I
105TH CONGRESS
2D SESSION
H. R. 4837
To amend the Congressional Budget Act of 1974 to provide for joint resolu-
tions on the budget, reserve funds for emergency spending, strengthened
enforcement of budgetary decisions, increased accountability for Federal
spending, accrual budgeting for Federal insurance programs, mitigation
of the bias in the budget process toward higher spending, modifications
in paygo requirements when there is an on-budget surplus, and for
other purposes.
IN THE HOUSE OF REPRESENTATIVES
OCTOBER 14, 1998
Mr. NUSSLE (for himself, Mr. CARDIN, Mr. KASICH, Mr. SOLOMON, Mr.
DREIER, Mr. GOSS, Mr. MINGE, Mr. SUNUNU, Mr. RADANOVICH, Ms.
GRANGER, and Mr. STENHOLM) introduced the following bill; which was
referred to the Committee on the Budget, and in addition to the Commit-
tee on Rules, for a period to be subsequently determined by the Speaker,
in each case for consideration of such provisions as fall within the juris-
diction of the committee concerned
A BILL
To amend the Congressional Budget Act of 1974 to provide
for joint resolutions on the budget, reserve funds for
emergency spending, strengthened enforcement of budg-
etary decisions, increased accountability for Federal
spending, accrual budgeting for Federal insurance pro-
grams, mitigation of the bias in the budget process to-
ward higher spending, modifications in paygo require-
ments when there is an on-budget surplus, and for other
purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Comprehensive Budget Process Reform Act of 1998’’.
(b) TABLE OF CONTENTS.—
Sec. 1. Short title; table of contents.
Sec. 2. Purpose.
Sec. 3. Effective date.
Sec. 4. Declaration of purposes for the Budget Act.
TITLE I—BUDGET WITH FORCE OF LAW
Sec. 101. Purposes.
Sec. 102. The timetable.
Sec. 103. Annual joint resolutions on the budget.
Sec. 104. Budget required before spending bills may be considered; fall-back
procedures if President vetoes joint budget resolution.
Sec. 105. Reaffirming special budgetary status of social security.
Sec. 106. Conforming amendments to effectuate joint resolutions on the budget.
TITLE II—RESERVE FUNDS FOR EMERGENCIES
Sec. 201. Purpose.
Sec. 202. Repeal of adjustments for emergencies.
Sec. 203. OMB emergency criteria.
Sec. 204. Development of guidelines for application of emergency definition.
Sec. 205. Reserve funds for emergencies in President’s budget.
Sec. 206. Adjustments and reserve funds for emergencies in joint budget reso-
lutions.
Sec. 207. Committee notification of emergency legislation.
Sec. 208. Application of section 306 to emergencies in excess of amounts in re-
serve funds.
Sec. 209. Up-to-date tabulations.
Sec. 210. Report of Committees on the Budget.
Sec. 211. Prohibition on amendments to emergency reserve funds.
TITLE III—ENFORCEMENT OF BUDGETARY DECISIONS
Sec. 301. Purposes.
Subtitle A—Application of Points of Order to Unreported Legislation
Sec. 311. Application of Budget Act points of order to unreported legislation.
Subtitle B—Compliance with Budget Resolution
Sec. 321. Budget compliance statements.
Subtitle C—Justification for Budget Act Waivers
Sec. 331. Justification for Budget Act waivers in the House of Representatives.
Subtitle D—CBO Scoring of Conference Reports
Sec. 341. CBO scoring of conference reports.
TITLE IV—ACCOUNTABILITY FOR FEDERAL SPENDING
Sec. 401. Purposes.
Subtitle A—Prohibitions on Indefinite Spending
Sec. 411. Fixed-year authorizations required for new programs.
Sec. 412. Amendments to subject new entitlements to annual appropriations.
Subtitle B—Enhanced Congressional Oversight Responsibilities
Sec. 421. Ten-year congressional review requirement of permanent budget au-
thority.
Sec. 422. Justifications of direct spending.
Sec. 423. Survey of activity reports of House committees.
Sec. 424. Continuing study of additional budget process reforms.
Sec. 425. GAO reports.
Subtitle C—Strengthened Accountability
Sec. 431. Ten-year CBO estimates.
Sec. 432. Repeal of rule XLIX of the Rules of the House of Representatives.
TITLE V—BUDGETING FOR UNFUNDED LIABILITIES AND OTHER
LONG-TERM OBLIGATIONS
Sec. 501. Purposes.
Subtitle A—Budgetary Treatment of Federal Insurance Programs
Sec. 511. Federal insurance programs.
Subtitle B—Reports on Long-Term Budgetary Trends
Sec. 521. Reports on long-term budgetary trends.
TITLE VI—BASELINES, BYRD RULE, AND LOCK-BOX
Sec. 601. Purpose.
Subtitle A—The Baseline
Sec. 611. The President’s budget.
Sec. 612. The congressional budget.
Sec. 613. Congressional Budget Office reports to committees.
Sec. 614. Outyear assumptions for discretionary spending.
Subtitle B—The Byrd Rule
Sec. 621. Limitation on Byrd rule.
Subtitle C—Spending Accountability Lock-Box
Sec. 631. Short title.
Sec. 632. Spending accountability lock-box ledger.
Sec. 633. Downward adjustment of section 302(a) allocations and section
302(b) suballocations.
Sec. 634. Periodic reporting of ledger statements.
Sec. 635. Downward adjustment of discretionary spending limits.
Subtitle D—Automatic Continuing Resolution
Sec. 641. Automatic continuing resolution.
TITLE VII—BUDGETING IN AN ERA OF SURPLUSES
Sec. 701. Paygo requirements and the on-budget surplus.
SEC. 2. PURPOSE.
The purposes of this Act are to—
(1) give the budget the force of law;
(2) budget for emergencies;
(3) display the unfunded liabilities of Federal
insurance programs;
(4) strengthen enforcement of budgetary deci-
sions;
(5) increase accountability for Federal spend-
ing;
(6) mitigate the bias in the budget process to-
ward higher spending; and
(7) modify paygo requirements when there is an
on-budget surplus.
SEC. 3. EFFECTIVE DATE.
Except as otherwise specifically provided, this Act
and the amendments made by this Act shall become effec-
tive on the date of enactment of this Act and shall apply
with respect to fiscal years beginning after September 30,
1999.
SEC. 4. DECLARATION OF PURPOSES FOR THE BUDGET
ACT.
Paragraphs (1) and (2) of section 2 of the Congres-
sional Budget and Impoundment Control Act of 1974 are
amended to read as follows:
‘‘(1) to assure effective control over the budg-
etary process;
‘‘(2) to facilitate the determination each year of
the appropriate level of Federal revenues and ex-
penditures by the Congress and the President;’’.
TITLE I—BUDGET WITH FORCE
OF LAW
SEC. 101. PURPOSES.
The purposes of this title are to—
(1) focus initial budgetary deliberations on ag-
gregate levels of Federal spending and taxation;
(2) encourage cooperation between Congress
and the President in developing overall budgetary
priorities; and
(3) reach budgetary decisions early in the legis-
lative cycle.
SEC. 102. THE TIMETABLE.
Section 300 of the Congressional Budget Act of 1974
is amended to read as follows:
‘‘TIMETABLE
‘‘SEC. 300. The timetable with respect to the congres-
sional budget process for any fiscal year is as follows:
‘‘On or before:
Action to be completed:
First Monday in February ............
President submits his budget.
February 15 ...................................
Congressional Budget Office submits
report to Budget Committees.
Not later than 6 weeks after Presi-
dent submits budget.
Committees submit views and esti-
mates to Budget Committees.
April 1 ...........................................
Senate Budget Committee reports
joint resolution on the budget.
April 15 .........................................
Congress completes action on joint
resolution on the budget.
June 10 .........................................
House Appropriations Committee re-
ports last annual appropriation bill.
June 15 .........................................
Congress completes action on rec-
onciliation legislation.
June 30 .........................................
House completes action on annual ap-
propriation bills.
October 1 .......................................
Fiscal year begins.’’.
SEC. 103. ANNUAL JOINT RESOLUTIONS ON THE BUDGET.
(a) ANNUAL JOINT RESOLUTIONS ON THE BUDG-
ET.—(1) Section 301 of the Congressional Budget Act of
1974 is amended to read as follows:
‘‘ANNUAL JOINT RESOLUTIONS ON THE BUDGET
‘‘SEC. 301. (a) CONTENT OF JOINT RESOLUTION ON
THE BUDGET.—On or before April 15 of each year, the
Congress shall complete action on a joint resolution on the
budget for the fiscal year beginning on October 1 of such
year. The joint resolution shall set forth appropriate levels
for the fiscal year beginning on October 1 of such year
and for at least each of the 4 ensuing fiscal years for the
following—
‘‘(1) totals of new budget authority and outlays;
‘‘(2) total Federal revenues and the amount, if
any, by which the aggregate level of Federal reve-
nues should be increased or decreased by bills and
resolutions to be reported by the appropriate com-
mittees;
‘‘(3) the surplus or deficit in the budget;
‘‘(4) subtotals of new budget authority and out-
lays for nondefense discretionary spending, defense
discretionary spending, and direct spending, and, if
deemed necessary, other subsets of discretionary
spending and of direct spending;
‘‘(5) the level of the statutory limit on the pub-
lic debt;
‘‘(6) for fiscal years to which the amendments
made by title II of the Comprehensive Budget Proc-
ess Reform Act of 1998 apply, subtotals of new
budget authority and outlays for emergencies, in-
cluding subtotals for direct spending and discre-
tionary spending;
‘‘(7) For purposes of Senate enforcement under
this title, outlays of the old-age, survivors, and dis-
ability insurance program established under title II
of the Social Security Act for the fiscal year of the
resolution and for each of the 4 succeeding fiscal
years; and
‘‘(8) For purposes of Senate enforcement under
this title, revenues of the old-age, survivors, and dis-
ability insurance program established under title II
of the Social Security Act (and the related provisions
of the Internal Revenue Code of 1986) for the fiscal
year of the resolution and for each of the 4 succeed-
ing fiscal years.
