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[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 568 Introduced in Senate (IS)]

109th CONGRESS
  1st Session
                                 S. 568

   To balance the budget and protect the Social Security Trust Fund 
                               surpluses.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             March 8, 2005

 Mr. Voinovich (for himself and Mr. Feingold) introduced the following 
 bill; which was read twice and referred to the Committee on the Budget

_______________________________________________________________________

                                 A BILL

 
   To balance the budget and protect the Social Security Trust Fund 
                               surpluses.

    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 ``Truth in Budgeting 
and Social Security Protection Act of 2005''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
                        TITLE I--GENERAL REFORMS

Sec. 101. Extension of the discretionary spending caps.
Sec. 102. Extension of Pay-as-You-Go requirement.
Sec. 103. Point of order to require compliance with the caps and Pay-
                            as-You-Go.
Sec. 104. Disclosure of interest costs.
Sec. 105. Executive branch report on fiscal exposures.
Sec. 106. Senate sets 302(b) allocations.
Sec. 107. Long-Term Cost Recognition Point of Order.
 TITLE II--REFORM OF BUDGETARY TREATMENT OF FEDERAL INSURANCE PROGRAMS

Sec. 201. Federal insurance programs.
            TITLE III--BIENNIAL BUDGETING AND APPROPRIATIONS

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

Sec. 401. Establishment of Commission on Federal Budget Concepts.
Sec. 402. Powers and duties of Commission.
Sec. 403. Membership.
Sec. 404. Staff and support services.
Sec. 405. Report.
Sec. 406. Termination.
Sec. 407. Funding.

                        TITLE I--GENERAL REFORMS

SEC. 101. EXTENSION OF THE DISCRETIONARY SPENDING CAPS.

    (a) In General.--Section 251(c) of the Balanced Budget and 
Emergency Deficit Control Act of 1985 is amended by striking paragraphs 
(7) through (16) and inserting the following:
            ``(7) with respect to fiscal years 2006 through 2011 an 
        amount equal to the appropriated amount of discretionary 
        spending in budget authority and outlays for fiscal year 2003 
        adjusted to reflect inflation;''.
    (b) Emergency Designation.--Section 314 of the Congressional Budget 
Act of 1974 (2 U.S.C. 645) is amended by adding at the end the 
following:
    ``(f) Emergency Legislation.--
            ``(1) Authority to designate.--If a provision of direct 
        spending or receipts legislation, not to include revisions to 
        the income tax, is enacted or if appropriations for 
        discretionary accounts are enacted that the President 
        designates as an emergency requirement and that Congress so 
        designates in statute, the amounts of new budget authority, 
        outlays, and receipts in all fiscal years resulting from that 
        provision shall be designated as an emergency requirement for 
        the purpose of subsection (b)(1).
            ``(2) Designations.--
                    ``(A) Guidance.--If a provision of legislation is 
                designated as an emergency requirement under paragraph 
                (1), the committee report and any statement of managers 
                accompanying that legislation shall analyze whether a 
                proposed emergency requirement meets all the criteria 
                in subparagraph (B).
                    ``(B) Criteria.--
                            ``(i) In general.--The criteria to be 
                        considered in determining whether a proposed 
                        expenditure or tax change is an emergency 
                        requirement are that the expenditure or tax 
                        change is--
                                    ``(I) necessary, essential, or 
                                vital (not merely useful or 
                                beneficial);
                                    ``(II) sudden, quickly coming into 
                                being, and not building up over time;
                                    ``(III) an urgent, pressing, and 
                                compelling need requiring immediate 
                                action;
                                    ``(IV) subject to subparagraph (B), 
                                unforeseen, unpredictable, and 
                                unanticipated; and
                                    ``(V) not permanent, temporary in 
                                nature.
                            ``(ii) Unforeseen.--An emergency that is 
                        part of an aggregate level of anticipated 
                        emergencies, particularly when normally 
                        estimated in advance, is not unforeseen.
                    ``(C) Justification for use of designation.--When 
                an emergency designation is proposed in any bill, joint 
                resolution, or conference report thereon, the committee 
                report and the statement of managers accompanying a 
                conference report, as the case may be, shall provide a 
                written justification of why the provision meets the 
                criteria set forth in subparagraph (B).
            ``(3) Definitions.--In this subsection, the terms `direct 
        spending', `receipts', and `appropriations for discretionary 
        accounts' means any provision of a bill, joint resolution, 
        amendment, motion or conference report that affects direct 
        spending, receipts, or appropriations as those terms have been 
        defined and interpreted for purposes of the Balanced Budget and 
        Emergency Deficit Control Act of 1985.
            ``(4) Definition of an emergency requirement.--A provision 
        shall be considered an emergency designation if it designates 
        any item as an emergency requirement pursuant to paragraph (1).
            ``(5) Point of order.--
                    ``(A) In general.--When the Senate is considering a 
                bill, resolution, amendment, motion, or conference 
                report, a point of order may be made by a Senator 
                against an emergency designation in that measure and if 
                the Presiding Officer sustains that point of order, 
                that provision making such a designation shall be 
                stricken from the measure and may not be offered as an 
                amendment from the floor.
                    ``(B) Waiver and appeal.--This subsection may be 
                waived or suspended in the Senate only by an 
                affirmative vote of \3/5\ of the Members, duly chosen 
                and sworn. An affirmative vote of \3/5\ of the Members 
                of the Senate, duly chosen and sworn, shall be required 
                to sustain an appeal of the ruling of the Chair on a 
                point of order raised under this section.
                    ``(C) Form of the point of order.--A point of order 
                under this subsection may be raised by a Senator as 
                provided in section 313(e).
                    ``(D) Conference reports.--If a point of order is 
                sustained under this subsection against a conference 
                report, the report shall be disposed of as provided in 
                section 313(d).
                    ``(E) Exception for defense and homeland security 
                spending.--Subparagraph (A) shall not apply against an 
                emergency designation for a provision making 
                discretionary appropriations in the defense category 
                and for homeland security programs.''.
    (c) Expiration.--Section 275(b) of the Balanced Budget and 
Emergency Deficit Control Act of 1985 (2 U.S.C. 900 note) is amended by 
striking subsection (b).

