                        impacts, of the proposed rescission;
                            ``(vii) to the maximum extent practicable, 
                        all facts, circumstances, and considerations 
                        relating to or bearing upon the proposed 
                        rescission and the decision to effect the 
                        proposed rescission, and the estimated effect 
                        of the proposed rescission upon the objects, 
                        purposes, and programs for which the budget 
                        authority or items of direct spending or 
                        targeted tax benefits are provided; and
                            ``(viii) a draft bill that, if enacted, 
                        would rescind the budget authority, items of 
                        direct spending and targeted tax benefits 
                        proposed to be rescinded in that special 
                        message.
            ``(2) Analysis by congressional budget office and joint 
        committee on taxation.--
                    ``(A) In general.--Upon the receipt of a special 
                message under this part proposing to rescind dollar 
                amounts of discretionary budget authority, items of 
                direct spending, and targeted tax benefits--
                            ``(i) the Director of the Congressional 
                        Budget Office shall prepare an estimate of the 
                        savings in budget authority or outlays 
                        resulting from such proposed rescission and 
                        shall include in its estimate, an analysis 
                        prepared by the Joint Committee on Taxation 
                        related to targeted tax benefits; and
                            ``(ii) the Director of the Joint Committee 
                        on Taxation shall prepare an estimate and 
                        forward such estimate to the Congressional 
                        Budget Office, of the savings from repeal of 
                        targeted tax benefits.
                    ``(B) Methodology.--The estimates required by 
                subparagraph (A) shall be made relative to the most 
                recent levels calculated consistent with the 
                methodology used to calculate a baseline under section 
                257 of the Balanced Budget and Emergency Control Act of 
                1985 and included with a budget submission under 
                section 1105(a) of title 31, United States Code, and 
                transmitted to the chairmen of the Committees on the 
                Budget of the House of Representatives and Senate.
            ``(3) Enactment of rescission bill.--
                    ``(A) Deficit reduction.--Amounts of budget 
                authority or items of direct spending or targeted tax 
                benefit that are rescinded pursuant to enactment of a 
                bill as provided under this part shall be dedicated 
                only to deficit reduction and shall not be used as an 
                offset for other spending increases or revenue 
                reductions.
                    ``(B) Adjustment of budget targets.--Not later than 
                5 days after the date of enactment of a rescission bill 
                as provided under this part, the chairs of the 
                Committees on the Budget of the Senate and the House of 
                Representatives shall revise spending and revenue 
                levels under section 311(a) of the Congressional Budget 
                Act of 1974 and adjust the committee allocations under 
                section 302(a) of the Congressional Budget Act of 1974 
                or any other adjustments as may be appropriate to 
                reflect the rescission. The adjustments shall reflect 
                the budgetary effects of such rescissions as estimated 
                by the President pursuant to paragraph (1)(B)(iii). The 
                appropriate committees shall report revised allocations 
                pursuant to section 302(b) of the Congressional Budget 
                Act of 1974. Notwithstanding any other provision of 
                law, the revised allocations and aggregates shall be 
                considered to have been made under a concurrent 
                resolution on the budget agreed to under the 
                Congressional Budget Act of 1974 and shall be enforced 
                under the procedures of that Act.
                    ``(C) Adjustments to caps.--After enactment of a 
                rescission bill as provided under this part, the 
                President shall revise applicable limits under the 
                Second Look at Wasteful Spending Act of 2007, as 
                appropriate.
    ``(c) Procedures for Expedited Consideration.--
            ``(1) In general.--
                    ``(A) Introduction.--Before the close of the second 
                day of session of the Senate and the House of 
                Representatives, respectively, after the date of 
                receipt of a special message transmitted to Congress 
                under subsection (b), the majority leader of each 
                House, for himself, or minority leader of each House, 
                for himself, or a Member of that House designated by 
                that majority leader or minority leader shall introduce 
                (by request) the President's draft bill to rescind the 
                amounts of budget authority or items of direct spending 
                or targeted tax benefits, as specified in the special 
                message and the President's draft bill. If the bill is 
                not introduced as provided in the preceding sentence in 
                either House, then, on the third day of session of that 
                House after the date of receipt of that special 
                message, any Member of that House may introduce the 
                bill.
                    ``(B) Referral and reporting.--
                            ``(i) One committee.--The bill shall be 
                        referred by the presiding officer to the 
                        appropriate committee. The committee shall 
                        report the bill without any revision and with a 
                        favorable, an unfavorable, or without 
                        recommendation, not later than the fifth day of 
                        session of that House after the date of 
                        introduction of the bill in that House. If the 
                        committee fails to report the bill within that 
                        period, the committee shall be automatically 
                        discharged from consideration of the bill, and 
                        the bill shall be placed on the appropriate 
                        calendar.
                            ``(ii) Multiple committees.--
                                    ``(I) Referrals.--If a bill 
                                contains provisions in the jurisdiction 
                                of more than 1 committee, the bill 
                                shall be jointly referred to the 
                                committees of jurisdiction and the 
                                Committee on the Budget.
                                    ``(II) Views of committee.--Any 
                                committee, other than the Committee on 
                                the Budget, to which a bill is referred 
                                under this clause may submit a 
                                favorable, an unfavorable 
                                recommendation, without recommendation 
                                with respect to the bill to the 
                                Committee on the Budget prior to the 
                                reporting or discharge of the bill.
                                    ``(III) Reporting.--The Committee 
                                on the Budget shall report the bill not 
                                later than the fifth day of session of 
                                that House after the date of 
                                introduction of the bill in that House, 
                                without any revision and with a 
                                favorable or unfavorable 
                                recommendation, or with no 
                                recommendation, together with the 
                                recommendations of any committee to 
                                which the bill has been referred.
                                    ``(IV) Discharge.--If the Committee 
                                on the Budget fails to report the bill 
                                within that period, the committee shall 
                                be automatically discharged from 
                                consideration of the bill, and the bill 
                                shall be placed on the appropriate 
                                calendar.
                    ``(C) Final passage.--A vote on final passage of 
                the bill shall be taken in the Senate and the House of 
                Representatives on or before the close of the 10th day 
                of session of that House after the date of the 
                introduction of the bill in that House. If the bill is 
                passed, the Clerk of the House of Representatives shall 
                cause the bill to be transmitted to the Senate before 
                the close of the next day of session of the House.
            ``(2) Consideration in the house of representatives.--
                    ``(A) Motion to proceed to consideration.--A motion 
                in the House of Representatives to proceed to the 
                consideration of a bill under this subsection shall be 
                highly privileged and not debatable. An amendment to 
                the motion shall not be in order, nor shall it be in 
                order to move to reconsider the vote by which the 
                motion is agreed to or disagreed to.
                    ``(B) Limits on debate.--Debate in the House of 
                Representatives on a bill under this subsection shall 
                not exceed 4 hours, which shall be divided equally 
                between those favoring and those opposing the bill. A 
                motion further to limit debate shall not be debatable. 
                It shall not be in order to move to recommit a bill 
                under this subsection or to move to reconsider the vote 
                by which the bill is agreed to or disagreed to.
                    ``(C) Appeals.--Appeals from decisions of the chair 
                relating to the application of the Rules of the House 
                of Representatives to the procedure relating to a bill 
                under this part shall be decided without debate.
                    ``(D) Application of house rules.--Except to the 
                extent specifically provided in this part, 
                consideration of a bill under this part shall be 
                governed by the Rules of the House of Representatives. 
                It shall not be in order in the House of 
                Representatives to consider any bill introduced 
                pursuant to the provisions of this part under a 
                suspension of the rules or under a special rule.
            ``(3) Consideration in the senate.--
                    ``(A) Motion to proceed to consideration.--A motion 
                to proceed to the consideration of a bill under this 
                subsection in the Senate shall not be debatable. A 
                motion to proceed to consideration of the bill may be 
                made even though a previous motion to the same effect 
                has been disagreed to. It shall not be in order to move 
                to reconsider the vote by which the motion to proceed 
                is agreed to or disagreed to.
                    ``(B) Limits on debate.--Debate in the Senate on a 
                bill under this subsection, and all debatable motions 
                and appeals in connection therewith, shall not exceed a 
                total of 10 hours, equally divided and controlled in 
                the usual form.
                    ``(C) Debatable motions and appeals.--Debate in the 
                Senate on any debatable motion or appeal in connection 
                with a bill under this subsection shall be limited to 
                not more than 1 hour from the time allotted for debate, 
                to be equally divided and controlled in the usual form.
                    ``(D) Motion to limit debate.--A motion in the 
                Senate to further limit debate on a bill under this 
                subsection is not debatable.
                    ``(E) Motion to recommit.--A motion to recommit a 
                bill under this subsection is not in order.
                    ``(F) Consideration of the house bill.--
                            ``(i) In general.--If the Senate has 
                        received the House companion bill to the bill 
                        introduced in the Senate prior to the vote 
                        required under paragraph (1)(C), then the 
                        Senate shall consider, and the vote under 
                        paragraph (1)(C) shall occur on, the House 
                        companion bill.
                            ``(ii) Procedure after vote on senate 
                        bill.--If the Senate votes, pursuant to 
                        paragraph (1)(C), on the bill introduced in the 
                        Senate, the Senate bill shall be held pending 
                        receipt of the House message on the bill. Upon 
                        receipt of the House companion bill, the House 
                        bill shall be deemed to be considered, read for 
                        the third time, and the vote on passage of the 
                        Senate bill shall be considered to be the vote 
                        on the bill received from the House.
            ``(4) Conference.--
                    ``(A) Proceeding to conference.--If, after a bill 
                is agreed to in the Senate or House of Representatives, 
                the bill has been amended, the bill shall be deemed to 
                be at a stage of disagreement and motions to proceed to 
                conference are deemed to be agreed to. There shall be 
                no motions to instruct. The Senate and the House of 
                Representatives shall appoint conferees not later than 
                1 day of session after the vote of the second House 
                under paragraph (1)(C). Debate on any debatable motion 
                in relation to the conference report shall be limited 
                to 1 hour to be equally divided between and controlled 
                by the mover and manager of a bill, or their designees.
                    ``(B) Period of consideration.--A conference report 
                on a bill considered under this section shall be 
                reported out not later than 3 days of session after the 
                vote of the second House under paragraph (1)(C). If the 
                2 Houses are unable to agree in conference, the 
                committee on conference shall report out the text of 
                the President's original bill.
                    ``(C) Scope of conference.--The matter committed to 
                conference for purposes of scope of conference shall be 
                limited to the matter stricken from the text of the 
                bills passed by the Senate and the House of 
                Representatives.
                    ``(D) Procedure.--Debate on a conference report on 
                any bill considered under this section shall be limited 
                to 2 hours equally divided between the manager of the 
                conference report and the minority leader, or his 
                designee.
                    ``(E) Final passage.--A vote on final passage of 
                the conference report shall be taken in the Senate and 
                the House of Representatives on or before the close of 
                the second day of session of that House after the date 
                the conference report is submitted in that House. If 
                the conference report is passed, the Secretary of the 
                Senate or the Clerk of the House of Representatives, as 
                the case may be, shall cause the conference report to 
                be transmitted to the other House before the close of 
                the next day of session of that House.
                    ``(F) Action of second house.--
                            ``(i) In general.--If the Senate has 
                        received from the House, the conference report 
                        in relation to the special message from the 
                        President, prior to the vote required under 
                        subparagraph (E), then the Senate shall 
                        consider, and the vote under subparagraph (E) 
                        shall occur on the House conference report.
                            ``(ii) Procedure after vote on senate 
                        conference report.--If the Senate votes, 
                        pursuant to subparagraph (E), on the conference 
                        report in relation to the special message from 
                        the President, then immediately following that 
                        vote, or upon receipt of the House conference 
                        report, the House conference report shall be 
                        deemed to be considered, read the third time, 
                        and the vote on passage of the Senate 
                        conference report shall be considered to be the 
                        vote on the conference report received from the 
                        House.
    ``(d) Amendments and Divisions Prohibited.--
            ``(1) In general.--Except as provided in paragraph (2), no 
        amendment to a bill considered under this section shall be in 
        order in either the Senate or the House of Representatives.
            ``(2) Motion to strike.--
                    ``(A) Senate.--During consideration of a bill in 
                the Senate, any Member of the Senate may move to strike 
                any proposed rescission of a dollar amount of 
                discretionary budget authority, an item of direct 
                spending, or a targeted tax benefit if supported by 11 
                other Members.
                    ``(B) House.--During consideration of a bill in the 
                House of Representatives, any Member of the House of 
                Representatives may move to strike any proposed 
                rescission of a dollar amount of discretionary budget 
                authority, an item of direct spending, or a targeted 
                tax benefit if supported by 49 other Members.
            ``(3) No division.--It shall not be in order to demand a 
        division of any motions to strike in the Senate, or the 
        division of the question in the House of Representatives (or in 
        a Committee of the Whole).
            ``(4) No suspension.--No motion to suspend the application 
        of this subsection shall be in order in the Senate or in the 
        House of Representatives, nor shall it be in order in the House 
        of Representatives to suspend the application of this 
        subsection by unanimous consent.
    ``(e) Temporary Presidential Authority To Withhold.--
            ``(1) Availability.--The President may not withhold any 
        dollar amount of discretionary budget authority until the 
        President transmits and Congress receives a special message 
        pursuant to subsection (b). Upon receipt by Congress of a 
        special message pursuant to subsection (b), the President may 
        direct that any dollar amount of discretionary budget authority 
        proposed to be rescinded in that special message shall be 
        withheld from obligation for a period not to exceed 45 calendar 
        days from the date of receipt by Congress.
            ``(2) Early availability.--The President may make any 
        dollar amount of discretionary budget authority withheld from 
        obligation pursuant to paragraph (1) available at an earlier 
        time if the President determines that continued withholding 
        would not further the purposes of this Act.
    ``(f) Temporary Presidential Authority To Suspend.--
            ``(1) Suspend.--
                    ``(A) In general.--The President may not suspend 
                the execution of any item of direct spending or 
                targeted tax benefit until the President transmits and 
                Congress receives a special message pursuant to 
                subsection (b). Upon receipt by Congress of a special 
                message, the President may suspend the execution of any 
                item of direct spending or targeted tax benefit 
                proposed to be rescinded in that message for a period 
                not to exceed 45 calendar days from the date of receipt 
                by Congress.
                    ``(B) Limitation on 45-day period.--The 45-day 
                period described in subparagraph (A) shall be reduced 
                by the number of days contained in the period beginning 
                on the effective date of the item of direct spending or 
                targeted tax benefit; and ending on the date that is 
                the later of--
                            ``(i) the effective date of the item of 
                        direct spending or targeted benefit; or
                            ``(ii) the date that Congress receives the 
                        special message.
                    ``(C) Clarification.--Notwithstanding subparagraph 
                (B), in the case of an item of direct spending or 
                targeted tax benefit with an effective date within 45 
                days after the date of enactment, the beginning date of 
                the period calculated under subparagraph (B) shall be 
                the date that is 45 days after the date of enactment 
                and the ending date shall be the date that is the later 
                of--
                            ``(i) the date that is 45 days after 
                        enactment; or
                            ``(ii) the date that Congress receives the 
                        special message.
            ``(2) Early availability.--The President may terminate the 
        suspension of any item of direct spending or targeted tax 
        benefit suspended pursuant to paragraph (1) at an earlier time 
        if the President determines that continuation of the suspension 
        would not further the purposes of this Act.
    ``(g) Definitions.--In this part:
            ``(1) Appropriation law.--The term `appropriation law' 
        means any general or special appropriation Act, and any Act or 
        joint resolution making supplemental, deficiency, or continuing 
        appropriations.
            ``(2) Calendar day.--The term `calendar day' means a 
        standard 24-hour period beginning at midnight.
            ``(3) Days of session.--The term `days of session' means 
        only those days on which both Houses of Congress are in 
        session.
            ``(4) Dollar amount of discretionary budget authority.--The 
        term `dollar amount of discretionary budget authority' means 
        the dollar amount of budget authority and obligation 
        limitations--
                    ``(A) specified in an appropriation law, or the 
                dollar amount of budget authority required to be 
                allocated by a specific proviso in an appropriation law 
                for which a specific dollar figure was not included;
                    ``(B) represented separately in any table, chart, 
                or explanatory text included in the statement of 
                managers or the governing committee report accompanying 
                such law;
                    ``(C) required to be allocated for a specific 
                program, project, or activity in a law (other than an 
                appropriation law) that mandates obligations from or 
                within accounts, programs, projects, or activities for 
                which budget authority or an obligation limitation is 
                provided in an appropriation law;
                    ``(D) represented by the product of the estimated 
                procurement cost and the total quantity of items 
                specified in an appropriation law or included in the 
                statement of managers or the governing committee report 
                accompanying such law; or
                    ``(E) represented by the product of the estimated 
                procurement cost and the total quantity of items 
                required to be provided in a law (other than an 
                appropriation law) that mandates obligations from 
                accounts, programs, projects, or activities for which 
                dollar amount of discretionary budget authority or an 
                obligation limitation is provided in an appropriation 
                law.
            ``(5) Rescind or rescission.--The term `rescind' or 
        `rescission' means--
                    ``(A) in the case of a dollar amount of 
                discretionary budget authority, to reduce or repeal a 
                provision of law to prevent that budget authority or 
                obligation limitation from having legal force or 
                effect; and
                    ``(B) in the case of direct spending or targeted 
                tax benefit, to repeal a provision of law in order to 
                prevent the specific legal obligation of the United 
                States from having legal force or effect.
            ``(6) Direct spending.--The term `direct spending' means 
        budget authority provided by law (other than an appropriation 
        law), mandatory spending provided in appropriation Acts, and 
        entitlement authority.
            ``(7) Item of direct spending.--The term `item of direct 
        spending' means any specific provision of law enacted after the 
        effective date of the Second Look at Wasteful Spending Act of 
        2007 that is estimated to result in an increase in budget 
        authority or outlays for direct spending relative to the most 
        recent levels calculated consistent with the methodology 
        described in section 257 of the Balanced Budget and Emergency 
        Deficit Control Act of 1985 and included with a budget 
        submission under section 1105(a) of title 31, United States 
        Code, and, with respect to estimates made after that budget 
        submission that are not included with it, estimates consistent 
        with the economic and technical assumptions underlying the most 
        recently submitted President's budget.
            ``(8) Suspend the execution.--The term `suspend the 
        execution' means, with respect to an item of direct spending or 
        a targeted tax benefit, to stop the carrying into effect of the 
        specific provision of law that provides such benefit.
            ``(9) Targeted tax benefit.--The term `targeted tax 
        benefit' means--
                    ``(A) any revenue provision that has the practical 
                effect of providing more favorable tax treatment to a 
                particular taxpayer or limited group of taxpayers when 
                compared with other similarly situated taxpayers; or
                    ``(B) any Federal tax provision which provides 1 
                beneficiary temporary or permanent transition relief 
                from a change to the Internal Revenue Code of 1986.''.
    (b) Exercise of Rulemaking Powers.--Section 904 of the 
Congressional Budget Act of 1974 (2 U.S.C. 621 note) is amended--
            (1) in subsection (a), by striking ``and 1017'' and 
        inserting ``1017, and 1021''; and
            (2) in subsection (d), by striking ``section 1017'' and 
        inserting ``sections 1017 and 1021''.
    (c) Clerical Amendments.--
            (1) Short title.--Section 1(a) of the Congressional Budget 
        and Impoundment Control Act of 1974 is amended by--
                    (A) striking ``Parts A and B'' before ``title X'' 
                and inserting ``Parts A, B, and C''; and
                    (B) striking the last sentence and inserting at the 
                end the following new sentence: ``Part C of title X 
                also may be cited as the `Second Look at Wasteful 
                Spending Act of 2007'.''.
            (2) Table of contents.--The table of contents set forth in 
        section 1(b) of the Congressional Budget and Impoundment 
        Control Act of 1974 is amended by deleting the contents for 
        part C of title X and inserting the following:

                ``Part C--Enhanced Rescission Authority

``Sec. 1021. Expedited consideration of certain proposed 
                            rescissions.''.
    (d) Severability.--If any provision of this title or the amendments 
made by it is held to be unconstitutional, the remainder of this title 
and the amendments made by it shall not be affected by the holding.
    (e) Effective Date and Expiration.--
            (1) Effective date.--The amendments made by this title 
        shall--
                    (A) take effect on the date of enactment of this 
                title; and
                    (B) apply to any dollar amount of discretionary 
                budget authority, item of direct spending, or targeted 
                tax benefit provided in an Act enacted on or after the 
                date of enactment of this title.
            (2) Expiration.--The amendments made by this title shall 
        expire on December 31, 2010.

                      TITLE II--DEFICIT REDUCTION

       Subtitle A--Definitions, Administration, and Sequestration

SEC. 201. DEFINITIONS.