‘‘(b) ADDITIONAL MATTERS
IN JOINT RESOLU-
TION.—The joint resolution on the budget may—
‘‘(1) include a heading entitled ‘Debt Increase
as Measure of Deficit’ in which the joint resolution
shall set forth the amounts by which the debt sub-
ject to limit (in section 3101 of title 31, United
States Code) has increased or would increase in each
of the relevant fiscal years;
‘‘(2) if submitted by the Committee on Ways
and Means of the House of Representatives or the
Committee on Finance of the Senate to the Commit-
tee on the Budget of that House of Congress, amend
section 3101 of title 31, United States Code, to
change the statutory limit on the public debt;
‘‘(3) require a procedure under which all or cer-
tain bills or resolutions providing new budget au-
thority or new entitlement authority for such fiscal
year shall not be enrolled until the Congress has
completed action on any reconciliation bill or rec-
onciliation resolution or both required by such con-
current resolution to be reported in accordance with
section 310(b);
‘‘(4) require such other congressional proce-
dures, relating to the budget, as may be appropriate
to carry out the purposes of this Act; and
‘‘(5) set forth procedures in the Senate whereby
committee allocations, aggregates, and other levels
can be revised for legislation if that legislation would
not increase the deficit, or would not increase the
deficit when taken with other legislation enacted
after the adoption of the resolution, for the first fis-
cal year or the total period of fiscal years covered by
the resolution.
‘‘(c) CONSIDERATION OF PROCEDURES OR MATTERS
WHICH HAVE THE EFFECT OF CHANGING ANY RULE OF
THE HOUSE OF REPRESENTATIVES.—If the Committee
on the Budget of the House of Representatives reports
any joint resolution on the budget which includes any pro-
cedure or matter which has the effect of changing any rule
of the House of Representatives, such joint resolution shall
then be referred to the Committee on Rules with instruc-
tions to report it within five calendar days (not counting
any day on which the House is not in session). The Com-
mittee on Rules shall have jurisdiction to report any joint
resolution referred to it under this paragraph with an
amendment or amendments changing or striking any such
procedure or matter.
‘‘(d) VIEWS AND ESTIMATES OF OTHER COMMIT-
TEES.—Within 6 weeks after the President submits a
budget under section 1105(a) of title 31, United States
Code, or at such time as may be requested by the chair-
man of the Committee on the Budget, each committee of
the House of Representatives having legislative jurisdic-
tion shall submit to the Committee on the Budget of the
House and each committee of the Senate having legislative
jurisdiction shall submit to the Committee on the Budget
of the Senate its views and estimates (as determined by
the committee making such submission) with respect to
all matters set forth in subsections (a) and (b) which re-
late to matters within the jurisdiction or functions of such
committee. The Joint Economic Committee shall submit
to the Committees on the Budget of both Houses its rec-
ommendations as to the fiscal policy appropriate to the
goals of the Employment Act of 1946. Any other commit-
tee of the House of Representatives or the Senate may
submit to the Committee on the Budget of its House, and
any joint committee of the Congress may submit to the
Committees on the Budget of both Houses, its views and
estimates with respect to all matters set forth in sub-
sections (a) and (b) which relate to matters within its ju-
risdiction or functions. Any other committee of the House
of Representatives or the Senate that anticipates that the
committee will consider legislation establishing, amending,
or reauthorizing any Federal program likely to have a sig-
nificant budgetary impact on any State, local, or tribal
government, or likely to have a significant financial impact
on the private sector, including any legislative proposal
submitted by the executive branch likely to have such a
budgetary or financial impact, shall include its views and
estimates on that proposal to the Committee on the Budg-
et of the applicable House.
‘‘(e) HEARINGS AND REPORT.—
‘‘(1) IN GENERAL.—In developing the joint res-
olution on the budget referred to in subsection (a)
for each fiscal year, the Committee on the Budget
of each House shall hold hearings and shall receive
testimony from Members of Congress and such ap-
propriate representatives of Federal departments
and agencies, the general public, and national orga-
nizations as the committee deems desirable. Each of
the recommendations as to short-term and medium-
term goal set forth in the report submitted by the
members of the Joint Economic Committee under
subsection (d) may be considered by the Committee
on the Budget of each House as part of its consider-
ation of such concurrent resolution, and its report
may reflect its views thereon, including its views on
how the estimates of revenues and levels of budget
authority and outlays set forth in such concurrent
resolution are designed to achieve any goals it is rec-
ommending.
‘‘(2) REQUIRED CONTENTS OF REPORT.—The
report accompanying the resolution shall include—
‘‘(A) new budget authority and outlays for
each major functional category, based on alloca-
tions of the total levels set forth pursuant to
subsection (a)(1);
‘‘(B) a comparison of the levels of total
new budget authority, total outlays, total reve-
nues, and the surplus or deficit for each fiscal
year set forth in the resolution with those re-
quested in the budget submitted by the Presi-
dent;
‘‘(C) with respect to each major functional
category, an estimate of total new budget au-
thority and total outlays, with the estimates di-
vided between discretionary and direct spending
amounts;
‘‘(D) a measure, as a percentage of gross
domestic product, of total outlays, total Federal
revenues, the surplus or deficit, and new out-
lays for nondefense discretionary spending, de-
fense spending, and direct spending as set forth
in such resolution;
‘‘(E) the economic assumptions that un-
derlie each of the matters set forth in the reso-
lution and any alternative economic assump-
tions and objectives the committee considered;
‘‘(F) information, data, and comparisons
indicating the manner in which, and the basis
on which, the committee determined each of the
matters set forth in the resolution;
‘‘(G) a justification for allocating any new
budget authority and outlays for any new any
program, project, or activity to a committee for
which such new budget authority and outlays
would not be subject to discretionary appropria-
tions;
‘‘(H) 
allocations 
described 
in 
section
302(a);
‘‘(I) the estimated levels of tax expendi-
tures (the tax expenditures budget) by major
items and functional categories for the Presi-
dent’s budget and in the resolution; and
‘‘(J) if the joint resolution on the budget
includes any allocation to a committee (other
than the Committee on Appropriations) of levels
in excess of current law levels, a justification
for not subjecting any program, project, or ac-
tivity (for which the allocation is made) to an-
nual discretionary appropriation.’’.
‘‘(3) ADDITIONAL CONTENTS OF REPORT.—The
report accompanying the resolution may include—
‘‘(A) reconciliation directives described in
section 310;
‘‘(B) a statement of any significant
changes in the proposed levels of Federal assist-
ance to State and local governments;
‘‘(C) an allocation of the level of Federal
revenues recommended in the resolution among
the major sources of such revenues; and
‘‘(D) other matters, relating to the budget
and to fiscal policy, that the committee deems
appropriate.
‘‘(f) ACHIEVEMENT OF GOALS FOR REDUCING UN-
EMPLOYMENT.—
(1) If, pursuant to section 4(c) of the Employ-
ment Act of 1946, the President recommends in the
Economic Report that the goals for reducing unem-
ployment set forth in section 4(b) of such Act be
achieved in a year after the close of the five-year pe-
riod prescribed by such subsection, the concurrent
resolution on the budget for the fiscal year begin-
ning after the date on which such Economic Report
is received by the Congress may set forth the year
in which, in the opinion of the Congress, such goals
can be achieved.
‘‘(2) After the Congress has expressed its opin-
ion pursuant to paragraph (1) as to the year in
which the goals for reducing unemployment set forth
in section 4(b) of the Employment Act of 1946 can
be achieved, if, pursuant to section 4(e) of such Act,
the President recommends in the Economic Report
that such goals be achieved in a year which is dif-
ferent from the year in which the Congress has ex-
pressed its opinion that such goals should be
achieved, either in its action pursuant to paragraph
(1) or in its most recent action pursuant to this
paragraph, the concurrent resolution on the budget
for the fiscal year beginning after the date on which
such Economic Report is received by the Congress
may set forth the year in which, in the opinion of
the Congress, such goals can be achieved.
‘‘(3) It shall be in order to amend the provision
of such resolution setting forth such year only if the
amendment thereto also proposes to alter the esti-
mates, amounts, and levels (as described in sub-
section (a)) set forth in such resolution in germane
fashion in order to be consistent with the economic
goals (as described in sections 3(a)(2) and (4)(b) of
the Employment Act of 1946) which such amend-
ment proposes can be achieved by the year specified
in such amendment.
‘‘(g) ECONOMIC ASSUMPTIONS.—
‘‘(1) It shall not be in order in the Senate to
consider any joint resolution on the budget for a fis-
cal year, or any amendment thereto, or any con-
ference report thereon, that sets forth amounts and
levels that are determined on the basis of more than
one set of economic and technical assumptions.
‘‘(2) The joint explanatory statement accom-
panying a conference report on a joint resolution on
the budget shall set forth the common economic as-
sumptions upon which such joint statement and con-
ference report are based, or upon which any amend-
ment contained in the joint explanatory statement to
be proposed by the conferees in the case of technical
disagreement, is based.
‘‘(3) Subject to periodic reestimation based on
changed economic conditions or technical estimates,
determinations under titles III and IV of the Con-
gressional Budget Act of 1974 shall be based upon
such common economic and technical assumptions.
‘‘(h) BUDGET COMMITTEES CONSULTATION WITH
COMMITTEES.—The Committee on the Budget of the
House of Representatives shall consult with the commit-
tees of its House having legislative jurisdiction during the
preparation, consideration, and enforcement of the joint
resolution on the budget with respect to all matters which
relate to the jurisdiction or functions of such committees.
‘‘(i) SOCIAL SECURITY POINT OF ORDER.—It shall
not be in order in the Senate to consider any concurrent
resolution on the budget (or amendment, motion, or con-
ference report on the resolution) that would decrease the
excess of social security revenues over social security out-
lays in any of the fiscal years covered by the concurrent
resolution. No change in chapter 1 of the Internal Revenue
Code of 1986 shall be treated as affecting the amount of
social security revenues unless such provision changes the
income tax treatment of social security benefits.’’.
(b) PRESIDENT’S BUDGET SUBMISSION TO THE CON-
GRESS.—(1) The first two sentences of section 1105(a)
of title 31, United States Code, are amended to read as
follows:
‘‘On or after the first Monday in January but not later
than the first Monday in February of each year the Presi-
dent shall submit a budget of the United States Govern-
ment for the following fiscal year which shall set forth the
following levels:
‘‘(A) totals of new budget authority and out-
lays;
‘‘(B) total Federal revenues and the amount, if
any, by which the aggregate level of Federal reve-
nues should be increased or decreased by bills and
resolutions to be reported by the appropriate com-
mittees;
‘‘(C) the surplus or deficit in the budget;
‘‘(D) subtotals of new budget authority and
outlays for nondefense discretionary spending, de-
fense discretionary spending, and direct spending,
and, if deemed necessary, other subsets of discre-
tionary spending and of direct spending;
‘‘(E) the level of the statutory limit on the pub-
lic debt; and
‘‘(F) for fiscal years to which the amendments
made by title II of the Comprehensive Budget Proc-
ess Reform Act of 1998 apply, subtotals of new
budget authority and outlays for emergencies, in-
cluding subtotals for direct spending and discre-
tionary spending.
