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[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4837 Introduced in House (IH)]

105th CONGRESS
  2d Session
                                H. R. 4837

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

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            October 14, 1998

   Mr. Nussle (for himself, Mr. Cardin, Mr. Kasich, Mr. Solomon, Mr. 
 Dreier, Mr. Goss, Mr. Minge, Mr. Sununu, Mr. Radanovich, Ms. Granger, 
and Mr. Stenholm) introduced the following bill; which was referred to 
the Committee on the Budget, and in addition to the Committee on Rules, 
for a period to be subsequently determined by the Speaker, in each case 
for consideration of such provisions as fall within the jurisdiction of 
                        the committee concerned

_______________________________________________________________________

                                 A BILL

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

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Comprehensive 
Budget Process Reform Act of 1998''.
    (b) Table of Contents.--

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

Sec. 101. Purposes.
Sec. 102. The timetable.
Sec. 103. Annual joint resolutions on the budget.
Sec. 104. Budget required before spending bills may be considered; 
                            fall-back procedures if President vetoes 
                            joint budget resolution.
Sec. 105. Reaffirming special budgetary status of social security.
Sec. 106. Conforming amendments to effectuate joint resolutions on the 
                            budget.
                TITLE II--RESERVE FUNDS FOR EMERGENCIES

Sec. 201. Purpose.
Sec. 202. Repeal of adjustments for emergencies.
Sec. 203. OMB emergency criteria.
Sec. 204. Development of guidelines for application of emergency 
                            definition.
Sec. 205. Reserve funds for emergencies in President's budget.
Sec. 206. Adjustments and reserve funds for emergencies in joint budget 
                            resolutions.
Sec. 207. Committee notification of emergency legislation.
Sec. 208. Application of section 306 to emergencies in excess of 
                            amounts in reserve funds.
Sec. 209. Up-to-date tabulations.
Sec. 210. Report of Committees on the Budget.
Sec. 211. Prohibition on amendments to emergency reserve funds.
             TITLE III--ENFORCEMENT OF BUDGETARY DECISIONS

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

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

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

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

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

Sec. 401. Purposes.
            Subtitle A--Prohibitions on Indefinite Spending

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

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

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

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

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

Sec. 521. Reports on long-term budgetary trends.
              TITLE VI--BASELINES, BYRD RULE, AND LOCK-BOX

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

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

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

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

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

Sec. 701. Paygo requirements and the on-budget surplus.

SEC. 2. PURPOSE.

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

SEC. 3. EFFECTIVE DATE.

    Except as otherwise specifically provided, this Act and the 
amendments made by this Act shall become effective on the date of 
enactment of this Act and shall apply with respect to fiscal years 
beginning after September 30, 1999.

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

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

                   TITLE I--BUDGET WITH FORCE OF LAW

SEC. 101. PURPOSES.

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

SEC. 102. THE TIMETABLE.

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

                              ``timetable

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

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

SEC. 103. ANNUAL JOINT RESOLUTIONS ON THE BUDGET.

    (a) Annual Joint Resolutions on the Budget.--(1) Section 301 of the 
Congressional Budget Act of 1974 is amended to read as follows:

