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[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 311 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 311

   To cap discretionary spending, eliminate wasteful and duplicative 
  agencies, reform entitlement programs, and reform the congressional 
                            earmark process.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            January 8, 2009

Mr. Brady of Texas (for himself, Mr. Kingston, Mr. Akin, Mr. Barrett of 
South Carolina, Mr. Bartlett, Mrs. Blackburn, Mr. Broun of Georgia, Mr. 
Conaway, Mr. Franks of Arizona, Mr. Garrett of New Jersey, Mr. Gingrey 
   of Georgia, Mr. Hensarling, Mr. Jordan of Ohio, Mr. Lamborn, Mr. 
 McClintock, Mr. Pitts, and Mr. Posey) introduced the following bill; 
 which was referred to the Committee on the Budget, and in addition to 
  the Committees on Rules and Oversight and Government Reform, 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 cap discretionary spending, eliminate wasteful and duplicative 
  agencies, reform entitlement programs, and reform the congressional 
                            earmark process.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Spending Reform Act of 2009''.

                TITLE I--CAPS ON DISCRETIONARY SPENDING

SEC. 101. DISCRETIONARY SPENDING LIMITS.

    (a) Content of Concurrent Resolution on the Budget.--Section 301(a) 
of the Congressional Budget Act of 1974 is amended by striking ``and'' 
at the end of paragraph (6), by striking the period and inserting ``; 
and'' at the end of paragraph (7), and by inserting at the end the 
following new paragraph:
            ``(8) the discretionary spending limit.''.
    (b) Point of Order.--Section 312(b) of the Congressional Budget Act 
of 1974 is amended to read as follows:
    ``(b) Discretionary Spending Points of Order.--
            ``(1) In general.--(A) Except as otherwise provided in this 
        subsection, it shall not be in order in the House of 
        Representatives or the Senate to consider any bill or joint 
        resolution (or amendment, motion, or conference report on that 
        bill or resolution) that would exceed for any fiscal year the 
        discretionary spending limit set forth in the most recent 
        concurrent resolution on the budget for that fiscal year.
            ``(B) It shall not be in order in the House of 
        Representatives or the Senate to consider any concurrent 
        resolution on the budget unless it sets forth a discretionary 
        spending limit for the fiscal year beginning on October 1 of 
        the calendar year in which that concurrent resolution is 
        reported and for each of the 4 ensuing fiscal years that for 
        any such fiscal year does not exceed the discretionary spending 
        limit for the previous fiscal year increased by the estimated 
        change in the Consumer Price Index for All Urban Consumers. The 
        discretionary spending limit for fiscal year 2010 is the number 
        set forth in section 312(b)(2) of the concurrent resolution on 
        the budget for fiscal year 2010.
            ``(2) Exceptions.--Paragraph (1)(A) shall not apply if a 
        declaration of war by the Congress is in effect.''.
    (c) Super Majority Point of Order in the Senate.--Subsection (c)(1) 
and subsection (d)(2) of section 904 of the Congressional Budget Act of 
1974 is amended by inserting ``312(b),'' after ``310(d)(2),'' each 
place it appears.

                TITLE II--SUNSETTING OF FEDERAL AGENCIES

SEC. 201. REVIEW AND ABOLISHMENT OF FEDERAL AGENCIES.

    (a) Schedule for Review.--Not later than one year after the date of 
the enactment of this Act, the Federal Agency Sunset Commission 
established under section 202 (in this title referred to as the 
``Commission'') shall submit to Congress a schedule for review by the 
Commission, at least once every 12 years (or less, if determined 
appropriate by Congress), of the abolishment or reorganization of each 
agency.
    (b) Review of Agencies Performing Related Functions.--In 
determining the schedule for review of agencies under subsection (a), 
the Commission shall provide that agencies that perform similar or 
related functions be reviewed concurrently to promote efficiency and 
consolidation.
    (c) Abolishment of Agencies.--
            (1) In general.--Each agency shall--
                    (A) be reviewed according to the schedule created 
                pursuant to this section; and
                    (B) be abolished not later than one year after the 
                date that the Commission completes its review of the 
                agency pursuant to such schedule, unless the agency is 
                reauthorized by the Congress.
            (2) Extension.--The deadline for abolishing an agency may 
        be extended for an additional two years after the date 
        described in paragraph (1)(B) if the Congress enacts 
        legislation extending such deadline by a vote of a super 
        majority of the House of Representatives and the Senate.

SEC. 202. ESTABLISHMENT OF COMMISSION.