Each budget submission shall include a budget message
and summary and supporting information and, as a sepa-
rately delineated statement, the levels required in the pre-
ceding sentence for at least each of the 4 ensuing fiscal
years.’’.
(2) The third sentence of section 1105(a) of title 31,
United States Code, is amended by inserting ‘‘submission’’
after ‘‘budget’’.
(c) LIMITATION ON CONTENTS OF BUDGET RESOLU-
TIONS.—Section 305 of the Congressional Budget Act of
1974 is amended by adding at the end the following new
subsection:
‘‘(e) LIMITATION ON CONTENTS.—(1) Any joint reso-
lution on the budget or any amendment thereto or con-
ference report thereon that contains any matter not speci-
fied in section 301(a) or (b) shall not be treated in the
House of Representatives or the Senate as a budget reso-
lution under subsection (a) or (b) or as a conference report
on a budget resolution under subsection (c) of this section.
‘‘(2) It shall not be in order in the House of Rep-
resentatives or in the Senate to consider any joint resolu-
tion on the budget or any amendment thereto or con-
ference report thereon that contains any matter referred
to in paragraph (1).’’.
SEC. 104. BUDGET REQUIRED BEFORE SPENDING BILLS
MAY BE CONSIDERED; FALL-BACK PROCE-
DURES IF PRESIDENT VETOES JOINT BUDG-
ET RESOLUTION.
(a) AMENDMENTS TO SECTION 303 AND CONFORM-
ING AMENDMENTS.—(1) Section 303 of the Congressional
Budget Act of 1974 is amended—
(A) in subsection (b), by striking paragraph
(2), by inserting ‘‘or’’ at the end of paragraph (1),
and by redesignating paragraph (3) as paragraph
(2); and
(B) by striking its section heading and inserting
the following new section heading: ‘‘CONSIDERATION
OF BUDGET-RELATED LEGISLATION BEFORE BUDG-
ET BECOMES LAW’’.
(2) Section 302(g)(1) of the Congressional Budget
Act of 1974 is amended by striking ‘‘April 15’’ and insert-
ing the following: ‘‘the date upon which a joint resolution
on the budget for a fiscal year is enacted’’.
(3) Section 3 of the Congressional Budget and Im-
poundment Control Act of 1974 is amended by adding at
the end the following new paragraph:
‘‘(11) The term ‘vetoes’ means, when referring
to a joint resolution on the budget for a fiscal year,
whenever the President returns such resolution with
his objections to the House in which it originated
within ten days after receiving the resolution or does
not sign the resolution and cannot return it due to
a congressional adjournment that occurs before the
ten-day time limit.’’.
(4)(A) Section 904(c)(1) of the Congressional Budget
Act of 1974 is amended by inserting ‘‘303(a),’’ before
‘‘305(b)(2),’’.
(B) Section 904(d)(2) of the Congressional Budget
Act of 1974 is amended by inserting ‘‘303(a),’’ before
‘‘305(b)(2),’’.
(b) EXPEDITED PROCEDURES UPON VETO OF JOINT
RESOLUTION ON THE BUDGET.—(1) Title III of the Con-
gressional Budget Act of 1974 is amended by adding at
the end the following new section:
‘‘EXPEDITED PROCEDURES UPON VETO OF JOINT
RESOLUTION ON THE BUDGET
‘‘SEC. 316. (a) SPECIAL RULE.—If the President ve-
toes a joint resolution on the budget for a fiscal year, the
chairman of the Committee on Budget of the House of
Representatives or Senate may introduce a concurrent res-
olution on the budget or joint resolution on the budget
for such fiscal year. If the Committee on the Budget of
either House fails to report such concurrent or joint reso-
lution referred to it within three legislative days after the
date of such referral, the committee shall be automatically
discharged from further consideration of such resolution
and such resolution shall be placed on the appropriate cal-
endar.
‘‘(b) PROCEDURE IN THE HOUSE OF REPRESENTA-
TIVES AND THE SENATE.—
‘‘(1) Except as provided in paragraph (2), the
provisions of section 305 for the consideration in the
House of Representatives and in the Senate of joint
resolutions on the budget and conference reports
thereon shall also apply to the consideration of con-
current resolutions on the budget introduced under
subsection (a) and conference reports thereon.
‘‘(2) Debate in the Senate on any concurrent
resolution on the budget or joint resolution on the
budget introduced under subsection (a), and all
amendments thereto and debatable motions and ap-
peals in connection therewith, shall be limited to not
more than 10 hours and in the House such debate
shall be limited to not more than 3 hours.
‘‘(c) CONTENTS OF CONCURRENT RESOLUTIONS.—
The contents of any concurrent resolution on the budget
introduced under subsection (a) shall be in compliance
with sections 301 and 305.
‘‘(d) EFFECT OF CONCURRENT RESOLUTION ON THE
BUDGET.—Notwithstanding any other provision of this
title, whenever a concurrent resolution on the budget de-
scribed in subsection (a) is agreed to, then the aggregates,
allocations, and reconciliation directives (if any) contained
in the accompanying report to such concurrent resolution
shall be considered to be the aggregates, allocations, and
reconciliation directives for all purposes of this title for
the applicable fiscal years and such concurrent resolution
shall be deemed to be a joint resolution for all purposes
of this title and the Rules of the House of Representatives
and any reference to the date of enactment of a joint reso-
lution on the budget shall be deemed to be a reference
to the date agreed to when applied to such concurrent res-
olution.’’.
(2) The table of contents set forth in section 1(b) of
the Congressional Budget and Impoundment Control Act
of 1974 is amended by inserting after the item relating
to section 315 the following new item:
‘‘Sec. 316. Expedited procedures upon veto of joint resolution on the budget.’’.
SEC. 105. REAFFIRMING SPECIAL BUDGETARY STATUS OF
SOCIAL SECURITY.
(a) IN GENERAL.—Title III of the Congressional
Budget Act of 1974 (as amended by section 104(b)) is
further amended by adding at the end the following new
section:
‘‘SOCIAL SECURITY
‘‘SEC. 317. (a) IN GENERAL.—The joint resolution
on the budget shall not include the outlays and revenue
totals of the old age, survivors, and disability insurance
program established under title II of the Social Security
Act or the related provisions of the Internal Revenue Code
of 1986 in the surplus or deficit totals required by section
301(a), in any other surplus or deficit totals required by
this Act, or in any other surplus or deficit totals required
by chapter 11 of title 31, United States Code.
‘‘(b) LIMITATION ON CHANGES TO THE SOCIAL SE-
CURITY ACT.—Notwithstanding any other provision of
law, it shall not be in order in the Senate or the House
of Representatives to consider any reconciliation bill or
reconciliation resolution reported pursuant to a joint reso-
lution on the budget agreed to under section 301 or 304,
or a joint resolution pursuant to section 258C of the Bal-
anced Budget and Emergency Deficit Control Act of 1985,
or any amendment thereto or conference report thereon,
that contains recommendations with respect to the old-
age, survivors, and disability insurance program estab-
lished under title II of the Social Security Act.
‘‘(c) EXCLUSION OF SOCIAL SECURITY FROM ALL
BUDGETS.—Notwithstanding any other provision of law,
the receipts and disbursements of the Federal Old-Age
and Survivors Insurance Trust Fund and the Federal Dis-
ability Insurance Trust Fund shall not be counted as new
budget authority, outlays, receipts, or deficit or surplus
for purposes of—
‘‘(1) the budget of the United States Govern-
ment as submitted by the President,
‘‘(2) the congressional budget, or
‘‘(3) the Balanced Budget and Emergency Defi-
cit Control Act of 1985.
‘‘(d) PROTECTION OF OASDI TRUST FUNDS IN THE
HOUSE OF REPRESENTATIVES.—(1) It shall not be in
order in the House of Representatives to consider any bill
or joint resolution, as reported, or any amendment thereto
or conference report thereon, if, upon enactment—
‘‘(A)(i) such legislation under consideration
would provide for a net increase in OASDI benefits
of at least 0.02 percent of the present value of fu-
ture taxable payroll for the 75-year period utilized in
the most recent annual report of the Board of
Trustees provided pursuant to section 201(c)(2) of
the Social Security Act, and (ii) such legislation
under consideration does not provide at least a net
increase, for such 75-year period, in OASDI taxes
of the amount by which the net increase in such
benefits exceeds 0.02 percent of the present value
of future taxable payroll for such 75-year period,
‘‘(B)(i) such legislation under consideration
would provide for a net increase in OASDI benefits
(for the 5-year estimating period for such legislation
under consideration), (ii) such net increase, together
with the net increases in OASDI benefits resulting
from previous legislation enacted during that fiscal
year or any of the previous 4 fiscal years (as esti-
mated at the time of enactment) which are attrib-
utable to those portions of the 5-year estimating pe-
riods for such previous legislation that fall within
the 5-year estimating period for such legislation
under consideration, exceeds $250,000,000, and (iii)
such legislation under consideration does not provide
at least a net increase, for the 5-year estimating pe-
riod for such legislation under consideration, in
OASDI taxes which, together with net increases in
OASDI taxes resulting from such previous legisla-
tion which are attributable to those portions of the
5-year estimating periods for such previous legisla-
tion that fall within the 5-year estimating period for
such legislation under consideration, equals the
amount by which the net increase derived under
clause (ii) exceeds $250,000,000;
‘‘(C)(i) such legislation under consideration
would provide for a net decrease in OASDI taxes of
at least 0.02 percent of the present value of future
taxable payroll for the 75-year period utilized in the
most recent annual report of the Board of Trustees
provided pursuant to section 201(c)(2) of the Social
Security Act, and (ii) such legislation under consid-
eration does not provide at least a net decrease, for
such 75-year period, in OASDI benefits of the
amount by which the net decrease in such taxes ex-
ceeds 0.02 percent of the present value of future
taxable payroll for such 75-year period, or
‘‘(D)(i) such legislation under consideration
would provide for a net decrease in OASDI taxes
(for the 5-year estimating period for such legislation
under consideration), (ii) such net decrease, together
with the net decreases in OASDI taxes resulting
from previous legislation enacted during that fiscal
year or any of the previous 4 fiscal years (as esti-
mated at the time of enactment) which are attrib-
utable to those portions of the 5-year estimating pe-
riods for such previous legislation that fall within
the 5-year estimating period for such legislation
under consideration, exceeds $250,000,000, and (iii)
such legislation under consideration does not provide
at least a net decrease, for the 5-year estimating pe-
riod for such legislation under consideration, in
OASDI benefits which, together with net decreases
in OASDI benefits resulting from such previous leg-
islation which are attributable to those portions of
the 5-year estimating periods for such previous legis-
lation that fall within the 5-year estimating period
for such legislation under consideration, equals the
amount by which the net decrease derived under
clause (ii) exceeds $250,000,000.