                ``annual joint resolutions on the budget

    ``Sec. 301. (a) Content of Joint Resolution on the Budget.--On or 
before April 15 of each year, the Congress shall complete action on a 
joint resolution on the budget for the fiscal year beginning on October 
1 of such year. The joint resolution shall set forth appropriate levels 
for the fiscal year beginning on October 1 of such year and for at 
least each of the 4 ensuing fiscal years for the following--
            ``(1) totals of new budget authority and outlays;
            ``(2) total Federal revenues and the amount, if any, by 
        which the aggregate level of Federal revenues should be 
        increased or decreased by bills and resolutions to be reported 
        by the appropriate committees;
            ``(3) the surplus or deficit in the budget;
            ``(4) subtotals of new budget authority and outlays for 
        nondefense discretionary spending, defense discretionary 
        spending, and direct spending, and, if deemed necessary, other 
        subsets of discretionary spending and of direct spending;
            ``(5) the level of the statutory limit on the public debt;
            ``(6) for fiscal years to which the amendments made by 
        title II of the Comprehensive Budget Process Reform Act of 1998 
        apply, subtotals of new budget authority and outlays for 
        emergencies, including subtotals for direct spending and 
        discretionary spending;
            ``(7) For purposes of Senate enforcement under this title, 
        outlays of the old-age, survivors, and disability insurance 
        program established under title II of the Social Security Act 
        for the fiscal year of the resolution and for each of the 4 
        succeeding fiscal years; and
            ``(8) For purposes of Senate enforcement under this title, 
        revenues of the old-age, survivors, and disability insurance 
        program established under title II of the Social Security Act 
        (and the related provisions of the Internal Revenue Code of 
        1986) for the fiscal year of the resolution and for each of the 
        4 succeeding fiscal years.
    ``(b) Additional Matters in Joint Resolution.--The joint resolution 
on the budget may--
            ``(1) include a heading entitled `Debt Increase as Measure 
        of Deficit' in which the joint resolution shall set forth the 
        amounts by which the debt subject to limit (in section 3101 of 
        title 31, United States Code) has increased or would increase 
        in each of the relevant fiscal years;
            ``(2) if submitted by the Committee on Ways and Means of 
        the House of Representatives or the Committee on Finance of the 
        Senate to the Committee on the Budget of that House of 
        Congress, amend section 3101 of title 31, United States Code, 
        to change the statutory limit on the public debt;
            ``(3) require a procedure under which all or certain bills 
        or resolutions providing new budget authority or new 
        entitlement authority for such fiscal year shall not be 
        enrolled until the Congress has completed action on any 
        reconciliation bill or reconciliation resolution or both 
        required by such concurrent resolution to be reported in 
        accordance with section 310(b);
            ``(4) require such other congressional procedures, relating 
        to the budget, as may be appropriate to carry out the purposes 
        of this Act; and
            ``(5) set forth procedures in the Senate whereby committee 
        allocations, aggregates, and other levels can be revised for 
        legislation if that legislation would not increase the deficit, 
        or would not increase the deficit when taken with other 
        legislation enacted after the adoption of the resolution, for 
        the first fiscal year or the total period of fiscal years 
        covered by the resolution.
    ``(c) Consideration of Procedures or Matters Which Have the Effect 
of Changing any Rule of the House of Representatives.--If the Committee 
on the Budget of the House of Representatives reports any joint 
resolution on the budget which includes any procedure or matter which 
has the effect of changing any rule of the House of Representatives, 
such joint resolution shall then be referred to the Committee on Rules 
with instructions to report it within five calendar days (not counting 
any day on which the House is not in session). The Committee on Rules 
shall have jurisdiction to report any joint resolution referred to it 
under this paragraph with an amendment or amendments changing or 
striking any such procedure or matter.
    ``(d) Views and Estimates of Other Committees.--Within 6 weeks 
after the President submits a budget under section 1105(a) of title 31, 
United States Code, or at such time as may be requested by the chairman 
of the Committee on the Budget, each committee of the House of 
Representatives having legislative jurisdiction shall submit to the 
Committee on the Budget of the House and each committee of the Senate 
having legislative jurisdiction shall submit to the Committee on the 
Budget of the Senate its views and estimates (as determined by the 
committee making such submission) with respect to all matters set forth 
in subsections (a) and (b) which relate to matters within the 
jurisdiction or functions of such committee. The Joint Economic 
Committee shall submit to the Committees on the Budget of both Houses 
its recommendations as to the fiscal policy appropriate to the goals of 
the Employment Act of 1946. Any other committee of the House of 
Representatives or the Senate may submit to the Committee on the Budget 
of its House, and any joint committee of the Congress may submit to the 
Committees on the Budget of both Houses, its views and estimates with 
respect to all matters set forth in subsections (a) and (b) which 
relate to matters within its jurisdiction or functions. Any other 
committee of the House of Representatives or the Senate that 
anticipates that the committee will consider legislation establishing, 
amending, or reauthorizing any Federal program likely to have a 
significant budgetary impact on any State, local, or tribal government, 
or likely to have a significant financial impact on the private sector, 
including any legislative proposal submitted by the executive branch 
likely to have such a budgetary or financial impact, shall include its 
views and estimates on that proposal to the Committee on the Budget of 
the applicable House.
    ``(e) Hearings and Report.--
            ``(1) In general.--In developing the joint resolution on 
        the budget referred to in subsection (a) for each fiscal year, 
        the Committee on the Budget of each House shall hold hearings 
        and shall receive testimony from Members of Congress and such 
        appropriate representatives of Federal departments and 
        agencies, the general public, and national organizations as the 
        committee deems desirable. Each of the recommendations as to 
        short-term and medium-term goal set forth in the report 
        submitted by the members of the Joint Economic Committee under 
        subsection (d) may be considered by the Committee on the Budget 
        of each House as part of its consideration of such concurrent 
        resolution, and its report may reflect its views thereon, 
        including its views on how the estimates of revenues and levels 
        of budget authority and outlays set forth in such concurrent 
        resolution are designed to achieve any goals it is 
        recommending.
            ``(2) Required contents of report.--The report accompanying 
        the resolution shall include--
                    ``(A) new budget authority and outlays for each 
                major functional category, based on allocations of the 
                total levels set forth pursuant to subsection (a)(1);
                    ``(B) a comparison of the levels of total new 
                budget authority, total outlays, total revenues, and 
                the surplus or deficit for each fiscal year set forth 
                in the resolution with those requested in the budget 
                submitted by the President;
                    ``(C) with respect to each major functional 
                category, an estimate of total new budget authority and 
                total outlays, with the estimates divided between 
                discretionary and direct spending amounts;
                    ``(D) a measure, as a percentage of gross domestic 
                product, of total outlays, total Federal revenues, the 
                surplus or deficit, and new outlays for nondefense 
                discretionary spending, defense spending, and direct 
                spending as set forth in such resolution;
                    ``(E) the economic assumptions that underlie each 
                of the matters set forth in the resolution and any 
                alternative economic assumptions and objectives the 
                committee considered;
                    ``(F) information, data, and comparisons indicating 
                the manner in which, and the basis on which, the 
                committee determined each of the matters set forth in 
                the resolution;
                    ``(G) a justification for allocating any new budget 
                authority and outlays for any new any program, project, 
                or activity to a committee for which such new budget 
                authority and outlays would not be subject to 
                discretionary appropriations;
                    ``(H) allocations described in section 302(a);
                    ``(I) the estimated levels of tax expenditures (the 
                tax expenditures budget) by major items and functional 
                categories for the President's budget and in the 
                resolution; and
                    ``(J) if the joint resolution on the budget 
                includes any allocation to a committee (other than the 
                Committee on Appropriations) of levels in excess of 
                current law levels, a justification for not subjecting 
                any program, project, or activity (for which the 
                allocation is made) to annual discretionary 
                appropriation.''.
            ``(3) Additional contents of report.--The report 
        accompanying the resolution may include--
                    ``(A) reconciliation directives described in 
                section 310;
                    ``(B) a statement of any significant changes in the 
                proposed levels of Federal assistance to State and 
                local governments;
                    ``(C) an allocation of the level of Federal 
                revenues recommended in the resolution among the major 
                sources of such revenues; and
                    ``(D) other matters, relating to the budget and to 
                fiscal policy, that the committee deems appropriate.
    ``(f) Achievement of Goals for Reducing Unemployment.--
            (1) If, pursuant to section 4(c) of the Employment Act of 
        1946, the President recommends in the Economic Report that the 
        goals for reducing unemployment set forth in section 4(b) of 
        such Act be achieved in a year after the close of the five-year 
        period prescribed by such subsection, the concurrent resolution 
        on the budget for the fiscal year beginning after the date on 
        which such Economic Report is received by the Congress may set 
        forth the year in which, in the opinion of the Congress, such 
        goals can be achieved.
            ``(2) After the Congress has expressed its opinion pursuant 
        to paragraph (1) as to the year in which the goals for reducing 
        unemployment set forth in section 4(b) of the Employment Act of 
        1946 can be achieved, if, pursuant to section 4(e) of such Act, 
        the President recommends in the Economic Report that such goals 
        be achieved in a year which is different from the year in which 
        the Congress has expressed its opinion that such goals should 
        be achieved, either in its action pursuant to paragraph (1) or 
        in its most recent action pursuant to this paragraph, the 
        concurrent resolution on the budget for the fiscal year 
        beginning after the date on which such Economic Report is 
        received by the Congress may set forth the year in which, in 
        the opinion of the Congress, such goals can be achieved.
            ``(3) It shall be in order to amend the provision of such 
        resolution setting forth such year only if the amendment 
        thereto also proposes to alter the estimates, amounts, and 
        levels (as described in subsection (a)) set forth in such 
        resolution in germane fashion in order to be consistent with 
        the economic goals (as described in sections 3(a)(2) and (4)(b) 
        of the Employment Act of 1946) which such amendment proposes 
        can be achieved by the year specified in such amendment.
    ``(g) Economic Assumptions.--
            ``(1) It shall not be in order in the Senate to consider 
        any joint resolution on the budget for a fiscal year, or any 
        amendment thereto, or any conference report thereon, that sets 
        forth amounts and levels that are determined on the basis of 
        more than one set of economic and technical assumptions.
            ``(2) The joint explanatory statement accompanying a 
        conference report on a joint resolution on the budget shall set 
        forth the common economic assumptions upon which such joint 
        statement and conference report are based, or upon which any 
        amendment contained in the joint explanatory statement to be 
        proposed by the conferees in the case of technical 
        disagreement, is based.
            ``(3) Subject to periodic reestimation based on changed 
        economic conditions or technical estimates, determinations 
        under titles III and IV of the Congressional Budget Act of 1974 
        shall be based upon such common economic and technical 
        assumptions.
    ``(h) Budget Committees Consultation With Committees.--The 
Committee on the Budget of the House of Representatives shall consult 
with the committees of its House having legislative jurisdiction during 
the preparation, consideration, and enforcement of the joint resolution 
on the budget with respect to all matters which relate to the 
jurisdiction or functions of such committees.
    ``(i) Social Security Point of Order.--It shall not be in order in 
the Senate to consider any concurrent resolution on the budget (or 
amendment, motion, or conference report on the resolution) that would 
decrease the excess of social security revenues over social security 
outlays in any of the fiscal years covered by the concurrent 
resolution. No change in chapter 1 of the Internal Revenue Code of 1986 
shall be treated as affecting the amount of social security revenues 
unless such provision changes the income tax treatment of social 
security benefits.''.
    (b) President's Budget Submission to the Congress.--(1) The first 
two sentences of section 1105(a) of title 31, United States Code, are 
amended to read as follows:
``On or after the first Monday in January but not later than the first 
Monday in February of each year the President shall submit a budget of 
the United States Government for the following fiscal year which shall 
set forth the following levels:
            ``(A) totals of new budget authority and outlays;
            ``(B) total Federal revenues and the amount, if any, by 
        which the aggregate level of Federal revenues should be 
        increased or decreased by bills and resolutions to be reported 
        by the appropriate committees;
            ``(C) the surplus or deficit in the budget;
            ``(D) subtotals of new budget authority and outlays for 
        nondefense discretionary spending, defense discretionary 
        spending, and direct spending, and, if deemed necessary, other 
        subsets of discretionary spending and of direct spending;
            ``(E) the level of the statutory limit on the public debt; 
        and
            ``(F) for fiscal years to which the amendments made by 
        title II of the Comprehensive Budget Process Reform Act of 1998 
        apply, subtotals of new budget authority and outlays for 
        emergencies, including subtotals for direct spending and 
        discretionary spending.
Each budget submission shall include a budget message and summary and 
supporting information and, as a separately delineated statement, the 
levels required in the preceding sentence for at least each of the 4 
ensuing fiscal years.''.
    (2) The third sentence of section 1105(a) of title 31, United 
States Code, is amended by inserting ``submission'' after ``budget''.
    (c) Limitation on Contents of Budget Resolutions.--Section 305 of 
the Congressional Budget Act of 1974 is amended by adding at the end 
the following new subsection:
    ``(e) Limitation on Contents.--(1) Any joint resolution on the 
budget or any amendment thereto or conference report thereon that 
contains any matter not specified in section 301(a) or (b) shall not be 
treated in the House of Representatives or the Senate as a budget 
resolution under subsection (a) or (b) or as a conference report on a 
budget resolution under subsection (c) of this section.
    ``(2) It shall not be in order in the House of Representatives or 
in the Senate to consider any joint resolution on the budget or any 
amendment thereto or conference report thereon that contains any matter 
referred to in paragraph (1).''.