SEC. 102. EXTENSION OF PAY-AS-YOU-GO REQUIREMENT.

    Section 252(a) of the Balanced Budget and Emergency Deficit Control 
Act of 1985 is amended by striking ``enacted before October 1, 2002,'' 
both places it appears.

SEC. 103. POINT OF ORDER TO REQUIRE COMPLIANCE WITH THE CAPS AND PAY-
              AS-YOU-GO.

    Section 312(b) of the Congressional Budget Act of 1974 (2 U.S.C. 
643(b)) is amended to read as follows:
    ``(b) Discretionary Spending and Pay-as-You-Go Point of Order in 
the Senate.--
            ``(1) In general.--Except as otherwise provided in this 
        subsection, it shall not be in order in the Senate to consider 
        any bill or resolution or any separate provision of a bill or 
        resolution (or amendment, motion, or conference report on that 
        bill or resolution) that would--
                    ``(A) exceed any of the discretionary spending 
                limits in section 251(c) of the Balanced Budget and 
                Emergency Deficit Control Act of 1985; or
                    ``(B) for direct spending or revenue legislation, 
                would cause or increase an on-budget deficit for any 
                one of the following three applicable time periods--
                            ``(i) the first year covered by the most 
                        recently adopted concurrent resolution on the 
                        budget;
                            ``(ii) the period of the first 5 fiscal 
                        years covered by the most recently adopted 
                        concurrent resolution on the budget; or
                            ``(iii) the period of the 5 fiscal years 
                        following the first five fiscal years covered 
                        in the most recently adopted concurrent 
                        resolution on the budget.
            ``(2) Point of order against a specific provision.--If the 
        Presiding Officer sustains a point of order under paragraph (1) 
        with respect to any separate provision of a bill or resolution, 
        that provision shall be stricken from the measure and may not 
        be offered as an amendment from the floor.
            ``(3) Form of the point of order.--A point of order under 
        this section may be raised by a Senator as provided in section 
        313(e) of the Congressional Budget Act of 1974.
            ``(4) Conference reports.--If a point of order is sustained 
        under this section against a conference report the report shall 
        be disposed of as provided in section 313(d) of the 
        Congressional Budget Act of 1974.
            ``(5) Exceptions.--This subsection shall not apply if a 
        declaration of war by the Congress is in effect or if a joint 
        resolution pursuant to section 258 of the Balanced Budget and 
        Emergency Deficit Control Act of 1985 has been enacted.''.

SEC. 104. DISCLOSURE OF INTEREST COSTS.

    Section 308(a)(1) of the Congressional Budget Act of 1974 (2 U.S.C. 
639(a)(1)) is amended--
            (1) in subparagraph (B), by striking ``and'' after the 
        semicolon;
            (2) in subparagraph (C), by striking the period and 
        inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(D) containing a projection by the Congressional 
                Budget Office of the cost of the debt servicing that 
                would be caused by such measure for such fiscal year 
                (or fiscal years) and each of the 4 ensuing fiscal 
                years.''.

SEC. 105. EXECUTIVE BRANCH REPORT ON FISCAL EXPOSURES.