    (a) Establishment.--There is established a commission to be known 
as the ``Federal Agency Sunset Commission''.
    (b) Composition.--The Commission shall be composed of 12 members 
(in this title referred to as the ``members'') who shall be appointed 
as follows:
            (1) Six members shall be appointed by the Speaker of the 
        House of Representatives, one of whom may include the Speaker 
        of the House of Representatives, with minority members 
        appointed with the consent of the minority leader of the House 
        of Representatives.
            (2) Six members shall be appointed by the majority leader 
        of the Senate, one of whom may include the majority leader of 
        the Senate, with minority members appointed with the consent of 
        the minority leader of the Senate.
    (c) Qualifications of Members.--
            (1) In general.--(A) Of the members appointed under 
        subsection (b)(1), four shall be members of the House of 
        Representatives (not more than two of whom may be of the same 
        political party), and two shall be an individual described in 
        subparagraph (C).
            (B) Of the members appointed under subsection (b)(2), four 
        shall be members of the Senate (not more than two of whom may 
        be of the same political party) and two shall be an individual 
        described in subparagraph (C).
            (C) An individual under this subparagraph is an 
        individual--
                    (i) who is not a member of Congress; and
                    (ii) with expertise in the operation and 
                administration of Government programs.
            (2) Continuation of membership.--If a member was appointed 
        to the Commission as a member of Congress and the member ceases 
        to be a member of Congress, that member shall cease to be a 
        member of the Commission. The validity of any action of the 
        Commission shall not be affected as a result of a member 
        becoming ineligible to serve as a member for the reasons 
        described in this paragraph.
    (d) Initial Appointments.--All initial appointments to the 
Commission shall be made not later than 90 days after the date of the 
enactment of this Act.
    (e) Chairman; Vice Chairman.--
            (1) Initial chairman.--An individual shall be designated by 
        the Speaker of the House of Representatives from among the 
        members initially appointed under subsection (b)(1) to serve as 
        Chairman of the Commission for a period of 2 years.
            (2) Initial vice chairman.--An individual shall be 
        designated by the majority leader of the Senate from among the 
        individuals initially appointed under subsection (b)(2) to 
        serve as Vice Chairman of the Commission for a period of two 
        years.
            (3) Alternate appointments of chairmen and vice chairmen.--
        Following the termination of the two-year period described in 
        paragraphs (1) and (2), the Speaker and the majority leader 
        shall alternate every two years in appointing the chairman and 
        Vice Chairman of the Commission.
    (f) Terms of Members.--
            (1) Members of congress.--Each member appointed to the 
        Commission who is a member of Congress shall serve for a term 
        of six years, except that, of the members first appointed under 
        paragraphs (1) and (2) of subsection (b), 2 members shall be 
        appointed to serve a term of three years under each such 
        paragraph.
            (2) Other members.--Each member of the Commission who is 
        not a member of Congress shall serve for a term of three years.
            (3) Term limit.--(A) A member of the Commission who is a 
        member of Congress and who serves more than three years of a 
        term may not be appointed to another term as a member.
            (B) A member of the Commission who is not a member of 
        Congress and who serves as a member of the Commission for more 
        than 56 months may not be appointed to another term as a 
        member.
    (g) Powers of Commission.--
            (1) Hearings and sessions.--The Commission may, for the 
        purpose of carrying out this title, hold such hearings, sit and 
        act at such times and places, take such testimony, and receive 
        such evidence as the Commission considers appropriate. The 
        Commission may administer oaths to witnesses appearing before 
        it.
            (2) Obtaining information.--The Commission may secure 
        directly from any department or agency of the United States 
        information necessary to enable it to carry out its duties 
        under this title. Upon request of the Chairman, the head of 
        that department or agency shall furnish that information to the 
        Commission in a full and timely manner.
            (3) Subpoena power.--(A) The Commission may issue a 
        subpoena to require the attendance and testimony of witnesses 
        and the production of evidence relating to any matter under 
        investigation by the Commission.
            (B) If a person refuses to obey an order or subpoena of the 
        Commission that is issued in connection with a Commission 
        proceeding, the Commission may apply to the United States 
        district court in the judicial district in which the proceeding 
        is held for an order requiring the person to comply with the 
        subpoena or order.
            (4) Immunity.--The Commission is an agency of the United 
        States for purposes of part V of title 18, United States Code 
        (relating to immunity of witnesses).
            (5) Contract authority.--The Commission may contract with 
        and compensate government and private agencies or persons for 
        services without regard to section 3709 of the Revised Statutes 
        (41 U.S.C. 5).
    (h) Commission Procedures.--
            (1) Meetings.--The Commission shall meet at the call of the 
        Chairman.
            (2) Quorum.--Seven members of the Commission shall 
        constitute a quorum but a lesser number may hold hearings.
    (i) Personnel Matters.--
            (1) Compensation.--Members shall not be paid by reason of 
        their service as members.
            (2) Travel expenses.--Each member shall receive travel 
        expenses, including per diem in lieu of subsistence, in 
        accordance with sections 5702 and 5703 of title 5, United 
        States Code.
            (3) Director.--The Commission shall have a Director who 
        shall be appointed by the Chairman. The Director shall be paid 
        at a rate not to exceed the maximum rate of basic pay payable 
        for GS-15 of the General Schedule.
            (4) Staff.--The Director may appoint and fix the pay of 
        additional personnel as the Director considers appropriate.
            (5) Applicability of certain civil service laws.--The 
        Director and staff of the Commission shall be appointed subject 
        to the provisions of title 5, United States Code, governing 
        appointments in the competitive service, and shall be paid in 
        accordance with the provisions of chapter 51 and subchapter III 
        of chapter 53 of that title relating to classification and 
        General Schedule pay rates.
    (j) Other Administrative Matters.--
            (1) Postal and printing services.--The Commission may use 
        the United States mails and obtain printing and binding 
        services in the same manner and under the same conditions as 
        other departments and agencies of the United States.
            (2) Administrative support services.--Upon the request of 
        the Commission, the Administrator of General Services shall 
        provide to the Commission, on a reimbursable basis, the 
        administrative support services necessary for the Commission to 
        carry out its duties under this title
            (3) Experts and consultants.--The Commission may procure 
        temporary and intermittent services under section 3109(b) of 
        title 5, United States Code.
    (k) Sunset of Commission.--The Commission shall terminate on 
December 31, 2034, unless reauthorized by Congress.

SEC. 203. REVIEW OF EFFICIENCY AND NEED FOR FEDERAL AGENCIES.