‘‘(2) APPLICATION.—In applying subparagraph (C)
or (D) of paragraph (1), any provision of any bill or joint
resolution, as reported, or any amendment thereto, or con-
ference report thereon, the effect of which is to provide
for a net decrease for any period in taxes described in
paragraph (3)(B)(i) shall be disregarded if such bill, joint
resolution, amendment, or conference report also includes
a provision the effect of which is to provide for a net in-
crease of at least an equivalent amount for such period
in medicare taxes.
‘‘(3) DEFINITIONS.—For purposes of this subsection:
‘‘(A) The term ‘OASDI benefits’ means the
benefits under the old-age, survivors, and disability
insurance programs under title II of the Social Secu-
rity Act.
‘‘(B) The term ‘OASDI taxes’ means—
‘‘(i) the taxes imposed under sections
1401(a), 3101(a), and 3111(a) of the Internal
Revenue Code of 1986, and
‘‘(ii) the taxes imposed under chapter 1 of
such Code (to the extent attributable to section
86 of such Code).
‘‘(C) The term ‘medicare taxes’ means the taxes
imposed under sections 1401(b), 3101(b), and
3111(b) of the Internal Revenue Code of 1986.
‘‘(D) The term ‘previous legislation’ shall not
include legislation enacted before fiscal year 1991.
‘‘(E) The term ‘5-year estimating period’
means, with respect to any legislation, the fiscal year
in which such legislation becomes or would become
effective and the next 4 fiscal years.
‘‘(F) No provision of any bill or resolution, or
any amendment thereto or conference report there-
on, involving a change in chapter 1 of the Internal
Revenue Code of 1986 shall be treated as affecting
the amount of OASDI taxes referred to in subpara-
graph (B)(ii) unless such provision changes the in-
come tax treatment of OASDI benefits.
‘‘(e) 
PRESENTATION
OF
BUDGETARY
AGGRE-
GATES.—For purposes of chapter 11 of title 31, United
States Code, or this Act, tables and other displays of
budgetary aggregates for the United States Government
of the Director of the Office of Management and Budget
or the Director of the Congressional Budget Office shall
not include social security revenues or outlays.’’.
(b) AMENDMENT TO TABLE OF CONTENTS.—The
table of contents set forth in section 1(b) of the Congres-
sional Budget and Impoundment Control Act of 1974 is
amended by inserting after the item relating to section
316 the following new item:
‘‘Sec. 317. Social security.’’.
SEC. 106. CONFORMING AMENDMENTS TO EFFECTUATE
JOINT RESOLUTIONS ON THE BUDGET.
(a) CONFORMING AMENDMENTS TO THE CONGRES-
SIONAL BUDGET AND IMPOUNDMENT CONTROL ACT OF
1974.—(1)(A) Sections 300, 302, 303, 304, 305, 308,
310, 311, 312, 314, 405, and 904 of the Congressional
Budget Act of 1974 (2 U.S.C. 621 et seq.) are amended
by striking ‘‘concurrent’’ each place it appears and by in-
serting ‘‘joint’’.
(B)(i) Sections 302(d), 302(g), 308(a)(1)(A), and
310(d)(1) of the Congressional Budget Act of 1974 are
amended by striking ‘‘most recently agreed to concurrent
resolution on the budget’’ each place it occurs and insert-
ing ‘‘most recently enacted joint resolution on the budget
or agreed to concurrent resolution on the budget (as appli-
cable)’’.
(ii) Section 304 of such Act is amended by striking
‘‘concurrent resolution on the budget for such fiscal year
most recently agreed to’’ and inserting ‘‘most recently en-
acted joint resolution on the budget or agreed to concur-
rent resolution on the budget (as applicable) for such
year’’.
(C) Sections 302, 303, 304, 308, 310, 311, and 401
of such Act are amended by striking ‘‘agreed to’’ each
place it appears and by inserting ‘‘enacted’’.
(2)(A) Paragraph (4) of section 3 of the Congres-
sional Budget and Impoundment Control Act of 1974 is
amended by striking ‘‘concurrent’’ each place it appears
and by inserting ‘‘joint’’.
(B) The table of contents set forth in section 1(b)
of such Act is amended—
(i) in the item relating to section 301 by strik-
ing ‘‘Adoption of Concurrent Resolution’’ and insert-
ing ‘‘Joint Resolutions’’;
(ii) by striking the item relating to section 303
and inserting the following:
‘‘Sec. 303. Consideration of budget-related legislation before budget becomes
law.’’; and
(iii) by striking ‘‘concurrent’’ and inserting
‘‘joint’’ in the items relating to sections 304 and
305.
(b) CONFORMING AMENDMENTS TO THE RULES OF
THE HOUSE OF REPRESENTATIVES.—(1) Clauses 1(d)(2),
4(a)(2), 4(b)(2), 4(g), 4(h), and 4(i) of rule X, clause
2(l)(6) of rule XI, clause 7 of rule XV, and clause 8 of
rule XXIII of the Rules of the House of Representatives
are amended by striking ‘‘concurrent’’ each place it ap-
pears and by inserting ‘‘joint’’.
(2) The second sentence of clause 8 of rule XXIII
of the Rules of the House of Representatives is amended
by striking the semicolon and all that follows thereafter
and inserting the following: ‘‘; and (b) would contain all
the matter set forth in paragraphs (1) through (6) of sec-
tion 301(a) of the Congressional Budget Act of 1974.’’.
(c) CONFORMING AMENDMENTS TO THE BALANCED
BUDGET AND EMERGENCY DEFICIT CONTROL ACT OF
1985.—Section 258C(b)(1) of the Balanced Budget and
Emergency Deficit Control Act of 1985 (2 U.S.C.
907d(b)(1)) is amended by striking ‘‘concurrent’’ and by
inserting ‘‘joint’’.
(d) CONFORMING AMENDMENTS TO SECTION 310
REGARDING RECONCILIATION DIRECTIVES.—(1) The side
(f) TECHNICAL AMENDMENT REGARDING REVISED
SUBALLOCATIONS.—Section 314(d) of the Congressional
Budget Act of 1974 is amended by—
(1) striking ‘‘REPORTING’’ in the side heading,
by inserting ‘‘the chairmen of’’ before ‘‘the Commit-
tees’’, and by striking ‘‘may report’’ and inserting
‘‘shall make and have published in the Congressional
Record’’; and
(2) adding at the end the following new sen-
tence: ‘‘For purposes of considering amendments
(other than for amounts for emergencies covered by
subsection (b)(1)), suballocations shall be deemed to
be so adjusted.’’.
TITLE II—RESERVE FUNDS FOR
EMERGENCIES
SEC. 201. PURPOSE.
The purposes of this title are to—
(1) develop budgetary and fiscal procedures for
emergencies;
(2) subject spending for emergencies to budg-
etary procedures and controls; and
(3) establish criteria for determining compliance
with emergency requirements.
SEC. 202. REPEAL OF ADJUSTMENTS FOR EMERGENCIES.
(a) DISCRETIONARY
SPENDING
LIMITS.—Section
251(b)(2)(A) of the Balanced Budget and Emergency
Deficit Control Act of 1985 is repealed.
(b) 
DIRECT
SPENDING.—Sections 
252(e) 
and
252(d)(4)(B) of the Balanced Budget and Emergency
Deficit Control Act of 1985 are repealed.
(c) EMERGENCY DESIGNATION.—Clause 2 of rule
XXI of the Rules of the House of Representatives is
amended by repealing paragraph (e) and by redesignating
paragraph (f) as paragraph (e).
SEC. 203. OMB EMERGENCY CRITERIA.
Section 3 of the Congressional Budget and Impound-
ment Control Act of 1974 (as amended by sections
104(a)(3) and 106(e)) is further amended by adding at
the end the following new paragraph:
‘‘(13)(A) The term ‘emergency’ means a situa-
tion that—
‘‘(i) requires new budget authority and
outlays (or new budget authority and the out-
lays flowing therefrom) for the prevention or
mitigation of, or response to, loss of life or
property, or a threat to national security; and
‘‘(ii) is unanticipated.
‘‘(B) As used in subparagraph (A), the term
‘unanticipated’ means that the underlying situation
is—
‘‘(i) sudden, which means quickly coming
into being or not building up over time;
‘‘(ii) urgent, which means a pressing and
compelling need requiring immediate action;
‘‘(iii) unforeseen, which means not pre-
dicted or anticipated as an emerging need; and
‘‘(iv) temporary, which means not of a per-
manent duration.’’.
SEC. 204. DEVELOPMENT OF GUIDELINES FOR APPLICA-
TION OF EMERGENCY DEFINITION.
Not later than 5 months after the date of enactment
of this Act, the chairmen of the Committees on the Budget
(in consultation with the President) shall, after consulting
with the chairmen of the Committees on Appropriations
and applicable authorizing committees of their respective
Houses and the Directors of the Congressional Budget Of-
fice and the Office of Management and Budget, jointly
publish in the Congressional Record guidelines for applica-
tion of the definition of emergency set forth in section
3(13) of the Congressional Budget and Impoundment
Control Act of 1974.
SEC. 205. RESERVE FUNDS FOR EMERGENCIES IN PRESI-
DENT’S BUDGET.
Section 1105(f) of title 31, United States Code is
amended by adding at the end the following new sentence:
‘‘Such budget shall also comply with the requirements of
section 314(f) of the Congressional Budget Act of 1974.’’.