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

    (a) Amendments to Section 303 and Conforming Amendments.--(1) 
Section 303 of the Congressional Budget Act of 1974 is amended--
            (A) in subsection (b), by striking paragraph (2), by 
        inserting ``or'' at the end of paragraph (1), and by 
        redesignating paragraph (3) as paragraph (2); and
            (B) by striking its section heading and inserting the 
        following new section heading: ``consideration of budget-
        related legislation before budget becomes law''.
    (2) Section 302(g)(1) of the Congressional Budget Act of 1974 is 
amended by striking ``April 15'' and inserting the following: ``the 
date upon which a joint resolution on the budget for a fiscal year is 
enacted''.
    (3) Section 3 of the Congressional Budget and Impoundment Control 
Act of 1974 is amended by adding at the end the following new 
paragraph:
            ``(11) The term `vetoes' means, when referring to a joint 
        resolution on the budget for a fiscal year, whenever the 
        President returns such resolution with his objections to the 
        House in which it originated within ten days after receiving 
        the resolution or does not sign the resolution and cannot 
        return it due to a congressional adjournment that occurs before 
        the ten-day time limit.''.
    (4)(A) Section 904(c)(1) of the Congressional Budget Act of 1974 is 
amended by inserting ``303(a),'' before ``305(b)(2),''.
    (B) Section 904(d)(2) of the Congressional Budget Act of 1974 is 
amended by inserting ``303(a),'' before ``305(b)(2),''.
    (b) Expedited Procedures Upon Veto of Joint Resolution on the 
Budget.--(1) Title III of the Congressional Budget Act of 1974 is 
amended by adding at the end the following new section:

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

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

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

SEC. 105. REAFFIRMING SPECIAL BUDGETARY STATUS OF SOCIAL SECURITY.

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

                           ``social security

    ``Sec. 317. (a) In General.--The joint resolution on the budget 
shall not include the outlays and revenue totals of the old age, 
survivors, and disability insurance program established under title II 
of the Social Security Act or the related provisions of the Internal 
Revenue Code of 1986 in the surplus or deficit totals required by 
section 301(a), in any other surplus or deficit totals required by this 
Act, or in any other surplus or deficit totals required by chapter 11 
of title 31, United States Code.
    ``(b) 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 reconciliation resolution reported pursuant to a 
joint resolution on the budget agreed to under section 301 or 304, or a 
joint resolution pursuant to section 258C of the Balanced Budget and 
Emergency Deficit Control Act of 1985, 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.
    ``(c) Exclusion of Social Security From All Budgets.--
Notwithstanding any other provision of law, the receipts and 
disbursements of the Federal Old-Age and Survivors Insurance Trust Fund 
and the Federal Disability Insurance Trust Fund shall not be counted as 
new budget authority, outlays, receipts, or deficit or surplus for 
purposes of--
            ``(1) the budget of the United States Government as 
        submitted by the President,
            ``(2) the congressional budget, or
            ``(3) the Balanced Budget and Emergency Deficit Control Act 
        of 1985.
    ``(d) Protection of OASDI Trust Funds in the House of 
Representatives.--(1) It shall not be in order in the House of 
Representatives to consider any bill or joint resolution, as reported, 
or any amendment thereto or conference report thereon, if, upon 
enactment--
            ``(A)(i) such legislation under consideration would provide 
        for a net increase in OASDI benefits of at least 0.02 percent 
        of the present value of future taxable payroll for the 75-year 
        period utilized in the most recent annual report of the Board 
        of Trustees provided pursuant to section 201(c)(2) of the 
Social Security Act, and (ii) such legislation under consideration does 
not provide at least a net increase, for such 75-year period, in OASDI 
taxes of the amount by which the net increase in such benefits exceeds 
0.02 percent of the present value of future taxable payroll for such 
75-year period,
            ``(B)(i) such legislation under consideration would provide 
        for a net increase in OASDI benefits (for the 5-year estimating 
        period for such legislation under consideration), (ii) such net 
        increase, together with the net increases in OASDI benefits 
        resulting from previous legislation enacted during that fiscal 
        year or any of the previous 4 fiscal years (as estimated at the 
        time of enactment) which are attributable to those portions of 
        the 5-year estimating periods for such previous legislation 
        that fall within the 5-year estimating period for such 
        legislation under consideration, exceeds $250,000,000, and 
        (iii) such legislation under consideration does not provide at 
        least a net increase, for the 5-year estimating period for such 
        legislation under consideration, in OASDI taxes which, together 
        with net increases in OASDI taxes resulting from such previous 
        legislation which are attributable to those portions of the 5-
        year estimating periods for such previous legislation that fall 
        within the 5-year estimating period for such legislation under 
        consideration, equals the amount by which the net increase 
        derived under clause (ii) exceeds $250,000,000;
            ``(C)(i) such legislation under consideration would provide 
        for a net decrease in OASDI taxes of at least 0.02 percent of 
        the present value of future taxable payroll for the 75-year 
        period utilized in the most recent annual report of the Board 
        of Trustees provided pursuant to section 201(c)(2) of the 
        Social Security Act, and (ii) such legislation under 
        consideration does not provide at least a net decrease, for 
        such 75-year period, in OASDI benefits of the amount by which 
        the net decrease in such taxes exceeds 0.02 percent of the 
        present value of future taxable payroll for such 75-year 
        period, or
            ``(D)(i) such legislation under consideration would provide 
        for a net decrease in OASDI taxes (for the 5-year estimating 
        period for such legislation under consideration), (ii) such net 
        decrease, together with the net decreases in OASDI taxes 
        resulting from previous legislation enacted during that fiscal 
        year or any of the previous 4 fiscal years (as estimated at the 
        time of enactment) which are attributable to those portions of 
        the 5-year estimating periods for such previous legislation 
        that fall within the 5-year estimating period for such 
        legislation under consideration, exceeds $250,000,000, and 
        (iii) such legislation under consideration does not provide at 
        least a net decrease, for the 5-year estimating period for such 
        legislation under consideration, in OASDI benefits which, 
        together with net decreases in OASDI benefits resulting from 
        such previous legislation which are attributable to those 
        portions of the 5-year estimating periods for such previous 
        legislation that fall within the 5-year estimating period for 
        such legislation under consideration, equals the amount by 
        which the net decrease derived under clause (ii) exceeds 
        $250,000,000.
    ``(2) Application.--In applying subparagraph (C) or (D) of 
paragraph (1), any provision of any bill or joint resolution, as 
reported, or any amendment thereto, or conference report thereon, the 
effect of which is to provide for a net decrease for any period in 
taxes described in paragraph (3)(B)(i) shall be disregarded if such 
bill, joint resolution, amendment, or conference report also includes a 
provision the effect of which is to provide for a net increase of at 
least an equivalent amount for such period in medicare taxes.
    ``(3) Definitions.--For purposes of this subsection:
            ``(A) The term `OASDI benefits' means the benefits under 
        the old-age, survivors, and disability insurance programs under 
        title II of the Social Security Act.
            ``(B) The term `OASDI taxes' means--
                    ``(i) the taxes imposed under sections 1401(a), 
                3101(a), and 3111(a) of the Internal Revenue Code of 
                1986, and
                    ``(ii) the taxes imposed under chapter 1 of such 
                Code (to the extent attributable to section 86 of such 
                Code).
            ``(C) The term `medicare taxes' means the taxes imposed 
        under sections 1401(b), 3101(b), and 3111(b) of the Internal 
        Revenue Code of 1986.
            ``(D) The term `previous legislation' shall not include 
        legislation enacted before fiscal year 1991.
            ``(E) The term `5-year estimating period' means, with 
        respect to any legislation, the fiscal year in which such 
        legislation becomes or would become effective and the next 4 
        fiscal years.
            ``(F) No provision of any bill or resolution, or any 
        amendment thereto or conference report thereon, involving a 
        change in chapter 1 of the Internal Revenue Code of 1986 shall 
        be treated as affecting the amount of OASDI taxes referred to 
        in subparagraph (B)(ii) unless such provision changes the 
        income tax treatment of OASDI benefits.
    ``(e) Presentation of Budgetary Aggregates.--For purposes of 
chapter 11 of title 31, United States Code, or this Act, tables and 
other displays of budgetary aggregates for the United States Government 
of the Director of the Office of Management and Budget or the Director 
of the Congressional Budget Office shall not include social security 
revenues or outlays.''.
    (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 inserting after the item relating to 
section 316 the following new item:

``Sec. 317. Social security.''.

SEC. 106. CONFORMING AMENDMENTS TO EFFECTUATE JOINT RESOLUTIONS ON THE 
              BUDGET.