    (a) In General.--The Commission shall review the efficiency and 
public need for each agency in accordance with the criteria described 
in section 204.
    (b) Recommendations; Report to Congress.--The Commission shall 
submit to Congress and the President not later than September 1 of each 
year a report containing--
            (1) an analysis of the efficiency of operation and public 
        need for each agency to be reviewed in the year in which the 
        report is submitted pursuant to the schedule submitted to 
        Congress under section 201;
            (2) recommendations on whether each such agency should be 
        abolished or reorganized;
            (3) recommendations on whether the functions of any other 
        agencies should be consolidated, transferred, or reorganized in 
        an agency to be reviewed in the year in which the report is 
        submitted pursuant to the schedule submitted to Congress under 
        section 201; and
            (4) recommendations for administrative and legislative 
        action with respect to each such agency, but not including 
        recommendations for appropriation levels.
    (c) Draft Legislation.--The Commission shall submit to Congress and 
the President not later than September 1 of each year a draft of 
legislation to carry out the recommendations of the Commission under 
subsection (b).
    (d) Information Gathering.--The Commission shall--
            (1) conduct public hearings on the abolishment of each 
        agency reviewed under subsection (b);
            (2) provide an opportunity for public comment on the 
        abolishment of each such agency;
            (3) require the agency to provide information to the 
        Commission as appropriate; and
            (4) consult with the General Accounting Office, the Office 
        of Management and Budget, the Comptroller General, and the 
        chairman and ranking minority members of the committees of 
        Congress with oversight responsibility for the agency being 
        reviewed regarding the operation of the agency.
    (e) Use of Program Inventory.--The Commission shall use the program 
inventory prepared under section 208 in reviewing the efficiency and 
public need for each agency under subsection (a).

SEC. 204. CRITERIA FOR REVIEW.

    The Commission shall evaluate the efficiency and public need for 
each agency pursuant to section 203 using the following criteria:
            (1) The effectiveness, and the efficiency of the operation 
        of, the programs carried out by each such agency.
            (2) Whether the programs carried out by the agency are 
        cost-effective.
            (3) Whether the agency has acted outside the scope of its 
        original authority, and whether the original objectives of the 
        agency have been achieved.
            (4) Whether less restrictive or alternative methods exist 
        to carry out the functions of the agency.
            (5) The extent to which the jurisdiction of, and the 
        programs administered by, the agency duplicate or conflict with 
        the jurisdiction and programs of other agencies.
            (6) The potential benefits of consolidating programs 
        administered by the agency with similar or duplicative programs 
        of other agencies, and the potential for consolidating such 
        programs.
            (7) The number and types of beneficiaries or persons served 
        by programs carried out by the agency.
            (8) The extent to which any trends, developments, and 
        emerging conditions that are likely to affect the future nature 
        and extent of the problems or needs that the programs carried 
        out by the agency are intended to address.
            (9) The extent to which the agency has complied with the 
        provisions contained in the Government Performance and Results 
        Act of 1993 (Public Law 103-62; 107 Stat. 285).
            (10) The promptness and effectiveness with which the agency 
        seeks public input and input from State and local governments 
        on the efficiency and effectiveness of the performance of the 
        functions of the agency.
            (11) Whether the agency has worked to enact changes in the 
        law that are intended to benefit the public as a whole rather 
        than the specific business, institution, or individuals that 
        the agency regulates.
            (12) The extent to which the agency has encouraged 
        participation by the public as a whole in making its rules and 
        decisions rather than encouraging participation solely by those 
        it regulates.
            (13) The extent to which the public participation in 
        rulemaking and decisionmaking of the agency has resulted in 
        rules and decisions compatible with the objectives of the 
        agency.
            (14) The extent to which the agency complies with section 
        552 of title 5, United States Code (commonly known as the 
        ``Freedom of Information Act'').
            (15) The extent to which the agency complies with equal 
        employment opportunity requirements regarding equal employment 
        opportunity.
            (16) The extent of the regulatory, privacy, and paperwork 
        impacts of the programs carried out by the agency.
            (17) The extent to which the agency has coordinated with 
        State and local governments in performing the functions of the 
        agency.
            (18) The potential effects of abolishing the agency on 
        State and local governments.
            (19) The extent to which changes are necessary in the 
        authorizing statutes of the agency in order that the functions 
        of the agency can be performed in the most efficient and 
        effective manner.

SEC. 205. COMMISSION OVERSIGHT.

    (a) Monitoring of Implementation of Recommendations.--The 
Commission shall monitor implementation of laws enacting provisions 
that incorporate recommendations of the Commission with respect to 
abolishment or reorganization of agencies.
    (b) Monitoring of Other Relevant Legislation.--
            (1) In general.--The Commission shall review and report to 
        Congress on all legislation introduced in either house of 
        Congress that would establish--
                    (A) a new agency; or
                    (B) a new program to be carried out by an existing 
                agency.
            (2) Report to congress.--The Commission shall include in 
        each report submitted to Congress under paragraph (1) an 
        analysis of whether--
                    (A) the functions of the proposed agency or program 
                could be carried out by one or more existing agencies;
                    (B) the functions of the proposed agency or program 
                could be carried out in a less restrictive manner than 
                the manner proposed in the legislation; and
                    (C) the legislation provides for public input 
                regarding the performance of functions by the proposed 
                agency or program.

SEC. 206. RULEMAKING AUTHORITY.

    The Commission may promulgate such rules as necessary to carry out 
this title.

SEC. 207. RELOCATION OF FEDERAL EMPLOYEES.

    If the position of an employee of an agency is eliminated as a 
result of the abolishment of an agency in accordance with this title, 
there shall be a reasonable effort to relocate such employee to a 
position within another agency.

SEC. 208. PROGRAM INVENTORY.