    In this title:
            (1) Account.--The term ``account'' means--
                    (A) for discretionary budget authority, an item for 
                which appropriations are made in any appropriation Act; 
                and
                    (B) for items not provided for in appropriation 
                Acts, direct spending and outlays therefrom identified 
                in the program and finance schedules contained in the 
                appendix to the Budget of the United States for the 
                current year.
            (2) Breach.--The term ``breach'' means, for any fiscal 
        year, the amount by which discretionary budget authority 
        enacted for that year exceeds the spending limit for budget 
        authority for that year.
            (3) Budget authority; new budget authority; and outlays.--
        The terms ``budget authority'', ``new budget authority'', and 
        ``outlays'' have the meanings given to such terms in section 3 
        of the Congressional Budget and Impoundment Control Act of 1974 
        (2 U.S.C. 622).
            (4) Budget year.--The term ``budget year'' means, with 
        respect to a session of Congress, the fiscal year of the 
        Government that starts on October 1 of the calendar year in 
        which that session begins.
            (5) CBO.--The term ``CBO'' means the Director of the 
        Congressional Budget Office.
            (6) Current.--The term ``current'' means--
                    (A) with respect to the Office of Management and 
                Budget estimates included with a budget submission 
                under section 1105(a) of title 31, United States Code, 
                the estimates consistent with the economic and 
                technical assumptions underlying that budget;
                    (B) with respect to estimates made after that 
                budget submission that are not included with it, the 
                estimates consistent with the economic and technical 
                assumptions underlying the most recently submitted 
                President's budget; and
                    (C) with respect to the Congressional Budget 
                Office, estimates consistent with the economic and 
                technical assumptions as required by section 202(e)(1) 
                of the Congressional Budget Act of 1974.
            (7) Current year.--The term ``current year'' means, with 
        respect to a budget year, the fiscal year that immediately 
        precedes that budget year.
            (8) Deficit.--The term ``deficit'' means, with respect to 
        any fiscal year, the amount by which total budget outlays for 
        such fiscal year exceed total governmental receipts for such 
        fiscal year. In calculating the deficit for purposes of 
        comparison with the maximum deficit amount under section 221 
        and in calculating the excess deficit for purposes of subtitle 
        C (notwithstanding section 710(a) of the Social Security Act 
        (42 U.S.C. 911)) for any fiscal year, the receipts of the 
        Federal Old-Age and Survivors Insurance Trust Fund and the 
        Federal Disability Insurance Trust Fund for such fiscal year 
        and the taxes payable under sections 1401(a), 3101(a), and 
        3111(a) of the Internal Revenue Code of 1954 (26 U.S.C. 1401, 
        3101, 3111) during such fiscal year shall be included in total 
        revenues for such fiscal year, and the disbursements of each 
        such Trust Fund for such fiscal year shall be included in total 
        budget outlays for such fiscal year. Notwithstanding any other 
        provision of law except to the extent provided by section 
        710(a) of the Social Security Act (42 U.S.C. 911) the receipts, 
        revenues, disbursements, budget authority, and outlays of each 
        off-budget Federal entity for a fiscal year shall be included 
        in total budget authority, total budget outlays, and total 
        revenues and the amounts of budget authority and outlays set 
        forth for each major functional category, for such fiscal year.
            (9) Direct spending and mandatory spending.--The terms 
        ``direct spending'' and ``mandatory spending'' shall have the 
        meaning given such terms in section 3(3) of the Congressional 
        Budget Act of 1974.
            (10) Discretionary appropriations and discretionary budget 
        authority.--The terms ``discretionary appropriations'' and 
        ``discretionary budget authority'' shall have the meaning given 
        such terms in section 3(4) of the Congressional Budget Act of 
        1974.
            (11) Discretionary spending limit.--The term 
        ``discretionary spending limit'' shall mean the amounts 
        specified in section 212.
            (12) Excess deficit amount.--The term ``excess deficit 
        amount'', with respect to any fiscal year, means the amount of 
        the deficit reduced by the estimated reductions of outlays 
        resulting from any sequestration in subtitle C, that exceeds 
        the maximum deficit amount.
            (13) OMB.--The term ``OMB'' means the Director of the 
        Office of Management and Budget.
            (14) Sequestration.--The term ``sequestration''--
                    (A) with respect to discretionary budget authority, 
                means the cancellation or reduction of budget authority 
                (except budget authority to fund mandatory programs) 
                provided in appropriation Acts; and
                    (B) with respect to the excess deficit amount, 
                means the amount canceled or reduced from direct 
                spending and outlays flowing therefrom.

SEC. 202. ADMINISTRATION, RECONCILIATION, AND EFFECT OF SEQUESTRATION.

    (a) Timetable.--The timetable with respect to this title is as 
follows:

------------------------------------------------------------------------
 
------------------------------------------------------------------------
5 days before the President's        CBO Discretionary Sequestration and
 budget submission                    Maximum Deficit Amount Preview
                                      Report.
The President's budget submission    OMB Discretionary Sequestration and
                                      Maximum Deficit Amount Preview
                                      Report.
August 15                            CBO Discretionary Sequestration and
                                      Maximum Deficit Amount
                                      Reconciliation Report.
August 20                            OMB Discretionary Sequestration and
                                      Maximum Deficit Amount
                                      Reconciliation Report.
September 15                         Budget Committee Reconciliation
                                      Directives.
20 days after Budget Committee       Committees Respond to
 Action                               Reconciliation Directives
10 days after end of session         CBO Final Discretionary
                                      Sequestration and Maximum Deficit
                                      Amount Sequestration Report.
15 days after end of session         OMB Final Discretionary
                                      Sequestration and Maximum Deficit
                                      Amount Sequestration Report/
                                      Presidential Sequestration Order.
------------------------------------------------------------------------

    (b) Presidential Order.--
            (1) In general.--On the date specified in subsection (a), 
        if in its Final Sequestration Report, OMB estimates that any 
        sequestration is required, the President shall issue an order 
        fully implementing without change all sequestrations required 
        by the OMB calculations set forth in that report. This order 
        shall be effective on issuance.
            (2) Special rule.--If the date specified for the submission 
        of a Presidential order under subsection (a) falls on a Sunday 
        or legal holiday, such order shall be issued on the following 
        day.
    (c) Effects of Sequestration.--The effects of sequestration shall 
be as follows:
            (1) Budgetary resources sequestered from any account shall 
        be permanently cancelled, except as provided in paragraph (5).
            (2) Except as otherwise provided, the same percentage 
        sequestration shall apply to all programs, projects, and 
        activities within a budget account (with programs, projects, 
        and activities as delineated in the appropriation Act or 
        accompanying report for the relevant fiscal year covering that 
        account).
            (3) Administrative regulations or similar actions 
        implementing a sequestration shall be made within 120 days of 
        the sequestration order. To the extent that formula allocations 
        differ at different levels of budgetary resources within an 
        account, program, project, or activity, the sequestration shall 
        be interpreted as producing a lower total appropriation, with 
        the remaining amount of the appropriation being obligated in a 
        manner consistent with program allocation formulas in 
        substantive law.
            (4) Except as otherwise provided in this subtitle, 
        obligations or budgetary resources in sequestered accounts 
        shall be reduced only in the fiscal year in which a sequester 
        occurs.
            (5) Budgetary resources sequestered in special fund 
        accounts and offsetting collections sequestered in 
        appropriation accounts shall not be available for obligation 
        during the fiscal year in which the sequestration occurs, but 
        shall be available in subsequent years to the extent otherwise 
        provided in law.
    (d) Submission and Availability of Reports.--Each report required 
by this section shall be submitted, in the case of CBO, to the House of 
Representatives, the Senate, and OMB and, in the case of OMB, to the 
House of Representatives, the Senate, and the President on the day it 
is issued. On the following day a notice of the report shall be printed 
in the Federal Register.

SEC. 203. GAO COMPLIANCE REPORT.

    Upon request of the Committee on the Budget of the House of 
Representatives or the Senate, the Comptroller General shall submit to 
the Congress and the President a report on--
            (1) the extent to which each order issued by the President 
        under this title complies with all of the requirements 
        contained in this title, either certifying that the order fully 
        and accurately complies with such requirements or indicating 
        the respects in which it does not; and
            (2) the extent to which each report issued by OMB or CBO 
        under this section complies with all of the requirements 
        contained in this title, either certifying that the report 
        fully and accurately complies with such requirements or 
        indicating the respects in which it does not.

               Subtitle B--Discretionary Spending Limits

SEC. 211. DISCRETIONARY SEQUESTRATION REPORTS.

    (a) Discretionary Sequestration Preview Reports.--
            (1) Reporting requirement.--
                    (A) In general.--On the dates specified in section 
                202(a), OMB shall report to the President and Congress 
                and CBO shall report to Congress a Discretionary 
                Sequestration Preview Report regarding discretionary 
                sequestration based on laws enacted through those 
                dates.
                    (B) President's budget.--When the President submits 
                the budget under section 1105 of title 31, United 
                States Code, OMB shall calculate and the budget shall 
                include adjustments to discretionary spending limits 
                (and those limits as cumulatively adjusted) for the 
                budget year and each outyear to reflect adjustments 
                under section 212(b).
                    (C) Consultation.--Any determination or change 
                under subparagraph (B) may only be made after 
                consultation with the Committees on Appropriations and 
                the Budget of the Senate and the House of 
                Representatives, and that consultation shall include 
                written communication to such committees that affords 
                such committees the opportunity to comment before 
                official action is taken with respect to such changes.
            (2) Discretionary.--The Discretionary Sequestration Preview 
        Report shall set forth estimates for the current year and each 
        subsequent year through 2010 of the applicable discretionary 
        spending limits and an explanation of any adjustments in such 
        limits under section 212, and a projection of budget authority 
        exceeding discretionary limits subject to sequester.
            (3) Explanation of differences.--The OMB reports shall 
        explain the differences between OMB and CBO estimates for each 
        item set forth in this subsection.
    (b) Discretionary Sequestration Reports.--On the dates specified in 
section 202(a), OMB and CBO shall issue Discretionary Sequestration 
Reports, reflecting laws enacted through those dates, containing all of 
the information required in the Discretionary Sequestration Preview 
Reports.
    (c) Final Discretionary Sequestration Reports.--
            (1) Reporting requirements.--On the dates specified in 
        section 202(a), OMB and CBO shall each issue a Final 
        Discretionary Sequestration Report, updated to reflect laws 
        enacted through those dates.
            (2) Discretionary spending.--The Final Discretionary 
        Sequestration Reports shall set forth estimates for each of the 
        following:
                    (A) For the current year and each subsequent year 
                through 2010; the applicable discretionary spending 
                limits.
                    (B) For the current year, if applicable, and the 
                budget year; the new budget authority and the breach, 
                if any.
                    (C) The sequestration percentages necessary to 
                eliminate the breach.
                    (D) For the budget year, for each account to be 
                sequestered, the level of enacted, sequesterable budget 
                authority and resulting estimated outlays flowing 
                therefrom.
            (3) Explanation of differences.--The OMB report shall 
        explain--
                    (A) any differences between OMB and CBO estimates 
                for the amount of any breach and for any required 
                discretionary sequestration percentages; and
                    (B) differences in the amount of sequesterable 
                resources for any budget account to be reduced if such 
                difference is greater than $5,000,000.
    (d) Economic and Technical Assumptions.--In all reports required by 
this section, OMB shall use the same economic and technical assumptions 
as used in the most recent budget submitted by the President under 
section 1105(a) of title 31, United States Code.
    (e) Adjustments.--When OMB submits a report under this section for 
a fiscal year, OMB shall calculate, and the subsequent reports and 
budgets submitted by the President under section 1105(a) of title 31, 
United States Code shall include, adjustments to discretionary spending 
limits under section 212(b) (and those limits as adjusted) for the 
fiscal year and each succeeding year.

SEC. 212. LIMITS.

    (a) Discretionary Spending Limits.--As used in this subtitle, the 
term ``discretionary spending limit'' means--
            (1) with respect to fiscal year 2008, $926,584,000,000 in 
        new budget authority;
            (2) with respect to fiscal year 2009, $955,934,000,000 in 
        new budget authority;
            (3) with respect to fiscal year 2010, $971,430,000,000 in 
        new budget authority; and
            (4) with respect to fiscal years following 2010, the 
        President shall recommend and the Congress shall consider 
        legislation setting limits for those fiscal years.
    (b) Adjustments.--
            (1) Global war on terrorism funding.--If an appropriation 
        bill or joint resolution is enacted for fiscal year 2008, 2009, 
        or 2010, that provides funding for the military for conducting 
        the war on terrorism overseas, the adjustment for purposes of 
        section 211(c) shall be the amount of budget authority in that 
        measure for that purpose but not to exceed--
                    (A) with respect to fiscal year 2008, 
                $145,162,000,000 in new budget authority;
                    (B) with respect to fiscal year 2009, 
                $100,000,000,000 in new budget authority; and
                    (C) with respect to fiscal year 2010, 
                $50,000,000,000 in new budget authority.
            (2) United states forces in the global war on terrorism.--
        If an appropriation bill or joint resolution is enacted for 
        fiscal year 2008 that provides funding for activities that--
                    (A) address training, equipment, force protection, 
                logistics, or other matters necessary for the 
                protection of United States forces; or
                    (B) address deficiencies at Walter Reed Army 
                Medical Center and other facilities within the military 
                medical system providing treatment to service members 
                injured while performing their duties in the Global War 
                on Terrorism;
                    (C) the adjustment for purposes of section 211(c) 
                shall be the amount of budget authority in that measure 
                for that purpose but not to exceed $5,000,000,000 in 
                new budget authority.
            (3) Emergency spending.--If, for fiscal year 2008, 2009, or 
        2010 appropriations for discretionary accounts are enacted that 
        the President designates as emergency requirements, and that 
        the Congress so designates in statute, the adjustment for 
        purposes of section 211(c) shall be the total of such 
        appropriations in discretionary accounts designated as 
        emergency requirements, but not to exceed $5,000,000,000 for 
        fiscal year 2008, $5,000,000,000 for 2009, and $5,000,000,000 
        for 2010. Appropriations designated as emergencies in excess of 
        these limitations shall be treated as new budget authority for 
        the purpose of calculating a breach of the discretionary 
        spending limits.
            (4) Federal tax gap initiative.--If an appropriation bill 
        or joint resolution is enacted for fiscal year 2008, 2009, or 
        2010, that includes $6,788,000,000 plus an additional amount 
        for the enhanced tax enforcement initiative of the Internal 
        Revenue Service, the adjustment for purposes of section 211(c) 
        shall be the amount of budget authority in that measure for 
        that initiative but not to exceed--
                    (A) with respect to fiscal year 2008, $440,000,000 
                in new budget authority;
                    (B) with respect to fiscal year 2009, $619,000,000 
                in new budget authority; and
                    (C) with respect to fiscal year 2010, $826,000,000 
                in new budget authority.
            (5) Continuing disability reviews and ssi 
        redeterminations.--If an appropriation bill or joint resolution 
        is enacted for fiscal year 2008, 2009, or 2010, that includes 
        $264,000,000 plus an additional amount for continuing 
        disability reviews and supplemental security income 
        redeterminations for the Social Security Administration, the 
        adjustment for purposes of section 211(c) shall be the amount 
        of budget authority in that measure for that initiative but not 
        to exceed--
                    (A) with respect to fiscal year 2008, $213,000,000 
                in new budget authority;
                    (B) with respect to fiscal year 2009, $453,000,000 
                in new budget authority; and
                    (C) with respect to fiscal year 2010, $485,000,000 
                in new budget authority.
            (6) Health care fraud and abuse.--If an appropriation bill 
        or joint resolution is enacted for fiscal year 2008 that 
        includes $1,156,000,000, or for fiscal year 2009 that includes 
        $1,178,000,000, or for fiscal year 2010 that includes 
        $1,200,000,000, plus an additional amount for Health Care, 
        Fraud, and Abuse Control Program at the Department of Health 
        and Human Services, the adjustment for purposes of section 
        211(c) shall be the amount of budget authority in that measure 
        for that initiative but not to exceed--
                    (A) with respect to fiscal year 2008, $183,000,000 
                in new budget authority;
                    (B) with respect to fiscal year 2009, $198,000,000 
                in new budget authority; and
                    (C) with respect to fiscal year 2010, $211,000,000 
                in new budget authority.
            (7) Unemployment insurance improper payment reviews.--If an 
        appropriation bill or joint resolution is enacted for fiscal 
        year 2008, 2009, or 2010 that includes $10,000,000, plus an 
        additional amount for unemployment improper payment reviews for 
        the Department of Labor, the adjustment for purposes of section 
        211(c) shall be the amount of budget authority in that measure 
        for that initiative but not to exceed--
                    (A) with respect to fiscal year 2008, $40,000,000 
                in new budget authority;
                    (B) with respect to fiscal year 2009, $40,000,000 
                in new budget authority; and
                    (C) with respect to fiscal year 2010, $40,000,000 
                in new budget authority.
    (c) Enforcement.--
            (1) Sequestration.--On the date specified in section 
        202(a), there shall be a sequestration to eliminate a budget-
        year breach.
            (2) Eliminating a breach.--Each account shall be reduced by 
        a dollar amount calculated by multiplying the enacted level of 
        budget authority for that year in that account at that time by 
        the uniform percentage necessary to eliminate a breach of the 
        discretionary spending limit.
            (3) Optional exemption of military personnel.--
                    (A) In general.--The President may, with respect to 
                any military personnel account, exempt that account 
                from sequestration or provide for a lower uniform 
                percentage reduction than would otherwise apply.
                    (B) Limitation.--The President may not use the 
                authority provided in subparagraph (a) unless the 
                President notifies Congress of the manner in which such 
                authority will be exercised on or before the date in 
                section 202(a).
            (4) Part-year appropriations.--If, on the date the report 
        is issued under paragraph (1), there is in effect an Act making 
        continuing appropriations for part of a fiscal year for any 
        budget account, then the dollar sequestration calculated for 
        that account under paragraph (2) shall be subtracted from--
                    (A) the annualized amount otherwise available by 
                law in that account under that or a subsequent part-
                year appropriation; and
                    (B) when a full-year appropriation for that account 
                is enacted, from the amount otherwise provided by the 
                full-year appropriation.
            (5) Look-back.--If, after June 30, an appropriation for the 
        fiscal year in progress is enacted that causes a breach for 
        that year (after taking into account any previous 
        sequestration), the discretionary spending limit for the next 
        fiscal year shall be reduced by the amount of that breach.
            (6) Within-session sequestration reports and order.--If an 
        appropriation for a fiscal year in progress is enacted (after 
        Congress adjourns to end the session for that budget year and 
        before July 1 of that fiscal year) that causes a breach, 10 
        days later CBO shall issue a report containing the information 
        required in section 211(c). Fifteen days after enactment, OMB 
        shall issue a report containing the information required in 
        section 211(c). On the same day as the OMB report, the 
        President shall issue an order fully implementing without 
        change all sequestrations required by the OMB calculations set 
        forth in that report. This order shall be effective on 
        issuance.
    (d) Estimates.--
            (1) CBO estimates.--As soon as practicable after Congress 
        completes action on any legislation providing discretionary 
        appropriations, CBO shall provide an estimate to OMB of that 
        legislation.
            (2) OMB estimates.--Not later than 7 calendar days 
        (excluding Saturdays, Sundays, and legal holidays) after the 
        date of enactment of any discretionary appropriations, OMB 
        shall transmit a report to the Senate and to the House of 
        Representatives containing--
                    (A) the CBO estimate of that legislation;
                    (B) an OMB estimate of that legislation using 
                current economic and technical assumptions; and
                    (C) an explanation of any difference between the 2 
                estimates.
            (3) Differences.--If during the preparation of the report 
        under paragraph (2), OMB determines that there is a difference 
        between the OMB and CBO estimates, OMB shall consult with the 
        Committees on the Budget of the House of Representatives and 
        the Senate regarding that difference and that consultation, to 
        the extent practicable, shall include written communication to 
        such committees that affords such committees the opportunity to 
        comment before the issuance of that report.
            (4) Assumptions and guidelines.--OMB and CBO shall prepare 
        estimates under this paragraph in conformance with scorekeeping 
        guidelines determined after consultation among the House and 
        Senate Committees on the Budget, CBO, and OMB.

             Subtitle C--Maximum Deficit Amount Limitation

SEC. 221. MAXIMUM DEFICIT AMOUNT.

    In this subtitle, the term ``maximum deficit amount''--
            (1) with respect to 2008, equals 1.75 percent of the Gross 
        Domestic Product for 2008, as estimated by OMB for 2008;
            (2) with respect to 2009, equals 1.25 percent of the Gross 
        Domestic Product for 2009, as estimated by OMB for 2009;
            (3) with respect to 2010, equals 0.75 percent of the Gross 
        Domestic Product for 2010, as estimated by OMB for 2010;
            (4) with respect to 2011, equals 0.5 percent of Gross 
        Domestic Product as estimated by OMB for 2011; and
            (5) with respect to 2012 and thereafter, 0.00 percent as 
        estimated by OMB for 2012, and thereafter.

SEC. 222. REPORTING OF EXCESS DEFICITS.