    (a) Conforming Amendments to the Congressional Budget and 
Impoundment Control Act of 1974.--(1)(A) Sections 300, 302, 303, 304, 
305, 308, 310, 311, 312, 314, 405, and 904 of the Congressional Budget 
Act of 1974 (2 U.S.C. 621 et seq.) are amended by striking 
``concurrent'' each place it appears and by inserting ``joint''.
    (B)(i) Sections 302(d), 302(g), 308(a)(1)(A), and 310(d)(1) of the 
Congressional Budget Act of 1974 are amended by striking ``most 
recently agreed to concurrent resolution on the budget'' each place it 
occurs and inserting ``most recently enacted joint resolution on the 
budget or agreed to concurrent resolution on the budget (as 
applicable)''.
    (ii) Section 304 of such Act is amended by striking ``concurrent 
resolution on the budget for such fiscal year most recently agreed to'' 
and inserting ``most recently enacted joint resolution on the budget or 
agreed to concurrent resolution on the budget (as applicable) for such 
year''.
    (C) Sections 302, 303, 304, 308, 310, 311, and 401 of such Act are 
amended by striking ``agreed to'' each place it appears and by 
inserting ``enacted''.
    (2)(A) Paragraph (4) of section 3 of the Congressional Budget and 
Impoundment Control Act of 1974 is amended by striking ``concurrent'' 
each place it appears and by inserting ``joint''.
    (B) The table of contents set forth in section 1(b) of such Act is 
amended--
            (i) in the item relating to section 301 by striking 
        ``Adoption of Concurrent Resolution'' and inserting ``Joint 
        Resolutions'';
            (ii) by striking the item relating to section 303 and 
        inserting the following:

``Sec. 303. Consideration of budget-related legislation before budget 
                            becomes law.''; and
            (iii) by striking ``concurrent'' and inserting ``joint'' in 
        the items relating to sections 304 and 305.
    (b) Conforming Amendments to the Rules of the House of 
Representatives.--(1) Clauses 1(d)(2), 4(a)(2), 4(b)(2), 4(g), 4(h), 
and 4(i) of rule X, clause 2(l)(6) of rule XI, clause 7 of rule XV, and 
clause 8 of rule XXIII of the Rules of the House of Representatives are 
amended by striking ``concurrent'' each place it appears and by 
inserting ``joint''.
    (2) The second sentence of clause 8 of rule XXIII of the Rules of 
the House of Representatives is amended by striking the semicolon and 
all that follows thereafter and inserting the following: ``; and (b) 
would contain all the matter set forth in paragraphs (1) through (6) of 
section 301(a) of the Congressional Budget Act of 1974.''.
    (c) Conforming Amendments to the Balanced Budget and Emergency 
Deficit Control Act of 1985.--Section 258C(b)(1) of the Balanced Budget 
and Emergency Deficit Control Act of 1985 (2 U.S.C. 907d(b)(1)) is 
amended by striking ``concurrent'' and by inserting ``joint''.
    (d) Conforming Amendments to Section 310 Regarding Reconciliation 
Directives.--(1) The side heading of section 310(a) of the 
Congressional Budget Act of 1974 (as amended by section 106(a)) is 
further amended by inserting ``Joint Explanatory Statement Accompanying 
Conference Report on'' before ``Joint''.
    (2) Section 310(a) of such Act is amended by striking ``A'' and 
inserting ``The joint explanatory statement accompanying the conference 
report on a''.
    (3) The first sentence of section 310(b) of such Act is amended by 
striking ``If'' and inserting ``If the joint explanatory statement 
accompanying the conference report on''.
    (4) Section 310(c)(1) of such Act is amended by inserting ``the 
joint explanatory statement accompanying the conference report on'' 
after ``pursuant to''.
    (5) Subsection (g) of section 310 of such Act is repealed.
    (e) Conforming Amendments to Section 3 Regarding Direct Spending.--
Section 3 of the Congressional Budget and Impoundment Control Act of 
1974 (as amended by section 104(a)(3)) is further amended by adding at 
the end the following new paragraph:
            ``(12) The term `direct spending' has the meaning given to 
        such term in section 250(c)(8) of the Balanced Budget and 
        Emergency Deficit Control Act of 1985.''.
    (f) Technical Amendment Regarding Revised Suballocations.--Section 
314(d) of the Congressional Budget Act of 1974 is amended by--
            (1) striking ``Reporting'' in the side heading, by 
        inserting ``the chairmen of'' before ``the Committees'', and by 
        striking ``may report'' and inserting ``shall make and have 
        published in the Congressional Record''; and
            (2) adding at the end the following new sentence: ``For 
        purposes of considering amendments (other than for amounts for 
        emergencies covered by subsection (b)(1)), suballocations shall 
        be deemed to be so adjusted.''.

                TITLE II--RESERVE FUNDS FOR EMERGENCIES

SEC. 201. PURPOSE.

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

SEC. 202. REPEAL OF ADJUSTMENTS FOR EMERGENCIES.

    (a) Discretionary Spending Limits.--Section 251(b)(2)(A) of the 
Balanced Budget and Emergency Deficit Control Act of 1985 is repealed.
    (b) Direct Spending.--Sections 252(e) and 252(d)(4)(B) of the 
Balanced Budget and Emergency Deficit Control Act of 1985 are repealed.
    (c) Emergency Designation.--Clause 2 of rule XXI of the Rules of 
the House of Representatives is amended by repealing paragraph (e) and 
by redesignating paragraph (f) as paragraph (e).

SEC. 203. OMB EMERGENCY CRITERIA.

    Section 3 of the Congressional Budget and Impoundment Control Act 
of 1974 (as amended by sections 104(a)(3) and 106(e)) is further 
amended by adding at the end the following new paragraph:
            ``(13)(A) The term `emergency' means a situation that--
                    ``(i) requires new budget authority and outlays (or 
                new budget authority and the outlays flowing therefrom) 
                for the prevention or mitigation of, or response to, 
                loss of life or property, or a threat to national 
                security; and
                    ``(ii) is unanticipated.
            ``(B) As used in subparagraph (A), the term `unanticipated' 
        means that the underlying situation is--
                    ``(i) sudden, which means quickly coming into being 
                or not building up over time;
                    ``(ii) urgent, which means a pressing and 
                compelling need requiring immediate action;
                    ``(iii) unforeseen, which means not predicted or 
                anticipated as an emerging need; and
                    ``(iv) temporary, which means not of a permanent 
                duration.''.

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

    Not later than 5 months after the date of enactment of this Act, 
the chairmen of the Committees on the Budget (in consultation with the 
President) shall, after consulting with the chairmen of the Committees 
on Appropriations and applicable authorizing committees of their 
respective Houses and the Directors of the Congressional Budget Office 
and the Office of Management and Budget, jointly publish in the 
Congressional Record guidelines for application of the definition of 
emergency set forth in section 3(13) of the Congressional Budget and 
Impoundment Control Act of 1974.

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

    Section 1105(f) of title 31, United States Code is amended by 
adding at the end the following new sentence: ``Such budget shall also 
comply with the requirements of section 314(f) of the Congressional 
Budget Act of 1974.''.