    (a) In General.--The President shall submit to the Committees on 
Appropriations, Budget, Finance, and Homeland Security and Governmental 
Affairs of the Senate, and the Committees on Appropriations, Budget, 
Government Reform, and Ways and Means of the House of Representatives, 
not later than 2 weeks before the first Monday in February of each 
year, a report (in this section referred to as the ``report'') on the 
fiscal exposures of the United States Federal Government and their 
implications for long-term financial health. The report shall also be 
included as part of the Consolidated Financial Statement of the United 
States Government.
    (b) Contents.--
            (1) In general.--The report shall include fiscal exposures 
        for the following categories of fiscal exposures:
                    (A) Debt.--Debt, including--
                            (i) total gross debt;
                            (ii) publicly held debt; and
                            (iii) debt held by Government accounts.
                    (B) Other financial liabilities.--Other financial 
                liabilities, including--
                            (i) civilian and military pensions;
                            (ii) post-retirement health benefits;
                            (iii) environmental liabilities;
                            (iv) accounts payable;
                            (v) loan guarantees; and
                            (vi) Social Security benefits due and 
                        payable.
                    (C) Financial commitments.--Financial commitments, 
                including--
                            (i) undelivered orders; and
                            (ii) long-term operating leases.
                    (D) Financial contingencies and other exposure.--
                Financial contingencies and other exposures, 
                including--
                            (i) unadjudicated claims;
                            (ii) Federal insurance programs (including 
                        both the financial contingency for and risk 
                        assumed by such programs);
                            (iii) net future benefits under Social 
                        Security, Medicare Part A, Medicare Part B, and 
                        other social insurance programs;
                            (iv) life cycle costs, including deferred 
                        and future maintenance and operating costs 
                        associated with operating leases and the 
                        maintenance of capital assets;
                            (v) unfunded portions of incrementally 
                        funded capital projects;
                            (vi) disaster relief; and
                            (vii) others as deemed appropriate.
            (2) Estimates.--Where available, estimates for each 
        exposure should be included. Where reasonable estimates are not 
        available, a range of estimates may be appropriate.
            (3) Other exposures.--Exposures that are analogous to those 
        specified in paragraph (1) shall also be included in the 
        exposure categories identified in such paragraph.
    (c) Format.--The report shall include a 1-page list of all 
exposures. Additional disclosures shall include descriptions of 
exposures, the estimation methodologies and significant assumptions 
used, and an analysis of the implications of the exposures for the 
long-term financial outlook. Additional analysis deemed informative may 
be provided on subsequent pages.
    (d) Review With Congress.--Following the submission of the report 
on fiscal exposures to the Senate and the House of Representatives, the 
Comptroller General shall review and report to the committee reviewing 
the report on the report, discussing--
            (1) the extent to which all required disclosures under this 
        section have been made;
            (2) the quality of the cost estimates;
            (3) the scope of the information;
            (4) the long-range financial outlook; and
            (5) any other matters deemed appropriate.
    (e) Definitions.--In this section:
            (1) Liabilities.--The terms ``liabilities'', 
        ``commitments'', and ``contingencies'' shall be defined in 
        accordance with generally accepted accounting principles and 
        standards of the United States Federal Government.
            (2) Net future benefit payments.--The term ``net future 
        benefit payments'' means the net present value of negative 
        cashflow. Negative cashflow is to be calculated as the current 
        amount of funds needed to cover projected shortfalls, excluding 
        trust fund balances, over a 75-year period. This estimate 
        should include births during the period and individuals below 
        age 15 as of January 1 of the valuation year.
            (3) Risk assumed.--The term ``risk assumed'' means the full 
        portion of the risk premium based on the expected cost of 
        losses inherent in the Government's commitment that is not 
        charged to the insured. For example, the present value of 
        unpaid expected losses net of associated premiums, based on the 
        risk assumed as a result of insurance coverage.

SEC. 106. SENATE SETS 302(B) ALLOCATIONS.

    The Congressional Budget Act of 1974 (2 U.S.C. 621 et seq.) is 
amended--
            (1) in section 301(e)(2)(F) (2 U.S.C. 632(e)(2)(F)), by 
        striking ``section 302(a)'' and inserting ``subsections (a) and 
        (b) of section 302''; and
            (2) in section 302 (2 U.S.C. 633), by striking subsection 
        (b) and inserting the following:
    ``(b) Suballocations for Appropriations Committee.--The joint 
explanatory statement accompanying a conference report on a concurrent 
resolution on the budget shall include suballocations of amounts 
allocated to the Committees on Appropriations of each amount allocated 
to those committees under subsection (a) among each of the 
subcommittees of those committees.''.

SEC. 107. LONG-TERM COST RECOGNITION POINT OF ORDER.