    (a) Maximum Deficit Amount Preview Report by OMB and CBO.--
            (1) Estimates and determinations.--On the dates specified 
        in section 202(a), OMB and CBO shall with respect to each 
        fiscal year estimate--
                    (A) the deficit;
                    (B) the maximum deficit amount; and
                    (C) any excess deficit amount for the budget year.
            (2) Report.--OMB shall report to the President and Congress 
        and CBO shall report to Congress estimating the budget base 
        levels of total revenues and total budget outlays for the 
        budget year, identifying the deficit, the maximum deficit 
        amount, and the amount of any deficit excess for such fiscal 
        year, the base from which direct spending reductions are taken 
        and the amounts based upon uniform percentages, by which such 
        direct spending accounts must be reduced for the budget year, 
        in accordance with the succeeding provisions of this part, in 
        order to eliminate such excess based on laws enacted through 
        those dates.
            (3) Determination of reductions.--The amounts based upon 
        uniform percentages, by which accounts must be reduced for the 
        budget year shall be determined by, subject to the exemptions 
        set forth in section 227, the reductions necessary to eliminate 
        the excess deficit amount for the fiscal year.
            (4) Basis for directors' estimates, determinations, and 
        specifications.--
                    (A) Budget base.--In computing the amounts and 
                percentages by which accounts must be reduced during a 
                fiscal year as set forth in the report required under 
                paragraph (2) for such fiscal year, OMB and CBO shall 
                use current economic and technical assumptions 
                consistent with the methodology set forth in section 
                257 of the Balanced Budget and Enforcement Deficit 
                Control Act of 1985.
                    (B) Explanation of differences.--The OMB shall 
                explain the differences between OMB and CBO estimates 
                for each item in the report.
    (b) Revised Estimates and Maximum Deficit Amount Reconciliation 
Reports.--
            (1) Reconciliation report by omb and cbo.--On the dates 
        specified in section 202(a), the Director of OMB shall submit 
        to the President and Congress, and the Director of CBO shall 
        submit to Congress, a revised report--
                    (A) indicating whether and to what extent, as a 
                result of laws enacted and regulations promulgated 
                after the submission of their maximum deficit amount 
                preview report under subsection (a), the excess deficit 
                identified in the report submitted under such 
                subsection has been eliminated, reduced, or increased; 
                and
                    (B) adjusting the determinations for the effects of 
                any discretionary sequestration that may be required 
                under subtitle B.
        The reconciliation report submitted under this paragraph shall 
        contain estimates, determinations, and specifications for all 
        of the items contained in the preview report and the OMB report 
        shall be based on the same economic and technical assumptions 
        and employ the same methodologies as applied in the 
        supplemental budget estimates submitted under section 1106 of 
        title 31, United States Code, and the CBO report shall be based 
        on the most recent report required by section 202(e)(2) of the 
        Congressional Budget Act of 1974. Estimates shall be consistent 
        with methodology in section 257 of the Balanced Budget and 
        Enforcement Act Deficit Control Act of 1985. The reports shall 
        provide for the determination of reductions in the manner 
        specified in subsection (a)(3).
            (2) Explanation of differences.--The OMB shall explain the 
        differences between OMB and CBO estimates for each item in the 
        reconciliation report.
    (c) Dates for Submission of Reports and Issuance of Orders.--If the 
date specified for the submission of a report by the Director of OMB or 
the issuance of a Presidential order under this section falls on a 
Sunday or legal holiday, such report shall be submitted or such order 
issued on the following day.
    (d) Printing of Reports.--Each report submitted under this section 
shall be printed in the Federal Register on the date it is issued; and 
the reports of the Director of OMB submitted to the Congress under 
subsection (b) shall be printed as documents of the House of 
Representatives and the Senate.
    (e) Estimates.--
            (1) CBO estimates.--As soon as practicable after Congress 
        completes action on any legislation under this section, CBO 
        shall provide an estimate to OMB of that legislation.
            (2) OMB estimates.--Not later than 7 calendar days 
        (excluding Saturdays, Sundays, and legal holidays) after the 
        date of enactment of any direct spending, OMB shall transmit a 
        report to the House of Representatives and to the Senate 
        containing--
                    (A) the CBO estimate of that legislation;
                    (B) an OMB estimate of that legislation using 
                current economic and technical assumptions; and
                    (C) an explanation of any difference between the 2 
                estimates.
            (3) Differences.--If during the preparation of the report 
        under paragraph (2), OMB determines that there is a difference 
        between the OMB and CBO estimates, OMB shall consult with the 
        Committees on the Budget of the Senate and the House of 
        Representatives regarding that difference and that 
        consultation, to the extent practicable, shall include written 
        communication to such committees that affords such committees 
        the opportunity to comment before the issuance of that report.
            (4) Assumptions and guidelines.--OMB and CBO shall prepare 
        estimates under this paragraph in conformance with scorekeeping 
        guidelines determined after consultation among the Senate and 
        House Committees on the Budget, CBO, and OMB.

SEC. 223. CONGRESSIONAL RESPONSE TO OMB AND CBO RECONCILIATION REPORT.

    (a) Reporting of Resolutions, and Reconciliation Bills and 
Resolutions, in the Senate.--
            (1) Committee alternatives to presidential order.--For the 
        purpose of assisting the Committees on the Budget of the Senate 
        and House in preparing Reconciliation Directive Reports under 
        paragraph (3) and not later than 20 days after the submission 
        of the OMB Reconciliation Report, each standing committee of 
        the Senate and House may submit to the Committees on the Budget 
        of the Senate and House information of the type described in 
        section 301(d) of the Congressional Budget Act of 1974 with 
        respect to alternatives to the order envisioned by such report 
        insofar as such order affects laws within the jurisdiction of 
        the committee.
            (2) Application of the congressional budget act of 1974.--
        Sections 305 and 310 of the Congressional Budget Act of 1974 
        shall apply to any bill considered under this section, except 
        as otherwise provided in this section.
            (3) Reconciliation directives.--On the date specified in 
        section 202(a), the Chairmen and Ranking Minority Members of 
        the Committees on the Budget of the Senate and House shall 
        submit a Reconciliation Directive Report to the President of 
        the Senate or the Speaker of the House for appropriate referral 
        to the committees of its House, the OMB Reconciliation Report 
        containing the maximum deficit amount and the excess deficit 
        and reconciliation directives. Such directives shall--
                    (A) specify the total amount by which--
                            (i) direct spending budget authority and 
                        outlays for such fiscal year; and
                            (ii) governmental receipts, other than 
                        income taxes, estate and gift taxes, excise 
                        taxes, payroll taxes, or tariffs, for such 
                        fiscal year;
                are to be changed; and
                    (B) include directives to committees to recommend 
                changes in laws within their jurisdiction--
                            (i) to accomplish the total amount of 
                        deficit reduction necessary to eliminate the 
                        excess deficit so that the deficit does not 
                        exceed the maximum deficit amount set forth in 
                        the OMB Reconciliation Report; and
                            (ii) with amounts required for each 
                        committee proportionally based on the outlays 
                        allocated to that committee for programs under 
                        section 302(a) of the Congressional Budget Act 
                        of 1974 in the most recent adopted concurrent 
                        resolution on the budget.
            (4) Response of committees.--Committees directed pursuant 
        to paragraph (3), shall submit their recommendations to comply 
        with the directives to the Budget Committee no later than 20 
        days after the directives referred to in paragraph (3) are 
        issued.
            (5) Budget committee action.--Upon receipt of the 
        recommendations received in response to directives referred to 
        in paragraph (3), the Budget Committees shall report to the 
        Senate and House, a reconciliation bill carrying out all such 
        recommendations.
    (b) Legislative Procedure.--If a Reconciliation Directive Report 
containing reconciliation directives to committees to determine and 
recommend changes in laws, bills, or resolutions is issued in 
accordance with subsection (a)(3)--
            (1) each such committee so directed shall make such 
        recommendations to the Committee on the Budget of its House, 
        which upon receiving all such recommendations, shall report to 
        its House reconciliation legislation carrying out all such 
        recommendations without any substantive revision; and
            (2) in the event that any committee fails to comply with 
        its directive, then the Committees on the Budget may report 
        amendments recommending changes within the jurisdiction of the 
        noncompliant committee to achieve the changes contained in the 
        directive.
    (c) Adjustment of Budget Targets.--Upon enactment of a 
reconciliation bill conference report, the chairmen of the Committees 
on the Budget of the Senate and the House of Representatives shall 
revise spending and revenue levels under section 311(a) of the 
Congressional Budget Act of 1974 and adjust the committee allocations 
under section 302(a) of the Congressional Budget Act of 1974, or any 
other adjustments as may be appropriate to reflect any changes made in 
the reconciliation bill. Notwithstanding any other provision of law, 
the revised allocations and aggregates shall be considered to have been 
made under a concurrent resolution on the budget agreed to under the 
Congressional Budget Act of 1974, and shall be enforced under the 
procedures of that Act.
    (d) Compliance With Reconciliation Directives.--Secondary or 
indirect effects of the legislative recommendations submitted by any 
committee of the Senate or the House of Representatives that is 
directed, shall be attributed to the committee proposing the change in 
law, but shall not be considered for the purpose of determining 
compliance with such directives.
    (e) Limitation on Amendments to Reconciliation Bills.--
            (1) House of representatives.--It shall not be in order in 
        the House of Representatives to consider any amendment to a 
        reconciliation bill if such amendment would have the effect of 
        increasing any specific budget outlays above the level of such 
        outlays provided in the bill (for the fiscal years covered by 
        the reconciliation directives), or would have the effect of 
        reducing any specific governmental receipts below the level of 
        such governmental receipts provided in the bill (for such 
        fiscal year), unless such amendment makes at least an 
        equivalent reduction in other specific budget outlays, an 
        equivalent increase in other specific governmental receipts, or 
        an equivalent combination thereof (for such fiscal year).
            (2) Senate.--It shall not be in order in the Senate to 
        consider any amendment to a reconciliation bill if such 
        amendment would have the effect of increasing any specific 
        budget outlay level above the level of such outlay reductions 
        provided (for the fiscal year covered) in the reconciliation 
        directives or would have the effect of reducing governmental 
        receipts increases below the level of such increases in such 
        governmental receipts provided (for such fiscal year) in the 
        reconciliation directives, unless such amendment makes a 
        reduction in other specific budget outlays, an increase in 
        other specific governmental receipts, or a combination thereof 
        (for such fiscal year) at least equivalent to any increase in 
        outlays or decrease in governmental receipts provided by such 
        amendment, except that a motion to strike a provision shall 
        always be in order.
            (3) Budget authority, outlays, and receipts.--For purposes 
        of this section, the levels of budget authority, outlays, and 
        governmental receipts for a fiscal year shall be determined on 
        the basis of estimates made by the Committee on the Budget of 
        the Senate or of the House of Representatives, as the case may 
        be.
            (4) House rules.--The Committee on Rules of the House of 
        Representatives may make in order amendments to achieve changes 
        specified by reconciliation directives if a committee or 
        committees of the House fail to submit recommended changes to 
        its Committee on the Budget pursuant to its instruction.
    (f) Procedure in the Senate.--Consideration in the Senate on any 
reconciliation bill reported under this subsection, and all amendments 
thereto and debatable motions and appeals in connection therewith, 
shall be limited to not more than 20 hours.
    (g) Limitation on Changes to the Social Security Act.--
Notwithstanding any other provision of law, it shall not be in order in 
the Senate or the House of Representatives to consider any 
reconciliation bill, or any amendment thereto or conference report 
thereon, that contains recommendations with respect to the old-age, 
survivors, and disability insurance program established under title II 
of the Social Security Act.
    (h) Extraneous Matter in Reconciliation Legislation.--
            (1) In general.--When the Senate is considering a 
        reconciliation bill pursuant to this section (whether that bill 
        originated in the Senate or the House), upon a point of order 
        being made by any Senator against material extraneous to the 
        instructions to a committee which is contained in any title or 
        provision of the bill or offered as an amendment to the bill, 
        and the point of order is sustained by the Chair, any part of 
        said title or provision that contains material extraneous to 
        the directives to said Committee as defined in paragraph (2), 
        shall be deemed stricken from the bill and may not be offered 
        as an amendment from the floor.
            (2) Extraneous provisions.--Except as provided in paragraph 
        (3)--
                    (A) a provision of a reconciliation bill considered 
                pursuant to this subsection shall be considered 
                extraneous if such provision does not produce a 
                decrease in outlays or an increase in governmental 
                receipts, including changes in outlays and governmental 
                receipts brought about by changes in the terms and 
                conditions under which outlays are made or governmental 
                receipts are required to be collected;
                    (B) a provision that is not in the jurisdiction of 
                the Committee with jurisdiction over said title or 
                provision shall be considered extraneous (except that 
                amendments reported by the Committee on the Budget to 
                achieve compliance with reconciliation directives shall 
                be in order notwithstanding any other rule of the 
                Senate and not be deemed extraneous);
                    (C) a provision shall be considered to be 
                extraneous if it increases, or would increase, net 
                outlays, or if it decreases, or would decrease, 
                governmental receipts during a fiscal year after the 
                fiscal years covered by such reconciliation bill, and 
                such increases or decreases are greater than outlay 
                reductions or governmental receipts increases resulting 
                from other provisions in such title in such year; and
                    (D) a provision shall be considered extraneous if 
                it violates section 310(g) of the Congressional Budget 
                Act of 1974.
            (3) Senate-originated provisions.--A Senate-originated 
        provision shall not be considered extraneous under paragraph 
        (2) if the Chairman and Ranking Minority Member of the 
        Committee on the Budget and the Chairman and Ranking Minority 
        Member of the Committee which reported the provision certify 
        that--
                    (A) the provision mitigates direct effects clearly 
                attributable to a provision changing outlays or revenue 
                and both provisions together produce a net reduction in 
                the deficit;
                    (B) the provision will result in a substantial 
                reduction in outlays or a substantial increase in 
                governmental receipts during fiscal years after the 
                fiscal years covered by the reconciliation bill or 
                reconciliation resolution;
                    (C) a reduction of outlays or an increase in 
                governmental receipts is likely to occur as a result of 
                the provision, in the event of new regulations 
                authorized by the provision or likely to be proposed, 
                court rulings on pending litigation, or relationships 
                between economic indices and stipulated statutory 
                triggers pertaining to the provision, other than the 
                regulations, court rulings, or relationships currently 
                projected by the Congressional Budget Office for 
                scorekeeping purposes; or
                    (D) such provision will be likely to produce a 
                significant reduction in outlays or increase in 
                governmental receipts but, due to insufficient data, 
                such reduction or increase cannot be reliably 
                estimated.
            (4) Committee reported provisions.--a provision reported by 
        a committee shall not be considered extraneous under paragraph 
        (2) if--
                    (A) the provision is an integral part of a 
                provision or title, which if introduced as a bill, 
                would be referred to such committee, and the provision 
                sets forth the procedure to carry out or implement the 
                substantive provisions that were reported and which 
                fall within the jurisdiction of such committee; or
                    (B) the provision states an exception to, or a 
                special application of, the general provision or title 
                of which it is a part and such general provision or 
                title if introduced as a bill, would be referred to 
                such committee.
            (5) Technical and conforming amendments.--Technical and 
        conforming provisions shall not be considered extraneous under 
        this subsection.
            (6) Extraneous materials.--Upon the reporting of a 
        reconciliation bill pursuant to this subsection in the Senate, 
        and again upon the submission of a conference report on such a 
        reconciliation bill, the Committee on the Budget of the Senate 
        shall submit for the record a list of material considered to be 
        extraneous under paragraph (2) (A), (C), and (D), to the 
        instructions of a committee as provided in this section. The 
        inclusion or exclusion of a provision shall not constitute a 
        determination of extraneousness by the Presiding Officer of the 
        Senate.
            (7) Conference reports.--When the Senate is considering a 
        conference report on, or an amendment between the Houses in 
        relation to, a reconciliation bill pursuant to this section, 
        upon a point of order being made by any Senator against 
        extraneous material meeting the definition of this subsection, 
        and such point of order being sustained, such material 
        contained in such conference report or amendment shall be 
        deemed stricken, and the Senate shall proceed, without 
        intervening action or motion, to consider the question of 
        whether the Senate shall recede from its amendment and concur 
        with a further amendment, or concur in the House amendment with 
        a further amendment, as the case may be, which further 
        amendment shall consist of only that portion of the conference 
        report or House amendment, as the case may be, not so stricken. 
        Any such motion in the Senate shall be debatable for two hours. 
        In any case in which such point of order is sustained against a 
        conference report (or Senate amendment derived from such 
        conference report by operation of this subsection), no further 
        amendment shall be in order.
    (i) Determinations and Points of Order.--Notwithstanding any other 
law or rule of the Senate, it shall be in order for a Senator to raise 
a single point of order that several provisions of a bill, resolution, 
amendment, motion, or conference report violate this section. The 
Presiding Officer may sustain the point of order as to some or all of 
the provisions against which the Senator raised the point of order. If 
the Presiding Officer so sustains the point of order as to some of the 
provisions (including provisions of an amendment, motion, or conference 
report) against which the Senator raised the point of order, then only 
those provisions (including provisions of an amendment, motion, or 
conference report) against which the Presiding Officer sustains the 
point of order shall be deemed stricken pursuant to this section. 
Before the Presiding Officer rules on such a point of order, any 
Senator may move to waive such a point of order as it applies to some 
or all of the provisions against which the point of order was raised. 
Such a motion to waive is amendable in accordance with the rules and 
precedents of the Senate. After the Presiding Officer rules on such a 
point of order, any Senator may appeal the ruling of the Presiding 
Officer on such a point of order as it applies to some or all of the 
provisions on which the Presiding Officer ruled.

SEC. 224. REVISED ESTIMATES AND FINAL MAXIMUM DEFICIT AMOUNT 
              SEQUESTRATION REPORTS.

    (a) Revised Estimates, Determinations, and Final Maximum Deficit 
Amount Sequestration Reports.--On the dates specified in section 
202(a), OMB shall submit to the President and Congress, and CBO shall 
submit to Congress, a revised report--
            (1) indicating whether and to what extent, as a result of 
        laws enacted and regulations promulgated after the submission 
        of their preview report under section 222(a), the excess 
        deficit identified in the report submitted under such 
        subsection has been eliminated, reduced, or increased; and
            (2) adjusting the determinations made under section 222(a) 
        to the extent necessary.
The final report submitted under this subsection shall contain 
estimates, determinations, and specifications for all of the items 
contained in the maximum deficit amount reconciliation report and shall 
be based on the same economic and technical assumptions and employ the 
same methodologies shall be based on the supplemental budget estimates 
under section 1106 of title 31, United States Code, and the CBO report 
shall be based on the most recent report required by section 202(e)(2) 
of the Congressional Budget Act of 1974. Estimates shall be consistent 
with the methodology under section 257 of the Balanced Budget and 
Enforcement Act Deficit Control Act of 1985. The reports shall provide 
for the determination of reductions in the manner specified in section 
222(a)(3).
    (b) Dates for Submission of Reports and Issuance of Orders.--If the 
date specified for the submission of a report by the Director of OMB 
under this section falls on a Sunday or legal holiday, such report 
shall be submitted or such order issued on the following day.
    (c) Printing of Reports.--Each report submitted under this section 
shall be printed in the Federal Register on the date it is issued; and 
the reports of the Director of OMB submitted to the Congress under 
subsection (a)(1) shall be printed as documents of the Senate and the 
House of Representatives.

SEC. 225. MAXIMUM DEFICIT AMOUNT--PRESIDENTIAL ORDER.

    (a) In General.--On the date specified in section 202(a) and 
following the submission of a report by the Director of OMB to the 
President and Congress under section 224 that identifies an amount by 
which the deficit for a fiscal year will exceed the maximum deficit 
amount for such fiscal year the President, in strict accordance with 
the requirements set forth in section 227, shall eliminate the full 
amount of the deficit excess by issuing an order that eliminates the 
direct spending authority and outlays resulting therefrom in accordance 
with such report from each budget account activity as identified in the 
program and financing schedules contained in the appendix to the Budget 
of the United States Government for that fiscal year, applying the same 
reduction percentage as the percentage by which the account is reduced 
in such report.
    (b) Order To Be Based on OMB Report.--The order must provide for 
reductions in the manner specified in section 224, and must be 
consistent with such report in all respects. The President may not 
modify or recalculate any of the estimates, determinations, 
specifications, bases, amounts or percentages set forth in the report 
submitted under section 224 in determining the reductions to be 
specified in the order with respect to budget activities, within an 
account.
    (c) Effect of Sequestration Under Presidential Order.--Amounts 
sequestered under an order issued by the President under subsection (a) 
for a fiscal year shall be permanently cancelled in accordance with 
such final order.
    (d) Accompanying Message.--At the time the actions described in the 
preceding provisions of this subsection with respect to any fiscal year 
are taken, the President shall transmit to both Houses of the Congress 
a message containing all the information required by this section and 
further specifying in strict accordance with subsection (b)--
            (1) within each account, and the amounts which are to be 
        sequestered or reduced for each such program, project, and 
        activity or budget account activity; and
            (2) such other supporting details as the President may 
        determine to be appropriate.
Upon receipt in the Senate and the House of Representatives, the 
message shall be referred to all committees with jurisdiction over 
programs, projects, and activities affected by the order.
    (e) Effective Date of Order.--The order issued by the President 
under subsection (a) with respect to any fiscal year shall be effective 
as of the date of its issuance.

SEC. 226. CONGRESSIONAL RESPONSE TO LOW GROWTH.