    (a) Preparation.--The Comptroller General and the Director of the 
Congressional Budget Office, in cooperation with the Director of the 
Congressional Research Service, shall prepare an inventory of Federal 
programs (in this title referred to as the ``program inventory'') 
within each agency.
    (b) Purpose.--The purpose of the program inventory is to advise and 
assist the Congress and the Commission in carrying out the requirements 
of this title. Such inventory shall not in any way bind the committees 
of the Senate or the House of Representatives with respect to their 
responsibilities under this title and shall not infringe on the 
legislative and oversight responsibilities of such committees. The 
Comptroller General shall compile and maintain the inventory and the 
Director of the Congressional Budget Office shall provide budgetary 
information for inclusion in the inventory.
    (c) Inventory Content.--The program inventory shall set forth for 
each program each of the following matters:
            (1) The specific provision or provisions of law authorizing 
        the program.
            (2) The committees of the Senate and the House of 
        Representatives which have legislative or oversight 
        jurisdiction over the program.
            (3) A brief statement of the purpose or purposes to be 
        achieved by the program.
            (4) The committees which have jurisdiction over legislation 
        providing new budget authority for the program, including the 
        appropriate subcommittees of the Committees on Appropriations 
        of the Senate and the House of Representatives.
            (5) The agency and, if applicable, the subdivision thereof 
        responsible for administering the program.
            (6) The grants-in-aid, if any, provided by such program to 
        State and local governments.
            (7) The next reauthorization date for the program.
            (8) A unique identification number which links the program 
        and functional category structure.
            (9) The year in which the program was originally 
        established and, where applicable, the year in which the 
        program expires.
            (10) Where applicable, the year in which new budget 
        authority for the program was last authorized and the year in 
        which current authorizations of new budget authority expire.
    (d) Budget Authority.--The report also shall set forth for each 
program whether the new budget authority provided for such programs 
is--
            (1) authorized for a definite period of time;
            (2) authorized in a specific dollar amount but without 
        limit of time;
            (3) authorized without limit of time or dollar amounts;
            (4) not specifically authorized; or
            (5) permanently provided,
as determined by the Director of the Congressional Budget Office.
    (e) CBO Information.--For each program or group of programs, the 
program inventory also shall include information prepared by the 
Director of the Congressional Budget Office indicating each of the 
following matters:
            (1) The amounts of new budget authority authorized and 
        provided for the program for each of the preceding four fiscal 
        years and, where applicable, the four succeeding fiscal years.
            (2) The functional and subfunctional category in which the 
        program is presently classified and was classified under the 
        fiscal year 2010 budget.
            (3) The identification code and title of the appropriation 
        account in which budget authority is provided for the program.
    (f) Mutual Exchange of Information.--The General Accounting Office, 
the Congressional Research Service, and the Congressional Budget Office 
shall permit the mutual exchange of available information in their 
possession which would aid in the compilation of the program inventory.
    (g) Assistance by Executive Branch.--The Office of Management and 
Budget, and the Executive agencies and the subdivisions thereof shall, 
to the extent necessary and possible, provide the General Accounting 
Office with assistance requested by the Comptroller General in the 
compilation of the program inventory.

SEC. 209. DEFINITION OF AGENCY.

    As used in this title, the term ``agency'' has the meaning given 
that term by section 105 of title 5, United States Code, except that 
such term includes an advisory committee as that term is defined in 
section 102(2) of the Federal Advisory Committee Act.

SEC. 210. OFFSET OF AMOUNTS APPROPRIATED.

    Amounts appropriated to carry out this title shall be offset by a 
reduction in amounts appropriated to carry out programs of other 
Federal agencies.

  TITLE III--ESTABLISHMENT OF JOINT SELECT COMMITTEE ON EARMARK REFORM

SEC. 301. JOINT SELECT COMMITTEE ON EARMARK REFORM.

    (a) Establishment and Composition.--There is hereby established a 
Joint Select Committee on Earmark Reform. The joint select committee 
shall be composed of 16 members as follows:
            (1) 8 Members of the House of Representatives, 4 appointed 
        from the majority party by the Speaker of the House, and 4 from 
        the minority party to be appointed by the minority leader; and
            (2) 8 Members of the Senate, 4 appointed from the majority 
        party by the majority leader of the Senate, and 4 from the 
        minority party to be appointed by the minority leader.
A vacancy in the joint select committee shall not affect the power of 
the remaining members to execute the functions of the joint select 
committee, and shall be filled in the same manner as the original 
selection.
    (b) Study and Report.--
            (1) Study.--The joint select committee shall make a full 
        study of the practices of the House, Senate, and Executive 
        Branch regarding earmarks in authorizing, appropriation, tax, 
        and tariff measures. As part of the study, the joint select 
        committee shall consider the efficacy of--
                    (A) the disclosure requirements of clause 9 of rule 
                XXI and clause 17 of rule XXIII of the Rules of the 
                House of Representatives and rule XLIV of the Standing 
                Rules of the Senate, and the definitions contained 
                therein;
                    (B) requiring full transparency in the process, 
                with earmarks listed in bills at the outset of the 
                legislative process and continuing throughout 
                consideration;
                    (C) requiring that earmarks not be placed in any 
                bill after initial committee consideration;
                    (D) requiring that Members be permitted to offer 
                amendments to remove earmarks at subcommittee, full 
                committee, floor consideration, and during conference 
                committee meetings;
                    (E) requiring that bill sponsors and majority and 
                minority managers certify the validity of earmarks 
                contained in their bills;
                    (F) recommending changes to earmark requests made 
                by the Executive Branch through the annual budget 
                submitted to Congress pursuant to section 1105 of title 
                31, United States Code;
                    (G) requiring that House and Senate amendments meet 
                earmark disclosure requirements, including amendments 
                adopted pursuant to a special order of business;
                    (H) establishing new categories for earmarks, 
                including--
                            (i) projects with National scope;
                            (ii) military projects; and
                            (iii) local or provincial projects, 
                        including the level of matching funds required 
                        for such project.
            (2) Report.--
                    (A) The joint select committee shall submit to the 
                House and the Senate a report of its findings and 
                recommendations not later than 6 months after the 
                enactment of this Act.
                    (B) No recommendation shall be made by the joint 
                select committee except upon the majority vote of the 
                members from each House, respectively.
                    (C) Notwithstanding any other provision of this 
                resolution, any recommendation with respect to the 
                rules and procedures of one House that only affects 
                matters related solely to that House may only be made 
                and voted on by members of the joint select committee 
                from that House and, upon its adoption by a majority of 
                such members, shall be considered to have been adopted 
                by the full committee as a recommendation of the joint 
                select committee.
In conducting the study under paragraph (1), the joint select committee 
shall hold not fewer than 5 public hearings.
    (c) Resources and Dissolution.--
            (1) The joint select committee may utilize the resources of 
        the House and Senate.
            (2) The joint select committee shall cease to exist 30 days 
        after the submission of the report described in subsection 
        (a)(2).
    (d) Definition.--For purposes of this section, the term ``earmark'' 
shall include congressional earmarks, congressionally directed spending 
items, limited tax benefits, or limited tariff benefits as those terms 
are used in clause 9 of rule XXI of the Rules of the House of 
Representatives and rule XLIV of the Standing Rules of the Senate. 
Nothing in this subsection shall confine the study of the joint select 
committee or otherwise limit its recommendations.