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

              ``long-term cost recognition point of order

    ``Sec. 318. (a) Congressional Budget Office Analysis.--
            ``(1) In general.--CBO shall, in conjunction with the 
        analysis required by section 402, prepare and submit to the 
        Committees on the Budget of the House of Representatives and 
        Senate a report on each bill, joint resolution, amendment, 
        motion, or conference report reported by any committee of the 
        House of Representatives or the Senate that contains any cost 
        drivers that CBO concludes are likely to have the effect of 
        increasing the cost path of that measure such that the 
        estimated discounted cash flows of the measure in the 10 years 
        following the 10th year after the measure takes effect would be 
        150 percent or greater of the level of the estimated discounted 
        cash flows of the measure at the end of the 10 years following 
        the enactment of the measure.
            ``(2) Projections.--Where possible, CBO should use existing 
        long-term projections of cost drivers prepared by the 
        appropriate Federal agency.
            ``(3) Limit.--Nothing in this section requires CBO to 
        develop cost estimates for a measure beyond the 10th year after 
        the measure takes effect.
    ``(b) Cost Drivers.--Cost drivers CBO shall consider under 
subsection (a) include--
            ``(1) demographic changes;
            ``(2) new technologies; and
            ``(3) environmental factors.
    ``(c) Point of Order.--It shall not be in order in the House of 
Representatives or the Senate to consider any bill, joint resolution, 
amendment, motion, or conference report that CBO determines will 
increase the level of the estimated discounted cash flows of that 
measure as reported in subsection (a) by 150 percent or more.''.

 TITLE II--REFORM OF BUDGETARY TREATMENT OF FEDERAL INSURANCE PROGRAMS

SEC. 201. 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 2005'.

``SEC. 602. BUDGETARY TREATMENT.

    ``(a) President's Budget.--Beginning with fiscal year 2010, the 
budget of the Government submitted 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 taxpayers 
                to the financing account; and
                    ``(B) pay actual insurance program administrative 
                costs; and
            ``(2) the financing account shall--
                    ``(A) receive premiums and other income;
                    ``(B) pay all claims for insurance and receive all 
                recoveries; and
                    ``(C) transfer to the program account on not less 
                than an annual basis amounts necessary to pay insurance 
                program administrative costs;
            ``(3) a negative risk-assumed cost shall be transferred 
        from the financing account to the program account, and shall be 
        transferred from the program account to the general fund; and
            ``(4) all payments by or receipts of the financing accounts 
        shall be treated in the budget as a means of financing.
    ``(c) Appropriations Required.--(1) Notwithstanding any other 
provision of law, insurance commitments may be made for fiscal year 
2008 and thereafter only to the extent that new budget authority to 
cover their risk-assumed cost is provided in advance in an 
appropriation Act.
    ``(2) An outstanding insurance commitment shall not be modified in 
a manner that increases its risk-assumed cost unless budget authority 
for the additional cost has been provided in advance.
    ``(3) Paragraph (1) shall not apply to Federal insurance programs 
that constitute entitlements.
    ``(d) Reestimates.--
            ``(1) In general.--The risk-assumed cost for a fiscal year 
        shall be reestimated in each subsequent year. Such reestimate 
        can equal zero. In the case of a positive reestimate, the 
        amount of the reestimate shall be paid from the program account 
        to the financing account. In the case of a negative reestimate, 
        the amount of the reestimate shall be paid from the financing 
        account to the program account, and shall be transferred from 
        the program account to the general fund. Reestimates shall be 
        displayed as a distinct and separately identified subaccount in 
        the program account.
            ``(2) Appropriations.--There are appropriated such sums as 
        are necessary to fund a positive reestimate under paragraph 
        (1).
    ``(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 2007. 
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 2007, 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.--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.
    ``(d) 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 2009, 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 `CBO' means the Director of the 
        Congressional Budget Office.
            ``(2) The term `current' has the same meaning as in section 
        250(c)(9) of the Balanced Budget and Emergency Deficit Control 
        Act of 1985.
            ``(3) The term `Federal insurance program' means a program 
        that makes insurance commitments and includes the list of such 
        programs as to be defined by the budget concepts commission, as 
        required by title IV of the Truth in Budgeting and Social 
        Security Protection Act of 2005.
            ``(4) 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.
            ``(5) The term `GAO' means the Comptroller General of the 
        United States.
            ``(6) The term `insurance commitment' means an agreement in 
        advance by a Federal agency to indemnify a non-Federal 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.
            ``(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 `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.
            ``(9) The term `OMB' means the Director of the Office of 
        Management and Budget.
            ``(10) The term `program account' means the budget account 
        for the risk-assumed cost, and for paying all costs of 
        administering the insurance program, and is the account from 
        which the risk-assumed cost is disbursed to the financing 
        account.
            ``(11)(A) The term `risk-assumed cost' means the net 
        present value of the estimated cash flows to and from the 
        Government resulting from an insurance commitment or 
        modification thereof.
            ``(B) The cash flows associated with an insurance 
        commitment include--
                    ``(i) expected claims payments inherent in the 
                Government's commitment;
                    ``(ii) net premiums (expected premium collections 
                received from or on behalf of the insured less expected 
                administrative expenses);
                    ``(iii) expected recoveries; and
                    ``(iv) expected changes in claims, premiums, or 
                recoveries resulting from the exercise by the insured 
                of any option included in the insurance commitment.
            ``(C) The cost of a modification is the difference between 
        the current estimate of the net present value of the remaining 
        cash flows under the terms of the insurance commitment, and the 
        current estimate of the net present value of the remaining cash 
        flows under the terms of the insurance commitment as modified.
            ``(D) The cost of a reestimate is the difference between 
        the net present value of the amount currently required by the 
        financing account to pay estimated claims and other 
        expenditures and the amount currently available in the 
        financing account. The cost of a reestimate shall be accounted 
        for in the current year in the budget of the Government 
        submitted 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.