    (a) Special Procedures in the Event of Low Economic Growth.--
            (1) In general.--The Director of the Congressional Budget 
        Office shall notify the Congress at any time if--
                    (A) during the period consisting of the quarter 
                during which such notification is given, the quarter 
                preceding such notification, and the four quarters 
                following such notification, such Office or the Office 
                of Management and Budget has determined that real 
                economic growth is projected or estimated to be less 
                than zero with respect to each of any two consecutive 
                quarters within such period, or
                    (B) the Department of Commerce preliminary reports 
                of actual real economic growth (or any subsequent 
                revision thereof) indicate that the rate of real 
                economic growth for each of the most recent reported 
                quarter and the immediately preceding quarter is less 
                than one percent.
        Upon such notification the majority leader of each House shall 
        introduce a joint resolution (in the form set forth in 
        paragraph (2)) declaring that the conditions specified in this 
        paragraph are met and suspending the relevant provisions of 
        this title for the remainder of the current fiscal year or for 
        the following fiscal year or both.
            (2) Form of joint resolution.--
                    (A) Matter.--The matter after the resolving clause 
                in any joint resolution introduced pursuant to 
                paragraph (1) shall be as follows: ``That the Congress 
                declares that the conditions specified in section 
                226(a)(1) of the Stop Over Spending Act of 2006 are met 
                and the provisions of that Act, including sequestration 
                of discretionary spending under subtitle B and 
                sequestration of direct spending under subtitle C of 
                that Act are suspended for the remainder of the current 
                year, and for the fiscal year following the current 
                year. This joint resolution shall not have the effect 
                of suspending any final order which was issued for the 
                current fiscal year under the SOS Act if such order was 
                issued before the date of the enactment of this joint 
                resolution.
                    (B) Title.--The title of the joint resolution shall 
                be ``Joint resolution suspending certain provisions of 
                law pursuant to SOS Act.'' and the joint resolution 
                shall not contain any preamble.
    (b) Committee Action.--Each joint resolution introduced pursuant to 
subsection (a) shall be referred to the Committee on the Budget of the 
appropriate House; and such Committee shall report the joint resolution 
to its House without amendment on or before the fifth day on which such 
House is in session after the date on which the joint resolution is 
introduced. If the Committee fails to report the joint resolution 
within the 5-day period referred to in the preceding sentence, it shall 
be automatically discharged from further consideration of the joint 
resolution, and the joint resolution shall be placed on the appropriate 
calendar.
    (c) Consideration of Joint Resolution.--
            (1) In general.--A vote on final passage of a joint 
        resolution reported to a House of the Congress or discharged 
        pursuant to subsection (b) shall be taken on or before the 
        close of the fifth calendar day of session of such House after 
        the date on which the joint resolution is reported to such 
        House or after the Committee has been discharged from further 
        consideration of the joint resolution. If prior to the passage 
        by 1 House of a joint resolution of that House, that House 
        received the same joint resolution from the other House, then--
                    (A) the procedure in that House shall be the same 
                as if no such joint resolution had been received from 
                the other House; and
                    (B) the vote on final passage shall be on the joint 
                resolution of the other House.
        When the joint resolution is agreed to, the Secretary of the 
        Senate (in the case of a House joint resolution agreed to in 
        the House of Representatives) or the Clerk of the House of 
        Representatives (in the case of a Senate joint resolution 
        agreed to in the Senate) shall cause the joint resolution to be 
        engrossed, certified, and transmitted to the other House of 
        Congress as soon as practicable.
            (2) House.--
                    (A) Proceeding.--A motion in the House of 
                Representatives to proceed to the consideration of a 
                joint resolution under this subsection shall be highly 
                privileged and not debatable. An amendment to the 
                motion shall not be in order, nor shall it be in order 
                to move to reconsider the vote by which the motion is 
                agreed to or disagreed to.
                    (B) Debate.--Debate in the House of Representatives 
                on a joint resolution under this subsection shall be 
                limited to not more than 5 hours, which shall be 
                divided equally between those favoring and those 
                opposing the joint resolution. A motion to postpone, 
                made in the House of Representatives with respect to 
                the consideration of a joint resolution under this 
                subsection, and a motion to proceed to the 
                consideration of other business, shall not be in order. 
                A motion further to limit debate shall not be 
                debatable. It shall not be in order to move to table or 
                to recommit a joint resolution under this subsection or 
                to move to reconsider the vote by which the joint 
                resolution is agreed to or disagreed to.
                    (C) Appeals.--All appeals from the decisions of the 
                Chair relating to the application of the Rules of the 
                House of Representatives to the procedure relating to a 
                joint resolution under this subsection shall be decided 
                without debate.
                    (D) Form of resolution.--Except to the extent 
                specifically provided in this subsection or in 
                paragraph (4), consideration of a joint resolution 
                under this paragraph shall be governed by the Rules of 
                the House of Representatives.
            (3) Senate.--
                    (A) Proceeding.--A motion in the Senate to proceed 
                to the consideration of a joint resolution under this 
                subsection shall be privileged and not debatable. An 
                amendment to the motion shall not be in order, nor 
                shall it be in order to move to reconsider the vote by 
                which the motion is agreed to or disagreed to.
                    (B) Debate.--Debate in the Senate on a joint 
                resolution under this subsection, and all debatable 
                motions and appeals in connection therewith, shall be 
                limited to not more than five hours. The time shall be 
                equally divided between, and controlled by, the 
                majority leader and the minority leader or their 
                designees.
                    (C) Motions and appeals.--Debate in the Senate on 
                any debatable motion or appeal in connection with a 
                joint resolution under this subsection shall be limited 
                to not more than one hour, to be equally divided 
                between, and controlled by, the mover and the manager 
                of the joint resolution, except that in the event the 
                manager of the joint resolution is in favor of any such 
                motion or appeal, the time in opposition thereto shall 
                be controlled by the minority leader or his designee.
                    (D) Limit debate or recommit.--A motion in the 
                Senate to further limit debate on a joint resolution 
                under this subsection is not debatable. A motion to 
                table or to recommit a joint resolution under this 
                subsection is not in order.
            (4) No amendments.--No amendment to a joint resolution 
        considered under this subsection shall be in order in either 
        the Senate or the House of Representatives.

SEC. 227. EXEMPTIONS FROM SEQUESTRATION.

    (a) In General.--Except as provided in subsection (b), all direct 
spending and outlays flowing therefrom shall be subject to the 
sequestration procedures under this subtitle.
    (b) Exemptions.--
            (1) Social security benefits and tier i railroad retirement 
        benefits.--Benefits payable under the old-age, survivors, and 
        disability insurance program established under title II of the 
        Social Security Act, or in benefits payable under section 3(a), 
        3(f)(3), 4(a), or 4(f) of the Railroad Retirement Act of 1974, 
        shall be exempt from any reduction under any order issued under 
        this part.
            (2) In budget.--
                    (A) President's budget.--The President shall 
                include in the budget submitted pursuant to section 
                1105 of title 31, United States Code, specific accounts 
                or activities where amounts are not available for 
                sequestration in order to prevent Federal default 
                (including outlays for interest on the public debt, 
                outlays for claims against the United States, outlays 
                for miscellaneous permanent appropriations and outlays 
                for existing contracts.)
                    (B) Justification.--The President shall include a 
                justification for each exemption submitted pursuant to 
                subparagraph (A).
                    (C) Application.--The exemptions provided in 
                paragraph (1) and the exemptions submitted by the 
                President under this paragraph shall stand as the only 
                exemptions to sequestration procedures under this 
                subtitle, unless otherwise provided by law.

SEC. 228. SUBMISSION OF PRESIDENT'S BUDGET; MAXIMUM DEFICIT AMOUNT MAY 
              NOT BE EXCEEDED.

    Section 1105 of title 31, United States Code, is amended by adding 
at the end thereof the following:
    ``(i) The budget transmitted pursuant to subsection (a) for a 
fiscal year shall be prepared consistent with section 257 of the 
Balanced Budget and Emergency Deficit Control Act of 1985, in such a 
manner as to ensure that the discretionary spending limits under 
section 212 of the Stop Over Spending Act of 2006 and the deficit for 
such fiscal year shall not exceed the maximum deficit amount for such 
fiscal year.''.

             TITLE III--BIENNIAL BUDGET AND APPROPRIATIONS

SEC. 301. REVISION OF TIMETABLE.

    Section 300 of the Congressional Budget Act of 1974 (2 U.S.C. 631) 
is amended to read as follows:

                              ``timetable

    ``Sec. 300.  (a) In General.--Except as provided by subsection (b), 
the timetable with respect to the congressional budget process for any 
Congress (beginning with the 110th Congress) is as follows:

                                                 ``First Session
               On or before:            Action to be completed:
               First Monday in          President submits the biennial budget recommendations.
                February.
               February 15............  Congressional Budget Office submits report to Budget Committees.
               Not later than 6 weeks   Committees submit views and estimates to Budget Committees.
                after the biennial
                budget submission.
               April 1................  Budget Committees report concurrent resolution on the biennial budget.
               May 15.................  Congress completes action on concurrent resolution on the biennial
                                         budget.
               May 15.................  Biennial appropriation bills may be considered in the House.
               June 10................  House Appropriations Committee reports last biennial appropriation bill.
               June 30................  House completes action on biennial appropriation bills.
               August 1...............  Congress completes action on reconciliation legislation.
               October 1..............  Biennium begins.
 

                                                ``Second Session
               On or before:            Action to be completed:
               February 15............  President submits biennial budget review.
               Not later than 6 weeks   Congressional Budget Office submits report to Budget Committees.
                after President
                submits budget review.
               The last day of the      Congress completes action on bills and resolutions authorizing new
                session.                 budget authority for the succeeding biennium.
 

    ``(b) Special Rule.--In the case of any first session of Congress 
that begins in any year immediately following a leap year and during 
which the term of a President (except a President who succeeds himself 
or herself) begins, the following dates shall supersede those set forth 
in subsection (a):

                                                 ``First Session
               On or before:            Action to be completed:
               First Monday in April..  President submits the biennial budget recommendations.
               April 20...............  Committees submit views and estimates to Budget Committees.
               May 15.................  Budget Committees report concurrent resolution on the biennial budget.
               June 1.................  Congress completes action on concurrent resolution on the biennial
                                         budget.
               July 1.................  Biennial appropriation bills may be considered in the House.
               July 20................  House completes action on biennial appropriation bills.
               August 1...............  Congress completes action on reconciliation legislation.
               October 1..............  Biennium begins.''.
 

SEC. 302. AMENDMENTS TO THE CONGRESSIONAL BUDGET AND IMPOUNDMENT 
              CONTROL ACT OF 1974.

    (a) Declaration of Purpose.--Section 2(2) of the Congressional 
Budget and Impoundment Control Act of 1974 (2 U.S.C. 621(2)) is amended 
by striking ``each year'' and inserting ``biennially''.
    (b) Definitions.--
            (1) Budget resolution.--Section 3(4) of such Act (2 U.S.C. 
        622(4)) is amended by striking ``fiscal year'' each place it 
        appears and inserting ``biennium''.
            (2) Biennium.--Section 3 of such Act (2 U.S.C. 622) is 
        further amended by adding at the end the following new 
        paragraph:
            ``(11) The term `biennium' means the period of 2 
        consecutive fiscal years beginning on October 1 of any odd-
        numbered year.''.
    (c) Biennial Concurrent Resolution on the Budget.--
            (1) Section heading.--The section heading of section 301 of 
        such Act is amended by striking ``annual'' and inserting 
        ``biennial''.
            (2) Contents of resolution.--Section 301(a) of such Act (2 
        U.S.C. 632(a)) is amended--
                    (A) in the matter preceding paragraph (1) by--
                            (i) striking ``April 15 of each year'' and 
                        inserting ``May 15 of each odd-numbered year'';
                            (ii) striking ``the fiscal year beginning 
                        on October 1 of such year'' the first place it 
                        appears and inserting ``the biennium beginning 
                        on October 1 of such year''; and
                            (iii) striking ``the fiscal year beginning 
                        on October 1 of such year'' the second place it 
                        appears and inserting ``each fiscal year in 
                        such period'';
                    (B) in paragraph (6), by striking ``for the fiscal 
                year'' and inserting ``for each fiscal year in the 
                biennium''; and
                    (C) in paragraph (7), by striking ``for the fiscal 
                year'' and inserting ``for each fiscal year in the 
                biennium''.
            (3) Additional matters.--Section 301(b)(3) of such Act (2 
        U.S.C. 632(b)) is amended by striking ``for such fiscal year'' 
        and inserting ``for either fiscal year in such biennium''.
            (4) Views of other committees.--Section 301(d) of such Act 
        (2 U.S.C. 632(d)) is amended by inserting ``(or, if applicable, 
        as provided by section 300(b))'' after ``United States Code''.
            (5) Hearings.--Section 301(e)(1) of such Act (2 U.S.C. 
        632(e)) is amended by--
                    (A) striking ``fiscal year'' and inserting 
                ``biennium''; and
                    (B) inserting after the second sentence the 
                following: ``On or before April 1 of each odd-numbered 
                year (or, if applicable, as provided by section 
                300(b)), the Committee on the Budget of each House 
                shall report to its House the concurrent resolution on 
                the budget referred to in subsection (a) for the 
                biennium beginning on October 1 of that year.''.
            (6) Goals for reducing unemployment.--Section 301(f) of 
        such Act (2 U.S.C. 632(f)) is amended by striking ``fiscal 
        year'' each place it appears and inserting ``biennium''.
            (7) Economic assumptions.--Section 301(g)(1) of such Act (2 
        U.S.C. 632(g)(1)) is amended by striking ``for a fiscal year'' 
        and inserting ``for a biennium''.
            (8) Table of contents.--The item relating to section 301 in 
        the table of contents set forth in section 1(b) of such Act is 
        amended by striking ``Annual'' and inserting ``Biennial''.
    (d) Committee Allocations.--Section 302 of such Act (2 U.S.C. 633) 
is amended--
            (1) in subsection (a)
                    (A) in paragraph (1), by--
                            (i) striking ``for the first fiscal year of 
                        the resolution,'' and inserting ``for each 
                        fiscal year in the biennium,'';
                            (ii) striking ``for that period of fiscal 
                        years'' and inserting ``for all fiscal years 
                        covered by the resolution''; and
                            (iii) striking ``for the fiscal year of 
                        that resolution'' and inserting ``for each 
                        fiscal year in the biennium''; and
                    (B) in paragraph (5), by striking ``April 15'' and 
                inserting ``May 15 or June 1 (under section 300(b))'';
            (2) in subsection (b), by striking ``budget year'' and 
        inserting ``biennium'';
            (3) in subsection (c) by striking ``for a fiscal year'' 
        each place it appears and inserting ``for each fiscal year in 
        the biennium'';
            (4) in subsection (f)(1), by striking ``for a fiscal year'' 
        and inserting ``for a biennium'';
            (5) in subsection (f)(1), by striking ``the first fiscal 
        year'' and inserting ``each fiscal year of the biennium'';
            (6) in subsection (f)(2)(A), by--
                    (A) striking ``the first fiscal year'' and 
                inserting ``each fiscal year of the biennium''; and
                    (B) striking ``the total of fiscal years'' and 
                inserting ``the total of all fiscal years covered by 
                the resolution''; and
            (7) in subsection (g)(1)(A), by striking ``April'' and 
        inserting ``May''.
    (e) Section 303 Point of Order.--
            (1) In general.--Section 303(a) of such Act (2 U.S.C. 
        634(a)) is amended by--
                    (A) striking ``the first fiscal year'' and 
                inserting ``each fiscal year of the biennium''; and
                    (B) striking ``that fiscal year'' each place it 
                appears and inserting ``that biennium''.
            (2) Exceptions in the house.--Section 303(b)(1) of such Act 
        (2 U.S.C. 634(b)) is amended--
                    (A) in subparagraph (A), by striking ``the budget 
                year'' and inserting ``the biennium''; and
                    (B) in subparagraph (B), by striking ``the fiscal 
                year'' and inserting ``the biennium''.
            (3) Application to the senate.--Section 303(c)(1) of such 
        Act (2 U.S.C. 634(c)) is amended by--
                    (A) striking ``fiscal year'' and inserting 
                ``biennium''; and
                    (B) striking ``that year'' and inserting ``each 
                fiscal year of that biennium''.
    (f) Permissible Revisions of Concurrent Resolutions on the 
Budget.--Section 304 of such Act (2 U.S.C. 635) is amended by--
            (1) striking ``fiscal year'' the first two places it 
        appears and inserting ``biennium''; and
            (2) striking ``for such fiscal year'' and inserting ``for 
        such biennium''.
    (g) Procedures for Consideration of Budget Resolutions.--Section 
305 of such Act (2 U.S.C. 636(3)) is amended--
            (1) in subsection (a)(3), by striking ``fiscal year'' and 
        inserting ``biennium''; and
            (2) in subsection (b)(3), by striking ``fiscal year'' and 
        inserting ``biennium''.
    (h) Completion of House Action on Appropriation Bills.--Section 307 
of such Act (2 U.S.C. 638) is amended by--
            (1) striking ``each year'' and inserting ``each odd-
        numbered year'';
            (2) striking ``annual'' and inserting ``biennial'';
            (3) striking ``fiscal year'' and inserting ``biennium''; 
        and
            (4) striking ``that year'' and inserting ``each odd-
        numbered year''.
    (i) Completion of Action on Regular Appropriation Bills.--Section 
309 of such Act (2 U.S.C. 640) is amended by--
            (1) inserting ``of any odd-numbered calendar year'' after 
        ``July'';
            (2) striking ``annual'' and inserting ``biennial''; and
            (3) striking ``fiscal year'' and inserting ``biennium''.
    (j) Reconciliation Process.--Section 310(a) of such Act (2 U.S.C. 
641(a)) is amended--
            (1) in the matter preceding paragraph (1), by striking 
        ``any fiscal year'' and inserting ``any biennium''; and
            (2) in paragraph (1) by striking ``such fiscal year'' each 
        place it appears and inserting ``any fiscal year covered by 
        such resolution''.
    (k) Section 311 Point of Order.--
            (1) In the house.--Section 311(a)(1) of such Act (2 U.S.C. 
        642(a)) is amended by--
                    (A) striking ``for a fiscal year'' and inserting 
                ``for a biennium'';
                    (B) striking ``the first fiscal year'' each place 
                it appears and inserting ``either fiscal year of the 
                biennium''; and
                    (C) striking ``that first fiscal year'' and 
                inserting ``each fiscal year in the biennium''.
            (2) In the senate.--Section 311(a)(2) of such Act is 
        amended--
                    (A) in subparagraph (A), by striking ``for the 
                first fiscal year'' and inserting ``for either fiscal 
                year of the biennium''; and
                    (B) in subparagraph (B) by--
                            (i) striking ``that first fiscal year'' the 
                        first place it appears and inserting ``each 
                        fiscal year in the biennium''; and
                            (ii) striking ``that first fiscal year and 
                        the ensuing fiscal years'' and inserting ``all 
                        fiscal years''.
            (3) Social security levels.--Section 311(a)(3) of such Act 
        is amended by--
                    (A) striking ``for the first fiscal year'' and 
                inserting ``each fiscal year in the biennium''; and
                    (B) striking ``that fiscal year and the ensuing 
                fiscal years'' and inserting ``all fiscal years''.
    (l) Maximum Deficit Amount Point of Order.--Section 312(c) of the 
Congressional Budget Act of 1974 (2 U.S.C. 643) is amended--
            (1) by striking ``for a fiscal year'' and inserting ``for a 
        biennium'';
            (2) in paragraph (1), by striking ``the first fiscal year'' 
        and inserting ``either fiscal year in the biennium'';
            (3) in paragraph (2), by striking ``that fiscal year'' and 
        inserting ``either fiscal year in the biennium''; and
            (4) in the matter following paragraph (2), by striking 
        ``that fiscal year'' and inserting ``the applicable fiscal 
        year''.

SEC. 303. AMENDMENTS TO TITLE 31, UNITED STATES CODE.