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

    (a) Adjustments for Emergencies.--(1) Section 314(a) of the 
Congressional Budget Act of 1974 is amended to read as follows:
    ``(a) Adjustments.--
            ``(1) In general.--After the reporting of a bill or joint 
        resolution, the offering of an amendment thereto, or the 
        submission of a conference report thereon, the chairman of the 
        Committee on the Budget of the House of Representatives or the 
        Senate shall make the adjustments set forth in paragraph (2) 
        for the amount of new budget authority (or outlays) in that 
        measure (if that measure meets the requirements set forth in 
        subsection (b)) and the outlays flowing from that budget 
        authority.
            ``(2) Matters to be adjusted.--The adjustments referred to 
        in paragraph (1) are to be made to--
                    ``(A) the discretionary spending limits in the 
                Senate, if any, set forth in the appropriate joint 
                resolution on the budget;
                    ``(B) the allocations made pursuant to the 
                appropriate joint resolution on the budget pursuant to 
                section 302(a); and
                    ``(C) the budgetary aggregates as set forth in the 
                appropriate joint resolution on the budget;
        but in the case of subsection (b)(1), the adjustments shall 
        only be made to the allocations.''.
    (2) Section 314(b)(1) of the Congressional Budget Act of 1974 is 
amended to read as follows:
            ``(1) an amount not to exceed the amount reserved for 
        emergencies pursuant to the requirements of subsection (f);''.
    (b) Establishment of Reserve Funds.--Section 314 of the 
Congressional Budget Act of 1974 is amended by adding at the end the 
following new subsections:
    ``(f) Reserve Funds for Emergencies.--
            ``(1) Reserve fund for discretionary budget authority and 
        outlays.--
                    ``(A) Amounts.--The amount set forth in the reserve 
                fund for emergencies for discretionary budget authority 
                and outlays for a fiscal year pursuant to section 
301(a)(6) shall equal--
                            ``(i) the average of the enacted levels of 
                        discretionary budget authority for emergencies 
                        in the 5 fiscal years preceding the current 
                        year; and
                            ``(ii) the average of the levels of outlays 
                        in such 5 preceding fiscal years for 
                        emergencies flowing from enacted levels of 
                        discretionary budget authority.
                    ``(B) Average discretionary levels.--For purposes 
                of subparagraph (A), the amount used for a fiscal year 
                to calculate the average of the enacted levels when one 
                or more of such 5 preceding fiscal years is any of 
                fiscal years 1994 through 1998 is as follows: the 
                amount of enacted levels of discretionary budget 
                authority and the amount of outlays flowing therefrom 
                for emergencies, which shall be determined by the 
                Committees on the Budget of the House of 
                Representatives and the Senate after receipt of a 
                report on such matter transmitted to such committees by 
                the Director of the Congressional Budget Office 6 
                months after the date of enactment of this subsection 
                and thereafter in February of each calendar year.
            ``(2) Reserve fund for direct spending budget authority and 
        outlays.--
                    ``(A) Amounts.--The amount set forth in the reserve 
                fund for emergencies for direct spending for a fiscal 
                year pursuant to section 301(a)(6) shall equal--
                            ``(i) the average annual enacted levels of 
                        direct spending budget authority for 
                        emergencies in the 5 fiscal years preceding the 
                        current year; and
                            ``(ii) the average annual level of outlays 
                        in such 5 preceding fiscal years for 
                        emergencies flowing from enacted levels of 
                        direct spending.
                    ``(B) Average direct spending levels.--For purposes 
                of subparagraph (A), the amount used for a fiscal year 
                to calculate the average of the enacted levels when one 
                or more of such 5 preceding fiscal years is any of 
                fiscal years 1994 through 1998 is as follows: the 
                amount of enacted levels of direct spending budget 
                authority and the amount of outlays flowing therefrom 
                for emergencies, which shall be determined by the 
                Committees on the Budget of the House of 
                Representatives and the Senate after receipt of a 
                report on such matter transmitted to such committees by 
                the Director of the Congressional Budget Office 6 
                months after the date of enactment of this subsection 
                and thereafter in February of each calendar year.
            ``(3) Increased allocations.--In the case of legislation 
        that provides budget authority for any emergency pursuant to 
        subsection (h), the chairman of the Committee on the Budget 
        shall make an adjustment under subsection (a)(1) only to the 
        applicable allocation if the chairman determines and certifies 
        that such outlays or budget authority and the resulting outlays 
        are for an emergency within the meaning of section 3(13).
    ``(g) Emergencies in Excess of Amounts in Reserve Funds.--Whenever 
the Committee on Appropriations or any other committee reports any bill 
or joint resolution that provides budget authority for any emergency 
and the report accompanying that bill or joint resolution, pursuant to 
subsection (h), identifies any provision that increases outlays or 
provides budget authority (and the outlays flowing therefrom) for such 
emergency, the enactment of which would cause the total amount provided 
for emergencies in the joint resolution on the budget (pursuant to 
section 301(a)(6)) to be exceeded and that emergency is certified as an 
emergency pursuant to section (f)(3):
            ``(1) Such bill or joint resolution shall be referred to 
        the Committee on the Budget of the House or the Senate, as the 
        case may be, with instructions to report it without amendment, 
        other than that specified in paragraph (2), within 3 
        legislative days of the day in which it is reported from the 
        originating committee. If the Committee on the Budget of either 
        House fails to report a bill or joint resolution referred to it 
        under this paragraph within such 3-day period, the committee 
        shall be automatically discharged from further consideration of 
        such bill or joint resolution and such bill or joint resolution 
        shall be placed on the appropriate calendar.
            ``(2) An amendment to such a bill or joint resolution 
        referred to in this subsection shall only consist of an 
        exemption from section 251 or 252 (as applicable) of the 
        Balanced Budget and Emergency Deficit Control Act of 1985 of 
        all or any part of the provisions that provide budget authority 
        (and the outlays flowing therefrom) for such emergency if the 
        committee determines that such emergency meets the criteria set 
        forth in subsection (f).
            ``(3) If such a bill or joint resolution is reported with 
        an amendment specified in paragraph (2) by the Committee on the 
        Budget of the House of Representatives or the Senate, then the 
        budget authority and resulting outlays that are the subject of 
        such amendment shall not be included in any determinations 
        under section 302(f) or 311(a) for any bill, joint resolution, 
        amendment, motion, or conference report.''.
    (c) Conforming Amendments.--(1) The section heading of section 314 
of the Congressional Budget Act of 1974 is amended to read as follows:

            ``adjustments; reserve funds for emergencies''.

    (2) The item relating to section 314 in the table of contents set 
forth in section 1(b) of the Congressional Budget and Impoundment 
Control Act of 1974 is amended to read as follows:

``Sec. 314. Adjustments; reserve funds for emergencies.''.

SEC. 207. COMMITTEE NOTIFICATION OF EMERGENCY LEGISLATION.

    Section 314 of the Congressional Budget Act of 1974 (as amended by 
section 206) is further amended by adding at the end the following new 
subsection:
    ``(h) Committee Notification of Emergency Legislation.--Whenever 
the Committee on Appropriations or any other committee of either House 
(including a committee of conference) reports any bill or joint 
resolution that provides budget authority for any emergency, the report 
accompanying that bill or joint resolution (or the joint explanatory 
statement of managers in the case of a conference report on any such 
bill or joint resolution) shall identify all provisions that provide 
budget authority and the outlays flowing therefrom for such 
emergency.''.

SEC. 208. APPLICATION OF SECTION 306 TO EMERGENCIES IN EXCESS OF 
              AMOUNTS IN RESERVE FUNDS.

    Section 306 of the Congressional Budget Act of 1974 is amended by 
inserting at the end the following new sentence: ``No amendment 
reported by the Committee on the Budget (or from the consideration of 
which such committee has been discharged) pursuant to section 314(g) 
may be amended.''.

SEC. 209. UP-TO-DATE TABULATIONS.

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

SEC. 210. REPORT OF COMMITTEES ON THE BUDGET.

    Section 301(e)(2) of the Congressional Budget Act of 1974 (as 
amended by section 103(b)) is further amended by striking ``and'' after 
subparagraph (F), by striking the period at the end of subparagraph (G) 
and inserting ``; and'', and by adding at the end the following new 
subparagraph:
                    ``(H) the average annual enacted levels of--
                            ``(i) discretionary budget authority and 
                        the resulting outlays for emergencies; and
                            ``(ii) direct spending budget authority and 
                        the resulting outlays for emergencies;
                for the 5 fiscal years preceding the fiscal year of 
                such resolution.''.

SEC. 211. PROHIBITION ON AMENDMENTS TO EMERGENCY RESERVE FUNDS.

    (a) Point of Order.--Section 305 of the Congressional Budget Act of 
1974 (as amended by section 103(c)) is further amended by adding at the 
end the following new subsection:
    ``(f) It shall not be in order in the House of Representatives or 
in the Senate to consider an amendment to a joint resolution on the 
budget which changes the amount of budget authority and outlays set 
forth in section 301(a)(6) for emergency reserve funds.''.
    (b) Technical Amendment.--(1) Section 904(c)(1) of the 
Congressional Budget Act of 1974 is amended by inserting ``section 
305(e), section 305(f),'' after ``section 305(c)(4),''.
    (2) Section 904(d)(2) of the Congressional Budget Act of 1974 is 
amended by inserting ``section 305(e), section 305(f),'' after 
``section 305(c)(4),''.

SEC. 211. EFFECTIVE DATE.

    The amendments made by this title shall take effect only after the 
enactment of legislation changing or extending for any fiscal year any 
of the discretionary spending limits set forth in section 251 of the 
Balanced Budget and Emergency Deficit Control Act of 1985 and such 
amendments shall apply to fiscal years determined as follows:
            (1) Fiscal years beginning after the fiscal year in which 
        such effective date occurs if such effective date occurs on or 
        before April 15 of such fiscal year.
            (2) Fiscal years beginning after the first fiscal year 
        after the fiscal year in which such effective date occurs if 
        such effective date occurs after April 15 of the fiscal year in 
        which such effective date occurs.

             TITLE III--ENFORCEMENT OF BUDGETARY DECISIONS

SEC. 301. PURPOSES.

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

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

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

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

             Subtitle B--Compliance with Budget Resolution

SEC. 321. BUDGET COMPLIANCE STATEMENTS.

    Clause 7 of rule XIII of the Rules of the House of Representatives 
is amended by adding at the end the following new paragraph:
    ``(f) Each report of a committee on a bill or joint resolution of a 
public character shall include a budget compliance statement prepared 
by the chairman of the Committee on the Budget, if timely submitted 
prior to the filing of the report, which shall be comprised of an 
assessment by such chairman as to whether the bill or joint resolution 
complies with the requirements of sections 302, 303, 311, and 401 of 
the Congressional Budget Act of 1974 and may include the budgetary 
implications of that bill or joint resolution under section 251 or 252 
of the Balanced Budget and Emergency Deficit Control Act of 1985, as 
applicable.''.

            Subtitle C--Justification for Budget Act Waivers

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

    Clause 4 of rule XI of the Rules of the House of Representatives is 
amended by adding at the end the following new paragraph:
    ``(f) It shall not be in order to consider any resolution from the 
Committee on Rules for the consideration of any reported bill or joint 
resolution which waives section 302, 303, 311, or 401 of the 
Congressional Budget Act of 1974, unless the report accompanying such 
resolution includes a description of the provision proposed to be 
waived, an identification of the section being waived, the reasons why 
such waiver should be granted, and an estimated cost of the provisions 
to which the waiver applies.''.