SEC. 302. MORATORIUM ON CONSIDERATION OF EARMARKS.

    (a) In the House.--It shall not be in order to consider a bill, 
joint resolution, or conference report containing a congressional 
earmark, limited tax benefit, or limited tariff benefit (as such terms 
are used in clause 9 of rule XXI of the Rules of the House of 
Representatives) until the filing of the report required under section 
301.
    (b) In the Senate.--[To be supplied.]

   TITLE IV--ESTABLISHMENT OF THE SECURING AMERICA'S FUTURE ECONOMY 
                               COMMISSION

SEC. 401. ESTABLISHMENT.

    There is established a commission to be known as the ``Securing 
America's Future Economy Commission'' (hereinafter in this title 
referred to as the ``Commission'').

SEC. 402. DUTIES OF COMMISSION.

    (a) Mandatory Legislation Development.--
            (1) Issues to address.--The Commission shall examine the 
        long-term fiscal challenges facing the United States and 
        develop legislation designed to address the following issues:
                    (A) The unsustainable imbalance between long-term 
                Federal spending commitments and projected revenues.
                    (B) Increasing net national savings to provide for 
                domestic investment and economic growth.
                    (C) The implications of foreign ownership of debt 
                instruments issued by the United States Government.
                    (D) Improving the budget process to place greater 
                emphasis on long-term fiscal issues.
            (2) Policy solutions.--Legislation developed to address the 
        issues described in paragraph (1) may include the following:
                    (A) Reforms that limit the growth of entitlement 
                spending to ensure that the programs are fiscally 
                sustainable.
                    (B) Reforms that strengthen the safety net 
                functions of entitlement programs to provide assistance 
                to the neediest people.
                    (C) Reforms that make United States tax laws more 
                efficient and more conducive to encouraging economic 
                growth.
                    (D) Incentives to increase private savings.
                    (E) Any other reforms designed to address the 
                issues described in paragraph (1).
    (b) Optional Development of Cost Estimate Alternatives.--
            (1) In general.--The Commission shall by an affirmative 
        vote of 5 members develop not more than 2 methods for 
        estimating the cost of legislation as an alternative to the 
        method currently used by the Congressional Budget Office.
            (2) Specifically.--Any such alternative method must--
                    (A) be designed to address any shortcomings in the 
                method currently used with regard to estimating the 
                positive economic effects of legislation; and
                    (B) consider the use of automatic stabilizers or 
                triggers to enforce spending and revenue targets, in 
                the event that policies based on the alternative method 
                fail to achieve targets for outlays and revenues.
            (3) Limitation.--Any alternative developed pursuant to this 
        subsection shall generally comply with subsections (b), (c), 
        and (d) of section 413.

SEC. 403. INITIAL TOWN HALL STYLE PUBLIC HEARINGS.

    (a) In General.--The Commission shall hold at least 1 town hall 
style public hearing within each Federal reserve district, and shall, 
to the extent feasible, ensure that there is broad public participation 
in the hearings.
    (b) Hearing Format.--During each hearing, the Commission shall 
present to the public, and generate comments and suggestions regarding, 
the issues described in section 402, policies designed to address the 
issues, and tradeoffs between the policies.

SEC. 404. REPORT.

    The Commission shall, not later than 1 year after the date of the 
enactment of this Act, submit a report to Congress and the President 
containing the following:
            (1) A detailed description of the activities of the 
        Commission.
            (2) A summary of comments and suggestions generated from 
        the town hall style public hearings.
            (3) A detailed statement of any findings of the Commission 
        as to public preferences regarding the issues, policies, and 
        tradeoffs presented in the town hall style public hearings.
            (4) A detailed description of the long-term fiscal problems 
        faced by the United States.
            (5) A list of policy options for addressing those problems.
            (6) Criteria for the legislative proposal to be developed 
        by the Commission.

SEC. 405. LEGISLATIVE PROPOSAL.

    (a) In General.--Not later than 60 days after the date the report 
is submitted under section 404 and by a vote of three-fourths of the 
members, the Commission shall submit a legislative proposal to Congress 
and the President designed to address the issues described section 402.
    (b) Proposal Requirements.--The proposal must, to the extent 
feasible, be designed--
            (1) to achieve generational equity and long-term economic 
        stability;
            (2) to address the comments and suggestions of the public; 
        and
            (3) to meet the criteria set forth in the Commission 
        report.
    (c) Inclusion of Cost Estimate.--The Commission shall submit with 
the proposal--
            (1) a long-term CBO cost estimate prepared under section 
        413 for the proposal; and
            (2) if an alternative cost estimate method is developed by 
        the Commission, a 50-year cost estimate using such method.

SEC. 406. MEMBERSHIP AND MEETINGS.