    (a) Definition.--Section 1101 of title 31, United States Code, is 
amended by adding at the end thereof the following new paragraph:
            ``(3) `biennium' has the meaning given to such term in 
        paragraph (11) of section 3 of the Congressional Budget and 
        Impoundment Control Act of 1974 (2 U.S.C. 622(11)).''.
    (b) Budget Contents and Submission to the Congress.--
            (1) Schedule.--The matter preceding paragraph (1) in 
        section 1105(a) of title 31, United States Code, is amended to 
        read as follows:
    ``(a) On or before the first Monday in February of each odd-
numbered year (or, if applicable, as provided by section 300(b) of the 
Congressional Budget Act of 1974), beginning with the One Hundred Tenth 
Congress, the President shall transmit to the Congress, the budget for 
the biennium beginning on October 1 of such calendar year. The budget 
of the United States Government transmitted under this subsection shall 
include a budget message and summary and supporting information. The 
President shall include in each budget the following:''.
            (2) Expenditures.--Section 1105(a)(5) of title 31, United 
        States Code, is amended by striking ``the fiscal year for which 
        the budget is submitted and the 4 fiscal years after that 
        year'' and inserting ``each fiscal year in the biennium for 
        which the budget is submitted and in the succeeding 4 fiscal 
        years''.
            (3) Receipts.--Section 1105(a)(6) of title 31, United 
        States Code, is amended by striking ``the fiscal year for which 
        the budget is submitted and the 4 fiscal years after that 
        year'' and inserting ``each fiscal year in the biennium for 
        which the budget is submitted and in the succeeding 4 years''.
            (4) Balance statements.--Section 1105(a)(9)(C) of title 31, 
        United States Code, is amended by striking ``the fiscal year'' 
        and inserting ``each fiscal year in the biennium''.
            (5) Functions and activities.--Section 1105(a)(12) of title 
        31, United States Code, is amended in subparagraph (A), by 
        striking ``the fiscal year'' and inserting ``each fiscal year 
        in the biennium''.
            (6) Allowances.--Section 1105(a)(13) of title 31, United 
        States Code, is amended by striking ``the fiscal year'' and 
        inserting ``each fiscal year in the biennium''.
            (7) Allowances for uncontrolled expenditures.--Section 
        1105(a)(14) of title 31, United States Code, is amended by 
        striking ``that year'' and inserting ``each fiscal year in the 
        biennium for which the budget is submitted''.
            (8) Tax expenditures.--Section 1105(a)(16) of title 31, 
        United States Code, is amended by striking ``the fiscal year'' 
        and inserting ``each fiscal year in the biennium''.
            (9) Future years.--Section 1105(a)(17) of title 31, United 
        States Code, is amended by--
                    (A) striking ``the fiscal year following the fiscal 
                year'' and inserting ``each fiscal year in the biennium 
                following the biennium'';
                    (B) striking ``that following fiscal year'' and 
                inserting ``each such fiscal year''; and
                    (C) striking ``fiscal year before the fiscal year'' 
                and inserting ``biennium before the biennium''.
            (10) Prior year outlays.--Section 1105(a)(18) of title 31, 
        United States Code, is amended by--
                    (A) striking ``the prior fiscal year'' and 
                inserting ``each of the 2 most recently completed 
                fiscal years,'';
                    (B) striking ``for that year'' and inserting ``with 
                respect to those fiscal years''; and
                    (C) striking ``in that year'' and inserting ``in 
                those fiscal years''.
            (11) Prior year receipts.--Section 1105(a)(19) of title 31, 
        United States Code, is amended by--
                    (A) striking ``the prior fiscal year'' and 
                inserting ``each of the 2 most recently completed 
                fiscal years'';
                    (B) striking ``for that year'' and inserting ``with 
                respect to those fiscal years''; and
                    (C) striking ``in that year'' each place it appears 
                and inserting ``in those fiscal years''.
    (c) Estimated Expenditures of Legislative and Judicial Branches.--
Section 1105(b) of title 31, United States Code, is amended by striking 
``each year'' and inserting ``each even-numbered year''.
    (d) Recommendations To Meet Estimated Deficiencies.--Section 
1105(c) of title 31, United States Code, is amended by--
            (1) striking ``the fiscal year for'' the first place it 
        appears and inserting ``each fiscal year in the biennium for'';
            (2) striking ``the fiscal year for'' the second place it 
        appears and inserting ``each fiscal year of the biennium, as 
        the case may be, for''; and
            (3) striking ``for that year'' and inserting ``for each 
        fiscal year of the biennium''.
    (e) Capital Investment Analysis.--Section 1105(e)(1) of title 31, 
United States Code, is amended by striking ``ensuing fiscal year'' and 
inserting ``biennium to which such budget relates''.
    (f) Supplemental Budget Estimates and Changes.--
            (1) In general.--Section 1106(a) of title 31, United States 
        Code, is amended--
                    (A) in the matter preceding paragraph (1), by--
                            (i) inserting after ``Before July 16 of 
                        each year'' the following: ``and February 15 of 
                        each even-numbered year''; and
                            (ii) striking ``fiscal year'' and inserting 
                        ``biennium'';
                    (B) in paragraph (1), by striking ``that fiscal 
                year'' and inserting ``each fiscal year in such 
                biennium'';
                    (C) in paragraph (2), by striking ``fiscal year'' 
                and inserting ``biennium''; and
                    (D) in paragraph (3), by striking ``fiscal year'' 
                and inserting ``biennium''.
            (2) Changes.--Section 1106(b) of title 31, United States 
        Code, is amended by--
                    (A) striking ``the fiscal year'' and inserting 
                ``each fiscal year in the biennium'';
                    (B) inserting after ``Before July 16 of each year'' 
                the following: ``and February 15 of each even-numbered 
                year''; and
                    (C) striking ``submitted before July 16'' and 
                inserting ``required by this subsection''.
    (g) Current Programs and Activities Estimates.--
            (1) In general.--Section 1109(a) of title 31, United States 
        Code, is amended by--
                    (A) striking ``On or before the first Monday after 
                January 3 of each year (on or before February 5 in 
                1986)'' and inserting ``At the same time the budget 
                required by section 1105 is submitted for a biennium''; 
                and
                    (B) striking ``the following fiscal year'' and 
                inserting ``each fiscal year of such period''.
            (2) Joint economic committee.--Section 1109(b) of title 31, 
        United States Code, is amended by striking ``March 1 of each 
        year'' and inserting ``within 6 weeks of the President's budget 
        submission for each odd-numbered year (or, if applicable, as 
        provided by section 300(b) of the Congressional Budget Act of 
        1974)''.
    (h) Year-Ahead Requests for Authorizing Legislation.--Section 1110 
of title 31, United States Code, is amended by--
            (1) striking ``May 16'' and inserting ``March 31''; and
            (2) striking ``year before the year in which the fiscal 
        year begins'' and inserting ``calendar year preceding the 
        calendar year in which the biennium begins''.

SEC. 304. TWO-YEAR APPROPRIATIONS; TITLE AND STYLE OF APPROPRIATIONS 
              ACTS.

    Section 105 of title 1, United States Code, is amended to read as 
follows:
``Sec. 105. Title and style of appropriations Acts
    ``(a) The style and title of all Acts making appropriations for the 
support of the Government shall be as follows: `An Act making 
appropriations (here insert the object) for each fiscal year in the 
biennium of fiscal years (here insert the fiscal years of the 
biennium).'.
    ``(b) All Acts making regular appropriations for the support of the 
Government shall be enacted for a biennium and shall specify the amount 
of appropriations provided for each fiscal year in such period.
    ``(c) For purposes of this section, the term `biennium' has the 
same meaning as in section 3(11) of the Congressional Budget and 
Impoundment Control Act of 1974 (2 U.S.C. 622(11)).''.

SEC. 305. MULTIYEAR AUTHORIZATIONS.

    (a) In General.--Title III of the Congressional Budget Act of 1974 
is amended by adding at the end the following new section:

                   ``authorizations of appropriations

    ``Sec. 316.  (a) Point of Order.--It shall not be in order in the 
Senate or the House of Representatives to consider--
            ``(1) any bill, joint resolution, amendment, motion, or 
        conference report that authorizes appropriations for a period 
        of less than 2 fiscal years, unless the program, project, or 
        activity for which the appropriations are authorized will 
        require no further appropriations and will be completed or 
        terminated after the appropriations have been expended; and
            ``(2) in any odd-numbered year, any authorization or 
        revenue bill or joint resolution until Congress completes 
        action on the biennial budget resolution, all regular biennial 
        appropriations bills, and all reconciliation bills.
    ``(b) Applicability.--In the Senate, subsection (a) shall not apply 
to--
            ``(1) any measure that is privileged for consideration 
        pursuant to a rule or statute;
            ``(2) any matter considered in Executive Session; or
            ``(3) an appropriations measure or reconciliation bill.''.
    (b) Amendment to Table of Contents.--The table of contents set 
forth in section 1(b) of the Congressional Budget and Impoundment 
Control Act of 1974 is amended by adding after the item relating to 
section 315 the following new item:

``Sec. 316. Authorizations of appropriations.''.

SEC. 306. GOVERNMENT PLANS ON A BIENNIAL BASIS.

    (a) Strategic Plans.--Section 306 of title 5, United States Code, 
is amended--
            (1) in subsection (a), by striking ``September 30, 1997'' 
        and inserting ``September 30, 2007'';
            (2) in subsection (b) by--
                    (A) striking ``five years forward'' and inserting 
                ``6 years forward'';
                    (B) striking ``at least every three years'' and 
                inserting ``at least every 4 years''; and
                    (C) striking beginning with ``, except that'' 
                through ``four years''; and
            (3) in subsection (c), by inserting a comma after 
        ``section'' the second place it appears and adding ``including 
        a strategic plan submitted by September 30, 2008 meeting the 
        requirements of subsection (a)''.
    (b) Budget Contents and Submission to Congress.--Paragraph (28) of 
section 1105(a) of title 31, United States Code, is amended by striking 
``beginning with fiscal year 1999, a'' and inserting ``beginning with 
fiscal year 2008, a biennial''.
    (c) Performance Plans.--Section 1115 of title 31, United States 
Code, is amended--
            (1) in subsection (a)--
                    (A) in the matter before paragraph (1) by striking 
                ``an annual'' and inserting ``a biennial'';
                    (B) in paragraph (1) by inserting after ``program 
                activity'' the following: ``for both years 1 and 2 of 
                the biennial plan'';
                    (C) in paragraph (5) by striking ``and'' after the 
                semicolon ;
                    (D) in paragraph (6) by striking the period and 
                inserting a semicolon; and inserting ``and'' after the 
                inserted semicolon; and
                    (E) by adding after paragraph (6) the following:
            ``(7) cover a 2-year period beginning with the first fiscal 
        year of the next biennial budget cycle.'';
            (2) in subsection (d) by striking ``annual'' and inserting 
        ``biennial''; and
            (3) in paragraph (6) of subsection (g) by striking 
        ``annual'' and inserting ``biennial''.
    (d) Managerial Accountability and Flexibility.--Section 9703 of 
title 31, United States Code, relating to managerial accountability, is 
amended--
            (1) in subsection (a)--
                    (A) in the first sentence by striking ``annual''; 
                and
                    (B) by striking ``section 1105(a)(29)'' and 
                inserting ``section 1105(a)(28)''; and
            (2) in subsection (e)--
                    (A) in the first sentence by striking ``one or'' 
                before ``years'';
                    (B) in the second sentence by striking ``a 
                subsequent year'' and inserting ``a subsequent 2-year 
                period''; and
                    (C) in the third sentence by striking ``three'' and 
                inserting ``4''.
    (e) Pilot Projects for Performance Budgeting.--Section 1119 of 
title 31, United States Code, is amended--
            (1) in paragraph (1) of subsection (d), by striking 
        ``annual'' and inserting ``biennial''; and
            (2) in subsection (e), by striking ``annual'' and inserting 
        ``biennial''.
    (f) Strategic Plans.--Section 2802 of title 39, United States Code, 
is amended--
            (1) in subsection (a), by striking ``September 30, 1997'' 
        and inserting ``September 30, 2008'';
            (2) in subsection (b), by striking ``five years forward'' 
        and inserting ``6 years forward'';
            (3) in subsection (b), by striking ``at least every three 
        years'' and inserting ``at least every 4 years''; and
            (4) in subsection (c), by inserting a comma after 
        ``section'' the second place it appears and inserting 
        ``including a strategic plan submitted by September 30, 2008 
        meeting the requirements of subsection (a)''.
    (g) Performance Plans.--Section 2803(a) of title 39, United States 
Code, is amended--
            (1) in the matter before paragraph (1), by striking ``an 
        annual'' and inserting ``a biennial'';
            (2) in paragraph (1), by inserting after ``program 
        activity'' the following: ``for both years 1 and 2 of the 
        biennial plan'';
            (3) in paragraph (5), by striking ``and'' after the 
        semicolon;
            (4) in paragraph (6), by striking the period and inserting 
        ``; and''; and
            (5) by adding after paragraph (6) the following:
            ``(7) cover a 2-year period beginning with the first fiscal 
        year of the next biennial budget cycle.''.
    (h) Committee Views of Plans and Reports.--Section 301(d) of the 
Congressional Budget Act (2 U.S.C. 632(d)) is amended by adding at the 
end ``Each committee of the Senate or the House of Representatives 
shall review the strategic plans, performance plans, and performance 
reports, required under section 306 of title 5, United States Code, and 
sections 1115 and 1116 of title 31, United States Code, of all agencies 
under the jurisdiction of the committee. Each committee may provide its 
views on such plans or reports to the Committee on the Budget of the 
applicable House.''.
    (i) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        take effect on the date of enactment of this Act.
            (2) Agency actions.--Effective on and after the date of 
        enactment of this Act, each agency shall take such actions as 
        necessary to prepare and submit any plan or report in 
        accordance with the amendments made by this Act.

SEC. 307. BIENNIAL APPROPRIATION BILLS.

    (a) In General.--Title III of the Congressional Budget Act of 1974 
(2 U.S.C. 631 et seq.) is amended by adding at the end the following:

            ``consideration of biennial appropriations bills

    ``Sec. 317.  It shall not be in order in the Senate or the House of 
Representatives in any odd-numbered year to consider any regular bill 
providing new budget authority or a limitation on obligations under the 
jurisdiction of any of the subcommittees of the Committees on 
Appropriations for only the first fiscal year of a biennium, unless the 
program, project, or activity for which the new budget authority or 
obligation limitation is provided will require no additional authority 
beyond 1 year and will be completed or terminated after the amount 
provided has been expended.''.
    (b) Amendment to Table of Contents.--The table of contents set 
forth in section 1(b) of the Congressional Budget and Impoundment 
Control Act of 1974 is amended by adding after the item relating to 
section 316 the following new item:

``Sec. 317. Consideration of biennial appropriations bills.''.

SEC. 308. REPORT ON CHANGES IN LAW.

    Not later than 60 days after the date of enactment of this Act, the 
Director of OMB shall report to the Committees on the Budget of the 
Senate and the House of Representatives any changes in law to the 
Congressional Budget Act of 1974 and the provisions of this Act 
required to conform with a biennial budget process.

SEC. 309. EFFECTIVE DATE.

    Except as provided in sections 306 and 308, this title and the 
amendments made by this Act shall take effect on January 1, 2008, and 
shall apply to budget resolutions and appropriations for the biennium 
beginning with fiscal year 2009.

                         TITLE IV--COMMISSIONS

        Subtitle A--National Commission on Entitlement Solvency

SEC. 401. DEFINITIONS.

    In this subtitle:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Centers for Medicare & Medicaid Services.
            (2) Calendar day.--The term ``calendar day'' means a 
        calendar day other than one in which either House is not in 
        session because of an adjournment of more than 3 days to a date 
        certain.
            (3) Commission.--The term ``Commission'' means the National 
        Commission on Entitlement Solvency established under section 
        402(a).
            (4) Commission bill.--The term ``Commission bill'' means a 
        bill consisting of the proposed legislative language provisions 
        of the Commission introduced under section 403(a).
            (5) Commissioner.--The term ``Commissioner'' means the 
        Commissioner of Social Security.
            (6) Long-term.--The term ``long-term'' means a period of 
        not less than 75 years beginning on the date of enactment of 
        this Act.
            (7) Medicaid.--The term ``Medicaid'' means the program 
        established under title XIX of the Social Security Act (42 
        U.S.C. 1396 et seq.).
            (8) Medicare.--The term ``Medicare'' means the program 
        established under title XVIII of the Social Security Act (42 
        U.S.C. 1395 et seq.).
            (9) Social security.--The term ``Social Security'' means 
        the program of old-age, survivors, and disability insurance 
        benefits established under title II of the Social Security Act 
        (42 U.S.C. 401 et seq.).

SEC. 402. ESTABLISHMENT OF COMMISSION.

    (a) Establishment.--There is established a commission to be known 
as the ``National Commission on Entitlement Solvency''.
    (b) Purpose.--The Commission shall conduct a comprehensive review 
of the Social Security, Medicare, and Medicaid programs for the 
following purposes:
            (1) Review.--Reviewing analyses of the current and long-
        term actuarial financial condition of the Social Security, 
        Medicare, and Medicaid programs.
            (2) Identifying problems.--Identifying problems that may 
        threaten the long-term solvency of the Social Security, 
        Medicare, and Medicaid programs.
            (3) Analyzing potential solutions.--Analyzing potential 
        solutions to problems that threaten the long-term solvency of 
        the Social Security, Medicare, and Medicaid programs.
            (4) Providing recommendations.--Providing recommendations 
        that will ensure the long-term solvency of the Social Security, 
        Medicare, and Medicaid programs and the provision of 
        appropriate benefits.
    (c) Duties.--
            (1) In general.--The Commission shall conduct a 
        comprehensive review of the Social Security, Medicare, and 
        Medicaid programs consistent with the purposes described in 
        subsection (b) and shall submit the report required under 
        paragraph (2).
            (2) Report and recommendations.--
                    (A) In general.--Not later than 120 days after the 
                date on which the Commission holds its first meeting, 
                the Commission shall submit a report on the long-term 
                solvency of the Social Security, Medicare, and Medicaid 
                programs that contains a detailed statement of the 
                findings, conclusions, and recommendations of the 
                Commission to the President, Congress, the 
                Commissioner, and the Administrator.
                    (B) Approval of report.--The report of the 
                Commission submitted under subparagraph (A) shall 
                require the approval of not less than 12 members of the 
                Commission.
                    (C) Legislative language.--If a recommendation 
                submitted under subparagraph (A) involves legislative 
                action, the report shall include proposed legislative 
                language to carry out such action.
    (d) Appointment of Members.--
            (1) In general.--
                    (A) Membership.--The membership of the commission 
                shall not exceed 16 members appointed pursuant to 
                subparagraph (B) as voting members and 3 nonvoting 
                members described in subparagraph (C).
                    (B) Voting members.--
                            (i) In general.--Voting members of the 
                        commission shall be appointed as follows:
                                    (I) The President shall appoint 2 
                                members, 1 of whom shall be the 
                                Secretary of the Treasury.
                                    (II) The majority leader of the 
                                Senate shall appoint 4 members.
                                    (III) The minority leader of the 
                                Senate shall appoint 3 members.
                                    (IV) The Speaker of the House of 
                                Representatives shall appoint 4 
                                members.
                                    (V) The minority leader of the 
                                House of Representatives shall appoint 
                                3 members.
                            (ii) Congressional appointees.--The members 
                        of the Commission appointed under subclauses 
                        (II), (III), (IV), and (V) of clause (i) shall 
                        be Members of Congress.
                    (C) Non-voting member.--The following shall be 
                nonvoting members of the Commission and shall advise 
                and assist at the request of the Commission:
                            (i) The Chief Actuary of the Social 
                        Security Administration.
                            (ii) The Chief Actuary of the Centers for 
                        Medicare & Medicaid Services.
                            (iii) The Director of the Congressional 
                        Budget Office.
            (2) Chairperson.--The Secretary of the Treasury shall be 
        the chairperson of the Commission.
            (3) Date.--Members of the Commission shall be appointed by 
        not later than 30 days after the date of enactment of this Act.
            (4) Period of appointment.--Members shall be appointed for 
        the life of the Commission. Any vacancy in the Commission shall 
        not affect its powers, but shall be filled in the same manner 
        as the original appointment.
            (5) Termination.--The Commission shall terminate on the 
        date that is 90 days after the Commission submits the report 
        required under subsection (c)(2).
    (e) Administration.--
            (1) Quorum.--Eight members of the Commission shall 
        constitute a quorum for purposes of voting, but a quorum is not 
        required for members to meet and hold hearings.
            (2) Meetings.--The Commission shall meet at the call of the 
        chairperson or a majority of its members.
            (3) Hearings.--Subject to paragraph (7), the Commission 
        may, for the purpose of carrying out this Act--
                    (A) hold such hearings, sit and act at such times 
                and places, take such testimony, receive such evidence, 
                and administer such oaths the Commission considers 
                advisable;
                    (B) require, by subpoena or otherwise, the 
                attendance and testimony of such witnesses the 
                Commission considers advisable; and
                    (C) require, by subpoena or otherwise, the 
                production of such books, records, correspondence, 
                memoranda, papers, documents, tapes, and other 
                evidentiary materials relating to any matter under 
                investigation by the Commission.
            (4) Subpoenas.--
                    (A) Issuance.--
                            (i) In general.--A subpoena may be issued 
                        under this subsection only--
                                    (I) by the chairperson; or
                                    (II) by the affirmative vote of 8 
                                members of the Commission.
                            (ii) Signature.--Subpoenas issued under 
                        this subsection may be issued under the 
                        signature of the chairperson of the Commission 
                        and may be served by any person designated by 
                        the chairperson or by a member designated by a 
                        majority of the Commission.
                    (B) Enforcement.--In the case of contumacy or 
                failure to obey a subpoena issued under this 
                subsection, the United States district court for the 
                judicial district in which the subpoenaed person 
                resides, is served, or may be found, may issue an order 
                requiring such person to appear at any designated place 
                to testify or to produce documentary or other evidence. 
                Any failure to obey the order of the court may be 
                punished by the court as a contempt of that court.
            (5) Compensation.--Members of the Commission shall serve 
        without any additional compensation for their work on the 
        Commission. However, members may be allowed travel expenses, 
        including per diem in lieu of subsistence, in accordance with 
        sections 5702 and 5703 of title 5, United States Code, while 
        away from their homes or regular places of business in 
        performance of services for the Commission.
            (6) Staff.--
                    (A) In general.--With the approval of a majority of 
                the Commission, the chairperson of the Commission may 
                appoint an executive director and such other additional 
                personnel as may be necessary to enable the Commission 
                to perform its duties.
                    (B) Actuarial experts and consultants.--With the 
                approval of a majority of the Commission, the Executive 
                Director may procure temporary and intermittent 
                services under section 3109(b) of title 5, United 
                States Code.
                    (C) Compensation.--Upon the approval of the 
                chairperson, the executive director may fix the 
                compensation of the executive director and other 
                personnel without regard to chapter 51 and subchapter 
                III of chapter 53 of title 5, United States Code, 
                relating to classification of positions and General 
                Schedule pay rates, except that the rate of pay for the 
                executive director and other personnel may not exceed 
                the maximum rate payable for a position at GS-15 of the 
                General Schedule under section 5332 of such title.
                    (D) Personnel as federal employees.--
                            (i) In general.--The executive director and 
                        any personnel of the Commission who are 
                        employees shall be employees under section 2105 
                        of title 5, United States Code, for purposes of 
                        chapters 63, 81, 83, 84, 85, 87, 89, 89A, 89B, 
                        and 90 of that title.
                            (ii) Members of commission.--Clause (i) 
                        shall not be construed to apply to members of 
                        the Commission.
                    (E) Federal agencies.--
                            (i) Detail of government employees.--Upon 
                        the request of the Commission, the head of any 
                        Federal agency may detail, without 
                        reimbursement by the Commission, any of the 
                        personnel of such agency to the Commission to 
                        assist in carrying out the duties of the 
                        Commission. Any such detail shall not interrupt 
                        or otherwise affect the civil service status or 
                        privileges of the Federal employee.
                            (ii) Technical assistance.--Upon the 
                        request of the Commission, the head of a 
                        Federal agency shall provide such technical 
                        assistance to the Commission as the Commission 
                        determines to be necessary to carry out its 
                        duties.
            (7) Information.--
                    (A) Resources.--The Commission shall have 
                reasonable access to materials, resources, statistical 
                data, and other information the Commission determines 
                to be necessary to carry out its duties from the 
                Library of Congress, the Chief Actuary of the Social 
                Security Administration, the Chief Actuary of the 
                Centers for Medicare & Medicaid Services, the 
                Congressional Budget Office, and other agencies and 
                representatives of the executive and legislative 
                branches of the Federal Government. The chairperson 
                shall make requests for such access in writing when 
                necessary.
                    (B) Receipt, handling, storage, and dissemination 
                of information.--Information shall only be received, 
                handled, stored, and disseminated by members of the 
                Commission and its staff consistent with all applicable 
                statutes, regulations, and Executive orders.
                    (C) Limitation of access to tax information.--
                Information requested, subpoenaed, or otherwise 
                accessed under this subtitle shall not include tax data 
                from the United States Internal Revenue Service, the 
                release of which would otherwise be in violation of 
                law.
            (8) Postal services.--The Commission may use the United 
        States mails in the same manner and under the same conditions 
        as other departments and agencies of the Federal Government.
    (f) Funding.--The Commission shall receive, from amounts 
appropriated to the Commissioner and the Administrator, respectively, 
for fiscal year 2008 for administrative expenses, such sums as are 
necessary to carry out the purposes of this section.