             Subtitle D--CBO Scoring of Conference Reports

SEC. 341. CBO SCORING OF CONFERENCE REPORTS.

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

             TITLE IV--ACCOUNTABILITY FOR FEDERAL SPENDING

SEC. 401. PURPOSES.

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

            Subtitle A--Prohibitions on Indefinite Spending

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

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

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

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

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

SEC. 412. AMENDMENTS TO SUBJECT NEW ENTITLEMENTS TO ANNUAL 
              APPROPRIATIONS.

    (a) House Procedures.--Clause 5 of rule XXIII of the Rules of the 
House of Representatives is amended by adding at the end the following 
new paragraph:
    ``(d)(1) In the Committee of the Whole, an amendment to subject a 
new program providing direct spending to discretionary appropriations, 
if offered by the chairman of the Committee on the Budget (or his 
designee) or the chairman of the Committee of Appropriations (or his 
designee), may be precluded from consideration only by the specific 
terms of a special order of the House. Any such amendment, if offered, 
shall be debatable for twenty minutes equally divided and controlled by 
the proponent of the amendment and a Member opposed and shall not be 
subject to amendment.
    ``(2) As used in subparagraph (1), the term `direct spending' has 
the meaning given such term in section 3(12) of the Congressional 
Budget and Impoundment Control Act of 1974.''.
    (b) Adjustment of Discretionary Spending Limits for Discretionary 
Appropriations Offset by Mandatory Savings.--
            (1) Purpose.--The purpose of the amendments made by this 
        subsection is to hold the discretionary spending limits and the 
        allocations made to the Committee on Appropriations under 
        section 302(a) of the Congressional Budget Act of 1974 harmless 
        for legislation that offsets a new discretionary program with a 
        designated reduction in direct spending.
            (2) Designating entitlement savings in authorization 
        legislation for new discretionary programs.--Section 252 of the 
        Balanced Budget and Emergency Deficit Control Act of 1985 (as 
        amended by section 202) is further amended by adding at the end 
        the following new subsection:
    ``(e) Offsets.--If a provision of direct spending legislation is 
enacted that--
            ``(1) decreases direct spending for any fiscal year; and
            ``(2) is designated as an offset pursuant to this 
        subsection and such designation specifically identifies an 
        authorization of discretionary appropriations (contained in 
        such legislation) for a new program,
then the reductions in new budget authority and outlays in all fiscal 
years resulting from that provision shall be designated as an offset in 
the reports required under subsection (d).''.
            (3) Exempting such designated entitlement savings from 
        paygo scorecard.--Section 252(d)(4) of the Balanced Budget and 
        Emergency Deficit Control Act of 1985 (as amended by section 
        202(b)) is further amended by adding at the end the following 
        new subparagraph:
                    ``(B) offset provisions as designated under 
                subsection (e).''.
            (4) Adjustment in discretionary spending limits.--Section 
        251(b)(2) of the Balanced Budget and Emergency Deficit Control 
        Act of 1985 is amended by adding at the end the following new 
        subparagraph:
                    ``(H) Discretionary authorization offsets.--If an 
                authorization Act includes one or more provisions 
                reducing direct spending and specifically identifies 
                those provisions as offsets pursuant to section 252(e), 
                the adjustments shall be an increase in the budget 
                authority and outlay caps in each fiscal year equal to 
                the amount of the budget authority and outlay 
                reductions, respectively, achieved by the specified 
                offsets in that fiscal year, except that the 
                adjustments for the first fiscal year in which the 
                offsetting provisions take effect shall not exceed the 
                amount of discretionary new budget authority enacted 
                for the new program (authorized in that Act) in an Act 
making discretionary appropriations, and the outlays flowing 
therefrom.''.
            (5) Adjustment in appropriation committee's allocations.--
        Section 314(b) of the Congressional Budget Act of 1974 is 
        amended by striking ``; or'' at the end of paragraph (5), by 
        striking the period and inserting ``; or'' at the end of 
        paragraph (6), and by adding at the end the following new 
        paragraph:
            ``(7) the amount appropriated for the program for which an 
        offset was designated pursuant to section 252(e) of the 
        Balanced Budget and Emergency Deficit Control Act of 1985 and 
        any outlays flowing therefrom, but not to exceed the amount of 
        the designated decrease in direct spending for that year for 
        that program in a prior law.''.
            (6) Adjustment in authorizing committee's allocations.--
        Section 314 of the Congressional Budget Act of 1974 (as amended 
        by sections 206 and 207) is further amended by adding at the 
        end the following new subsection:
    ``(i) Adjustment in Authorizing Committee's Allocations by Amount 
of Direct Spending Offset.--After the reporting of a bill or joint 
resolution (by a committee other than the Committee on Appropriatons), 
or the offering of an amendment thereto or the submission of a 
conference report thereon, that contains a provision that decreases 
direct spending for any fiscal year and that is designated as an offset 
pursuant to section 252(e) of the Balanced Budget and Emergency Deficit 
Control Act of 1985, the chairman of the Committee on the Budget shall 
reduce the allocations of new budget authority and outlays made to such 
committee under section 302(a)(1) by the amount so designated.''.

     Subtitle B--Enhanced Congressional Oversight Responsibilities

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

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

SEC. 422. JUSTIFICATIONS OF DIRECT SPENDING.

    (a) Section 302 Allocations.--Section 302(a) of the Congressional 
Budget Act of 1974 is amended by adding at the end the following new 
paragraph:
            ``(6) Justification of certain spending allocations.--The 
        joint explanatory statement accompanying a conference report on 
        a joint resolution on the budget that includes any allocation 
        to a committee (other than the Committee on Appropriations) of 
        levels in excess of current law levels shall set forth a 
        justification for not subjecting any program, project, or 
        activity (for which the allocation is made) to annual 
        discretionary appropriation.''.
    (b) Presidents' Budget Submissions.--Section 1105(a) of title 31, 
United States Code, is amended by adding at the end the following new 
paragraph:
            ``(33) a justification for not subjecting each new program 
        to discretionary appropriations.''.
    (c) Committee Justification for Direct Spending.--The first 
sentence of clause 4(f)(1) of rule X of the Rules of the House of 
Representatives is amended by inserting before the period the 
following: ``, and will provide specific information in any report 
accompanying such bills and joint resolutions to justify why the 
programs and activities involved would not be subject to annual 
appropriation''.

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

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

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

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

SEC. 425. GAO REPORTS.

      The last sentence of section 404 of the Congressional Budget Act 
of 1974 is amended to read as follows: ``Such report shall be revised 
at least once every five years.''.

                Subtitle C--Strengthened Accountability

SEC. 431. TEN-YEAR CBO ESTIMATES.

    (a) CBO Reports on Legislation.--Section 308(a)(1)(B) of the 
Congressional Budget Act of 1974 is amended by striking ``four'' and 
inserting ``nine''.
    (b) Analysis by CBO.--Section 402(1) of the Congressional Budget 
Act of 1974 is amended by striking ``4'' and inserting ``nine''.
    (c) Cost Estimates.--Clause 7(a)(1) of rule XIII of the Rules of 
the House of Representatives is amended by striking ``five'' each place 
it appears and inserting ``10''.

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

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

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

SEC. 501. PURPOSES.

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

     Subtitle A--Budgetary Treatment of Federal Insurance Programs

SEC. 511. FEDERAL INSURANCE PROGRAMS.

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

     ``title vi--budgetary treatment of federal insurance programs

``SEC. 601. SHORT TITLE.

    ``This title may be cited as the `Federal Insurance Budgeting Act 
of 1998'.

``SEC. 602. BUDGETARY TREATMENT.

    ``(a) President's Budget.--Beginning with fiscal year 2005, the 
budget of the Government pursuant to section 1105(a) of title 31, 
United States Code, shall be based on the risk-assumed cost of Federal 
insurance programs.
    ``(b) Budget Accounting.--For any Federal insurance program--
            ``(1) the program account shall--
                    ``(A) pay the risk-assumed cost borne by the 
                taxpayer to the financing account, and
                    ``(B) pay actual insurance program administrative 
                costs;
            ``(2) the financing account shall--
                    ``(A) receive premiums and other income,
                    ``(B) pay all claims for insurance and receive all 
                recoveries,
                    ``(C) transfer to the program account on not less 
                than an annual basis amounts necessary to pay insurance 
                program administrative costs;
            ``(3) a negative risk-assumed cost shall be transferred 
        from the financing account to the program account, and shall be 
        transferred from the program account as a nonexpenditure 
        transfer to the general fund; and
            ``(4) all payments by or receipts of the financing accounts 
        shall be treated in the budget as a means of financing.
    ``(c) Appropriations Required.--(1) Notwithstanding any other 
provision of law, insurance commitments may be made for fiscal year 
2005 and thereafter only to the extent that new budget authority to 
cover their risk-assumed cost is provided in advance in an 
appropriation Act.
    ``(2) An outstanding insurance commitment shall not be modified in 
a manner that increases its risk-assumed cost unless budget authority 
for the additional cost has been provided in advance in an 
appropriation Act.
    ``(3) Paragraphs (1) and (2) shall not apply to Federal insurance 
programs that constitute entitlements.
    ``(d) Reestimates.--The risk-assumed cost for a fiscal year shall 
be reestimated in each subsequent year. Such reestimate can equal zero. 
In the case of a positive reestimate, the amount of the reestimate 
shall be paid from the program account to the financing account. In the 
case of a negative reestimate, the amount of the reestimate shall be 
paid from the financing account to the program account, and shall be 
transferred from the program account to the general fund as a 
nonexpenditure transfer. Reestimates shall be displayed as a distinct 
and separately identified subaccount in the program account.
    ``(e) Administrative Expenses.--All funding for an agency's 
administration of a Federal insurance program shall be displayed as a 
distinct and separately identified subaccount in the program account.