SEC. 206. ADJUSTMENTS AND RESERVE FUNDS FOR EMER-
GENCIES IN JOINT BUDGET RESOLUTIONS.
(a) ADJUSTMENTS FOR EMERGENCIES.—(1) Section
314(a) of the Congressional Budget Act of 1974 is amend-
ed to read as follows:
‘‘(a) ADJUSTMENTS.—
‘‘(1) IN GENERAL.—After the reporting of a bill
or joint resolution, the offering of an amendment
thereto, or the submission of a conference report
thereon, the chairman of the Committee on the
Budget of the House of Representatives or the Sen-
ate shall make the adjustments set forth in para-
graph (2) for the amount of new budget authority
(or outlays) in that measure (if that measure meets
the requirements set forth in subsection (b)) and the
outlays flowing from that budget authority.
‘‘(2) MATTERS TO BE ADJUSTED.—The adjust-
ments referred to in paragraph (1) are to be made
to—
‘‘(A) the discretionary spending limits in
the Senate, if any, set forth in the appropriate
joint resolution on the budget;
‘‘(B) the allocations made pursuant to the
appropriate joint resolution on the budget pur-
suant to section 302(a); and
‘‘(C) the budgetary aggregates as set forth
in the appropriate joint resolution on the budg-
et;
but in the case of subsection (b)(1), the adjustments
shall only be made to the allocations.’’.
(2) Section 314(b)(1) of the Congressional Budget
Act of 1974 is amended to read as follows:
‘‘(1) an amount not to exceed the amount re-
served for emergencies pursuant to the requirements
of subsection (f);’’.
(b) ESTABLISHMENT OF RESERVE FUNDS.—Section
314 of the Congressional Budget Act of 1974 is amended
by adding at the end the following new subsections:
‘‘(f) RESERVE FUNDS FOR EMERGENCIES.—
‘‘(1) RESERVE
FUND
FOR
DISCRETIONARY
BUDGET AUTHORITY AND OUTLAYS.—
‘‘(A) AMOUNTS.—The amount set forth in
the reserve fund for emergencies for discre-
tionary budget authority and outlays for a fiscal
year pursuant to section 301(a)(6) shall
equal—
‘‘(i) the average of the enacted levels
of discretionary budget authority for emer-
gencies in the 5 fiscal years preceding the
current year; and
‘‘(ii) the average of the levels of out-
lays in such 5 preceding fiscal years for
emergencies flowing from enacted levels of
discretionary budget authority.
‘‘(B) AVERAGE DISCRETIONARY LEVELS.—
For purposes of subparagraph (A), the amount
used for a fiscal year to calculate the average
of the enacted levels when one or more of such
5 preceding fiscal years is any of fiscal years
1994 through 1998 is as follows: the amount of
enacted levels of discretionary budget authority
and the amount of outlays flowing therefrom
for emergencies, which shall be determined by
the Committees on the Budget of the House of
Representatives and the Senate after receipt of
a report on such matter transmitted to such
committees by the Director of the Congressional
Budget Office 6 months after the date of enact-
ment of this subsection and thereafter in Feb-
ruary of each calendar year.
‘‘(2) RESERVE
FUND
FOR
DIRECT
SPENDING
BUDGET AUTHORITY AND OUTLAYS.—
‘‘(A) AMOUNTS.—The amount set forth in
the reserve fund for emergencies for direct
spending for a fiscal year pursuant to section
301(a)(6) shall equal—
‘‘(i) the average annual enacted levels
of direct spending budget authority for
emergencies in the 5 fiscal years preceding
the current year; and
‘‘(ii) the average annual level of out-
lays in such 5 preceding fiscal years for
emergencies flowing from enacted levels of
direct spending.
‘‘(B) AVERAGE
DIRECT
SPENDING
LEV-
ELS.—For purposes of subparagraph (A), the
amount used for a fiscal year to calculate the
average of the enacted levels when one or more
of such 5 preceding fiscal years is any of fiscal
years 1994 through 1998 is as follows: the
amount of enacted levels of direct spending
budget authority and the amount of outlays
flowing therefrom for emergencies, which shall
be determined by the Committees on the Budg-
et of the House of Representatives and the Sen-
ate after receipt of a report on such matter
transmitted to such committees by the Director
of the Congressional Budget Office 6 months
after the date of enactment of this subsection
and thereafter in February of each calendar
year.
‘‘(3) INCREASED ALLOCATIONS.—In the case of
legislation that provides budget authority for any
emergency pursuant to subsection (h), the chairman
of the Committee on the Budget shall make an ad-
justment under subsection (a)(1) only to the applica-
ble allocation if the chairman determines and cer-
tifies that such outlays or budget authority and the
resulting outlays are for an emergency within the
meaning of section 3(13).
‘‘(g) EMERGENCIES IN EXCESS OF AMOUNTS IN RE-
SERVE FUNDS.—Whenever the Committee on Appropria-
tions or any other committee reports any bill or joint reso-
lution that provides budget authority for any emergency
and the report accompanying that bill or joint resolution,
pursuant to subsection (h), identifies any provision that
increases outlays or provides budget authority (and the
outlays flowing therefrom) for such emergency, the enact-
ment of which would cause the total amount provided for
emergencies in the joint resolution on the budget (pursu-
ant to section 301(a)(6)) to be exceeded and that emer-
gency is certified as an emergency pursuant to section
(f)(3):
‘‘(1) Such bill or joint resolution shall be re-
ferred to the Committee on the Budget of the House
or the Senate, as the case may be, with instructions
to report it without amendment, other than that
specified in paragraph (2), within 3 legislative days
of the day in which it is reported from the originat-
ing committee. If the Committee on the Budget of
either House fails to report a bill or joint resolution
referred to it under this paragraph within such 3-
day period, the committee shall be automatically dis-
charged from further consideration of such bill or
joint resolution and such bill or joint resolution shall
be placed on the appropriate calendar.
‘‘(2) An amendment to such a bill or joint reso-
lution referred to in this subsection shall only consist
of an exemption from section 251 or 252 (as appli-
cable) of the Balanced Budget and Emergency Defi-
cit Control Act of 1985 of all or any part of the pro-
visions that provide budget authority (and the out-
lays flowing therefrom) for such emergency if the
committee determines that such emergency meets
the criteria set forth in subsection (f).
‘‘(3) If such a bill or joint resolution is reported
with an amendment specified in paragraph (2) by
the Committee on the Budget of the House of Rep-
resentatives or the Senate, then the budget authority
and resulting outlays that are the subject of such
amendment shall not be included in any determina-
tions under section 302(f) or 311(a) for any bill,
joint resolution, amendment, motion, or conference
report.’’.
(c) CONFORMING AMENDMENTS.—(1) The section
heading of section 314 of the Congressional Budget Act
of 1974 is amended to read as follows:
‘‘ADJUSTMENTS; RESERVE FUNDS FOR EMERGENCIES’’.
(2) The item relating to section 314 in the table of
contents set forth in section 1(b) of the Congressional
Budget and Impoundment Control Act of 1974 is amend-
ed to read as follows:
‘‘Sec. 314. Adjustments; reserve funds for emergencies.’’.
SEC. 207. COMMITTEE NOTIFICATION OF EMERGENCY LEG-
ISLATION.
Section 314 of the Congressional Budget Act of 1974
(as amended by section 206) is further amended by adding
at the end the following new subsection:
‘‘(h) COMMITTEE NOTIFICATION
OF EMERGENCY
LEGISLATION.—Whenever the Committee on Appropria-
tions or any other committee of either House (including
a committee of conference) reports any bill or joint resolu-
tion that provides budget authority for any emergency, the
report accompanying that bill or joint resolution (or the
joint explanatory statement of managers in the case of a
conference report on any such bill or joint resolution) shall
identify all provisions that provide budget authority and
the outlays flowing therefrom for such emergency.’’.
SEC. 208. APPLICATION OF SECTION 306 TO EMERGENCIES
IN EXCESS OF AMOUNTS IN RESERVE FUNDS.
Section 306 of the Congressional Budget Act of 1974
is amended by inserting at the end the following new sen-
tence: ‘‘No amendment reported by the Committee on the
Budget (or from the consideration of which such commit-
tee has been discharged) pursuant to section 314(g) may
be amended.’’.
SEC. 209. UP-TO-DATE TABULATIONS.
Section 308(b)(2) of the Congressional Budget Act
of 1974 is amended by striking ‘‘and’’ at the end of sub-
paragraph (B), by striking the period at the end of sub-
paragraph (C) and inserting ‘‘; and’’, and by adding at
the end the following new subparagraph:
‘‘(f) It shall not be in order in the House of Rep-
resentatives or in the Senate to consider an amendment
to a joint resolution on the budget which changes the
amount of budget authority and outlays set forth in sec-
tion 301(a)(6) for emergency reserve funds.’’.
(b) TECHNICAL AMENDMENT.—(1) Section 904(c)(1)
of the Congressional Budget Act of 1974 is amended by
inserting ‘‘section 305(e), section 305(f),’’ after ‘‘section
305(c)(4),’’.
(2) Section 904(d)(2) of the Congressional Budget
Act of 1974 is amended by inserting ‘‘section 305(e), sec-
tion 305(f),’’ after ‘‘section 305(c)(4),’’.
SEC. 211. EFFECTIVE DATE.
The amendments made by this title shall take effect
only after the enactment of legislation changing or extend-
ing for any fiscal year any of the discretionary spending
limits set forth in section 251 of the Balanced Budget and
Emergency Deficit Control Act of 1985 and such amend-
ments shall apply to fiscal years determined as follows:
(1) Fiscal years beginning after the fiscal year
in which such effective date occurs if such effective
date occurs on or before April 15 of such fiscal year.
(2) Fiscal years beginning after the first fiscal
year after the fiscal year in which such effective date
occurs if such effective date occurs after April 15 of
the fiscal year in which such effective date occurs.
TITLE III—ENFORCEMENT OF
BUDGETARY DECISIONS
SEC. 301. PURPOSES.
The purposes of this title are to—
(1) close loopholes in the enforcement of budget
resolutions;
(2) require committees of the House of Rep-
resentatives to include budget compliance statements
in reports accompanying all legislation; and
(3) require committees of the House of Rep-
resentatives to justify the need for waivers of the
Congressional Budget Act of 1974;
(4) provide cost estimates of conference reports.
Subtitle A—Application of Points of
Order to Unreported Legislation
SEC. 311. APPLICATION OF BUDGET ACT POINTS OF ORDER
TO UNREPORTED LEGISLATION.