SEC. 403. EXPEDITED CONSIDERATION OF COMMISSION RECOMMENDATIONS.

    (a) Introduction and Committee Consideration.--
            (1) Introduction.--The aggregate legislative language 
        provisions submitted pursuant to section 402(c)(2)(C) shall be 
        combined into a Commission bill to be introduced in the Senate 
        by the majority leader, or the majority leader's designee, and 
        in the House of Representatives, by the Speaker, or the 
        Speaker's designee. Upon such introduction, the Commission bill 
        shall be referred to the appropriate committees of Congress 
        under paragraph (2). If the Commission bill is not introduced 
        in accordance with the preceding sentence, then any member of 
        Congress may introduce the Commission bill in their respective 
        House of Congress beginning on the date that is the 5th 
        calendar day that such House is in session following the date 
        of the submission of such aggregate legislative language 
        provisions.
            (2) Committee consideration.--
                    (A) Referral.--A Commission bill introduced in the 
                Senate shall be referred to the Committee on Finance of 
                the Senate. A Commission bill introduced in the House 
                of Representatives shall be referred to the Committee 
                on Ways and Means and the Committee on Energy and 
                Commerce of the House of Representatives.
                    (B) Reporting.--Not later than 30 calendar days 
                after the introduction of the Commission bill, each 
                Committee of Congress to which the Commission bill was 
                referred shall report such bill or such bill as amended 
                by the committee. All committee amendments must comply 
                with the requirements of section 402(b)(4).
                    (C) Discharge of committee.--If a committee to 
                which is referred a Commission bill has not reported a 
                Commission bill or such bill as amended, at the end of 
                30 calendar days after its introduction or at the end 
                of the first day after there has been reported to the 
                House involved a Commission bill or such bill as 
                amended, whichever is earlier, such committee shall be 
                deemed to be discharged from further consideration of 
                such Commission bill, and such Commission bill shall be 
                placed on the appropriate calendar of the House 
                involved.
    (b) Expedited Procedure.--
            (1) Consideration.--
                    (A) In general.--Not later than 5 days of session 
                after the date on which a committee reports a 
                Commission bill, or such bill as amended, or has been 
                discharged from consideration of a Commission bill, the 
                majority leader of the Senate, or the majority leader's 
                designee, or the Speaker of the House of 
                Representatives, or the Speaker's designee, shall move 
                to proceed to the consideration of the Commission bill 
                or such bill as amended. It shall also be in order for 
                any member of the Senate or the House of 
                Representatives, respectively, to move to proceed to 
                the consideration of the Commission bill at any time 
                after the conclusion of such 5-day period.
                    (B) Motion to proceed.--A motion to proceed to the 
                consideration of the Commission bill is highly 
                privileged in the House of Representatives and is 
                privileged in the Senate and is not debatable. The 
                motion is not subject to amendment or to a motion to 
                postpone consideration of the Commission bill. A motion 
                to proceed to the consideration of other business shall 
                not be in order. A motion to reconsider the vote by 
                which the motion to proceed is agreed to or not agreed 
                to shall not be in order. If the motion to proceed is 
                agreed to, the Senate or the House of Representatives, 
                as the case may be, shall immediately proceed to 
                consideration of the Commission bill without 
                intervening motion, order, or other business, and the 
                Commission bill shall remain the unfinished business of 
                the Senate or the House of Representatives, as the case 
                may be, until disposed of.
                    (C) In the senate.--
                            (i) Consideration.--In the Senate, 
                        consideration of the Commission bill and all 
                        amendments thereto and on all debatable motions 
                        and appeals in connection therewith shall be 
                        limited to not more than 50 hours, which shall 
                        be divided equally between those favoring and 
                        those opposing amendments to the Commission 
                        bill or the Commission bill. A motion further 
                        to limit debate on the Commission bill is in 
                        order and is not debatable. All time used for 
                        consideration of the Commission bill, including 
                        time used for quorum calls (except quorum calls 
                        immediately preceding a vote) and voting, shall 
                        be counted against the 50 hours of 
                        consideration.
                            (ii) Amendments.--No amendment that is not 
                        germane to the provisions of committee 
                        amendments to the Commission bill or the 
                        Commission bill shall be in order in the 
                        Senate. All amendments must comply with the 
                        requirements of section 402(b)(4). In the 
                        Senate, an amendment, any amendment to an 
                        amendment, or any debatable motion or appeal is 
                        debatable for not to exceed 1 hour, to be 
                        divided equally between those favoring and 
                        those opposing the amendment, motion, or 
                        appeal.
                            (iii) Motion to recommit.--
                                    (I) Vote.--Upon expiration of the 
                                time for consideration of the 
                                Commission bill, the measure shall be 
                                recommitted to the Committee on Finance 
                                of the Senate for further consideration 
                                unless by a \3/5\ vote of the Members, 
                                duly chosen and sworn, the Senate 
                                agrees to proceed to final passage.
                                    (II) Recommital.--If the bill is 
                                recommitted under subclause (I), any 
                                new amendments to the Commission bill 
                                shall be considered under the 
                                provisions of section 402(b)(4).
                            (iv) Vote on final passage.--In the Senate, 
                        immediately following the conclusion of 
                        consideration of the Commission bill, the 
                        disposition of any pending amendments under 
                        clause (ii), a motion to recommit under clause 
                        (iii), and a request to establish the presence 
                        of a quorum, the vote on final passage of the 
                        Commission bill shall occur.
                            (v) Other motions not in order.--A motion 
                        to postpone or a motion to proceed to the 
                        consideration of other business is not in order 
                        in the Senate. A motion to reconsider the vote 
                        by which the Commission bill is agreed to or 
                        not agreed to is not in order in the Senate.
            (2) Conference.--
                    (A) Proceeding to conference.--If, after a 
                Commission bill is agreed to in the Senate or House of 
                Representatives, the Commission bill has been amended, 
                the Commission bill shall be deemed to be at a stage of 
                disagreement and motions to proceed to conference are 
                deemed to be agreed to. There shall be no motions to 
                instruct. The Senate and the House of Representatives 
                shall appoint conferees after the vote of the second 
                House that results in such disagreement without any 
                intervening action or debate. In the event that 
                conferees are not appointed in accordance with the 
                preceding sentence, the following shall be deemed to be 
                the duly appointed conferees:
                            (i) The majority leader of the Senate or 
                        the majority leader's designee.
                            (ii) The Speaker of the House of 
                        Representatives or the Speaker's designee
                            (iii) The Chairman and Ranking Member of 
                        the Senate Committee on the Budget.
                            (iv) The Chairman and Ranking Member of the 
                        Senate Committee on Finance.
                            (v) The Chairman and Ranking Member of the 
                        Committee on the Budget of the House of 
                        Representatives.
                            (vi) The Chairman and Ranking Member of the 
                        Committee on Ways and Means of the House of 
                        Representatives.
                            (vii) The Chairman and Ranking Member of 
                        the Committee on Energy and Commerce of the 
                        House of Representatives.
                    (B) Motion to proceed in the senate.--The motion to 
                proceed to consideration in the Senate of the 
                conference report on the Commission bill may be made 
                even though a previous motion to the same effect has 
                been disagreed to.
                    (C) Procedure.--Debate on the conference report on 
                the Commission bill considered under this section shall 
                be limited to 20 hours equally divided between the 
                manager of the conference report and the minority 
                leader, or his designee.
                    (D) Final passage.--A vote on final passage of the 
                conference report on the Commission bill shall be taken 
                in the Senate and the House of Representatives on or 
                before the close of the 10th day of session of that 
                House after the date the conference report is submitted 
                in that House. If the conference report is passed, the 
                Secretary of the Senate or the Clerk of the House of 
                Representatives, as the case may be, shall cause the 
                conference report to be transmitted to the other House 
                before the close of the next day of session of that 
                House.
                    (E) Action of senate.--
                            (i) In general.--If the Senate has received 
                        from the House the conference report on the 
                        Commission bill prior to the vote required 
                        under subparagraph (E), then the Senate shall 
                        consider, and the vote under subparagraph (E) 
                        shall occur on, the House conference report or 
                        the version of the Commission bill passed by 
                        the House.
                            (ii) Motion to recommit.--
                                    (I) Vote.--Upon expiration of the 
                                time for consideration, the conference 
                                report on the Commission bill shall be 
                                recommitted to the Committee of 
                                Conference for further consideration 
                                unless by a \3/5\ vote of the Senate, 
                                duly chosen and sworn, the Senate 
                                agrees to proceed to final passage.
                                    (II) Recommital.--If the conference 
                                report is recommitted under subclause 
                                (I), the conference report accompanying 
                                the bill shall be recommitted to the 
                                Conference Committee or it shall be in 
                                order to immediately proceed without 
                                intervening action to consideration of 
                                the motions for a new conference.
                    (F) Conference report defeated.--Should the 
                conference report be defeated, the provisions of this 
                subsection shall apply to any request for a new 
                conference and the appointment of conferees.
            (3) No suspension.--No motion to suspend the application of 
        this subsection shall be in order in the Senate or in the House 
        of Representatives, nor shall it be in order in the House of 
        Representatives to suspend the application of this subsection 
        by unanimous consent.
    (c) Rules of the Senate and the House of Representatives.--This 
section is enacted by Congress--
            (1) as an exercise of the rulemaking power of the Senate 
        and the House of Representatives, respectively, and is deemed 
        to be part of the rules of each House, respectively, but 
        applicable only with respect to the procedure to be followed in 
        that House in the case of a Commission bill, and it supersedes 
        other rules only to the extent that it is inconsistent with 
        such rules; and
            (2) with full recognition of the constitutional right of 
        either House to change the rules (so far as they relate to the 
        procedure of that House) at any time, in the same manner, and 
        to the same extent as in the case of any other rule of that 
        House.

 Subtitle B--Commission on Congressional Budgetary Accountability and 
                       Review of Federal Agencies

SEC. 411. DEFINITIONS.

    In this subtitle:
            (1) Agency.--The term ``agency'' means--
                    (A) an Executive agency, as defined under section 
                105 of title 5, United States Code; and
                    (B) the Executive Office of the President.
            (2) Calendar day.--The term ``calendar day'' means a 
        calendar day other than 1 on which either House is not in 
        session because of an adjournment of more than 3 days to a date 
        certain.
            (3) Commission bill.--The term ``Commission bill'' means 
        only a bill which is introduced as provided under section 416, 
        and contains the proposed legislation included in the report 
        submitted to Congress under section 413(b)(3), without 
        modification.
            (4) Program.--The term ``program'' means any activity or 
        function of an agency.

SEC. 412. ESTABLISHMENT OF COMMISSION.

    (a) Establishment.--There is established the Commission on 
Congressional Budgetary Accountability and Review of Federal Agencies 
(referred to in this subtitle as the ``Commission'').
    (b) Membership.--
            (1) In general.--The Commission shall consist of 15 
        members, of which, not later than 30 days after the date of 
        enactment of this Act--
                    (A) 3 shall be appointed by the President;
                    (B) 3 shall be appointed by the majority leader of 
                the Senate;
                    (C) 3 shall be appointed by the minority leader of 
                the Senate;
                    (D) 3 shall be appointed by the Speaker of the 
                House of Representatives; and
                    (E) 3 shall be appointed by the minority leader of 
                the House of Representatives.
            (2) Cochairpersons.--The President shall designate 2 
        Cochairpersons from among the members of the Commission. The 
        Cochairpersons may not be affiliated with the same political 
        party.
    (c) Date.--Members of the Commission shall be appointed by not 
later than 30 days after the date of enactment of this Act.
    (d) Period of Appointment; Vacancies.--Members shall be appointed 
for the life of the Commission. Any vacancy in the Commission shall not 
affect its powers, but shall be filled in the same manner as the 
original appointment.
    (e) Meetings.--
            (1) Initial meeting.--Not later than 30 days after the date 
        on which all members of the Commission have been appointed, the 
        Commission shall hold its first meeting.
            (2) Subsequent meetings.--The Commission shall meet at the 
        call of the Cochairpersons or a majority of its members.
    (f) Quorum.--Eight members of the Commission shall constitute a 
quorum for purposes of voting, but a quorum is not required for members 
to meet and hold hearings.

SEC. 413. DUTIES OF THE COMMISSION.

    (a) Systematic Assessment of Programs by the President.--
            (1) In general.--Not later than 1 year after the date of 
        enactment of this Act and each of the next 3 years thereafter, 
        the President shall--
                    (A) establish a systematic method for assessing the 
                effectiveness and accountability of agency programs in 
                accordance with paragraph (2) and divide the programs 
                into 4 approximately equal budgetary parts based on the 
                size of the budget and number of personnel of the 
                agency program; and
                    (B) submit, to the Commission each year, an 
                assessment of the programs within each part (1 each 
                year) that use the method established under 
                subparagraph (A).
            (2) Method objectives.--The method established under 
        paragraph (1) shall--
                    (A) recognize different types of Federal programs;
                    (B) assess programs based on the achievement of 
                performance goals (as defined under section 1115(g)(4) 
                of title 31, United States Code);
                    (C) assess programs based in part on the adequacy 
                of the program's performance measures, financial 
                management, and other factors determined by the 
                President;
                    (D) assess programs based in part on whether the 
                program has fulfilled the legislative intent 
                surrounding the creation of the program, taking into 
                account any change in legislative intent during the 
                program's existence; and
                    (E) assess programs based in part on collaborative 
                analysis, with the program or agency, of program policy 
                and goals which may not fit into easily measurable 
                performance goals.
            (3) Common performance measures.--Not later than 1 year 
        after the date of enactment of this Act, the President shall 
        identify common performance measures for programs covered in 
        paragraph (1) that have similar functions and, to the extent 
        feasible, provide the Commission with data on such performance 
        measures.
    (b) Evaluation and Plan by Commission.--
            (1) Development.--The method established under subsection 
        (a) shall be subject to review and change by the Commission. If 
        the Commission makes any changes in the method, the Commission 
        shall notify Congress not later than 1 year after reviewing the 
        first assessment from the President under this section.
            (2) Consideration of assessments.--The Commission shall 
        consider assessments submitted under subsection (a) when 
        evaluating programs under this subsection.
            (3) Assessment and legislation.--
                    (A) In general.--The Commission shall--
                            (i) evaluate all agencies and programs 
                        within those agencies in each unit identified 
                        in the systemic assessment under subsection (a) 
                        (1 each year over the next 4 years), using the 
                        criteria under subsection (a) subject to 
                        modification under paragraph (1); and
                            (ii) submit to Congress each of the next 4 
                        years beginning January 1, 2008, with respect 
                        to each evaluation under clause (i)--
                                    (I) a plan with recommendations of 
                                the agencies and programs that should 
                                be realigned or eliminated within each 
                                part; and
                                    (II) proposed legislation to 
                                implement the plan described under 
                                subclause (I).
                    (B) Relocation of federal employees.--The proposed 
                legislation under subparagraph (A) shall provide that 
                if the position of an employee of an agency is 
                eliminated as a result of the implementation of the 
                plan under subparagraph (A)(i), the affected agency 
                shall make reasonable efforts to relocate such employee 
                to another position within the agency or within another 
                Federal agency.
            (4) Criteria.--
                    (A) Duplicative.--If 2 or more agencies or programs 
                are performing the same essential function and the 
                function can be consolidated or streamlined into a 
                single agency or program, the Commission shall 
                recommend that the agencies or programs be realigned.
                    (B) Wasteful or inefficient.--The Commission may 
                recommend the realignment or elimination of any agency 
                or program that has wasted Federal funds by--
                            (i) egregious spending;
                            (ii) mismanagement of resources and 
                        personnel; or
                            (iii) use of such funds for personal 
                        benefit or the benefit of a special interest 
                        group.
                    (C) Outdated, irrelevant, or failed.--The 
                Commission shall recommend the elimination of any 
                agency or program that--
                            (i) has completed its intended purpose;
                            (ii) has become irrelevant; or
                            (iii) has failed to meet its objectives.

SEC. 414. POWERS OF THE COMMISSION.

    (a) Hearings.--Subject to subsection (d), the Cochairpersons of the 
Commission may, for the purpose of carrying out this subtitle--
            (1) hold such hearings, sit and act at such times and 
        places, take such testimony, receive such evidence, and 
        administer such oaths as the chairperson of the Commission 
        considers advisable;
            (2) require, by subpoena or otherwise, the attendance and 
        testimony of such witnesses as the chairperson of the 
        Commission considers advisable; and
            (3) require, by subpoena or otherwise, the production of 
        such books, records, correspondence, memoranda, papers, 
        documents, tapes, and other evidentiary materials relating to 
        any matter under investigation by the Commission.
    (b) Subpoenas.--
            (1) Issuance.--
                    (A) In general.--A subpoena may be issued under 
                this subsection only by--
                            (i) the agreement of the Cochairpersons; or
                            (ii) the affirmative vote of 8 members of 
                        the Commission.
                    (B) Signature.--Subpoenas issued under this 
                subsection (a) may be issued under the signature of 
                both Cochairpersons of the Commission and may be served 
                by any person designated by the Cochairpersons or by a 
                member designated by a majority of the Commission.
            (2) Enforcement.--In the case of contumacy or failure to 
        obey a subpoena issued under subsection (a), the United States 
        district court for the judicial district in which the 
        subpoenaed person resides, is served, or may be found, may 
        issue an order requiring such person to appear at any 
        designated place to testify or to produce documentary or other 
        evidence. Any failure to obey the order of the court may be 
        punished by the court as a contempt of that court.
    (c) Technical Assistance.--Upon the request of the Commission, the 
head of a Federal agency shall provide such technical assistance to the 
Commission as the Commission determines to be necessary to carry out 
its duties.
    (d) Information.--
            (1) In general.--The Commission shall have reasonable 
        access to budgetary, performance or programmatic materials, 
        resources, statistical data, and other information the 
        Commission determines to be necessary to carry out its duties 
        from the Congressional Budget Office, and other agencies and 
        representatives of the executive and legislative branches of 
        the Federal Government. The Cochairpersons shall make requests 
        for such access in writing when necessary.
            (2) Receipt, handling, storage, and dissemination of 
        information.--Information shall only be received, handled, 
        stored, and disseminated by members of the Commission and its 
        staff consistent with all applicable statutes, regulations, and 
        Executive orders.
            (3) Limitation of access to personal tax information.--
        Information requested, subpoenaed, or otherwise accessed under 
        this subtitle shall not include tax data from the United States 
        Internal Revenue Service, the release of which would otherwise 
        be in violation of law.
    (e) Receipt, Handling, Storage, and Dissemination of Information.--
Information shall only be received, handled, stored, and disseminated 
by members of the Commission and its staff consistent with all 
applicable statutes, regulations, and Executive orders.
    (f) Postal Services.--The Commission may use the United States 
mails in the same manner and under the same conditions as other 
departments and agencies of the Federal Government.