``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 2006 through 2011 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, 2009, for each Federal insurance 
program.
    ``(2) These financing accounts shall be used in implementing the 
budget accounting required by this title.

``SEC. 606. EFFECTIVE DATE.

    ``(a) In General.--This title shall take effect immediately and 
shall expire on September 30, 2011.
    ``(b) Special Rule.--If this title is not reauthorized by September 
30, 2011, then the accounting structure and budgetary treatment of 
Federal insurance programs shall revert to the accounting structure and 
budgetary treatment in effect immediately before the date of enactment 
of this title.''.
    (b) Conforming Amendment.--The table of contents set forth in 
section 1(b) of the Congressional Budget and Impoundment Control Act of 
1974 is amended by inserting after the item relating to section 507 the 
following new items:

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

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

            TITLE III--BIENNIAL BUDGETING AND APPROPRIATIONS

SEC. 301. REVISION OF TIMETABLE.

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

                              ``timetable

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

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

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

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

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

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

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

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

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

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

SEC. 305. MULTIYEAR AUTHORIZATIONS.

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

                   ``authorizations of appropriations

    ``Sec. 319. (a) Point of Order.--It shall not be in order in the 
House of Representatives or the Senate to consider--
            ``(1) any bill, joint resolution, amendment, motion, or 
        conference report that authorizes appropriations for a period 
        of less than 2 fiscal years, unless the program, project, or 
        activity for which the appropriations are authorized will 
        require no further appropriations and will be completed or 
        terminated after the appropriations have been expended; and
            ``(2) in any odd-numbered year, any authorization or 
        revenue bill or joint resolution until Congress completes 
        action on the biennial budget resolution, all regular biennial 
        appropriations bills, and all reconciliation bills.
    ``(b) Applicability.--In the Senate, subsection (a) shall not apply 
to--
            ``(1) any measure that is privileged for consideration 
        pursuant to a rule or statute;
            ``(2) any matter considered in Executive Session; or
            ``(3) an appropriations measure or reconciliation bill.''.
    (b) Amendment to Table of Contents.--The table of contents set 
forth in section 1(b) of the Congressional Budget and Impoundment 
Control Act of 1974 is amended by adding after the item relating to 
section 318 the following new item:

``Sec. 319. Authorizations of appropriations.''.

SEC. 306. GOVERNMENT PLANS ON A BIENNIAL BASIS.