    (a) In General.--The Commission shall be composed of 16 voting 
members appointed pursuant to paragraph (1) and 2 nonvoting members 
described in paragraph (2).
            (1) Voting members.--The Commission shall be composed of 16 
        voting members of whom--
                    (A) one shall be the Director of the Office of 
                Management and Budget;
                    (B) one shall be the Secretary of the Treasury;
                    (C) four shall be appointed by the Speaker of the 
                House of Representatives;
                    (D) three shall be appointed by the minority leader 
                of the House of Representatives;
                    (E) four shall be appointed by the majority leader 
                of the Senate; and
                    (F) three shall be appointed by the minority leader 
                of the Senate.
            (2) Nonvoting members.--The Comptroller General of the 
        United States and the Director of the Congressional Budget 
        Office shall each be nonvoting members of the Commission and 
        shall advise and assist at the request of the Commission.
            (3) Chair and co-chair.--The President shall designate 2 
        co-chairpersons of the Commission from the members appointed 
        under paragraph (1), one of whom must be a Republican and one 
        of whom must be a Democrat.
    (b) Limitations as to Members of Congress.--
            (1) Four members of congress on commission.--Each 
        appointing authority described in subsection (a)(1) who is a 
        member of Congress shall appoint 1 member of Congress to the 
        Commission but may not appoint more than 1 member of Congress 
        to the Commission.
            (2) Continuation of voting membership.--In the case of an 
        individual appointed pursuant to subsection (a)(1) who was 
        appointed as a member of Congress under paragraph (1), if such 
        individual ceases to be a member of Congress, that individual 
        shall cease to be a member of the Commission.
    (c) Date for Original Appointment.--The appointing authorities 
described in subsection (a)(1) shall appoint the initial members of the 
Commission not later than 30 days after the date of enactment of this 
Act.
    (d) Terms.--
            (1) In general.--The term of each member is for the life of 
        the Commission.
            (2) Vacancies.--A vacancy in the Commission shall be filled 
        not later than 30 days after such vacancy occurs and in the 
        manner in which the original appointment was made.
    (e) Pay and Reimbursement.--
            (1) No compensation for members of commission.--Except as 
        provided in paragraph (2), a member of the Commission may not 
        receive pay, allowances, or benefits by reason of their service 
        on the Commission.
            (2) Travel expenses.--Each member shall receive travel 
        expenses, including per diem in lieu of subsistence under 
        subchapter I of chapter 57 of title 5, United States Code.
    (f) Meetings.--The Commission shall meet upon the call of the 
chairperson or a majority of its voting members.
    (g) Quorum.--Six voting members of the Commission shall constitute 
a quorum, but a lesser number may hold hearings.

SEC. 407. DIRECTOR AND STAFF OF COMMISSION.

    (a) Director.--
            (1) In general.--Subject to subsection (c) and to the 
        extent provided in advance in appropriation Acts, the 
        Commission shall appoint and fix the pay of a director.
            (2) Duties.--The director of the Commission shall be 
        responsible for the administration and coordination of the 
        duties of the Commission and shall perform other such duties as 
        the Commission may direct.
    (b) Staff.--In accordance with rules agreed upon by the Commission, 
subject to subsection (c), and to the extent provided in advance in 
appropriation Acts, the director may appoint and fix the pay of 
additional personnel.
    (c) Applicability of Certain Civil Service Laws.--The director and 
staff of the Commission may be appointed 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 that title 
relating to classification and General Schedule pay rates, except that 
pay fixed under subsection (a) may not exceed $150,000 per year and pay 
fixed under subsection (b) may not exceed a rate equal to the daily 
equivalent of the annual rate of basic pay for level V of the Executive 
Schedule under section 5316 of title 5, United States Code.
    (d) Detailees.--Any Federal Government employee may be detailed to 
the Commission without reimbursement from the Commission, and such 
detailee shall retain the rights, status, and privileges of their 
regular employment without interruption.
    (e) Experts and Consultants.--In accordance with rules agreed upon 
by the Commission and to the extent provided in advance in 
appropriation Acts, the director may procure the services of experts 
and consultants under section 3109(b) of title 5, United States Code, 
but at rates not to exceed the daily equivalent of the annual rate of 
basic pay for level V of the Executive Schedule under section 5316 of 
title 5, United States Code.

SEC. 408. POWERS OF COMMISSION.

    (a) Hearings and Evidence.--The Commission may, for the purpose of 
carrying out this title, hold such hearings in addition to the town 
hall style public hearings, sit and act at such times and places, take 
such testimony, and receive such evidence as the Commission considers 
appropriate. The Commission may administer oaths or affirmations to 
witnesses appearing before it.
    (b) Powers of Members and Agents.--Any member or agent of the 
Commission may, if authorized by the Commission, take any action which 
the Commission is authorized to take under this section.
    (c) Mails.--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.
    (d) Administrative Support Services.--Upon the request of the 
Commission, the Administrator of General Services shall provide to the 
Commission, on a reimbursable basis, the administrative support 
services necessary for the Commission to carry out its responsibilities 
under this title.
    (e) Contract Authority.--To the extent provided in advance in 
appropriation Acts, the Commission may enter into contracts to enable 
the Commission to discharge its duties under this title.
    (f) Gifts.--The Commission may accept, use, and dispose of gifts or 
donations of services or property.

SEC. 409. TERMINATION.

    The Commission shall terminate the earlier of--
            (1) 60 days after submitting its legislative proposal; or
            (2) the date on which the Comptroller General of the United 
        States determines and publishes in the Federal Register a 
        statement that new legislation has been enacted that is 
        estimated to reduce the fiscal gap by--
                    (A) 1 percent of gross domestic product, measured 
                over the 20-year period beginning with the first fiscal 
                year after the date of enactment of such legislation; 
                and
                    (B) 2 percent of gross domestic product, measured 
                over the 50-year period beginning with the first fiscal 
                year after the date of enactment of such legislation.