SEC. 415. COMMISSION PERSONNEL MATTERS.

    (a) Compensation of Members.--
            (1) Non-federal members.--Except as provided under 
        subsection (b), each member of the Commission who is not an 
        officer or employee of the Federal Government shall not be 
        compensated.
            (2) Federal officers or employees.--All members of the 
        Commission who are officers or employees of the United States 
        shall serve without compensation in addition to that received 
        for their services as officers or employees of the United 
        States.
    (b) Travel Expenses.--The members of the Commission shall be 
allowed travel expenses, including per diem in lieu of subsistence, at 
rates authorized for employees of agencies under subchapter I of 
chapter 57 of title 5, United States Code, while away from their homes 
or regular places of business in the performance of services for the 
Commission.
    (c) Staff.--
            (1) In general.--With the approval of the majority of the 
        Commission, the Cochairpersons of the Commission may, appoint 
        an executive director and such other additional personnel as 
        may be necessary to enable the Commission to perform its 
        duties.
            (2) Compensation.--Upon the approval of the Cochairpersons, 
        the executive director may fix the compensation of the 
        executive director and other personnel without regard to 
        chapter 51 and subchapter III of chapter 53 of title 5, United 
        States Code, relating to classification of positions and 
        General Schedule pay rates, except that the rate of pay for the 
        executive director and other personnel may not exceed the 
        maximum rate payable for a position at GS-15 of the General 
        Schedule under section 5332 of such title.
            (3) Personnel as federal employees.--
                    (A) In general.--The executive director and any 
                personnel of the Commission who are employees shall be 
                employees under section 2105 of title 5, United States 
                Code, for purposes of chapters 63, 81, 83, 84, 85, 87, 
                89, 89A, 89B, and 90 of that title.
                    (B) Members of commission.--Subparagraph (A) shall 
                not be construed to apply to members of the Commission.
    (d) Detail of Government Employees.--Any Federal Government 
employee may be detailed to the Commission without reimbursement from 
the Commission, and such detail shall be without interruption or loss 
of civil service status or privilege.
    (e) Procurement of Temporary and Intermittent Services.--With the 
approval of the majority of the Commission, the chairperson of the 
Commission may procure temporary and intermittent services under 
section 3109(b) of title 5, United States Code, at rates for 
individuals which do not exceed the daily equivalent of the annual rate 
of basic pay prescribed for level V of the Executive Schedule under 
section 5316 of such title.

SEC. 416. EXPEDITED CONSIDERATION OF REFORM PROPOSALS.

    (a) Introduction and Committee Consideration.--
            (1) Introduction.--The Commission bill language provisions 
        submitted pursuant to section 413(b)(3) shall be introduced in 
        the Senate by the majority leader, or the majority leader's 
        designee, and in the House of Representatives, by the Speaker, 
        or the Speaker's designee. Upon such introduction, the 
        Commission bill shall be referred to the appropriate committees 
        of Congress under paragraph (2). If the Commission bill is not 
        introduced in accordance with the preceding sentence, then any 
        member of Congress may introduce the Commission bill in their 
        respective House of Congress beginning on the date that is the 
        5th calendar day that such House is in session following the 
        date of the submission of such aggregate legislative language 
        provisions.
            (2) Committee consideration.--
                    (A) Referral.--A Commission bill introduced under 
                paragraph (1) shall be referred to any appropriate 
                committee of jurisdiction in the Senate, any 
                appropriate committee of jurisdiction in the House of 
                Representatives, the Committee on the Budget of the 
                Senate and the Committee on the Budget of the House of 
                Representatives. A committee to which a Commission bill 
                is referred under this paragraph may review and comment 
                on such bill, may report such bill to the respective 
                House, and may not amend such bill.
                    (B) Reporting.--Not later than 30 calendar days 
                after the introduction of the Commission bill, each 
                Committee of Congress to which the Commission bill was 
                referred shall report the bill.
                    (C) Discharge of committee.--If a committee to 
                which is referred a Commission bill has not reported 
                such Commission bill at the end of 30 calendar days 
                after its introduction or at the end of the first day 
                after there has been reported to the House involved a 
                Commission bill, whichever is earlier, such committee 
                shall be deemed to be discharged from further 
                consideration of such Commission bill, and such 
                Commission bill shall be placed on the appropriate 
                calendar of the House involved.
    (b) Expedited Procedure.--
            (1) Consideration.--
                    (A) In general.--Not later than 5 calendar days 
                after the date on which a committee has reported a 
                Commission bill or been discharged from consideration 
                of a Commission bill, the majority leader of the 
                Senate, or the majority leader's designee, or the 
                Speaker of the House of Representatives, or the 
                Speaker's designee, shall move to proceed to the 
                consideration of the Commission bill. It shall also be 
                in order for any member of the Senate or the House of 
                Representatives, respectively, to move to proceed to 
                the consideration of the Commission bill at any time 
                after the conclusion of such 5-day period.
                    (B) Motion to proceed.--A motion to proceed to the 
                consideration of a Commission bill is highly privileged 
                in the House of Representatives and is privileged in 
                the Senate and is not debatable. The motion is not 
                subject to amendment or to a motion to postpone 
                consideration of the Commission bill. A motion to 
                proceed to the consideration of other business shall 
                not be in order. A motion to reconsider the vote by 
                which the motion to proceed is agreed to or not agreed 
                to shall not be in order. If the motion to proceed is 
                agreed to, the Senate or the House of Representatives, 
                as the case may be, shall immediately proceed to 
                consideration of the Commission bill without 
                intervening motion, order, or other business, and the 
                Commission bill shall remain the unfinished business of 
                the Senate or the House of Representatives, as the case 
                may be, until disposed of.
                    (C) Limited debate.--Debate on the Commission bill 
                and on all debatable motions and appeals in connection 
                therewith shall be limited to not more than 10 hours, 
                which shall be divided equally between those favoring 
                and those opposing the Commission bill. A motion 
                further to limit debate on the Commission bill is in 
                order and is not debatable. All time used for 
                consideration of the Commission bill, including time 
                used for quorum calls (except quorum calls immediately 
                preceding a vote) and voting, shall come from the 10 
                hours of debate.
                    (D) Amendments.--No amendment to the Commission 
                bill shall be in order in the Senate and the House of 
                Representatives.
                    (E) Vote on final passage.--Immediately following 
                the conclusion of the debate on the Commission bill, 
                the vote on final passage of the Commission bill shall 
                occur.
                    (F) Other motions not in order.--A motion to 
                postpone consideration of the Commission bill, a motion 
                to proceed to the consideration of other business, or a 
                motion to recommit the Commission bill is not in order. 
                A motion to reconsider the vote by which the Commission 
                bill is agreed to or not agreed to is not in order.
            (2) Consideration by other house.--If, before the passage 
        by one House of the Commission bill that was introduced in such 
        House, such House receives from the other House a Commission 
        bill as passed by such other House--
                    (A) the Commission bill of the other House shall 
                not be referred to a committee and may only be 
                considered for final passage in the House that receives 
                it under subparagraph (C);
                    (B) the procedure in the House in receipt of the 
                Commission bill of the other House, with respect to the 
                Commission bill that was introduced in the House in 
                receipt of the Commission bill of the other House, 
                shall be the same as if no Commission bill had been 
                received from the other House; and
                    (C) notwithstanding subparagraph (B), the vote on 
                final passage shall be on the Commission bill of the 
                other House.
        Upon disposition of a Commission bill that is received by one 
        House from the other House, it shall no longer be in order to 
        consider the Commission bill that was introduced in the 
        receiving House.
    (c) Rules of the Senate and the House of Representatives.--This 
section is enacted by Congress--
            (1) as an exercise of the rulemaking power of the Senate 
        and the House of Representatives, respectively, and is deemed 
        to be part of the rules of each House, respectively, but 
        applicable only with respect to the procedure to be followed in 
        that House in the case of a Commission bill, and it supersedes 
        other rules only to the extent that it is inconsistent with 
        such rules; and
            (2) with full recognition of the constitutional right of 
        either House to change the rules (so far as they relate to the 
        procedure of that House) at any time, in the same manner, and 
        to the same extent as in the case of any other rule of that 
        House.

SEC. 417. TERMINATION OF THE COMMISSION.

    The Commission shall terminate 90 days after the date on which the 
Commission submits the final evaluation and plan report under section 
413.

SEC. 418. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated such sums as may be 
necessary for carrying out this Act for each of the fiscal years 2008 
through 2012.

                    TITLE V--BUDGET PROCESS REFORMS

SEC. 501. DEFINITIONS.

    Section 3 of the Congressional Budget and Impoundment Control Act 
of 1974 (2 U.S.C. 622) is amended by--
            (1) redesignating paragraphs (3) through (10) as paragraphs 
        (7) through (14), respectively;
            (2) adding after paragraph (2) the following:
            ``(3) Direct spending and mandatory spending.--The terms 
        `direct spending' and `mandatory spending' mean--
                    ``(A) budget authority provided by law other than 
                appropriation Acts;
                    ``(B) budget authority provided in appropriation 
                Acts to satisfy entitlement obligations created by pre-
                existing authorization laws, also known as appropriated 
                entitlements; and
                    ``(C) entitlement authority.
            ``(4) Discretionary appropriations and discretionary budget 
        authority.--The terms `discretionary appropriations' and 
        `discretionary budget authority' mean budgetary resources 
        provided in appropriation Acts, except those budgetary 
        resources provided in appropriation Acts to fund mandatory 
        program requirements as authorized under current law at the 
        time of consideration of the appropriation measure.
            ``(5) Governmental receipts.--The term `governmental 
        receipts' means revenue or collections from the public based on 
        the government's exercise of its sovereign powers, including 
        but not limited to individual and corporate income taxes, 
        social insurance taxes, customs, fines, compulsory license 
        fees, deposits of earnings by the Federal Reserve System, 
        duties, tariffs, other fees, miscellaneous receipts, gifts, and 
        contributions.
            ``(6) Secondary or indirect effects.--The term `secondary 
        or indirect effects' means changes in direct spending or 
        government receipts other than the direct, observable effects 
        of changes in legislation on related accounts, including--
                    ``(A) the impact of changes in spending legislation 
                on Federal tax receipts or the impact of changes in 
                Federal tax laws on total Federal spending; or
                    ``(B) the impacts on spending or government 
                receipts if there is no statutory connection or 
                established interaction between a legislative proposal 
                and its impact on the operation of current law.''; and
            (3) adding at the end the following:
            ``(15) Budget year.--The term `budget year' means, with 
        respect to a session of Congress, the fiscal year of the 
        Government that starts on October 1 of the calendar year in 
        which that session begins.
            ``(16) Current year.--The term `current year' means, with 
        respect to a budget year, the fiscal year that immediately 
        precedes that budget year.''.

SEC. 502. ANNUAL CONCURRENT RESOLUTION ON THE BUDGET.

    Section 301 of the Congressional Budget Act of 1974 (2 U.S.C. 632) 
is amended--
            (1) in subsection (a)--
                    (A) in paragraph (2), by striking ``Federal 
                revenues'' both places it appears and inserting 
                ``governmental receipts'';
                    (B) in paragraph (4), by striking ``major 
                functional category'' and inserting ``standing, select, 
                or special committee of the House of Representatives 
                and the Senate, as appropriate,'';
                    (C) in paragraphs (6) and (7), by striking ``For'' 
                and inserting ``for''; and
                    (D) in the matter following paragraph (7), by 
                striking ``old age'' and inserting ``old-age'';
            (2) in subsection (b)--
                    (A) in paragraph (3), by striking ``entitlement 
                authority'' and inserting ``direct spending''; and
                    (B) in paragraph (7), by inserting ``is described 
                in detail to allow the Chairman of the Committee on the 
                Budget to determine whether it qualifies for such 
                revision and the legislation'' after ``that 
                legislation'';
            (3) in subsection (d)--
                    (A) in the caption, by striking ``and estimates 
                of'' and inserting ``, estimates, and recommendations 
                for deficit reduction from all'';
                    (B) in the first sentence, by striking ``its 
                views'' and inserting ``its specific recommendations 
                for changes in law within the jurisdiction of the 
                committee making the submission that result in deficit 
                reduction and its views''; and
                    (C) in the third sentence, by striking ``or 
                functions''; and
            (4) in subsection (e)--
                    (A) in paragraph (2) by--
                            (i) redesignating subparagraphs (B) through 
                        (D) as subparagraphs (C) through (E), 
                        respectively;
                            (ii) redesignating subparagraphs (E) and 
                        (F) as subparagraphs (G) and (H), respectively;
                            (iii) inserting after subparagraph (A) the 
                        following:
                    ``(B) with respect to the Committee on 
                Appropriations of the Senate and the House of 
                Representatives, an estimate of total new budget 
                authority and total outlays with the estimates divided 
                between discretionary and mandatory amounts''; and
                            (iv) by adding after subparagraph (E), as 
                        redesignated, the following:
                    ``(F) with respect to each standing, select, or 
                special committee of the Senate and the House of 
                Representatives, an estimate of governmental receipts 
                within the jurisdiction of that committee;''; and
                    (B) in paragraph (3)(B), by--
                            (i) striking ``Federal revenues'' and 
                        inserting ``governmental receipts''; and
                            (ii) striking ``such revenues'' and insert 
                        ``such governmental receipts''.

SEC. 503. COMMITTEE ALLOCATIONS.

    Section 302 of the Congressional Budget Act of 1974 (2 U.S.C. 
633(a)) is amended--
            (1) in subsection (a), by striking paragraph (3) and 
        inserting the following:
            ``(3) Further division of amounts in the house.--The 
        amounts allocated to each committee of the House of 
        Representatives for each fiscal year, other than the Committee 
        on Appropriations, shall be further divided between amounts 
        provided or required by law on the date of filing of that 
        conference report and amounts not so provided or required. The 
        amounts allocated to the Committee on Appropriations shall be 
        further divided between discretionary and mandatory amounts or 
        programs, as appropriate.''; and
            (2) in subsection (g)(2), by striking ``committee'' and 
        inserting ``Committee''.

SEC. 504. BUDGET RESOLUTION ADOPTION.

    Section 303(a) of the Congressional Budget Act of 1974 (2 U.S.C. 
634(a)) is amended to read as follows:
    ``(a) In General.--
            ``(1) Point of order.--Beginning on the first day of a new 
        session of Congress, and until the concurrent resolution for 
        the fiscal year beginning in October of the year the new 
        session of Congress begins has been agreed to, it shall not be 
        in order to consider with respect to the budget year covered by 
        that resolution, any bill or joint resolution, amendment or 
        motion thereto, or conference report thereon that--
                    ``(A) provides an increase in budget authority or 
                outlays for the current year or the budget year; and
                    ``(B) provides an increase or decrease in 
                governmental receipts during the current year or the 
                budget year.
            ``(2) Waiver and appeal.--
                    ``(A) In general.--Paragraph (1) may be waived or 
                suspended in the Senate only by an affirmative vote of 
                three-fifths of the Members, duly chosen and sworn. An 
                affirmative vote of three-fifths of the Members of the 
                Senate, duly chosen and sworn, shall be required in the 
                Senate to sustain an appeal of the ruling of the Chair 
                on a point of order raised under paragraph (1).
                    ``(B) Appeals.--Appeals in the Senate from the 
                decisions of the Chair relating to any provision of 
                paragraph (1) shall be limited to 1 hour, to be equally 
                divided between, and controlled by, the appellant and 
                the manager of the bill or joint resolution, as the 
                case may be. An affirmative vote of three-fifths of the 
                Members of the Senate, duly chosen and sworn, shall be 
                required to sustain an appeal of the ruling of the 
                Chair on a point of order raised under paragraph 
                (1).''.

SEC. 505. PROCEDURE IN THE SENATE FOR BUDGET RESOLUTIONS.

    In the Senate, section 305(b) of the Congressional Budget Act of 
1974 is amended by--
            (1) redesignating paragraphs (3) through (6) as paragraphs 
        (4) through (7), respectively; and
            (2) adding after paragraph (2) the following:
            ``(3) Priority recognition.--Upon the completion of the 
        opening statements on the concurrent resolution on the budget 
        for a fiscal year by the chairman and ranking minority member 
        (or designees) the Presiding Officer shall recognize the 
        minority leader (or designees) who may offer an amendment.''.

SEC. 506. BUDGET PROJECTIONS.

    Section 308(c) of the Congressional Budget Act of 1974 (2 U.S.C. 
639(c)) is amended--
            (1) in paragraph (2), by striking ``revenues'' and 
        inserting ``governmental receipts''; and
            (2) in paragraph (4), by striking ``entitlement'' and 
        inserting ``direct spending''.

SEC. 507. RECONCILIATION.

    Section 310 of the Congressional Budget Act of 1974 (2 U.S.C. 641) 
is amended--
            (1) in subsection (a), by striking paragraphs (1) and (2) 
        and inserting the following:
            ``(1) specify the total amount by which--
                    ``(A) new budget authority;
                    ``(B) budget authority;
                    ``(C) new direct spending authority; and
                    ``(D) governmental receipts other than income 
                taxes, estate and gift taxes, excise taxes or payroll 
                taxes, duties, or tariffs;
        contained in laws, bills, and resolutions within the 
        jurisdiction of a committee is to be changed for any of the 
        fiscal years covered by the resolution and direct that 
        committee to determine and recommend changes to accomplish a 
        change of such total amount;
            ``(2) specify the total amount by which governmental 
        receipts including income taxes, estate and gift taxes, excise 
        taxes or social insurance taxes, miscellaneous receipts, 
        duties, or tariffs are to be changed and direct that the 
        committees having jurisdiction to determine and recommend 
        changes in the governmental receipt laws, bills, and 
        resolutions to accomplish a change of such total amount;'';
            (2) by striking subsection (b) and inserting the following:
    ``(b) Legislative Procedure.--
            ``(1) If a conference report on a concurrent resolution 
        containing reconciliation instructions to 1 or more committees 
        to determine and recommend changes in laws, bills, or 
        resolutions is agreed to in accordance with subsection (a)--
                    ``(A) each such committee so instructed shall 
                promptly make such determination and recommendations 
                and submit such recommendations to the Committee on the 
                Budget of its House, which upon receiving all such 
                recommendations, shall report to its House 
                reconciliation legislation carrying out all such 
                recommendations without any substantive revision; and
                    ``(B) in the event that any committee fails to 
                comply with its instruction, then the Committees on the 
                Budget may report amendments recommending changes 
                within the jurisdiction of the noncompliant committee 
                to achieve the changes contained in the instruction.
            ``(2) For purposes of this subsection, a reconciliation 
        resolution is a concurrent resolution directing the Clerk of 
        the House of Representatives or the Secretary of the Senate, as 
        the case may be, to make specified changes in bills and 
        resolutions which have not been enrolled.'';
            (3) in subsection (c), by adding at the end the following:
    ``(3) Secondary or indirect effects of the legislative 
recommendations submitted by any committee of the Senate or the House 
of Representatives that is instructed pursuant to a concurrent 
resolution on the budget, shall be attributed to the committee 
proposing the change in law, but shall not be considered for the 
purpose of determining compliance with such instructions.'';
            (4) by striking paragraphs (1) through (4) of subsection 
        (d) and inserting the following:
    ``(1) It shall not be in order in the House of Representatives to 
consider any amendment to a reconciliation bill or reconciliation 
resolution if such amendment would have the effect of increasing any 
specific budget outlays above the level of such outlays provided in the 
bill or resolution (for the fiscal years covered by the reconciliation 
instructions set forth in the most recently agreed to concurrent 
resolution on the budget), or would have the effect of reducing any 
specific governmental receipts below the level of such governmental 
receipts provided in the bill or resolution (for such fiscal years), 
unless such amendment makes at least an equivalent reduction in other 
specific budget outlays, an equivalent increase in other specific 
governmental receipts, or an equivalent combination thereof (for such 
fiscal years), except that a motion to strike a provision providing new 
budget authority or new entitlement authority may be in order.
    ``(2) It shall not be in order in the Senate to consider any 
amendment to a reconciliation bill or reconciliation resolution if such 
amendment would have the effect of decreasing any specific budget 
outlay reductions below the level of such outlay reductions provided 
(for the fiscal years covered) in the reconciliation instructions which 
relate to such bill or resolution set forth in a resolution providing 
for reconciliation, or would have the effect of reducing governmental 
receipts increases below the level of such increases in such 
governmental receipts provided (for such fiscal years) in such 
instructions relating to such bill or resolution, unless such amendment 
makes a reduction in other specific budget outlays, an increase in 
other specific governmental receipts, or a combination thereof (for 
such fiscal years) at least equivalent to any increase in outlays or 
decrease in governmental receipts provided by such amendment, except 
that a motion to strike a provision shall always be in order.
    ``(3) Paragraphs (1) and (2) shall not apply if a declaration of 
war by the Congress is in effect.
    ``(4) For purposes of this section, the levels of budget authority, 
outlays, and governmental receipts for a fiscal year shall be 
determined on the basis of estimates made by the Committee on the 
Budget of the Senate or of the House of Representatives, as the case 
may be.''; and
            (5) in subsection (e)--
                    (A) in paragraph (1), by inserting ``, motions in 
                relation to a request for conference,'' after ``under 
                subsection (b)''; and
                    (B) in paragraph (2), by striking ``Debate'' and 
                inserting ``Consideration''.