    (a) Strategic Plans.--Section 306 of title 5, United States Code, 
is amended--
            (1) in subsection (a), by striking ``September 30, 1997'' 
        and inserting ``September 30, 2005'';
            (2) in subsection (b)--
                    (A) by striking ``at least every three years'' and 
                inserting ``at least every four years''; and
                    (B) by striking ``five years forward'' and 
                inserting ``six years forward''; and
            (3) in subsection (c), by inserting a comma after 
        ``section'' the second place it appears and adding ``including 
        a strategic plan submitted by September 30, 2005 meeting the 
        requirements of subsection (a)''.
    (b) Budget Contents and Submission to Congress.--Paragraph (28) of 
section 1105(a) of title 31, United States Code, is amended by striking 
``beginning with fiscal year 1999, a'' and inserting ``beginning with 
fiscal year 2006, a biennial''.
    (c) Performance Plans.--Section 1115 of title 31, United States 
Code, is amended--
            (1) in subsection (a)--
                    (A) in the matter before paragraph (1)--
                            (i) by striking ``section 1105(a)(29)'' and 
                        inserting ``section 1105(a)(28)''; and
                            (ii) by striking ``an annual'' and 
                        inserting ``a biennial'';
                    (B) in paragraph (1), by inserting after ``program 
                activity'' the following: ``for both years 1 and 2 of 
                the biennial plan'';
                    (C) in paragraph (5), by striking ``and'' after the 
                semicolon;
                    (D) in paragraph (6), by striking the period and 
                inserting a semicolon; and inserting ``and'' after the 
                inserted semicolon; and
                    (E) by adding after paragraph (6) the following:
            ``(7) cover a 2-year period beginning with the first fiscal 
        year of the next biennial budget cycle.'';
            (2) in subsection (d), by striking ``annual'' and inserting 
        ``biennial''; and
            (3) in paragraph (6) of subsection (f), by striking 
        ``annual'' and inserting ``biennial''.
    (d) Managerial Accountability and Flexibility.--Section 9703 of 
title 31, United States Code, relating to managerial accountability, is 
amended--
            (1) in subsection (a)--
                    (A) in the first sentence by striking ``annual''; 
                and
                    (B) by striking ``section 1105(a)(29)'' and 
                inserting ``section 1105(a)(28)''; and
            (2) in subsection (e)--
                    (A) in the first sentence by striking ``one or'' 
                before ``years'';
                    (B) in the second sentence by striking ``a 
                subsequent year'' and inserting ``for a subsequent 2-
                year period''; and
                    (C) in the third sentence by striking ``three'' and 
                inserting ``four''.
    (e) Pilot Projects for Performance Budgeting.--Section 1119 of 
title 31, United States Code, is amended--
            (1) in paragraph (1) of subsection (d), by striking 
        ``annual'' and inserting ``biennial''; and
            (2) in subsection (e), by striking ``annual'' and inserting 
        ``biennial''.
    (f) Strategic Plans.--Section 2802 of title 39, United States Code, 
is amended--
            (1) in subsection (a), by striking ``September 30, 1997'' 
        and inserting ``September 30, 2003'';
            (2) in subsection (b), by striking ``at least every three 
        years'' and inserting ``at least every 4 years'';
            (3) by striking ``five years forward'' and inserting ``six 
        years forward''; and
            (4) in subsection (c), by inserting a comma after 
        ``section'' the second place it appears and inserting 
        ``including a strategic plan submitted by September 30, 2005 
        meeting the requirements of subsection (a)''.
    (g) Performance Plans.--Section 2803(a) of title 39, United States 
Code, is amended--
            (1) in the matter before paragraph (1), by striking ``an 
        annual'' and inserting ``a biennial'';
            (2) in paragraph (1), by inserting after ``program 
        activity'' the following: ``for both years 1 and 2 of the 
        biennial plan'';
            (3) in paragraph (5), by striking ``and'' after the 
        semicolon;
            (4) in paragraph (6), by striking the period and inserting 
        ``; and''; and
            (5) by adding after paragraph (6) the following:
            ``(7) cover a 2-year period beginning with the first fiscal 
        year of the next biennial budget cycle.''.
    (h) Committee Views of Plans and Reports.--Section 301(d) of the 
Congressional Budget Act (2 U.S.C. 632(d)) is amended by adding at the 
end ``Each committee of the Senate or the House of Representatives 
shall review the strategic plans, performance plans, and performance 
reports, required under section 306 of title 5, United States Code, and 
sections 1115 and 1116 of title 31, United States Code, of all agencies 
under the jurisdiction of the committee. Each committee may provide its 
views on such plans or reports to the Committee on the Budget of the 
applicable House.''.
    (i) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        take effect on March 1, 2007.
            (2) Agency actions.--Effective on and after the date of 
        enactment of this Act, each agency shall take such actions as 
        necessary to prepare and submit any plan or report in 
        accordance with the amendments made by this Act.

SEC. 307. BIENNIAL APPROPRIATIONS BILLS.

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

            ``consideration of biennial appropriations bills

    ``Sec. 320. It shall not be in order in the House of 
Representatives or the Senate in any odd-numbered year to consider any 
regular bill providing new budget authority or a limitation on 
obligations under the jurisdiction of any of the subcommittees of the 
Committees on Appropriations for only the first fiscal year of a 
biennium, unless the program, project, or activity for which the new 
budget authority or obligation limitation is provided will require no 
additional authority beyond 1 year and will be completed or terminated 
after the amount provided has been expended.''.
    (b) Amendment to Table of Contents.--The table of contents set 
forth in section 1(b) of the Congressional Budget and Impoundment 
Control Act of 1974 is amended by adding after the item relating to 
section 319 the following new item:

``Sec. 320. Consideration of biennial appropriations bills.''.