SEC. 410. ALTERNATIVE LEGISLATIVE PROPOSAL OF PRESIDENT.

    The President may, not later than 90 calendar days after the 
Commission submits its legislative proposal, submit to Congress an 
alternative to the legislative proposal submitted by the Commission.

SEC. 411. ALTERNATIVE LEGISLATIVE PROPOSAL FROM THE COMMITTEE ON THE 
              BUDGET.

    (a) From Committee.--The Committee on the Budget of either House 
may, in consultation with the relevant committees of their respective 
House and not later than 90 calendar days after the Commission submits 
its legislative proposal, have published in the Congressional Record an 
alternative to the legislative proposal submitted by the Commission.
    (b) From Ranking Member of the Committee.--The ranking minority 
member of the Committee on the Budget of either House may, not later 
than 90 calendar days after the Commission submits its legislative 
proposal, have published in the Congressional Record an alternative to 
the legislative proposal submitted by the Commission.

SEC. 412. CONSIDERATION OF LEGISLATION.

    (a) Introduction.--Not later than the fifth legislative day after 
the Commission submits its legislative proposal, the majority leader of 
each House, or his designee, shall introduce (by request) the 
legislation submitted by the Commission.
    (b) In the House of Representatives.--
            (1) Privileged consideration.--In the House of 
        Representatives, the legislation shall be reported to the 
        Committee on the Budget, which shall report the bill without 
        substantive revision. If the Committee on the Budget has not 
        reported the legislation before the expiration of the 90-day 
        period described in section 411, then--
                    (A) that committee shall be discharged from 
                consideration of the legislation;
                    (B) the legislation shall be placed on the 
                appropriate calendar; and
                    (C) a motion to proceed to the consideration of the 
                legislation shall be highly privileged and shall not be 
                debatable, and a motion to reconsider the vote by which 
                the motion is disposed of shall not be in order.
            (2) Consideration consistent with congressional budget 
        act.--Consideration of such legislation shall be pursuant to 
        the procedures set forth in paragraphs (2), (5), and (6) of 
        section 305(a) of the Congressional Budget Act of 1974 to the 
        extent not inconsistent with this title.
            (3) Amendments limited.--
                    (A) In general.--Except as provided in subparagraph 
                (B), an amendment to the legislation may not be offered 
                in the House of Representatives.
                    (B) Permitted amendments.--(i) Any member may 
                offer, as an amendment in the nature of a substitute, 
                the alternative legislative proposal submitted by the 
                President.
                    (ii) The chairman of the House Committee on the 
                Budget may offer, as an amendment in the nature of a 
                substitute, the alternative legislative proposal 
                published in the Congressional Record by the House 
                Committee on the Budget.
                    (iii) The ranking minority member of the House 
                Committee on the Budget may offer, as an amendment in 
                the nature of a substitute, the alternative legislative 
                proposal published in the Congressional Record by such 
                ranking minority member.
                    (C) Point of order.--
                            (i) In general.--An amendment offered under 
                        subparagraph (B) is subject to a point of order 
                        if--
                                    (I) the amendment is not 
                                accompanied by a long-term CBO cost 
                                estimate of the amendment or a long-
                                term revenue estimate of the amendment, 
                                which includes the information 
                                described in section 413, by the Joint 
                                Committee on Taxation; or
                                    (II) it would increase the deficit 
                                or cause a deficit either for the 
                                period of the first 20 fiscal years 
                                beginning with the first fiscal year 
                                after the current fiscal year or for 
                                the period of the first 50 fiscal years 
                                beginning with the first fiscal year 
                                after the current fiscal year, as 
                                judged against the baseline.
                            (ii) Baseline.--For purposes of clause 
                        (i)(II), the baseline shall be calculated using 
                        the assumption that the legislation submitted 
                        by the Commission has been enacted into law, 
                        subject to the limitation imposed by section 
                        413(d).
                            (iii) Waiver.--A point of order raised 
                        under clause (i) may only be waived or 
                        suspended in the House of Representatives by a 
                        resolution devoted solely to the subject of 
                        waiving that point of order.
                    (D) Multiple amendments.--If more than one 
                amendment is offered under this paragraph, then each 
                amendment shall be considered separately, and the 
                amendment receiving both a majority and the highest 
                number of votes shall be the amendment adopted.
            (4) Transmittal to the senate.--If the legislation passed 
        in the House of Representatives pursuant to this section, the 
        Clerk of the House of Representatives shall cause the 
        legislation to be engrossed, certified, and transmitted to the 
        Senate not later than 1 calendar day after the day on which the 
        legislation is passed. Such legislation shall be referred to 
        the Senate Committee on the Budget.
    (c) In the Senate.--
            (1) Automatic discharge of senate budget committee.--If the 
        Senate Committee on the Budget has not reported the legislation 
        before the expiration of the 90-day period described in section 
        411, then--
                    (A) the committee shall be discharged from 
                consideration of the legislation; and
                    (B) a motion to proceed to the consideration of the 
                legislation is highly privileged and is not debatable.
            (2) Consideration.--Consideration of such legislation shall 
        be pursuant to the procedures set forth in paragraphs (1), (2), 
        (5), and (6) of section 305(b) of the Congressional Budget Act 
        of 1974 to the extent not inconsistent with this title.
            (3) Amendments limited.--
                    (A) In general.--Except as provided in subparagraph 
                (B), an amendment to the legislation may not be offered 
                in the Senate.
                    (B) Permitted amendments.--(i) Any member may 
                offer, as an amendment in the nature of a substitute, 
                the alternative legislative proposal submitted by the 
                President.
                    (ii) The chairman of the Senate Committee on the 
                Budget may offer, as an amendment in the nature of a 
                substitute, the alternative legislative proposal 
                published in the Congressional Record by the Senate 
                Committee on the Budget.
                    (iii) The ranking minority member of the Senate 
                Committee on the Budget may offer, as an amendment in 
                the nature of a substitute, the alternative legislative 
                proposal published in the Congressional Record by such 
                ranking minority member.
                    (C) Point of order.--
                            (i) In general.--An amendment offered under 
                        subparagraph (B) is subject to a point of order 
                        if--
                                    (I) the amendment is not 
                                accompanied by a long-term CBO cost 
                                estimate of the amendment or a long-
                                term revenue estimate of the amendment, 
                                which includes the information 
                                described in section 413, by the Joint 
                                Committee on Taxation; or
                                    (II) it would increase the deficit 
                                or cause a deficit either for the 
                                period of the first 20 fiscal years 
                                beginning with the first fiscal year 
                                after the current fiscal year or for 
                                the period of the first 50 fiscal years 
                                beginning with the first fiscal year 
                                after the current fiscal year, as 
                                judged against the baseline.
                            (ii) Baseline.--For purposes of clause 
                        (i)(II), the baseline shall be calculated using 
                        the assumption that the legislation submitted 
                        by the Commission has been enacted into law, 
                        subject to the limitation imposed by section 
                        413(d).
                            (iii) Waiver of point of order.--A point of 
                        order raised under clause (i) may only be 
                        waived or suspended in the Senate by an 
                        affirmative vote of \3/5\ of the members duly 
                        chosen and sworn.
                    (D) Multiple amendments.--If more than one 
                amendment is offered under this paragraph, then each 
                amendment shall be considered separately, and the 
                amendment receiving both a majority and the highest 
                number of votes shall be the amendment adopted.
    (d) Prohibition on Concurrent Consideration of Other Budget-Related 
Legislation.--
            (1) In general.--Until a bill or joint resolution 
        considered pursuant to the procedures of this section or a 
        conference report thereon has been enrolled and presented to 
        the President of the United States, it shall not be in order in 
        either the House of Representatives or the Senate to consider 
        any bill or joint resolution, amendment or motion thereto, or 
        conference report thereon that--
                    (A) provides new budget authority for any fiscal 
                year;
                    (B) provides for an increase in outlays for any 
                fiscal year;
                    (C) provides a decrease in revenues during any 
                fiscal year; or
                    (D) provides an increase in the public debt limit 
                to become effective during any fiscal year.
        Subparagraphs (A) through (D) shall be applied on a provision-
        by-provision basis.
            (2) Exceptions.--Paragraph (1) does not apply--
                    (A) to any measure under consideration prior to the 
                introduction, in either House, of a bill or joint 
                resolution considered pursuant to the procedures of 
                this section;
                    (B) to any measure considered after a bill or joint 
                resolution considered pursuant to the procedures of 
                this section has been defeated in either House; or
                    (C) to any general appropriation bill or amendment 
                thereto, but only to the extent of discretionary new 
                budget authority provided for the budget year or for 
                the first or second fiscal year after the budget year.
            (3) Waiver.--
                    (A) House of representatives.--In the House of 
                Representatives, if a special rule is considered that 
                would waive points of order pursuant to paragraph (1), 
                a motion to strike the provision waiving such points of 
                order shall be in order.
                    (B) Senate.--In the Senate, a point of order 
                properly raised pursuant to paragraph (1) shall be 
                waived only by an affirmative vote of \2/3\ of the 
                members senators duly chosen and sworn.
    (e) Application of Congressional Budget Act.--To the extent that 
they are relevant and not inconsistent with this title, the provisions 
of title III of the Congressional Budget Act of 1974 shall apply in the 
House of Representatives and the Senate to any bill or joint 
resolution, any amendment thereto, and any conference report thereon 
that is considered pursuant to this section.
    (f) Rules of Senate and House of Representatives.--This section is 
enacted by Congress--
            (1) as an exercise of the rulemaking power of the Senate 
        and the House of Representatives, respectively, and is deemed 
        to be part of the rules of each House, respectively, but 
        applicable only with respect to the procedure to be followed in 
        that House in the case of a bill introduced pursuant to this 
        section, and it supersedes other rules only to the extent that 
        it is inconsistent with such rules; and
            (2) with full recognition of the constitutional right of 
        either House to change the rules (so far as they relate to the 
        procedure of that House) at any time, in the same manner, and 
        to the same extent as in the case of any other rule of that 
        House.