(a) Section 315 of the Congressional Budget Act of
1974 is amended by striking ‘‘reported’’ the first place it
appears.
(b) Section 303(b) of the Congressional Budget Act
of 1974 (as amended by section 104(a)(1)) is further
amended—
(1) in paragraph (1), by striking ‘‘(A)’’ and by
redesignating subparagraph (B) as paragraph (2)
and by striking the semicolon at the end of such new
paragraph (2) and inserting a period; and
(2) by striking paragraph (2) (as redesignated
by such section 104(a)(1)).
Subtitle B—Compliance with
Budget Resolution
SEC. 321. BUDGET COMPLIANCE STATEMENTS.
Clause 7 of rule XIII of the Rules of the House of
Representatives is amended by adding at the end the fol-
lowing new paragraph:
‘‘(f) Each report of a committee on a bill or joint
resolution of a public character shall include a budget
compliance statement prepared by the chairman of the
Committee on the Budget, if timely submitted prior to the
filing of the report, which shall be comprised of an assess-
ment by such chairman as to whether the bill or joint reso-
lution complies with the requirements of sections 302,
303, 311, and 401 of the Congressional Budget Act of
1974 and may include the budgetary implications of that
bill or joint resolution under section 251 or 252 of the
Balanced Budget and Emergency Deficit Control Act of
1985, as applicable.’’.
Subtitle C—Justification for
Budget Act Waivers
SEC. 331. JUSTIFICATION FOR BUDGET ACT WAIVERS IN
THE HOUSE OF REPRESENTATIVES.
Clause 4 of rule XI of the Rules of the House of Rep-
resentatives is amended by adding at the end the following
new paragraph:
‘‘(f) It shall not be in order to consider any resolution
from the Committee on Rules for the consideration of any
reported bill or joint resolution which waives section 302,
303, 311, or 401 of the Congressional Budget Act of
1974, unless the report accompanying such resolution in-
cludes a description of the provision proposed to be
waived, an identification of the section being waived, the
reasons why such waiver should be granted, and an esti-
mated cost of the provisions to which the waiver applies.’’.
Subtitle D—CBO Scoring of
Conference Reports
SEC. 341. CBO SCORING OF CONFERENCE REPORTS.
(a) The first sentence of section 402 of the Congres-
sional Budget Act of 1974 is amended as follows:
(1) Insert ‘‘or conference report thereon,’’ be-
fore ‘‘and submit’’.
(2) In paragraph (1), strike ‘‘bill or resolution’’
and insert ‘‘bill, resolution, or conference report’’.
(3) At the end of paragraph (2) strike ‘‘and’’,
at the end of paragraph (3) strike the period and in-
sert ‘‘; and’’, and after such paragraph (3) add the
following new paragraph:
‘‘(4) A determination of whether such bill, joint
resolution, or conference report provides indefinite
spending authority.’’.
(b) The second sentence of section 402 of the Con-
gressional Budget Act of 1974 is amended by inserting
before the period the following: ‘‘, or in the case of a con-
ference report, shall be included in the joint explanatory
statement of managers accompanying such conference re-
port if timely submitted before such report is filed’’.
TITLE IV—ACCOUNTABILITY
FOR FEDERAL SPENDING
SEC. 401. PURPOSES.
The purposes of this title are to—
(1) require committees to develop a schedule for
reauthorizing all programs within their jurisdictions;
(2) facilitate amendments to subject new enti-
tlement programs to annual discretionary appropria-
tions;
(3) require the Committee on the Budget to
justify any allocation to an authorizing committee
for legislation that would not be subject to annual
discretionary appropriation;
(4) provide estimates of the long-term impact of
spending and tax legislation;
(5) provide a point of order for legislation cre-
ating a new entitlement program that does not ex-
pire within 10 years; and
(6) require a vote in the House of Representa-
tives on any measure that increases the statutory
limit on the public debt.
Subtitle A—Prohibitions on
Indefinite Spending
SEC. 411. FIXED-YEAR AUTHORIZATIONS REQUIRED FOR
NEW PROGRAMS.
(a) IN GENERAL.—Section 401 of the Congressional
Budget Act of 1974 is amended—
(1) by striking subsections (a) and (b) and in-
serting the following new subsection:
‘‘(a) PROHIBITION
ON
INDEFINITE
AUTHORIZA-
TIONS.—It shall not be in order in the House of Rep-
resentatives or in the Senate to consider a bill or joint
resolution, or an amendment, motion, or conference report
that provides direct spending for a new program, unless
such spending is limited to a period of 10 or fewer fiscal
years.’’;
(2) by redesignating subsection (c) as sub-
section (b) and by striking ‘‘Subsections (a) and (b)
each place it appears and inserting ‘‘Subsection (a)’’
in such redesignated subsection (b); and
(3) by amending the section heading to read as
follows:
‘‘FIXED-YEAR AUTHORIZATIONS REQUIRED FOR DIRECT
SPENDING’’.
(b) CONFORMING AMENDMENT.—The item relating
to section 401 in the table of contents set forth in section
1(b) of the Congressional Budget and Impoundment Con-
trol Act of 1974 is amended to read as follows:
‘‘Sec. 401. Fixed-year authorizations required for direct spending.’’.
(c) PROHIBITION ON INDEFINITE AUTHORIZATION
OF DISCRETIONARY APPROPRIATIONS.—Rule XXI of the
Rules of the House of Representatives is amended by add-
ing at the end the following new clause:
‘‘10. It shall not be in order to consider any bill, joint
resolution, amendment, or conference report that author-
izes the appropriation of new budget authority, as defined
in section 3(2)(C) of the Congressional Budget and Im-
poundment Control Act of 1974, unless such authorization
is specifically provided for a period of 10 or fewer fiscal
years.’’.
SEC. 412. AMENDMENTS TO SUBJECT NEW ENTITLEMENTS
TO ANNUAL APPROPRIATIONS.
(a) HOUSE PROCEDURES.—Clause 5 of rule XXIII
of the Rules of the House of Representatives is amended
by adding at the end the following new paragraph:
‘‘(d)(1) In the Committee of the Whole, an amend-
ment to subject a new program providing direct spending
to discretionary appropriations, if offered by the chairman
of the Committee on the Budget (or his designee) or the
chairman of the Committee of Appropriations (or his des-
ignee), may be precluded from consideration only by the
specific terms of a special order of the House. Any such
amendment, if offered, shall be debatable for twenty min-
utes equally divided and controlled by the proponent of
the amendment and a Member opposed and shall not be
subject to amendment.
‘‘(2) As used in subparagraph (1), the term ‘direct
spending’ has the meaning given such term in section
3(12) of the Congressional Budget and Impoundment
Control Act of 1974.’’.
(b) ADJUSTMENT
OF DISCRETIONARY SPENDING
LIMITS FOR DISCRETIONARY APPROPRIATIONS OFFSET
BY MANDATORY SAVINGS.—
(1) PURPOSE.—The purpose of the amend-
ments made by this subsection is to hold the discre-
tionary spending limits and the allocations made to
the Committee on Appropriations under section
302(a) of the Congressional Budget Act of 1974
harmless for legislation that offsets a new discre-
tionary program with a designated reduction in di-
rect spending.
(2) DESIGNATING
ENTITLEMENT
SAVINGS
IN
AUTHORIZATION
LEGISLATION
FOR
NEW
DISCRE-
TIONARY PROGRAMS.—Section 252 of the Balanced
Budget and Emergency Deficit Control Act of 1985
(as amended by section 202) is further amended by
adding at the end the following new subsection:
‘‘(e) OFFSETS.—If a provision of direct spending leg-
islation is enacted that—
‘‘(1) decreases direct spending for any fiscal
year; and
‘‘(2) is designated as an offset pursuant to this
subsection and such designation specifically identi-
fies an authorization of discretionary appropriations
(contained in such legislation) for a new program,
then the reductions in new budget authority and outlays
in all fiscal years resulting from that provision shall be
designated as an offset in the reports required under sub-
section (d).’’.
(3) EXEMPTING SUCH DESIGNATED ENTITLE-
MENT SAVINGS FROM PAYGO SCORECARD.—Section
252(d)(4) of the Balanced Budget and Emergency
Deficit Control Act of 1985 (as amended by section
202(b)) is further amended by adding at the end the
following new subparagraph:
‘‘(B) offset provisions as designated under
subsection (e).’’.
(4) ADJUSTMENT IN DISCRETIONARY SPENDING
LIMITS.—Section 251(b)(2) of the Balanced Budget
and Emergency Deficit Control Act of 1985 is
amended by adding at the end the following new
subparagraph:
‘‘(H) 
DISCRETIONARY
AUTHORIZATION
OFFSETS.—If an authorization Act includes one
or more provisions reducing direct spending and
specifically identifies those provisions as offsets
pursuant to section 252(e), the adjustments
shall be an increase in the budget authority and
outlay caps in each fiscal year equal to the
amount of the budget authority and outlay re-
ductions, respectively, achieved by the specified
offsets in that fiscal year, except that the ad-
justments for the first fiscal year in which the
offsetting provisions take effect shall not exceed
the amount of discretionary new budget author-
ity enacted for the new program (authorized in
that Act) in an Act making discretionary appro-
priations, and the outlays flowing therefrom.’’.
(5) ADJUSTMENT IN APPROPRIATION COMMIT-
TEE’S ALLOCATIONS.—Section 314(b) of the Con-
gressional Budget Act of 1974 is amended by strik-
ing ‘‘; or’’ at the end of paragraph (5), by striking
the period and inserting ‘‘; or’’ at the end of para-
graph (6), and by adding at the end the following
new paragraph:
‘‘(7) the amount appropriated for the program
for which an offset was designated pursuant to sec-
tion 252(e) of the Balanced Budget and Emergency
Deficit Control Act of 1985 and any outlays flowing
therefrom, but not to exceed the amount of the des-
ignated decrease in direct spending for that year for
that program in a prior law.’’.