SEC. 308. REPORT ON TWO-YEAR FISCAL PERIOD.

    Not later than 180 days after the date of enactment of this 
subpart, the Director of OMB shall--
            (1) determine the impact and feasibility of changing the 
        definition of a fiscal year and the budget process based on 
        that definition to a 2-year fiscal period with a biennial 
        budget process based on the 2-year period; and
            (2) report the findings of the study to the Committees on 
        the Budget of the House of Representatives and the Senate.

SEC. 309. EFFECTIVE DATE.

    (a) In General.--Except as provided in sections 306 and 308 and 
subsection (b), this title and the amendments made by this title shall 
take effect on January 1, 2007, and shall apply to budget resolutions 
and appropriations for the biennium beginning with fiscal year 2008.
    (b) Authorizations for the Biennium.--For purposes of 
authorizations for the biennium beginning with fiscal year 2006, the 
provisions of this title and the amendments made by this title relating 
to 2-year authorizations shall take effect January 1, 2005.

            TITLE IV--COMMISSION ON FEDERAL BUDGET CONCEPTS

SEC. 401. ESTABLISHMENT OF COMMISSION ON FEDERAL BUDGET CONCEPTS.

    There is established a commission to be known as the Commission on 
Federal Budget Concepts (referred to in this title as the 
``Commission'').

SEC. 402. POWERS AND DUTIES OF COMMISSION.

    (a) Duties of the Commission.--
            (1) In general.--The duties of the Commission shall 
        include--
                    (A) a review of the 1967 report of the President's 
                Commission on Budget Concepts and assessment of the 
                implementation of the recommendations of that report;
                    (B) identification and evaluation of the structure, 
                concepts, classifications, and bases of accounting of 
                the Federal budget;
                    (C) identification of any applicable general 
                accounting principles and practices in the private 
                sector and evaluation of their value to budget 
                practices in the Federal sector; and
                    (D) a report that shall include recommendations for 
                modifications to the structure, concepts, 
                classifications, and bases of accounting of the Federal 
                budget that would enhance the usefulness of the budget 
                for public policy and financial planning.
            (2) Specific areas of consideration.--Specific areas for 
        consideration by the Commission shall include the following:
                    (A) Should part ownership by the Government be 
                sufficient to make an entity Federal and to include it 
                in the budget?
                    (B) When is Federal control of an entity, including 
                control exercised through Federal regulations, 
                sufficient to cause it to be included in the budget?
                    (C) Are privately owned assets under long-term 
                leases to the Federal Government effectively purchased 
                by the Government during the lease period?
                    (D) Should there be an ``off-budget'' section of 
                the budget? How should the Federal Government 
                differentiate between spending and receipts?
                    (E) Should the total costs of refundable tax 
                credits belong on the spending side of the budget?
                    (F) When should Federal Reserve earnings be 
                reported as receipts or offsetting receipts (negative 
                spending) in the net interest portion of the budget?
                    (G) What is a ``user fee'' and under what 
                circumstances is it properly an offset to spending or a 
                governmental receipt? What uses do trust funds have?
                    (H) Do trust fund balances provide misleading 
                information? Do the roughly 200 trust funds add clarity 
                or confusion to the budget process?
                    (I) Are there better ways than trust fund 
                accounting to identify long-term liabilities?
                    (J) Should accrual budgetary accounting be adopted 
                for Federal retirement, military retirement, or Social 
                Security and other entitlements?
                    (K) Are off-budget accounts suitable for capturing 
                accruals in the budget?
                    (L) What is the appropriate budgetary treatment 
                of--
                            (i) purchases and sales of financial 
                        assets, including equities, bonds, and foreign 
                        currencies;
                            (ii) emergency spending;
                            (iii) the cost of holding fixed assets 
                        (cost of capital);
                            (iv) sales of physical assets; and
                            (v) seigniorage on coins and currency?
                    (M) When policy changes have strong but indirect 
                feedback effects on revenues and other aggregates, 
                should they be reported in budget estimates?
                    (N) How should the policies that are one-sided bets 
                on economic events (probabilistic scoring) be 
                represented in the budget?
    (b) Powers of the Commission.--
            (1) Conduct of business.--The Commission may hold hearings, 
        take testimony, receive evidence, and undertake such other 
        activities necessary to carry out its duties.
            (2) Access to information.--The Commission may secure 
        directly from any department or agency of the United States 
        information necessary to carry out its duties. Upon request of 
        the Chair of the Commission, the head of that department or 
        agency shall furnish that information to the Commission.
            (3) Postal service.--The Commission may use the United 
        States mails in the same manner and under the same conditions 
        as other departments and agencies of the United States.

SEC. 403. MEMBERSHIP.