SEC. 413. LONG-TERM CBO COST ESTIMATE.

    (a) Preparation and Submission.--When the Commission, the 
President, or the chairman or ranking minority member of the Committee 
on the Budget of either House submits a written request to the Director 
of the Congressional Budget Office for a long-term CBO cost estimate of 
legislation proposed under this title or an amendment referred to in 
section 412(b)(3)(B) or section 412(c)(3)(B), the Director shall 
prepare the estimate and have it published in the Congressional Record 
as expeditiously as possible.
    (b) Content.--A long-term CBO cost estimate shall include--
            (1) an estimate of the cost of each provision (if 
        practicable) or group of provisions of the legislation or 
        amendment for first fiscal year it would take effect and for 
        each of the 49 fiscal years thereafter; and
            (2) a statement of any estimated future costs not reflected 
        by the estimate described in paragraph (1).
    (c) Form.--To the extent that a long-term CBO cost estimate 
presented in dollars is impracticable, the Director of the 
Congressional Budget Office may instead present the estimate in terms 
of percentages of gross domestic product, with rounding to the nearest 
\1/10\ of 1 percent of gross domestic product.
    (d) Limitations on Discretionary Spending.--A long-term CBO cost 
estimate shall only consider the effects of provisions affecting 
revenues and direct spending (as defined by the Balanced Budget and 
Emergency Deficit Control Act of 1985), and shall not assume that any 
changes in outlays will result from limitations on, or reductions in, 
annual appropriations.
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