(6) ADJUSTMENT
IN
AUTHORIZING
COMMIT-
TEE’S ALLOCATIONS.—Section 314 of the Congres-
sional Budget Act of 1974 (as amended by sections
206 and 207) is further amended by adding at the
end the following new subsection:
‘‘(i) ADJUSTMENT IN AUTHORIZING COMMITTEE’S
ALLOCATIONS BY AMOUNT OF DIRECT SPENDING OFF-
SET.—After the reporting of a bill or joint resolution (by
a committee other than the Committee on Appropriatons),
or the offering of an amendment thereto or the submission
of a conference report thereon, that contains a provision
that decreases direct spending for any fiscal year and that
is designated as an offset pursuant to section 252(e) of
the Balanced Budget and Emergency Deficit Control Act
of 1985, the chairman of the Committee on the Budget
shall reduce the allocations of new budget authority and
outlays made to such committee under section 302(a)(1)
by the amount so designated.’’.
Subtitle 
B—Enhanced 
Congres-
sional 
Oversight 
Responsibil-
ities
SEC. 421. TEN-YEAR CONGRESSIONAL REVIEW REQUIRE-
MENT OF PERMANENT BUDGET AUTHORITY.
(a) TIMETABLE
FOR REVIEW.—Clause 2(d)(1) of
rule X of the Rules of the House of Representatives is
amended by striking subdivisions (B) and (C) and insert-
ing the following new subdivision:
‘‘(B) provide in its plans a specific timetable for
its review of those laws, programs, or agencies with-
in its jurisdiction, including those that operate under
permanent budget authority or permanent statutory
authority. Such timetable shall demonstrate that
each law, program, or agency within the committee’s
jurisdiction will be reauthorized at least once every
ten years.’’.
(b) REVIEW OF PERMANENT BUDGET AUTHORITY
BY THE COMMITTEE ON APPROPRIATIONS.—Clause 4(a)
of rule X of the Rules of the House of Representatives
is amended—
(1) by striking subparagraph (2); and
(2) by redesignating subparagraph (3) as sub-
paragraph (2) and by striking ‘‘from time to time’’
and inserting ‘‘at least once each Congress’’ in sub-
paragraph (2) (as redesignated).
(c) CONFORMING AMENDMENT.—Clause 4(f)(2) of
rule X of the Rules of the House of Representatives is
amended by striking ‘‘from time to time’’ and inserting
‘‘at least once every ten years’’.
SEC. 422. JUSTIFICATIONS OF DIRECT SPENDING.
(a) SECTION 302 ALLOCATIONS.—Section 302(a) of
the Congressional Budget Act of 1974 is amended by add-
ing at the end the following new paragraph:
‘‘(6) JUSTIFICATION OF CERTAIN SPENDING AL-
LOCATIONS.—The joint explanatory statement ac-
companying a conference report on a joint resolution
on the budget that includes any allocation to a com-
mittee (other than the Committee on Appropria-
tions) of levels in excess of current law levels shall
set forth a justification for not subjecting any pro-
gram, project, or activity (for which the allocation is
made) to annual discretionary appropriation.’’.
(b) PRESIDENTS’ BUDGET SUBMISSIONS.—Section
1105(a) of title 31, United States Code, is amended by
adding at the end the following new paragraph:
‘‘(33) a justification for not subjecting each
new program to discretionary appropriations.’’.
(c) COMMITTEE JUSTIFICATION FOR DIRECT SPEND-
ING.—The first sentence of clause 4(f)(1) of rule X of the
Rules of the House of Representatives is amended by in-
serting before the period the following: ‘‘, and will provide
specific information in any report accompanying such bills
and joint resolutions to justify why the programs and ac-
tivities involved would not be subject to annual appropria-
tion’’.
SEC. 423. SURVEY OF ACTIVITY REPORTS OF HOUSE COM-
MITTEES.
Clause 1(d) of rule XI of the Rules of the House of
Representatives is amended by redesignating paragraph
(4) as paragraph (5) and by inserting after paragraph (3)
the following new paragraph:
‘‘(4) Such report shall include a summary of and jus-
tifications for all bills and joint resolutions reported by
such committee that—
‘‘(A) were considered before the adoption of the
appropriate budget resolution and did not fall within
an exception set forth in section 303(b) of the Con-
gressional Budget Act of 1974;
‘‘(B) exceeded its allocation under section
302(a) of such Act or breached an aggregate level
in violation of section 311 of such Act; or
‘‘(C) contained provisions in violation of section
401(a) of such Act pertaining to indefinite direct
spending authority.
Such report shall also specify the total amount by which
legislation reported by that committee exceeded its alloca-
tion under section 302(a) or breached the revenue floor
under section 311(a) of such Act for each fiscal year dur-
ing that Congress.’’.
SEC. 424. CONTINUING STUDY OF ADDITIONAL BUDGET
PROCESS REFORMS.
Section 703 of the Congressional Budget Act of 1974
is amended as follows:
(1) In subsection (a), strike ‘‘and’’ at the end
of paragraph (3), strike the period at the end of
paragraph (4) and insert ‘‘; and’’, and at the end
add the following new paragraph:
‘‘(5) evaluating whether existing programs
should be subject to discretionary appropriations and
establishing guidelines for subjecting new or ex-
panded programs to annual appropriation and rec-
ommend any necessary changes in statutory enforce-
ment mechanisms and scoring conventions to effec-
tuate such changes.’’.
(2) In subsection (b), strike ‘‘from time to
time’’ and insert ‘‘during the One Hundred Sixth
Congress’’.
SEC. 425. GAO REPORTS.
The last sentence of section 404 of the Congres-
sional Budget Act of 1974 is amended to read as follows:
‘‘Such report shall be revised at least once every five
years.’’.
Subtitle C—Strengthened
Accountability
SEC. 431. TEN-YEAR CBO ESTIMATES.
(a) CBO REPORTS
ON
LEGISLATION.—Section
308(a)(1)(B) of the Congressional Budget Act of 1974 is
amended by striking ‘‘four’’ and inserting ‘‘nine’’.
(b) ANALYSIS BY CBO.—Section 402(1) of the Con-
gressional Budget Act of 1974 is amended by striking ‘‘4’’
and inserting ‘‘nine’’.
(c) COST ESTIMATES.—Clause 7(a)(1) of rule XIII
of the Rules of the House of Representatives is amended
by striking ‘‘five’’ each place it appears and inserting
‘‘10’’.
SEC. 432. REPEAL OF RULE XLIX OF THE RULES OF THE
HOUSE OF REPRESENTATIVES.
Rule XLIX of the Rules of the House of Representa-
tives (relating to the establishment of the statutory limit
on the public debt) is repealed.
TITLE V—BUDGETING FOR UN-
FUNDED 
LIABILITIES 
AND
OTHER LONG-TERM OBLIGA-
TIONS
SEC. 501. PURPOSES.
The purposes of this title are to—
(1) budget for the long-term costs of Federal
insurance programs;
(2) improve congressional control of those costs;
and
(3) periodically report on long-term budgetary
trends.
Subtitle A—Budgetary Treatment
of Federal Insurance Programs
SEC. 511. FEDERAL INSURANCE PROGRAMS.
(a) IN GENERAL.—The Congressional Budget Act of
1974 is amended by adding after title V the following new
title:
‘‘TITLE VI—BUDGETARY TREATMENT OF FEDERAL
INSURANCE PROGRAMS
‘‘SEC. 601. SHORT TITLE.
‘‘This title may be cited as the ‘Federal Insurance
Budgeting Act of 1998’.
‘‘SEC. 602. BUDGETARY TREATMENT.
‘‘(a) PRESIDENT’S BUDGET.—Beginning with fiscal
year 2005, the budget of the Government pursuant to sec-
tion 1105(a) of title 31, United States Code, shall be
based on the risk-assumed cost of Federal insurance pro-
grams.
‘‘(b) BUDGET ACCOUNTING.—For any Federal insur-
ance program—
‘‘(1) the program account shall—
‘‘(A) pay the risk-assumed cost borne by
the taxpayer to the financing account, and
‘‘(B) pay actual insurance program admin-
istrative costs;
‘‘(2) the financing account shall—
‘‘(A) receive premiums and other income,
‘‘(B) pay all claims for insurance and re-
ceive all recoveries,
‘‘(C) transfer to the program account on
not less than an annual basis amounts nec-
essary to pay insurance program administrative
costs;
‘‘(3) a negative risk-assumed cost shall be
transferred from the financing account to the pro-
gram account, and shall be transferred from the pro-
gram account as a nonexpenditure transfer to the
general fund; and
‘‘(4) all payments by or receipts of the financ-
ing accounts shall be treated in the budget as a
means of financing.
‘‘(c) APPROPRIATIONS
REQUIRED.—(1) Notwith-
standing any other provision of law, insurance commit-
ments may be made for fiscal year 2005 and thereafter
only to the extent that new budget authority to cover their
risk-assumed cost is provided in advance in an appropria-
tion Act.
‘‘(2) An outstanding insurance commitment shall not
be modified in a manner that increases its risk-assumed
cost unless budget authority for the additional cost has
been provided in advance in an appropriation Act.
‘‘(3) Paragraphs (1) and (2) shall not apply to Fed-
eral insurance programs that constitute entitlements.
‘‘(d) REESTIMATES.—The risk-assumed cost for a
fiscal year shall be reestimated in each subsequent year.
Such reestimate can equal zero. In the case of a positive
reestimate, the amount of the reestimate shall be paid
from the program account to the financing account. In
the case of a negative reestimate, the amount of the reesti-
mate shall be paid from the financing account to the pro-
gram account, and shall be transferred from the program
account to the general fund as a nonexpenditure transfer.
Reestimates shall be displayed as a distinct and separately
identified subaccount in the program account.
‘‘(e) ADMINISTRATIVE EXPENSES.—All funding for
an agency’s administration of a Federal insurance pro-
gram shall be displayed as a distinct and separately identi-
fied subaccount in the program account.
‘‘SEC. 603. TIMETABLE FOR IMPLEMENTATION OF ACCRUAL
BUDGETING FOR FEDERAL INSURANCE PRO-
GRAMS.
‘‘(a) AGENCY REQUIREMENTS.—Agencies with re-
sponsibility for Federal insurance programs shall develop
models to estimate their risk-assumed cost by year
through the budget horizon and shall submit those models,
all relevant data, a justification for critical assumptions,
and the annual projected risk-assumed costs to OMB with
their budget requests each year starting with the request
for fiscal year 2001. Agencies will likewise provide OMB
with annual estimates of modifications, if any, and reesti-
mates of program costs.