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

    ``(a) Agency Requirements.--Agencies with responsibility for 
Federal insurance programs shall develop models to estimate their risk-
assumed cost by year through the budget horizon and shall submit those 
models, all relevant data, a justification for critical assumptions, 
and the annual projected risk-assumed costs to OMB with their budget 
requests each year starting with the request for fiscal year 2001. 
Agencies will likewise provide OMB with annual estimates of 
modifications, if any, and reestimates of program costs.
    ``(b) Disclosure.--When the President submits a budget of the 
Government pursuant to section 1105(a) of title 31, United States Code, 
for fiscal year 2001, OMB shall publish a notice in the Federal 
Register advising interested persons of the availability of information 
describing the models, data (including sources), and critical 
assumptions (including explicit or implicit discount rate assumptions) 
that it or other executive branch entities would use to estimate the 
risk-assumed cost of Federal insurance programs and giving such persons 
an opportunity to submit comments. At the same time, the chairman of 
the Committee on the Budget shall publish a notice for CBO in the 
Federal Register advising interested persons of the availability of 
information describing the models, data (including sources), and 
critical assumptions (including explicit or implicit discount rate 
assumptions) that it would use to estimate the risk-assumed cost of 
Federal insurance programs and giving such interested persons an 
opportunity to submit comments.
    ``(c) Revision.--(1) After consideration of comments pursuant to 
subsection (b), and in consultation with the Committees on the Budget 
of the House of Representatives and the Senate, OMB and CBO shall 
revise the models, data, and major assumptions they would use to 
estimate the risk-assumed cost of Federal insurance programs.
    ``(2) When the President submits a budget of the Government 
pursuant to section 1105(a) of title 31, United States Code, for fiscal 
year 2002, OMB shall publish a notice in the Federal Register advising 
interested persons of the availability of information describing the 
models, data (including sources), and critical assumptions (including 
explicit or implicit discount rate assumptions) that it or other 
executive branch entities used to estimate the risk-assumed cost of 
Federal insurance programs.
    ``(d) Display.--
            ``(1) In general.--For fiscal years 2002, 2003, and 2004 
        the budget submissions of the President pursuant to section 
        1105(a) of title 31, United States Code, and CBO's reports on 
        the economic and budget outlook pursuant to section 202(e)(1) 
        and the President's budgets, shall for display purposes only, 
        estimate the risk-assumed cost of existing or proposed Federal 
        insurance programs.
            ``(2) OMB.--The display in the budget submissions of the 
        President for fiscal years 2002, 2003, and 2004 shall include--
                    ``(A) a presentation for each Federal insurance 
                program in budget-account level detail of estimates of 
                risk-assumed cost;
                    ``(B) a summary table of the risk-assumed costs of 
                Federal insurance programs; and
                    ``(C) an alternate summary table of budget 
                functions and aggregates using risk-assumed rather than 
                cash-based cost estimates for Federal insurance 
                programs.
            ``(3) CBO.--In the 107th Congress and the 1st session of 
        the 108th Congress, CBO shall include in its estimates under 
        section 308, for display purposes only, the risk-assumed cost 
        of existing Federal programs, or legislation that CBO, in 
        consultation with the Committees on the Budget of the House of 
        Representatives and the Senate, determines would create a new 
        Federal insurance program.
    ``(e) OMB, CBO, and GAO Evaluations.--(1) Not later than 6 months 
after the budget submission of the President pursuant to section 
1105(a) of title 31, United States Code, for fiscal year 2004, OMB, 
CBO, and GAO shall each submit to the Committees on the Budget of the 
House of Representatives and the Senate a report that evaluates the 
advisability and appropriate implementation of this title.
    ``(2) Each report made pursuant to paragraph (1) shall address the 
following:
            ``(A) The adequacy of risk-assumed estimation models used 
        and alternative modeling methods.
            ``(B) The availability and reliability of data or 
        information necessary to carry out this title.
            ``(C) The appropriateness of the explicit or implicit 
        discount rate used in the various risk-assumed estimation 
        models.
            ``(D) The advisability of specifying a statutory discount 
        rate (such as the Treasury rate) for use in risk-assumed 
        estimation models.
            ``(E) The ability of OMB, CBO, or GAO, as applicable, to 
        secure any data or information directly from any Federal agency 
        necessary to enable it to carry out this title.
            ``(F) The relationship between risk-assumed accrual 
        budgeting for Federal insurance programs and the specific 
        requirements of the Balanced Budget and Emergency Deficit 
        Control Act of 1985.
            ``(G) Whether Federal budgeting is improved by the 
        inclusion of risk-assumed cost estimates for Federal insurance 
        programs.
            ``(H) The advisability of including each of the programs 
        currently estimated on a risk-assumed cost basis in the Federal 
        budget on that basis.

``SEC. 604. DEFINITIONS.

    ``For purposes of this title:
            ``(1) The term `Federal insurance program' means a program 
        that makes insurance commitments and includes the list of such 
        programs included in the joint explanatory statement of 
        managers accompanying the conference report on the 
        Comprehensive Budget Process Reform Act of 1998.
            ``(2) The term `insurance commitment' means an agreement in 
        advance by a Federal agency to indemnify a nonfederal entity 
        against specified losses. This term does not include loan 
        guarantees as defined in title V or benefit programs such as 
        social security, medicare, and similar existing social 
        insurance programs.
            ``(3)(A) The term `risk-assumed cost' means the net present 
        value of the estimated cash flows to and from the Government 
        resulting from an insurance commitment or modification thereof.
            ``(B) The cash flows associated with an insurance 
        commitment include--
                    ``(i) expected claims payments inherent in the 
                Government's commitment;
                    ``(ii) net premiums (expected premium collections 
                received from or on behalf of the insured less expected 
                administrative expenses);
                    ``(iii) expected recoveries; and
                    ``(iv) expected changes in claims, premiums, or 
                recoveries resulting from the exercise by the insured 
                of any option included in the insurance commitment.
            ``(C) The cost of a modification is the difference between 
        the current estimate of the net present value of the remaining 
        cash flows under the terms of the insurance commitment, and the 
        current estimate of the net present value of the remaining cash 
        flows under the terms of the insurance commitment as modified.
            ``(D) The cost of a reestimate is the difference between 
        the net present value of the amount currently required by the 
        financing account to pay estimated claims and other 
        expenditures and the amount currently available (whether in 
        cash or other marketable asset) in the financing account. The 
        cost of a reestimate shall be accounted for in the current year 
        in the budget of the Government pursuant to section 1105(a) of 
        title 31, United States Code.
            ``(E) For purposes of this definition, expected 
        administrative expenses shall be construed as the amount 
        estimated to be necessary for the proper administration of the 
        insurance program. This amount may differ from amounts actually 
        appropriated or otherwise made available for the administration 
        of the program.
            ``(4) The term `program account' means the budget account 
        for the risk-assumed cost, and for all costs of administering 
        the insurance program, and is the account from which the risk-
        assumed cost is disbursed to the financing account.
            ``(5) The term `financing account' means the nonbudget 
        account that is associated with each program account which 
        receives payments from or makes payments to the program 
        account, receives premiums and other payments from the public, 
        pays insurance claims, and holds balances.
            ``(6) The term `modification' means any Government action 
        that alters the risk-assumed cost of an existing insurance 
        commitment from the current estimate of cash flows. This 
        includes any action resulting from new legislation, or from the 
        exercise of administrative discretion under existing law, that 
directly or indirectly alters the estimated cost of existing insurance 
commitments.
            ``(7) The term `model' means any actuarial, financial, 
        econometric, probabilistic, or other methodology used to 
        estimate the expected frequency and magnitude of loss-producing 
        events, expected premiums or collections from or on behalf of 
        the insured, expected recoveries, and administrative expenses.
            ``(8) The term `current' has the same meaning as in section 
        250(c)(9) of the Balanced Budget and Emergency Deficit Control 
        Act of 1985.
            ``(9) The term `OMB' means the Director of the Office of 
        Management and Budget.
            ``(10) The term `CBO' means the Director of the 
        Congressional Budget Office.
            ``(11) The term `GAO' means the Comptroller General of the 
        United States.