SEC. 508. BUDGETING LEVELS.

    Section 311(a) of the Congressional Budget Act of 1974 (2 
U.S.C.642(a)) is amended--
            (1) in the matter after subparagraph (C) in paragraph (1), 
        by striking ``total revenues'' and inserting ``total 
        governmental receipts''; and
            (2) in paragraph (2)(B), by striking ``revenues'' and 
        inserting ``governmental receipts''.

SEC. 509. DETERMINATIONS AND POINTS OF ORDER.

    (a) In General.--Section 312 of the Congressional Budget Act of 
1974 (2 U.S.C. 643) is amended--
            (1) in subsection (a), by striking ``revenues'' and 
        inserting ``governmental receipts'';
            (2) by striking subsections (b) and (c);
            (3) by redesignating subsections (d) through (f) as 
        subsections (b) through (d), respectively; and
            (4) by adding at the end the following:
    ``(e) Congressional Budget Office Score for Conference Reports.--It 
shall not be in order to consider a report of a committee of conference 
unless an official written cost estimate or table by the Congressional 
Budget Office is available at the time of consideration.''.
    (b) Supermajority Points of Order.--Subsections (c)(1) and (d)(2) 
of section 904 of the Congressional Budget and Impoundment Control Act 
of 1974 (2 U.S.C. 621 note) are amended by--
            (1) inserting ``312(e),'' after ``310(d)(2),''; and
            (2) inserting ``and section 223 of the Stop Over Spending 
        Act of 2007'' after ``of this Act''.

SEC. 510. EXTRANEOUS MATTER IN RECONCILIATION LEGISLATION.

    Section 313 of the Congressional Budget Act of 1974 (2 U.S.C. 644) 
is amended--
            (1) in subsection (a) by striking ``or section 258C'' 
        through ``1985'';
            (2) in subsection (b), by--
                    (A) striking paragraph (1) and inserting the 
                following:
    ``(1)(A) Except as provided in paragraph (2), a provision of a 
reconciliation bill or reconciliation resolution considered pursuant to 
section 310 shall be considered extraneous if such provision does not 
produce a change in outlays or governmental receipts, including changes 
in outlays and governmental receipts brought about by changes in the 
terms and conditions under which outlays are made or governmental 
receipts are required to be collected (but a provision in which outlay 
decreases or governmental receipts increases exactly offset outlay 
increases or governmental receipts decreases shall not be considered 
extraneous by virtue of this subparagraph); (B) except with respect to 
consideration of conference reports, any provision producing an 
increase in outlays or decrease in governmental receipts shall be 
considered extraneous if the net effect of provisions reported by the 
committee reporting the title containing the provision is that the 
committee fails to achieve its reconciliation instructions, or if the 
increase in outlays or decreases in governmental receipts exceeds 20 
percent of the total change required in a committee's instruction; (C) 
a provision that is not in the jurisdiction of the Committee with 
jurisdiction over said title or provision shall be considered 
extraneous (except that amendments reported by the Committee on the 
Budget to achieve compliance with reconciliation instructions shall not 
be extraneous); (D) a provision shall be considered to be extraneous if 
it increases, or would increase, net outlays, or if it decreases, or 
would decrease governmental receipts during a fiscal year after the 
fiscal years covered by such reconciliation bill or reconciliation 
resolution, and such increases or decreases are greater than outlay 
reductions or governmental receipts increases resulting from other 
provisions in such title in such year; and (E) a provision shall be 
considered extraneous if it violates section 310(g).''; and
                    (B) adding at the end the following:
    ``(4) Technical and conforming provisions shall not be considered 
extraneous under this section.''; and
            (3) in subsection (d)(1), by striking ``(b)(1)(E), or 
        (b)(1)(F)'' and inserting ``(b)(1)(E)''.

SEC. 511. ADJUSTMENTS.

    Title III of Congressional Budget Act of 1974 (2 U.S.C. 621 et 
seq.) is amended by--
            (1) striking section 314; and
            (2) redesignating section 315 as 314.

SEC. 512. DIRECT SPENDING LIMITATION.

    Title III of the Congressional Budget Act of 1974 (2 U.S.C. 621 et 
seq.) is amended by adding at the end the following:

                      ``direct spending limitation

    ``Sec. 318.  (a) In General.--The chairman or ranking member of the 
Committee on the Budget of the Senate may submit to the Senate a 
notification of a Medicare funding warning if the chairman or ranking 
member projects that within 7 years General Fund of the Treasury 
contributions to Medicare funding, expressed as a percentage of total 
Medicare outlays, will exceed 45 percent.
    ``(b) Point of Order.--It shall not be in order to consider any 
bill, joint resolution, amendment or conference report that would cause 
any increase in direct spending, net of proposals to change direct 
spending, receipts, or revenues contained in the measure, if a Medicare 
funding warning has been submitted to the Senate pursuant to subsection 
(a) for 2 consecutive calendar years.
    ``(c) Waiver.--This section may be waived or suspended only by an 
affirmative vote of three-fifths of the Members, duly chosen and sworn.
    ``(d) Appeals.--An affirmative vote of three-fifths of the Members, 
duly chosen and sworn, shall be required to sustain an appeal of the 
ruling of the Chair on a point of order raised under this section.
    ``(e) Cancellations.--If legislation is enacted to reduce the 
general fund contribution below 45 percent, as determined by the 
chairman and ranking member of the Committee on the Budget, any 
notification of a Medicare funding warning is withdrawn.''.

SEC. 513. POINT OF ORDER AGAINST LEGISLATION THAT RAISES INCOME TAX 
              RATES.

    Title III of the Congressional Budget Act of 1974 (2 U.S.C. 621 et 
seq.) is amended by adding at the end the following:

   ``point of order against legislation that raises income tax rates

    ``Sec. 319.  (a) In General.--It shall not be in order in the 
Senate to consider any bill, resolution, amendment, amendment between 
Houses, motion, or conference report that includes a Federal income tax 
rate increase. In this subsection, the term `Federal income tax rate 
increase' means any amendment to subsection (a), (b), (c), (d), or (e) 
of section 1, or to section 11(b) or 55(b), of the Internal Revenue 
Code of 1986, that imposes a new percentage as a rate of tax and 
thereby increases the amount of tax imposed by any such section.
    ``(b) Supermajority Waiver and Appeal.--
            ``(1) Waiver.--This section may be waived or suspended in 
        the Senate only by an affirmative vote of three-fifths of the 
        Members, duly chosen and sworn.
            ``(2) Appeal.--An affirmative vote of three-fifths of the 
        Members of the Senate, duly chosen and sworn, shall be required 
        in the Senate to sustain an appeal of the ruling of the Chair 
        on a point of order raised under this section.''.

SEC. 514. CIRCUIT BREAKER TO PROTECT SOCIAL SECURITY.

    Title III of the Congressional Budget Act of 1974 (2 U.S.C. 621 et 
seq.) is amended by adding at the end the following:

              ``circuit breaker to protect social security

    ``Sec. 320.  (a) Circuit Breaker.--If in any year the Congressional 
Budget Office, in its report pursuant to section 202(e)(1), projects an 
on-budget deficit (excluding Social Security) for the budget year or 
any subsequent fiscal year covered by those projections, then the 
concurrent resolution on the budget for the budget year shall reduce 
on-budget deficits relative to the projections of Congressional Budget 
Office and put the budget on a path to achieve on-budget balance within 
5 years, and shall include such provisions as are necessary to protect 
Social Security and facilitate deficit reduction, except it shall not 
contain any reduction in Social Security benefits.
    ``(b) Point of Order.--If in any year the Congressional Budget 
Office, in its report pursuant to section 202(e)(1), projects an on-
budget deficit for the budget year or any subsequent fiscal year 
covered by those projections, it shall not be in order in the Senate to 
consider a concurrent resolution on the budget for the budget year or 
any conference report thereon that fails to reduce on-budget deficits 
relative to the projections of Congressional Budget Office and put the 
budget on a path to achieve on-budget balance within 5 years.
    ``(c) Amendments to Budget Resolution.--If in any year the 
Congressional Budget Office, in its report pursuant to section 
202(e)(1), projects an on-budget deficit for the budget year or any 
subsequent fiscal year covered by those projections, it shall not be in 
order in the Senate to consider an amendment to a concurrent resolution 
on the budget that would increase on-budget deficits relative to the 
concurrent resolution on the budget in any fiscal year covered by that 
concurrent resolution on the budget or cause the budget to fail to 
achieve on-budget balance within 5 years.
    ``(d) Suspension of Requirement During War or Low Economic 
Growth.--
            ``(1) Low growth.--If the most recent of the Department of 
        Commerce's advance, preliminary, or final reports of actual 
        real economic growth indicate that the rate of real economic 
        growth (as measured by real GDP) for each of the most recently 
        reported quarter and the immediately preceding quarter is less 
        than 1 percent, this section is suspended.
            ``(2) War.--If a declaration of war is in effect, this 
        section is suspended.
    ``(e) Supermajority Waiver and Appeals.--
            ``(1) Waiver.--Subsections (b) and (c) may be waived or 
        suspended in the Senate only by an affirmative vote of three-
        fifths of the Members, duly chosen and sworn.
            ``(2) Appeals.--Appeals in the Senate from the decisions of 
        the Chair relating to any provision of this subsection shall be 
        limited to 1 hour, to be equally divided between, and 
        controlled by, the appellant and the manager of the bill or 
        joint resolution, as the case may be. An affirmative vote of 
        three-fifths of the Members of the Senate, duly chosen and 
        sworn, shall be required to sustain an appeal of the ruling of 
        the Chair on a point of order raised under this subsection.
    ``(f) Budget Year.--In this section, the term `budget year' shall 
have the same meaning as in section 250(c)(12) of the Balanced Budget 
and Emergency Deficit Control Act of 1985.''.

SEC. 515. LIMITATION ON LONG-TERM SPENDING PROPOSALS.

    Title III of the Congressional Budget Act of 1974 (2 U.S.C. 621 et 
seq.) is amended by adding at the end the following:

              ``limitation on long-term spending proposals

    ``Sec. 321.  (a) Congressional Budget Office Analysis of 
Proposals.--The Director of the Congressional Budget Office shall, to 
the extent practicable, prepare for each bill or joint resolution 
reported from committee (except measures within the jurisdiction of the 
Committee on Appropriations), or amendments thereto or conference 
reports thereon, an estimate of whether the measure would cause, 
relative to current law, a net increase in direct spending in excess of 
$5 billion in any of the four 10-year periods beginning in fiscal year 
2016 through fiscal year 2055.
    ``(b) Point of Order.--In the Senate, it shall not be in order to 
consider any bill, joint resolution, amendment, motion, or conference 
report that would cause a net increase in direct spending in excess of 
$5 billion in any of the four 10-year periods beginning in 2016 through 
2055.
    ``(c) Waiver.--This section may be waived or suspended only by the 
affirmative vote of three-fifths of the Members, duly chosen and sworn.
    ``(d) Appeals.--An affirmative vote of three-fifths of the Members, 
duly chosen and sworn, shall be required to sustain an appeal of the 
ruling of the Chair on a point of order raised under this section.
    ``(e) Determinations of Budget Levels.--For purposes of this 
section, the levels of net direct spending shall be determined on the 
basis of estimates provided by the Committee on the Budget of the 
Senate.
    ``(f) Application to Reconciliation.--This section shall not apply 
to any legislation reported pursuant to reconciliation directions 
contained in a concurrent resolution on the budget.
    ``(g) Sunset.--This section shall expire on September 30, 2010.''.

SEC. 516. AVOIDING PAYGO POINT OF ORDER.

    Title III of the Congressional Budget Act of 1974 (2 U.S.C. 621 et 
seq.) is amended by adding at the end the following:

                    ``avoiding paygo point of order

    ``Sec. 322.  (a) In General.--It shall not be in order in the 
Senate to consider any provision in appropriations legislation, 
including any amendment thereto, motion in relation thereto, or 
conference report thereon, that would have been estimated as affecting 
direct spending under section 252 of the Balanced Budget and Emergency 
Deficit Control Act of 1985 (as in effect prior to September 30, 2002) 
were it included in legislation other than appropriations legislation, 
if the total of such provisions has a net cost over the total of all 
fiscal years after the year for which the legislation is providing 
appropriations.
    ``(b) Determination.--For purposes of this section, the 
determination of whether a provision violates subsection (a) shall be 
made by the Committee on the Budget of the Senate.
    ``(c) Supermajority Waiver and Appeal.--This section may be waived 
or suspended only by an affirmative vote of three-fifths of the 
Members, duly chosen and sworn. An affirmative vote of three-fifths of 
the Members of the Senate, duly chosen and sworn, shall be required to 
sustain an appeal of the ruling of the Chair on a point of order raised 
under this section.
    ``(d) General Point of Order.--It shall be in order for a Senator 
to raise a single point of order that several provisions of a bill, 
resolution, amendment, motion, or conference report violate this 
section. The Presiding Officer may sustain the point of order as to 
some or all of the provisions against which the Senator raised the 
point of order. If the Presiding Officer so sustains the point of order 
as to some of the provisions (including provisions of an amendment, 
motion, or conference report) against which the Senator raised the 
point of order, then only those provisions (including provision of an 
amendment, motion, or conference report) against which the Presiding 
Officer sustains the point of order shall be deemed stricken pursuant 
to this section. Before the Presiding Officer rules on such a point of 
order, any Senator may move to waive such a point of order as it 
applies to some or all of the provisions against which the point of 
order was raised. Such a motion to waive is amendable in accordance 
with rules and precedents of the Senate. After the Presiding Officer 
rules on such a point of order, any Senator may appeal the ruling of 
the Presiding Officer on such a point of order as it applies to some or 
all of the provisions on which the Presiding Officer ruled.
    ``(e) Form of the Point of Order.--When the Senate is considering a 
conference report on, or an amendment between the Houses in relation 
to, a bill, upon a point of order being made by any Senator pursuant to 
this section, and such point of order being sustained, such material 
contained in such conference report or amendment shall be deemed 
stricken, and the Senate shall proceed to consider the question of 
whether the Senate shall recede from its amendment and concur with a 
further amendment, or concur in the House amendment with a further 
amendment, as the case may be, which further amendment shall consist of 
only that portion of the conference report or House amendment, as the 
case may be, not so stricken. Any such motion shall be debatable. In 
any case in which such point of order is sustained against a conference 
report (or Senate amendment derived from such conference report by 
operation of this subsection), no further amendment shall be in 
order.''.

SEC. 517. PAY-AS-YOU-GO POINT OF ORDER IN THE SENATE.

    Title III of the Congressional Budget Act of 1974 (2 U.S.C. 621 et 
seq.) is amended by adding at the end the following:

              ``pay-as-you-go point of order in the senate

    ``Sec. 323.  (a) Point of Order.--
            ``(1) In general.--It shall not be in order in the Senate 
        to consider any direct spending or revenue legislation that 
        would decrease a projected on-budget surplus or increase or 
        create an on-budget deficit beyond those surpluses or deficits 
        that would result from the direct spending and revenue levels 
        assumed in the most recently agreed to budget resolution, for 
        any 1 of the 4 applicable time periods, as measured in 
        paragraphs (5) and (6).
            ``(2) Applicable time periods.--For purposes of this 
        subsection, the term `applicable time period' means any 1 of 
        the 4 following periods:
                    ``(A) The fiscal year immediately preceding the 
                first fiscal year covered by the most recently adopted 
                concurrent resolution on the budget.
                    ``(B) The first fiscal year covered by the most 
                recently adopted concurrent resolution on the budget.
                    ``(C) The period of the first 5 fiscal years 
                covered by the most recently adopted concurrent 
                resolution on the budget, starting with the fiscal year 
                described in (B).
                    ``(D) The period of the 5 fiscal years following 
                the first 5 fiscal years described in (C) covered in 
                the most recently adopted concurrent resolution on the 
                budget.
            ``(3) Direct-spending legislation.--For purposes of this 
        subsection and except as provided in paragraph (4), the term 
        `direct-spending' means any bill, joint resolution, amendment, 
        motion, or conference report that affects direct spending as 
        that term is defined in section 3(3).
            ``(4) Exclusion.--For purposes of this subsection, the 
        terms `direct-spending' and `revenue legislation' do not 
        include--
                    ``(A) any concurrent resolution on the budget; or
                    ``(B) any provision of legislation that affects the 
                full funding of, and continuation of, the deposit 
                insurance guarantee commitment in effect on the date of 
                enactment of the Budget Enforcement Act of 1990.
            ``(5) Baseline.--Estimates prepared pursuant to this 
        section shall--
                    ``(A) use the baseline surplus or deficit used for 
                the most recently adopted concurrent resolution on the 
                budget; and
                    ``(B) be calculated consistent with the 
                requirements of subsections (b) through (d) of section 
                257 of the Balanced Budget and Emergency Deficit 
                Control Act of 1985 for fiscal years beyond those 
                covered by that concurrent resolution on the budget.
            ``(6) Pay-as-you-go scorecard.--
                    ``(A) In general.--The Chairman of the Senate 
                Committee on the Budget shall set the pay-as-you-go 
                scorecard balance at the time of the adoption of the 
                conference agreement on the Congressional Budget 
                Resolution, and that balance shall reflect the sum of 
                the direct spending and revenue effects (relative to 
                the baseline described in (5)) of all revenue and 
                direct spending legislation assumed by such resolution.
                    ``(B) Adjustments for legislation other than 
                appropriations bills.--The Chairman of the Senate 
                Committee on the Budget shall adjust the pay-as-you-go 
                scorecard balance for the direct spending and revenue 
                effects of legislation that has been approved by both 
                Houses (and subject to presentment to the President) 
                subsequent to the adoption of the conference agreement 
                of the Congressional Budget Resolution, except that the 
                pay-as-you-go scorecard shall not be adjusted by the 
                direct spending effects of legislation cleared for the 
                President pursuant to section 223 of the Stop Over 
                Spending Act of 2007.
                    ``(C) Adjustments for appropriations bills.--The 
                Chairman of the Senate Committee on the Budget shall 
                adjust the pay-as-you-go scorecard balance for the 
                direct spending effects of appropriations legislation 
                that has been approved by both Houses (and subject to 
                presentment to the President) that would have been 
                estimated as affecting direct spending under section 
                252 of the Balanced Budget and Emergency Deficit 
                Control Act of 1985 (as in effect prior to September 
                30, 2002) were it included in legislation other than 
                appropriations legislation. The adjustment shall be for 
                years after the year for which appropriations are made.
    ``(b) Waiver.--This section may be waived or suspended in the 
Senate only by the affirmative vote of three-fifths of the Members, 
duly chosen and sworn.
    ``(c) Appeals.--Appeals in the Senate from the decisions of the 
Chair relating to any provision of this section shall be limited to 1 
hour, to be equally divided between, and controlled by, the appellant 
and the manager of the bill or joint resolution, as the case may be. An 
affirmative vote of three-fifths of the Members of the Senate, duly 
chosen and sworn, shall be required to sustain an appeal of the ruling 
of the Chair on a point of order raised under this section.
    ``(d) Determination of Budget Levels.--For purposes of this 
section, the levels of new budget authority, outlays, and revenues for 
a fiscal year shall be determined on the basis of estimates made by the 
Chairman of the Senate Committee on the Budget.
    ``(e) Sunset.--This section shall expire on September 30, 2012.''.

SEC. 518. APPROPRIATIONS REQUESTS OF THE PRESIDENT.

    Section 1108(e) of title 31, United States Code, is amended by 
striking ``Congress or a'' and inserting ``Congress and a''.

SEC. 519. BUDGET BASELINE.

    (a) In General.--Section 257 of the Balanced Budget and Emergency 
Control Act of 1985, as in effect on December 31, 2006, is reenacted 
effective January 1, 2007.
    (b) Amendment.--Section 257(b) of the Balanced Budget and Emergency 
Control Act of 1985, as reenacted by subsection (a), is amended by 
striking paragraph (2).
                                 <all>
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