    (a) Membership.--The Commission shall be composed of 12 members as 
follows:
            (1) Three members appointed by the chairman of the 
        Committee on the Budget of the Senate.
            (2) Three members appointed by the chairman of the 
        Committee on the Budget of the House of Representatives.
            (3) Three members appointed by the ranking member of the 
        Committee on the Budget of the Senate.
            (4) Three members appointed by the ranking member of the 
        Committee on the Budget of the House of Representatives.
    (b) Qualifications and Term.--
            (1) Qualifications.--Members appointed to the Commission 
        pursuant to subsection (a) shall--
                    (A) have expertise and experience in the fields or 
                disciplines related to the subject areas to be 
                considered by the Commission; and
                    (B) not be Members of Congress.
            (2) Term of appointment.--The term of an appointment to the 
        Commission shall be for the life of the Commission.
            (3) Chair and vice chair.--The Chair and Vice Chair may be 
        elected from among the members of the Commission. The Vice 
        Chair shall assume the duties of the Chair in the Chair's 
        absence.
    (c) Meetings; Quorum; and Vacancies.--
            (1) Meetings.--The Commission shall meet at least once a 
        month on a day to be decided by the Commission. The Commission 
        may meet at such other times at the call of the Chair or of a 
        majority of its voting members. The meetings of the Commission 
        shall be open to the public, unless by public vote, the 
        Commission shall determine to close a meeting or any portion of 
        a meeting to the public.
            (2) Quorum.--A majority of the voting membership shall 
        constitute a quorum of the Commission, except that 3 or more 
        voting members may conduct hearings.
            (3) Vacancies.--A vacancy on the Commission shall be filled 
        in the same manner in which the original appointment was filled 
        under subsection (a).
    (d) Compensation and Expenses.--Members of the Commission shall 
serve without pay for their service on the Commission, but may receive 
travel expenses, including per diem in lieu of subsistence, at rates 
authorized for employees of agencies under subchapter I of chapter 57 
of title 5, United States Code.

SEC. 404. STAFF AND SUPPORT SERVICES.

    (a) Staff.--With the advance approval of the Commission, the 
executive director may appoint such personnel as is appropriate. The 
staff of the Commission shall be appointed without regard to political 
affiliation and without regard to the provisions of title 5, United 
States Code, governing appointments in the competitive service, and may 
be paid without regard to the provisions of chapter 51 and subchapter 
III of chapter 53 of such title relating to classifications and General 
Schedule pay rates.
    (b) Executive Director.--The Chairman shall appoint an executive 
director, who shall be paid the rate of basic pay for level II of the 
Executive Schedule.
    (c) Experts and Consultants.--With the advance approval of the 
Commission, the executive director may procure temporary and 
intermittent services under section 3109(b) of title 5, United States 
Code.
    (d) Technical and Administrative Assistance.--Upon the request of 
the Commission--
            (1) the head of any agency, office, or establishment within 
        the executive or legislative branches of the United States 
        shall provide, without reimbursement, such technical assistance 
        as the Commission determines is necessary to carry out its 
        duties; and
            (2) the Administrator of General Services shall provide, on 
        a reimbursable basis, such administrative support services as 
        the Commission may require.
    (e) Detail of Federal Personnel.--Upon the request of the 
Commission, the head of an agency, office, or establishment in the 
executive or legislative branch of the United States is authorized to 
detail, without reimbursement, any of the personnel of that agency, 
office, or establishment to the Commission to assist the Commission in 
carrying out its duties. Any such detail shall not interrupt or 
otherwise affect the employment status or privileges of that employee.
    (f) CBO.--The Director of the Congressional Budget Office shall 
provide the Commission with its latest research on the accuracy of its 
past budget and economic projections as compared to those of the Office 
of Management and Budget and, if possible, those of private sector 
forecasters. The Commission shall work with the Directors of the 
Congressional Budget Office and the Office of Management and Budget in 
their efforts to explain the factors affecting the accuracy of budget 
projections.

SEC. 405. REPORT.

    Not later than July 1, 2006, the Commission shall transmit a report 
to the President and to each House of Congress. The report shall 
contain a detailed statement of the findings and conclusions of the 
Commission, together with its recommendations for such legislative or 
administrative actions as it considers appropriate. No finding, 
conclusion, or recommendation may be made by the Commission unless 
approved by a majority of those voting, a quorum being present. At the 
request of any Commission member, the report shall include that 
member's dissenting findings, conclusions, or recommendations.

SEC. 406. TERMINATION.

    The Commission shall terminate 30 days after the date of 
transmission of the report required in section 405.

SEC. 407. FUNDING.

    There are authorized to be appropriated not more than $1,000,000 to 
carry out this title. Sums so appropriated shall remain available until 
expended.
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