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

    ``(a) Authorization of Appropriations.--There is authorized to be 
appropriated $600,000 for each of fiscal years 1999 through 2004 to the 
Director of the Office of Management and Budget and each agency 
responsible for administering a Federal program to carry out this 
title.
    ``(b) Treasury Transactions With the Financing Accounts.--The 
Secretary of the Treasury shall borrow from, receive from, lend to, or 
pay the insurance financing accounts such amounts as may be 
appropriate. The Secretary of the Treasury may prescribe forms and 
denominations, maturities, and terms and conditions for the 
transactions described above. The authorities described above shall not 
be construed to supersede or override the authority of the head of a 
Federal agency to administer and operate an insurance program. All the 
transactions provided in this subsection shall be subject to the 
provisions of subchapter II of chapter 15 of title 31, United States 
Code. Cash balances of the financing accounts in excess of current 
requirements shall be maintained in a form of uninvested funds, and the 
Secretary of the Treasury shall pay interest on these funds.
    ``(c) Appropriation of Amount Necessary To Cover Risk-Assumed Cost 
of Insurance Commitments at Transition Date.--(1) A financing account 
is established on September 30, 2004, for each Federal insurance 
program.
    ``(2) There is appropriated to each financing account the amount of 
the unfunded risk-assumed cost of Federal insurance commitments 
outstanding for that program as of the close of September 30, 2004.
    ``(3) These financing accounts shall be used in implementing the 
budget accounting required by this title.

``SEC. 606. EFFECTIVE DATE.

    ``This title shall take effect immediately and shall expire on 
September 30, 2006.''.
    (b)  Conforming Amendment.--The table of contents set forth in 
section 1(b) of the Congressional Budget and Impoundment Control Act of 
1974 is amended by inserting after the item relating to section 507 the 
following new items:

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

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

           Subtitle B--Reports on Long-Term Budgetary Trends

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

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

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

SEC. 601. PURPOSE.

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

                        Subtitle A--The Baseline

SEC. 611. THE PRESIDENT'S BUDGET.

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

SEC. 612. THE CONGRESSIONAL BUDGET.

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

SEC. 613. CONGRESSIONAL BUDGET OFFICE REPORTS TO COMMITTEES.

    (a) The first sentence of section 202(e)(1) of the Congressional 
Budget Act of 1974 is amended by inserting ``compared to comparable 
levels for the current year'' before the comma at the end of 
subparagraph (A) and before the comma at the end of subparagraph (B).
    (b) Section 202(e)(1) of the Congressional Budget Act of 1974 is 
amended by inserting after the first sentence the following new 
sentence: ``Such report shall also include a table on sources of 
spending growth in total direct spending for the budget year and the 
ensuing 4 fiscal years, which shall include changes in outlays 
attributable to the following: cost-of-living adjustments; changes in 
the number of program recipients; increases in medical care prices, 
utilization and intensity of medical care; and residual factors.''.
    (c) Section 308(a)(1)(B) of the Congressional Budget Act of 1974 is 
amended by inserting ``and shall include a comparison of those levels 
to comparable levels for the current fiscal year'' before ``if timely 
submitted''.

SEC. 614. OUTYEAR ASSUMPTIONS FOR DISCRETIONARY SPENDING.

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

                       Subtitle B--The Byrd Rule

SEC. 621. LIMITATION ON BYRD RULE.

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

              Subtitle C--Spending Accountability Lock-box

SEC. 631. SHORT TITLE.

    This subtitle may be cited as the ``Spending Accountability Lock-
box Act of 1998''.

SEC. 632. SPENDING ACCOUNTABILITY LOCK-BOX LEDGER.

    (a) Establishment of Ledger.--Title III of the Congressional Budget 
Act of 1974 (as amended by sections 104(b) and 105(a)) is further 
amended by adding after section 317 the following new section:

               ``spending accountability lock-box ledger

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

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

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

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

SEC. 634. PERIODIC REPORTING OF LEDGER STATEMENTS.

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

SEC. 635. DOWNWARD ADJUSTMENT OF DISCRETIONARY SPENDING LIMITS.

    The discretionary spending limits for new budget authority and 
outlays for any fiscal year set forth in section 251(c) of the Balanced 
Budget and Emergency Deficit Control Act of 1985, shall be reduced by 
the amounts set forth in the final regular appropriation bill for that 
fiscal year or joint resolution making continuing appropriations 
through the end of that fiscal year. Those amounts shall be the sums of 
the Joint House-Senate Lock-box Balances for that fiscal year, as 
calculated under section 302(a)(7) of the Congressional Budget Act of 
1974. That bill or joint resolution shall contain the following 
statement of law: ``As required by section 636 of the Spending 
Accountability Lock-box Act of 1998, for fiscal year [insert 
appropriate fiscal year] and each outyear, the adjusted discretionary 
spending limit for new budget authority shall be reduced by $ [insert 
appropriate amount of reduction] and the adjusted discretionary limit 
for outlays shall be reduced by $ [insert appropriate amount of 
reduction] for the fiscal year and each outyear.''. Notwithstanding 
section 904(c) of the Congressional Budget Act of 1974, section 306 as 
it applies to this statement shall not apply. This adjustment shall be 
reflected in reports under sections 254(f) and 254(g) of the Balanced 
Budget and Emergency Deficit Control Act of 1985.

              Subtitle D--Automatic Continuing Resolution

SEC. 641. AUTOMATIC CONTINUING RESOLUTION.

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

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

              TITLE VII--BUDGETING IN AN ERA OF SURPLUSES

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

    (a) Section 252(a) of the Balanced Budget and Emergency Deficit 
Control Act of 1985 is amended to read as follows:
    ``(a) Purpose.--The purpose of this section is to assure that 
direct spending or receipts legislation does not increase the deficit 
or exceed the on-budget surplus.''.
    (b) Sequestration.--(1) Section 252(b)(1) of the Balanced Budget 
and Emergency Deficit Control Act of 1985 is amended by inserting 
``minus the amount for the budget year, if any, estimated under 
paragraph (3)'' after ``as calculated under paragraph (2)''.
    (2) Section 252(b) of such Act is amended by adding at the end the 
following new paragraph:
            ``(3) Estimate of On-Budget Surplus.--OMB estimates for the 
        budget year of the excess of receipts over outlays (if any) as 
        set forth in the OMB sequestration update report as calculated 
        pursuant to section 254(c)(3). These estimates shall not 
        include outlays and receipts of the Federal Old-Age and 
        Survivors Insurance Trust Fund, the Federal Disability 
        Insurance Trust Fund, or any other off-budget entity.''.
    (c) Clarification of Existing Law.--Section 252 of the Balanced 
Budget and Emergency Deficit Control Act of 1985 (as amended by section 
404) is further amended by adding at the end the following new 
subsection:
    ``(f) Meaning of Net Deficit Increase.--For purposes of this 
section, a net deficit is the amount by which decreases in revenues 
plus increases in outlays exceeds increases in revenues plus decreases 
in outlays.''.
    (d) Reports.--
            (1) Preview.--Section 254(c)(3) of the Balanced Budget and 
        Emergency Deficit Control Act of 1985 is amended by adding at 
        the end the following new subparagraph:
                    ``(D) The estimated excess of receipts over outlays 
                for the budget year (if any) (assuming the levels 
                appropriated if all regular appropriations (or a 
                continuing appropriation) are enacted minus any amounts 
                sequestered for that year under section 251, but if 
                that is not the case, then assuming compliance with the 
                adjusted discretionary spending limits set forth in 
                section 251(c)) (but if no such limits are in effect 
                for such year, then assume compliance with such limits 
                for the last fiscal year for which such limits were in 
                effect) without taking into account the effect of 
                direct spending and receipts legislation for such year 
                calculated under section 252(d) enacted after the date 
                of enactment of this subparagraph.''.
            (2) Final.--Section 254(f)(3) of the Balanced Budget and 
        Emergency Deficit Control Act of 1985 is amended by adding at 
        the end the following new sentence: ``Notwithstanding 
        subsection (j), actual levels of enacted discretionary 
        appropriations or up-to-date adjusted discretionary spending 
        limits (but if no such limits are in effect for such year, then 
        assume such limits for the last fiscal year for which such 
        limits were in effect), as applicable, shall be used in the 
        final pay-as-you go report regarding information required by 
        subsection (c)(3)(D) to be included in the pay-as-you-go 
        sequestration preview report.''.
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