‘‘(b) DISCLOSURE.—When the President submits a
budget of the Government pursuant to section 1105(a) of
title 31, United States Code, for fiscal year 2001, OMB
shall publish a notice in the Federal Register advising in-
terested persons of the availability of information describ-
ing the models, data (including sources), and critical as-
sumptions (including explicit or implicit discount rate as-
sumptions) 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 sub-
mit 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 (in-
cluding sources), and critical assumptions (including ex-
plicit 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 oppor-
tunity to submit comments.
‘‘(c) REVISION.—(1) After consideration of comments
pursuant to subsection (b), and in consultation with the
Committees on the Budget of the House of Representa-
tives and the Senate, OMB and CBO shall revise the mod-
els, data, and major assumptions they would use to esti-
‘‘(A) a presentation for each Federal insur-
ance program in budget-account level detail of
estimates of risk-assumed cost;
‘‘(B) a summary table of the risk-assumed
costs of Federal insurance programs; and
‘‘(C) an alternate summary table of budget
functions and aggregates using risk-assumed
rather than cash-based cost estimates for Fed-
eral insurance programs.
‘‘(3) CBO.—In the 107th Congress and the 1st
session of the 108th Congress, CBO shall include in
its estimates under section 308, for display purposes
only, the risk-assumed cost of existing Federal pro-
grams, or legislation that CBO, in consultation with
the Committees on the Budget of the House of Rep-
resentatives and the Senate, determines would create
a new Federal insurance program.
‘‘(e) OMB, CBO, AND GAO EVALUATIONS.—(1) Not
later than 6 months after the budget submission of the
President pursuant to section 1105(a) of title 31, United
States Code, for fiscal year 2004, OMB, CBO, and GAO
shall each submit to the Committees on the Budget of the
House of Representatives and the Senate a report that
evaluates the advisability and appropriate implementation
of this title.
‘‘(2) Each report made pursuant to paragraph (1)
shall address the following:
‘‘(A) The adequacy of risk-assumed estimation
models used and alternative modeling methods.
‘‘(B) The availability and reliability of data or
information necessary to carry out this title.
‘‘(C) The appropriateness of the explicit or im-
plicit 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 ap-
plicable, 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 ac-
crual 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 Fed-
eral insurance programs.
‘‘(H) The advisability of including each of the
programs currently estimated on a risk-assumed cost
basis in the Federal budget on that basis.
‘‘SEC. 604. DEFINITIONS.
‘‘For purposes of this title:
‘‘(1) The term ‘Federal insurance program’
means a program that makes insurance commit-
ments and includes the list of such programs in-
cluded in the joint explanatory statement of man-
agers accompanying the conference report on the
Comprehensive Budget Process Reform Act of 1998.
‘‘(2) The term ‘insurance commitment’ means
an agreement in advance by a Federal agency to in-
demnify a nonfederal entity against specified losses.
This term does not include loan guarantees as de-
fined in title V or benefit programs such as social
security, medicare, and similar existing social insur-
ance programs.
‘‘(3)(A) The term ‘risk-assumed cost’ means the
net present value of the estimated cash flows to and
from the Government resulting from an insurance
commitment or modification thereof.
‘‘(B) The cash flows associated with an insur-
ance commitment include—
‘‘(i) expected claims payments inherent in
the Government’s commitment;
‘‘(ii) net premiums (expected premium col-
lections received from or on behalf of the in-
sured less expected administrative expenses);
‘‘(iii) expected recoveries; and
‘‘(iv) expected changes in claims, pre-
miums, or recoveries resulting from the exercise
by the insured of any option included in the in-
surance 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 esti-
mate 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 cur-
rently required by the financing account to pay esti-
mated claims and other expenditures and the
amount currently available (whether in cash or other
marketable asset) in the financing account. The cost
of a reestimate shall be accounted for in the current
year in the budget of the Government pursuant to
section 1105(a) of title 31, United States Code.
‘‘(E) For purposes of this definition, expected
administrative expenses shall be construed as the
amount estimated to be necessary for the proper ad-
ministration of the insurance program. This amount
may differ from amounts actually appropriated or
otherwise made available for the administration of
the program.
‘‘(4) The term ‘program account’ means the
budget account for the risk-assumed cost, and for all
costs of administering the insurance program, and is
the account from which the risk-assumed cost is dis-
bursed to the financing account.
‘‘(5) The term ‘financing account’ means the
nonbudget account that is associated with each pro-
gram account which receives payments from or
makes payments to the program account, receives
premiums and other payments from the public, pays
insurance claims, and holds balances.
‘‘(6) The term ‘modification’ means any Gov-
ernment action that alters the risk-assumed cost of
an existing insurance commitment from the current
estimate of cash flows. This includes any action re-
sulting from new legislation, or from the exercise of
administrative discretion under existing law, that di-
rectly or indirectly alters the estimated cost of exist-
ing insurance commitments.
‘‘(7) The term ‘model’ means any actuarial, fi-
nancial, econometric, probabilistic, or other meth-
odology used to estimate the expected frequency and
magnitude of loss-producing events, expected pre-
miums or collections from or on behalf of the in-
sured, expected recoveries, and administrative ex-
penses.
‘‘(8) The term ‘current’ has the same meaning
as in section 250(c)(9) of the Balanced Budget and
Emergency Deficit Control Act of 1985.
‘‘(9) The term ‘OMB’ means the Director of
the Office of Management and Budget.
‘‘(10) The term ‘CBO’ means the Director of
the Congressional Budget Office.
‘‘(11) The term ‘GAO’ means the Comptroller
General of the United States.
‘‘SEC. 605. AUTHORIZATIONS TO ENTER INTO CONTRACTS;
ACTUARIAL COST ACCOUNT.
‘‘(a) AUTHORIZATION OF APPROPRIATIONS.—There
is authorized to be appropriated $600,000 for each of fis-
cal years 1999 through 2004 to the Director of the Office
of Management and Budget and each agency responsible
for administering a Federal program to carry out this
title.
‘‘(b) TREASURY TRANSACTIONS WITH THE FINANC-
ING ACCOUNTS.—The Secretary of the Treasury shall bor-
row from, receive from, lend to, or pay the insurance fi-
nancing 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 de-
scribed above shall not be construed to supersede or over-
ride the authority of the head of a Federal agency to ad-
minister and operate an insurance program. All the trans-
actions 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 ac-
counts in excess of current requirements shall be main-
tained 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 COMMIT-
MENTS AT TRANSITION DATE.—(1) A financing account
is established on September 30, 2004, for each Federal
insurance program.
‘‘(2) There is appropriated to each financing account
the amount of the unfunded risk-assumed cost of Federal
insurance commitments outstanding for that program as
of the close of September 30, 2004.
‘‘(3) These financing accounts shall be used in imple-
menting the budget accounting required by this title.
‘‘SEC. 606. EFFECTIVE DATE.
‘‘This title shall take effect immediately and shall ex-
pire on September 30, 2006.’’.
(b) CONFORMING AMENDMENT.—The table of con-
tents set forth in section 1(b) of the Congressional Budget
and Impoundment Control Act of 1974 is amended by in-
serting 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 insur-
ance programs.
‘‘Sec. 604. Definitions.
‘‘Sec. 605. Authorizations to enter into contracts; actuarial cost account.
‘‘Sec. 606. Effective date.’’.
Subtitle B—Reports on Long-Term
Budgetary Trends
SEC. 521. REPORTS ON LONG-TERM BUDGETARY TRENDS.
(a) THE PRESIDENT’S BUDGET.—Section 1105(a) of
title 31, United States Code (as amended by section 404),
is further amended by adding at the end the following new
paragraph:
‘‘(34) an analysis based upon current law and
an analysis based upon the policy assumptions un-
derlying the budget submission for every fifth year
of the period of 75 fiscal years beginning with such
fiscal year, of the estimated levels of total new budg-
et authority and total budget outlays, estimated rev-
enues, estimated surpluses and deficits, and, for
each major Federal entitlement program, estimated
levels of total new budget authority and total budget
outlays; and a specification of its underlying as-
sumptions and a sensitivity analysis of factors that
have a significant effect on the projections made in
each analysis; and a comparison of the effects of
each of the two analyses on the economy, including
such factors as inflation, foreign investment, interest
rates, and economic growth.’’.
(b) CBO REPORTS.—Section 202(e)(1) of the Con-
gressional Budget Act of 1974 is amended by adding at
the end the following new sentences: ‘‘Such report shall
also include an analysis based upon current law for every
fifth year of the period of 75 fiscal years beginning with
such fiscal year, of the estimated levels of total new budget
authority and total budget outlays, estimated revenues, es-
timated surpluses and deficits, and, for each major Fed-
eral entitlement program, estimated levels of total new
budget authority and total budget outlays. The report de-
scribed in the preceding sentence shall also specify its un-
derlying assumptions and set forth a sensitivity analysis
of factors that have a significant effect on the projections
made in the report.’’.
TITLE VI—BASELINES, BYRD
RULE, AND LOCK-BOX
SEC. 601. PURPOSE.
The purposes of this title are to—
(1) require budgetary comparisons to prior year
levels;
(2) restrict the application of the Byrd rule to
measures other than conference reports; and
(3) establish a procedure to allow savings from
spending cuts in appropriation measures to be
locked-in to increase the surplus or reduce the defi-
cit.
Subtitle A—The Baseline
SEC. 611. THE PRESIDENT’S BUDGET.
(a) Paragraph (5) of section 1105(a) of title 31,
United States Code, is amended to read as follows:
‘‘(5) except as provided in subsection (b) of this
section, estimated expenditures and appropriations
for the current year and estimated expenditures and
proposed appropriations the President decides are
necessary to support the Government in the fiscal
year for which the budget is submitted and the 4 fis-
cal years following that year, and, except for detailed
budget estimates, the percentage change from the
current year to the fiscal year for which the budget
is submitted for estimated expenditures and for ap-
propriations.’’.
(b) Section 1105(a)(6) of title 31, United States
Code, is amended to read as follows:
‘‘(6) estimated receipts of the Government in
the current year and the fiscal year for which the
budget is submitted and the 4 fiscal years after that
year under—
‘‘(A) laws in effect when the budget is sub-
mitted; and
‘‘(B) proposals in the budget to increase
revenues,
and the percentage change (in the case of each cat-
egory referred to in subparagraphs (A) and (B)) be-
tween the current year and the fiscal year for which
the budget is submitted and between the current
year and each of the 4 fiscal years after the fiscal
year for which the budget is submitted.’’.
(c) Section 1105(a)(12) of title 31, United States
Code, is amended to read as follows: